Toshiba Tec : Statement of Accounts (2023.3)

Consolidated Financial Results

for the Year Ended March 31, 2023

[Japanese GAAP]

May 11, 2023

Company name: Toshiba Tec Corporation

Stock exchange listing: Tokyo

Code number: 6588

URL: https://www.toshibatec.co.jp/

Representative: Hironobu Nishikori

President and CEO

Contact:

Akira Abe

General Manager of Corporate Communications Division

Phone [phone]

Scheduled date of Annual General Meeting of Shareholders: June 30, 2023

Scheduled date of commencing dividend payments: June 9, 2023

Scheduled date of filing annual securities report: June 30, 2023

Availability of supplementary briefing material on annual financial results: Yes

Schedule of annual financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Fiscal year ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

March 31, 2023

510,767

14.7

16,078

39.0

13,149

28.9

(13,745)

-

March 31, 2022

445,317

9.8

11,566

40.0

10,197

41.8

5,381

(24.5)

(Note) Comprehensive income:

Fiscal year ended March 31, 2023:

¥

(12,749) million

[

-%]

Fiscal year ended March 31, 2022:

¥

8,473

million

[

(40.0)%]

Basic earnings

Diluted earnings

Rate of return on

Ordinary profit

Operating profit

per share

per share

equity

to total assets

to net sales ratio

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2023

(248.37)

-

(13.2)

4.2

3.1

March 31, 2022

97.68

97.65

5.0

3.4

2.6

(Reference) Equity in earnings

(losses) of affiliated

companies:

Fiscal

year ended March

31, 2023:

¥

- million

Fiscal year ended March 31, 2022:

¥

- million

(Note) Diluted earnings per share for the fiscal year ended March 31, 2023 is not presented even though the Company has issued potential shares, because basic earnings per share was net loss.

(2) Consolidated Financial Position

		Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of		Million yen		Million yen	%	Yen
March 31, 2023		310,692		102,206	31.0	1,738.02
March 31, 2022		310,256		117,662	36.1	2,023.35
(Reference)Equity:	As of March 31, 2023:	¥	96,195 million
	As of March 31, 2022:	¥	111,946 million
(3) Consolidated Cash Flows
		Cash flows from	Cash flows from	Cash flows from	Cash and cash
		equivalents at the end
		operating activities	investing activities	financing activities
		of period
Fiscal year ended		Million yen		Million yen	Million yen	Million yen
March 31, 2023		15,106		(12,117)	(8,103)	43,815
March 31, 2022		10,037		(14,184)	(5,496)	46,709

2. Dividends

			Annual dividends				Dividends to
							Total	Payout ratio	net assets
	1st		2nd	3rd	Year-end	Total
	quarter-end	quarter-end	quarter-end	dividends	(consolidated)	(consolidated)
Fiscal year ended		Yen	Yen	Yen	Yen	Yen	Million yen	%	%
March 31, 2022		-	20.00	-	20.00	40.00	2,207	40.9	2.1
March 31, 2023		-	20.00	-	20.00	40.00	2,213	-	2.1
Fiscal year ending			20.00		25.00	45.00
March 31, 2024		-	-		35.6
(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31,2024)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent		per share
Full year	Million yen		%	Million yen	%	Million yen	%	Million yen		%	Yen
520,000		1.8	18,000	11.9	15,000	14.1	7,000		-	126.48

(Note) For details of consolidated financial results forecast for the fiscal year ending March 31, 2024, please refer to "1. Summary of consolidated business results, etc. (4) Future outlook" on page 5 of this report.

*Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No

New	-	(Company name:	)
Exclusion:	-	(Company name:	)

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No

(Note) For details, please refer to "3. Consolidated Financial Statements and Notes (5) Notes to the consolidated financial statements (Changes in accounting policies)" on page 14 of this report.

(3) Total number of issued shares (common shares)

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

March 31, 2023:	57,629,140	shares
March 31, 2022:	57,629,140	shares
2) Total number of treasury shares at the end of the period:
March 31, 2023:	2,281,668	shares
March 31, 2022:	2,301,938	shares

3) Average number of shares during the period:
Fiscal year ended March 31, 2023:	55,341,901	shares
Fiscal year ended March 31, 2022:	55,091,175	shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)
(1) Non-consolidated Operating Results			(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit		Ordinary profit	Net income
	Fiscal year ended	Million yen		%	Million yen	%		Million yen	%	Million yen	%
	March 31, 2023	230,912		(0.7)	(10,073)	-	5,884	62.5	(8,064)	-
	March 31, 2022	232,428		7.4	778	-	3,622	179.1	471	(94.4)
		Basic earnings	Diluted earnings
		per share		per share
	Fiscal year ended			Yen		Yen
	March 31, 2023	(145.72)		-
	March 31, 2022			8.56		8.56

(Note) Diluted earnings per share for the fiscal year ended March 31, 2023 is not presented even though the Company has issued potential shares, because basic earnings per share was net loss.

(2) Non-consolidated Financial Position

		Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of		Million yen		Million yen	%	Yen
March 31, 2023		196,123		72,951	37.2	1,317.27
March 31, 2022		196,081		83,289	42.5	1,504.52
(Reference) Equity:	As of March 31, 2023:	¥	72,907 million
	As of March 31, 2022:	¥	83,240 million

*Financial results reports are exempt from the audit conducted by certified public accountants or an audit corporation.

