August 6, 2024

Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2025 (FY2024)(Three Months Ended June 30, 2024)[Japanese GAAP]
Company name:
ZUKEN Inc.
Listing: Tokyo Stock Exchange
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 payment of dividend:
Preparation of supplementary materials for financial results:
None
Holding of 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, 2024 (April 1, 2024 – June 30, 2024)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen%
Three months ended
Jun. 30, 2024
9,017
6.8
Jun. 30, 2023
8,441
9.6
Note: Comprehensive income (Millions of yen)

Net income per share
Three months ended
Jun. 30, 2024
Jun. 30, 2023

Profit attributable toowners of parent

Ordinary profit

Millions of yen

Millions of yen

%

856
10.5
1,124
7.1
703
775
(9.5)
1,050
5.6
687
Three months ended Jun. 30, 2024:
835 (down 39.2%)
Three months ended Jun. 30, 2023:
1,373 (up 82.5%)%

Millions of yen

%

2.3
1.2

Diluted net income per
share

Yen

Yen

31.62
29.63

-

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

As of Jun. 30, 2024
As of Mar. 31, 2024
Reference: Shareholders’ equity (Millions of yen)

Shareholders’ equity ratio

Millions of yen%

64,47063,879As of Jun. 30, 2024:

41,17341,01740,608
As of Mar. 31, 2024:

63.0
63.3
40,454

1Q-endDividend per share
3Q-endTotal

2. Dividends
2Q-endYen

Year-end

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2024
25.00
Fiscal year ending Mar. 31, 2025
Fiscal year ending Mar. 31, 2025 (forecast)
30.00
Note: Revisions to the most recently announced dividend forecast: None

-

30.00

55.00

-

30.00

60.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 – March 31, 2025)
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
41,000
6.6
5,500
14.7
5,900
8.5
4,000
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.

%

3.4

179.78

* Notes(1) Significant changes in the scope of consolidation during the period: 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:None(b) Changes in accounting policies other than (a) above:None(c) Changes in accounting-based estimates:

None(d) Restatements:

None(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, 2024:

22,249,804 shares

As of Mar. 31, 2024:

22,249,804 shares

As of Mar. 31, 2024:

10 shares(b) Number of treasury shares at the end of the period
As of Jun. 30, 2024:

130 shares(c) Average number of shares outstanding during the period
Three months ended Jun. 30, 2024:

22,249,694 shares

Three months ended Jun. 30, 2023:

23,201,231 shares* Review of the attached quarterly consolidated financial statements by a certified public accountant or auditing firm: None
* 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. Overview of Results ofOperations, etc., (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 for the First Quarter of FY2024

Contents of Attachments
1.

Overview of Results of Operations, etc. ...................................................................................................................... 2(1) Results of Operations .............................................................................................................................................. 2(2) 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
Segment Information ................................................................................................................................................ 7
Significant Changes in Shareholders’ Equity ......................................................................................................... 7
Going Concern Assumption ..................................................................................................................................... 7
Notes to Quarterly Consolidated Statement of Cash Flows ................................................................................... 83.

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

1

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2024

1. Overview of Results of Operations, etc.
(1) Results of Operations
In the first quarter of the current fiscal year, the economic outlook remained uncertain due to concerns about thecontinuation of inflation worldwide, the possibility of an economic downturn in China and other reasons. Despite thisuncertainty, the economy recovered slowly as economic activity returned to normal. Manufacturers in the electronics,
automotive and industrial sectors, which are the main customers of the Zuken Group, are continuing to makesubstantial capital expenditures, including a large volume of IT investments.
Net sales in the first quarter increased 6.8% from one year earlier to 9,017 million yen, a new record for the firstquarter. This is mainly due to a significant increase in sales of E3.series largely in Europe, a wire harness design
system, and firm sales of data management system DS series in Japan, Europe and the United States.
Although expenses increased because of more investments in development activities, earnings were higher becauseof the increase in sales. Operating profit increased 10.5% to 856 million yen, ordinary profit increased 7.1% to 1,124
million yen, and profit attributable to owners of parent increased 2.3% to 703 million yen. All three are record highs
for the first quarter of a fiscal year.
(2) Financial Position
Total assets at the end of the first quarter of the current fiscal year increased 591 million yen from the end of theprevious fiscal year to 64,470 million yen.
Current assets increased 939 million yen. The main factors include increases of 830 million yen in cash and d eposits
and 1,683 million yen in other mainly due to an increase in suspense payments associated with the tender offer for
shares of our consolidated subsidiary, and a decrease of 1,800 million yen in notes and accounts receivable-trade.
Non-current assets decreased 348 million yen. The main factors include a decrease of 298 million yen in investments
and other assets.
Total liabilities increased 434 million yen from the end of the previous fiscal year to 23,297 million yen. Current
liabilities increased 356 million yen. There were an increase of 1,853 million yen in advances received and decreasesof 559 million yen in income taxes payable and 511 million yen in provision for bonuses. Non-current liabilities
increased 78 million yen mainly due to an increase in deferred tax liabilities included in other non-current liabilities.
Net assets increased 156 million yen from the end of the previous fiscal year to 41,173 million yen, and theshareholders’ equity ratio was 63.0%.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
We currently maintain the consolidated forecast for the fiscal year ending March 31, 202 5 that was released on May
13, 2024. 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.

