Quarterly Report(56th Term 3rd Quarter)
Started April 1, 2022
Ended June 30, 2022

TKC Corporation
1758 Tsurutamachi, Utsunomiya-shi, Tochigi- 1-

Table of Contents[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.] .................................................................................................................................................. 14
Part 3 [Information on the Company].................................................................................................................................................. 15
1 [Information on the Company’s Stock]................................................................................................................................. 15(1) [Total number of shares, etc.].......................................................................................................................................... 15(2) [Share subscription rights, etc.] ....................................................................................................................................... 15(3) [Exercise of bonds with share subscription rights containing a clause for exercise price adjustment, etc.] .................... 15(4) [Changes in total number of issued shares, capital stock, etc.]........................................................................................ 15(5) [Major shareholders] ....................................................................................................................................................... 15(6) [Status of voting rights]................................................................................................................................................... 16
2 [Officers] .............................................................................................................................................................................. 16
Part 4 [Financial Information] ............................................................................................................................................................. 17
1 [Quarterly Consolidated Financial Statements] .................................................................................................................... 18(1) [Quarterly consolidated balance sheets] .......................................................................................................................... 18(2) [Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income] ......... 20[Quarterly consolidated statements of income] .............................................................................................................. 20[Quarterly consolidated statements of comprehensive income]...................................................................................... 21
2 [Other] .................................................................................................................................................................................. 26
Section 2 [Information on Guarantors, etc. of the Company] .................................................................................................................. 27[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]

August 12, 2022

[Quarterly accounting period]

56th Term 3rd Quarter (from April 1, 2022 to June 30, 2022)[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 Ageba-cho, 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 Ageba-cho, 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]
Fiscal year

55th Term
Nine months ended
June 30, 2021

Accounting period

Started October 1, 2020;
ended June 30, 2021

56th Term
Nine months ended
June 30, 2022

55th Term

Started October 1, 2021; Started October 1, 2020;
ended June 30, 2022
ended September 30, 2021

Net sales(millions of yen)

49,58750,34066,221

Ordinary income(millions of yen)

11,808

11,941

12,673

Quarterly (current) net income
attributable to owners of parent(millions of yen)

7,961

8,125

8,686

(millions of yen)

8,881

8,149

9,839

Net assets(millions of yen)

82,45886,573

83,416

Total assets(millions of yen)

100,106

104,284

103,406

Quarterly (current) net income
per share(yen)

151.19154.88164.93

Quarterly (current) diluted net
income per share

(yen)

－

－

－

Equity ratio

(%)

82.4

83.0

80.7

Term & Period

55th Term
3rd quarter consolidated
accounting period

56th Term
3rd quarter consolidated
accounting period

Accounting period

Started April 1, 2021;
ended June 30, 2021

Started April 1, 2022;
ended June 30, 2022

46.77

44.04

Quarterly comprehensive
income or comprehensive
incomeQuarterly net income per share(yen)(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.
4. The Company conducted a stock split of its common shares at a ratio of 1:2 as of April 1, 2021. The quarterly (current) net
income per share has been calculated assuming that the stock split was conducted at the beginning of the previous
consolidated fiscal year.

2 [Description of Business]
There are no significant changes in the description of business operated by the TKC Group (TKC Corporation and its affiliatedcompanies) during the nine months ended June 30, 2022. There are no changes in the major affiliated companies.

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Part 2 [Business Overview]
1 [Risk Factors]
There are no risks pertaining to new business operations, etc. that occurred during the nine months ended June 30, 2022. There areno significant changes in risks regarding business operations, etc. described in the Annual Securities Report of the previous fiscal
year.

2 [Management Analysis of Consolidated Financial Conditions, Operating Results, and Cash Flows]
I. Operating Results
The Japanese economy during the nine months ended June 30, 2022 continues to face concerns including the fragmented global supply
chain, weak yen, and rise in energy prices caused by Russia’s invasion of Ukraine, while impacts of the novel coronavirus disease(COVID-19) pandemic were mild. That is why, despite signs of recovery in the current economic environment, the future outlook
remains unclear.
In such situations, the Japanese government has been continuing to offer booster vaccinations and taking various measures to support
the people and SMEs towards resuming the socio-economic activities. The Group carried out its business in an aim to contribute to
the local communities and society by quickly complying with these governmental initiatives and offering compatible systems andservices.
The Accounting Firm Business Division supports certified public tax accountants and certified public accountants that are customers
of TKC (hereinafter, “TKC Members”) in enabling them to provide their clients with financing support and managerial advisory
services as escort supporters of SMEs. We also support SMEs in achieving profitable results and proper filing by providing cloudbased accounting systems.
The Local Governments Business Division quickly provided services in response to the release of the administrative circular “Printing
and Mailing of Vaccination Vouchers, etc. for COVID-19 Vaccine Booster Shots (3rd Dose)” on October 20, 2021 from the Ministryof Health, Labour and Welfare, including services for the production of COVID-19 vaccination vouchers and provision of vaccination
reservation & registration systems, thereby supporting customer local municipalities in their COVID-19 vaccination projects.
As a result of these activities, the operating results of the consolidated Group comprising TKC Corporation and its six consolidated
subsidiaries for the nine months ended June 30, 2022 recorded a net sales of 50,340 million yen (increased 1.5% year-on-year),
operating income of 11,656 million yen (increased 1.3% year-on-year), ordinary income of 11,941 million yen (increased 1.1% yearon-year), and quarterly net income attributable to owners of parent of 8,125 million yen (increased 2.1% year-on-year).
Net sales by business division for the nine months ended June 30, 2022 are shown below.
1. Results of operation for the nine months ended June 30, 2022
(1) Net sales of the Accounting Firm Business Division
Net sales of the Accounting Firm BD were 33,913 million yen (increased 1.7% year-on-year); operating income was 9,375 million
yen (increased 3.6% year-on-year). Breakdown of sales is as follows:(i) Sales from computer services increased by 3.1% year-on-year. This was attributable to the growth in number of implementationsof the FX4 Cloud Integrated Accounting Information System for mid-size companies, which enables the accounting of journal
entries from sales management systems, salary calculation systems and other business systems in connection with accounting
data, as medium-size companies are rapidly working towards digital transformation (DX). In addition, the increase in the numberof accounting firms adopting the Office Management System (OMS Cloud) for Tax Accounting Firms and the OMS Mobile
which allows them to work using the OMS from home or outside their offices also contributed to increase in sales.
(ii) Software sales increased by 2.8% year-on-year. This was attributable to increase in clients who began using the FX Cloud Series
to comply with the Revised Electronic Books Maintenance Act of Japan enacted as of January 1, 2022. The FX Cloud Series
meet the legal requirements of “superior electronic books” and come equipped with documented evidence storage functions as
standard feature.
(iii) Sales from consulting services increased 2.3% year-on-year. This was due to strong sales of the FX4 Cloud, leading to increasein orders for system launch support services.
(iv) Hardware sales increased by 1.0% year-on-year. This was mainly attributable to the funding that also covers the purchase of
hardware under this year’s Subsidy Program for Introducing IT to Businesses for Productivity Improvement in Services, etc.
(“Subsidies for Introduction of IT”), and increase in customers replacing their PCs with new Windows 11 models.
(v) Sales from supplies decreased by 4.6% year-on-year. While sales of office equipment to support remote works and digitalization
were strong, more clients are now using self-accounting and moving to paperless operations, and demands for paper accounting
supplies and printing-related consumables have declined.
(vi) Improvement in operating income year-on-year was a result of increase in sales of computer services and software with higher- 5-profit margins, while sales of office supplies with lower profit margins decreased from the previous year.
(2) Net sales of the Local Governments Business Division
Net sales of the Local Governments BD were 13,928 million yen (increased 0.7% year-on-year); operating income was 1,912 million
yen (decreased 16.8% year-on-year). Breakdown of sales is as follows:(i)

Sales from computer services increased by 8.9% year-on-year. This was driven by increase in data center usage fees by new
clients whose systems ordered in the previous fiscal year were fully launched, new contracts for printing of vouchers, etc., for
COVID-19 vaccine booster shots (3rd dose), and new contracts for production of entry tickets, etc., for the election of membersof the House of Representatives.

