FOR TRANSLATION PURPOSE ONLY

Summary of Financial Results
for the First Quarter of the Fiscal Year 2022 (FY11/2022)［ Japan Standards ］(Non-Consolidated)
April 14, 2022
Company name:

T&S inc.

Listing:

Tokyo Stock Exchange

Securities code:

4055

URL:

https://www.tecsvc.co.jp/

Representative:

President and CEO Yoshihiro Takekawa

Contact:

Director, Executive Officer and General Manager of Corporate Division
Hiroshi Kinoshita
Tel: +81-45-263-8286

Scheduled date of file of Quarterly Securities Report:

April 14, 2022

Scheduled date of to commence dividend payments:-

Preparation of supplementary material on Quarterly Financial Results:

Yes

Holding of Quarterly financial results meeting:No(Amounts less than one million yen are rounded down)

1.

Financial results of the First Quarter of FY11/2022 (December 1, 2021 - February 28, 2022)(1) Operating results (cumulative)(Percentages indicate year-on-year changes)
Net sales
Million Yen

1Q of FY11/2022
1Q of FY11/2021

Operating income％ Million Yen

733
586

25.0
-

Quarterly net income
per share
1Q of FY11/2022
1Q of FY11/2021

126
71

Ordinary income

Quarterly net income％

Million Yen％

Million Yen

％

77.0
-

126
71

76.3
-

88
50

74.4
-

Quarterly diluted net income
per share

Yen

Yen

11.65
7.08

11.47
6.57

(Notes)1. Since quarterly financial statements were not prepared for the first quarter of the FY11/2020, the rate of change from thesame quarter of the FY11/2021 is not shown.
2. The Company conducted a 2-for-1 stock split on December 1, 2021. Quarterly net income per share and quarterly diluted
net income per share has been calculated on the assumption that conducted the stock split at the beginning of the
FY11/2021.
(2) Financial position
Total assets

Net assets

Million Yen

1Q of FY11/2022
FY11/2021(Reference) Shareholders’ equity
2.

Equity ratio
Million Yen

1,826
1,987
1Q of FY11/2022: 1,502 million yen

%

1,502
1,495
FY11/2021: 1,495 million yen

82.2
75.2

Dividends
End of Q1
FY11/2021
FY11/2022
FY11/2022 (forecasts)

1.
2.

Annual dividend
End of Q3

End of Q2

End of term

Total

Yen

Yen

Yen

Yen

Yen

-

0.00

-

8.00

8.00

0.00

-

5.00

5.00

(Notes)
Revision to dividend forecasts published most recently: No
The Company conducted a 2-for-1 stock split on December 1, 2021.
Dividends for FY11/2021 are actual amounts of dividends before such share splitting.

FOR TRANSLATION PURPOSE ONLY

3.

Forecast for the FY11/2022 (December 1, 2021 - November 30, 2022)
OperatingincomeNet sales
Full year

Million Yen

3,100％ Million Yen

13.4

550

Ordinary
income％ Million Yen

33.2

557

(Percentages indicate year-on-year changes)
Net income
Net income
per share％ Million Yen

32.9

391

％

Yen

32.7

51.82

(Note) Revision of the most recently announced earnings forecast: No* Notes(1) Application of special accounting methods for the preparation of quarterly financial statements:

No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
1. Changes in accounting policies due to revisions to accounting standards and other regulations:Yes
2. Changes in accounting policies due to other reasons (mentioned in 1.):No
3. Changes in accounting estimates:
No
4. Restatement of prior period financial statements:
No(Note) For details, please refer to "2. Quarterly Financial Statements and Principal Notes (3) Notes to Quarterly Financial
Statements (Changes in accounting policies)" on page 6 of the attached document.
(3) Number of issued shares (common shares)
1. Total number of issued shares at the end of
period (including treasury stock)

