Consolidated Financial Results for the First Quarter of
the Fiscal Year Ending March 31, 2025 (JGAAP)
July 31, 2024
Company name:
Tsuzuki Denki Co., Ltd.
Listing Stock Exchange: Tokyo
Stock code:
8157
URL: https://www.tsuzuki.co.jp/
Representative (title): Kazunori Yoshii, Representative Director, President and CEO
Contact (title):
Toshihiro Hirai, Managing Executive Officer
Tel: +81-50-3684-7780
—
Yes
No

Scheduled date for dividend payment:
Preparation of supplemental explanatory materials:
Results briefing to be held:

1. Consolidated financial results for the first quarter of the fiscal year ending March 31, 2025
(April 1, 2024, to June 30, 2024)(1) Consolidated operating results

Net sales

Millions of yen (rounded down), % figures are year-on-year change
Quarterly profit
Operating income
Ordinary income
attributable toowners of parent

First quarter,year ending
18,771 (33.3%)
1 (99.9%)41 (93.8%)
1 (99.7%)
March 31, 2025
First quarter,—year ended
28,128
14.3%
698
673
—
448
—
March 31, 2024
Note: Comprehensive income was 222 million yen (-76.4%) in first quarter of year ending March 31, 2025; 943
million yen (—%) in first quarter of year ended March 31, 2024.
Earnings per share
Diluted earnings per(yen)share (yen)First quarter,year ending
0.06—
March 31, 2025
First quarter,year ended
25.01—
March 31, 2024
(2) Consolidated financial position
Total assets
Net assets
Shareholders’
Net assets per share(millions of yen)(millions of yen)equity ratio(yen)First quarter,year ending
73,96540,00753.6%
2,197.19
March 31, 2025
Year ended
81,06640,86449.8%
2,241.85
March 31, 2024
Reference: Shareholders’ equity at first quarter, year ending March 31, 2025; 39,632 million yen; in year ended
March 31, 2024; 40,401 million yen.

1

2. Dividends
Dividends per share for the fiscal year (yen)End offirstquarter

End ofsecondquarter

End ofthird
quarterYearendTotal

Year ended
—
38.00
—
52.00
March 31, 2024
Year ending—
March 31, 2025
Year ending
March 31, 2025
45.00
—
46.00
(forecast)
Note: Revisions to most recent dividend forecast: None

90.00

91.00

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2025
(April 1, 2024, to March 31, 2025)% figures are year-on-year change
Profit attributable to Earnings
Net sales
Operating income Ordinary income
owners of parent
per share(millions of yen)(millions of yen)(millions of yen)(millions of yen)
(yen)
Full year

103,000(17.5%)

6,250(2.9%)

6,250

Note: Revisions to most recent earnings forecast: None2

(3.7%)

4,100(25.1%)

227.32

*Notes(1) Changes in significant subsidiaries (which affected scope of consolidation) during the quarter: None
Newly added ___ companies (names)
No longer consolidated ___ companies (names)(2) Special accounting methods used in preparation of quarterly consolidated financial statements: Yes
Note: For details, please refer to Attachment page 13: “2. Consolidated financial statements and notes (3)Notes to quarterly consolidated financial statements (Application of special accounting methods in the
preparation of quarterly consolidated financial statements)."(3) Changes in accounting policies, changes in accounting estimates, and restatements
1. Changes in accounting policies due to changes in accounting standards:
2. Changes in accounting policies not due to changes in accounting standards:
3. Changes in accounting estimates:
4. Restatements:

Yes
None
None
None

(4) Number of shares outstanding (common stock)
First quarter,
1. Number of shares outstanding at
Year ended
year ending
20,177,894
20,177,894
year end (including treasury stock)
March 31, 2024
March 31, 2025
First quarter,
2. Number of shares at year end
Year ended
year ending
2,140,048
2,156,334(treasury stock)
March 31, 2024
March 31, 2025
First quarter,
First quarter,
3. Average number of shares overyear ending
18,031,900
year ended
17,936,655
the period
March 31, 2025
March 31, 2024
Note: The number of treasury shares includes those held in the Directors’ Compensation Board Incentive Plan
(BIP) trust account (420,447 in first quarter, year ending March 2025; 420,447 in year ended March 2024); andStock-grant ESOP trust account (316,275 in first quarter, year ending March 2025; 332,632 in year ended March
2024).
*The financial information in this quarterly report is not subject to review by certified public accountants or auditing
firms.
*Appropriate use of earnings forecast and other special notes.
(Note on forward-looking statements)
The earnings forecasts and other forward-looking statements contained in this document are based on
information currently available to the Company, and certain assumptions it considers reasonable, but are notintended to be a promise that the Company will achieve. Actual results may vary materially from forecasts due toa variety of factors.
(Availability of supplementary material on financial results)
The supplementary document on quarterly earnings is disclosed on the same day as the quarterly financial
results, and it is made available on the Company’s website.

