Disclaimer: This document is an English translation of the original document in Japanese and has been
prepared solely for reference purposes. In the event of any discrepancy between this English
translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results
for the Nine Months Ended December 31, 2023
[Japanese GAAP]
January 29, 2024
Company name: TAKAOKA TOKO CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 6617
URL: https://www.tktk.co.jp/
Representative: Takashi Ichinose, President and Representative Director
Contact: Yasuhiro Munekawa, Executive Officer and General Manager, Finance & Accounting Department
Phone: +81-3-6371-5026
Scheduled date of filing quarterly securities report: February 1, 2024
Scheduled date of commencing dividend payments: –Availability of supplementary explanatory materials on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2024 (April 1, 2023 - December 31,
2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Nine months ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 2023
72,484
9.4
5,320
41.6
5,500
40.2
3,337
31.0
December 31, 2022
66,230
4.0
3,758
26.2
3,921
28.3
2,547
(3.8)
(Note) Comprehensive income: Nine months ended December 31, 2023: ¥4,230 million [38.6%]
Nine months ended December 31, 2022: ¥3,053 million [(5.1)%]
Basic earnings
Diluted earnings
per shareper share
Nine months ended
Yen
Yen
December 31, 2023
207.34–
December 31, 2022
157.76–(2) Consolidated Financial Position

Total assets
Million yen

109,381
As of December 31, 2023
106,322
As of March 31, 2023
(Reference) Equity: As of December 31, 2023: ¥56,349 million
As of March 31, 2023: ¥53,785 million

Net assets

Equity ratio

Million yen

61,62358,460

%

51.5
50.6

2. Dividends

Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen

Yen

Yen

Year-end

Total
Yen

Fiscal year ended
–
30.00
–
25.00
March 31, 2023
Fiscal year ending
–
25.00
–
March 31, 2024
Fiscal year ending
March 31, 2024
25.00
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None
(Note) Breakdown of the 2nd quarter-end dividends for the fiscal year ended March 31, 2023:
Ordinary dividends: 25.00 yen; 10th anniversary commemorative dividends: 5.00 yen

Yen

55.00

50.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March
31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentMillion yen%

Million yen%

Million yen%

Full year
106,000
8.4
6,400 32.0
6,500 38.2
(Note) Revision to the financial results forecast announced most recently: Yes

Million yen

3,600

%

23.3

Yen

223.66

* Notes:(1) Changes in significant subsidiaries during the period under review: None
(Changes in specified subsidiaries resulting in changes in scope of consolidation):
Newly included: – (), Excluded: – ()(2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of issued and outstanding shares (common shares)
1) Total number of issued and outstanding shares at the end of the period (including treasury shares):December 31, 2023:
16,276,305 shares
March 31, 2023:
16,276,305 shares2) Total number of treasury shares at the end of the period:
December 31, 2023:
237,811 shares
March 31, 2023:
122,164 shares
3) Average number of shares during the period:
Nine months ended December 31, 2023:
Nine months ended December 31, 2022:

16,095,965 shares
16,150,048 shares* These quarterly consolidated financial results are outside the scope of quarterly review by certified public
accountants or an audit firm.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecast and other forward-looking statements contained in this material are based on theinformation currently available to the Company and certain assumptions deemed reasonable, and the Company does
not guarantee the achievement of these projections. In addition, actual financial results, etc. may differ significantly
due to various factors. For preconditions for the financial results forecast and precautions for using the financial
results forecast, please see “1. Qualitative Information on Quarterly Financial Results (3) Explanation ofConsolidated Financial Results Forecast and Other Forward-looking Information” on page 5 of the attachments.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results .........................................................................2(1) Explanation of Operating Results .......................................................................................................2(2) Explanation of Financial Position .......................................................................................................4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .....5
2. Quarterly Consolidated Financial Statements and Principal Notes .........................................................6(1) Quarterly Consolidated Balance Sheets ..............................................................................................6(2) Quarterly Consolidated Statements of Income and Comprehensive Income ......................................8(3) Notes to Quarterly Consolidated Financial Statements .....................................................................10(Notes on going concern assumption) ..........................................................................................10(Notes in case of significant changes in shareholders’ equity) .....................................................10(Segment information, etc.) ..........................................................................................................10

