Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended December 31, 2020
(Based on Japanese GAAP)
February 12, 2021
Company name:teno.Holdings Company Limited

Stock exchange listing: Tokyo, Fukuoka
Stock code:
7037
URL
Representative:
Inquiries:

https://www.teno.co.jp/

President & CEO
Director,GM of Administrative Headquarter

Hiroko Ikeuchi
Haruhiko Yoshino

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 25, 2021
March 25, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

March 26, 2021
Yes

Holding of financial results meeting:

Yes

TEL

092 (263) 3550

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended December 31, 2020 (from January 1, 2020 to December 31, 2020)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended December 31, 2020
10,778
7.2
612
26.1
593
28.9
339
18.0
Year ended December 31, 201910,050
6.9
485
42.6
460
56.6
287
76.0

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
72.06
17.2
8.8
5.7
61.20
17.6
7.4
4.8Diluted earnings pershare

Yen
72.83
62.81

Year ended December 31, 2020
Year ended December 31, 2019(2) Consolidated financial position

Total assets
As of December 31, 2020
As of December 31, 2019

Net assets

Equity ratio

Millions of yen
7,419
6,131

Millions of yen
2,127
1,824

Cash flows fromoperating activities
Millions of yen
508
518

Cash flows frominvesting activities
Millions of yen(1,103)(252)

Net assets per share%
28.7
29.8

Yen
456.84392.72(3) Consolidated cash flows

Year ended December 31, 2020
Year ended December 31, 2019

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
677
1,865(501)1,783

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2019Year ended December 31, 2020
Year ending December 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

0.00
0.00

––

8.00
8.208.00
8.20

3738

12.7
11.3

2.2
1.9–

0.00

–

8.40

8.40

1

10.7

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)
Net sales
Full year

Millions of yen
12,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
11.3
620
1.3
594
0.0
364
7.3
78.16

4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2020

4,657,500 shares As of December 31, 2019

4,646,700 shares

183 shares As of December 31, 2019

183 shares

Number of treasury shares at the end of the period
As of December 31, 2020
Average number of shares during the period
Year ended December 31, 2020

4,656,237 shares Year ended December 31, 20192

4,573,953 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2019

As of December 31, 2020

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

1,804,055
862,059

1,895,696
955,655

327,276(1,848)356,148(1,028)2,991,542

3,206,472

1,825,169(546,366)

2,376,863(723,967)

1,278,803

1,652,896

6,691(3,122)

15,633(10,770)

Leased assets, net

3,568

4,863

Construction in progress
Other

154,294
281,087

81,040341,161(248,410)(291,906)

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Leased assets
Accumulated depreciation

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

32,67649,254

1,469,342

1,788,055

32,968710,548

Other

73,015

110,618

Total intangible assets

105,983

821,167

Long-term loans receivable
Long-term prepaid expenses

819,159
340,984

818,039355,249

Deferred tax assets
Leasehold and guarantee deposits

49,163355,105

58,681
371,501

Other
Allowance for doubtful accounts

892
(892)

581
(581)

Total investments and other assets

1,564,413

1,603,471

3,139,7404,212,694

6,131,282

7,419,167

Investments and other assets

Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2019

As of December 31, 2020

Liabilities
Current liabilities
Accounts payable - trade

21,24824,001

Short-term borrowings
Current portion of long-term borrowings

400,000
330,664

300,000
441,312

Accounts payable - other
Income taxes payable

696,925
132,333

795,981
185,859

Provision for bonuses
Other35,949586,82147,924
600,794

Total current liabilities

2,203,942

2,395,874

Non-current liabilities
Long-term borrowings

2,038,164

2,767,782

–

2,764

13,01016,51348,92892,197

Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Asset retirement obligations
Other

2,464

16,3692,102,567

2,895,627

4,306,509

5,291,501

Share capital
Capital surplus

450,658
528,158

451,141
528,641

Retained earnings
Treasury shares

846,148(191)

1,148,074(191)

