Financial Results for the Fiscal Year Ended March 31, 2022 [Japan GAAP] (Consolidated)
May 13, 2022
Company Name:
Securities Code:
Representative:
Contact:

Fukoku Co., Ltd.
5185
(Title)President & CEO(Title)Corporate Officer and General Manager
of Finance Department
Scheduled date of Annual Meeting of Shareholders:
Scheduled filing date of the securities report:
Scheduled commencement date of dividends payment:
Supplementary materials for financial results::
Financial results briefing::

Exchange listed on:
Tokyo Stock Exchange
URL
https://www.fukoku-rubber.co.jp/(Name)
Takashi Ogawa(Name)
Norio Nakatsugawa(TEL) 048-615-4400
June 28, 2022
June 28, 2022
June 13, 2022
Yes
Yes (For institutional investors and analysts)(Amounts rounded down to the nearest millions of yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 2022 (From April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results(Percentages represent year-on-year changes.)
Net sales
Fiscal year ended March 31,
2022
Fiscal year ended March 31,
2021(Note) Comprehensive income:Operating profit

million yen%

million yen%

million yen%

million yen%

71,504

-

1,749

152.4

2,522

75.7

2,084

66.2

63,214

-15.5

693

-21.1

1,435

46.6

1,254

305.7

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021
Profit per share –Profit per sharedilutedFiscal year ended March 31,
2022
Fiscal year ended March 31,
2021(Reference) Equity method
investment gain (loss):

Profit attributable to ownersof parent

Ordinary profit

3,475 million yen
622 million yen
Profit toshareholders’ equity[458.5%][88.6%]
Ordinary profit tototal assets

Operating profit to
net sales

yen

yen

%

%

%

127.24

-

6.7

3.9

2.4

75.69

-

4.2

2.2

1.1

Fiscal year ended March 31, 2022

16 million yen

Fiscal year ended March 31, 2021
29 million yen(Note) The Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., at the beginning of
the fiscal year under review. Since this change affects net sales figures, year-on-year changes in net sales for the fiscal year ended March 31,
2022, are not shown here.

(2) Consolidated Financial Positions
Total assets

Net assets

million yen

As of March 31, 2022
As of March 31, 2021
(Reference) Shareholders’ equity:

Shareholders’ equity ratio

million yen

65,03963,817
Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

34,37732,32132,224 million yen
30,085 million yen

Net assets per share

%

yen

49.5
47.1

2,002.05
1,814.33(3) Consolidated Cash Flows
Cash flow from operating
activities

Cash flow from investing
activities

Cash flow from financing
activities

Cash and cash equivalents
at end of period

million yen

million yen

million yen

million yen

5,344-2,846-2,815

8,782

4,754

-4,026

-859

8,668

Fiscal year ended March 31,
2022
Fiscal year ended March 31,
2021

2.

Dividends
Annual dividends

Fiscal year ended March 31,
2021
Fiscal year ended March 31,
2022
Fiscal year ending March 31,
2023 (forecast)

Total

Total amount ofannualdividends

Dividend
payout ratio(consolidated)

Ratio of dividends
to net assets(consolidated)

End of Q1

End of Q2

End of Q3

End of Q4

yen

yen

yen

yen

yen

million yen

%

%

-

0.00

-

22.00

22.00

364

29.1

1.2

-

29.00

-

20.00

49.00

803

38.5

2.6

-

25.00

-

25.00

50.00

29.8

3.

Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31,
2023)(Percentages represent year-on-year changes.)
Net sales

Full year*

Operating profit

Profit attributable toowners of parent

Ordinary profit

Profit per share

million yen%

million yen%

million yen%

million yen%

yen

77,000

7.7

3,700

111.5

3,800

50.6

2,700

29.5

167.75

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2021

17,609,130
shares
1,026,754
shares
16,575,889
shares

Notes
(1)

(2)

(3)

Changes in major subsidiaries during the fiscal year under review (Changes in specific subsidiaries
that will accompany a change in scope of consolidation)

:

None

Change in accounting policies or estimates and retrospective restatements(i)
Change in accounting policies in accordance with revision of accounting standards(ii) Change in accounting policies other than item i) above(iii) Change in accounting estimates(iv) Retrospective restatements

