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

			November 9, 2023
Company name:	TBK Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	7277	URL	https://www.tbk-jp.com/
Representative:	CEO		Kaoru Ogata

Executive Officer and General Manager of
Inquiries:				Masahiko Kuramura	TEL [phone]
Business Planning Division
Scheduled date to file Quarterly Securities Report:				November 10, 2023
Scheduled date to commence dividend payments:				December 5, 2023
Preparation of supplementary material on quarterly financial results:		Yes
Holding of quarterly financial results meeting:				Yes
							(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 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 September 30, 2023		27,730	5.8		213		-	352		-	(68)	-
Six months ended September 30, 2022		26,215	0.2		(629)		-	(261)		-	(437)	-
		Earnings per share			Diluted earnings per share
				Yen			Yen
Six months ended September 30, 2023			(2.42)				-
Six months ended September 30, 2022			(15.41)				-
(2) Consolidated financial position
		Total assets			Net assets		Equity ratio		Net assets per share
		Millions of yen			Millions of yen				%		Yen
As of September 30, 2023			56,000		28,800				50.1		986.14
As of March 31, 2023			52,179		27,529				51.6		947.66

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 March 31, 2023	-	0.00	-	0.00	0.00
Year ending March 31, 2024	-	5.00
Year ending March 31, 2024 (Forecast)			-	5.00	10.00

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

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	57,000	6.5	1,000		-	900		-	700		-	24.65

1

4. Notes

(1) Changes in significant subsidiaries during the six months ended September 30, 2023

	(changes in specified subsidiaries resulting in the change in scope of consolidation):	No
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	No
(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 September 30, 2023	29,424,635	shares	As of March 31, 2023	29,424,635	shares
Number of treasury shares at the end of the period
	As of September 30, 2023	955,628	shares	As of March 31, 2023	1,030,471	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2023	28,447,026	shares	Six months ended September 30, 2022	28,380,574	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2023	As of September 30, 2023
Assets
Current assets
Cash and deposits	3,939	3,633
Notes and accounts receivable - trade	12,555	14,343
Electronically recorded monetary claims - operating	790	882
Inventories	7,775	8,589
Income taxes refund receivable	157	47
Other	898	749
Allowance for doubtful accounts	(11)	(0)
Total current assets	26,105	28,246
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,478	5,276
Machinery, equipment and vehicles, net	7,858	8,686
Land	3,434	3,561
Construction in progress	4,029	3,154
Other, net	1,139	1,221
Total property, plant and equipment	20,940	21,900
Intangible assets
Software	125	109
Goodwill	32	10
Other	69	71
Total intangible assets	227	192
Investments and other assets
Investment securities	3,065	3,694
Investments in capital of subsidiaries and associates	1,397	1,493
Long-term loans receivable from subsidiaries and	78	81
associates
Deferred tax assets	219	258
Other	160	149
Allowance for doubtful accounts	(15)	(15)
Total investments and other assets	4,905	5,661
Total non-current assets	26,074	27,754
Total assets	52,179	56,000

3

			(Millions of yen)
		As of March 31, 2023	As of September 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	5,703	7,481
Electronically recorded obligations - operating	2,592	2,780
Short-term borrowings	7,075	7,989
Lease liabilities	67	54
Income taxes payable	112	150
Provision for bonuses	605	545
Provision for product warranties	79	79
Provision for share awards for directors (and other	82	51
officers)
Notes payable - facilities	126	251
Other	2,180	1,951
Total current liabilities	18,625	21,336
Non-current liabilities
Long-term borrowings	1,730	1,229
Lease liabilities	76	61
Deferred tax liabilities	1,202	1,507
Retirement benefit liability	2,890	2,942
Other	123	122
Total non-current liabilities	6,024	5,863
Total liabilities	24,650	27,200
Net assets
Shareholders' equity
Share capital	4,617	4,617
Capital surplus	264	264
Retained earnings	18,536	18,468
Treasury shares	(453)	(419)
Total shareholders' equity	22,965	22,930
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,079	1,517
Revaluation reserve for land	20	20
Foreign currency translation adjustment	2,839	3,591
Remeasurements of defined benefit plans	3	15
Total accumulated other comprehensive income	3,942	5,144
Non-controlling interests	621	725
Total net assets	27,529	28,800
Total liabilities and net assets	52,179	56,000

4

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2022	September 30, 2023
Net sales	26,215	27,730
Cost of sales	24,294	24,883
Gross profit	1,920	2,847
Selling, general and administrative expenses	2,549	2,633
Operating profit (loss)	(629)	213
Non-operating income
Interest income	4	10
Dividend income	68	78
Foreign exchange gains	377	75
Share of profit of entities accounted for using equity method	-	24
Subsidy income	110	0
Other	56	113
Total non-operating income	617	302
Non-operating expenses
Interest expenses	86	137
Share of loss of entities accounted for using equity method	151	-
Other	12	26
Total non-operating expenses	249	163
Ordinary profit (loss)	(261)	352
Extraordinary income
Gain on sale of non-current assets	1	0
Total extraordinary income	1	0
Extraordinary losses
Loss on sale of non-current assets	0	0
Loss on abandonment of non-current assets	0	0
Loss on disaster	-	89
Total extraordinary losses	0	89
Profit (loss) before income taxes	(260)	263
Income taxes - current	169	189
Income taxes - deferred	(10)	94
Total income taxes	159	283
Loss	(420)	(20)
Profit attributable to non-controlling interests	17	48
Loss attributable to owners of parent	(437)	(68)

5

Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Loss	(420)	(20)
Other comprehensive income
Valuation difference on available-for-sale securities	6	437
Foreign currency translation adjustment	962	735
Remeasurements of defined benefit plans, net of tax	26	12
Share of other comprehensive income of entities accounted	208	71
for using equity method
Total other comprehensive income	1,204	1,257
Comprehensive income	784	1,237
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	720	1,132
Comprehensive income attributable to non-controlling	63	104
interests

6