Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022
(April 1, 2021 through June 30, 2021)(Prepared pursuant to Japanese GAAP)All financial information has been prepared in accord with accounting principles generally accepted in Japan.
This is a partial English translation of the original Japanese-language document. All information pertains to consolidated
results unless otherwise noted. Information on the basis of presentation of consolidated financial statements does not appear inthis translation.
August 5, 2021
Company name:
Stock exchange listings:
Stock code:
URL:
Representative:
Contact:
Phone:TIS Inc.
The First Section of the Tokyo Stock Exchange3626
https://www.tis.com/
Yasushi Okamoto, President
Masahiro Hiwasa, Department Manager of Finance & Accounting Dept., Corporate
Planning SBU.
+81 3-5337-4569

Scheduled dates
Submission of quarterly report:
Commencement of dividend payments:

August 12, 2021-

Supplementary materials to the quarterly results:
Quarterly results presentation held:

Available
Yes (targeted at institutional investors and analysts)
Figures in millions of yen are rounded down to the nearest million

1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2022
(April 1, 2021 – June 30, 2021)(1) Consolidated Financial Results

Percentages indicate year-over-year changes
Net sales

Operating income

millions of yen%

millions of yen

Net income attributableto owners of the parent
company

Recurring profit%

millions of yen%

millions of yen%

First Quarter, FY2022
113,520
13.1
10,25833.6
10,860
27.1
7,002
26.7
First Quarter, FY2021
100,399
-0.6
7,678
-4.7
8,543
-2.6
5,527
-9.5
Note: Comprehensive income: First Quarter, FY2022: 12,101 million yen (21.3%); First Quarter, FY2021: 9,974 million yen (13.5%)
Net income
per share – basic
First Quarter, FY2022
First Quarter, FY2021

Net income
per share – diluted

yen

yen

27.92
22.02

-

(2) Consolidated Financial Position
Total assets
millions of yen

Net assets
millions of yen

Equity ratio%

End of First Quarter, FY2022
444,830
285,04262.1
451,072
279,42960.0
End of FY2021
For reference: Total equity: End of first quarter, FY2022: 276,248 million yen End of FY2021: 270,481 million yen*Total equity = Shareholders’ equity plus total accumulated other comprehensive income

2. Cash Dividends for Shareholders of Common Stock
Cash dividends per share
Record date or
periodEnd-Q1End-Q2yen

End-Q3yen

11.00
FY2021
FY2022
FY2022
13.00(forecast)
Note: Revisions from the latest release of dividends forecasts: None

Year-end

Total

yen

yen

-

24.00

35.00

yen

-

27.00

40.00

3. Forecast of Consolidated Results for FY2022 (April 1, 2021 – March 31, 2022)

Net sales

Operating income

Percentages indicate year-over-year changes
Net income
attributable to
Net income per
Recurring profit
owners of the parent
share – basic
company

millions of yen%

millions of yen%

millions of yen%

millions of yen%

yen

225,000

6.5

20,50012.6

20,50033.2

13,700

33.3

54.75

470,000

4.8

48,5006.0

48,50023.5

32,20016.3

128.78First half of FY2022(six months ending Sep. 30,
2021)

Full FY2022(year ending Mar. 31, 2022)

Notes:(1) Revisions from the latest release of earnings forecasts: None
(2) The forecast of consolidated results may be revised depending on when the novel coronavirus outbreak comes to an end.

※ Notes(1) Material reclassifications of subsidiaries during the period: None
(Changes in specified subsidiaries resulting in change in scope of consolidation)
Additions: None
Exclusions: None
(2) Accounting methods specific to quarterly consolidated financial statements: None
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: Yes
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Common stock issued
1) Issued shares as of period-end (including treasury stock):
End-First Quarter, FY2022 (June 30, 2021):
263,367,294 shares
End-FY2021 (March 31, 2021):
263,367,294 shares
2) Treasury stock as of period-end:
End-First Quarter, FY2022 (June 30, 2021):
12,530,678 shares
End-FY2021 (March 31, 2021):
12,595,655 shares
3) Average number of shares (during the respective three-month period):First Quarter, FY2022 (ended June 30, 2021):
250,793,642 sharesFirst Quarter, FY2021 (ended June 30, 2020):
251,060,508 shares
Note: Treasury stock includes the number of the Company’s own shares held by TIS INTEC Group Employees’
Shareholding Association Trust and the Board Incentive Plan (BIP) Trust.

