Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the First Quarter Ended June 30, 2022
[Japanese GAAP]
July 28, 2022
Company name: TERAOKA SEISAKUSHO CO.,LTD.
Stock exchange listing: Tokyo
Code number: 4987
URL: https://www.teraokatape.co.jp
Representative: Kenichi Tsuji
Representative Director & President
Contact: Nobuhisa Ishizaki
DirectorPhone: 03-3491-1141
Scheduled date of filing quarterly securities report: August 12, 2022
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 01, 2022 to June 30, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profitshareholders of theparent company
Million yen%
Million yen%
Million yen%
Million yen%First Quarter ended
June 30, 2022
4,555(10.4)
(376)
(122)
(43)
June 30, 2021
5,087
21.9
3369
17(Note) Comprehensive income:Three months ended June 30, 2022:¥
280 million [-%]
Three months ended June 30, 2021:¥(60) million [-%]
Basic earnings
per shareFirst Quarter ended
June 30, 2022
June 30, 2021

Diluted earnings pershare
YenYen(1.72)
0.70-(2) Consolidated Financial Position
Total assets
As ofJune 30, 2022March 31, 2022
(Reference) Equity:

Net assets

Million yen

36,87737,443As of June 30, 2022:
As of March 31, 2022:

Capital adequacy ratio

Million yen¥¥

29,24429,08929,244 million
29,089 million

%

79.3
77.7

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2022

-

5.00

-

5.00

10.00

Fiscal year ending March 31, 2023

5.00

-

5.00

10.00

Fiscal year ending March 31, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

Year-endTotal

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings per
Net sales
Operating profit
Ordinary profit to shareholders ofshare
the parent company
Millionyen%

Millionyen%

MillionyenFirst half
10,300(5.5)
50(59.3)
110Full year
23,200
3.0
520
285.3
520(Note) Revision to the financial results forecast announced most recently:
No%

Millionyen%

Yen(46.3)
40.4

280590

387.3
262.5

11.05
23.29

* Notes:(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):(Company name:
NewExclusion:(Company name:No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2022:
26,687,955 shares
March 31, 2022:
26,687,955 shares2) Total number of treasury shares at the end of the period:
June 30, 2022:
1,355,970 shares
March 31, 2022:
1,355,908 shares
3) Average number of shares during the period:
Three months ended June 30, 2022:
Three months ended June 30, 2021:

25,332,031 shares
25,332,512 shares))
YesTable of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ...........................................................................2(1) Explanation of Operating Results ..........................................................................................................2(2) Explanation of Financial Position ..........................................................................................................3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ......3
2. Quarterly Consolidated Financial Statements and Principal Notes ...........................................................4(1) Quarterly Consolidated Balance Sheets .................................................................................................4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ........................................6(3) Notes to Quarterly Consolidated Financial Statements .........................................................................8(Notes on going concern assumption) ................................................................................................8(Notes in case of significant changes in shareholders’ equity) ...........................................................8(Accounting policies adopted specially for the preparation of quarterly consolidated financialstatements) ........................................................................................................................................8(Changes in accounting policies) .......................................................................................................81