1

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
On January 22, 2024, we made an announcement of incidents of impropriety regarding extra-high-voltage
transformer products (“the Incidents”)*1.
We identified the Incidents in the course of performing the total quality inspection for all products of theCompany following the announcement of incidents of impropriety regarding certain instrument transformer
products made in May 2023.
We would like to once again express our deepest apologies to our customers and other stakeholders for any
inconvenience and concern these repeated incidents of impropriety may have caused.
In view of the gravity of the Incidents, we established an independent investigation and verificationcommittee on January 22, 2024. The committee has no vested interest in the Company, and we have delegatedthree tasks to it: 1. Investigation into the Incidents; 2. Causal analysis and proposal of recurrence prevention
measures based on the investigation findings of the Incidents; and 3. Evaluation and verification of the processesof the comprehensive investigation and other measures taken by the Company.
We will offer all-out cooperation to investigations by the investigation and verification committee. We will
also continue with comprehensive inspections to identify the true causes of the series of incidents of impropriety
and ensure the thorough implementation of recurrence prevention measures while doing all in our power to regain
our customers’ trust by striving to further strengthen the compliance systems across the entire Group.
*1: Published on the Company’s website:
https://ssl4.eir-parts.net/doc/6617/tdnet/2382637/00.pdf (available in Japanese)
We also announced the cancellation of ISO 9001 certification on December 5, 2023*2. Since the temporary
suspension of ISO 9001, announced on June 16, 2023*3, we formulated and implemented a correction plan forthis case and underwent an ad hoc examination by the Electrical Safety and Environment Laboratory (JET),
ISO’s registered certification organization. We then received an assessment that the temporary suspension
cancellation condition was satisfied. However, as the total quality inspection for all products other than certain
instrument transformer products was ongoing, we continued the temporary suspension. Since the certification
was to expire on December 5, 2023, we received a notice of cancellation of the certification from JET. We willcontinue to strive to regain the trust of our customers through the total quality inspection and thoroughimplementation of preventive measures, and we will do our utmost to quickly reacquire such certification.
*2: Published on the Company’s website:
https://www.tktk.co.jp/en/news/assets/pdf/news_20231205_en.pdf*3: Published on the Company’s website:
https://www.tktk.co.jp/en/news/assets/pdf/news_20230616_en.pdf
Regarding the overall situation for the Group, the business environment is changing significantly andbecoming increasingly severe in the electric power industry, which is our largest customer. Global fuel prices
have risen rapidly and competition has further intensified in the retail business amid growing demands forrealizing carbon neutrality, ensuring stable electricity supply and demand, strengthening disaster preventionfunctions and resilience within local communities, and a revenue cap system—a new system for wheelingcharges. Against this background, companies in the industry are working to improve productivity and thoroughly
reduce business costs. Meanwhile, the Japanese government has declared its intention to become carbon neutral
by 2050 as part of its efforts to realize a decarbonized society. In Japan, that has encouraged the further spreadof distributed energy-related equipment, including renewable energy, and there are signs of nascent demand forfast chargers for electric vehicles.
Meanwhile, in April 2021, the Group formulated its 2030 VISION and Medium-term Management Plan
2023. Based on the three pillar policies of deepening and transforming our core businesses, transforming thestructure of our business foundations, and taking on challenges to cultivate the future vision for 2030, we have2