(ii) Software sales decreased 3.3% year-on-year. This was due to decrease year-on-year in temporary sales recorded in the previous
fiscal year, consisting of sales from vaccination projects and sales in response to system reforms including system revision fees
for revisions to the Digital Administrative Procedures Act. Revenue from software usage fees for our mission-critical system is
growing steadily as the customer base continues to expand.
(iii) Sales from consulting services decreased 40.6% year-on-year. This is because the fees for the change-over of municipalities’intermediate servers & platforms recorded in the previous fiscal year will not be generated this fiscal year.
(iv) Hardware sales came to a relatively similar amount year-on-year.
(v) Decrease in operating income year-on-year was a result of decrease in sales for temporary system revisions and consulting
services to address system reforms, etc., despite increase in sales of computer services for the launch of systems for new
customers.
(3) Net sales of the Printing Business Division (Subsidiary: TLP Corporation)
Net sales of the Printing BD were 2,497 million yen (increased 3.7% year-on-year); operating income was 370 million yen (increased
223 million yen year-on-year). Breakdown of sales is as follows:(i) Sales of data printing service-related products increased by 9.0% year-on-year. This was due to winning of contracts for the
printing of entry tickets for the elections of members of the Lower House in October 2021 and members of the Upper House in
July 2022, vouchers for COVID-19 vaccination by local municipalities, notices for special cash payments for households
exempted from inhabitant tax, and Notice on 2021 Income Tax Report postcards.
(ii) Business form-related sales increased by 0.6% year-on-year. This was attributable to winning of contracts for the printing ofbusiness forms including Notice on Special Collection of Insurance Premiums for Medical Care System for Old Senior Citizens
and Notice on Bank Account for Medical Care System for Old Senior Citizens, despite decline in demands for business forms asa result of progress in digital transformation among client companies.
(iii) Sales of printing of commercial-use creative materials (catalogs, books, etc.) increased by 11.4% year-on-year. This was due towinning many new contracts for the printing of books and other materials illustrating the Revised Electronic Books Maintenance
Act, new consumption tax invoicing system, and FY2022 tax reforms.
(iv) The increase in operating income year-on-year was a result of increase in sales of DPS-related products with higher profit margins,
and the promotion of in-house manufacturing of direct mails for private companies through the installation of new facilities.
2. Important Matters with respect to the Company as a Whole(1) Prevention of COVID-19 infection and actions for new working styles
As the outlook for the containment of COVID-19 pandemic is still unpredictable, the Company continues to take the following
infection prevention measures and adapt to new working styles in order to continue the provision of services to its customers:(i) To enable customers to continue using our cloud services, business form printing services, and help desk services, we arecontinuing to strengthen our business continuity measures (including prohibiting the entry of outside personnel at important
offices and developing the infrastructure for remote access to the data center).
(ii) The Company enforces teleworking and staggered working hour programs. We make positive use of the Web meeting systems
for customer support and business meetings.
(2) Acquisition of patent for the functions of the Overseas Business Monitor (OBMonitor)
The Company acquired a patent for internal audit support functions including “Confirmation of transaction details by local business
partner” of the Overseas Business Monitor (OBMonitor). (Acquired on April 1, 2022; Patent No. 7052135)
3. Business activities and operating results of the Accounting Firm Business Division
The Accounting Firm BD operates in accordance with the business objectives set forth in the Articles of Incorporation (Article 2,
Paragraph 1: Management of electronic data processing centers to defend the business domain and maintain control over the fate ofaccounting firms) and works under close ties with the TKC National Federation (TKCNF), which consists of 11,500 certified public tax
accountants and certified public accountants (as of June 30, 2022) that are customers of TKC.
(1) Activities to achieve “positive balance” and “proper filing”- 6-

(i) Support of SMEs affected by COVID-19 pandemic
The Company aggressively engages in activities to support customers under the policy to focus all its effort on supporting TKC
Members and their clients.
1) Provision of the latest information to TKC Members
To accurately and quickly deliver information on SME support policies released by the national government and SME support
organizations, the Company offers TKC Members on-demand webinars on the latest information and systems over the exclusive
Intranet (ProFIT). We began this activity on February 25, 2020, and posted a total of 269 entries as of the end of June 2022.
2) Offering of “COVID-19 management support information & emergency financial measures” corner
The Company developed a special website where TKC Members can check SME support policies offered by the national
governments, prefectural governments, as well as cities with a population of 40,000 or greater, and financial institutions under
the categories: Loans, Employment, Subsidies, and Taxation. As of the end of June 2022, the website had 6,163 entries on
support policies and is the largest database dedicated to SME support policies in Japan.
The site is updated twice a week since the launch to ensure that the latest information is available at all times.
3) Upgrading of check function for clients requiring emergency support
The Company provides check function for clients requiring emergency support on the Tax Accountants Office Management
system (OMS Cloud). The function enables automatic evaluation of eligibility of each client in the form of a checklist of various
governmental emergency economic policies, special loans by government-affiliated financial institutions and other SME support
policies. We update the function each time the eligibility requirements for new subsidies and emergency loans are made available,
and offer the capability to extract eligible clients with a single click. In February 2022, it was upgraded to enable users to evaluate
the eligibility for the Subsidy Program for Business Recovery. Also, to comply with the changes in the application requirements
for the 6th public offering of the Business Reestablishment Subsidy announced on March 28, 2022, we updated the function tocheck eligibility for the Subsidy on May 20.
(ii) New activity policy of TKCNF and sales activities to achieve targets
1) New activity policy of TKCNF
TKCNF has set a new activity policy for the next three years: “TKC accountants challenging the future–push through fieldauditing and support companies in achieving positive balance and proper filing!” It also set the following three targets to achieve
this policy.
a) Massively expand superior electronic books
Promotion of self-accounting by the TKC methodsb) Become guardians of tax justice
Promotion of Shomen-tempu (attachment of tax audit reports) by the TKC methodsc) Support the achievement of positive balance and foster good-standing companies
Promotion of field auditing and managerial advisory services
TKCNF has taken oath to society that it will contribute to the achievement of positive balance of companies through the practiceof field auditing and legal compliance. To support TKCNF in achieving these three targets, the Company will engage inaggressive sales activities focusing around the promotion of self-accounting by the TKC methods.
2) Initiatives towards fostering good-standing companies
The TKC Group established the following five criteria as indicators that SMEs should aim for:- Practice of Shomen-tempu (attachment of tax audit reports)- Compliance with “Chusho Kaikei Yoryo” (Guidelines for SME Accounting)- Increase of marginal income for two consecutive fiscal years- Equity ratio of 30% or greater- Positive net income before taxes
Companies that meet these criteria are defined as “BAST good-standing company” in the 2022 TKC Management Indicators(BAST), which contains financial statements data of more than 240,0000 companies.
By aggressively increasing the number of companies that implement compliance and work towards high value-added
management, under the guidance of TKC Members, we will make appeal to society that “TKC Members are escort runners
working to foster good-standing companies in the community.”
3) Promotion of self-accounting by the TKC methods (promotion of FX series)
As many SMEs are in need to plan for repaying the virtually interest-free, no-collateral loans that were obtained during the
pandemic, we provided support for the utilization of functions for the management strategy level (budget registration,
management by division, financing results spreadsheet) incorporated in the FX series. In order for management to utilize thesefunctions effectively, they need to enter the accounting transaction data in a timely and accurate manner, so the Company also

