FOR TRANSLATION PURPOSE ONLY

Summary of Financial Results
for the Third Quarter of the Fiscal Year 2021 (FY11/2021)［ Japan Standards ］(Non-Consolidated)
October 15, 2021
Company name:

T&S inc.

Listing:

Tokyo Stock Exchange

Securities code:

4055

Representative:

President and CEO

URL:

https://www.tecsvc.co.jp/

Contact:

Director, Executive Officer and General Manager of Corporate Division
Hiroshi Kinoshita
Tel: 81-45-263-8286

Yoshihiro Takekawa

Scheduled date of file of Quarterly Securities Report:

October 15, 2021

Scheduled date of to commence dividend payments:-

Preparation of supplementary material on financial results:

Yes

Holding of financial results meeting:No(Amounts less than one million yen are rounded down)

1.

Financial results of the Third Quarter of FY11/2021 (December 1, 2020 - August 31, 2021)(1) Operating results (cumulative)(Percentages indicate year-on-year changes)
Net Sales
3Q of FY11/2021
3Q of FY11/2020

Ordinary income

Operating income

Quarterly Net Income

Million Yen％

Million Yen％

Million Yen％

Million Yen

％

1,975
1,652

19.6
－

278
215

28.9
－

284
216

31.6
－

199
148

34.0
－

Net Income
per share
3Q of FY11/2021
3Q of FY11/2020

Diluted net income
per share
Yen

Yen

53.79
46.63

51.51
42.61

(Notes)
1. As of August 7, 2020, the company got listed on the Tokyo Stock Exchange, after the 3Q of FY11/2020 adjustment wasmade with diluted shares, the average share price for the period from the date of initial public offering to the end of the
3Q of FY11/2020 is deemed to be the average share price.
2. As of April 14, 2020, the company carried out a 1,100-for-1 share split of its ordinary shares. On December 1, 2020,
the company carried out a 2-for-1 stock split of its ordinary shares. Net income per share and adjusted diluted net income
per share has been calculated based on the assumption that the stock split was carried out at the beginning of FY11/2020.
(2) Financial Position
Total Assets
3Q of FY11/2021
FY11/2020(Reference) Shareholders’ equity

Equity Ratio

Net Assets

Million Yen

Million Yen

%

1,766
1,502

1,400
1,212

79.3%
80.7%

3Q of FY11/2021: 1,400 million yen
FY11/2020: 1,212 million yen

2.

Dividends
1Q-endFY11/2020
FY11/2021
FY11/2021 (forecasts)

2Q-endAnnual dividends per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

－
－

0.00
0.00

－
－

13.50

13.50

6.75

6.75

FOR TRANSLATION PURPOSE ONLY

(Notes)
1. Revisions to dividend forecasts published most recently:
No
2. The Company carried out share splitting to split one share into two shares, on December 1, 2020.
Dividends for FY11/2020 are actual amounts of dividends before such share splitting.
Performance forecasts for FY11/2021 (December 1, 2020 - November 30, 2021)(Percentages indicate year-on-year changes)
Net income
Net Sales
Operating Income
Ordinary income
Net income
per share
Million Yen
Million Yen％ Million Yen％ Million Yen％ Million Yen％
Full year
77.09
2,720
20.0
405
33.0
410
34.7
287
21.9

3.

(Note)
Revisions to performance forecasts published most recently:

Yes* Notes(1) Application of special accounting methods to the preparation of quarterly financial statements:

No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
1. Changes in accounting policies due to revisions to accounting standards and other regulations:No
2. Changes in accounting policies due to other reasons (mentioned in 1.):No
3. Changes in accounting estimates:
No
4. Restatement of prior period financial statements
No(3) Number of issued shares (common shares)
1. Total number of issued shares at the endof period (including treasury stock)

3Q FY11/2021

3,816,600
shares

FY11/2020

3,585,600
shares

2. Number of treasury stock at the end of
the period

3Q FY11/2021－
shares

FY11/2020－
shares3Q FY11/2021

3,709,378
shares3Q FY11/2020

3,193,545
shares

3. Average number of shares during
the period(Note) The company carried out share splitting to split one share into 1,100 shares, on April 14, 2020, and further carried out share
splitting to split one share into two shares, on December 1, 2020. Total number of issued shares at the end of the period, number oftreasury stock at the end of the period, and average number of shares during the period are calculated assuming that such share splitting
was carried out at the beginning of FY11/2020.
* Summary of financial results is not covered by audit by a certified public accountant or an auditing firm.
* Explanation regarding appropriate use of performance forecasts and other special notes(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 should assure that
it would realize such forecast. Meanwhile, actual performance in the future may differ substantially, influenced by a wide variety offactors. For preconditions for performance forecasts and precaution statements in using such forecasts, please see the appendix, page 3,“1. Qualitative Information regarding the Financial Results for the Current Quarter: (3) Descriptions regarding prospects such as
performance forecasts”.
(How to obtain supplementary references regarding quarterly results)
Quarterly supplementary material on financial results is concurrently disclosed on TDnet.

