Consolidated Financial Results
for the Six Months Ended September 30, 2022
[Japanese GAAP]
November 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
General Manager of Corporate Communications Division
Phone: 03-6830-9151
Scheduled date of filing quarterly securities report: November 11, 2022
Scheduled date of commencing dividend payments: December 1, 2022
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 to September 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
Six months ended
Million yen%
Million yen%
Million yen%
Million yen%
September 30, 2022
243,869
12.4
5,955
37.5
2,783
(9.6)
(6,370)
September 30, 2021
216,977
13.2
4,332
3,079
2,464
(1,395)
million[(Note) Comprehensive income:Six months ended September 30, 2022:¥%]-%]
Six months ended September 30, 2021:¥ 2,032 million [Basic earnings
per share

Diluted earnings
per share

Six months ended
Yen
Yen
September 30, 2022
(115.12)September 30, 2021
44.79
44.78
(Note) Diluted earnings per share for the six months ended September 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 of
September 30, 2022
March 31, 2022
(Reference) Equity:

Net assets

Capital adequacy ratio

Million yen

Million yen

324,695
310,256

114,670
117,662
109,405 million
111,946 million

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

¥
¥

%

33.7
36.1

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

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
-

20.00

40.00

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

Year-end

Total

Yes

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

520,000

16.8

14,00021.0

10,000(1.9)(2,500)-(45.17)(Note) Revision to the financial results forecast announced most recently:

Yes* Notes:(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):
No
New(Company name:
Exclusion:(Company name:))(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 (4) Notes to the quarterly consolidated
financial statements (Accounting policies adopted specially for the preparation of quarterly consolidated financial statements)” on
page 10 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 (4) Notes to the quarterly consolidated
financial statements (Changes in accounting policies)” on page 10 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):
September 30, 2022:
57,629,140 shares
March 31, 2022:
57,629,140 shares2) Total number of treasury shares at the end of the period:
September 30, 2022:
2,280,688 shares
March 31, 2022:
2,301,938 shares
3) Average number of shares during the period:
Six months ended September 30, 2022:
Six months ended September 30, 2021:

55,335,806 shares
55,020,601 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 4 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

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statement of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income (For the six months)

7

Quarterly Consolidated Statement of Comprehensive Income (For the six months)

8(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to the quarterly consolidated financial statements

