Financial Results Summary for the Three-Month Period Ended June 30, 2023 [Japanese GAAP](Consolidated)
July 31, 2023
Fukoku Co., Ltd.
Exchange listed on: Tokyo Stock Exchange
5185
URL https://www.fukoku-rubber.co.jp/(Title)President & CEO(Name) Ikuo Oshiro
General Manager of FinanceContact:(Title)(Name) Yukio Yamazaki(TEL) 048-615-4400
Department
Scheduled date for submission of
Scheduled commencement date ofAugust 10, 2023
quarterly report:
dividends payment:
Preparation of supplementary materials for quarterly report : None
Convening quarterly results briefing: NoneListed company:
Securities code:
Representative:(Amounts rounded down to the nearest millions of yen.)

1. Consolidated Financial Results for the Three-Month Period Ended June 30, 2023 (From April 1, 2023 to June 30,2023)(1) Consolidated Operating Results (cumulative)
Net sales

Operating profit

million yen%

million yen%

Three months ended June 30, 2023
21,506
10.9
667
Three months ended June 30, 2022
19,3892.2
447(Note) Comprehensive income
Three months ended June 30, 2023
Three months ended June 30, 2022

million yen

%

49.1
825
-66.6
1,080
706 million yen
2,405 million yen

million yen

-23.6
-22.6
(-70.6%)(26.3%)

383
861

%

-55.5
-0.6

Profit per share – diluted

Profit per share
Three months ended June 30, 2023
Three months ended June 30, 2022

(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

yen

yen

23.80
53.51

-

(2) Consolidated Financial Position
Total assets
Three months ended June 30, 2023
As of March 31, 2023
(Reference) Shareholders’ equity

Shareholders’ equity ratio

Net assets

million yen

million yen

71,171
71,530Three months ended June 30, 2023
As of March 31, 2023%

38,257
37,95235,938 million yen
35,619 million yen

50.5
49.8

2. Dividends
Annual dividends
End of Q1

End of Q2

End of Q3

End of Q4

Total

yen

yen

yen

yen

yen

As of March 31, 2023
Fiscal year ending March 31, 2024
Fiscal year ending March 31, 2024 (forecast)(Note) Revision of the dividends forecast released most recently

27.00

-

23.00

50.00

27.50
: None

-

27.50

55.00

3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31,
2024)
Net sales
million yen

Operating profit%

million yen%(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
Profit per shareowners of parent%

million yen%

yen

Full year
88,000
6.9
3,900
94.0
4,000
27.4
(Note) Revision of the consolidated results forecast released most recently: Nonemillion yen

2,900

35.8

180.02

* Notes(1) Changes in major subsidiaries during the period under review: None(Changes in specific subsidiaries resulting in changes in the scope of consolidation)(2) Adoption of special accounting procedures used in preparation of
the quarterly consolidated financial statements: Yes(Note) For details, please see “2. Quarterly Consolidated Financial Statements and Key Notes, (3) Notes to quarterly consolidated
financial statements (Adoption of special accounting procedures used in preparation of the quarterly consolidated financial
statements)” on Page 8 of the attachments.

(3) 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: None(iii) Change in accounting estimates: None(iv) Retrospective restatements: None(4) 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 endof the period(iii) Average number of shares issued
during the period (cumulative fromthe beginning of the fiscal year)**: NoneAs of June 30, 2023

17,609,130 shares As of March 31, 2023

17,609,130 shares

As of June 30, 2023

1,500,006 shares As of March 31, 2023

1,500,004 shares

As of June 30, 2023

16,109,125 shares As of June 30, 2022

16,095,595 shares

Quarterly financial results are not subject to quarterly reviews 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 to consider in utilizing them, please see “1. Qualitative Information on
Quarterly Financial Results under Review, (3) Explanation of future forecast information such as consolidated financial results
forecasts” 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 the primary version.

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○ Table of Contents of Attachments

1. Qualitative Information on Quarterly Financial Results under Review .................................................................... 2(1) Explanation of operating results .............................................................................................................................. 2(2) Explanation of financial position ............................................................................................................................. 2(3) Explanation of future forecast information such as consolidated financial results forecasts ................................... 3
2. Quarterly Consolidated Financial Statements and Key Notes ................................................................................... 4(1) Quarterly consolidated balance sheet ...................................................................................................................... 4(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ....... 6(Quarterly consolidated statement of income)(Three months ended June 30, 2023) ................................................................................................................ 6(Quarterly consolidated statement of comprehensive income)(Three months ended June 30, 2023) ................................................................................................................ 7(3) Notes to quarterly consolidated financial statements ............................................................................................... 8(Notes on going concern assumption) ................................................................................................................... 8(Notes when there is a significant change in the amount of shareholders’ equity) ................................................ 8(Adoption of special accounting procedures used in preparation of the quarterly consolidated financial
statements) ............................................................................................................................................................ 8(Segment information) .......................................................................................................................................... 9-1-

1. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results
During the three months ended June 30, 2023, the Japanese economy saw progress in the normalization of socioeconomic
activities as behavioral restrictions put in place to prevent the spread of infection were eased and COVID-19 was downgraded to acategory 5 disease. However, the outlook remained uncertain due to unstable global conditions, such as the prolonged situation in
Ukraine, rising prices due to soaring resource costs, and rapid exchange rate fluctuations.
Demand remained up in the automotive industry, where some automakers have emerged from the doldrums and are showing
signs of recovery from the semiconductor supply shortage, although others still must scale down their production plans.
Under these economic circumstances, the Group has been affected by the declining operation rate due to adjustments to
production by automakers, rising raw material and fuel costs as a result of surging resource prices, despite an increase in the gain
on conversion to the Japanese yen due to the depreciation of the yen.
Regarding financial results for the three months ended June 30, 2023, consolidated net sales increased 10.9% year on year to
21,506 million yen due to the impact of foreign exchange rates despite an income decrease resulting from adjustments to
production by automakers. Operating profit was up 49.1% year on year to total 667 million yen due to streamlining efforts, costpass-throughs, etc., which absorbed the impact of rising raw material and fuel costs. Ordinary profit decreased 23.6% year on year,
amounting to 825 million yen, since one-time income that included a gain on sales of non-current assets owned by subsidiaries
was posted in the same period last year. Likewise, since one-time income, such as earnings from the termination of the retirement
benefit plan due to the change in our company's retirement benefit plan, was posted in the same period last year, profit attributableto owners of the parent decreased 55.5% to total 383 million yen.
If the one-time income was not factored in, ordinary profit and net profit attributable to owners of the parent would be higher
than what they were in the same period last year.
The Group’s business performance by segment is as follows.
Functional Parts BusinessNet sales increased 9.1% year on year to reach 8,612 million yen due to the impact of foreign currency translation despite adecline in the operation rate as a result of production adjustments by automakers. Segment income increased 8.3% year on year tototal 806 million yen due to the effect of streamlining efforts and the passing of the rising cost of materials on to selling prices.
Anti-Vibration Parts BusinessNet sales increased 14.0% year on year to reach 9,211 million yen due to growing demand in Southeast Asia and the effect of
currency translation. Segment income was up 64.8% year on year to total 459 million yen due to the effect of streamlining efforts
and the passing of the rising cost of materials for metal parts on to selling prices.
Metal BusinessNet sales increased 11.2% year on year to 1,753 million yen due to steady orders for construction machinery. Segment income(which was a loss of 2 million yen for the same period last year) came to 25 million yen due to the effect of streamlining efforts
and the passing of the rising cost of materials for metal parts on to selling prices.
Hose BusinessNet sales climbed 10.5% year on year to total 1,369 million yen due to strong orders. Segment income increased 4.5% year on
year to hit 36 million yen.
Industrial Equipment BusinessNet sales increased 2.8% year on year to total 771 million yen. Segment income increased 18.7% year on year to 136 million
yen due to an improvement in the operation rate associated with the increase in net sales.
(2) Explanation of financial position
Total assets as of June 30, 2023 were 71,171 million yen, a decrease of 358 million yen from the end of the previous fiscal year.
Current assets decreased 503 million yen from the end of the previous fiscal year to 42,024 million yen. This was primarily
attributable to a decrease in raw materials and supplies.
Non-current assets rose 144 million yen over the end of last fiscal year to total 29,146 million yen. This was mainly due to anincrease in intangible assets such as software.

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Liabilities totaled 32,913 million yen, a decrease of 664 million yen from the end of the previous fiscal year. This decrease wasprimarily attributable to the repayment of borrowings.
Net assets totaled 38,257 million yen, an increase of 305 million yen from the end of the previous fiscal year. This wasprimarily due to an increase in foreign currency translation adjustments.
As a result, the shareholders’ equity ratio came to 50.5%, up 0.7 percentage points from the end of the previous fiscal year.
(3) Explanation of future forecast information such as consolidated financial results forecasts
While socioeconomic activities are returning to normal due to the easing of behavioral restrictions put in place to prevent the
spread of COVID-19, the future remains uncertain due to the prolonged situation in Ukraine, rising prices, and rapid exchange
rate fluctuations.
Working against this backdrop, Fukoku aims to stay on track with its New Medium-Term Management Plan 2026, which wasannounced on June 28, 2023, through company-wide efforts designed to strengthen existing businesses and expand growthbusinesses as well as new businesses. In addition to these strategies, the Company will also work on reinforcing its businessfoundation with a focus on ESG, all with an aim of maximizing profitability.
There have been no changes made to the full-year consolidated financial results forecasts for the fiscal year ending March 31,
2024 announced on May 15, 2023.
The above forecasts represent the Company’s best judgment based on information currently available. Actual results may varyfrom the above forecasts due to various factors.

