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.

July 30, 2024

Consolidated Financial Results for the Three Months Ended June 30, 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 to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results briefing:

—
Yes
None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024, toJune 30, 2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes)

Operating income

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary income% Millions of yen% Millions of yen%

June 30, 2024

17,531

26.3

1,058

−

1,194

−

608

–

June 30, 2023

13,884(10.1)

(572)

−

(557)

−

(477)

–

Note: Comprehensive income

For the three months ended June 30, 2024
For the three months ended June 30, 2023

Basic earnings per
share
Three months ended
June 30, 2024
June 30, 2023

¥1,480 million[−%]¥16 million [(97.2) %]Diluted earnings
per share

Yen

Yen

–
–

63.63
(49.96)(2) Consolidated financial position
Total assets
As ofJune 30, 2024
March 31, 2024
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

94,55594,537

42,10941,29739.6
38.9

3,911.05
3,839.89

EquityAs of June 30, 2024
As of March 31, 2024

¥37,428 million¥36,747 million

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarterend

Yen

Yen

Fiscal year ended March 31,
2024
Fiscal year ending March 31,
2025–

Third quarterend

Fiscal year-end

Yen

Total

Yen

Yen

20.00

–

45.00

65.00

35.00

−

35.00

70.00

–

Fiscal year ending March 31,
2025 (Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

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

Net sales

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

33,000

13.0

1,500

−

1,400

−

800

–

83.60

Full year

70,000

10.9

4,000

92.6

3,900

89.3

2,000

70.2

208.99%Millions ofyen%Millions of
yen

%

Yen

Note: Revisions to the earnings forecasts most recently announced: None

* Notes(1) Significant changes in the scope of consolidation during the period: None
Newly included: – companies
Excluded:– companies(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to reasons other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note: For details, kindly refer to “2. Quarterly Consolidated Financial Statements and Notes, (3)Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)” inpage 9 of attached materials.
(4) Number of issued shares (ordinary shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

10,684,321 shares

As of March 31, 2024

10,684,321 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024

1,114,393 shares

As of March 31, 2024

1,114,373 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Three months ended June 30, 2024

9,569,935 shares

Three months ended June 30, 2023

9,557,771 shares

* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or an audit firm: None.
* Proper use of earnings forecasts, and other special matters(Notice concerning forward-looking statements)
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 ................................................................................................................. 2(1) Overview of Quarterly Operating Results .......................................................................................... 2(2) Overview of Financial Position .......................................................................................................... 4(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information............... 4
2. Quarterly Consolidated Financial Statements and Notes .......................................................................... 5(1) Quarterly Consolidated Balance Sheet ............................................................................................... 5(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income ...................................................................................................................... 7
Quarterly consolidated statement of income (cumulative) ................................................................. 7
Quarterly consolidated statement of comprehensive income (cumulative) ........................................ 8(3) Notes to Quarterly Consolidated Financial Statements ...................................................................... 9(Notes on premise of going concern) ................................................................................................. 9(Notes when there are significant changes in amounts of equity) ...................................................... 9(Changes in accounting policies)........................................................................................................ 9(Notes on quarterly consolidated statement of cash flow).................................................................. 9(Segment information, etc.) .............................................................................................................. 10(Notes on revenue recognition) ........................................................................................................ 10- 1 -DKS Co. Ltd. (4461)

