Quarterly Report(57th Term 1st Quarter)
Started October 1, 2022
Ended December 31, 2022

TKC Corporation
1758 Tsurutamachi, Utsunomiya-shi, Tochigi-1-

Table of Contents
Page[Front Cover]Section 1 [Information on the Company] .................................................................................................................................................. 4
Part 1 [Overview of the Company]........................................................................................................................................................ 4
1 [Key Financial Data] ................................................................................................................................................................... 4
2 [Description of Business] ............................................................................................................................................................ 4
Part 2 [Business Overview] ................................................................................................................................................................... 5
1 [Risk Factors] .............................................................................................................................................................................. 5
2 [Management Analysis of Consolidated Financial Conditions, Operating Results, and Cash Flows]......................................... 5
3 [Material Agreements, etc.]....................................................................................................................................................... 14
Part 3 [Information on the Company].................................................................................................................................................. 15
1 [Information on the Company’s Stock] ..................................................................................................................................... 15(1) [Total number of shares, etc.] ............................................................................................................................................. 15(2) [Share subscription rights, etc.] .......................................................................................................................................... 15(3) [Exercise of bonds with share subscription rights containing a clause for exercise price adjustment, etc.] ....................... 15(4) [Changes in total number of issued shares, capital stock, etc.]........................................................................................... 15(5) [Major shareholders] .......................................................................................................................................................... 15(6) [Status of voting rights] ...................................................................................................................................................... 16
2 [Officers] ................................................................................................................................................................................... 16
Part 4 [Financial Information] ............................................................................................................................................................. 17
1 [Quarterly Consolidated Financial Statements] ......................................................................................................................... 18(1) [Quarterly consolidated balance sheets] ............................................................................................................................. 18(2) [Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income] ............ 20[Quarterly consolidated statements of income] .................................................................................................................. 20[Quarterly consolidated statements of comprehensive income] ......................................................................................... 21
2 [Other] ...................................................................................................................................................................................... 26
Section 2 [Information on Guarantors, etc., of the Company] ................................................................................................................. 27[Quarterly Review Report] [Confirmation Letter]-2-

[Front Cover][Document filed]

Quarterly Report[Applicable law]

Article 24-4-7, Paragraph 1, of the Financial Instruments and Exchange Act of Japan[Filed with]

Director of Kanto Local Finance Bureau[Date filed]February 13, 2023

[Quarterly accounting period]

57th Term 1st Quarter (from October 1, 2022, to December 31, 2022)[Company name]

Kabushiki Kaisha TKC[Company name in English]

TKC Corporation[Title and name of representative]

Masanori Iizuka, Representative Director, President and Executive Officer[Address of head office]1758 Tsurutamachi, Utsunomiya-shi, Tochigi[Phone number]

028-648-2111[Contact person]

Kiyotsugu Nakanishi, Director, Managing Executive Officer, Chief of the Business
Administration Headquarters[Contact address]

2-1 Ageba-cho, Shinjuku-ku, Tokyo[Phone number]

03-3235-5511[Contact person]

Kiyotsugu Nakanishi, Director, Managing Executive Officer, Chief of the Business
Administration Headquarters[Place available for public inspection]

TKC Corporation, Tokyo Head Office(2-1 Ageba-cho, Shinjuku-ku, Tokyo)
Tokyo Stock Exchange, Inc.
(2-1 Nihonbashikabutocho, Chuo-ku, Tokyo)-3-

Section 1 [Information on the Company]
Part 1 [Overview of the Company]
1 [Key Financial Data]
Term & Period

56th Term
1st Quarter consolidated
cumulative period

57th Term
1st Quarter consolidated
cumulative period

56th Term

Accounting period

Started October
1, 2021;
ended December
31, 2021

Started October
1, 2022;
ended December
31, 2022

Started October
1, 2021;
ended September
30, 2022

Net sales(million yen)

15,292

16,90867,838

Ordinary income(million yen)

3,242

4,175

13,677

Quarterly (current) net income
attributable to owners of parent(million yen)

2,228

2,890

9,317

Quarterly comprehensive income
or comprehensive income(million yen)

2,117

3,831

8,902

Net assets(million yen)

82,40988,941

87,325

Total assets(million yen)

98,860105,006

109,225

(yen)

42.41

55.12

177.62

(yen)

－

－

－

(%)

83.4

84.7

80.0

Quarterly (current) net income per
share
Quarterly (current) diluted net
income per share
Equity ratio(Notes) 1. Changes in key financial data, etc., of the Company are not stated here, as they are included in the Company’s quarterly
consolidated financial statements.
2. The Company maintains a Board Incentive Plan (BIP) Trust and records the stocks held by said Trust as treasury stocks.
Accordingly, for the purpose of calculating the quarterly (current) net income per share, they are included in the treasury
stocks to be deducted in calculating the average number of shares outstanding.
3. The quarterly (current) diluted net income per share is not stated as there were no dilutive shares.

2 [Description of Business]
There are no significant changes in the description of the business operated by TKC Group (TKC Corporation and its affiliatedcompanies) for the current 1st Quarter consolidated cumulative period. There are no changes in the major affiliated companies.

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Part 2 [Business Overview]
1 [Risk Factors]
There are no risks pertaining to new business operations, etc., that arose during the current 1st Quarter consolidated cumulative
period. There are no significant changes in risks regarding business operations, etc., described in the annual securities report of theprevious fiscal year.