1Q of FY11/2022

7,633,200
shares

FY11/2021

7,633,200
shares

2. Number of treasury stock at the end of theperiod1Q of FY11/2022

39,000shares

FY11/2021－
shares

3. Average number of shares during
the period

1Q of FY11/2022

7,622,552
shares1Q of FY11/2021

7,190,316
shares(Note)The Company conducted a 2-for-1 stock split of common stock on December 1, 2021. The number of shares issued and thenumber of treasury stock at the end of the period, and the average number of shares during the period were calculated on theassumption that the stock split was conducted at the beginning of FY11/2021.
* Quarterly financial statements are not subject to quarterly review by a certified public accountant or auditing firm.
* Explanation regarding appropriate use of performance forecasts and other special notes(Notes on descriptions about the future)
Descriptions about the future such as performance forecasts contained in this document are based on information currently available to
the Company and certain presumptions considered as reasonable, and those are not intended to indicate the Company should assure that
it would realize such forecast. Meanwhile, actual performance in the future may differ substantially, influenced by a wide variety offactors. For preconditions for performance forecasts and precaution statements in using such forecasts, please see the appendix, page 3,“1. Qualitative Information regarding the Quarterly Financial Results: (3) Descriptions regarding prospects such as performance
forecasts”.
(How to obtain supplementary references regarding quarterly financial results)
Supplementary material on quarterly financial results is concurrently disclosed on TDnet.

T&S inc. (4055)
Summary of Financial Results for the first quarterly of FY11/2022

FOR TRANSLATION PURPOSE ONLY

Table of contents: Appendix
1.

Qualitative Information regarding the Quarterly Financial Results …………………………………………………… 2(1) Descriptions regarding operating results……………………………………………………………………………

2(2) Descriptions regarding financial position …………………………………………………………………………… 2(3) Descriptions regarding prospects such as performance forecasts …………………………………………………… 3
2.

Quarterly Financial Statements and Principal Notes …………………………………………………………………… 4(1) Quarterly Balance Sheet ……………………………………………………………………………………………… 4(2) Quarterly statements of income ………………………………………………………………………………………

5(The first quarter cumulative period) ……………………………………………………………………………

5(3) Notes on Quarterly Financial Statements…………………………………………………………………………… 6(Notes regarding the assumption for going concern）………………………………………………………………

6(Notes in the event of significant changes in the amount of shareholders' equity.) ………………………………

6(Changes in accounting policies) …………………………………………………………………………………… 6(Segment information, etc.)………………………………………………………………………………………

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6

T&S inc. (4055)
Summary of Financial Results for the first quarterly of FY11/2022

FOR TRANSLATION PURPOSE ONLY

1.

Qualitative Information regarding the Quarterly Financial Results(1) Descriptions regarding operating results
During the first quarter of the current fiscal year, the Japanese economy continued to face a severe condition due to thenationwide spread of the new coronavirus infection, which led to the declaration of a state of emergency and the expansion ofareas subject to priority measures to prevent the spread of the disease. In addition to the effects of various policies, there were
expectations that socioeconomic activities would normalize as vaccinations began to progress in earnest. However, due to theemergence of new mutant strains, the timing of the convergence of the new coronavirus infection is unclear and the situation
remains uncertain. Under these circumstances, the importance of IT and the trend of digitalization of business are expandingin corporate activities, such as telecommuting, use of online meetings, use of cloud services, and promotion of DX (Digital
Transformation). The Company's business is a single segment of system development and related services but is divided into
three categories: solution, semiconductor, and advanced technology solution.
In the economic environment described above, in the "Solution Category" we have continued to supply IT professionals
without specializing in industrial areas, and we have expanded our business to support IT development.
In the "Semiconductor Category”, we have been expanding our business in general IT infrastructure operation support for
semiconductor factories, including in-factory system maintenance and operation services and IT help desk services.
In the “Advanced Technology Solution Category”, we have expanded the provision of solutions for customers developing
AI-related products. Operating results by category for the first quarter of the fiscal year under review are as follows.
① Solution Category
Net sales for the first quarter of the current fiscal year totaled 538,367 thousand yen (up 18.4% from the same period of
the previous year).
Orders for contracted development projects from major clients, which began in the previous fiscal year, remained
particularly strong. The ongoing large-scale development projects for in-factory systems from semiconductor manufacturers
contributed to the increase in sales.
② Semiconductor Category
Net sales for the first quarter of the current fiscal year totaled 137,518 thousand yen (up 23.9% from the same period of
the previous year). The Company received steady orders from major clients against the robust semiconductor market andrequests for further increases in staff.
③ Advanced Technology Solution Category
Net sales for the first quarter of the current fiscal year totaled 57,258 thousand yen (up 174.3% from the same period of
the previous year). Orders for AI-related R&D support services, support for research papers, and other services continued to
be steady, as well as orders from new clients.
In particularly, the ratio of sales in this category to the entire company expanded from 3.6% in the first quarter of theprevious year to 7.8% in the first quarter under review, due to an increase in new clients in addition to projects from existingclients such as NEC Corporation, which remained strong from the previous fiscal year.
As a result, the Company's operating results for the first quarter of the current fiscal year showed growth in all categories,
with net sales of 733,145 thousand yen (up 25.0% from the same period of the previous year).
The Company absorbed a provision of 15,000 thousand yen for performance-linked bonuses to employees, resulting inoperating income of 126,602 thousand yen (up 77.0% from the same period of the previous year), ordinary income of 126,552
thousand yen (up 76.3% from the same period of the previous year), and net income of 88,767 thousand yen (up 74.4% fromthe same period of the previous year).

