August 8, 2022

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2023 (FY2022)(Three Months Ended June 30, 2022)[Japanese GAAP]
Company name:
ZUKEN Inc.
Listing: Tokyo Stock Exchange
Stock code:
6947
URL: https://www.zuken.co.jp
Representative:
Jinya Katsube, President and Representative Director
Contact:
Susumu Yoshida, General Manager of Finance Department
Tel: +81-45-942-1511
Scheduled date of filing of Quarterly Report:
August 10, 2022
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
None
Holding of quarterly financial results meeting:None(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter Ended June 30, 2022 (April 1, 2022 – June 30, 2022)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen%Three months ended
Jun. 30, 2022
7,703
9.8
Jun. 30, 2021
7,014
18.3
Note: Comprehensive income (Millions of yen)

Net income per share
Three months ended
Jun. 30, 2022
Jun. 30, 2021Profit attributable toowners of parent

Ordinary profit

Millions of yen

Millions of yen

%

856
50.3
994
49.5
679
569
396.9
665
286.1
429
Three months ended Jun. 30, 2022:
752 (down 40.2%)
Three months ended Jun. 30, 2021:
1,258 (up 54.1%)%

Millions of yen

%

58.1
369.3

Diluted net income pershareYen

Yen

29.21
18.47

-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

As of Jun. 30, 2022
58,548
As of Mar. 31, 2022
59,105
Reference: Shareholders’ equity (Millions of yen)
As of Jun. 30, 2022:

Shareholders’ equity ratio

Millions of yen%

38,86538,61665.7
64.7
38, 238

38,474As of Mar. 31, 2022:

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Yen

Year-end

Yen

Fiscal year ended Mar. 31, 2022
16.00
Fiscal year ending Mar. 31, 2023
Fiscal year ending Mar. 31, 2023 (forecast)
20.00
Note: Revisions to the most recently announced dividend forecast: None
The year-end dividend for the fiscal year ended March 31, 2022 includes a special dividend of 5 yen.

TotalYen

Yen

21.00

37.00

20.00

40.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)
Net sales
Millions of yen

Operating profit%

Millions of yen

Ordinary profit% Millions of yen(Percentages represent year-on-year changes)
Profit attributable toNet income perowners of parentshare
Millions of yen%

Yen

Full year
33,500
6.3
4,100
5.0
4,300
2.9
3,050
Note: Revisions to the most recently announced consolidated forecast: None
Only the full-year forecast is shown because Zuken manages performance on a fiscal year basis.

%1.6131.19

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scopeof consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements(a) Changes in accounting policies due to revisions in accounting standards, others:None(b) Changes in accounting policies other than (a) above:None(c) Changes in accounting-based estimates:

None(d) Restatements:

None(4) Number of outstanding shares (common stock)(a) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2022:

23,267,169 shares

As of Mar. 31, 2022:

23,267,169 shares

As of Mar. 31, 2022:

18, 471 shares(b) Number of treasury shares at the end of the period
As of Jun. 30, 2022:

18,471 shares(c) Average number of shares outstanding during the period
Three months ended Jun. 30, 2022:

23,248,698 shares

Three months ended Jun. 30, 2021:

23,249,085 shares* The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements and other special items
Forecasts of future performance in this report are based on assumption judged to be valid and information available to theCompany’s management at the time this report was prepared, but are not promises by the Company regarding future performance.
Actual results may differ substantially from the forecasts for a number of reasons. Please refer to “1. Qualitative Information on
Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements”
on page 2 for forecast assumptions and notes of caution for usage.

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2022

Contents of Attachments
1.

Qualitative Information on Quarterly Consolidated Financial Performance ........................................................ 2(1) Explanation of Results of Operations ................................................................................................................ 2(2) Explanation of Financial Position...................................................................................................................... 2(3) Explanation of Consolidated Forecast and Other Forward-looking Statements ................................................. 22.

