Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
(Under Japanese GAAP）
May 12, 2022
DKK Co., Ltd.
Listing: Tokyo Stock Exchange
6706
URL:https://www.denkikogyo.co.jp/
President & Representative
Representative:(Title)(Name) Tadatoshi Kondo
Director
Managing Officer and Head of
Inquiries:(Title)(Name) Toshihisa Takayama Phone: +81-3-3216-1671
Finance Department
Scheduled date of annual
Scheduled date to commence
June 29, 2022
June 30, 2022
general meeting of shareholders:
dividend payments:
Scheduled date to file annual
June 30, 2022
securities report:
Preparation of supplementaryYesmaterial on financial results:
Holding of financial results briefing: Yes
Company name:Securities code:(Yen amounts are rounded down to millions)
Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(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%
Fiscal Year ended
33,968(18.1)
53(96.6)
448(75.1)
705(38.9)March 31, 2022
Fiscal Year ended
41,478(7.9)
1,583(39.1)
1,799(35.1)
1,155(35.4)March 31, 2021
Note: Comprehensive Fiscal Year ended
Fiscal Year ended
195 Millions of yen (-91.2%)
2,219 Millions of yen (58.4%)
incomeMarch 31, 2022
March 31, 2021
1.

yen

Diluted net income per
share
yen

59.51

-

1.5

0.8

0.2

96.14

-

2.5

2.9

3.8

Net income per share
Fiscal Year ended
March 31, 2022
Fiscal Year ended
March 31, 2021
(Reference) Equity in earnings
of affiliates

Fiscal Year ended
March 31, 2022

Consolidated financial position
Total assets
Millions of yen
Fiscal Year ended
56,336
March 31, 2022
Fiscal Year ended
62,463
March 31, 2021
(Reference) Net asset excluding Fiscal Year ended
non-controlling interests
March 31, 2022

- Millions of yen

Ordinary
Operating marginincome/total asset%%%

Return on equity

Fiscal Year ended
March 31, 2021

- Millions of yen(2)

Consolidated Cash Flows
Cash flows from businessactivities
Millions of yen
Fiscal Year ended
4,166
March 31, 2022
Fiscal Year ended
1,447
March 31, 2021

Net assets
Millions of yen%

Net assets per shareyen

46,60981.5

3,938.79

47,99175.2

3,908.32

45,903 Millions of yen

Equity ratio

Fiscal Year ended
March 31, 2021

46,972 Millions of yen(3)

Net cash flows from
Cash flows from financing Cash and cash equivalents
investing activities
activities
at end of period
Millions of yen
Millions of yen
Millions of yen
2,680(4,139)13,140(1,402)(633)

10,3002.

Dividends
Annual dividends
End of first End of second End of third End of fiscal
quarterquarterquarter
year
yen
yen
yen
yen

Fiscal Year ended March
31, 2021
Fiscal Year ended March
31, 2022
Fiscal Year ending March
31, 2023 (forecast)3.

Total dividends Payout ratio(Consolidated)(Total)Total

yen Millions of yen

Dividend on
net asset(consolidated)

%

%

-

0.00

-

45.00

45.00

543

46.8

1.2

-

0.00

-

60.00

60.00

704

100.8

1.5

-

0.00

-

60.00

60.00

93.2

Forecast of consolidated operating results for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)
Net income
attributable to
Net income per
Net sales
Operating income
Ordinary income
shareholders of parent
share
company
Millions
Millions
Millions
Millions
%
%
%
%
yen
of yenof yenof yenof yenSecond quarter
14,000
(5.9)
(500)
(450)
(300)
(25.74)(cumulative)
Full year
37,000
8.9
750
900
100.8
750
6.2
64.35

*Notes:(1)
Changes in significant subsidiaries during the fiscal year (changes in specific subsidiaries resulting inchanges in scope of consolidation):

No

(2)

Changes in accounting policies and accounting estimates, and restatement(a) Changes in accounting policies due to revisionYesof accounting standards, etc.:(b) Changes in accounting policies other than (a): No(c) Changes in accounting estimates:
No(d) Restatement:
No
Note: For details, refer to “3. Consolidated Financial Statements and Major Notes (5) Notes to Consolidated Financial
Statements (Changes in Accounting Policies)” on page 15 of the attached document.

(3)

Number of shares issued (common stock)(a) Shares issued (including treasury Fiscal Year ended
stock) at the end of the period
March 31, 2022(b) Treasury stock at the end of the
Fiscal Year ended
periodMarch 31, 2022(c) Average number of shares during Fiscal Year ended
the period
March 31, 2022

14,084,845shares
2,430,669shares
11,861,833sharesFiscal Year ended
March 31, 2021
Fiscal Year ended
March 31, 2021
Fiscal Year ended
March 31, 2021

14,084,845shares
2,066,196shares
12,018,103shares(Reference) Summary of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022)(1)
Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Millions of yen
Fiscal Year ended
March 31, 2022
Fiscal Year ended
March 31, 2021

Operating income
Ordinary income% Millions of yen% Millions of yen(2)%

27,310(20.4)

139(87.6)

759(41.8)

1,032

30.2

34,308

(4.5)

1,122

(31.9)

1,305(35.5)

792(38.0)

yen

Diluted net income per
share
yen

87.01

-

65.96

-

Net income per share
Fiscal Year ended
March 31, 2022
Fiscal Year ended
March 31, 2021

Net income% Millions of yen

Non-consolidated financial position
Total assets

Millions of yen
Fiscal Year ended
42,574
March 31, 2022
Fiscal Year ended
47,342
March 31, 2021
(Reference) Net asset excluding Fiscal Year ended
non-controlling interests
March 31, 2022

