FOR TRANSLATION PURPOSE ONLY
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 version and the original Japanese version, the latter shall prevail.
February 14, 2022

Summary of Consolidated Financial Results
for the Full-Term of the Fiscal Year 2021 (FY12/2021)[Japanese GAAP] (Consolidated)

Company name:teno Holdings Company Limited
Stock exchange listing:Tokyo, Fukuoka
Securities code:
7037
URL:
https://www.teno.co.jp/
Representative:
President & CEO
Hiroko Ikeuchi
Inquiries:
Director
Haruhiko Yoshino
TEL: 81-92-263-3550
Scheduled date of ordinary general meeting of shareholders: March 24, 2022
Scheduled date to file Securities Report:
March 24, 2022
Scheduled date to commence dividend payments:
March 25, 2022
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results of FY12/2021 (January 1, 2021 – December 31, 2021)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year increase/decrease)
Net sales

FY12/2021
FY12/2020

Operating profit

Net profit attributable toowners of parent

Ordinary profit

million yen%

million yen%

million yen%

million yen%

11,454
10,778

6.3
7.2

467
612

(23.6)
26.1

455
593

(23.3)
28.9

237
339

(30.1)
18.0(Note) Comprehensive income

FY12/2021:
FY12/2020:

Profit per share

FY12/2021
FY12/2020

237 million yen [(30.1)%]
339 million yen [ 18.0 %]Diluted profit per share

Return on equity

yen

yen

%

50.71
72.83

50.35
72.06

10.6
17.2

(Reference) Share of loss of entities accounted for using equity method

FY2021:
FY2020:Ordinary profit
to toral assets ratio

Operating profit
to toral assets ratio

6.2
8.8

4.1
5.7

%

%

－million yen－million yen(2) Consolidated financial position
Total assets

Net assets

million yen

FY12/2021
FY12/2020

7,294
7,419

FY12/2021:
FY12/2020:(Reference) Shareholders equity

Equity ratio

Net assets per share%

million yen

2,331
2,127

yen

32.0
28.7

497.82456.842,331 million yen
2,127 million yen(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at the end of period

million yen

million yen

million yen

million yen

292
508

(251)
(1,103)

(161)
677

1,745
1,865

FY12/2021
FY12/2020
2. Cash dividends

Annual dividends per share
1Q-endFY12/2020
FY12/2021
FY12/2022 (forecasts)

2Q-end3Q-endYear-end

Dividend
payout ratio(consolidated)

Total cash
dividends

Total

Ratio of dividends
to net assets(consolidated)

yen

yen

yen

yen

yen

million yen

%

%

－
－
－

0.00
0.00
0.00

－
－
－

8.20
8.40
9.00

8.20
8.40
9.00

38
39

11.3
16.6
16.4

1.9
1.8

3. Consolidated performance forecasts for FY12/2022 (January 1, 2022 – December 31, 2022)
Net sales

Full-term

Operating profit

Percentages indicate year-on-year increase/decrease
Net profit attributable to
Net profit per shareowners of parent

Ordinary profit

million yen%

million yen%

million yen%

million yen%

yen

12,500

9.1

477

2.0

459

0.8

257

8.4

54.88

FOR TRANSLATION PURPOSE ONLY

*Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements① Changes in accounting policies due to revisions to accounting standards and other regulations:No② Changes in accounting policies due to other reasons:No③ Changes in accounting estimates:
No④ Restatement of prior period financial statements:
No(3) Number of issued shares (common shares)① Total number of issued shares at the end of the period (including treasury stock)
FY12/2021:
4,683,300 shares FY12/2020:
4,657,500 shares② Number of treasury stock at the end of the period
FY12/2021:
224 shares FY12/2020:③ Average number of shares during the period
FY12/2021:
4,676,356 shares

183 shares

FY12/2020:

4,656,237 shares(Reference) Unconsolidated financial results
1. Unconsolidated financial results of FY12/2021 (January 1, 2021 − December 31, 2021)(1) Unconsolidated operating results
Net sales

Operating profit

million yen

FY12/2021
FY12/2020

528
500

%

Earnings per share

FY12/2021
FY12/2020

million yen

5.8
19.0

99
94

Percentages indicate year-on-year changes

Ordinary profit
%

5.2
115.4

Net profit

million yen

147
146

%

million yen

0.6
69.8

100
99

%

0.7
73.1

Diluted earnings per share
Yen

Yen

21.40
21.34

21.25
21.12

Total assets

Net assets(2) Unconsolidated financial position
FY12/2021
FY12/2020(Reference) Shareholders equity FY12/2020:
FY12/2021:

Equity ratio

Net assets per share

million yen

million yen

%

yen

5,030
5,107

1,534
1,468

30.5
28.7

327.71315.23

1,534 million yen
1,468 million yen* Summary of financial results is not covered by audit by a certified public accountant or an auditing firm.
* Explanation regarding appropriate use of the performance forecasts and other special notes
Descriptions about the future such as performance forecasts contained in this document are based on information currently
available to the Company and certain presumptions considered as reasonable, and those are not intended to indicate the Company
should assure that it would realize such forecasts. Meanwhile, actual performance in the future may differ substantially,
influenced by a wide variety of factors. For preconditions for performance forecasts and precaution statements in using suchforecasts, please see the appendix, page 4, "1. Overall Operating Results, etc., (4) Forecasts for the future".
(How to obtain supplementary material on financial results)
Briefing for institutional investors and analysts will be held on February 17, 2022 (Thu.). Supplementary material on financial
results will be posted on our website on the same day of financial results briefing. The briefing will be held as follows.
【Date and time】February 17, 2022 (Thu.), 16:00 - 17:00【Form of briefing】Live streaming with online tools【Entry form】Please visit: https://forms.gle/CSBx2GM1PGGc3h1M9

