Tazmo : FY2021 Annual Results (ended December 31, 2021)

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 Year Ended December 31, 2021

(Based on Japanese GAAP)

																				February 14, 2022
Company name:	TAZMO CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	6266	URL https://www.tazmo.co.jp/ja/ir/index.html
Representative:	Representative Director			TOSHIO IKEDA
Inquiries:	Senior Managing Director,General Maneger	SHIGEO KAMEYAMA	TEL [phone]
of Administration Division
Scheduled date of ordinary general meeting of shareholders:		March 25, 2022
Scheduled date to file Securities Report:			March 28, 2022
Scheduled date to commence dividend payments:			March 28, 2022
Preparation of supplementary material on financial results:			Yes
Holding of financial results meeting:							Yes		(for analysts)
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)
(1) Consolidated operating results														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		%
Year ended December 31, 2021		22,001		12.7		2,092		10.9			2,218	20.0	1,749		3.3
Year ended December 31, 2020		19,516		7.1		1,886		98.2			1,849	102.8	1,693		133.2
						Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			Earnings per share			owners of
							share				parent/equity				assets			sales
				Yen			Yen					%					%				%
Year ended December 31, 2021		132.21				-					14.1					7.9				9.5
Year ended December 31, 2020		126.75				-					15.7					7.0				9.7
(2) Consolidated financial position
			Total assets			Net assets			Equity ratio	Net assets per share
			Millions of yen		Millions of yen						%					Yen
As of December 31, 2021		29,390						13,574						45.5			1,009.37
As of December 31, 2020		26,771						11,574						42.6					861.90
(3) Consolidated cash flows
			Cash flows from		Cash flows from		Cash flows from	Cash and cash equivalents
			operating activities		investing activities	financing activities		at end of period
			Millions of yen		Millions of yen			Millions of yen		Millions of yen
Year ended December 31, 2021					336						(795)						523					2,981
Year ended December 31, 2020		2,178						(877)						(1,059)					2,749
2. Cash dividends
						Annual dividends per share						Total cash	Dividend payout	Ratio of dividends
																	to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen		Yen				Yen		Yen	Millions of yen	%			%
Year ended December 31, 2020		-		0.00		-				16.00		16.00		216	12.6			1.9
Year ended December 31, 2021		-		0.00		-				16.00		16.00		216	12.1			1.6
Year ending December 31, 2022		-			0.00		-				20.00		20.00			15.3
(Forecast)

1

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 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
Six months ending	12,090	24.1	856	14.8	832	1.2		565	2.4	42.70
June 30, 2022
Full year	25,338	15.2	2,555	22.1	2,503	12.8		1,731	(1.0)	130.84
4. Notes
(1) Changes in significant subsidiaries during the year ended December 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) 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:	No
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) 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	13,508,300	shares	As of December 31, 2020	13,508,300	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	271,849	shares	As of December 31, 2020	277,785	shares
Average number of shares during the period
	Year ended December 31, 2021	13,234,187	shares	Year ended December 31, 2020	13,358,873	shares

2

Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Assets
Current assets
Cash and deposits	2,928,967	3,267,552
Notes and accounts receivable - trade	3,414,011	5,475,653
Electronically recorded monetary claims -	2,380,917	1,201,953
operating
Merchandise and finished goods	82,860	73,744
Work in process	9,177,324	9,260,408
Raw materials and supplies	939,265	2,050,306
Other	727,642	746,302
Total current assets	19,650,990	22,075,920
Non-current assets
Property, plant and equipment
Buildings and structures	7,510,736	7,758,239
Accumulated depreciation	(3,972,349)	(4,230,582)
Buildings and structures, net	3,538,386	3,527,656
Machinery, equipment and vehicles	2,748,065	3,219,466
Accumulated depreciation	(2,193,934)	(2,435,058)
Machinery, equipment and vehicles, net	554,130	784,408
Tools, furniture and fixtures	985,790	1,048,473
Accumulated depreciation	(817,866)	(884,397)
Tools, furniture and fixtures, net	167,923	164,075
Land	1,259,555	1,259,848
Leased assets	129,388	130,648
Accumulated depreciation	(108,499)	(115,134)
Leased assets, net	20,888	15,513
Construction in progress	149,844	56,800
Other	159,142	161,432
Accumulated depreciation	(61,685)	(98,813)
Other, net	97,456	62,619
Total property, plant and equipment	5,788,187	5,870,923
Intangible assets
Software	165,147	139,220
Other	6,451	8,246
Total intangible assets	171,598	147,467
Investments and other assets
Investment securities	201,810	401,975
Deferred tax assets	565,932	473,342
Other	392,779	420,484
Total investments and other assets	1,160,522	1,295,803
Total non-current assets	7,120,308	7,314,194
Total assets		26,771,299	29,390,115

