FY11/2021 Full-year
Supplementary Material
on Financial Results

2022.1.13

T&S inc.
TSE Mothers: 4055

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Table of Contents

FY11/2021 Full YearHighlights

p. 3

Financial Results Overview

p. 4

Operating Income

p. 6

Net Sales by Categoryp. 7

Net Sales by Customer

p. 8

Net Sales by Quarterp. 9

Trend of Major Customers

p. 10

Status of increase in engineers

p. 11Statements of Income

p. 12

Balance Sheets

p. 13

FY Earnings Forecast

p. 14

Shareholder Returns

p. 16

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2

Highlights (FY2021)(Theme of current term)First Step towards Proof
１

Record-high revenues achieved
Net sales
Operating income
Ordinary income
Net income２: 2,732 million yen: 412 million yen: 419 million yen: 294 million yen(Up 20.5%↑, + 465 million yen)
(Up 35.6%↑, + 108 million yen)
(Up 37.7%↑, + 114 million yen)
(Up 24.7%↑, + 58 million yen)

(YoY)
(ditto)(ditto)(ditto)Driven by semiconductors and AI.
Provision for performance-linked bonuses to employees.
➢ Significant growth in all categories.
➢ Particularly, the advanced technology solutions category made a significant leap forward (Up 61%↑).
➢ A portion of Operating income was returned to employees.
60 million yen was set aside as an addition to regular bonuses.
Absorbing the increase in operating expenses, Operating income increased by 108 million yen from theprevious year.

３

Continuous strong performance in the next fiscal year.
Forecasting record-high earnings.
Net sales
Ordinary income: 3,100 million yen: 557 million yen

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(Up 13.4%↑, + 367 million yen)
(Up 32.9%↑, + 138 million yen)

(YoY)
(ditto)3

Financial Results Overview
FY11/2021 Full Year

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4

Financial Results Overview (FY2021)

Record-high revenues achieved
Net sales: 2,732 million yen (Up 20.5%↑, + 465 million yen)

(YoY)

Operating income : 412 million yen(Up 35.6%↑, + 108 million yen)(ditto)Ordinary income: 419 million yen(Up 37.7%↑, + 114 million yen)(ditto)Net income: 294 million yen(Up 24.7%↑, + 58 million yen)(ditto)Net Sales(million yen)(million yen)

3,000

Operating income

500

Up
20.5%

2,732

2,500

450

Up
35.6%

400

2,266412 ※

350

2,000

300

304

250
1,500

200
FY2020

FY2021

FY2020

FY2021※ In view of the strong performance, theCompany performance-linked bonuses for
employees allocated 60 million yen.
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Operating Income (FY2021)

Absorbed performance-linked bonuses andincreased operating income by 108 million yen.
(million yen)

IncreaseDecrease(YoY)

Operating income

In addition to the usual bonus,
a performance-linked bonus
was given to the employees

Operatingincome rate
15.1%
Operatingincome rate
13.4%
Mainly due to the increasein the number of engineers,
Increase in labor andsubcontracting costs

FY2020OperatingincomeIncreased
sales

Provisionfor bonusesin cost ofsales

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Other
increase incost ofsales

Provisionfor bonusesin SG&A
expenses

Other
decrease inSG&A
expenses

FY2021
Operatingincome6Net Sales by Category (FY2021)

Sales increase in all categories
Up 61% Advanced Technology Solution Category(YoY)

Net Sales (by category) (million yen)

Sales proportion (by category)

Solution
1,807

FY2020

Up+2942,101

FY2021
1,600

1,700

1,800

1,900

2,000

2,100

16%Semiconductor

2,200355

Up+108FY2021

30%

464

300

350

400

450

500

103

100150

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FY2021

77%
Up

61%

167
50Solution

million yen+63

FY202117%

2,101Advanced Technology Solution
FY20206%

464
million yen

Semiconductor
FY2020

AdvancedTechnology Solution
167 million yen

200(Note) Our business segment is a single
segment, so only Net sales of each category
could be calculated.

