Quarterly Report(58th Term 2nd Quarter)(Started January 1, 2024;
ended March 31, 2024)

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] ............................................................................... 5
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.] ............................................................................ 13
Part 3 [Information on the Company] ........................................................................ 14
1 [Information on the Company’s Stock] ................................................................... 14(1) [Total number of shares, etc.] ....................................................................... 14(2) [Share subscription rights, etc.] ...................................................................... 14(3) [Exercise of bonds with share subscription rights containing a clause for exercise price adjustment, etc.] ............. 14(4) [Changes in total number of issued shares, capital stock, etc.] .............................................. 14(5) [Major shareholders] .............................................................................. 15(6) [Status of voting rights] ............................................................................ 15
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(3) [Quarterly consolidated statements of cash flows] ........................................................ 22
2 [Other] ............................................................................................ 28
Section 2 [Information on Guarantors, etc., of the Company] ........................................................ 29[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]

May 13, 2024

[Quarterly accounting period]

58th Term 2nd Quarter (from January 1, 2024 to March 31, 2024)[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 Agebacho, 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 Agebacho, 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

57th Term
2nd Quarter
consolidated cumulative
period58th Term
2nd Quarter
consolidated cumulative
period57th Term

Accounting period

Started October 1,
2022
ended March 31,
2023

Started October 1,
2023
Ended March 31,
2024

Started October 1,
2022
Ended September 30,
2023(millions ofyen)

Net sales(millions of

Ordinary income

yen)

36,05037,047

71,915

8,858

9,253

14,772

6,134

6,376

10,826

Quarterly (current) net income(millions of

attributable to owners of parent

yen)

Quarterly comprehensive income
or comprehensive income(millions of
yen)

6,815

7,223

13,210Net assets(millions ofyen)

91,91699,861

95,308111,179

119,221116,356(yen)

117.01122.28206.54

Quarterly (current) diluted net
income per share

(yen)

－

－

－

Equity ratio

(%)

82.7

83.8

81.9

Cash flows from operating
activities(millions of
yen)

4,314

5,611

13,067

Cash flows from investing(millions of(2,547)(3,045)(5,861)(2,324)(2,777)(5,571)

26,06328,582

28,793

Term & Period

57th Term
2nd Quarter
consolidated accounting
period58th Term
2nd Quarter
consolidated accounting
periodAccounting period

Started January 1,
2023
ended March 31,
2023

Started January 1,
2024
Ended March 31,
2024(millions of

Total assets

yen)Quarterly (current) net income per
share

activities

yen)

Cash flows from financing
activities(millions ofyen)Cash and cash equivalents at endof quarter (period)

Quarterly net income per share(millions of
yen)

(yen)

61.89

70.30

(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.

- 4 -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 2nd Quarter consolidated cumulative period. There are no changes in the major affiliated companies.

Part 2 [Business Overview]
1 [Risk Factors]
There are no risks pertaining to new business operations, etc., that arose during the current 2nd 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
In the current 2nd Quarter consolidated cumulative period (hereinafter, “current 2nd Quarter”), the Japanese economy continued tomove toward recovery, albeit only gradually, as economic activities were revitalized by rising share prices and expanded consumption
arising from the transition of COVID-19 to Class 5, more than offsetting the impact of soaring prices of raw materials and energy.
Meanwhile, in the TKC Group’s customers there have been frequent amendments to legal systems and it has been necessary for themto practically respond to the amendments. The TKC Group provides IT systems and training services for responding to amendments
to legal systems quickly and is carrying out business operations aimed at contributing to our customers and local communities.
The Accounting Firm Business Division supports certified public tax accountants and certified public accountants that are customers
of TKC (hereinafter, “TKC Members”) with regards to their first settlement and filing under the consumption tax invoicing system,
meeting the requirements for retention of electronic transactions based on the Act on Book and Record Keeping through Electronic
Methods, and preparation of the fixed-amount tax reduction system which will be required from June this year.
The Local Governments Business Division is handling benefit programs for low-income households, measures to alleviate theeconomic burden on child-rearing households, etc. and in addition is working on systems development to ensure that the customer
municipalities are able to smoothly carry out system transition by the deadline for conformity with the standard specifications (March
31, 2026) stipulated in the Basic Policy for Standardizing Information Systems in Local Governments decided by the Cabinet on
September 8, 2023.
As a result of these activities, the operating results for the current 2nd Quarter of the consolidated Group comprising TKC Corporationand its six consolidated subsidiaries recorded net sales of 37,047 million yen (increased 2.8% year on year), operating income of
8,989 million yen (increased 2.9% year on year), ordinary income of 9,253 million yen (increased 4.5% year on year), and quarterly
net income attributable to owners of parent of 6,376 million yen (increased 3.9% year on year).
Net sales for the current 2nd Quarter by business division are as shown below.
1. Results of operation for the 2nd Quarter(1) Net sales of the Accounting Firm Business Division
Net sales of the Accounting Firm Business Division were 24,624 million yen (increased 3.9% year on year); operating income was6,422 million yen (increased 3.0% year on year). Breakdown of key sales is as follows:(i) Sales from computer services increased by 4.3% year on year. This was attributable to the increase in the amount of data usedin cloud services caused by the growth in number of implementations of the FX Cloud Series in the context of the digitaltransformation (DX) of accounting work in clients, and the increasing adoption of the Office Management System (OMS Cloud)for Tax Accounting Firms and the OMS Connect which allows them to work remotely using the OMS from home or outside
their offices.
(ii) Software sales increased by 4.6% year on year. This was attributable to the increase in clients who started using the FX Cloud
Series equipped with “qualified invoice issuer check functions” and “documented evidence storage functions” for the first time
to comply with the consumption tax invoicing system and the Revised Act on Book and Record Keeping through Electronic
Methods.
(iii) Sales from consulting services increased by 3.3% year on year. This was due to an increase in the number of implementationsof startup support services accompanying new orders for FX4 Cloud, an accounting system that caters to mid-size companies.
(iv) Hardware sales increased by 2.7% year on year. This was mainly due to the costs for the purchase of hardware now being
covered by funding under the Subsidy Program for Introducing IT to Businesses for Productivity Improvement in Services, etc.
(“Subsidies for Introduction of IT”) of The Small and Medium Enterprise Agency and the rise in the sales unit price for IT
devices.

