Quarterly Report(58th Term 1st Quarter)(Started October 1, 2023;
ended December 31, 2023)

Kabushiki Kaisha TKC
1758 Tsurutamachi, Utsunomiya-shi, Tochigi- 1 -Table of Contents
Page[Front Cover]Section 1 [Information on the Company] ........................................................................ 4
Part 1 [Overview of the Company] ........................................................................... 4
1 [Key Financial Data] .................................................................................. 4
2 [Description of Business] ............................................................................... 4
Part 2 [Business Overview] ................................................................................. 5
1 [Risk Factors] ........................................................................................ 5
2 [Management Analysis of Consolidated Financial Conditions, Operating Results, and Cash Flows] ..................... 5
3 [Material Agreements, etc.] ............................................................................ 13
Part 3 [Information on the Company] ........................................................................ 14
1 [Information on the Company’s Stock] ................................................................... 14(1) [Total number of shares, etc.] ....................................................................... 14(2) [Share subscription rights, etc.] ...................................................................... 14(3) [Exercise of bonds with share subscription rights containing a clause for exercise price adjustment, etc.] ............. 14(4) [Changes in total number of issued shares, capital stock, etc.] .............................................. 14(5) [Major shareholders] .............................................................................. 14(6) [Status of voting rights] ............................................................................ 15
2 [Officers] .......................................................................................... 15Part 4 [Financial Information] .............................................................................. 16
1 [Quarterly Consolidated Financial Statements] ............................................................. 17(1) [Quarterly consolidated balance sheets] ................................................................ 17(2) [Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income] ....... 19[Quarterly consolidated statements of income] ........................................................... 19[Quarterly consolidated statements of comprehensive income]............................................... 20
2 [Other] ............................................................................................ 25
Section 2 [Information on Guarantors, etc., of the Company] ........................................................ 26[Quarterly Review Report] [Confirmation Letter]- 2 -[Front Cover][Document filed]

Quarterly Report[Applicable law]

Article 24-4-7, Paragraph 1, of the Financial Instruments and Exchange Act of Japan[Filed with]

Director of Kanto Local Finance Bureau[Date filed]February 13, 2024

[Quarterly accounting period]

58th Term 1st Quarter (from October 1, 2023 to December 31, 2023)[Company name]

Kabushiki Kaisha TKC[Company name in English]

TKC Corporation[Title and name of representative]

Masanori Iizuka, Representative Director, President and Executive Officer[Address of head office]1758 Tsurutamachi, Utsunomiya-shi, Tochigi[Phone number]

028-648-2111[Contact person]

Kiyotsugu Nakanishi, Director, Managing Executive Officer, Chief of the Business
Administration Headquarters[Contact address]

2-1 Agebacho, Shinjuku-ku, Tokyo[Phone number]

03-3235-5511[Contact person]

Kiyotsugu Nakanishi, Director, Managing Executive Officer, Chief of the Business
Administration Headquarters[Place available for public inspection]

TKC Corporation, Tokyo Head Office(2-1 Agebacho, Shinjuku-ku, Tokyo)
Tokyo Stock Exchange, Inc.
(2-1 Nihonbashikabutocho, Chuo-ku, Tokyo)- 3 -Section 1 [Information on the Company]
Part 1 [Overview of the Company]
1 [Key Financial Data]
Term & Period

57th Term
1st Quarter consolidated
cumulative period

58th Term
1st Quarter consolidated
cumulative period

57th Term

Accounting period

Started October 1,
2022
Ended December 31,
2022

Started October 1,
2023
Ended December 31,
2023

Started October 1,
2022
Ended September 30,
2023(millions ofyen)

Net sales
Ordinary income(millions ofyen)

16,90817,124

71,915

4,175

3,933

14,772

2,890

2,710

10,826

Quarterly (current) net income(millions of

attributable to owners of parent

yen)

Quarterly comprehensive income
or comprehensive income(millions of
yen)

3,831

2,478

13,210Net assets(millions ofyen)

88,941

95,11595,308105,006

110,949

116,356

(yen)

55.12

51.97

206.54

Quarterly (current) diluted net
income per share

(yen)

－

－

－

Equity ratio

(%)

84.7

85.7

81.9

Total assets
Quarterly (current) net income per
share(millions ofyen)(Notes) 1. Changes in key financial data, etc. of the Company are not stated here, as they are included in the Company’s quarterly
consolidated financial statements.
2. The Company maintains a Board Incentive Plan (BIP) Trust and records the stocks held by said Trust as treasury stocks.
Accordingly, for the purpose of calculating the quarterly (current) net income per share, they are included in the treasury
stocks to be deducted in calculating the average number of shares outstanding.
3. The quarterly (current) diluted net income per share is not stated as there were no dilutive shares.

2 [Description of Business]
There are no significant changes in the description of the business operated by TKC Group (TKC Corporation and its affiliatedcompanies) for the current 1st Quarter consolidated cumulative period. There are no changes in the major affiliated companies.

- 4 -Part 2 [Business Overview]
1 [Risk Factors]
There are no risks pertaining to new business operations, etc., that arose during the current 1st Quarter consolidated cumulative
period. There are no significant changes in risks regarding business operations, etc., described in the annual securities report of theprevious fiscal year.

