Consolidated Financial Summary for the Second Quarter of FY2022 (under IFRS)

Consolidated Financial Summary

Cumulative Second Quarter of FY2022

(April 1, 2021 - September 30, 2021)

This document is an English translation of the Japanese language version of the consolidated financial summary that TS TECH Co., Ltd. has produced as a reference purpose.

In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

(%: year-on-yearchange)

Consolidated Financial Summary for the Cumulative Second Quarter of FY2022

(under IFRS)

			November 4, 2021
Company name:	TS TECH CO., LTD.	Stock exchange listing: Tokyo Stock Exchange
Stock code:	7313	URL:	https://www.tstech.co.jp
Representative:	Masanari Yasuda, President

Contact: Takeshi Otsuka, General Manager, Corporate Communication Department	Tel. [phone]
Scheduled date for filing of quarterly securities report:	November 11, 2021
Scheduled date of commencement of dividend payment:	November 29, 2021
Preparation of supplementary explanatory material:	Yes
Quarterly results briefing:	Yes (for institutional investors and analysts)

(Amounts of less than one million yen are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Cumulative Second Quarter of FY2022 (April 1, 2021 - September 30, 2021)

(1) Consolidated Financial Results (Cumulative Total)

			Operating	Income before			Income attributable to	Total
	Revenue	Net income	comprehensive
	income	tax		owners of parent
						income
	Million yen	%	Million yen	%	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Second quarter	171,532	9.6	10,706	7.2	12,190		8.7	8,651	7.8	5,656	35.9	9,165	45.2
of FY2022
Second quarter	156,457	-18.4	9,985	-43.8	11,219		-41.2	8,024	-43.5	4,162	-62.5	6,312	-12.6
of FY2021

	Basic earnings	Diluted earnings
	per share	per share
	Yen	Yen
Second quarter of FY2022	42.13	─
Second quarter of FY2021	30.61	─

(Note) TS TECH implemented a two-for-one common stock split, effective April 1, 2021. "Basic earnings per share" was calculated on the assumption that the relevant stock split had been implemented at the beginning of FY2021.

(2) Consolidated Financial Position

			Equity attributable to	Ratio of equity	Equity attributable to
	Total assets	Total equity	attributable to owners	owners of parent
	owners of parent
			of parent to total assets	per share
	Million yen	Million yen	Million yen	%	Yen
Second quarter	384,420	301,575	280,028	72.8	2,085.11
of FY2022
FY2021	390,478	301,450	277,017	70.9	2,063.47

(Note) TS TECH implemented a two-for-one common stock split, effective April 1, 2021. "Equity attributable to owners of parent per share" was calculated on the assumption that the relevant stock split had been implemented at the beginning of FY2021.

2. Cash Dividends

			Annual cash dividends per share
		End of 1Q	End of 2Q	End of 3Q	End of year	Annual
		Yen	Yen	Yen	Yen	Yen
FY2021	─	43.00	─	47.00	90.00
FY2022	─	26.00
FY2022 (forecast)			─	28.00	54.00
(Notes)
1.	Revision from the most recent announcement of cash dividends forecasts: No
2.	FY2021 end-of-year dividend breakdown: Standard dividend: 43.00 yen 60th anniversary commemorative dividend: 4.00 yen
3.	TS TECH implemented a two-for-one common stock split, effective April 1, 2021.

However, the actual amounts of dividends for FY2021 have not been retroactively adjusted and are shown on a pre-stock split basis.

3. Consolidated Forecasts for FY2022 (April 1, 2021 - March 31, 2022)

(%: year-on-year change)

	Revenue		Operating		Income before	Net income	Income attributable to	Basic earnings
		income		tax		owners of parent	per share
	Million yen		%	Million yen		%	Million yen		%	Million yen	%	Million yen	%	Yen
FY2022	360,000		4.0	27,000		1.0	29,200		-19.4	20,400	-27.4	13,900	-33.0	103.51

(Note) Revision from the most recent announcement of consolidated financial forecasts: Yes

*Notes

(1) Changes in important subsidiaries during the quarter			: None
(Changes in significant subsidiaries affecting the scope of consolidation during this period)
New subsidiaries	― companies	Excluded subsidiaries	― companies
(2) Changes in accounting policies and accounting estimates
1)	Changes in accounting policies required by IFRS			: None
2)	Changes other than 1)				: None
3)	Changes in accounting estimates				: None
(3) Number of shares issued (common stock)
1)	Number of shares issued at the end	2Q of FY2022	136,000,000		FY2021	136,000,000
	of the term including treasury stock	shares		shares
2)	Number of treasury stock at the end	2Q of FY2022	1,700,980		FY2021	1,751,508
	of the term		shares		shares
3) Average number of shares during	2Q of FY2022	134,268,269	2Q of FY2021	135,995,132
	the term (cumulative)	shares	shares

(Note) TS TECH implemented a two-for-one common stock split, effective April 1, 2021. The "number of shares issued (common stock)" was calculated on the assumption that the relevant stock split had been implemented at the beginning of FY2021.

