Tazmo : Summary of Consolidated Financial Results for the Nine Months Ended September 30, 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 Nine Months Ended September 30, 2021 (Based on Japanese GAAP)

																		November 12, 2021
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	086-239-5000
	of Administration Division
Scheduled date to file Quarterly Securities Report:		November 12, 2021
Scheduled date to commence dividend payments:		-
Preparation of supplementary material on quarterly financial results:	Yes
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 September 30, 2021 (from January 1, 2021 to September 30, 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	%
Nine months ended September 30, 2021	13,876		(2.7)	838	(49.0)				927		(42.8)			620	(48.3)
Nine months ended September 30, 2020	14,264		20.1	1,644	242.3		1,620		296.8			1,199	378.1
			Earnings per share		Diluted earnings per share
					Yen					Yen
Nine months ended September 30, 2021			46.89					-
Nine months ended September 30, 2020			89.52					-
(2) Consolidated financial position
			Total assets			Net assets		Equity ratio			Net assets per share
			Millions of yen		Millions of yen						%				Yen
As of September 30, 2021		28,150				12,306						43.0				914.87
As of December 31, 2020		26,771				11,574						42.6				861.90
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, 2020			-		0.00				-				16.00		16.00
Year ending December 31, 2021			-		0.00				-
Year ending December 31, 2021 (Forecast)													16.00		16.00

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

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	22,749	16.6	2,105	11.6	2,160	16.8	1,553	(8.3)	117.36

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4. Notes

1. Changes in significant subsidiaries during the nine months ended September 30, 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

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:	No
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 September 30, 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 September 30, 2021	271,949	shares	As of December 31, 2020	277,785	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended September 30, 2021	13,233,456	shares	Nine months ended September 30, 2020	13,402,060	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of September 30, 2021
Assets
Current assets
Cash and deposits	2,928,967	2,844,701
Notes and accounts receivable - trade	3,414,011	3,583,267
Electronically recorded monetary claims - operating	2,380,917	1,369,956
Inventories	10,199,451	12,186,866
Other	727,642	800,202
Total current assets	19,650,990	20,784,994
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,538,386	3,500,223
Machinery, equipment and vehicles, net	554,130	671,616
Land	1,259,555	1,259,848
Other, net	436,113	407,131
Total property, plant and equipment	5,788,187	5,838,820
Intangible assets
Software	165,147	145,710
Other	6,451	6,258
Total intangible assets	171,598	151,968
Investments and other assets
Investment securities	201,810	402,162
Deferred tax assets	565,932	563,064
Other	392,779	409,875
Total investments and other assets	1,160,522	1,375,101
Total non-current assets	7,120,308	7,365,891
Total assets		26,771,299	28,150,885

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			(Thousands of yen)
		As of December 31, 2020	As of September 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	1,455,368	1,806,179
Electronically recorded obligations - operating	2,078,510	2,050,166
Short-term borrowings	2,048,353	2,027,002
Current portion of bonds payable	-	300,000
Accounts payable - other	1,183,840	973,711
Income taxes payable	206,230	206,373
Advances received	4,710,091	5,462,958
Provision for bonuses	131,238	306,370
Provision for product warranties	224,106	217,748
Provision for share-based remuneration	5,112	5,591
Other	111,222	158,939
Total current liabilities	12,154,074	13,515,041
Non-current liabilities
Bonds payable	300,000	-
Long-term borrowings	2,025,373	1,644,682
Provision for share-based remuneration	172,408	203,469
Provision for retirement benefits for directors (and other	14,193	16,274
officers)
Provision for share-based remuneration for directors (and	64,912	83,576
other officers)
Retirement benefit liability	53,115	57,279
Asset retirement obligations	126,892	143,448
Other	285,871	180,996
Total non-current liabilities	3,042,766	2,329,727
Total liabilities	15,196,841	15,844,768
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	6,975,417
Treasury shares	(455,969)	(446,409)
Total shareholders' equity	11,485,086	11,912,596
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	255	516
Foreign currency translation adjustment	(81,979)	196,409
Total accumulated other comprehensive income	(81,723)	196,926
Non-controlling interests	171,094	196,593
Total net assets	11,574,457	12,306,116
Total liabilities and net assets		26,771,299	28,150,885

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Nine months ended	Nine months ended
		September 30, 2020	September 30, 2021
Net sales	14,264,119	13,876,218
Cost of sales	10,137,494	10,300,947
Gross profit	4,126,625	3,575,271
Selling, general and administrative expenses	2,482,022	2,736,765
Operating profit	1,644,603	838,506
Non-operating income
Interest income	3,328	8,433
Subsidy income	19,008	5,282
Foreign exchange gains	-	82,890
Other	15,254	25,161
Total non-operating income	37,591	121,768
Non-operating expenses
Interest expenses	27,967	26,622
Foreign exchange losses	30,128	-
Other	3,418	6,216
Total non-operating expenses	61,513	32,839
Ordinary profit	1,620,680	927,434
Profit before income taxes	1,620,680	927,434
Income taxes	409,201	282,158
Profit	1,211,479	645,275
Profit attributable to non-controlling interests	11,776	24,753
Profit attributable to owners of parent		1,199,702	620,521

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