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 Six Months Ended June 30, 2021
(Based on Japanese GAAP)
August 5, 2021
Company name:teno.Holdings Company Limited
Stock exchange listing: Tokyo, Fukuoka
Stock code:
Representative:

7037
URL
President & CEO

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

Inquiries:
Director,GM of Administrative Headquarter
Scheduled date to file Quarterly Securities Report:

Haruhiko Yoshino
August 6, 2021

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

Holding of quarterly 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 six months ended June 30, 2021 (from January 1, 2021 to June 30, 2021)(1) Consolidated operating results (cumulative)
Net sales
Six months ended June 30, 2021
Six months ended June 30, 2020

Millions of yen
5,794
5,344

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
8.4
272 (21.8)
286 (16.3)
177 (16.7)
6.7
349
43.6
341
46.3
212
42.1

Earnings per share

Diluted earnings per share

Yen
37.93
45.69

Six months ended June 30, 2021
Six months ended June 30, 2020

Yen
37.63
45.22

(2) Consolidated financial position
Total assets
As of June 30, 2021
As of December 31, 2020

Net assets

Millions of yen
7,462
7,419

Equity ratio

Millions of yen
2,270
2,127%
30.4
28.7

2. Cash dividends
Annual dividends per share

Year ended December 31, 2020
Year ending December 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
8.20

Yen
8.20

–

8.40

8.40

Year ending December 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
12,00011.3
620
1.3
594–364
7.3
78.16

1

4. Notes(1) Changes in significant subsidiaries during the six months ended June 30, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:

No
No

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2021

4,679,700 shares As of December 31, 2020

4,657,500 shares

224 shares As of December 31, 2020

183 shares

Number of treasury shares at the end of the period
As of June 30, 2021

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2021

4,672,812 shares Six months ended June 30, 2020

2

4,655,405 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2020

As of June 30, 2021

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

1,895,696
955,655

2,138,067
753,389

356,148(1,028)317,524(1,081)

3,206,472

3,207,900

2,376,863(723,967)

2,427,725(794,608)

1,652,896

1,633,117

15,633(10,770)

15,633(12,184)

Leased assets, net

4,863

3,449

Construction in progress
Other

81,040341,161

78,386355,235(291,906)(301,422)

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

49,25453,813

1,788,055

1,768,766

710,548

680,166

Other

110,618

150,823

Total intangible assets

821,167

830,990

Long-term loans receivable
Long-term prepaid expenses

818,039355,249

798,031355,200

Deferred tax assets
Leasehold and guarantee deposits

58,681
371,501

141,638
359,630

Other
Allowance for doubtful accounts

581
(581)

1,004
(1,004)

Total investments and other assets

1,603,471

1,654,500

4,212,694

4,254,257

7,419,167

7,462,158

Total property, plant and equipment
Intangible assets
Goodwill

Investments and other assets

Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2020

As of June 30, 2021

Liabilities
Current liabilities
Accounts payable - trade

24,001

25,319

Short-term borrowings
Current portion of long-term borrowings

300,000
441,312500,000
448,288

Accounts payable - other
Income taxes payable

795,981
185,859

613,922
195,198

Provision for bonuses
Other

47,924
600,794

270,960
416,247

Total current liabilities

2,395,874

2,469,938

Non-current liabilities
Long-term borrowings

2,767,782

2,595,331

2,764

–

16,513

18,342

92,197

92,379Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

4

16,36915,4162,895,627

2,721,470

5,291,501

5,191,408

(Thousands of yen)
As of December 31, 2020

As of June 30, 2021

Net assets
Shareholders' equity
Share capital

451,141

453,184

Capital surplus
Retained earnings

528,641
1,148,074

530,684
1,287,123

(191)

(241)

2,127,665

2,270,749

2,127,665

2,270,749

7,419,167

7,462,158

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

5Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

June 30, 2020

June 30, 2021

Net sales
Cost of sales

5,344,175
4,329,605

5,794,707
4,821,191

Gross profit

1,014,569

973,515

Selling, general and administrative expenses

665,506

700,613

Operating profit

349,063

272,902

2,728
150

2,514
20,816

677

453

3,555

23,785

7,776
2,340

8,408
945

Non-operating income
Interest income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Payments for employment of persons with disabilities
Other

609

1,287

10,726

10,641

Ordinary profit

341,892

286,046

Extraordinary income
Subsidy income

399,029

478,810

399,029

478,810

398,930

476,868

Total non-operating expenses

Total extraordinary income
Extraordinary losses
Loss on tax purpose reduction entry of non-current assets
Other–

4,444

398,930

481,312

Profit before income taxes

341,991

283,543

Income taxes - current

206,573

192,025

Total extraordinary losses

Income taxes - deferred(77,275)(85,721)

Total income taxes

129,298

106,304

Profit212,693

177,239

Profit attributable to owners of parent

212,693

177,2396

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Six months ended

Six months ended

June 30, 2020

June 30, 2021

Profit212,693

177,239

Comprehensive income

212,693

177,239

212,693

177,239

Comprehensive income attributable toComprehensive income attributable to owners of parent

7

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

June 30, 2020

June 30, 2021
341,991

283,543

Depreciation
Amortization of goodwill

84,201
10,382

100,474
30,382

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(1,331)200,119476
223,036

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

1,749

1,828

Interest and dividend income
Interest expenses(2,728)7,776(2,514)
8,408

Subsidy income
Loss on tax purpose reduction entry of non-current assets(399,029)
398,930(478,810)
476,868

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

109,968
1,186

202,265
1,317

Increase (decrease) in accounts payable - other
Other, net(117,741)(117,953)(142,080)(129,075)

Subtotal

517,521576,122

Interest and dividends received
Interest paid4(8,333)

5(8,997)

Income taxes paid

(127,972)(181,663)

Net cash provided by (used in) operating activities

381,220

385,467

Payments into time deposits
Purchase of property, plant and equipment(1,000)(732,264)(9,000)(570,112)

Purchase of intangible assets
Payments for acquisition of businesses(32,010)(242,000)(69,115)–

Subsidies received
Long-term loan advances

399,029(19,952)

478,810–

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

22,267(17,118)

22,659(9,934)

Cash flows from investing activitiesProceeds from refund of leasehold and guarantee deposits

8,273

5,739

(614,774)(150,952)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings(20,800)
170,000

200,000
70,000

Repayments of long-term borrowings
Proceeds from issuance of shares resulting from exercise of(179,037)(235,474)

856

4,084–(50)(36,796)(728)(38,163)(1,540)Net cash provided by (used in) investing activities
Cash flows from financing activities

share acquisition rights
Purchase of treasury shares
Dividends paid
Repayments of lease obligations(66,506)(1,143)

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities(300,060)

233,371

Cash and cash equivalents at beginning of period

1,783,055

1,865,696

Cash and cash equivalents at end of period

1,482,994

2,099,067

8