2 [Management Analysis of Consolidated Financial Conditions, Operating Results, and Cash Flows]
I. Operating Results
During the 1st Quarter consolidated cumulative period under review (hereinafter, “current 1st Quarter”), the Japanese economy
showed signs of normalization amid an easing of the impact of the novel coronavirus (hereinafter, “COVID-19”). In spite of this,inflation resulting from the soaring prices of raw materials and the tightening of monetary policy around the world have weighed on
economic recovery, and the future of the economy remains uncertain. Under these circumstances, the Japanese government hascontinued to implement various measures aimed at supporting the people and SMEs.
The Group has continued to develop systems and provide services that promptly cater to such a social environment and government
initiatives while carrying out business operations that contribute to our customers as well as local communities and society.
The Accounting Firm Business Division supports certified public tax accountants and certified public accountants that are customers
of TKC (hereinafter, “TKC Members”) in their efforts to provide their clients with advisory services related to tax, accounting,guarantees, and management as escort supporters of SMEs.
The Local Governments Business Division has provided support for the implementation of a one-stop service for holders of My
Number Card to complete their moving in/out procedures, to be launched under the partial amendment to the Basic Resident Registers
Act, as well as for emergency support benefits to address the rising prices of electricity, gas, food, etc. It has also supported local
governments in achieving the digital transformation of counter services by providing support services for the digitalization ofadministrative services.
As a result of these activities, the operating results for the current 1st Quarter of the consolidated Group comprising TKC Corporationand its six consolidated subsidiaries recorded a net sales of 16,908 million yen (increased 10.6% year-on-year), operating income of
4,012 million yen (increased 29.8% year-on-year), ordinary income of 4,175 million yen (increased 28.8% year-on-year), andquarterly net income attributable to owners of parent of 2,890 million yen (increased 29.7% year-on-year).
Net sales for the current 1st Quarter by business division are as shown below.
1. Results of operation for the 1st Quarter(1) Net sales of the Accounting Firm Business Division
Net sales of the Accounting Firm BD were 11,237 million yen (increased 5.6% year-on-year); operating income was 2,868 million
yen (increased 2.2% year-on-year). Breakdown of sales is as follows:(i) Sales from computer services increased by 3.1% year-on-year. This was due to an increase in the number of accounting firms
adopting the use of the Office Management System (OMS Cloud) for Tax Accounting Firms, which offers centralized
management of the operations of accounting firms, for the first time.
(ii) Software sales increased by 4.0% year-on-year. This was attributable to an increase in clients that have adopted the use of FX
Cloud for the first time to comply with the Revised Act on Book and Record Keeping through Electronic Methods effectivefrom January 2022 and the consumption tax invoicing system that will be launched in October 2023 through its standard
features.
(iii) Sales from consulting services increased by 4.8% year-on-year. This was due to strong sales of FX4 Cloud, an accounting
system that caters to mid-size companies, and an increase in orders for startup support services.
(iv) Hardware sales increased by 37.4% year-on-year. This was mainly attributable to funding under this year’s Subsidy Programfor Introducing IT to Businesses for the Productivity Enhancement of Services, etc. (“Subsidies for Introduction of IT”), that
had also covered the purchase of hardware, as well as an increase in customers replacing their PCs running Windows 8.1, forwhich support expired at the end of 2022.
(v) Sales from supplies decreased by 2.2% year-on-year. While sales of office equipment that supports remote work anddigitalization were strong, more clients are now transitioning to self-accounting and paperless operations, resulting in a decline
in the demand for paper-based accounting supplies and printing-related consumables.
(vi) Improvement in operating income year-on-year was a result of an increase in sales of computer services and software withhigher profit margins.
(2) Net sales of the Local Governments Business Division
Net sales of the Local Governments BD were 4,956 million yen (increased 26.8% year-on-year); operating income was 1,210
million yen (increased 856 million yen year-on-year). Breakdown of sales is as follows:-5-(i) Sales from computer services increased by 11.7% year-on-year. This was attributable to the contracted preparation of application
forms for the payment of emergency support benefits to address the rising prices of electricity, gas, food, etc., and vaccination
tickets for COVID-19 vaccines administered from the fall of 2022.
(ii) Software sales increased by 56.6% year-on-year. This was attributable to an increase in sales year-on-year from the one-timesystem modifications required for the payment of emergency support benefits to address the rising prices of electricity, gas,
food, etc., as well as the one-stop service for holders of My Number Card to complete their moving in/out procedures, which
will be launched in February 2023 under the partial amendment to the Basic Resident Registers Act.
(iii) Sales from consulting services increased by 26.0% year-on-year. This was due to the introduction of the My Number Cardissuance reservation and management system, for which orders were received until the previous fiscal year, as well as the fullscale operation of the mission-critical systems of Tendo-shi, Yamagata.
(iv) Hardware sales increased by 17.4% year-on-year. This was driven by the introduction of network devices and hardware devices
associated with the renewal of mission-critical system devices as well as the introduction of hardware equipment associatedwith the launch of new services.
(v) Improvement in operating income year-on-year was a result of an increase in sales of software with higher profit margins due
to a concentrated demand for one-time system modifications.
(3) Net sales of the Printing Business Division (Subsidiary: TLP Corporation)
Net sales of the Printing BD were 714 million yen (decreased 4.3% year-on-year); operating loss was 62 million yen (compared toan operating loss of 62 million yen in the 1st Quarter of the previous fiscal year). Breakdown of sales is as follows:(i) Sales of data printing service-related products decreased by 9.7% year-on-year. This was due to the lack of a need for printing
services for entry tickets for the House of Representatives election held in October 2021 in the current period, as well as thecancellation of a large direct-mail order by a private company due to the customer’s personal circumstances.
(ii) Business form-related sales increased by 16.1% year-on-year. This was driven by an increase in slip printing orders received
from client companies that we had newly acquired in the previous fiscal year.
(iii) Sales related to the printing of commercial-use creative materials (catalogs, books, etc.) increased by 2.6% year-on-year. Thiswas due to printing orders received from client companies for their anniversary activities.

-6-2. Important matters with respect to the Company as a whole(1) Prevention of COVID-19 infection and adapting to new working styles
As the outlook for the containment of the COVID-19 pandemic is still unpredictable, the Company continues to take the following
infection prevention measures and adapt to new working styles in order to continue providing services to its customers:(i) To enable customers to continue using our cloud services, business form printing services, and help desk services, we havecontinued to strengthen our business continuity measures (including prohibiting the entry of outside personnel at important
offices and developing infrastructure for the remote access of our data centers).
(ii) Besides allowing our employees to work from home during normal times, we also actively utilize web conferencing systems
for customer support and business meetings.
(2) Number of companies using the FX series surpasses 300,000
The number of companies using the FX series, which supports monthly settlements and strategic decision-making by management,
has surpassed 300,000. (as of December 31, 2022)(3) Launch of Invoice Manager 2022, which supports the sending and receiving of Peppol invoices
Invoice Manager 2022, which is capable of sending and receiving Peppol invoices, was launched on December 15, 2022.
Companies using this system have already started to send/receive (issue and accept) Peppol invoices, and through the promotionof this service, we will actively support the adoption of Peppol invoices at medium- and large-sized companies as well as theirdigital transformation.
(4) Launch of operation of the first mission-critical business system in Japan as part of the Digital Agency’s Gov-Cloud Preliminary
Project
Misato Town in Saitama Prefecture launched the operation of its mission-critical business system on October 31, 2022, as part of
the Gov-Cloud Preliminary Project, in which the Company is involved as a partner developer (application developer). This wasfollowed by Kawajima Town’s launch of its system in December. This was the first case in Japan of operating on Gov-Cloud, andwe aim to harness the knowledge gained from this preliminary project to complete the migration of all customers to systems thatare compliant with the standard specifications by the target deadline stipulated by the government (end of FY2025).
3. Business activities and operating results of the Accounting Firm Business Division
The Accounting Firm BD operates in accordance with the business objectives set forth in the Articles of Incorporation (Article 2,
Paragraph 1: “Management of electronic data processing centers to defend the business domain and maintain control over the fateof accounting firms”) and works in close collaboration with the TKC National Federation (TKCNF), which consists of 11,500
certified public tax accountants and certified public accountants (as of December 31, 2022) that are customers of TKC.
(1) Activities aimed at achieving positive balance and proper filing
New activity policy of TKCNF and sales activities to achieve targets(i) New activity policy of TKCNF
TKCNF has set a new activity policy for the next three years: “TKC accountants taking on the challenge of the future–push throughfield auditing and support companies in achieving positive balance and proper filing!” It has also set the following three targets toachieve the vision under this policy.
1) Massively expand superior electronic books
Promotion of self-accounting by the TKC method
2) Become guardians of tax justice
Promotion of Shomen-tempu (attachment of tax audit reports) by the TKC method
3) Support the achievement of positive balance and foster companies in good standing
Promotion of field auditing and managerial advisory services
TKCNF has taken an oath to society that it will contribute to the achievement of positive balance for companies through thepractice of field auditing and legal compliance. To support TKCNF in achieving these three targets, the Company will engage insales activities focused on the promotion of self-accounting by the TKC method.
(ii) Initiatives aimed at fostering companies in good standing
TKC Group has established the following six criteria as indicators that SMEs should aim to achieve:- Implementation of self-accounting by the TKC method- Practice of Shomen-tempu (attachment of tax audit reports)- Compliance with “Chusho Kaikei Yoryo” (Guidelines for SME Accounting)- Increase of marginal income for two consecutive fiscal years- Equity ratio of 30% or greater- Positive net income before taxes
Companies that satisfy these criteria are defined as “BAST good-standing companies” in the TKC Management Indicators-7-