2 [Management Analysis of Consolidated Financial Conditions, Operating Results, and Cash Flows]
I. Operating Results
In the current 1st Quarter consolidated cumulative period (hereinafter, “current 1st Quarter”), the Japanese economy continued togradually recover against the background of an improvement in corporate performance due to the recovery of consumption and theprogress of price pass-through, and other factors. On the other hand, the increase in bankruptcies and increasingly difficult financing
for small- and medium-sized enterprises (SMEs) indicate that the future of the economy remains uncertain. Furthermore, social
systems also changed greatly, including implementation of the consumption tax invoicing system and commencement of the operationof e-invoices as a consequence of the enforcement of the amended Consumption Tax Act, among other changes.
The Group has continued to develop systems and provide services that promptly cater to such changes in the social environment while
carrying out business operations that contribute to our customers as well as local communities.
The Accounting Firm Business Division supports certified public tax accountants and certified public accountants that are customers
of TKC (hereinafter, “TKC Members”) in providing their clients with accounting, taxation, and financing as escort supporters of
SMEs. We also support SMEs in achieving profitable results and proper filing by providing and supporting the implementation ofcloud-based accounting systems.
The Local Governments Business Division is working on systems development to ensure that customer municipalities are able tosmoothly carry out system transition by the deadline for conformity with the standard specifications (March 31, 2026), in accordancewith the Basic Policy for Standardizing Information Systems in Local Governments decided by the Cabinet on September 8, 2023.
As a result of these activities, the operating results for the current 1st Quarter of the consolidated Group comprising TKC Corporationand its six consolidated subsidiaries recorded net sales of 17,124 million yen (increased 1.3% year on year), operating income of
3,739 million yen (decreased 6.8% year on year), ordinary income of 3,933 million yen (decreased 5.8% year on year), and quarterly
net income attributable to owners of parent of 2,710 million yen (decreased 6.2% year on year).
Net sales for the current 1st Quarter by business division are as shown below.
1. Results of operation for the 1st Quarter(1) Net sales of the Accounting Firm Business Division
Net sales of the Accounting Firm Business Division were 11,601 million yen (increased 3.2% year on year); operating income was
3,008 million yen (increased 4.9% year on year). Breakdown of key sales is as follows:(i) Sales from computer services increased by 3.3% year on year. This was attributable to the increase in the amount of data usedin data centers caused by the growth in number of implementations of the FX Cloud Series in the context of the digitaltransformation (DX) of accounting work in clients, and the increasing adoption of the Office Management System (OMS Cloud)for Tax Accounting Firms and the OMS Connect which allows them to work remotely using the OMS from home or outside
their offices.
(ii) Software sales increased by 3.9% year on year. This was attributable to increase in clients who used the FX Cloud Series
equipped with “qualified invoice issuer check functions” and “documented evidence storage functions” for the first time tocomply with the consumption tax invoicing system and the Revised Act on Book and Record Keeping through Electronic
Methods.
(iii) Sales from consulting services increased by 4.0% year on year. This was due to an increase in the number of implementationsof the FX4 Cloud launch support services for medium-sized enterprises.
(iv) Hardware sales increased by 6.0% year on year. This was mainly due to the costs for the purchase of hardware now being
covered by funding under the Subsidy Program for Introducing IT to Businesses for Productivity Improvement in Services, etc.
(“Subsidies for Introduction of IT”) of the Small and Medium Enterprise Agency, new purchases of computers and scanners
increasing as a consequence of the expiration on December 31, 2023 of safe harbor rules concerning electronic transaction data
under the Revised Act on Book and Record Keeping through Electronic Methods, and the rise in the sales unit price of IT
devices.
(v) Sales from supplies decreased by 7.0% year on year. This was due to the orders expected in the current 1st Quarter occurring inthe 2nd Quarter instead.
(vi) Improvement in operating income year-on-year was a result of sales of computer services and software with higher profit- 5 -margins growing steadily.
(2) Net sales of the Local Governments Business Division
Net sales of the Local Governments Business Division were 4,861 million yen (decreased 1.9% year-on-year); operating income
was 912 million yen (decreased 24.6% year-on-year). Breakdown of key sales is as follows:(i) Sales from computer services decreased by 0.3% year on year. This was due to the fact that in the current fiscal year there were
no printing operations such as vouchers, etc., for COVID-19 vaccine booster shots which we received orders for in the previous
fiscal year, which more than offset the fact that the service fees from the support services for the digitalization of administrative
services such as the TASK Cloud Smart Application System trended steadily due to the increase in the number of customer
organizations.
(ii) Software sales decreased by 18.3% year-on-year. This was due to the fact that in the current fiscal year there were no temporary
system upgrading operations arising from legal amendments which we received orders for in the previous fiscal year, such as
the one-stop service for completing moving in/out procedures.
(iii) Sales from consulting services increased by 83.9% year on year. This was due to the increase in implementation support
operations as a consequence of expanded local taxes electronic filing procedures, and in system implementation support
operations such as newly-ordered support services for the digitalization of administrative services, etc.
(iv) Hardware sales increased by 2.2% year on year. This was due to an increase in the replacement of hardware as a consequenceof system renewals in customer organizations which use mission-critical systems.
(v) Note that operating income decreased compared to the previous fiscal year due to the fact that upgrading operations for systems
with higher profit margins decreased in the current fiscal year, among other factors.
(3) Net sales of the Printing Business Division (Subsidiary: TLP Corporation)
Net sales of the Printing Business Division were 662 million yen (decreased 7.4% year-on-year); operating loss was 180 million
yen (compared to an operating loss of 62 million yen in the 1st Quarter of the previous fiscal year). Breakdown of key sales is asfollows:(i) Sales of products related to the data printing service (hereinafter, “DPS”) decreased by 21.1% year on year. This was due to thefact that in the current fiscal year there were no printing operations for COVID-19 vaccine vouchers or operations related to the
support benefits to address rising prices of electricity, gas and food, etc. which we received orders for from the customer
municipalities in the previous fiscal year.
(ii) Business form-related sales decreased by 9.8% year-on-year. This was due to the fact that orders for slip printing operations
decreased as a consequence of the progress of digitalization in client companies.
(iii) Sales related to the printing of commercial-use creative materials (catalogs, books, etc.) decreased by 21.6% year on year. Thiswas due to the fact that there were no manuals explaining the consumption tax invoicing system or printing operations related
to client companies’ anniversary activities which we had received orders for last year.

