Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 14, 2024

Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
(Under Japanese GAAP)
Company name:
DKS Co. Ltd.
Listing:
Tokyo Stock Exchange
Security code:
4461
URL:
https://www.dks-web.co.jp
Representative:
YAMAJI Naoki, President COO
Inquiries:
SHIMIZU Shinji, Director
TEL:+81-75-323-5955
Scheduled date of ordinary general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary material on financial results:
Holding of financial results briefing:

June 25, 2024
June 26, 2024
June 25, 2024
Yes
Yes (for institutional investors andanalysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Millions of yen

Fiscal year ended
March 31, 2024
March 31, 2023
Reference:% Millions of yen

63,11865,081

Note: Comprehensive income

Operating income

(3.0)
3.8

% Millions of yen

2,077
1,186

Profit attributable toowners of parent

Ordinary income

75.1(74.4)

Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

2,060
1,200

% Millions of yen

71.6(71.4)¥3,656 million¥375 million

1,174
(407)

%

–
–

[874.1%][(89.8)%]

Ratio of ordinary Ratio of operating
profit to total
income to net
assetssales

Basic earnings per
share

Diluted earnings
per share

Return on equity

Yen

Yen

%

%

%

3.3
(1.1)

2.3
1.4

3.3
1.8

122.81(41.87)––

Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2024¥(3) million
Fiscal year ended March 31, 2023
¥36 million(2) Consolidated financial position
Total assets
As ofMarch 31, 2024
March 31, 2023
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

94,53785,02541,29738,296

38.9
40.4

3,839.89
3,593.49

EquityAs of March 31, 2024 ¥36,747 million
As of March 31, 2023 ¥34,346 million

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

7,091
724

(2,008)(2,883)

1,646(1,030)15,9479,051

2. Cash dividends
Annual dividends per share

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
(Forecast)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Total

Total cash
dividends(Total)Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

–

40.00

–

40.00

80.00

764

–

2.2

–

20.00

–

45.00

65.00

622

52.9

1.7

–

35.00

–

35.00

70.00

33.5

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2025 (from April 1, 2024, to
March 31, 2025)
Net sales

Half year
Full year

Operating income(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary income
earnings perowners of parent
shareMillions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

33,00070,000

13.0
10.9

1,500
4,000

–
92.6

1,400
3,900

–
89.3

800
2,000

–
70.4

83.60
208.99* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
Newly included: – companies
Excluded:– companies(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to reasons other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None(3) Number of issued shares (ordinary shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

10,684,321 shares

As of March 31, 2023

10,684,321 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2024

1,114,373 shares

As of March 31, 2023

1,126,227 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2024

9,566,943 sharesFiscal year ended March 31, 2023

9,737,450 shares[Reference] Overview of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating income

Millions of yen% Millions of yen

42,03343,506(3.4)
5.0

Basic earnings per
share
Fiscal year ended
March 31, 2024
March 31, 2023

(Percentages indicate year-on-year changes.)
Ordinary income% Millions of yen

290
(826)

–
–

975
23

Profit% Millions of yen–(99.0)

1,086(1,177)%––

Diluted earnings per
share

Yen

Yen

113.59(120.93)––(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2024
March 31, 2023
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

69,60863,091

27,10025,36838.9
40.2

2,831.80
2,654.13

EquityAs of March 31, 2024 ¥27,100 million
As of March 31, 2023 ¥25,368 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the consolidated forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Consequently,
no statements herein constitute assurances regarding actual results by the Company. Results may differ
materially from the consolidated forecasts due to various factors.

DKS Co. Ltd. (4461)

Attached Material
Index
1. Overview of Operating Results, etc. ......................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year Under Review .................................................... 2(2) Overview of Financial Position for the Fiscal Year Under Review .................................................... 4(3) Overview of Cash Flows for the Fiscal Year Under Review .............................................................. 4(4) Future Outlook ................................................................................................................................... 5(5) Basic Policy for Profit Distributions and Dividends for Current and Next Fiscal Years .................... 5
2. Basic Concept Regarding Selection of Accounting Standards ................................................................. 6
3. Consolidated Financial Statements and Notes .......................................................................................... 7(1) Consolidated Balance Sheet ............................................................................................................... 7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ............ 9(Consolidated statement of income) ................................................................................................... 9(Consolidated statement of comprehensive income) ........................................................................ 10(3) Consolidated statement of changes in equity ................................................................................... 11(4) Consolidated Statement of Cash Flows ............................................................................................ 13(5) Notes to Consolidated Financial Statements .................................................................................... 14(Notes on premise of going concern) ............................................................................................... 14(Notes on significant accounting estimate) ...................................................................................... 14(Segment information, etc.) .............................................................................................................. 14(Per share information) ..................................................................................................................... 19(Significant events after reporting period)........................................................................................ 20-1-