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provided support on functions for daily task level, including support for the bank credit data receiving function to receive bankdeposit transaction data through online banking and generate journal entries automatically, and the linking of salary journal withthe strategic salary information system (PX2).
We also found that management using our cloud-based financial accounting system FX Cloud series tends to access the system
quite frequently by themselves to check the performance. The advantage of cloud is utilized, in that managers can access thesystem from their own PCs. By offering assistance to implement the FX Cloud series, the Company will work to support SMEs
in achieving “positive balance” and “proper filing.”
As a result of these activities, the FX series has been implemented by approximately 296,000 companies as of June 30, 2022.
4) Supporting complete compliance with the Electronic Books Maintenance Act of JapanThe requirements for the retention of electronic books have been eased in the Revised Electronic Books Maintenance Act enacted
as of January 1, 2022. With this, there will be a distinction among electronic books (which are electromagnetic records of national
tax-related books): (a) “superior electronic books” that contain the history of additions, deletions and revisions to the accounting
data (traceable) (electronic books that satisfy the requirements of Article 2 and Article 5 of the Ordinance for Enforcement of
the revised Act); and (b) “other electronic books” that are prepared using accounting software that do not keep record of such
additions/deletions/revisions (electronic books that satisfy only the requirements of Article 2 of the Ordinance for Enforcementof the revised Act). This legal reform negates “the power of evidence” of the books, and the acceptance of such “other electronic
books” implies that the government has approved the use of accounting software that might enable falsification of books. To
address this issue, the Company promotes the use of the FX series for the preparation of “superior electronic books” on a national
level.
In addition, electronic retention of electromagnetic transaction data will be mandated under the Revised Electronic Books
Maintenance Act. While recording in paper form will be accepted up to December 2023, all business operators must comply
with the obligation within two years. We are providing support for the use of the FX series, which is equipped with a standard
function to enable electronic storage of transaction data in electromagnetic form.
5) Supporting complete compliance with the new consumption tax invoicing system
A new consumption tax invoicing system will be implemented on October 1, 2023. Business entities subject to consumption tax
must prepare for the new invoicing system by the time the new rule comes into effect, including application for registration as
qualified invoice issuer, preparation for issuing qualified invoices, and gaining knowledge on bookkeeping from qualified
invoices. To enable accounting firms to provide smooth support to their clients, the Company is developing on-demand seminars,
offering reference materials, and planning other supports. In addition, on June 1, we added a new function to enable clients tosearch their Business Operator Registration Number (a number that is assigned to each qualified invoice issuer once theApplication for Registration as Qualified Invoice Issuer has been accepted) from the National Tax Agency’s qualified invoice
issuer disclosure website, and register all relevant information in the OMS Cloud’s Client Basic Information Database (CDB) at
once. We are also developing new journal entry methods and new taxation categories to support accurate calculation of
consumption taxes, and also communicate such expertise ahead of our competitors in order to provide clients a sense of comfort
and reliability.
6) Promotion of TKC Monitoring Information Service
TKC Monitoring Information Service is a free cloud-based service in which the TKC Members, upon request by the managementof their clients, provide to financial institutions such information as monthly trial balance sheets, financial statements and tax
returns prepared by TKC Member firms after monthly field audits and monthly settlements. Monthly trial balance sheets will bemade available immediately upon completion of the monthly settlement, and financial statements and tax returns are disclosed
immediately after the client electronically files its financial documents to the tax authorities.
While promoting the TKC Monitoring Information Service, the Company communicated to financial institutions that thereliability of financial statements prepared by SMEs can be verified by the following three documents:a) Supporting documents submitted by TKC Members as provided for under Article 33-2 of the Certified Public Tax Accountant
Act of Japanb) 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 connection between the financial statements andtax returns for the past three yearsc) The Chusho Kaikei Yoryo checklist developed by the Japan Federation of Certified Public Tax Accountants' Associations
and Japan Federation of Credit Guarantee Corporations
As a result of these activities, TKC Monitoring Information Service is adopted by 478 financial institutions including all local
banks throughout Japan (64 institutions) as of June 30, 2022. In addition, 31 credit guarantee corporations, which is equivalent
to 74.5% of all the credit guarantee corporations in Japan (51 organizations) use this Service. As a result, the number of casesthat used this Service exceeded 310,000 cases.