(BAST), which contains the financial statement data of more than 240,0000 companies.
By supporting an increase in the number of companies that abide by compliance requirements and work toward high value-added
management under the guidance of TKC Members, we seek to appeal to society that TKC Members are escort supporters thatwork to foster companies in good standing.
(iii) Promotion of the use of the 365 Days Floating Income Statement
TKC’s self-accounting system (FX series) includes features that support monthly settlements and the 365 Days Floating Income
Statement, which supports decision-making by management. Unlike ordinary income statements, the 365 Days Floating Income
Statement allows users to review their operating results by classifying their variable costs and fixed costs separately. Corporate
managers using the FX series can keep track of the marginal profit (gross revenue) in managing their business. The Company
is engaged in activities that seek to raise awareness that the 365 Days Floating Income Statement is an indispensable tool for
management.
(iv) Promotion of self-accounting by the TKC method (promotion of the FX series)
With the start of repayment of the virtually interest-free/unsecured loans (“zero/zero loans”) extended during the COVID-19
pandemic, as well as inflation and soaring fuel costs, SMEs are currently facing a challenging business environment. In viewof this, we have provided support for the utilization of management-strategy-level features (the 365 Days Floating Income
Statement, performance evaluation matrix, budget registration, etc.) included in the FX series. Moreover, in order for
management to utilize these features effectively, it is necessary for them to enter accounting transaction data in a prompt andaccurate manner and establish a system for monthly settlements. Therefore, the Company has also provided support for dailytask-level features, including the utilization of a feature for receiving bank credit data, through which bank deposit transaction
data can be received via online banking and journal entries generated automatically, as well as the integration of salary journals
with the strategic salary information system (PX2).
As a result of these activities, the FX series has been implemented at more than 300,000 companies as of December 31, 2022.
Through the implementation of the FX series, the Company will continue working to support SMEs in establishing a system
for monthly settlements and achieving positive balance and proper filing.
(v) Supporting complete compliance with the Act on Book and Record Keeping through Electronic Methods
The requirements for the retention of electronic books have been eased under the Revised Act on Book and Record Keeping
through Electronic Methods effective from January 1, 2022. With this, there will be a distinction among electronic books (i.e.,electromagnetic records of national tax-related books): (a) “superior electronic books” that contain the history of additions,deletions, and revisions made to the accounting data (traceable) (electronic books that satisfy the requirements of both Article 2
and Article 5 of the Ordinance for Enforcement of the revised Act); and (b) “other electronic books” that are prepared using
accounting software that does not keep records of such additions/deletions/revisions (electronic books that satisfy only therequirements of Article 2 of the Ordinance for Enforcement of the revised Act). This legal reform negates the “power of
evidence” of the books, and the acceptance of such “other electronic books” implies that the government has approved the useof accounting software that may allow for the falsification of books. To address this issue, the Company is promoting the use of
the FX series for the preparation of “superior electronic books” on a national level. In addition, electronic retention of electronictransaction data will be mandated under the Revised Act on Book and Record Keeping through Electronic Methods. We will
also continue to support the use of the documentary proof storage feature of the FX series so that all businesses can support
electronic transactions.
(vi) Supporting complete compliance with the new consumption tax invoicing system
To enable accounting firms to provide smooth support to their clients in adapting to the consumption tax invoicing system thatwill be launched on October 1, 2023, the Company is organizing on-demand seminars, providing explanatory materials, andplanning other forms of support.
The FX series includes features to cross-check the names of business contacts in the Business Contacts Master against the
information on NTA’s qualified invoice issuer disclosure website, and to register or update their Business Operator Registration
Numbers. Based on this information, companies can determine on a transaction basis whether the counterpart of each certain
business transaction is a qualified invoice issuer, thereby ensuring the accurate calculation of consumption tax.
We have also completed the design of new journal entry screens and new taxation classifications in compliance with theconsumption tax invoicing system and are informing TKC Members of these updates to provide them with greater peace ofmind and confidence.
Additionally, the Company was certified as the first Peppol (Pan European Public Procurement Online) service provider inJapan on August 19, 2022, by the Digital Agency (the Japan Peppol Authority) and OpenPeppol (an association in Belgium
responsible for the development and management of Peppol specifications). TKC’s self-accounting system will utilize thisframework and enhance its features to allow the issuance and receipt of Peppol-compliant e-invoices in a standardized manner.
(vii) Promotion of TKC Monitoring Information Service-8-

TKC Monitoring Information Service is a free cloud-based service that allows TKC Members, upon the request of the
management of their clients, to disclose to financial institutions information such as monthly trial balance sheets, financial
statements, and tax returns prepared by TKC Member firms after monthly field audits and monthly settlements.
While promoting the TKC Monitoring Information Service, the Company communicated to financial institutions that thereliability of financial statements prepared by SMEs can be verified by the following three documents:
1) Supporting documents submitted by TKC Members as provided for under Article 33-2 of the Certified Public Tax
Accountants Act of Japan
2) Certificate of Bookkeeping Timeliness, with which TKC Corporation certifies the timeliness in the preparation of
accounting books as required under Article 432 of the Companies Act of Japan and the correlation between financial
statements and tax returns for the past three years3) The Chusho Kaikei Yoryo (Guidelines for SME Accounting) checklist developed by the Japan Federation of Certified Public
Tax Accountants' Associations and the Japan Federation of Credit Guarantee Corporations
As a result of these activities, TKC Monitoring Information Service has been adopted by 481 financial institutions, including
all local banks throughout Japan (62 institutions), as of December 31, 2022, with over 320,000 instances of use.
This service has been rated highly by financial institutions and credit guarantee corporations that support the management ofSMEs, as it contributes to ensuring transparency through an accurate understanding of financial conditions and the timely andappropriate disclosure of information. It is expected to serve as a bridge between financial institutions and TKC Members intheir efforts to serve as escort supporters of SMEs.
(viii) Soliciting new members (promoting membership of TKCNF)
TKCNF has set a goal of having at least 1,000 firms join the federation as new TKC Members over the three-year period from2022 to 2024. To achieve this goal, the Company has strengthened its collaboration with the TKCNF New Members Service
Committee and held the New Members Forum in Kanazawa in November 2022, which attracted around 800 new TKC
Members and non-members. As a result of these activities, the number of accounting firms that are TKC Member firms totaled
approximately 9,800 (11,500 accountants) as of December 31, 2022.
The difference in the numbers of firms and accountants is because some firms have multiple accountants who are members.
(2) Activities aimed at supporting the preparation of highly reliable financial statements based on timely and accurate bookkeeping(i) Activities to support the adoption of Chusho Kaikei Yoryo (Guidelines for SME accounting)
TKCNF recommends the use of the “Basic Guidelines with Respect to Accounting Procedures at Small- and Medium-sizedEnterprises” (hereinafter, “Chusho Kaikei Yoryo” (Guidelines for SME Accounting)) formulated in February 2012, with which
SMEs should comply.
These Guidelines have been formulated based on the following principles: (i) accounting that helps to clarify the company's
business conditions; (ii) accounting that contributes to providing information to stakeholders (financial institutions, etc.); (iii)
accounting that complies with the Regulation on Corporate Accounting while achieving greater unity of accounting and thetaxation system; and (iv) accounting that does not place excessive burden on SMEs.
In order to support the activities of TKCNF aimed at the adoption and utilization of these Guidelines, the Company continues todevelop training materials and collaborate with other organizations supporting SMEs.
(ii) Issuance of Certificate of Bookkeeping Timeliness
The Company utilizes the processing log data and historical time series data automatically logged at our data centers when TKC
Members access our accounting system to issue Certificates of Bookkeeping Timeliness free of charge. This Certificate serves
as reference for financial institutions, etc., to objectively evaluate the business performance of TKC Member firms. This service
was developed with the aim of improving the reliability of financial statements and tax returns prepared by TKC Members andfacilitating smooth financing for the clients of TKC Members. By utilizing a feature of the Company's financial/accounting
processing operations at TKC data centers that prohibits any retroactive insertions, deletions, or corrections to past data, we canprove, as a third party, that TKC Members have visited clients on a monthly basis to provide guidance on accurate bookkeeping(monthly field audits), and that all work processes from monthly settlements to the final settlement of accounts and electronic
tax filings have been completed in a comprehensive and timely manner.
(3) Expansion into the large-scale enterprise market
The Company contributes to the compliance and rationalization of tax and accounting operations at large enterprises through theuse of TKC systems, especially at listed companies, and is actively working to solicit these companies and their affiliates to becomeclients of TKC Members.
(i) Adapting to the Group Tax Sharing System
The consolidated taxation system has been reformed for the fiscal year starting after April 1, 2022, and the new group tax sharing
system is now applicable.
Based on the expertise accumulated to date, the Company has developed the “Group Tax Sharing System (e-TAX Group-9-