DKS Co. Ltd. (4461)

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year Under Review
During the fiscal year under review, the Japanese economy showed signs of gradual recovery insocioeconomic activities due to improvements in the income and employment environment and theeffects of various government policies. However, the outlook remains uncertain mainly due to thesoaring prices of crude oil and other energy and raw materials caused by the changing internationalsituation, the impact of global monetary tightening, and the rising prices of commodities.
Under these circumstances, the Group has worked to promptly address major changes in the businessenvironment surrounding its current operations and to continue its corporate activities. As a result, theCompany’s profit turned to increase, although sales decreased year on year. Sales growth in theinformation and communication-related sector for high-end servers and progress in price pass-throughmeasures to accommodate for price increases contributed to the increase in profit. In addition,company-wide cost reduction activities also contributed to profit.
The fiscal year ending March 31, 2025 is the final year of the medium-term management plan “FELIZ
115.” In addition to the strong sales of radcure resin materials, we plan to gradually bring new
developments to fruition, such as semiconductor-related cleaning agents and electronic control-related
sealing materials. As for the Life Science business, we aim to put it on track to return to profitability
and to achieve its target figures.
Concerning the results for the fiscal year ended March 31, 2024, net sales were ¥63,118 million (down
3.0% year on year), due to a significant decline in sales of flame retardants for overseas markets despite
significant growth in sales of radcure resin materials in the Functional Materials segment.
In terms of profit and loss, operating income was 2,077 million yen (up 75.1% year on year) andordinary income was 2,060 million yen (up 71.6% year on year) due to increased demand from themarket recovery, progress in price pass-through measures, and various other measures including cost
reduction. As a result of adding or subtracting gain on sale of investment securities, etc. to or from theabove, profit attributable to owners of parent was ¥1,174 million (loss of ¥407 million in the previous
fiscal year).
Results by segment are as follows.
Surfactants
Net sales in the Surfactants segment were generally weak.
In Japan, sales were sluggish in IT and electronics applications, but remained firm in rubber andplastic applications, and paint and coloring agent applications. Sales for soap and detergent
applications fell significantly.
Overseas, sales for rubber and plastic applications and paint and coloring agent applications werefirm.
As a result, net sales in this segment were ¥18,529 million (down 2.4% year on year). Operating
income was ¥1,816 million (up 3.8% year on year) due to reductions in operating expenses.
Amenity Materials
Net sales in the Amenity Materials segment were generally firm.
In Japan, sales of cellulose polymers were sluggish in energy and environmental applications, aswere sales of vinyl polymers for rubber and plastic applications. Sales of sucrose fatty acid esters
were robust in food applications.
Overseas, sales of sucrose fatty acid esters were robust in food applications and personal care(cosmetics) applications.
As a result, net sales in this segment were ¥8,430 million (up 4.3% year on year).

-2-

DKS Co. Ltd. (4461)