1. Overview of Operating Results(1) Overview of Quarterly Operating Results
During the three months ended June 30, 2024, the Japanese economy hads been on a gradual path ofrecovery against a backdrop of improvements in employment rates and earnings. On the other hand, theoutlook remains uncertain due to concerns about a global economic recession caused by prolonged
geopolitical risks and monetary tightening in the U.S. and EU.
In this environment, the recovery of market conditions, growth in electronic materials for high-end
servers, and the bottoming out of sluggish demand enabled the Company to break out of the severe
earnings environment of the previous fiscal year and land on higher sales and profits compared to thesame period last year.
FY2024 is the final year of our five-year medium-term management plan “FELIZ 115”. In the focusedareas of Electronics & Information, Environment & Energy, and Life Sciences, we will strengthen oursales proposal and R&D capabilities and aim to achieve the target values by realizing new developments
as early as possible.
Concerning the results for the three months ended June 30, 2024, net sales amounted to ¥17,531 million(up 26.3% year on year), due to the significant growth of radcure resin materials in the Functional
Materials segment and increased sales in the Surfactants segment and Amenity Materials segment.
As for profit and loss there was an operating income of ¥1,058 million (an operating loss of ¥572 million
in the same period of the previous fiscal year), an ordinary income of ¥1,194 million (an ordinary loss of¥557 million in the same period of the previous fiscal year), and a profit attributable to owners of parentof ¥608 million (a loss attributable to owners of parent of ¥477 million in the same period of the previous
fiscal year) , due to sales growth mainly in the Functional Materials segment.
Results by segment are as follows.
Surfactants
Net sales in the Surfactants segment were generally increased significantly.
In Japan, sales were firm in IT and electronics applications and rubber and plastic applications, andsales for soap and detergent applications increased significantly.
Overseas, sales were weak in rubber and plastic applications and paint and coloring agent
applications.
As a result, net sales in this segment were ¥4,886 million (up 14.0% year on year).
Operating income was ¥418 million (up 82.3% year on year) due to increased net sales.

Amenity Materials
Net sales in the Amenity Materials segment were generally increased significantly.
In Japan, sales of vinyl polymers were firm for rubber and plastic applications, as were sales ofcellulose polymers for energy and environmental applications. Sales of sucrose fatty acid esters
were firm in food applications.
Overseas, sales of sucrose fatty acid esters were firm in food applications and personal care(cosmetics) applications.
As a result, net sales in this segment were ¥2,306million (up 17.1% year on year).
Operating income was ¥221 million (operating loss of ¥25 million in the same period of theprevious fiscal year) due to increased net sales.

- 2 -DKS Co. Ltd. (4461)

Polyurethane Materials
Net sales in the Polyurethane Materials segment were generally firm.
Sales of civil engineering chemicals related to public works were sluggish while sales ofenvironmentally friendly synthetic lubricants related to CFC regulations were firm. Sales offunctional polyurethane were firm in IT and electronics applications.
As a result, net sales in this segment were ¥2,228 million (up 3.6% year on year).
Operating loss was ¥77 million (operating loss of ¥152 million in the same period of the previous
fiscal year).

Functional Materials
Net sales in the Functional Materials segment were generally increased significantly.
In Japan, sales of flame retardants for rubber and plastic applications were sluggish while sales ofwaterborne polyurethane for textile applications and IT and electronics applications were firm.
Sales of radcure resin materials for IT and electronics applications were increased significantly.
Overseas, sales of radcure resin materials for IT and electronics applications were increased
significantly as did sales of flame retardants for rubber and plastic applications.
As a result, net sales in this segment were ¥6,525 million (up 64.7% year on year)
Operating income was ¥796 million (operating loss of ¥333 million in the same period of theprevious fiscal year) due to increased net sales.

Electronic Device Materials
Net sales in the Electronic Device Materials segment were generally firm.
Sales of ionic liquids for display applications and conductive pastes for solar cell applications werefirm.
As a result, net sales in this segment were ¥1,504 million (up 5.7% year on year).
Operating loss was ¥129 million (operating loss of ¥36 million in the same period of the previous
fiscal year) due to operating expenses, mainly R&D costs, despite firm sales.

Life Sciences
Net sales in the Life Sciences segment decreased by ¥9 million to ¥79 million (down 10.9% year
on year).
The OEM business for pharmaceutical additives and health foods made through the concentrationand pulverization of extracts from natural materials was sluggish.
Operating loss was ¥171 million (operating loss of ¥253 million in the same period of the previous
fiscal year) due to a decrease in operating expenses, despite weak sales.