10Notes on going concern assumption

10

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

10

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

10

Changes in accounting policies

10

Additional information

10

Notes to Quarterly Consolidated Statement of Income

11

Segment information

11

3. Supplementary information

12(1) Changes in information about financial results

12(2) Changes in reportable segment information

13(3) Changes in net sales by destination market

13(4) Changes in proportion of overseas production by value

14(5) Changes in resource inputs

141

1. Qualitative information on the financial results for the period under review(1) Operating results
The world economy for the six months ended September 30, 2022 appeared to be in a favorable climate
for recovery with progress seen in balancing economic activities with measures taken to prevent COVID19 infection in various countries. However, the economic outlook remained uncertain due to theunpredictable effects of accelerated monetary tightening overseas, the Russian-Ukrainian problem andeconomic activity restrictions in China, in addition to sharp price rises, soaring raw material prices, andsupply 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 six months ended September 30, 2022, sales of POS systems for the overseas market increased due
mainly to the impact of foreign exchange rates and growth in the Americas, and sales of multifunction
peripherals (MFPs) increased due to the impact of foreign exchange rates and other factors, resulting in
net sales of ¥243,869 million (up 12% year on year). On the profit front, although there were effects oftight supply-demand balance and soaring prices in components and international cargo transportation,
profitability of POS systems and MFPs for the overseas market improved, which resulted in operating
profit of ¥5,955 million (up 38% year on year). However, “Foreign withholding tax” associated withdividend payments at overseas subsidiaries and “Loss on valuation of derivatives” associated withexchange rate fluctuations as non-operating expenses resulted in ordinary profit of ¥2,783 million (down
10% year on year), and “Provision for loss on litigation” of ¥6,900 million related to a patent dispute as an
extraordinary loss and other factors resulted in loss attributable to owners of parent of ¥6,370 million(profit attributable to owners of parent of ¥2,464 million in the same period of the previous fiscal year).
For details of the patent dispute, please refer to “2. Quarterly Consolidated Financial Statements andNotes (4) Notes to the quarterly consolidated financial statements (Notes to Quarterly Consolidated
Statement of Income) (Provision for loss on litigation).”As for the interim dividend, as a result of comprehensive consideration of future financial results forecast
and business environment, the Company will pay an interim dividend of ¥20 per share, as forecasted at thetime of the announcement of financial results for the fiscal year ended March 31, 2022 on May 11, 2022.
Results of reportable segments for the six months ended September 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 declined due to a continued downturn in the investment
appetite of retail and restaurant businesses affected by the prolonged COVID-19 pandemic, parts supply
constraints, rising prices, and other factors. However, sales showed signs of recovery at the end of thesecond quarter of the fiscal year ending March 31, 2023 due to efforts to expand sales mainly of payment
terminals, self-ordering systems, and smart receipts by taking into account measures against COVID-19,
as well as efforts to revise selling prices.
Sales of POS systems for overseas markets increased due to the impact of foreign exchange rates, an2increase in sales in the Americas, and other factors.
Sales of auto ID systems for the domestic market increased, primarily due to a significant increase insales of barcode printers, mainly to specific customers.
As a result, net sales of the Retail Solutions Business Group were ¥145,462 million (up 11% year onyear). Operating profit of the business group was ¥4,867 million (down 15% year on year) due to a
deterioration in profit and loss of POS systems for the domestic market affected by the negative impactof the cost increase due to yen depreciation, and tight supply-demand balance and soaring prices incomponents, despite an improvement in profit and loss from POS systems for overseas markets.
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 ongoing shortages in product supply caused by the tight supply-demand balance incomponents and international cargo transportation.
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 overseas customers.
As a result, net sales in the Workplace Solutions Business Group were ¥100,152 million (up 14% year onyear). Operating profit for the business group improved to ¥1,087 million (operating loss of ¥1,365
million in the same period of the previous fiscal year) due to the increase in net sales and the reduction of
a fixed cost, etc., despite being affected by 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
1) Analysis of financial condition
Assets at the end of the second quarter of the fiscal year ending March 31, 2023 increased by ¥14,439
million from the end of the previous fiscal year to ¥324,695 million. This was mainly because notes andaccounts receivable – trade, and contract assets, merchandise and finished goods, work in process, and“Other” in current assets and “Other” in investments and other assets increased by ¥13,082 million,¥6,742 million, ¥1,585 million, ¥2,835 million and ¥3,179 million, respectively, although cash anddeposits and group deposits paid in current assets declined by ¥7,754 million and ¥6,121 million,
respectively.
Liabilities increased by ¥17,431 million from the end of the previous fiscal year to ¥210,025 million.
This was mainly because notes and accounts payable - trade, income taxes payable, provision for loss on
litigation and “Other” in current liabilities and “Other” in non-current liabilities increased by ¥3,094
million, ¥1,212 million, ¥6,937 million, ¥4,172 million, and ¥1,839 million, respectively.
Net assets decreased by ¥2,991 million from the end of the previous fiscal year to ¥114,670 million. Thiswas primarily due to a decrease in retained earnings of ¥6,370 million owing to the recording of loss
attributable to owners of parent, a decrease of ¥1,106 million due to payment of dividends and a decreasein non-controlling interests of ¥446 million, although foreign currency translation adjustment inaccumulated other comprehensive income increased by ¥5,870 million.

32) Status of cash flows
An overview of cash flows for the six months ended September 30, 2022 is as follows.
Net cash used in operating activities was ¥8,112 million (compared with an inflow of ¥16,722 million in
the same period of the previous fiscal year), reflecting loss before income taxes of ¥4,264 million, adecrease in trade payables of ¥6,664 million, an increase in trade receivables of ¥3,398 million, an
increase in inventories of ¥2,366 million, and income taxes paid of ¥2,397 million, offset by depreciation
and amortization of ¥8,158 million and provision for loss on litigation of ¥6,900 million.
Net cash used in investing activities was ¥5,682 million (compared with an outflow of ¥5,304 million in
the same period of the previous fiscal year), reflecting purchase of property, plant and equipment andintangible assets, purchase of investment securities, and other factors.
As a result of the above, free cash flow amounted to an outflow of ¥13,795 million (an inflow of ¥11,418
million in the same period of the previous fiscal year).
Net cash used in financing activities was ¥4,114 million (compared with an outflow of ¥3,621 million in
the same period of the previous fiscal year), reflecting repayments of finance lease liabilities, dividends
paid, and other factors.
As a result of the above, the balance of Group funding at the end of the second quarter of the fiscal year
ending March 31, 2023 (cash and cash equivalents in the quarterly consolidated statement of cash flows)
declined by ¥13,875 million from the end of the previous fiscal year to ¥32,834 million.
(3) Consolidated financial results forecast and other forward-looking information
Based on the consolidated operating results for the six months ended September 30, 2022, the Company
has revised its consolidated financial results forecast for the full fiscal year. For details, please refer to the“Notice of revision to the consolidated financial results forecast for the fiscal year ended March 31, 2023
and year-end dividends forecast” separately announced today (November 10, 2022).