- 8-While the issue of excessive debt of SMEs is gradually surfacing amidst the pandemic, our TKC Monitoring Information
Service, which can quickly provide monthly trial balance sheets, financial statements, and tax returns, is gaining high acclaims
from financial institutions and credit guarantee corporations that are striving to support the businesses of SMEs. This Service
is expected to serve as a bridge between financial institutions and TKC Members in their efforts to support the businesses of
SMEs.
7) Soliciting new members (promotion of joining TKCNF)
TKCNF continues to engage in a project to increase TKC membership to exceed 10,000 firms. To achieve this goal, the Company
worked closely with the New Members Service Committee and other members of TKCNF in activities such as active hosting ofwebinars.
As a result of these activities, the number of TKC Member firms totaled approximately 9,900 accounting firms (11,500
accountants) as of June 30 2022. The difference in numbers of firms and accountants are because some firms have multiple
accountants who are members.
(2) Activities to support the preparation of highly reliable financial statements based on timely and accurate bookkeeping(i) Support activities for diffusion of Chusho Kaikei Yoryo (Guidelines for SME accounting)
The TKCNF recommends the use of Basic Guidelines with Respect to the Accounting Procedures at Small- and Medium-sizedEnterprises (hereinafter, “Chusho Kaikei Yoryo” (Guidelines for SME Accounting)) formulated in February 2012 with which
SMEs should comply.
The Guidelines for SME Accounting have been formulated based on the following principles: 1) accounting that helps to grasp
the company's business situation; 2) accounting that contributes to providing information to stakeholders (financial institutions,etc.); 3) accounting that complies with the Ordinance on Company Accounting while achieving harmony between accounting andtaxation system; and 4) accounting that does not place excessive burden on SMEs.
In order to support the activities of the TKCNF towards the diffusion and utilization of the Guidelines, the Company continues topromote the development of training materials and to strengthen collaboration with other organizations supporting SMEs.
(ii) Issuance of Certificate of Bookkeeping Timeliness
The Company utilizes the processing log data and historical time series data that are automatically logged at our data centers when
TKC Members access our accounting system to issue a Certificate of Bookkeeping Timeliness free of charge. This Certificate
serves as reference for financial institutions, etc. to objectively evaluate the business performance of TKC Member firms.
This service was developed in an aim to improve reliability of financial statements and tax returns prepared by TKC Members andto provide a passport for smooth financing to the clients of TKC Members. This utilizes the features of the Company's financial
accounting processing at TKC data centers, which prohibits any retroactive insertions, deletions and corrections to past data, andTKC 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 ofaccounts and electronic tax filings have been completed by a one-stop, full line process in a timely manner.
For private businesses who will be using the TKC systems for accounting and tax return process starting in January 2022 andreceive issuance of Certificate of Bookkeeping Timeliness, we have enhanced the functions to enable them to submit their blue
returns and other documents to financial institutions through the TKC Monitoring Information Service. We will continue to support
private businesses in strengthening their collaboration with financial institutions.
(3) Expansion into large-scale enterprise market
By utilizing the TKC systems, the Company contributes to the compliance and rationalization of tax and accounting operations oflarge enterprises, mainly of listed companies, and is actively working to solicit these companies and their affiliates to become clientsof TKC Members.
(i) Responding to the Group Tax Sharing System
The consolidated taxation system has been reformed for the fiscal year starting after April 1, 2022, and the new group tax sharing
system is now applicable. The parent company and each subsidiary of the corporate group subject to the group tax sharing system
must file their corporate income tax returns electronically.
The Company has been providing aggressive support to large enterprises with a capital of 100 million yen or greater in complying
with the new obligation to use electronic tax filing. Through such activities, approximately 38% of the 21,000 some companies
with a capital of 100 million yen or greater now use our ASP1000R electronic tax filing system for corporations and the eConsoliTax
consolidated tax payment system as of the end of June 2022.
Based on the expertise accumulated to date, the Company developed the “Group Tax Sharing System (e-TAX Group Sharing)” incompliance with the group tax sharing system which is scheduled to begin offering in late August. We are working closely withTKCNF’s Medium- and Large-sized Companies Support Council (1,543 members as of the end of June 2022) in providing support
to ensure smooth transition of companies that choose to apply the group tax sharing system.
(ii) Responding to the Revised Electronic Books Maintenance Act and Consumption Tax Invoicing System- 9-

The requirements for retention of electronic books have been eased in the Revised Electronic Books Maintenance Act of Japan
enacted as of January 2022, and at the same time, electronic retention of electromagnetic transaction data has been mandated (withsafe harbor rules until end of December 2023). Moreover, as the consumption tax invoicing system will be implemented in October
2023, the formulation of standard specifications of digital invoices and initiatives to promote the system are currently underway.
To provide support for compliance with these legal reforms, we hosted the “Seminar for Compliance with the Invoicing System
for Medium- and Large-sized Companies” to provide information on how to prepare for the new consumption tax invoicing system.
Approximately 4,400 participants signed up for the seminar. Also, starting in January 2022, we started offering the “Invoice
Manager” service in compliance with the Revised Electronic Books Maintenance Act, which has been adopted by 350 mediumand large-sized companies.
(iii) Support for managing the performance of foreign subsidiaries
Companies having business overseas are facing increased business fluctuation risks due to the recent crisis in Ukraine, soaring
crude oil prices, fragmented supply chain, impacts of currency exchange fluctuation, etc. More and more companies facing such
hardship are implementing our OBMonitor overseas business monitoring system, as it is a cloud service that allows companies tocheck the financial data of their foreign subsidiaries from their offices in Japan. The number of corporate users of the OBMonitor
exceeded 1,200 companies, and it is currently used in 38 countries around the world. We also concluded business matching
agreements with financial institutions to provide support for overseas expansion of their customers, and our system is utilized to
discover and divert errors and frauds in the business performance control and accounting processing. We have already entered intobusiness matching agreements with nine financial institutions nationwide, and plan to continue expanding our partnership withother financial institutions.
As a result of these activities, the number of corporate groups using the TKC Consolidated Group Solution counted approximately
5,000 corporate groups as of the end of June 2022. With this, 91% of the 100 largest Japanese listed companies by sales amounts now
use our systems. The market shares among Japanese listed companies reached 42%.
(4) Expansion of markets for legal information database services(i) Increase of user base of TKC Law Library
To enhance user experience of legal research, we are offering package services of the TKC Law Library customized for law firms
and for corporate legal departments, which combine the Basic Services of the library containing judicial precedents, etc. with related
contents from specialized law magazines, etc. Due to the pandemic, working online has become a common practice today, andadopting these package services has now become the mainstream instead of conducting research at data rooms or libraries. As such,
the TKC Law Library which offers access to laws and regulations, judicial precedents, bibliographic information references andalso articles in major specialized law magazines, any time, from any place is now earning greater reputation, and as a result, thenumbers of users and contracts to access additional contents have grown.
Also, in June 2021, the Company launched a new optional service of the TKC Law Library called the Legal Book Search whichallows users to access PDF versions of books on specialized fields including laws, accounting, tax accounting, business
management, etc. This service is a fixed rate service for attorneys and others to access the free book search functions and view (forfee) the PDF versions on their tablets and PCs. We are continuing to add more accessible books and expanding the service
successfully with over 770 books as of the end of June 2022.
In the nine months ended June 30, 2022, as a result of online promotional activities towards TKC Member firms, universities, lawschools, government offices, law firms, patent offices and corporate legal departments, the number of users exceeded 57,000 IDs
and the Library is used by over 25,000 institutions as of June 30, 2022.
(ii) Promotion in the academic market
Due to the pandemic, many universities and law schools now conduct hybrid-style classes combining face-to-face and online
lectures. Our systems, such as the TKC Educational and Research Support System and TKC Law Library, can be accessed online
and used anytime, anywhere. They contain a huge number of diverse contents compared to those of other companies, and include
various functions such as report generation, exercises and testing. These features are being reconsidered as tools to support online
classes and learning for faculty and students. To date, the Company conducts web meetings with various universities as needed,
and continues to provide support in the development of online learning environments tailored to meet the situation of each
university.
Also, the online study tools (for civil service examination, practical business law examination, and jurisprudence examination)offered mainly to the faculty of law of universities have been adopted by 26 universities as of the end of June 2022. Currently,
many qualification examinations are adopting computer-based testing (CBT/IBT method). Therefore, we will promote the use of
our online testing functions and other effective online study tools to prepare for computer-based examinations among examination
bodies and applicants.
The TKC Nationwide Mock Exam for Bar Examination sponsored by the Company since 2014 received over 2,000 participants in
2022. It has been ranked the largest mock exam for five consecutive years, and over 60% of applicants for the FY2022 bar exam- 10 -

