Consolidated Financial Results
for the Three Months Ended June 30, 2023
[Japanese GAAP]
August 7, 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: 03-6830-9151
Scheduled date of filing quarterly securities report: August 8, 2023
Scheduled date of commencing dividend payments: –Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2023
122,374
12.0
1,287
532.3
406
–
38
–
June 30, 2022
109,2992.1
203(93.8)(2,253)–(2,161)–
2,632
million[
78.3(Note) Comprehensive income:Three months ended June 30, 2023:¥%](31.9) %]Three months ended June 30, 2022:¥ 1,476 million [Basic earnings
per share

Diluted earnings
per share

Three months ended
Yen
Yen
June 30, 2023
0.70
0.70
June 30, 2022
(39.07)–(Note) Diluted earnings per share for the three months ended June 30, 2022 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
As ofJune 30, 2023
March 31, 2023
(Reference) Equity:

Net assets

Million yen

Million yen

316,781
310,692

As of June 30, 2023:
As of March 31, 2023:¥¥

Capital adequacy ratio

103,679
102,206
97,339 million
96,195 million

%

30.7
31.0

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2023

–

20.00

–

20.00

40.00

Fiscal year ending March 31, 2024–

Fiscal year ending March 31, 2024 (Forecast)

20.00

–

25.00

45.00

(Note) Revision to the forecast for dividends announced most recently:NoYear-endTotal

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.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Full year

Million yen

530,000%

3.8

Million yen

18,000%11.9(Note) Revision to the financial results forecast announced most recently:

Million yen

15,000%

14.1

Million yen

7,000

%

–

Yen

126.48Yes* Notes:(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New–(Company name:
Exclusion:–(Company name:No))(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:
Yes(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Notes (3) Notes to the quarterly consolidated
financial statements (Accounting policies adopted specially for the preparation of quarterly consolidated financial statements)” on
page 9 of this report.
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2023:
57,629,140 shares
March 31, 2023:
57,629,140 shares2) Total number of treasury shares at the end of the period:
June 30, 2023:
2,280,451 shares
March 31, 2023:
2,281,668 shares
3) Average number of shares during the period:
Three months ended June 30, 2023:
Three months ended June 30, 2022:

55,348,889 shares
55,328,546 shares• Quarterly financial results reports are exempt from quarterly review 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. Qualitative information on the financial results for the period under review (3) Consolidated financial results
forecast and other forward-looking information” on page 4 of this report.

Table of Contents of Attachments
1. Qualitative information on the financial results for the period under review

2(1) Operating results

2(2) Financial condition

3(3) Consolidated financial results forecast and other forward-looking information

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statement of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income (For the three months)

7

Quarterly Consolidated Statement of Comprehensive Income (For the three months)

8(3) Notes to the quarterly consolidated financial statements

9Notes on going concern assumption

9

Notes in the event of significant amount changes in shareholders’ equity

9

Accounting policies adopted specially for the preparation of quarterly consolidated financial statements

9

Segment information, etc.