Sharing),” which complies with the group tax sharing system and has been offered since August 2022. We have worked closelywith TKCNF’s Medium- and Large-sized Companies Support Council (1,555 members as of December 31, 2022) over the fiscal
year ended September 2022 to support the interim tax returns of companies whose fiscal year ends in March for the first time
under the group tax sharing system.
Through these activities, approximately 40% of the 21,000-odd companies with a capital of 100 million yen or greater now use
our electronic tax filing system for corporations (ASP1000R), our consolidated tax payment system (eConsoliTax), and ourGroup Tax Sharing System (e-TAX Group Sharing) as of December 31, 2022.
(ii) Adapting to the Revised Act on Book and Record Keeping through Electronic Methods and the consumption tax invoicing
systemThe requirements for the retention of electronic books have been eased under the Revised Act on Book and Record Keeping
through Electronic Methods effective from January 2022, under which the electronic retention of electronic transaction data
has been mandated (with safe harbor rules in place until the end of December 2023).
Moreover, as the consumption tax invoicing system will be launched in October 2023, the development of a system that
supports e-invoices and initiatives to promote the system are currently underway. In December 2022, the Company became
one of the first to offer Invoice Manager 2022, which allows users to send and receive e-invoices through the Peppol network.
In conjunction with this, we held a two-week seminar to announce the launch of Invoice Manager 2022, which attracted over
1,000 participants. Separately, to provide support for compliance with these legal reforms, we held the “TKC Invoicing System
Seminar,” which attracted approximately 3,000 participants.
(iii) Expansion of our market share among large-scale enterprises and the client base of TKC Members
As a result of these activities, the number of corporate groups using the TKC Consolidated Group Solution was approximately
5,000 as of December 31, 2022. Also, 92% of the 100 largest listed companies in Japan by sales now use our systems. With
this, our market share among listed companies in Japan has reached 42%.
(4) Market expansion for legal information database services(i) Expanding the user base of TKC Law Library
To enhance the value of using TKC Law Library as a standard service for legal research, we are working to expand the basic
services of the library, such as judicial precedents, laws, documents, as well as law journals, other article collections, and related
sources of supplementary information. We are also promoting the use of our packaging service that gathers such content intocollections that cater to law firms and corporate legal departments. Since November 2022, we have been providing support for
the effective use of this service by periodically sending out email magazines containing recommended articles, etc., to ourcustomers and establishing a system that offers direct access to the service. As a result of these activities, there has been atransition from paper-based research that makes use of reference rooms and libraries to online research, as well as a greater
adoption of our packaging service. TKC Law Library has been rated highly as the only legal research service that encompasses
comprehensive law-related information by collecting and providing access to information on judicial precedents, laws, anddocuments, as well as major law journals and specialized books, leading to a steady rise in the number of subscriptions.
In the current 1st Quarter, the number of users has surpassed 57,000 IDs as a result of promotional efforts aimed at TKC Member
firms, universities, law schools, government offices, law firms, patent offices, corporate legal departments, as well as overseas
institutions and universities, with over 25,000 institutions using the Library as of December 31, 2022.
(ii) Progress in the academic market
While many universities and law schools are reverting to face-to-face classes, they still conduct classes in a variety of formats,including the incorporation of hybrid classes with online components. Our TKC Educational and Research Support System and
TKC Law Library are rated highly by faculty members and students because they can be used online anytime, anywhere, andcontain a diverse variety of content that surpasses that of other companies. They are also equipped with various features suchas report submission, online exercises, tests, and other components that support classes and self-study. They have thus
contributed to the development of the learning environment in universities by serving as part of the online system infrastructurethat supports classes and learning.
4. Business activities and operating results of the Local Governments Business Division
The Local Governments BD operates in accordance with the business objectives set forth in the Articles of Incorporation (Article
2, Paragraph 2: "Management of electronic data processing centers to improve the administrative efficiency of local governments")
and offers specialized information services that serve to help promote the welfare of residents by improving administrative
efficiency.
The Company provides the TKC Government Cloud Service to municipalities. This cloud service comprises the TASK Cloud
Service and the TASK Outsourcing Service. The TASK Cloud Service consists of mission-critical system-related services for
managing Basic Resident Registers and tax affairs information, internal information system-related services that include financial- 10 -