Net assets

Equity ratio

Net assets per share

Millions of yen%

yen

35,34383.0

3,032.73

36,05176.2

2,999.65

35,343Millions of yen

Fiscal Year ended
March 31, 2021

36,051Millions of yen*This Consolidated Financial Results report is not subject to audit by certified public accountants or an auditing firm.
*Explanation of appropriate use of earnings forecast, and other special notes
The forecast and other forward-looking statements in this report are based on information currently available to the Company andcertain assumptions the Company believes to be reasonable, and are not intended to be a promise by the Company that they will
be achieved. Actual results may differ significantly due to various factors. Refer to "1. Summary of operating results, (4) Businessoutlook" on page 4 of the attachment for the assumptions used in earnings forecast and notes on the use of earnings forecast.
The Company plans to hold a financial results meeting because we believe it is important to disclose information about theCompany to the financial markets in a timely and appropriate manner. However, the event will be live-streamed to avoid the
COVID-19 infections, as the health and safety of all participants is our first priority. The live-streamed financial resultspresentation will be available on the Company's website at a later date.

Table of Contents of Attachment
1.
(1)
(2)
(3)
(4)
(5)
(6)
2.
3.
(1)
(2)
(3)
(4)
(5)

4.
(1)

Summary of operating results, etc. ..................................................................................................................................
Summary of operating results for the fiscal year .........................................................................................................
Summary of financial position for the fiscal year ........................................................................................................
Summary of cash flows for the fiscal year ...................................................................................................................
Business outlook ..........................................................................................................................................................
Basic policy on profit distribution and dividends for the current and next fiscal years ...............................................
The Company’s medium- to long-term management strategy .....................................................................................
Our approach to the selection of accounting standards ....................................................................................................
Consolidated financial statements and major notes .........................................................................................................
Consolidated balance sheet ..........................................................................................................................................
Consolidated statement of income and consolidated statement of comprehensive income .........................................
Consolidated statement of income ...............................................................................................................................
Consolidated statement of comprehensive income ......................................................................................................
Consolidated statement of changes in equity ...............................................................................................................
Consolidated statement of cash flows ..........................................................................................................................
Notes to consolidated financial statements ..................................................................................................................
(Notes on going concern assumption) ...........................................................................................................................
(Changes in accounting policies) ..................................................................................................................................
(Change in method of presentation) ..............................................................................................................................
(Additional information) ...............................................................................................................................................
(Segment information, etc.) ..........................................................................................................................................
(Per-share information) .................................................................................................................................................
(Significant events after balance-sheet date).................................................................................................................
Other Businesses .............................................................................................................................................................
Production, orders and sales ........................................................................................................................................

-1-

2
2
3
3
3
4
4
5
6
6
8
8
10
11
13
15
15
15
15
16
17
21
21
22
22

1.

Summary of operating results, etc.
(1)

Summary of operating results for the fiscal year
During the current fiscal year, the Japanese economy showed signs of recovery from the impact of COVID-19, with corporate
earnings recovering due to a pickup in economic activities in Japan and abroad. Capital investment and employment environment
also showed signs of improvement along with a recovery in corporate earnings, with consumption starting to recover. On theother hand, economic outlook for Japan remained uncertain as the impact of high crude oil and other raw material prices on
corporate earnings surfaced with COVID-19 variants spreading.
In the telecommunications-related industry, where our group is involved, demand for antennas for 5G in the mobile
communications field appeared to be moving into full swing. Meanwhile, in the fixed wireless-related field, demand foradministrative radio systems for disaster preventions rapidly declined, and in the broadcasting field, demand for equipment
renewal and maintenance by broadcasters also declined. In the applied high-frequency devices industry, there were signs of acertain recovery in demand for capital investment in the automotive-related field, but the underlying tone of the recovery wasmoderate.
Under such circumstances, the Group actively engaged in activities to stimulate demand, worked to expand profit through efforts
to improve efficiency and reduce costs, and endeavored to improve business performance.
As a result, orders received decreased 3.9% year-on-year to 35.052 billion yen, and sales decreased 18.1% year-on-year to 33.968
billion yen.
As for profits, operating income decreased 96.6% year-on-year to 53 million yen, ordinary income decreased 75.1% year-onyear to 448 million yen, and net income attributable to the parent company's shareholders decreased 38.9% year-on-year to 705
million yen.
Note that the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others were applied
from the beginning of the current fiscal year in accordance with transitional treatments. For details, please refer to "3.
Consolidated financial statements and major notes (5) Notes to Consolidated Financial Statements (Changes in accounting
policies) (Application of Accounting Standard for Revenue Recognition, etc.)".
Results by segment are as follows. (Results of reportable segments, etc. include intersegment sales, etc.)(Telecommunication Business)
In this business segment, in the mobile communications-related field, capital investment demand by mobile communications
carriers for antennas for the frequency bands allocated to 5G appeared to be entering into full swing, but the demand is being
restrained by supply shortages of components due to the impact of COVID-19. In the fixed wireless-related field, demand foradministrative radio systems for disaster prevention rapidly declined as a result of the postponement of the reinforcement anddigitization of disaster prevention systems in each municipality, due to the effects of the COVID-19 and other factors. In the
broadcasting-related field, demand for equipment renewal and maintenance by broadcasters was shrunk or postponed. In othersegments, we are developing demand for LED aviation obstacle lights and thermal camera systems. Our business environmentis becoming more severe in all segments due to intensified price competitions. In this environment, we aggressively worked inthis business field to capture demand and improve productivity. However, cost increases, such as soaring raw material costs,
rising logistics costs, and costs to deal with shortages in parts and materials supply, had a significant impact on the Company's
performance in the period.
As a result, orders received decreased 9.2% year-on-year to 26.682 billion yen, and revenue decreased 23.7% year-on-year to25.926 billion yen. Segment income (operating income) was 2.01 billion yen, down 48.1% from the same period last year.
(Radio Frequency Business)
In the mainstay high-frequency induction heating equipment business, after a rapid demand decline due to COVID-19, there
were signs of recovery in capital investment demand in the automobile-related industries, mainly due to a recovery in demandin overseas markets. In addition, in the area of contract heat-treatment processing, although there were signs of recovery fromthe impact of COVID-19, the industry-wide impact of the global semiconductor shortage appeared to be protracted, with added
influence of production adjustments by automobile manufacturers. Under such circumstances, the radio frequency business has
worked to expand profits by developing new markets and new users, as well as improving productivity, while closely monitoring
the business environment. In this business field, as in the telecommunication business, there were factors that caused costs torise, such as soaring raw material costs.
As a result, orders increased 17.7% year-on-year to 8.37 billion yen and revenue increased 7.1% year-on-year to 7.959 billion
yen. Segment income (operating income) increased 21.5% year-on-year to 1.058 billion yen.