- 6 -2. Important Matters with respect to the Company as a Whole(1) Commencement of the sending of e-invoices using the Peppol network
In response to the fact that under the amended Consumption Tax Act enforced on October 1, 2023 the sending and receiving of
invoices using electromagnetic methods became permitted, TKC Corporation switched to e-invoices, the sending and receiving of
invoices using the Peppol network, in November the same year. By switching our invoices to e-invoices, we have been succeedingin cutting the man-hours pertaining to the issuance of invoices in-house by 99.8%. Our policy is to accumulate know-how in thedigitalization of accounting operations and actively provide information to the customers of TKC Systems by applying the latest
technology to the operations in our company.
* TKC was certified as the first Peppol service provider in Japan on August 19, 2022 by the Digital Agency, the Japan Peppol
authority, and OpenPeppol, the association responsible for the management of Peppol (headquarters: Belgium).
(2) TKC Customer Support Service Co., Ltd. (TCSS) rated “3 Star” for three consecutive years in HDI Benchmarking
TCSS is a fully owned subsidiary of the Company that specializes in offering call center services. On October 18, 2023, TCSS wasawarded the highest “3 Star” rating by HDI-Japan in its quality ranking benchmark for the phone support services provided.
This marks the third consecutive year that TCSS has received the highest rating.
3. Business activities and operating results of the Accounting Firm Business Division
The Accounting Firm Business Division is working on the development and provision of products and services in close
collaboration with the TKCNF in order to support the sustainable development of accounting firms and SMEs, which are the clientsof the accounting firms.
Furthermore, it is providing a full range of cloud services to large-scale enterprises such as listed companies, etc. and law firms,
universities, law schools, etc.
(1) Activities to achieve “positive balance” and “proper filing”(i) Promotion of self-accounting by the TKC method (promotion of the FX Series)
SMEs are currently facing a challenging business environment due to inflation and soaring fuel costs and repayment of thevirtually interest-free/unsecured loans (“zero/zero loans”) extended during the COVID-19 pandemic, and other factors. For thatreason, we provided support so that management can quickly implement strategic decision-making through the utilization offunctions incorporated in the FX Series Financial Accounting System for Enterprises for the management strategy level (the 365
Days Floating Income Statement, budget entry, management by division, financing results spreadsheet, and annual forecast
management). Moreover, in order for management to utilize these features effectively, it is necessary for them to enter accounting
transaction data in a timely and accurate manner and establish a system for monthly settlements. Therefore, the Company has
also provided support for the utilization of the functions of the daily-task-level, including a feature for receiving bank credit data,
through which bank deposit transaction data can be received via online banking and journal entries generated automatically, as
well as a feature for the integration of salary journals with the strategic salary information system (PX2).
In addition to the above, it is supporting preparation for the consumption tax invoicing system which commenced from October
2023. The FX Series developed and provided by TKC Corporation is equipped with the following three features, and is capableof executing accounting treatment which is fully compliant with the amended Consumption Tax Act.
<Three features>- Whether a supplier is a qualified invoice issuer among business contacts is automatically identified by the name.
(There is no need to enter a 13-digit registration number each time a journal entry is input.)- The applicability of transitional measures or special provisions is automatically checked, and a list of journal entries that should
be corrected is displayed.
This allows the user to identify the entries to which transitional measures apply, along with entries to which transitional measures
have been applied by mistake.
- All forms are managed in one process, from accounting records to a consumption tax return.
Full conformance to the principle-based treatment stated in Supplementary Provisions 22 (1) (i) and 23 (1) (i) of the 2018 order
for amendment.
Moreover, the FX Series is standardly equipped with functions for sending and receiving e-invoices compliant with the standard
specifications for e-invoices in Japan (JP PINT) using the Peppol network.
In recognition of this, more than 310,000 companies were using the FX series as of December 31, 2023. Through theimplementation of the FX series, the Company will continue working to support SMEs in establishing a system for monthly
settlements and achieving positive balance and proper filing.
(ii) Support for the preparation of highly reliable financial statements based on timely and accurate bookkeeping
The biggest feature of the financial accounting system provided by TKC Corporation is that it is predicated on the field audits
and monthly settlements which the TKC member firms implement for their clients every month, and prohibits retroactive- 7 -revisions and processing of insertions or deletions in the transaction data after implementation of the field audits. It utilizes thisfeature to issue free of charge the Certificate of Bookkeeping Timeliness which serves as materials used by financial institutions
and others to objectively determine the operational levels of TKC member firms.
This service was developed with the aim of improving the reliability of financial statements and tax returns prepared by TKC
Members and facilitating smooth financing for the clients of TKC Members. TKC Corporation proves, as a third party, that TKC
Members have visited clients on a monthly basis to provide guidance on accurate bookkeeping (monthly Field Audits), and that
all work processes from monthly settlements to the final settlement of accounts and electronic tax filings have been completed
by a one-stop, full line process in a timely manner. In this way the Certificate of Bookkeeping Timeliness enables “the frequency
of audits” to be determined at a glance, and we believe that it will be even more important going forward.
(iii) Promotion of TKC Monitoring Information Service
TKC Monitoring Information Service is a free cloud-based service that allows TKC Members, upon the request of the
management of their clients, to disclose to financial institutions information such as monthly trial balance sheets, financial
statements, and tax returns prepared by TKC member firms after monthly field audits and monthly settlements.
The Company communicates to financial institutions that the reliability of financial statements prepared by SMEs can be verified
using the following three sets of documents sent by the TKC Monitoring Information Service:1) Supporting documents submitted by TKC Members as stipulated under Article 33-2 of the Certified Public Tax Accountants
Act of Japan;
2) Certificate of Bookkeeping Timeliness, with which TKC Corporation certifies the timeliness in the preparation of accounting
books as required under Article 432 of the Companies Act of Japan and the correlation between financial statements and tax
returns for the past three years; and
3) The Chusho Kaikei Yoryo (Guidelines for SME Accounting) checklist developed by the Japan Federation of Certified Public
Tax Accountants’ Associations and the Japan Federation of Credit Guarantee Corporations.
As a result of these activities, TKC Monitoring Information Service has been adopted by 487 financial institutions as of December
31, 2023, surpassing 330,000 instances of use.
As a tool which can confirm the three requirements presented in the Guidelines on Management Guarantees (distinguishing andseparating relationships with corporations and individuals, strengthening of the financial foundation, and ensuring thetransparency of management through accurate ascertainment of the financial position and timely and appropriate information
disclosure), the TKC Monitoring Information Service is highly evaluated by financial institutions and credit guarantee
corporations offering management support to SMEs.
(iv) Fostering of good-standing companies through collaboration with TKCNF
The Accounting Firm Business Division is carrying out business operations aimed at the realization of “positive balance andproper filing” through close collaboration with the TKCNF, which is organized by 11,400 TKC Members (as of December 31,2023).
The TKCNF has set the activity policy for the three years from 2022 as follows.
“TKC accountants challenging the future—push through field auditing and support companies in achieving positive balance andproper filing”
1) Massively expand superior electronic books—Promotion of self-accounting by the TKC methods
2) Become guardians of tax justice—Promotion of Shomen-tempu (attachment of tax audit reports) by the TKC methods3) Support the achievement of positive balance and foster good-standing companies—Promotion of field auditing and managerial
advisory services
To support the activities of TKCNF and the achievement of their targets, the Company will engage in sales activities focused on
the promotion of self-accounting by the TKC methods.
Note that TKCNF is issuing the TKC Management Indicators (BAST), which contains the financial statement data of more than
250,000 companies and companies that satisfy the following criteria are defined as “BAST good-standing companies.”- Self-accounting by the TKC methods used to implement monthly settlements- Practice of shomen-tempu (attachment of tax audit reports) in accordance with Article 33-2, paragraph (1) of the Certified
Public Tax Accountants Act of Japan- Compliance with the Chusho Kaikei Yoryo (Guidelines for SME Accounting) (including corporate accounting standards and
SMEs accounting principles)- Increase of marginal income for two consecutive fiscal years- Equity ratio of 30% or greater- Positive net income before taxes
TKC Corporation is supporting the fostering of good-standing companies by TKC Members.

