Quarterly Report(56th Term 1st Quarter)
Started October 1, 2021
Ended December 31, 2021

TKC Corporation
1758 Tsurutamachi, Utsunomiya-shi, Tochigi- 1 -Table of Contents
Page[Front Cover]Section 1 [Information on the Company] ............................................................................................................................................... 4
Part 1[Overview of the Company] ................................................................................................................................................... 4

1[Key Financial Data]............................................................................................................................................................... 4

2[Description of Business] ....................................................................................................................................................... 4

Part 2[Business Overview]............................................................................................................................................................... 5

1[Risk Factors] ......................................................................................................................................................................... 5

2[Management Analysis of Consolidated Financial Conditions, Operating Results, and Cash Flows] .................................... 53[Material Agreements, etc.] .................................................................................................................................................. 13

Part 3[Information on the Company] ............................................................................................................................................. 14

1[Information on the Company’s Stock] ................................................................................................................................ 14(1)[Total number of shares, etc.] ...................................................................................................................................... 14(2)[Share subscription rights, etc.] ................................................................................................................................... 14(3)[Exercise of bonds with share subscription rights containing a clause for exercise price adjustment, etc.]................. 14(4)[Changes in total number of issued shares, capital stock, etc.] .................................................................................... 14(5)[Major shareholders] ................................................................................................................................................... 14(6)[Status of voting rights] ............................................................................................................................................... 15

2[Officers] .............................................................................................................................................................................. 15Part 4[Financial Information]......................................................................................................................................................... 16

1[Quarterly Consolidated Financial Statements] .................................................................................................................... 17(1)[Quarterly consolidated balance sheets] ...................................................................................................................... 17(2)[Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income] ..... 19[Quarterly consolidated statements of income] ........................................................................................................... 19[Quarterly consolidated statements of comprehensive income] .................................................................................. 20

2[Other] .................................................................................................................................................................................. 24

Section 2 [Information on Guarantors, etc. of the Company] ............................................................................................................... 25[Quarterly Review Report] [Confirmation Letter]- 2 -[Front Cover][Document filed]

Quarterly Report[Applicable law]

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

Director of Kanto Local Finance Bureau[Date filed]February 14, 2022

[Quarterly accounting period]

56th Term 1st Quarter (from October 1, 2021, to December 31, 2021)[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]
55th Term
1st quarter consolidated
cumulative periodTerm & Period

56th Term
1st quarter consolidated
cumulative period

55th Term

Started October 1, 2020; Started October 1, 2021; Started October 1, 2020;
ended December 31, 2020 ended December 31, 2021 ended September 30, 2021

Accounting period

Net sales(millions of yen)

14,837

15,292

66,221

Ordinary income(millions of yen)

2,816

3,242

12,673(millions of yen)

1,873

2,228

8,686

income or comprehensive
income(millions of yen)

2,213

2,117

9,839

Net assets(millions of yen)

77,291

82,40983,416

Total assets(millions of yen)

93,79998,860103,406

(yen)

35.64

42.41

164.93

(yen)

－

－

－

(%)

82.4

83.4

80.7

Quarterly (current) net income
attributable to owners of parent
Quarterly comprehensive

Quarterly (current) net income
per share
Quarterly (current) diluted net
income per share
Equity ratio(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) for the current 1st quarter consolidated cumulative period. There are no changes in the major affiliated companies.