(2) Descriptions regarding financial position(Assets)
Current assets at the end of the first quarter of the current fiscal year were 1,735,761 thousand yen, a decrease of 134,184
thousand yen compared to the end of the previous fiscal year. This was mainly due to a decrease of 152,896 thousand yen in
cash and deposits resulting from payment of taxes.
Fixed assets totaled 91,077 thousand yen, a decrease of 26,422 thousand yen from the end of the previous fiscal year.
This was mainly due to a decrease of 26,473 thousand yen in deferred tax assets resulting from the payment of performancelinked bonuses and winter bonuses.
As a result, total assets amounted to 1,826,839 thousand yen, down 160,607 thousand yen compared to the end of theprevious fiscal year.
(Liabilities)
Current liabilities at the end of the first quarter amounted to 271,952 thousand yen, down 168,898 thousand yen comparedto the end of the previous fiscal year. This was mainly due to a 113,320 thousand yen decrease in accrued income taxes fromthe payment of taxes, a 33,369 thousand yen decrease in accrued expenses from the payment of winter bonuses, and a 25,863
thousand yen decrease in provision for bonuses from the payment of performance-linked bonuses.
Fixed liabilities amounted to 52,401 thousand yen, an increase of 888 thousand yen from the end of the previous fiscal- 2 -T&S inc. (4055)
Summary of Financial Results for the first quarterly of FY11/2022

FOR TRANSLATION PURPOSE ONLY

year. This was due to an increase of 888 thousand yen in provision for retirement benefits.
As a result, total liabilities amounted to 324,354 thousand yen, down 168,010 thousand yen compared to the end of theprevious fiscal year.
(Net Assets)
Total net assets at the end of the first quarter of the current fiscal year were 1,502,485 thousand yen, an increase of 7,402
thousand yen compared to the end of the previous fiscal year. This was mainly due to an increase of 88,767 thousand yen inretained earnings due to the posting of net income for the quarter, a decrease of 30,532 thousand yen due to dividends, anda decrease of 50,832 thousand yen in treasury stock due to the acquisition of treasury stock.
(3) Descriptions regarding prospects such as performance forecasts
There is no change to the full-year earnings forecast announced in the "Summary of Financial Results for the
FY11/2021 on January 13, 2022.

- 3 -T&S inc. (4055)
Summary of Financial Results for the first quarterly of FY11/2022

FOR TRANSLATION PURPOSE ONLY

2.

Quarterly Financial Statements and Principal Notes(1) Quarterly Balance sheet(unit: thousand yen)Previous fiscal year
(November 30, 2021)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade, and contract assets
Account receivable
Work in Progress
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Intangible assets
Investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Account payable – trade
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Fixed liabilities
Provision for retirement benefits
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total Shareholders’ equity
Total net assets
Total liabilities and net assets- 4 -Current First Quarter offiscal period(February 28, 2022)