:
:
:
:

Yes
None
None
None

Number of shares issued (common shares)(i)
Number of shares issued at the end of the period(including treasury shares)(ii)

Number of treasury shares at the end of the period(iii)

Average number of shares issued during the period

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2022

17,609,130
shares1,513,521
shares16,383,988
shares(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 2022 (From April 1, 2021 to March 31, 2022)(1) Non-Consolidated Business Results(Percentages represent year-on-year changes.)
Net sales
Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2021

Operating profit

Ordinary profit

Profitmillion yen%

million yen%

million yen%

million yen%

31,958

-

204

-

1,073

-36.6

825

-43.1

30,154

-15.0

-564

-

1,693

71.7

1,452

91.2

Profit per share

Profit per share – diluted
yen

yen

Fiscal year ended
50.39
March 31, 2022
Fiscal year ended
87.61
March 31, 2021
(Note) The Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., at the beginning of
the fiscal year under review. Since this change affects net sales and operating profit figures, year-on-year changes for the fiscal year ended
March 31, 2022, are not shown here.

(2) Non-Consolidated Financial Positions
Total assets

Net assets

million yen

As of March 31, 2022
As of March 31, 2021
(Reference) Shareholders’ equity:**

33,792
34,118
Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

Shareholders’ equity ratio

million yen

18,816
19,337
18,816 million yen
19,337 million yen

Net assets per share

%

yen

55.7
56.7

1,169.06
1,166.14

Financial results are not subject to auditing performed by a Certified Public Accountant or audit firm.
Explanation of appropriate use of operating results forecasts and other special notes
Any forward-looking statements, such as the financial results outlook, included in this material are based on information the Company presently
has and certain assumptions the Company considers reasonable, and they do not constitute a promise that the Company will achieve them. In
addition, the actual financial results may differ significantly due to various factors. For assumptions for operating results forecasts and points toconsider in utilizing them, please see “1. Overview of operating results, etc., (4) Future outlook” on Page 3 of the attachments.
* This document is an English translation of a statement initially written in Japanese. The Original Japanese document should be considered as theprimary version.

 Table of Contents of Attachments
1. Overview of Operating Results, etc.

2(1) Overview of operating results for the fiscal year under review

2(2) Overview of financial position for the fiscal year under review

2(3) Overview of cash flows for the fiscal year under review

3(4) Future outlook

3(5) Basic policy for appropriation of profits and dividends for the fiscal year under review and next fiscal year 3
2. Basic Approach towards Selection of Accounting Standard

3

3. Consolidated Financial Statements and Key Notes

4(1) Consolidated balance sheet

4(2) Consolidated statement of income and consolidated statement of comprehensive income

6

Consolidated statement of income

6

Consolidated statement of comprehensive income

7(3) Consolidated statement of changes in equity

8(4) Consolidated statement of cash flows

10(5) Notes to consolidated financial statements

12(Notes to assumptions for on going concerns)

12(Change in accounting policies)

12(Segment information)

13(Per-share information)

16(Important subsequent events)16

1. Overview of Operating Results, etc.
(1) Overview of operating results for the fiscal year under review
During the fiscal year under review, the global economy recovered slowly due to the spread of policies aimed at both epidemic
prevention and economic recovery in various countries around the world, despite a rebound in COVID-19 infections. While there
were pressures on corporate management, such as production adjustment by automakers due to an insufficient semiconductor
supply and increases in raw materials costs, transportation costs and fuel expenses, demand generally recovered in the Group'sbusiness because restrictions on economic activities were alleviated around the world.
Under this management environment, the Group also saw a recovery in orders, and consolidated net sales increased 13.1% year
on year to 71,504 million yen. In terms of profit/loss, as a result of the increase in net sales and continuous initiatives forstrengthening the Group's overall structure and improving its production system, operating profit was 1,749 million yen, up
152.4% on a year-on-year basis, and ordinary profit increased by 75.7% on a year-on-year basis to 2,522 million yen. Profit
attributable to owners of the parent was 2,084 million yen, up 66.2% on a year-on-year basis. While net sales decreased 1,527
million yen due to the adoption of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020;
hereinafter the “Revenue Recognition Accounting Standard”), etc., the effect on profit/loss was insignificant.
The Group’s business performance by segment is as follows.

