FY11/2022 Full-year
Supplementary Material
on Financial Results
T&S inc.
TSE Growth: 4055
January 13, 2023

Copyright ⓒ 2023 T&S inc. All rights reserved.

Table of Contents

FY11/2022 Full-year
Highlights

p. 3

Financial Results Overview

p. ４

Operating Profit

p. 6

Net Sales by Categoryp. 7

Net Sales by Customer

p. 8

Quarterly Net Sales and Operating profit

p. 9

Business environment

p. 10

Status of increase in engineers

p. 11Statement of Income

p. 12

Balance Sheets

p. 1３

FY Earnings Forecast

p. 1４

Shareholder Returns

p. 16

Copyright ⓒ 2023 T&S inc. All rights reserved.

2

Highlights (FY11/2022)(Theme of current term)

Accelerated Growth１

２

Record-high revenues achieved(Compared to the previous year)

Net sales: 3,256 million yen （Up 19.2% ↑： +524 million yen）

(YoY)

Operating profit:

617 million yen （Up 49.6% ↑： +204 million yen）

(ditto)Ordinary profit:

626 million yen （Up 49.3% ↑： +206 million yen）

(ditto)Profit:

440 million yen （Up 49.5% ↑： + 145 million yen）

(ditto)Advanced technology solutions made a breakthrough.
Other categories also performed well.
 Sales in the Advanced Technology Solution category increased 44.9% YoY. Continued orders for
AI-related R&D support services and image processing algorithm development, and new visualinspection system development has been performing well. In addition to projects from existingclients such as NEC Corporation, which remained stable from the previous year, business withOMRON Corporation has increased. The proportion of sales in this category to the company
increased from 6.1% in the previous year to 7.4% in the fiscal year.
 Sales in the Solution category increased 15.6% YoY. Orders for contracted development projects
from major customers remained strong. In particularly, the large development projects for infactory systems from semiconductor manufacturers contributed to the sales.
 Sales in the Semiconductor category increased 26.0% YoY. The number of engineers dispatched
for maintenance and operation services at semiconductor plants remained strong. As well as
requests for an increase in the number of outsourcing engineers.

３

FY11/2023 will continue strong performance.
Expected to exceed record-high.
Net sales: 3,700 million yen （YoY Up 13.6% ↑： + 443 million yen）

Operating profit:

700 million yen （YoY Up 13.3% ↑： + 82 million yen）

Copyright ⓒ 2023 T&S inc. All rights reserved.

3

Financial Results Overview
FY11/2022 Full-year

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4

Financial Results Overview (FY11/2022)
Record-high revenues achieved (compared to the previous year)
Net sales: 3,256 million yen （Up 19.2% ↑： + 524 million yen）

(YoY)

Operating profit:

617 million yen （Up 49.6% ↑： + 204 million yen）

(ditto)Ordinary profit:

626 million yen （Up 49.3% ↑： + 206 million yen）

(ditto)Profit:

440 million yen （Up 49.5% ↑： + 145 million yen）

(ditto)Net Sales(Unit: million yen)

Up
19.2%

4,000

3,000

(Unit: million yen)

Operating Profit

1,000

3,256

Up
49.6%

800

2,732
600

2,000
400
1,000

617 *

412 *

200

0

0
FY11/2021

FY11/2022

FY11/2021

FY11/2022* In view of the good performance, performance-linked bonuses for employees of 61 million yen in
FY11/2022 and 60 million yen in FY11/2021 were recorded.

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5

Operating Profit (FY11/2022)
Increased operating profit by 204 million yen,absorbing performance-linked bonuses*(compared to the previous year)
Increase(Unit: million yen)

Decrease

Operating
営業利益
営業利益profit

Operatingprofit ratio
19.0%

Operatingprofit ratio
15.1%
Mainly due to an increase in
the number of engineers
Increased labor andoutsourcing costs

FY11/2021
OperatingprofitIncreased
sales

Labor cost
increase incost of sales

Outsource fee
increase incost of sales

Otherdecrease incost of sales

Increase in
SG&A
expenses

FY11/2022
Operatingprofit* The Company has recorded 61 million yen in FY11/2022 and 60 million yen in FY11/2021.
Copyright ⓒ 2023 T&S inc. All rights reserved.