1,275,367―
354,021
24,264
198,366
19,326△1,4001,869,946

1,122,471
342,080―
30,694
225,692
16,223△1,4001,735,761

21,186
1,692
94,621
117,500
1,987,447

20,641
2,599
67,836
91,077
1,826,839

105,474
130,134
66,509138,732
440,851

106,966
16,81340,646
107,526
271,952

43,442
8,071
51,513492,364

44,3308,071
52,401
324,354

340,783
292,112862,186―
1,495,082
1,495,082
1,987,447

340,783
292,112920,421△50,832
1,502,485
1,502,485
1,826,839

T&S inc. (4055)
Summary of Financial Results for the first quarterly of FY11/2022

FOR TRANSLATION PURPOSE ONLY

(2) Quarterly statements of income(The first quarter cumulative period)(unit: thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Share issuance cost
Commission expenses
OthersTotal non-operating expenses
Ordinary income
Extraordinary losses
Losses on disposal of fixed assets
Total extraordinary losses
Net income before taxes
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Quarterly Net income

Previous First Quarter
cumulative period(From December 1, 2020
until February 28, 2021)
586,564
413,845
172,718
101,21071,508Current First Quarter
cumulative period(From December 1, 2021
until February 28, 2022)
733,145514,309
218,835
92,232
126,602

3
330
0
333

1
―
0
1

60
―
0
60
71,781―50
050
126,552――
71,781
12,642
8,242
20,88450,896321
321126,231
10,99026,473
37,46388,767- 5 -T&S inc. (4055)
Summary of Financial Results for the first quarterly of FY11/2022

FOR TRANSLATION PURPOSE ONLY

(3) Notes to Quarterly Financial Statements(Notes regarding the assumption for going concern)
Not applicable.

(Notes in case of Significant Changes in the amount of Shareholders’ Equity)
Not applicable.
(Changes in accounting policies)(Adoption of the Accounting Standard for Revenue Recognition and Related Guidance)
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and related ASBJ guidance
have been adopted to the Company’s financial results since the beginning of the first quarter of the current fiscal year.
Accordingly, the Company recognizes revenue at the amount expected to be received in exchange for the promised goods
or services when such control of the promised goods or services is transferred to the customer.
Previously, the Company applied the completion basis or percentage-of-completion basis method for built-to-ordersoftware, but effective from the first quarter of the current fiscal year, for performance obligations to be fulfilled over acertain period, the Company estimates the progress toward fulfilment of the performance obligation and recognizes
revenue over a certain period based on the degree of completion. In cases where the period between the transactioncommencement date and the point in time when the performance obligation is expected to be fully satisfied is very short,
the Company recognizes revenue when the performance obligation is fully satisfied.
As a result, there is no impact on profit and loss for the first quarter of the current fiscal year.
In addition, the adoption of the revenue recognized accounting standard, etc., in accordance with the transitional
treatment stipulated in the proviso of Paragraph 84 of the revenue recognition accounting standard, etc., has no effect on
the beginning balance of retained earnings.
In accordance with the adoption of the Accounting Standard for Revenue Recognition, "Accounts receivable," which
was presented in "Current assets" in the balance sheet for the previous fiscal year, is included in "Accounts receivable trade, and contract assets" from the first quarter of the current fiscal year. In this regard, in accordance with the transitional
treatment stipulated in Paragraph 89-2 of the Accounting Standard for Revenue Recognition, no reclassification has been
made for the previous fiscal year using the new disclosure method.
(Adoption of Accounting Standard for Fair Value Measurement and Related Standards and Guidance.)"Accounting Standard for Fair Value Measurement " (ASBJ Statement No. 30, July 4, 2019) and related ASBJ standards
and guidance have adopted to the Company’s financial results since the beginning of the first quarter of the current fiscal
year.
The new accounting policies stipulated in the new standards are applied into the future in accordance with the transitional
treatment provided for in paragraph 19 of "Accounting Standard for Fair Value Measurement" and paragraph 44-2 of"Accounting Standard for Financial Instruments" (ASBJ Statement No.10, July 4, 2019). There is no impact on thequarterly financial statements.
(Segment information, etc.)【Segment information】
I.

Previous First Quarter Cumulative Period (Dec 1, 2020 – Feb 28, 2021)
Business of the Company comprises of a single segment of system development and other related services andtherefore description of segment information is omitted.

II.

Current First Quarter Cumulative Period (Dec 1, 2021 – Feb 28, 2022)
Business of the Company comprises of a single segment of system development and other related services andtherefore description of segment information is omitted.

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