Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended August 31, 2023
(Based on Japanese GAAP)
October 13, 2023
Company name:TECMIRA HOLDINGS INC.

Stock exchange listing: Tokyo
Stock code:
3627
Representative:
Inquiries:

URL

https://www.tecmira.com/

President & Representative Director
Corporate Planning Department Director

Masashi Ikeda
Satoru Fujishiro

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

October 13, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

TEL

(03)6838-8800(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended August 31, 2023 (from March 1, 2023 to August 31, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended August 31, 2023
4,134
8.9(34)–54
2.1
34 117.9
Six months ended August 31, 2022
3,795 (19.8)(48)–
53 (47.1)
15 (97.2)
Earnings per share

Diluted earnings per share
Yen
2.93
1.34

Six months ended August 31, 2023
Six months ended August 31, 2022

Yen
2.88
1.29(2) Consolidated financial position
Total assets

Net assets

Millions of yen
7,920
8,021

As of August 31, 2023
As of February 28, 2023

Equity ratio

Millions of yen
5,790
5,593

Net assets per share%
72.3
69.1

Yen
485.45474.68

2. Cash dividends
Annual dividends per share

Year ended February 28, 2023
Year ending February 29, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
5.00

Yen
5.00

–

6.00

6.00

Year ending February 29, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)
Net sales
Full year

Millions of yen
10,200Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
17.8––500
29.4
360
36.9
30.82

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2023

12,459,800 shares As of February 28, 2023

12,339,500 shares

Number of treasury shares at the end of the period
As of August 31, 2023

660,105 shares As of February 28, 2023

660,105 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2023

11,734,260 shares Six months ended August 31, 2022

2

11,824,770 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2023

As of August 31, 2023

AssetsCurrent assets
Cash and deposits2,983,960

2,249,345

1,705,890
317,461

1,394,213
328,038

Work in process
Raw materials

246,024
354,499

326,214221,152

Short-term loans receivable from subsidiaries andassociates

100,000–

Advance payments to suppliers
Other

98,507354,646

300,563
297,988

6,160,990

5,117,516

Buildings, net
Vehicles, net

128,712
1,732

176,929
1,847

furniture and fixtures, net
Construction in progress

78,393
1,433

79,872
1,433

Total property, plant and equipment

210,272

260,083

211,522

316,043

329,524
2,891

507,722
–

7,573

8,447

551,511832,213

Investment securities
Investments in capital

717,300–

817,757
450,000

Long-term loans receivable
Deferred tax assets–
182,156

80,000181,859

Guarantee deposits
Other

207,90928,882

189,752
28,478Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Software
Software in progress
Goodwill
Other
Total intangible assets
Investments and other assets

Allowance for doubtful accounts(37,131)(37,131)

Total investments and other assets

1,099,116

1,710,715

1,860,900

2,803,012

8,021,890

7,920,529

Total non-current assets
Total assets3

(Thousands of yen)
As of February 28, 2023

As of August 31, 2023

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings

357,787–

320,164
43,860Current portion of long-term borrowings
Income taxes payable

399,016
5,866

374,180
34,962Contract liabilities
Provision for bonuses

128,840
215,515

247,255
125,135

Provision for product warranties
Other40,637
435,505961
307,443

Total current liabilities

1,583,169

1,453,962

Non-current liabilities
Long-term borrowings

792,196

619,504

Deferred tax liabilities
Asset retirement obligations

10,95535,36815,23535,548

Other

6,236

6,120

Total non-current liabilities

844,755

676,408

2,427,924

2,130,371

Share capital
Capital surplus

2,403,000
1,511,991

2,409,496
1,518,487

Retained earnings
Treasury shares

1,794,478(297,166)

1,770,230(297,166)

Total shareholders' equity

5,412,304

5,401,048

10,250142,322

Deferred gains or losses on hedges
Foreign currency translation adjustment(22,173)
143,538

7,791
176,958

Total accumulated other comprehensive income

131,615

327,073

50,045–57,167
4,868

5,593,965

5,790,157

8,021,890

7,920,529

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended
August 31, 2022

Six months ended
August 31, 2023

Net sales

3,795,042

4,134,186

Cost of sales

2,348,005

2,687,384

Gross profit

1,447,036

1,446,802

Selling, general and administrative expenses

1,495,865

1,481,511(48,828)(34,709)–72,734

Other

109,555

21,689Total non-operating income

109,555

94,423

Interest expenses
Other

4,964
2,566

3,891
1,505

Total non-operating expenses

7,530

5,396

Ordinary profit

53,19654,317

Profit before income taxes

53,19654,317

Income taxes

37,40521,982

Profit15,79032,335–(2,067)

15,79034,403Operating loss
Non-operating income
Gain on sale of investment securities

Non-operating expenses

Loss attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Six months ended
August 31, 2022

Six months ended
August 31, 2023

Profit15,79032,335

Other comprehensive income
Valuation difference on available-for-sale securities

75,307132,072Deferred gains or losses on hedges
Foreign currency translation adjustment

26,304
136,672

29,96533,420Total other comprehensive income

238,284

195,457

254,074

227,793

254,074

229,861–(2,067)

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Thousands of yen)Six months ended
August 31, 2022

Six months ended
August 31, 2023

Cash flows from operating activities
Profit before income taxes
Depreciation

53,196118,029

54,31796,494

Amortization of goodwill
Share of loss (profit) of entities accounted for using equity

17,349

2,891

1,014

(108)

methodLoss (gain) on sale of investment securities–(72,734)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(755)(129,905)–(90,379)

Increase (decrease) in provision for product warranties
Decrease (increase) in trade receivables , and contract assets–
155,937(39,676)
313,399

Decrease (increase) in inventories
Increase (decrease) in trade payables(279,708)(131,932)

42,673(37,622)

Increase (decrease) in contract liabilities
Decrease (increase) in advance payments to suppliers

68,083(39,739)

118,415(202,055)

Other, net(182,357)(29,034)

Subtotal(350,788)

156,579

Interest and dividends received

1,906

1,730

Interest paid
Payments of relocation expenses(4,469)–(4,426)(31,220)

Income taxes paid
Income taxes refund(271,874)
5,306(32,994)
103,459

Net cash provided by (used in) operating activities(619,919)

193,128(8,271)(48,560)(204,263)(10,000)(350,719)(152,840)

Proceeds from sale of investment securities
Payments for investments in capital––

234,882(450,000)

Long-term loan advances–(80,000)(222,535)(847,237)(89,539)(217,190)

42,291(197,528)

4–

12,6785,000

Purchase of treasury shares
Repayments of lease liabilities(181,800)
(445)

–
(477)

Dividends paid

(118,467)(58,045)

Net cash provided by (used in) financing activities(607,439)(196,081)

Effect of exchange rate change on cash and cash equivalents

165,583

43,224

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from share issuance to non-controlling shareholders

Net increase (decrease) in cash and cash equivalents(1,284,310)(806,966)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion of

4,982,263

2,983,960–

72,352

3,697,953

2,249,345

subsidiaries in consolidation
Cash and cash equivalents at end of period7