Functional Parts Business
Orders slowed down in the second half of the fiscal year under review due to production adjustment by automakers in responseto an insufficient semiconductor supply, but the trend for the full year was one of recovery. As a result, net sales increased 10.1%
year-on-year to 30,910 million. Segment income increased 23.4% year-on-year to 3,137 million yen supported by structuralreforms including streamlining production and cutting costs, despite the pressure of rising raw materials prices and surging
transportation costs. Net sales decreased 237 million yen due to the adoption of the Revenue Recognition Accounting Standard,etc., but this did not effect segment income.

Anti-Vibration Parts BusinessNet sales increased 19.1% year-on-year to 28,334 million yen supported by orders for construction machinery. Segment income
decreased 25.7% year-on-year to 824 million yen due to surging costs for materials for metal parts. Net sales decreased 25 million
yen due to the adoption of the Revenue Recognition Accounting Standard, etc., but this did not significantly effect segment
income.

Metal BusinessNet sales remained flat year on year at (increased 0.3% to) 5,502 million yen. Segment loss was 175 million yen (compared to aloss of 563 million yen for the same period of the previous fiscal year) due to a surge in costs for materials for metal parts
offsetting the emerging effect of efforts for streamlining. Net sales decreased 1,227 million yen due to the adoption of the
Revenue Recognition Accounting Standard, etc., but this did not effect segment income.

Hose BusinessNet sales increased 24.3% year-on-year to 4,377 million yen as orders remained steady. Segment income surged from a loss of
155 million for the same period of the previous year to a total of 94 million yen due to increased net sales. Net sales fell 36
million yen due to the adoption of the Revenue Recognition Accounting Standard, etc., but this did not effect segment income.

Industrial Equipment BusinessNet sales increased 4.4% year-on-year to 3,045 million yen as orders remained steady. Segment income increased 90.7% yearon-year to 520 million yen due to cutting costs.

(2) Overview of financial position for the fiscal year under review
Assets, liabilities and net assets(Assets)
Total assets increased by 1,221 million yen from the end of the previous fiscal year to 65,039 million yen.
This is due primarily to an increase in current assets by 1,525 million yen caused by an increase in merchandise and finishedgoods as a result of the recovery in orders. Non-current assets decreased by 304 million yen due to a decrease in property, plantand equipment as a result of suppressed capital investment.

(Liabilities)
Liabilities decreased by 833 million yen from the end of the previous fiscal year to 30,662 million yen.
This is due primarily to a decrease in current liabilities by 478 million yen as a result of a decrease in borrowings.
(Net assets)
Net assets increased by 2,055 million yen from the end of the previous fiscal year to 34,377 million yen.
This is due primarily to an increase in retained earnings of 1,238 million yen and an increase in foreign currency translation
adjustments of 1,400 million yen.

(3) Overview of cash flows for the fiscal year under review
Cash and cash equivalents (hereinafter “funds“) as of the end of the fiscal year under review were 8,782 million yen, up 113
million yen compared to the end of the previous fiscal year.
Cash flows and the factors for changes thereof in the fiscal year under review are as follows.
(Cash flows from operating activities)
Funds provided by operating activities were 5,344 million yen (compared to 4,754 million yen in the same period of theprevious year). This is due primarily to an increase in funds as a result of depreciation of 4,369 million yen and profit before
income taxes of 2,553 million yen.
(Cash flows from investing activities)
Funds used in investing activities were 2,846 million yen (compared to 4,026 million yen in the same period of the previousyear). This is due primarily to the acquisition of property, plant and equipment of 2,772 million yen.
(Cash flows from financing activities)
Funds used in financing activities were 2,815 million yen (compared to 859 million yen in the same period of the previousyear). This is due primarily to repayments of borrowings exceeding income by 1,362 million yen.