T&S inc. (4055)

FOR TRANSLATION PURPOSE ONLY

Summary of Financial Results for the Third Quarter of FY11/2021

Table of contents: Appendix
1.

Qualitative Information regarding the Financial Results for the Current Quarter ……………………………………… 2(1) Descriptions regarding operating results ……………………………………………………………………………… 2(2) Descriptions regarding financial position…………………………………………………………………………… 2(3) Descriptions regarding prospects such as performance forecasts …………………………………………………… 3

2.

Quarterly Financial Statements and Principal Notes ……………………………………………………………………

4(1) Quarterly Balance Sheet ………………………………………………………………………………………………

4(2) Quarterly statement of income ………………………………………………………………………………………

5（The third quarter cumulative period） ……………………………………………………………………………

5(3) Notes on Quarterly Financial Statements ……………………………………………………………………………

6（Going Concern Assumption） ……………………………………………………………………………………

6（Notes in case of Significant Changes in amount of Shareholders’ Equity………………………………………

6（Segment information） ……………………………………………………………………………………………

6

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T&S inc. (4055)

FOR TRANSLATION PURPOSE ONLY

Summary of Financial Results for the Third Quarter of FY11/2021

1. Qualitative Information regarding the Financial Results for the Current Quarter(1) Descriptions regarding operating results
During the current Third Quarter cumulative period, the Japanese economy faced a difficult situation due to the nationwide
spread of the virus (covid-19), which led to the declaration of a state of emergency and priority measures to prevent the spreadof the disease. In addition to the effects of various policies and improvements in overseas economies, there were expectations ofa return to normalization of socioeconomic activities as vaccinations began to progress in earnest, but the timing of the end of
covid-19 remains uncertain. On the other hand, the importance of IT and the trend toward IT in business operations continues togrow within corporate activities, including the use of telecommunication and online meetings, cloud service, and theadvancement of DX (Digital Transformation).
Our business is in a single segment of system development and related services; we are developing our business in threecategory structures - Solution, Semiconductor, and Advanced Technology solution. Despite the economic environment
mentioned above, the Solution business continued to provide IT human resources without specializing in industrial fields andexpanded its business to support IT development. In the Semiconductor business, our business grew in the maintenance andoperation of factory systems, IT helpdesk services and other general support services for the operation of IT infrastructure insemiconductor factories. In the Advanced Technology solution category, we sought to expand the provision of solutions into thecompany developing AI-related products.
As a result, in the current Third Quarter cumulative period, net sales were 1,975,571 thousand yen (up 19.6% year-on-year),with a good business performance granted a performance-linked bonus of 45,000 thousand yen to employees. Operating income
was 278,209 thousand yen (up 28.9% year-on-year), ordinary income was 284,274 thousand yen (up 31.6% year-on-year), andquarterly net income was 199,544 thousand yen (up 34.0% year-on-year). In addition, although hiring new engineers has slowed
down, the number of recent graduates and mid-career engineers employed has progressed to 45 employees.
Operating results by category for the current fiscal year are as follows.
① Solution Category
Net sales in the current Third Quarter cumulative period were 1,518,241 thousand yen (up 14.9%, year-on-year).
Orders for contract development projects from our major clients continued to be strong. A great demand from one of the
major semiconductor manufacturers Kioxia Corporation (our major clients) for developing an in-plant system contributed toa significant increase in revenue.
② Semiconductor Category
Net sales in the current Third Quarter cumulative period were 345,540 thousand yen (up 33.0%, year-on-year).
The number of dispatched engineers involved in maintenance and operation services at semiconductor plants increased
significantly, as major clients expanded their facilities on the back of growing demand for semiconductors.
③ Advanced Technology Solution Category
Net sales in the current Third Quarter cumulative period were 111,789 thousand yen (up 57.2%, year-on-year).
Orders for AI-related R&D support services and support for technical treatise survey continued to grow steadily, as well asorders from new clients. Especially the expansion of business with NEC Corporation, which began in the previous fiscal year,
has contributed to our sales, and the development of new business partners resulted in sales growth of more than 50% comparedto the same quarter of the previous fiscal year.
(2) Descriptions regarding financial positions(Assets)
Current assets at the end of the third quarter of the current fiscal year were 1,633,170 thousand yen, increasing 255,673
thousand yen compared to the end of the previous fiscal year. This was mainly due to an increase of 151,515 thousand yen in
cash and deposits due to the recording of net income for the quarter, 41,815 thousand yen in accounts receivable-other and anincrease of 38,503 thousand yen in notes and accounts receivable-trade due to growth in sales. Fixed assets total 103,204
thousand yen, increasing 7,779 thousand yen compared to the end of the previous fiscal year. This was mainly due to anincrease in deferred tax assets of 9,307 thousand yen due to the rise in the provision for bonuses.
As a result, total assets amounted to 1,766,375 thousand yen, increasing 263,452 thousand yen compared to the end of theprevious fiscal year.
(Liabilities)
Total current liabilities were 316,432 thousand yen at the end of the third quarter of the current fiscal year, i.e. increase by
72,828 thousand yen compared to the end of the previous fiscal year. Mainly due to an increase of 65,444 thousand yen in theprovision for bonuses, an increase of 25,515 thousand yen in income taxes payable, an increase of 25,118 thousand yen in- 2 -T&S inc. (4055)