- 5 -(v) Sales from supplies decreased by 4.2% year on year. This was attributable to the decrease in sales of accounting supplies, etc.
due to the spread of digitalization, which more than offset the increase in agent transactions under the Revenue Recognition
Accounting Standard, such as sales of digital multifunction printers and office furniture.
(vi) Improvement in operating income year-on-year was a result of sales of computer services and software with higher profit
margins growing steadily.
(2) Net sales of the Local Governments Business Division
Net sales of the Local Governments BD were 11,029 million yen (increased 1.0% year on year); operating income was 2,703
million yen (increased 5.5% year on year). Breakdown of key sales is as follows:(i) Sales from computer services increased by 4.4% year on year. This was attributable to the increase in service fees due to the new
implementation of systems which support the digitalization of administrative procedures such as the system for payment of local
taxes using a unified local tax QR code (commenced April 2023), the TASK Cloud Easy Counter Service System, etc., whichmore than offset the fact that in the current fiscal year there were no printing operations such as vouchers for COVID-19 vaccine
booster shots which we received orders for in the previous fiscal year.
(ii) Software sales increased by 19.9% year on year. This was due to the large increase in temporary system upgrading operations
arising from a range of legal amendments, including the FY2023 system upgrading operations accompanying the transition to
standardization-compliant systems, benefit programs for low-income households, and measures to alleviate the economic
burden on child-rearing households.
(iii) Sales from consulting services decreased 44.6% year-on-year. This was due to the fact that in the current fiscal year there wasno systems implementation support, etc. arising from the introduction of one-stop moving out and moving in procedures andpayment of local taxes using a unified local tax QR code, which we received orders for in the previous fiscal year.
(iv) Hardware sales decreased by 8.3% year-on-year. This was due to the small number of customer organizations who needed torenew their hardware and network devices.
(v) The year-on-year increase in operating income was mainly due to an increase in system upgrading and computer services sales
with higher profit margins.
(3) Net sales of the Printing Business Division (Subsidiary: TLP Corporation)
Net sales of the Printing Business Division were 1,393 million yen (decreased 1.7% year-on-year); operating loss was 145 million
yen (compared to an operating loss of 72 million yen in the 2nd Quarter of the previous fiscal year). Breakdown of key sales is asfollows:(i) Sales of products related to the data printing service (hereinafter, “DPS”) increased by 0.8% year on year. This was due to thefact that although in the current fiscal year there were no printing operations for COVID-19 vaccine vouchers or operations
related to the support benefits to address rising prices of electricity, gas, food, etc. which we received orders for from thecustomer municipalities in the previous fiscal year, this was more than offset by the increase in orders for direct mails(hereinafter, “DMs”) which utilize QR codes to measure effects.
(ii) Business form-related sales decreased by 2.2% year-on-year. This was due to the fact that orders for slip printing operations
decreased as a consequence of the progress of digitalization in customer companies.
(iii) Sales related to the printing of commercial-use creative materials (catalogs, books, etc.) decreased by 16.1% year on year. Thiswas due to the fact that there were no printing operations related to manuals explaining the consumption tax invoicing systemor client companies’ anniversary activities which we had received orders for in the previous fiscal year.
2. Important Matters with respect to the Company as a Whole(1) Establishment of a purpose-built information site in the TKC website called Information on Support Measures for Businesses in
the 2024 Noto Peninsula Earthquake
In order to support businesses which were affected by the 2024 Noto Peninsula Earthquake, TKC established a dedicated page
presenting information on support measures for businesses in the Noto Peninsula Earthquake on January 11. Furthermore, we arealso supporting the early recovery of businesses by providing free reprinting of accounting records and free loaning of computers
to customers affected by the disaster. We pray that the businesses of all of our customers who are SMEs, etc. affected by the disasterwill recover as soon as possible.
(2) Establishment of a purpose-built information site in the TKC website called Now I have Peace of Mind regarding Fixed-AmountTax Reduction!
TKC has established a purpose-built information site on the fixed-amount tax reduction system for income tax and inhabitants tax
which will start from June this year. On this site, we explain the overview of the fixed-amount tax reduction and in addition present
the practical working schedule for the employees in charge of salary calculation, etc. By transmitting information at this site, wewill support companies and business owners so that they can meet the requirements of this system smoothly.
(3) The number of medium- and large-sized companies which have implemented Invoice Manager has surpassed 1,000 companies- 6 -Electronic retention of electronic transaction data was mandated in the Revised Act on Book and Record Keeping through Electronic
Methods from January this year. TKC provides the cloud service Invoice Manager which electronically retains invoices, etc. issued
and received electronically, greatly reducing the previous trouble and cost of retaining them on paper, and the number of companies
which has implemented Invoice Manager has exceeded 1,000 companies.
3. Business activities and operating results of the Accounting Firm Business Division
The Accounting Firm Business Division is working on the development and provision of products and services in close
collaboration with the TKCNF in order to support the sustainable development of accounting firms and SMEs, which are the clientsof the accounting firms.
Furthermore, it is providing a full range of cloud services to large-scale enterprises such as listed companies and law firms,
universities, law schools, etc.
(1) Activities to achieve “positive balance” and “proper filing”(i) Promotion of self-accounting by the TKC method (promotion of the FX Series)
SMEs are facing a challenging business environment due to inflation and depreciation of the yen and repayment of the virtuallyinterest-free/unsecured loans (“zero/zero loans”) extended during the COVID-19 pandemic, and other factors. For that reason,
we provided support so that management can quickly implement strategic decision-making through the utilization of functions
incorporated in the FX Series Financial Accounting System for Enterprises for the management strategy level (the 365 Days
Floating Income Statement, budget entry, management by division, financing results spreadsheet, and annual forecast
management). Moreover, in order for management to utilize these features effectively, it is necessary for them to enter accounting
transaction data in a timely and accurate manner and establish a system for monthly settlements. Therefore, the Company has
also provided support for the utilization of the functions of the daily-task-level, including 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 a feature for the integration of salary journals with the PX Series salary calculation system.
Note that the consumption tax invoicing system was commenced from October 2023 and TKC Members are carrying out thefiling of tax returns for individuals and financial statements filing operations for corporate companies for the first time under thissystem. The FX Series fully conforms with the consumption tax invoicing system and enables correct filing of consumption tax.
In particular due to three points ― 1) the FX Series is equipped with a function which automatically checks the applicability oftransitional measures or special provisions, 2) automatic posting of transitional measures concerning transactions with taxexempt businesses is possible, and 3) automatic posting of qualified invoice issuer numbers to financial statements, consumption
