FOR TRANSLATION PURPOSE ONLY

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

July 14, 2022

Non-consolidated Financial Results
for the Six Months Ended May 31, 2022
(Under Japanese GAAP)
Company name: T&S inc.
Listing:
Tokyo Stock Exchange
Securities code:
4055
URL:
https://www.tecsvc.co.jp/
Representative:
Yoshihiro Takekawa, President and CEO
Inquiries:
Hiroshi Kinoshita, Director, Executive Officer and General Manager of Corporate Division
Telephone:+81-45-263-8286
Scheduled date to file quarterly securities report:
July 14, 2022
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for Institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Non-consolidated financial results for the Six months ended May 31, 2022
(from December 1, 2021 to May 31, 2022)(1) Non-consolidated operating results (cumulative)
Net sales
Six months ended(Percentages indicate year-on-year changes.)

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

May 31, 2022

1,567

21.8

286

66.5

294

65.3

205

64.7

May 31, 2021

1,286

15.9

172

4.6

177

6.1

124

10.6

Basic earnings
per share
Six months ended

Diluted earnings
per share
Yen

Yen

May 31, 2022

27.08

26.68

May 31, 2021

17.06

16.12

Note:

The Company conducted a 2-for-1 share split on December 1, 2021. Basic earnings per share and diluted
earnings per share has been calculated on the assumption that conducted the stock split at the beginning of
the FY11/2021.

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

May 31, 2022

2,011

1,554

77.3

November 30, 2021

1,987

1,495

75.2

Reference:

EquityAs of May 31, 2022:
As of November 30, 2021:¥1,554 million¥1,495 million%

FOR TRANSLATION PURPOSE ONLY

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
November 30, 2021
Fiscal year ending
November 30, 2022

-

0.00

-

0.00

Fiscal year ending
November 30, 2022
(Forecast)Fiscal year-end

Total

Yen

Yen

-

8.00

8.00

-

5.00

5.00

Note: 1. Revisions to the forecast of cash dividends most recently announced: None
2. The Company conducted a 2-for-1 share split on December 1, 2021. The dividend of the fiscal year ended November 30,
2021 is the actual amount as stated before the share split.

3. Earnings Forecast of Fiscal year ending on November 30, 2022
(from December 1, 2021 to November 30, 2022)
Net sales

Full-year

Operating profit(Percentages indicate year-on-year changes.)

Ordinary profit

Basic earnings
per share

ProfitMillions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

3,100

13.4

550

33.2

557

32.9

391

32.7

51.82

Note: Revisions to the earnings forecast most recently announced: None

FOR TRANSLATION PURPOSE ONLY

* Notes(1) Adoption of accounting treatment specific to the preparation of quarterly non-consolidated financial
statements: None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note: For details, please refer to the appendix, page 6, "2. Quarterly financial statements and principal notes(3) Notes on quarterly financial statements (Changes in accounting policies)".
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 2022

7,633,200 shares

As of November 30, 2021

7,633,200 shares(ii) Number of treasury shares at the end of the period
As of May 31, 2022
As of November 30, 2021

75,100 shares- shares(iii) Average number of shares outstanding during the period(cumulative from the beginning of the fiscal year)

Note:

Six months ended May 31, 2022

7,597,205 shares

Six months ended May 31, 2021

7,320,026 shares

The Company conducted a 2-for-1 share split on December 1, 2021. Assuming that the share split was conducted at the
beginning of the fiscal year ended November 30, 2021, total number of issued shares at the end of the period, number oftreasury shares at the end of the period, average number of shares outstanding during the period has been calculated.

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Notes on descriptions about the future)
Descriptions about the future such as performance forecasts contained in this document are based on information
currently available to the Company and certain presumptions considered as reasonable, and those are not intended
to indicate the Company will achieve such forecast. Meanwhile, actual performance in the future may differ
substantially, influenced by a wide variety of factors. For preconditions for performance forecasts and precaution
statements in using such forecasts, please refer to the appendix, page 3, “1. Qualitative information regarding thequarterly financial results (3) Descriptions regarding prospects such as performance forecasts”.
(How to obtain supplementary references regarding quarterly financial results)
Supplementary material on quarterly financial results is concurrently disclosed on TDnet.