Quarterly review status
These materials are not subject to the quarterly review procedures to be conducted by certified public accountants or an audit
firm.
Caution on Forward-Looking Statements and Other Important Matters
At a Board of Directors’ Meeting held on May 12, 2021, TIS Inc. (TIS) resolved to acquire its own (treasury) shares inaccordance with Article 156 of the Companies Act of Japan, as applied pursuant to Paragraph 3, Article 165 of said Act.
Accordingly, “Net income per share – basic” in the Forecast of Consolidated Results for FY2022 has been presented taking
into account the effect of this acquisition of treasury shares.
This report contains forward-looking statements that reflect TIS’s plans and expectations based on information available to
TIS at the time of preparation and on certain other information TIS believes to be reasonable. These forward-looking
statements are not guarantees of future performance, and actual results, performance, achievements or financial position may
differ materially from those expressed or implied herein due to a range of factors.
For the assumptions underlying the forecasts herein and other notice on the use of earnings forecasts, refer to “(3)Consolidated Earnings Forecast and Caution on Forward-Looking Statements” in the “1. Results of Operations” section on
page 6 in the Accompanying Materials.

Accompanying Materials – Contents

1. Results of Operations

2(1) Analysis of Consolidated Operating Results

2(2) Analysis of Financial Condition

6(3) Consolidated Earnings Forecast and Caution on Forward-Looking Statements

6

2. Consolidated Financial Statements

7(1) Consolidated Balance Sheets

7(2) Consolidated Statements of Income and Comprehensive Income

9

Consolidated Statements of Income
For the First Quarter

9

Consolidated Statements of Comprehensive Income
For the First Quarter9(3) Notes on the Consolidated Financial Statements

11(Notes on the Going-concern Assumption)

11(Notes on Significant Changes in the Amount of Shareholders’ Equity)