- 8 -(v) Soliciting new members (promoting membership of TKCNF)
TKCNF has set a goal of having at least 1,000 firms join the federation as new TKC Members over the three-year period from2022 to 2024. To achieve this goal, the Company has strengthened its efforts in collaboration with the TKCNF New Members
Service Committee. At the same time, the Company has strengthened its support system to facilitate effective utilization of TKC
Systems, including the Office Management System (OMS Cloud) for Tax Accounting Firms, for accounting firms that recently
joined TKCNF.
(2) Expansion into large-scale enterprise market
The Company contributes to the compliance and rationalization of tax and accounting operations at large enterprises through theuse of TKC systems, especially at listed companies, and is actively working to solicit these companies and their affiliates to becomeclients of TKC Members.
(i) Response to e-invoices
In August 2023 TKC was installed as representative managing corporation of the E-Invoice Promotion Association (EIPA), andtogether with approximately 200 association member companies, primarily system vendors, we are working on activities todisseminate e-invoices.
In the Back Office Trends Seminar (Osaka) held in November 2023, as the representative managing corporation of the EIPA,TKC Corporation gave a lecture together with the Osaka Regional Taxation Bureau, Taxation Department No. 2, Consumption
Tax Section about the utilization of e-invoices. Moreover, in December we exhibited as the EIPA in the Certified Public Tax
Accountants Information Forum 2023 hosted by the Tokyo Certified Public Tax Accountants’ Association, and used our Invoice
Manager to carry out a system demonstration of sending and receiving e-invoices among different system vendors.
In addition, from January 2024, electronic retention of electronic transaction data was mandated in the Revised Act on Book andRecord Keeping through Electronic Methods. Due to that, the need for electronic retention of electronic transaction data grew,
and in the current 1st Quarter the Invoice Manager gained orders from 240 companies, an all-time high.
As a result of these kinds of activities, Invoice Manager has been implemented in 910 medium- and large-sized companies as ofDecember 31, 2023. The Company will continue to promote the use of e-invoices going forward.
(ii) Expansion of market share among large-scale enterprises and support for expanding the client base of TKC Members
The consolidated taxation system has been reformed for the fiscal year starting after April 1, 2022, and the new Group Tax
Sharing System has been commenced. The Group Tax Shared Filing System (e-TAX Group Sharing) provided by TKC
Corporation has been highly praised by the market, and is being used in many companies which have adopted the group tax
sharing system.
Note that approximately 40% of the 20,800 some companies with a capital of 100 million yen or greater now use our ASP1000R
electronic tax filing system for corporations, the eConsoliTax consolidated tax payment system, and the Group Tax Shared Filing
System (e-TAX Group Sharing) as of December 31, 2023.
At the same time, the number of corporate groups using the TKC Consolidated Group Solution totaled approximately 5,550
corporate groups as of December 31, 2023. Currently, its market share in the listed companies of Japan has reached 43%, and 93
companies out of the 100 companies with the top net sales among the listed companies of Japan (93%) are using the systems of
TKC.
(3) Expansion of markets for legal information database services
TKC Corporation is widely providing legal information services to the legal community, particularly accounting firms, and to theacademic market, corporate legal departments, etc.
(i) Expanded rollout of the records in the TKC Law Library
TKC Corporation provides the TKC Law Library, a legal information database which boasts the industry’s largest archive (morethan 339,000 judicial precedents). Centered on judicial precedent information (LEX/DB), it comprehensively covers laws,
documents, law journals, specialized books on law, and related additional information, and we are constantly enhancing thecontent in the Library. Since November 2022, we have been periodically sending out to our customers email magazines
containing the latest information including articles and we have established a system that offers direct access to the service. As
a result of these activities, there has been a transition from paper-based research that makes use of reference rooms and libraries
to online research, which has led to a steady increase in the number of customers adopting our service. For the period underreview, use progressed in TKC member firms, universities, law schools, government offices, law firms, patent offices, corporate
legal departments, and overseas research institutions, and 59,000 IDs in over 26,000 institutions were using the Library as ofDecember 31, 2023.
(ii) The academic market and learning support for students preparing for the bar exam
Many universities and law schools are promoting the digital transformation of their learning environment to allow for online useof materials and research. The features of our TKC Educational and Research Support System and TKC Law Library are thatthey can be used online anytime, anywhere, and contain a diverse variety of content that surpasses that of other companies. They

- 9 -are also equipped with various features such as report submission, online exercises, tests, and other components that supportclasses and self-study. More than 140 universities have signed a contract in FY2023 to adopt our TKC Educational and Research
Support System and TKC Law Library, which are rated highly by faculty members and students.
Furthermore, for law school students, graduates, individuals who have passed the preliminary exam, who aim to sit for the bar
exam, we support their preparation for the bar exam by providing a learning environment equipped with a system that contains
practice questions for the bar exam and by conducting the TKC Standardized Nationwide Mock Exam. In 2023, there were 4,165
bar exam applicants and the TKC Standardized Nationwide Mock Exam had 2,598 examinees (62.4%), which was a record high.
We had more than five times the numbers of mock test takers offered by our competitors for six consecutive years, and we offer
the industry’s top-ranked standardized mock test. Going forward, we will advance preparations to gradually offer digital answer
input, digital correction, re-practice functions, etc. in the system for the transition to the CBT exam in 2026 announced by the
Ministry of Justice, and will aim to further expand the number of examinees.
4. Business activities and operating results of the Local Governments Business Division
The Local Governments Business Division offers specialized information services in order to help promote the welfare of residents
by improving administrative efficiency. The TKC Government Cloud Service provided by TKC Corporation to municipalities has
been adopted by more than 1,140 municipalities (prefectures, cities, wards, towns, villages, etc.) as of December 31, 2023.
(1) Meeting the needs of the standardization of local government information systems
The Basic Policy for Standardizing Information Systems in Local Governments (hereinafter, the “Basic Policy”) was formulatedin October 2022 based on the Act on Standardization of Local Government Information Systems (Act No. 40 of 2021) and revisedin September 2023. Due to this, it is now mandatory for municipalities to use mission-critical operations systems which conformwith the standardization criteria (hereinafter, “standardization-compliant systems”). Note that there is a duty to strive to use theGovernment Cloud with standardization-compliant systems.
TASK Cloud Service, the mission-critical operations system that we currently provide, is a single-version package system operated
at our data centers that is designed to allow shared usage by multiple institutions. Service fees are charged in the form of a
subscription fee, which also includes one regular upgrade per year. Moreover, through provision of the TASK Outsourcing Service,
we provide integrated support for massive batch printing of forms such as tax papers and entry tickets for elections. In recognitionof this, the mission-critical system-related services of TKC Corporation have been adopted by approximately 170 local
municipalities as of December 31, 2023.
In order to support the standardization of the mission-critical operations systems, TKC Corporation is developing standardizationcompliant systems and implementing a full range of support activities for our customer municipalities to accomplish the transition
within the deadline.
(2) Support for digitalization of administrative services(i) Support for digitalization and online provision of administrative procedures
The Company provides support services for the digitalization of administrative services to achieve digital counter services withthe “3 No’s (no visiting, no waiting, and no writing).”
For the period under review, we have greatly enhanced the functionalities of the TASK Cloud Smart Application System, the
TASK Cloud Easy Counter Service System, and the TASK Cloud My Number Card Issuance Reservation and Management
System. As a result of this, the TASK Cloud Smart Application System has been adopted by at least 50 agencies, including
government ordinance-designated cities such as Osaka and Yokohama, while the TASK Cloud Easy Counter Service System andthe TASK Cloud My Number Card Issuance Reservation and Management System have been adopted by at least 100 and 170
agencies, respectively, as of December 31, 2023.
(ii) Support for digitalization of local tax administrations
As an authorized contractor of the Local Tax Agency, TKC Corporation provides cloud-based services for standard systems suchas the inspection system eLTAX (local tax portal system) offered by the Agency. We also develop and provide a Data Integration
Service as our proprietary feature to integrate these systems with the individual tax systems of various municipalities.
In promoting these services, we have jointly developed proposals with approximately 50 partner companies with which we haveongoing alliance partner agreements. As a result, our TASK Cloud Local Taxes Electronic Filing Support Service is currently
used by approximately 790 agencies, which account for more than 40% of all prefectures and local municipalities, as of December
31, 2023.
In the current fiscal year, we provided implementation support as a consequence of the expansion of local taxes electronic filingprocedures which was commenced in October 2023.
(iii) Support for the digitalization of internal administration
TKC Corporation provides the TASK Cloud Public Accounting System as well as its related systems in order to support thedigitalization of internal administration centered on the financial accounting (public accounting) system.