participated in the test. This shows that our mock exam is recognized by many students as a useful opportunity to test theirproficiency and ranks among fellow applicants in preparation for the bar exam.
4. Business activities and operating results of the Local Governments Business Division
The Local Governments BD operates in accordance with the business objectives set forth in the Articles of Incorporation (Article 2 Item
2: "Management of electronic data processing centers to improve the administrative efficiency of local governments") and offers
specialized information services in order to help promote the welfare of residents by improving administrative efficiency.
(1) Development and provision of mission-critical system-related services
The Company provides TKC Government Cloud Service to municipalities (mainly for cities, wards, towns and villages). This is a
cloud service that consists of the TASK Cloud Service which supports mission-critical functions and information services within
agencies, and the TASK Outsourcing Service which supports massive batch output and processing of tax papers and otherdocuments.
The TASK Cloud Service is a single version package system operated at TKC data centers that is designed to allow shared use bymultiple institutions. Service fees are charged in the form of fixed rate subscription fee depending on the scale of the municipality,
which also include one regular upgrade per year. Acknowledged for these benefits, the TASK Cloud Service has been adopted byapproximately 170 local municipalities as of the end of June 2022.
In the current period under review, we provided these client municipalities with aggressive support for their vaccination projects bypromptly offering systems for the COVID-19 Vaccine Booster Shots (3rd Dose).
(2) Support for digitalization of administrative services
In an aim to contribute to promoting digital transformation of local governments, the Company provides administrative service
digitalization support solutions which support local governments to achieve “no visiting, no waiting, no writing” administrative
counter services.
In the current period under review, we greatly enhanced the functionalities of the TASK Cloud Easy Counter Service System, the
TASK Cloud My Number Card Issuance Reservation and Management System, and the TASK Cloud Smart Application System.
As a result of proposing the effective utilization of these services, the TASK Cloud Smart Application System has been adopted byapproximately 30 agencies including government ordinance-designated cities such as Osaka, Yokohama, and Sakai cities, the TASKCloud Easy Counter Service System is used by nearly 40 agencies, and the TASK Cloud My Number Card Issuance Reservationand Management System is adopted by approximately 130 agencies as of the end of June 2022.
(3) Support for digitalization of local tax administrations
The Company is an authorized contractor of the Local Tax Agency, and provides a cloud-based service for the standard systems
such as inspection system for eLTAX (local tax portal system) offered by the Agency. We also develop and provide Data Connection
Services as our own functionality to connect the individual tax systems of each ward and municipality.
These services are proposed in collaboration with 50 partner companies with whom we have on-going alliance partner agreements.
As a result, our TASK Cloud Local Taxes Electronic Filing Support Service is currently used by approximately 780 agencies which
account for more than 40% of all prefectures and local municipalities as of the end of June 2022.
In the current period under review, we have been working to enhance the functionalities of our proprietary data connection services,and engaged in aggressive promotional activities and implementation support together with our partner companies.
(4) Support for the development of standardized local public accounting
The Company provides the TASK Cloud Public Accounting System, as local public accounting systems integrated with financial
accounting system which is compatible with the daily journalizing method encouraged by the Japanese government, and its related
systems TASK Cloud Non-current Assets Control System and TASK Cloud Consolidated Financial Statement Preparing System.
There is a section in the report by the Study Group on the Promotion of Local Public Accounting (FY2019) released by the Ministryof Internal Affairs and Communications in March 2020 that suggests: “It is believed that smooth implementation of the daily
journalizing method and reduction of checking tasks in year-end bulk journalizing can be achieved by implementing a local public
accounting system that has an integrated financial accounting system, linking, in advance, the budget items with account headings,
and by establishing a system that can journalize and convert the budget items automatically upon budget execution. It may also be
possible to streamline the ledger registration tasks by linking and integrating the data in the public domain ledger and data in the
fixed assets ledger.”
In light of these governmental policies, we encourage municipalities to consider implementing the TASK Cloud Public Accounting
System upon updating their system. It is a local public accounting system that is compatible with the daily journalizing method
recommended by the Japanese government.
In the current period under review, we started providing the next generation version of public accounting system with enhanced
functions to help the municipalities achieve sustainable administrative management including features such as accurate visualizationof financial status and utilization of accounting data.

- 11 -

As a result, our local public accounting systems are adopted by approximately 300 agencies as of the end of June 2022.
(5) Research and development of next-generation products
The COVID-19 pandemic has highlighted the delay in digitalization and moving online in administrative areas. In response, thegovernment formulated the Basic Policy on Economic and Fiscal Management and Reform 2020 (Cabinet Decision of July 2020)
in which it positioned all-out promotion of a digital government as top priority, and accelerated its efforts of digitalization to move
administrative procedures online and make them one stop and once only. Also, on December 25, 2020, the Ministry of Internal
Affairs and Communications announced the Local Governments Digital Transformation (DX) Promotion Plan, and six legislative
bills on digital reform were adopted on May 12, 2021. With these policies, local governments throughout Japan are mandated tostandardize and commonalize their information systems by March 31, 2026.
To respond to changes in the environment surrounding our customers, the Company set up a new Local Government DX Promotion
Headquarters as of November 1, 2021, and is working to accelerate the planning and development of new products and services aswell as to strengthen customer support including the collection and communication of the latest information.
Also, in the current period under review, a joint proposal of clients of the Company (Misato Town and Kawajima Town, Saitama
Pref.) was selected for the Government Cloud Predecessor Project procured by the Digital Agency of Japan. The Company began
working on the Project with both towns as application vendors. We are also continuing to conduct surveys, research and development
on next-generation solutions through, for example, experimental projects with advanced organizations, to support the digitalizationof administrative services.
5. Business activities and operating results of the Printing Business Division
The Group’s Printing BD operates with the main focus on data print services (hereinafter, “DPS”), business form printing, and printingof commercial-use creative materials.
In the area of DPS, net sales increased compared to the previous year thanks to orders from local municipalities for the printing of entry
tickets for the elections of members of the Lower House and members of the Upper House, vaccination vouchers under their COVID19 vaccination projects, and notices for special cash payments for households exempted from inhabitant tax, and orders for various tax
form projects. The Printing BD also improved productivity and profit margins by promoting in-house manufacturing of direct mails forprivate companies through the installation of new facilities.
In the area of business form printing, demands for business forms continue to decrease in light of paperless trends. Meanwhile, net sales
increased slightly compared to the previous year as a result of winning new contracts for the printing of business forms related to theMedical Care System for Old Senior Citizens.
In the area of commercial-use creative materials (catalogs, books, etc.), net sales increased year-on-year thanks to orders for the printingof books and other materials explaining the new system under the Revised Electronic Books Maintenance Act, measures for the newconsumption tax invoicing system, and the 2022 tax system revisions.