11(Changes in Accounting Policies)11

3. Other Information

12

-1-

1. Results of Operations(1) Analysis of Consolidated Operating Results
In the first three months of fiscal 2022 (April 1, 2021 – June 30, 2021), the Japanese economy continued to
face difficult conditions due to impact of the spread of the novel coronavirus (COVID-19). The outlook too
has been clouded by a variety of factors, and there is still a need to carefully monitor how trends in infection
impact the Japanese and global economy. The IT services industry, to which the TIS INTEC Group (“theGroup”) belongs, is expected to see further increases in IT investment demand as transformation of businessprocesses and business models utilizing digital technologies progresses globally. This is demonstrated byfactors such as the Bank of Japan’s quarterly Short-term Economic Survey of Enterprises in Japan (June2021), which showed a 16.1% year-on-year increase in company software investment plans (all industries
including financial institutions).
In this environment, the Group launched its new three-year medium-term management plan (2021-2023) infiscal 2022 in order to accelerate growth on the way to achieving “Group Vision 2026” and is working toaccelerate business restructuring with enhancing provided digital transformation value as the keystone.
Consolidated net sales for the Group in the first quarter of fiscal 2022 rose 13.1% year on year to ¥113,520
million. Operating income rose 33.6% to ¥10,258 million, recurring profit rose 27.1% to ¥10,860 million, andnet income attributable to owners of the parent company rose 26.7% to ¥7,002 million.
Sales were up sharply year on year as a result of meeting demand for IT investment, such as customers’
demand for digital transformation, and the contribution of the results of companies that became subsidiaries
in the previous fiscal year. As for operating income, gross profit ratio rose 1.3 percentage points to 24.4%
over the previous year’s level due to factors such as the provision of high value-added businesses and thepromotion of productivity improvement measures, in addition to the increase in income due to higher
revenue. This offset the increase in selling, general and administrative expenses, which were mainly due toinvestments such as office reform costs that will contribute to future growth. As a result, operating income
was higher and the operating income ratio increased 1.4 percentage points year on year to 9.0%. The increase
in recurring profit and net income attributable to owners of the parent company mainly reflect the growth inoperating income.
From the start of the first quarter of fiscal 2022, the Accounting Standard for Revenue Recognition, etc.
have been applied, but the impact on overall results has been minimal.
Segment results for the period are as follows. The sales figures for each segment include inter-segment sales.
1) Service IT BusinessThis segment comprises Group businesses providing knowledge intensive IT services that leverage theGroup’s service and industry know-how to create universalized, template-oriented solutions for its
customers (including default configuration and ERP).
Segment sales in the first quarter of fiscal 2022 totaled ¥36,897 million, up 22.4% year on year, andoperating income increased 79.5% to ¥2,054 million. In addition to capturing demand for IT investments inareas such as settlement solutions and marketing, which is growing with the advance of digitalization, thecontribution from the results of companies that became subsidiaries in the previous fiscal year meant ayear-on-year increase in both sales and profits, with the operating income ratio increasing 1.8 percentage
points year on year to 5.6%.
2) BPOThis segment comprises businesses that leverage the Group’s extensive service and IT know-how to deliver
business process outsourcing (BPO) services, including marketing and sales services and office andcontract operations.
Segment sales in the first quarter of 2022 totaled ¥8,897 million, up 7.5% year on year. Operating income
expanded 21.6% to ¥678 million. Steady growth in response to growing outsourcing needs of companies in
the insurance industry and other sectors led to an increase in both sales and profits year on year, and pushed
up the segment’s operating income ratio to 7.6%, a year-on-year improvement of 0.9 percentage points.

-2-3) Financial IT BusinessThis segment comprises businesses that leverage business and operating know-how specific to the financial
sector to raise the value-added of clients’ operations, expand their use of IT, and provide support tooperations using IT.
Segment sales in the first quarter of fiscal 2022 totaled ¥29,571 million, up 15.0% year on year, andoperating income increased 29.2% to ¥3,584 million. Expansion of IT investment by credit card companies
and other core clients led to an increase in both sales and profits year on year, with the operating income
ratio increasing 1.3 percentage points year on year to 12.1%.
4) Industrial IT BusinessThis segment’s businesses leverage business and operating know-how specific to non-finance industries toraise the value-added of clients’ operations, expand their use of IT, and provide support to operations using
IT.
Segment sales in the first quarter of fiscal 2022 totaled ¥44,492 million, up 2.3% year on year, andoperating income increased 18.3% to ¥3,673 million. In addition to the contribution of the results ofcompanies that became subsidiaries in the previous fiscal year, there was steady IT investment by coreclients, and IT investment demand from regional and small and medium-sized companies, which had been
subdued due to the spread of COVID-19, started to recover. The impact of lower sales with application of
the Accounting Standard for Revenue Recognition, etc. was therefore offset, leading to a year-on-yearincrease in both sales and profits, with the operating income ratio increasing 1.2 percentage points year on
year to 8.3%.
5) Other
The Other segment includes a number of ancillary businesses that provide information systems to clients.
Segment sales in the first quarter of fiscal 2022 totaled ¥2,311 million, up 15.5% year on year, operating
income was up 30.9% to ¥244 million, and the segment’s operating income ratio was 10.6%, up 1.3
percentage points, for a year-on-year increase in both sales and profits.
As noted above, the Group launched its new three-year medium-term management plan (2021-2023) in fiscal
2022 as a second step towards realizing its “Group Vision 2026”. Under the slogan of “Be a Digital Mover2023” the Group is working to accelerate business restructuring, with enhancing provided digitaltransformation value as the keystone.
In fiscal 2022, the first year of the medium-term management plan (2021-2023), the Group willenergetically implement various measures in line with the following Group management policies.
Group Management Policies for Fiscal 2022
(1) Promote efforts in improving value provided to society and corporate value by sustainability management(2) Enhance efforts in achieving high value-added by innovating production and improving provided digitaltransformation value(3) Invest in growth for enhancing ability to provide digital transformation value while maintaining fiscal
soundness(4) Promote a growth strategy aimed at becoming a top-class IT group in the ASEAN region and establish
governance(5) Continuously enhance employee job satisfaction and promote the growth of our highly-diversified humanresources to drive the shift to digital transformation
The status of issues and initiatives in the Group management policies are presented below.
1) Promote efforts in improving value provided to society and corporate value by sustainability
management
The Group has established a system for advancing sustainability management by means such as setting-3-