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021○ Table of Contents: Appendix
1. Overall Operating Results, etc. .......................................................................................................................................... 2(1) Overall operating results of the current period.............................................................................................................. 2(2) Overall financial position of the current period ............................................................................................................ 3(3) Overall cash flows of the current period ....................................................................................................................... 3(4) Forecasts for the future ................................................................................................................................................. 4(5) Basic principle of profit allocation and dividends for the current/next term ................................................................. 5
2. Basic Idea for the Selection of Accounting Standards ....................................................................................................... 5
3. Consolidated Financial Statements and Principal Notes .................................................................................................... 6(1) Consolidated Balance Sheets ........................................................................................................................................ 6(2) Consolidated Statements of Income and Statements of Comprehensive Income.......................................................... 8
Consolidated Statements of Income .............................................................................................................................. 8
Consolidated Statements of Comprehensive Income .................................................................................................... 8(3) Consolidated Statements of Changes in Equity ............................................................................................................ 9(4) Consolidated Cash Flow Statements ............................................................................................................................. 10(5) Notes on Consolidated Financial Statements ................................................................................................................ 11(Going Concern Assumption) ........................................................................................................................................ 11(Notes on Consolidated Statements of Income) ............................................................................................................ 11(Segment Information, etc.)........................................................................................................................................... 11(Per Share Data) ............................................................................................................................................................ 16(Significant Post-Balance Sheet Events) ....................................................................................................................... 171

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021

1. Overall Operating Results, etc.
(1) Overall operating results of the current period
During the current consolidated fiscal year, despite national progress of vaccination against COVID-19, Japanese economy
has still experienced restrictions on social and economic activities due to rapid spread of mutant strains and consequential
announcement of State of Emergency Declaration and Stricter Countermeasures. In addition, the highly-infectious Omicron
variant has spread since around the end of 2021 and we still cannot predict when such a situation would come to an end, so it isstill necessary to consider carefully about impacts of the movement of this pandemic on our economy.
Concerning the business environment surrounding the Group, in line with the “Intensive Policy to Accelerate the
Empowerment of Women 2021” adopted by the government in June 2021 and under the policy to strongly work on creating anenvironment in which both men and women are able to balance their work with child-raising and other matters, there are keeninterests in promoting diverse ways of working and infrastructure development worth for empowerment of women, including
expanding capacity of childcare facilities and measures for enhanced support for child-raising responsive to various needs.
“New Plans for Secure Child-raising” published in December 2020 indicates that it is necessary to create additional
capacity of childcare facilities for about 140,000 children in four fiscal years between 2021 and 2024. Also, target of
employment rate of women had previously been set as 80%, but the Cabinet decided to raise it to 82% (by 2025) (Source:“The Second Phase of ‘Comprehensive Strategy for Town / People / Job Creation’”, February 2019). Following thesegovernment policies, continuous expansion of market size can be anticipated, and we think the roles of businesses carried out
by the Group as a social infrastructure to support regional welfare will be more significant than ever.
Amid such environment, in order to respond to greater needs for childcare facilities and various needs created byadvancement of women into society, the Group has started new business operations as follows during the current consolidated
fiscal year.
(Public Childcare Business)
Certified childcare centersTokyo

3 facilities in total
3 facilities in total
3 (2 in Chuo Ward; 1 in Shinagawa Ward)(Contracted Childcare Business)
10 facilities in total
Childcare centers inside companies/hospitals
5 facilities in total
Fukuoka Pref.
4 (1 in Fukuoka City; 1 in Dazaifu City; 1 in Nakagawa City; 1 in Onga Town)
Osaka Pref.
1 (in Toyonaka City)
After-school childcare centers
5 facilities in total
Fukuoka Pref.
5 (1 in Fukuoka City; 4 in Kawara Town)
Meanwhile, considering business environment surrounding the Group and in order to make better use of limited
management resources, just one facility of Public Childcare Business ceased its operation at the end of March 2021. In
addition, 17 facilities of Contracted Childcare Business ceased their operations by the end of December 2021, because of
expiration of contract term and some other reasons.
Consequently, numbers of facilities in operation are 64 in Public Childcare Business (45 certified childcare centers and 19
small certified childcare centers); 218 in Contracted Childcare Business (130 contracted childcare centers, 56 after-school
childcare centers, and 32 Waiwai Parks); and 7 in Other Business (4 non-certified childcare centers, 1 small childcare center(In-establishment Childcare Business), and 2 nursing homes (day-service)); namely 289 facilities in total.
Consequently, financial results of the current consolidated fiscal year were as follows: Net sales of 11,454,747 thousandyen (increase by 6.3% YoY); Operating profit of 467,875 thousand yen (decrease by 23.6% YoY); Ordinary profit of 455,384
thousand yen (decrease by 23.3% YoY); and Net profit attributable to owners of parent of 237,150 thousand yen (decrease by
30.1% YoY).

