SB Technology : FY2022 Q3 Consolidated Financial Report (Japanese GAAP)（298K）

Disclaimer:

This financial report is solely a translation of the "Kessan Tanshin" (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

January 25, 2023

SB Technology Corp.

Consolidated Financial Report for the Third Quarter of Fiscal Year Ending March 31, 2023

(Nine Months Ended December 31, 2022)

[Japanese GAAP]

Company name: SB Technology Corp. (Tokyo Stock Exchange/Code No. 4726)

(URLhttps://www.softbanktech.co.jp/)
Representative:	Shinichi Ata, President & CEO
Contact:	Masaaki Okazaki, Member of the Board, Executive Vice President & CFO
		Phone: [phone]
Scheduled date of filing of Quarterly Report:	February 13, 2023
Scheduled date of payment of dividend:	－
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:	Yes (for institutional investors and analysts)

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine months Ended December 31, 2022 (April 1, 2022 - December 31, 2022)

(1) Consolidated Results of Operations				(Percentages represent year-on-year changes)
	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Nine months ended Dec. 31, 2022	48,231		1.3	3,541	△3.2	3,489	△3.7	2,108	△3.6
Nine months ended Dec. 31, 2021	47,626		－	3,660	－	3,622	－	2,187	－

Note: Comprehensive income (million yen)

Nine months ended Dec. 31, 2022:	2,301	(down 33.0%)
Nine months ended Dec. 31, 2021:	3,435	(－%)

	Net income per share	Diluted net income per share
	Yen	Yen
Nine months ended Dec. 31, 2022	105.32	104.36
Nine months ended Dec. 31, 2021	108.10	106.75

Note: Effective from the beginning of the fiscal year ended March 2022, the Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc., and accordingly, the consolidated results above for the fiscal year ended March 2022 is the amount after the adoption of the said accounting standard, etc.

(2) Consolidated Financial Position

	Total assets	Net assets	Shareholders' equity	Net assets per share
	ratio
		Million yen	Million yen	%	Yen
As of Dec. 31, 2022		41,116	23,647	51.3	1,061.63
As of Mar. 31, 2022		44,365	23,379	47.5	1,039.71
Reference: Shareholders' equity (million yen)	As of Dec.31, 2022: 21,090	As of Mar. 31, 2022: 21,062

2. Dividends

		Dividends per share
	1Q-end	2Q-end	3Q-end		Year-end	Total
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended Mar. 31, 2022	－	20.00	－		30.00	50.00
Fiscal year ending Mar.31, 2023	－	25.00	－
Fiscal year ending Mar. 31, 2023 (forecast)					25.00	50.00

Note: Revisions to the most recently announced dividend forecast: None

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Percentages represent year-on-year changes)

	Net sales		Operating income	Ordinary income	Profit attributable to	Net income per share
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	67,000		1.2	5,400	4.8	5,380	4.8	3,400	△6.4	169.84

Note: Revisions to the most recently announced consolidated forecast: Yes

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Application of special accounting for presenting quarterly consolidated financial statements: None
3. Changes in accounting policies and accounting estimates, and restatements
4. 1. Changes in accounting policies due to revisions in accounting standards, others: Yes
   2. Changes in accounting policies other than i. above: None
   3. Changes in accounting estimates: None
   4. Restatements: None
5. Number of outstanding shares (common stock)
6. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of Dec.31, 2022:

22,757,800shares

As of Mar. 31, 2022:

22,742,800shares

1. Number of treasury shares at the end of the period

As of Dec.31, 2022:	2,891,430shares	As of Mar. 31, 2022:	2,484,351shares
iii. Average number of shares outstanding during the period
Nine months ended Dec.31, 2022:	20,019,152shares	Nine months ended Dec. 31, 2021:	20,235,495shares

• This consolidated financial report is not subject to quarterly review procedures by a certified public accountant or audit company.
• Explanation for appropriate use of operating forecasts, and other special items

Cautionary statement with respect to forward-looking statements

Forecasts regarding future performance in this report are based on assumptions based upon valid and other reasonable information available to the Company at the time this report was created. This report is not promised by the Company regarding future performance. The actual performance may differ significantly from these forecasts for a variety of reasons.

How to view supplementary information at the financial results meeting

The Company plans to hold the financial results meeting (online) for institutional investors and analysts on Wednesday, January 25, 2023.Supplementary materials for financial results will be disclosed, using the Timely Disclosure network (TDnet), and will be available on the Company's website (https://www.softbanktech.co.jp/corp/ir/).