- 12 -

II. Financial Conditions
Assets, liabilities and net assets at the end of the current 3rd quarter consolidated accounting period are stated below.
1. Assets
Total assets as of the end of the current 3rd quarter consolidated accounting period amounted to 104,284 million yen, an 877 million
yen increase compared to 103,406 million yen as of the end of the previous consolidated fiscal year.
(1) Current assets
Current assets as of the end of the current 3rd quarter consolidated accounting period amounted to 37,369 million yen, a 1,261
million yen increase compared to 36,107 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a 1,011 million yen increase in accounts receivable included in notes, accounts receivable, andcontract assets, and a 240 million yen increase in cash and deposits.
(2) Non-current assets
Non-current assets as of the end of the current 3rd quarter consolidated accounting period amounted to 66,915 million yen, a
383 million yen decrease compared to 67,298 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to an 865 million yen decrease in long-term deferred tax assets included in Other, a 421 million
yen decrease in tools, furniture & fixtures included in Other (net amount), a 341 million yen decrease in buildings and structures(net amount), a 254 million yen decrease in long-term lease investment assets included in Other, and a 264 million yen decrease
in investment securities, despite a 1,100 million yen increase in long-term deposits and a 581 million yen increase in intangible
assets.
2. Liabilities
Total liabilities as of the end of the current 3rd quarter consolidated accounting period amounted to 17,710 million yen, a 2,279
million yen decrease compared to 19,990 million yen as of the end of the previous consolidated fiscal year.
(1) Current liabilities
Current liabilities as of the end of the current 3rd quarter consolidated accounting period amounted to 12,487 million yen, a2,234 million yen decrease compared to 14,721 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a 2,527 million yen decrease in provisions for bonuses, a 1,199 million yen decrease in income
taxes payable, and a 317 million yen decrease in accounts payable–other, despite an 824 million yen increase in deposits
received included in Other, a 343 million yen increase in accrued expenses included in accounts payable–other, and a 205
million yen increase in electronically recorded obligations–operating.
(2) Non-current liabilities
Non-current liabilities as of the end of the current 3rd quarter consolidated accounting period amounted to 5,223 million yen, a
45 million yen decrease compared to 5,268 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a 103 million yen decrease in long-term lease obligations included in Other, despite a 115
million yen increase in retirement benefit liabilities.
3. Net assets
Total net assets as of the end of the current 3rd quarter consolidated accounting period amounted to 86,573 million yen, a 3,157
million yen increase compared to 83,416 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to an increase of 4,139 million yen in retained earnings, despite decrease in net assets as a result of
a 1,007 million yen increase in treasury stocks.
Equity ratio as of the end of the current 3rd quarter consolidated accounting period was 83.0%, a 2.3 percentage point increase
compared to the ratio of 80.7% as of the end of the previous consolidated fiscal year.
III. Operational and Financial Challenges Facing the TKC Group
There are no significant changes in challenges faced by the TKC Group during the nine months ended June 30, 2022.
IV. Research and Development Activities
There were no research and development expenses spent by the TKC Group during the nine months ended June 30, 2022.
There are no significant changes in the status of research and development activities of the TKC Group during the nine months ended
June 30, 2022.

- 13 -

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

- 14 -

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 3rd quarteraccounting period (shares)(June 30, 2022)

Number of shares issued asof the filing date (shares)(August 12, 2022)

Common stock

53,462,066

53,462,066

Total

53,462,066

53,462,066

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

Description

Number of sharesconstituting a unit:
100 shares

Tokyo Stock Exchange
Prime Market－－(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.]

Date

April 1, 2022June 30, 2022

Increase or
decrease intotal number
of issued
shares(shares)

Balance of
total number
of issued
shares(shares)－

53,462,066

Increase or
decrease incapital stock(millions ofyen)－

Balance ofcapital stock(millions ofyen)

Increase or
decrease incapital reserve(millions ofyen)

Balance ofcapital reserve(millions of
yen)

5,700

－

5,409

(5) [Major shareholders]
There is nothing applicable to be disclosed as the current quarter is the 3rd quarter accounting period.

- 15 -

(6) [Status of voting rights]
The status of voting rights as of the end of the current 3rd quarter accounting period indicated hereunder are based on theshareholders registry as of the most recent record date (March 31, 2022) because the content of the shareholders registry cannot
be confirmed.
(i) [Shares issued]
As of March 31, 2022
Classification

Number of shares (shares)

Number of voting rights(units)

－

－

－

－

－

－

－

－

－

829,300－－

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

52,555,300

525,553－

Shares less than one share unit

Commonstock

77,466－－53,462,066

－

－

－

525,553－

Total number of issued shares
Total voting rights held by all shareholders(Note) Shares with full voting right (others) includes 1,300 shares (13 units of voting rights) registered in the name of Japan Securities
Depository Center, Inc., and 215,200 shares (2,152 units of voting rights) owned by the BIP Trust.
(ii) [Treasury stock, etc.]

Name of shareholder

TKC Corporation

Address ofshareholder
1758 Tsurutamachi,
Utsunomiya-shi,

As of March 31, 2022
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)

829,300－

829,300

1.55

829,300－

829,300

1.55

Tochigi
Total－(Note) In addition to the above, the 215,200 shares owned by the BIP Trust are recorded as treasury stocks. The number of treasury
stocks owned by the BIP Trust as of the end of the current 3rd quarter accounting period was 206,000 shares.

2 [Officers]
There has been no change in the officers during the nine months ended June 2022 since the date of submission of the Annual
Securities Report for the previous fiscal year.

- 16 -

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
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 3rd quarter consolidated accounting period (from April 1,
2022 to June 30, 2022) and the nine months ended June 30, 2022 (from October 1, 2021 to June 30, 2022) have been audited by
Ernst & Young ShinNihon LLC pursuant to the provision of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange
Act of Japan.

- 17 -

1 [Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Unit: millions of yen)
Current 3rd quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2021)(June 30, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
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 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- 18 -

26,426
6,973
－
412
2,309
(14)
36,107

26,666
－
8,276
501
1,935
(11)
37,369

7,855
6,802
2,882
17,540
3,605

7,513
6,802
2,567
16,884
4,186

19,705
16,6001,440
8,406
46,152
67,298103,406

19,441
17,7001,479
7,223
45,844
66,915104,284

2,402
834
80
3,034
2,211
－
4,073
2,083
14,721

2,085
1,039
71
2,689
1,011
834
1,546
3,209
12,487

214
3,554
307
1,192
5,268
19,990

178
3,669
306
1,068
5,223
17,710(Unit: millions of yen)
Current 3rd quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2021)(June 30, 2022)
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Accumulated remeasurements of defined benefit
plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 19 -

5,700
6,589
73,411(1,352)
84,3485,700
6,589
77,551(2,359)87,481449

343(1,382)(1,251)(932)
83,416
103,406(907)
86,573
104,284

(2) [Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income][Quarterly consolidated statements of income][Nine months ended June 30, 2022](Unit: millions of yen)
Nine months ended June 30, 2021 Nine months ended June 30, 2022
(Started October 1, 2020;(Started October 1, 2021;
ended June 30, 2021)
ended June 30, 2022)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Insurance dividends income
Land and house rent received
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of securities
Foreign exchange losses
Surcharges
Penalties
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gains on sales of non-current assets
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Quarterly net income before taxes and adjustments
Income taxes–current
Income taxes–deferred
Total income taxes
Quarterly net income
Quarterly net profit (loss) attributable to owners of parent- 20 -

49,587
14,28835,29823,796
11,50250,34014,53935,801
24,144
11,656

39
150
12
38
65
306

51
176
18
37
70
354

0
0
0
－
－
－
0
11,808

0
－
－
20
46
1
68
11,941

1
8
0
10

2.
－
－
2.

