Tokyo Seimitsu : Notice regarding Completion of Submission of FY2021/3 3Q Quarterly Securities Report, and Revision of FY2021/3 3Q Consolidated Financial Statements

TOKYO SEIMITSU CO., LTD.

2968-2 Ishikawa machi, Hachioji City Tokyo 192-8515 Japan

Tel: [phone]

March 15th, 2021

Notice regarding Completion of Submission of

FY2021/3 3Q Quarterly Securities Report, and Revision of

FY2021/3 3Q Consolidated Financial Statements

Company name: TOKYO SEIMITSU CO., LTD.

(Stock code: 7729, Tokyo Stock Exchange 1st Section) Representative: Hitoshi Yoshida, President and CEO

Inquiries: Koichi Kawamura, Representative Director and CFO (Tel: [phone])

As described in the announcement "Notice regarding Approval of Extension of due date to File FY2021/3Q Quarterly Securities Report" on February 15th, 2021, TOKYO SEIMITSU CO., LTD. (the Company) had approval of extension of the due date to file Quarterly Security Report for 3rd quarter of FY2021/3 (from October 1st, 2020 to December 31st, 2020). Today, the Company filed the report to Kanto Local Finance Bureau.

The Company also announced revision of Consolidated Financial Statements for 3rd Quarter of FY2021/3 today.

• 1. Quarterly Securities Report filed today

  Quarterly Securities Report for 3rd Quarter of FY2021/3 (from October 1st, 2020 to December 31st, 2020)

• 2. Revision of Consolidated Financial Statements announced today

  Consolidated Financial Statements for 3rd Quarter of FY2021/3

For details of revision of Consolidated Financial Statements, please refer to "(Revision) Notice regarding revision of "Consolidated Financial Statements for the 3rd Quarter of the Fiscal Year Ending March 31st, 2021 (FY2021/3), Japan GAAP"" announced today.

3. Reasons and backgrounds for the revisions

As described in the announcement "Notice regarding Establishment of Special Investigation Committee, and Outline of Misconduct at Tokyo Seimitsu's Consolidated Company" on February 8th, 2021, the Company had established Special Investigation Committee (the Committee) consisting of external experts and an external corporate director to thoroughly clarify the whole truth of the misconducts confirmed at Tosei Engineering Corp, a fully owned consolidated subsidiary which are (a) Embezzlement by former president, (b) Inappropriate transaction through collection of long overdue trade and accounts receivable, and (c) Improper allocation of outsourcing expenses. Since then, the Committee has conducted thorough investigation.

The Company received an investigation report from the Committee on March 12th. Based on the investigation results, the Company filed Quarterly Securities Report for 3rd Quarter of FY2021/3 and revised Consolidated Financial Statements for 3rd Quarter of FY2021/3 today.

4. Impacts to consolidated financial performance for 3rd Quarter of FY2021/3 upon revision

Consolidated results for 3rd quarter of FY2021/3 (April 1st - December 31st, 2020)unit: Million Yen

Before Revision	After Revision	Change
Net Sales	66,709	66,709	0
Operating Profit	9,605	9,317	- 288
Recurring Profit	9,752	9,352	- 400
Profit before income taxes and minority interests	9,614	9,214	- 400
Net Profit(Loss) attributable to Owners of the Parent	7,455	7,005	- 449

Note: The revision in the announcement "(Revision) Notice regarding revision of "Consolidated Financial Statements for the 3rd Quarter of the Fiscal Year Ending March 31st, 2021 (FY2021/3), Japan GAAP"" announced today is inclusive of other revision by the following events which occurred from February 2nd, 2021 (The day the Company announced "Consolidated Financial Statements for the 3rd Quarter of the Fiscal Year Ending March 31st, 2021 (FY2021/3), Japan GAAP") to today and shall be reflected to accumulated 3rd Quarter financial results. Therefore, some numeral revisions above may not match.

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