accounting (public accounting) and payroll calculations, and support services for the digitalization of administrative services that
include online applications for administrative procedures. The Service has been adopted by more than 1,100 municipalities(prefectures, cities, wards, towns, villages, etc.) as of December 31, 2022.
(1) Development and provision of mission-critical system-related services
Our TASK Cloud Service is a single-version package system operated at our data centers that is designed to allow shared usage bymultiple institutions. Service fees are charged in the form of a subscription fee, which also includes one regular upgrade per year.
The TASK Outsourcing Service is offered to client municipalities of our mission-critical system-related services and supports
massive batch output processing of forms such as tax papers and entry tickets for elections. In the current period under review, we
provided these client municipalities with aggressive support for their vaccination programs by promptly offering systems for theround of COVID-19 vaccination that started in the fall of 2022. In recognition of this, our mission-critical system-related services
have been adopted by approximately 170 local municipalities as of December 31, 2022.
(2) Support for the digitalization and online provision of administrative services (administrative procedures)
In order to contribute to promoting the digital transformation of local governments, the Company provides support services for thedigitalization of administrative services that allow these governments to achieve administrative counter services with “no visiting,no waiting, and no writing.”
During the current 1st Quarter, we have greatly enhanced the functionalities of the TASK Cloud Smart Application System, the
TASK Cloud Easy Counter Service System, and the TASK Cloud My Number Card Issuance Reservation and Management System.
As a result of this, the TASK Cloud Smart Application System has been adopted by at least 30 agencies, including government
ordinance-designated cities such as Osaka and Yokohama, while the TASK Cloud Easy Counter Service System and the TASKCloud My Number Card Issuance Reservation and Management System have been adopted by at least 50 agencies and around 150
agencies, respectively, as of December 31, 2022.
(3) Support for the digitalization of local tax administrations
As an authorized contractor of the Local Tax Agency, the Company provides cloud-based services for standard systems such as theinspection system eLTAX (local tax portal system) offered by the Agency. We also develop and provide Data Connection Services
as our proprietary feature to integrate the individual tax systems of various wards and municipalities.
In promoting these services, we have jointly developed proposals with 50 partner companies with which we have ongoing alliancepartner agreements. As a result, our TASK Cloud Local Taxes Electronic Filing Support Service is currently used by approximately
790 agencies, which account for more than 40% of all prefectures and local municipalities, as of December 31, 2022.
In the current period under review, we have also worked together with our partner companies to support the implementation ofsystems that cater to the additional tax items for the common local tax payment system that will be launched in April 2023.
(4) Development and provision of a financial accounting system that is fully compliant with the local public accounting system
The Company provides the TASK Cloud Public Accounting System, which is compatible with the daily journalizing method andthe financial statement generation features based on the standardized criteria formulated by the Ministry of Internal Affairs andCommunications, as well as its related systems TASK Cloud Non-current Assets Control System and TASK Cloud Consolidated
Financial Statement Generation System.
In the current period under review, we launched the next-generation version of our public accounting system with enhanced featuresthat support sustainable financial management through the visualization of financial status and the digital transformation of internal
administrative tasks through electronic payments and integration with electronic invoicing. As a result, the TASK Cloud Public
Accounting System has been adopted by approximately 300 agencies as of December 31, 2022.
(5) Research and development of next-generation products
On October 7, 2022, the Basic Policy on the Standardization of Local Government Information Systems was approved by thecabinet. This requires municipalities to migrate their mission-critical business systems (20 operations) to applications (standard
spec-compliant systems) built on Gov-Cloud that comply with the standardized criteria by the end of FY2025.
To respond to changes in the environment surrounding local governments, the Company has organized Local Government Digital
Transformation Promotion Seminars designed for client municipalities and is working to strengthen customer support through thecollection and dissemination of the latest information on the standardization of local government information systems.
Also, to support the digitalization of administrative services as set out in Version 2.0 of the Local Government Digital
Transformation (DX) Promotion Plan announced by the Ministry of Internal Affairs and Communications on September 2, 2022,
we have continued to engage in the research, study, and development of next-generation solutions through joint demonstration
projects with leading organizations, etc.
5. Business activities and operating results of the Printing Business Division
The Group’s Printing BD operates with a primary focus on data print services (hereinafter, “DPS”), business form printing, and theprinting of commercial-use creative materials.

- 11 -

In the area of DPS, sales declined year-on-year due to the lack of a need for printing services for entry tickets for the House ofRepresentatives election held in October 2021 in the current period, as well as the cancellation of a large direct-mail order by a
private company due to the customer’s personal circumstances, even though we received orders from municipalities for vaccination
tickets for their vaccination programs and for notifications of support benefits to address inflation.
In the area of business form printing, net sales increased year-on-year as a result of slip printing orders received from clientcompanies that we had newly acquired in the previous fiscal year despite the declining use of business forms and slips as morebusinesses are going paperless.
For the printing of commercial-use creative materials (catalogs, books, etc.), net sales increased year-on-year due to the printing
orders received from client companies for their anniversary activities.
In line with our aim of offering environmentally-conscious customers with environmentally-friendly paper products, TLP
Corporation, the Group’s printing business division, acquired the FSC® Chain of Custody (CoC) certification (FSC-C182216) on
October 3, 2022. This has allowed us to print the FSC certification mark on our paper products. Under this certification system,companies are required to use materials sourced from FSC-certified forests and other responsible suppliers, and to have responsible
management and printing/processing operations in place.

- 12 -

II. Qualitative Information on Consolidated Financial Conditions
1. Assets
Total assets as of the end of the current 1st Quarter consolidated accounting period amounted to 105,006 million yen, a 4,219
million yen decrease from the 109,225 million yen as of the end of the previous consolidated fiscal year.
(1) Current assets
Current assets as of the end of the current 1st Quarter consolidated accounting period amounted to 37,252 million yen, a 3,463
million yen decrease from the 40,715 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a decrease of 3,159 million yen in cash and deposits.
(2) Non-current assets
Non-current assets as of the end of the current 1st Quarter consolidated accounting period amounted to 67,754 million yen, a 756
million yen decrease from the 68,510 million yen as of the end of the previous consolidated fiscal year.
This was mainly due to a 1,663 million yen decrease in long-term deferred tax assets included in Other, despite a 1,283 million
yen increase in investment securities.
2. Liabilities
Total liabilities as of the end of the current 1st Quarter consolidated accounting period amounted to 16,064 million yen, a 5,834
million yen decrease from the 21,899 million yen as of the end of the previous consolidated fiscal year.
(1) Current liabilities
Current liabilities as of the end of the current 1st Quarter consolidated accounting period amounted to 12,015 million yen, a 5,664
million yen decrease from the 17,679 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a 3,501 million yen decrease in provisions for bonuses, a 3,066 million yen decrease in income
taxes payable, and a 701 million yen decrease in accounts payable–trade, despite a 1,376 million yen increase in deposits received
included in Other.
(2) Non-current liabilities
Non-current liabilities as of the end of the current 1st Quarter consolidated accounting period amounted to 4,049 million yen, a
170 million yen decrease from the 4,219 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a 105 million yen decrease in long-term lease obligations and a 55 million yen decrease inretirement benefit liabilities.
3. Net assets
Total net assets as of the end of the current 1st Quarter consolidated accounting period amounted to 88,941 million yen, a 1,615
million yen increase from the 87,325 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to an increase of 898 million yen in valuation difference on available-for-sale securities and an increaseof 679 million yen in retained earnings.
Equity ratio as of the end of the current 1st Quarter consolidated accounting period was 84.7%, a 4.8 percentage point increase
from the ratio of 80.0% as of the end of the previous consolidated fiscal year.
III. Operational and Financial Challenges Facing TKC Group
There are no significant changes in the challenges faced by TKC Group during the current 1st Quarter consolidated cumulative
period.
IV. Research and Development Activities
There were no research and development expenses spent by TKC Group during the current 1st Quarter consolidated cumulative
period.
There are no significant changes in the status of research and development activities under TKC Group during the current 1st Quarter
consolidated cumulative period.

- 13 -

3 [Material Agreements, etc.]
There has been no decision or conclusion of material agreements, etc., during the current 1st Quarter consolidated accounting
period.

