Tazmo : (Correction / Correction of Numerical Data)FY2023 Annual Results (ended December 31, 2023)

April 1st, 2024

Company Name TAZMO CO.,LTD.

Name of Yasuyuki Sato

Representative President and Representative Director

(Tokyo Stock Exchange Prime Code 6266)

Contact	Hisao Yoshikuni
President and Representative Director
Telephone	086-239-5000
Number

(Correction / Correction of Numerical Data)

Notice regarding correction of errors in Summary of Consolidated Financial Results for the Fiscal

Year Ended December 31, 2023

[Based on Japanese GAAP]

We hereby announce that there have been corrections to the "Summary of Consolidated Financial Results for the Year Ended December 31, 2023 (Based on Japanese GAAP)" released on February 13, 2024.

The corrections are indicated with an underline.

• 1. Reason of Correction

  After the release of "Summary of Consolidated Financial Results for the Fiscal Year Ended December 2023 [Based on Japanese GAAP] ", we found errors in the items listed in the Consolidated Statements of Cash Flows and the amounts for the current period (January 1, 2023 to December 31, 2023) thereof, and we corrected such errors as follows.

  The corrections have no impact on the consolidated balance sheets, consolidated statements of income, or consolidated statements of changes in net assets.

• 2. Contents of correction

  Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 [Based on Japanese GAAP] [Summary]

(Before correction)

Consolidated financial results for the year ended December 31, 1.2023 (January 1, 2023-December 31, 2023) (3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
Year ended December 31, 2023 Year ended December 31, 2022	Millions of yen (261) (1,513)	Millions of yen (1,392) (669)	Millions of yen 3,725 4,098	Millions of yen 6,771 5,024

(After correction)

(3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
Year ended December 31, 2023 Year ended December 31, 2022	Millions of yen (350) (1,513)	Millions of yen (1,258) (669)	Millions of yen 3,211 4,098	Millions of yen 6,771 5,024

Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 [Based on Japanese GAAP] Consolidated Financial Statements and significant notes thereto

Consolidated Statements of Cash Flows

(Before correction)

Consolidated statements of cash flows

(Thousands of yen)
Fiscal year ended December 31, 2022	Fiscal year ended December 31, 2023
Cash flows from operating activities Profit before income taxes Depreciation Gain on sale of non-current assets Loss (gain) on valuation of investment securities Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for product warranties Increase (decrease) in provision for retirement benefits for directors (and other officers) Increase (decrease) in retirement benefit liability Increase (decrease) in provision for share awards Increase (decrease) in provision for share awards for directors (and other officers) Interest and dividend income Interest expenses Foreign exchange losses (gains)	3,203,878 698,880 (64,999) - 4,576 76,807 3,288 3,952 8,341 49,253 30,876 (13,834) 31,693 (214,984)	3,549,630 757,467 (11,556) 335,030 221 10,384 153,025 4,002 1,925 71,536 (122,187) (51,637) 60,926 (128,878)
Share issuance costs Decrease (increase) in trade receivables Decrease (increase) in inventories Decrease (increase) in other current assets Increase (decrease) in trade payables	12,511 530,516 (6,415,724) (868,722) 1,542,114	543 (1,940,880) (4,023,645) (65,255) 36,906
Increase (Decrease) Contract Liabilities Increase (decrease) in accounts payable - other Increase (decrease) in accrued consumption taxes Increase (decrease) in other current liabilities	228,775 187,397 12 (12,478)	1,506,403 (25,657) 38,378 180,113
Other, net	(37,101)	229,012
Subtotal	(1,014,968)	565,809
Interest and dividends received Interest paid Income taxes paid	13,837 (33,112) (479,444)	51,912 (59,300) (819,561)
Net cash provided by (used in) operating activities	(1,513,688)	(261,138)
(Thousands of yen)
Fiscal year ended December 31, 2022	Fiscal year ended December 31, 2023
Cash flows from investing activities Payments into time deposits	-	(20,393)
Proceeds from withdrawal of time deposits	190,942	-
Purchase of investment securities Proceeds from sale of property, plant and equipment Purchase of property, plant and equipment	(122) 65,000	(124) 29,161 (1,355,453)
(809,117)
Purchase of intangible assets Other, net	(116,976) 322	(41,039) (4,968)
Net cash provided by (used in) investing activities	(669,951)	(1,392,816)
Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Redemption of bonds Proceeds from issuance of shares Payments for issuance of shares Repayments of lease liabilities	1,700,000 3,000,000 (1,601,549) (300,000) 1,530,155 - (8,749)	500,000 5,200,000 (2,110,644) - - (543) (4,336)
Dividends paid Dividends paid to non-controlling interests Purchase of treasury shares Proceeds from sale of treasury shares	(216,298) (5,390) (48) -	(311,005) (5,390) (186) 7,686
Net cash provided by (used in) financing activities	4,098,119	3,275,581
Effect of exchange rate change on cash and cash equivalents	128,629	125,113
Net increase (decrease) in cash and cash equivalents	2,043,109	1,746,739
Cash and cash equivalents at beginning of period	2,981,549	5,024,659
Cash and cash equivalents at end of period	5,024,659	6,771,398