-2-

(2)

Summary of financial position for the fiscal year
Total assets at the end of the current consolidated fiscal year decreased 6.126 billion yen from a year earlier to 56.336 billion
yen.
Current assets decreased 4.432 billion yen from a year earlier to 40.989 billion yen. The main factors were an 8.068 billion yen
decrease in accounts receivable including notes receivable, despite a 1.157 billion yen increase in inventories and a 2.17 billion
yen increase in deposits paid included in “Others.”
Non-current assets decreased 1.694 billion yen from a year earlier to 15.347 billion yen. The main factor was a decrease of 1.559
billion yen in investment securities.
Current liabilities decreased 3.866 billion yen from a year earlier to 6.33 billion yen. The main factors were a 3.034 billion yen
decrease in trade payables including notes payable, a 391 million yen decrease in income taxes payable, and 238 million yen
decrease in accrued consumption taxes included in “Others".
Fixed liabilities decreased by 878 million yen from a year earlier to 3.397 billion yen. The main factors were a 154 million yen
decrease in long-term loans payable and a 355 million yen decrease in long-term accounts payable included in "Others."
Net assets decreased 1.381 billion yen from a year earlier to 46.609 billion yen. The main factors were a 197 million yen increase
in retained earnings, an 851 million yen decrease by purchase of treasury stock, a 397 million yen decrease in valuation difference
on available-for-sale securities, and a 312 million yen decrease in non-controlling interests.

(3)

Summary of cash flows for the fiscal year
Cash and cash equivalents (herein after "Funds") at the end of the current fiscal year increased by 2.84 billion yen from a year
earlier to 13.14 billion yen.
Cash flow situations and factors behind them in the current consolidated fiscal year are as follows.
(Cash flows from business activities)
Funds provided by business activities totaled 4.166 billion yen (1.447 billion yen a year earlier). This is due to increase factors,
mainly a decrease (increase) in notes and accounts receivable-trade of 8.076 billion yen, partially offset by decrease factors,
including a decrease (increase) in inventories of 1.375 billion yen and an increase (decrease) in notes and accounts payable-tradeof 3.059 billion yen.
(Cash flows from investing activities)
Funds provided by investing activities amounted to 2.68 billion yen (1.402 billion yen used a year earlier). This is mainly
attributable to increase factors such as a net increase in time deposits of 2.948 billion yen and proceeds from sales of investment
securities of 1.233 billion yen, which were more than decrease factors such as expenses for purchase of property, plant, andequipment and intangible assets of 1.408 billion yen.
(Cash flows from financing activities)
Funds used in financing activities totaled 4.139 billion yen (633 million yen used a year earlier). This is mainly due to decrease
factors such as purchase of treasury stock of 1.049 billion yen, a decrease (increase) in deposits for purchase of treasury stock of
2.17 billion yen, and cash dividends paid of 543 million yen.

(4)

Business outlook
As for the future outlook, although the domestic economy is showing some signs of recovery, the outlook remains unpredictable
due to the lingering shortage of semiconductors and the effects of the yen's depreciation and soaring raw material costs, in the
midst of the difficult situation caused by COVID-19 remains. As for the business environment surrounding our Group, in themobile communication-related field, we expect to see continued demand for 5G antennas, and we will aggressively capture
further demand including that for our newly developed wireless devices. In addition, the Company will work to capture
maintenance demand for mobile communication steel towers. In the fixed wireless-related field, demand for administrative radio
systems for disaster prevention is expected to be continuously postponed due to the impact of COVID-19, but we will continue
to focus on capturing the demand, which is expected to recover in the medium term. In the broadcasting-related segment, we
will work to capture demand for update and maintenance on broadcasting equipment from broadcasters. In addition, as for new
businesses, in addition to developing demand for LED aviation obstacle lights and thermal camera systems, we will aggressively
focus on exploring new markets by utilizing our wireless technology. In the radio frequency business, we aim to strengthen
coordination with overseas offices while closely monitoring the business environment, reinforce efforts to capture demand driven-3-

by capital expenditure led by Japanese automotive manufacturers, and actively promote efforts to stimulate new demand in areas
other than the automotive segment.
Under these circumstances, for the next consolidated fiscal year, we forecast revenue of 37 billion yen (up 8.9% year-on-year),
operating income of 750 million yen (53 million yen in the previous consolidated fiscal year), ordinary income of 900 million
yen (up 100.8% year-on-year), and net income attributable to shareholders of parent company of 750 million yen (up 6.2%
year-on-year).

