August 4, 2021

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2022 (FY2021)(Three Months Ended June 30, 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:
August 5, 2021
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 First Quarter Ended June 30, 2021 (April 1, 2021 – June 30, 2021)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen%
Three months ended
Jun. 30, 2021
7,014
18.3
Jun. 30, 2020
5,928
(2.5)
Note: Comprehensive income (Millions of yen)

Net income per share

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen

569
396.9
665
286.1
114 (65.2)
172(50.9)
Three months ended Jun. 30, 2021:
1,258 (up 54.1%)
Three months ended Jun. 30, 2020:
816 (-%)

429
91

%

369.3
(64.8)

Diluted net income per
share

Yen
Yen
Three months ended
Jun. 30, 2021
18.47
Jun. 30, 2020
3.94
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 three months ended June30, 2021 incorporate this accounting standard.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Shareholders’ equity ratio

Millions of yen%

As of Jun. 30, 2021
58,91439,707
66.8
As of Mar. 31, 2021
57,16838,842
67.4
Reference: Shareholders’ equity (Millions of yen)
As of Jun. 30, 2021:
39,375
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 AccountingStandard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. All figures as of June 30, 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
Fiscal year ending Mar. 31, 2022 (forecast)
16.00
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% Millions of yen(Percentages represent year-on-year changes)
Profit attributable to
Net income perowners of parent
shareMillions of yen%

Yen

Full year
31,000
7.6
3,500
21.0
3,600
14.2
2,500
Note: Revisions to the most recently announced consolidated forecast: None
Only the full-year forecast is shown because Zuken manages performance on a fiscal year basis.

%

17.0

107.53

* 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 Jun. 30, 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 Jun. 30, 2021:

18,103 shares(c) Average number of shares outstanding during the period
Three months ended Jun. 30, 2021:

23,249,085 shares

Three months ended Jun. 30, 2020:

23,249,456 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 First 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 First Quarter of FY2021

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
The European, U.S. and Chinese economies were on track for a recovery during the first quarter due to progresswith vaccinations. But the outlook is unclear because of uncertainty about the magnitude of the impact on the global
economy of the spread of infections caused by the variants. Manufacturers in the electronics, automotive andindustrial equipment sectors are the main customers of the Zuken Group. Although companies in these sectors
remained cautious about capital expenditures, many companies continue to make substantial IT investments.
Net sales in the first quarter increased to 7,014 million yen, 18.3% higher than one year earlier and a new record
high for the first quarter of a fiscal year. Sales in all solution categories increased. Sales of the DS -2 series ofengineering data management platforms and the network security products of a subsidiary in Japan were particularly
strong, making a big contribution to the growth of IT solutions sales.
Earnings were much higher because of the big increase in sales. Ordinary profit was 665 million yen, 286.1% higher
than one year earlier, and profit attributable to owners of parent was up 369.3% to 429 million yen. Both are alltime highs for the first quarter of a fiscal year.
(2) Explanation of Financial Position
Total assets at the end of the first quarter of the current fiscal year increased 1,746 million yen from the end of theprevious fiscal year to 58,914 million yen.
Current assets increased 889 million yen. The main factors include increases of 2,264 million yen in cash anddeposits and 776 million yen in other current assets due to an increase in prepaid expenses, and a decrease of 2,276
million yen in notes and accounts receivable-trade. Non-current assets increased 857 million yen. The main factors
include an increase of 907 million yen in investments and other assets primarily due to an increase in investment
securities.
Total liabilities increased 881 million yen from the end of the previous fiscal year to 19,207 million yen. Current
liabilities increased 448 million yen. There were an increase of 1,641 million yen in advances received, anddecreases of 442 million yen in income taxes payable, 372 million yen in provision for bonuses and 325 million
yen in accounts payable-trade. Non-current liabilities increased 433 million yen mainly due to an increase indeferred tax liabilities included in other non-current liabilities.
Net assets increased 864 million yen from the end of the previous fiscal year to 39,707 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 May
10, 2021. Many of the Zuken Group’s customers use a fiscal year that ends in March. As a result, a large percentageof 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.

