Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Based on Japanese GAAP)
July 25, 2024
Company name:SHINKO ELECTRIC INDUSTRIES CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

6967
URL https://www.shinko.co.jp
Representative Director of Board, President Susumu Kurashima

Inquiries:General Manager, Corporate Planning Div.
Scheduled date to commence dividend payments:

Takahiro Kiyono–Preparation of supplementary material on financial results:
Holding of financial results meeting:

NoNo

TEL026-283-1000(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended June 30, 2024
53,358
8.4
7,254
96.3
6,935
23.8
4,958
35.7
Three months ended June 30, 2023
49,206 (38.0)
3,695 (85.8)
5,601 (80.1)
3,653 (81.3)
Earnings per share

Diluted earnings per share

Yen
36.70
27.04

Three months ended June 30, 2024
Three months ended June 30, 2023

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
397,348
393,750

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

Equity ratioMillions of yen
270,394
264,977

%
68.0
67.3

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
25.00

Yen–

Yen
0.00

Yen
25.00

0.00

–

0.00

0.00

Year ended March 31, 2024
Year ending March 31, 2025
Year ending March 31, 2025 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Net sales
Millions of yen
Six months ending
September 30, 2024
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

115,000

9.4

16,00039.5

16,00013.7

11,000

12.5

81.41

250,000

19.1

44,00077.3

45,00065.1

30,00061.2

222.031

4. Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024:

No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

135,171,942 shares As of March 31, 2024

135,171,942 shares

Number of treasury shares at the end of the period
As of June 30, 2024

54,515 shares As of March 31, 2024

54,462 shares

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

135,117,469 shares Three months ended June 30, 2023

2135,106,493 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

82,80756,71676,72458,292Merchandise and finished goods
Work in process

8,583
14,245

7,510
16,263

Raw materials and supplies
Other

7,963
14,1508,334
13,073

Allowance for doubtful accounts

(6)

(6)

184,459

180,192

78,11878,704

Machinery, equipment and vehicles, netTools, furniture and fixtures, net

38,317
3,814

39,6474,169

LandConstruction in progress

10,25571,478

10,276
77,846

Total property, plant and equipment

201,984

210,644

Intangible assets
Investments and other assets

1,175

1,183

Investment securities
Retirement benefit asset

53
2,524

54
2,572

Deferred tax assetsOther

2,459
1,102

1,409
1,299

(8)

(8)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

6,131

5,327

209,291

217,155

393,750

397,348

(Millions of yen)
As of March 31, 2024

As of June 30, 2024

Liabilities
Current liabilities
Accounts payable - trade28,16428,920

Short-term borrowings
Accounts payable - other

30,00017,30630,00018,891

Income taxes payable
Accrued expenses3,366
10,053

1,160
8,003

Contract liabilities
Other

35,912
2,143

33,768
4,537

Total current liabilities

126,946

125,281

Non-current liabilities
Retirement benefit liability

1,101

1,103

725

568

Other
Total non-current liabilities

1,826

1,671

128,773

126,953

Share capital
Capital surplus

24,22324,222

24,22324,222Retained earnings
Treasury shares

215,736(61)

220,694(62)

Total shareholders' equity

264,119

269,077

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

44

Deferred gains or losses on hedges
Foreign currency translation adjustment

(103)
513

(260)
1,100

Remeasurements of defined benefit plans

443

472

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4857

1,316

264,977

270,394

393,750

397,348

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended

Three months ended

June 30, 2023

June 30, 2024Net sales
Cost of sales

49,20642,07853,35842,390Gross profit

7,128

10,968Selling, general and administrative expenses

3,432

3,713

Operating profit

3,695

7,254

155
1,320

141–

448

125

1,924

267

Interest expenses
Foreign exchange losses

16–

26555

Other

1

3

Non-operating income
Interest income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

18585

5,601

6,935

380

62

38062Profit before income taxes

5,220

6,873

Income taxes - current
Income taxes - deferred

201
1,365

914
1,001

Total income taxes

1,566

1,915

Profit

3,653

4,958

Profit attributable to owners of parent

3,653

4,958

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2023

June 30, 2024
3,653

4,958

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges0(225)

0(157)

Foreign currency translation adjustmentRemeasurements of defined benefit plans, net of tax

798
69586
29Total other comprehensive income

643

459

4,297

5,417

4,297

5,417––

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Three months ended

Three months ended

June 30, 2023

June 30, 2024
5,220

6,873

Depreciation
Increase (decrease) in retirement benefit liability

6,299
(43)

5,855
(47)

Interest and dividend income
Interest expenses(159)
16(146)26

Foreign exchange losses (gains)
Loss on retirement of property, plant and equipment

(305)
380

(51)
62

Decrease (increase) in trade receivables
Decrease (increase) in inventories

6,756
2,569

(1,125)(1,257)

Increase (decrease) in trade payables
Increase (decrease) in accrued expenses

314(2,771)309(2,081)

Increase (decrease) in contract liabilities
Other, net(472)5,491(2,143)
3,123

Subtotal

23,295

9,397

158
(16)

145
(21)

Income taxes refund (paid)(11,324)(2,908)Net cash provided by (used in) operating activities

12,112

6,613

Payments into time deposits
Proceeds from withdrawal of time deposits

(350)
368

(97)
97

Purchase of property, plant and equipment
Purchase of intangible assets(11,896)(60)(12,790)
(59)

(213)

(267)

(12,152)(13,117)

Dividends paid
Other, net(3,079)
(27)

–(41)

Net cash provided by (used in) financing activities(3,106)(41)

Effect of exchange rate change on cash and cash equivalents

1,001

451

Interest and dividends received
Interest paid

Cash flows from investing activities

Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Net increase (decrease) in cash and cash equivalents(2,145)(6,094)

Cash and cash equivalents at beginning of period

115,592

82,475

Cash and cash equivalents at end of period

113,446

76,3807