1,824,772

2,127,665

1,824,772

2,127,665

6,131,282

7,419,167

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2019

Fiscal year ended
December 31, 2020

Net sales

10,050,775

10,778,909

Cost of sales

8,463,628

8,893,322

Gross profit

1,587,147

1,885,586

Selling, general and administrative expenses

1,101,443

1,273,267

485,703612,319

5,554

5,437

Other

1,721

1,080

Total non-operating income

7,275

6,517

Interest expenses
Share issuance costs

18,795417

15,550–

Payments for employment of persons with disabilities
Other

10,150
2,918

6,100
3,259

Operating profit
Non-operating income
Interest income

Non-operating expenses

Total non-operating expenses

32,28024,909460,698

593,927

Subsidy income

188,106

828,660

Total extraordinary income

188,106

828,660

Impairment loss
Loss on tax purpose reduction entry of non-current assets

10,399187,981

24,407
828,394

Total extraordinary losses

Ordinary profit
Extraordinary incomeExtraordinary losses

198,380

852,801

Profit before income taxes

450,424569,785

Income taxes - current
Income taxes - deferred

194,749(31,602)229,565
1,122

Total income taxes

163,146

230,687

Profit287,277

339,098

Profit attributable to owners of parent

287,277

339,0985

Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2019

December 31, 2020

Profit287,277

339,098

Comprehensive income

287,277

339,098

287,277

339,098

Comprehensive income attributable toComprehensive income attributable to owners of parent

6Consolidated statements of changes in equity
Fiscal year ended December 31, 2019
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity

Total net assets

399,520

477,020558,870–

1,435,410

1,435,410

Issuance of new shares

46,36846,36892,736

92,736

Issuance of new shares - exerciseof share acquisition rights

4,770

4,770

9,540

9,540

287,277

287,277

Share capital
Balance at beginning of period
Changes during period

Profit attributable to owners ofparent

287,277

Dividends of surplus
Purchase of treasury shares(191)––(191)(191)

Total changes during period

51,13851,138287,277(191)

389,361

389,361

Balance at end of period

450,658

528,158

846,148(191)

1,824,772

1,824,772

Fiscal year ended December 31, 2020
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

450,658

Capital surplus

Retained earnings

Treasury shares

Total shareholders'equityTotal net assets

528,158

846,148(191)

1,824,772

1,824,772

––967

967

Changes during period
Issuance of new shares
Issuance of new shares - exerciseof share acquisition rights

483

483

Profit attributable to owners ofparent

339,098

339,098

339,098

Dividends of surplus(37,172)(37,172)(37,172)––

Purchase of treasury shares
Total changes during period
Balance at end of period

483

483

301,926–

302,893

302,893451,141

528,641

1,148,074(191)

2,127,665

2,127,665

7

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

December 31, 2019

December 31, 2020

450,424569,785

Depreciation
Share issuance costs

187,685417

179,929–

Impairment loss
Amortization of goodwill

10,3996,821

24,40727,003

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

864(2,701)(1,138)(11,867)

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

3,410

3,503

Interest income
Interest expenses(5,554)
18,795(5,437)
15,550(188,106)
187,981(828,660)
828,394

Decrease (increase) in trade receivables
Increase (decrease) in trade payables

38,838(1,309)(91,863)
2,753

Increase (decrease) in accounts payable - other
Other, net

44,354(89,793)

3,260
19,305

Subtotal

662,527

734,927

Interest received
Interest paid

8(18,699)

8(15,565)

Income taxes paid

(125,021)(210,758)

Net cash provided by (used in) operating activities

518,814508,611

Payments into time deposits
Purchase of property, plant and equipment(4,000)(329,518)(9,000)(1,137,617)

Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change in scope(46,812)(60,907)–(456,493)–(242,000)

Subsidies received
Long-term loan advances

188,106(68,178)828,660(38,415)

Collection of long-term loans receivable
Payments of leasehold and guarantee deposits

39,803(38,170)

44,967(41,400)

6,190
13

8,666
–

(252,565)(1,103,539)

Subsidy income
Loss on tax purpose reduction entry of non-current assets

Cash flows from investing activities

of consolidation
Payments for acquisition of businesses

Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

8(Thousands of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights
Payments for issuance of shares
Purchase of treasury shares
Dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing activities

Fiscal year ended

Fiscal year endedDecember 31, 2019

December 31, 2020

(516,780)(100,000)

600,000(685,295)

1,240,000(424,998)

92,736

–

9,540

967

(417)

–(191)––(36,805)(1,447)(1,594)(501,856)

677,568

Net increase (decrease) in cash and cash equivalents(235,607)

82,641

Cash and cash equivalents at beginning of period

2,018,662

1,783,055

Cash and cash equivalents at end of period

1,783,055

1,865,696

9