February 7, 2022

Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2022 (FY2021)(Nine Months Ended December 31, 2021)[Japanese GAAP]
Company name:
ZUKEN Inc.
Listing: Tokyo Stock Exchange, First Section
Stock code:
6947
URL: https://www.zuken.co.jp
Representative:
Jinya Katsube, President and Representative Director
Contact:
Susumu Yoshida, General Manager of Finance Department
Tel: +81-45-942-1511
Scheduled date of filing of Quarterly Report:
February 9, 2022
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
None
Holding of quarterly financial results meeting:None(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter Ended December 31, 2021
(April 1, 2021 – December 31, 2021)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen%
Nine months ended
Dec. 31, 2021
22,39013.1
Dec. 31, 2020
19,795(3.9)
Note: Comprehensive income (Millions of yen)

Net income per share

Millions of yen

Profit attributable toowners of parent

Ordinary profit

Millions of yen

%

2,462
67.1
2,683
63.5
2,394
1,473 (34.0)
1,641 (29.6)
1,079
Nine months ended Dec. 31, 2021:(147) (-%)
Nine months ended Dec. 31, 2020:
2,592 (down 5.4%)%

Millions of yen

%

121.7
(37.6)

Diluted net income per
share

Yen
Yen
Nine months ended
Dec. 31, 2021
103.00Dec. 31, 2020
46.45
Note: Effective from the beginning of the first quarter of the fiscal year ending on March 31, 2022, Zuken applied the AccountingStandard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. All figures for the nine months ended
December 31, 2021 incorporate this accounting standard.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Shareholders’ equity ratio

Millions of yen%

As of Dec. 31, 2021
56,26037,928
66.8
As of Mar. 31, 2021
57,16838,842
67.4
Reference: Shareholders’ equity (Millions of yen)
As of Dec. 31, 2021: 37,557
As of Mar. 31, 2021: 38,505
Note: Effective from the beginning of the first quarter of the fiscal year ending on March 31, 2022, Zuken applied the AccountingStandard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. All figures as of December 31, 2021
incorporate this accounting standard.

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2021
15.00
Fiscal year ending Mar. 31, 2022
16.00
Fiscal year ending Mar. 31, 2022 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

-

15.00

30.00

16.00

32.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)
Net sales
Millions of yen

Operating profit%

Millions of yen

Ordinary profit(Percentages represent year-on-year changes)
Profit attributable to
Net income perowners of parent
share% Millions of yen%

Millions of yen%

Yen

Full year
31,000
7.6
3,500
21.0
3,600
Note: Revisions to the most recently announced consolidated forecast: None

14.2

3,200

49.7

137.64

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scopeof consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements(a) Changes in accounting policies due to revisions in accounting standards, others:

Yes(b) Changes in accounting policies other than (a) above:None(c) Changes in accounting-based estimates:

None(d) Restatements:
None
Note: Please refer to “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial
Statements, Changes in Accounting Policies” on page 7 for further information.

(4) Number of outstanding shares (common stock)(a) Number of shares outstanding at the end of the period (including treasury shares)
As of Dec. 31, 2021:

23,267,169 shares

As of Mar. 31, 2021:

23,267,169 shares

As of Mar. 31, 2021:

18,026 shares(b) Number of treasury shares at the end of the period
As of Dec. 31, 2021:

18,364 shares(c) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2021:

23,248,975 shares

Nine months ended Dec. 31, 2020:

23,249,342 shares* The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms .
* Cautionary statement with respect to forward-looking statements and other special items
Forecasts of future performance in this report are based on assumption judged to be valid and information available to theCompany’s management at the time this report was prepared, but are not promises by the Company regarding future performance.
Actual results may differ substantially from the forecasts for a number of reasons. Please refer to “1. Qualitative Information on
Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements”
on page 2 for forecast assumptions and notes of caution for usage.

ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021

Contents of Attachments
1.

Qualitative Information on Quarterly Consolidated Financial Performance ........................................................ 2(1) Explanation of Results of Operations ................................................................................................................ 2(2) Explanation of Financial Position ...................................................................................................................... 2(3) Explanation of Consolidated Forecast and Other Forward-looking Statements ................................................. 2

2.

