Consolidated Financial Results for the Second Quarter of
the Fiscal Year Ending March 31, 2023 (JGAAP)
October 28, 2022
Company name:
Tsuzuki Denki Co., Ltd.
Listing Stock Exchange: Tokyo
Stock code:
8157
URL: https://www.tsuzuki.co.jp/
Representative (title): Isao Emori, Representative Director, President and CEO
Contact (title):
Toshihiro Hirai, Managing Executive Officer
Tel: +81-50-3684-7780
Scheduled date for quarterly report submission:
Scheduled date for dividend payment:
Preparation of supplemental explanatory materials:
Results briefing to be held:

November 4, 2022
November 30, 2022
Yes
Yes (for institutional investors and analysts)

1. Consolidated financial results for the second quarter of the fiscal year ending March 31, 2023
(April 1, 2022, to September 30, 2022)(1) Consolidated operating results

Net sales

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

Second quarter,year ending
55,046 3.7%
1,021
1,154
700
42.3%
27.8%
34.9%
March 31, 2023
Second quarter,year ended
53,100 0.2%798
855
270.9%
492
229.0%
260.9%March 31, 2022
Note: Comprehensive income was 766 million yen (-4.5%) in second quarter of year ending March 31, 2023; 803
million yen (+56.6%) in second quarter of year ended March 31, 2022.
Earnings per share
Diluted earnings per(yen)share (yen)Second quarter,year ending—
39.42
March 31, 2023
Second quarter,year ended—
27.95
March 31, 2022
(2) Consolidated financial position
Total assets
Net assets
Shareholders’
Net assets per share(millions of yen)(millions of yen)equity ratio(yen)
Second quarter,year ending
76,72933,53143.3
1,861.99
March 31, 2023
Year ended
79,22633,19941.5%
1,853.68
March 31, 2022
Reference: Shareholders’ equity at second quarter, year ending March 31, 2023; 33,203 million yen; in year
ended March 31, 2022; 32,847 million yen.

1

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

End ofsecondquarter

End ofthird
quarterYearendTotal

Year ended
—
23.00
—
25.00
48.00
March 31, 2022
Year ending—
25.00
March 31, 2023
Year ending
March 31, 2023
—
25.00
50.00
(forecast)
Note:
1.Revisions to most recent dividend forecast: None
2. The interim dividend for the year ended March 31, 2023 included a commemorative dividend of 2.0 yen
per share to celebrate 90th Anniversary of its founding.
3. Forecast of consolidated financial results for the fiscal year ending March 31, 2023
(April 1, 2022, to March 31, 2023)% figures are year-on-year change
Profit attributable to Earnings
Net sales
Operating income Ordinary income
owners of parent
per share(millions of yen)(millions of yen)(millions of yen)(millions of yen)
(yen)
Full year

121,000

1.4%

4,500

12.2%

4,630

Note: Revisions to most recent earnings forecast: Yes

2

9.5%

3,090

10.4%

173.57

*Notes(1) Changes in significant subsidiaries (which affected scope of consolidation) during the quarter: None
Newly added ___ companies (names)
No longer consolidated ___ companies (names)(2) Special accounting methods used in preparation of quarterly consolidated financial statements: Yes
Note: For details, please refer to Attachment page 16: “2. Consolidated financial statements and notes (4)Notes to quarterly consolidated financial statements (Application of special accounting methods in the
preparation of quarterly consolidated financial statements) "(3) Changes in accounting policies, changes in accounting estimates, and restatements
1. Changes in accounting policies due to changes in accounting standards:
2. Changes in accounting policies not due to changes in accounting standards:
3. Changes in accounting estimates:
4. Restatements:(4) Number of shares outstanding (common stock)
Second quarter,
1. Number of shares outstanding at
year ending
year end (including treasury stock)
March 31, 2023
Second quarter,
2. Number of shares at year end
year ending(treasury stock)
March 31, 2023

Yes
None
None
None

20,177,894

Year ended
March 31, 2022

20,177,894

2,345,484

Year ended
March 31, 2022

2,457,908

Secondquarter, year
17,616,474
17,772,808
ended March
31, 2022
Note: The number of treasury shares includes those held in the Employee Stock Ownership Plan (ESOP) trust
account (65,700 in second quarter, year ending March 2023; 121,000 in year ended March 2022), Directors’Compensation Board Incentive Plan (BIP) trust account (302,804 in second quarter, year ending March 2023;
346,034 in year ended March 2022); and Stock-grant ESOP trust account (444,126 in second quarter, year
ending March 2023; 458,056 in year ended March 2022).
3. Average number of shares overthe period