2

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021

Operating results of individual business segments are as follows. It should be noted that segment results as shown below
are those before offsetting inter-segment transactions.
(Public Childcare Business)
In the Public Childcare Business segment, 3 new certified childcare centers were opened during the current consolidated
fiscal year. In addition, each existing facility has put efforts to improved quality of childcare and enhanced efficiency ofoperation. During the previous FY variable expenses were suppressed due to temporal closure and voluntary staying home, butduring the current FY normal facility operations could be resumed and therefore variable expenses increased, resulting in
profitability pushed down. For the current consolidated fiscal year, these operations resulted in Net sales of 7,404,767
thousand yen (increase by 14.2% YoY), and Segment profit of 771,322 thousand yen (decrease by 4.5% YoY).
(Contracted Childcare Business)
In the Contracted Childcare Business segment, efforts were put to sales activities for obtaining new contracts for childcare
facilities provided by companies/hospitals, after-school childcare centers and Waiwai Parks, resulting in 10 new facilities (5contracted childcare centers and 5 after-school childcare centers) in operation. 5 new after-school childcare centers wereopened, 4 of which are those having started operation upon entering into deal with Kawara Town, Fukuoka Pref. In addition,
each existing facility has put efforts to improved quality of childcare and enhanced efficiency of operation. However, becauseof ceasing operation of 17 facilities during the current consolidated fiscal year, numbers of facilities currently in operation
decreased as compare to the previous year. Also, due to influence of COVID-19 and consequential increase in people working
from home and having longer child care leave, and “refraining from day-care” in fear of infection risk, fewer facilities havebeen in operation since the third quarter. For the current consolidated fiscal year, these operations resulted in Net sales of
3,479,209 thousand yen (decrease by 7.2% YoY), and Segment profit of 138,745 thousand yen (decrease by 36.6% YoY).
(Other Business)
In Other Business segment, efforts were put to, for example, staffing services mainly to kindergartens and childcare
centers, improved service quality at directly run non-certified childcare centers and nursing homes, and enhanced efficiency ofoperation. However, due to on-and-off announcement of State of Emergency Declaration and Stricter Countermeasures,
facilities operation rates improved as compared to the previous year but could not restore to normal level. For the current
consolidated fiscal year, these operations resulted in Net sales of 584,513 thousand yen (increase by 2.4% YoY), and Segment
loss of 20,849 thousand yen (as opposed to Segment profit of 25,647 thousand yen in the previous FY).
(2) Overall financial position of the current period(Assets)
Total assets at the end of the current consolidated fiscal year was 7,294,187 thousand yen (decrease by 124,979 thousand
yen YoY).
Current assets was 3,215,120 thousand yen (increase by 8,647 thousand yen YoY). This is mainly due to decrease in cash
and deposits by 101,971 thousand yen, increase in accounts receivable - trade by 24,860 thousand yen, and increase in othercurrent assets by 85,725 thousand yen.
Non-current assets was 4,079,066 thousand yen (decrease by 133,627 thousand yen YoY). This is mainly due to decreasein property, plant and equipment (buildings and structures of certified childcare centers) by 112,757 thousand yen, decrease inintangible assets by 1,921 thousand yen, and decrease in investment and other assets by 18,948 thousand yen.
(Liabilities)
Total liabilities at the end of the current consolidated fiscal year was 4,962,864 thousand yen (decrease by 328,637 thousand
yen YoY).
Current liabilities was 2,427,822 thousand yen (increase by 31,947 thousand yen YoY). This is mainly due to decrease in
short-term loans payable by 77,664 thousand yen, increase in current portion of long-term loans payable by 2,764 thousand yen,decrease in income taxes payable by 97,947 thousand yen, and decrease in other current liabilities by 57,558 thousand yen.
Non-current liabilities was 2,535,042 thousand yen (decrease by 360,585 thousand yen YoY). This is mainly due to decreasein long-term loans payable by 377,574 thousand yen, and increase in asset retirement obligations by 363 thousand yen.
(Net assets)
Total net assets at the end of the current consolidated fiscal year was 2,331,323 thousand yen (increase by 203,657 thousand
yen YoY). This is due to increase in both capital stock and capital surplus by 2,373 thousand yen respectively because ofissuance of new shares, decrease in retained earnings by 38,190 thousand yen because of paying dividends, and increase inretained earnings by 237,150 thousand yen because of allocating net profit attributable to owners of parent.
(3) Overall cash flows of the current period
With respect to cash and cash equivalents (hereinafter, "business fund") at the end of the current consolidated fiscal year,
due to 292,834 thousand yen provided from operating activities, 251,352 thousand yen used in investment activities, and 161,453
thousand yen used in financial activities, business fund decreased by 119,971 thousand yen as compared to the end of theprevious consolidated fiscal year and thus it was 1,745,725 thousand yen.
3

FOR TRANSLATION PURPOSE ONLY

teno Holdings Company Limited (7037)
Summary of Consolidated Financial Results for the Full-Term of FY12/2021