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

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance SheetFY2020(As of Mar. 31, 2021)(Thousands of yen)First quarter of FY2021(As of Jun. 30, 2021)

AssetsCurrent assets
Cash and deposits

21,693,586

23,958,566

Notes and accounts receivable-trade

6,806,824

4,529,903

Securities

6,700,000

6,700,000

Merchandise and finished goods

466,069

481,368

Work in process

101,913

246,343

2,158

1,812

Other

3,525,251

4,302,121

Allowance for doubtful accounts(19,098)(54,089)

39,276,705

40,166,025

Buildings and structures, net

2,760,128

2,722,002

Land

3,015,103

3,015,103

Raw materials and supplies

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

Other, net

488,222490,217

6,263,454

6,227,322

Goodwill

656,516

640,674

Other

640,839

643,182

1,297,355

1,283,857

9,114,007

10,055,827

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Other

1,216,553

1,181,832

Total investments and other assets

10,330,561

11,237,659

17,891,371

18,748,839

57,168,076

58,914,864

Total non-current assets
Total assets

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

FY2020(As of Mar. 31, 2021)(Thousands of yen)First quarter of FY2021(As of Jun. 30, 2021)

Liabilities
Current liabilities
Accounts payable-trade

1,166,026

841,026

Income taxes payable

578,485

135,536

Advances received

7,688,741

9,329,983

Provision for bonuses

925,619553,607

Other provisions

110,116

18,987Other

2,181,249

2,219,143

Total current liabilities

12,650,238

13,098,284

Retirement benefit liability

4,457,677

4,529,608

Other

1,218,060

1,579,968

Non-current liabilities

Total non-current liabilities
Total liabilities

5,675,738

6,109,577

18,325,976

19,207,861

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

15,651,495

Treasury shares
Total shareholders’ equity(17,734)(17,966)

34,376,739

34,413,070

4,510,039

5,163,662

48,857

168,175

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans(430,263)(368,957)

Total accumulated other comprehensive income

4,128,633

4,962,880

336,727

331,051

38,842,100

39,707,003

57,168,076

58,914,864

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

4

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2021(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)(Thousands of yen)First three months of FY2020 First three months of FY2021(Apr. 1, 2020 – Jun. 30, 2020) (Apr. 1, 2021 – Jun. 30, 2021)
Net sales

5,928,865

7,014,839

Cost of sales

1,687,640

2,119,893

Gross profit

4,241,224

4,894,945

Selling, general and administrative expenses

4,126,573

4,325,285

114,651569,659

Operating profit
Non-operating income
Interest income

2,503

2,009

Dividend income

39,84968,467

Subsidy income

18,455

22,814

Other

10,686

11,502

Total non-operating income

71,495

104,793

12,884

8,049

Non-operating expenses
Foreign exchange losses
Other

892

917

13,777

8,966

172,369

665,486

Gain on sale of non-current assets

38-

Total extraordinary income

38-

Profit before income taxes

172,408

665,486

Income taxes-current

29,711

102,856

Income taxes-deferred

110,338

138,809

Total income taxes

140,050

241,665

Profit32,357423,820

Total non-operating expenses
Ordinary profit
Extraordinary income

Loss attributable to non-controlling interests
Profit attributable to owners of parent

5(59,160)(5,676)

91,517429,496

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

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY2020(Apr. 1, 2020 – Jun. 30, 2020)(Thousands of yen)First three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)

32,357423,820731,019

653,622

8,015

119,317

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

44,766

61,306

Total other comprehensive income

783,802834,247

816,159

1,258,067

875,319

1,263,743(59,160)(5,676)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 First 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 year. The
new standard is then applied beginning with this amount of retained earnings.
As a result, net sales decreased 46,226 thousand yen, cost of sales decreased 46,477 thousand yen. Operating profit,
ordinary profit and profit before income taxes increased 251 thousand yen each in the first three months of thecurrent fiscal year. In addition, the new standard reduced retained earnings at the beginning of the first quarter 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 quarter of the previous fiscal year.
2. Application of the Accounting Standards for Measurement of Fair Value, etc.
Effective from the beginning of the first quarter of the fiscal year ending on March 31, 2022, Zuken applied the
Accounting Standard for Measurement of Fair Value (ASBJ Statement No. 30, July 4, 2019), etc. and has applied
the new accounting policies set forth by the Accounting Standard for Measurement of Fair Value, etc. prospectively
in accordance with the transitional treatment prescribed in Paragraph 19 of the Accounting Standard for
Measurement of Fair Value 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 resultof this application.