*This quarterly financial statement is exempt from quarterly reviews.

*Explanation regarding the appropriate use of forecasts of financial results and other notes

The consolidated forecasts presented on the previous page are projections made by management at TS TECH Co., Ltd. (hereinafter the "Company") on the basis of information available at the time of preparation. For that reason, they involve risks and uncertainties. Accordingly, we request that readers of this document avoid making investment decisions based exclusively on these forecasts. Please bear in mind the possibility that actual results may differ materially from these forecasts due to various important factors. Readers are asked to proceed to "(3) Qualitative Information Concerning Consolidated Forecasts" on page 4 for assumptions and other information that form the premise for the operating results forecast on the previous page.

For materials used for the results briefing held on November 4, 2021, refer to the following link on our website (https://www.tstech.co.jp/english/).

(IR Information) https://www.tstech.co.jp/english/ir

○Table of Contents
1. Qualitative Information Concerning Quarterly Results ....................................................................................	2
(1)	Qualitative Information Concerning Consolidated Financial Results..........................................................	2
(2)	Qualitative Information Concerning Consolidated Financial Positions .......................................................	4
(3)	Qualitative Information Concerning Consolidated Forecasts ....................................................................	4
2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto ................................	5
(1)	Condensed Quarterly Consolidated Statement of Financial Position ........................................................	5
(2)	Condensed Quarterly Consolidated Statements of Income and Comprehensive Income ............................	7
(3)	Condensed Quarterly Consolidated Statement of Changes in Equity ..........................................................	9
(4)	Condensed Quarterly Consolidated Statement of Cash Flows...................................................................	11
(5)	Notes Concerning Condensed Quarterly Consolidated Financial Statements ...........................................	13

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1. Qualitative Information Concerning Quarterly Results

1. Qualitative Information Concerning Consolidated Financial Results

Revenue for the cumulative second quarter of FY2022 (April 1, 2021 - September 30, 2021) reached 171,532 million yen on a consolidated basis, an increase of 15,075 million yen (9.6%) from the same period in FY2021, mainly due to the elimination of production stoppages that occurred in the first quarter of FY2021 in the Americas and Asia and Europe segments, as well as the impact of exchange rates. This offset the impact of lower production by customers due to disruptions in the supply chain caused primarily by COVID-19 pandemic-

related lockdowns concentrated in Asia and the semiconductor shortage.

Looking at profits, operating profit stood at 10,706 million yen, an increase of 721 million yen (7.2%) year on year due to the impact of higher revenue and various cost containment measures. Income attributable to owners

of parent amounted to 5,656 million yen, an increase of 1,493 million yen (35.9%) year on year.

*USD/JPY	first	half	average	exchange	rate…	FY2021:	¥106.9	FY2022:	¥109.8
*CNY/JPY	first	half	average	exchange	rate…	FY2021:	¥15.3	FY2022:	¥17.0

Operating performance by segment is as follows.

(Japan)

						(Unit: Million yen)
			Cumulative second	Cumulative second	Difference	Change
			quarter of FY2021	quarter of FY2022
	Revenue		35,396	39,012	3,615	10.2%
	Operating income		2,545	2,274	-270	-10.6%
	Main factors for year-on-year change
	Revenue	Revenue increased primarily due to an improved model mix and higher revenue
	accompanying the addition of Honda Cars SAITAMAKITA as a consolidated
		subsidiary, offsetting the impact of lower production by customers due to disruptions
		in the automobile industry supply chain.
	Operating income	Operating income decreased primarily due to temporary expenses, offsetting the
	impact of higher revenue.
(Americas)
						(Unit: Million yen)
			Cumulative second	Cumulative second	Difference	Change
			quarter of FY2021	quarter of FY2022
	Revenue		63,156	73,770	10,614	16.8%
	Operating income		1,262	111	-1,150	-91.1%

Main factors for year-on-year change

Revenue

Operating income

Revenue increased primarily due to the elimination of production stoppages stemming from the COVID-19 pandemic that occurred in the first quarter of FY2021, offsetting the impact of lower production by customers due to disruptions in the automobile industry supply chain.

Operating income decreased primarily due to the elimination of COVID-19pandemic-related subsidies received in the previous period, offsetting the impact of higher revenue.

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