tax returns, and account items breakdown forms is possible ― all operations can be completed in one process from accounting
records to the filing of consumption tax, so the FX Series is highly evaluated as leading to the streamlining of accounting firm
operations and proper filing.
As a result of obtaining this recognition, 320,000 companies were using the FX series as of March 31, 2024. Through theimplementation 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.
(ii) Support for the preparation of highly reliable financial statements based on timely and accurate bookkeeping
The biggest feature of the financial accounting system provided by TKC Corporation is that it is predicated on the field audits
and monthly settlements which the TKC member firms implement for their clients every month, and prohibits retroactive
revisions and processing of insertions or deletions in the transaction data after implementation of the field audits. It utilizes thisfeature to issue free of charge the Certificate of Bookkeeping Timeliness which serves as materials used by financial institutions
and others to objectively determine the operational levels 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 and facilitating smooth financing for the clients of TKC Members. TKC Corporation proves, 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 by a one-stop, full line process in a timely manner. In this way the Certificate of Bookkeeping Timeliness enables“the frequency of audits” to be determined at a glance, and we believe that it will be even more important going forward.
(iii) Promotion of TKC Monitoring Information Service
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.
The Company communicates to financial institutions that the reliability of financial statements prepared by SMEs can beverified using the following three sets of documents sent by the TKC Monitoring Information Service:1) Supporting documents submitted by TKC Members as stipulated under Article 33-2 of the Certified Public Tax Accountants- 7 -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 years; and
3) 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 492 financial institutions as of March
31, 2024, surpassing 336,000 instances of use.
As a tool which can confirm the three requirements presented in the Guidelines on Management Guarantees (distinguishing andseparating relationships with corporations and individuals, strengthening of the financial foundation, and ensuring thetransparency of management through accurate ascertainment of the financial position and timely and appropriate information
disclosure), the TKC Monitoring Information Service is highly evaluated by financial institutions and credit guarantee
corporations offering management support to SMEs.
(iv) Fostering of good-standing companies through collaboration with TKCNF
The Accounting Firm Business Division is carrying out business operations aimed at the realization of “positive balance andproper filing” through close collaboration with the TKCNF, which is organized by 11,400 TKC Members (as of March 31,2024).
The TKCNF has set the activity policy for the three years from 2022 as follows.
“TKC accountants challenging the future—push through field auditing and support companies in achieving positive balanceand proper filing”
1) Massively expand superior electronic books—Promotion of self-accounting by the TKC methods
2) Become guardians of tax justice—Promotion of Shomen-tempu (attachment of tax audit reports) by the TKC methods3) Support the achievement of positive balance and foster good-standing companies—Promotion of field auditing andmanagerial advisory services
To support the activities of TKCNF and the achievement of their targets, the Company will engage in sales activities focusedon the promotion of self-accounting by the TKC methods.
Note that TKCNF is issuing the TKC Management Indicators (BAST), which contains the financial statement data of more than
250,000 companies and companies that satisfy the following criteria are defined as “BAST good-standing companies.”- Self-accounting by the TKC methods used to implement monthly settlements- Practice of shomen-tempu (attachment of tax audit reports) in accordance with Article 33-2, paragraph (1) of the Certified
Public Tax Accountants Act of Japan- Compliance with the Chusho Kaikei Yoryo (Guidelines for SME Accounting) (including corporate accounting standards and
SMEs accounting principles)- Increase of marginal income for two consecutive fiscal years- Equity ratio of 30% or greater- Positive net income before taxes
TKC Corporation is supporting the fostering of good-standing companies by TKC Members.
(v) Soliciting new members (promoting membership of TKCNF)
TKCNF has set a goal of having more than 1,000 firms join the federation as new TKC Members over the three-year period
from 2022 to 2024. To achieve this goal, the Company has strengthened its efforts in collaboration with the TKCNF New
Members Service Committee. At the same time, the Company has strengthened its support system to facilitate effective
utilization of TKC Systems, including the Office Management System (OMS Cloud) for Tax Accounting Firms, for accounting
firms that recently joined TKCNF.
(2) Expansion into 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) Response to e-invoices
In August 2023 TKC was installed as representative managing corporation of the E-Invoice Promotion Association (EIPA), andtogether with approximately 200 association member companies, primarily system vendors, we are working on activities todisseminate e-invoices.
In addition, from January 2024, electronic retention of electronic transaction data was mandated in the Revised Act on Book andRecord Keeping through Electronic Methods. Due to that, the need for electronic retention of electronic transaction data grew
and in the three months of the current 2nd Quarter the number of companies newly implementing the cloud service Invoice- 8 -Manager which digitalizes the issuance and receipt of invoices exceeded 70 companies.
As a result of these kinds of activities Invoice Manager has been implemented in approximately 1,000 medium- and large-sizedcompanies as of March 31, 2024. The Company will continue to promote the use of e-invoices going forward.
(ii) Expansion of market share among large-scale enterprises and support for expanding the client base of TKC Members
The consolidated taxation system has been reformed for the fiscal year starting after April 1, 2022, and the new Group Tax
Sharing System has been commenced. The Group Tax Shared Filing System (e-TAX Group Sharing) provided by TKC
Corporation has been highly praised by the market, and is being used in many companies which have adopted the group tax
sharing system.
Note that approximately 40% of the 20,800 some companies with a capital of more than 100 million yen now use our ASP1000R
electronic tax filing system for corporations and the Group Tax Shared Filing System (e-TAX Group Sharing) as of March 31,2024.
At the same time, the number of corporate groups using the TKC Consolidated Group Solution totaled approximately 5,630
corporate groups as of March 31, 2024. Currently, its market share in the listed companies of Japan has reached 43%, and 93
companies out of the 100 companies with the top net sales among the listed companies of Japan (93%) are using the systems of
TKC.
(3) Expansion of markets for legal information database services
TKC Corporation is widely providing legal information services to the legal community, particularly accounting firms, and to theacademic market, corporate legal departments, etc.
(i) Expansion of the number of records and content in the TKC Law Library
TKC Corporation provides the TKC Law Library, a legal information database which boasts the industry’s largest archive (morethan 342,000 judicial precedents). Centered on judicial precedent information (LEX/DB), it comprehensively covers laws,