Quarterly Consolidated Financial Statements and Notes ..................................................................................... 3(1) Quarterly Consolidated Balance Sheet .............................................................................................................. 3(2) Quarterly Consolidated Statements of Income and Comprehensive Income ...................................................... 5
Quarterly Consolidated Statement of Income ...................................................................................................... 5
Quarterly Consolidated Statement of Comprehensive Income ............................................................................. 6(3) Notes to Quarterly Consolidated Financial Statements ...................................................................................... 7
Going Concern Assumption................................................................................................................................. 7
Significant Changes in Shareholders’ Equity....................................................................................................... 7
Changes in Accounting Policies .......................................................................................................................... 7
Segment Information ........................................................................................................................................... 8
Revenue Recognition .......................................................................................................................................... 83.

Supplementary Information ................................................................................................................................. 9(1) Sales and Orders ................................................................................................................................................ 9

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ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year, the economy recovered slowly as economic activities resumed.
However, the overall outlook of the economy remained uncertain due to the spread of COVID-19 variants, shortagesof semiconductors and other factors. Manufacturers in the electronics, automotive and industrial equipment sectors
are the main customers of the Zuken Group, and many companies in these sectors continued to make substantial IT
investments and overall capital expenditures continued to recover.
Net sales in the first nine months increased to 22,390 million yen, 13.1% higher than one year earlier and a newrecord high for the first nine months of a fiscal year. Sales in all solution categories increased. Sales of the“E3.series,” a wire harness design system, were particularly strong and contributed to a significant increase in salesof Circuit design solutions.
Earnings were higher because of the increase in sales. Operating profit was 2,462 million yen, 67.1% higher than
one year earlier, and ordinary profit was up 63.5% to 2,683 million yen. In addition, Zuken booked an extraordinary
loss in connection with the buyout of the retirement pension plan of a U.K. subsidiary. But an extraordinary gainon sale of shares held for policy purposes offset the loss and profit attributable to owners of the parent was up
121.7% to 2,394 million yen. Income was also record high at all profit levels.
(2) Explanation of Financial Position
Total assets at the end of the third quarter of the current fiscal year decreased 908 million yen from the end of theprevious fiscal year to 56,260 million yen.
Current assets increased 3,101 million yen. The main factors include increases of 4,282 million yen in cash anddeposits and 895 million yen in other current assets due to an increase in prepaid expenses, and a decrease of 2,564
million yen in notes and accounts receivable-trade. Non-current assets decreased 4,009 million yen. The main
factors include a decrease of 3,879 million yen in investments and other assets primarily due to a decrease ininvestment securities.
Total liabilities increased 5 million yen from the end of the previous fiscal year to 18,331 million yen. Current
liabilities increased 1,760 million yen. There were increases of 1,414 million yen in income taxes payable and 1,205
million yen in advances received, and decreases of 429 million yen in accounts payable-trade and 353 million yen
in provision for bonuses. Non-current liabilities decreased 1,754 million yen. There were decreases of 1,031 million
yen in other current liabilities due to a decrease in deferred tax liabilities and 722 million yen in retirement benefit
liability.
Net assets decreased 913 million yen from the end of the previous fiscal year to 37,928 million yen, and theshareholders’ equity ratio was 66.8%.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
We currently maintain the consolidated forecast for the fiscal year ending March 31, 2022 that was released on
November 8, 2021. Many of the Zuken Group’s customers use a fiscal year that ends in March. As a result, alarge percentage of the deliveries and final acceptances of our products occur in March each year. Consequently,
sales and profits tend to be disproportionately concentrated in the fourth quarter in each fiscal year.

