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 Nine Months Ended December 31, 2023
[Japanese GAAP]
January 30, 2024
Company name: TERAOKA SEISAKUSHO CO.,LTD.
Stock exchange listing: Tokyo
Code number: 4987
URL: https://www.teraokatape.co.jp
Representative: Keishiro Teraoka
Representative Director, Chairman & President
Contact: Nobuhisa Ishizaki
Director
Phone: +81-3-3491-1141
Scheduled date of filing quarterly securities report: February 14, 2024
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 Nine Months Ended December 31, 2023 (April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet salesOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended
December 31, 2023
13,702
(5.7)
(635)
(410)
22
December 31, 2022
14,528(12.4)(1,161)(891)(651)(Note) Comprehensive income:Nine months ended December 31, 2023:¥449 million [-%]
Nine months ended December 31, 2022:¥(368) million [-%]
Basic earnings
per share
Nine months ended
December 31, 2023
December 31, 2022

Diluted earnings pershareYen

Yen

0.87
(25.72)-(2) Consolidated Financial Position
Total assets
Millions of yen
As ofDecember 31, 2023
32,724
March 31, 2023
32,630(Reference) Equity: As of December 31, 2023:
As of March 31, 2023:

Net assets

Capital adequacy ratio

Millions of yen¥¥

26,08125,70826,081 million
25,708 million

%

79.7
78.8

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2023

-

3.00

-

3.00

6.00

Fiscal year ending March 31, 2024-0.00

0.00

0.00

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

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024(April 1, 2023 to March 31, 2024)
Financial results forecast for the fiscal year ending March 31, 2024 is not provided because TERAOKA SEISAKUSHO CO., LTD.
is to be delisted on March 11, 2024 after going through a series of procedures, as announced on January 18, 2024 in the “NoticeConcerning Consolidation of Shares, Abolition of the Provisions Regarding the Number of Shares Constituting One Unit of Shares,and Partial Amendments to the Articles of Incorporation.”* Notes:(1) Changes in significant subsidiaries during the nine months ended December 31, 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):December 31, 2023:
26,687,955 shares
March 31, 2023:
26,687,955 shares
2) Number of treasury shares at the end of the period:
December 31, 2023:
1,356,716 shares
March 31, 2023:
1,356,004 shares
3) Average number of shares outstanding during the period:
Nine months ended December 31, 2023:
Nine months ended December 31, 2022:

25,331,716 shares
25,331,999 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 nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023), the Japanese economy was on an
improving trend in both the manufacturing and non-manufacturing sectors. In particular, accommodations and eating and drinking
services remained robust due to the recovery of inbound tourism demand. A broader range of industries also experienced
improvements as they passed on costs to customers. However, the outlook for the manufacturing sector continues to be unpredictabledue to concerns about sluggish global demand for goods, rising prices, including soaring fuel prices, and the prolonged depreciationof the yen.
Meanwhile, turning our attention to the global economy, prolonged inflation and tightening financial conditions in the US andEurope are gradually slowing down the economy, while in China, one of our major markets, sluggish real estate sales and declining
personal consumption are negatively affecting the economy.
Within the context of this business environment, the Group saw net sales decrease year on year, as sales of electrical insulationand electronic equipment tapes declined significantly due to sluggish market conditions in China and prolonged inventory
adjustments in the electronic components market, although sales of packing tapes and other industrial tapes were strong. On theother hand, operating loss decreased year on year due to the measures we had taken since the beginning of the fiscal year to reduce
long-term immovable inventories and pass some of the increases in raw material prices to product prices. The decrease in operating
loss was also due to a decrease in factory expenses and SG&A expenses, which resulted from group-wide efforts for exhaustive
cost reduction. The Group, however, failed to return to profitability.
As a result, net sales for the nine months ended December 31, 2023 were 13,702 million yen (down 5.7% year on year). Operating
loss was 635 million yen (operating loss of 1,161 million yen in the same period of the previous fiscal year). Ordinary loss was 410
million yen (ordinary loss of 891 million yen in the same period of the previous fiscal year), primarily due to foreign exchange
gains of 182 million yen recorded under non-operating income as a result of the valuation of monetary claims denominated inforeign currencies amid the depreciation of the yen. Profit attributable to owners of parent was 22 million yen (loss attributable toowners of parent of 651 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)
As a result of the acquisition of new trade areas through new products and the spread of price increases, the category’s net sales
were 2,239 million yen (up 14.4% year on year).
(Electrical insulation and electronic equipment tapes)
Sales of electrical insulation and electronic equipment tapes were sluggish, mainly due to prolonged inventory adjustments in theelectronic components market. As a result, the category’s net sales were 6,085 million yen (down 15.7% year on year).
(Other industrial tapes)
Sales of automotive bundling tapes and masking tapes increased year on year. As a result, the category’s net sales were 5,377
million yen (up 0.5% year on year).
(Reference) Sales performance
Adhesive tapebusinessby category
Packing tapes
Electrical insulationand electronicequipment tapes
Other industrialtapes(Million yen)

Nine months ended
December 31, 2022
Composition
Net sales
ratio
1,958
13.5%
[135]
7,217
[3,759]Nine months ended
December 31, 2023
Composition
Net sales
ratio
2,239
16.3%
[284]
6,085
[2,969]

49.7%

5,352
36.8%
[361]
14,528Total
100.0%[4,256](Note) Figures in brackets [ ] indicate overseas net sales.