documents, law journals, specialized books on law, and related additional information, and we are constantly enhancing thecontent in the Library. As a result of these activities, there has been a transition from paper-based research that makes use ofreference rooms and libraries to online research, which has led to a steady increase in the number of customers adopting ourservice.
For the period under review, use progressed in TKC member firms, universities, law schools, government offices, law firms,
patent offices, corporate legal departments, and overseas research institutions, and 59,000 IDs in over 26,000 institutions wereusing the Library as of March 31, 2024.
(ii) Progress toward the academic market
Many universities and law schools are promoting the digital transformation of their learning environment to allow for online
use of materials and research. The features of our TKC Law School Educational and Research Support System are that they canbe used online anytime, anywhere, and contain a diverse variety of content that surpasses that of other companies. They are also
equipped with various features such as report submission, online exercises, tests, and other components that support classes andself-study. More than 160 universities have signed a contract in FY2024 to adopt our TKC Educational and Research Support
System, which is rated highly by faculty members and students.
Furthermore, for law school students, graduates, individuals who have passed the preliminary exam, who aim to sit for the bar
exam, we also support their preparation for the bar exam by conducting the TKC Standardized Nationwide Mock Exam. The
number of examinees taking the TKC Standardized Nationwide Mock Exam was more than five times the number of students
taking the tests offered by our competitors, and our exam became the industry’s top-ranked standardized mock test. Goingforward, we will advance preparations for the transition to the CBT exam in 2026 announced by the Ministry of Justice, andwill aim to further expand the number of examinees.
4. Business activities and operating results of the Local Governments Business Division
The Local Governments Business Division offers specialized information services in order to help promote the welfare of residents
by improving administrative efficiency. The TKC Government Cloud Service provided by TKC Corporation to municipalities has
been adopted by more than 1,140 municipalities (prefectures, cities, wards, towns, villages, etc.) as of March 31, 2024.
(1) Meeting the needs of the standardization of local government information systems
Based on the Basic Policy for Standardizing Information Systems in Local Governments decided by the cabinet on September 8,2023, it is now mandatory for municipalities to use mission-critical operations systems which conform with the standardization
criteria and there is a duty to strive to use the Government Cloud with standardization-compliant systems by March 31, 2026.
TASK Cloud Service, the mission-critical operations system that we are currently providing, is a single-version package system
operated at our data centers that is designed to allow shared usage by multiple institutions. Service fees are charged in the form ofa subscription fee, which also includes one regular upgrade per year. Moreover, through provision of the TASK Outsourcing
Service, we provide integrated support for massive batch printing of forms such as tax papers and entry tickets for elections. In
recognition of this, the mission-critical system-related services of TKC Corporation have been adopted by approximately 170 local- 9 -municipalities as of March 31, 2024.
In order to support the standardization of the mission-critical operations systems, TKC Corporation is developing standardizationcompliant systems and implementing a full range of support activities for our customer municipalities to accomplish the transition
within the deadline.
(2) Support for digitalization of administrative services(i) Support for digitalization and online provision of administrative procedures
The Company provides support solutions for the digitalization of administrative services to achieve digital counter services withthe “3 No’s (no visiting, no waiting, and no writing).”
For the period under review, we have enhanced the functionalities of the TASK Cloud Smart Application System and the TASKCloud Easy Counter Service System, and have tackled the complete renewal of the TASK Cloud My Number Card IssuanceReservation and Management System in anticipation of the expanded use of the My Number Card going forward.
As a result of this, the TASK Cloud Smart Application System has been adopted by at least 50 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 100 and 170 agencies,
respectively, as of March 31, 2024.
(ii) Support for digitalization of local tax administrations
As an authorized contractor of the Local Tax Agency, TKC Corporation provides cloud-based services for standard systems
such as the inspection system eLTAX (local tax portal system) offered by the Agency. We also develop and provide a Data
Integration Service as our proprietary feature to integrate these systems with the individual tax systems of various municipalities.
In promoting these services, we have jointly developed proposals with approximately 50 partner companies with which we haveongoing alliance partner 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 March
31, 2024.
Note that in the period under review we worked on renewal of the support site and we are aiming to strengthen our support forthe customer municipalities and partner companies.
(iii) Support for the digitalization of internal administration
TKC Corporation provides the TASK Cloud Public Accounting System as well as its related systems in order to support thedigitalization of internal administration centered on the financial accounting (public accounting) system.
In the current fiscal year, we greatly strengthened features such as sustainable financial management through the visualizationof financial status, electronic payments and integration with electronic invoicing. As a result, the TASK Cloud Public
Accounting System is adopted by at least 330 agencies as of March 31, 2024. Going forward, we will work to support e-invoices
for the further streamlining of the operations of our customers.
5. Business activities and operating results of the Printing Business Division
TLP Corporation, which is responsible for the Group’s Printing Business, operates with a primary focus on the DPS, business form
printing, and the printing of commercial-use creative materials.
In the DPS field, it is proposing outsourcing (BPO) with the objectives of the rationalizing of the creation of DMs and notificationrelated operations of general administration, accounting, and personnel departments. In particular, we are working to increase thevalue offered to customers who use the Company’s services, including the measurement of DMs’ effects through utilization of the
QR code.
In the business form printing field, the use of business forms and slips is decreasing due to the increasing adoption of paperlessmethods, but there is clear demand for handwritten forms and specific forms, so we will engage in sales activities utilizing ourstrength of form printing.
In the commercial-use creative materials field (catalogs, books, etc.), we are supporting the provision in a timely manner of the
publications required by the customer companies, for example, printing materials for the anniversary events of customer companies,
revised editions of specialist books due to legal revisions, etc. Furthermore, after the COVID-19 pandemic, the holding of face-toface seminars and events is increasing in number and demand for the creation of distributed materials is also growing. We are
increasing added value and thereby expanding the number of new business contacts by undertaking contracts for the entire processfrom creation of the design to the printing.
Furthermore, against the backdrop of an increasing number of environmentally conscious customers, we have steadily increased
the use of FSC®-certified paper (we acquired the FSC forest certification (CoC certification/FSC-C182216) on October 3, 2022).
We have also begun newly producing and selling paper files as an environmentally friendly alternative to clear files and we arecatering to the needs of customers who are environmentally conscious.

