February 3, 2023
(Translated from the Japanese original)
Company Name:
Representative:
Stock Listing:Stock Code:Contact:
Phone:TIS Inc.
Yasushi Okamoto, President and Representative
Director
Prime Market, Tokyo Stock Exchange
3626
Takahiro Kimura, Department Manager ofCorporate Management Dept.
+81-3-5337-4569 (in Japan, 03-5337-4569)

Notice regarding Booking of Gain on Sales of Investment Securities (Extraordinary Income)and Revision of Consolidated Performance Forecast for Full-Year
The Board of Directors at TIS Inc. (hereafter, “the Company” and “TIS”) resolved on this date that
the Company will sell holdings of investment securities. Consequently, the Company will bookextraordinary income in the fourth quarter of fiscal 2023, ending March 31, 2023. Details areprovided below.
TIS also takes this opportunity to provide notice of a revision to the consolidated performance
forecast for the full-year, from April 1, 2022 to March 31, 2023, that was announced on November 2,2022, when results for the first two quarters of fiscal 2023 were disclosed. Note that the associateddividend forecast has not changed.
Details
1. Booking of gain on sales of investment securities (extraordinary income)(1) Reason for sale of investment securities
TIS will sell investment securities as part of the Company’s effort to enhance the efficiency ofassets and improve financial status.
TIS is working to reduce its ratio of cross-shareholdings to consolidated net assets on thebalance sheet to the 10% level, and this sale will expedite the process.
(2) Details on sale of investment securities
i. Investment securities to be soldMarketable securities of two listed companies held by TIS
ii. Total sales amount (expected)¥14.8 billioniii. Gain on sale of investment securities (expected)¥12.8 billion
iv. Date of sale (scheduled)February 3, 2023
v. Method of sale
Off-floor trading12. Revisions to Consolidated Performance Forecast for Full-Year(1) Revisions to consolidated performance forecast for fiscal 2023
(From April 1, 2022, to March 31, 2023)(Millions of yen)Previous forecast (A)Revised forecast (B)Change (B – A)
Change (%)(Reference)
Actual results forprevious fiscal year,ended March 31,2022

Net income
attributable to Net income
owners ofper share
the parent(Yen)company

Net sales

OperatingincomeRecurringprofit505,000

59,00060,50039,800163.25505,000

59,00060,50052,000213.50―――12,200

―

―

―

30.7％

482,547

54,73955,71039,462

157.69(2) Reason for revisions
Management is revising the forecast for net income attributable to owners of the parent company,
given the impact of ¥4.3 billion in extraordinary income (gain on sales of investment securities)
booked already in the third quarter as well as ¥2.4 billion in extraordinary income (gain on sales ofshares of subsidiaries), to be booked in the fourth quarter of fiscal 2023, following the transfer ofshares in a consolidated subsidiary of MFEC Public Company Limited, an overseas subsidiary ofTIS, as part of efforts to accelerate business restructuring at that parent company, in addition to thebooking extraordinary income of ¥12.8 billion in the fourth quarter of fiscal 2023, as described in
1. Booking of gain on sales of investment securities (extraordinary income) above.
Currently, management does not envision changes to net sales, operating income orrecurrency profit since these metrics are moving generally in line with estimates announced on
November 2, 2022. If further revisions are deemed necessary, management will immediately
provide an update.
(Reference)
Thoughts on return to shareholders and dividend policy
TIS recognizes that return to shareholders is a priority management issue. The Company’s basic
policy is to keep internal reserves at a level sufficient to ensure business growth from a medium- tolong-term perspective, while continuing to pay a stable dividend in consideration of consolidated
financial results.
Guided by this policy, TIS seeks to boost the total return ratio yardstick to 45%, from 40%, andconstantly enrich dividends per share, underpinned by a good balance in its approaches to promote
growth investments, ensure a sound financial position and strengthen return to shareholders during
Medium-Term Management Plan (2021-2023). Note that the Company is keen to implement return toshareholders based on income obtained through operating activities unaffected by temporary profits
and losses (after deducting corporate taxes and non-controlling interests) to continuously enrichdistribution of income to shareholders matched to business growth.
As described above, today, management has raised the forecast for net income attributable toowners of the parent company. But this change reflects one-time income, that is, gain on sales of2

investment securities and gain on sales of shares of subsidiaries. Income obtained from operating
activities unaffected by temporary profits and losses is generally in line with the estimate announced on
November 2, 2022. Management anticipates a total return ratio of 44.5%, based on the equivalent ofabout ¥5.5 billion in treasury stock bought back, using targets for net income attributable to owners of
the parent company and the dividend forecast and return to shareholders at the present time, so nochange has been made to the annual dividend forecast of ¥47 per share for fiscal 2023 (of which, theyear-end dividend will be ¥32 per share).
Note: All statements described in these materials are based on information available to management
regarding the Company as of today and certain assumptions deemed reasonable at this time. No intent
is implied of promise by the Company to achieve such forward-looking statements. Indeed, variousfactors may cause future results to be substantially different from the assumptions presented in thesematerials.
END3