up a Corporate Sustainability Committee, identifying materiality, and identifying four societal issues toresolve. In the medium-term management plan (2021-2023), the Group will promote achievement ofpriority management resource distribution in business activities that contribute to solving societal issue
solutions identified. And it will advance ESG, promoting contribution to a decarbonized and recyclingoriented society, sustained improvement of stakeholder engagement, and pursuit of corporate
governance that enhances trust from society.
At the same time, the Group will continue placing commercials on television and articles inadvertising materials in an effort to increase corporate value and consumer recognition, and also workon strategic brand activities.
In the first quarter of fiscal 2022, we made efforts such as establishing the Basic Direction on
Corporate Sustainability and a human rights policy as well as expressing support for therecommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
2) Enhance efforts in achieving high value-added by innovating production and improving provided
digital transformation value
The Group is keenly aware of the social responsibility involved in providing information systems associal infrastructure and is continuing to work on improving quality, productivity, and technologicalcapabilities. From the perspective of innovating production in particular, we have continuously madeefforts to eliminate unprofitable projects, carry out reforms aimed at further improving the profitabilityof enhancement areas, and promotion of offshoring. Currently, we are also continuing efforts toward
improving the profitability of the entire Group by means such as going ahead with deployment of“Trinity Ver. 2” as a quality management system that supports service-type business.
In order to fulfill the mission in Group Vision 2026 of “To brightly color the future as a mover thatutilizes digital technology”, we are aiming to harness digital technology to provide end-to-end value
relating to digitalization-related issues, from strategy proposals through to the provision of solutions tocustomers and wider society, and we are going forward with efforts to achieve high value-added by
improving provided digital transformation value. One example is being selected as a “DX certified
business operator” by the Ministry of Economy, Trade and Industry in May of 2021. We were selected
in recognition of the Group's initiatives up to now relating to digital transformation for customers andourselves that meet the certification standards of the Ministry of Economy, Trade and Industry andappropriate disclosure of information for stakeholders.
In the settlement business field, a Group strength, we will a establish credit card processing service
where systems centering on business processing services related to member management and affiliate
shop management are provided as a service and expand lending services where systems for loans andother finance service operators are provided on the cloud. Additionally, we will enhance data analysis
functions that connect to these and heighten functionality. And by making microservices out of thosefunctions for each application and purpose and promoting the provision of flexible services that are
responsive to change, we will improve our ability to provide comprehensive services in digitalization of
settlements and finance, with the aim of further enhancing our strengths and expanding our businessdomains.
In particular, we will use the credit card processing service scheduled to launch in the first half offiscal 2023 to ensure we meet the growing demand for comprehensive processing services, including
finance functions. Additionally, we are rolling out business in all areas of the settlement business tocover all aspects of digitalized payments, including digital accounts, mobile wallets, service
coordination, security, and data utilization.
And in order to address the important issues of strategic management resource placement and humanresources development to enhance consulting functions in upstream areas such as strategy proposal andissue/solution identification in order to promote digital transformation, we have set up a DX Strategy
Human Resources Committee and are engaging in a number of related initiatives including commencing
consideration and discussions of concrete measures and policies.