- 10 -

II. Financial Conditions
Assets, liabilities, and net assets as of the end of the current 2nd Quarter consolidated accounting period are as stated below.
1. Assets
Total assets as of the end of the current 2nd Quarter consolidated accounting period amounted to 119,221 million yen, a 2,864
million yen increase compared to 116,356 million yen as of the end of the previous consolidated fiscal year.
(1) Current assets
Current assets as of the end of the current 2nd Quarter consolidated accounting period amounted to 44,180 million yen, a 1,006
million yen increase from the 43,173 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a 1,452 million yen increase in notes, accounts receivable, and contract assets, despite a 211
million yen decrease in cash and deposits.
(2) Non-current assets
Non-current assets as of the end of the current 2nd Quarter consolidated accounting period amounted to 75,040 million yen, a
1,858 million yen increase compared to 73,182 million yen as of the end of the previous consolidated fiscal year.
This was mainly due to a 1,105 million yen increase in investment securities and a 1,000 million yen increase in long-term
deposits, despite a 690 million yen decrease in long-term deferred tax assets included in Other.
2. Liabilities
Total liabilities as of the end of the current 2nd Quarter consolidated accounting period amounted to 19,359 million yen, a 1,687
million yen decrease compared to 21,047 million yen as of the end of the previous consolidated fiscal year.
(1) Current liabilities
Current liabilities as of the end of the current 2nd Quarter consolidated accounting period amounted to 15,194 million yen, a
1,603 million yen decrease compared to 16,797 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a 1,172 million yen decrease in provisions for bonuses and a 488 million yen decrease in contract
liabilities, despite a 339 million yen increase in income taxes payable.
(2) Non-current liabilities
Non-current liabilities as of the end of the current 2nd Quarter consolidated accounting period amounted to 4,165 million yen,an 84 million yen decrease compared to 4,249 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to a decrease of 69 million yen in long-term lease obligations included in Other.
3. Net assets
Total net assets as of the end of the current 2nd Quarter consolidated accounting period amounted to 99,861 million yen, a 4,552
million yen increase compared to 95,308 million yen as of the end of the previous consolidated fiscal year.
This was mainly attributable to an increase of 3,706 million yen in retained earnings and an increase of 759 million yen invaluation difference on available-for-sale securities.
The equity ratio as of the end of the current 2nd Quarter consolidated accounting period was 83.8%, a 1.9 percentage point
increase from the ratio of 81.9% as of the end of the previous consolidated fiscal year.
III. Cash FlowsThe balance of cash and cash equivalents as of the end of the current 2nd Quarter consolidated accounting period amounted to 28,582
million yen, a 211 million yen decrease compared to the end of the previous consolidated fiscal year.
The overview of cash flows for the current 2nd Quarter consolidated cumulative period and the major factors contributing to theresults are as follows.
(1) Cash flows from operating activities
Cash flows from operating activities increased by 5,611 million yen (1,297 million yen increase in revenue compared to the samequarter of the previous year). Major factors include the recording of 9,264 million yen in quarterly net income before taxes andadjustments, an increase of 1,517 million yen in notes and accounts receivable–trade, and payment of 2,213 million yen in income
taxes.
(2) Cash flows from investing activities
Cash flows from investing activities decreased by 3,045 million yen (498 million yen increase in spending compared to the samequarter of the previous year). Major factors include an expenditure of 2,700 million yen for payment into time deposits, proceedsof 1,700 million yen from the withdrawal of time deposits, and an expenditure of 1,717 million yen for the purchase of intangible
assets.
(3) Cash flows from financing activities
Cash flows from financing activities decreased by 2,777 million yen (452 million yen increase in spending compared to the samequarter of the previous year). Major factors include the payment of 2,665 million yen as year-end dividends for the fiscal year
ended September 2023 (a dividend of 51 yen per share).

- 11 -

IV. Operational and Financial Challenges Facing TKC Group
There are no significant changes in the challenges faced by TKC Group during the current 2nd Quarter consolidated cumulative
period.
V. Research and Development Activities
There were no research and development expenses spent by TKC Group during the current 2nd Quarter consolidated cumulative
period.
Additionally, there are no significant changes in the status of research and development activities under TKC Group during thecurrent 2nd Quarter consolidated cumulative period- 12 -

3 [Material Agreements, etc.]
There has been no decision or conclusion of material agreements, etc., during the current 2nd Quarter consolidated accounting
period.