7

Net Sales by Customer (FY2021)
Toshiba G, Hitachi G, Kioxia G

Major customers maintaining steady level
Sales to Kioxia G significantly increased（Up 48％ (YoY) 21% of the total）
OthersIncrease in new customers（Up 31％ (YoY) 26% of the total）

ToshibaG
東芝GHitachiG日立G

Net Sales (by customer)(million yen)

FY2020748

FY2021

FY2021Up848 13%Up
2%

580
589

FY2020

Sales proportion (by customer)

Others26%

ToshibaG

31%FY2021
Kioxia G
キオクシアGOthersその他200FY2020

Up48%

395
585

FY2021542

FY2020709

FY2021

400

600

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800

Up
31%

KioxiaG
21%

HitachiG
22%1,0008

Net Sales by Quarter (FY2021)

Full-year Net Sales： 2,732 million yen
Increase: +465 million yen, 20.5% increase(YoY)(million yen)

3,000
+465 mil yen+20.5%

2,750
2,500

2,266 mil yen

2,250
2,000

4Q

1,750
Net
Sales

1,500

541 mil yen
24%

2Q

605
27%

1Q

505 mil yen
22%

1,250
1,000750

4Q

757 mil yen
28%

3Q

688 mil yen
25%

2Q

700 mil yen
26%

1Q

586 mil yen
21%

614 mil yen
27%

3Qmil yen

500
250
0

2020/11(actual)Copyright ⓒ 2022 T&S inc. All rights reserved.

2,732 mil yen

2021/11(actual)※The Company's
business performanceis subject to slightseasonal fluctuations
due to the increase in
the number ofengineers and thedelivery date ofprojects.

9Trend of Major Customers(Overall) Trend of Major Customers(As of January 13th, 2022)

Our orders continue to be strong, and our major customers as a whole are also doing well.
Although each company has been affected by the pandemic (Covid-19), there is a positive
outlook of recovery in the future.

Toshiba G

Hitachi G

Kioxia GOthers

Orders continued to increase, mainly in power semiconductors and HDDs fordata centers. The Energy System Solutions segment which is included power
plants system we join has been performing well. We believe that themedium-term management plan based on infrastructure and device systems
will have benefited us.
The recovery of market conditions and the reorganization of the power gridand automotive-related businesses led to the highest profits. In particular,
the IT and energy segments are expanding rapidly, and capital investment
related to our operations is expected to increase, reversing the restrained
trend during the pandemic (Covid-19).
Record-high quarterly earnings are currently being achieved. Shipments fordata center SSDs and enterprise SSDs are robust, and total shipment
volume increases. There is a stable supply and demand in the memory
market, and the selling prices are favorable. Furthermore, orders areexpected to rise from the new start of construction of a new technology
development building on the Yokohama Technology Campus.
In the field of research and development of AI algorithm development, there
is a strong appetite for research and investment by automobile-relatedmanufacturers, precision machinery manufacturers, and telecommunications
infrastructure companies. In addition, the trend toward DX and labor saving
is accelerating from the pandemic (covid-19), and business inquiries to ourcompany are expanding.
(Compiled from each company's published data and newspaper reports)

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Status of increase in engineers (FY2021)

Personnel increase rate 112%Recruitment policy(As of November, 2021)

ca. 10% of total engineers(number of engineers )372400
338

350

305
274

300
250200150248

277

100
500
FY11/20202020年11月期

FY11/2021
2021年11月期

FY11/2022
2022年11月期

実績
actualCopyright ⓒ 2022 T&S inc. All rights reserved.

FY11/2023
2023年11月期

FY11/2024
2024年11月期

目標
goal

11

Statements of Income (FY2021)
Statements of Income (FY2021)(thousand yen)

FY2020

FY2021+/- amount+/- %Net sales

2,266,994

2,732,771

465,777

20.5%

Cost of sales

1,590,086

1,947,231

357,144※

22.5%

Gross profit

676,907785,539

108,632

16.0%

SG&A expenses

372,289372,587

Operating income

304,618

412,952（Operating income rate）（13.4%）（15.1%）

Ordinary income

304,432

419,328（Ordinary income rate）（13.4%）（15.3%）Net income

236,257

294,567（Net income rate）（10.4%）（10.8%）

297※

0.1%

108,334

35.6%

114,89637.7%

58,30924.7%※ The above figures include performance-linked bonuses of 60,000 thousand yen toemployees due to good performance.