(After correction)

Consolidated statements of cash flows

(Thousands of yen)
Fiscal year ended December 31, 2022	Fiscal year ended December 31, 2023
Cash flows from operating activities Profit before income taxes Depreciation Gain on sale of non-current assets Loss (gain) on valuation of investment securities Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for product warranties Increase (decrease) in provision for retirement benefits for directors (and other officers) Increase (decrease) in retirement benefit liability Increase (decrease) in provision for share awards Increase (decrease) in provision for share awards for directors (and other officers) Interest and dividend income Interest expenses Foreign exchange losses (gains)	3,203,878 698,880 (64,999) - 4,576 76,807 3,288 3,952 8,341 49,253 30,876 (13,834) 31,693 (214,984)	3,549,630 757,467 (11,556) 335,030 221 10,384 153,025 4,002 1,925 71,536 (122,187) (51,637) 60,926 (33,235)
Share issuance costs Decrease (increase) in trade receivables Decrease (increase) in inventories Decrease (increase) in other current assets Increase (decrease) in trade payables	12,511 530,516 (6,415,724) (868,722) 1,542,114	543 (1,940,880) (4,023,645) (65,255) 37,269
Increase (Decrease) Contract Liabilities Increase (decrease) in accounts payable - other Increase (decrease) in accrued consumption taxes Increase (decrease) in other current liabilities	228,775 187,397 12 (12,478)	1,506,403 (25,657) 38,378 143,367
Other, net	(37,101)	80,771
Subtotal	(1,014,968)	476,830
Interest and dividends received Interest paid Income taxes paid	13,837 (33,112) (479,444)	51,912 (59,300) (819,561)
Net cash provided by (used in) operating activities	(1,513,688)	(350,117)
(Thousands of yen)
Fiscal year ended December 31, 2022	Fiscal year ended December 31, 2023
Cash flows from investing activities Net decrease (increase) in time deposits	190,942	(20,393)
Purchase of investment securities Proceeds from sale of property, plant and equipment Purchase of property, plant and equipment	(122) 65,000	(124) 39,708 (1,233,065)
(809,117)
Purchase of intangible assets Other, net	(116,976) 322	(41,039) (3,389)
Net cash provided by (used in) investing activities	(669,951)	(1,258,303)
Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Redemption of bonds Proceeds from issuance of shares Payments for issuance of shares Repayments of lease liabilities	1,700,000 3,000,000 (1,601,549) (300,000) 1,530,155 - (8,749)	500,000 5,200,000 (2,110,644) - - (543) (67,946)
Dividends paid Dividends paid to non-controlling interests Purchase of treasury shares Proceeds from sale of treasury shares	(216,298) (5,390) (48) -	(311,005) (5,390) (186) 7,686
Net cash provided by (used in) financing activities	4,098,119	3,211,971
Effect of exchange rate change on cash and cash equivalents	128,629	143,188
Net increase (decrease) in cash and cash equivalents	2,043,109	1,746,739
Cash and cash equivalents at beginning of period	2,981,549	5,024,659
Cash and cash equivalents at end of period	5,024,659	6,771,398

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, 2023

(Based on Japanese GAAP)

Company name:	TAZMO CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	6266 URLhttps://www.tazmo.co.jp/ja/ir/index.html

YASUYUKI SATO
HISAO YOSHIKUNI
Scheduled date of ordinary general meeting of shareholders:	March 27, 2024
Scheduled date to file Securities Report:	March 28, 2024
Scheduled date to commence dividend payments:	March 28, 2024
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:	Yes (for analysts)

Representative:

Inquiries:Representative Director Manager for General Affairs Department ,General Maneger of Administration Division

TEL [phone]

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)

(1) Consolidated operating results

February 13, 2024

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Year ended December 31, 2023 Year ended December 31, 2022	Millions of yen 28,161 24,356	% 15.6 10.7	Millions of yen 3,654 2,806	% 30.2 34.1	Millions of yen 3,890 3,138	% 23.9 41.5	Millions of yen 2,356 2,263	% 4.1 29.4

Earnings per share	Diluted earnings per share	Profit attributable to owners of parent/equity	Ordinary profit/total assets	Operating profit/net sales
Year ended December 31, 2023 Year ended December 31, 2022	Yen 161.34 162.09	Yen - -	% 12.7 14.8	% 9.0 9.1	% 13.0 11.5

(2) Consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of December 31, 2023 As of December 31, 2022	Millions of yen 47,428 39,397	Millions of yen 20,095 17,549	% 41.7 43.9	Yen 1,350.22 1,188.12

(3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
Year ended December 31, 2023 Year ended December 31, 2022	Millions of yen (350) (1,513)	Millions of yen (1,258) (669)	Millions of yen 3,211 4,098	Millions of yen 6,771 5,024