- 13 -

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 the 2nd
Quarter accounting period(shares)(March 31, 2024)

Number of shares issued as of
the filing date (shares)(May 13, 2024)

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

Common stock

53,166,466

53,166,466

Tokyo Stock Exchange
Prime Market

Total

53,166,466

53,166,466－

Description

Number of sharesconstituting a unit:
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
Increase or
Balance of
decrease in
decrease intotal number ofDatetotal number ofcapital stock
issued sharesissued shares(millions of(shares)(shares)yen)
January 1, 2024 53,166,466－－
March 31, 2024

- 14 -

Balance ofcapital stock(millions ofyen)

Increase or
decrease incapital reserve(millions ofyen)

Balance ofcapital reserve(millions of
yen)

5,700

－

5,409

(5) [Major shareholders]Name of shareholder

Iizuka Takeshi ScholarshipFoundation
Daido Life Insurance Company
The Master Trust Bank of Japan, Ltd.
(Trust account)Sozeishiryokan (The Institute of Tax
Research and Literature)
TKC Group Employee Shareholding
Association
SSBTC Client Omnibus Account(Standing proxy: The Hong Kong &Shanghai Banking Corporation,
Tokyo Branch)

Number of shares
held(hundred shares)

Address

As of March 31, 2024
Percentage ofshares held to thetotal number ofissued shares(excluding treasury
stock) (%)

1758 Tsurutamachi, Utsunomiya-shi, Tochigi

75,17014.4

1-2-1 Edobori, Nishi-ku, Osaka-shi, Osaka

47,9649.2

1-8-1 Akasaka, Minato-ku, Tokyo

44,301

8.5

3-45-13 Minamidai, Nakano-ku, Tokyo

30,930

5.9

2-1 Agebacho, Shinjuku-ku, Tokyo

29,131

5.6

ONE CONGRESS STREET, SUITE 1,
BOSTON, MASSACHUSETTS

20,568

3.9(3-11-1 Nihonbashi, Chuo-ku, Tokyo)

Masaharu Iizuka

Utsunomiya-shi, Tochigi

14,626

2.8

Tokio Marine & Nichido Fire
Insurance Co., Ltd.

2-6-4 Otemachi, Chiyoda-ku, Tokyo

13,328

2.5

Aioi Nissay Dowa Insurance Co.,Ltd.

1-28-1 Ebisu, Shibuya-ku, Tokyo

11,966

2.3

Sompo Japan Insurance Inc.

1-26-1 Nishishinjuku, Shinjuku-ku, Tokyo

11,966

2.3

299,953

57.3

Total

－

(Note) The 203,800 shares of the Company held by the BIP Trust are not included in the treasury stocks to be deducted in calculating
the percentage of shares held to the total number of issued shares.
(6) [Status of voting rights](i) [Shares issued]
As of March 31, 2024
Number of shares (shares)

Number of voting rights(units)Shares without voting right

－

－

－

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

－

－

－

Shares with restricted voting right (others)

－

－

－

815,100－－

52,280,500

522,805－

70,866－－53,166,466

－

－

－

522,805－

Classification

Shares with full voting right (treasury stock,

Common

etc.)

stock

Shares with full voting right (others)
Shares less than one share unit
Total number of shares issued

Commonstock
Commonstock

Total voting rights held by all shareholders

Description(Note) 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 203,800 shares (2,038 units of voting rights) held by the BIP Trust.

- 15 -

(ii) [Treasury stock, etc.]

Name of shareholder

TKC Corporation

Address ofshareholder
1758 Tsurutamachi,
Utsunomiya-shi,

As of March 31, 2024
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)

815,100－

815,100

1.53

815,100－

815,100

1.53

Tochigi
Total－(Note) In addition to the above, the 203,800 shares held 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 the Annual
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 2nd Quarter consolidated accounting period (from January
1, 2024 to March 31, 2024) and the 2nd Quarter consolidated cumulative period (from October 1, 2023 to March 31, 2024) haveundergone 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: millions of yen)
Current 2nd Quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2023)(March 31, 2024)
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 -

32,093
8,684
* 425
1,989
(19)
43,17331,882
10,137
* 629
1,552
(20)
44,180

7,491
6,915
2,901
17,308
5,813

7,325
6,915
2,638
16,8796,590

22,05018,7001,452
7,858
50,06173,182
116,356

23,156
19,7001,531
7,182
51,57075,040119,221

2,698
780
71
3,441
2,437
1,210
4,810
1,346
16,797

2,757
633
71
2,519
2,777
722
3,637
2,073
15,194

71
2,956
341
879
4,249
21,047

35
2,972
350
806
4,165
19,359(Unit: millions of yen)
Current 2nd Quarter consolidated
Previous consolidated fiscal year
accounting period(September 30, 2023)(March 31, 2024)
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
6,286
84,890(2,604)
94,271

5,700
6,286
88,596(2,605)97,977

2,070

2,830

(1,033)

(946)

1,036
95,308116,356

1,883
99,861
119,221

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

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Insurance dividend income
Land and house rent received
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Provisions for damages
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of investment securities
Gain on sale of non-current assets
Total extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Total extraordinary loss
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: millions of yen)Previous 2nd Quarter consolidated Current 2nd Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022;(Started October 1, 2023;
ended March 31, 2023)
ended March 31, 2024)
36,05037,047
10,785
10,46325,265
26,583* 16,529* 17,594
8,735
8,989

- 20 -

35
96
21
20
25
30
229

41
113
23
20
24
42
265

0
106
0
106
8,858

0
－
0
0
9,253

0
0
1

14
1
15

9
9
8,849
2,285
429
2,714
6,134
6,134

4
4
9,264
2,569
318
2,887
6,376
6,376

[Quarterly consolidated statements of comprehensive income][2nd 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 toowners of parent(Unit: millions of yen)Previous 2nd Quarter consolidated Current 2nd Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022;(Started October 1, 2023;
ended March 31, 2023)
ended March 31, 2024)
6,134
6,376

- 21 -

593
87
680
6,815

759
87
846
7,223

6,815

7,223

(3) [Quarterly consolidated statements of cash flows](Unit: millions of yen)Previous 2nd Quarter consolidated Current 2nd Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022;(Started October 1, 2023;
ended March 31, 2023)
ended March 31, 2024)
Cash flows from operating activities
Quarterly net income before taxes and adjustments
Depreciation
Loss (gain) on sale of investment securities
Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Increase (decrease) in provisions for stocks payment
Increase (decrease) in provisions for bonuses
Increase (decrease) in retirement benefit liabilities
Decrease (increase) in notes and accounts receivable–
trade
Decrease (increase) in other assets
Increase (decrease) in accounts payable–trade
Increase (decrease) in other liabilities
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Penalties paid
Cash flows from operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant, and equipment
Purchase of intangible assets
Other
Cash flows from investing activities
Cash flows from financing activities
Repayment of long-term loans payable
Proceeds from disposal of treasury stock
Purchase of treasury stock
Payment of dividends
Other
Cash flows from financing activities
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of quarter- 22 -

