TAC : Consolidated Financial Results for the Six Months Ended September 30, 2022

TAC Co.,Ltd

Consolidated Financial Results for the Six Months Ended September 30, 2022

Summary

Consolidated Financial Results

for the Six Months Ended September 30, 2022

Company name: TAC Co., Ltd.

November 7, 2022

Listing: Tokyo Stock Exchange

Company code number: 4319

URL: https://www.tac-school.co.jp

Representative: Toshio Tada, Representative Director

Contact: Shoji Nonaka, Manager of IR department

Tel: [phone]

Scheduled date to commence dividend payments: December 5 ,2022

Scheduled date to submit the annual securities report of the 2nd quarter: November

11 , 2022

Supplemental information for financial statements: Yes

Results briefing session: Yes (for investors and analysts)

(Amounts rounded down to the nearest million yen)

1. Consolidated 2nd quarter results for the fiscal year ending March 2023

(From April 1, 2022 to September 30, 2022)

(1) Consolidated financial results

(% indicates changes from the previous corresponding period)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

(Yen in millions)

％

(Yen in millions)

％

(Yen in millions)

％

(Yen in millions)

％

FY2022

10,762

-3.5

941

-15.2

925

-19.9

614

-20.7

（Apr.1,2022-Sep.30,2022）

FY2021

11,156

10.0

1,111

22.4

1,154

8.7

775

5.7

（Apr.1,2021-Sep.30,2021）

(Notes) Comprehensive income: FY2022(2022/9) 617 million yen (-22.7%)

FY2021(2021/9) 798 million yen (6.0%)

Profit per share

Fully diluted profit

per share

(Yen)

(Yen)

FY2022

33.22

－

（Apr.1,2022-Sep.30,2022）

FY2021

41.91

－

（Apr.1,2021-Sep.30,2021）

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

(Yen in millions)

(Yen in millions)

％

FY2022

21,484

6,736

31.3

(As of Sep.30,2022)

FY2021

21,384

6,174

28.8

(As of Mar.31,2022)

(Notes) Equity FY2022(2022/9)

6,727 million yen FY2021(2022/3) 6,165 million yen

2．Dividends

Annual dividends per share

1stquarter

2ndquarter

3rdquarter

4thquarter

Total

FY2021

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

(Apr.1,2021-Mar.31,2022)

－

3.00

－

3.00

6.00

FY2022

－

3.00

(Apr.1,2022-Mar.31,2023)

FY2022(Forecast)

－

3.00

6.00

(Note) Revision of dividend forecasts in the current quarter: None

3．Consolidated forecasts for March 2023 term (From April 1, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Profit per share
		owners of parent
	(Yen in millions)	％	(Yen in millions)	％	(Yen in millions)	％	(Yen in millions)	％	(Yen)
Full year	20,450	-0.1	650	57.3	608	37.4	400	-10.1	21.62

(Note) Revision of consolidated financial results forecasts: None

1

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2022

• Notes
• 1. Significant changes in scope of consolidation (Changes in consolidated subsidiaries): None
  2. Application of the simplified accounting method and/or the special accounting method for quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes in accounting estimates, and restatements

(3)-1 Changes in accounting policies due to the revision of accounting standards: Yes

(3)-2 Changes in accounting policies other than (3)-1: None

(3)-3 Changes in accounting estimates: None

(3)-4 Restatements: None

(4)Number of shares issued (common stocks)

(4)-1 Number of shares issued at the end of the period (including treasury shares)

(4)-2 Number of treasury shares at the end of the period

(4)-3 Average number of shares during the period

FY2022	18,504,000	shares	FY2021	18,504,000	shares
2ndquarter
FY2022	68	shares	FY2021	68	shares
2ndquarter
FY2022	18,503,932	shares	FY2021	18,503,932	shares
2ndquarter	2ndquarter

• This "Consolidated Financial Results" are outside the scope of the audit.
• Explanation of proper use of financial forecasts and other special notes:

The above forecasts are based on the information available at this time and on assumptions deemed to be reasonable. Therefore, the actual financial results may differ significantly from the forcasts due to various factors.