(4) Future outlook
The future outlook is quite uncertain. While the impact of the COVID-19 pandemic will gradually lessen, an insufficient supplyof semiconductors is expected to remain for the time being. The surge in raw materials and fuel prices is expected to continue due
to Russia's invasion of Ukraine, and the Company anticipates a large impact on the economy.
Amid such circumstances, the Group will promote the development and nurturing of next-generation finished goods for which
there are strong social needs, including measures for CASE, lower the breakeven point by enhancing efficiency in indirect
operations and further driving activities to streamline production, and improve the resilience of the corporate structure in a
Company-wide effort, in order to maximize profit.
For the fiscal year ending March 31, 2023, the Company expects net sales of 77,000 million yen, operating profit of 3,700
million yen, ordinary profit of 3,800 million yen, and profit attributable to owners of the parent of 2,700 million yen.

(5) Basic policy for appropriation of profits and dividends for the fiscal year under review and next fiscal year
The Company positions the return of profits to shareholders as a significant managerial issue, and sets the return of profits toshareholders in accordance with its performance while maintaining stable dividends, and taking internal reserves into
consideration with future business development and business characteristics in mind, as one of the basic policies of the Company.
Under this policy, the Company has decided to set the consolidated dividend payout ratio of 30% as the standard, and 20 yen per
share a year (10 yen per share for the interim and year-end dividends, respectively) as the minimum dividend, except in the casewhere performance is extremely sluggish due to rapid changes in the management environment.
As the year-end dividend for the fiscal year under review, the Company will pay 20 yen per share as indicated in the Notice ofDividends of Surplus published on May 13, 2022.
Regarding the dividends for the next fiscal year, the Company plans to pay 50 yen per share a year, with a consolidated
dividend payout ratio of 30% as the standard.

2. Basic Approach towards Selection of Accounting Standard
The Group’s policy is to prepare consolidated financial statements based on Japan GAAP for the time being, while taking thecomparability of consolidated financial statements between fiscal years and between companies into consideration.
With regard to application of the International Accounting Standards, the Group will take appropriate action in light of thesituation at home and abroad.

3. Consolidated Financial Statements and Key Notes(1) Consolidated balance sheet(Million yen)Previous fiscal year
As of March 31, 2021

Fiscal year under review
As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
Accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods

8,992
15,886

9,301
-

-

949
13,331

2,827

3,112

3,990

5,256

Work in process
Raw materials and supplies

1,060
2,200

1,236
3,112

Other
Allowance for doubtful accounts

1,299
-37

1,495
-51

Total current assets

36,21837,744

Buildings and structures, net
Machinery, equipment and vehicles, net

7,235
10,040

7,848
9,640

Tools, furniture and fixtures, net
Land

910
5,806

969
5,844

Leased assets, net
Construction in progress

43
1,146

40
409

Total property, plant and equipment

25,18424,753

784

878

784

878

Investment securities
Long-term prepaid expenses

745
0

734
31

Retirement benefit assets
Deferred tax assets

190
471

203
481

Other
Allowance for doubtful accounts

234
-13

211
-

Total investments and other assets

1,629

1,662

27,59927,29463,81765,039Non-current assets
Property, plant and equipment

Intangible assets
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets

(Million yen)Previous fiscal year
As of March 31, 2021

Fiscal year under review
As of March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

4,460
4,733

4,741
4,589

Short-term borrowings
Current portion of long-term borrowings

6,427
2,323

5,644
2,141

Income taxes payable
Provision for bonuses

209
798

297
934

Notes payable - facilities
Other

247
4,070

595
3,846

Total current liabilities

23,27022,792Long-term borrowings
Deferred tax liabilities

3,338
506

3,143
489

Retirement benefit liabilities
Provision for retirement benefits for directors (andother officers)
Other