Operating income was ¥459 million (operating loss of ¥1 million in the previous fiscal year) due toreductions in operating expenses.
Polyurethane Materials
Net sales in the Polyurethane Materials segment were generally firm.
Sales of environmentally friendly synthetic lubricants related to CFC regulations were sluggish,
while sales of civil engineering chemicals related to public works remained strong.
Demand for functional polyurethane was firm for IT and electronics applications.
As a result, net sales in this segment were ¥8,870 million (up 1.2% year on year).
The Company posted an operating loss of ¥243 million for the period (operating loss of ¥247
million in the previous fiscal year) due to the impact of soaring raw materials prices.
Functional Materials
Net sales in the Functional Materials segment were generally sluggish.
In Japan, sales of radcure resin materials for IT and electronics applications grew significantly.
Sales of waterborne polyurethane for IT and electronics applications were firm, but those for textile
applications were sluggish. Sales of flame retardants for rubber and plastic applications fellsignificantly.
Overseas, sales of radcure resin materials for IT and electronics applications grew substantially, but
sales of flame retardants for rubber and plastic applications fell significantly.
As a result, net sales in this segment were ¥21,439 million (down 5.0% year on year).
Operating profit was ¥1,003 million (up 256.2% year on year) due to strong growth of net sales ofhigh-value-added radcure resin materials and reductions in operating expenses.
Electronic Device Materials
Net sales in the Electronic Device Materials segment fell significantly overall.
Sales of ionic liquids for display applications were firm, but sales of conductive pastes for solar cellapplications fell significantly.
As a result, net sales in this segment were ¥5,456 million (down 11.9% year on year).
Operating loss was ¥43 million (operating income of ¥139 million in the previous fiscal year) due
to an increase in operating expenses on top of a significant drop in net sales.
Life Sciences
Net sales in the Life Sciences segment decreased by ¥105 million to ¥392 million (down 21.3%
year on year).
The OEM business for pharmaceutical additives and health foods made through the concentrationand pulverization of extracts from natural materials was sluggish.
As for operating income, net sales fell significantly, and there was an operating loss of ¥914 million(operating loss of ¥734 million in the previous fiscal year) due to an increase in operating expenses,
primarily driven by R&D expenditures.
By March 31, 2025, we aim to make our Life Sciences business profitable through the following
measures. (1) B-to-C, focusing on our product, “Kainou Tochukasou,” which went on sale inAugust 2023 as a food with functional claims that helps maintain cognitive function speed andvisual memory that are part of cognitive functions in middle-aged and senior individuals. (2) B-to--3-

DKS Co. Ltd. (4461)

B, targeting sales of materials such as I. Japonica-Bombyx Fungus powder and sudachi fruit peel
extract. (3) Expanding the OEM business of IKEDA YAKUSOU CO., LTD., our group company.

(2) Overview of Financial Position for the Fiscal Year Under Review(Assets)
Current assets at the end of the fiscal year ended March 31, 2024 were ¥53,614 million, up ¥8,203
million from the end of the previous fiscal year. This was primarily due to an increase of ¥6,997 million
in cash and deposits, and an increase of ¥3,267 million in accounts receivable - trade, despite adecrease of ¥2,495 million in inventories such as merchandise and finished goods. Non-current assets
totaled ¥40,922 million, up ¥1,308 million from the end of the previous fiscal year. This was primarily
due to an increase of ¥1,367 million in investment securities and an increase of ¥537 million inretirement benefit, despite a decrease of ¥275 million in total property, plant and equipment.
As a result, total assets amounted to ¥94,537 million, up ¥9,511 million from the end of the previous
fiscal year.
(Liabilities)
Current liabilities at the end of the fiscal year ended March 31, 2024 were ¥25,159 million, up ¥4,519
million from the end of the previous fiscal year. This was primarily due to a ¥2,007 million increase innotes and accounts payable - trade and a ¥1,331 million increase in short-term borrowings. Non-current
liabilities totaled ¥28,081 million, up ¥1,991 million from the end of the previous fiscal year. This wasprimarily due to an increase of ¥1,601 million in long-term borrowings.
As a result, total liabilities at the end of the period under review were ¥53,240 million, up ¥6,511
million from the end of the previous fiscal year.
(Net assets)
Total net assets at the end of the fiscal year ended March 31, 2024 were ¥41,297 million, up ¥3,000
million from the end of the previous fiscal year. This was primarily due to a profit attributable toowners of parent of ¥1,174 million and dividends of surplus of ¥573 million resulting in increases of¥601 million in retained earnings, of ¥1,203 million in valuation difference on available-for-salesecurities, and of ¥599 million in non-controlling interests.
As a result, the equity ratio came to 38.9% (40.4% as of the end of the previous fiscal year).
(3) Overview of Cash Flows for the Fiscal Year Under Review
Cash and cash equivalents (“cash”) at the fiscal year ended March 31, 2024 were ¥15,947 million, an
increase of ¥6,895 million compared to the end of the previous fiscal year.
The respective cash flow positions and the factors thereof in the fiscal year ended March 31, 2024 are
as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥7,091 million (¥724 million was provided in theprevious fiscal year). This was due to a decrease in funds resulting primarily from an increase in tradereceivables of ¥3,199 million (an increase of ¥722 million in the previous fiscal year), and an increasein funds resulting primarily from profit before income taxes of ¥2,343 million (¥224 million in theprevious fiscal year), depreciation of ¥3,216 million (¥3,295 million in the previous fiscal year), a
decrease in inventories of ¥2,684 million (an increase of ¥1,362 million in the previous fiscal year), andan increase in trade payables of ¥2,150 million (a decrease of ¥321 million in the previous fiscal year).