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

2 [Management Analysis of Consolidated Financial Conditions, Operating Results, and Cash Flows]
I. Operating Results
The Japanese economy during the 1st quarter consolidated cumulative period under review (“current 1st Quarter”) has seen gradual
recovery as the fifth wave of the novel coronavirus (COVID-19) pandemic peaked out. Meanwhile, the spread of omicron variant
abroad, rise in costs of materials and components due to the fragmented supply chain, soaring crude oil prices, etc. are graduallyposing serious impacts on future economic activities.
In such situations, the Japanese government is aiming to resume the socio-economic activities by preparing various measures tosupport the people and SMEs such as offering booster vaccination. The Group continued to contribute to the local communities andsociety by quickly complying with such governmental initiatives and offering compatible systems and services.
The Accounting Firm Business Division continued to support certified public tax accountants and certified public accountants thatare customers of TKC (hereinafter, “TKC Members”) in their efforts to provide their clients with financing and managerial advisory
services as escort supporters of SMEs. We also support SMEs in going digital and reducing the burdens of accounting operations
by providing cloud-based 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 Ministry of Health, Labour and Welfare, including services for the production of COVID-19 vaccination vouchers and provisionof vaccination reservation & registration systems, thereby supporting customer local municipalities in their COVID-19 vaccination
projects.
As a result of these activities, the operating results for the 1st quarter consolidated cumulative period under review (“current 1st
Quarter”) of the consolidated Group comprising TKC Corporation and its six consolidated subsidiaries recorded a net sales of 15,292
million yen (increased 3.1% year-on-year), operating income of 3,091 million yen (increased 15.7% year-on-year), ordinary incomeof 3,242 million yen (increased 15.1% year-on-year), and quarterly net income attributable to owners of parent of 2,228 million yen(increased 18.9% year-on-year).
Net sales for the current 1st Quarter by business division are shown below.
1. Results of operation for the 1st Quarter(1) Net sales of the Accounting Firm Business Division
Net sales of the Accounting Firm BD were 10,638 million yen (increased 0.1% year-on-year); operating income was 2,807
million yen (increased 6.6% year-on-year). Breakdown of sales is as follows:(i) Sales from computer services increased by 3.7% year-on-year. Medium-size companies are rapidly working towards digitaltransformation (DX), and in such climate, this was attributable to the continuing growth in number of implementations of the
FX4 Cloud Integrated Accounting Information System for mid-size companies, which enables the linking of sales management
systems, salary calculation systems and other business systems with accounting data, and the increase in the number ofaccounting 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.
(ii) Software sales increased by 2.5% 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 1.1% 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 decreased by 20.5% year-on-year. This was due to decrease in number of PC sales, as Internet banking services
offered by financial institutions are not yet compatible with Windows 11 and customers are still waiting to replace their PCs
to the newest models.
(v) Sales from supplies decreased by 10.4% year-on-year. While sales of office equipment for remote works and COVID-19- 5 -infection prevention goods were strong, more clients are now using self-accounting and moving to paperless operations, anddemands 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
profit margins, while sales of hardware and 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 3,907 million yen (increased 10.9% year-on-year); operating income was 354
million yen (increased 67.0% year-on-year). Breakdown of sales is as follows:(i) Sales from computer services increased by 13.7% 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 increased by 10.1% year-on-year. This was due to new contracts for revision of system for special cash
payments to support households raising children, and increase in software usage fees by new clients whose systems orderedin the previous fiscal year were fully launched.
(iii) Sales from consulting services increased 66.4% year-on-year. This was a result of increase in sales from system
implementation support fees from orders for new services.
(iv) Hardware sales decreased by 4.4% year-on-year. Sales were impacted from delay in delivery of office equipment due to global
shortage of semiconductors.
(v) The increase in operating income year-on-year was a result of new contracts for services for the production of notices for theabove-mentioned COVID-19 vaccination projects, and increase in data center service usage fees and software usage fees.
(3) Net sales of the Printing Business Division (Subsidiary: TLP Corporation)
Net sales of the Printing BD were 746 million yen (increased 9.3% year-on-year); operating loss was 62 million yen (operating
loss was 170 million yen in the 1st quarter of the previous fiscal year). Breakdown of sales is as follows:(i) Sales of data printing service-related products increased by 30.9% year-on-year. While demands for direct mail communication
among private enterprises have not recovered yet due to impacts of the COVID-19 pandemic, the increase was due to winning
contracts for the printing of entry tickets for the election of members of the House of Representatives, vouchers for COVID19 vaccination by local municipalities, and notices for special cash payments for households raising children.
(ii) Business form-related sales decreased by 9.9% year-on-year. This is due to the trends for digitalization, decreasing demands
for business forms as a result of digital transformation initiatives by client companies.
(iii) Sales of printing of commercial-use creative materials (catalogs, books, etc.) increased by 20.9% year-on-year. This was due
to winning many new contracts for the printing of books and other materials explaining the new system under the RevisedElectronic Books Maintenance Act and new invoicing system, despite decrease in demands for various printed materials usedin events and seminars impacted by COVID-19 pandemic.
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 is taking the following infection
prevention measures and adaptation 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) By introducing teleworking and staggered working hour programs, in principle we encourage employees in areas subject todeclaration of state of emergency and pre-emergency measures to work from home. We also make it a general rule to utilize
Web meeting systems for customer support and business meetings.
(2) Selection of Prime Market for the new market segment
The Company resolved at the meeting of the Board of Directors held in November 2021, to select the Prime Market under the
new market segments on the Tokyo Stock Exchange, Inc.