(5)

Basic policy on profit distribution and dividends for the current and next fiscal years
With regard to profit distribution, we consider the efficiency of shareholders' equity and the return of profits to shareholders asimportant management matters, and our basic policy is to continue to pay dividends to our shareholders through solidmanagement of the Company. Regarding our dividend policy, as a measure to strengthen shareholder returns, the Company
changed its dividend policy in November 2021 to link the consolidated dividend payout ratio to the operating results of therelevant fiscal year, aiming for the ratio of 40%, and to set the minimum consolidated dividends on equity (DOE) ratio of 1.5%.
For the current fiscal year, the Company plans to pay a year-end dividend of 60 yen per share, as projected at the time of thechange in our dividend policy. In addition, in accordance with the "Capital Allocation" disclosed in February 2022, the Company
purchased its own shares as a measure to return more profits to shareholders and improve capital efficiency. With regard topurchased treasury stock, the Company has adopted a policy of actively retiring treasury stock in excess of the necessary amount,
while continuing to consider effective use of such stock to expand its business areas and acquire technologies. Treasury stock
purchased other than approximately 10% of the number of shares issued is to be retired.
Regarding dividends for the next fiscal year, the Company continues to decide the amount of profit returns based on its dividend
policy, considering the purchase of treasury stock under the Capital Allocation, and thus plans to pay an annual dividend of 60
yen per share.
The Company intends to effectively use retained earnings as a source of funds necessary for investments to revitalize existing
businesses and expand its business scope, as well as to enhance its corporate strength in the future.

(6)

The Company’s medium- to long-term management strategy
The Company has the basic principles of responding quickly to changes in the management environment, seeking to ensure
continuity of business and stable revenue, and ensuring increase of corporate value. As stated in the "Medium- to Long-termManagement Strategy" disclosed in March 2021, the goal of our medium- to long-term management strategy is to achieve theGroup’s ideal of "Pioneering the Future" through active involvement in social contribution, enhancement of corporate value, andachievement of growth. For this goal, we have set three growth strategies: "Creation of New Businesses," "Further Expansion of
Existing Businesses," and "Strengthening of Business Foundation.”In the next fiscal year, we will develop business activities to achieve our overall goal of "enhancing corporate value throughpromoting social sustainability-oriented management" by formulating five key management policies: "improving corporate
strength by realizing workplace climate reform," "maximizing profits through a strong group-wide commitment," "promoting
business reforms not bound by conventional methods," "thorough compliance and risk management," and "achieving social
contribution and growth through proactive pursuit of eco-friendly management.”
The Group will work collectively to strengthen its sales activities by thoroughly making the above policies understood andimplemented. In the telecommunication business, the Company will actively explore the capital investment demand in the mobile
communications industry for 5G communication systems, as well as work to capture the demand for administrative radio systems
for disaster prevention in the fixed wireless-related field and that for the renewal and maintenance of broadcasting equipment,
etc. in the broadcasting industry. In addition, to create new demand, we will continue to develop new business areas, including
the local 5G market that utilize telecommunications technologies. In the radio frequency business, in addition to capital
investment demand from the automotive-related industries, etc., the Company will expand into new non-automotive markets
where high-frequency technologies are used. To realize future growth, the entire Group will work together in both business fields
to precisely grasp market needs and expand business domains by creating new demand with an eye toward the new generation.
In promoting specific initiatives to achieve growth, we plan to disclose in May 2022 a medium-term management plan that takes
into account the promotion of sustainable society and capital policies, in addition to performance targets.

-4-

2.

Our approach to the selection of accounting standards
In consideration of periodic comparability and intercompany comparability of consolidated financial statements, the Group has
decided to adopt the Japanese GAAP. With regard to the possibility of adopting IFRS (International Financial Reporting Standards),
the Company will monitor future trends and take appropriate responses, taking into consideration various domestic and international
circumstances.

- 5 -

3.

Consolidated financial statements and major notes(1)

Consolidated balance sheet(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(March 31, 2021)(March 31, 2022)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts, and others
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
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit assets
Deferred tax assets
Other Businesses
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

18,995

18,886

20,836

12,768

339
4,511
742
(3)
45,421

117
5,890
3,328
(2)
40,98911,046
9,502
7,187
2,241
293
44
(23,181)
7,134
575

11,061
9,540
7,510
2,241
237
186
(23,869)
6,907
648

7,025
3
580
615
1,155
(47)
9,332
17,042
62,463

5,465
2
611
780
980
(49)
7,791
15,34756,336

(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
March 31, 2021
(March 31, 2022)
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
Advances received on uncompleted construction
contracts
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
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
Net defined benefit liability
Asset retirement obligations
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
Deferred gains or losses on hedges
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

-7-

6,950

3,916

280
6
62
613

80
180
53
221

51

203

37

26

77
612
36
34
1,432
10,196

173
621
6
47
800
6,330

433
95
-

279
67
29

102

52

2,905
49
689
4,275
14,472

2,840
49
78
3,397
9,727

8,774
9,731
31,830(5,088)45,248

8,774
9,723
32,028(5,940)44,586

1,270
11
40
401
1,724
1,018
47,991
62,463

873
37
87
318
1,317
705
46,60956,336(2)Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(from April 1, 2020
(from April 1, 2021
to March 31, 2021)
to March 31, 2022)
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 income
Non-operating income
Interest income
Interest on securities
Dividend income
Foreign exchange gains
Other Businesses
Total non-operating income
Non-operating expenses
Interest expenses
Commitment fee
Other Businesses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income-8-