started pursuing an ambidextrous management style that strives to simultaneously transform existing businesses
and develop new businesses, in order to achieve our 2030 VISION.
As announced on December 22, 2023, during the third quarter under review, we identified our materiality; key
issues that we should address on a priority basis to realize a sustainable society and achieve sustainableenhancement of corporate value.
Prior to the identification of materiality, we formulated the Basic Policy on Sustainability*4, as announced on
December 27, 2021.
Our basic policy on sustainability is to implement the TAKAOKA TOKO Group Charter of Corporate
Behavior, which was formulated with the aim of achieving sustainable growth in cooperation with society while
fulfilling the two-fold mission of “unchanging mission” and “new mission.” In accordance with this basic policy,
we are working on various sustainability issues.
As we advance these initiatives, we identified material issues that we should address on a priority basis, in aneffort to further deepen coordination between our management strategies and initiatives taken in line with the
Basic Policy on Sustainability, while seeking to realize a sustainable society and sustainably enhance corporate
value. We also determined what we want our company to be over the long term when we will have successfully
addressed our materiality.
To identify materiality, we selected sustainability issues based on the value creation process and management
policies that we have taken stock of, as well as mega industry trends and external environments that can affectour business. Then, we assessed the importance of each issue and held repeated rounds of discussions among
management and others, until we identified our materiality below. For details, please see the announcement madeon December 22, 2023*5.
■ Contribution to stable supply and advanced use of electricity■ Contribution to realization of carbon neutrality■ Creation of an organization where diverse people are motivated to co-create and keep challenging
themselves■ Stakeholder engagement■ Ensuring of safety, quality, compliance, and enhancement of governance*4: Published on the Company’s website:
https://ssl4.eir-parts.net/doc/6617/ir_material/174838/00.pdf (available in Japanese)*5: Published on the Company’s website:
https://ssl4.eir-parts.net/doc/6617/ir_material/220287/00.pdf (available in Japanese)
Currently, our Sustainability Committee, which was established on September 25, 2023 to further strengthen
the sustainability management promotion system, is working on concrete numerical targets and initiatives, which
will be disclosed once they are fixed.
At the end of March 2023, the Tokyo Stock Exchange issued a notice titled, “Action to Implement
Management that is Conscious of Cost of Capital and Stock Price.” The situation for the Company with regard
to this as of March 31, 2023 was as follows: ROE = 5.5%; PBR = 0.7x. The stock price, ROE and PBR has
been on an improving trend relative to March 31, 2019 (ROE = 2.1%; PBR = 0.4x); however, they fall short ofthe standards detailed in the aforementioned notice and we fully acknowledge that there are still issues.
Going forward, we will begin by analyzing the current situation with reference to the content of the above
notice (form an accurate understanding of the Company’s capital costs and returns on capital, and analyze andevaluate the current situation with regard to this and the market evaluation at meetings of the Board of
Directors), then formulate and disclose our plans.
As part of these efforts, we are analyzing metrics and identifying issues on a by business-segment or bymodel level, to improve initiatives focused on ROIC metrics toward the realization of business management
and operations that take into account capital costs and return on capital.
Furthermore, in order to improve ROS, we will accelerate kaizen and DX initiatives while also engaging in3

