Tokyo Seimitsu : Consolidated Financial Statements for the 1st Quarter of the Fiscal Year Ending March 31st, 2023 (FY2023/3), Japan GAAP

Stock Listing: Tokyo

(URL: https://www.accretech.jp/) Tel: [phone]

(Millions of yen, rounded down)

August 2nd, 2022

Consolidated Financial Statements for the 1st Quarter of the Fiscal Year Ending March 31st, 2023 (FY2023/3), Japan GAAP

Company Name Tokyo Seimitsu Co., Ltd.

ACCRETECH

Code number: 7729

Representative: Ryuichi Kimura, President and COO

Inquiries: Koichi Kawamura, Executive Vice President and CFO

Date of Quarterly Financial Statement Filing (planned) : August 5th, 2022

Dividend Payment Date (planned): -

Supplementary Document for Quarterly Financial Results : Yes

Holding of Financial Results Meeting: Yes (for Security Analysts, Investors)

1. Consolidated Results for 1st Quarter of FY2023/3 (April 1st - June 30th, 2022)

(1) Consolidated sales and earnings		(Percentage figures represent changes from the previous year)
		Net Sales		Operating Profit	Recurring Profit	Net Profit Attributable to
		(Millions of Yen)	(Millions of Yen)	(Millions of Yen)	Owners of the Parent
		(Millions of Yen)
	FY2023/3 Q1	27,919		- 3.2%	5,691	- 4.9%	6,496	8.1%	4,812	10.5%
	FY2022/3 Q1	28,841		36.9%	5,987	88.5%	6,011	79.7%	4,356	76.3%

Note: Comprehensive Income in FY2023/3 Q1: 5,839 million yen (23.2%), in FY2022/3 Q1: 4,738 million yen (186.3%)

	Net Profit per Share (Yen)	Net Profit per Share (diluted)
	(Yen)
FY2023/3 Q1	118.38	117.29
FY2022/3 Q1	106.09	105.04

(2) Consolidated financial position

	Total Assets (Millions of Yen)	Net Assets (Millions of Yen)	Equity Ratio
FY2023/3 Q1	191,927	132,863	68.4%
FY2022/3	190,287	131,081	68.1%

Note: Equity in FY2023/3 Q1: 131,297 million yen, FY2022/3: 129,556 million yen

2. Dividends

			Per Share Dividend in Fiscal Year
		Q1 End	Q2 End	Q3 End		Q4 End	Total
		Yen	Yen	Yen		Yen	Yen
	FY2022/3	-	84.00	-		101.00	185.00
	FY2023/3	-
	FY2023/3		109.00	-		109.00	218.00
	(Projected)
	Note: Changes due	to revision of dividend	projection: No

3. Forecast for FY2023/3 (April 1st, 2022 - March 31st, 2023)	(% figures represent changes from the previous year)
		Net Sales		Operating Profit	Recurring Profit	Net Profit attributable to	Net Profit
			Owners of the Parent
		(Millions of Yen)	(Millions of Yen)	(Millions of Yen)	per Share (yen)
		(Millions of Yen)
	Interim	74,500		21.7%	15,300	18.6%	15,300		18.0%	10,800	12.4%	265.00
	Full Year	150,000		14.8%	31,100	9.8%	31,100		6.6%	22,000	3.2%	541.00
Note: Changes due to revision of forecast: No

• Notes

1. Significant changes in subsidiaries during the term under review (ones that changes scope of consolidation): No
2. Accounting procedures specific to the preparation of quarterly consolidated financial statements: No
3. Changes in accounting principles, estimates and restatements
4. 1. Changes due to revision of accounting standards, etc.: No
   2. Changes other than 1): Yes
   3. Changes in accounting estimates: No
   4. Restatement: No
5. Number of shares outstanding (common shares)

1. Number of shares outstanding at the end of period (including treasury stock):
2. Number of treasury stock at the end of period:
3. Average Number of shares outstanding during the period:

FY2023/3 Q1	41,885,581	shares	FY2022/3	41,869,581	shares
FY2023/3 Q1	1,222,956	shares	FY2022/3	1,222,956	shares
FY2023/3 Q1	40,654,243	shares	FY2022/3 Q1	41,063,521	shares

• This consolidated financial statements report is not subject to audit procedures.
• Cautionary Statements with respect to Forward-looking Statements

All forecasts and other forward-looking statements in this document are based on information currently available to the Company and assumptions that the Company considers reasonable. Various uncertainties could cause actual results to significantly differ from these forecasts. Please refer to supplementary statement.