T&S inc. (4055)
Summary of Non-consolidated Financial Results for Six Months
ended May 31, 2022

FOR TRANSLATION PURPOSE ONLY

Table of contents: Appendix
1.

………………………………………

2(1) Descriptions regarding operating results……………………………………………………………

2(2) Descriptions regarding financial position……………………………………………………………

2……………………………………

3……………………………………………………

4….………….…………………………………………………...……………

4…………………………………………………………………………

5..……………………………………………...…………………

5……………………….…………………………………

6（Notes regarding the assumption for going concern）…………………………………...……………

6（Notes on significant changes in shareholders' equity）………………………………………………

6…………………………………….………………..…………

6………………………………………………………………………

6

Qualitative information regarding the quarterly financial results(3) Descriptions regarding prospects such as performance forecasts
2.

Quarterly financial statements and principal notes(1) Quarterly balance sheet(2) Quarterly income statements
Cumulative of six months ended(3) Notes on quarterly financial statements（Changes in accounting policies)（Segment information, etc.）1

T&S inc. (4055)
Summary of Non-consolidated Financial Results for Six Months
ended May 31, 2022

FOR TRANSLATION PURPOSE ONLY

1. Qualitative information regarding the quarterly financial results(1) Descriptions regarding operating results
During the first half of the current fiscal year, the Japanese economy showed signs of recovery following thenationwide lifting of "priority measures to prevent the spread of the virus", however, the timing of the end of
COVID-19 epidemic remains uncertain, and the market remains uncertain due to the short supply of semiconductors
and rising prices of resources. Within the corporate activities, the emphasis on IT and the trend toward the use of IT
in business operations are expanding, including telecommuting, online meetings, cloud services, and the promotionof DX (Digital Transformation).
Our business is composed of a single segment of system development and related services, and we are developing
our business in three categories: "Solution", "Semiconductor", and "Advanced Technology Solution" categories. In
such an economic environment, the "Solution Category" continued to supply IT personnel without specializing inindustrial fields and expanded its business to support IT development. In the “Semiconductor Category”, we havebeen expanding its overall IT infrastructure operation support services for semiconductor factories, including infactory system maintenance and operation services and IT helpdesk services. In the “Advanced Technology Solution
Category”, we have expanded solutions for customers who are developing AI-related products.
Operating results by category for the first half of the current cumulative fiscal year under review are as follows.

① Solution Category
Net sales for the first half of the current cumulative fiscal year amounted to 1,156,432 thousand yen (up17.2% increase compared to the same period of the previous year).
Orders for contracted development projects from major customers remained strong. A large-scale
development project for in-factory systems from a semiconductor manufacturer, one of our major customers,
which started in the previous fiscal year, made a contribution.
② Semiconductor Category
Net sales for the first half of the current cumulative fiscal year amounted to 283,980 thousand yen (up25.2% increase compared to the same period of the previous year).
A steady growth continued with orders from major customers against the backdrop of the robust
semiconductor market and requests for further increases in the number of dispatched engineers formaintenance and operation services at semiconductor factories.
③ Advanced Technology Solution Category
Net sales for the first half of the current cumulative fiscal year amounted to 127,388 thousand yen (up74.5% increase compared to same period of the previous year).
Continuous orders for AI-related R&D support services, technical treatise survey support services, andother services, as well as orders from new clients, remained steady. In the second quarter, the ratio of sales inthis category as a percentage of total overall company sales expanded from 5.7% in the same period of theprevious year to 8.1% in the second quarter of the current fiscal year, due to an increase in new clients aswell as projects from existing clients such as NEC Corporation, which remained strong from the previous
fiscal year.
As a result, the company's operating results for the second quarter cumulative period showed growth in all
categories, with net sales of 1,567,800 thousand yen (up 21.8% increase compared to the same period of theprevious year). With absorbing 49,000 thousand yen performance-linked bonuses reserve for employees,
operating profit increased to 286,681 thousand yen (up 66.5% increase compared to the same period of theprevious year), ordinary profit to 294,155 thousand yen (up 65.3% increase from the same period of theprevious year), and quarterly profit to 205,717 thousand yen (up 64.7% increase from the same period of theprevious year).
(2) Descriptions regarding financial position(Assets)
Current assets at the end of the second quarter of the current fiscal year totaled 1,848,880 thousand yen, adecrease of 21,066 thousand yen from the previous fiscal year end. This was mainly due to a decrease of 89,716
thousand yen in cash and deposits due to tax payments, etc., and due to an increase in transactions subject tofactoring and other factors, accounts receivable-other increased by 97,326 thousand yen and accounts
receivable-trade decreased by 35,279 thousand yen. Non-current assets totaled 162,391 thousand yen, an
2