19,775
21,597
105
41,47813,183
20,684100
33,96816,391
17,30949
33,75010,746
16,97647
27,770

3,383
4,288
55
7,727
6,143
1,583

2,436
3,708
52
6,198
6,145
53

4
7
164
148
325

3
6
172
147
155
484

28
59
21
109
1,799

26
49
13
89
448

165
165

589
589

(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(from April 1, 2020
(from April 1, 2021
to March 31, 2021)
to March 31, 2022)
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Net income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income(Net loss attributable to non-controlling interests)
Net income attributable to shareholders of parent company

318
318
1,647
630
(91)
539
1,108
(47)
1,155

-9-

170
170
867
242
21
264
602
(103)
705

(Consolidated statement of comprehensive income)(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(from April 1, 2020
(from April 1, 2021
to March 31, 2021)
to March 31, 2022)
Net income
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- 10 -

1,108

602

883
39
(188)
377
1,111
2,219

(397)
25
47
(83)
(406)
195

2,320

298

(100)

(102)

(3)

Consolidated statement of changes in equity
Previous consolidated fiscal year (from April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity
CapitalBalance at beginning of current
term

Capital surplus
8,774

Retained earnings

9,731

Total shareholders’equityTreasury stock

31,218(5,093)

44,631

Cumulative effect of change inaccounting policy-

Balance at beginning of current
year after change in accounting
policy is applied

8,774

9,731

31,218(5,093)

44,631

Changes of items during term
Dividends of surplus

(543)

(543)

Net income attributable toshareholders of parent company

1,155

1,155

Purchase of treasury stock
Disposal of treasury stock

0

(2)

(2)

7

7

Net changes of items other thanshareholders’ equity
Total changes of items during
term

-

0

611

4

616

Balance at end of current term

8,774

9,731

31,830(5,088)45,248

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
term

386

Deferred
gains orlosses onhedges

Total
Remeasurements accumulatedof defined benefit otherplans
comprehensive
incomeForeigncurrencytranslation
adjustment

(27)

175

24

559

Noncontrollinginterests

1,119

Cumulative effect of change inaccounting policy
Balance at beginning of current
year after change in accounting
policy is applied

Total net assets

46,309
-

386

(27)

175

24

559

1,119

46,309Changes of items during term
Dividends of surplus(543)

Net income attributable toshareholders of parent company

1,155

Purchase of treasury stock(2)

Disposal of treasury stock

7

Net changes of items other thanshareholders’ equity

883

39

(135)

377

1,165

(100)

1,064

Total changes of items during
term

883

39

(135)

377

1,165

(100)

1,681

Balance at end of current term

1,270

11

40

401

1,724

1,018

47,991- 11 -

Current consolidated fiscal year (from April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
CapitalBalance at beginning of current
term

Capital surplus
8,774

Retained earnings

9,731

31,830

Cumulative effect of change inaccounting policy

Total shareholders’equityTreasury stock(5,088)45,24835

Balance at beginning of current
year after change in accounting
policy is applied

8,774

9,731

35

31,865(5,088)45,283

Changes of items during term
Dividends of surplus

(543)

(543)

Net income attributable toshareholders of parent company

705

705

Purchase of treasury stock
Disposal of treasury stock(8)(1,049)(1,049)197

189

Net changes of items other thanshareholders’ equity
Total changes of items during
term

-

(8)

162

(851)

(697)

Balance at end of current term

8,774

9,723

32,028(5,940)44,586

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
term

1,270

Deferred
gains orlosses onhedges

Total
Remeasurements accumulatedof defined benefit otherplans
comprehensive
incomeForeigncurrencytranslation
adjustment
11

40

401

1,724

Noncontrollinginterests

1,018

Cumulative effect of change inaccounting policy
Balance at beginning of current
year after change in accounting
policy is applied

Total net assets

47,991
35

1,270

11

40

401

1,724

1,018

48,026

Changes of items during term
Dividends of surplus(543)

Net income attributable toshareholders of parent company

705

Purchase of treasury stock(1,049)

Disposal of treasury stock189

Net changes of items other thanshareholders’ equity

(397)

25

47

(83)

(407)

(312)

(719)

Total changes of items during
term

(397)

25

47

(83)

(407)

(312)

(1,417)

Balance at end of current term

873

37

87

318

1,317

705

46,609- 12 -

(4)Consolidated statement of cash flows(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(from April 1, 2020
(from April 1, 2021
to March 31, 2021)
to March 31, 2022)

Cash flows from business activities
Net income before income taxes
Depreciation
Increase (decrease) in allowance for employees’
bonuses
Increase (decrease) in allowances for directors’
bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in allowances for retirement
bonuses for directors and corporate auditors
Increase (decrease) in allowances for share-based
remuneration to officers for directors and corporate
auditors
Increase (decrease) in allowances for doubtful
accounts
Increase (decrease) in allowances for loss on
construction contracts
Increase (decrease) in allowances for productwarranties
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in costs on uncompleted
construction contracts
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in advances received on
uncompleted construction contracts
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
Other Businesses
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Cash flows from business activities- 13 -

1,647
1,322

867
1,381

145

8

26

(30)

52

(240)

(78)

-

19

24

(15)

0

(10)

12

(134)

96

(177)
28
(7)
(165)
318

(182)
26
(92)
(589)
170

(1,378)

8,076

83

221

578
(263)

(1,375)251(228)(3,059)

(342)

(16)

