Consolidated Financial Results for the Three Months Ended June 30, 2024
(Under Japanese GAAP)
August 9, 2024
Company name:Securities code:

DKK Co., Ltd.
6706
URL https://denkikogyo.co.jp/
President & Representative
Representative:(Title)Director
Managing Officer and Head of
Inquiries:(Title)Finance Department
Scheduled date to commence
dividend payments:

Listing: Tokyo Stock Exchange(Name) Tadatoshi Kondo(Name) Toshihisa Takayama Phone: +81-3-3216-1671

Preparation of supplementary material on financial results: No
Holding of financial results briefing: No(Yen amounts are rounded down to millions.)
1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Net income attributable to
Net sales
Operating income
Ordinary income
shareholders of parent
company
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended
5,956
6.9
(319)
(248)
(218)
June 30, 2024
Three months ended
5,573
4.4
(693)
(584)
(470)
June 30, 2023
Note: Comprehensive Three months ended
Three months ended(34) million yen (-%)
102 million yen (-%)
incomeJune 30, 2024
June 30, 2023
Net income per share

Three months ended
June 30, 2024
Three months ended
June 30, 2023

Diluted net income per share
yen

yen

(22.78)-(45.81)-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

Three months ended
53,93538,095June 30, 2024
Fiscal year ended
55,23738,723
March 31, 2024
(Reference) Net asset excluding Three months ended
Fiscal year ended
37,284 million yen
non-controlling interests
June 30, 2024
March 31, 2024
2. Dividends

Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
Fiscal year ending
March 31, 2025
(forecast)

Annual dividends
End of third
End of fiscal year
quarter
yen
yen

%
69.1
68.6
37,883 million yen

End of firstquarteryen

End of second
quarter
yen

-

30.00

-

30.00

60.00

30.00

-

30.00

60.00

Total
yen

-

Note: Revision to the most recently announced forecast for dividends: None

3. Forecast of consolidated operating results for the fiscal year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)(Percentages indicate year-on-year changes.)
Net sales

Second quarter(cumulative)
Full year

Millions of yen% Millions of yen

Net income
attributable to
Net income pershareholders of parent
share
company% Millions of yen%
yen

Operating income% Millions of yen

Ordinary income

13,800 10.1

(350)

-

(300)

-

(300)

-

(31.32)33,000 14.3

500

-

600

-

400

-

41.76

Note: Revision to the most recently announced forecast of operating results: Yes

*Notes:(1) Significant changes in the scope of consolidation during the period:(2) Application of accounting procedures particular to the preparation ofquarterly consolidated financial statements:

None
None

(3) Changes in accounting policies and accounting estimates, and restatement(a) Changes in accounting policies due to revision of
accounting standards, etc.:

Yes(b) Changes in accounting policies other than (a):No(c) Changes in accounting estimates:

No(d) Restatement:
No
Note: For details, refer to “2. Quarterly consolidated financial statements and major notes, (3) Notes to quarterly consolidated
financial statements (Notes on changes in accounting policies)” on page 8 of the attached document.
(4) Number of shares issued (common stock)(a) Shares issued (including treasury stock) at
the end of the period(b) Treasury stock at the end of the period(c) Average number of shares during theperiod (three months)

Three months ended
June 30, 2024
Three months ended
June 30, 2024
Three months ended
June 30, 2024

10,900,000 shares
1,367,817 shares
9,578,659 sharesFiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2024
Three months ended
June 30, 2023

10,900,000 shares
1,229,606 shares
10,271,781 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants
or an audit firm: Yes (mandatory)* Explanation of appropriate use of earnings forecast, and other special notes
The forecast and other future projections in this report are based on information currently available to the Company and certain
assumptions the Company believes to be reasonable, and are not intended to be a promise by the Company that they will beachieved. Actual results may differ significantly due to various factors. Refer to “1. Summary of operating results, etc., (3)Explanation of forecast of consolidated operating results and other future projections” on page 3 of the attachment for theassumptions used in earnings forecast and notes on the use of earnings forecast.

○ Table of Contents of Attachment
1. Summary of operating results, etc. .....................................................................................................................................

2(1) Summary of operating results for the fiscal quarter ......................................................................................................

2(2) Summary of financial position for the fiscal quarter .....................................................................................................

3(3) Explanation of forecast of consolidated operating results and other future projections ................................................

3

2. Quarterly consolidated financial statements and major notes .............................................................................................