Each cash flow status and factors thereof in the current consolidated fiscal year are as follows.
(Cash flows from operating activities)
Business fund provided by of operating activities was 292,834 thousand yen (it was 508,611 thousand yen at the end of theprevious consolidated fiscal year). This is mainly due to net profit before income taxes and minority interests of 397,206
thousand yen, depreciation of 204,169 thousand yen, and income taxed paid of 309,609 thousand yen.
(Cash flows from investing activities)
Business fund used in investment activities was 251,352 thousand yen (it was 1,103,539 thousand yen at the end of theprevious consolidated fiscal year). This is mainly due to purchase of property, plant and equipment of 6,243 thousand yen
pertaining to opening new certified childcare centers, payments for lease and guarantee deposits of 20,081 thousand yen, andsubsidy received of 711,706 thousand yen.
(Cash flows from financing activities)
Business fund used in financial activities was 161,453 thousand yen (in comparison, 677,568 thousand yen was provided at
the end of the previous consolidated fiscal year). This is mainly due to proceeds from long-term loans payable of 70,000 thousand
yen, net increase in short-term loans pay of 250,000 thousand yen, and dividends paid of 38,256 thousand yen.
(4) Forecasts for the future
The Group has its management philosophy as“We support women’s life stages.”“We think from other person’s viewpoint.”“We promote compliance.”“We contribute to society through our business.”and has developed its business considering what services are necessary for creating a society where “women” raise their children,
do housework and take care of elderlies while still being bright and successful.
For the future as well, centered on childcare businesses drawing high social attention and being expected to expand theirmarket size, the Group will provide even more childcare facilities and high quality services which continue to be chosen byusers.
Also, the Group will put efforts to development of new services around “Supporting women’s life stages” which is one of
the Group’s business domains as an approach to creating its future principal business.
Consolidated performance forecasts for the next consolidated fiscal year (FY12/2022) are as follows: Net sales of
12,500,000 thousand yen (increase by 9.1% YoY); Operating profit of 477,000 thousand yen (increase by 2.0% YoY);
Ordinary profit of 459,000 thousand yen (increase by 0.8% YoY); and Net profit attributable to owners of parent of 257,000
thousand yen (increase by 8.4% YoY).
Preconditions for the next fiscal year (FY12/2022) are as follows.
①Net sales
Public Childcare Business segment operates public childcare centers such as certified childcare centers and small certified
childcare centers. During FY12/2022, 1 certified childcare centers are planned to be opened (1 in April 2022).
With respect to net sales, benefits received based on the criteria established by national government and subsidies granted
based on the specific criteria established by local governments are calculated for each childcare center (combining
increase/decrease in net sales at existing centers and increase in net sales at new centers). It should be noted that benefits andsubsidies are determined basically based on numbers of children to be kept and of staff, and therefore they are calculated basedon estimation of such numbers for each center.
Given the above, Public Childcare Business segment expects net sales of 7,850,000 thousand yen (increase by 6.0% YoY).
Contracted Childcare Business operates contracted childcare centers, after-school childcare centers and Waiwai Parks. Net
sales at contracted childcare centers are calculated for each childcare center (combining increase/decrease in net sales atexisting centers and increase in net sales at new centers). Net sales is calculated by multiplying contractual unit price set foreach center by estimated number of operational hours to run the center based on the Group’s actual results in the previous year.
Net sales at after-school childcare centers are calculated based on specified management fees according to contracts withlocal governments and actual amount of center usage fees during the previous year.
Net sales at Waiwai Parks are calculated based on actual amount of contracted service fees according to contracts withlocal governments.
Given the above, Contracted Childcare Business segment expects net sales of 3,530,000 thousand yen (decrease by 1.5%
YoY).
Other Business segment provides services responsive to various needs: such as staffing services to kindergartens andchildcare centers, baby-sitter services and house services; operation of tenoSCHOOLs, 4 non-certified childcare centers, 1
small certified childcare center (In-establishment Childcare Business), 2 day-care nursing facilities, and operation of marriage
counseling service “Tenomari”. In April 2022, one new day-care nursing facility will be opened. Also, operating results ofForte Co., Ltd. which became a subsidiary of the Company on January 31, 2022, will be included in the net sales at Other4

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021

Business segment.
Net sales in Other Business segment is calculated considering average unit price, operational hours, number of projects,
number of children to be kept and other factors based on actual results in the previous year for each service.
Given the above, Other Business segment expects net sales of 1,120,000 thousand yen (increase by 96.2% YoY).
②Operating profit
Operating profit is forecasted as the amount calculated based on sales cost and SG&A expenses planned according toforecasted net sales.
In planning sales cost, labor cost and other expenses are calculated with reference to actual results in the previous year foreach segment. In addition, labor cost accounts for a high proportion of sales cost, and increase in labor cost due to salary
increase for existing staff and opening new facilities is taken into account and included in the plan.
SG&A expenses is planned based on business plans, equipment plans, personnel plans and others for each segment. SG&A
expenses includes mainly personnel expenses for indirect departments belonging to administration department, sales department
and each business department, and recruitment expenses pertaining to employment of childcare personnel and others.
Recruitment expenses includes mainly those pertaining to employment/recruitment of childcare personnel and others to be
newly hired with increasing number of centers operated by the Group. Meanwhile, in April that is the beginning of a newacademic year, start-up cost for the new year and expenses required for employment/recruitment of childcare personnel tend toconcentrate.
Given the above, operating profit in each segment is forecasted as follows: Public Childcare Business: 770,000 thousandyen (decrease by 0.2% YoY); Contracted Childcare Business: 128,000 thousand yen (decrease by 7.7%); and Other Business:
120,000 thousand yen (in comparison, operating loss of 20,850 thousand yen was recorded in the previous term).
③Ordinary profit
Ordinary profit is forecasted as the amount calculated considering non-operating profit and non-operating expenses which
would accrue during the next term. Non-operating expenses includes mainly interest expenses which is calculated according to
the Group’s financing plan.
④Net profit attributable to owners of parent
Net profit attributable to owners of parent is forecasted as the amount calculated considering extraordinary profit,
extraordinary losses and tax expenses which would accrue during the next term. Extraordinary profit includes mainly subsidy
income (subsidy for construction of facilities) from local governments in Public Childcare Business segment. This subsidy is
calculated based on those granted to the three centers newly opened during FY12/2022 and is forecasted as 257,000 thousandyen (decrease by 66.8% YoY).
As for accounting treatment of subsidies received from local governments (subsidy for construction of facilities, etc.), theGroup has adopted “direct reduction method” as its accounting policy, which allocates loss on reduction of non-current assets,
directly reduce book values of relevant non-current assets, and also allocates depreciation in each term based on such reduced
amounts.
It should be noted the above performance forecasts are based on currently available information. Actual results may
differ from these forecasts due to various factors in the future.
(5) Basic principle of profit allocation and dividends for the current/next term
①Basic principle of profit allocation
The Company has its basic principle as to continuously provide stable dividends while ensuring internal reserve necessary
for future business development and improved balance sheet.
②Dividends for the current/next term
The Company has its basic principle as to provide dividends from surplus funds annually as year-end dividends. For thecurrent consolidated fiscal year, given the abovementioned basic principle of profit allocation, the Company intends to suggest
at the regular shareholders meeting to be held on March 24, 2022, that it will set its ordinary dividend per share as of the end of
the current consolidated fiscal year as 8.40 yen. In addition, with respect to dividend per share for the next term, the Company
intends to set its dividend per share as 9.00 yen, considering the situation of enhanced internal reserve and balance with returnof profit to shareholders.
2.

