Tazmo : FY2023 2Q Results (e​nded June​ 30, 2023)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended June 30, 2023 (Based on Japanese GAAP)

August 10, 2023

Company name:	TAZMO CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	6266	URL https://www.tazmo.co.jp/ja/ir/index.html
Representative:	Representative Director	YASUYUKI SATO
	Manager for General Affairs
Inquiries:	Department ,General Maneger of	HISAO YOSHIKUNI	TEL [phone]
	Administration Division
Scheduled date to file Quarterly Securities Report:	August 10, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)							Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit	Profit attributable to
					owners of parent
	Millions of yen			% Millions of yen	%	Millions of yen		% Millions of yen	%
Six months ended June 30, 2023	10,434	(19.0)	539	(58.1)		706	(59.0)	137	(89.0)
Six months ended June 30, 2022	12,885		32.3	1,289	72.7		1,725	110.0	1,246	125.6
	Earnings per share	Diluted earnings per share
				Yen				Yen
Six months ended June 30, 2023			9.42				-
Six months ended June 30, 2022			93.21				-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio		Net assets per share
	Millions of yen	Millions of yen				%			Yen
As of June 30, 2023		43,247			18,122			41.2	1,216.69
As of December 31, 2022		39,397			17,549			43.9	1,188.12
2. Cash dividends
					Annual dividends per share
	1st quarter-end		2nd quarter-end	3rd quarter-end	Fiscal year-end		Total
	Yen			Yen		Yen			Yen			Yen
Year ended December 31, 2022		-			0.00			-			21.00			21.00
Year ending December 31, 2023		-			0.00
Year ending December 31, 2023 (Forecast)								-			21.00			21.00

3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	31,423	29.0	3,118	11.1	3,087	(1.6)	2,109	(6.8)	151.07

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2023 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

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

Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2023	14,836,691	shares	As of December 31, 2022	14,813,300	shares
Number of treasury shares at the end of the period
As of June 30, 2023	199,282	shares	As of December 31, 2022	264,282	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2023	14,575,874	shares	Six months ended June 30, 2022	13,368,484	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2022	As of June 30, 2023
Assets
Current assets
Cash and deposits	5,141,311	5,139,878
Notes and accounts receivable - trade	4,496,041	4,052,190
Electronically recorded monetary claims -	1,869,262	2,378,799
operating
Inventories	17,983,655	22,426,458
Other	2,415,311	1,861,104
Total current assets	31,905,581	35,858,431
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,617,831	3,597,879
Machinery, equipment and vehicles, net	791,135	823,122
Land	1,291,426	1,291,426
Other, net	567,391	669,132
Total property, plant and equipment	6,267,785	6,381,560
Intangible assets
Software	138,991	173,544
Other	59,184	55,245
Total intangible assets	198,175	228,790
Investments and other assets
Investment securities	401,948	66,898
Deferred tax assets	212,650	287,283
Other	415,450	428,854
Allowance for doubtful accounts	(4,576)	(4,799)
Total investments and other assets	1,025,472	778,236
Total non-current assets	7,491,434	7,388,587
Total assets		39,397,015	43,247,018

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						(Thousands of yen)
					As of December 31, 2022	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	1,725,959	2,063,736
Electronically recorded obligations - operating	4,350,479	3,851,399
Short-term borrowings				5,279,474	4,687,431
Accounts payable - other				1,585,551	1,278,606
Income taxes payable				505,697	305,420
Contract liabilities				3,691,848	5,570,047
Provision for bonuses				318,104	227,653
Provision for product warranties			301,542	292,446
Provision for share awards				5,751	4,792
Liability related to paid transactions	577,364	-
Other					121,592	152,042
Total current liabilities				18,463,365	18,433,577
Non-current liabilities
Long-term borrowings				2,643,216	6,032,223
Provision for share awards				251,593	267,924
Provision for retirement benefits for directors (and	21,177	23,178
other officers)
Provision for share awards for directors (and other	122,187	-
officers)
Retirement benefit liability			66,417	68,225
Asset retirement obligations			171,580	193,068
Other					108,214	106,213
Total non-current liabilities			3,384,387	6,690,833
Total liabilities					21,847,753	25,124,411
Net assets
Shareholders' equity
Share capital					3,495,400	3,556,896
Capital surplus				3,430,855	3,415,301
Retained earnings				10,151,848	9,978,126
Treasury shares				(434,156)	(316,660)
Total shareholders' equity				16,643,947	16,633,664
Accumulated other comprehensive income
Valuation	difference	on	available-for-sale	150	71
securities
Foreign currency translation adjustment	641,870	1,175,491
Total accumulated other comprehensive income	642,020	1,175,562
Non-controlling interests				263,294	313,381
Total net assets					17,549,262	18,122,607
Total liabilities and net assets				39,397,015	43,247,018

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		June 30, 2022	June 30, 2023
Net sales	12,885,557	10,434,328
Cost of sales	9,415,582	7,572,078
Gross profit	3,469,975	2,862,249
Selling, general and administrative expenses	2,180,555	2,322,542
Operating profit	1,289,419	539,706
Non-operating income
Interest income	8,692	22,700
Foreign exchange gains	439,866	163,425
Subsidy income	4,389	1,164
Other	14,530	8,159
Total non-operating income	467,477	195,449
Non-operating expenses
Interest expenses	16,849	23,234
Other	14,052	5,020
Total non-operating expenses	30,901	28,254
Ordinary profit	1,725,996	706,901
Extraordinary income
Gain on sale of non-current assets	64,999	14,582
Total extraordinary income	64,999	14,582
Extraordinary losses
Loss on valuation of investment securities	-	335,030
Total extraordinary losses	-	335,030
Profit before income taxes	1,790,996	386,453
Income taxes	524,930	226,867
Profit	1,266,065	159,585
Profit attributable to non-controlling interests	20,029	22,265
Profit attributable to owners of parent		1,246,035	137,320

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