4(1) Quarterly consolidated balance sheet ............................................................................................................................

4(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ............

6

Quarterly consolidated statement of income
Three months ended June 30 ..............................................................................................................................

6

Quarterly consolidated statement of comprehensive income
Three months ended June 30 ..............................................................................................................................

7(3) Notes to quarterly consolidated financial statements ....................................................................................................

8(Methods used to prepare quarterly consolidated financial statements) ......................................................................

8(Notes on going concern assumptions) .......................................................................................................................

8(Notes in case of significant changes in shareholders’ equity) ....................................................................................

8(Notes on changes in accounting policies) ..................................................................................................................

8(Notes on quarterly consolidated statement of cash flows) .........................................................................................

8(Notes on segment information, etc.) ..........................................................................................................................

9

3. Supplementary information ................................................................................................................................................

10(1) Production, orders and sales ..........................................................................................................................................

10

-1-

1. Summary of operating results, etc.
(1) Summary of operating results for the fiscal quarter
During the three months ended June 30, 2024, Japanese economy gradually recovered despite some weak trends. Capital
investment remains resilient against the backdrop of high-level corporate income, and production activities show signs ofrecovery due to alleviation of supply restrictions.
However, there are multiple risk factors such as uncertainties in overseas economy, continued spikes in material prices due tohigh commodity prices and a weaker yen, and weakness in consumption. As a result, the outlook remains unpredictable.
In the telecommunications-related industry, where our group is involved, capital investment plans of customers remain
restrained overall in the mobile communications-related field. In the fixed wireless communication-related field, demand foradministrative radio systems for disaster prevention is recovering due to enhancement of disaster prevention systems by local
governments. In the defense-related field, demand has remained solid, supported by increases in the defense budget. In the
broadcasting-related field, demand for equipment renewal by broadcasters remains stagnated due to continued postponement. In
the applied high-frequency devices industry, capital investment demand is on a recovery trend in the automotive-related field. In
all fields of business, we have worked to pass on some of the spikes in prices of energy and components, etc. as well as laborcosts, but they still have an impact as cost raising factors.
As a result, the Group posted orders received of 7,294 million yen, up 11.9% from a year earlier, and net sales of 5,956 million
yen, up 6.9% year on year, for the three months ended June 30, 2024.
As for profits, the Group posted operating loss of 319 million yen (compared to operating loss of 693 million yen for the yearearlier period) and ordinary loss of 248 million yen (compared to ordinary loss of 584 million yen for the year-earlier period),
affected by factors including raw material costs remaining elevated since the previous fiscal year and higher logistics costs. Net
loss attributable to shareholders of parent company came to 218 million yen (compared to net loss attributable to shareholdersof parent company of 470 million yen for the year-earlier period).
Results by segment are as follows. (Results of reportable segments, etc. include intersegment sales, etc.)(a) Telecommunication BusinessIn the mobile communications-related field, capital investment by mobile communication businesses remained limited overall,
but there was some quality improvement-related demand. In the fixed wireless communication-related field, demand foradministrative radio systems for disaster prevention to improve and digitalize disaster prevention system in local governments
was recovering in anticipation of maturity of emergency disaster prevention and reduction bonds. Defense-related demand also
remains on an increasing trend due to increase in defense budget. In the broadcasting-related field, demand for maintenance by
broadcasters is recovering, but demand for update of digital broadcasting equipment is still postponed. In the solutions-related
field, by combining image AI technology of Cybercore Co., Ltd., which we have acquired, and wireless communication
technology cultivated by the Company, the Company is building a business that helps solve a variety of social issues throughanalysis of people movement and traffic, as well as other solutions. In other fields, the Company was continuously securing
demand for outdoor construction steel frames and surface treatment for steel structures, and actively pioneering demand for ecofriendly products such as LED airplane warning lights and fuel cells.
Under such environment, we aggressively worked in this business field to capture demand and improve productivity. However,factors such as delayed delivery of parts and soaring raw material costs remained.
As a result, orders received increased 13.2% year on year to 5,388 million yen and net sales increased 4.2% year on year to3,495 million yen. Segment loss (operating loss) came to 168 million yen (compared to segment loss of 231 million yen in the
year-earlier period).
(b) Radio Frequency BusinessIn this business, in the mainstay field of high-frequency induction heating equipment, demand for capital investment in theautomotive industry was generally on a recovery track. In the field of contract heat treating service, demand associated withproduction of automakers is on a recovery trend, although some impact was felt from the fraudulent safety test scandal. In the
new radio frequency related field, we have been actively working to raise the level of sophistication of the superheated steam
technology, examine issues, accumulate data and expertise, and strengthen efforts to develop business in new areas, in a bid tocreate demand for treatment of food and waste using superheated steam equipment.
Under such business environment, this business also experiences rising costs due to soaring raw material costs and energy
costs, etc.; however, we have been striving to increase profit by improving productivity and reviewing the sales price.
As a result, orders received increased 8.3% year on year to 1,906 million yen and net sales increased 11.2% year on year to
2,441 million yen. Segment income (operating income) increased 102.1% year on year to 440 million yen.

