TS TECH : Consolidated Financial Summary for the Cumulative Third Quarter of FY2022 (under IFRS)

Consolidated Financial Summary

Cumulative Third Quarter of FY2022

(April 1, 2021 - December 31, 2021)

This document is an English translation of the Japanese language version of the consolidated financial summary that TS TECH Co., Ltd. has produced as a reference purpose.

In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Summary for the Cumulative Third Quarter of FY2022

(under IFRS)

			January 28, 2022
Company name:	TS TECH CO., LTD.	Stock exchange listing: Tokyo Stock Exchange
Stock code:	7313	URL:	https://www.tstech.co.jp
Representative:	Masanari Yasuda, President

Contact: Takeshi Otsuka, General Manager, Corporate Communication Department	Tel. [phone]
Scheduled date for filing of quarterly securities report:	February 10, 2022
Scheduled date of commencement of dividend payment:	─
Preparation of supplementary explanatory material:	None
Quarterly results briefing:	None

(Amounts of less than one million yen are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 (April 1, 2021 - December 31, 2021)

(1) Consolidated Financial Results (Cumulative Total)							(%: year-on-year change)
				Operating	Income before					Income attributable to	Total
	Revenue			Net income	comprehensive
		income	tax			owners of parent
									income
	Million yen		%	Million yen		%	Million yen		%		Million yen	%	Million yen	%	Million yen	%
Third quarter of	258,036		-0.0	15,110		-27.5	17,391		-41.1		12,984	-45.0	8,119	-54.2	17,770	-24.9
FY2022
Third quarter of	258,085		-8.9	20,842		-19.1	29,523		6.8		23,617	14.3	17,734	13.1	23,666	25.3
FY2021
			Basic earnings	Diluted earnings
				per share	per share
						Yen				Yen
Third quarter of FY2022			60.47					─
Third quarter of FY2021			130.40					─

(Notes)

1. Calculation of each figure as of the consolidated cumulative third quarter of FY2021, previously based on provisional accounting treatment related to the application of the equity method, was finalized at the end of FY2021.
2. TS TECH implemented a two-for-one common stock split, effective April 1, 2021. "Basic earnings per share" was calculated on the assumption that the relevant stock split had been implemented at the beginning of FY2021.

1. Consolidated Financial Position

			Equity attributable to	Ratio of equity	Equity attributable to
	Total assets	Total equity	attributable to owners	owners of parent
	owners of parent
			of parent to total assets	per share
	Million yen	Million yen	Million yen	%	Yen
Third quarter of	393,028	307,245	282,370	71.8	2,102.56
FY2022
FY2021	390,478	301,450	277,017	70.9	2,063.47

(Note) TS TECH implemented a two-for-one common stock split, effective April 1, 2021. "Equity attributable to owners of parent per share" was calculated on the assumption that the relevant stock split had been implemented at the beginning of FY2021.

2. Cash Dividends

			Annual cash dividends per share
		End of 1Q	End of 2Q	End of 3Q	End of year	Annual
		Yen	Yen	Yen	Yen	Yen
FY2021	─	43.00	─	47.00	90.00
FY2022	─	26.00	─
FY2022 (forecast)				28.00	54.00
(Notes)
1.	Revision from the most recent announcement of cash dividends forecasts: No
2.	FY2021 end-of-year dividend breakdown: Standard dividend: 43.00 yen 60th anniversary commemorative dividend: 4.00 yen
3.	TS TECH implemented a two-for-one common stock split, effective April 1, 2021.

However, the actual amounts of dividends for FY2021 have not been retroactively adjusted and are shown on a pre-stock split basis.

3. Consolidated Forecasts for FY2022 (April 1, 2021 - March 31, 2022)

(%: year-on-year change)

	Revenue		Operating		Income before	Net income	Income attributable to	Basic earnings
		income		tax		owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
FY2022	360,000	4.0	27,000	1.0	29,200	-19.4	20,400	-27.4	13,900	-33.0	103.51

(Note) Revision from the most recent announcement of consolidated financial forecasts: No

*Notes

(1) Changes in important subsidiaries during the quarter		: Yes
(Changes in significant subsidiaries affecting the scope of consolidation during this period)
New subsidiaries	3 companies	Excluded subsidiaries	― companies

1. TSML INNOVATIONS, LLC
2. TS DE SAN PEDRO INDUSTRIES, S. DE R.L. DE C.V.
3. TS TECH Poland sp. z o.o.

(Note) Please refer to "2. Consolidated Quarterly Consolidated Financial Statements and Significant Notes Thereto (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements, Changes in Significant Subsidiaries Affecting the Scope of Consolidation During This Period" on page 13 for details.