*Proper use of earnings forecasts, and other special matters (Explanation for the proper use of earnings forecasts)

Financial results forecasts are based on information currently available to the Company and certain assumptions deemed reasonable, and are not intended to be the Company's guarantee that they will be achieved. Actual results may significantly vary due to a variety of factors.

For the assumptions used as the basis for the earnings forecasts and precautions regarding the use of the earnings forecasts, please refer to "1. Summary of consolidated business results, etc. (4) Future outlook" on page 5 of this report.

	Table of Contents of Attachments
1. Summary of consolidated business results, etc	2
(1)	Summary of consolidated business results etc. for the period under review	2
(2)	Financial condition	3
(3)	Overview of cash flows	4
(4)	Future outlook	5
2. Basic approach to selection of accounting standards	6
3. Consolidated Financial Statements and Notes	7
(1)	Consolidated balance sheet	7
(2)	Consolidated statement of income and comprehensive income	9
	Consolidated statement of income	9
	Consolidated statement of comprehensive income	10
(3)	Consolidated statement of changes in net assets	11
(4)	Consolidated statement of cash flows	13
(5)	Notes to the consolidated financial statements	14
	Notes on going concern assumption	14
	Changes in accounting policies	14
	Additional information	14
	Notes to the consolidated statement of income	14
	Segment information	15
	Per share information	17
	Significant subsequent events	17
4. Supplementary information	18
(1)	Changes in information about financial results	18
(2)	Changes in reportable segment information	19
(3)	Changes in net sales by destination market	20
(4)	Changes in proportion of overseas production by value	20
(5)	Changes in resource inputs	20

1

1. Summary of consolidated business results, etc.

1. Summary of consolidated business results etc. for the period under review
   Consolidated business results for the fiscal year ended March 31, 2023
   The world economy for the fiscal year ended March 31, 2023 appeared to be in a favorable climate for recovery with progress seen in balancing economic activities with measures taken to prevent COVID-19 infection in various countries. However, the economic outlook still remained uncertain due partly to the effects of accelerated monetary tightening overseas and the Russian-Ukrainian problem, in addition to sharp price rises, soaring raw material prices, and supply restrictions.
   Amid such conditions, Toshiba Tec Corporation (the "Company") and its subsidiaries (collectively, the "Group") set forth the Basic Policy of the FY22-24Mid-term Business Plan, "To become a global top solutions partner by generating new value through co-creation with the aim of contributing to the resolution of social issues." Under the basic policy, the Group has focused its energy on carrying out various measures to develop its business. At the same time, as a solutions partner that helps solve issues in the domains of stores, offices, logistics, and manufacturing, the Group has promoted initiatives to achieve the Sustainable Development Goals (SDGs) together with customers and strived to contribute to realizing a sustainable society.
   In the fiscal year ended March 31, 2023, sales of POS systems for the overseas market and multifunction peripherals (MFPs) for the overseas market increased due mainly to the impact of foreign exchange rates and growth in the Americas, resulting in net sales of ¥510,767 million (up 15% year on year). On the profit front, although there were effects of tight supply-demand balance and soaring prices in components and international cargo transportation, profitability of MFPs improved, which resulted in operating profit of ¥16,078 million (up 39% year on year), and ordinary profit of ¥13,149 million (up 29% year on year). However, the recognition of "Loss on litigation" related to a patent dispute as an extraordinary loss, a partial reversal of deferred tax assets and other factors resulted in loss attributable to owners of parent of ¥13,745 million (compared with profit attributable to owners of parent of ¥5,381 million in the previous fiscal year). For details of the patent dispute, please refer to "3. Consolidated Financial Statements and Notes (5) Notes to the consolidated financial statements (Notes to the consolidated statement of income) (Loss on litigation)."
   Regarding the year-end dividend for the fiscal year ended March 31, 2023, as a result of comprehensive consideration of the above business results, the business environment, stable dividend payments and other factors, the Company has decided to pay a dividend of ¥20 per share, the same amount as the year-end dividend for the previous fiscal year. We would like to seek approval of shareholders.

Results of reportable segments for the fiscal year ended March 31, 2023 were as follows.

Retail Solutions Business Group

The Retail Solutions Business Group handles POS systems for domestic and overseas markets, auto ID systems for domestic market, and related products. Amid a severe business environment in which the impact of the spread of COVID-19 and intensifying competition with peers continue, the business group has worked on various initiatives under the basic policy of "Aim at becoming a global top solutions partner in the distribution industry." These initiatives include solution business expansion through the global common retail platform "ELERA" and strategic partnership, concentrated investment in growth fields (data services, next generation stores, payment, and Supply Chain Management (SCM)), and the expansion of service business in overseas markets.

Sales of POS systems for the domestic market declined under continued harsh conditions reflecting parts supply constraints, rising prices, and other factors, despite a recovery trend in the investment appetite in the retail and restaurant businesses. However, sales showed signs of recovery due to efforts to expand sales mainly of payment terminals, self-ordering systems, and smart receipts by taking into account measures against COVID-19, as well as efforts to revise selling prices.

Sales of POS systems for overseas markets increased due to the impact of foreign exchange rates, an increase in sales in the Americas, and other factors.

Sales of auto ID systems for the domestic market increased, primarily due to an increase in sales of barcode printers, mainly to specific customers.

2