Basic Idea for the Selection of Accounting Standards
The Group produces its consolidated financial statements in accordance with Japanese standards, taking into accountyear-on-year comparability of consolidated financial statements and comparability with other companies. Meanwhile, for the
future, the Group intends to proceed with discussion on applying International Financial Reporting Standards, considering
for example domestic trends in accounting standards and in applying the Standards by our industry peers.

5teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021

3.

Consolidated Financial Statements and Principal Notes(1)

Consolidated Balance Sheets(thousand yen)Previous consolidated
fiscal year
(December 31, 2020)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
OthersAllowance 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
Leased assets (net)
Construction in progress
Others
Accumulated depreciation
Others (net)Total property, plant and equipment
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

Current consolidated
fiscal year
(December 31, 2021)

1,895,696
955,655
356,148(1,028)3,206,472

1,793,725
980,515
441,874(995)
3,215,120

2,376,863(723,967)
1,652,896
15,633(10,770)
4,863
81,040341,161(291,906)
49,254
1,788,055

2,392,990(874,043)
1,518,946
15,633(13,598)
2,035
108,916
359,971(314,571)
45,3991,675,297

710,548
110,618
821,167

649,783
169,462
819,246－
818,039355,249
58,681
371,501
581(581)
1,603,471
4,212,694
7,419,167

10,000777,962
323,622
110,108
362,830
5,924(5,924)
1,584,522
4,079,066
7,294,187

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021(thousand yen)Previous consolidated
fiscal year
(December 31, 2020)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Provision for bonuses
OthersTotal current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Asset retirement obligations
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets

7

Current consolidated
fiscal year
(December 31, 2021)

24,001300,000
441,312795,981
185,859
47,924
600,794
2,395,874

22,185550,000
444,076
718,316
87,91262,095543,235
2,427,822

2,767,782
2,764
16,51392,197
16,3692,895,627
5,291,501

2,390,207
13,67323,44792,56015,152
2,535,042
4,962,864

451,141
528,641
1,148,074(191)
2,127,665
2,127,665
7,419,167

453,515531,015
1,347,034(241)
2,331,323
2,331,323
7,294,187

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021(2)

Consolidated Statements of Income and Statements of Comprehensive Income(Consolidated Statements of Income)(thousand yen)

Net sales
Cost of sales
Gross profit
SG&A expenses
Operating profit (loss)
Non-operating profit (loss)
Interest income
Subsidy income
OthersTotal non-operating profit (loss)
Non-operating expenses
Interest expenses
Employment levy for persons with disabilities
Subsidy returned
OthersTotal non-operating expenses
Ordinary profit (loss)
Extraordinary profit
Subsidy income
OthersTotal extraordinary profit
Extraordinary losses
Impairment loss
Loss on reduction of non-current assets
OthersTotal extraordinary losses
Net profit (loss) before income taxes and minority interests
Income taxes
Income taxes - deferred
Total income taxes
Net profit (loss)
Net profit (loss) attributable to owners of parent

Previous consolidated
fiscal year

Current consolidated
fiscal year

(Jan. 1, 2020 – Dec. 31, 2020)(Jan. 1, 2021 – Dec. 31, 2021)

10,778,909
8,893,322
1,885,586
1,273,267
612,319

11,454,747
9,652,802
1,801,945
1,334,069
467,875

5,437
240
840
6,517

5,252
22,9601,605
29,81815,550
6,100
682
2,576
24,909593,927

16,5394,975
16,763
4,032
42,310455,384

828,660

711,706－
828,660

4,400
716,106*1

24,407
828,394－*1

852,801

774,284

569,785
229,565
1,122
230,687
339,098
339,098397,206
200,573(40,517)160,056
237,150
237,150

58,135
711,705
4,444(Consolidated Statements of Comprehensive Income )(thousand yen)

Net profit (loss)
Comprehensive income (loss)(detail)Comprehensive income (loss) attributable to owners of parent

8

Previous consolidated
fiscal year

Current consolidated
fiscal year

(Jan. 1, 2020 – Dec. 31, 2020)(Jan. 1, 2021 – Dec. 31, 2021)

339,098
339,098

237,150
237,150

339,098

237,150

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021(3)

Consolidated Statements of Changes in Equity
Previous consolidated fiscal year (Jan. 1, 2020 – Dec. 31, 2020)(thousand yen)
Shareholders' equity
Capitalstock

Balance at beginning ofcurrent period

CapitalsurplusRetainedearnings

450,658

528,158483

483

846,148

Total
shareholders'equityTreasury
stock
(191)

Total
net assets

1,824,772

1,824,772

967

967

Changes of items during
periodIssuance of new shares(exercise of subscription
rights to shares)
Net profit attributable toowners of parent

