SB Technology : FY2022 Consolidated Financial Report (Japanese GAAP)（316K）

Disclaimer:

This financial report is solely a translation of the "Kessan Tanshin" (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

April 27, 2023

SB Technology Corp.

Consolidated Financial Report for the Fiscal Year Ended March 31, 2023

[Japanese GAAP]

Company name: SB Technology Corp. (Tokyo Stock Exchange/Code No. 4726)

(URLhttps://www.softbanktech.co.jp/)
Representative:	Shinichi Ata, President & CEO
Contact:	Masaaki Okazaki, Member of the Board, Executive Vice President & CFO
		Phone: [phone]
Scheduled date of General Shareholders' Meeting:	June 19, 2023
Scheduled date of filing of Securities Report:	June 19, 2023
Scheduled date of payment of dividend:	June 20, 2023
Preparation of supplementary materials for financial results:	Yes
Holding of financial results meeting:	Yes (for institutional investors and analysts)

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)

(1) Consolidated Results of Operations				(Percentages represent year-on-year changes)
	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%
Fiscal year ended Mar. 31, 2023	67,227	1.6	5,557	7.8	5,499	7.1	3,497	△3.7
Fiscal year ended Mar. 31, 2022	66,183	－	5,152	－	5,133	－	3,630	－

Note: Comprehensive income (million yen)			Fiscal year ended Mar. 31, 2023:	3,802	(down 1.8%)
					Fiscal year ended Mar. 31, 2022:	3,872	(－)
		Net income per		Diluted net	Return on equity	Ordinary income	Operating income
		share		income per share	on total assets	to net sales
			Yen		Yen	%		%	%
	Fiscal year ended Mar. 31, 2023		175.03		173.52	16.1		12.2	8.3
	Fiscal year ended Mar. 31, 2022		179.39		177.44	18.5		12.3	7.8
	Reference: Equity in earnings of affiliates (million yen)
	Fiscal year ended Mar. 31, 2023: 5	Fiscal year ended Mar. 31, 2022: 10

Note: Effective from the beginning of the fiscal year ended March 2022, the Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc., and accordingly, the consolidated results above for the fiscal year ended March 2022 is the amount after the adoption of the said accounting standard, etc.

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders' equity

Net assets per share

ratio

Million yen

Million yen

%

Yen

As of Mar. 31, 2023

45,466

25,167

49.4

1,131.42

As of Mar. 31, 2022

44,365

23,379

47.5

1,039.71

Reference: Shareholders' equity (million yen)

As of Mar. 31, 2023: 22,475

As of Mar. 31, 2022: 21,062

(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

Million yen

Million yen

Million yen

Million yen

Fiscal year ended Mar. 31, 2023

3,450

△1,500

△2,496

8,160

Fiscal year ended Mar. 31, 2022

400

△861

△493

8,701

2. Dividends

Dividends per share

Total

Payout ratio

Dividend on

equity

1Q-end

2Q-end

3Q-end

Year-end

Total

dividends

(consolidated)

(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

Fiscal year ended Mar. 31, 2022

－

20.00

－

30.00

50.00

1,012

27.9

5.1

Fiscal year ended Mar. 31, 2023

－

25.00

－

35.00

60.00

1,191

34.3

5.5

Fiscal year ending Mar. 31, 2024

－

30.00

－

30.00

60.00

(forecast)

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)

(Percentages represent year-on-year changes)

	Net sales		Operating income	Ordinary income	Profit attributable to	Net income per share
								owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	69,000		2.6	6,400	15.2	6,350	15.5	3,950	12.9	197.68

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Changes in accounting policies and accounting estimates, and restatements
3. 1. Changes in accounting policies due to revisions in accounting standards, others: Yes
   2. Changes in accounting policies other than i. above: None
   3. Changes in accounting estimates: None
   4. Restatements: None
4. Number of outstanding shares (common stock)
5. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of Mar. 31, 2023:

22,757,800 shares

As of Mar. 31, 2022:

22,742,800 shares

1. Number of treasury shares at the end of the period

As of Mar. 31, 2023:

2,892,930 shares

As of Mar. 31, 2022:

2,484,351 shares

1. Average number of shares outstanding during the period

Fiscal year ended Mar. 31, 2023: 19,981,416shares Fiscal year ended Mar. 31, 2022: 20,239,627 shares

Reference: Summary of Non-consolidated Financial Results

Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)

(1) Non-consolidated Results of Operations				(Percentages represent year-on-year changes)
	Net sales		Operating income	Ordinary income	Net income
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Fiscal year ended Mar. 31, 2023	58,129		2.1	3,835	2.6	3,728	0.8	2,667	△14.9
Fiscal year ended Mar. 31, 2022	56,923		－	3,738	－	3,699	－	3,136	－
	Net income per share	Diluted net income per share
			Yen			Yen
Fiscal year ended Mar. 31, 2023			133.50			133.42
Fiscal year ended Mar. 31, 2022			154.95			154.27

Note: Effective from the beginning of the fiscal year ending March 2022, the Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc., and accordingly, the non-consolidated results above for the fiscal year ending March 2022 is the amount after the adoption of the said accounting standard, etc.