-4-

DKS Co. Ltd. (4461)(Cash flows from investing activities)
Net cash used in investing activities was ¥2,008 million (¥2,883 million was used in the previous fiscal
year). This was due to an increase in funds caused mainly by proceeds from sale of investment
securities of ¥596 million (¥70 million in the previous fiscal year), combined with a decrease in funds
resulting primarily from purchase of property, plant and equipment of ¥2,502 million (¥2,834 million in
the previous fiscal year).
(Cash flows from financing activities)
Net cash provided by financing activities was ¥1,646 million (¥1,030 million was used in the previous
fiscal year). This was due to an increase in funds resulting from proceeds from long-term borrowings of¥8,603 million (¥7,700 million in the previous fiscal year) despite a decrease in funds resulting
primarily from repayments of long-term borrowings of ¥5,534 million (¥5,879 million in the previous
fiscal year), and payment of dividends of ¥573 million (¥840 million in the previous fiscal year).
(4) Future Outlook
The Group has entered the fifth year of its medium-term management plan, “FELIZ 115.” Initially, wewere going to focus on business expansion starting in the third year of the plan, but market stagnation
due to the prolonged COVID-19 pandemic, geopolitical risks such as Russia’s military invasion of
Ukraine, and soaring prices of crude oil, naphtha, and other raw materials have hindered our efforts tosecure profits.
In response to this situation, we will come together as a group to work on improving profitability,
accelerating our efforts to address urgent management issues such as promoting new development,
strengthening segment management, reviewing unprofitable businesses, redistributing management
resources, and rebuilding our performance evaluation and compensation system.
For the next fiscal year, we forecast net sales of ¥70,000 million, operating income of ¥4,000 million,
ordinary income of ¥3,900 million, profit attributable to owners of parent of ¥2,000 million.
(5) Basic Policy for Profit Distributions and Dividends for Current and Next Fiscal Years
Our basic policy is to maintain long-term and stable dividends to our shareholders while keeping areasonable level of internal reserves that we deem is necessary for future business development. With
regard to internal reserves, we will strive to increase corporate value by actively utilizing these for theinvestment necessary for future business development that will lead to strengthening international
competitiveness and new growth.
Taking into consideration our business performance, we will pay a year-end dividend of ¥45 per share,
an increase of ¥5 compared to the dividend paid at the end of the previous fiscal year.
Going forward, we will strive to establish a profit-creating business structure and maintain stabledividends over the long term.
Regarding the dividend for the next fiscal year, we plan to pay an interim dividend of 35 yen per shareand a year-end dividend of 35 yen per share, for a total annual dividend of 70 yen per share, taking into
consideration the earnings forecast for the next fiscal year.

-5-

DKS Co. Ltd. (4461)

2. Basic Concept Regarding Selection of Accounting Standards
Most of the stakeholders of the Group are domestic shareholders, creditors, business partners, etc., andthere is little need to raise funds from overseas, we have applied Japanese standards as accounting
standards.
In the future, we plan to consider the application of international accounting standards based on changes in
the ratio of foreign shareholders and trends in the application of international accounting standards of othercompanies in the same industry in Japan.