(2) Changes in accounting policies and accounting estimates
1)	Changes in accounting policies required by IFRS			: None
2)	Changes other than 1)				: None
3)	Changes in accounting estimates				: None
(3) Number of shares issued (common stock)
1)	Number of shares issued at the end	3Q of FY2022	136,000,000	FY2021	136,000,000
	of the term including treasury stock	shares	shares
2)	Number of treasury stock at the end	3Q of FY2022	1,701,348	FY2021	1,751,508
	of the term	shares	shares
3) Average number of shares during	3Q of FY2022	134,278,533	3Q of FY2021	135,994,343
	the term (cumulative)	shares	shares

(Note) TS TECH implemented a two-for-one common stock split, effective April 1, 2021. The "number of shares issued (common stock)" was calculated on the assumption that the relevant stock split had been implemented at the beginning of FY2021.

*This quarterly financial statement is exempt from quarterly reviews.

*Explanation regarding the appropriate use of forecasts of financial results and other notes

The consolidated forecasts presented on the previous page are projections made by management at TS TECH Co., Ltd. (hereinafter the "Company") on the basis of information available at the time of preparation. For that reason, they involve risks and uncertainties. Accordingly, we request that readers of this document avoid making investment decisions based exclusively on these forecasts. Please bear in mind the possibility that actual results may differ materially from these forecasts due to various important factors. Readers are asked to proceed to "(3) Qualitative Information Concerning Consolidated Forecasts" on page 4 for assumptions and other information that form the premise for the operating results forecast on the previous page.

○Table of Contents
1. Qualitative Information Concerning Quarterly Results ....................................................................................	2
(1)	Qualitative Information Concerning Consolidated Financial Results..........................................................	2
(2)	Qualitative Information Concerning Consolidated Financial Positions .......................................................	4
(3)	Qualitative Information Concerning Consolidated Forecasts ....................................................................	4
2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto ................................	5
(1)	Condensed Quarterly Consolidated Statement of Financial Position ........................................................	5
(2)	Condensed Quarterly Consolidated Statements of Income and Comprehensive Income ............................	7
(3)	Condensed Quarterly Consolidated Statement of Changes in Equity ..........................................................	9
(4)	Condensed Quarterly Consolidated Statement of Cash Flows...................................................................	11
(5)	Notes Concerning Condensed Quarterly Consolidated Financial Statements ...........................................	13

- 1 -

- 2 -

Revenue remained unchanged year on year primarily due to the impact of lower production by customers due to disruptions in the automobile industry supply chain, offsetting the elimination of production stoppages stemming from the COVID-19pandemic that occurred in the first quarter of FY2021.

Operating income decreased primarily due to the impact of lower revenue and the elimination of COVID-19 pandemic-relatedsubsidies received in the previous period, offsetting cost-cuttingmeasures.

Revenue

Operating income

1. Qualitative Information Concerning Quarterly Results

1. Qualitative Information Concerning Consolidated Financial Results

Revenue for the cumulative third quarter of FY2022 (April 1, 2021 - December 31, 2021) reached 258,036 million yen on a consolidated basis, a decrease of 49 million yen (0.0%) from the same period in FY2021, mainly due to the impact of lower production by customers stemming from disruptions in the automobile industry supply chain. This offset the elimination of production stoppages caused by the COVID-19 pandemic

that occurred in the first quarter of FY2021 in the Americas and Asia and Europe segments.

Looking at profits, operating profit stood at 15,110 million yen, a decrease of 5,732 million yen (27.5%) year on year due to the impact of lower revenue, offsetting cost-cutting measures. Income attributable to owners of

parent amounted to 8,119 million yen, a decrease of 9,614 million yen (54.2%) year on year.
*USD/JPY	average	cumulative	3Q	exchange	rate… FY2021: ¥106.1	FY2022: ¥111.1
*CNY/JPY	average	cumulative	3Q	exchange	rate… FY2021: ¥15.4	FY2022: ¥17.3

Operating performance by segment is as follows.

(Japan)

				(Unit: Million yen)
	Cumulative third	Cumulative third	Difference	Change
	quarter of FY2021	quarter of FY2022
Revenue	56,161	62,588	6,426	11.4%
Operating income	5,165	5,154	-10	-0.2%

Main factors for year-on-year change

Revenue increased primarily due to an improved model mix and higher revenue at Honda Cars SAITAMAKITA, offsetting the impact of lower production by customers due to disruptions in the automobile industry supply chain.

Operating income remained unchanged year on year primarily due to lower royalty income, offsetting the impact of higher revenue.

• Honda Cars SAITAMAKITA became a consolidated subsidiary at the end of the first quarter of FY2021, and its revenue was incorporated into the consolidated results effective the second quarter, resulting in higher revenue due to the difference in the period of its incorporation in the consolidated results.

(Americas)
					(Unit: Million yen)
		Cumulative third	Cumulative third	Difference	Change
		quarter of FY2021	quarter of FY2022
	Revenue	105,742	104,314	-1,427	-1.4%
	Operating income/loss	3,149	(2,307)	-5,457	─%

Main factors for year-on-year change

Revenue

Operating income

(China)