2,296

2,540

144

146

1,940

1,549

Non-current liabilities

Total non-current liabilities

8,225

7,870

31,49630,662

Shareholders’ equity
Share capital

1,395

1,395

Capital surplus
Retained earnings

1,571
28,315

1,572
29,554

Total liabilities
Net assets

Treasury shares-933-1,41630,34831,106

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

109

93

1

-1

Foreign currency translation adjustment

-374

1,025

Total shareholders' equity

-262

1,117

Non-controlling interests

Total accumulated other comprehensive income

2,235

2,152

Total net assets

32,321

34,377

63,81765,039Total liabilities and net assets

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)Net sales
Cost of sales

Previous fiscal year
(From April 1, 2020
to March 31, 2021)
63,21453,795(Million yen)
Fiscal year under review(From April 1, 2021
to March 31, 2022)
71,50459,995Gross profit

9,418

11,508Selling, general and administrative expenses
Salaries

3,262

3,669

1,816
219

2,289
195

22

15

109

130

196
-

222
29

Other

3,097

3,205

Total selling, general and administrative expenses

Freight and other
Depreciation
Provision for retirement benefits for directors (andother officers)
Retirement benefit expenses
Provision for bonuses
Provision of allowance for doubtful accounts

8,725

9,758

Operating profit

693

1,749

Non-operating income
Interest income

3730

Dividend income
Royalty income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Gain on sale of non-current assets

74
27

7
-

29

16

48

261
266

Subsidies for employment adjustment
Other

460
220

201
174

Total non-operating income

899

957

Interest expenses
Foreign exchange losses

108
9

94
-

Loss on sale of non-current assets
Loss on retirement of non-current assets

0
29

33
39

Other

9

16

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses

156

184

1,435

2,522

-

31

-

31

17

-

17

-

1,417

2,553

Income taxes - current

375

583

Income taxes - deferred

-144

-23

Profit before income taxes

Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

230

559

1,187

1,994

-67

-90

1,254

2,084

(Consolidated statement of comprehensive income)

1,187(Million yen)
Fiscal year under review(From April 1, 2021
to March 31, 2022)
1,994

51

-15

0
-621

-1
1,441

5

56

-564

1,480

Comprehensive income

622

3,475

Profit attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

744

3,465

-122

9

Previous fiscal year
(From April 1, 2020
to March 31, 2021)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

(3) Consolidated statement of changes in equity
Previous fiscal year (From April 1, 2020 to March 31, 2021)(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of
period1,395

Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity1,576

27,226-951

29,246

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

-165

-165

1,254

1,254

-4

1,395

17

13

-4

1,088

17

1,101

1,571

28,315-933

30,348Foreign currencytranslation
adjustment

Non-controllinginterests

Total net assets

188

2,447

31,941

Accumulated other comprehensive income
Other securities
Deferred gains or
Valuation difference losses on hedges
Balance at beginning of
period58

0Changes during period
Dividends of surplus
Profit attributable toowners of parent
Disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

-165
1,254
13
51

0

-562

-211

-721

51

0

-562

-211

380

109

1

-374

2,235

32,321Fiscal year under review (From April 1, 2021 to March 31, 2022)(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCumulative effect ofchanges in accounting
policies
Restated balance

1,395

Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity1,571

28,315-933

30,348

0
1,395

1,571

28,3150-933

30,349Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

-846

-846

2,084

2,084

1

1,395

-494

-494

12

13

1

1,238

-482

757

1,572

29,554-1,416

31,106

Foreign currencytranslation
adjustment

Non-controllinginterests

Total net assets

-374

2,235

32,321

Accumulated other comprehensive income
Other securities
Deferred gains or
Valuation difference losses on hedges
Balance at beginning of
periodCumulative effect ofchanges in accounting
policies
Restated balance

109

1

0
109

1

-374

2,235

32,321

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

-846
2,084
-494
13
-15

-3

1,400

-82

1,298

-15

-3

1,400

-82

2,055

93

-1

1,025

2,152

34,377

(4) Consolidated statement of cash flows(Million yen)
Fiscal year under review(From April 1, 2021
to March 31, 2022)

Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit assets andliabilities
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Interest and dividend income

1,417
4,344

2,553
4,369

24
59

-1
135

74

199

15

-0

-112

-37

Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant and equipment

108

94

-29

-16

7
-48

-103
-232

Loss on retirement of property, plant and equipment
Loss (gain) on sale of investment securities

