T&S : Summary of Financial Results for the First Quarter of the Fiscal Year 2022 (FY11/2022)

Summary of Financial Results for the First Quarter of the Fiscal Year 2022 (FY11/2022)

［ Japan Standards ］(Non-Consolidated)

April 14, 2022

Company name: Securities code: Representative:T&S inc. 4055

Listing: URL:Tokyo Stock Exchangehttps://www.tecsvc.co.jp/

President and CEO Yoshihiro Takekawa

Contact:

Director, Executive Officer and General Manager of Corporate Division Hiroshi Kinoshita Tel: [phone]

Scheduled date of file of Quarterly Securities Report:	April 14, 2022
Scheduled date of 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.

Financial results of the First Quarter of FY11/2022 (December 1, 2021 - February 28, 2022)

(1) Operating results (cumulative)

(Percentages indicate year-on-year changes)Net sales

Operating incomeOrdinary incomeQuarterly net income

1Q of FY11/2022 1Q of FY11/2021

Million Yen 733 586

％ Million Yen 25.0

-

126 71

％ 77.0

Million Yen

126

％ 76.3

-

71

-

Million Yen 88 50

％ 74.4

-

Quarterly net income per share	Quarterly diluted net income per share
1Q of FY11/2022 1Q of FY11/2021	Yen 11.65 7.08	Yen 11.47 6.57

(Notes)

1. Since quarterly financial statements were not prepared for the first quarter of the FY11/2020, the rate of change from the same quarter of the FY11/2021 is not shown.

2. The Company conducted a 2-for-1 stock split on December 1, 2021. Quarterly net income per share and quarterly diluted net income per share has been calculated on the assumption that conducted the stock split at the beginning of the FY11/2021.

(2) Financial position

Total assets	Net assets	Equity ratio
1Q of FY11/2022 FY11/2021	Million Yen 1,826 1,987	Million Yen 1,502 1,495	% 82.2 75.2

(Reference) Shareholders' equity

1Q of FY11/2022: 1,502 million yenFY11/2021: 1,495 million yen

2.

Dividends

Annual dividend
End of Q1	End of Q2	End of Q3	End of term	Total
FY11/2021 FY11/2022	Yen - -	Yen 0.00	Yen -	Yen 8.00	Yen 8.00
FY11/2022 (forecasts)	0.00	-	5.00	5.00

(Notes)

• 1. Revision to dividend forecasts published most recently: No

• 2. The Company conducted a 2-for-1 stock split on December 1, 2021.

  Dividends for FY11/2021 are actual amounts of dividends before such share splitting.

3.

Forecast for the FY11/2022 (December 1, 2021 - November 30, 2022)

(Percentages indicate year-on-year changes)

Net sales	Operating income	Ordinary income	Net income	Net income per share
Full year	Million Yen 3,100	％ 13.4	Million Yen 550	％ 33.2	Million Yen 557	％ 32.9	Million Yen 391	％ 32.7	Yen 51.82

(Note) Revision of the most recently announced earnings forecast: No

* Notes

(1) Application of special accounting methods for the preparation of quarterly financial statements:

No

(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

1.	Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
2.	Changes in accounting policies due to other reasons (mentioned in 1.):	No
3.	Changes in accounting estimates:	No
4.	Restatement of prior period financial statements:	No

(Note) For details, please refer to "2. Quarterly Financial Statements and Principal Notes (3) Notes to Quarterly Financial

Statements (Changes in accounting policies)" on page 6 of the attached document.

(3) Number of issued shares (common shares)

• 1. Total number of issued shares at the end of period (including treasury stock)

• 2. Number of treasury stock at the end of the period

• 3. Average number of shares during the period

  1Q of FY11/2022 7,633,200 shares	FY11/2021 7,633,200 shares
  1Q of FY11/2022 39,000 shares	FY11/2021 － shares
  1Q of FY11/2022 7,622,552 shares	1Q of FY11/2021 7,190,316 shares

  (Note)

  The Company conducted a 2-for-1 stock split of common stock on December 1, 2021. The number of shares issued and the number of treasury stock at the end of the period, and the average number of shares during the period were calculated on the assumption that the stock split was conducted at the beginning of FY11/2021.

* Quarterly financial statements are not subject to quarterly review by a certified public accountant or auditing firm.

* Explanation regarding appropriate use of performance forecasts and other special notes

(Notes on descriptions about the future)

Descriptions about the future such as performance forecasts contained in this document are based on information currently available to the Company and certain presumptions considered as reasonable, and those are not intended to indicate the Company should assure that it would realize such forecast. Meanwhile, actual performance in the future may differ substantially, influenced by a wide variety of factors. For preconditions for performance forecasts and precaution statements in using such forecasts, please see the appendix, page 3, "1. Qualitative Information regarding the Quarterly Financial Results: (3) Descriptions regarding prospects such as performance forecasts".

(How to obtain supplementary references regarding quarterly financial results) Supplementary material on quarterly financial results is concurrently disclosed on TDnet.

Table of contents: Appendix

1.	Qualitative Information regarding the Quarterly Financial Results ……………………………………………………	2
(1) Descriptions regarding operating results ……………………………………………………………………………	2
(2) Descriptions regarding financial position ……………………………………………………………………………	2
(3) Descriptions regarding prospects such as performance forecasts ……………………………………………………	3
2.	Quarterly Financial Statements and Principal Notes ……………………………………………………………………	4
(1) Quarterly Balance Sheet ………………………………………………………………………………………………	4
(2) Quarterly statements of income ………………………………………………………………………………………	5
(The first quarter cumulative period) ……………………………………………………………………………	5
(3) Notes on Quarterly Financial Statements ……………………………………………………………………………	6
(Notes regarding the assumption for going concern） ………………………………………………………………	6
(Notes in the event of significant changes in the amount of shareholders' equity.) ………………………………	6

(Changes in accounting policies) …………………………………………………………………………………… 6

(Segment information, etc.) ………………………………………………………………………………………

6

1.