339,098

339,098

339,098

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

Purchase of treasury stock
Total changes of items during
periodBalance at end of current
period483

483

301,926－

302,893

302,893451,141

528,641

1,148,074(191)

2,127,665

2,127,665

Current consolidated fiscal year (Jan. 1, 2021 – Dec. 31, 2021)(thousand yen)
Shareholders' equity
Capitalstock
Balance at beginning ofcurrent period

Capitalsurplus451,141

528,641

2,373

2,373

Retainedearnings
1,148,074

Treasury
stock
(191)

Total
shareholders'equityTotal
net assets

2,127,665

2,127,665

4,747

4,747

Changes of items during
periodIssuance of new shares(exercise of subscription
rights to shares)
Net profit attributable toowners of parent

237,150

237,150

237,150Dividends of surplus(38,190)(38,190)(38,190)

(50)

(50)

(50)

Purchase of treasury stock
Total changes of items during
periodBalance at end of current
period

2,373

2,373

198,960(50)

203,657

203,657

453,515531,015

1,347,034(241)

2,331,323

2,331,323

9

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021(4)

Consolidated Cash Flow Statements(thousand yen)

Cash flows from operating activities
Net profit (loss) before income taxes and minority interests
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' retirement benefits
Interest income
Interest expenses
Subsidy income
Loss on reduction of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other
OthersSubtotalInterest income received
Interest expenses paid
Income taxed paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investments in subsidiaries resulting in change in scope of consolidation
Payments for transfer of business
Proceeds from subsidy
Payments of long-term loans receivableCollection of long-term loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of stock resulting from exercise of subscription rights to shares
Purchase of treasury stock
Cash dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

10Previous consolidated
fiscal year

Current consolidated
fiscal year

(Jan. 1, 2020 –Dec. 31, 2020)(Jan. 1, 2021 –Dec. 31, 2021)

569,785
179,929
24,40727,003(1,138)(11,867)
3,503(5,437)
15,550(828,660)
828,394(91,863)
2,753
3,260
19,305734,9278(15,565)(210,758)
508,611397,206
204,169
58,13560,765
5,310
14,170
6,933(5,252)
16,396(711,706)
711,705(24,860)(1,816)(33,709)(78,625)
618,82210(16,388)(309,609)
292,834(9,000)－(1,137,617)(60,907)(456,493)(242,000)
828,660(38,415)
44,967(41,400)
8,666(1,103,539)(18,000)(10,000)(870,653)(96,232)－－
711,706－
45,319(20,081)6,589(251,352)(100,000)
1,240,000(424,998)
967－(36,805)(1,594)
677,568
82,641
1,783,055
1,865,696

250,000
70,000(444,810)
4,747
(50)
(38,256)(3,083)(161,453)(119,971)
1,865,696
1,745,725

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021(5)
Notes on Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Notes on Consolidated Statements of Income)*1

Impairment loss
Previous consolidated fiscal year (Jan. 1, 2020 – Dec. 31, 2020)
During the current consolidated fiscal year, the Group allocated impairment loss to the assets groups as listed below.
PurposeType

Location

Impairment loss
(thousand yen)

Buildings and structure
Fukuoka City (Fukuoka
Property, plant and equipment - “Others”
24,407
Pref.) and others
Intangible assets - “Others”
The Group carries out grouping of its assets taking facilities such as childcare centers as basic units, on the groundthat they represent minimal units to generate cash flows. Of these facilities, with respect to the ones whose operating
profit/loss are worsening, book values have been reduced to recoverable values, and the portions of such reduction areallocated to extraordinary losses as impairment losses (Buildings and structure: 21,959 thousand yen; Property, plant andequipment - “Others”: 401 thousand yen; Intangible assets - “Others”: 2,046 thousand yen).
Meanwhile, recoverable values are determined according to their use values but at present they are evaluated as zero
since there is no prospect of generating cash flows in the future.
Childcare centers(8 centers)

Current consolidated fiscal year (Jan. 1, 2021 – Dec. 31, 2021)
During the current consolidated fiscal year, the Group allocated impairment loss to the assets groups as listed below.
PurposeType

Location

Impairment loss
(thousand yen)

Soka City (Saitama Pref.)Childcare centers Buildings and structure
58,135Intangible
assets“Others”
and others(2 centers)
The Group carries out grouping of its assets taking facilities such as childcare centers as basic units, on the groundthat they represent minimal units to generate cash flows. Of these facilities, with respect to the ones whose operating
profit/loss are worsening, book values have been reduced to recoverable values, and the portions of such reduction areallocated to extraordinary losses as impairment losses (Buildings and structure: 57,827 thousand yen; Property, plant andequipment - “Others”: 307 thousand yen and Intangible assets - “Others”: 307 thousand yen).
Meanwhile, recoverable values are determined according to their use values and future cash flow is calculated on thebasis of discount by 4.1%.
(Segment Information, etc.)【Segment information】
1. Overview of reportable segments
The Group's reportable segments are those being its constituent units for which separated financial information
is available and are subject to periodic review by the board of directors for determining allocation of management
resources and for evaluating business performance.
The Group has established several business departments specific to service targets which design their overarchingstrategies for the service they handle and develop their business activities respectively.
Accordingly, the Group consists of several business segments each of which are based on business departments,and sets two reportable segments as “Public Childcare Business” and “Contracted Childcare Business”.
（1）Public Childcare Business:
Operation of certified/accredited childcare centers, etc.
（2）Contracted Childcare Business:
Contracted childcare business inside companies/hospitals, etc.
2. How to calculate amounts of net sales, profit/loss, assets, liabilities and other items for each reportable segment
Accounting treatment methods for the business segments as reported herein are almost identical to those
employed for preparing consolidated financial statements.
Figures of segment profit of individual reportable segments are based on their operating profit.
Inter-segment revenue and transfer are based on actual market prices.