-6-

DKS Co. Ltd. (4461)

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current 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
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-7-

As of March 31, 2023

As of March 31, 2024

9,128
345
14,75916,126271
18,027

2,218

2,364

13,131
16
3,489
369
1,956
(3)
45,411

11,029
20
3,091
403
2,282
(2)
53,61430,640(17,805)
12,83435,272(30,621)
4,650
4,285
(3,484)
800
9,748
4,582
(2,244)2,338
2,369
32,743341

31,396(18,812)
12,58337,499(31,782)
5,717
4,647
(3,708)
939
9,948
4,759
(2,644)2,115
1,162
32,467
290

4,274
14
512
299
1,063
371
(6)
6,529
39,61485,025

5,641
10
346
127
1,601
437
(1)
8,164
40,922
94,537

DKS Co. Ltd. (4461)(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
Accrued expenses
Income taxes payable
Accrued business office taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Corporate bonds
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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-8-

As of March 31, 2023

As of March 31, 2024

9,972
379
6,516
474
308
232
41
712
2,002
20,63911,979
562
7,847
516
278
361
41
823
2,747
25,1596,000
17,348
2,131
196
79
74
259
26,08946,7296,000
18,950
1,823
880
85
74
266
28,081
53,2408,895
7,276
19,250(2,488)32,933

8,895
7,266
19,851(2,462)33,551

467

1,670

765
180
1,413
3,949
38,29685,025

1,073
452
3,196
4,549
41,297
94,537

DKS Co. Ltd. (4461)(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated statement of income)(Millions of yen)
Fiscal year ended March 31,
2023

Fiscal year ended March 31,
2024

65,081
52,12012,96063,11849,733
13,385

4,198
7,574
11,773
1,186

4,083
7,223
11,307
2,077

10
105

11
138

36

–

144
35
89
421

163
35
170
520

199
37

258
37

–

3

170
407
1,200

237
537
2,060

50
50

408
408

786
102
137
1,027
224
459
(185)
274
(49)
357
(407)

66
58
–
125
2,343
485
214
700
1,642
468
1,174

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Rental income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Corporate bond interest
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on disposal of non-current assets
Amortization of goodwill
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent-9-DKS Co. Ltd. (4461)(Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended March 31,
2023

Fiscal year ended March 31,
2024

(49)

1,642

286
356
(238)

1,203
562
268

21

(20)

425
375

2,013
3,656

(110)

2,957

486

698

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 10 -

DKS Co. Ltd. (4461)(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of period

Capital surplus

Retained earnings

7,278

20,498

8,895

Total shareholders’equityTreasury shares(1,021)35,650Changes during period
Dividends of surplus

(840)

(840)

Profit (loss) attributable toowners of parent

(407)

(407)

Purchase of treasury shares
Disposal of treasury shares(2)(1,500)(1,500)33

31

Capital increase of
consolidated subsidiaries–

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period–(2)(1,248)(1,466)(2,717)

8,895

7,276

19,250(2,488)32,933

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period

181

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

507

427

Total accumulated
othercomprehensive
income1,116

Non-controllinginterests

Total net assets

3,616

40,383

Changes during period
Dividends of surplus(840)

Profit (loss) attributable toowners of parent(407)

Purchase of treasury shares(1,500)

Disposal of treasury shares

31

Capital increase of
consolidated subsidiaries–

Net changes in items otherthan shareholders’ equity

286

257

(246)

296

333

630

Total changes during period

286

257

(246)

296

333

(2,087)

Balance at end of period

467

765

180

1,413

3,949

38,296- 11 -

DKS Co. Ltd. (4461)

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of period

Capital surplus

Retained earnings

7,276

19,2508,895

Total shareholders’equityTreasury shares(2,488)32,933

Changes during period
Dividends of surplus

(573)

(573)

Profit (loss) attributable toowners of parent

1,174

1,174

Purchase of treasury shares
Disposal of treasury shares(5)

Capital increase of
consolidated subsidiaries

(4)

(0)

(0)

27

21
(4)

Net changes in items otherthan shareholders’ equity
–

(9)

601

26

617

8,895

7,266

19,851(2,462)33,551

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period

467

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

765

180

Total accumulated
othercomprehensive
income1,413

Non-controllinginterests

Total net assets

3,949

38,296

Changes during period
Dividends of surplus(573)

Profit (loss) attributable toowners of parent

1,174

Purchase of treasury shares(0)

Disposal of treasury shares

21

Capital increase of
consolidated subsidiaries(4)