- 6 -(3) Disclosure of Sustainability Policy
In hope to hand over a sustainable society to the next generations, the Company is engaged in various social contribution
activities. We undertake activities in the academic and educational fields including exhibits of tax-related literature and materials
that are relevant to our business activities, and also provide support to promote sports and culture in our hometown, Tochigi
Prefecture. On December 17, 2021, we formulated the Sustainability Policy setting forth the action guidelines for these
initiatives, and made it available through our website.
(4) Launched the OMS Electronic Signature System
Starting in December 2021, we began offering the OMS Electronic Signature System for users of the OMS Cloud system foraccounting firms. This System enables accounting firms and client companies to use electronic signatures in obtaining mutual
consent on consulting contracts, acknowledgment letters, confirmation letters, etc. to be entered between them.
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 fateof accounting 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 December 31, 2021) that are customers of TKC.
(1) Activities to achieve “positive balance” and “proper filing”(i) Support of SMEs affected by COVID-19 pandemic
During the current 1st Quarter under review, the Company aggressively engaged in support activities 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 to TKC Members, the Company offers on-demand webinars on the latest information and systems
over the exclusive Intranet (ProFIT) for TKC Members. We began this activity on February 25, 2020, and posted a totalof 256 entries as of the end of December 2021.
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. TKC Members are able to send out information on
emergency financial measures widely across clients and other SMEs. As of the end of December 2021, the website had
7,734 entries on support policies and is the largest database dedicated to SME support policies in Japan.
The corner has been 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 ofa 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.
4) Provision of TKC Monthly Indicators (Monthly BAST)
We offer our TKC Monthly Indicators (hereinafter “Monthly BAST”) free of charge. Monthly BAST is a statisticalsummary unprecedented in Japan which contains the monthly settlement data of over 250,000 companies. The reliabilityof the monthly settlements contained is verified through the monthly field audits conducted by TKC Members. Users canview the latest information on the shift of sales and loans, etc. of companies, on a nation-wide scale or by prefecture, by
annual revenue, or by industry. The Monthly BAST is utilized by those in charge of supporting SMEs at financial
institutions and administrative agencies, and economists analyzing the trends of SMEs, in determining measures to support
SMEs going forward.
(ii) Sales activities to achieve TKCNF’s Strategic Targets 2021
1) Promotion of TKC Monitoring Information Service- 7 -TKC Monitoring Information Service is a free cloud-based service in which the TKC Members, upon request by the
management of 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 be made 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:
i. Supporting documents submitted by TKC Members as provided for under Article 33-2 of the Certified Public Tax
Accountant Act of Japan
ii. 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 and tax returns for the past three years
iii. 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, the number of financial institutions adopting this Service is increasing rapidly, adopted by
470 financial institutions including all local banks throughout Japan (64 institutions) as of December 31, 2021. Also, as ofDecember 31, 2021, we largely surpassed the target of 280,000 cases set in TKCNF’s Strategic Targets 2021, and achieved
over 290,000 cases.
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 highacclaims 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.
2) Promotion of self-accounting by the TKC methods (promotion of FX series)
Many SMEs are in need to plan for repaying the virtually interest-free, no-collateral loans from government-affiliated andprivate financial institutions. Recognizing these needs, during the current fiscal year, we continued to provide 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 these functions effectively, they needto enter the accounting transaction data in a timely and accurate manner, so the Company also provided support on
functions for daily task level, including support for the bank credit data receiving function to receive bank deposit
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 FX Cloud series, our cloud-based financial accounting system, tends to access thesystem quite frequently 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 more than 290,000 companies as of December 31,
2021.
3) 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 andrevisions to the accounting data (traceable) (electronic books that satisfy the requirements of Article 2 and Article 5 of theOrdinance 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 requirementsof Article 2 of the Ordinance for Enforcement of the revised Act). This legal reform negates “the power of evidence” ofthe books, and the acceptance of such “other electronic books” implies that the government has approved the use ofaccounting software that might enable falsification of books. To counter this issue, the Company supports theimplementation 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 mustcomply with the obligation within two years. As of January 2022, the FX series has been equipped with a standard function
to enable electronic storage of transaction data in electromagnetic form.