T&S inc. (4055)
Summary of Non-consolidated Financial Results for Six Months
ended May 31, 2022

FOR TRANSLATION PURPOSE ONLY

increase of 44,890 thousand yen compared to the end of the previous fiscal year. This was mainly due to anincrease of 50,400 thousand yen in investment securities, as a result of capital and business alliance withIntelligence Design, Inc.
This resulted in total assets of 2,011,272 thousand yen, an increase of 23,824 thousand yen from the end of
the previous fiscal year.
(Liabilities)
Current liabilities at the end of the second quarter amounted to 411,394 thousand yen, a decrease of 29,456
thousand yen compared to the end of the previous fiscal year. This was mainly due to 39,765 thousand yen
decrease in accrued expenses as a result of winter bonus payments, 33,611 thousand yen decrease in income
taxes payable, 28,153 thousand yen increase in provision for bonuses, and 17,591 thousand yen increase inaccounts payable. Non-current liabilities amounted to 45,742 thousand yen, a decrease of 5,771 thousand yen
compared to the end of the previous fiscal year. This was mainly due to the transfer of long-term guarantee
deposit of 8,071 thousand yen to current liabilities.
This resulted in total liabilities of 457,136 thousand yen, a decrease of 35,228 thousand yen from the end of
the previous fiscal year.
(Net Assets)
Total net assets at the end of the second quarter of the current fiscal year totaled 1,554,135 thousand yen, an
increase of 59,053 thousand yen compared to the end of the previous fiscal year. This was mainly due to anincrease of 205,717 thousand yen in retained earnings as a result of quarterly net income, and a decrease of
30,532 thousand yen as a result of dividends, and a decrease of 99,675 thousand yen in treasury shares due tothe acquisition and disposal of treasury shares.
(3) Descriptions regarding prospects such as performance forecasts
There is no change to the full-year earnings forecast announced in the "Summary of Financial Results for the
Fiscal Year Ended November 30, 2021" on January 13, 2022.

3

T&S inc. (4055)
Summary of Non-consolidated Financial Results for Six Months
ended May 31, 2022

FOR TRANSLATION PURPOSE ONLY

2. Quarterly financial statements and principal notes(1) Quarterly balance sheet(Thousands of yen)
As of November 30, 2021
AssetsCurrent assets
Cash and deposits
Accounts receivable – trade, and contract assets
Accounts receivable - trade
Work in process
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Provision for retirement benefits
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets

4

As of May 31, 2022

1,275,367－
354,021
24,264
198,366
19,326△1,4001,869,946

1,185,651
318,742－
36,831
295,692
13,462△1,5001,848,880

21,186
1,692
94,621
117,500
1,987,447

20,452
2,384
139,554
162,391
2,011,272

105,474
130,134
66,509138,732
440,851

123,066
96,522
94,662
97,141
411,394

43,442
8,071
51,513492,364

45,742－45,742
457,136

340,783
292,112862,186－
1,495,082
1,495,082
1,987,447

340,783
275,656
1,037,371△99,675
1,554,135
1,554,135
2,011,272

T&S inc. (4055)
Summary of Non-consolidated Financial Results for Six Months
ended May 31, 2022