2

ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance SheetFY2020(As of Mar. 31, 2021)(Thousands of yen)
Third quarter of FY2021(As of Dec. 31, 2021)

AssetsCurrent assets
Cash and deposits

21,693,586

25,976,480

Notes and accounts receivable-trade

6,806,824

4,242,286

Securities

6,700,000

6,700,000

Merchandise and finished goods

466,069

719,131Work in process

101,913343,006

2,158

1,819

Other

3,525,251

4,421,119

Allowance for doubtful accounts(19,098)(26,124)

39,276,705

42,377,719

Buildings and structures, net

2,760,128

2,643,754

Land

3,015,103

3,015,103

Raw materials and supplies

Total current assets
Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment

488,222539,501

6,263,454

6,198,359

Intangible assets
Goodwill

656,516554,811

Other640,839678,266

1,297,355

1,233,078

9,114,007

3,127,230

Other

1,216,553

3,323,682

Total investments and other assets

10,330,561

6,450,913

17,891,371

13,882,351

57,168,076

56,260,070

Total intangible assets
Investments and other assets
Investment securities

Total non-current assets
Total assets

3

ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021

FY2020(As of Mar. 31, 2021)(Thousands of yen)
Third quarter of FY2021(As of Dec. 31, 2021)

Liabilities
Current liabilities
Accounts payable-trade

1,166,026

736,033

Income taxes payable

578,485

1,993,445

Advances received

7,688,741

8,894,336

Provision for bonuses

925,619

571,948

Other provisions

110,116

71,230Other2,181,249

2,143,405

Total current liabilities

12,650,238

14,410,398

Retirement benefit liability

4,457,677

3,735,028

Other

1,218,060

186,299

Non-current liabilities

Total non-current liabilities
Total liabilities

5,675,738

3,921,327

18,325,976

18,331,725

10,117,065

10,117,065

Net assets
Shareholders’ equity
Share capital
Capital surplus

8,662,477

8,662,477

Retained earnings

15,614,931

17,244,551

Treasury shares
Total shareholders’ equity(17,734)(18,947)

34,376,739

36,005,146

4,510,039

1,478,073

48,85754,980

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans(430,263)

19,712

Total accumulated other comprehensive income

4,128,633

1,552,765

336,727

370,432

38,842,100

37,928,345

57,168,076

56,260,070

Non-controlling interests
Total net assets
Total liabilities and net assets

4

ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)(Thousands of yen)First nine months of FY2020 First nine months of FY2021(Apr. 1, 2020 – Dec. 31, 2020) (Apr. 1, 2021 – Dec. 31, 2021)
Net sales

19,795,774

22,390,021

Cost of sales

5,920,083

6,824,334

Gross profit

13,875,690

15,565,687

Selling, general and administrative expenses

12,402,413

13,103,617

Operating profit

1,473,277

2,462,070

Interest income

5,737

4,631

Dividend income
Share of profit of entities accounted for using equity
methodOther

67,60579,378-60,837103,282

82,133

Total non-operating income

176,625

226,981Interest expenses

1,704

1,439

Foreign exchange losses

4,988

-

Other

1,401

3,756

Total non-operating expenses

8,093

5,196

1,641,809

2,683,855

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

941

579

Gain on sale of investment securities-

5,808,953

941

5,809,533

9,720

208

Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Retirement benefit expenses-

3,490,776

9,720

3,490,984

1,633,029

5,002,403

Income taxes-current

408,824

2,457,077

Income taxes-deferred

217,583

117,085

Total income taxes

626,4072,574,162

Profit

1,006,621

2,428,240

Profit (loss) attributable to non-controlling interests(73,281)

33,705

Profit attributable to owners of parent

1,079,902

2,394,535

Total extraordinary losses
Profit before income taxes

5

ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)(Thousands of yen)First nine months of FY2020
First nine months of FY2021(Apr. 1, 2020 – Dec. 31, 2020) (Apr. 1, 2021 – Dec. 31, 2021)
Profit

1,006,621

2,428,240

Other comprehensive income
Valuation difference on available-for-sale securities

1,335,415(3,021,740)

Foreign currency translation adjustment

148,804

6,122

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method

101,695

449,976-(10,226)

1,585,915(2,575,868)

2,592,537(147,627)

2,665,818(181,332)(73,281)