- 8 -4) Supporting complete compliance with the new invoicing system
A new invoicing system will be implemented on October 1, 2023. Taxable business entities must prepare for the new
invoicing system by the time the new system 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 SMEs, we are developing on-demand seminars, offering referencematerials, and planning other supports.
5) Soliciting new members (promotion of joining TKCNF)
TKCNF has been engaged in a project to increase TKC membership to over 10,000 firms by the end of December 2021.
The Company worked closely with the New Members Service Committee and other members of TKCNF in soliciting newmembers through activities such as active hosting of webinars to achieve this goal.
As a result of these activities, the number of TKC Member firms totaled approximately 9,800 accounting firms (11,500
accountants) as of December 31, 2021. The difference in numbers of firms and accountants are because some firms havemultiple 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
SME clients should comply.
These Guidelines have been formulated based on the following principles: i) accounting that helps to grasp the company's
business situation; ii) accounting that contributes to providing information to stakeholders (financial institutions, etc.); iii)
accounting that complies with the Ordinance on Company Accounting while achieving harmony between accounting andtaxation system; and iv) 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
to promote 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 centerswhen TKC Members access our accounting system to issue a Certificate of Bookkeeping Timeliness free of charge. This
Certificate serves as reference for financial institutions and other third parties to objectively evaluate the business performanceof TKC Member firms.
This service was developed in an aim to improve reliability of financial statements and tax returns prepared by TKC Members
and to 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 topast data, and TKC Corporation proves, as a third party, that TKC Members have visited clients on a monthly basis to provide
guidance on accurate bookkeeping (monthly Field Audits), and that all work processes from monthly settlements to the final
settlement of accounts and electronic tax filings have been completed by a one-stop, full line process in a timely manner.
For private businesses who will be using the TKC systems for accounting and tax return process and receiving the issuance ofCertificate of Bookkeeping Timeliness (for private businesses) starting in January 2023, we have enhanced the functions toenable them to submit their blue returns and other documents to financial institutions. We will support private businesses instrengthening 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 operationsof large enterprises, mainly of listed companies, and is actively working to solicit these companies and their affiliates to becomeclients of TKC Members.
(i) Responding to the Group Tax Sharing System
The Company has been providing aggressive support to large enterprises with a capital of more than 100 million yen or greaterin complying with the new obligation to use electronic tax filing. Through such activities, approximately 36% of the 22,000
some companies with a capital of 100 million yen or greater now use our ASP1000R electronic tax filing system forcorporations and the eConsoliTax consolidated tax payment system as of the end of December 2021.
Also, the consolidated taxation system will be reformed and the group tax sharing system will apply to the fiscal year starting
after April 1, 2022. Under the group tax sharing system, filing of corporate income taxes, etc. must be processed electronically.

- 9 -Based on the expertise accumulated to date, the Company is developing a new service to facilitate compliance with the grouptax sharing system, and works closely with TKCNF’s Medium- and Large-sized Companies Support Council (1,524 members
as of the end of December 2021) in providing support to ensure these companies to switch smoothly to the mandated taxation
system.
(ii) Responding to the Revised Electronic Books Maintenance Act and Consumption Tax Invoicing System
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.
Moreover, the consumption tax invoicing system will be implemented in October 2023. To provide support for compliancewith these legal reforms, we started providing a new service called Invoice Manager in January 2022.
(iii) Support for managing the performance of foreign subsidiaries
Companies having business abroad are restricted from traveling overseas due to COVID-19 pandemic, and are facing
challenges in managing the performance of their foreign subsidiaries and ensuring governance. More and more companies
facing such hardship are implementing our OBMonitor overseas business monitoring system, as it is a cloud service that allows
companies to check the financial data of their foreign subsidiaries from their offices in Japan. The number of users of the
OBMonitor reached 1,200 companies, and it is currently used in 37 countries around the world.
As a result of these activities, the number of corporate groups using the TKC Consolidated Group Solution counted
approximately 4,864 corporate groups as of December 31, 2021. With this, our systems are adopted by 91% of the 100 largest
Japanese listed companies by sales amount. The market shares among Japanese listed companies reached 41%.
(4) Expansion of markets for legal information database services(i) Increase of user base of TKC Law Library
Many customers of the TKC Law Library including law firms and corporate legal departments now operate online due to the
COVID-19 pandemic. Because users are unable to conduct research at data rooms or libraries, the TKC Law Library which
offers access to laws and regulations, judicial precedents, bibliographic information references and also contents of major
specialized law magazines, any time, from any place is now earning greater reputation. As a result, the numbers of users andcontracts 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 Searchwhich allows users to access PDF versions of specialized books on laws, accounting, tax accounting, business management,
etc. This service is a fixed rate service for attorneys to access the free book search functions and view (for fee) the PDF versions
on their tablets and PCs.
In the current 1st Quarter, as a result of online promotional activities towards TKC Member firms, universities, law schools,
government offices, law firms, patent offices, corporate legal departments, and customers, the number of users exceeded
56,000 IDs and the Library is used by over 23,000 institutions as of December 31, 2021.
(ii) Progress in the academic market
Due to the impacts of COVID-19, many universities and law schools continue to conduct hybrid-style classes combining faceto-face and online lectures or full online classes after October 2021. 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 ofdiverse contents compared to those of other companies, and include various functions such as report generation, exercises andtesting. 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 developmentof 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 December 31, 2021. Currently,
many qualification examinations are adopting computer-based testing (CBT/IBT method). We will promote the use of ouronline testing functions and other effective online study tools to prepare for computer-based examinations among examination
bodies and applicants.
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- 10 -