11

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021

3. Information on amounts of net sales, profit/loss, assets, liabilities and other items for each reportable segment
Previous consolidated fiscal year (Jan. 1, 2020 – Dec. 31, 2020)
Reportable segments

Other
Business

Total

Adjustment

Amountallocated on
consolidated
statements
of incomePublicChildcareBusiness

Contracted
ChildcareBusiness

Subtotal(Note1)

6,485,972

3,748,803

10,234,775

544,133

10,778,909－

10,778,909

－

－

－

26,65926,659(26,659)－

6,485,972

3,748,803

10,234,775

570,793

10,805,568(26,659)

10,778,909(Note 2)

(Note 3)

Net sales
Sales from externalcustomers
Inter-segment sales ortransfer
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of
goodwill
Impairment loss

807,666

218,814

1,026,480

25,467

1,051,948(439,628)

612,319

5,481,940

960,798

6,442,738

314,762

6,757,501

661,665

7,419,167

146,250690

146,941

10,779157,721

22,208

179,929

2,752

－

2,752

24,25127,003－27,003－－
20,79920,7993,608
24,407
24,407
Increase/decrease inproperty, plant and－1,002,621
1,002,621
247,863
1,250,484
53,986
1,304,470
equipment and inintangible assets
Notes
1. “Other Business” category is a segment not included in the reportable segments and includes services responsive to various
needs such as staffing services to kindergartens and childcare centers, baby-sitter services and house services; operation of
tenoSCHOOLs, non-certified childcare centers, certified childcare center (In-establishment Childcare Business) and nursing
homes (day-service).
2.
Specific adjustments are as follows.
Segment profit (loss)(thousand yen)Previous consolidated fiscal year
Corporate expenses (see Note)(439,628)Inter-segment transaction elimination

－

Total
Note:

(439,628)
Corporate expenses includes mainly those for operating the Company (holding company).

Segment assets(thousand yen)Previous consolidated fiscal year
Corporate assets

666,361Inter-segment transaction elimination(4,695)

Total

661,665

3. Segment profit (loss) has been aligned with the operating profit (loss) presented on the Consolidated Financial Statements.

12

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021

Current consolidated fiscal year (Jan. 1, 2021 – Dec. 31, 2021)
Reportable segments

Other
Business

Total

Adjustment

Amountallocated on
consolidated
statements
of incomePublicChildcareBusiness

Contracted
ChildcareBusiness

Subtotal

7,404,767

3,479,209

10,883,977

570,770

11,454,747－

11,454,747

－

－

－

13,743

13,743(13,743)－7,404,767

3,479,209

10,883,977

584,513

11,468,491(13,743)

11,454,747(Note1)(Note 2)

(Note 3)

Net sales
Sales from externalcustomers
Inter-segment sales ortransfer
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of
goodwill
Impairment loss

771,322

138,745

910,067(20,849)

889,217(421,341)

467,875

5,294,463

893,556

6,188,020

331,782

6,519,803

774,384

7,294,187

161,312

1,735

163,048

14,299177,347

26,822

204,169

33,028－33,02827,73760,765－60,765－－－
58,135
58,135
58,135
58,135
Increase/decrease inproperty, plant and
97,003－97,003
18,262
115,265
7,048
122,314equipment and inintangible assets
Notes 1. “Other Business” category is a segment not included in the reportable segments and includes services responsive to various
needs such as staffing services to kindergartens and childcare centers, baby-sitter services and house services; operation of
tenoSCHOOLs, non-certified childcare centers, certified childcare center (In-establishment Childcare Business), nursing
homes (day-service), and marriage counseling services.
2. Specific adjustments are as follows.
Segment profit (loss)(thousand yen)

Current consolidated fiscal year
Corporate expenses (see Note)(421,341)

Inter-segment transaction elimination
Total
Note:

－

(421,341)
Corporate expenses includes mainly those for operating the Company (holding company).

Segment assets(thousand yen)

Current consolidated fiscal year
Corporate assets

776,643

Inter-segment transaction elimination(2,258)

Total

774,384

3. Segment profit (loss) has been aligned with the operating profit (loss) presented on the Consolidated Financial Statements.

13

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021【Relevant information】
Previous consolidated fiscal year (Jan. 1, 2020 – Dec. 31, 2020)
1.

Information for each product and service
This is omitted since similar information is disclosed under “Segment information”.

2.

Information for each region(1) Net sales
Not applicable, since there is no net sales to customers outside Japan.
(2) Property, plant and equipment
Not applicable, since there is no property, plant and equipment outside Japan.

3.

Information for each major customerName

Net sales (thousand yen)

Relevant segment

Itabashi Ward, Tokyo

1,271,932

Public Childcare BusinessShinjuku Ward, Tokyo

1,094,815

Public Childcare BusinessCurrent consolidated fiscal year (Jan. 1, 2021 – Dec. 31, 2021)
1.

Information for each product and service
This is omitted since similar information is disclosed under “Segment information”.

2.

Information for each region(1) Net sales
Not applicable, since there is no net sales to customers outside Japan.
(2) Property, plant and equipment
Not applicable, since there is no property, plant and equipment outside Japan.

3.