6

Net Sales by Category (FY11/2022)
Sales increased in all categories
Up 44.9% in Advanced Technology Solution(compared to the previous year)

Net Sales (by category)(Unit: million yen)

Sales proportion(by category)

Solution
Advanced Technology Solution

2,101

FY11/2021

Up
15.6%

+328
2,429

FY11/2022
1,000

1,500

2,000

2,500

3,000

Up
26.0%

+120
584
0

200

400

600

800

1,000

Solution

167

Up
44.9%

+75
242

FY11/2022
0

100

200

300

FY11/2022
3,256 mil yen

Advanced technology solution
FY11/2021

7.4%

584 mil yen
18.0%

464

FY11/2022

mil yenSemi
conductor

Semiconductor
FY11/2021

242

400

2,429 mil yen
74.6%

500

(Note) Our business segment is a single segment. Only net sales are calculated by category.
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7

Net Sales by Customer (FY11/2022)
Toshiba G, Hitachi G, Kioxia G

Major customers maintaining steady level
Sales to Kioxia G significantly increased（Up 63.5% （YoY） Composition ratio of 29.4%)
Sales proposition(by customer)

Net Sales (by customer) (Unit: million yen)
東芝G
ToshibaG

HitachiG
日立G

FY11/2022

FY11/2021

Down
6.3% *

848
794

FY11/2021

Up
19.3%

589
703

FY11/2022

OthersToshibaG

24.6%

24.4%

FY11/2022
キオクシアG
Kioxia G

FY11/2021

Up957 63.5%585

FY11/2022

HitachiG
KioxiaG

その他
Others

FY11/2022

200

400

Up
12.9%

709
801

FY11/2021

600

800

1,000

21.6%

29.4%

1,200

* Following the reorganization of Toshiba G, sales of 124million yen to Kioxia Engineering Co. (former Chubu
Toshiba Engineering co.) from the third quarter of this fiscal year. Taking this into account, sales to Toshiba G
increased by 8.4% in real terms.
Copyright ⓒ 2023 T&S inc. All rights reserved.

8

Quarterly Net Sales and Operating profit (FY11/2022)
Full-year net sales : 3,256 million yen
Increase: +524 million yen, Up 19.2%(compared to the previous year)

Full-year operating profit: 617 million yen
Increase: +204 million yen, Up 49.6%(compared to the previous year)(unit: million yen)

3,500

(unit: million yen)
Net Sales
3,256mil yen+524
mil yen600

19.2% up

Net Sales

2,500

売
上
高

2,732mil yen
4Q

757mil yen
27.7%

2,000

688mil yen
3Q
1,500
25.2%
1,000 2Q 700 mil yen
25.6%
500
0

586 mil yen
1Q
21.5%

+204 mil yen
49.6% up

918 mil yen
4Q 28.2%
3Q

770mil yen
23.7%

834mil yen
2Q
25.6%
1Q

733mil yen
22.5%

2021/112022/11(Actual)(Actual)500
Operating profit

3,000

Operating profit
617mil yen
194mil yen
4Q 31.5%

412 mil yen
400

134 mil yen
4Q 32.6%

3Q

136 mil yen
22.1%

106mil yen
25.7%

2Q

160 mil yen
25.9%

100 mil yen
24.4%
mil yen
1Q 71
17.3%
0
2021/11

1Q

126mil yen
20.5%

営
業
利 300
益

200

3Q

2Q
100

(Actual)2022/11(Actual)* Some seasonal fluctuations can be observed in the company's
performance due to the number of engineers and project delivery times.
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9

Business environment – Trend of Major Customers

Trend of Major Customers(As of January 13, 2023)

Our orders continue to be strong, and our major customers are also doing well. Even in thesemiconductor industry which is said to be experiencing a slowdown, there is a strong
appetite for medium-to long-term investment. Although each company has been overcoming
the effects of the impact of Covid-19, the response to geopolitical risks remains a challenge.

Toshiba G

Hitachi G

Kioxia G

Other

Energy systems and infrastructure-related sales grew. In particular, we see thestrong performance of the power plant-related energy system solutions
segment, in which we are involved in system development, as a tailwind for theCompany.
Strong orders, particularly in Digital Systems & Services and Clean Energy &Mobility sector. Profit for the year is forecast to reach a record-high. Capital
investment in social infrastructure related to our business is also on the rise,reversing the trend of restraint due to Covid-19.
Due to a drop in demand for semiconductors, for PCs and smartphones, there
has been a 30% production adjustment made. The maintenance and operationof factory systems in which we are involved is not closely related to capacity
utilization, so the impact is negligible. In addition, the flash memory market's
long-term trend is expected to increase. In relation with significant government
subsidies towards new investments towards equipment, our company expects toreceive more system development orders.
In the field of R&D for AI algorithm development, automotive-related
manufacturers, precision machinery manufacturers, and telecommunication
infrastructure companies have a strong appetite for research investment. The
trend toward DX and manpower saving is accelerating in the midst of Covid-19,
and inquiries to our company are expanding.

(Compiled from publicly available information and media reports by the respective companies)
Copyright ⓒ 2023 T&S inc. All rights reserved.