- 14 -

Part 3 [Information on the Company]
1 [Information on the Company’s Stock](1) [Total number of shares, etc.](i) [Total number of shares]
Class

Total number of shares authorized to be issued (shares)

Common stock

120,000,000

Total

120,000,000(ii) [Issued shares]

Class

Number of shares issued asof the end of 1st Quarteraccounting period (shares)(December 31, 2022)

Common stock

53,462,066

Number of shares issued asof the filing date (shares)(February 13, 2023)

53,462,066

Name of stock exchange
on which the Company islisted, or name of
Authorized Financial
Instruments Firms
Association
Prime Marketof the Tokyo Stock

Description

Number of sharesconstituting a unit:

Exchange
Total

53,462,066

53,462,066

100 shares－－(2) [Share subscription rights, etc.](i) [Stock option scheme]
None to be disclosed.
(ii) [Other share subscription rights, etc.]
None to be disclosed.
(3) [Exercise of bonds with share subscription rights containing a clause for exercise price adjustment, etc.]
None to be disclosed.
(4) [Changes in total number of issued shares, capital stock, etc.]
Increase or
Balance ofIncrease or
decrease in total
total number
decrease in
Datenumber of issued of issued
capital stock
sharesshares(shares)(shares)(million yen)
October 1, 2022 53,462,066－－
December 31, 2022

Balance ofcapital stock

Increase or
decrease incapital reserve

Balance ofcapital reserve(million yen)(million yen)(million yen)

5,700

－

5,409

(5) [Major shareholders]
There is nothing applicable to be disclosed as the current quarter is the 1st Quarter accounting period.

- 15 -

(6) [Status of voting rights]
The status of voting rights as of the end of the current 1st Quarter accounting period indicated hereunder is based on theshareholders registry as of the most recent record date (September 30, 2022) because the content of the shareholders registry
cannot be verified and reflected.
(i) [Shares issued]
As of September 30, 2022
Classification

Number of shares (shares)

Shares without voting right

Number of voting rights(units)Description

－

－

－

－

－

－

－

－

－

Common stock

829,400－－

Shares with full voting right (others)

Common stock

52,556,100

525,561－

Shares less than one share unit

Common stock

76,566－－53,462,066

－

－

－

525,561－

Shares with restricted voting right (treasury
stock, etc.)
Shares with restricted voting right (others)
Shares with full voting right (treasury stock,etc.)

Total number of shares issued
Total voting rights held by all shareholders(Notes) Shares with full voting right (others) include 1,300 shares (13 units of voting rights) registered in the name of the Japan
Securities Depository Center, Inc., and 206,000 shares (2,060 units of voting rights) owned by the BIP Trust.
(ii) [Treasury stock, etc.]

Name of shareholder

Address ofshareholder

As of September 30, 2022
Percentage ofTotal shares held
shares held to the(shares)
total number ofissued shares (%)

Number of shares
held under own
name (shares)

Number of shares
held under othernames (shares)

829,400－

829,400

1.55

829,400－

829,400

1.55

1758 Tsurutamachi,
TKC Corporation
Total

Utsunomiya-shi,
Tochigi－(Notes) In addition to the above, the 206,000 shares owned by the BIP Trust are recorded as treasury stocks.

2 [Officers]
There has been no change in the officers during the current quarter cumulative period since the date of submission of theAnnual Securities Report for the previous fiscal year.

- 16 -

Part 4 [Financial Information]
1. Method of Preparing Quarterly Consolidated Financial Statements
The quarterly consolidated financial statements of the Company have been prepared in accordance with the Ordinance on the
Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64
of 2007).

2. Auditing and Attestation
The quarterly consolidated financial statements of the Company for the 1st Quarter consolidated accounting period (from October
1, 2022, to December 31, 2022) and the 1st Quarter consolidated cumulative period (from October 1, 2022, to December 31, 2022)
have undergone quarterly review by Ernst & Young ShinNihon LLC pursuant to the provisions of Article 193-2, Paragraph 1, of
the Financial Instruments and Exchange Act of Japan.

- 17 -

1 [Quarterly Consolidated Financial Statements](1) [Quarterly consolidated balance sheets](Unit: million yen)
Current 1st Quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2022)(December 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable, and contract assets
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment
Buildings and structures (net amount)
Land
Other (net amount)
Total property, plant, and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term time deposits
Guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable–trade
Electronically recorded obligations–operating
Short-term loans payable
Accounts payable–other
Income taxes payable
Contract liabilities
Provisions for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Retirement benefit liabilities
Provisions for stocks payment
Other
Total non-current liabilities
Total liabilities- 18 -

29,920
8,320
494
1,993
(12)
40,715

26,760
8,004
551
1,946
(11)
37,252

7,651
6,802
2,699
17,153
4,666

7,525
6,852
2,573
16,952
4,655

18,74817,7001,486
8,754
46,68968,510109,225

20,032
17,7001,456
6,958
46,14667,754
105,006

2,973
799
71
3,499
3,167
811
4,953
1,403
17,679

2,272
776
71
2,880
100
890
1,452
3,569
12,015

142
2,806
306
964
4,219
21,899

142
2,750
316
840
4,049
16,064

(Unit: million yen)
Current 1st Quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2022)(December 31, 2022)
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Accumulated remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 19 -

5,700
6,589
78,743(2,359)88,672

5,700
6,589
79,422(2,365)89,346(138)(1,207)(1,346)87,325109,225759(1,164)(404)
88,941
105,006

(2) [Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income][Quarterly consolidated statements of income][1st Quarter consolidated cumulative period]

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Insurance dividends income
Land and house rent received
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Treasury stock acquisition expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gains on sale of non-current assets
Gains on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Quarterly net income before taxes and adjustments
Income taxes–current
Income taxes–deferred
Total income taxes
Quarterly net income
Quarterly net income attributable to owners of parent(Unit: million yen)Previous 1st Quarter consolidated Current 1st Quarter consolidated
cumulative period
cumulative period(Started October 1, 2021;(Started October 1, 2022;
ended December 31, 2021)
ended December 31, 2022)
15,292
16,908
4,348
4,927
10,943
11,981
7,852
7,969
3,091
4,012

- 20 -

16
83
18
13
－
18
151

17
96
21
10
8
9
163

0
0
－
0
3,242

－
－
0
0
4,175

0
－
0

－
0
0

1
1
3,241
45
967
1,013
2,228
2,228

6
6
4,169
30
1,249
1,279
2,890
2,890

[Quarterly consolidated statements of comprehensive income][1st Quarter consolidated cumulative period]

Quarterly net income
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable to owners ofparent(Unit: million yen)Previous 1st Quarter consolidated Current 1st Quarter consolidated
cumulative period
cumulative period(Started October 1, 2021;(Started October 1, 2022;
ended December 31, 2021)
ended December 31, 2022)
2,228
2,890