-4-3) Invest in growth for enhancing ability to provide digital transformation value while maintaining fiscal
soundness
With aim of achieving continuous growth in this operating environment with increasing uncertainties,
we will continue making growth-oriented investments in four areas (software investment, humanresources investment, R&D investment, M&A and capital tie-ups) and further advance investment
management to gain appropriate returns, thereby achieving more growth than ever.
In the three years of the medium-term management plan (2021-2023), the Group plans to conductrobust investment totaling approximately ¥100 billion and promote improving provided digitaltransformation value and acquiring new technologies, and we are currently incrementally expanding ourinvestments.
4) Promote a growth strategy aimed at becoming a top-class IT group in the ASEAN region and establish
governanceBy strengthening the partnerships and alliances in ASEAN nations established in the previous mediumterm management plan and utilizing cutting-edge technologies and disruptive technologies, the Groupwill globally expand its “IT Offering Service” and “Frontier Market Creation Business” as set forth
under Strategic Domains.
We will create yet more business synergies with MFEC Public Company Limited, a leading player inproviding IT solutions for enterprises in Thailand which became a subsidiary of TIS from October 2020,
with the aim of enhancing our competitiveness and expanding business.
Moreover, we will further strengthen the strategic partnership with Grab Holdings Inc., which
operates the largest digital payment platform in Southeast Asia, collaborating on enhancing digital
payment infrastructure and developing new settlement technologies in Southeast Asia and Japan.
5) Continuously enhance employee job satisfaction and promote the growth of our highly-diversified
human resources to drive the shift to digital transformation
To continue to enhance the value exchange between employees and Group companies, the Group will
promote a human resources strategy focusing on diversification and advancement of individuals. We
will take on the challenge of enhancing engagement with employees through creation of anenvironment and organizational culture where all members of a diverse workforce can thrive,
promotion of next-generation workstyle reforms looking towards the “new normal”, and advancementof human resource portfolio management by digitalization of a human resources database. Additionally,
to further accelerate structural transformation, we will make an effort to strategically secure and foster
advanced human resources in areas such as management, consulting, global business, and service
business and will place them optimally.
In addition to the abovementioned initiatives and in line with the Group’s policy of flexibly managing its
capital position to enable flexible responses to its operating environment while continuing to enhanceshareholder returns and capital efficiency, we are planning to conduct a share buyback from May to
December 2021, which will result in the acquisition of 3,200,000 shares at a maximum total acquisition costof ¥4,470 million.

-5-(2) Analysis of Financial Condition(Assets)
Consolidated total assets as of the end of the first quarter came to ¥444,830 million, a decrease of¥6,241 million from ¥451,072 million at the end of the previous fiscal year.
Current assets totaled ¥214,088 million, down from ¥229,965 million at the end of the previous
fiscal year, primarily owing to a ¥17,021 million decrease in notes and accounts receivable, andcontract assets.
Note that, as described in (3) Notes on the Consolidated Financial Statements (Changes in
Accounting Policies), as a result of application of the Accounting Standard for Revenue
Recognition, etc., “notes and accounts receivable” shown under “current assets” in the consolidatedbalance sheet for fiscal 2021 have been reclassified as “Notes and accounts receivable, and contract
assets” from the first quarter of fiscal 2022.
Fixed assets totaled ¥230,741 million, up from ¥221,106 million at the end of the previous fiscal
year, due mainly to a ¥5,583 million increase in investment securities.
(Liabilities)
As of the end of the first quarter, total liabilities amounted to ¥159,788 million, an ¥11,853 million
decrease from ¥171,642 million at the end of the previous fiscal year.
Current liabilities totaled ¥105,330 million, up from ¥100,915 million at the end of the previous
fiscal year, primarily owing to a ¥20,151 million increase in short-term borrowings.
Non-current liabilities amounted to ¥54,458 million, down from ¥70,726 million, primarily owing
to a ¥20,100 million decrease in long-term debt.
(Net assets)
As of the end of the first quarter, total net assets amounted to ¥285,042 million, a ¥5,612 million
increase from ¥279,429 million at the end of the previous fiscal year. The increase primarily reflects
a ¥4,239 million increase in net unrealized gains on other securities.
(3) Consolidated Earnings Forecast and Caution on Forward-Looking Statements
The Group’s consolidated business performance in the first quarter of fiscal 2022 were robust, but as of therelease of this quarterly earnings report, management has made no changes to the consolidated earnings
forecast released on May 12, 2021, due to factors such as the external environment being uncertain. As in theplan at the beginning of the fiscal year, we expect to continue to expand earnings by reflecting the full fiscal
year earnings of the companies that became subsidiaries in the previous fiscal year in addition to expansionof our business by accurately responding to customers’ demand for digital transformation. Furthermore, wewill provide high value-added business and promote productivity enhancement measures and the like while
sustaining our investment in future growth with the aim of achieving even higher profitability.
Note that this forecast is subject to change depending on the when the spread of COVID-19 will come to anend, and this remains highly uncertain.
The Group’s medium-term management plan (2021-2023) includes a basic shareholder return policy thattargets a total return ratio of 45%. Due to implementation of the abovementioned share buyback, and basedon the current consolidated earnings forecast and dividend forecast, the total return ratio for fiscal 2022 is
expected to be 44.8%.
*Total return ratio: The ratio of the combined value of dividend payments and share buybacks versus net
income attributable to owners of the parent company-6-2. Consolidated Financial Statements(1) Consolidated Balance Sheets
As of March 31, 2021