10Significant subsequent events

11

1

1. Qualitative information on the financial results for the period under review(1) Operating results
The world economy during the three months ended June 30, 2023 picked up moderately overall, as thenormalization of economic activities progressed after the COVID-19 pandemic receded. However, the outlook
still remained uncertain due mainly to price rises, ongoing monetary tightening overseas, and the RussianUkrainian problem.
Amid such conditions, Toshiba Tec Corporation (the “Company”) and its subsidiaries (collectively, the“Group”) have been pursuing the Basic Policy of the FY23-25 Mid-term Business Plan, “To become a global
top solutions partner by generating new value through co-creation with the aim of contributing to theresolution of social issues.” Under the basic policy, the Group has focused its energy on carrying out various
measures toward sustainable growth. At the same time, the Group has strived to contribute to the resolution ofsocial issues by executing business transformation and corporate transformation.
In the three months ended June 30, 2023, net sales were ¥122,374 million (up 12% year on year) due mainly
to increased sales of POS systems for the domestic market and multifunction peripherals (MFPs), and theimpact of foreign exchange rates. On the profit front, profitability of MFPs improved, resulting in operating
profit of ¥1,287 million (up ¥1,084 million year on year), ordinary profit of ¥406 million (ordinary loss of¥2,253 million in the same period of the previous fiscal year), and profit attributable to owners of parent of¥38 million (loss attributable to owners of parent of ¥2,161 million in the same period of the previous fiscal
year).
Results of reportable segments for the three months ended June 30, 2023 were as follows.
Retail Solutions Business GroupThe 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
intensifying competition with peers continues, the business group has worked on expanding its solution
business through the global retail platform “ELERA” and strategic partnership, boosting recurring revenue
business, and investing in retail innovation to expand new businesses (strengthening digital humanresources, ELERA Evolution, enhancing co-creation opportunities, and strengthening partner
collaboration).
Sales of POS systems for the domestic market increased due to efforts to expand sales mainly of selfcheckout systems, payment terminals, and smart receipts, as well as efforts to revise selling prices, despite
continued harsh conditions reflecting soaring raw material prices, rising prices, and other factors.
Sales of POS systems for overseas markets increased due to the impact of foreign exchange rates, anincrease in sales in the Americas, and other factors.
Sales of auto ID systems for the domestic market decreased, primarily because sales of mid-range andhigh-end barcode printers declined, offsetting the overall growth in the number of units sold thanks tostrong sales of entry models and mobile printers to specific customers.
As a result, net sales of the Retail Solutions Business Group were ¥69,124 million (up 9% year on year).
The business group recorded operating loss of ¥828 million (operating profit of ¥72 million in the same
period of the previous fiscal year) due to deterioration in profit and loss of the POS systems for thedomestic market caused by the impact of foreign exchange rates and a deterioration in profit and loss of
POS systems for the overseas market.
Workplace Solutions Business Group
The Workplace Solutions Business Group handles multifunction peripherals (MFPs) for domestic andoverseas markets, auto ID systems for overseas markets, inkjet heads for domestic and overseas markets,and related products. Amid a severe business environment in which the declining printing volume due topost-COVID-19 work style reforms and office DX promotion and intensifying competition with peers
continue, the business group focused on increasing basic earnings power of core business. At the same time,2the business group worked on developing the auto ID business, document and data solutions, and customer
support business in order to expand business in growth areas.
Sales of MFPs increased due to the impact of foreign exchange rates in addition to increased sales in theAmericas, Europe, and other regions as a result of focusing on raising selling prices, supplying highperformance models, and other efforts.
Sales of auto ID systems for overseas markets declined as a result of decreased sales in the Americas,
Europe, Asia, and other overseas regions.
Sales of inkjet heads decreased due mainly to decreased sales to overseas customers.
As a result, net sales in the Workplace Solutions Business Group were ¥54,475 million (up 16% year onyear). Operating profit for the business group soared to ¥2,115 million (up ¥1,984 million year on year) due
to the increase in net sales resulting from recovery from product supply disruptions, the increased selling
prices and other factors and effects of structural reform and structural transformation implemented so far,etc.
(Note) An auto ID system is a system that uses hardware and software devices to recognize and manage data
content by automatically scanning barcode and RFID tag data.
(2) Financial condition
Assets at the end of the first quarter of the fiscal year ending March 31, 2024 increased by ¥6,089 million
from the end of the previous fiscal year to ¥316,781 million. This was mainly because merchandise andfinished goods, group deposits paid, and “Other” in current assets increased by ¥7,748 million, ¥5,093 million,and ¥2,204 million, respectively, and property, plant and equipment in non-current assets and “Other” ininvestments and other assets increased by ¥861 million and ¥1,817 million, respectively, although cash anddeposits, and notes and accounts receivable - trade, and contract assets in current assets declined by ¥8,038
million and ¥3,801 million, respectively.
Liabilities increased by ¥4,615 million from the end of the previous fiscal year to ¥213,101 million. This was
mainly because notes and accounts payable - trade and “Other” in current liabilities and retirement benefit
liability in non-current liabilities increased by ¥1,950 million, ¥2,152 million, and ¥202 million, respectively.
Net assets increased by ¥1,473 million from the end of the previous fiscal year to ¥103,679 million. This wasprimarily due to an increase in foreign currency translation adjustment of ¥2,373 million, and an increase inretained earnings owing to the recording of profit attributable to owners of parent of ¥38 million, althoughretained earnings decreased owing to the payment of dividends of ¥1,106 million.