Second quarter,year ending
March 31, 2023

*The financial information in this quarterly report is not subject to review by certified public accountants or auditing
firms.
*Appropriate use of earnings forecast and other special notes.
(Note on forward-looking statements)
The earnings forecasts and other forward-looking statements contained in this document are based on
information currently available to the Company, and certain assumptions it considers reasonable, but are notintended to be a promise that the Company will achieve. Actual results may vary materially from forecasts due toa variety of factors.
(How to obtain supplementary explanatory materials for financial results and results briefing materials.)
The Company plans to hold a results briefing for institutional investors and analysts on Wednesday, November
16, 2022. The briefing materials will be posted on the Company’s website promptly after the briefing.

3

Content of attachment
1. Qualitative information on quarterly results ..............................................................................................5(1) Earnings ..............................................................................................................................................................5(2) Financial position ...............................................................................................................................................9(3) Consolidated earnings forecasts and other information concerning the outlook .....................................9
2. Consolidated financial statements and notes .........................................................................................10(1) Quarterly consolidated balance sheet ..........................................................................................................10(2) Quarterly consolidated statements of income and comprehensive income ...........................................12(3) Quarterly consolidated statement of cash flows .........................................................................................14(4) Notes to quarterly consolidated financial statements .................................................................................16(Notes on premise of going concern)..............................................................................................................16(Notes on significant changes in the amount of shareholders equity) .......................................................16(Application of special accounting methods in the preparation of quarterly consolidated financial
statements) .........................................................................................................................................................16(Segment and other information).....................................................................................................................174

1. Qualitative information on quarterly results(1) Earnings
In the first half of the fiscal year ending March 2023, the Japanese economy showed signs of a gradual recovery
as economic and social activities began to return to normal. However, the risk of a downturn in overseas
economies due to global monetary tightening and other factors exerted downward pressure on Japan's economy.
This, combined with the effects of rising prices, supply-side constraints, and fluctuations in financial and capital
markets, among other issues, rendered the outlook uncertain.
In the information and communications services industry, to which the Group belongs, the pandemic spurred adigital transformation (DX) trend in the corporate sector, and ICT capital investment continued to expand.
As for the electronic device industry, while the supply-demand balance for semiconductors was moving towardnormalization, the market showed signs of slowing down due to changes in the operating environment, including adecline in personal consumption as prices rose globally.
In these circumstances, our group is carrying out the initiatives outlined in our medium-term management plan
ending in the year ending March 2023, titled Innovation 2023, as part of our aim to support the DX efforts of clientcompanies and to be more competitive by becoming an innovation service provider. We are reforming ourbusiness structure and strengthening our management base to tap into growing digital transformation needs witha view to sustainable growth and improvements in corporate value.
During the first half of the third year of the medium-term management plan, net sales amounted to ¥55,046
million (up 3.7% year-on-year), operating income was ¥1,021 million (up 27.8% year-on-year), ordinary income
totaled ¥1,154 million (up 34.9% year-on-year), and quarterly profit attributable to owners of parent was ¥700
million (up 42.3% year-on-year).
In the Information Network Solution segment, despite a decrease in development and construction projects,
orders received, net sales, and order backlog were all significantly above year-earlier levels, as delivery delays
accompanying the semiconductor shortage began to show signs of resolving and equipment installation projects
remained robust. Profit declined slightly due to an increase in SG&A expenses.
In the Electronic Devices segment, the supply-demand balance began to improve as suppliers' production
activities returned to normal, while advance arrangements by customers from the previous fiscal year due to theshortage of semiconductors continued. As a result, although orders received were lower than in the previous year,
net sales were significantly higher. Profits were significantly up on the year earlier, despite an increase in SG&A
expenses, due to higher net sales.
The following section discusses earnings by segment in the second quarter.
*Note regarding quarterly earnings for the Group
Many of the Group’s customers have business years from April through March the following year. Further,fulfilment obligations for many transactions are judged to be satisfied at a certain point, so the Group’s sales andprofit tend to be concentrated in September and March, the halfway and endpoints of the fiscal year