Quarterly Consolidated Financial Statements and Notes ..................................................................................... 3(1) Quarterly Consolidated Balance Sheet .............................................................................................................. 3(2) Quarterly Consolidated Statements of Income and Comprehensive Income ...................................................... 5
Quarterly Consolidated Statement of Income ...................................................................................................... 5
Quarterly Consolidated Statement of Comprehensive Income ............................................................................ 6(3) Notes to Quarterly Consolidated Financial Statements ...................................................................................... 7
Going Concern Assumption................................................................................................................................. 7
Significant Changes in Shareholders’ Equity ....................................................................................................... 7
Segment Information ........................................................................................................................................... 73.

Supplementary Information ................................................................................................................................. 8(1) Sales and Orders ................................................................................................................................................ 81

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2022

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter, even though the economy continued to recover gradually as the restrictions on economic activities
due to COVID-19 have been eased, the outlook remains uncertain due to Russia’s prolonged invasion of Ukraine andother factors. Manufacturers in the electronics, automotive and industrial equipment sectors are the main customersof the Zuken Group, and many companies in these sectors continued to make substantial IT investments and overall
capital expenditures have become stronger.
Net sales in the first quarter increased to 7,703 million yen, 9.8% higher than one year earlier and a new record highfor the first quarter of a fiscal year just as in the previous fiscal year. Sales of the “CR-8000,” our core electronicsystem design solution series and the “E3.series,” a wire harness design system, were particularly strong as economic
activity in the U. S. and Europe began returning to normal.
Earnings were higher because of the increase in sales and a new record high. Ordinary profit was up 49.5% to 994
million yen and profit attributable to owners of the parent was up 58.1% to 679 million yen.
(2) Explanation of Financial Position
Total assets at the end of the first quarter of the current fiscal year decreased 557 million yen from the end of theprevious fiscal year to 58,548 million yen.
Current assets decreased 329 million yen. The main factors include a decrease of 1,211 million yen in notes andaccounts receivable-trade and an increase of 780 million yen in other current assets due to an increase in prepaid
expenses. Non-current assets decreased 228 million yen. The main factors include a decrease of 225 million yen in
investments and other assets primarily due to a decrease in investment securities.
Total liabilities decreased 807 million yen from the end of the previous fiscal year to 19,682 million yen. Current
liabilities decreased 850 million yen. There were decreases of 2,468 million yen in income taxes payable and 417
million yen in provision for bonuses, and an increase of 1,924 million yen in advances received. Non-current liabilities
increased 43 million yen mainly due to an increase in retirement benefit liability.
Net assets increased 249 million yen from the end of the previous fiscal year to 38,865 million yen, and theshareholders’ equity ratio was 65.7%.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
We currently maintain the consolidated forecast for the fiscal year ending March 31, 202 3 that was released on May
9, 2022. Many of the Zuken Group’s customers use a fiscal year that ends in March. As a result, a large percentageof the deliveries and final acceptances of our products occur in March each year. Consequently, sales and profits
tend to be disproportionately concentrated in the fourth quarter in each fiscal year.

2

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2022

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance SheetFY2021(As of Mar. 31, 2022)(Thousands of yen)First quarter of FY2022(As of Jun. 30, 2022)

AssetsCurrent assets
Cash and deposits

27,191,189

27,139,992

Notes and accounts receivable-trade

6,030,420

4,819,219

Securities

6,700,000

6,700,000

Merchandise and finished goods

683,085

710,485

Work in process

103,141

233,832

1,700

1,363

Other

4,579,181

5,359,520

Allowance for doubtful accounts(29,361)(34,437)

45,259,357

44,929,975

Buildings and structures, net

2,705,363

2,667,791

Land

3,015,103

3,015,103

Raw materials and supplies

Total current assets
Non-current assets
Property, plant and equipment

Other, net

485,936

510,061

6,206,402

6,192,956

Goodwill

184,948

180,961

Other743,981

759,322

Total intangible assets

928,929940,284

Total property, plant and equipment
Intangible assets

Investments and other assets

6,711,198

6,485,287

Total non-current assets

13,846,530

13,618,527

59,105,887

58,548,502

Total assets

3

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2022

FY2021(As of Mar. 31, 2022)(Thousands of yen)First quarter of FY2022(As of Jun. 30, 2022)