33,705

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Accounting Policies
1. Application of the Accounting Standard for Revenue Recognition, etc.
Effective from the beginning of the first quarter of the fiscal year ending on March 31, 2022, Zuken applied the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) etc. Based on thisstandard, revenue expected to be received in exchange for the provision of goods and services is recognized when
the control of the promised goods and services is transferred to customers. The main changes resulting from thisapplication are as follows.
(1) Revenue recognition for sales of products
For some transactions, Zuken delivers the relevant products and provides free maintenance services within thewarranty period based on the contract with the customer. Previously, Zuken did not recognize revenue for such
maintenance services. However, Zuken has decided to identify performance obligations related to the delivery of
products and performance obligations related to such maintenance services and recognize revenue when eachperformance obligation is satisfied.
(2) Revenue recognition for agent transactions
For some transactions, the Zuken Group previously recognized revenue based on the total amount of consideration
received from the customer. However, for transactions in which the Zuken Group’s role in providing goods orservices to the customer is that of an agent, the Zuken Group has decided to recognize revenue based on the net
amount received from the customer less the amount paid to the supplier.
For the application of the Accounting Standard for Revenue Recognition, etc., in accordance with the transitional
treatment prescribed in the proviso to Paragraph 84 of this standard, the cumulative effect of the retrospective
application of the new accounting standard, if it is applied prior to the first quarter of the current fiscal year, isadded to or subtracted from retained earnings at the beginning of the first quarter of the current fiscal yea r. The
new standard is then applied beginning with this amount of retained earnings.
As a result, net sales decreased 107,676 thousand yen, cost of sales decreased 121,367 thousand yen, and operating
profit, ordinary profit and profit before income taxes increased 13,691 thousand yen each in the first nine monthsof the current fiscal year. In addition, the new standard reduced retained earnings at the beginning of the first ninemonths by 44,195 thousand yen.
Furthermore, in accordance with the transitional treatment prescribed in Paragraph 28 -15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), Zuken has not presented
information on revenue from contracts with customers broken down for the first nine months of the previous fiscal
year.
2. Application of the Accounting Standards for Fair Value Measurement, etc.
Effective from the beginning of the first quarter of the fiscal year ending on March 31, 2022, Zuken applied the
Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019), etc. and has applied the
new accounting policies set forth by the Accounting Standard for Fair Value Measurement, etc. prospectively inaccordance with the transitional treatment prescribed in Paragraph 19 of the Accounting Standard for Fair Value
Measurement and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10,
July 4, 2019). There is no significant change in the calculation method of fair value as a result of this application.

7

ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021

Segment Information
I. First nine months of FY2020 (Apr. 1, 2020 – Dec. 31, 2020)
Information about reportable segment net sales and profit or loss
Reportable segment

Japan

EuropeAmericas

Asia

Total

Sales to third parties
Intersegment sales ortransfers
Total

14,131,456

3,318,930

1,440,633

904,753 19,795,774

759,361

653,529

37,374

14,890,817

3,972,459

1,478,008

Segment profit

1,112,894

49,22270,164(Thousands of yen)
Appropriatedamount in the
Adjustment
quarterly
amountconsolidated(Note 1)statement of income(Note 2)

Net sales-

19,795,774

1,528,624 (1,528,624)-

983,112 21,324,399 (1,528,624)

19,795,774

260,151

1,473,277

78,3591,492,431(19,154)

Notes: 1. Adjustment amount in segment profit includes amount of -19,154 thousand yen eliminated for intersegment
transactions.
2. Segment profit is adjusted with operating profit in the quarterly consolidated statement of income.

II. First nine months of FY2021 (Apr. 1, 2021 – Dec. 31, 2021)
Information about reportable segment net sales and profit or loss, and breakdown of revenue
Reportable segment

Americas

Asia

Total

(Thousands of yen)
Appropriatedamount in the
Adjustment
quarterly
amountconsolidated(Note 1)statement of income(Note 2)Japan

EuropeSolutions

9,228,373

2,078,572

894,409442,823 12,644,179-

12,644,179

Client services

6,396,986

1,975,451

749,843

623,560

9,745,841-

9,745,841

Sales to third parties
Intersegment sales ortransfers
Total

15,625,359

4,054,023

1,644,253

1,066,383 22,390,021-

22,390,021

891,397682,277

46,414

1,703,302 (1,703,302)-

16,516,757

4,736,301

1,690,668

1,149,596 24,093,324 (1,703,302)

22,390,021

Net sales

83,212

Segment profit
1,809,796
221,406
101,222
327,863 2,460,288
1,781
2,462,070
Notes: 1. Adjustment amount in segment profit includes amount of 1,781 thousand yen eliminated for intersegment
transactions.
2. Segment profit is adjusted with operating profit in the quarterly consolidated statement of income.