5

Information Network Solutions
In the first half of the fiscal year ending March 31, 2023, orders totaled ¥52,059 million (up 3.8% year-on-year),net sales were ¥40,519 million (up 1.2% year-on-year), and operating income amounted to ¥521 million yen (down
2.0% year-on-year). Orders and sales rose, while operating income fell.
Results by business model
Equipment: Orders were ¥22,763 million (up 13.4% year-on-year) and net sales came to ¥14,694 million (up5.7% year-on-year), significantly exceeding those of the previous year. In addition to therevitalization of the introduction of PCs, smartphones, signage, and other equipment for customers
in a wide range of industries—including manufacturing, restaurant, and the financial sector—
investment by transportation and railroad customers, which had contracted due to the pandemic,
recovered. Large network equipment renewal and other projects also piled up. Although thesemiconductor shortage continued to lengthen delivery periods for certain projects, there wereindications of resolution overall.
Development and construction: Although progress was made in construction of a large-scale cloud PBX for thefinancial sector and system development for the fruit and vegetable market, there was a reactionary
decline from the relatively brisk orders and sales in development and construction in the first quarter.
Orders were ¥6,894 million (down 18.3% year-on-year) and net sales came to ¥6,004 million (down
3.4% year-on-year), significantly lower than the year earlier, as the same quarter of the previous
year had been particularly strong. Some of the decline was attributable to the shift to a service model(LCM and cloud services).
Service:

Although equipment maintenance services grew significantly on the back of an increase inequipment installation projects, and cloud services continued to perform well, the end of major
contracts for LCM services by some customers had an impact. As a consequence, orders came to¥22,401 million (up 3.4% year-on-year) and sales were ¥19,820 million (down 0.4% year-on-year).
Profits were at the same level as the previous year due to higher SG&A expenses. The rise in the SG&A
expenses was attributed to an increase in sales activities (to win orders) amid brisk business negotiations.
Electronic Devices
In the first half of the fiscal year ending March 31, 2023, the Electronic Devices segment booked orders of¥17,153 million (down 6.8% year-on-year), net sales totaled ¥14,526 million yen (up 11.1% year-on-year), andoperating income was ¥483 million (up 81.5% year-on-year). Orders were lower than in the previous year, but
net sales and operating income were significantly higher.
In the devices business, customers continued to make advance arrangements since the fiscal year ended
March 31, 2022 due to the global semiconductor shortage, but some suppliers began to normalize production
activities at their domestic and overseas plants, and the supply-demand balance showed signs of improvement.
Sales of semiconductors and electronic components were up, due in part to strong demand from the factory
automation equipment and industrial markets, key customers of the Company. Moreover, demand for power
semiconductors embedded in electric vehicles, power supply equipment, and air conditioning equipment was
robust, resulting in higher net sales despite a decline in orders compared with the same period of the previous
fiscal year. .
In the systems business, sales to the industrial equipment industry remained firm, as the Company achieved
steady progress in securing electronic components for servers, PCs, and other applications in response toheightened demand. Meanwhile, demand for HDDs for consumer products shrank due to production
adjustments accompanying the switch to new products. Moreover, demand for LCD panels and SSD products foron-board automotive information devices shrank due to production adjustments caused by the semiconductor
shortage. This resulted in orders and net sales declining.

6

Profits rose significantly due to a boost in profits from higher sales, in spite of an increase in expenses,
including the strategic hiring of personnel to construct a new business model.

7

The following tables show sales and orders by segment in the second quarter of the fiscal year ending March,
2023.
(1) Net sales by segment (millions of yen)
Second quarter,year ended
March 2022
Information Network Solutions
40,022Equipment
13,899Development and construction
6,214
Service
19,908
Electronic Devices
13,078
Total
53,100Note:Inter-segment transactions are offset and eliminated.

Second quarter, year ending March 2023
Versus second quarter ofprevious year

40,51914,694
6,004
19,82014,52655,046

496
794
(209)
(87)
1,448
1,945

101.2%
105.7%
96.6%
99.6%
111.1%
103.7%(2) Orders by segment (millions of yen)
Second quarter,year ended
March 2022
Information Network Solutions
50,175Equipment
20,067Development and construction
8,435
Service
21,672
Electronic Devices
18,400Total
68,576
Note:Inter-segment transactions are offset and eliminated.
(3) Order backlog by segment (millions of yen)
Second quarter,year ended
March 2022
Information Network Solutions
24,738Equipment
14,993Development and construction
5,852
Service
3,892Electronic Devices
13,204
Total
37,942
Note: Inter-segment transactions are offset and eliminated.