3

Content of attachment
1. Qualitative information on quarterly results ..............................................................................................5(1) Earnings ..............................................................................................................................................................5(2) Financial position ...............................................................................................................................................8(3) Consolidated earnings forecasts and other information concerning the outlook .....................................8
2. Consolidated financial statements and notes ...........................................................................................9(1) Quarterly consolidated balance sheet ............................................................................................................9(2) Quarterly consolidated statements of income and comprehensive income ...........................................11(3) Notes to quarterly consolidated financial statements .................................................................................13(Notes on premise of going concern)..............................................................................................................13(Notes on significant changes in the amount of shareholders equity.) ......................................................13(Application of special accounting methods in the preparation of quarterly consolidated financial
statements) .........................................................................................................................................................13(Changes in accounting policy) .......................................................................................................................13(Segment and other information).....................................................................................................................14(Notes to consolidated statement of cash flows) ..........................................................................................144

1. Qualitative information on quarterly results(1) Earnings
In the first quarter of the consolidated fiscal year ending March 31, 2025, the Japanese economy showed signsof a gradual recovery, supported by improvements in the employment and income conditions. However, against a
backdrop of risks weighing on the domestic economy, including persistently high interest rates in Europe and the
US and the uncertain outlook for the Chinese economy, there is an ongoing need to closely monitor the impact ofrising prices and fluctuations in the financial and capital markets.
The information and communications services industry, where the Group belongs, continued to expand, driven
by the acceleration of digital transformation (DX) initiatives by corporations and the development of generative AI
technology.
Under these circumstances, the Group established a long-term vision spanning 10 years from the current fiscal
year, and we are currently in the middle of a three-year medium-term management plan, “Transformation 2026,”
toward achieving the long-term vision. In 10 years’ time, we envision ourselves to be Growth Navigator, anorganization that navigates growth and creates together with stakeholders, including customers. We aim to be acompany that continues to be chosen by customers as an organization that leads the way for growth. Having
positioned the next three years as the first stage toward realizing this goal, we will concentrate and transfer
resources to growth areas and strive to bolster our earnings capability. Further, to enhance corporate value, themost important theme for the Group, we will promote integrated measures spanning all aspects of business,finance, and non-finance, including management mindful of the cost of capital and strengthening of personnel
capital.
In the first quarter of the consolidated fiscal year under review, which corresponds to the second year of themedium-term management plan, net sales were ¥18,771 million (down 33.3% year on year), operating income
was ¥1 million (down 99.9% year on year), ordinary income was ¥41 million (down 93.8% year on year), and loss
attributable to owners of parent was ¥1 million (down 99.7% year on year).
Due to the sale of the Electronic Devices segment in the previous fiscal year, the Group now operates in a single
segment—the Information Network Solutions segment. For this reason, orders and net sales declined, despite
growth in services for the six growth domains, including securities. Specifically, the decline was due to theabsence of some large projects in the equipment business that buoyed results a year ago and the sale of theElectronic Devices segment. On the profit front, SG&A expenses decreased, mainly due to the drop-off of the
portion for the Electronic Devices segment, but any positive impact here was offset by lower sales, leading to a
year-on-year decline in profit.
In the Information Network Solutions segment, orders, net sales, and operating income all decreased year on
year, by 2.6%, 8.2%, and 99.8%, respectively.

The following section discusses earnings by business model in the first quarter.
Results by business model
Equipment: Orders were ¥7,880 million (down 8.1% year on year), and net sales were ¥5,455 million (down
23.9% year on year). This was due to the absence of contributions from some large projects thatbuoyed results a year ago, despite progress in the introduction of PCs and software licenses bycustomers operating in a range of industries, including construction and finances.
Development and construction: Orders were ¥3,785 million (down 0.3% year on year) and net sales were ¥2,590
million (down 3.6% year on year). This was due to a slight decline in network construction projects,
despite steady progress in PBX environment construction and system development projects.
Service:

Orders were ¥11,976 million (up 0.7% year on year) and net sales were ¥10,725 million (up 1.3%
year on year), owing primarily to growth in services in the six growth domain, including securities
and cloud services.