7

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

Segment Information
I. First three months of FY2020 (Apr. 1, 2020 – Jun. 30, 2020)
Information about reportable segment net sales and profit or loss
Reportable segment

Japan

Europe4,203,508

1,001,157

250,484
4,453,993

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

Asia

Total

475,153

249,046

5,928,865-

5,928,865

218,108

11,30627,548507,448(507,448)-

1,219,265

486,460

276,594

6,436,314(507,448)

5,928,865

Net sales
Sales to third parties
Intersegment sales ortransfers
Total

Segment profit (loss)
133,222(86,386)
1,368
68,687
116,890(2,239)114,651
Notes: 1. Adjustment amount in segment profit (loss) includes amount of -2,239 thousand yen eliminated for intersegment
transactions.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

II. First three months of FY2021 (Apr. 1, 2021 – Jun. 30, 2021)
Information about reportable segment net sales and profit or loss, and breakdown of revenue
Reportable segment

Japan

EuropeSolutions

2,778,709

638,147

Client services

2,082,543

645,571

Sales to third parties
Intersegment sales ortransfers
Total

4,861,253

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

Asia

Total

276,329

161,401

3,854,588-

3,854,588

242,241

189,893

3,160,250-

3,160,250

1,283,719

518,571351,295

7,014,839-

7,014,839

340,916

227,639

14,76827,788611,113(611,113)-

5,202,170

1,511,359

533,339

379,083

7,625,952(611,113)

7,014,839

Net sales

Segment profit (loss)
475,991(34,149)
24,772109,038
575,653(5,993)569,659
Notes: 1. Adjustment amount in segment profit (loss) includes amount of -5,993 thousand yen eliminated for intersegment
transactions.
2. Segment profit (loss) 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 firstquarter of the previous fiscal year.

8

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

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

First three months of FY2020(Apr. 1, 2020 – Jun. 30, 2020)
AmountComposition (%)(Thousands of yen)First three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)
AmountComposition (%)

Japan4,203,508

70.9

4,861,253

69.3

Europe1,001,157

16.9

1,283,719

18.3

Americas475,1538.0

518,571

7.4

249,0464.2

351,295

5.0

5,928,865

100.0

7,014,839

100.0

Asia
Total
(b) Orders received and order backlog
Segment

First three months of FY2020(Apr. 1, 2020 – Jun. 30, 2020)
Orders received
Order backlog(Thousands of yen)First three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)
Orders received
Order backlog

Japan

6,216,406

9,675,653

7,025,739

11,077,581

Europe799,875

1,497,646

1,001,867

1,760,553

Americas345,660

1,280,661

348,436

1,173,396

293,744
Total
7,655,687
Note: Intersegment transactions have been eliminated.

469,844

383,921587,091

12,923,805

8,759,964

14,598,622

Asia

9

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2021(Reference) Results by product category are as follows.
(a) SalesFirst three months of FY2020(Apr. 1, 2020 – Jun. 30, 2020)
Product category
AmountComposition (%)
Printed Circuit Board design solutions(Thousands of yen)First three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)
AmountComposition (%)

805,368

13.6

892,210

12.7

Circuit design solutions

1,254,997

21.2

1,478,095

21.1

IT solutions

1,109,699

18.7

1,484,282

21.2

Client services

2,758,799

46.5

3,160,250

45.0

0

0.0

0

0.0

5,928,865

100.0

7,014,839

100.0

OthersTotal(b) Orders received and order backlog
Product category
Printed Circuit Board design solutionsFirst three months of FY2020(Apr. 1, 2020 – Jun. 30, 2020)
Orders received
Order backlog(Thousands of yen)First three months of FY2021(Apr. 1, 2021 – Jun. 30, 2021)
Orders received
Order backlog

891,025

892,683

1,104,825

1,053,839

Circuit design solutions

1,589,617

1,418,200

1,799,533

1,755,452

IT solutions

1,798,775

1,673,289

1,991,476

1,700,966

Client services

3,376,240

8,939,262

3,862,592

10,086,027

28

368

1,536

2,336

7,655,687
12,923,805
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
GENESYS

8,759,964

14,598,622

Others
Total

This 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