TBK : Summary of Consolidated Financial Results for the Three Months Ended September 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 September 30, 2022 (Based on Japanese GAAP)

			November 10, 2022
Company name:	TBK Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	7277	URL	https://www.tbk-jp.com/
Representative:	CEO		Kaoru Ogata

Executive Officer and General Manager of
Inquiries:				Masahiko Kuramura	TEL [phone]
Business Planning Division
Scheduled date to file Quarterly Securities Report:				November 11, 2022
Scheduled date to commence dividend payments:				-
Preparation of supplementary material on quarterly financial results:		Yes
Holding of quarterly financial results meeting:				Yes
							(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 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 September 30, 2022		26,215	0.2		(629)	-	(261)		-	(437)	-
Six months ended September 30, 2021		26,167	34.1		793	-	1,198		-	892	-
		Earnings per share			Diluted earnings per share
				Yen			Yen
Six months ended September 30, 2022			(15.41)			-
Six months ended September 30, 2021			31.44			-
(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, 2022			53,271				29,070				53.5	1,004.70
As of March 31, 2022			50,476				28,479				55.4		986.50

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 March 31, 2022	-	5.00	-	7.00	12.00
Year ending March 31, 2023	-	0.00
Year ending March 31, 2023 (Forecast)			-	0.00	0.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

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	53,000	3.5	(400)		-	(400)		-	(600)		-	(21.14)

1

4. Notes

(1) Changes in significant subsidiaries during the six months ended September 30, 2022

	(changes in specified subsidiaries resulting in the change in scope of consolidation):	No
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	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:	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, 2022	29,424,635	shares	As of March 31, 2022	29,424,635	shares
Number of treasury shares at the end of the period
	As of September 30, 2022	1,030,131	shares	As of March 31, 2022	1,052,351	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2022	28,380,574	shares	Six months ended September 30, 2021	28,370,756	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of September 30, 2022
Assets
Current assets
Cash and deposits	4,229	3,220
Notes and accounts receivable - trade	12,169	13,449
Electronically recorded monetary claims - operating	614	586
Inventories	6,837	7,940
Income taxes refund receivable	104	44
Other	943	846
Allowance for doubtful accounts	(10)	(11)
Total current assets	24,888	26,076
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,596	4,654
Machinery, equipment and vehicles, net	8,202	8,517
Land	3,426	3,559
Construction in progress	1,660	2,582
Other, net	1,148	1,220
Total property, plant and equipment	19,035	20,533
Intangible assets
Software	154	145
Goodwill	121	77
Other	70	75
Total intangible assets	345	298
Investments and other assets
Investment securities	2,975	2,988
Investments in capital of subsidiaries and associates	1,813	1,870
Long-term loans receivable from subsidiaries and	73	77
associates
Deferred tax assets	1,198	1,268
Other	162	174
Allowance for doubtful accounts	(15)	(15)
Total investments and other assets	6,207	6,363
Total non-current assets	25,588	27,195
Total assets	50,476	53,271

3

			(Millions of yen)
		As of March 31, 2022	As of September 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	4,964	5,655
Electronically recorded obligations - operating	2,463	2,803
Short-term borrowings	5,504	6,414
Lease liabilities	124	77
Income taxes payable	201	160
Provision for bonuses	753	709
Provision for product warranties	36	85
Provision for share awards for directors (and other	64	69
officers)
Notes payable - facilities	178	236
Other	1,667	2,251
Total current liabilities	15,960	18,462
Non-current liabilities
Long-term borrowings	1,642	1,259
Lease liabilities	98	84
Deferred tax liabilities	1,082	1,146
Retirement benefit liability	3,088	3,123
Other	124	124
Total non-current liabilities	6,036	5,737
Total liabilities	21,996	24,200
Net assets
Shareholders' equity
Share capital	4,617	4,617
Capital surplus	264	264
Retained earnings	20,800	20,164
Treasury shares	(463)	(453)
Total shareholders' equity	25,219	24,593
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	948	955
Revaluation reserve for land	20	20
Foreign currency translation adjustment	1,963	3,088
Remeasurements of defined benefit plans	(162)	(136)
Total accumulated other comprehensive income	2,769	3,928
Non-controlling interests	490	549
Total net assets	28,479	29,070
Total liabilities and net assets	50,476	53,271

4

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2021	September 30, 2022
Net sales	26,167	26,215
Cost of sales	22,877	24,294
Gross profit	3,290	1,920
Selling, general and administrative expenses	2,496	2,549
Operating profit (loss)	793	(629)
Non-operating income
Interest income	3	4
Dividend income	40	68
Foreign exchange gains	40	377
Share of profit of entities accounted for using equity method	334	-
Subsidy income	29	110
Other	31	56
Total non-operating income	480	617
Non-operating expenses
Interest expenses	61	86
Share of loss of entities accounted for using equity method	-	151
Other	13	12
Total non-operating expenses	75	249
Ordinary profit (loss)	1,198	(261)
Extraordinary income
Gain on sale of non-current assets	21	1
Total extraordinary income	21	1
Extraordinary losses
Loss on sale of non-current assets	0	0
Loss on abandonment of non-current assets	0	0
Total extraordinary losses	0	0
Profit (loss) before income taxes	1,219	(260)
Income taxes - current	176	169
Income taxes for prior periods	(8)	-
Income taxes - deferred	136	(10)
Total income taxes	305	159
Profit (loss)	914	(420)
Profit attributable to non-controlling interests	22	17
Profit (loss) attributable to owners of parent	892	(437)

5