Qualitative Information regarding the Quarterly Financial Results

• (1) Descriptions regarding operating results

  During the first quarter of the current fiscal year, the Japanese economy continued to face a severe condition due to the nationwide spread of the new coronavirus infection, which led to the declaration of a state of emergency and the expansion of areas subject to priority measures to prevent the spread of the disease. In addition to the effects of various policies, there were expectations that socioeconomic activities would normalize as vaccinations began to progress in earnest. However, due to the emergence of new mutant strains, the timing of the convergence of the new coronavirus infection is unclear and the situation remains uncertain. Under these circumstances, the importance of IT and the trend of digitalization of business are expanding in corporate activities, such as telecommuting, use of online meetings, use of cloud services, and promotion of DX (Digital Transformation). The Company's business is a single segment of system development and related services but is divided into three categories: solution, semiconductor, and advanced technology solution.

  In the economic environment described above, in the "Solution Category" we have continued to supply IT professionals without specializing in industrial areas, and we have expanded our business to support IT development.

  In the "Semiconductor Category", we have been expanding our business in general IT infrastructure operation support for semiconductor factories, including in-factory system maintenance and operation services and IT help desk services.

  In the "Advanced Technology Solution Category", we have expanded the provision of solutions for customers developing AI-related products. Operating results by category for the first quarter of the fiscal year under review are as follows.

  ① Solution Category

  Net sales for the first quarter of the current fiscal year totaled 538,367 thousand yen (up 18.4% from the same period of the previous year).

  Orders for contracted development projects from major clients, which began in the previous fiscal year, remained particularly strong. The ongoing large-scale development projects for in-factory systems from semiconductor manufacturers contributed to the increase in sales.

  ② Semiconductor Category

  Net sales for the first quarter of the current fiscal year totaled 137,518 thousand yen (up 23.9% from the same period of the previous year). The Company received steady orders from major clients against the robust semiconductor market and requests for further increases in staff.

  ③ Advanced Technology Solution Category

  Net sales for the first quarter of the current fiscal year totaled 57,258 thousand yen (up 174.3% from the same period of the previous year). Orders for AI-related R&D support services, support for research papers, and other services continued to be steady, as well as orders from new clients.

  In particularly, the ratio of sales in this category to the entire company expanded from 3.6% in the first quarter of the previous year to 7.8% in the first quarter under review, due to an increase in new clients in addition to projects from existing clients such as NEC Corporation, which remained strong from the previous fiscal year.

  As a result, the Company's operating results for the first quarter of the current fiscal year showed growth in all categories, with net sales of 733,145 thousand yen (up 25.0% from the same period of the previous year).

  The Company absorbed a provision of 15,000 thousand yen for performance-linked bonuses to employees, resulting in operating income of 126,602 thousand yen (up 77.0% from the same period of the previous year), ordinary income of 126,552 thousand yen (up 76.3% from the same period of the previous year), and net income of 88,767 thousand yen (up 74.4% from the same period of the previous year).

• (2) Descriptions regarding financial position

(Assets)

Current assets at the end of the first quarter of the current fiscal year were 1,735,761 thousand yen, a decrease of 134,184 thousand yen compared to the end of the previous fiscal year. This was mainly due to a decrease of 152,896 thousand yen in cash and deposits resulting from payment of taxes.

Fixed assets totaled 91,077 thousand yen, a decrease of 26,422 thousand yen from the end of the previous fiscal year. This was mainly due to a decrease of 26,473 thousand yen in deferred tax assets resulting from the payment of performance-linked bonuses and winter bonuses.

As a result, total assets amounted to 1,826,839 thousand yen, down 160,607 thousand yen compared to the end of the previous fiscal year.

(Liabilities)

Current liabilities at the end of the first quarter amounted to 271,952 thousand yen, down 168,898 thousand yen compared to the end of the previous fiscal year. This was mainly due to a 113,320 thousand yen decrease in accrued income taxes from the payment of taxes, a 33,369 thousand yen decrease in accrued expenses from the payment of winter bonuses, and a 25,863 thousand yen decrease in provision for bonuses from the payment of performance-linked bonuses.

Fixed liabilities amounted to 52,401 thousand yen, an increase of 888 thousand yen from the end of the previous fiscalyear. This was due to an increase of 888 thousand yen in provision for retirement benefits.

As a result, total liabilities amounted to 324,354 thousand yen, down 168,010 thousand yen compared to the end of the previous fiscal year.

(Net Assets)

Total net assets at the end of the first quarter of the current fiscal year were 1,502,485 thousand yen, an increase of 7,402 thousand yen compared to the end of the previous fiscal year. This was mainly due to an increase of 88,767 thousand yen in retained earnings due to the posting of net income for the quarter, a decrease of 30,532 thousand yen due to dividends, and a decrease of 50,832 thousand yen in treasury stock due to the acquisition of treasury stock.

(3) Descriptions regarding prospects such as performance forecasts

There is no change to the full-year earnings forecast announced in the "Summary of Financial Results for the FY11/2021 on January 13, 2022.