Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Three Months Ended June 30, 2023
[Japanese GAAP]
July 28, 2023
Company name: TERAOKA SEISAKUSHO CO.,LTD.
Stock exchange listing: Tokyo
Code number: 4987
URL: https://www.teraokatape.co.jp
Representative: Kenichi Tsuji
Representative Director & President
Contact: Nobuhisa Ishizaki
Director
Phone: +81-3-3491-1141Scheduled date of filing quarterly securities report: August 10, 2023
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Three months ended
June 30, 2023
4,594
0.8(192)
97493
June 30, 2022
4,555
(10.4)
(376)
(122)
(43)
(Note) Comprehensive income:Three months ended June 30, 2023:¥
724 million [157.9%]
Three months ended June 30, 2022:¥
280 million [-%]
Basic earnings
per share
Three months ended
June 30, 2023
June 30, 2022

Diluted earnings pershare
YenYen19.49(1.72)-(2) Consolidated Financial Position
Total assetsAs ofJune 30, 2023
March 31, 2023
(Reference) Equity:

Millions of yen

Net assets
Millions of yen

32,61532,630
As of June 30, 2023:
As of March 31, 2023:

Capital adequacy ratio¥¥

26,35625,70826,356 million
25,708 million

%

80.8
78.8

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2023

-

3.00

-

3.00

6.00

Fiscal year ending March 31, 2024

5.00

-

5.00

10.00

Fiscal year ending March 31, 2024
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

Year-endTotalNo

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024(April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Net sales
Millions ofyen

Operating profit%

Millions ofyen%

Profit attributable Basic earnings perto owners of parent
share

Ordinary profit
Millions ofyenFirst half
9,900
4.2
100
140
Full year
21,0008.7250330(Note) Revision to the financial results forecast announced most recently:
No%

Millions ofyen%

Yen-270590-10.66
23.29* Notes:(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2023:
26,687,955 shares
March 31, 2023:
26,687,955 shares
2) Number of treasury shares at the end of the period:
June 30, 2023:
1,356,181 shares
March 31, 2023:
1,356,004 shares
3) Average number of shares outstanding during the period:
Three months ended June 30, 2023:
Three months ended June 30, 2022:

25,331,851 shares
25,332,031 shares

Yes

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ....................................................................... 2(1) Explanation of Operating Results ...................................................................................................... 2(2) Explanation of Financial Position ...................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .. 3
2. Quarterly Consolidated Financial Statements and Principal Notes ....................................................... 4(1) Quarterly Consolidated Balance Sheets ............................................................................................. 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................... 6(3) Notes to Quarterly Consolidated Financial Statements ..................................................................... 8(Notes on going concern assumption) ............................................................................................ 8(Notes in case of significant changes in shareholders’ equity) ....................................................... 8(Accounting policies adopted specially for the preparation of quarterly consolidated financialstatements) .................................................................................................................................... 81

