TAC : Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

TAC Co.,Ltd Consolidated Financial Results for the FY2022(April 1, 2022 - March 31, 2023)

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

May 15, 2023

Company name: TAC CO., Ltd.
Listing: Tokyo Stock Exchange
Company code number: 4319
URL: https://www.tac-school.co.jp
Representative: Toshio Tada, Representative Director
Contact: Shoji Nonaka, Manager of IR department	Tel: [phone]

Scheduled date of ordinary general meeting of shareholders: June 27, 2023

Scheduled date to commence dividend payments: June 28, 2023

Scheduled date to submit the annual securities report: June 28, 2023

Supplemental information for financial statements: Yes

Results briefing session: Yes (for investors and analysts)

(Amounts rounded down to the nearest million yen)

1. Consolidated financial results for the fiscal year ended March 2023 (From April 1, 2022 to March 31, 2023)

1. Consolidated financial results

(% indicates changes from the previous corresponding period)

	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Yen in Millions	%	Yen in Millions	%	Yen in Millions	%	Yen in Millions	%
FY2022	19,711	-3.7	319	-22.8	324	-26.7	214	-51.7
(Apr.1,2022-Mar.31,2023)
FY2021	20,471	3.7	413	2.2	442	-31.5	444	9.7
(Apr.1,2021-Mar.31,2022)

(Note) Comprehensive income: FY 2022(2023/3) 215 million yen (-54.2%), FY 2021(2022/3) 470 million yen (9.2%)

	Profit per share	Fully diluted profit	Ratio of return on	Ratio of ordinary	Ratio of operating
	per share	equity	profit to total	profit to net sales
		assets
FY2022	Yen	Yen	%	%	%
11.69	-	3.5	1.5	1.6
(Apr.1,2022-Mar.31,2023)
FY2021	24.05	-	7.4	2.1	2.0
(Apr.1,2021-Mar.31,2022)

(Note) Share of profit of entities accounted for using equity method: FY2022 (2023/3) -1 million yen, FY2021 (2022/3) 3 million yen

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
FY2022	Yen in Millions	Yen in Millions	%	Yen
20,795	6,203	29.8	341.58
(As of Mar.31,2023)
FY2021	21,384	6,174	28.8	333.22
(As of Mar.31,2022)
(Note) Equity: FY 2022	(2023/3) 6,194 million	yen, FY2021 (2022/3) 6,165 million yen
(3) Consolidated statement of cash flow
	Net cash provided by	Net cash provided by	Net cash provided by	Cash and cash
	(used in)	(used in)	(used in)	equivalents at the end
	operating activities	investing activities	financing activities	of the period
FY2022	Yen in Millions	Yen in Millions	Yen in Millions	Yen in Millions
-28	436	-21	6,103
(Apr.1,2022-Mar.31,2023)
FY2021	484	-414	509	5,716
(Apr.1,2021-Mar.31,2022)

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TAC Co.,Ltd Consolidated Financial Results for the FY2022(April 1, 2022 - March 31, 2023)

2. Dividends

		Annual dividends per share		Total amount		Ratio of
						Payout ratio	dividends to
	1st	2nd	3rd	4th	Total	of dividends	(consolidated)	net assets
	quarter	quarter	quarter	quarter		(annual)		(consolidated)
	Yen	Yen	Yen	Yen	Yen	Yen in Millions	%	%
FY2021	-	3.00	-	3.00	6.00	111	24.9	1.9
(Apr.1,2021-Mar.31,2022)
FY2022	-	3.00	-	3.00	6.00	109	51.3	1.8
(Apr.1,2022-Mar.31,2023)
FY 2023(Forecast)	-	3.00	-	3.00	6.00		51.8

3. Forecasts of consolidated financial results for the fiscal year ending March 2024 (From April 1, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Profit per share
		owners of parent
	Yen in Millions	%	Yen in Millions	%	Yen in Millions	%	Yen in Millions	%	Yen
Half year	10,652	-1.0	951	1.0	926	0.1	602	-2.1	33.20
Full year	19,620	-0.5	380	19.1	330	1.7	210	-2.2	11.58

• Notes
• 1. Significant changes in scope of consolidation (Changes in consolidated subsidiaries): None
  2. Changes in accounting policies, changes in accounting estimates, and restatements

(2)-1 Changes in accounting policies due to the revision of accounting standards: Yes

(2)-2 Changes in accounting policies other than (2)-1: None

(2)-3 Changes in accounting estimates: Yes

(2)-4 Restatements: None

(3) Number of shares issued (common stocks)
(3)-1	Number of shares issued at the end
	of the fiscal year			FY2022	18,504,000 shares	FY2021	18,504,000 shares
	(including treasury shares)
(3)-2	Number of treasury	shares	at the
	end of the fiscal year			FY2022	370,168 shares	FY2021	68 shares
(3)-3	Average number of	shares	during
	the period			FY2022	18,366,031 shares	FY2021	18,503,932 shares

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TAC Co.,Ltd Consolidated Financial Results for the FY2022(April 1, 2022 - March 31, 2023)

(Reference) Summary of the non-consolidated financial results

1. Non-Consolidated financial results for the fiscal year ended March 2023 (From April 1, 2022 to March 31, 2023)

(1) Non-consolidated financial results

(% indicates changes from the previous corresponding period)