(36)
219
32
1,635
180
(28)
(339)
1,447

(331)
(612)
54
4,661
180
(36)
(639)
4,166

(Millions of yen)Previous consolidated fiscal year Current consolidated fiscal year
(from April 1, 2020 to March 31, (from April 1, 2021 to March 31,
2021)
2022)
Net cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Expenses for purchase of property, plant, andequipment and intangible assets
Proceeds from sale of property, plant, and equipment
and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Payments of loans receivableCollection of loans receivable
Other Businesses
Net cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Proceeds from sales of treasury stock
Purchase of treasury stock
Decrease (increase) in deposits for purchase oftreasury stock
Cash dividends paid
Dividends paid to non-controlling interests
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of term
Cash and cash equivalents at end of term

- 14 -(33,211)32,211(27,849)
30,797(1,187)(1,408)

25

12

(166)
507
422
(3)
1
(1)
(1,402)

(659)
1,233
550
(0)
1
4
2,680

(114)
93
(71)
7
(2)

(200)
(13)
(67)
114
(1,049)-(2,170)

(545)
(633)

(543)
(209)
(4,139)

(43)

132

(630)
10,931
10,3002,840
10,30013,140(5)Notes to consolidated financial statements(Notes on going concern assumption)
There are no matters to be noted.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company started to apply the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020), etc. from the beginning of the current fiscal year, and recognized revenue in an amount expected to be received in
exchange for the promised goods or services when control over the said goods or services is transferred to the customer.
As a result, the method of recognizing revenue of some of the Group's construction contracts, etc. has changed: until theprevious fiscal year, if the certainty of the outcome regarding the construction progress is deemed recognized, thepercentage-of-completion method is applied; from the current fiscal year, if control over goods or services is transferred tothe customer over a certain period of time, revenue is recognized over the period as the performance obligation to transfer
the said goods or services to the customer is fulfilled. The measurement of progress in fulfilling performance obligations isbased on the proportion of costs incurred until the end of each reporting period to the total expected costs.
As for the application of the Accounting Standard for Revenue Recognition, etc., the Company followed the transitional
treatment prescribed in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative
effect of retrospective application of the new accounting policy prior to the beginning of the current fiscal year was added toretained earnings at the beginning of the current fiscal year, and the new accounting policy has been applied from the said
beginning balance. In addition, using the method prescribed in Note (1) of Paragraph 86 of the Accounting Standard for
Revenue Recognition, retained earnings at the beginning of the current fiscal year was adjusted by the cumulative effect ofaccounting process reflecting contract terms and conditions effective after applying all contractual modifications made prior
to the beginning of the current fiscal year.
As a result, revenue for the current fiscal year decreased by 55 million yen, cost of sales decreased by 37 million yen, andoperating income, ordinary income, and net income before income taxes decreased by 18 million yen respectively. Thebalance of retained earnings at the beginning of the period increased by 35 million yen.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company started to apply the "Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4,2019), etc. from the beginning of the current fiscal year: in accordance with Paragraph 19 of the Accounting Standard for
Fair Value Measurement and the transitional treatment in Paragraph 44-2 of the "Accounting Standard for Financial
Instruments" (ASBJ Statement No.10, July 4, 2019), the Company continues to apply the new accounting policies prescribedby the above accounting standards. There is no impact on the consolidated financial statements.
(Change in method of presentation)(Consolidated statement of income)"Dividend income of life insurance" under "non-operating income," which had been separately presented in the previous
fiscal year, was included in "Others" in the current fiscal year, as it became insignificant in terms of amount. We rearranged
the financial statements of the previous consolidated fiscal year to reflect this change in presentation.
As a result, 33 million yen presented as "dividend income of life insurance" under "non-operating income" in the
consolidated statement of income for the previous fiscal year was reclassified as "'Others.''- 15 -

(Additional information)(Share-based compensation scheme for directors)
The Company and some of its consolidated subsidiaries have a share-based compensation scheme (the “Scheme” hereafter)
for their directors, excluding outside directors, with a purpose of establishing a clear connection between directors’compensation and stock value and motivating them to contribute to a mid- to long-term increase in earnings and corporate
value.
(1) Overview of transactions
Under the Scheme, the Company’s shares are held in the account of an employee stock ownership plan (ESOP) trust for
officers (the “Trust” hereafter) established on Company funds and the number of shares corresponding to the points assigned
to each director are granted to the director through the Trust in accordance with the share-granting rules established by theCompany’s Board of Directors and those of some of its consolidated subsidiaries. Directors are granted the Company’s
shares when they retire from directorship, in principle.
(2) The Company’s shares remaining in the trust account
The Company’s shares remaining in the trust account are recognized as treasury stock under net assets at the book value inthe trust account (excluding associated expenses). The book value and number of such treasury stock were 160 million yen
and 57,551 shares at the end of the previous fiscal year, and 199 million yen and 80,632 shares at the end of the current
fiscal year.
(Impacts of COVID-19 pandemic on accounting estimates)
The spread of COVID-19 infections continued to have an impact on the Group, and the industry the Group is involved inalso experienced a significant impact on its sales activities. Although it is difficult to predict how COVID-19 will spread andwhen it will be contained, based on information from internal and external sources, we assume that this trend will continue
for a certain period of time, and have made accounting estimates for impairment losses on non-current assets and therecoverability of deferred tax assets, etc. We note that if COVID-19 pandemic further spreads or remains for longer, it may
affect the Group’s earnings and financial position.