SB Technology Corp. (4726) Financial Report

For the nine-month period ended December 31, 2022

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

				(Millions of yen)
			As of March 31, 2022	As of December 31, 2022
	Assets
	Current assets
	Cash and deposits		8,762	8,903
	Notes and accounts receivable - trade, and contract assets	22,290	19,071
	Merchandise		66	126
	Other	3,207	3,522
	Allowance for doubtful accounts		△0	△0
	Total current assets		34,326	31,623
	Non-current assets
	Property, plant and equipment
	Buildings, net		739	703
	Tools, furniture and fixtures, net	916	845
	Other, net		5	420
	Total property, plant and equipment		1,661	1,969
	Intangible assets
	Goodwill	1,093	900
	Software		2,553	2,375
	Software in progress	461	727
	Customer relationships		262	207
	Other	116	93
	Total intangible assets		4,486	4,305
	Investments and other assets
	Investment securities		625	655
	Deferred tax assets	1,309	722
	Other		1,953	1,838
	Total investments and other assets		3,888	3,216
	Total non-current assets		10,036	9,491
	Deferred assets
	Share issuance costs		2	1
	Total deferred assets		2	1
	Total assets		44,365	41,116

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SB Technology Corp. (4726) Financial Report

For the nine-month period ended December 31, 2022

				(Millions of yen)
			As of March 31, 2022	As of December 31, 2022
	Liabilities
	Current liabilities
	Accounts payable - trade		7,528	5,616
	Current portion of long-term borrowings	394	318
	Lease liabilities		19	17
	Accounts payable - other	4,719	4,825
	Income taxes payable		1,379	279
	Contract liabilities	1,835	2,731
	Provision for bonuses		1,876	644
	Provision for bonuses for directors (and other officers)		－	71
	Provision for loss on order received		403	249
	Provision for defect repair	16	－
	Asset retirement obligations		24	－
	Other	699	1,097
	Total current liabilities		18,896	15,851
	Non-current liabilities
	Long-term borrowings		799	565
	Lease liabilities	96	83
	Deferred tax liabilities		26	18
	Contract liabilities	709	485
	Retirement benefit liability		53	58
	Asset retirement obligations	334	336
	Other		69	69
	Total non-current liabilities		2,088	1,617
	Total liabilities		20,985	17,469
	Net assets
	Shareholders' equity
	Share capital	1,254	1,270
	Capital surplus		1,567	1,615
	Retained earnings	19,789	20,793
	Treasury shares		△1,555	△2,600
	Total shareholders' equity		21,055	21,079
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities	2	5
	Foreign currency translation adjustment		4	6
	Total accumulated other comprehensive income		7	11
	Share acquisition rights		279	305
	Non-controlling interests	2,037	2,251
	Total net assets		23,379	23,647
	Total liabilities and net assets		44,365	41,116

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SB Technology Corp. (4726) Financial Report

For the nine-month period ended December 31, 2022

1. Quarterly Consolidated Statements of Income and Comprehensive Income (For the Nine-month Period)

			(Millions of yen)
		Nine months ended	Nine months ended
		December 31, 2021	December 31, 2022
Net sales		47,626	48,231
Cost of sales	37,683	37,661
Gross profit		9,943	10,569
Selling, general and administrative expenses		6,282	7,028
Operating profit		3,660	3,541

Non-operating income

Interest income

Dividend income

Share of profit of entities accounted for using equity method Subsidy income

Miscellaneous income

Total non-operating income

Non-operating expenses

Interest expenses

Donations

Foreign exchange losses

Commission expenses

Miscellaneous losses

Total non-operating expenses

Ordinary profit

Extraordinary income

	0		0
	0	2
	5		3
	10		－
	5		15
	21	22
	11	6
	10		10
	17	25
	－		20
	19	12
	58		74
	3,622	3,489

	Gain on sale of investment securities	5	－
	Compensation income		－	16
	Gain on reversal of share acquisition rights		－	17
	Subsidiaries directors' retirement allowance repayment gain		18	－
	Total extraordinary income		24	34
	Extraordinary losses
	Impairment losses	4	－
	Subsidiary company head office transfer cost		5	－
	Salaries and allowance for prior periods	17	－
	Total extraordinary losses		27	－
	Profit before income taxes		3,619	3,523
	Income taxes - current		844	647
	Income taxes - deferred	432	578
	Total income taxes		1,276	1,226
	Profit		2,342	2,297

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