2

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2024

2.

Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance SheetFY2023(As of Mar. 31, 2024)(Thousands of yen)First quarter of FY2024(As of Jun. 30, 2024)

AssetsCurrent assets
Cash and deposits

28,447,612

29,278,542

Notes and accounts receivable-trade

7,248,491

5,447,847

Securities

6,700,000

6,700,000

Merchandise and finished goods

433,950

501,139

Work in process

184,107351,894

Raw materials and supplies

1,396

1,714

Other

5,919,228

7,602,861

Allowance for doubtful accounts(37,848)(47,608)

48,896,939

49,836,392

Buildings and structures, net

2,499,841

2,466,817

Land

3,009,821

3,009,821

736,920764,697

6,246,583

6,241,336

Goodwill

110,427

102,004

Other

824,617789,112

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

Other, net
Total property, plant and equipment
Intangible assets

Total intangible assets

935,045

891,117

Investments and other assets

7,800,989

7,502,031

Total non-current assets

14,982,617

14,634,485

63,879,557

64,470,877

Total assets

3

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2024(Thousands of yen)First quarter of FY2024(As of Jun. 30, 2024)

FY2023(As of Mar. 31, 2024)
Liabilities
Current liabilities
Accounts payable-trade774,308

530,711

Income taxes payable

818,003

258,416

Advances received

12,888,531

14,742,082

Provision for bonuses

1,198,773

687,205

Other provisions

107,248

25,241Other

3,000,379

2,900,314

Total current liabilities

18,787,244

19,143,971

3,813,933

3,826,465

261,277

326,836

Non-current liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

4,075,210

4,153,301

22,862,454

23,297,273

10,117,065

10,117,065

Net assets
Shareholders’ equity
Share capital
Capital surplus

8,662,477

8,662,472

Retained earnings

18,802,945

18,838,950

Treasury shares
Total shareholders’ equity

(39)

(526)

37,582,447

37,617,961

2,080,581

1,979,304

811,548

1,029,966

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans(19,962)(18,362)

Total accumulated other comprehensive income

2,872,166

2,990,909

562,488564,733

41,017,102

41,173,604

63,879,557

64,470,877

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

4

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2024(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY2023(Apr. 1, 2023 – Jun. 30, 2023)(Thousands of yen)First three months of FY2024(Apr. 1, 2024 – Jun. 30, 2024)

Net sales

8,441,843

9,017,552

Cost of sales

2,640,392

2,637,509

Gross profit

5,801,450

6,380,043

Selling, general and administrative expenses

5,026,289

5,523,411

775,161

856,632

12,02435,232

Dividend income

20,87523,966

Foreign exchange gains
Share of profit of entities accounted for using equity
methodSubsidy income

118,825

78,71786,788113,401

25,41012,378

Other

14,891

17,296

Total non-operating income

278,814

280,992

2,387

793

-

12,0201,184-

Operating profit
Non-operating income
Interest income

Non-operating expenses
Interest expenses
Commission expenses
Commission for purchase of treasury shares
Other

2

0

3,574

12,813

1,050,401

1,124,810

Gain on sale of non-current assets

1,445

2,153

Total extraordinary income

1,445

2,153

4,335

211

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses

4,335

211

1,047,511

1,126,753

Income taxes-current

112,358

157,983

Income taxes-deferred

241,125

251,783

Total income taxes

353,483

409,767

Profit694,028

716,986

Profit before income taxes

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

5

6,608

13,487

687,419

703,498

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2024

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY2023(Apr. 1, 2023 – Jun. 30, 2023)(Thousands of yen)First three months of FY2024(Apr. 1, 2024 – Jun. 30, 2024)

694,028

716,986

Valuation difference on available-for-sale securities

449,364(111,987)

Foreign currency translation adjustment

211,501

218,418

1,319

1,600

17,51910,710679,705

118,742

1,373,733

835,728

1,367,125

822,241

6,608

13,487

ProfitOther comprehensive income

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 of parent
Comprehensive income attributable to non-controllinginterests

6

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2024(3) Notes to Quarterly Consolidated Financial Statements
Segment Information
I. First three months of FY2023 (Apr. 1, 2023 – Jun. 30, 2023)
1. Information about reportable segment net sales and profit or loss, and breakdown of revenue
Reportable segment(Thousands of yen)
Appropriated amount
Adjustmentin the quarterly
amountconsolidated(Note 1) statement of income(Note 2)Japan

EuropeAmericas

Asia

Total

Solutions

3,104,640

881,022

377,068

233,964

4,596,697-

4,596,697

Client services

2,564,164

740,085

302,423

238,472

3,845,146-

3,845,146

Sales to third parties
Intersegment sales ortransfers

5,668,805

1,621,108

679,492

472,437

8,441,843-

8,441,843

383,892

269,033

25,764

26,130704,820(704,820)

