Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2025

July 31, 2024
Tsuzuki Denki Co., Ltd.
Copyright © 2024 Tsuzuki Denki Co., Ltd.

Highlights
All financial indicators were down YoY, due to a drop in sales caused by the sale of the Electronic Devices business in theprevious fiscal year (January 2024) and sluggish performance of the equipment business. That being said, the six growthareas, including security and cloud-based services, held firm.
・(Ref. 1) Q1 FY03/24 results for Electronic Devices: Net sales JPY7,683mn, operating income JPY216mn, and orders JPY8,428mn
・(Ref. 2) YoY change in Information Network Solutions results: Net sales -8.2%, operating income -99.8%, and orders -2.6%
・ Results for the six growth areas: Total sales of about JPY2.7bn (+13% YoY)

(Millions of yen)

Q1 FY03/24

Q1 FY03/25

Change (amount)

Change (YoY)

Net sales

28,12818,771-9,357-33.3%

Gross profit

5,346

4,114-1,232-23.1%(Cost ratio)（81.0%）（78.1%）（-2.9pt）－SG&A expenses

4,648

4,113-534-11.5%

Operating income

698

1-697

-199.9%(Operating margin)（2.5%）（0.0%）（-2.5pt）

－448

1-447

-199.7%

Orders32,69923,642-9,057-27.7%

Order backlog

49,07022,766-26,304-53.6%

Profit attributable toowners of parent

1Copyright © 2024 Tsuzuki Denki Co., Ltd.

Factors Affecting Operating Income (Continuing Operations Basis)■PositiveLower sales in Information Network Solutions (-JPY367mn) :Sales decline primarily in the equipment businessChange in cost ratio (-JPY3mn):Cost ratio was unchanged YoY
Increase in SG&A expenses (-JPY112mn):Increase in personnel, R&D, and advertising expenses■Negative

Decrease in unprofitable projects (+JPY10mn):No unprofitable projects as of Q1 results announcement(one such project a year ago)

(Millions of yen)472

YoY-471-367(-199.8%)＋10-3
Decrease in gross profit -359
Q1 FY03/24
OperatingincomeEffect of sales decreasein Information NetworkSolutions business

Unprofitableprojects

Change in cost ratio

2-112

1

Increase in
SG&A expenses

Q1 FY03/25
OperatingincomeCopyright © 2024 Tsuzuki Denki Co., Ltd.

Results by Business Model (Information Network Solutions)■Equipment
Sales and orders declined due to the falloff of some large projects and delays in capturing PC-related orders■Development & Construction
PBX infrastructure construction and system development orders held firm while network construction orders fellslightly■ServiceServices in the six growth areas, including security and cloud-based services, grew(Millions of yen)

Net Sales

OrdersOrder Backlog
(YoY)

(YoY)

20,445
17,851Equipment
Development &Construction

5,540
2,576

9,734

7,172

26,62018,771
5,455-8.2%-23.9％

11,63029,68424,2718,576

23,642-2.6％

7,880-8.1％

2,687

2,590-3.6％

2,881

3,797

3,785-0.3.％

10,584

10,725+1.3％

12,108

11,896

11,976+0.7％

Q124/3期1Q
FY03/24

Q125/3期1Q
FY03/25

26,043

16,408Service
Q1
23/3期1Q
FY03/23(YoY)

Q123/3期1Q
FY03/23

Q124/3期1Q
FY03/243

Q125/3期1Q
FY03/25

22,766-23.3％

12,993-31.1％

18,846

4,777

5,780

4,679

-19.1％

4,857

5,056

5,093+0.7％

Q123/3期1Q
FY03/23

Q124/3期1Q
FY03/24Q125/3期1Q
FY03/25

Copyright © 2024 Tsuzuki Denki Co., Ltd.

FY03/25 Consolidated Earnings Forecast (No Change)
Progress was largely in line with the initial forecast. We expect to renew the previous record profit
in Information Network Solutions by executing profitability improvement strategies centered on
bolstering sales activities to win orders from EOS business negotiations, which are in full swing,
and pricing management.
(Millions of yen)

FY03/24 results

Net sales

102,523

Operating income

5,925

Operating margin

5.8%

Profit attributable toowners of parent

5,477

FY03/25 forecast+0.5%(-21,856)(-17.5%)324+5.5%(-189)(-2.9%)

6.1%

ー+0.3pp

4,100-1,377-25.1%

6,250(6,439)(5.2%)

Change (YoY)

476

103,000(124,856)

Change (amount)(+0.9pp)*The upper figures in each cell are for the Information Network Solutions business only,
and the lower figures in parentheses include the Electronic Devices business.
4Copyright © 2024 Tsuzuki Denki Co., Ltd.

Shareholder Returns (No Change)
Dividend yield

Pay stable dividends with a target payout ratio of 40%*

Year-end share price(Minimum dividend on equity [DOE] ratio of 3.5%)

JPY1,100

JPY1,657

JPY1,480

2.8%

3.2%

FY03/21

FY03/22

JPY1,563

JPY2,336

3.9%

3.9%

FY03/23

FY03/24

Dividend forecast for FY03/25: Interim JPY45, year-end JPY46
5.0%*Earnings per share excluding extraordinary gains/losses

Dividend per share
41.3%

45.0%

＊FY03/20

40.0%*Dividend yield = Dividend per share / Share price at the end of the period (final record date)

120
40.0%

34.3%
35.0%

30.3%

30.9%

JPY90

JPY91

100

Shareholder benefits

30.0%

80

25.0%

JPY61Number ofshares held

60
20.0%

JPY46
15.0%

40

10.0%

205.0%

1,000 shares or more0

FY03/21

FY03/22

FY03/23

FY03/24

継続保有年数

保有株式数
100 shares to less than
300 shares
300 shares to less than
1,000 shares

JPY48

0.0%

Number of years
held

FY03/25(provisional)

Products (including QUO Cards,
13 types in different price ranges)
Less than 3 years

More than 3 years

JPY1,000 worth

JPY2,000 worth

JPY2,000 worth

JPY4,000 worth

JPY3,000 worth

JPY6,000 worth*If 1,000 shares or more but less than 3 years (worth 3,000 yen) and 300 shares to less than
1,000 shares for more than 3 years (worth 4,000 yen) both apply, it will be treated as 300
shares to less than 1,000 shares for more than 3 years (worth 4,000 yen).

*Based on profit from business activities. Dividend payout ratio is 29.5%

based on reported profit attributable to owners of parent
5Copyright © 2024 Tsuzuki Denki Co., Ltd.

Contact

Contact

Tsuzuki Denki Co., Ltd.
Management Planning Office

Address

6-19-15 Shinbashi, Minato-ku, Tokyo 105-8665, Japan (Tokyo Art Club Building)
Phone: 050-3684-7780
ir-tantou@tsuzuki.co.jp
https://www.tsuzuki.co.jp/Disclaimer
The forward-looking statements, including earnings forecasts, contained in this document are based on information
available to the Company at the time of this document’s release and are subject to a number of uncertainties. Please notethat actual results may differ significantly due to various factors. Although every effort has been made to ensure theaccuracy of the information contained in this document, please note that the accuracy and certainty of its content is notguaranteed. The names of companies, products, and services mentioned in this document are registered trademarks ortrademarks of their respective owners.
6Copyright © 2024 Tsuzuki Denki Co., Ltd.

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