22
15
89
126
11,692
2,700
1,030
3,730
7,961
7,961

－
24
－
24
11,919
2,940
853
3,794
8,125
8,125

[Quarterly consolidated statements of comprehensive income][Nine months ended June 30, 2022](Unit: millions of yen)
Nine months ended June 30, 2021 Nine months ended June 30, 2022
(Started October 1, 2020;(Started October 1, 2021;
ended June 30, 2021)
ended June 30, 2022)
Quarterly net income
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of retirement benefits
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of parent- 21 -

7,961

8,125

791
128
920
8,881

(106)
130
24
8,149

8,881

8,149

[Notes to the Quarterly Consolidated Financial Statements](Changes in Accounting Policies)
The Company has decided to apply the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4,2019) (hereinafter, “Fair Value Measurement Accounting Standard”) etc., from the beginning of the 1st quarter consolidated
accounting period. Further, in accordance with the transitional measures set forth in Section 19 of said Fair Value Measurement
Accounting Standard and Section 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July4, 2019), the Company will apply the new accounting policies under the Fair Value Measurement Accounting Standard, etc.
in the future. There are no impacts on the quarterly consolidated financial statements.
(Additional Information)(Application of Revenue Recognition Accounting Standard, etc.)
The Company applies the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)(hereinafter, “Revenue Recognition Accounting Standard”) etc. from the beginning of the 1st quarter consolidated accounting
period.
As a result of applying the Revenue Recognition Accounting Standard, “Notes and accounts receivable–trade” under “Current
assets” in the consolidated balance sheets for the previous consolidated fiscal year will be included and presented under “Notes,
accounts receivable, and contract assets” from the 1st quarter consolidated accounting period, and “Contract liabilities” thatwas included in “Other” under “Current liabilities” will be presented as an independent item. Note that, in accordance withthe transitional measures set forth in Section 89-4 of the Revenue Recognition Accounting Standard, the figures for theprevious consolidated fiscal year have not been restated based on the new presentation method.
Moreover, in accordance with the transitional measures set forth in Section 28-15 of the Accounting Standard for the Quarterly
Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on disaggregation of revenue from contracts withclients in the nine months ended June 30, 2021 is not presented herein.
(Stock-based Compensation Plan for Officers)
1. Outline of Transaction
Based on the resolution of the Board of Directors’ Meeting held on October 31, 2018 followed by approval at the Ordinary
General Meeting of Shareholders held on December 21, 2018, the Company introduced a stock-based compensation plancalled “BIP Trust.” The objectives of the plan are to clarify the linkage between the Company’s shareholder value and the
remuneration for Directors, etc. and to motivate Directors, etc. to contribute more to enhancing the medium- to long-term
corporate value by sharing common interest with shareholders, including not only the merit derived from the rising shareprice, but also the risk associated with the decline in share price.
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 the members are independent Outside Directors andoutside experts, and 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 with the book values in thetrust (not including expenses attributable thereto). The book value of said treasury stocks was 407 million yen for 206,000
shares as of the end of this current 3rd quarter consolidated accounting period.
(Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to Group Tax Sharing
System)Based on the treatment set forth under Item 3 of the Treatment of Tax Effect Accounting for the Transition from theConsolidated Taxation System to the Group Tax Sharing System (Practical Solution No. 39, March 31, 2020), the Company
and its consolidated subsidiaries do not implement the provisions of Paragraph 44 of the Implementation Guidance on
Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, February 16, 2018) for items that were transitioned
to the group tax sharing system which was established in the Law for Partial Revisions to the Income Tax Act, etc. (Law No.
8 of 2020) and items that were revised under the non-consolidated taxation system in line with the transition to the group tax
sharing system. The amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the Tax Act prior
to revisions.

- 22 -

(Notes to the Quarterly Consolidated Statements of Cash Flows)
The Company does not prepare the quarterly consolidated statements of cash flows for the nine months ended June 30, 2022. The
depreciation (including amortization of intangible assets) for the nine months ended June 30 is as follows:
Nine months ended June 30, 2021
(Started October 1, 2020;
ended June 30, 2021)

Nine months ended June 30, 2022
(Started October 1, 2021;
ended June 30, 2022)

2,172 million yen

2,298 million yen

Depreciation(Shareholders’ Equity, etc.)

I. Nine months ended June 30, 2021 (Started October 1, 2020; ended March 31, 2021)
Dividend payments
Total amount of
Dividend per
Resolution
Type of shares cash dividends
Record dateshare (yen)(millions of yen)
December 18, 2020
Ordinary General
Meeting of

Effective date

Source ofdividends

Common stock

1,720

65

September 30, 2020

December 21, 2020

Retainedearnings

Common stock

1,720

65

March 31, 2021

June 14, 2021

Retainedearnings

Shareholders
May 7, 2021
Meeting of theBoard of Directors(Notes) 1. The total amount of cash dividends determined by resolution of the Ordinary General Meeting of Shareholders on December
18, 2020 includes a cash dividend of 12 million yen to the stocks of the Company owned by the BIP Trust.
2. The total amount of cash dividends determined by resolution of the Board of Directors on May 7, 2021 includes a cash
dividend of 7 million yen to the stocks of the Company owned by the BIP Trust.
3. The Company conducted a stock split of its common shares at a ratio of 1:2 as of April 1, 2021. The dividend per share shows
the amount prior to the stock split.

II. Nine months ended June 30, 2022 (Started October 1, 2021; ended June 30, 2022)
Dividend payments
Resolution
December 17, 2021
Ordinary General
Meeting of
Shareholders
May 10, 2022
Meeting of the

Total amount of
Dividend perType of shares cash dividends
share (yen)(millions of yen)

Record date

Effective dateCommon stock

2,090

39.50

September 30, 2021

December 20, 2021

Common stock

1,894

36.00

March 31, 2022

June 13, 2022

Board of Directors

Source ofdividends
Retainedearnings

Retainedearnings(Notes) 1. The total amount of cash dividends determined by resolution of the Ordinary General Meeting of Shareholders on December
17, 2021 includes a cash dividend of 8 million yen to the stocks of the Company owned by the BIP Trust.
2. The total amount of cash dividends determined by resolution of the Board of Directors on May 10, 2022 includes a cash
dividend of 7 million yen to the stocks of the Company owned by the BIP Trust.

- 23 -

(Segment Information, etc.)[Segment information]
I. Nine months ended June 30, 2021 (Started October 1, 2020; ended March 31, 2021)
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 ofincome(Note 2)

Accounting
Firm BD

Local
Governmen
ts BD

Printing BD

33,341

13,8382,408

49,587－49,587

4

0

1,698

1,702

(1,702)－

Total

33,345

13,8384,106

51,290(1,702)

49,587

Segment profit

9,050

2,298

147

11,495

6

11,502Total

Net sales(1) Sales to outside customers(2) Inter-segment sales ortransfers(Notes) 1. Adjustments of segment profit of 6 million yen include amounts for elimination of inter-segment transactions and for
adjustments of inventory assets, etc.
2. Segment profit is adjusted with the operating profit presented in the Quarterly Consolidated Statements of Income.