8,849
1,730
(0)
(0)
9
20
(1,656)
100

9,264
1,753
(14)
(1)
4
8
(1,172)141(2,019)(1,517)

54
198
(19)
(154)
7,113
138
(0)
(2,925)
(11)
4,314

(113)
(438)
(31)
(215)
7,667
158
(0)
(2,213)－5,611(2,700)1,700(398)(1,219)70(2,547)(2,700)1,700(338)(1,717)10(3,045)

(35)
－
(13)
(2,209)(65)(2,324)(557)
26,620* 26,063

(35)
0
(5)
(2,665)(70)(2,777)(211)
28,793* 28,582

[Notes to Financial Statements](Additional Information)(Stock-based compensation plan for officers)
1. Outline of transaction
Based on a resolution at the Meeting of the Board of Directors held on October 31, 2018, which was approved at the Ordinary
General Meeting of Shareholders held on December 21, 2018, the Company introduced a stock-based compensation plancalled the “BIP Trust.” The objectives of the plan are to clarify the correlation between the Company’s shareholder value andthe 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 whose 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 403
million yen and 203,800 shares, respectively, as of the end of the current 2nd Quarter consolidated accounting period.

- 23 -

(Notes to quarterly consolidated balance sheets)* Breakdown of inventories is as follows:

Merchandise and finished goods

246 million yen

Current 2nd Quarter consolidated
accounting period(March 31, 2024)
344 million yen

Work in progress
Raw materials and supplies

41 million yen
137 million yen

126 million yen
158 million yen

Previous consolidated fiscal year
(September 30, 2023)(Notes to quarterly consolidated statements of income)* Major items included in selling, general, and administrative expenses are as follows:
Previous 2nd Quarter consolidated
Current 2nd Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022;(Started October 1, 2023;
ended March 31, 2023)
ended March 31, 2024)
Salaries
6,030 million yen
6,322 million yen
Provisions for bonuses
2,743 million yen
3,130 million yen
Retirement benefit expenses
Provisions for stocks payment
Depreciation
Rent expenses

481 million yen
20 million yen

494 million yen
12 million yen

316 million yen
1,272 million yen

333 million yen
1,286 million yen(Notes to quarterly consolidated statements of cash flows)* The relationship between the balance of cash and cash equivalents at the end of quarter and account items stated in thequarterly consolidated balance sheets is as follows:
Previous 2nd Quarter consolidated
Current 2nd Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022;(Started October 1, 2023;
ended March 31, 2023)
ended March 31, 2024)
Cash and deposits
29,363 million yen
31,882 million yen
Time deposits with deposit period
longer than three months(3,300 million yen)

(3,300 million yen)

Cash and cash equivalents

26,063 million yen

28,582 million yen(Notes to shareholders’ equity, etc.)
I. Previous 2nd Quarter consolidated cumulative period (Started October 1, 2022; ended March 31, 2023)(1) Dividend payments
Total amount of
Dividend per
Resolution
Class of shares cash dividends
Record date
Effective dateshare (yen)(millions of yen)
December 16, 2022
Ordinary General
Meeting ofCommon stock

2,210

42.00

September 30, 2022

December 19, 2022

Source ofdividends
Retainedearnings

Shareholders(Note) The total amount of cash dividends determined by resolution at the Ordinary General Meeting of Shareholders held on December
16, 2022, includes a cash dividend of 8 million yen for the stocks of the Company held by the BIP Trust.
(2) Dividends whose record dates fall within the current 2nd Quarter consolidated cumulative period but whose effective
dates are after the end of the current 2nd Quarter consolidated accounting period
Total amount of
Dividend per
Resolution
Class of shares cash dividends
Record dateshare (yen)(millions of yen)
May 12, 2023
Meeting of theCommon stock
2,052
39.00
March 31, 2023

Effective date

Source ofdividends

June 12, 2023

Retainedearnings

Board of Directors(Note) The total amount of cash dividends determined by resolution at the Meeting of the Board of Directors held on May 12, 2023,
includes a cash dividend of 8 million yen for the stocks of the Company held by the BIP Trust.

- 24 -

II. Current 2nd Quarter consolidated cumulative period (Started October 1, 2023; ended March 31, 2024)(1) Dividend payments
Total amount of
Dividend per
Resolution
Class of shares cash dividends
Record date
Effective dateshare (yen)(millions of yen)
December 15, 2023
Ordinary General
Meeting ofCommon stock

2,669

51.00

September 30, 2023

December 18, 2023

Source ofdividends
Retainedearnings

Shareholders(Note) The total amount of cash dividends determined by resolution at the Ordinary General Meeting of Shareholders held on
December 15, 2023, includes a cash dividend of 10 million yen for the stocks of the Company held by the BIP Trust.
(2) Dividends whose record dates fall within the current 2nd Quarter consolidated cumulative period but whose effective
dates are after the end of the current 2nd Quarter consolidated accounting period
Total amount of
Dividend per
Resolution
Class of shares cash dividends
Record dateshare (yen)(millions of yen)
May 10, 2024
Meeting of theCommon stock
2,355
45.00
March 31, 2024

Effective date

Source ofdividends

June 11, 2024

Retainedearnings

Board of Directors(Note) The total amount of cash dividends determined by resolution at the Meeting of the Board of Directors held on May 10, 2024,
includes a cash dividend of 9 million yen for the stocks of the Company held by the BIP Trust.