3(3) Consolidated financial results forecast and other forward-looking information
The Company revised its consolidated financial results forecast for the fiscal year ending March 31, 2024
announced on May 11, 2023 as follows.
Revision to consolidated financial results forecasts for the fiscal year ending March 31, 2024

Net sales

Operating profit

Ordinary profit

Profit attributableto owners ofparent(Million yen)
Basic earnings per
share (Yen)Previously announced
forecast (A)520,000

18,00015,0007,000

126.48

Revised forecast (B)530,000

18,00015,0007,000

126.48Change (B)−(A)10,000

–

–

–

–

1.9

–

–

–

–

510,767

16,07813,149(13,745)(248.37)

Change (%)
Reference: results of theprevious fiscal year (ended
March 31, 2023)

Revision to consolidated sales forecasts by segment for the fiscal year ending March 31, 2024
(Million yen)
Reference: results ofthe previous fiscal
year (ended March
31, 2023)

Previously
announced
forecast (A)Revised forecast(B)

Change (B) − (A)Retail Solutions

307,000

310,000

3,000

1.0

296,951

Workplace Solutions

218,000

226,000

8,000

3.7

217,672

Eliminations(5,000)(6,000)(1,000)20.0(3,857)

Net sales

520,000

530,000

10,0001.9

510,767

Change (%)

Consolidated operating profit forecasts by segment for the fiscal year ending March 31, 2024
Previously
announced
forecast (A)Revised forecast(B)

Change (B) − (A)(Million yen)
Reference: results ofthe previous fiscal
year (ended March
31, 2023)

Change (%)

Retail Solutions

11,00011,000

–

–

9,196

Workplace Solutions

7,000

7,000

–

–

6,882

Operating profit

18,00018,000––16,078Net sales of the Retail Solutions Business Group and Workplace Solutions Business Group have beenrevised upward due mainly to the impact of exchange rate. On the other hand, operating profit, ordinary
profit, and profit attributable to owners of parent of the Group remain unchanged from the previously
announced forecast. Based on these factors, we have revised our consolidated financial results forecasts forthe fiscal year ending March 31, 2024 as stated above.
The reference exchange rates used in the consolidated financial results forecast for the fiscal year ending
March 31, 2024 are ¥132.71 to the US dollar and ¥143.46 to the euro.
* 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 beachieved. Actual results may significantly vary due to a variety of factors.

4

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Million yen)
As of March 31, 2023

As of June 30, 2023

AssetsCurrent assets
Cash and deposits

42,68734,649

1,137

6,230

74,29370,492

37,616
5,967

45,364
5,745

Raw materials and supplies
Other

11,88428,173

12,65630,377

Allowance for doubtful accounts(1,185)(1,273)

Total current assets

200,575

204,242

45,17346,034

Goodwill
Other

557
10,528522
10,306

Total intangible assets

11,086

10,82954,266(408)

56,083(408)

Group deposits paid
Notes and accounts receivable - trade, andcontract assets
Merchandise and finished goods
Work in process

Non-current assets
Property, plant and equipment
Intangible assets

Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

553,85755,674

110,117

112,538

310,692

316,781(Million yen)
As of March 31, 2023

As of June 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade54,167

56,117

Short-term borrowings
Income taxes payable

1,779
5,177

2,001
4,571

Other

89,421

91,573

Total current liabilities

150,546

154,264

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities

2,581

3,186

28,722
26,63628,924
26,72557,94058,837

208,486

213,101

Shareholders’ equity
Share capital

39,97039,970Capital surplus
Retained earnings

902
40,017903
38,949Total liabilities
Net assets

Treasury shares(4,695)(4,693)

Total shareholders’ equity

76,19575,131

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

1,525
(40)

1,422
(5)

Foreign currency translation adjustment
Minimum pension liability adjustments

18,131(212)

20,504(165)

Accumulated other comprehensive income

Remeasurements of defined benefit plans
Total accumulated other comprehensive income

595

451

19,99922,208

Share acquisition rights

43

38

Non-controlling interests

5,966

6,301

Total net assets

102,206

103,679

Total liabilities and net assets

310,692

316,7816

(2) Quarterly Consolidated Statement of Income and Comprehensive Income
Quarterly Consolidated Statement of Income (For the three months)(Million yen)
For the three months
ended June 30, 2022

For the three months
ended June 30, 2023

Net sales

109,299

122,374

Cost of sales

66,775

73,109Gross profit

42,52449,264

Selling, general and administrative expenses

42,32047,977

Operating profit

203

1,287

Non-operating income
Interest income

54

92

Dividend income

55

59

Foreign exchange gains

203

891

Other

90
405

121
1,164

Total non-operating income
Non-operating expenses
Interest expenses

112

134

Loss on valuation of derivatives

1,050

1,172

Foreign withholding tax
Other

1,249
449

–
737

Total non-operating expenses

2,862

2,044

(2,253)406

Ordinary profit (loss)
Extraordinary income
Gain on sale of investment securities–