10

Status of increase in engineers
In addition to increasing the number of employeeengineers, the BP* workforce was expanded.

(Unit: No. of
employees)

Employee engineers increase rate

2.9%

BP orders increase rate

31.1%

Changes in number of employees

Changes in the number of BP orders

150

400

300

(Unit: No.
of orders)

296

304

19

19

277

285

267

100

19
200

248

118
50

100

90
61

0
FY11/20202020年11月期

FY11/2021
2021年11月期

Engineer
エンジニア

FY11/2022
2022年11月期

0
2020年11月期
FY11/20202021年11月期
FY11/2021

2022年11月期
FY11/2022

Staff
スタッフ

*BP is business partner. Engineers engaged in our business in the form of outsourcing etc.
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11

Statement of Income (FY11/2022)
Statement of Income (FY11/2022)
Unit: thousand yen

FY11/2021

FY11/2022+/- amount+/- %Net sales

2,732,771

3,256,855

524,083

19.2%

Cost of sales

1,947,231

2,243,118

295,886 *15.2%

Gross profit

785,539

1,013,736

228,196

29.0%

SG&A expenses

372,587

395,823

23,236 *6.2%

Operating profit

412,952

617,913204,960

49.6%（15.1%）（19.0%）

419,328

626,244

206,91649.3%（15.3%）（19.2%）

294,567

440,238

145,670

49.5%（10.8%）（13.5%）（Operating profit rate）

Ordinary profit（Ordinary profit rate）

Profit（Profit rate）* Includes performance-linked bonuses of 61,000 thousand yen in FY11/2022 and 60,000 thousand yen
FY11/2021 for employees due to good performance.

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12Balance Sheets (FY11/2022)

Balance Sheets (FY11/2022)
Unit: thousand yen

FY11/2021

FY11/2022+/- amountCurrent assets

1,869,946

2,110,767

240,820

Fixed assets

117,500

170,732

53,231

Total assets

1,987,447

2,281,500

294,052

Current liabilities

440,851498,233

57,382

Fixed liabilities

51,51349,763△1,750Total liabilities

492,364

547,996

55,631

Total shareholders’ equity

1,495,082

1,733,503

238,420

Total net assets

1,495,082

1,733,503

238,420

Total liabilities & net assets

1,987,447

2,281,500

294,052

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13

FY Earnings Forecast
FY11/2023 Full-year

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14

Earnings Forecast(theme)Sustained Growth

Strong performance is expected to continue in FY11/2023
and revenues are expected to reach a record high.
FY11/2023(forecast)+/- amount

3,256

3,700

443

13.6%

Operating profit

617

700

82

13.3%

Ordinary profit

626

703

77

12.3%

Net profit for fiscal year

440

495

54

12.5%

Unit: million yen

Net sales

FY11/2022(actual)+/- %Company

All categories are expected to perform well. Enquiries for development projects from major
customers remain strong. No major changes in cost structures. Although the company isincreasing its use of outsourcing to supplement its engineering resources, it expects toshift to more profitable projects and anticipates an operating profit margin of 18.9%.

Solution

System development projects from three major corporate groups (Toshiba Group, HitachiGroup, and Kioxia Group), which are our main clients, are expected to remain strong.

Semi
conductor

Despite adjustments in production at the semiconductor plants, plants are operation arestable and expansion plans continue. The supply of engineering personnel for maintenanceand operational services at the plants are expected to continue.

Advanced
Technology
Solution

AI projects related to deep learning technology from major manufacturers and image
processing algorithm development projects are expected to continue to increase. An
ongoing and new orders for AI-related R&D support services are expected to increase, andthe ratio in this sector of the company's total sales is expected to increase.

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15

Shareholder Returns

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16

Shareholder Returns
Dividend ratio for FY11/2023 is targeted at 10%
Basic Policy on dividends
The Company considers it an important management task to increase
corporate value through investment in the acquisition of new technologies
in fields where future growth is expected, and believes that the return ofprofits to shareholders is the key to achieving this goal.
Our basic policy for profit distribution is to continue to pay appropriate
dividends in consideration of business performance, while giving priority tosecuring the internal reserves necessary to improve our corporate value.
As for FY11/2023, the Company forecasts to pay a dividend of 6.55 yen per
share (up 0.55 yen), aiming for a dividend payout ratio of around 10%, in linewith the above policy.
The financial indicators after taking into account the above measures are as
follows.
Dividend per share

Dividend ratio

Return on equity（ROE）

FY11/2022(Planned)

6.00yen

10.3%

27.3%

FY11/2023(Forecast)

6.55yen

10.0％

25.3%

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17

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