Financial Results Summary for the Nine Months Ended December 31, 2022 [Japanese GAAP](Consolidated)
February 3, 2023
Exchange listed on:
Tokyo Stock Exchange
URL
https://www.fukoku-rubber.co.jp/(Name) Takashi Ogawa(Name) Yukio Yamazaki(TEL) 048-615-4400
February 14, 2023
-None
None
(Amounts rounded down to the nearest millions of yen.)Company Name:
Fukoku Co., Ltd.
Securities Code:
5185
Representative:(Title) President & CEO
Contact:(Title) General Manager of Finance Department
Scheduled date for submission of quarterly report:
Scheduled commencement date of dividends payment:
Preparation of supplementary materials for quarterly report:
Convening quarterly results briefing:

1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (From April 1, 2022 to
December 31, 2022)(1) Consolidated Operating Results (cumulative)
Net sales(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Operating profit

million yen%

million yen%

million yen%

million yen%

60,622

12.0

1,334

-26.2

2,493

0.2

1,911

1.9

54,149

--

1,808

--

2,487

--

1,875

--

Nine months ended
December 31, 2022
Nine months ended
December 31, 2021
(Note) Comprehensive income:Nine months ended December 31, 2022
Nine months ended December 31, 2021

5,232 million yen
2,522 million yen[107.5%][-%]

Profit per share –dilutedProfit per share
yen

yen

Nine months ended
118.74-December 31, 2022
Nine months ended
113.80-December 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 first quarter of the fiscal year ended March 31, 2022. For this reason, year-on-year changes in net
sales for the nine months ended December 31, 2021, are not shown here.

(2) Consolidated Financial Position
Total assets
Nine months ended
December 31, 2022
As of March 31, 2022
(Reference) Shareholders’ equity:

Net assets

Shareholders’ equity ratio

million yen

million yen%

75,29838,86548.4

65,03934,377
Nine months ended December 31, 2022
36,472 million yen
As of March 31, 2022
32,224 million yen

49.5

2. Dividends
End of Q1

Annual dividends
End of Q3

End of Q2yenyen

As of March 31, 2022
-29.00Fiscal year ending March-27.0031, 2023
Fiscal year ending March
31, 2023 (forecast)(Note) Revision of the consolidated results forecast released most recently

End of Q4

Total

yen

yen

yen

---

20.00

49.00

23.00

50.00

: Yes

3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2023 (from April 1, 2022, to March 31,
2023)
Net sales
million yen

Operating profit%

million yen%

Full year
80,000
11.9
1,900
8.6
(Note) Revision of the consolidated results forecast released most recently-1-(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
Profit per shareowners of parent
million yen%

million yen

%

yen

3,100
22.9
: Yes

2,100

0.7

130.36

*

Notes

(1)

Changes in significant subsidiaries during the period: Yes
Newly consolidated:-- company (Company name) -Excluded:
1 company (Company name) FUKOKU Czech s.r.o.
(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:: None(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 theperiod (including treasury shares)(ii)

Number of treasury shares at the end of theperiod(iii) Average number of shares issued during theperiod (cumulative from the beginning of the
fiscal year)

As of
December 31,
2022
As of
December 31,
2022
As of
December 31,
2022

*
*

17,609,130
shares

As of March
31, 2022

17,609,130
shares1,499,954
shares

As of March
31, 2022

1,513,521
shares

16,101,626
shares

As ofDecember 31,
2021

16,480,114
sharesQuarterly 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 theCompany will achieve them. In addition, actual financial results may significantly differ 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 beconsidered as the primary version.