-2-(2) Summary of financial position for the fiscal quarter
Total assets came to 53,935 million yen as of June 30, 2024, down 1,301 million yen from the end of the previous fiscal year.
Current assets decreased 1,267 million yen from the end of the previous fiscal year to 37,436 million yen. The main factors
were a decrease of 2,759 million yen in accounts receivable including notes receivable, despite an increase of 1,081 million yen
in inventories.
Non-current assets decreased 34 million yen from the end of the previous fiscal year to 16,499 million yen. The main factors
were decreases of 166 million yen in property, plant, and equipment and 52 million yen in intangible assets, despite increases of
101 million yen in investment securities and 51 million yen in saving-type insurance premiums included in Other Businesses ofinvestments and other assets.
Current liabilities decreased 600 million yen from the end of the previous fiscal year to 9,737 million yen. The main factors
were decreases of 148 million yen in trade payables including notes payable-trade, 248 million yen in allowance for employees’
bonuses, and 140 million yen in income taxes payable.
Fixed liabilities decreased 73 million yen from the end of the previous fiscal year to 6,102 million yen. The main factors weredecreases respectively of 20 million yen in long-term loans payable and 46 million yen in net defined benefit liability.
Net assets decreased 628 million yen from the end of the previous fiscal year to 38,095 million yen. The main factors were adecrease of 510 million yen in retained earnings and an increase of 289 million yen in treasury stock due to purchase of treasury
shares, which reduced net assets, despite increases of 131 million yen in valuation difference on available-for-sale securities and
115 million yen in foreign currency translation adjustment.
(3) Explanation of forecast of consolidated operating results and other future projections
As a result of reviewing earnings forecasts to reflect recent earnings trends, etc., we revised the forecast of the consolidated
operating results for the six months ending September 30, 2024 announced in “Consolidated Financial Results for the Fiscal Year
Ended March 31, 2024” dated May 10, 2024.
For details, please refer to “Revisions to the Forecast of the Consolidated Operating Results” separately released today.

-3-2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal first(March 31, 2024)
quarter (June 30, 2024)
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Electronically recorded monetary claims-operating
Accounts receivable from completed construction
contracts
Accounts receivable-trade
Contract assets
Securities
Costs on uncompleted construction contracts
Other inventories
Other Businesses
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment
Buildings and structures
Machinery, equipment, and vehicles
Tools, furniture, and fixtures
Land
Lease assets
Construction in progress
Accumulated depreciation
Total property, plant, and equipment
Intangible assets
Goodwill
Technology-related assets
Other Businesses
Total Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit assets
Long-term time deposits
Deferred tax assets
Other Businesses
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

19,066292
1,394

19,217
276
1,771

3,759

977

3,974
2,586
401
39
6,358
890
(59)
38,703

2,572
3,651
400
82
7,396
1,148
(58)
37,436

10,824
9,474
6,604
2,221
245
88
(24,269)
5,188

10,547
9,465
6,577
2,107
221
109
(24,007)
5,021

936
965
386
2,287

893
933
408
2,235

4,152
1
1,431
1,000
1,172
1,347
(47)
9,058
16,53455,237

4,254
2
1,431
1,000
1,204
1,398
(46)
9,243
16,49953,935

(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal first(March 31, 2024)
quarter (June 30, 2024)
Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts, and others
Short-term loans payable
Long-term loans payable to be repaid within a year
Lease obligations
Income taxes payable
Contract liabilities
Allowance for warranties on completed
construction contracts
Allowance for product warranties
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Allowances for losses on construction contracts
Allowances for losses on liquidation of subsidiaries
and affiliates
Allowances for environmental measures
Asset retirement obligations
Other Businesses
Total current liabilities
Fixed liabilities
Long-term loans payable
Lease obligations
Allowance for product warranties
Allowances for share-based remuneration for
directors and corporate auditors
Allowances for environmental measures
Net defined benefit liability
Asset retirement obligations
Long-term unearned revenue
Deferred tax liabilities
Other Businesses
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
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