The Company provides TKC Government Cloud Service to municipalities (mainly for cities, wards, towns and villages). Thisis 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.
Our TASK Cloud Service is a single version package system operated at TKC data centers that is designed to allow shared use
by multiple institutions. Service fees are charged in the form of fixed rate subscription fee depending on the scale of themunicipality, which also include one regular upgrade per year. Acknowledged for these benefits, the TASK Cloud Service has
been adopted by approximately 170 local municipalities as of December 31, 2021.
In the current 1st Quarter, 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 governments to achieve “no visiting, no waiting, no writing” administrative
counter services.
In this 1st Quarter, we greatly enhanced the functionalities of the TASK Cloud Easy Counter Service System, the TASK CloudMy Number Card Issuance Reservation and Management System, and the TASK Cloud Smart Application System.
As a result of aggressive promotional activities of these services, the TASK Cloud Smart Application System has been adopted
by approximately 20 agencies including government ordinance-designated cities such as Osaka, Yokohama, and Sakai cities,
the TASK Cloud Easy Counter Service System is used by nearly 30 agencies, and the TASK Cloud My Number Card IssuanceReservation and Management System is adopted by almost 100 agencies as of December 31, 2021.
(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 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 December 31, 2021.
In the current 1st Quarter, we worked to enhance the functionalities of our proprietary data connection services, as well as
engaged in aggressive promotional activities and implementation support together with our partner companies.
(4) Response to 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
Ministry of 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 expenditure itemswith 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 publicdomain 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 1st Quarter, 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 visualization offinancial status and utilization of accounting data.
As a result, our local public accounting systems are adopted by approximately 290 agencies as of December 31, 2021.
(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, the- 11 -

government formulated the Basic Policy on Economic and Fiscal Management and Reform 2020 (Cabinet Decision of July2020) in which it positioned all-out promotion of a digital government as top priority, and accelerated its efforts of digitalization
to move as many administrative procedures as possible 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 to standardize and commonize 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 as well as to strengthen customer support including the collection and communication of the latest information.
Also in the current 1st Quarter, 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 vendor. We also continued conducting surveys, research and development
on next-generation solutions through, for example, experimental projects with advanced organizations, to support thedigitalization of 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, andprinting of commercial-use creative materials.
In the current 1st Quarter, net sales increased year-on-year thanks, in particular, to orders from local municipalities for printing ofentry tickets for the election of members of the House of Representatives, vouchers under their COVID-19 vaccination projects,
and notices for special cash payments for households raising children.
In the DPS area, the Company provides products to support local municipalities in their operations to send various notifications
to residents and private enterprises in posting direct mails, etc., including products to eliminate document inserting/sealing tasks
based on our unique pressure bonding technology and printed products using our variable printing/typing technologies.
In the area of business form printing, sales decreased year-on-year as a result of decline in demands for business forms in response
to paperless trends and due to impacts of COVID-19 pandemic.
In the area of printing of commercial-use creative materials (catalogs, books, etc.), orders decreased due to the continued
cancellation/postponement of events impacted by COVID-19 pandemic and with increase in web-based seminars. Meanwhile, net
sales increased year-on-year thanks to orders for the printing of books and other materials explaining the new system under the
Revised Electronic Books Maintenance Act and new invoicing system.

- 12 -

II. Qualitative Information on Consolidated Financial Conditions
1. Assets
Total assets as of the end of the current 1st quarter consolidated accounting period amounted to 98,860 million yen, a 4,546 million
yen decrease 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 1st quarter consolidated accounting period amounted to 32,979 million yen, a 3,128
million yen decrease compared to 36,107 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a decrease of 2,508 million yen in cash and deposits.
(2) Non-current assets
Non-current assets as of the end of the current 1st quarter consolidated accounting period amounted to 65,880 million yen, a
1,417 million yen decrease compared to 67,298 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a decrease of 919 million yen in long-term deferred tax assets included in Other.
2. Liabilities
Total liabilities as of the end of the current 1st quarter consolidated accounting period amounted to 16,450 million yen, a 3,539
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 1st quarter consolidated accounting period amounted to 11,158 million yen, a 3,563
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 2,582 million yen decrease in provisions for bonuses, and a 2,104 million yen decrease inincome taxes payable, despite a 1,171 million yen increase in deposits received included in Other.
(2) Non-current liabilities
Non-current liabilities as of the end of the current 1st quarter consolidated accounting period amounted to 5,292 million yen, a
23 million yen increase compared to 5,268 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to an increase of 22 million yen in retirement benefit obligations.
3. Net assets
Total net assets as of the end of the current 1st quarter consolidated accounting period amounted to 82,409 million yen, a 1,006
million yen decrease compared to 83,416 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to an increase of 1,033 million yen in treasury stock.
Equity ratio as of the end of the current 1st quarter consolidated accounting period was 83.4%, a 2.7 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 current 1st quarter consolidated cumulative
period.
IV. Research and Development Activities
There were no research and development expenses spent by the TKC Group during the current 1st quarter consolidated cumulative
period.
There are no significant changes in the status of research and development activities of the TKC Group during the current 1st quarter
consolidated cumulative period.