- 25 -

(Segment Information, etc.)[Segment Information]
I. Previous 2nd Quarter consolidated cumulative period (Started October 1, 2022; ended March 31, 2023)
Information on net sales and profit or loss for each reportable segment
Reportable segment(Unit: millions of yen)Amounts inquarterly
Adjustments consolidated(Note 1)statements
of income(Note 2)

Accounting
Firm
Business

Local
Governments
Business

Printing
Business

23,71010,921

1,418

36,050－36,050

2

0

901

904

(904)

－

23,713

10,921

2,320

36,955(904)

36,050

6,233

2,562

(72)

8,724

11

8,735

Total

Net sales(1) Sales to outside customers(2) Inter-segment sales ortransfers
Total
Segment profit (loss)(Notes) 1. Adjustments of segment profit of 11 million yen include amounts for elimination of inter-segment transactions andadjustment of inventory assets.
2. Segment profit (loss) is adjusted with the operating income presented in the quarterly consolidated statements ofincome.
II. Current 2nd Quarter consolidated cumulative period (Started October 1, 2023; ended March 31, 2024)
Information on net sales and profit or loss for each reportable segment
Reportable segment(Unit: millions of yen)Amounts inquarterly
Adjustments consolidated(Note 1)statements
of income(Note 2)

Accounting
Firm
Business

Local
Governments
Business

Printing
Business

24,624

11,0291,393

37,047－37,047

13

0

761

774

(774)

－

24,637

11,0292,154

37,822(774)

37,047

6,422

2,703

(145)

8,980

8

8,989

Total

Net sales(1) Sales to outside customers(2) Inter-segment sales ortransfers
Total
Segment profit (loss)(Notes) 1. Adjustments of segment profit of 8 million yen include amounts for elimination of inter-segment transactions andadjustment of inventory assets.
2. Segment profit (loss) is adjusted with the operating income presented in the quarterly consolidated statements ofincome.

- 26 -

(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 2nd Quarter consolidated cumulative period (Started October 1, 2022; ended March 31, 2023)(Unit: millions of yen)
Reportable segment
Accounting Firm
Business

Total

Local
Governments
Business

Printing Business

Revenue from computer services

7,984

4,219

－

12,204

Software sales

9,420

3,447

－

12,868

Revenue from consulting

3,603

1,361

－

4,965

Office equipment sales

2,161

1,891

－

4,053

Accounting supplies sales

540

－

－

540

Revenue from printing-related services

－

－

1,418

1,418

23,71010,921

1,418

36,050

Sales to outside customers

Current 2nd Quarter consolidated cumulative period (Started October 1, 2023; ended March 31, 2024)(Unit: millions of yen)
Reportable segment
Accounting Firm
Business

Total

Local
Governments
Business

Printing Business

Revenue from computer services

8,315

4,407

－

12,722

Software sales

9,854

4,134

－

13,988

Revenue from consulting

3,722

754

－

4,476

Office equipment sales

2,218

1,733

－

3,952

Accounting supplies sales

513

－

－

513

Revenue from printing-related services

－

－

1,393

1,393

24,624

11,0291,393

37,047

Sales to outside customers- 27 -

(Earnings Per Share Information)
The amount of quarterly net income per share and the basis for the calculation thereof are as follows:
Previous 2nd Quarter consolidated Current 2nd Quarter consolidated
cumulative period
cumulative period(Started October 1, 2022;(Started October 1, 2023;
ended March 31, 2023)
ended March 31, 2024)
Quarterly net income per share

117.01 yen

122.28 yen

6,134

6,376

－

－

6,134

6,376

524,248

521,466(Basis for calculation)
Quarterly net income attributable to owners ofparent (millions of yen)Amount not attributable to commonshareholders (millions of yen)
Quarterly net income from common stocks
attributable to owners of parent(millions of 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 held by the BIP Trust (which was established with the introductionof 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 206,000 shares for the previous 2nd Quarter consolidated cumulative period and 205,376 shares for thecurrent 2nd 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]
The following resolution regarding the current interim dividends was adopted at the Meeting of the Board of Directors held on
May 10, 2024.
(a) Total amount of cash dividends to be paid as interim dividends: 2,355 million yen(b) Dividend per share: 45.00 yen(c) Effective date of payment request and payment start date: June 11, 2024
(Note) Dividends are payable to the shareholders listed or recorded in the shareholders registry as of March 31, 2024.

- 28 -

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

- 29 -

Quarterly Review Report of
Independent Auditors
May 13, 2024

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

Designated Limited
Liability Partner
Engagement Partner

Certified Public
Accountant

Shigeyuki Honda

Designated Limited
Liability Partner
Engagement Partner

Certified Public
Accountant

Toru Iizuka

Auditor's Conclusion
Pursuant to Article 193-2, Paragraph 1, of the Financial Instruments and Exchange Act, we have conducted a quarterly review of thequarterly consolidated financial statements presented in the Financial Information section, which comprise the quarterly consolidatedbalance sheets, quarterly consolidated statements of income, quarterly consolidated statements of comprehensive income, quarterly
consolidated statements of cash flows, and notes of TKC Corporation applicable to the 2nd Quarter consolidated accounting period(from January 1, 2024, to March 31, 2024) and the 2nd Quarter consolidated cumulative period (from October 1, 2023, to March 31,2024) of the consolidated fiscal year started October 1, 2023, and ending September 30, 2024.
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 March 31, 2024, as well as their financial performance and cash flows for the 2nd Quarter consolidated
cumulative period then ended, in conformity with the principles for the preparation of quarterly consolidated financial statements
generally accepted in Japan.
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- 30 -

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 weconclude that such material uncertainty exists, we are required to draw attention in our quarterly review report to the notes to thequarterly consolidated financial statements or, if such notes are inadequate to address the material uncertainty, 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 of and notes to 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 notes thereto, or the quarterly
consolidated financial statements themselves, do not represent the underlying transactions and accounting-related events in a mannerthat 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 measures taken to eliminate factors that may hinder our independence or the safeguards
adopted to mitigate such factors to an acceptable level.
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.

- 31 -

[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]

May 13, 2024

[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 Agebacho, Shinjuku-ku, Tokyo)
Tokyo Stock Exchange, Inc.
(2-1 Nihonbashikabutocho, Chuo-ku, Tokyo)- 32 -

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 2nd Quarter of the58th term (started January 1, 2024; ended March 31, 2024) are adequate under the Financial Instruments and Exchange Act ofJapan.

2 [Special Notes]
None to be disclosed.

- 33 -