* Cautionary Statements with respect to the translation of the document

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Tokyo Seimitsu Co., Ltd. (7729)

Consolidated Financial Statements for 1st Quarter of FY2023/3

Contents of supplementary statement
1. Qualitative information on Business Performance for 1st quarter of FY2023/3 ........................................	2
(1)	Overview of Business Performance...........................................................................................................	2
(2)	Analysis of Financial Position ...................................................................................................................	3
(3)	Financial Estimates such as Consolidated Business Forecasts for current Fiscal Year .............................	3
2. Consolidated Financial Statements and Notes ..............................................................................................	4
(1)	Consolidated Balance Sheet.......................................................................................................................	4
(2)	Consolidated Statements of Income, and Comprehensive Income............................................................	6
(3)	Notes to Consolidated Financial Statements..............................................................................................	8
	(Note on Assumptions for Going Concern) ...............................................................................................	8
	(Significant Changes in Shareholder's Equity)..........................................................................................	8
	(Changes in Accounting Principles) ..........................................................................................................	8
	(Segment Information and Others) ............................................................................................................	9

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Tokyo Seimitsu Co., Ltd. (7729)

Consolidated Financial Statements for 1st Quarter of FY2023/3

1. Qualitative information on Business Performance for 1st quarter of FY2023/3

(1) Overview of Business Performance

During the 1st quarter of Fiscal Year ending March 2023 (FY2023/3), the global economy as a whole moved in the direction of resumption and recovery of economic activities as a result of progress in vaccination, mainly in Europe and the United States, and easing of social restrictions and international travel restrictions with regard to the impact of COVID-19 infection. On the other hand, supply shortages due to the worsening situation in Ukraine and logistics stagnation due to the lockdown in China have caused difficulties in obtaining supply, energy, and raw materials, as well as price hikes, which have spurred sharp inflation, exchange rate fluctuations, and higher interest rates, leading to concerns that the economy may deteriorate. There are concerns that this could lead to an economic downturn.

Under these circumstances, the business environment surrounding the Company was characterized by a decline in factory utilization among semiconductor and high-tech related companies, which are the customers of the Semiconductor Production Equipment (SPE) segment due to a drop in demand for consumer electronic products. On the other hand, the manufacturing industry in general, which is the customer base of the Metrology Equipment segment, showed a gradual resumption of capital investment.

As a result, Consolidated Orders in the 1st quarter of Fiscal Year 2023/3 (April 1st, 2022 - June 30th, 2022) were ¥48,788 million (up 17.9% YoY), Sales were ¥ 27,919 million (down 3.2% YoY), Operating Profit was ¥ 5,691 million (down 4.9% YoY), Recurring Profit was ¥ 6,496 million (up 8.1% YoY), and Net Profit Attributable to Owners of the Parent was ¥ 4,812 million (up 10.5% YoY).

Business results during the term in each segment were as follows.

[Semiconductor Production Equipment (SPE) Segment]

In the semiconductor production equipment segment, orders increased YoY despite a decrease in demand for consumer electronics such as mobile handsets, as demand for telecommunication-related logic devices such as 5G and servers, which has continued from the previous fiscal year, demand for power semiconductors such as SiC, and demand for increased wafer production remained strong.

On the other hand, production maintained high-capacity utilization despite the impact of parts procurement difficulties, but with regard to shipments, sales were affected by logistic problem and delay in installation due to lockdowns in China.

As a result, Orders for our SPE segment in the same period was ¥36,010 million (up 7.2% YoY), Sales was ¥ 21,135 million (down 7.0% YoY), and Operating Profit was ¥ 5,049 million (down 5.1% YoY).

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Tokyo Seimitsu Co., Ltd. (7729)

Consolidated Financial Statements for 1st Quarter of FY2023/3

[Metrology Equipment Segment]

In the Metrology Equipment Segment, demand from the automobile industry recovered moderately, and for machine parts and robot applications, as well as for machinery applications such as semiconductor production equipment, which is a new area of focus, also remained strong. As a result, both orders and sales increased YoY.

As a result, Orders for our Metrology Equipment segment in the same period was ¥ 12,778 million (up 64.3% YoY), Sales was ¥ 6,783 million (up 11.0% YoY) and Operating Profit was ¥ 641 million (down 3.9% YoY).

(2) Analysis of Financial Position

[Assets, Liabilities and Net Assets]

Total Assets as at June 30th, 2022 amounted to ¥191,927 million, an increase of ¥1,640 million from the end of FY2022/3. The major factors behind this change include an increase in Inventories including finished goods, Raw materials and supplies and Work in progress of ¥7,537 million, and a decrease in accounts receivable such as Notes and accounts, Contract assets, and Electronically recorded monetary claims of ¥ 3,694 million.

Total Liabilities decreased by ¥141 million to ¥59,064 million. This was mainly from a decrease in Income taxes payable of ¥2,748 million, a decrease in Long-term debt of ¥1,000 million, an increase in Contract liabilities of ¥2,696 million, and an increase in accounts payable such as Notes and accounts payable and electronically recorded obligations-operating of ¥1,765 million.

Net Assets increased by ¥1,782 million and totaled ¥ 132,863 million; the Equity Ratio came to 68.4%.

(3) Financial Estimates such as Consolidated Business Forecasts for current Fiscal Year

There are no revisions to the Consolidated Business Forecasts for Fiscal Year 2023/3 previously announced on May 10th , 2022.

Note: The forecasts contain forward-looking statements based on information available to the management at the time of this announcement that it has judged to be rational, including such factors as economic conditions in Japan and other countries or fluctuations in exchange rates, which may affect the Company's performance. These forecasts are subject to a number of risks and uncertainties, including market conditions, competition, and new product releases. Accordingly, actual results may differ materially from those projected in this earnings summary.

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