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12Balance Sheets (FY2021)

Balance Sheets (FY2021)(thousand yen)

2020/11 End

2021/11 End+/- amount

1,407,497

1,869,946

462,449

Fixed assets

95,425

117,500

22,075

Total assets

1,502,923

1,987,447

484,524

243,604

440,851

197,246

Fixed liabilities

46,96651,513

4,547

Total liabilities

290,571492,364

201,793

Total shareholders’equity1,212,351

1,495,082

282,731

Total net assets

1,212,351

1,495,082

282,731

Total liabilities &net assets

1,502,923

1,987,447

484,524

Current assets

Current liabilities

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FY Earnings Forecast
FY11/2022 Full-year

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FY Earnings Forecast

Forecast to continue strong performance in the fiscal year
ending November 30, 2022, with record-high earnings(million yen)

FY2021/11 (actual)

FY2022/11 (forecast)+/amount+/- %Net sales

2,732

3,100367

13.4

Operating income

412

550

137

33.2

Ordinary income

419

557

138

32.9

Net income

294391

96

32.7

Company✓ Forecasts for continued sales and profit growth in all categories✓ Semiconductor-related business will continue to be active for the time being✓ Significant increase in AI-related sales. Increase in new customers✓ Absorbed expenses for joint R&D with Tohoku University

Solution✓ Orders from major customers for heavy electric machinery and infrastructure-related
systems are strong✓ Large orders from semiconductor-related customers are expected to continue

Semiconductor✓ Increase in engineers dispatch due to the expansion of the factory building by our main
customer, the semiconductor manufacturer

AdvancedTechnology
Solution✓ Increase in AI-related orders, mainly for AI algorithm R&D support services and technicaltreatise survey support✓ Significant increase in AI development support for information infrastructure companies
automobile-related manufacturers, precision equipment manufacturers, etc.
✓ Increase in new clients also contributed

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Shareholder Returns

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Shareholder Returns

Total return ratio for the FY11/2022
is expected to be a maximum of 70.5%.
Basic Policy on Dividends
The Company considers it an important management task to increase corporate value throughinvestment in the acquisition of new technologies in fields where future growth is expected,
and believes that the return of profits to shareholders is the key to achieving this goal.
Our basic policy for profit distribution is to continue to pay appropriate dividends inconsideration of business performance, while giving priority to securing the internal reserves
necessary to improve our corporate value.
As for FY11/2021, the Company plans to pay a dividend of 8.00 yen per share (up from 6.75
yen)(*1), aiming to return profits to shareholders at a payout ratio of approximately 10%, in linewith the above policy.
For the fiscal year ending November 30, 2022, the Company plans to pay a dividend of 5.00 yen
per share (*1), an actual increase of 1.00 yen from the previous year. In addition to this, theCompany will repurchase its shares during FY11/2022 (Up to 250 million yen).
The financial indicators after taking into account the above measures are as follows.
Dividend pershare

Total return ratio (*2)

Return on equity（ROE)FY11/2021 (actual)

8.00yen(*1)

10.4%

21.8%

FY11/2022 (forecast)

5.00yen(*1)

70.5%

25.1%

(*1) The Company conducted a 2-for-1 stock split of common stock on December 1, 2020 and a 1-for-2 stock split on December 1, 2021.

(*2) For FY11/2022, the value assumes that the Company has repurchased its own shares up to the maximum repurchase limit.

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Contact

T&S inc.
Corporate Administration Dept.
Email / pr@tecsvc.co.jp
URL / https://www.tecsvc.co.jp/

Information contained in this material includes those related to prospects. Such information is based on thoseavailable to us at the present moment and certain assumptions that may be considered reasonable. Therefore
we do not guarantee any realization thereof and any future business performance. Various factors such aschanges in the economic climate, industries in general, customers' needs, and legislative changes may bringabout some situations substantially different from the current forecasts. In the future, even if some new
information and some event occur, we have no obligation to carry out any update or revision concerning any
information about the future contained in this material.

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18