II. Nine months ended June 30, 2022 (Started October 1, 2021; ended June 30, 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 ofincome(Note 2)

Accounting
Firm BD

Local
Governmen
ts BD

Printing BD

33,913

13,9282,497

50,340－50,340

4

0

1,893

1,897

(1,897)－

Total

33,91813,928

4,391

52,238(1,897)50,340

Segment profit

9,375

1,912

370

11,659(3)

11,656Total

Net sales(1) Sales to outside customers(2) Inter-segment sales ortransfers(Notes) 1. Adjustments of segment profit of -3 million yen include amounts for elimination of inter-segment transactions andadjustment of inventory assets, etc.
2. Segment profit is adjusted with the operating profit presented in the Quarterly Consolidated Statements of Income.

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(Revenue Recognition)
Net sales of the Company are primarily revenue recognized from contracts with clients. The Company’s reportable segments canbe disaggregated into the following goods and services:
Nine months ended June 30, 2022 (Started October 1, 2021; ended June 30, 2022)(Unit: millions of yen)
Reportable segment
Total

Accounting Firm
BD

Local
Governments BD

Revenue from computer services

11,982

6,938－

18,921

Software sales

13,412

4,588－

18,001

Revenue from consulting

5,036

468

－

5,505

Office equipment sales

2,703

1,932

－

4,636

Accounting supplies sales

778

－

－

778

Revenue from printing-related services

－

－

2,497

2,497

33,913

13,9282,497

50,340

Sales to outside customers

Printing BD(Earnings Per Share Information)
The amount of quarterly net income per share and the basis for the calculation thereof are as follows:
Nine months ended June 30, 2021 Nine months ended June 30, 2022
(Started October 1, 2020;(Started October 1, 2021;
ended March 31, 2021)
ended June 30, 2022)
Quarterly net income per share151.19 yen

154.88 yen

7,961

8,125

－

－

7,961

8,125

526,543524,615(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 ofyen)
Average number of common stocks outstanding(hundreds of shares)(Notes) 1. The average number of stocks outstanding used in the calculation of earnings per share information has been determinedby including the stocks of the Company owned by the BIP Trust (which has been established with the introduction of the
BIP Trust plan) as deductible treasury stocks.
The average numbers of said treasury stocks outstanding deducted for the calculation of quarterly net income per share
were 279,391 shares for the nine months ended June 30, 2021, and 215,250 shares for the nine months ended June 30,2022.
2. The quarterly diluted net income per share is not stated as there were no dilutive shares.
3. The Company conducted a stock split of its common shares at a ratio of 1:2 as of April 1, 2021. The quarterly net income
per share has been calculated assuming that the stock split was conducted at the beginning of the previous consolidated
fiscal year.
(Material Subsequent Events)
None to be disclosed.

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2 [Other]
The resolution regarding the current interim dividends was adopted at the Board of Directors’ meeting held on May 10, 2022,
stated as follows.
(a) Total amount of cash dividends to be paid as interim dividends

1,894 million yen(b) Dividend per share

36.00 yen(c) Effective date for payment claim and commencement date for payment

June 13, 2022

(Note) Dividends have been paid to the shareholders listed or recorded on the Register of Shareholders as of March 31, 2022.

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

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Quarterly Review Report of Independent Auditors
August 12, 2022

TKC Corporation
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, the quarterly consolidated statements of income, the quarterly consolidated statements of comprehensive income, andnotes of TKC Corporation applicable to the 3rd quarter consolidated accounting period (from April 1, 2022 to June 30, 2022) and thenine months ended June 30, 2022 (from October 1, 2021 to June 30, 2022) of the consolidated fiscal year started October 1, 2021 andending September 30, 2022.
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 June 30, 2022, and their financial performance for the nine months then ended in conformity withaccounting principles of quarterly consolidated financial statements generally accepted in Japan.
Basis for Auditor's Conclusion
We conducted our quarterly review in accordance with 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 theQuarterly 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 fulfilled our other ethical responsibilities as the auditors. We
believe that we have obtained evidence to provide a basis for our conclusion.
Responsibilities of Management, Corporate Auditors and Board of Auditors for the Quarterly Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the quarterly consolidated financial statements in accordancewith principles setting forth the preparation and properly presentation of the quarterly consolidated financial statements generally
accepted in Japan. Responsibilities include those for designing and operating such internal control as management determines isnecessary to enable the preparation and fair presentation of the 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, as required by accounting principles of quarterly consolidated financial statements generally acceptedin Japan, matters related to going concern.
Corporate auditors and the Board of Auditors are responsible for overseeing the execution of duties by Directors in designing andimplementing the Group’s financial reporting process.
Auditor’s Responsibilities for the Quarterly Review of the Quarterly Consolidated Financial Statements
Our responsibility is to express a conclusion on the quarterly consolidated financial statements in our quarterly review report from 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 quarterly review procedure is a limited procedure compared to the procedure- 28 -

of annual financial statements performed in accordance with auditing standards generally accepted in Japan.
・ If we determine that a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability
to continue as a going concern, we conclude, based on the evidence obtained, whether anything has come to our attention that causes
us to believe that the quarterly consolidated financial statements are not properly presented in accordance with principles for the
preparation of quarterly consolidated financial statements generally accepted in Japan. If we conclude that such material uncertainty
exists, we are required to draw attention in our quarterly review report to the related notes in the quarterly consolidated financial
statements or, if such notes about the material uncertainty are inadequate, to express a conclusion with limitations or negative
conclusion on the quarterly consolidated financial statements. Our conclusions are based on the evidence obtained up to the date ofour 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 and notes of the quarterly
consolidated financial statements are not in accordance with 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 and content of the quarterly consolidated financial statements, including the related notes thereto, nor thequarterly consolidated financial statements do not represent the underlying transactions and events in a manner that achieves fairpresentation.
・ 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 conclusions.
We communicate with corporate auditors and the Board of Auditors regarding the planned scope and timing of the quarterly review andsignificant 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, and where applicable, related safeguards to eliminate or mitigate factors that may hinder our independence.

Conflicts of Interest
Our firm and the executing partners have no interest in the Company or its consolidated subsidiaries which 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 stored by TKC Corporation (the Company filing this quarterly
report).
2. XBRL data is not included in the scope of this quarterly review.

- 29 -

[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]

August 12, 2022

[Company name]

Kabushiki Kaisha TKC[Company name in English]

TKC Corporation[Title and name of representative][Title and name of Chief Financial Officer]

Masanori Iizuka, Representative Director, President and Executive 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 Ageba-cho, Shinjuku-ku, Tokyo)
Tokyo Stock Exchange, Inc.
(2-1 Nihonbashikabutocho, Chuo-ku, Tokyo)- 30 -

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 3rd quarter of the56th term (started April 1, 2022; ended June 30, 2022) are adequate under the Financial Instruments and Exchange Act of Japan.

2 [Special Notes]
None to be disclosed.

- 31 -