- 16 -

(Segment information, etc.)[Segment information]
1 Overview of reportable segments
The Company’s reporting segments are those units of the Company for which separate financial information isavailable and which the Board of Directors regularly conducts reviews to decide allocation of management resources
and assess business performance.
The Company has operational units assigned with specific products and services. Each of them, including Group
companies, designs comprehensive strategies for their respective products and services and operates business.
Therefore, the Company has set telecommunication business and radio frequency business as reportable segments
based on types of their products and services, ways of providing them, product markets, etc., with these operational
units as the basis.
Key business areas of the respective segments are as show in the below table.
Reportable segment

Main business areas
Manufacture, construction, and sale of antennas, reflectors, steel towers, steel structures, etc.

Telecommunication Business

Plating work on telecommunication equipment, steel building framework, etc.
Construction work for telecommunication facilities
Manufacture and sale of high-frequency induction heating equipment and related equipment

Radio Frequency Business

Manufacture and sale of high-frequency power source devices for plasma, etc.
Contract high-frequency heat treating service

2 Methods for calculating amounts of net sales, profit/loss, assets, liabilities, etc. by reportable segment
The accounting methods of reported business segments are the same as those described in “Important matters thatform basis for preparation of consolidated financial statements.”
Profit in the reportable segments is based on operating profit. Intersegment revenues and transfers are calculatedusing prevailing market prices.

- 17 -

3 Information on amounts of net sales, profit/loss, assets, liabilities, etc. by reportable segment
Previous consolidated fiscal year (from April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable segment
OthersTotal

Amountrecorded in
Adjustments consolidated(Note)2 financial
statements(Note)3

Telecommunication
Business

Radio
Frequency
Business

Total

33,942

7,430

41,372

105

41,478-41,478

20

-

20

225

245

(245)

-

33,9627,430

41,392330

41,723(245)

41,478Segment income

3,876

870

4,747

158

4,905

(3,321)

1,583

Segment assets

31,068

11,43242,501776

43,277

19,186

62,463

Depreciation

898

327

1,225

71

1,297

25

1,322

Increase in property, plant, andequipment and intangible assets

961

152

1,114

-

1,114

276

1,390

(Note)1

Net sales
Sales to external customers
Intersegment sales or transfers
Total

Other items(Note) 1
2

The “Others” segment, which is not included in reportable segments, includes equipment leasing and electric powersales businesses.
Details of adjustments are as follows.
(1) The segment income adjustment of (3,321) million yen includes (107) million yen in elimination of intersegment
transactions and (3,214) 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 reportablesegments.
(2) Adjustment to segment assets is a corporate asset that is not allocated to reportable segments. Corporate assets areprimarily the Company’s cash and deposits, etc. of the headquarters that are not allocated to reportable segments.
(3) Adjustment to depreciation is a corporate expense that is not allocated to reportable segments. Corporate expenses
are mainly general and administrative expenses that are not attributable to any reportable segments.
(4) Adjustment to increase in property, plant, and equipment and intangible assets is the amount of capital
expenditures of the corporate assets that is not allocated to reportable segments. Corporate assets are mainly
capital expenditures at the headquarters that are not attributable to any reportable segments.

3

Adjustments are made to reconcile segment income with operating income in the consolidated statement of income.

- 18 -

Current consolidated fiscal year (from April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segment
OthersTotal

Amountrecorded in
Adjustments consolidated(Note)2 financial
statements(Note)3

Telecommunication
Business

Radio
Frequency
Business

Total

25,908

7,959

33,867100

33,968-33,968

18

-

18

229

248

(248)

-

25,926

7,959

33,885330

34,216(248)

33,968Segment income

2,010

1,058

3,068

167

3,235

(3,182)53

Segment assets

23,922

11,59335,516719

36,235

20,101

56,336

954

309

1,264

66

1,330

50

1,381

779

192

972

13

986

97

1,083

(Note)1

Net sales
Sales to external customers
Intersegment sales or transfers
Total

Other items
Depreciation
Increase in property, plant, andequipment and intangible assets(Note) 1
2

The “Others” segment, which is not included in reportable segments, includes equipment leasing and electric powersales businesses.
Details of adjustments are as follows.
(1) The segment income adjustment of (3,182) million yen includes (116) million yen in elimination of intersegment
transactions and (3,066) 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 reportablesegments.
(2) Adjustment to segment assets is a corporate asset that is not allocated to reportable segments. Corporate assets areprimarily the Company’s cash and deposits, etc. of the headquarters that are not allocated to reportable segments.
(3) Adjustment to depreciation is a corporate expense that is not allocated to reportable segments. Corporate expenses
are mainly general and administrative expenses that are not attributable to any reportable segments.
(4) Adjustment to increase in property, plant, and equipment and intangible assets is the amount of capital
expenditures of the corporate assets that is not allocated to reportable segments. Corporate assets are mainly

3

capital expenditures at the headquarters that are not attributable to any reportable segments.
Adjustments are made to reconcile segment income with operating income in the consolidated statement of income.

- 19 -

[Related information]
Previous consolidated fiscal year (from April 1, 2020 to March 31, 2021)
1 Information by product/service
This information is omitted because similar information is shown in “Segment information.”
2 Information by region(1) Net sales(Millions of yen)
Japan

Asia
38,147

North America
2,265Europe528

Others
210

Total
326

41,478

Note: Net sales are classified by country or region based on locations of customers.

(2) Property, plant, and equipment
This information is omitted because the amount of property, plant, and equipment in Japan exceeds 90% of theamount of property, plant, and equipment on the consolidated balance sheet.
3 Information by major customer(Millions of yen)
Name of customer

Net sales

Related segment

NTT DOCOMO, INC.

