Tazmo : FY2022 Annual Results (ended December 31, 2022)

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 Year Ended December 31, 2022

(Based on Japanese GAAP)

																				February 13, 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			TOSHIO IKEDA
Inquiries:	Senior Managing Director,General Maneger	SHIGEO KAMEYAMA	TEL [phone]
of Administration Division
Scheduled date of ordinary general meeting of shareholders:		March 28, 2023
Scheduled date to file Securities Report:			March 29, 2023
Scheduled date to commence dividend payments:			March 29, 2023
Preparation of supplementary material on financial results:			Yes
Holding of financial results meeting:							Yes		(for analysts)
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)
(1) Consolidated operating results														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		%
Year ended December 31, 2022		24,356		10.7		2,806		34.1			3,138	41.5	2,263		29.4
Year ended December 31, 2021		22,001		12.7		2,092		10.9			2,218	20.0	1,749		3.3
						Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			Earnings per share			owners of
							share				parent/equity				assets			sales
				Yen			Yen					%					%				%
Year ended December 31, 2022		162.09				-					14.8					9.1				11.5
Year ended December 31, 2021		132.21				-					14.1					7.9				9.5
(2) Consolidated financial position
			Total assets			Net assets			Equity ratio	Net assets per share
			Millions of yen		Millions of yen						%					Yen
As of December 31, 2022		39,397						17,549						43.9			1,188.12
As of December 31, 2021		29,390						13,574						45.5			1,009.37
(3) Consolidated cash flows
			Cash flows from		Cash flows from		Cash flows from	Cash and cash equivalents
			operating activities		investing activities	financing activities		at end of period
			Millions of yen		Millions of yen			Millions of yen		Millions of yen
Year ended December 31, 2022		(1,513)						(669)						4,098					5,024
Year ended December 31, 2021					336						(795)						523					2,981
2. Cash dividends
						Annual dividends per share						Total cash	Dividend payout	Ratio of dividends
																	to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen		Yen				Yen		Yen	Millions of yen	%			%
Year ended December 31, 2021		-		0.00		-				16.00		16.00		216	12.1			1.6
Year ended December 31, 2022		-		0.00		-				21.00		21.00		311	13.0			1.8
Year ending December 31, 2023		-			0.00		-				21.00		21.00			13.9
(Forecast)

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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
Six months ending	13,610	5.6	1,187	(7.9)	1,170	(32.2)		800	(35.7)	57.34
June 30, 2023
Full year	31,423	29.0	3,118	11.1	3,087	(1.6)		2,109	(6.8)	151.07
4. Notes
(1) Changes in significant subsidiaries during the year ended December 31, 2022			Yes
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) 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:	Yes
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

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

	As of December 31, 2022	14,813,300	shares	As of December 31, 2021	13,508,300	shares
Number of treasury shares at the end of the period
	As of December 31, 2022	264,282	shares	As of December 31, 2021	271,849	shares
Average number of shares during the period
	Year ended December 31, 2022	13,963,523	shares	Year ended December 31, 2021	13,234,187	shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2021	As of December 31, 2022
Assets
Current assets
Cash and deposits	3,267,552	5,141,311
Notes and accounts receivable - trade	5,475,653	4,496,041
Electronically recorded monetary claims - operating	1,201,953	1,869,262
Merchandise and finished goods	73,744	62,670
Work in process	9,260,408	13,032,935
Raw materials and supplies	2,050,306	4,888,049
Other	746,302	2,415,311
Total current assets	22,075,920	31,905,581
Non-current assets
Property, plant and equipment
Buildings and structures	7,758,239	7,998,159
Accumulated depreciation	(4,230,582)	(4,380,328)
Buildings and structures, net	3,527,656	3,617,831
Machinery, equipment and vehicles	3,219,466	3,449,937
Accumulated depreciation	(2,435,058)	(2,658,801)
Machinery, equipment and vehicles, net	784,408	791,135
Tools, furniture and fixtures	1,048,473	1,265,101
Accumulated depreciation	(884,397)	(961,705)
Tools, furniture and fixtures, net	164,075	303,396
Land	1,259,848	1,291,426
Leased assets	130,648	34,648
Accumulated depreciation	(115,134)	(25,281)
Leased assets, net	15,513	9,366
Construction in progress	56,800	228,147
Other	161,432	165,283
Accumulated depreciation	(98,813)	(138,802)
Other, net	62,619	26,481
Total property, plant and equipment	5,870,923	6,267,785
Intangible assets
Software	139,220	138,991
Other	8,246	59,184
Total intangible assets	147,467	198,175
Investments and other assets
Investment securities	401,975	401,948
Deferred tax assets	473,342	212,650
Other	420,484	415,450
Allowance for doubtful accounts	-	(4,576)
Total investments and other assets	1,295,803	1,025,472
Total non-current assets	7,314,194	7,491,434
Total assets	29,390,115	39,397,015

