TKC : Summary of Consolidated Financial Results for the Nine Months Ended June 30, 2022 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Nine Months Ended June 30, 2022 (Based on Japanese GAAP)

				August 10, 2022
Company name:	TKC Corporation
Stock exchange listing:	Tokyo
Stock code:	9746	URL https://www.tkc.jp/
Representative:	President and Representative Director	Masanori Iizuka
Inquiries:	Director and Managing Executive Officer	Kiyotsugu Nakanishi	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 12, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended June 30, 2022 (from October 1, 2021 to June 30, 2022)
(1) Consolidated operating results (cumulative)					Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%
Nine months ended June 30, 2022	50,340		1.5	11,656	1.3	11,941		1.1	8,125	2.1
Nine months ended June 30, 2021	49,587		(3.4)	11,502	15.3	11,808		15.3	7,961	17.2
	Earnings per share		Diluted earnings per share
			Yen			Yen
Nine months ended June 30, 2022			154.88			-
Nine months ended June 30, 2021			151.19			-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio
	Millions of yen		Millions of yen				%
As of June 30, 2022	104,284			86,573				83.0
As of September 30, 2021	103,406			83,416				80.7

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended September 30, 2021	-	65.00	-	39.50	-
Year ending September 30, 2022	-	36.00	-
Year ending September 30, 2022				40.00	76.00
(Forecast)

3. Forecast of consolidated financial results for the year ending September 30, 2022 (from October 1, 2021 to September 30, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	67,550	2.0	12,560		2.0	12,930		2.0	8,860		2.0	168.21

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4. Notes

1. Changes in significant subsidiaries during the nine months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2022	53,462,066	shares	As of September 30, 2021	53,462,066	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	1,035,382	shares	As of September 30, 2021	748,935	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended June 30, 2022	52,461,541	shares	Nine months ended June 30, 2021	52,654,310	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of September 30, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	26,426	26,666
Notes and accounts receivable - trade	6,973	-
Notes and accounts receivable - trade, and contract assets	-	8,276
Inventories	412	501
Other	2,309	1,935
Allowance for doubtful accounts	(14)	(11)
Total current assets	36,107	37,369
Non-current assets
Property, plant and equipment
Buildings and structures, net	7,855	7,513
Land	6,802	6,802
Other, net	2,882	2,567
Total property, plant and equipment	17,540	16,884
Intangible assets	3,605	4,186
Investments and other assets
Investment securities	19,705	19,441
Long-term time deposits	16,600	17,700
Guarantee deposits	1,440	1,479
Other	8,406	7,223
Total investments and other assets	46,152	45,844
Total non-current assets	67,298	66,915
Total assets	103,406	104,284
Liabilities
Current liabilities
Accounts payable - trade	2,402	2,085
Electronically recorded obligations - operating	834	1,039
Short-term borrowings	80	71
Accounts payable - other	3,034	2,689
Income taxes payable	2,211	1,011
Contract liabilities	-	834
Provision for bonuses	4,073	1,546
Other	2,083	3,209
Total current liabilities	14,721	12,487
Non-current liabilities
Long-term borrowings	214	178
Retirement benefit liability	3,554	3,669
Provision for share awards	307	306
Other	1,192	1,068
Total non-current liabilities	5,268	5,223
Total liabilities		19,990	17,710

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			(Millions of yen)
		As of September 30, 2021	As of June 30, 2022
Net assets
Shareholders' equity
Share capital	5,700	5,700
Capital surplus	6,589	6,589
Retained earnings	73,411	77,551
Treasury shares	(1,352)	(2,359)
Total shareholders' equity	84,348	87,481
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	449	343
Remeasurements of defined benefit plans	(1,382)	(1,251)
Total accumulated other comprehensive income	(932)	(907)
Total net assets	83,416	86,573
Total liabilities and net assets		103,406	104,284

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		June 30, 2021	June 30, 2022
Net sales	49,587	50,340
Cost of sales	14,288	14,539
Gross profit	35,298	35,801
Selling, general and administrative expenses	23,796	24,144
Operating profit	11,502	11,656
Non-operating income
Interest income	39	51
Dividend income	150	176
Dividend income of insurance	12	18
Rental income from land and buildings	38	37
Other	65	70
Total non-operating income	306	354
Non-operating expenses
Interest expenses	0	0
Loss on sale of securities	0	-
Foreign exchange losses	0	-
Surcharge	-	20
Penalty fee	-	46
Other	-	1
Total non-operating expenses	0	68
Ordinary profit	11,808	11,941
Extraordinary income
Gain on sale of non-current assets	1	2
Gain on sale of investment securities	8	-
Other	0	-
Total extraordinary income	10	2
Extraordinary losses
Loss on sale of non-current assets	22	-
Loss on retirement of non-current assets	15	24
Loss on valuation of investment securities	89	-
Total extraordinary losses	126	24
Profit before income taxes	11,692	11,919
Income taxes - current	2,700	2,940
Income taxes - deferred	1,030	853
Total income taxes	3,730	3,794
Profit	7,961	8,125
Profit attributable to owners of parent		7,961	8,125

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