4

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

As of September 30, 2022

AssetsCurrent assets
Cash and deposits

38,64530,891

8,073

1,952

70,846

83,928Work in process
Raw materials and supplies

34,806
5,635
14,04741,5487,220
13,812

Other

23,363

26,198

Allowance for doubtful accounts(1,414)(1,216)

Total current assets

194,004

204,336

43,76445,227

1,026

806

10,196

10,196

11,223

11,002

Other
Allowance for doubtful accounts

61,351(87)

64,530(400)

Total investments and other assets

61,264

64,129116,252

120,359

310,256

324,695

Group deposits paid
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods

Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets

5

(Million yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for loss on litigation

53,341
859

56,435
907

2,846

4,058

233

7,170

Other

79,734

83,906

Total current liabilities

137,014

152,478

Non-current liabilities
Long-term borrowings

1,043

1,070

29,56524,97029,66626,809Retirement benefit liability
Other55,57957,546

Total liabilities

Total non-current liabilities

192,594

210,025

Net assets
Shareholders’ equity
Share capital

39,97039,970854
55,977902
48,499

Capital surplus
Retained earnings(4,733)(4,691)

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

92,06884,681

1,626

1,072

12

(20)

Foreign currency translation adjustment
Minimum pension liability adjustments

15,819(694)

21,689(721)

Remeasurements of defined benefit plans
Total accumulated other comprehensive income

3,114
19,877

2,704
24,724

48
5,667

43
5,221

117,662

114,670

310,256

324,695

Treasury shares

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

6

(2) Quarterly Consolidated Statement of Income and Comprehensive Income
Quarterly Consolidated Statement of Income (For the six months)(Million yen)
For the six months ended
September 30, 2021

For the six months ended
September 30, 2022

Net sales

216,977

243,869

Cost of sales

130,477

149,687

Gross profit

86,50094,181

Selling, general and administrative expenses

82,16788,226

Operating profit

4,332

5,955

175

104

Dividend income

2256

Gain on valuation of derivatives

689

-

139
1,027

203
364

253

233

-

774

Non-operating income
Interest income

Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Foreign exchange losses

1,430

326

Foreign withholding tax

175

1,249

421
2,280

952
3,536

3,079

2,783

863

114

-

33

Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Restructuring cost
Loss on reversal of foreign currency translation
adjustment due to liquidation of overseas subsidiaries
Provision for loss on litigation

-

6,900

Total extraordinary losses

863

7,047

Profit (loss) before income taxes

2,216(4,264)

866

2,663

Income taxes
Profit (loss)
Loss attributable to non-controlling interests

1,349(6,927)(1,114)(557)

Profit (loss) attributable to owners of parent

2,464(6,370)7

Quarterly Consolidated Statement of Comprehensive Income (For the six months)(Million yen)
For the six months ended
September 30, 2021
Profit (loss)

For the six months ended
September 30, 2022

1,349

(6,927)

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

34
34

(554)
(32)

Foreign currency translation adjustment
Minimum pension liability adjustment

777
(0)

6,555
(26)

Remeasurements of defined benefit plans, net of tax

(164)
682

(410)
5,532

Comprehensive income

2,032(1,395)Comprehensive income attributable to
Owners of parent
Non-controlling interests

3,078(1,046)(1,523)
128

Other comprehensive income

Total other comprehensive income8(3) Quarterly Consolidated Statement of Cash Flows(Million yen)
For the six months ended
September 30, 2021

For the six months ended
September 30, 2022

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Restructuring cost
Loss on reversal of foreign currency translation
adjustment due to liquidation of overseas subsidiaries
Provision for loss on litigation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses

2,216
7,958
863

(4,264)
8,158
114

-

33

2
(1,423)
(198)
253
6,702
(4,262)
5,337
(217)

6,900
(13)
(1,668)(160)
233(3,398)(2,366)(6,664)(2,450)

Payment for extra retirement payments

17,232
199
(258)
(637)