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			(Thousands of yen)
		As of December 31, 2021	As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	1,873,986	1,725,959
Electronically recorded obligations - operating	2,488,484	4,350,479
Short-term borrowings	3,171,522	5,279,474
Current portion of bonds payable	300,000	-
Lease liabilities	8,666	8,666
Accounts payable - other	1,267,615	1,585,551
Income taxes payable	313,392	505,697
Advances received	3,371,322	-
Contract liabilities	-	3,691,848
Provision for bonuses	241,296	318,104
Provision for product warranties	298,254	301,542
Provision for share awards	5,911	5,751
Liability related to paid transactions	-	577,364
Other	117,070	112,925
Total current liabilities	13,457,522	18,463,365
Non-current liabilities
Long-term borrowings	1,652,717	2,643,216
Lease liabilities	19,016	10,267
Deferred tax liabilities	29,928	25,618
Provision for share awards	214,321	251,593
Provision for retirement benefits for directors (and other	17,225	21,177
officers)
Provision for share awards for directors (and other	91,310	122,187
officers)
Retirement benefit liability	58,076	66,417
Asset retirement obligations	149,345	171,580
Other	126,022	72,329
Total non-current liabilities	2,357,964	3,384,387
Total liabilities	15,815,486	21,847,753
Net assets
Shareholders' equity
Share capital	2,724,067	3,495,400
Capital surplus	2,659,522	3,430,855
Retained earnings	8,104,586	10,151,848
Treasury shares	(446,249)	(434,156)
Total shareholders' equity	13,041,925	16,643,947
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	300	150
Foreign currency translation adjustment	318,211	641,870
Total accumulated other comprehensive income	318,512	642,020
Non-controlling interests	214,190	263,294
Total net assets	13,574,628	17,549,262
Total liabilities and net assets	29,390,115	39,397,015

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		December 31, 2021	December 31, 2022
Net sales	22,001,810	24,356,236
Cost of sales	16,068,117	17,028,216
Gross profit	5,933,693	7,328,020
Selling, general and administrative expenses
Freight costs	281,634	341,736
Remuneration for directors (and other officers)	261,444	286,044
Salaries and allowances	1,004,145	1,034,546
Bonuses	258,293	301,011
Legal welfare expenses	225,701	231,737
Retirement benefit expenses	50,187	49,161
Research and development expenses	374,248	367,634
Provision of allowance for doubtful accounts	-	4,665
Other	1,385,804	1,905,025
Total selling, general and administrative expenses	3,841,460	4,521,562
Operating profit	2,092,232	2,806,458
Non-operating income
Interest income	15,335	13,824
Subsidy income	6,580	6,357
Foreign exchange gains	101,497	330,711
Other	42,187	36,440
Total non-operating income	165,601	387,334
Non-operating expenses
Interest expenses	31,125	31,693
Share issuance costs	-	12,511
Other	8,274	10,709
Total non-operating expenses	39,399	54,914
Ordinary profit	2,218,434	3,138,878
Extraordinary income
Gain on sale of non-current assets	-	64,999
Total extraordinary income	-	64,999
Profit before income taxes	2,218,434	3,203,878
Income taxes - current	357,524	643,977
Income taxes - deferred	75,751	263,293
Total income taxes	433,276	907,270
Profit	1,785,158	2,296,607
Profit attributable to non-controlling interests	35,467	33,240
Profit attributable to owners of parent	1,749,690	2,263,366

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