Consolidated Financial Results
for the Three Months Ended June 30, 2022
[Japanese GAAP]
August 10, 2022
Company name: Toshiba Tec Corporation
Stock exchange listing: Tokyo
Code number: 6588
URL: https://www.toshibatec.co.jp/
Representative: Hironobu Nishikori
President and CEO
Contact:
Akira Abe
Senior Manager of Corporate Communications Division
Phone: 03-6830-9151
Scheduled date of filing quarterly securities report: August 10, 2022
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 1, 2022 to June 30, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%(2,161)
June 30, 2022
109,2992.1
203(93.8)(2,253)
2,691
June 30, 2021
107,097
26.9
3,299
2,739
(Note) Comprehensive income:Three months ended June 30, 2022:
Three months ended June 30, 2021:
Basic earnings
per share

1,476 million
2,169 million

¥
¥

[
[

(31.9)%]-%]

Diluted earnings
per share

Three months ended
Yen
Yen
June 30, 2022
(39.07)
June 30, 2021
48.92
48.91
(Note) Diluted earnings per share for the three months ended June 30, 2022 is not presented even though the Company has issued
potential shares, because basic earnings per share was net loss.
(2) Consolidated Financial Position
Total assets
As ofJune 30, 2022
March 31, 2022
(Reference) Equity:

Net assets

Capital adequacy ratio

Million yen

Million yen

319,915
310,256

117,456
117,662
112,240 million
111,946 million

As of June 30, 2022:
As of March 31, 2022:

¥
¥

%

35.1
36.1

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2022

-

20.00

-

20.00

40.00

Fiscal year ending March 31, 2023

20.00

-

30.00

50.00

Fiscal year ending March 31, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

450,000

1.1

18,00055.6

15,500

52.0

8,000

48.7

145.21(Note) Revision to the financial results forecast announced most recently:

No* Notes:(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name:
Exclusion:(Company name:No))(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:
Yes(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Notes (3) Notes to the quarterly consolidated
financial statements (Accounting policies adopted specially for the preparation of quarterly consolidated financial statements)” on
page 8 of this report.
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Notes (3) Notes to the quarterly consolidated
financial statements (Changes in accounting policies)” on page 8 of this report.
(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2022:
57,629,140 shares
March 31, 2022:
57,629,140 shares2) Total number of treasury shares at the end of the period:
June 30, 2022:
2,300,783 shares
March 31, 2022:
2,301,938 shares
3) Average number of shares during the period:
Three months ended June 30, 2022:
Three months ended June 30, 2021:

55,328,546 shares
55,012,633 shares* 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(Explanation for the proper use of earnings forecasts)
Financial results forecasts are based on information currently available to the Company and certain assumptions deemed reasonable
and are not intended to be the Company’s guarantee that they will be achieved. Actual results may significantly vary due to a variety
of factors. For the assumptions used as the basis for the earnings forecasts and precautions regarding the use of the earnings forecasts,
please refer to “1. Qualitative information on the financial results for the period under review (3) Consolidated financial results
forecast and other forward-looking information” on page 3 of this report.

Table of Contents of Attachments
1. Qualitative information on the financial results for the period under review

2(1) Operating results

2(2) Financial condition

3(3) Consolidated financial results forecast and other forward-looking information

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statement of Income and Comprehensive Income

6

Quarterly Consolidated Statement of Income (For the three months)

6

Quarterly Consolidated Statement of Comprehensive Income (For the three months)7(3) Notes to the quarterly consolidated financial statements

8

Notes on going concern assumption

8

Notes in the event of significant amount changes in shareholders’ equity

8

Accounting policies adopted specially for the preparation of quarterly consolidated financial statements