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

- 13 -

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

Total number of shares authorized to be issued (shares)

Common stock

120,000,000

Total

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

Class

Number of shares issued asof the end of 1st quarteraccounting period (shares)(December 31, 2021)

Common stock

Number of shares issued asof the filing date (shares)
February 14, 2022

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
First Section of theTokyo Stock Exchange

53,462,066－

Description

Number of sharesconstituting a unit:
100 shares－(2) [Share subscription rights, etc.](i) [Stock option scheme]
None to be disclosed.
(ii) [Other share subscription rights, etc.]
None to be disclosed.
(3) [Exercise of bonds with share subscription rights containing a clause for exercise price adjustment, etc.]
None to be disclosed.
(4) [Changes in total number of issued shares, capital stock, etc.]

Date

Increase or
decrease in total
number of issued
shares(shares)

Balance of total
number of issued
sharesIncrease or
decrease incapital stock

Balance ofcapital stock

Increase or
decrease incapital reserve

Balance of capitalreserve(shares)(millions of yen)(millions of yen)(millions of yen)(millions of yen)－

53,462,066

－

5,700

－

5,409

October 1, 2021December 31, 2021

(5) [Major shareholders]
There is nothing applicable to be disclosed as the current quarter is the 1st quarter accounting period.

- 14 -

(6) [Status of voting rights]
The status of voting rights as of the end of the current 1st quarter accounting period indicated hereunder are based on theshareholders registry as of the most recent record date (September 30, 2021) because the content of the shareholders registry asof the end of the current 1st Quarter cannot be confirmed.
(i) [Shares issued]
As of September 30, 2021
Classification

Number of voting rights(units)Number of shares (shares)

Description

Shares without voting right

－

－

－

Shares with restricted voting right(treasury stock, etc.)

－

－

－

Shares with restricted voting right (others)

－

－

－

Shares with full voting right (treasury
stock, etc.)

Common stock

529,100－－

Shares with full voting right (others)

Common stock

52,855,100

528,551－

Shares less than one share unit

Common stock

77,866－－53,462,066

－

－

－

528,551－

Total number of issued shares
Total voting rights held by all
shareholders

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 219,800 shares (2,198 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 September 30, 2021
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)

529,100－

529,100

0.99

529,100－

529,100

0.99

Tochigi
Total－(Note) In addition to the above, the 219,800 shares owned by the BIP Trust are recorded as treasury stocks.

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

- 15 -

Part 4 [Financial Information]
1.

Method of Preparing Quarterly Consolidated Financial Statements
The quarterly consolidated financial statements of the Company have been prepared in accordance with the Ordinance on
Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office OrdinanceNo.64 of 2007).

2.

Auditing and Attestation
The quarterly consolidated financial statements of the Company for the 1st quarter consolidated accounting period (from October
1, 2021, to December 31, 2021) and the 1st quarter consolidated cumulative period (from October 1, 2021, to December 31,2021) have received quarterly review by Ernst & Young ShinNihon LLC pursuant to the provision of Article 193-2, Paragraph
1 of the Financial Instruments and Exchange Act of Japan.

- 16 -

1[Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Unit: millions of yen)
Current 1st quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2021)(December 31, 2021)

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 time deposits
Guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable–trade
Electronically recorded obligations–operating
Short-term loans payable
Accounts payable–other
Income taxes payable
Contract liabilities
Provisions for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Retirement benefit liabilities
Provisions for stocks payment
Other
Total non-current liabilities
Total liabilities- 17 -

26,426
6,973
－
412
2,309
(14)
36,107

23,918
－
6,911
562
1,597
(9)
32,979

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

7,741
6,802
2,798
17,342
3,696

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

19,475
16,6001,436
7,329
44,841
65,88098,860

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

2,034
858
71
2,660
106
498
1,491
3,436
11,158

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

214
3,576
313
1,187
5,292
16,450(Unit: millions of yen)
Current 1st quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2021)(December 31, 2021)
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Accumulated remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 18 -

5,700
6,589
73,411(1,352)
84,3485,700
6,589
73,549(2,385)83,452449(1,382)(932)
83,416
103,406

295(1,338)(1,042)82,40998,860(2) [Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income][Quarterly consolidated statements of income][1st quarter consolidated cumulative period]

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Insurance dividends income
Land and house rent received
Other
Total non-operating income
Non-operating expenses
Interest expenses
Treasury stock acquisition expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gains on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Quarterly net income before taxes and adjustments
Income taxes–current
Income taxes–deferred
Total income taxes
Quarterly net income
Quarterly net income attributable to owners of parent(Unit: millions of yen)Previous 1st quarter consolidated Current 1st quarter consolidated
cumulative period
cumulative period(Started October 1, 2020;(Started October 1, 2021;
ended December 31, 2020)
ended December 31, 2021)
14,837
15,292
4,295
4,348
10,542
10,943
7,871
7,852
2,670
3,091