29
-

39
-31

Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables

17
-633

2,080

Decrease (increase) in inventories
Increase (decrease) in trade payables

297
-663

-2,004-329

Decrease (increase) in other assets
Increase (decrease) in other liabilities

-63
240

-122
-257

Other

145

-336

Subtotal

5,234

5,998

Interest and dividends received

129

45

Interest paid
Income taxes refund (paid)

-107
-501

-97
-601

Cash flow from operating activities

4,754

5,344

(Million yen)
Fiscal year under review(From April 1, 2021
to March 31, 2022)

Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Cash flows from investing activities
Payments into time deposits

-0

-174

96
-0

-35

-4,325224-2,772
154

Purchase of intangible assets
Purchase of investment securities

-63
-2

-124
-2

Proceeds from sale of investment securities
Other

44

37
70

-4,026-2,846

Proceeds from short-term borrowings
Repayments of short-term borrowings

810-1,087235-1,178Proceeds from long-term borrowings
Repayments of long-term borrowings

2,240-2,5491,915-2,334

Repayments of lease obligations
Purchase of treasury shares

-19
-

-18
-494

Dividends paid
Dividends paid to non-controlling interests

-165
-88

-846
-93

Cash flow from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents-859-2,815

-77

430

-208

113

Cash and cash equivalents at beginning of period

8,877

8,668

Cash and cash equivalents at end of period

8,668

8,782

Proceeds from withdrawal of time deposits
Purchase of long-term prepaid expenses
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Cash flow from investing activities
Cash flow from financing activities

(5) Notes to consolidated financial statements(Notes to assumptions for on going concerns)
Not applicable.
(Change in accounting policies)(Adoption of Accounting Standard for Revenue Recognition)
The Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020;
hereinafter the “Revenue Recognition Accounting Standard”), etc., at the beginning of the fiscal year under review. Under thisstandard, revenue is recognized when control of promised goods or services is transferred to the customer, for the amount
expected to be received in exchange for the goods or services.
The major change is that in the case of transactions, where the Company processes raw materials bought from a customer andthen sells them back to that customer, the Company now recognizes the net amount of payment received from the customer minus
the purchase price of raw materials as revenue, whereas previously the Company would recognize the total amount of payment
including the purchase price of raw materials as revenue.
In addition, for transactions in which the Company's role in selling finished goods to customers falls under the category ofagent, the Company previously recognized revenue based on the total amount of payment received from the customer, but that haschanged to a method of recognizing revenue based on the net amount of such total payment minus the amount paid to third
parties.
Furthermore, regarding royalty income received from entities accounted for using the equity method for the provision oftechnologies that are the results of our research and development activities, the Company previously recognized it as nonoperating income, but that has changed to a method of presenting it as net sales, starting with the fiscal year under review, since it
was found that such royalty income falls under the category of revenue from contracts with customers under the Revenue
Recognition Accounting Standard.
The Company has applied the Revenue Recognition Accounting Standard, etc., in accordance with the transitional treatment
provided in the proviso of Paragraph 84 of the Guidance on Accounting Standard for Revenue Recognition. After the cumulative
effect of retrospectively applying the new accounting policy prior to the beginning of the fiscal year under review was added to or
subtracted from the beginning balance of retained earnings, the Company began using the new accounting policy starting with the
beginning balance of the current fiscal year.
“Notes and accounts receivable - trade,“ which was previously presented in the section of current assets in the consolidatedbalance sheet for the previous fiscal year, is included in “Notes receivable - trade“ and “Accounts receivable - trade“ starting fromthe fiscal year under review. However, in accordance with the transitional treatment specified in Paragraph 89-2 of the Revenue
Recognition Accounting Standard, the prior year's consolidated financial statements have not been reclassified to conform to thenew presentation.
As a result, net sales and cost of sales in the consolidated statement of income for the fiscal year under review decreased 1,527
million yen and 1,554 million yen, respectively, compared to prior to the adoption of the Revenue Recognition AccountingStandard. The effect on operating profit, ordinary profit, and profit before income taxes was insignificant. The effect on thebalance at beginning of period of retained earnings was also insignificant.
(Adoption of Accounting Standard for Fair Value Measurement)
The Company adopted the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019);
hereinafter the “Fair Value Measurement Accounting Standard”), etc., at the beginning of the fiscal year under review. In
accordance with the transitional treatment specified in Paragraph 19 of the Fair Value Accounting Standard and Paragraph 44-2 ofthe Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Company applies the new
accounting policies set forth in the Fair Value Accounting Standard prospectively. The adoption of the new accounting standard
had no effect on consolidated financial statements.