Net changes in items otherthan shareholders’ equity

1,203

307

271

1,783

599

2,382

Total changes during period

1,203

307

271

1,783

599

3,000

Balance at end of period

1,670

1,073

452

3,196

4,549

41,297- 12 -

DKS Co. Ltd. (4461)(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended March 31,
2023

Fiscal year ended March 31,
2024

224
3,295
0
213

2,343
3,216
1
–

(2)

(6)

(249)
(115)
199
37

(129)
(150)
258
37

(36)

3

786

66

102

58

(50)
(722)
(1,362)
(321)
(442)
1,556
240
(234)
(838)
724

(408)
(3,199)
2,684
2,150
509
7,436
168
(296)
(216)
7,091

(78)
78
(2,834)
10
(2)
70

(178)
80
(2,502)
–
(2)
596

–

141

1
(128)
(2,883)3(145)(2,008)174
7,700(5,879)(531)(1,500)(840)(152)(1,030)

(293)
8,603
(5,534)
(451)
(0)
(573)
(103)
1,646

89

165

(3,099)12,151
9,051

6,895
9,051
15,947

Cash flows from operating activities
Profit before income taxes
Depreciation
Bad debt expenses
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Corporate bond interest
Share of loss (profit) of entities accounted for using
equity method
Impairment losses
Loss (gain) on disposal of property, plant andequipment
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from withdrawal of investments inaffiliated companies
Proceeds from collection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) 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 period
Cash and cash equivalents at end of period- 13 -

DKS Co. Ltd. (4461)(5) Notes to Consolidated Financial Statements(Notes on premise of going concern)
Not applicable.
(Notes on significant accounting estimate)
The following items are recorded in the consolidated financial statements for the fiscal year ended
March 31, 2024 based on accounting estimates and may have a significant impact on the consolidated
financial statements for the fiscal year ending March 31, 2025.
Recoverability of deferred tax assets(1) Amount recorded in consolidated financial statements for the fiscal year ended March 31, 2024
(Millions of yen)

Deferred tax assets (before offsetting with deferred tax
liabilities)

As of March 31, 2023

As of March 31, 2024

1,324

1,200

(2) Information on significant accounting estimates for identified items
At the end of the fiscal year under review, we scheduled the timing of the reversal of deductible
temporary differences and tax loss carryforwards based on future taxable income estimatedaccording to future business plans and recorded deferred tax assets to reflect the extent of theireffect on reducing the future tax burden.
In this business plan, the main assumptions include the sales volume forecast based on
projected demand in the product markets to which the Company belongs.
These estimates may be affected by fluctuations in uncertain economic conditions in the future.
If the actual timing and amount of taxable income generated differ from the estimates, it could
have a material effect on the amount of deferred tax assets in the consolidated financial
statements for the next fiscal year.
(Segment information, etc.)
a. Segment information
1. Description of Reportable Segments
Our reportable segments are subject to regular review by the Board of Directors to determine
resource allocation decisions and assess performance for which separate financial information
is available from constituent units of the Company.
We have six reportable segments, that is, “Surfactants,” “Amenity Materials,” “Polyurethane
Materials,” “Functional Materials,” “Electronic Device Materials” and “Life Sciences,”
depending on the composition and manufacturing method of the product.
“Surfactants” manufactures and sells nonionic surfactants, anionic surfactants, cationicsurfactants, amphoteric surfactants, etc. “Amenity Materials” manufactures and sells sucrose
fatty acid esters, cellulose polymers (CMC), vinyl polymer materials, acrylic polymer
materials, etc. “Polyurethane Materials” manufactures and sells polyether polyols, urethane
prepolymers, urethane systems, etc. “Functional Materials” manufactures and sells radcure
resin materials, waterborne polyurethane resins, flame retardants, amide-based lubricants, etc.
“Electronic Device Materials” manufactures and sells ionic liquids, conductive pastes forelectronic components, pellets for injection molding, etc. “Life Sciences” manufactures andsells health foods (TENCHUKASOU, I. Japonica-Bombyx Fungus, Sudachin, etc.).