-5-

3,352

3,204

4,400
127
42
211
213

4,400
132
39
70
234

87

83

42
530
11
27

70
281
27

14

2

149
16
1,112
10,338

111
16
1,061
9,737

1,250
64
5

1,230
56
5

89

96

50
2,520
40
1,781
339
32
6,175
16,514

50
2,474
40
1,780
337
30
6,102
15,8408,774
9,693
19,570(2,919)35,1198,774
9,693
19,060(3,208)34,320

1,216
870
677
2,763
840
38,72355,237

1,347
985
630
2,964
810
38,09553,935

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statement of income)(Three months ended June 30)(Millions of yen)Three months ended June 30,
Three months ended June 30,2023 (from April 1, 2023 to June 2024 (from April 1, 2024 to June30, 2023)
30, 2024)
Net sales
Sales of completed construction contracts
Net sales of goods
Sales in other businessTotal net sales
Cost of sales
Cost of sales of completed construction contracts
Cost of finished goods soldCost of sales in other businessTotal cost of sales
Gross profit
Gross profit on completed construction contracts
Gross profit on finished goods
Gross profit on other businessTotal gross profit
Selling, general, and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Other Businesses
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in investment partnerships
Other Businesses
Total non-operating expenses
Ordinary loss
Extraordinary losses
Loss on sale of investment securities
Total extraordinary losses
Net loss before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net loss
Net loss attributable to non-controlling interests
Net loss attributable to shareholders of parent company

-6-

1,895
3,647
29
5,573

2,144
3,782
28
5,956

1,835
3,036
11
4,883

1,942
2,885
9
4,837

60
611
18
690
1,383
(693)

202
897
19
1,118
1,438
(319)

5
81
67
153

8
61
40
111

9
10
25
45
(584)

15
10
15
40
(248)

(584)
35
(145)
(109)
(474)
(4)
(470)

10
10
(259)
41
(58)
(16)
(242)
(24)
(218)

(Quarterly consolidated statement of comprehensive income)(Three months ended June 30)(Millions of yen)Three months ended June 30,
Three months ended June 30,2023 (from April 1, 2023 to June 2024 (from April 1, 2024 to June30, 2023)
30, 2024)
Net loss
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to shareholders ofparentComprehensive income attributable to non-controllinginterests

-7-

(474)

(242)

478
(2)
128
(27)
576
102

131
123
(46)
208
(34)

92

(17)

9

(16)

(3) Notes to quarterly consolidated financial statements(Methods used to prepare quarterly consolidated financial statements)
Quarterly consolidated financial statements are prepared in compliance with Article 4, Paragraph 1 of Tokyo Stock Exchange,
Inc.’s Standards for Preparation of Quarterly Financial Statements and accounting standards for quarterly financial statements
generally accepted in Japan (But the omission of statement allowed under Article 4, Paragraph 2 of the Standards for
Preparation of Quarterly Financial Statements is applied.)(Notes on going concern assumptions)
There are no matters to be noted.
(Notes in case of significant changes in shareholders’ equity)
There are no matters to be noted.
(Notes on changes in accounting policies)(Application of “Accounting Standard for Current Income Taxes,” etc.)
The Company began applying the “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27 (revised2022), dated October 28, 2022; hereinafter, “Revised Accounting Standard of 2022”) at the beginning of the current
consolidated fiscal first quarter.
With regard to the revision to the accounting classification of corporate taxes, etc. (taxation on other comprehensive
income), we followed the transitional treatment allowed under the proviso to Paragraph 20-3 of the Revised AccountingStandard of 2022 and the transitional treatment allowed under the proviso to Paragraph 65-2 (2) of the “Guidance on
Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28 (revised 2022), dated October 28, 2022). Thischange to the accounting policies have no impact on the quarterly consolidated financial statements.
(Notes on quarterly consolidated statement of cash flows)
We did not prepare a quarterly consolidated statement of cash flow for the three months ended June 30, 2024. Depreciation(including amortization of intangible assets) and amortization of goodwill for the three months ended June 30 are shown
below.
Three months ended June 30, 2023
(from April 1, 2023 to June 30, 2023)
Depreciation
Depreciation of goodwill