2. Cash dividends

Annual dividends per share	Total cash dividends (Total)	Dividend payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended December 31, 2022 Year ended December 31, 2023	Yen - -	Yen 0.00 0.00	Yen - -	Yen 21.00 24.00	Yen 21.00 24.00	Millions of yen 311 356	% 13.0 14.9	% 1.8 1.8
Year ending December 31, 2024 (Forecast)	-	0.00	-	30.00	30.00	14.3

3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Earnings per share
Six months ending June 30, 2024 Full year	Millions of yen 16,865 36,000	% 61.6 27.8	Millions of yen 2,110 4,600	% 291.0 25.9	Millions of yen 2,090 4,500	% 195.7 15.7	Millions of yen 1,455 3,060	% 960.3 29.8	Yen 99.67 209.48

4. Notes

• (1) Changes in significant subsidiaries during the year ended December 31, 2023

  No

  (changes in specified subsidiaries resulting in the change in scope of consolidation):

• (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:

Changes in accounting estimates:

Restatement of prior period financial statements:

No No No No

(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, 2023

14,836,691 shares

As of December 31, 2022

14,813,300 shares

Number of treasury shares at the end of the period

As of December 31, 2023

196,237 shares

As of December 31, 2022

264,282 shares

Average number of shares during the period

Year ended December 31, 2023

14,607,537 shares

Year ended December 31, 2022

13,963,523 shares

Consolidated financial statements Consolidated balance sheets

(Thousands of yen)
As of December 31, 2022	As of December 31, 2023
Assets
Current assets
Cash and deposits	5,141,311	6,899,779
Notes and accounts receivable - trade	4,496,041	5,674,454
Electronically operatingrecordedmonetaryclaims -	1,869,262	2,712,839
Merchandise and finished goods	62,670	46,169
Work in process	13,032,935	17,012,488
Raw materials and supplies	4,888,049	5,115,312
Other	2,415,311	1,959,636
Total current assets	31,905,581	39,420,680
Non-current assets
Property, plant and equipment
Buildings and structures	7,998,159	8,361,060
Accumulated depreciation	(4,380,328)	(4,595,183)
Buildings and structures, net	3,617,831	3,765,877
Machinery, equipment and vehicles	3,449,937	3,622,892
Accumulated depreciation	(2,658,801)	(2,496,359)
Machinery, equipment and vehicles, net	791,135	1,126,533
Tools, furniture and fixtures	1,265,101	1,276,914
Accumulated depreciation	(961,705)	(1,074,104)
Tools, furniture and fixtures, net	303,396	202,810
Land	1,291,426	1,288,477
Leased assets	34,648	34,648
Accumulated depreciation	(25,281)	(31,393)
Leased assets, net	9,366	3,254
Construction in progress	228,147	315,546
Other	165,283	337,098
Accumulated depreciation	(138,802)	(31,860)
Other, net	26,481	305,238
Total property, plant and equipment	6,267,785	7,007,738
Intangible assets
Software	138,991	106,467
Other	59,184	51,307
Total intangible assets	198,175	157,774
Investments and other assets
Investment securities	401,948	66,921
Deferred tax assets	212,650	359,900
Other	415,450	420,639
Allowance for doubtful accounts	(4,576)	(4,797)
Total investments and other assets	1,025,472	842,665
Total non-current assets	7,491,434	8,008,177
Total assets	39,397,015	47,428,858
(Thousands of yen)
As of December 31, 2022	As of December 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	1,725,959	2,098,819
Electronically recorded obligations - operating	4,350,479	4,097,812
Short-term borrowings	5,279,474	6,436,717
Lease liabilities	8,666	4,153
Accounts payable - other	1,585,551	1,472,832
Income taxes payable	505,697	1,023,245
Contract liabilities	3,691,848	5,246,027
Provision for bonuses	318,104	328,488
Provision for product warranties	301,542	454,568
Provision for share awards	5,751	6,869
Liability related to paid transactions	577,364	-
Other	112,925	210,827
Total current liabilities	18,463,365	21,380,362
Non-current liabilities
Long-term borrowings	2,643,216	5,075,329
Lease liabilities	10,267	6,422
Deferred tax liabilities	25,618	17,038
Provision for share awards	251,593	284,299
Provision for retirement benefits for directors (and other officers) Provision for share awards for directors (and other officers)	21,177 122,187	25,179 -
Retirement benefit liability	66,417	68,343
Asset retirement obligations	171,580	187,778
Other	72,329	288,301
Total non-current liabilities	3,384,387	5,952,693
Total liabilities	21,847,753	27,333,055
Net assets
Shareholders' equity
Share capital	3,495,400	3,556,896
Capital surplus	3,430,855	3,415,301
Retained earnings	10,151,848	12,197,637
Treasury shares	(434,156)	(311,894)
Total shareholders' equity	16,643,947	18,857,940
Accumulated other comprehensive income
Valuation securitiesdifferenceonavailable-for-sale	150	30
Foreign currency translation adjustment	641,870	909,862
Total accumulated other comprehensive income	642,020	909,892
Non-controlling interests	263,294	327,969
Total net assets	17,549,262	20,095,803
Total liabilities and net assets	39,397,015	47,428,858