8

Changes in accounting policies

8

Additional information

8

Notes to Quarterly Consolidated Balance Sheet

9

Segment information

101

1. Qualitative information on the financial results for the period under review(1) Operating results
The world economy for the three months ended June 30, 2022 was generally on a recovery track due toprogress in balancing economic activities with measures taken to prevent COVID-19 infection in various
countries. However, the economy did not reach a full-fledged recovery due to the unpredictable future
outlook of the Russian-Ukrainian problem and economic activity restrictions in China, in addition to sharp
price rises, soaring raw material prices, and supply restrictions.
Amid such conditions, Toshiba Tec Corporation (the “Company”) and its subsidiaries (collectively, the“Group”) set forth the Basic Policy of the FY22-24 Mid-term Business Plan, “To become a global top
solutions partner by generating new value through co-creation with the aim of contributing to theresolution of social issues.” Under the basic policy, the Group has focused its energy on carrying out
various measures to develop its business. At the same time, as a solutions partner that helps solve issues inthe domains of stores, offices, logistics and manufacturing, the Group has promoted initiatives to achieve
the Sustainable Development Goals (SDGs) together with customers and strived to contribute to realizing
a sustainable society.
In the three months ended June 30, 2022, although sales of POS systems for the domestic market
decreased due to the prolonged impact of COVID-19 and other factors, sales of multifunction peripherals(MFPs) for the overseas market increased due to the impact of foreign exchange rates and other factors,
resulting in net sales of ¥109,299 million (up 2% year on year). Meanwhile, on the profit front,
profitability in the Retail Solutions Business Group deteriorated due to lower sales of POS systems for thedomestic market, tight supply-demand balance and soaring prices in components and international cargotransportation, the increase in “Selling, general and administrative expenses” due to the impact of
exchange rate fluctuations and the positive implementation of digital transformation, etc. resulted inoperating profit of ¥203 million (down 94% year on year), "Loss on valuation of derivatives" associatedwith exchange rate fluctuations and "Foreign withholding tax" associated with dividend payments atoverseas subsidiary as non-operating expenses resulted in ordinary loss of ¥2,253 million (ordinary profitof ¥2,739 million in the same period of the previous fiscal year), and loss attributable to owners of parentof ¥2,161 million (profit attributable to owners of parent of ¥2,691 million in the same period of theprevious fiscal year).
Results of reportable segments for the three months ended June 30, 2022 were as follows.
Retail Solutions Business GroupThe Retail Solutions Business Group handles POS systems for domestic and overseas markets, auto ID
systems for domestic market, and related products. Amid a severe business environment in which theimpact of the spread of COVID-19 and intensifying competition with peers continue, the business grouphas worked on various initiatives under the basic policy of “Aim at becoming a global top solutions
partner in the distribution industry.” These initiatives include solution business expansion through theglobal common retail platform “ELERA” and strategic partnership, concentrated investment in growthfields (data services, next generation stores, payment, and Supply Chain Management (SCM)), and the
expansion of service business in overseas markets.
Sales of POS systems for the domestic market focused on expanding sales mainly of payment terminals,
self-ordering systems, smart receipts by taking into account measures against COVID-19. However, sales
declined due to a continued downturn in the investment appetite of retail and restaurant businesses
affected by the prolonged COVID-19 pandemic, rising prices, and other factors.
Sales of POS systems for overseas markets increased as a result of the steady sales in the Americas,
Europe regions due to the impact of foreign exchange rates and other factors.
Sales of auto ID systems for the domestic market increased, mainly due to an increase in sales of highend barcode printers to specific customers.
As a result, net sales of the Retail Solutions Business Group were ¥63,435 million (down 2% year onyear). Operating profit of the business group was ¥72 million (down 98% year on year) due to lower
sales in addition to tight supply-demand balance and soaring prices in components.

2

Workplace Solutions Business Group
The Workplace Solutions Business Group handles multifunction peripherals (MFPs) for domestic andoverseas markets, auto ID systems for overseas markets, inkjet heads for domestic and overseas markets,and related products. Amid a severe business environment in which the impact of the spread of COVID19, tight supply-demand balance and soaring prices in components and international cargo transportation,
declining printing volume due to post-COVID-19 work style reforms and office DX promotion, andintensifying competition with peers continue, the business group reinforced “Further strengthen our
response capability to market changes” to focus on achieving its targets. At the same time, the businessgroup worked on strengthening solutions including Document Management System (DMS), the auto ID
business, the cloud solutions platform, and other measures in order to expand business in growth areas.
Sales of MFPs increased due to the impact of foreign exchange rates in addition the steady sales in theAmericas, Europe, Asia, and other overseas regions as a result of changing transportation method or routeand focusing on product supply response such as aggressive design changing and adoption of alternative
components, despite the tight supply-demand balance in components and international cargotransportation.
Sales of auto ID systems for overseas markets increased as a result of increased sales in the Americas,
Europe, Asia and other overseas regions.
Sales of inkjet heads increased due to increased sales to domestic and overseas customers.
As a result, net sales in the Workplace Solutions Business Group were ¥46,774 million (up 8% year onyear). Operating profit for the business group improved to ¥131 million (operating loss of ¥143 million in
the same period of the previous fiscal year) due mainly to the increase in net sales despite being affectedby tight supply-demand balance and soaring prices in components and international cargo transportation,and the negative impact of foreign exchange rates.
(Note) An auto ID system is a system that uses hardware and software devices to recognize and manage data
content by automatically scanning barcode and RFID tag data.
(2) Financial condition
Assets at the end of the first quarter of the fiscal year ending March 31, 2023 increased by ¥9,659 million
from the end of the previous fiscal year to ¥319,915 million. This was mainly because merchandise andfinished goods, work in process, and raw materials and supplies in current assets and “Other” ininvestments and other assets increased by ¥5,962 million, ¥2,150 million, ¥2,797 million, and ¥3,307
million, respectively, although notes and accounts receivable - trade, and contract assets in current assets
declined by ¥5,180 million.
Liabilities increased by ¥9,864 million from the end of the previous fiscal year to ¥202,458 million. Thiswas mainly because notes and accounts payable - trade, income taxes payable, and “Other” in current
liabilities and “Other” in non-current liabilities increased by ¥2,265 million, ¥1,533 million, ¥4,254
million, and ¥1,593 million, respectively.
Net assets decreased by ¥206 million from the end of the previous fiscal year to ¥117,456 million. Thiswas primarily due to a decrease in retained earnings of ¥2,161 million owing to the recording of loss
attributable to owners of parent, a decrease of ¥1,106 million due to payment of dividends, a decrease invaluation difference on available-for-sale securities of ¥552 million and a decrease in non-controllinginterests of ¥495 million, although foreign currency translation adjustment increased by ¥4,436 million.
(3) Consolidated financial results forecast and other forward-looking information
The Company has no revision to its consolidated financial results forecast for the fiscal year ending
March 31, 2023 which was announced on May 11, 2022, at the time of the announcement of the financial
results for the fiscal year ended March 31, 2022.
(The reference exchange rates used in the consolidated financial results forecast for the fiscal year ending
March 31, 2023 are ¥120 to the US dollar and ¥135 to the euro.)3