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the first quarter ended June 30, 2023 (from April 1, 2023 to June 30, 2023), the Japanese economy was on a gradual
recovery trend thanks to the recovery of personal consumption and inbound tourism demand. The Short-Term Economic Survey ofEnterprises in Japan (Tankan) conducted by the Bank of Japan for June showed that the diffusion index (DI) of sentiment regarding
business conditions among large companies in the manufacturing industry improved by 4 percentage points from the previous
survey, the first improvement in seven quarters. Work in process in the manufacturing industry and distributors’ inventory of rawmaterials are, however, still at high levels, and the outlook remains unpredictable due to concerns over rising prices, including
soaring fuel prices, and the prolonged weakening of the yen.
Meanwhile, turning our attention to the global economy, prolonged inflation and higher policy interest rates in the US and Europe
are gradually slowing down the economy, while in China, sluggish real estate sales and declining personal consumption are dragging
down the economy.
Within the context of this economic environment, the Group saw sales slightly increase year on year due to strong sales in packing
tapes and other industrial tapes. Meanwhile, operating loss decreased significantly year on year due to improved profitability fromprice increases and decreases in material costs, outsourced processing costs, and fixed costs for manufacturing as a result of groupwide efforts for exhaustive cost reduction. The Group, however, failed to return to profitability due to sluggish sales of electricalinsulation and electronic equipment tapes and rising costs of products manufactured at overseas factories caused by the weak yen.
Having reviewed the quantitative targets under its third medium-term management plan (announced on June 15, 2023), the Groupis focusing on rebuilding its tape business by adapting to changes in the business environment and concentrating managerial
resources on the business domains where it can demonstrate its strengths.
As a result, net sales for the first quarter ended June 30, 2023 were 4,594 million yen (up 0.8% year on year). Operating loss was
192 million yen (operating loss of 376 million yen in the same period of the previous fiscal year). Ordinary profit was 97 million
yen (ordinary loss of 122 million yen in the same period of the previous fiscal year), primarily due to foreign exchange gains of 256
million yen recorded under non-operating income as a result of the valuation of monetary claims denominated in foreign currencies
amid the sharp depreciation of the yen at the end of the quarter. Profit attributable to owners of parent was 493 million yen (lossattributable to owners of parent of 43 million yen in the same period of the previous fiscal year) due to a gain on sale of investment
securities of 369 million yen and a gain on sale of non-current assets of 135 million yen.
The Group engages in the manufacture and sale of adhesive tapes. Net sales by product category are as presented below.
(Packing tapes)
Demand for packing cloth tapes mainly for export recovered. As a result, the category’s net sales were 740 million yen (up 36.5%year on year).
(Electrical insulation and electronic equipment tapes)
Market conditions were unfavorable in China, and sales of electronic equipment tapes for personal computers and automobiles
remained sluggish. As a result, the category’s net sales were 2,096 million yen (down 12.4% year on year).
(Other industrial tapes)
Office mail order sales and sales of polyethylene cloth tapes for construction and civil engineering increased year on year. As aresult, the category’s net sales were 1,757 million yen (up 8.5% year on year).
(Reference) Sales performance
For the first quarter ended June
Adhesive tape30, 2022
businessComposition
by category
Net sales
ratio
542
Packing tapes
11.9%
[4]
Electrical insulation
2,392
and electronic
52.5%[1,309]equipment tapesOther industrial
1,620
35.6%
tapes
[62]
4,555
Total
100.0%[1,376](Note) Figures in brackets [ ] indicate overseas net sales.

(Million yen)
For the first quarter ended June30, 2023
Composition
Net sales
ratio
740
16.1%
[99]
2,096
[1,008]
1,757
[212]
4,594
[1,320]2Year-on-year change
Net saleschangePercentagechange

197

36.5%

45.6%

(296)

(12.4%)

38.3%

137

8.5%

100.0%

380.8%

(2) Explanation of Financial Position
Total assets at the end of the first quarter under review were 32,615 million yen, down 0.0% from the end of the previous fiscalyear.
Current assets were 16,400 million yen, up 1.4% from the end of the previous fiscal year. This was primarily due to an increasein cash and deposits.
Non-current assets were 16,214 million yen, down 1.5% from the end of the previous fiscal year. This was primarily due to adecrease in investment securities.
Total liabilities at the end of the first quarter under review were 6,259 million yen, down 9.6% from the end of the previous fiscalyear.
Current liabilities were 4,435 million yen, down 12.3% from the end of the previous fiscal year. This was primarily due to adecrease in electronically recorded obligations - operating.
Non-current liabilities were 1,823 million yen, down 2.1% from the end of the previous fiscal year. This was primarily due to adecrease in deferred tax liabilities.
Total net assets at the end of the first quarter under review were 26,356 million yen, up 2.5% from the end of the previous fiscalyear. This was primarily due to increases in retained earnings and foreign currency translation adjustment.
As a result of the above, the capital adequacy ratio was 80.8% (78.8% at the end of the previous fiscal year).