3

						(Thousands of yen)
					As of December 31, 2020	As of December 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	1,455,368	1,873,986
Electronically recorded obligations - operating	2,078,510	2,488,484
Short-term borrowings				2,048,353	3,171,522
Current portion of bonds payable	-	300,000
Lease obligations				8,268	8,666
Accounts payable - other				1,183,840	1,267,615
Income taxes payable				206,230	313,392
Advances received				4,710,091	3,371,322
Provision for bonuses				131,238	241,296
Provision for product warranties			224,106	298,254
Provision for share awards				5,112	5,911
Other					102,954	117,070
Total current liabilities				12,154,074	13,457,522
Non-current liabilities
Bonds payable				300,000	-
Long-term borrowings				2,025,373	1,652,717
Lease obligations				24,154	19,016
Deferred tax liabilities				53,161	29,928
Provision for share awards				172,408	214,321
Provision for retirement benefits for directors (and	14,193	17,225
other officers)
Provision for share awards for directors (and other	64,912	91,310
officers)
Retirement benefit liability			53,115	58,076
Asset retirement obligations			126,892	149,345
Other					208,555	126,022
Total non-current liabilities			3,042,766	2,357,964
Total liabilities					15,196,841	15,815,486
Net assets
Shareholders' equity
Share capital					2,724,067	2,724,067
Capital surplus				2,645,988	2,659,522
Retained earnings				6,571,001	8,104,586
Treasury shares				(455,969)	(446,249)
Total shareholders' equity				11,485,086	13,041,925
Accumulated other comprehensive income
Valuation	difference	on	available-for-sale	255	300
securities
Foreign currency translation adjustment	(81,979)	318,211
Total accumulated other comprehensive income	(81,723)	318,512
Non-controlling interests				171,094	214,190
Total net assets					11,574,457	13,574,628
Total liabilities and net assets				26,771,299	29,390,115

4

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		December 31, 2020	December 31, 2021
Net sales	19,516,653	22,001,810
Cost of sales	14,216,031	16,068,117
Gross profit	5,300,621	5,933,693
Selling, general and administrative expenses
Freight costs	221,370	281,634
Remuneration for directors (and other officers)	223,057	261,444
Salaries and allowances	930,123	1,004,145
Bonuses	185,605	258,293
Legal welfare expenses	182,630	225,701
Retirement benefit expenses	45,578	50,187
Research and development expenses	376,195	374,248
Other	1,249,235	1,385,804
Total selling, general and administrative expenses	3,413,796	3,841,460
Operating profit	1,886,824	2,092,232
Non-operating income
Interest income	7,174	15,335
Subsidy income	36,227	6,580
Foreign exchange gains	-	101,497
Other	19,098	42,187
Total non-operating income	62,500	165,601
Non-operating expenses
Interest expenses	35,149	31,125
Foreign exchange losses	52,702	-
Other	12,119	8,274
Total non-operating expenses	99,971	39,399
Ordinary profit	1,849,354	2,218,434
Extraordinary income
Subsidy income	46,898	-
Total extraordinary income	46,898	-
Extraordinary losses
Loss on tax purpose reduction entry of non-current	46,792	-
assets
Impairment losses	81,319	-
Total extraordinary losses	128,111	-
Profit before income taxes	1,768,140	2,218,434
Income taxes - current	218,750	357,524
Income taxes - deferred	(162,638)	75,751
Total income taxes	56,112	433,276
Profit	1,712,028	1,785,158
Profit attributable to non-controlling interests	18,731	35,467
Profit attributable to owners of parent		1,693,296	1,749,690

5