- 3 -DKS Co. Ltd. (4461)(2) Overview of Financial Position(Assets)
Current assets as of June 30, 2024 were ¥53,178 million, down ¥436 million from the end of the previous
fiscal year. This was primarily due to a decrease of ¥733 million in cash and deposits, and a decrease of¥499 million in inventories such as merchandise and finished goods, despite an increase of ¥976 million
in notes and accounts receivable - trade. Non-current assets totaled ¥41,376 million, up ¥454 million
from the end of the previous fiscal year. This was primarily due to an increase of ¥462 million in
investment securities.
As a result, total assets amounted to ¥94,555 million, up ¥17 million from the end of the previous fiscal
year.
(Liabilities)
Current liabilities as of June 30, 2024, were ¥25,827 million, up ¥668 million from the end of the previous
fiscal year. This was primarily due to a ¥431 million increase in short-term borrowings and a ¥737 million
increase in other (current liabilities) such as accounts payable-other, despite a decrease of ¥348 million
notes and accounts payable - trade. Non-current liabilities totaled ¥26,618 million, down ¥1,462 million
from the end of the previous fiscal year. This was primarily due to a decrease of ¥1,605 million in longterm borrowings.
As a result, total liabilities at the end of the period under review were ¥52,446 million, down ¥794 million
from the end of the previous fiscal year.
(Net assets)
Total net assets as of June 30, 2024 were ¥42,109 million, up ¥811 million from the end of the previous
fiscal year. This was primarily due to a profit attributable to owners of parent of ¥608 million anddividends of surplus of ¥430 million resulting in increase retained earnings of ¥178 million, combinedwith increases of ¥310 million in valuation difference on available-for-sale securities, of ¥203 million inforeign currency translation adjustment, and of ¥130 million in non-controlling interests.
As a result, the equity ratio came to 39.6% (38.9% as of the end of the previous fiscal year).

(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
Consolidated financial results forecast has not changed from the forecast for the full year announced asof May 14, 2024.
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, the actual results for the Company may significantly differ due to various factors.

- 4 -DKS Co. Ltd. (4461)

2. Quarterly 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 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, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
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- 5 -As of June 30, 2024

16,126
18,29915,392
19,275

2,364

2,602

11,029
20
3,091
403
2,282
(2)
53,614

10,355
20
3,266
516
1,751
(2)
53,178

12,583
5,717
939
9,948
2,115
1,162
32,467290

12,4405,632
1,026
10,031
2,028
1,335
32,495
272

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

6,104
10
326
126
1,603
438
(1)
8,608
41,376
94,555

DKS Co. Ltd. (4461)(Millions of yen)
As of March 31, 2024
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- 6 -As of June 30, 2023

11,979
562
7,847
516
278
361
41
823
2,747
25,159

11,630
602
8,279
511
313
379
10
615
3,484
25,8276,000
18,950
1,823
880
85
74
266
28,081
53,2406,000
17,344
1,719
1,125
84
74
269
26,61852,446

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

8,895
7,266
20,029(2,462)33,729

1,670

1,980

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

1,276
441
3,699
4,680
42,10994,555

DKS Co. Ltd. (4461)(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly consolidated statement of income (cumulative)(Millions of yen)Three months ended
June 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodRental income
Foreign exchange gains
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 (loss)
Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses
Profit (loss) 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- 7 -Three months ended
June 30, 2024

13,884
11,583
2,300
2,872
(572)

17,531
13,450
4,081
3,022
1,058

1
8

7
5

−

9

8
72
21
113

8
184
20
235

53
9

61
9

1

−

34
99
(557)

28
99
1,194

19
19
(577)
63
(218)
(155)
(422)
55
(477)

10
10
1,184
199
118
318
865
256
608

DKS Co. Ltd. (4461)

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2023
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- 8 -Three months ended
June 30, 2024

(422)

865

332
106
(8)

310
306
(10)

8

9

438
16

614
1,480

(78)

1,111

95

368

DKS Co. Ltd. (4461)(3) Notes to Quarterly Consolidated Financial Statements(Notes on premise of going concern)
Not applicable.
(Notes when there are significant changes in amounts of equity)
Not applicable.

