T&S : Summary of Financial Results for the second quater 2022

FOR TRANSLATION PURPOSE ONLY

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

July 14, 2022

Non-consolidated Financial Results

for the Six Months Ended May 31, 2022

(Under Japanese GAAP)

Company name:	T&S inc.
Listing:	Tokyo Stock Exchange
Securities code:	4055
URL:	https://www.tecsvc.co.jp/
Representative:	Yoshihiro Takekawa, President and CEO
Inquiries:	Hiroshi Kinoshita, Director, Executive Officer and General Manager of Corporate Division
Telephone:	[phone]

Scheduled date to file quarterly securities report:	July 14, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for Institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Non-consolidated financial results for the Six months ended May 31, 2022 (from December 1, 2021 to May 31, 2022)

(1) Non-consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit
Six months ended	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
May 31, 2022	1,567		21.8	286		66.5	294	65.3	205	64.7
May 31, 2021	1,286		15.9	172		4.6	177	6.1	124	10.6
	Basic earnings	Diluted earnings
	per share		per share
Six months ended			Yen			Yen
May 31, 2022			27.08			26.68
May 31, 2021			17.06			16.12

Note: The Company conducted a 2-for-1 share split on December 1, 2021. Basic earnings per share and diluted earnings per share has been calculated on the assumption that conducted the stock split at the beginning of the FY11/2021.

(2) Non-consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio
As of	Millions of yen	Millions of yen	%
May 31, 2022	2,011	1,554	77.3
November 30, 2021	1,987	1,495	75.2
Reference: Equity
As of May 31, 2022:	¥1,554 million
As of November 30, 2021:	¥1,495 million

FOR TRANSLATION PURPOSE ONLY

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end		Fiscal year-end	Total
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended	-	0.00	-		8.00	8.00
November 30, 2021
Fiscal year ending	-	0.00
November 30, 2022
Fiscal year ending
November 30, 2022			-		5.00	5.00
(Forecast)

Note: 1. Revisions to the forecast of cash dividends most recently announced: None

2. The Company conducted a 2-for-1 share split on December 1, 2021. The dividend of the fiscal year ended November 30, 2021 is the actual amount as stated before the share split.

3. Earnings Forecast of Fiscal year ending on November 30, 2022

(from December 1, 2021 to November 30, 2022)			(Percentages indicate year-on-year changes.)
	Net sales		Operating profit		Ordinary profit	Profit		Basic earnings
				per share
	Millions of		%	Millions of	%		Millions of	%	Millions of		%	Yen
	yen		yen		yen	yen
Full-year	3,100		13.4	550	33.2		557	32.9	391		32.7	51.82
Note: Revisions to the earnings forecast most recently announced: None

FOR TRANSLATION PURPOSE ONLY

* Notes

1. Adoption of accounting treatment specific to the preparation of quarterly non-consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None

Note: For details, please refer to the appendix, page 6, "2. Quarterly financial statements and principal notes

1. 1. Notes on quarterly financial statements (Changes in accounting policies)".
2. Number of issued shares (common shares)
3. 1. Total number of issued shares at the end of the period (including treasury shares)

As of May 31, 2022	7,633,200 shares
As of November 30, 2021	7,633,200 shares

(ii) Number of treasury shares at the end of the period

As of May 31, 2022	75,100 shares
As of November 30, 2021	- shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Six months ended May 31, 2022	7,597,205 shares
Six months ended May 31, 2021	7,320,026 shares

Note: The Company conducted a 2-for-1 share split on December 1, 2021. Assuming that the share split was conducted at the

beginning of the fiscal year ended November 30, 2021, total number of issued shares at the end of the period, number of treasury shares at the end of the period, average number of shares outstanding during the period has been calculated.

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

(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 will achieve 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 refer to 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.