Liabilities
Current liabilities
Accounts payable-trade1,140,865

940,839

Income taxes payable

2,606,634

137,749

Advances received

9,361,007

11,285,840

Provision for bonuses

1,023,881

606,510

Other provisions

123,170

31,871Other

2,227,089

2,628,860

Total current liabilities

16,482,648

15,631,673

3,803,764

3,841,802

203,324

209,143

Non-current liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

4,007,088

4,050,946

20,489,736

19,682,619

10,117,065

10,117,065

Net assets
Shareholders’ equity
Share capital
Capital surplus

8,662,477

8,662,477

Retained earnings

17,852,882

18,043,755

Treasury shares
Total shareholders’ equity(19,279)(19,279)

36,613,144

36,804,017

1,463,414

1,367,832

153,932

299,908

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4

8,050

2,907

1,625,397

1,670,648

377,608

391,216

38,616,150

38,865,883

59,105,887

58,548,502

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2022(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)(Thousands of yen)First three months of FY2022(Apr. 1, 2022 – Jun. 30, 2022)

Net sales

7,014,839

7,703,896

Cost of sales

2,119,893

2,289,820

Gross profit

4,894,945

5,414,075

Selling, general and administrative expenses4,325,285

4,557,881

569,659

856,194

Operating profit
Non-operating income
Interest income

2,009

3,536

Dividend income
Share of profit of entities accounted for using equity
methodSubsidy income

68,467

21,278-70,885

22,81444,816

Other

11,502

9,511

Total non-operating income

104,793150,027

526

642

8,049

10,443

390

456

8,966

11,542

665,486

994,679

Gain on sale of non-current assets

-

1,918

Total extraordinary income

-

1,918

Loss on disposal of non-current assets-

543

Total extraordinary losses-543

Profit before income taxes

665,486

996,055

Income taxes-current

102,856

124,422

Income taxes-deferred

138,809

164,356

Total income taxes

241,665

288,779

Profit423,820707,276

Profit (loss) attributable to non-controlling interests(5,676)28,180

Profit attributable to owners of parent

429,496

679,095

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses

5ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2022

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)(Thousands of yen)First three months of FY2022(Apr. 1, 2022 – Jun. 30, 2022)

423,820707,276

Valuation difference on available-for-sale securities

653,622(95,767)

Foreign currency translation adjustment

119,317

145,976

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method

61,306(5,143)-185

Total other comprehensive income

834,247

45,251

1,258,067

752,527

1,263,743

724,347(5,676)28,180

ProfitOther comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2022(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment Information
I. First three months of FY2021 (Apr. 1, 2021 – Jun. 30, 2021)
1. Information about reportable segment net sales and profit or loss, and breakdown of revenue(Thousands of yen)
Reportable segment
JapanEurope

Solutions

2,778,709

638,147

Client services

2,082,543

Sales to third parties
Intersegment sales ortransfers

4,861,253
340,916

Total

5,202,170

Americas

Appropriated amount
Adjustmentin the quarterly
amountconsolidated(Note 1) statement of income(Note 2)

Asia

Total

276,329

161,401

3,854,588-

3,854,588

645,571242,241

189,893

3,160,250-

3,160,250

1,283,719

518,571351,295

7,014,839-

7,014,839

227,63914,768

27,788611,113(611,113)-

1,511,359

533,339

379,083

7,625,952(611,113)

7,014,839

Net sales

Segment profit (loss)
475,991(34,149)
24,772109,038
575,653(5,993)569,659
Notes: 1. Adjustment amount in segment profit (loss) includes amount of -5,993 thousand yen eliminated for intersegment
transactions.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

II. First three months of FY2022 (Apr. 1, 2022 – Jun. 30, 2022)
1. Information about reportable segment net sales and profit or loss, and breakdown of revenue(Thousands of yen)
Reportable segment
JapanEurope