Information for each major customerName

Net sales (thousand yen)

Itabashi Ward, Tokyo

1,261,106

14

Relevant segment
Public Childcare Businessteno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021【Information on impairment loss of non-current assets for each reportable segment】
Previous consolidated fiscal year (Jan. 1, 2020 – Dec. 31, 2020)(thousand yen)Contracted Childcare
Business
Impairment loss－

20,799Other Business

Total

3,608

24,407

Current consolidated fiscal year (Jan. 1, 2021 – Dec. 31, 2021)(thousand yen)

Public Childcare
Business
Impairment loss

Contracted Childcare
Business

Other Business－

58,135

Total－

58,135【Information on amortization of goodwill and undepreciated balance for each reportable segment】
Previous consolidated fiscal year (Jan. 1, 2020 – Dec. 31, 2020)(thousand yen)

Public Childcare
Business

Contracted Childcare
Business

Other Business

Total

Amortization during
the term

2,752－

24,25127,003

Balance at the end of
the term

492,671－

217,877

710,548

Note:

The amounts under “Public Childcare Business” are due to purchasing stock of Office Palette Co., Ltd. “Other Business” is not
a reportable segment and the amounts under it are those pertaining to staffing business to kindergartens and childcare centers andnursing business (day-service).

Current consolidated fiscal year (Jan. 1, 2021 – Dec. 31, 2021)(thousand yen)

Public Childcare
Business

Contracted Childcare
Business

Other Business

Total

Amortization during
the term

33,028―27,73760,765

Balance at the end of
the term

459,642―

190,140649,783

Note:

The amounts under “Public Childcare Business” are due to purchasing stock of Office Palette Co., Ltd. “Other Business” is not
a reportable segment and the amounts under it are those pertaining to staffing business to kindergartens and childcare centers andnursing business (day-service).

【Information on negative goodwill for each reportable segment】
Not applicable.

15

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021(Per share data)
Previous consolidated
fiscal year
(Jan. 1, 2020 – Dec. 31, 2020)

Current consolidated
fiscal year
(Jan. 1, 2021 – Dec. 31, 2021)

Net assets per share

456.84 yen

497.82 yen

Net profit per share

72.83 yen

50.71 yen

Diluted net profit per share

72.06 yen50.35 yenCalculation bases of net profit per share and diluted net profit per share are as follows.
Previous consolidated
fiscal year
(Jan. 1, 2020 – Dec. 31, 2020)

Current consolidated
fiscal year
(Jan. 1, 2021 – Dec. 31, 2021)

Net profit (loss) per share
Net profit attributable to owners of parent(thousand yen)Amount not attributable to common stockholders(thousand yen)

Net profit (loss) attributable to owners of parent
applicable to common shares

339,098

237,150－－

339,098

237,150

4,656,237

4,676,356－－

49,82433,291(49,824)(33,291)－－(thousand yen)

Average number of common shares outstanding
during the period(shares)

Diluted net profit per share
Adjusted quarterly net profit (loss) attributable toowners of parent(thousand yen)

Increased number of shares (common stock)(shares)(number of shares with subscription rights)(shares)

Summary of residual securities not included in
calculating diluted earnings per share, because of
having no dilution effect16

teno Holdings Company Limited (7037)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY12/2021(Significant Post-Balance Sheet Events)(Making another company a subsidiary by share acquisition, and borrowing a large amount of funds)
At the board meeting on January 20, 2022, the Company decided to acquire shares of Forte Co., Ltd. to make it as subsidiary, andon the same day, executed a share transfer agreement.
1.

Making another company a subsidiary by share acquisition(1) Summary of business combination①Overview of the acquired company
Name of the acquired company:
Forte Co., Ltd.
Content of business:
Nursing business; Operation of houses for elderly people②Main reason for business combination
The Group has one of its management philosophy as “We support women’s life stages.”, and has developed its
business for responding to various needs basically considering “what is necessary” for “women” in a changing society toraise their children, do housework and take care of elderlies while still being able to work. Also, in order for responding todiverse social needs surrounding women’s life stages, new business development in line with the Group’s business domains(child-raising, housework, nursing) is positioned as one of its important growth strategies.
Under such policies, in December 2019, the Group newly entered to nursing business (day-service) through transferof business. The business combination this time is carried out for the purpose of further expansion of nursing business(operation of houses for elderly people).
In addition this business combination is a part of the Group’s efforts to realize its long-term vision “tenoVISION2030”
and is believed to contribute to even greater mid- and long-term corporate values of the Group.
Forte Co., Ltd. operates, under its corporate philosophy as to contribute to “richness” of life for every people involved,
four nursing homes in Osaka Pref., has built up its efforts to respond to the needs of each and every user of the homes
which are indeed chosen by users. So the Group expected that by joining Forte Co., Ltd. it would be able to enhance its
service lineup of nursing business and this would contribute to growth of its nursing business, and decided to acquire thelatter’s shares to make it a subsidiary.
③Date of business combination
January 31, 2022
④Legal form of business combination
Share acquisition⑤Name of the company after combination
No change.
⑥Percentage of voting rights after acquisition
100％⑦Ground for determining acquiring company
The Company acquires the shares in exchange of cash.
(2) Cost of acquiring the acquired company, by type of consideration
Consideration for acquisition (cash):
566,000 thousand yen
Acquisition cost:
566,000 thousand yen(3) Details and amount of major expenses related to acquisition
Compensation/commission and others for advisory services, etc. (approximate):

39,000 thousand yen(4) Amount of goodwill that occurred, cause for the occurrence, amortization method and amortization period
Not yet established at present.
(5) Amount and principal breakdown of assets and labilities assumed on the date of business combination
Not yet established at present.

17