8

Second quarter, year ending March 2023
Versus second quarter ofprevious year

52,05922,763
6,894
22,401
17,153
69,213

1,884
2,696(1,540)728(1,247)637

103.8%
113.4%
81.7%
103.4%
93.2%
100.9%

Second quarter, year ending March 2023
Versus second quarter ofprevious year
28,815
4,076
116.5%
18,387
3,394
122.6%
5,362
(489)
91.6%
5,065
1,172
130.1%
19,063
5,858
144.4%
47,8789,935
126.2%

(2) Financial position
Assets totaled ¥76,729 million at the end of the quarter under review, down by ¥2,496 million from the end of
the previous fiscal year. The main factors were a ¥5,558 million decline in trade notes and accounts receivableand contract assets, a ¥2,735 million increase in inventory assets.
Liabilities totaled ¥43,198 million at the end of the quarter, down by ¥2,827 million from the end of the previous
year. The main factors were ¥769 million decline in trade notes and accounts payable, ¥650 million decline inincome taxes payable, ¥539 million decline in lease obligations(total of current liabilities and noncurrent liabilities),and 309 million decline in net defined benefit liability.
Net assets totaled ¥33,531 million at the end of the quarter, down by ¥331 million from the end of the previous
year, and the shareholders’ equity ratio was 43.3% (41.5% at the end of the previous year). The main factors
were ¥700 million increase in capital surplus profit, ¥160 million increase in the disposal of treasury stock due tothe transfer of shares under the stock-grant schemes for directors and employees, while the main factor of
decrease was a reduction in retained earnings of ¥466 million due to the payment of dividends from surplus.

(3) Consolidated earnings forecasts and other information concerning the outlook
Orders and net sales were largely in line with the initial plan. The cost ratio improved (-0.6% versus theprevious quarter) as we pushed forward with business restructuring efforts, such as focusing on the high-valueadded services business and improving the profitability of equipment sales. Because we expect this trend tocontinue in Q3 and later, we upgraded the consolidated earnings forecast for the fiscal year ending March 31,
2023 released on May 13, 2023 as below. The Company will promptly inform our stakeholders if material mattersarise due to a change in circumstances or other factors.
Revision of consolidated earnings forecast for the fiscal year ending March 31, 2023 (April 1, 2022–March 31,
2023)

Previous forecast (A)Revised forecast (B)Change (B-A)% change(Ref.) Results for FY03/22

Net sales

OperatingincomeOrdinary
incomeProfitattributable toowners ofparentEarnings per
sharemillions of yen

millions of yen

millions of yen

millions of yen

yen

120,000

4,000

4,130

2,760

155.76

121,000

4,500

4,630

3,090

173.57

1,000

500

500

330

―

0.8

12.5

12.1

12.0

―

119,316

4,012

4,227

2,798

158.479

2. Consolidated financial statements and notes(1) Quarterly consolidated balance sheet(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Electronically recorded monetary claims
Inventories
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles
(net)
Land
Lease assets
Accumulated depreciation
Lease assets (net)
Construction in progress
Other
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Investments and other assets
Total noncurrent assets
Total assets

10

As of September 30, 2022

19,162
28,113
4,645
7,483
1,861
(70)
61,19521,07022,554
3,917
10,2191,650(6)59,406

2,145
(933)
1,212
7
(6)

2,122
(956)
1,165
7
(6)

1

1

1,804
5,150
(3,330)
1,820
126
1,177
(713)
463
5,428

1,804
5,009
(3,581)
1,428
129
1,187
(791)
396
4,926

135
883
2,053
3,072

90
763
2,077
2,932

4,096
32
4,204
1,247
(52)
9,528
18,03079,226

3,775
30
4,497
1,212
△51
9,464
17,322
76,729(Millions of yen)

As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Long-term accounts payable – other
Other provision
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNoncontrolling interests
Total net assets
Total liabilities and net assets

15,307
5,137
4,291
1,267
1,268
2,303
5,310
34,88611

As of September 30, 2022

14,538
5,063
1,341
1,070
617
2,119
5,084
29,835

152
1,658
7
8,531
29
629
130
11,13946,026

2,981
1,315
7
8,222
29
673
132
13,3629,812
2,581
23,018(2,257)33,155

9,812
2,581
23,253(2,102)33,544

1,343

1,104

(37)
145
(1,760)(45)
279(1,678)

(307)

(340)

352
33,19979,226327
33,531
76,72943,198

(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statement of income)Consolidated income statement for the second quarter(Millions of yen)Six months ended
September 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Total extraordinary losses
Income before income taxes and others
Income taxes
ProfitProfit attributable to noncontrolling interests
Profit attributable to owners of parent