5

*Note regarding quarterly earnings for the Group
Many of the Group’s customers have business years from April through March the following year. Further,fulfilment obligations for many transactions are judged to be satisfied at a certain point, so the Group’s sales andprofit tend to be concentrated in September and March, the halfway and endpoints of the fiscal year

6The following tables show sales and orders by segment in the first quarter of the fiscal year ending March, 2025.
After the transfer of all shares in the four group companies operating the Electronic Devices segment on January
9, 2024, we now operate in the single segment of Information Network solutions.
Because the Group operates in a single segment due to this change, we have omitted segment information for
the first quarter of the previous and current consolidated fiscal years.
(1) Net sales by segment (millions of yen)First quarter,year ended
March 2024
Information Network Solutions
Equipment
Development and construction
Service

20,445
7,172
2,687

10,584First quarter, year ending March 2025
Versus first quarter of previous
year
18,771
5,455
2,590
10,725(1,673)(1,717)
(97)
140

91.8%
76.1%
96.4%
101.3%(2) Orders by segment (millions of yen)First quarter,year ended
March 2024
Information Network Solutions
Equipment
Development and construction
Service

24,271
8,576
3,797
11,896First quarter, year ending March 2025
Versus first quarter of previous
year
23,642
7,880
3,785
11,976

(628)
(696)
(12)
79

97.4%
91.9%
99.7%
100.7%(3) Order backlog by segment (millions of yen)

Information Network Solutions
Equipment
Development and construction
ServiceFirst quarter,year ended
March 2024
29,684
18,846
5,780
5,056

7

First quarter, year ending March 2025
Versus first quarter ofprevious year
22,766(6,918)76.7%
12,993(5,852)
68.9%
4,679(1,101)
80.9%
5,093
36
100.7%

(2) Financial position
As of the end of the first quarter under review (June 30, 2024), assets were ¥73,965 million, down ¥7,101
million from the end of the previous fiscal year (March 31, 2024). This mainly reflected a decline of ¥8,490 million
in notes and accounts receivable–trade and contract assets, which was only partially offset by increases of ¥774
million in inventories. Liabilities were ¥33,957 million, down ¥6,244 million from the end of the previous fiscal year.
The main reasons for the decline were decreases of ¥4,685 million in notes and accounts payable–trade, and¥1,538 million in income taxes payable. Net assets came to ¥40,007 million, down ¥856 million versus the end of
the previous fiscal year, and the equity ratio was 53.6% (versus 49.8% at the end of the previous fiscal year). Thiswas mainly due to a decline in retained earnings due to dividend payments of ¥976 million , offsetting a ¥170
million increase in valuation difference on available-for-sale securities.

(3) Consolidated earnings forecasts and other information concerning the outlook
The Company maintained its consolidated earnings forecast for the fiscal year ending March 31, 2025
(released May 13, 2024), as earnings in the first quarter under review were in line with the initial plan. However,in case matters arise that require public disclosure due to changes in the operating environment, etc., theCompany will promptly make an announcement.

8

2. Consolidated financial statements and notes(1) Quarterly consolidated balance sheet(Millions of yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Electronically recorded monetary claims
Inventories
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles
(net)
Land
Lease assets
Accumulated depreciation
Lease assets (net)
Construction in progress
Other
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible assets
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Investments and other assets
Total noncurrent assets
Total assets

9

As of June 30, 2024

38,696
21,038
541
3,649
2,005
(2)
65,92938,703
12,547
663
4,423
2,191
(3)
58,526

1,580
(706)
874
7
(6)

1,593
(727)
865
7
(6)

1

1

215
2,343
(1,634)
708
17
1,235
(865)
369
2,187

215
2,096
(1,488)
607
28
1,240
(894)
345
2,064

521
1,765
2,286

456
1,989
2,445

4,092
20
2,221
3,450
917
(39)
10,663
15,13781,066

4,294
18
2,282
3,452
921
(39)
10,92915,43973,965

(Millions of yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Net defined benefit liability
Long-term accounts payable – other
Provision for share awards
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNoncontrolling interests
Total net assets
Total liabilities and net assets

11,637
4,747
7
605
1,726
2,416
7,321

10

As of June 30, 2024

28,462

6,951
4,747
7
548
188
1,127
8,931
22,502

4,104
726
5,563
535
617
192
11,73940,202

4,102
607
5,329
468
716
231
11,45433,957

9,812
2,756
29,705(2,043)40,2309,812
2,756
28,730(2,027)39,271

1,944

2,114

(1,773)(1,754)