structural reforms of existing core businesses (selection and centralization, reform of supply chains, reshufflingof production bases, etc.), formulating takeoff strategies for new businesses, investing in growth, and creatingintangible assets through investment in human resource and R&D. Each of these shall be disclosed in the formof easy-to-follow growth stories and we will actively work on improving dialogue with our investors.
On “6. Action to Implement Management That is Conscious of Cost of Capital and Stock Price” of the FY2023
Second Quarter Supplementary Briefing Material on Financial Results*6, which was published on November 10,
2023, we provide findings of the current state analysis of our ROE (a perception about the current status and an
example action) by breaking it down by such elements as profitability, capital efficiency, and financial soundness.
To view the material, please visit the Company’s website.
*6: Published on the Company’s website:
https://ssl4.eir-parts.net/doc/6617/ir_material_for_fiscal_ym1/144533/00.pdf (available in Japanese)
Despite a decline in sales for general plant projects and 3D inspection systems, net sales for the ninemonths ended December 30, 2023 totaled 72,484 million yen (up 9.4% year on year), mainly due to increases
in sales across the entire Metering Business segment and certain power distribution equipment.
On the profit front, as is the case with net sales, a decline in profit for general plant projects and 3D
inspection systems was more than offset by an increase in profit across the entire Metering Business segment
and certain power distribution equipment. As a result, profit grew on every level, with operating profit reaching
5,320 million yen (up 41.6% year on year), ordinary profit 5,500 million yen (up 40.2% year on year), andprofit attributable to owners of parent 3,337 million yen (up 31.0% year on year).
The operating results for each business segment are detailed below.
In the Electric Equipment business segment, net sales for the segment as a whole increased to 40,979
million yen (up 6.7% year on year) due to the increase in sales for certain power distribution equipment.
Segment profit increased to 4,563 million yen (up 14.3% year on year) as well.
In the Metering Business segment, net sales for the segment as a whole rose to 22,463 million yen (up11.7% year on year) due to increases in sales for replacement of expired meters and smart meters, with segment
profit increasing to 3,540 million yen (up 80.5% year on year).
In the GX Solution Business segment, net sales for the segment as a whole increased to 6,204 million yen(up 61.9% year on year) due to a recovery process in sales volume for fast chargers from the impact of longer
delivery lead times for parts procurement, and an increase in sales related to the data business, which was
newly launched. Segment losses narrowed to 174 million yen (compared to segment loss of 640 million yen in
the previous fiscal year).
In the Applied Optics Inspection System Business segment, sales of 3D inspection system decreased due tostagnating demand for semiconductors. As a result, net sales for the segment as a whole decreased to 2,106
million yen (down 32.4% year on year) and segment profit also decreased to 445 million yen (down 64.1% year
on year).
In Other Businesses segment, a decline in real estate leasing revenue resulted in a decline in net sales forthe segment as a whole to 731 million yen (down 2.4% year on year) and a contraction of segment profit to 489
million yen (down 1.3% year on year).

(2) Explanation of Financial Position
Total assets at the end of the third quarter under review increased by 3,059 million yen compared to the end of
the previous fiscal year to 109,381 million yen. This was primarily due to increases in cash and deposits andinventories despite a decrease in notes and accounts receivable - trade, and contract assets.
Liabilities decreased by 103 million yen from the end of the previous fiscal year to 47,758 million yen.
This was primarily due to increases in short-term borrowings, contract liabilities, and long-term borrowings
despite decreases in notes and accounts payable - trade, income taxes payable, accrued consumption taxes, and4accounts payable - other.
Net assets increased by 3,162 million yen from the end of the previous fiscal year to 61,623 million yen.
This was primarily due to an increase in retained earnings owing to the recording of profit attributable toowners of parent and an increase in non-controlling interests, despite decreases resulting from dividends paid
and purchase of treasury shares.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the full-year consolidated financial results forecast, we have made changes to the consolidated
financial results forecast announced on April 26, 2023. For details, please refer to the “Notice of Revisions to
Financial Results Forecast for the Fiscal Year Ending March 31, 2024” announced today (January 29, 2024).

5

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

6

As of December 31, 2023

10,65913,38826,024

20,3532,016
2,508
15,419
7,304
1,851
(4)
65,7801,887
2,511
20,183
8,324
2,329
(4)
68,97333,010(21,998)
11,012
22,035(19,850)
2,184
11,547(10,822)725
20,490330
34,74233,137(22,505)
10,631
22,529(20,299)
2,230
11,731(10,948)
782
20,490308
34,443

1,971
1,971

1,941
1,941

1,614
36
746
598
832
3,828
40,542
106,322

1,672
854
636
858
4,022
40,408109,381As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Contract liabilities
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for repairs
Provision for environmental measures
Provision for product warranties
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

As of December 31, 2023

15,992
65
1,990
1,125
2,346
2,067
5,428
29,015

14,283
67
2,830
468
4,906
1,137
3,760
27,454

1,300
1,175
1,302
171
1,314

2,800
1,744
1,357
99
1,000

122

112

12,710750
18,84747,862

12,439750
20,30347,7588,000
7,408
38,063(195)
53,2758,000
7,408
40,589(453)
55,544