Items
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Notes and accounts receivable, and contract assets
Lease receivables and lease investment assets
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property and equipment
Buildings and structures, net
Machinery and equipment, net
Land
Leased assets, net
Other property and equipment, net
Total property and equipment
Intangible assets
Software
Software in progress
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-7-

As of June 30, 2021

millions of yen

millions of yen

83,318111,356

82,417
－

－
4,641
286
2,970
2,979
237
24,465(290)
229,965

94,335
4,483
285
2,154
940
244
29,526(299)
214,088

34,258
6,798
9,682
4,321
9,135
64,19736,523
6,241
9,682
4,330
11,552
68,33015,463
12,334
1,593
1,757
31,14815,933
11,062
1,541
1,714
30,25286,005
6,375
8,443
27,505(2,567)125,760
221,106
451,072

91,5886,442
7,505
29,189(2,568)132,158
230,741444,830

As of March 31, 2021

Items
Liabilities
Current liabilities
Notes and accounts payable
Short-term borrowings
Income taxes payable
Accrued bonuses to directors and employees
Provision for loss on order received
Provision for office restructuring cost
Other allowances
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term debt
Lease obligations
Deferred tax liabilities
Deferred tax liabilities from revaluation of land
Accrued retirement benefits to directors
Other allowances
Net defined benefit liability
Asset retirement obligations
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on other securities
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-8-

As of June 30, 2021

millions of yen

millions of yen

26,467
5,793
8,829
15,405938
413
109
42,958100,915

19,49325,945
1,507
7,962
802
170
173
49,274105,330

37,326
4,628
1,023
272
5
169
12,895
6,095
8,311
70,726
171,642

17,226
4,572
4,105
272
5
109
12,9697,101
8,097
54,458
159,788

10,001
84,337173,230(18,812)
248,756

10,001
84,342
174,066(18,671)249,738

25,513(2,672)(667)(449)
21,724
8,948
279,429451,072

29,753(2,672)(187)(383)
26,5108,793
285,042444,830

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
First Quarter, FY2021
First Quarter, FY2022
Items(Apr. 1 – Jun. 30, 2020) (Apr. 1 – Jun. 30, 2021)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expense
Interest expenses
Equity in losses of affiliated companies
Loss on investments in partnership
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Loss on valuation of investment securities
Other
Total extraordinary loss
Income before income taxes
Income taxes: current
Income taxes: deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent company-9-

millions of yen

millions of yen

100,399
77,25523,143
15,465
7,678

113,52085,78927,731
17,472
10,258

47
810
230
1,089

84
608
219
912

53
74
6
89
224
8,543

82
44
124
59
311
10,860

1
3
5

0
0
0

21
374
51
448
8,099
913
1,541
2,454
5,645
117
5,527

131
133
63
328
10,532
1,246
2,051
3,298
7,233
230
7,002

Consolidated Statements of Comprehensive Income
Items
Net income
Other comprehensive income
Net unrealized gains on other securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of equitymethod affiliates
Total other comprehensive income
Comprehensive income(Composition)
Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to noncontrolling interests- 10 -First Quarter, FY2021(Apr. 1 – Jun. 30, 2020)