2

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2022

Quarterly consolidated financial statements and notes

(1) Quarterly consolidated balance sheet

		(Yen in thousands)
	FY2021	FY2022
	(as of March 31, 2022)	(as of September 30, 2022)
Assets
Current assets
Cash and deposits	5,716,572	6,856,035
Notes and accounts receivable - trade	3,581,997	4,087,032
Securities	200,000	200,000
Merchandise and finished goods	444,792	336,468
Work in process	6,869	10,899
Raw materials and supplies	344,872	355,270
Accounts receivable - other	781,212	7,018
Prepaid expenses	354,030	274,297
Other	257,101	180,066
Allowance for doubtful accounts	-8,064	-7,080
Total current assets	11,679,384	12,300,008
Non-current assets
Property, plant and equipment
Land	2,744,159	2,744,159
Other, net	2,369,778	2,317,359
Total property, plant and equipment	5,113,937	5,061,518
Intangible assets	202,075	195,664
Investments and other assets
Investment securities	582,515	566,727
Investments in capital of subsidiaries and associates	6,385	6,385
Deferred tax assets	372,776	343,821
Long-term time deposits	－	100,000
Guarantee deposits	2,654,130	2,134,706
Insurance funds	633,503	641,723
Other	165,522	159,413
Allowance for doubtful accounts	-25,779	-25,779
Total Investments and other assets	4,389,053	3,926,998
Total non-currentassets	9,705,066	9,184,181
Total assets	21,384,451	21,484,189

3

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2022

		(Yen in thousands)
	FY2021	FY2022
	(as of March 31, 2022)	(as of September 30, 2022)
Liabilities
Current Liabilities
Notes and accounts payable - trade	515,084	440,401
Short-term loans payable	1,300,000	1,400,000
Current portion of long-term loans payable	794,792	861,249
Accounts payable - other	734,545	417,648
Accrued expenses	479,790	543,977
Income taxes payable	256,286	323,695
Provision for loss on abandonment of sales return	302,217	264,123
Provision for bonuses	197,151	193,036
Advances received	5,943,700	5,669,274
Asset retirement obligations	99,090	14,483
Other	839,657	636,784
Total current liabilities	11,462,315	10,764,674
Non-current liabilities
Long-term loans payable	3,001,071	3,210,034
Long-term accounts payable - directors' retirement	25,077	25,077
benefits
Asset retirement obligations	677,560	700,759
Provision for repairs	37,300	37,300
Other	6,453	10,298
Total non-current liabilities	3,747,463	3,983,469
Total liabilities	15,209,779	14,748,143
Net assets
Shareholders' equity
Capital stock	940,200	940,200
Capital surplus	790,547	790,547
Retained earnings	4,411,415	4,970,601
Treasury shares	-25	-25
Total shareholders' equity	6,142,138	6,701,323
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	-15,822	-22,924
Foreign currency translation adjustment	39,645	49,180
Total accumulated other comprehensive income	23,823	26,256
Non-controlling interests	8,710	8,465
Total net assets	6,174,672	6,736,045
Total liabilities and net assets	21,384,451	21,484,189

4

TAC Co.,Ltd Consolidated Financial Results for the Six Months Ended September 30, 2022

1. Quartely consolidated statement of income and quartely consolidated statement of comprehensive income
   Quarterly consolidated statement of income

		(Yen in thousands)
	FY2021	FY2022
	(Apr. 1, 2021-Sep. 30, 2021)	(Apr. 1, 2022-Sep. 30, 2022)
Net sales	11,156,079	10,762,691
Cost of sales	6,397,797	6,119,428
Gross profit	4,758,282	4,643,263
Selling, general and administrative expenses	3,647,062	3,701,446
Operating profit	1,111,219	941,817
Non-operating income
Interest income	8,064	4,368
Gain on investments in investment securities	50,977	2,372
Other	6,296	7,018
Total non-operating income	65,338	13,759
Non-operating expenses
Interest expenses	17,780	17,088
Commission expenses	2,051	2,551
Share of loss of entities accounted for using equity	1,268	7,049
method
Foreign exchange losses	587	3,826
Other	0	1
Total non-operating expenses	21,687	30,517
Ordinary profit	1,154,870	925,059
Extraordinary losses
Loss on sales and retirement of non-current assets
1,840	2,299
Total extraordinary losses	1,840	2,299
Profit before income taxes	1,153,029	922,759
Income taxes - current	364,331	275,328
Income taxes - deferred	12,428	32,088
Total income taxes	376,759	307,417
Profit	776,270	615,341
Profit attributable to non-controlling interests	723	644
Profit attributable to owners of parent	775,546	614,697

5