- 14 -

DKS Co. Ltd. (4461)

2. Explanation of measurements of sales, profit (loss), asset, and other items for each reportablesegment
The method of accounting for the reported business segments is in line with the accounting
policies adopted to prepare the consolidated financial statements.
Profit for the reportable segment is based on operating income.
3. Disclosure of sales, profit (loss), asset, and other items for each reportable segment
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segments

Amountrecorded in
Reconcilingconsolidated
items
financial(Note) 3
statements(Note) 1

Functional
Materials

Electronic
DeviceMaterials

8,761

22,574

6,191

497

65,081–65,081

8,079

8,761

22,574

6,191

497

65,081–65,081

–

–

–

–

–

–

–

–

–
65,081

Surfactants

Amenity
Materials

Revenue fromcontracts withcustomers

18,976

8,079

Revenues fromexternal customers

18,976

Transactions withother segments

Polyurethane
Materials

Life Sciences

Total

Net sales

Total

18,976

8,079

8,761

22,574

6,191

497

65,081–

Segment profit (loss)

1,749

(1)

(247)

281

139

(734)

1,186

–

1,186

Segment assets

18,120

9,361

9,284

28,732

3,288

1,133

69,92015,10485,025

Depreciation(Note) 2

748

500

534

1,324

86

57

3,250

44

3,295

Amortization of
goodwill

–

–

–

–

–

213

213

–

213

Investments inentities accounted forusing equity method

301

–

–

339

–

–

640

–

640

Increase in property,
plant and equipment
and intangible assets

1,012

604

28

1,357

151

18

3,172

–

3,172

Other items- 15 -

DKS Co. Ltd. (4461)

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable segments

Amountrecorded in
Reconcilingconsolidated
items
financial(Note) 3
statements(Note) 1

Functional
Materials

Electronic
DeviceMaterials

8,870

21,4395,456

392

63,118–

63,118

8,430

8,870

21,4395,456

392

63,118–

63,118

–

–

–

–

–

–

–

–

–

18,529

8,430

8,870

21,4395,456

392

63,118–

63,118

Surfactants

Amenity
Materials

Revenue fromcontracts withcustomers

18,5298,430

Revenues fromexternal customers

18,529Transactions withother segments

Polyurethane
Materials

Life Sciences

Total

Net sales

Total
Segment profit (loss)

1,816

459

(243)

1,003

(43)

(914)

2,077

–

2,077

Segment assets

17,844

9,920

8,530

29,693

3,786

1,239

71,01523,521

94,537

810

499

368

1,313

107

73

3,171

44

3,216

–

–

–

–

–

–

–

–

–

Investments inentities accounted forusing equity method

304

–

–

161

–

–

465

–

465

Increase in property,
plant and equipment
and intangible assets

1,021

519

147

876

76

82

2,724

–

2,724

Other items
Depreciation (Note)
2
Amortization of
goodwill

Notes: 1. Total amount of profit or loss in reportable segments and operating income in the consolidated statement ofincome coincide.
2. Depreciation includes depreciation expenses associated with long-term prepaid expenses.
3. The adjustment amount is surplus assets under management (cash and deposits), long-term investment funds(investment securities) and assets related to the administrative department at the filing company.

- 16 -

DKS Co. Ltd. (4461)

b. Information associated with reportable segments
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
1. Information for Each Product or Service(Millions of yen)
Surfactants

Amenity
Materials

18,976

8,079

Revenues
from externalcustomers

Polyurethane
Materials

Functional
Materials

Electronic
DeviceMaterials

Life
Sciences

8,761

22,574

6,191

497

Total

65,081

2. Information for Each Region(1) Net sales(Millions of yen)
Japan

Asia
49,574

Notes:

Other

Total

13,5781,927

65,081

1. Net sales is classified by country or region based on customers’ location.
2. Countries and regions are segmented by geographical proximity.
3. Major countries or regions included in each category:(i) Asia
Taiwan, China, South Korea, Indonesia(ii) Other regions
North America, Europe(2) Property, plant and equipment(Millions of yen)Japan

Taiwan26,548Notes:

Other
5,964

Total
229

32,743

1. Property, plant and equipment is classified by country or region based on companies’ location.
2. Major countries or regions included in “Other”:
China, Indonesia, Netherlands

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)
1. Information for Each Product or Service(Millions of yen)