185
35
397
(108)
509
4,675
58,460106,322

280
33
503
(11)
805
5,273
61,623
109,381(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine Months Ended December 31(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rental income from facilities
Sold power
Compensation received
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sold power expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Office relocation expenses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the nine months ended
December 31, 2022
66,23050,361
15,86912,1103,758

For the nine months ended
December 31, 2023
72,484
54,112
18,371
13,051
5,320

1
33
116
54
40
68
314

3
25
71
55
25
42
69
292

22
21

18
26

81

53

24
150
3,921

14
113
5,500

4
34
38

3
3

9
1
10
3,949
518
502
1,020
2,928
381
2,547

15
15
67
98
5,404
1,034
446
1,481
3,923
586
3,337

8

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended December 31(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the nine months ended
December 31, 2022
2,928

For the nine months ended
December 31, 2023
3,923

22
(24)
52
17

95
(0)
40
97

56

74

124
3,053

307
4,230

2,659

3,633

394

597

9

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Segment information, etc.)[Segment information]
I. For the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
1. Information on net sales and profit or loss by reportable segment and information on disaggregated revenue(Million yen)
Electric
Equipment
Business

Reportable segment
Applied Optics
Metering
GX Solution
Inspection
Business
Business
SystemBusiness

Total

Others(Note 1)Total

Net sales
Revenue arisingfrom contracts
38,416
20,117
3,831
3,116
65,481―
65,481
with customers
Other revenue
―
―
―
―
―
749
749
(Note 2)
Net sales to outside
38,416
20,117
3,831
3,116
65,481
749
66,230
customers
Inter-segment net
1,014
3,481
657
―
5,153
371
5,525
sales or transfers
Total
39,43023,598
4,489
3,116
70,635
1,120
71,756
Segment profit (loss)
3,992
1,961
(640)
1,239
6,553
496
7,049
(Notes) 1. The “Other” includes a real estate leasing business.
2. Other revenue includes real estate leasing revenue included in the scope of “Accounting Standard for Lease
Transactions.”

2. Differences between total profit or loss of reportable segments and amounts in quarterly consolidated
statements of income and main details (Description of adjustments)(Million yen)
ProfitTotal segment profit of reportable segments
Segment profit of “Other”
Elimination of intersegment transactions
Corporate expenses (Note)
Other adjustments
Operating profit in the quarterly consolidated
statements of income(Note)

Amount

6,553
496
44
(3,349)13
3,758

Corporate expenses mainly represent general and administrative expenses not
attributable to any reportable segments.

10II. For the nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)
1. Information on net sales and profit or loss by reportable segment and information on disaggregated revenue(Million yen)
Electric
Equipment
Business

Reportable segment
Applied Optics
Metering
GX Solution
Inspection
Business
Business
SystemBusiness

Total

Others(Note 1)Total

Net sales
Revenue arisingfrom contracts
40,97922,4636,204
2,106
71,753―71,753
with customers
Other revenue
―
―
―
―
―
731
731
(Note 2)
Net sales to outside
40,97922,4636,204
2,106
71,753731
72,484
customers
Inter-segment net
1,176
3,869
802
―
5,847
374
6,222
sales or transfers
Total
42,15526,3327,006
2,106
77,601
1,105
78,706
Segment profit (loss)
4,563
3,540
(174)
445
8,375
489
8,865
(Notes) 1. The “Other” includes a real estate leasing business.
2. Other revenue includes real estate leasing revenue included in the scope of “Accounting Standard for Lease
Transactions.”

2. Differences between total profit or loss of reportable segments and amounts in quarterly consolidated
statements of income and main details (Description of adjustments)(Million yen)
ProfitTotal segment profit of reportable segments
Segment profit of “Other”
Elimination of intersegment transactions
Corporate expenses (Note)
Other adjustments
Operating profit in the quarterly consolidated
statements of income(Note)

Amount

8,375
489
48
(3,593)0
5,320

Corporate expenses mainly represent general and administrative expenses not
attributable to any reportable segments.

11