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 Six Months Ended June 30, 2024
(Based on Japanese GAAP)
August 9, 2024
Company name:teno. Holdings Company Limited
Stock exchange listing: Tokyo, Fukuoka
Stock code:
Representative:

7037
URL
President & CEO

https://www.teno.co.jp/
Hiroko Ikeuchi

Inquiries:
Director, GM of Administrative Headquarter Motoshi Okada
Scheduled date to file Semi-annual Securities Report:
August 9, 2024
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:–Yes

Holding of financial results meeting:

Yes

TEL

092 (263) 3550

(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)

Six months ended June 30, 2024
Six months ended June 30, 2023Percentages indicate year-on-year changes
Profit attributable
Net sales
EBITDA
Operating profit
Ordinary profit
to owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen% Millions of yen%
7,980
11.5
235 (13.4)
(0)
–(6)
–(56)
–
7,156
20.7
271
11.5
71(8.0)83(3.3)81 220.1
Earnings per share

Diluted earnings per share

Yen(12.33)17.95

Six months ended June 30, 2024
Six months ended June 30, 2023

Yen–17.87(2) Consolidated financial position
Total assets
As of June 30, 2024As of December 31, 2023

Net assets

Millions of yen
10,4149,527

Equity ratio

Millions of yen
2,144
2,242%
20.6
23.5

2. Cash dividends
Annual dividends per share

Year ended December 31, 2023
Year ending December 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
9.00

Yen
9.00

–

9.00

9.00

Year ending December 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
15,8809.1
155 (17.2)
138 (28.9)
32 (67.7)
7.87

1

4. Notes(1) Significant changes in the scope of consolidation during the six months ended June 30, 2024:

No(2) Application of special accounting methods for preparing interim consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

4,701,300 shares As of December 31, 2023

4,701,300 shares

132,724 shares As of December 31, 2023

132,724 shares

Number of treasury shares at the end of the period
As of June 30, 2024

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2024

4,568,576 shares Six months ended June 30, 2023

24,568,576 shares

Interim consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of December 31, 2023

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade and contract assets
Inventories
OtherAllowance for doubtful accounts
Total current assets1,925
1,194

2,027
1,307

66
911

63887

(3)

(14)

4,094

4,272

Non-current assets
Property, plant and equipment
Buildings and structures

2,840

3,406

Accumulated depreciation(1,290)(1,534)

Buildings and structures, net

1,550

1,872

38

38(35)(36)

3

2

Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress

73

12508
(430)

633
(469)

78

164

1,705

2,051

Goodwill
Other

1,670
244

2,017
256

Total intangible assets

1,915

2,273

Investments and other assets
Investment securities

1010

Long-term loans receivable
Long-term prepaid expenses

697
321

676
338

Deferred tax assets
Leasehold and guarantee deposits

181
601

247
543

Other
Allowance for doubtful accounts

2(2)

3(2)

Total investments and other assets

1,811

1,816

Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets

3

5,432

6,142

9,527

10,414

(Millions of yen)
As of December 31, 2023

As of June 30, 2024

Liabilities
Current liabilities
Accounts payable - trade

56

43

1,339
569

1,689
725

Accounts payable - other
Income taxes payable

909
73

824
104

Provision for bonuses
Contract liabilities

65
561

302
493

Short-term borrowings
Current portion of long-term borrowings

Other

561

729

4,136

4,911

2,855
4

3,059
–

Provision for retirement benefits for directors (and otherofficers)

37

40

Asset retirement obligations
Other

222
27

222
35

Total non-current liabilities

3,148

3,357

7,285

8,269

Shareholders' equity
Share capital

455

455

Capital surplus
Retained earnings

532
1,339

532
1,242

Treasury shares(84)(84)2,242

2,144

Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities

Total liabilities
Net assets

Total shareholders' equity
Total net assets
Total liabilities and net assets

42,242

2,144

9,527

10,414

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

June 30, 2023

June 30, 2024

Net sales
Cost of sales

7,156
6,061

7,980
6,818

Gross profit

1,094

1,161

Selling, general and administrative expenses

1,023

1,16271(0)Interest income
Subsidy income

22025

Other

2

1

Total non-operating income

259Interest expenses
Compensation expenses

10–

12
1

Other

2

1

Total non-operating expenses

Operating profit (loss)
Non-operating income

Non-operating expenses

1215

Ordinary profit (loss)

83(6)Extraordinary income
Subsidy income

290

27

290

27

Total extraordinary income
Extraordinary losses
Loss on tax purpose reduction entry of non-current assets

290

27

Total extraordinary losses

29027Profit (loss) before income taxes

83(6)Income taxes - current
Income taxes - deferred

65(63)

98(48)

Total income taxes

149

Profit (loss)

81(56)

Profit (loss) attributable to owners of parent

81(56)

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended

Six months ended

June 30, 2023

June 30, 2024

Profit (loss)

81

(56)

Comprehensive income

81(56)

81(56)

Comprehensive income attributable toComprehensive income attributable to owners of parent

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes

Six months ended

Six months ended

June 30, 2023

June 30, 2024
83

(6)

Depreciation
Amortization of goodwill

116
84

135
100

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(1)
232

3
233

Increase (decrease) in provision for retirement benefits for
directors (and other officers)(3)

2Interest and dividend income
Interest expenses

(2)
10(2)
12

Subsidy income
Loss on tax purpose reduction entry of non-current assets(290)
290(27)27

Decrease (increase) in trade receivables and contract assets
Increase (decrease) in trade payables

14(18)(71)(13)

Increase (decrease) in accounts payable - other
Increase (decrease) in contract liabilities

(131)
(137)

(80)
(101)

Other, net

(24)

243

Subtotal

223

455Interest and dividends received

00

Interest paid
Income taxes paid

(10)
(25)

(12)
(71)

Net cash provided by (used in) operating activities

187

371

Cash flows from investing activities
Payments into time deposits

(1)

(0)

Purchase of property, plant and equipment
Purchase of intangible assets

(225)
(34)

(208)
(17)

Purchase of shares of subsidiaries resulting in change in scopeof consolidation

(172)

(468)

Payments for acquisition of businesses
Subsidies received

–
290

(204)
27

Proceeds from collection of long-term loans receivable
Payments of leasehold and guarantee deposits

22
(34)

22
(16)

Proceeds from refund of leasehold and guarantee deposits

2

20

(152)

(845)

(1)
–

339
600

(399)
(2)

(330)
(1)

0–

Dividends paid

(41)

(40)

Net cash provided by (used in) financing activities

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights

(443)

566

Net increase (decrease) in cash and cash equivalents

(408)

92

Cash and cash equivalents at beginning of period

2,113

1,862

Cash and cash equivalents at end of period

1,704

1,955

7