Tazmo : FY2022 2Q Results (e​nded June​ 30, 2022​)

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 Six Months Ended June 30, 2022 (Based on Japanese GAAP)

August 10, 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 to file Quarterly Securities Report:	August 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 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		%
Six months ended June 30, 2022	12,885		32.3		1,289	72.7		1,725		110.0		1,246		125.6
Six months ended June 30, 2021	9,742		5.1		746	(39.4)		821		(32.0)		552		(38.1)
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended June 30, 2022			93.21					-
Six months ended June 30, 2021			41.73					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%				Yen
As of June 30, 2022		35,057					16,828				47.2		1,138.04
As of December 31, 2021		29,390					13,574				45.5		1,009.37
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 December 31, 2021		-			0.00			-				16.00			16.00
Year ending December 31, 2022		-			0.00
Year ending December 31, 2022 (Forecast)									-				20.00			20.00

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
Full year	26,133	18.8	2,988	42.8	3,396	53.1	2,412	37.9	172.74

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4. Notes

1. Changes in significant subsidiaries during the six 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

Yes

(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	14,813,300	shares	As of December 31, 2021	13,508,300	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	264,849	shares	As of December 31, 2021	271,849	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	13,368,484	shares	Six months ended June 30, 2021	13,232,138	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	3,267,552	5,686,326
Notes and accounts receivable - trade	5,475,653	4,816,789
Electronically recorded monetary claims - operating	1,201,953	1,465,287
Inventories	11,384,458	13,815,234
Other	746,302	1,579,988
Total current assets	22,075,920	27,363,626
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,527,656	3,622,899
Machinery, equipment and vehicles, net	784,408	800,900
Land	1,259,848	1,291,426
Other, net	299,009	479,485
Total property, plant and equipment	5,870,923	6,194,711
Intangible assets
Software	139,220	136,598
Other	8,246	63,123
Total intangible assets	147,467	199,721
Investments and other assets
Investment securities	401,975	401,975
Deferred tax assets	473,342	455,234
Other	420,484	446,873
Allowance for doubtful accounts	-	(4,905)
Total investments and other assets	1,295,803	1,299,177
Total non-current assets	7,314,194	7,693,610
Total assets		29,390,115	35,057,237

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			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	1,873,986	2,206,915
Electronically recorded obligations - operating	2,488,484	4,153,725
Short-term borrowings	3,171,522	2,539,033
Current portion of bonds payable	300,000	-
Accounts payable - other	1,267,615	1,227,634
Income taxes payable	313,392	477,081
Advances received	3,371,322	-
Contract liabilities	-	2,440,925
Provision for bonuses	241,296	182,798
Provision for product warranties	298,254	288,337
Provision for share awards	5,911	3,834
Liability related to paid transactions	-	458,733
Other	125,737	168,992
Total current liabilities	13,457,522	14,148,012
Non-current liabilities
Long-term borrowings	1,652,717	3,330,088
Provision for share awards	214,321	230,190
Provision for retirement benefits for directors (and other	17,225	19,176
officers)
Provision for share awards for directors (and other	91,310	106,730
officers)
Retirement benefit liability	58,076	62,825
Asset retirement obligations	149,345	175,928
Other	174,968	155,992
Total non-current liabilities	2,357,964	4,080,933
Total liabilities	15,815,486	18,228,945
Net assets
Shareholders' equity
Share capital	2,724,067	3,495,400
Capital surplus	2,659,522	3,430,855
Retained earnings	8,104,586	9,134,517
Treasury shares	(446,249)	(435,066)
Total shareholders' equity	13,041,925	15,625,706
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	300	240
Foreign currency translation adjustment	318,211	930,797
Total accumulated other comprehensive income	318,512	931,037
Non-controlling interests	214,190	271,547
Total net assets	13,574,628	16,828,291
Total liabilities and net assets		29,390,115	35,057,237

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		June 30, 2021	June 30, 2022
Net sales	9,742,761	12,885,557
Cost of sales	7,160,845	9,415,582
Gross profit	2,581,916	3,469,975
Selling, general and administrative expenses	1,835,351	2,180,555
Operating profit	746,565	1,289,419
Non-operating income
Interest income	5,798	8,692
Subsidy income	4,573	4,389
Foreign exchange gains	67,534	439,866
Other	21,104	14,530
Total non-operating income	99,011	467,477
Non-operating expenses
Interest expenses	18,745	16,849
Share issuance costs	-	12,281
Other	4,945	1,770
Total non-operating expenses	23,690	30,901
Ordinary profit	821,885	1,725,996
Extraordinary income
Gain on sale of non-current assets	-	64,999
Total extraordinary income	-	64,999
Profit before income taxes	821,885	1,790,996
Income taxes	251,119	524,930
Profit	570,765	1,266,065
Profit attributable to non-controlling interests	18,525	20,029
Profit attributable to owners of parent		552,240	1,246,035

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