(5,547)
162
(217)
(512)

Income taxes paid

(1,210)(2,397)

Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid

1,395

398

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Net decrease (increase) in short-term loans receivable
Long-term loan advances
Proceeds from collection of long-term loans receivable
Other, net

16,722(8,112)477(3,689)128(1,127)(1,168)
0
8
(0)
2
63

(0)
(3,834)38(1,176)
(719)
2
(0)
2
3

Net cash provided by (used in) investing activities(5,304)(5,682)

Net increase (decrease) in short-term borrowings
Repayments of finance lease liabilities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests(273)(2,495)
355
(21)
(6)
(1,099)(79)(2,393)
461
(498)
(3)
(1,106)(574)

Net cash provided by (used in) financing activities(3,621)(4,114)

595

4,034

Net increase (decrease) in cash and cash equivalents

8,392(13,875)

Cash and cash equivalents at beginning of period

51,75346,709Cash and cash equivalents at end of period

60,14532,834

Income taxes refund

Cash flows from financing activities

Effect of exchange rate change on cash and cash
equivalents9(4) 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 ending March 31, 2023 including thesecond quarter under review 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
Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System
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.

10Notes to Quarterly Consolidated Statement of Income
Provision for loss on litigation
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 encouraged both plaintiffs and defendants to settle in the first quarter ofthe fiscal year ending March 31, 2023, and since July 2022, the Company has begun settlement negotiations
with the plaintiffs in an effort to reach a resolution. In the first quarter of the fiscal year ending March 31,
2023, settlement negotiations were in the initial stage and it was difficult to reasonably estimate the amount ofloss due to the Litigations, etc. Therefore, the progress of such negotiations was disclosed as a contingent
liability in the Notes to Quarterly Consolidated Balance Sheet.
In the second quarter of the fiscal year ending March 31, 2023, as settlement negotiations progressed and it
became possible to reasonably estimate the amount deemed necessary as a settlement payment, hence
provision for loss on litigation was recorded as an extraordinary loss to prepare for possible future losses.
Segment information
I Six months ended September 30, 2021
Amounts of net sales, profit or loss by reportable segment(Million yen)
Reportable segments
Adjustment

Consolidated
amount(Note)

Retail Solutions

Workplace
Solutions

131,045

85,931

216,977

－

41

1,904

1,945

(1,945)

216,977－

131,086

87,836

218,923(1,945)

216,977

Total

Net sales
Sales to external customers
Intersegment sales and transfers
Total－
Segment profit (loss)
5,698(1,365)
4,332(Note) Segment profit (loss) corresponds with operating profit in the quarterly consolidated statement of income.

4,332

II Six months ended September 30, 2022
Amounts of net sales, profit or loss by reportable segment(Million yen)
Reportable segments
Retail Solutions

Workplace
Solutions

Adjustment
Total

Consolidated
amount(Note)Net sales
Sales to external customers
Intersegment sales and transfers
Total

145,433

98,435

243,869

－

29

1,717

1,746

(1,746)

243,869－

145,462

100,152

245,615(1,746)

243,869－

5,955

Segment profit
4,867
1,087
5,955
(Note) Segment profit corresponds with operating profit in the quarterly consolidated statement of income.

11

3. Supplementary information(1) Changes in information about financial results[Consolidated]

Description

Net sales(Million yen)

For the six
For the six
For the six For the fiscal For the fiscal For the fiscal
year ending
months ended months ended months ended year ended
year ended
March 31,
September
September September 30, March 31,
March 31,2023
30, 2020
30, 2021
2022
2021
2022
(Forecast)
191,735

216,977

243,869

405,694445,317

520,000

Year-on-year change

77%

113%

112%

84%

110%

117%

Operating profit (loss)

(930)

4,332

5,955

8,263

11,566

14,000Year-on-year change

－

－

138%

59%

140%

121%

Ordinary profit (loss)(1,388)

3,079

2,783

7,193

10,197

10,000Year-on-year change

－

－

90%

62%

142%

98%

(6,968)2,464(6,370)

7,126

5,381

(2,500)

－

－

－

191%

75%

－

(126.71)44.79(115.12)129.5597.68(45.17)

77

70

67

72

69

undecided

106.81109.89131.59105.79112.05136.19120.89131.15138.21

123.21130.54137.23

Profit (loss) attributable to owners ofparentYear-on-year change
Basic earnings (losses) per share (yen)Number of consolidated subsidiaries
Average exchange rate
(Yen to the US dollar)
Average exchange rate
(Yen to the euro)12(2) Changes in reportable segment information[Consolidated net sales]
Description(Million yen)