FOR TRANSLATION PURPOSE ONLY

(2) Quarterly income statements
Cumulative of six months ended

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Grant income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Share issuance costs
Commission expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit(Thousands of yen)Six months ended
Six months ended
May 31, 2021
May 31, 2022
(From December 1, 2020 to (From December 1, 2021 to
May 31, 2021)
May 31, 2022)
1,286,741
1,567,800
916,680
1,080,574
370,060
487,226
197,868
200,544
172,192
286,681

5

3
330
5,550
0
5,883

1
－
7,643
0
7,644

90
－
0
90
177,985

－
170
0
170
294,155－－
177,985
62,515△9,407
53,107
124,877321
321
293,834
83,272
4,844
88,116
205,717

T&S inc. (4055)
Summary of Non-consolidated Financial Results for Six Months
ended May 31, 2022

FOR TRANSLATION PURPOSE ONLY

(3) Notes on quarterly financial statements(Notes regarding the assumption for going concern)
Not applicable.
(Notes on significant changes in shareholders’ equity)
Not applicable.
(Changes in accounting policies)(Adoption of the Accounting Standard for Revenue Recognition and Related Guidance)
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and related
ASBJ guidance have been adopted to the Company’s financial results since the beginning of the first quarterof the current fiscal year. Accordingly, the Company recognizes revenue at the amount expected to bereceived in exchange for the promised goods or services when such control of the promised goods or services
is transferred to the customer. Previously, the Company applied the completion basis or percentage-ofcompletion basis method for built-to-order software, but effective from the first quarter of the current fiscal
year, for performance obligations to be fulfilled over a certain period, the Company estimates the progress
toward fulfilment of the performance obligation and recognizes revenue over a certain period based on the
degree of completion. In cases where the period between the transaction commencement date and the point intime when the performance obligation is expected to be fully satisfied is very short, the Company recognizes
revenue when the performance obligation is fully satisfied.
As a result, there is no impact on profit and loss for the second quarter of the current fiscal year.
In addition, the adoption of the revenue recognized accounting standard, etc., in accordance with thetransitional treatment stipulated in the proviso of Paragraph 84 of the revenue recognition accounting
standard, etc., has no effect on the beginning balance of retained earnings.
In accordance with the adoption of the Accounting Standard for Revenue Recognition, "Accounts
receivable," which was presented in "Current assets" in the balance sheet for the previous fiscal year, is
included in "Accounts receivable - trade, and contract assets" from the first quarter of the current fiscal year.
In this regard, in accordance with the transitional treatment stipulated in Paragraph 89-2 of the AccountingStandard for Revenue Recognition, no reclassification has been made for the previous fiscal year using the
new disclosure method.
(Application of Accounting Standard for Fair Value Measurement)"Accounting Standard for Fair Value Measurement " (ASBJ Statement No. 30, July 4, 2019) and related
ASBJ standards and guidance have adopted to the Company’s financial results since the beginning of the firstquarter of the current fiscal year. The new accounting policies stipulated in the new standards are applied into
the future in accordance with the transitional treatment provided for in paragraph 19 of "Accounting Standard
for Fair Value Measurement" and paragraph 44-2 of "Accounting Standard for Financial Instruments" (ASBJ
Statement No.10, July 4, 2019). There is no impact on the quarterly financial statements.
(Segment information, etc.)【Segment information】
I.

Previous second quarter cumulative period (December 1, 2020 – May 31, 2021)
Business of the Company comprises of a single segment of system development and other related services andtherefore description of segment information is omitted.

II. Current second quarter cumulative period (December 1, 2021 – May 31, 2022)
Business of the Company comprises of a single segment of system development and other related services andtherefore description of segment information is omitted.

6