TKC : Summary of Consolidated Financial Results for the Three Months Ended December 31, 2021 (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 Three Months Ended December 31, 2021 (Based on Japanese GAAP)

				February 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:	February 14, 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 three months ended December 31, 2021 (from October 1, 2021 to December 31, 2021)

(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		%
Three months ended December 31, 2021	15,292		3.1	3,091	15.7		3,242		15.1		2,228		18.9
Three months ended December 31, 2020	14,837		(9.1)	2,670	8.4		2,816			9.1		1,873		17.5
	Earnings per share		Diluted earnings per share
			Yen				Yen
Three months ended December 31, 2021			42.41				-
Three months ended December 31, 2020			35.64				-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio
	Millions of yen		Millions of yen					%
As of December 31, 2021	98,860				82,409				83.4
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		-
Year ending September 30, 2022				36.00			-				36.00			72.00
(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
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
33,140	(0.7)	6,730	(14.9)	6,920	(14.4)	4,740	(13.7)	89.99
March 31, 2022
Full year	67,550	2.0	12,560	2.0	12,930	2.0	8,860	2.0	168.21

1

4. Notes

1. Changes in significant subsidiaries during the three months ended December 31, 2021 (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 December 31, 2021	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 December 31, 2021	1,048,903	shares	As of September 30, 2021	748,935	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended December 31, 2021	52,543,592	shares	Three months ended December 31, 2020	52,562,719	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of September 30, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	26,426	23,918
Notes and accounts receivable - trade	6,973	-
Notes and accounts receivable - trade, and contract	-	6,911
assets
Inventories	412	562
Other	2,309	1,597
Allowance for doubtful accounts	(14)	(9)
Total current assets	36,107	32,979
Non-current assets
Property, plant and equipment
Buildings and structures, net	7,855	7,741
Land	6,802	6,802
Other, net	2,882	2,798
Total property, plant and equipment	17,540	17,342
Intangible assets	3,605	3,696
Investments and other assets
Investment securities	19,705	19,475
Long-term time deposits	16,600	16,600
Guarantee deposits	1,440	1,436
Other	8,406	7,329
Total investments and other assets	46,152	44,841
Total non-current assets	67,298	65,880
Total assets	103,406	98,860
Liabilities
Current liabilities
Accounts payable - trade	2,402	2,034
Electronically recorded obligations - operating	834	858
Short-term borrowings	80	71
Accounts payable - other	3,034	2,660
Income taxes payable	2,211	106
Contract liabilities	-	498
Provision for bonuses	4,073	1,491
Other	2,083	3,436
Total current liabilities	14,721	11,158
Non-current liabilities
Long-term borrowings	214	214
Retirement benefit liability	3,554	3,576
Provision for share awards	307	313
Other	1,192	1,187
Total non-current liabilities	5,268	5,292
Total liabilities		19,990	16,450

3

			(Millions of yen)
		As of September 30, 2021	As of December 31, 2021
Net assets
Shareholders' equity
Share capital	5,700	5,700
Capital surplus	6,589	6,589
Retained earnings	73,411	73,549
Treasury shares	(1,352)	(2,385)
Total shareholders' equity	84,348	83,452
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	449	295
Remeasurements of defined benefit plans	(1,382)	(1,338)
Total accumulated other comprehensive income	(932)	(1,042)
Total net assets	83,416	82,409
Total liabilities and net assets		103,406	98,860

4

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		December 31, 2020	December 31, 2021
Net sales	14,837	15,292
Cost of sales	4,295	4,348
Gross profit	10,542	10,943
Selling, general and administrative expenses	7,871	7,852
Operating profit	2,670	3,091
Non-operating income
Interest income	11	16
Dividend income	70	83
Dividend income of insurance	12	18
Rental income from land and buildings	12	13
Other	38	18
Total non-operating income	145	151
Non-operating expenses
Interest expenses	0	0
Commission for purchase of treasury shares	-	0
Total non-operating expenses	0	0
Ordinary profit	2,816	3,242
Extraordinary income
Gain on sale of non-current assets	0	0
Total extraordinary income	0	0
Extraordinary losses
Loss on retirement of non-current assets	0	1
Total extraordinary losses	0	1
Profit before income taxes	2,815	3,241
Income taxes - current	106	45
Income taxes - deferred	834	967
Total income taxes	941	1,013
Profit	1,873	2,228
Profit attributable to owners of parent		1,873	2,228

5