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the first quarter ended June 30, 2022 (from April 1, 2022 to June 30, 2022), the Japanese economy remained in an
extremely difficult state. A recovery in consumer spending was seen in the non-manufacturing sector, centering on the restaurant
industry and retail and leisure facilities, backed by the easing of behavioral restrictions after new cases of COVID-19 plateaued.
Despite this, in the environment around the manufacturing industry, there were logjams in the supply chain due to the effects ofChina’s zero-COVID policy. Further, resource prices reached even greater heights spurred on by Russia’s invasion of Ukraine. The
rapidly depreciating yen also resulted in soaring raw material and energy prices.
Within the context of this economic environment, the Group’s net sales, in part affected by slumping demand in the Chinese
market, a chief market for the Group, decreased year on year. The Group’s profit also languished due to the soaring raw materialprices.
As a result, net sales for the first quarter ended June 30, 2022 were 4,555 million yen (down 10.4% year on year). Operating loss
was 376 million yen (operating profit of 33 million yen in the same period of the previous fiscal year). Ordinary loss was 122
million yen (ordinary profit of 69 million yen in the same period of the previous fiscal year) despite foreign exchange gains frommonetary claims denominated in foreign currencies of 238 million yen recorded under non-operating income. Loss attributable toshareholders of the parent company was 43 million yen (profit attributable to shareholders of the parent company of 17 million yen
in the same period of the previous fiscal year) despite a gain on sale of non-current assets of 150 million yen recorded under
extraordinary income.
The Group engages in the manufacture and sale of adhesive tapes. Net sales by product category are as presented below.
(Packing tapes)
The decline in the number of customers caused by the stay-at-home demand reaching saturation led to home improvement store
demand remaining weak. As a result, the category’s net sales were 542 million yen (down 20.5% year on year).
(Electrical insulation and electronic equipment tapes)
Despite foreign exchange gains due to the weak yen being a positive factor for export products, production adjustments ofautomobiles, smartphones, and other products accompanying the Chinese lockdowns and global IC chip supply shortage resulted
in sluggish sales of electronic equipment tapes. As a result, the category’s net sales were 2,392 million yen (down 11.5% year onyear).
(Other industrial tapes)
Office mail order and construction and civil engineering demand for polyethylene cloth tapes failed to recover. As a result, thecategory’s net sales were 1,620 million yen (down 4.6% year on year).
(Reference) Sales performance
For the first quarter ended June
Adhesive tape30, 2021
businessComposition
by category
Net sales
ratio
[43]
Packing tapes
13.4%
682
Electrical insulation[1,237]and electronic
53.2%
2,705
equipment tapes
Other industrial
[68]
33.4%
tapes
1,699
[1,349]Total
100.0%
5,087(Note) Figures in brackets [ ] indicate overseas net sales.

(Million yen)
For the first quarter ended June30, 2022
Composition
Net sales
ratio
[4]
11.9%
542
[1,309]
2,392
[62]
1,620
[1,376]4,555

2

Year-on-year change
Net saleschangePercentagechange(140)-20.5%

52.5%

(312)

-11.5%

35.6%

(78)

-4.6%

100.0%(531)-10.4%

(2) Explanation of Financial Position
Total assets at the end of the first quarter under review were 36,877 million yen, down 1.5% from the end of the previous fiscalyear.
Current assets were 17,596 million yen, down 3.3% from the end of the previous fiscal year. This was primarily due to a decreasein trade receivables accompanying the decrease in net sales.
Non-current assets were 19,280 million yen, up 0.2% from the end of the previous fiscal year. This was primarily due to anincrease in construction in progress due to capital investment.
Total liabilities at the end of the first quarter under review were 7,633 million yen, down 8.6% from the end of the previous fiscalyear.
Current liabilities were 5,681 million yen, down 10.4% from the end of the previous fiscal year. This was primarily due to adecrease in liabilities related to facilities.
Non-current liabilities were 1,951 million yen, down 3.0% from the end of the previous fiscal year. This was primarily due to adecrease in deferred tax liabilities.
Total net assets at the end of the first quarter under review were 29,244 million yen, up 0.5% from the end of the previous fiscalyear. This was primarily due to an increase in foreign currency translation adjustment.
As a result of the above, the capital adequacy ratio was 79.3% (77.7% at the end of the previous fiscal year).

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
There is no change to the financial results forecast for the fiscal year ending March 31, 2023, which was announced on May 26,
2022. The financial results forecast is based on currently available information. Actual performance may differ from forecasted
results due to a variety of factors going forward.

32. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31,2022

As of June 30,2022

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable - trade

5,470
1,450

5,781
1,447

1,426

1,564

4,176

3,091

Merchandise and finished goods
Work in process

2,470
1,322

2,600
1,476

Raw materials and supplies
Other

1,165
728

1,335
308

Allowance for doubtful accounts
Total current assets

(9)

(9)

18,202

17,596

Non-current assets
Property, plant and equipment
Buildings and structures

14,735

15,124

Accumulated depreciation(9,132)(9,422)

Buildings and structures, net

5,603

5,701

Machinery, equipment and vehicles
Accumulated depreciation

23,008(18,646)

23,449(19,082)

4,361

4,367

4,098
269

4,118
269

Accumulated depreciation

(94)

(98)

Leased assets, net

175

170

Construction in progress

177

316

2,303
(1,865)2,332(1,922)438

409

14,85415,084397

390

Investments and other assets
Investment securities

2,870

2,707

Deferred tax assets
Retirement benefit asset

5979

5977

Other

133

115

Machinery, equipment and vehicles, net
Land
Leased assets

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

Total investments and other assets
Total non-current assets
Total assets

4

3,988

3,805

19,24019,28037,44336,877

(Million yen)
As of March 31,2022

As of June 30,2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

1,250
2,456

1,176
2,651

Short-term borrowings
Lease liabilities

60
19123
19

Income taxes payable
Accrued expenses

159
485

98664

Other

1,909

948

Total current liabilities

6,341

5,681

Non-current liabilities
Long-term borrowings

724

719

Lease liabilities
Deferred tax liabilities

171407

166
342

Provision for repairs
Retirement benefit liability

177

285

Asset retirement obligations
Long-term accounts payable - other508
56

508
56

Other

65

70

2,012

1,951

8,353

7,633

Share capital
Capital surplus

5,057
4,643

5,057
4,643

Retained earnings
Treasury shares

17,632(462)

17,462(462)

Total shareholders' equity

26,87026,700

1,098

979

622
497

1,091
472

2,219

2,543

29,08929,24437,44336,877

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equityAccumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets5(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the first quarter)(Million yen)
For the first quarter
ended June 30,2021

For the first quarter
ended June 30,2022

Net sales
Cost of sales

5,087
3,867

4,555
3,829

Gross profit

1,220726Selling, general and administrative expenses

1,186

1,103

Operating profit (loss)

33(376)

Non-operating income
Interest income

10

Dividend income
Foreign exchange gains

31-20238

Other

1629

Total non-operating income

49289

Office relocation expenses
Rental expenses on real estate

8-

11

Cost to deal with COVID
Other

13

19
4

Total non-operating expenses

1335

69(122)Gain on sale of non-current assets-

150

Total extraordinary income-150

Profit before income taxes

6928

Income taxes

5271

Profit (loss)

17(43)

Profit attributable to non-controlling interests
Profit (loss) attributable to shareholders of the parentcompany--17(43)Non-operating expenses

Ordinary profit (loss)
Extraordinary income

6Quarterly Consolidated Statements of Comprehensive Income (For the first quarter)(Million yen)
For the first quarter
ended June 30,2021
Profit (loss)
Other comprehensive income

For the first quarter
ended June 30,2022
17(43)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(56)
8(119)
468

Remeasurements of defined benefit plans, net of tax

(29)

(25)

Total other comprehensive income

(77)

324

Comprehensive income

(60)

280

Comprehensive income attributable toComprehensive income attributable to shareholders of
the parent company
Comprehensive income attributable to non-controllinginterests

(60)

280

--7

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.

(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements)
Tax expenses are calculated by reasonably estimating the effective tax rate expected to be imposed on profit before incometaxes (after tax effect accounting) for the consolidated fiscal year, in which the first quarter under review is included, andmultiplying this estimated effective tax rate by the quarterly profit before income taxes. However, in cases where the estimatedeffective tax rate cannot be used, the statutory effective tax rate is used. Income taxes – deferred is included under income taxes.
(Changes in accounting policies)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Guidance No. 31, June 17, 2021; hereinafter “Fair Value Measurement Guidance”) from the beginning of the first quarter underreview and will prospectively apply the new accounting policies stipulated by the Fair Value Measurement Guidance inaccordance with the transitional treatment provided in Paragraph 27-2 of the Fair Value Measurement Guidance. This does notaffect the quarterly consolidated financial statements.

8