Revenue Recognition
Information of breakdown on revenue from contracts with customers is as described in “Notes to Quarterly
Consolidated Financial Statements (Segment Information).”As described in “Changes in Accounting Policies,” in accordance with the transitional treatment prescribed in
Paragraph 28-15 of the Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31,2020), Zuken has not presented information on revenue from contracts with customers broken down for the firstnine months of the previous fiscal year.

8

ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021

3. Supplementary Information(1) Sales and Orders(a) Sales
Segment

First nine months of FY2020(Apr. 1, 2020 – Dec. 31, 2020)
AmountComposition (%)(Thousands of yen)First nine months of FY2021(Apr. 1, 2021 – Dec. 31, 2021)
AmountComposition (%)

Japan

14,131,456

71.4

15,625,359

69.8

Europe3,318,930

16.8

4,054,023

18.1

Americas1,440,633

7.3

1,644,253

7.3

904,753

4.5

1,066,383

4.8

19,795,774

100.0

22,390,021

100.0

Asia
Total
(b) Orders received and order backlog
Segment

First nine months of FY2020(Apr. 1, 2020 – Dec. 31, 2020)
Orders received
Order backlog(Thousands of yen)First nine months of FY2021(Apr. 1, 2021 – Dec. 31, 2021)
Orders received
Order backlog

Japan

15,763,218

9,294,516

17,587,932

10,875,668

Europe2,483,591

921,472

3,603,050

1,579,398

Americas1,159,934

1,082,361

1,560,164

1,309,383

891,588
Total
20,298,332
Note: Intersegment transactions have been eliminated.

433,187

922,340

405,346

11,731,538

23,673,487

14,169,796

Asia

9

ZUKEN Inc. (6947) Financial Results for the Third Quarter of FY2021(Reference) Results by product category are as follows.
(a) SalesFirst nine months of FY2020(Apr. 1, 2020 – Dec. 31, 2020)
Product category
AmountComposition (%)(Thousands of yen)First nine months of FY2021(Apr. 1, 2021 – Dec. 31, 2021)
AmountComposition (%)

Printed Circuit Board design solutions

2,821,542

14.3

2,976,012

13.3

Circuit design solutions

3,972,817

20.1

4,847,125

21.6

IT solutions

4,429,213

22.4

4,818,577

21.5

Client services

8,571,420

43.2

9,745,841

43.6

779

0.0

2,464

0.0

19,795,774

100.0

22,390,021

100.0

OthersTotal(b) Orders received and order backlog
Product category

First nine months of FY2020(Apr. 1, 2020 – Dec. 31, 2020)
Orders received
Order backlog(Thousands of yen)First nine months of FY2021(Apr. 1, 2021 – Dec. 31, 2021)
Orders received
Order backlog

Printed Circuit Board design solutions

3,103,677

1,102,718

3,240,209

1,108,554

Circuit design solutions

4,453,349

1,559,394

5,030,644

1,626,152

IT solutions

5,099,603

1,655,061

5,723,960

2,101,782

Client services

7,638,990

7,412,093

9,669,586

9,325,884

2,710

2,271

9,086

7,422

20,298,332

11,731,538

23,673,487

14,169,796

OthersTotal

Note: Name of major products by product category are as follows.
CR-8000 Design Force
CR-8000 Board Designer
Major products of Printed Circuit Board design
CR-8000 DFM Center
solutions
CADSTAReCADSTAR
CR-8000 Design Gateway
CR-8000 System Planner
Major products of Circuit design solutions
E3.series
Cabling Designer
Harness Designer
DS-CR
DS-2 Expresso
Major products of IT solutions
DS-E3
PreSight visual BOM
GENESYSThis financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

10