4,221

Telecommunication BusinessCurrent consolidated fiscal year (from April 1, 2021 to March 31, 2022)
1 Information by product/service
This information is omitted because similar information is shown in “Segment information.”
2 Information by region(1) Net sales(Millions of yen)
Japan

Asia
31,026

North America
1,772EuropeOthers

876

24

Total
269

33,968

Note: Net sales are classified by country or region based on locations of customers.

(2) Property, plant, and equipment
This information is omitted because the amount of property, plant, and equipment in Japan exceeds 90% of theamount of property, plant, and equipment on the consolidated balance sheet.
3 Information by major customer(Millions of yen)
Name of customer

Net sales

NTT DOCOMO, INC.

Related segment
4,874- 20 -

Telecommunication Business[Information on impairment losses on non-current assets by reportable segment]
There are no matters to be noted.
[Information on amortization of goodwill and unamortized balances by reportable segment]
There are no matters to be noted.
[Information on gains on negative goodwill by reportable segment]
There are no matters to be noted.
(Per-share information)
Previous consolidated fiscal year
(from April 1, 2020
to March 31, 2021)

Current consolidated fiscal year
(from April 1, 2021
to March 31, 2022)

Net assets per share

3,908.32 yen

3,938.79 yen

Net income per share

96.14 yen

59.51 yen

(Note) 1
2

No figures are provided for “diluted net income per share” as there are no dilutive shares.
Data used in calculating the net income per share are as follows.
Previous consolidated fiscal year Current consolidated fiscal year
(from April 1, 2020
(from April 1, 2021
to March 31, 2021)
to March 31, 2022)

Item
Net income attributable to shareholders of parent (millions of yen)

1,155

705

Amount not attributable to common shareholders (millions of yen)

-

-

1,155

705

12,018,103

11,861,833

Net income attributable to shareholders of parent pertaining tocommon stock (millions of yen)
Average number of common shares during the period34

We included the Company’s shares held in the trust account of Custody Bank of Japan, Ltd. as trust assets for the sharebased compensation scheme for directors in the treasury stock deducted in the calculation of the average number ofshares over the period in calculating net income per share (58,374 shares in the previous consolidated fiscal year and
72,808 shares in the current consolidated fiscal year).
Data used in calculating the net assets per share are as follows.
Item

Previous consolidated fiscal year Current consolidated fiscal year
(March 31, 2021)(March 31, 2022)

Total net assets (millions of yen)

47,991

46,609Amount deducted from total net assets (millions of yen)

1,018

705

(Including non-controlling interests of:)(1,018)(705)

Net assets related to common stock at end of fiscal year (millions
46,97245,903of yen)Number of common shares at end of fiscal year used in calculating
12,018,649
11,654,176
net assets per share
5 We included the Company’s shares held in the trust account of Custody Bank of Japan, Ltd. as trust assets for the sharebased compensation scheme for directors in the treasury stock deducted in the calculation of the number of shares at theend of the fiscal year in calculating net asset per share (57,551 shares in the previous consolidated fiscal year and
80,632 shares in the current consolidated fiscal year).
(Significant events after balance-sheet date)
There are no matters to be noted.

- 21 -

4.

Other Businesses(1)

Production, orders and sales(a) Production results
Previous consolidated fiscal year
(from April 1, 2020

Current consolidated fiscal year
(from April 1, 2021

to March 31, 2021)

to March 31, 2022)

Reportable segment

ChangeAmountConstituent ratio
AmountConstituent ratio
Amount(millions of yen)(%)(millions of yen)(%)(millions of yen)
Telecommunication
Business
Radio Frequency
Business
Total(Note) 1
2
3

Ratio (%)

14,10565.8

12,692

61.2(1,413)(10.0)

7,335

34.2

8,055

38.8

720

9.8

21,440100.0

20,748

100.0

(692)

(3.2)

Amounts are based on sales prices, and intersegment transactions have been offset.
The above amounts do not include consumption taxes.
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
Previous consolidated fiscal year

Current consolidated fiscal year

(from April 1, 2020
to March 31, 2021)(from April 1, 2021
to March 31, 2022)

Reportable segment

ChangeOrders received Order backlog Orders received Order backlog Orders received Order backlog(Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen)
Telecommunication

29,3708,327

26,6828,815(2,687)488

Radio Frequency
Business

7,113

2,417

8,370

2,766

1,256

348

Total

36,483

10,74535,052

11,582(1,431)

837

Business

Note: The above amounts do not include consumption taxes.
(c) Sales results

Reportable segment

Previous consolidated fiscal year

Current consolidated fiscal year

(from April 1, 2020
to March 31, 2021)(from April 1, 2021
to March 31, 2022)

ChangeAmountConstituent ratio

AmountConstituent ratio

Amount(millions of yen)(%)(millions of yen)(%)(millions of yen)

Ratio (%)

Telecommunication
Business
Construction work

19,77547.7

13,18338.8(6,591)(33.3)

14,16734.2

12,72537.5(1,442)(10.2)

33,94281.8

25,90876.3(8,034)(23.7)

Radio Frequency Business

7,430

17.9

7,959

23.4

528

7.1

Total of reportable segments

41,372

99.7

33,86799.7(7,505)(18.1)

Equipment and materials
sales
Subtotal of
Telecommunication
Business

Other Businesses

105

0.3

100

0.3

(4)

(4.0)

Total

41,478100.0

33,968100.0(7,509)(18.1)(Note) 1
2
3

Intersegment transactions have been offset.
The above amounts do not include consumption taxes.
The “Others” segment, which is not included in reportable segments, includes equipment leasing and electric power sales
businesses.

- 22 -