(Segment information)
Segment information
1. Overview of Reporting Segments(1) Methods to determine reporting segments
Reporting segments of the Company are components of the Company for which separate financial information can beobtained, and for which the Board of Directors conducts reviews on a regular basis to determine the allocation of management
resources and assess business performance.
The Company has business units by finished goods line at its head office. Each business unit develops comprehensive
strategies for Japan and overseas and carries out business activities regarding the product line it handles. The parent company,
however, directly supervises the businesses of its subsidiaries in Japan that do not belong to the finished goods lines of thebusiness units mentioned above.
This means that the Company consists of segments by finished goods line based on business units and business segments ofsubsidiaries in Japan that do not belong to the business units. Among them, the Functional Parts Business, the Anti-Vibration
Parts Business, the Metal Business, the Hose Business, and the Industrial Equipment Business compose the reporting segments.
(2) Categories of finished goods and services belonging to each reporting segment
The Functional Parts Business manufactures and sells seal parts and wiper blade rubber, among other finished goods. The
Anti-Vibration Parts Business manufactures and sells dampers and mounts, among other finished goods. The Metal Business
manufactures and sells metal parts for trucks and construction machinery, among other finished goods. The Hose Business
manufactures and sells hoses and other rubber finished goods. The Industrial Equipment Business manufactures and sells officeautomation equipment, medical equipment, motors and urethane, among other finished goods.
2. Method Used to Calculate Net Sales, Income or Loss, Assets, Liabilities and Other Items by Reporting Segment
Accounting procedures adopted for the reported business segments are the same as those adopted for preparation of
consolidated financial statements.
Income of the reporting segments is based on operating profit.
Intersegment revenue or transfer is based on market prices.
As described in “Changes in accounting policies,” the Company adopted the Revenue Recognition Accounting Standard, etc.
starting with the consolidated financial statements for the fiscal year under review and changed its accounting method forrevenue recognition. Accordingly, the method of accounting for profit or loss in the business segments has also been changed.
As a result of these changes, net sales for the Metal Business, the Functional Parts Business, the Hose Business, and theAnti-Vibration Parts Business have declined by 1,227 million yen, 237 million yen, 36 million yen, and 25 million yen
respectively for the fiscal year under review, compared to the figures otherwise calculated by the accounting method used prior
to the changes. The effect of these changes on profit and loss in the segments was insignificant.

3. Information on Net Sales, Income or Loss, Assets, Liabilities and Other Items by Reporting Segment
Previous fiscal year (From April 1, 2020 to March 31, 2021)
Reporting segment
Total(Million yen)Amountreported
Adjustments in consolidated(Note) 1
financialstatements(Note) 2

Functional
Parts

AntiVibration
Parts

Metal

Hose

27,59523,788

5,481

3,430

2,918

63,214-

63,214

Intersegment
sales or transfer

466

1

3

90

-

561

-561

-

Total

28,062

23,789

5,484

3,521

2,918

63,776-561

63,214

Segment income(loss)