- 21 -

(154)
43
(110)
2,117

898
43
941
3,831

2,117

3,831

[Notes to Financial Statements](Additional Information)(Stock-based compensation plan for officers)
1. Outline of transaction
Based on a resolution at the Board of Directors’ Meeting held on October 31, 2018, that was approved at the Ordinary General
Meeting of Shareholders held on December 21, 2018, the Company introduced a stock-based compensation plan called the“BIP Trust.” The objectives of the plan are to clarify the correlation between the Company’s shareholder value and the
remuneration for Directors, etc., and to motivate Directors, etc., to contribute more to enhancing our medium- to long-term
corporate value by sharing a common interest with shareholders, including not only the benefits of rising share prices but also
the risks associated with declining share prices.
The proposal to change the stock-based compensation plan for Directors, etc. (excluding Directors not holding executive
positions), and Full-time Auditors to performance-linked compensation has been deliberated by the Nomination andCompensation Advisory Committee, whose chairperson and half of the members are independent Outside Directors andoutside experts, and it was approved at the Ordinary General Meeting of Shareholders held on December 20, 2019.
2. Stocks of the Company remaining in trust
The stocks of the Company remaining in trust are recorded as treasury stock under net assets based on the book values in thetrust (not including expenses attributable thereto). The book value and number of stocks of said treasury stocks were 407
million yen and 206,000 shares, respectively, as of the end of the current 1st Quarter consolidated accounting period.
(Application of the Practical Solution on Accounting and Disclosure Under the Group Tax Sharing System)
The Company and its consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax
sharing system as of the current 1st Quarter consolidated accounting period. In accordance with this, the Company and its
consolidated subsidiaries have adopted the “Practical Solution on Accounting and Disclosure Under the Group Tax Sharing
System” (ABSJ Practical Solution No. 42, issued August 12, 2021; hereinafter, “Practical Solution No. 42”) for the accounting
processing and disclosure of income taxes, local corporate taxes, and tax effect accounting. Based on Paragraph 32(1) ofPractical Solution No. 42, we have deemed that there is no impact from the change in accounting policy resulting from theapplication of Practical Solution No. 42.

- 22 -

(Notes to the quarterly consolidated statements of cash flows)
The Company has not prepared quarterly consolidated statements of cash flows for the current 1st Quarter consolidated cumulative
period. Depreciation (including amortization of intangible assets) for the current 1st Quarter consolidated cumulative period is asfollows:
Previous 1st Quarter consolidated
Current 1st Quarter consolidated cumulative
cumulative period
period(Started October 1, 2021;(Started October 1, 2022;
ended December 31, 2021)
ended December 31, 2022)
Depreciation
721 million yen
939 million yen(Notes to shareholders’ equity, etc.)
I. Previous 1st Quarter consolidated cumulative period (Started October 1, 2021; ended December 31, 2021)
Dividend payments
Total amount of
Dividend
Resolution
Class of shares cash dividends
Record date
Effective date
per share (yen)(million yen)
December 17, 2021
Ordinary General
Meeting ofCommon stock

2,090

39.50

September 30, 2021

December 20, 2021

Source ofdividends
Retainedearnings

Shareholders(Notes) The total amount of cash dividends determined by resolution at the Ordinary General Meeting of Shareholders on December
17, 2021, includes a cash dividend of 8 million yen for the stocks of the Company owned by the BIP Trust.

II. Current 1st Quarter consolidated cumulative period (Started October 1, 2022; ended December 31, 2022)
Dividend payments
Resolution
December 16, 2022
Ordinary General
Meeting of
Shareholders

Total amount of
Dividend
Class of shares cash dividends
per share (yen)(million yen)

Common stock

2,210

42.00

Record date

Effective date

September 30, 2022

December 19, 2022

Source ofdividends
Retainedearnings(Notes) The total amount of cash dividends determined by resolution at the Ordinary General Meeting of Shareholders on December
16, 2022, includes a cash dividend of 8 million yen for the stocks of the Company owned by the BIP Trust.

- 23 -

(Segment information, etc.)[Segment information]
I. Previous 1st Quarter consolidated cumulative period (Started October 1, 2021; ended December 31, 2021)
Information on net sales and profit or loss for each reportable segment
Reportable segment(Unit: million yen)Amounts inquarterly
Adjustments consolidated(Note 1)statements
of income(Note 2)

Accounting
Firm BD

Local
Governments
BD

Printing
BD

10,638

3,907

746

15,292－

15,292

0

0

383

384

(384)

－

10,639

3,907

1,130

15,677(384)

15,292

2,807

354

(62)

3,098

(7)

3,091

Total

Net sales(1) Sales to outside customers(2) Inter-segment
sales or transfers
Total
Segment profit (loss)(Notes) 1. Adjustments of segment loss of 7 million yen include amounts for elimination of inter-segment transactions andadjustment of inventory assets.
2. Segment profit (loss) is adjusted with the operating profit presented in the quarterly consolidated statements ofincome.
II. Current 1st Quarter consolidated cumulative period (Started October 1, 2022; ended December 31, 2022)
Information on net sales and profit or loss for each reportable segment
Reportable segment(Unit: million yen)Amounts inquarterly
Adjustment
consolidatedsstatements(Note 1)of income(Note 2)

Accounting
Firm BD

Local
Governments
BD

Printing
BD

11,237

4,956

714

16,908－16,908

1

0

419

421

(421)

－

11,239

4,956

1,134

17,330(421)

16,908

2,868

1,210

(62)

4,015

(3)

4,012

Total

Net sales(1) Sales to outside customers(2) Inter-segment
sales or transfers
Total
Segment profit (loss)(Notes) 1. Adjustments of segment loss of 3 million yen include amounts for elimination of inter-segment transactions andadjustment of inventory assets.
2. Segment profit (loss) is adjusted with the operating profit presented in the quarterly consolidated statements ofincome.

- 24 -

(Revenue Recognition)
Net sales of the Company are primarily revenue recognized from contracts with customers. The Company’s reportable segments
can be disaggregated into the following categories of goods and services:
Previous 1st Quarter consolidated cumulative period (Started October 1, 2021; ended December 31, 2021)(Unit: million yen)
Reportable segment
Accounting Firm
BD

Total

Local
Governments
BD

Printing BD

Revenue from computer services

3,716

1,850

－

5,566

Software sales

4,288

1,166

－

5,455

Revenue from consulting

1,680

214

－

1,895

Office equipment sales

686

675

－

1,361

Accounting supplies sales

266

－

－

266

Revenue from printing-related services

－

－

746

746

10,638

3,907

746

15,292

Sales to outside customers

Current 1st Quarter consolidated cumulative period (Started October 1, 2022; ended December 31, 2022)(Unit: million yen)
Reportable segment
Accounting Firm
BD

Total

Local
Governments
BD

Printing BD

Revenue from computer services

3,829

2,066

－

5,895

Software sales

4,431

1,827

－

6,258

Revenue from consulting

1,760

270

－

2,031

Office equipment sales

944

792

－

1,736

Accounting supplies sales

271

－

－

271

Revenue from printing-related services

－

－

714

714

11,237

4,956

714

16,908

Sales to outside customers- 25 -

(Earnings per share information)
The amount of quarterly net income per share and the basis for the calculation thereof are as follows:
Previous 1st Quarter consolidated Current 1st Quarter consolidated
cumulative period
cumulative period(Started October 1, 2021;(Started October 1, 2022;
ended December 31, 2021)
ended December 31, 2022)
Quarterly net income per share

42.41 yen

55.12 yen

2,228

2,890

－

－

2,228

2,890

525,435

524,264(Basis for calculation)
Quarterly net income attributable to owners ofparent (million yen)Amount not attributable to commonshareholders (million yen)
Quarterly net income from common stocks
attributable to owners of parent (million yen)
Average number of common stocks outstanding(hundreds of shares)(Notes) 1. The average number of stocks outstanding used in the calculation of the earnings per share information has been
determined by including the stocks of the Company owned by the BIP Trust (which was established with theintroduction of the BIP Trust plan) as deductible treasury stocks.
The average numbers of said treasury stocks outstanding deducted for the calculation of quarterly net income pershare were 219,800 shares for the previous 1st Quarter consolidated cumulative period and 206,000 shares for thecurrent 1st Quarter consolidated cumulative period.
2. The quarterly diluted net income per share is not stated as there were no dilutive shares.
(Material subsequent events)
None to be disclosed.