-

Total

6,052,697

1,890,142

705,256

498,568

9,146,664(704,820)

8,441,843

Net sales

629,739
38,180(35,939)
143,672775,652(490)
775,161
Segment profit (loss)
Notes: 1. Adjustment amount in segment profit (loss) includes amount of -490 thousand yen eliminated for intersegment
transactions.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
II. First three months of FY2024 (Apr. 1, 2024 – Jun. 30, 2024)
1. Information about reportable segment net sales and profit or loss, and breakdown of revenue
Reportable segment(Thousands of yen)
Appropriated amount
Adjustmentin the quarterly
amountconsolidated(Note 1) statement of income(Note 2)Japan

EuropeAmericas

Asia

Total

Solutions

3,028,515

1,152,859

402,833

291,574

4,875,782-

4,875,782

Client services

2,837,465

773,799

261,781

268,722

4,141,769-

4,141,769

Sales to third parties
Intersegment sales ortransfers

5,865,981

1,926,658

664,614560,297

9,017,552-

9,017,552

455,254331,616

29,382

27,831

844,084(844,084)

-

Total

6,321,235

2,258,274

693,996

588,129

9,861,636(844,084)

9,017,552

Net sales

Segment profit (loss)
780,415
154,727(284,277)
177,265
828,131
28,500856,632
Notes: 1. Adjustment amount in segment profit (loss) includes amount of 28,500 thousand yen eliminated for intersegment
transactions.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Going Concern Assumption
Not applicable.

7

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2024

Notes to Quarterly Consolidated Statement of Cash FlowsA quarterly consolidated statement of cash flows for the first three months of FY2024 has not been prepared.
Depreciation (includes amortization expenses related to intangible assets minus goodwill) and amortization of
goodwill for the first three months of FY2023 and FY2024 is as follows.
First three months of FY2023(Apr. 1, 2023 – Jun. 30, 2023)(Thousands of yen)First three months of FY2024(Apr. 1, 2024 – Jun. 30, 2024)

Depreciation

196,583

212,090

Amortization of goodwill

12,63914,1958

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2024

3.

Supplementary Information(1) Sales and Orders(a) Sales
Segment
Japan
EuropeAmericas
Asia
Total

First three months of FY2023(Apr. 1, 2023 – Jun. 30, 2023)
AmountComposition (%)
5,668,805
67.2
1,621,108
19.2
679,492
8.0
472,4375.6
8,441,843
100.0(b) Orders received and order backlog
First three months of FY2023(Apr. 1, 2023 – Jun. 30, 2023)
Segment
Orders received
Order backlog
Japan
8,285,859
14,308,733
Europe1,745,693
3,064,969
Americas568,617
2,245,597
Asia
801,570
984,944
Total
11,401,741
20,604,245
Note: Intersegment transactions have been eliminated.

9(Thousands of yen)First three months of FY2024(Apr. 1, 2024 – Jun. 30, 2024)
AmountComposition (%)
5,865,981
65.1
1,926,658
21.4
664,6147.4
560,2976.1
9,017,552
100.0(Thousands of yen)First three months of FY2024(Apr. 1, 2024 – Jun. 30, 2024)
Orders received
Order backlog
8,676,506
14,951,298
1,852,412
4,202,551
342,476
2,197,176
616,395
948,125
11,487,790
22,299,152

ZUKEN Inc. (6947) Financial Results for the First Quarter of FY2024(Reference) Results by product category are as follows.
(a) SalesFirst three months of FY2023(Apr. 1, 2023 – Jun. 30, 2023)
Product category
AmountComposition (%)
Printed Circuit Board design solutions
1,241,154
14.7
Circuit design solutions
1,678,665
19.9
IT solutions
1,676,877
19.9
Client services
3,845,146
45.5
Others00.0
Total
8,441,843
100.0(Thousands of yen)First three months of FY2024(Apr. 1, 2024 – Jun. 30, 2024)
AmountComposition (%)
1,157,901
12.8
1,944,245
21.6
1,773,116
19.7
4,141,769
45.9
519
0.0
9,017,552
100.0(b) Orders received and order backlog(Thousands of yen)First three months of FY2023
First three months of FY2024(Apr. 1, 2023 – Jun. 30, 2023)(Apr. 1, 2024 – Jun. 30, 2024)
Product category
Orders received
Order backlog
Orders received
Order backlog
Printed Circuit Board design solutions
1,911,576
1,690,152
1,092,887
1,650,755
Circuit design solutions
2,503,349
2,372,339
2,473,334
2,851,320
IT solutions
2,600,304
2,802,913
2,920,879
2,910,331
Client services
4,385,124
13,735,252
4,999,305
14,885,344
Others
1,385
3,586
1,382
1,400
Total
11,401,741
20,604,245
11,487,790
22,299,152
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
E3.series
Major products of Circuit design solutions
E3.infinite
Cabling Designer
Harness Designer
DS-CR
DS-2 Expresso
DS-E3
Major products of IT solutions
DS-E3.infinite
GENESYS
PreSight visual BOM

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been preparedin accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer
an English translation.

10