12

Six months ended
September 30, 2022

53,10043,310
9,789
8,990
798

55,04644,567
10,478
9,457
1,021

1
58
8
33
29
130

3
52
32
35
75
199

64
9
73
855

59
7
66
1,154

3
3

－
－

1
1
857
283
574
81
492

4
4
1,149
349
799
99
700

(Quarterly consolidated statement of comprehensive income)Second quarter(Millions of yen)Six months ended
September 30, 2021
ProfitOther comprehensive income
Valuation difference on available for salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Other comprehensive income
Comprehensive income
BreakdownComprehensive income attributable to ownersof parent
Comprehensive income attributable tononcontrolling interests

13

Six months ended
September 30, 2022
574

799

148

(239)

(2)
8
74
229
803

(7)
133
81
(32)
766

721

667

81

99

(3) Quarterly consolidated statement of cash flows(Millions of yen)Six months ended
September 30, 2021
Cash flows from operating activities
Income before income taxes and others
Depreciation and amortization
Goodwill amortization
Increase (decrease) in provision for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit
liability
Increase (decrease) in other provisions
Interest and dividend income
Interest expenses
Foreign exchange loss (gain)
Loss (gain) on sale of investment securities
Loss (gain) on sale of noncurrent assets
Other non-operating loss (gain)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in notes and accounts
payable – trade
Increase (decrease) in accrued consumption
taxes
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Other revenue
Other expenses
Income taxes paid
Refund of income taxes
Cash flows from operating activities

14

Six months ended
September 30, 2022

857
1,277
45

1,149
1,127
45

(29)

(65)

(217)

(184)

173

(192)

98
(59)
64
1
(3)
1
(53)
7,179
(1,706)
(534)

43
(55)
59
－
－
4
(97)
6,422
(2,673)129(3,454)

(771)

(749)

(181)

867
3,758
59
(64)
62
(9)
(97)
226
3,935

(230)
4,529
55
(59)
97
－
(1,050)4
3,577

(Millions of yen)Six months ended
September 30, 2021
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Outflows from payment of loans receivable
Proceeds from collection of loans receivable
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Repayment of finance lease obligations
Repayment of long-term borrowings
Proceeds from long-term borrowings
Acquisition of treasury stock
Proceeds from disposal of treasury stock
Dividend payments
Dividends paid to noncontrolling interests
Cash flows from financing activities
Effect of exchange rate changes on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of theperiodCash and cash equivalents at end of the period15

Six months ended
September 30, 2022

(813)

(207)

821

228

(476)
114
(21)
303
(0)
1
19
(50)

(403)
45
(16)
－
－
2
11
(339)

246

(132)

(821)
(80)
－
(0)
128
(578)
(62)
(1,167)(704)(3,020)
2,900
(5)
160
(466)
(124)
(1,393)

8

63

2,726

1,907

15,927

19,13018,653

21,037

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

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

(Application of Accounting Standard for Fair Value Measurement)
The Company applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 1, Jun 17,
2021, “fair value standard” below) from the start of the first quarter. In accordance with the transitional treatmentprescribed in paragraph 27-2 of the Accounting Standard for Financial Instruments, the new accounting policy
prescribed in the fair value standard will be applied prospectively. There is no impact on the quarterly
consolidated financial statements.

16

(Segment and other information)
Segment information
I Second quarter of previous year (April 1, 2021, to September 30, 2021)
1. Information on net sales and profit or loss by reporting segment(Millions of yen)Amountrecorded inquarterly
Adjustments
consolidated(Note 1)
financialstatements(Note 2)

Reporting segment
Information
Network
SolutionsElectronic
Devices

Total

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

40,022

13,07853,100－53,100

7

77

85

(85)

－

40,02913,15653,186(85)

53,100

532

266

798

0

798

Notes:
1 Adjustments to segment profit are elimination of intersegment transactions.
2 Segment profit is adjusted with operating income in the quarterly consolidated income statements.
II Second quarter in current year (April 1, 2022, to September 30, 2022)
1. Information on sales and profit or loss by reporting segment(Millions of yen)Amountrecorded inquarterly
Adjustments
consolidated(Note 1, 2, 3)
financialstatements(Note 2)

Reporting segment
Information
Network
SolutionsElectronic
Devices

Total

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

40,51914,52655,046－55,046

9

104

113

(113)

－

40,528

14,631

55,160(113)

55,046

521

483

1,005

15

1,021

Notes:
1 Adjustments to segment profit are elimination of intersegment transactions.
2 Segment profit is adjusted with operating income in the quarterly consolidated income statements.

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