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 14, 2023
Company name:teno. Holdings Company Limited

Stock exchange listing: Tokyo, Fukuoka
Stock code:
7037
URL
Representative:
Inquiries:

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

President & CEO
Hiroko Ikeuchi
Director, GM of Administrative Headquarter Motoshi Okada

TEL

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 23, 2023
March 23, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

March 24, 2023
Yes

Holding of financial results meeting:Yes

092 (263) 3550

(for institutional investors and 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
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended December 31, 2022
12,1285.9154(67.0)
156 (65.6)(27)–
Year ended December 31, 2021
11,454
6.3
467(23.6)455 (23.3)
237(30.1)

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–(1.2)
1.9
1.3
50.35
10.66.2
4.1

Diluted earnings pershareYen(5.99)
50.71

Year ended December 31, 2022
Year ended December 31, 2021
(2) Consolidated financial position

Total assets
As of December 31, 2022
As of December 31, 2021

Net assets

Equity ratio

Millions of yen
9,323
7,294

Millions of yen
2,180
2,331

Cash flows fromoperating activities
Millions of yen
297
292

Cash flows frominvesting activities
Millions of yen
(967)
(251)

Net assets per share%
23.4
32.0

Yen
478.86497.82(3) Consolidated cash flows

Year ended December 31, 2022
Year ended December 31, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
1,037
2,113(161)1,745

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2021
Year ended December 31, 2022
Year ending December 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYenYenYenYenYen

Millions of yen%%––0.00
0.00

––

8.40
9.00

8.40
9.00

3940

16.6
–

1.8
1.8

–

0.00

–

9.00

9.00

1

30.7

3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)
Net sales
Full year

Millions of yen
15,170Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
25.1
320 107.5
285
82.0
137
–29.36

4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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:
Changes in accounting policies due to other reasons:

Yes
NoChanges in accounting estimates:
Restatement of prior period financial statements:

NoNo(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

4,685,700 shares As of December 31, 2021

4,683,300 shares

132,724 shares As of December 31, 2021

224 shares

Number of treasury shares at the end of the period
As of December 31, 2022
Average number of shares during the period
Year ended December 31, 2022

4,585,726 shares Year ended December 31, 2021

2

4,676,356 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of December 31, 2021

As of December 31, 2022

AssetsCurrent assetsCash and deposits
Accounts receivable - trade
Accounts receivable - trade and contract assets
Other
Allowance for doubtful accounts
Total current assets

1,793
980

2,174–

–
441

1,147
671

(0)

(3)

3,215

3,989

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

2,392

2,679

Accumulated depreciation(874)(1,121)

Buildings and structures, net

1,518

1,557

1548

Leased assets
Accumulated depreciation

(13)

(42)

Leased assets, net

26Construction in progress

108105

Other
Accumulated depreciation

359(314)454(395)

45

58

1,675

1,728

Goodwill
Other

649
169

1,636
229

Total intangible assets

819

1,865

Investments and other assets
Investment securities

1010

Long-term loans receivable
Long-term prepaid expenses

777
323

737
328

Deferred tax assets
Leasehold and guarantee deposits

110
362

165
497

Other
Allowance for doubtful accounts

5(5)

1(1)

Total investments and other assets

1,584

1,739

4,079

5,333

7,294

9,323

Other, net
Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets3

(Millions of yen)
As of December 31, 2021

As of December 31, 2022

Liabilities
Current liabilities
Accounts payable - trade2260

Short-term borrowings
Current portion of long-term borrowings

550
444

1,140
652

Accounts payable - other
Income taxes payable

718
87

801
26

Provision for bonuses
Contract liabilities

62–

64
624

Other

543

370

2,427

3,739

2,390
13

3,137
8

Provision for retirement benefits for directors (and otherofficers)

23

26

Asset retirement obligations
Other92
15

209
20

Total non-current liabilities

2,535

3,402

4,962

7,142Shareholders' equity
Share capital

453453

Capital surplus
Retained earnings

531
1,347

531
1,280(0)