Revenues
from externalcustomers

Surfactants

Amenity
Materials

18,5298,430

Polyurethane
Materials

Functional
Materials

Electronic
DeviceMaterials

Life
Sciences

8,870

21,4395,456392- 17 -

Total

63,118

DKS Co. Ltd. (4461)

2. Information for Each Region(1) Net sales(Millions of yen)
Japan

Asia
48,815

Notes:

Other
12,314

Total
1,988

63,118

1. Net sales is classified by country or region based on customers’ location.
2. Countries and regions are segmented by geographical proximity.
3. Major countries or regions included in each category:(i) Asia
Taiwan, China, South Korea, Indonesia(ii) Other regions
North America, Europe(2) Property, plant and equipment(Millions of yen)Japan

Taiwan25,837
Notes:

Other
6,411

Total
218

32,467

1. Property, plant and equipment is classified by country or region based on companies’ location.
2. Major countries or regions included in “Other”:
China, Indonesia, Netherlandsc. Disclosure of impairment losses on non-current assets for each reportable segment
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Surfactants

Impairment
losses–Amenity Polyurethane Functional
Materials
Materials
Materials–

786

Electronic
DeviceMaterials–

UnallocatedLifeamounts andSciences
elimination

–

–

–

Total

786

(Significant impairment losses related to non-current assets)
In the Polyurethane Materials segment, non-current assets belonging to the Company’s asset groupin the Polyurethane Materials segment declined due to delays in product price revision activities
and new product development activities in response to soaring raw material prices. In conjunction
with this, the book value of the assets was reduced to the recoverable amount, and that amount wasrecorded under extraordinary losses as an impairment loss. The recoverable amount of this asset
group is measured by utility value, which is zero because no future cash flows are expected.
Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Millions of yen)
Surfactants

Impairment
losses–Amenity Polyurethane Functional
Materials
Materials
Materials–––- 18 -

Electronic
DeviceMaterials
66

UnallocatedLifeamounts andSciences
elimination
–

–

Total

66

DKS Co. Ltd. (4461)(Significant impairment losses related to non-current assets)
In the Functional Materials segment, the book value of the business operated by Dai-ichi CeramoCo., Ltd. was reduced to the recoverable amount and the amount reduced is recorded under
extraordinary losses because the business has continuously posted negative earnings from operating
activities. The recoverable amount is measured by utility value, which is zero because no future
cash flows are expected within the estimated period.
d. Amortization and unamortized balance of goodwill for each reportable segment
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Surfactants

Amenity Polyurethane Functional
Materials
Materials
Materials

Electronic
DeviceMaterials

UnallocatedLifeamounts andSciences
elimination

Total

Amortizationin the fiscal
year

–

–

–

–

–

213

–

213

Balance at
end of period

–

–

–

–

–

–

–

–

Note: Amortization in the fiscal year under review in the Life Sciences segment includes amortization in accordancewith the provisions of paragraph (32) of the “Practical Guidelines on Accounting Standards for Capital
Consolidation Procedures in Preparing Consolidated Financial Statements” (final revision of JICPA Accounting
Practice Committee Statement No. 7, October 28, 2022).

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)
Not applicable.
(Per share information)(Yen)
Fiscal year ended March 31, 2023
Net assets per share
Basic earnings (loss) per share

Fiscal year ended March 31, 2024

3,593.49

3,839.89(41.87)122.81

Notes: 1. The amount of diluted earnings per share is not provided because there are no potential shares.
2. The basis for calculation of net assets per share is as follows:(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

Total net assets

38,296

41,297

Deduction from total net assets

3,949

4,549

(Non-controlling interests)(3,949)(4,549)Net assets attributable to ordinary
shares at the end of the period

34,34636,747

Number of ordinary shares at the endof period used for calculating theamounts of net assets per share(Thousands of shares)

9,558

9,569

- 19 -

DKS Co. Ltd. (4461)

3. The basis for calculation of basic earnings (loss) per share is as follows:(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

(407)

1,174

–

–

Profit (loss) attributable to ownersof parent for ordinary shares

(407)

1,174

Average number of ordinary shares
outstanding during the period(Thousands of shares)

9,737

9,566

Basic earnings (loss) per share
Profit (loss) attributable to ownersof parent
Amounts not attributable toordinary shareholders(Significant events after reporting period)
Not applicable.

- 20 -