- 10 -

In the current fiscal year, we greatly strengthened features such as sustainable financial management through the visualizationof financial status, electronic payments and integration with electronic invoicing. As a result, the TASK Cloud Public Accounting
System is adopted by not less than 330 agencies as of December 31, 2023. Going forward, we will work to support e-invoices
for the further streamlining of the operations of our customers.
5. Business activities and operating results of the Printing Business Division
TLP Corporation (hereinafter, “TLP”), which is responsible for the Group’s Printing Business, operates with a primary focus on
the DPS business, business form printing, and the printing of commercial-use creative materials.
The DPS business received orders for notification operations related to the emergency support benefits to address rising prices, etc.
from the customer municipalities of the TASK Outsourcing Service and the customer municipalities of the TLP Printing Business
Division, and supported their administrative services. Meanwhile, with respect to private companies, it continued the proposal ofoutsourcing (BPO) with the objectives of rationalizing the creation of direct mails (hereinafter, “DMs”) and notification-related
operations of general administration, accounting, and personnel departments. In particular, in the creation of DMs, we are working
to increase the value offered to customers who use the Company’s services, including the measurement of DMs’ effects throughutilization of the QR code.
In the business form printing field, the use of business forms and slips is decreasing due to the increasing adoption of paperlessmethods, but even now there is demand for handwritten forms and specific forms, so we will engage in sales activities utilizing ourstrength of form printing.
In the commercial-use creative materials field (catalogs, books, etc.), we are continuing support to provide in a timely manner the
publications required by the client companies, for example, printing operations for the anniversary events of client companies,
revised editions of specialist books due to legal revisions, etc. Furthermore, the holding of face-to-face seminars and events isincreasing in number and demand for the creation of distributed materials is also growing. We are bringing in new demand byincreasing added value further; for example, we receive orders for the entire process from creation of the design to the printing.
Furthermore, TLP acquired the FSC® certification (CoC certification/FSC-C182216) on October 3, 2022. Against the backdrop of
an increasing number of environmentally conscious customers, we have steadily increased the use of FSC-certified paper. We havealso begun producing and selling paper files as an environmentally friendly alternative to clear files. We seek to cater to the needsof customers who are environmentally conscious through the development and production of these environmentally friendly
products.

- 11 -

II. Qualitative Information on Consolidated Financial Conditions
1. Assets
Total assets as of the end of the current 1st Quarter consolidated accounting period amounted to 110,949 million yen, a 5,406
million yen decrease from the 116,356 million yen as of the end of the previous consolidated fiscal year.
(1) Current assets
Current assets as of the end of the current 1st Quarter consolidated accounting period amounted to 38,944 million yen, a 4,229
million yen decrease from the 43,173 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a 3,012 million yen decrease in cash and deposits and a 1,090 million yen decrease in notes,
accounts receivable, and contract assets.
(2) Non-current assets
Non-current assets as of the end of the current 1st Quarter consolidated accounting period amounted to 72,004 million yen, a
1,177 million yen decrease compared to 73,182 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a decrease of 1,106 million yen in long-term deferred tax assets included in Other.
2. Liabilities
Total liabilities as of the end of the current 1st Quarter consolidated accounting period amounted to 15,834 million yen, a 5,213
million yen decrease compared to 21,047 million yen as of the end of the previous consolidated fiscal year.
(1) Current liabilities
Current liabilities as of the end of the current 1st Quarter consolidated accounting period amounted to 11,621 million yen, a5,176 million yen decrease compared to 16,797 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a 3,354 million yen decrease in provisions for bonuses and a 2,340 million yen decrease in income
taxes payable.
(2) Non-current liabilities
Non-current liabilities as of the end of the current 1st Quarter consolidated accounting period amounted to 4,213 million yen, a
36 million yen decrease compared to 4,249 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a decrease of 37 million yen in long-term lease obligations included in Other.
3. Net assets
Total net assets as of the end of the current 1st Quarter consolidated accounting period amounted to 95,115 million yen, a 193
million yen decrease compared to 95,308 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a decrease of 275 million yen in valuation difference on available-for-sale securities, which morethan offset an increase of 40 million yen in retained earnings.
Equity ratio as of the end of the current 1st Quarter consolidated accounting period was 85.7%, a 3.8 percentage point increase
from the ratio of 81.9% as of the end of the previous consolidated fiscal year.
III. Operational and Financial Challenges Facing TKC Group
There are no significant changes in the challenges faced by TKC Group during the current 1st Quarter consolidated cumulative period.
IV. Research and Development Activities
There were no research and development expenses spent by TKC Group during the current 1st Quarter consolidated cumulative
period.
There are no significant changes in the status of research and development activities under TKC Group during the current 1st Quarter
consolidated cumulative period.

- 12 -

3 [Material Agreements, etc.]
There has been no decision or conclusion of material agreements, etc., during the current 1st Quarter consolidated accounting
period.

- 13 -

Part 3 [Information on the Company]
1 [Information on the Company’s Stock](1) [Total number of shares, etc.](i) [Total number of shares]
Class

Total number of shares authorized to be issued (shares)

Common stock

120,000,000

Total

120,000,000(ii) [Issued shares]

Class

Number of shares issued asof the end of 1st Quarteraccounting period (shares)(December 31, 2023)

Common stock
Total

Number of shares issued asof the filing date (shares)(February 13, 2024)

53,166,466

53,166,466

53,166,466

Name of stock exchange on
which the Company is listed,or name of Authorized
Financial Instruments Firms
Association

Description

Tokyo Stock Exchange

Number of sharesconstituting a unit:

Prime Market

53,166,466

100 shares－－(2) [Share subscription rights, etc.](i) [Stock option scheme]
None to be disclosed.
(ii) [Other share subscription rights, etc.]
None to be disclosed.
(3) [Exercise of bonds with share subscription rights containing a clause for exercise price adjustment, etc.]
None to be disclosed.
(4) [Changes in total number of issued shares, capital stock, etc.]
Increase or
Increase or
Balance of
decrease in
decreaseintotal number
total number
capital stockDateof issuedof issued
shares(millions ofshares(shares)yen)(shares)
October 1, 2023 December 31, 2023－

53,166,466－

Balance ofcapital stock(millions of
yen)
5,700

Increase or
decrease incapital reserve(millions ofyen)－(5) [Major shareholders]
There is nothing applicable to be disclosed as the current quarter is the 1st Quarter accounting period.