(Changes in accounting policies)(Application of "Accounting Standard for Current Income Taxes", etc.)
Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022, AccountingStandards Board of Japan ;"Revised Accounting Standard") and others from the beginning of the firstquarter of the current consolidated fiscal year.
With respect to the revision concerning the classification of income taxes (taxation on othercomprehensive income), the transitional treatment stipulated in the proviso of "Revised AccountingStandard" 20-3 and the proviso of Paragraph 65-2 (2) of the Implementation Guidance on Tax EffectAccounting (ASBJ Guidance No. 28, March 22, 2024, Accounting Standards Board of Japan;"Revised
Guidance" is followed. There is no effect of this change in accounting policy on the quarterly
consolidated financial statements.
With respect to the revision related to the revised treatment in consolidated financial statements of thedeferral for tax purposes of gains or losses arising from the sale of shares of subsidiaries and othersecurities among consolidated companies, the "Revised Accounting Standard" was applied from the
beginning of the first quarter of the current consolidated fiscal year. The change in accounting policy has
been applied retrospectively, and the quarterly consolidated financial statements and consolidated
financial statements for the previous year's first quarter and the previous fiscal year have been preparedon a retrospective basis. The change in accounting policy has no effect on the quarterly consolidated
financial statements for the three months ended June 30, 2024 and the consolidated financial statements
for the year ended March 31, 2024.

(Notes on quarterly consolidated statement of cash flow)
The consolidated statement of cash flow for the first quarter of the current fiscal year has not been
prepared. Depreciation expenses (including amortization expenses related to intangible fixed assets andlong- term prepaid expenses) for the first quarter of the current fiscal year are as follows.
(Millions of yen)Three months ended
June 30, 2023
Depreciation

772

- 9 -

Three months ended
June 30, 2024
798

DKS Co. Ltd. (4461)(Segment information, etc.)
Segment information
I

First three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
Disclosure of sales and profit (loss) for each reportable segment and information on breakdownof revenues(Millions of yen)
Surfactants

Amenity
Materials

Polyurethane
Materials

Functional
Materials

Electronic
DeviceMaterials

Revenue from contracts
with customers

4,287

1,969

2,151

3,961

1,423

89

13,884

Revenues from externalcustomers

4,287

1,969

2,151

3,961

1,423

89

13,884

Transactions with othersegments

–

–

–

–

–

–

–

4,287

1,969

2,151

3,961

1,423

89

13,884

229

(25)

(152)

(333)

(36)

(253)

(572)

Life Sciences

Total

Net sales

Total
Segment profit (loss)
operating income (loss)

Note: Total amount of profit or loss in reportable segments and operating income in the quarterly
consolidated statement of income coincide.

II First three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
Disclosure of sales and profit (loss) for each reportable segment and information on breakdownof revenues(Millions of yen)
Surfactants

Amenity
Materials

Polyurethane
Materials

Functional
Materials

Electronic
Life Sciences
Device Materials

Revenue from contracts
with customers

4,886

2,306

2,228

6,525

1,504

79

17,531

Revenues from externalcustomers

4,886

2,306

2,228

6,525

1,504

79

17,531

Transactions with othersegments

–

–

–

–

–

–

–

4,886

2,306

2,228

6,525

1,504

79

17,531

418

221

(77)

796

(129)

(171)

1,058

Total

Net sales

Total
Segment profit (loss)
operating income (loss)

Note: Total amount of profit or loss in reportable segments and operating income in the quarterly
consolidated statement of income coincide.
(Notes on revenue recognition)
Information on revenue from contracts with customers is as stated in Notes (Segment information,etc.).

- 10 -