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2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly consolidated balance sheet(Million yen)Previous fiscal year
As of March 31, 2023

First quarter under review
As of June 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

9,972
19,731

9,792
19,551

Merchandise and finished goods
Work in process

5,858
1,322

5,878
1,356

Raw materials and supplies
Other

3,872
1,802

3,645
1,833

-31

-32

42,52842,024

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

8,278

8,278

Machinery, equipment and vehicles, net
Land

9,615
5,996

9,544
6,028

Other, net

2,005

2,003

Total property, plant and equipment

25,89625,854

1,406

1,520

824

888

874

883

Intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets

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1,699

1,771

29,001

29,146

71,53071,171

(Million yen)Previous fiscal year
As of March 31, 2023

First quarter under review
As of June 30, 2023

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

5,459
5,330

5,581
5,133

Short-term borrowings
Income taxes payable

9,800
383

9,123
391

Provision for bonuses
Other

753
4,618

508
5,057

Total current liabilities

26,34525,795

Non-current liabilities
Long-term borrowings

3,178

2,821

1,314

1,353

173

178

2,565

2,766

Retirement benefit liabilities
Provision for retirement benefits for directors (andother officers)
Other
Total non-current liabilities

7,232

7,118

33,57732,913

Share capital
Capital surplus

1,395
1,573

1,395
1,573

Retained earnings
Treasury shares

30,969-1,40330,982-1,403

Total shareholders' equity

32,53432,547

108

142

-7
2,983

-24
3,272

3,084

3,390

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests

2,333

2,319

Total net assets

37,952

38,257

71,53071,171

Total liabilities and net assets-5-(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statement of income)(Three months ended June 30, 2023)

Net sales
Cost of sales(Million yen)Three-month period in theThree-month period under review
previous fiscal year
(From April 1, 2023
(From April 1, 2022
to June 30, 2023)
to June 30, 2022)
19,38921,506
16,26018,080Gross profit

3,128

3,426

Selling, general and administrative expenses

2,680

2,759

447

667

9
2

17
3

Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains

-

5

210

206

Gain on sale of non-current assets
Other

429
30

11
48

Total non-operating income

681

293

24

56

0

-

18

63

6

14

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodLoss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on termination of retirement benefit plan
Total extraordinary income

49

135

1,080

825

2

-

554

-

557

-

Profit before income taxes

1,637

825

Income taxes - current
Income taxes - deferred

312
423

274
159

Total income taxes

736

433

Profit900

392

Profit attributable to non-controlling interests

39

8

Profit attributable to owners of parent

861

383

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(Quarterly consolidated statement of comprehensive income)(Three months ended June 30, 2023)

ProfitOther comprehensive income(Million yen)Three-month period in theThree-month period under review
previous fiscal year
(From April 1, 2023
(From April 1, 2022
to June 30, 2023)
to June 30, 2022)
900
392Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

-0
3

33
-19

1,469

288

31

11

1,504

314

Comprehensive income

2,405

706

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

2,243

689

161

16

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income-7-(3) Notes to quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Notes when there is a significant change in the amount of shareholders’ equity)
Not applicable.
(Adoption of special accounting procedures used in preparation of the quarterly consolidated financial statements)(Calculation of tax expenses)
With respect to tax expenses incurred by some consolidated subsidiaries, the Company reasonably estimated the effective tax
rate after applying tax effect accounting to profit before income taxes in the fiscal year, including the first quarter under review,and calculated them by multiplying this estimated effective tax rate by profit before income taxes.

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(Segment information)
Segment information
I. Three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
1. Information on net sales, income or loss by reporting segment
Reporting segment
AntiFunctional
Vibration
Parts
Parts

Metal

Hose

Industrial
Equipment

Total(Million yen)
Quarterly
consolidated
Adjustments statement of(Note) 1
incomeamounts(Note) 2

Net sales
Sales to external customers
Intersegment sales ortransfer
Total
Segment income (loss)

7,767

8,079

1,576

1,214

750

19,389-19,389

125

1

0

24

-

151

-151

-

7,893

8,080

1,576

1,239

750

19,540-151

19,389

744

278

-2

34

114

1,170

-723

447

(Notes) 1. The adjustment of -723 million yen for segment income (loss) includes an inter-segment elimination of 7 million yen
and corporate expenses that are not allocated to any reportable segments totaling -730 million yen. Corporate expenses
are primarily general and administrative expenses that are not attributable to any reporting segments.
2. Segment income (loss) is adjusted to be consistent with operating profit recorded in the quarterly consolidated statementof income.
2. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.
II. Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Information on net sales, income or loss by reporting segment
Reporting segment
AntiFunctional
Vibration
Parts
Parts

Metal

Hose

Industrial
Equipment

Total(Million yen)
Quarterly
consolidated
Adjustments statement of(Note) 1
incomeamounts(Note) 2

Net sales
Sales to external customers

8,429

9,208

1,752

1,344

771

21,506-

21,506

182

2

0

25

-

210

-210

-

Total

8,612

9,211

1,753

1,369

771

21,717-210

21,506

Segment income

806

459

25

36

136

1,464

-797

667

Intersegment sales ortransfer(Notes) 1. The adjustment of -797 million yen for segment income includes an inter-segment elimination of -1 million yen andcorporate expenses that are not allocated to any reporting segments totaling -795 million yen. Corporate expenses areprimarily general and administrative expenses that are not attributable to any reportable segments.
2. Segment income is adjusted to be consistent with operating profit recorded in the quarterly consolidated statement ofincome.
2. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.

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