171

360

462
40,86481,066375
40,00773,965

(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statement of income)Consolidated income statement for the first quarter(Millions of yen)Three months ended
June 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Facility move out expenses
Loss on termination
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

11

Three months ended
June 30, 2024

28,12822,781
5,346
4,648
698

18,771
14,657
4,114
4,113
1

1
39
13
55

0
45
20
66

24
34
17
3
80
673

21
－
－
4
25
41

－
－

31
31

0
0
673
172
501
52
448

－
－
72
39
33
32
1

(Quarterly consolidated statement of comprehensive income)First quarter(Millions of yen)Three months ended
June 30, 2023
ProfitOther comprehensive income
Valuation difference on available for salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Other comprehensive income
Comprehensive income
BreakdownComprehensive income attributable to ownersof parent
Comprehensive income attributable tononcontrolling interests

12

Three months ended
June 30, 2024

501

33

355

170

(35)
77
44
442
943

－
－
19
189
222

890

190

52

32

(3) Notes to quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.

(Notes on significant changes in the amount of shareholders equity.)
Not applicable.
(Application of special accounting methods in the preparation of quarterly consolidated financial statements)(Calculation of tax expense)
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effect accounting
to income before income taxes for the fiscal year, including the first quarter, and multiplying quarterly income
before income taxes by the estimated effective tax rate.
Note: Income taxes – deferred are included in income taxes.

(Changes in accounting policy)(Application of “Accounting Standard for Corporate, Inhabitant and Enterprise Taxes,” etc. )From the beginning of the first quarter of the consolidated fiscal year under review, we have applied the“Accounting Standard for Corporate, Inhabitant and Enterprise Taxes” (ASBJ Statement No. 27, October 28,
2022; hereafter the “2022 Revised Accounting Standard”).
For revisions related to the classification of corporate taxes (taxes on other comprehensive income), we arecomplying with the transitional measures prescribed in the proviso to Paragraph 20-3 of the 2022 Revised
Accounting Standard and the proviso to Paragraph 65-2 (2) of the “Guidance on Accounting Standard for Tax
Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022). This change in accounting policy has no impact
on the quarterly consolidated financial statement.
Further, we have also applied the 2020 Revised Accounting Standard from the first quarter of the consolidated
fiscal year under review for revisions related to the treatment in the consolidated financial statements of gains orlosses from the sale of shares in subsidiaries, etc. resulting from intra-group transactions, where such gains orlosses can be deferred for tax purposes. This change in accounting policy has been applied retrospectively to thequarterly and full-year consolidated financial statements for the previous quarter and the previous consolidated
fiscal year. This change, however, has no impact on the quarterly and full-year consolidated financial statements
for the previous fiscal year.

13

(Segment and other information)
Segment information
I First quarter of previous year (April 1, 2023, to June 30, 2023)
1. Information on net sales and profit or loss by reporting segment(Millions of yen)Amountrecorded inquarterly
Adjustments
consolidated(Note 1)
financialstatements(Note 2)

Reporting segment
Information
Network
SolutionsElectronic
Devices

Total

Net sales
Net sales from externalcustomers
Intersegment net sales andtransfers
Total
Segment profit

20,445

7,683

28,128－28,128

6

32

39

(39)

－

20,452

7,715

28,168(39)

28,128

472

216

689

9

698

Notes:
1 Adjustments to segment profit (loss) are elimination of intersegment transactions.
2 Segment profit (loss) is adjusted with operating income (loss) in the quarterly consolidated income statements.
II First quarter in current year (April 1, 2024, to June 30, 2024)
Segment information has been omitted because the Group operates in a single segment.
(Matters relating to changes in reportable segments)
Previously, the Group reported its earnings results in two reportable segments: Information Network Solutions andElectronic Devices. However, after the transfer of all shares in the four group companies operating the Electronic
Devices segment on January 9, 2024, we now operate in the single segment of Information Network solutions.
Because the Group operates in a single segment due to this change, we have omitted segment information for the
first quarter of the previous and current consolidated fiscal years.
(Notes to consolidated statement of cash flows)
The Company has not prepared a consolidated statement of cash flows for the first quarter of the consolidated fiscal
year under review. Depreciation (including amortization expenses related to intangible fixed assets) andamortization of goodwill for the said period are as follows.

Depreciation
Amortization of goodwill

First quarter of previous year
(April 1, 2023, to June 30,
2023)
390

(Millions of yen)First quarter in current year
(April 1, 2024, to June 30,
2024)
347

22

－

14