- 14 -

Balance ofcapital reserve(millions of
yen)
5,409

(6) [Status of voting rights]
The status of voting rights as of the end of the current 1st Quarter accounting period indicated hereunder is based on theshareholders registry as of the most recent record date (September 30, 2023) because the content of the shareholders registry
cannot be verified and reflected.
(i) [Shares issued]
As of September 30, 2023
Classification

Number of shares (shares)

Number of voting rights(units)

－

－

－

－

－

－

－

－

－

813,700－－

Shares without voting right
Shares with restricted voting right (treasury
stock, etc.)
Shares with restricted voting right (others)

Description

Shares with full voting right (treasury stock,

Common

etc.)

stock

Shares with full voting right (others)

Commonstock

52,280,000

522,800－

Shares less than one share unit

Commonstock

72,766－－53,166,466

－

－

－

522,800－

Total number of shares issued
Total voting rights held by all shareholders(Note) Shares with full voting right (others) include 1,300 shares (13 units of voting rights) registered in the name of the Japan
Securities Depository Center, Inc., and 206,000 shares (2,060 units of voting rights) held by the BIP Trust.
(ii) [Treasury stock, etc.]

Name of shareholder

Kabushiki Kaisha
TKC

Address ofshareholder
1758 Tsurutamachi,
Utsunomiya-shi,

As of September 30, 2023
Percentage ofTotal shares held shares held to the(shares)
total number ofissued shares (%)

Number of shares
held under own
name (shares)

Number of shares
held under othernames (shares)

813,700－

813,700

1.53

813,700－

813,700

1.53

Tochigi
Total－(Note) In addition to the above, the 206,000 shares held by the BIP Trust are recorded as treasury stocks.

2 [Officers]
There has been no change in the officers during the current quarter cumulative period since the date of submission of the Annual
Securities Report for the previous fiscal year.

- 15 -

Part 4 [Financial Information]
1. Method of Preparing Quarterly Consolidated Financial Statements
The quarterly consolidated financial statements of the Company have been prepared in accordance with the Ordinance on the
Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64
of 2007).

2. Auditing and Attestation
The quarterly consolidated financial statements of the Company for the 1st Quarter consolidated accounting period (from October
1, 2023 to December 31, 2023) and the 1st Quarter consolidated cumulative period (from October 1, 2023 to December 31, 2023)
have undergone quarterly review by Ernst & Young ShinNihon LLC pursuant to the provisions of Article 193-2, Paragraph 1, of
the Financial Instruments and Exchange Act of Japan.

- 16 -

1 [Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Unit: millions of yen)
Current 1st Quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2023)(December 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable, and contract assets
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment
Buildings and structures (net amount)
Land
Other (net amount)
Total property, plant, and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term time deposits
Guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable–trade
Electronically recorded obligations–operating
Short-term loans payable
Accounts payable–other
Income taxes payable
Contract liabilities
Provisions for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Retirement benefit liabilities
Provisions for stocks payment
Other
Total non-current liabilities
Total liabilities- 17 -

32,093
8,684
425
1,989
(19)
43,17329,081
7,594
546
1,741
(18)
38,944

7,491
6,915
2,901
17,308
5,813

7,454
6,915
2,791
17,1606,258

22,05018,7001,452
7,858
50,06173,182
116,356

21,652
18,7001,450
6,782
48,58572,004110,949

2,698
780
71
3,441
2,437
1,210
4,810
1,346
16,797

2,016
649
71
2,879
97
960
1,455
3,491
11,621

71
2,956
341
879
4,249
21,047

71
2,964
343
834
4,213
15,834

(Unit: millions of yen)
Current 1st Quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2023)(December 31, 2023)
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Accumulated remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 18 -

5,700
6,286
84,890(2,604)
94,2715,700
6,286
84,930(2,606)
94,3102,070(1,033)
1,036
95,308116,356

1,795
(990)
805
95,115110,949

(2) [Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income][Quarterly consolidated statements of income][1st Quarter consolidated cumulative period]

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Insurance dividend income
Land and house rent received
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Total extraordinary loss
Quarterly net income before taxes and adjustments
Income taxes–current
Income taxes–deferred
Total income taxes
Quarterly net income
Quarterly net income attributable to owners of parent(Unit: millions of yen)Previous 1st Quarter consolidated Current 1st Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022;(Started October 1, 2023;
ended December 31, 2022)
ended December 31, 2023)
16,90817,124
4,927
4,852
11,981
12,272
7,969
8,532
4,012
3,739

- 19 -

17
96
21
10
8
9
163

20
113
22
10
8
17
193

－
0
0
4,175

0
0
0
3,933

0
0

14
14

6
6
4,169
30
1,249
1,279
2,890
2,890

1
1
3,946
26
1,208
1,235
2,710
2,710

[Quarterly consolidated statements of comprehensive income][1st Quarter consolidated cumulative period]

Quarterly net income
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable to owners ofparent(Unit: millions of yen)Previous 1st Quarter consolidated Current 1st Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022;(Started October 1, 2023;
ended December 31, 2022)
ended December 31, 2023)
2,890
2,710

- 20 -

898
43
941
3,831

(275)
43
(231)
2,478

3,831

2,478

[Notes to Financial Statements](Additional Information)(Stock-based compensation plan for officers)
1. Outline of transaction
Based on a resolution at the Meeting of the Board of Directors held on October 31, 2018, which was approved at the Ordinary
General Meeting of Shareholders held on December 21, 2018, the Company introduced a stock-based compensation plancalled the “BIP Trust.” The objectives of the plan are to clarify the correlation between the Company’s shareholder value andthe remuneration for Directors, etc., and to motivate Directors, etc., to contribute more to enhancing our medium- to long-term
corporate value by sharing a common interest with shareholders, including not only the benefits of rising share prices but also
the risks associated with declining share prices.
The proposal to change the stock-based compensation plan for Directors, etc. (excluding Directors not holding executive
positions), and full-time auditors to performance-linked compensation has been deliberated by the Nomination andCompensation Advisory Committee, whose chairperson and half of whose members are independent Outside Directors andoutside experts, and it was approved at the Ordinary General Meeting of Shareholders held on December 20, 2019.
2. Stocks of the Company remaining in trust
The stocks of the Company remaining in trust are recorded as treasury stock under net assets based on the book values in thetrust (not including expenses attributable thereto). The book value and number of stocks of said treasury stocks were 407
million yen and 206,000 shares, respectively, as of the end of the current 1st Quarter consolidated accounting period.