6

Total extraordinary income

–

6

22

158

Total extraordinary losses

22

158

Profit (loss) before income taxes(2,275)254

Extraordinary losses
Restructuring cost

256

135

Profit (loss)
Profit (loss) attributable to non-controlling interests(2,531)

119

(369)

80

Profit (loss) attributable to owners of parent(2,161)

38

Income taxes

7

Quarterly Consolidated Statement of Comprehensive Income (For the three months)(Million yen)
For the three months
ended June 30, 2022
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Minimum pension liability adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests

8

For the three months
ended June 30, 2023

(2,531)

119

(552)
(88)
4,884
(29)
(205)
4,008
1,476

(103)
34
2,676
47
(143)
2,512
2,632

1,397
79

2,247
384

(3) Notes to the quarterly consolidated financial statements
Notes on going concern assumption
Not applicable
Notes in the event of significant amount changes in shareholders’ equity
Not applicable
Accounting policies adopted specially for the preparation of quarterly consolidated financial statements
Calculation of tax expenses
Tax expenses are calculated by reasonably estimating the effective tax rate after the application of tax effectaccounting for profit before income taxes for the consolidated fiscal year ending March 31, 2024 including thefirst quarter under review and multiplying profit before income taxes by the estimated effective tax rate.
Provided, however, that if calculation using the estimated effective tax rate turns out to be significantly
unreasonable, calculations are made pursuant to Paragraph 15 (Method of using the statutory effective tax rate)of the Implementation Guidance on Tax Effect Accounting for Interim Financial Statements (AccountingStandards Board of Japan (ASBJ) Guidance No. 29, February 16, 2018), according to the provisions ofParagraph 19 of the Implementation Guidance on Accounting Standard for Quarterly Financial Reporting(ASBJ Guidance No. 14, March 31, 2020).
Income taxes - deferred are included in income taxes.

9Segment information, etc.
I Three months ended June 30, 2022
Amounts of net sales, profit or loss by reportable segment(Million yen)

Reportable segments

Consolidated
amount(Note)

Adjustment

Retail Solutions

Workplace
Solutions

63,42145,878109,299

–

13

895

909

(909)

109,299–

63,435

46,774110,209(909)

109,299

–

203

Total

Net sales
Sales to external customers
Intersegment sales and transfers
Total

Segment profit
72
131
203
(Note) Segment profit corresponds with operating profit in the quarterly consolidated statement of income.

II Three months ended June 30, 2023
Amounts of net sales, profit or loss by reportable segment(Million yen)

Reportable segments
Retail Solutions

Workplace
Solutions

Consolidated
amount(Note)

Adjustment

Total

Net sales
Sales to external customers
Intersegment sales and transfers
Total

69,06853,305

122,374

–

55

1,170

1,225

(1,225)

122,374–

69,12454,475

123,600(1,225)

122,374–
Segment profit (loss)
(828)
2,115
1,287
(Note) Segment profit (loss) corresponds with operating profit in the quarterly consolidated statement of income.

*Supplementary information
Average exchange rate
(Yen to the US dollar)
Average exchange rate
(Yen to the euro)Three months ended June 30, 2022

Three months ended June 30, 2023

126.51135.79136.75147.9310

1,287

Significant subsequent events
Purchase of Treasury Shares and Tender Offer for Treasury Shares
At a meeting held on August 7, 2023, the Board of Directors of the Company resolved to acquire its own sharesand conduct a tender offer for it its treasury shares as a specific acquisition method in accordance with theprovisions of the Company’s Articles of Incorporation under the provisions of Article 459, Paragraph 1 of theCompanies Act (Act No. 86 of 2005; as amended).
For further details, please refer to the Notice Regarding Purchase of Treasury Shares and Tender Offer for
Treasury Shares announced on August 7, 2023.
Borrowing Funds
The Company plans to borrow funds for the purpose of the tender offer of treasury stock as follows.
1. Lender

Sumitomo Mitsui Banking Corporation

2. Use of funds

Appropriation of funds required for tender offer, etc

3. Date of borrowing

September 27, 2023 (scheduled)

4. Repayment date

September 27, 2026

5. Repayment method

6 installments every 6 months

6. Interest rate

TIBOR + spread

7. Security

Unsecured

8. Loan amount

9,000 million yen (Maximum amount)11