(2) Non-consolidated Financial Position

	Total assets	Net assets	Shareholders' equity ratio	Net assets per share
As of Mar. 31, 2023		Million yen	Million yen		%	Yen
	38,850	19,066		48.3	943.83
As of Mar. 31, 2022		38,236	18,436		47.5	896.42
Reference: Shareholders' equity (million yen)	As of Mar. 31, 2023: 18,748	As of Mar. 31, 2022: 18,160

• This consolidated financial report is not subject to fiscal year ended review procedures by a certified public accountant or audit company.
• Explanation for appropriate use of operating forecasts, and other special items

Cautionary statement with respect to forward-looking statements

Forecasts regarding future performance in this report are based on assumptions considered appropriate and other reasonable information available to the Company at the time this report was created. This report is not promised by the Company regarding future performance. The actual performance may differ significantly from these forecasts for a variety of reasons.

How to view supplementary information at the financial results meeting

The Company plans to hold a financial results meeting (online) for institutional investors and analysts on April 27, 2023. Supplementary materials for financial results will be disclosed, using the Timely Disclosure network (TDnet), and will be available on the Company's website (https://www.softbanktech.co.jp/corp/ir/).

SoftBank Technology Corp. (4726) Financial Report

Consolidated Financial Report for the Fiscal Year Ended March 31, 2023

Consolidated Financial Statements

(1) Consolidated Balance Sheet

				(Millions of yen)
			As of March 31, 2022	As of March 31, 2023
	Assets
	Current assets
	Cash and deposits	8,762	8,221
	Notes and accounts receivable
	- trade, and contract assets	22,290	24,133
	Merchandise		66	131
	Other	3,207	3,136
	Allowance for doubtful accounts		△0	△0
	Total current assets		34,326	35,622
	Non-current assets
	Property, plant and equipment
	Buildings	1,700	1,685
	Accumulated depreciation		△960	△1,001
	Buildings, net		739	684
	Tools, furniture and fixtures	2,347	2,561
	Accumulated depreciation		△1,431	△1,570
	Tools, furniture and fixtures, net		916	991
	Other	13	14
	Accumulated depreciation		△7	△9
	Other, net		5	5
	Total property, plant and equipment		1,661	1,681
	Intangible assets
	Goodwill	1,093	836
	Software	2,553	2,531
	Software in progress	461	476
	Customer relationships	262	189
	Other	116	86
	Total intangible assets		4,486	4,120
	Investments and other assets
	Investment securities	625	667
	Deferred tax assets	1,309	1,297
	Other		1,953	2,075
	Total investments and other assets	3,888	4,040
	Total non-current assets		10,036	9,842
	Deferred assets
	Share issuance costs		2	1
	Total deferred assets		2	1
	Total assets		44,365	45,466

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SoftBank Technology Corp. (4726) Financial Report

Consolidated Financial Report for the Fiscal Year Ended March 31, 2023

				(Millions of yen)
			As of March 31, 2022	As of March 31, 2023
	Liabilities
	Current liabilities
	Accounts payable - trade		7,528	7,020
	Current portion of long-term borrowings	394	309
	Lease liabilities	19	14
	Accounts payable - other	4,719	4,493
	Income taxes payable	1,379	1,372
	Contract liabilities	1,835	2,186
	Provision for bonuses		1,876	1,784
	Provision for loss on orders received	403	626
	Provision for defect repair	16	39
	Asset retirement obligations	24	－
	Other		699	742
	Total current liabilities	18,896	18,590
	Non-current liabilities
	Long-term borrowings	799	489
	Lease liabilities	96	81
	Deferred tax liabilities	26	－
	Contract liabilities	709	670
	Retirement benefit liability	53	60
	Asset retirement obligations		334	336
	Other	69	69
	Total non-current liabilities		2,088	1,708
	Total liabilities	20,985	20,298
	Net assets
	Shareholders' equity
	Share capital	1,254	1,270
	Capital surplus	1,567	1,613
	Retained earnings	19,789	22,182
	Treasury shares		△1,555	△2,600
	Total shareholders' equity	21,055	22,466
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities		2	3
	Foreign currency translation adjustment	4	5
	Total accumulated other comprehensive income		7	9
	Share acquisition rights		279	320
	Non-controlling interests		2,037	2,371
	Total net assets		23,379	25,167
	Total liabilities and net assets		44,365	45,466

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