FOR TRANSLATION PURPOSE ONLY

Summary of Financial Results for the Third Quarter of FY11/2021

accounts payable, a decrease of 28,999 thousand yen in accrued expenses due to the payment of winter bonuses. Long-term
liabilities totaled 49,883 thousand yen, increasing by 2,917 thousand yen from the end of the previous fiscal year. Due to anincrease of 2,917 thousand yen in the provision for retirement benefits.
As a result, total liabilities were 366,316 thousand yen, i.e. increase by 75,745 thousand yen as compared to the end of theprevious fiscal year.
(Net Assets)
Total net assets were 1,400,058 thousand yen at the end of the current Third Quarter fiscal period, i.e. increase of 187,707
thousand yen compared to the end of the previous fiscal year. This is mainly because of retained increase of 199,544 thousand
yen through recording quarterly net income, whereas it decreased by 24,202 thousand yen due to dividends.
(3) Descriptions regarding prospects such as performance forecasts
The Company has revised its full-year forecasts for the fiscal year ending, as net sales, operating income, ordinary income,and current net income are each expected to exceed the previous forecasts.
For more details, please refer to the "Notice Concerning Revision of Earnings Forecast"(Japanese only) released today(October 15, 2021).

- 3 -T&S inc. (4055)

FOR TRANSLATION PURPOSE ONLY

Summary of Financial Results for the Third Quarter of FY11/2021

2. Quarterly Financial Statements and Principal Notes(1) Quarterly Balance Sheets(Thousands of yen)Previous fiscal year
(Nov. 30, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Work in progress
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
Capital stock
Capital surplus
Retained earnings
Total shareholders' equity
Total net assets
Total liabilities and net assets- 4 -Current Third Quarter of
Fiscal period(Aug. 31, 2021)

1,016,928
250,442
6,147
121,206
13,672△900
1,407,497

1,168,443
288,946
30,770163,02113,089△1,1001,663,170

23,542
1,178
70,704
95,425
1,502,923

22,056
1,860
79,287103,204
1,766,375

64,47342,326
5,822
130,981
243,604

89,592
67,841
71,26687,731
316,432

38,895
8,071
46,966
290,571

41,812
8,071
49,883366,316

334,600
285,929591,821
1,212,351
1,212,351
1,502,923

340,783
292,112767,162
1,400,058
1,400,058
1,766,375

T&S inc. (4055)

FOR TRANSLATION PURPOSE ONLY

Summary of Financial Results for the Third Quarter of FY11/2021(2) Quarterly statements of income（The third quarter cumulative period）(Thousands of yen)
Former Third Quarter
Cumulative Period(Dec. 1, 2019 – Aug.31, 2020)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Grant income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Share issuance cost
Other
Total non-operating expenses
Ordinary income
Net income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Quarterly Net income- 5 -Current Third Quarter
Cumulative Period(Dec. 1, 2020 – Aug. 31, 2021)

1,652,086
1,153,694
498,391
282,568
215,823

1,975,571
1,414,880
560,691
282,481278,209

1
－
3,000
22
3,024

4
660
5,550
0
6,215

2,785
0
2,785
216,061
216,061
42,987
24,16867,155
148,9051500
150
284,274
284,274
94,038△9,30784,730199,544

T&S inc. (4055)

FOR TRANSLATION PURPOSE ONLY

Summary of Financial Results for the Third Quarter of FY11/2021(3) Notes on Quarterly Financial Statements(Going Concern Assumption)
Not applicable(Notes in case of Significant Changes in the amount of Shareholders’ Equity)
Not applicable(Segment information)
I.
Former Third Quarter Cumulative Period (Dec 1, 2019 – Aug 31, 2020)
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 Third Quarter Cumulative Period (Dec 1, 2020 – Aug 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.

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