For the six months For the six months For the fiscal year
ended September ended September 30, ended March 31,
30, 2021
2022
2022

For the fiscal year
ending March 31,
2023 (Forecast)

131,086

145,462

266,964

297,000

Year-on-year change

109%

111%

107%

111%

Workplace Solutions Business Group

87,836100,152

182,129

228,000

Year-on-year change

122%

114%

115%

125%

Subtotal

218,923

245,615

449,094

525,000

Elimination(1,945)(1,746)(3,776)(5,000)

Total

216,977

243,869

445,317

520,000

113%

112%

110%

117%

Retail Solutions Business Group

Year-on-year change(Note) Net sales for each business are included in “Intersegment sales and transfers.”[Consolidated operating profit (loss)]
Description(Million yen)
For the six months For the six months For the fiscal year
ended September ended September 30, ended March 31,
30, 2021
2022
2022

For the fiscal year
ending March 31,
2023 (Forecast)

Retail Solutions Business Group

5,698

4,867

10,60910,000Operating profit margin

4.3%

3.3%

4.0%

3.4%

Workplace Solutions Business Group

(1,365)

1,087

957

4,000

Operating profit margin(1.6)%

1.1%

0.5%

1.8%

Total

4,332

5,955

11,566

14,000Operating profit margin

2.0%

2.4%

2.6%

2.7%

(3) Changes in net sales by destination market[Changes in net sales by destination market / Consolidated]
Description

Japan
Percentage of consolidated net sales
Americas
Percentage of consolidated net sales
EuropePercentage of consolidated net sales
Other
Percentage of consolidated net sales
Total
Percentage of consolidated net sales(Million yen)

For the six
months ended
September
30, 2020

For the six
months ended
September
30, 2021

For the six
months ended
September
30, 2022

81,682

88,76785,066

176,103178,906

43%

41%

35%

44%

40%

58,03865,53785,914

115,201

137,114

30%

30%

35%

28%

31%

34,336

40,58644,971

76,79884,539

18%

19%

18%

19%

19%

17,67722,086

27,91537,59144,757

9%

10%

12%

9%

10%

191,735

216,977

243,869

405,694445,317

100%

100%

100%

100%

100%

13

For the fiscal
For the fiscal
year ended
year ended
March 31, 2021 March 31, 2022

(4) Changes in proportion of overseas production by value[Changes in proportion of overseas production by value / Consolidated]
Description

Overseas ratio

For the six months For the six months For the six months
ended September ended September ended September
30, 2020
30, 2021
30, 2022
74%

74%

For the fiscal year
ended March 31,
2021

For the fiscal year
ended March 31,
2022

73%

77%

81%

(5) Changes in resource inputs[Increase in property, plant and equipment and intangible assets / Consolidated](Million yen)

For the six
months ended
September
30, 2020

For the six
months ended
September
30, 2021

Consolidated

7,651

6,677

7,694

14,82014,87917,500Year-on-year change

96%

87%

115%

66%

100%

118%

Description

For the six
For the fiscal
For the fiscal
For the fiscalmonths ended
year ending
year ended
year ended
SeptemberMarch 31, 2023
March 31, 2021 March 31, 2022
(Forecast)30, 2022[Research and development expenses / Consolidated](Million yen)

For the six
months ended
September
30, 2020

For the six
months ended
September
30, 2021

Consolidated

11,502

11,334

11,885

21,81821,94926,000Net sales ratio

6.0%

5.2%

4.9%

5.4%

4.9%

5.0%

Year-on-year change

85%

99%

105%

81%

101%

118%

Description

For the fiscal
For the six
For the fiscal
For the fiscalmonths ended
year ending
year ended
year ended
SeptemberMarch 31, 2023
March 31, 2021 March 31, 2022
(Forecast)30, 2022[Number of employees at the end of the fiscal year / Consolidated]
Description

Consolidated
Year-on-year change

For the six
months ended
September
30, 2020

For the six
months ended
September
30, 2021

19,272

18,69918,557

18,511

18,53918,900

(745)

(573)

(142)

(1,503)

28

361

14

For the six
For the fiscal
For the fiscal
For the fiscalmonths ended
year ending
year ended
year ended
SeptemberMarch 31, 2023
March 31, 2021 March 31, 2022
(Forecast)30, 2022