2 [Other]
None to be disclosed.

- 26 -

Section 2 [Information on Guarantors, etc., of the Company]
None to be disclosed.

- 27 -

Quarterly Review Report of Independent Auditors
February 13, 2023

TKC Corporation
To: The Board of Directors
Ernst & Young ShinNihon LLC
Tokyo Office

Designated Limited Liability Partner
Engagement Partner

Certified Public
Shigeyuki Honda
Accountant

Designated Limited Liability Partner
Engagement Partner

Certified Public
Toru Iizuka
Accountant

Auditor's Conclusion
Pursuant to Article 193-2, Paragraph 1, of the Financial Instruments and Exchange Act,
we have conducted a quarterly review of the quarterly consolidated financial statements presented in the Financial Information section,
which comprise the quarterly consolidated balance sheets, quarterly consolidated statements of income, quarterly consolidated
statements of comprehensive income, and notes of TKC Corporation applicable to the 1st Quarter consolidated accounting period (fromOctober 1, 2022, to December 31, 2022) and the 1st Quarter consolidated cumulative period (from October 1, 2022, to December 31,2022) of the consolidated fiscal year started October 1, 2022, and ending September 30, 2023.
Based on our quarterly review, nothing has come to our attention that causes us to believe that the quarterly consolidated financial
statements referred to above do not properly represent, in all material respects, the financial position of TKC Corporation and its
consolidated subsidiaries as of December 31, 2022, and their financial performance for the 1st Quarter consolidated cumulative period
then ended in conformity with the principles for the preparation of quarterly consolidated financial statements generally accepted inJapan.
Basis for Auditor's Conclusion
We have conducted our quarterly review in accordance with the quarterly review standards generally accepted in Japan. Our
responsibilities under those standards for quarterly reviews are further described in the Auditor’s Responsibilities for the Quarterly
Review of Quarterly Consolidated Financial Statements section of our report. We are independent of the Company and its consolidated
subsidiaries in accordance with the code of professional ethics in Japan, and we have also fulfilled our other ethical responsibilities asauditors. We believe that we have obtained the evidence required to provide a basis for our conclusion.
Responsibilities of Management, Corporate Auditors, and Board of Auditors for Quarterly Consolidated Financial Statements
Management is responsible for the preparation and proper presentation of quarterly consolidated financial statements in accordance withthe principles for the preparation of quarterly consolidated financial statements generally accepted in Japan. Responsibilities include
designing and implementing the internal control determined by management as necessary to enable the preparation and proper
presentation of quarterly consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the quarterly consolidated financial statements, management is responsible for assessing the Group’s ability to continue asa going concern and disclosing, where applicable, matters related to going concern in accordance with the principles for the preparationof quarterly consolidated financial statements generally accepted in Japan.
Corporate auditors and the Board of Auditors are responsible for overseeing the Directors’ performance of their duties in designing andimplementing the financial reporting process.
Auditors’ Responsibilities for the Quarterly Review of Quarterly Consolidated Financial Statements
Our responsibility as auditors is to express a conclusion on the quarterly consolidated financial statements in our quarterly review reportfrom an independent standpoint based on our quarterly review.
In accordance with the quarterly review standards generally accepted in Japan, we perform the following by exercising professional
judgment and maintaining professional skepticism throughout the quarterly review.
・We principally make inquiries to management and persons responsible for financial and accounting matters and perform analyticalprocedures and other quarterly review procedures. The procedure for quarterly reviews is a limited procedure compared to theprocedure for annual financial statements performed in accordance with the auditing standards generally accepted in Japan.
・If we determine that there exists a material uncertainty related to events or conditions that may cast significant doubt on the Group’s
ability to continue as a going concern, we will present our conclusion, based on the evidence obtained, on whether anything has cometo our attention that causes us to believe that the quarterly consolidated financial statements have not been properly presented inaccordance with the principles for the preparation of quarterly consolidated financial statements generally accepted in Japan. If we- 28 -

conclude that such material uncertainty exists, we are required to draw attention in our quarterly review report to the related notes in
the quarterly consolidated financial statements or, if such notes about the material uncertainty are inadequate, to express a qualified
conclusion or negative conclusion on the quarterly consolidated financial statements. Our conclusions are based on the evidence
obtained up to the date of our quarterly review report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
・We evaluate whether anything has come to our attention that causes us to believe that the presentation and notes of the quarterly
consolidated financial statements are not in accordance with the principles for the preparation of quarterly consolidated financial
statements generally accepted in Japan; and whether anything has come to our attention that causes us to believe that the overall
presentation, structure, or content of the quarterly consolidated financial statements, including the related notes thereto, or thequarterly consolidated financial statements themselves, do not represent the underlying transactions and accounting-related events ina manner that constitutes proper presentation.
・We obtain evidence regarding the financial information of the Company and its consolidated subsidiaries to express a conclusion on
the quarterly consolidated financial statements. We are responsible for the direction, supervision, and performance of the quarterly
review of the quarterly consolidated financial statements. We remain solely responsible for our conclusion.
We communicate with corporate auditors and the Board of Auditors regarding the planned scope and timing of the quarterly review
and our significant findings therein.
We also provide corporate auditors and the Board of Auditors with a statement that we have complied with regulations on professional
ethics in Japan regarding independence and communicate with them all matters that may reasonably be thought to bear on our
independence as well as, where applicable, the related safeguards to eliminate or mitigate factors that may hinder our independence.
Conflicts of Interest
Our firm and its engagement partners have no interest in the Company or its consolidated subsidiaries that should be disclosed pursuant
to the provisions of the Certified Public Accountants Act of Japan.
End of document(Notes) 1. The original copy of the above quarterly review report is retained by TKC Corporation (the Company filing this quarterly
report).
2. XBRL data is not included in the scope of this quarterly review.

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[Front Cover][Document filed]

Confirmation Letter[Applicable law]

Article 24-4-8, Paragraph 1, of the Financial Instruments and Exchange Act of Japan[Filed with]

Director of Kanto Local Finance Bureau[Date filed]February 13, 2023

[Company name]

Kabushiki Kaisha TKC[Company name in English]

TKC Corporation[Title and name of representative]

Masanori Iizuka, Representative Director, President and Executive Officer[Title and name of Chief Financial Officer]

Kiyotsugu Nakanishi, Director, Managing Executive Officer, Chief of the Business
Administration Headquarters[Address of head office]1758 Tsurutamachi, Utsunomiya-shi, Tochigi[Place available for public inspection]

TKC Corporation, Tokyo Head Office(2-1 Ageba-cho, Shinjuku-ku, Tokyo)
Tokyo Stock Exchange, Inc.
(2-1 Nihonbashikabutocho, Chuo-ku, Tokyo)- 30 -

1 [Matters Related to Adequacy of Statements Contained in the Quarterly Report]
Masanori Iizuka, Representative Director, President and Executive Officer of the Company, and Kiyotsugu Nakanishi, Chief
Financial Officer of the Company, hereby confirm that the statements contained in the quarterly report for the 1st Quarter of the57th term (started October 1, 2022; ended December 31, 2022) are adequate under the Financial Instruments and Exchange Act ofJapan.

2 [Special Notes]
None to be disclosed.

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