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Million yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits

As of June 30, 2022

38,64534,6998,073

10,11570,846

65,66634,806

40,7685,635
14,04723,363

7,785
16,844
25,101(1,414)(1,389)194,004

199,592

43,76444,945

1,026

941

10,196

9,865

Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts

11,223

10,806

61,351(87)

64,658(87)

Total investments and other assets

61,26464,571

116,252

120,322

310,256

319,915

Group deposits paid
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other

Total non-current assets
Total assets

4

(Million yen)
As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable

53,341859

55,606
911

2,846

4,379

Other

79,967

84,221

Total current liabilities

137,014145,119

Non-current liabilities
Long-term borrowings

1,043

1,090

Retirement benefit liability
Other29,56524,97029,68426,563

Total non-current liabilities

55,57957,338

Total liabilities

192,594

202,458

Net assets
Shareholders’ equity
Share capital

39,97039,970Retained earnings

854
55,977855
52,708Treasury shares(4,733)(4,732)

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

92,06888,803

1,626

1,073

12

(76)

Foreign currency translation adjustment
Minimum pension liability adjustments

15,819(694)

20,255(724)

Remeasurements of defined benefit plans

3,114
19,8772,909
23,437

48
5,667

43
5,171

117,662

117,456

310,256

319,915

Capital surplus

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets5(2) Quarterly Consolidated Statement of Income and Comprehensive Income
Quarterly Consolidated Statement of Income (For the three months)(Million yen)
For the three months
ended June 30, 2021

For the three months
ended June 30, 2022

Net sales

107,097

109,299

Cost of sales

64,594

66,775Gross profit

42,50342,524

Selling, general and administrative expenses

39,20442,320Operating profit

3,299

203

81

54

Non-operating income
Interest income
Dividend income
Gain on valuation of derivatives
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses

21

55

289

-

-

203

90
482

90
405

123

112

-

1,050

Foreign exchange losses

521-

Foreign withholding tax

175

1,249

221
1,042

449
2,862

Ordinary profit (loss)

2,739(2,253)Extraordinary losses
Restructuring cost

58

22

Loss on valuation of derivatives

Other
Total non-operating expenses

Total extraordinary losses

58

22

Profit (loss) before income taxes

2,680(2,275)

Income taxes

495

256

Profit (loss)
Loss attributable to non-controlling interests

2,184(2,531)

(507)

(369)

Profit (loss) attributable to owners of parent

2,691(2,161)

6

Quarterly Consolidated Statement of Comprehensive Income (For the three months)(Million yen)
For the three months
ended June 30, 2021

For the three months
ended June 30, 2022

2,184

(2,531)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(144)
17

(552)
(88)

Foreign currency translation adjustment
Minimum pension liability adjustment

204
(9)

4,884
(29)

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income

(82)
(14)

(205)
4,008

2,169

1,476

2,645
(475)