(84)

2,331

2,180

2,331

2,180

7,294

9,323

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

Total liabilities
Net assets

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

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
December 31, 2021

Fiscal year endedDecember 31, 2022

Net sales

11,454

12,128

Cost of sales

9,652

10,384Gross profit

1,801

1,744

Selling, general and administrative expenses

1,334

1,589467

154

Operating profit
Non-operating income
Interest income

55

Subsidy income
Other

22
1

25
5

Total non-operating income

29

35

16

16

Payments for employment of persons with disabilities
subsidies return loss

4
16

4
4

Commission for purchase of treasury shares
Other–
44
3

Total non-operating expenses

4232

455

156

Subsidy income
Other711
4248–

Total extraordinary income

716248Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment losses

58

9

Loss on tax purpose reduction entry of non-current assets
Other711
4247–

Total extraordinary losses

774

257

Profit before income taxes

397

146

Income taxes - current
Income taxes - deferred200(40)129
44

Total income taxes

160

174

Profit (loss)

237

(27)

Profit (loss) attributable to owners of parent

237

(27)

5Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended

Fiscal year ended

December 31, 2021

December 31, 2022

Profit (loss)

237

(27)

Comprehensive income237(27)237(27)

Comprehensive income attributable toComprehensive income attributable to owners of parent

6

Consolidated statements of changes in equity
Fiscal year ended December 31, 2021
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity

Total net assets

451

528

1,148(0)

2,127

2,127

2

244

Share capital
Balance at beginning of period
Changes during period
Issuance of new shares - exerciseof share acquisition rights
Profit (loss) attributable toowners of parent

237

237237

Dividends of surplus

(38)

(38)

(38)

Purchase of treasury shares

(0)

(0)

(0)

22198

(0)

203

203

453

531

1,347(0)

2,331

2,331

Total changes during period
Balance at end of period

Fiscal year ended December 31, 2022
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity

Total net assets

453

531

1,347

(0)

2,331

2,331

0000(27)

(27)

(39)

(39)

(84)

(84)

Share capital
Balance at beginning of period
Changes during period
Issuance of new shares - exerciseof share acquisition rights
Profit (loss) attributable toowners of parent(27)

Dividends of surplus(39)

Purchase of treasury shares
Total changes during period
Balance at end of period

(84)
00

(66)

(84)

(151)

(151)

453

531

1,280

(84)

2,180

2,180

7

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

December 31, 2021

December 31, 2022
397

146

Depreciation
Impairment losses

20458207
9Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts60
5

129(3)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits for

14(4)

6

3

directors (and other officers)
Interest income

(5)

(5)

Interest expenses
Subsidy income

16(711)16(248)Loss on tax purpose reduction entry of non-current assets
Decrease (increase) in trade receivables

711(24)247(75)

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other(1)(33)

1236Other, net

(78)

65

Subtotal

618

539

Interest received

00

Interest paid
Income taxes paid

(16)
(309)

(16)
(225)

Net cash provided by (used in) operating activities

292

297

Cash flows from investing activities
Payments into time deposits

(18)

(13)

Purchase of securities
Purchase of property, plant and equipment

(10)
(870)

–
(363)

Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change in scope

(96)

(79)

of consolidation
Subsidies received–(788)

711

248

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

45(20)

45(23)

Proceeds from refund of leasehold and guarantee deposits

67(251)(967)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

250
70

550
1,390

Repayments of long-term borrowings
Proceeds from issuance of shares resulting from exercise of(444)(771)

Net cash provided by (used in) investing activities
Cash flows from financing activities

share acquisition rights
Purchase of treasury shares

40(0)

(88)

Dividends paid
Repayments of lease liabilities

(38)
(3)

(39)(2)

Net cash provided by (used in) financing activities

(161)

1,037

Net increase (decrease) in cash and cash equivalents

(119)

367

Cash and cash equivalents at beginning of period

1,865

1,745

Cash and cash equivalents at end of period

1,745

2,113

8