- 19 -

11
70
12
12
38
145

16
83
18
13
18
151

0
－
0
2,816

0
0
0
3,242

0
0

0
0

0
0
2,815
106
834
941
1,873
1,873

1
1
3,241
45
967
1,013
2,228
2,228

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

Quarterly net income
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable to owners ofparent(Unit: millions of yen)Previous 1st quarter consolidated Current 1st quarter consolidated
cumulative period
cumulative period(Started October 1, 2020;(Started October 1, 2021;
ended December 31, 2020)
ended December 31, 2021)
1,873
2,228

- 20 -

296
42
339
2,213

(154)
43
(110)
2,117

2,213

2,117

[Notes to 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 current 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, July 4,2019), 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 current 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 current 1st quarter consolidated accounting period, and “Contract liabilities”
that was 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 the previous
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 previous 1st quarter consolidated cumulative period 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 plan called “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 share price, but also the risk associatedwith 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 and Compensation Advisory
Committee whose chairperson and half of the members are independent Outside Directors and outside 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 the trust (notincluding expenses attributable thereto). The book value of said treasury stocks was 434 million yen for 219,800 shares as of theend of this current 1st 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 the Consolidated
Taxation System to 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 wererevised under the non-consolidated taxation system in line with the transition to the group tax sharing system. The amounts ofdeferred tax assets and deferred tax liabilities are based on the provisions of the Tax Act prior to revisions.

- 21 -

(Notes to the quarterly consolidated statements of cash flows)
The Company does not prepare the quarterly consolidated statements of cash flows for the current 1st quarter consolidated
cumulative period. The depreciation (including depreciation of intangible assets) for the current 1st quarter consolidated
cumulative period is as follows:
Previous 1st quarter consolidated
cumulative period(Started October 1, 2020;
ended December 31, 2020)
727 million yen

Depreciation

Current 1st quarter consolidated cumulative
period(Started October 1, 2021;
ended December 31, 2021)
721 million yen(Notes to shareholders’ equity, etc.)
I. Previous 1st quarter consolidated cumulative period (Started October 1, 2020; ended December 31, 2020)
Dividend payments
Resolution

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

Record date

Effective date

Source ofdividends

September 30, 2020

December 21, 2020

Retainedearnings

December 18, 2020
Ordinary General
Meeting ofCommon stock

1,720

65

Shareholders(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 Company conducted a stock split of its common shares at a ratio of 1:2 as of April 1, 2021. The dividend per shareshows the amount prior to the stock split.

II. Current 1st quarter consolidated cumulative period (Started October 1, 2021; ended December 31, 2021)
Dividend payments
Resolution
December 17, 2021
Ordinary General
Meeting of
Shareholders

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

Common stock

2,090

39.50

Record date

Effective date

September 30, 2021

December 20, 2021

Source ofdividends
Retainedearnings(Note) 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.

- 22 -

(Segment information, etc.)[Segment information]
I. Previous 1st quarter consolidated cumulative period (Started October 1, 2020; ended December 31, 2020)
Information on net sales and profit or loss for each reportable segment
Reportable segment(Unit: millions of yen)Amounts inquarterly
Adjustments
consolidated(Note 1)statements
of income(Note 2)

Accounting
Firm BD

Local
Governmen
ts BD

Printing
BD

10,631

3,523

683

14,837－

14,837

2

0

295

297

(297)

－

Total

10,6333,523

97815,134(297)

14,837

Segment profit (loss)

2,632

212

(170)

2,673

(2)

2,670

Total

Net sales(1) Sales to outside customers(2) Inter-segment sales ortransfers(Notes) 1. Adjustments of segment loss of 2 million yen include amounts for elimination of inter-segment transactions andadjustment of inventory assets.
2. Segment profit (loss) is adjusted with the operating profit presented in the quarterly consolidated statements ofincome.
II. Current 1st quarter consolidated cumulative period (Started October 1, 2021; ended December 31, 2021)
1. Information on net sales and profit or loss for each reportable segment
Reportable segment(Unit: millions of yen)Amounts inquarterly
Adjustments
consolidated(Note 1)statements
of income(Note 2)

Accounting
Firm BD

Local
Governmen
ts BD

Printing
BD

10,638

3,907

746

15,292－

15,292

0

0

383

384

(384)

－

Total

10,639

3,907

1,130

15,677(384)

15,292

Segment profit (loss)

2,807

354

(62)

3,098

(7)

3,091

Total

Net sales(1) Sales to outside customers(2) Inter-segment sales ortransfers(Notes) 1. Adjustments of segment loss of 7 million yen include amounts for elimination of inter-segment transactions andadjustment of inventory assets.
2. Segment profit (loss) is adjusted with the operating profit presented in the quarterly consolidated statements ofincome.