			Net sales			Operating profit		Ordinary profit		Profit
FY2022		Yen in Millions	%		Yen in Millions	%		Yen in Millions	%		Yen in Millions	%
	18,972	-3.8		178	-22.4		235	-21.2		168	-51.6
(Apr.1,2022-Mar.31,2023)
FY2021		19,712	3.4		229	2.9		298	-38.3		349	15.8
(Apr.1,2021-Mar.31,2022)
			Profit per share		Fully diluted profit per share
FY2022				Yen					Yen
			9.20				-
(Apr.1,2022-Mar.31,2023)
FY2021				18.87				-
(Apr.1,2021-Mar.31,2022)
(2) Non-consolidated financial position
			Total assets			Net assets			Equity ratio	Net assets per share
FY2022			Yen in Millions			Yen in Millions		%		Yen
	19,006		4,640			24.4		255.92
(As of Mar.31,2023)
FY2021		19,641		4,659			23.7		251.83
(As of Mar.31,2022)

(Note) Shareholders' equity: FY 2022 (2023/3) 4,640 million yen, FY 2021 (2022/3) 4,659 million yen

2. Forecasts of non-consolidated financial results for the fiscal year ending March 2024 (From April 1, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period)

	Net sales		Operating profit	Ordinary profit	Profit		Profit per share
	Yen in Millions	%	Yen in Millions	%	Yen in Millions	%	Yen in Millions	%	Yen
Half year	10,262	-0.4	861	11.6	873	9.1	556	4.3	31.21
Full year	18,840	-0.7	200	12.1	188	-20.1	120	-29.0	6.62

• This "Consolidated Financial Results" are outside the scope of the audit.
• Explanation of proper use of financial forecasts and other special notes:

The above forecasts are based on the information available at this time and on assumptions deemed to be reasonable. Therefore, the actual financial results may differ significantly from the forcasts due to various factors. For matters relating to forecasts, please refer to "1. Overview of operating results (4) Future outlook" on page 15 of the attached document.

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TAC Co.,Ltd Consolidated Financial Results for the FY2022(April 1, 2022 - March 31, 2023)

(Table of contents of appendix)

1. Overview of operating results

1. Overview of operating results for the current fiscal year
2. Overview of financial position for the current fiscal year
3. Overview of cash flows for the current fiscal year
4. Future outlook

1. Status of the consolidated group
2. Basic management policy and profit distribution
3. Basic approach to select accounting standard
4. Consolidated financial statements and notes

1. Consolidated balance sheet
2. Consolidated statement of income and consolidated statement of comprehensive income
3. Consolidated statement of changes in net assets
4. Consolidated statement of cash flows
5. Notes for consolidated financial statements

(Going-Concern Assumption) (Changes in accounting policy) (Changes in accounting estimates) (Segment information)

(Revenue recognition) (Per share information) (Significant subsequent events)

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TAC Co.,Ltd Consolidated Financial Results for the FY2022(April 1, 2022 - March 31, 2023)

1．Overview of operating results

1. Overview of operating results for the current fiscal year

1. Overview of consolidated results for FY2022 (Apr.2022-Mar.2023)

In the business of supporting acquisition of license qualifications, tuition fees are paid by the student upon application for a particular course. This constitutes net sales on a cash basis. Upon payment, the entire amount of tuition received is credited to advances received (liability) and reduced to recognize net sales on an accrual basis in the relevant accounting periods in which the service is provided to the student. While net sales recorded in the income statement are net sales on an accrual basis, for business management purposes we attach great importance to growth in net sales on a cash basis.

In the current fiscal year, net sales on a cash basis decreased 4.2%, or by ¥850 million, year on year to ¥19,295 million. Net sales on an accrual basis after adjustment of advances received decreased 3.7%, or by ¥760 million to ¥19,711 million, as adjustment of advances received of ¥416 million was reversed (¥325 million reversed in the same term last year).

Cost of sales decreased 5.4%, or by ¥678 million year on year to ¥11,979 million. Selling, general and administrative expenses increased 0.2%, or by ¥12 million year on year to ¥7,413 million. In total, operating profit for the current period decreased 22.8%, or by ¥94 million year on year to ¥319 million.

Non-operating income of ¥49 million was recorded, including interest income of ¥8 million and insurance claim income of ¥25 million. Non-operating expenses of ¥43 million were posted including interest expenses of ¥34 million and commission expenses of ¥7 million. As a result, ordinary profit decreased 26.7%, or by ¥117 million year on year to ¥324 million.

In the current period, impairment loss of ¥15 million and loss on valuation of investments in capital of subsidiaries and associates of ¥6 million were posted as extraordinary losses. As a result, profit decreased 51.6%, or by ¥230 million year on year to ¥216 million and profit attributable to owners of parent decreased 51.7%, or by ¥230 million year on year to ¥214 million.

Quarterly results of TAC Group are as shown below. Net sales before adjustment of advances received represent net sales totaling the amount paid upon registration. Net sales after adjustment of advances received represent net sales after allocating the amount paid upon registration to corresponding periods in accordance with provision of educational services.

License examinations covered by our educational courses have some notable features including (i) examinations of Certified Public Accountant and Certified Public Tax Accountant, our flagship, implemented from spring to autumn (1st to 3rd quarters) and (ii) registration to Public Officer courses, whose main clients are university students, concentrating in spring to summer (1st to 2nd quarters). Accordingly, registration for educational courses in the 4th quarter (net sales before adjustment of advances received) tends to be weaker compared to other quarters. Meanwhile, operating expenses including rent expenses, instructors' fees and advertising costs are allocated evenly to each month, causing no variance in quarterly results.

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