Solutions

2,892,453

860,486

Client services

2,262,914

Sales to third parties
Intersegment sales ortransfers
Total

Americas

Appropriated amount
Adjustmentin the quarterly
amountconsolidated(Note 1) statement of income(Note 2)

Asia

Total

322,581

88,421

4,163,943-

4,163,943

737,122

312,395

227,520

3,539,953-

3,539,953

5,155,368

1,597,608

634,977

315,942

7,703,896-

7,703,896

297,886

255,539

19,26822,010594,704(594,704)-

5,453,254

1,853,148

654,245337,953

8,298,601(594,704)

7,703,896

Net sales

Segment profit
569,408
197,683857
78,695
846,6449,549
856,194
Notes: 1. Adjustment amount in segment profit includes amount of 9,549 thousand yen eliminated for intersegment transactions.
2. Segment profit is adjusted with operating profit in the quarterly consolidated statement of income.

7ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2022

3. Supplementary Information(1) Sales and Orders(a) Sales
SegmentJapanEuropeAmericasAsia
Total

First three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)
AmountComposition (%)
4,861,253
69.3
1,283,719
18.3
518,571
7.4
351,295
5.0
7,014,839
100.0(b) Orders received and order backlog
First three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)
Segment
Orders received
Order backlog
Japan
7,025,739
11,077,581
Europe1,001,867
1,760,553
Americas348,436
1,173,396
Asia
383,921587,091
Total
8,759,964
14,598,622
Note: Intersegment transactions have been eliminated.

8(Thousands of yen)First three months of FY2022(Apr. 1, 2022 – Jun. 30, 2022)
AmountComposition (%)
5,155,368
66.9
1,597,608
20.7
634,9778.2
315,9424.2
7,703,896
100.0(Thousands of yen)First three months of FY2022(Apr. 1, 2022 – Jun. 30, 2022)
Orders received
Order backlog
7,474,189
12,875,382
1,313,107
2,414,399
686,622
1,940,328
310,797
560,989
9,784,717
17,791,100

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2022(Reference) Results by product category are as follows.
(a) SalesFirst three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)
Product category
AmountComposition (%)
Printed Circuit Board design solutions
892,210
12.7
Circuit design solutions
1,478,095
21.1
IT solutions
1,484,282
21.2
Client services
3,160,250
45.0
Others00.0
Total
7,014,839
100.0(Thousands of yen)First three months of FY2022(Apr. 1, 2022 – Jun. 30, 2022)
AmountComposition (%)
1,000,960
13.0
1,662,201
21.6
1,500,781
19.5
3,539,953
45.9
00.0
7,703,896
100.0(b) Orders received and order backlog(Thousands of yen)First three months of FY2021
First three months of FY2022(Apr. 1, 2021 – Jun. 30, 2021)(Apr. 1, 2022 – Jun. 30, 2022)
Product category
Orders received
Order backlog
Orders received
Order backlog
Printed Circuit Board design solutions
1,104,825
1,053,839
1,280,603
1,265,933
Circuit design solutions
1,799,533
1,755,452
2,127,372
2,044,292
IT solutions
1,991,476
1,700,966
2,009,614
2,323,065
Client services
3,862,592
10,086,027
4,366,126
12,156,420
Others
1,536
2,336
1,0001,387
Total
8,759,964
14,598,622
9,784,717
17,791,100
Note: Name of major products by product category are as follows.
CR-8000 Design Force
CR-8000 Board Designer
Major products of Printed Circuit Board design
CR-8000 DFM Centersolutions
CADSTAReCADSTAR
CR-8000 Design Gateway
CR-8000 System Planner
E3.series
Major products of Circuit design solutions
E3.infinite
Cabling Designer
Harness Designer
DS-CR
DS-2 Expresso
DS-E3
Major products of IT solutions
DS-E3.infinite
GENESYS
PreSight visual BOM

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

9