- 21 -

(Notes to quarterly consolidated statements of cash flows)
The Company has not prepared quarterly consolidated statements of cash flows for the current 1st Quarter consolidated cumulative
period. Depreciation (including amortization of intangible assets) for the current 1st Quarter consolidated cumulative period is asfollows:
Previous 1st Quarter consolidated
Current 1st Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022
(Started October 1, 2023
ended December 31, 2022)
ended December 31, 2023)
Depreciation
939 million yen
777 million yen(Notes to shareholders’ equity, etc.)
I. Previous 1st Quarter consolidated cumulative period (Started October 1, 2022; ended December 31, 2022)
Dividend payments
Total amount of
Dividend per
Resolution
Class of sharescash dividends
Record date
Effective dateshare (yen)(millions of yen)
December 16, 2022
Ordinary General
Meeting ofCommon stock

2,210

42.00 September 30, 2022 December 19, 2022

Source ofdividends
Retainedearnings

Shareholders(Notes) The total amount of cash dividends determined by resolution at the Ordinary General Meeting of Shareholders on December
16, 2022, includes a cash dividend of 8 million yen for the stocks of the Company owned by the BIP Trust.

II. Current 1st Quarter consolidated cumulative period (Started October 1, 2023; ended December 31, 2023)
Dividend payments
Resolution
December 15, 2023
Ordinary General
Meeting of
Shareholders

Class of shares

Total amount ofcash dividends(millions of yen)

Common stock

2,669

Dividend pershare (yen)Record date

Effective date

51.00 September 30, 2023 December 18, 2023

Source ofdividends
Retainedearnings(Notes) The total amount of cash dividends determined by resolution at the Ordinary General Meeting of Shareholders on December
15, 2023, includes a cash dividend of 10 million yen for the stocks of the Company owned by the BIP Trust.

- 22 -

(Segment Information, etc.)[Segment Information]
I. Previous 1st Quarter consolidated cumulative period (Started October 1, 2022; ended December 31, 2022)
Information on net sales and profit or loss for each reportable segment
Reportable segment(Unit: millions of yen)Amounts inquarterly
Adjustments
consolidated(Note 1)statements
of income(Note 2)

Accounting
Firm
Business

Local
Governments
Business

Printing
Business

11,237

4,956

714

16,908－16,908

1

0

419

421

(421)

－

11,239

4,956

1,134

17,330(421)

16,908

2,868

1,210

(62)

4,015

(3)

4,012

Total

Net sales(1) Sales to outside customers(2) Inter-segment
sales or transfers
Total
Segment profit (loss)(Notes) 1. Adjustments of segment loss of 3 million yen include amounts for elimination of inter-segment transactions andadjustment of inventory assets.
2. Segment profit (loss) is adjusted with the operating profit presented in the quarterly consolidated statements ofincome.
II. Current 1st Quarter consolidated cumulative period (Started October 1, 2023; ended December 31, 2023)
Information on net sales and profit or loss for each reportable segment
Reportable segment(Unit: millions of yen)Amounts inquarterly
Adjustments
consolidated(Note 1)statements
of income(Note 2)

Accounting
Firm
Business

Local
Governments
Business

Printing
Business

11,601

4,861

662

17,124－

17,124

6

0

290

296

(296)

－

11,607

4,861

952

17,421(296)

17,124

3,008

912

(180)

3,740

(0)

3,739

Total

Net sales(1) Sales to outside customers(2) Inter-segment
sales or transfers
Total
Segment profit (loss)(Notes) 1. Adjustments of segment loss of 0 million yen include amounts for elimination of inter-segment transactions andadjustment of inventory assets.
2. Segment profit (loss) is adjusted with the operating profit presented in the quarterly consolidated statements ofincome.

- 23 -

(Revenue recognition)
Net sales of the Company are primarily revenue recognized from contracts with customers. The Company’s reportable segments
can be disaggregated into the following categories of goods and services:
Previous 1st Quarter consolidated cumulative period (Started October 1, 2022; ended December 31, 2022)(Unit: millions of yen)
Reportable segment
Accounting Firm
Business

Total

Local
Governments
Business

Printing Business

Revenue from computer services

3,829

2,066

－

5,895

Software sales

4,431

1,827

－

6,258

Revenue from consulting

1,760

270

－

2,031

Office equipment sales

944

792

－

1,736

Accounting supplies sales

271

－

－

271

Revenue from printing-related services

－

－

714

714

11,237

4,956

714

16,908

Sales to outside customers

Current 1st Quarter consolidated cumulative period (Started October 1, 2023; ended December 31, 2023)(Unit: millions of yen)
Reportable segment
Accounting Firm
Business

Total

Local
Governments
Business

Printing Business

Revenue from computer services

3,971

2,060

－

6,032

Software sales

4,564

1,493

－

6,058

Revenue from consulting

1,831

497

－

2,328

Office equipment sales

1,000

809

－

1,810

Accounting supplies sales

232

－

－

232

Revenue from printing-related services

－

－

662

662

11,601

4,861

662

17,124

Sales to outside customers- 24 -

(Earnings Per Share Information)
The amount of quarterly net income per share and the basis for the calculation thereof are as follows:
Previous 1st Quarter consolidated Current 1st Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022;(Started October 1, 2023;
ended December 31, 2022)
ended December 31, 2023)
Quarterly net income per share

55.12 yen

51.97 yen

2,890

2,710

－

－

2,890

2,710

524,264

521,466(Basis for calculation)
Quarterly net income attributable to owners ofparent (millions of yen)Amount not attributable to commonshareholders (millions of yen)
Quarterly net income from common stocks
attributable to owners of parent(millions of yen)
Average number of common stocks outstanding(hundreds of shares)(Notes) 1. The average number of stocks outstanding used in the calculation of the earnings per share information has been
determined by including the stocks of the Company held by the BIP Trust (which was established with the introductionof the BIP Trust plan) as deductible treasury stocks.
The average numbers of said treasury stocks outstanding deducted for the calculation of quarterly net income pershare were 206,000 shares for the previous 1st Quarter consolidated cumulative period and 206,000 shares for thecurrent 1st Quarter consolidated cumulative period.
2. The quarterly diluted net income per share is not stated as there were no dilutive shares.
(Material subsequent events)
None to be disclosed.

2 [Other]
None to be disclosed.

- 25 -

Section 2 [Information on Guarantors, etc., of the Company]
None to be disclosed.