First Quarter, FY2022(Apr. 1 – Jun. 30, 2021)

millions of yen

millions of yen

5,645

7,233

4,828
(262)
155

4,246
252
66

(391)

302

4,329
9,974

4,867
12,101

9,813

11,788161

312

(3) Notes on the Consolidated Financial Statements(Notes on the Going-concern Assumption)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc., have been
applied from start of the first quarter of fiscal 2022. Accordingly, revenue is recognized when control of thepromised goods or services has been transferred to the customer at the amount expected to be received in
exchange for those goods or services. The main changes that have been made are as follows.
1) Revenue recognition pertaining to agent transactions
For transactions in which the Group’s role in providing goods or services to the customer is that of an agent,
the Group previously recognized revenue at the total amount of compensation received from the customer.
However, from the first quarter of fiscal 2022, the Group recognizes revenue on a net basis, which is theamount received from customers less the amount paid to suppliers.
2) Revenue recognition pertaining to cost recovery method
Previously, the completed-contract method was applied to transactions in which performance obligations areto be satisfied over a certain period of time and it was deemed that reasonable estimation of the degree ofcompletion was not possible. From the first quarter of fiscal 2022, the Group recognizes revenue using thecost recovery method when it is probable that the costs incurred will be recovered.
The Group’s application of the Accounting Standard for Revenue Recognition, etc., is in accordance withthe transitional treatment set forth in the proviso of Paragraph 84 of the Accounting Standard for Revenue
Recognition. The cumulative effect of retrospectively applying the new accounting policy prior to thebeginning of the first quarter of fiscal 2022 was reflected from the retained earnings at the beginning of thefirst quarter of fiscal 2022. The new accounting policy was then applied from the balance of retained earnings
at the beginning of the first quarter.
The impact in the first quarter of fiscal 2022 and the impact on retained earnings at the beginning of thefirst quarter of fiscal 2022 resulting from these changes are insignificant.
As a result of application of the Accounting Standard for Revenue Recognition, etc., “notes and accounts
receivable” presented under “current assets” in the consolidated balance sheet for fiscal 2021 are shown as
being included in “notes and accounts receivable, and contract assets” from the first quarter of fiscal 2022.
Note that, in accordance with transitional treatment set forth in Paragraph 89-2 of the Accounting Standard
for Revenue Recognition, fiscal 2021 statements have not been reclassified to conform to the newpresentation method.

(Application of Accounting Standard for Fair Value Measurement, etc.)
Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019), etc., have been
applied from start of the first quarter of fiscal 2022. In accordance with transitional treatment set forth inParagraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the AccountingStandard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Group has opted to apply the
new accounting policies set forth by the Accounting Standard for Fair Value Measurement, etc.
prospectively.
Thus, the Group has decided to use the fair value calculated using inputs adjusted for quoted market prices
for identical assets in active markets available to the Group at the date of calculating fair value as thequarterly consolidated balance sheet amount. Previously, the acquisition cost of convertible bonds with stockacquisition rights, which were considered to be financial instruments for which it was extremely difficult todetermine market price, was the amount used in the quarterly Consolidated Balance Sheets.

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3. Other Information
INTEC Inc., a consolidated subsidiary of the Company, is currently in litigation with Mitsubishi Shokuhin Co.,
Ltd., which filed a claim for compensation in connection with services including systems development provided
by INTEC Inc. (Amount of compensation demanded: 12,703 million yen; date the complaint was received:
December 17, 2018).

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