- 23 -

(Revenue Recognition)
Net sales of the Company are primarily revenue recognized from contracts with clients. The Company’s reportable segments
can be disaggregated into the following goods and services:
Current 1st quarter consolidated cumulative period (Started October 1, 2021; ended December 31, 2021)(Unit: millions of yen)
Reportable segment
Total

Accounting Firm
BD

Local
Governments BD

Revenue from computer services

3,716

1,850

－

5,566

Software sales

4,288

1,166

－

5,455

Revenue from consulting

1,680

214

－

1,895

Office equipment sales

686

675

－

1,361

Accounting supplies sales

266

－

－

266

Revenue from printing-related services

－

－

746

746

10,638

3,907

746

15,292

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:
Previous 1st quarter consolidated
cumulative period(Started October 1, 2020;
ended December 31, 2020)

Current 1st quarter consolidated
cumulative period(Started October 1, 2021;
ended December 31, 2021)

35.64 yen42.41 yen

1,873

2,228

Amount not attributable to common shareholders(millions of yen)－－

Quarterly net income from common stocks
attributable to owners of parent (millions of yen)

1,873

2,228

525,627

525,435

Quarterly net income per share(Basis for calculation)
Quarterly net income attributable to owners ofparent (millions of yen)

Average number of common stocks outstanding(hundreds of shares)(Notes) 1. The average number of stocks outstanding used in the calculation of earnings per share information has been
determined by including the stocks of the Company owned by the BIP Trust (which has been established with theintroduction 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 371,683 shares for the previous 1st quarter consolidated cumulative period, and 219,800 shares for the current 1stquarter consolidated cumulative period.
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.

2[Other]None to be disclosed.

- 24 -

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

- 25 -

Quarterly Review Report of Independent Auditors
February 14, 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 the quarterly consolidated financial statements presented in the Financial Information section, which comprisethe quarterly consolidated balance sheets, the quarterly consolidated statements of income, the quarterly consolidated
statements of comprehensive income, and notes of TKC Corporation applicable to the 1st quarter consolidated accounting
period (from October 1, 2021 to December 31, 2021) and the 1st quarter consolidated cumulative period (from October
1, 2021 to December 31, 2021) of the consolidated fiscal year started October 1, 2021 and ending 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 December 31, 2021, and their financial performance for the 1st quarter
consolidated cumulative period then ended in conformity with accounting 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 the Quarterly Consolidated Financial Statements section of our report. We are independent of theCompany and its consolidated subsidiaries in accordance with the code of professional ethics in Japan, and we havefulfilled 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 inaccordance with the principles for the preparation of quarterly consolidated financial statements generally accepted inJapan. 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 freefrom 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 as a going concern and disclosing, as applicable, matters related to going concern in accordance with theprinciples for the preparation of quarterly consolidated financial statements generally accepted in Japan.
Corporate auditors and the Board of Auditors are responsible for overseeing the execution of duties by Directors indesigning and implementing 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- 26 -

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 exercisingprofessional judgment and maintaining professional skepticism throughout the quarterly review.
・ We principally make inquiries to management and persons responsible for financial and accounting matters, andperform analytical procedures and other quarterly review procedures. The quarterly review procedure is a limited
procedure compared to the procedure of auditing the annual financial statements performed in accordance withauditing 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 notproperly 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 thequarterly 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 agoing 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 thatcauses us to believe that the overall presentation, structure and content of the quarterly consolidated financial
statements, including the related notes thereto, nor the quarterly consolidated financial statements do not represent
the underlying transactions and events in a manner that achieves fair presentation.
・ We obtain evidence regarding the financial information of the Company and its consolidated subsidiaries to express
a conclusion on the quarterly consolidated financial statements. We are responsible for the direction, supervisionand performance of the quarterly review of the quarterly consolidated financial statements. We remain solely
responsible for our conclusion.
We communicate with corporate auditors and the Board of Auditors regarding the planned scope and timing of thequarterly review and significant findings therein.
We also provide corporate auditors and the Board of Auditors with a statement that we have complied withregulations 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 or its engagement partners have no interest in the Company and its consolidated subsidiaries which should be
disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
End of document(Notes) 1.
2.

The original copy of the above quarterly review report is stored by TKC Corporation (the Company filing this quarterly
report).
XBRL data is not included in the scope of this quarterly review.

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[Front Cover][Document filed]

Confirmation Letter[Applicable law]

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

Director of Kanto Local Finance Bureau[Date filed]February 14, 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)- 28 -

1 [Matters Related to Adequacy of Statements Contained in the Quarterly Report]
Masanori Iizuka, Representative Director, President and Executive Officer of the Company and Kiyotsugu Nakanishi, Chief
Financial Officer of the Company hereby confirm that the statements contained in the quarterly report for the 1st quarter of the56th term (started October 1, 2021; ended December 31, 2021) are adequate under the Financial Instruments and Exchange Act
of Japan.

2 [Special Notes]
None to be disclosed.

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