257 million yen- million yen-8-Three months ended June 30, 2024
(from April 1, 2024 to June 30, 2024)
189 million yen
42 million yen

(Notes on segment information, etc.)[Segment information]
I Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Information on amounts of net sales and income/loss by reportable segment
Reportable segment

Other
Businesses(Note) 1(Millions of yen)Amountrecorded in
Adjustments
quarterly(Note) 2
consolidated
statement ofincome (Note) 3

Total

Telecommun
icationBusiness

Radio
Frequency
Business

3,348

2,195

5,543

29

5,573

-

5,573

5

-

5

37

42

(42)

-

3,353

2,195

5,549

66

5,616

(42)

5,573

(231)

217

(14)

32

18

(711)

(693)

Total

Net sales
Sales to external customers
Intersegment sales ortransfers
Total
Segment income (loss)(Notes) 1

The “Others” segment, which is not included in reportable segments, includes equipment leasing and electric power2

sales businesses.
The segment income (loss) adjustment of (711) million yen includes (14) million yen in elimination of intersegment
transactions and (696) million yen in corporate expenses that are not allocated to any reportable segment. Corporate
expenses are mainly general and administrative expenses that are not attributable to any reportable segments.

3

Adjustments are made to reconcile segment income (loss) with operating loss in the quarterly consolidated statementof income.
2. Information on impairment losses or goodwill, etc. on non-current assets by reportable segment
There are no matters to be noted.
II Three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
1. Information on amounts of net sales and income/loss by reportable segment
Reportable segment

Other
Businesses(Note) 1(Millions of yen)Amountrecorded in
Adjustments
quarterly(Note) 2
consolidated
statement ofincome (Note) 3

Total

Telecommun
icationBusiness

Radio
Frequency
Business

3,485

2,441

5,927

28

5,956

-

5,956

10

-

10

39

50

(50)

-

3,495

2,441

5,937

68

6,006

(50)

5,956

(168)

440

271

33

305

(625)

(319)

Total

Net sales
Sales to external customers
Intersegment sales ortransfers
Total
Segment income (loss)(Notes) 1

The “Others” segment, which is not included in reportable segments, includes equipment leasing and electric power2

sales businesses.
The segment income (loss) adjustment of (625) million yen includes (12) million yen in elimination of intersegment
transactions and (613) million yen in corporate expenses that are not allocated to any reportable segment. Corporate
expenses are mainly general and administrative expenses that are not attributable to any reportable segments.

3

Adjustments are made to reconcile segment income (loss) with operating loss in the quarterly consolidated statementof income.
2. Information on impairment losses or goodwill, etc. on non-current assets by reportable segment
There are no matters to be noted.

-9-3. Supplementary information(1) Production, orders and sales(a) Production results
Production results by reportable segment for the three months ended June 30, 2024 are shown below.
Reportable segment

Output (millions of yen)

Year-on-year change (%)

Telecommunication Business

2,023

9.7

Radio Frequency Business

2,558

11.6

4,581

10.8

Total

(Notes) 1 Amounts are based on sales prices, and intersegment transactions have been offset.
2

In the Telecommunication Business, production results related to construction projects are excluded from the above
production results due to difficulty in defining the results.

(b) Results of orders received
Results of orders received by reportable segment for the three months ended June 30, 2024 are shown below.
Reportable segment

Orders received(millions of yen)

Year-on-year change (%)

Order backlog(millions of yen)

Year-on-year change (%)

Telecommunication
Business

5,388

13.2

13,36734.4

Radio Frequency Business

1,906

8.3

3,352

8.9

Total

7,294

11.9

16,72028.4(c) Sales results
Sales results by reportable segment for the three months ended June 30, 2024 are shown below.
Reportable segment

Net sales (millions of yen)

Year-on-year change (%)

Telecommunication Business
Construction work

2,144

13.1

Equipment and materials
sales

1,340

(7.7)

3,485

4.1

Radio Frequency Business

2,441

11.2

Total of reportable segments

5,927

6.9

28

(2.1)

5,956

6.9

Subtotal of
Telecommunication Business

Others
Total(Notes) 1 Intersegment transactions have been offset.
2 The “Others” segment, which is not included in reportable segments, includes equipment leasing and electric power sales
businesses.

- 10 -