1,397
79

Profit (loss)
Other comprehensive income

Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests7(3) Notes to the quarterly consolidated financial statements
Notes on going concern assumption
Not applicable
Notes in the event of significant amount changes in shareholders’ equity
Not applicable
Accounting policies adopted specially for the preparation of quarterly consolidated financial statements
Calculation of tax expenses
Tax expenses are calculated by reasonably estimating the effective tax rate after the application of tax effectaccounting for profit before income taxes for the consolidated fiscal year including the first quarter underreview and multiplying profit before income taxes by the estimated effective tax rate.
Provided, however, that if calculation using the estimated effective tax rate turns out to be significantly
unreasonable, calculations are made pursuant to Paragraph 15 (Method of using the statutory effective tax rate)of the Implementation Guidance on Tax Effect Accounting for Interim Financial Statements (AccountingStandards Board of Japan (ASBJ) Guidance No. 29, February 16, 2018), according to the provisions ofParagraph 19 of the Implementation Guidance on Accounting Standard for Quarterly Financial Reporting(ASBJ Guidance No. 14, March 31, 2020).
Income taxes – deferred are included in income taxes.
Changes in accounting policies
Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the Implementation Guidance on Accounting Standard for Fair Value
Measurement (ASBJ Guidance No. 31, June 17, 2021; hereinafter, the “Implementation Guidance on Fair
Value Measurement Standard”) from the beginning of the first quarter of the fiscal year ending March 31,
2023. In line with the transitional treatment stipulated in Paragraph 27-2 of the Implementation Guidance on
Fair Value Measurement Standard, the Company will apply the new accounting policy provided by the
Implementation Guidance on Fair Value Measurement Standard prospectively. This does not affect thequarterly consolidated financial statements.
Additional information
Effective from the first quarter of the fiscal year ending March 31, 2023, the Company and some of its
domestic consolidated subsidiaries have shifted from the consolidated taxation system to the group tax sharing
system. In accordance with this change, the accounting treatment and disclosure of corporate and local income
taxes and tax effect accounting are in accordance with the Practical Solution on the Accounting and Disclosure
Under the Group Tax Sharing System (ASBJ Practical Solution No. 42, August 12, 2021; hereinafter, the“Practical Solution No. 42”). In addition, in accordance with Paragraph 32 (1) of the Practical Solution No. 42,
the Company has deemed that there is no impact of the change in accounting policy resulting from theapplication of the Practical Solution No. 42.

8

Notes to Quarterly Consolidated Balance Sheet
Litigations, etc.
The Company and a domestic subsidiary received a petition for order of provisional disposition and acomplaint for patent infringement in June 2021 and a petition for order of provisional disposition in February2022, filed by Teraoka Seiko Co., Ltd. in the Tokyo District Court for infringement of its patent rights related
to semi-self checkout. (Hereinafter, the “Litigations, etc.”)
On the other hand, the Company filed several petitions for provisional disposition with the Tokyo District
Court, with Teraoka Seiko Co., Ltd. and its group company DIGI I's Ltd. as debtors, based on the patent rights
held by the Company. The Company has been taking appropriate measures after carefully examining thedetails of the case. However, the court has actively encouraged to settle for both plaintiffs and defendants, andsince July 2022, the Company has begun settlement negotiations with the plaintiffs in an effort to reach aresolution. As negotiations are currently ongoing, the details of the case are not disclosed.
There is a possibility that payment will be made as a result of a settlement or trial in the future, and that theGroup’s business performance may be affected. Since the negotiations are confirming the facts recognized byboth parties, the trial is still ongoing, and the results of similar patent disputes that have occurred in the past
have varied, it is difficult to infer the results of the Litigations, etc. by referring to them. As a result, it isdifficult to reasonably estimate the amount of the impact at this time, and no provision has been recorded at theend of the first quarter of the fiscal year ending March 31, 2023.

9

Segment information
I Three months ended June 30, 2021
Amounts of net sales, profit or loss by reportable segment(Million yen)
Reportable segments

Net sales
Sales to external customers
Intersegment sales and transfers

Retail Solutions

Workplace
Solutions

64,90842,189Adjustment
Total

107,097

－

20

976

997

(997)

Total

64,92843,165108,094

Segment profit (loss)

3,442

(143)

3,299

(997)
－

Consolidated
amount(Note)

107,097－
107,097
3,299(Note) Segment profit (loss) corresponds with operating profit in the quarterly consolidated statement of income.

II Three months ended June 30, 2022
Amounts of net sales, profit or loss by reportable segment(Million yen)
Reportable segments
Retail Solutions
Net sales
Sales to external customers
Intersegment sales and transfers
Total
Segment profit

Workplace
Solutions

Adjustment
Total

63,42145,878109,299

－

13

895

909

(909)

63,435

46,774110,209

72

131

203

(909)
－

Consolidated
amount(Note)(Note) Segment profit corresponds with operating profit in the quarterly consolidated statement of income.

*Supplementary information
Average exchange rate
(Yen to the US dollar)
Average exchange rate
(Yen to the euro)Three months ended June 30, 2021

Three months ended June 30, 2022

109.79126.51131.84136.75

10

109,299－
109,299203