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
There is no change to the financial results forecast for the fiscal year ending March 31, 2024, which was announced on May 10,2023. The financial results forecast is based on currently available information. Actual performance may differ from forecasted
results due to a variety of factors going forward.

32. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

As of June 30, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable - trade

4,820
1,188

5,541
960

1,684

1,779

2,753

2,783

Merchandise and finished goods
Work in process

2,327
1,585

2,094
1,561

Raw materials and supplies
Other

1,469
348

1,269
418

Allowance for doubtful accounts
Total current assets

(7)

(7)

16,17016,400Non-current assets
Property, plant and equipment
Buildings and structures

15,04815,325

Accumulated depreciation(11,025)(11,206)

Buildings and structures, net

4,022

4,118

Machinery, equipment and vehicles
Accumulated depreciation

23,063(20,230)

23,477(20,578)

2,832

2,899

4,108
269

4,120
269

Accumulated depreciation

(112)

(116)

Leased assets, net

157

152

Construction in progress

464

482

2,388
(2,013)2,410(2,062)374

348

11,96012,121

323

312

Investments and other assets
Investment securities

3,055

2,612

Retirement benefit asset
Other947
173

941
2274,176

3,781

16,46016,214

32,63032,615

Machinery, equipment and vehicles, net
Land
Leased assets

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

Total investments and other assets
Total non-current assets
Total assets

4

(Millions of yen)
As of March 31, 2023

As of June 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

1,047
2,563

868
2,010

Short-term borrowings
Lease liabilities

2119

21
19

Income taxes payable
Accrued expenses

40365

119490

Other

1,002

905

Total current liabilities

5,060

4,435

Non-current liabilities
Long-term borrowings

703

697

Lease liabilities
Deferred tax liabilities

151
291

147
253

Provision for repairs
Retirement benefit liability

664

7
70

Asset retirement obligations
Long-term accounts payable - other512
56

512
56

Other

74

77

1,861

1,823

6,922

6,259

Share capital
Capital surplus

5,057
4,643

5,057
4,643

Retained earnings
Treasury shares

13,822(462)

14,240(463)

Total shareholders' equity

23,06023,478

1,252

1,195

1,012
383

1,317
365

2,647

2,878

25,70826,35632,63032,615

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets5(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)(Millions of yen)
For the three months
ended June 30, 2022
Net sales
Cost of sales

For the three months
ended June 30, 2023
4,555
3,829

Gross profit

4,594
3,707

726

887

Selling, general and administrative expenses

1,103

1,080

Operating loss

(376)

(192)

03

Dividend income
Foreign exchange gains

20238

37256

Rent revenue of real estate
Other

920

17
18

Total non-operating income

289

333

-

19

Rental expenses on real estate
Cost to deal with COVID

111912-

Other

411

Non-operating income
Interest income

Non-operating expenses
Consulting fee3543

Ordinary profit (loss)

Total non-operating expenses

(122)

97

Extraordinary income
Gain on sale of non-current assets

150

135

Gain on sale of investment securities

-369

150

504

Profit before income taxes

28602

Income taxes

71

108

Profit (loss)

Total extraordinary income

(43)

493

Profit attributable to non-controlling interests--Profit (loss) attributable to owners of parent

(43)

493

6

Quarterly Consolidated Statements of Comprehensive Income (For the three months)(Millions of yen)
For the three months
ended June 30, 2022
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

For the three months
ended June 30, 2023
(43)

493

(119)
468

(56)
305

Remeasurements of defined benefit plans, net of tax

(25)

(18)

Total other comprehensive income

324

230

Comprehensive income

280

724

Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

280

724--7

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements)
Tax expenses are calculated by reasonably estimating the effective tax rate expected to be imposed on profit before income
taxes (after tax effect accounting) for the consolidated fiscal year, in which the first quarter under review is included, andmultiplying this estimated effective tax rate by the quarterly profit before income taxes. However, in cases where the estimatedeffective tax rate cannot be used, the statutory effective tax rate is used. Income taxes – deferred is included under income taxes.

8