SB Technology : FY2023 First Quarter Consolidated Financial Report (Japanese GAAP)（241K）

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.

July 27, 2023

SB Technology Corp.

Consolidated Financial Report for the First Quarter of Fiscal Year Ending March 31, 2024

(Three Months Ended June 30, 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 filing of Quarterly Report:	August 10, 2023
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for quarterly financial results:	Yes
Holding of quarterly 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 Three Months Ended June 30, 2023 (April 1, 2023 - June 30, 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	%
Three months ended Jun. 30, 2023	15,958	2.6	1,057	△2.6	1,054	△1.4	505	△21.9
Three months ended Jun. 30, 2022	15,560	3.8	1,085	19.0	1,070	21.9	646	25.1

Note: Comprehensive income (million yen)	Three months ended Jun. 30, 2023:	557	(down 20.2%)
		Three months ended Jun. 30, 2022:	697	(up 25.7%)
	Net income per share	Diluted net income per share
		Yen	Yen
Three months ended Jun. 30, 2023		25.44	25.18
Three months ended Jun. 30, 2022		32.01	31.68

(2) Consolidated Financial Position

	Total assets	Net assets		Shareholders' equity	Net assets per share
		ratio
		Million yen	Million yen		%	Yen
As of Jun. 30, 2023		41,032	25,000		54.3	1,121.75
As of Mar. 31, 2023		45,466	25,167		49.4	1,131.42
Reference: Shareholders' equity (million yen)	As of Jun. 30, 2023: 22,283	As of Mar. 31, 2023: 22,475

2. Dividends

				Dividends per share
	1Q-end			2Q-end	3Q-end	Year-end	Total
		Yen	Yen	Yen	Yen	Yen
Fiscal year ended Mar. 31, 2023	－		25.00	－	35.00	60.00
Fiscal year ending Mar. 31, 2024	－
Fiscal year ending Mar. 31, 2024 (forecast)			30.00	－	30.00	60.00

Note: Revisions to the most recently announced dividend forecast: None

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	68,000	1.1	5,900	6.2	5,750	4.6	8,200	134.5	412.79

Note: Revisions to the most recently announced consolidated forecast: None

* Notes

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

As of Jun. 30, 2023:

22,757,800 shares

As of Mar. 31, 2023:

22,757,800 shares

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

As of Jun. 30, 2023:	2,892,968shares	As of Mar. 31, 2023:	2,892,930shares
iii. Average number of shares outstanding during the period
Three months ended Jun. 30, 2023:	19,864,851shares	Three months ended Jun. 30, 2022:	20,201,538shares

• This consolidated financial report is not subject to quarterly 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 based upon valid 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 materials for quarterly financial results

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

SB Technology Corp. (4726) Financial Report

Consolidated Financial Report for the three-month period ended June 30, 2023

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

				(Millions of yen)
			As of March 31,2023	As of June 30, 2023
	Assets
	Current assets
	Cash and deposits	8,221	12,935
	Notes and accounts receivable - trade, and contract assets	24,133	13,402
	Merchandise	131	187
	Other	3,136	5,060
	Allowance for doubtful accounts		△0	△0
	Total current assets	35,622	31,585
	Non-current assets
	Property, plant and equipment
	Buildings, net	684	665
	Tools, furniture and fixtures, net	991	959
	Other, net		5	34
	Total property, plant and equipment		1,681	1,659
	Intangible assets
	Goodwill	836	708
	Software	2,531	2,445
	Software in progress	476	644
	Customer relationships	189	171
	Other	86	79
	Total intangible assets	4,120	4,048
	Investments and other assets
	Investment securities	667	670
	Deferred tax assets	1,297	1,017
	Other		2,075	2,051
	Total investments and other assets		4,040	3,738
	Total non-current assets	9,842	9,446
	Deferred assets
	Share issuance costs		1	0
	Total deferred assets	1	0
	Total assets		45,466	41,032

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SB Technology Corp. (4726) Financial Report

Consolidated Financial Report for the three-month period ended June 30, 2023

				(Millions of yen)
			As of March 31, 2023	As of June 30, 2023
	Liabilities
	Current liabilities
	Accounts payable - trade		7,020	3,785
	Current portion of long-term borrowings	309	339
	Lease liabilities	14	12
	Accounts payable - other	4,493	4,453
	Income taxes payable	1,372	135
	Contract liabilities	2,186	3,043
	Provision for bonuses		1,784	614
	Provision for bonuses for directors (and other officers)		－	31
	Provision for loss on orders received	626	660
	Provision for defect repair	39	6
	Other		742	1,394
	Total current liabilities	18,590	14,477
	Non-current liabilities
	Long-term borrowings	489	380
	Lease liabilities	81	78
	Contract liabilities	670	626
	Retirement benefit liability	60	62
	Asset retirement obligations	336	337
	Other		69	69
	Total non-current liabilities	1,708	1,555
	Total liabilities	20,298	16,032
	Net assets
	Shareholders' equity
	Share capital	1,270	1,270
	Capital surplus	1,613	1,610
	Retained earnings	22,182	21,992
	Treasury shares		△2,600	△2,600
	Total shareholders' equity	22,466	22,272
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities	3	3
	Foreign currency translation adjustment		5	6
	Total accumulated other comprehensive income		9	10
	Share acquisition rights	320	340
	Non-controlling interests	2,371	2,376
	Total net assets		25,167	25,000
	Total liabilities and net assets	45,466	41,032

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SB Technology Corp. (4726) Financial Report

Consolidated Financial Report for the three-month period ended June 30, 2023

1. Quarterly Consolidated Statements of Income and Comprehensive Income (For the Three-month Period)

			（Millions of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2022	June 30, 2023
Net sales		15,560	15,958
Cost of sales	12,154	12,265
Gross profit		3,405	3,693
Selling, general and administrative expenses		2,320	2,636
Operating profit		1,085	1,057

Non-operating income

Interest income

Dividend income

Share of profit of entities accounted for using equity method Refund of defined contribution pension plan

Foreign exchange gains

Miscellaneous income

Total non-operating income

Non-operating expenses

Interest expenses

Share of loss of entities accounted for using equity method Donations

Foreign exchange losses

Miscellaneous losses

Total non-operating expenses

Ordinary profit

Extraordinary income

Gain on reversal of share acquisition rights

Total extraordinary income

Extraordinary losses

Industrial accident settlement

Amortization of goodwill

Total extraordinary losses

Profit before income taxes

Income taxes - current

Income taxes - deferred

	0		0
	2		1
	－	3
	0		1
	－	1
	6		3
	9		11
	2		1
	1		－
	10	10
	10	－
	0		2
	24	13
	1,070		1,054
	7		－
	7		－
	－	70
	－	63
	－	133
	1,077	921
	64	86
	316	279

Total income taxes	380	366
Profit	696	555
Profit attributable to
Profit attributable to owners of parent	646	505
Profit attributable to non-controlling interests	49	50

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