FOR TRANSLATION PURPOSE ONLY

Table of contents: Appendix

T&S inc. (4055) Summary of Non-consolidated Financial Results for Six Months ended May 31, 2022

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 income statements …………………………………………………………………………	5
	Cumulative of six months ended	..……………………………………………...…………………	5
(3)	Notes on quarterly financial statements ……………………….…………………………………	6
	（Notes regarding the assumption for going concern）…………………………………...……………	6
	（Notes on significant changes in shareholders' equity）………………………………………………	6
	（Changes in accounting policies)	…………………………………….………………..…………	6
	（Segment information, etc.） ………………………………………………………………………	6

1

FOR TRANSLATION PURPOSE ONLY

T&S inc. (4055) Summary of Non-consolidated Financial Results for Six Months ended May 31, 2022

1. Qualitative information regarding the quarterly financial results

1. Descriptions regarding operating results

During the first half of the current fiscal year, the Japanese economy showed signs of recovery following the nationwide lifting of "priority measures to prevent the spread of the virus", however, the timing of the end of COVID-19 epidemic remains uncertain, and the market remains uncertain due to the short supply of semiconductors and rising prices of resources. Within the corporate activities, the emphasis on IT and the trend toward the use of IT in business operations are expanding, including telecommuting, online meetings, cloud services, and the promotion of DX (Digital Transformation).

Our business is composed of a single segment of system development and related services, and we are developing our business in three categories: "Solution", "Semiconductor", and "Advanced Technology Solution" categories. In such an economic environment, the "Solution Category" continued to supply IT personnel without specializing in industrial fields and expanded its business to support IT development. In the "Semiconductor Category", we have been expanding its overall IT infrastructure operation support services for semiconductor factories, including in- factory system maintenance and operation services and IT helpdesk services. In the "Advanced Technology Solution Category", we have expanded solutions for customers who are developing AI-related products.

Operating results by category for the first half of the current cumulative fiscal year under review are as follows.

• Solution Category

Net sales for the first half of the current cumulative fiscal year amounted to 1,156,432 thousand yen (up 17.2% increase compared to the same period of the previous year).

Orders for contracted development projects from major customers remained strong. A large-scale development project for in-factory systems from a semiconductor manufacturer, one of our major customers, which started in the previous fiscal year, made a contribution.

• Semiconductor Category

Net sales for the first half of the current cumulative fiscal year amounted to 283,980 thousand yen (up 25.2% increase compared to the same period of the previous year).

A steady growth continued with orders from major customers against the backdrop of the robust semiconductor market and requests for further increases in the number of dispatched engineers for maintenance and operation services at semiconductor factories.

• Advanced Technology Solution Category

Net sales for the first half of the current cumulative fiscal year amounted to 127,388 thousand yen (up 74.5% increase compared to same period of the previous year).

Continuous orders for AI-related R&D support services, technical treatise survey support services, and other services, as well as orders from new clients, remained steady. In the second quarter, the ratio of sales in this category as a percentage of total overall company sales expanded from 5.7% in the same period of the previous year to 8.1% in the second quarter of the current fiscal year, due to an increase in new clients as well as 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 second quarter cumulative period showed growth in all categories, with net sales of 1,567,800 thousand yen (up 21.8% increase compared to the same period of the previous year). With absorbing 49,000 thousand yen performance-linked bonuses reserve for employees, operating profit increased to 286,681 thousand yen (up 66.5% increase compared to the same period of the previous year), ordinary profit to 294,155 thousand yen (up 65.3% increase from the same period of the previous year), and quarterly profit to 205,717 thousand yen (up 64.7% increase from the same period of the previous year).

1. Descriptions regarding financial position (Assets)
   Current assets at the end of the second quarter of the current fiscal year totaled 1,848,880 thousand yen, a decrease of 21,066 thousand yen from the previous fiscal year end. This was mainly due to a decrease of 89,716 thousand yen in cash and deposits due to tax payments, etc., and due to an increase in transactions subject to factoring and other factors, accounts receivable-other increased by 97,326 thousand yen and accounts receivable-trade decreased by 35,279 thousand yen. Non-current assets totaled 162,391 thousand yen, an

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