5,377
[672]
13,702[3,926]2

Year-on-year change
Net saleschangePercentagechange

281

14.4%

44.4%

(1,131)(15.7%)

39.2%

24

0.5%

100.0%(825)(5.7%)

(2) Explanation of Financial Position
Assets, Liabilities and Net Assets
Total assets at the end of the third quarter under review were 32,724 million yen, up 0.3% from the end of the previous fiscalyear.
Current assets were 16,007 million yen, down 1.0% from the end of the previous fiscal year. This was primarily due to a decreasein notes receivable - trade.
Non-current assets were 16,717 million yen, up 1.6% from the end of the previous fiscal year. This was primarily due to anincrease in construction in progress.
Total liabilities at the end of the third quarter under review were 6,643 million yen, down 4.0% from the end of the previous
fiscal year.
Current liabilities were 5,417 million yen, up 7.0% from the end of the previous fiscal year. This was primarily due to an increasein short-term borrowings and a decrease in electronically recorded obligations - operating.
Non-current liabilities were 1,226 million yen, down 34.1% from the end of the previous fiscal year. This was primarily due to adecrease in long-term borrowings.
Total net assets at the end of the third quarter under review were 26,081 million yen, up 1.5% from the end of the previous fiscalyear. This was primarily due to increases in valuation difference on available-for-sale securities and foreign currency translation
adjustment.
As a result of the above, the capital adequacy ratio was 79.7% (78.8% at the end of the previous fiscal year).

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Financial results forecast for the fiscal year ending March 31, 2024 is not provided because TERAOKA SEISAKUSHO CO.,LTD. is to be delisted on March 11, 2024 after going through a series of procedures, as announced on January 18, 2024 in the“Notice Concerning Consolidation of Shares, Abolition of the Provisions Regarding the Number of Shares Constituting One Unitof Shares, and Partial Amendments to the Articles of Incorporation.”

3Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

As of December 31, 2023

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

4,820
1,188

5,298
778

1,684

2,188

2,753

2,556

Merchandise and finished goods
Work in process

2,327
1,585

2,089
1,561

Raw materials and supplies
Other1,469
348

1,351
190

(7)

(7)

16,17016,007

Allowance for doubtful accountsTotal current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

15,04815,253(11,025)(11,306)

Buildings and structures, net

4,022

3,947

Machinery, equipment and vehicles
Accumulated depreciation

23,063(20,230)

23,279(20,555)

2,832

2,724

4,108
269

4,110
269

Accumulated depreciation

(112)

(125)

Leased assets, net

157

143

464

1,028

2,388
(2,013)

2,399(2,108)

Machinery, equipment and vehicles, net
Land
Leased assets

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

374

291

11,96012,245323

290

Investments and other assets
Investment securities

3,055

3,013

Retirement benefit asset
Other947
173

926
240

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

4

4,176

4,180

16,46016,71732,63032,724

(Millions of yen)
As of March 31, 2023

As of December 31, 2023

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

1,047
2,563

1,082
2,262

Short-term borrowings
Lease liabilities

2119700
19

Income taxes payable
Accrued expenses

40365

89354

Other

1,002

908
5,417

Total current liabilities

5,060

Non-current liabilities
Long-term borrowings

703-

Lease liabilities
Deferred tax liabilities

151
291

137
352

Provision for repairs
Retirement benefit liability

664

979

Asset retirement obligations
Long-term accounts payable - other

512
56

512
56

Other

74

77

1,861

1,226

6,922

6,643

Share capital
Capital surplus

5,057
4,643

5,057
4,643

Retained earnings
Treasury shares

13,822(462)

13,768(463)

Total shareholders' equity

23,06023,006

1,252

1,470

1,012
383

1,275
329

2,647

3,075

25,70826,081

32,63032,724

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 assets

5Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the nine months)(Millions of yen)
For the nine months
ended December 31, 2022

For the nine months
ended December 31, 2023

Net sales
Cost of sales

14,52812,26813,702
10,999Gross profit

2,259

2,703

Selling, general and administrative expenses

3,420

3,338

Operating loss

(1,161)(635)

Non-operating income
Interest income

413

Dividend income
Foreign exchange gains

77
176

74
182

Rent revenue of real estate
Other45
44

53
28

Total non-operating income

349354

Consulting fee
Rental expenses on real estate356337

Cost to deal with COVID
Other

26
1728

Total non-operating expenses

79129(891)(410)

Gain on sale of non-current assets
Gain on sale of investment securities

150
3

135
369

Total extraordinary income

154504

Profit (loss) before income taxes

(737)

94

Income taxes

(86)

71

Profit (loss)

Non-operating expenses

Ordinary loss
Extraordinary income

(651)

22

Profit attributable to non-controlling interests--

Profit (loss) attributable to owners of parent

(651)

226

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)(Millions of yen)
For the nine months
ended December 31, 2022
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

For the nine months
ended December 31, 2023

(651)

22(2)
361

218
263

Remeasurements of defined benefit plans, net of tax

(75)

(54)

Total other comprehensive income

283

427

Comprehensive income

(368)

449

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

(368)

449

--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 third 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