2,541

1,109

-563

-155

272

3,206

-2,512693

Segment assets

25,134

24,239

3,554

3,938

2,735

59,602

4,214

63,817

1,667

1,942

207

329

125

4,273

71

4,344

Industrial
Equipment

Net sales
Sales to external customers

Other items
Depreciation

Investment in entities
accounted for
409
409
409
using equity method
Increase in property, plantand equipment
1,414
2,089
113
261
58
3,939
61
4,000
and intangible assets(Notes) 1. Adjustments are as follows:(1) The adjustment of -2,512 million yen for segment income (loss) includes an inter-segment elimination of 1 million yen
and corporate expenses that are not allocated to any reporting segments totaling -2,513 million yen. Corporate expenses
are primarily general and administrative expenses that are not attributable to any reporting segments.
(2) The adjustment of 4,214 million yen for segment assets includes an inter-segment elimination of -905 million yen andcompany-wide assets that are not allocated to any reporting segments totaling 5,120 million yen. Company-wide assets
are primarily cash and deposits that are not attributable to any reporting segments.
(3) The adjustment of 71 million yen for depreciation is primarily depreciation of non-current assets for the research anddevelopment departments of the parent company.
(4) The adjustment of 61 million yen for the increase in property, plant and equipment and intangible assets is the increasein company-wide assets that are not allocated to any reporting segments.
2. Segment income (loss) is adjusted to be consistent with operating profit recorded in the consolidated financial statements.

Fiscal year under review (From April 1, 2021 to March 31, 2022)
Reporting segment
Total(Million yen)Amountreported
Adjustments in consolidated(Note) 1
financialstatements(Note) 2

Functional
Parts

AntiVibration
Parts

Metal

30,371

28,329

5,501

4,256

3,045

71,504-71,504

Intersegment
sales or transfer

538

5

0

120

-

665

-665

-

Total

30,91028,334

5,502

4,377

3,045

72,170-665

71,504

Segment income(loss)

3,137

824

-175

94

520

4,400

-2,651

1,749

Segment assets

25,43625,226

3,833

4,249

2,752

61,4983,540

65,039

1,827

1,930

156

275

116

4,307

61

4,369

Hose

Industrial
Equipment

Net sales
Sales to external customers

Other items
Depreciation

Investment in entities
accounted for
474
474
474
using equity method
Increase in property, plantand equipment
1,447
1,499
104
172
128
3,351
165
3,517
and intangible assets(Notes) 1. Adjustments are as follows:(1) The adjustment of -2,651 million yen for segment income (loss) includes an inter-segment elimination of 16 million yen
and corporate expenses that are not allocated to any reporting segments totaling -2,667 million yen. Corporate
expenses are primarily general and administrative expenses that are not attributable to any reporting segments.
(2) The adjustment of 3,540 million yen for segment assets includes an inter-segment elimination of -934 million yen andcompany-wide assets that are not allocated to any reporting segments totaling 4,475 million yen. Company-wide assets
are primarily cash and deposits that are not attributable to any reporting segments.
(3) The adjustment of 61 million yen for depreciation is primarily depreciation of non-current assets for the research anddevelopment departments of the parent company.
(4) The adjustment of 165 million yen for the increase in property, plant and equipment and intangible assets is the increasein company-wide assets that are not allocated to any reporting segments.
2. Segment income (loss) is adjusted to be consistent with operating profit recorded in the consolidated financial statements.

(Per-share information)
Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Net assets per share
Profit per share

Fiscal year under review(From April 1, 2021
to March 31, 2022)

1,814.33 yen

2,002.05 yen

75.69 yen

127.24 yen(Notes) 1. Profit per share – diluted is not stated as there are no dilutive shares.
2. As described in “Changes in accounting policies,” the Company adopted the Accounting Standard for Revenue
Recognition. The effect on net assets per share and profit per share in the fiscal year under review is insignificant.
3. The basis for calculation of profit per share is as follows.

Previous fiscal year
(From April 1, 2020
to March 31, 2021)

Fiscal year under review(From April 1, 2021
to March 31, 2022)

Profit per share
Profit attributable to owners of parent (million yen)Amount not attributable to common shareholders (million
yen)Profit attributable to owners of parent
related to common shares (million yen)
Average number of shares issued during the period(thousand shares)

1,254

2,084

-

-

1,254

2,084

16,575

16,383(Important subsequent events)
On April 1, 2022, the Company completely shifted its defined-benefit corporate pension program to a defined-contribution
corporate pension program. The Company adopted the Accounting Procedures for Shifting between Different Retirement Benefit
Programs (ASBJ Implementation Guidelines No.1, January 31, 2002) for the accounting procedures for the shift of the pension
program. The Company plans to record extraordinary income for the next fiscal year, but the effect is still being calculated.