- 26 -

Quarterly Review Report of
Independent Auditors
February 13, 2024

Kabushiki Kaisha TKC
To: The Board of Directors
Ernst & Young ShinNihon LLC
Tokyo Office

Designated Limited
Liability Partner
Engagement Partner

Certified Public
Shigeyuki Honda
Accountant

Designated Limited
Liability Partner
Engagement Partner

Certified Public
Toru Iizuka
Accountant

Auditor's Conclusion
Pursuant to Article 193-2, Paragraph 1, of the Financial Instruments and Exchange Act, we have conducted a quarterly review of thequarterly consolidated financial statements presented in the Financial Information section, which comprise the quarterly consolidatedbalance sheets, quarterly consolidated statements of income, quarterly consolidated statements of comprehensive income, and notes of
TKC Corporation applicable to the 1st Quarter consolidated accounting period (from October 1, 2023 to December 31, 2023) and the
1st Quarter consolidated cumulative period (from October 1, 2023 to December 31, 2023) of the consolidated fiscal year started October
1, 2023, and ending September 30, 2024.
Based on our quarterly review, nothing has come to our attention that causes us to believe that the quarterly consolidated financial
statements referred to above do not properly represent, in all material respects, the financial position of TKC Corporation and its
consolidated subsidiaries as of December 31, 2023, and their financial performance for the 1st Quarter consolidated cumulative period
then ended in conformity with the principles for the preparation of quarterly consolidated financial statements generally accepted inJapan.
Basis for Auditor's Conclusion
We have conducted our quarterly review in accordance with the quarterly review standards generally accepted in Japan. Our
responsibilities under those standards for quarterly reviews are further described in the Auditor’s Responsibilities for the Quarterly
Review of Quarterly Consolidated Financial Statements section of our report. We are independent of the Company and its consolidated
subsidiaries in accordance with the code of professional ethics in Japan, and we have also fulfilled our other ethical responsibilities asauditors. We believe that we have obtained the evidence required to provide a basis for our conclusion.
Responsibilities of Management, Corporate Auditors, and Board of Auditors for Quarterly Consolidated Financial Statements
Management is responsible for the preparation and proper presentation of quarterly consolidated financial statements in accordance withthe principles for the preparation of quarterly consolidated financial statements generally accepted in Japan. Responsibilities include
designing and implementing the internal control determined by management as necessary to enable the preparation and proper
presentation of quarterly consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the quarterly consolidated financial statements, management is responsible for assessing the Group’s ability to continue asa going concern and disclosing, where applicable, matters related to going concern in accordance with the principles for the preparationof quarterly consolidated financial statements generally accepted in Japan.
Corporate auditors and the Board of Auditors are responsible for overseeing the Directors’ performance of their duties in designing andimplementing the financial reporting process.
Auditors’ Responsibilities for the Quarterly Review of Quarterly Consolidated Financial Statements
Our responsibility as auditors is to express a conclusion on the quarterly consolidated financial statements in our quarterly review reportfrom an independent standpoint based on our quarterly review.
In accordance with the quarterly review standards generally accepted in Japan, we perform the following by exercising professional
judgment and maintaining professional skepticism throughout the quarterly review.
・We principally make inquiries to management and persons responsible for financial and accounting matters and perform analyticalprocedures and other quarterly review procedures. The procedure for quarterly reviews is a limited procedure compared to theprocedure for annual financial statements performed in accordance with the auditing standards generally accepted in Japan.
・If we determine that there exists a material uncertainty related to events or conditions that may cast significant doubt on the Group’s- 27 -

ability to continue as a going concern, we will present our conclusion, based on the evidence obtained, on whether anything has cometo our attention that causes us to believe that the quarterly consolidated financial statements have not been properly presented inaccordance with the principles for the preparation of quarterly consolidated financial statements generally accepted in Japan. If weconclude that such material uncertainty exists, we are required to draw attention in our quarterly review report to the notes to thequarterly consolidated financial statements or, if such notes are inadequate to address the material uncertainty, to express a qualified
conclusion or negative conclusion on the quarterly consolidated financial statements. Our conclusions are based on the evidence
obtained up to the date of our quarterly review report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
・We evaluate whether anything has come to our attention that causes us to believe that the presentation of and notes to the quarterly
consolidated financial statements are not in accordance with the principles for the preparation of quarterly consolidated financial
statements generally accepted in Japan; and whether anything has come to our attention that causes us to believe that the overall
presentation, structure, or content of the quarterly consolidated financial statements, including the notes thereto, or the quarterly
consolidated financial statements themselves, do not represent the underlying transactions and accounting-related events in a mannerthat constitutes proper presentation.
・We obtain evidence regarding the financial information of the Company and its consolidated subsidiaries to express a conclusion on
the quarterly consolidated financial statements. We are responsible for the direction, supervision, and performance of the quarterly
review of the quarterly consolidated financial statements. We remain solely responsible for our conclusion.
We communicate with corporate auditors and the Board of Auditors regarding the planned scope and timing of the quarterly review
and our significant findings therein.
We also provide corporate auditors and the Board of Auditors with a statement that we have complied with regulations on professional
ethics in Japan regarding independence and communicate with them all matters that may reasonably be thought to bear on our
independence as well as, where applicable, the measures taken to eliminate factors that may hinder our independence or the safeguards
adopted to mitigate such factors to an acceptable level.
Conflicts of Interest
Our firm and its engagement partners have no interest in the Company or its consolidated subsidiaries that should be disclosed pursuant
to the provisions of the Certified Public Accountants Act of Japan.
End of document(Notes) 1. The original copy of the above quarterly review report is retained by TKC Corporation (the Company filing this quarterly
report).
2. XBRL data is not included in the scope of this quarterly review.

- 28 -

[Front Cover][Document filed]

Confirmation Letter[Applicable law]

Article 24-4-8, Paragraph 1, of the Financial Instruments and Exchange Act of Japan[Filed with]

Director of Kanto Local Finance Bureau[Date filed]February 13, 2024

[Company name]

Kabushiki Kaisha TKC[Company name in English]

TKC Corporation[Title and name of representative]

Masanori Iizuka, Representative Director, President and Executive Officer[Title and name of Chief Financial Officer]

Kiyotsugu Nakanishi, Director, Managing Executive Officer, Chief of the Business
Administration Headquarters[Address of head office]1758 Tsurutamachi, Utsunomiya-shi, Tochigi[Place available for public inspection]

TKC Corporation, Tokyo Head Office(2-1 Agebacho, Shinjuku-ku, Tokyo)
Tokyo Stock Exchange, Inc.
(2-1 Nihonbashikabutocho, Chuo-ku, Tokyo)- 29 -

1 [Matters Related to Adequacy of Statements Contained in the Quarterly Report]
Masanori Iizuka, Representative Director, President and Executive Officer of the Company, and Kiyotsugu Nakanishi, Chief
Financial Officer of the Company, hereby confirm that the statements contained in the quarterly report for the 1st Quarter of the58th term (started October 1, 2023; ended December 31, 2023) are adequate under the Financial Instruments and Exchange Act ofJapan.

2 [Special Notes]
None to be disclosed.

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