-2- 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)(Nine months ended December 31, 2022) ······································································ 6(Quarterly consolidated statement of comprehensive income)(Nine months ended December 31, 2022) ······································································ 7(3) Notes to quarterly consolidated financial statements······························································· 8(Notes to assumptions for ongoing concerns) ···································································· 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(Additional information) ····························································································· 8(Segment information) ······························································································· 9-3-1. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results
Japan’s economy during the nine months ended December 31, 2022, showed signs of a recovery on the back of measures tobalance infection prevention and social and economic activities, although the spread of COVID-19 infections repeatedly
occurred. However, the economic outlook remains uncertain as concerns over an economic slowdown mounted gradually
mainly due to disruptions in supply chains caused by the prolonged war in Ukraine and rising tensions between the US andChina, surging energy prices, and a rise in the prices of imports by the rapid depreciation of the yen associated with a widening
gap in interest rates between Japan and overseas.
In the automobile industry, automakers have been forced to revise their production plans downward as they cannot securestable supplies of semiconductors and others supplies that can satisfy demand, although car demand remains high.
Under these economic circumstances, the Group has been significantly affected by the declining operation rate due toadjustments to production by automakers, rising raw material costs, transportation costs and fuel costs as a result of surging
resource prices, despite an increased gain on conversion to the Japanese yen due to the depreciation of the yen.
Regarding financial results for the nine months ended December 31, 2022, consolidated net sales increased 12.0% year-on-year
to 60,622 million yen due to the impact of foreign exchange rates despite an income decrease resulting from adjustments to
production by automakers. Operating profit decreased 26.2% year-on-year to 1,334 million yen since streamlining efforts andothers could not neutralize the impact of the rising costs of raw materials, transportation, and fuel. Ordinary profit rose 0.2%
year-on-year to 2,493 million yen. Profit attributable to owners of parent increased 1.9% year-on-year to 1,911 million yen.
The Group’s business performance by segment is as follows.

Functional Parts BusinessNet sales increased 2.9% year-on-year to 24,845 million yen due to the impact of foreign currency translation despite a decline
in the operation rate as a result of production adjustments by automakers. Segment income decreased 23.8% year-on-year to1,903 million yen due to the significant impact of rising raw materials prices and surging transportation costs.

Anti-Vibration Parts BusinessNet sales increased 21.0% year-on-year to 25,333 million yen due to steady orders for construction machinery, the launch of
new products for electric vehicles, and foreign currency translation. Segment income increased 14.4% year-on-year to 1,017
million yen.

Metal BusinessNet sales increased 17.8% year-on-year to 4,691 million yen due to steady orders for construction machinery. A segment loss of
8 million yen (which was a loss of 154 million yen in the same period last year) was posted although there was the effect of thestreamlining efforts, and a rise in materials for metal parts was passed on to selling prices to customers.

Hose BusinessNet sales increased 12.8% year-on-year to 3,758 million yen as orders were back on a recovery trend. Segment income
decreased 10.7% year-on-year to 114 million yen due to surging raw material prices.

Industrial Equipment BusinessNet sales increased 13.1% year-on-year to 2,531 million yen. Segment income increased 14.6% year-on-year to 477 million
yen due to an improvement in the operation rate associated with the recovery in net sales.

(2) Explanation of financial position
Total assets as of December 31, 2022, were 75,298 million yen, an increase of 10,259 million yen from the end of the previous
fiscal year.
Current assets increased 8,014 million yen from the end of the previous fiscal year to 45,759 million yen. This was mainly due
to an increase in cash and deposits, and notes and accounts receivable-trade.
Non-current assets rose 2,244 million yen over the end of last fiscal year to total 29,539 million yen. This is due primarily tothe effects of foreign currency translations and the acquisition of property, plant, and equipment.
Liabilities totaled 36,433 million yen, an increase of 5,771 million yen from the end of the previous fiscal year. This is
primarily attributable to an increase in borrowings.
Net assets totaled 38,865 million yen, an increase of 4,488 million yen from the end of the previous fiscal year. This is
primarily due to increases in retained earnings and foreign currency translation adjustments.
As a result, the shareholders’ equity ratio came to 48.4%, down 1.1 percentage points from the end of the previous fiscal year.

-4-(3) Explanation of future forecast information such as consolidated financial results forecasts
The Company has revised the forecast figures for consolidated results for the fiscal year ending March 31, 2023, announced on
May 13, 2022, as well as the term-end dividends forecast, announced on October 31, 2022. For more information, please see
the notice dated February 3, 2023, regarding the revisions to the full-year consolidated performance forecasts and dividends
forecast.
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.

-5-

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly consolidated balance sheet(Million yen)Previous fiscal year
As of March 31, 2022

Third quarter under review
As of December 31, 2022

AssetsCurrent assets
Cash and deposits

9,301

12,113

Notes and accounts receivable - trade
Merchandise and finished goods

17,394
5,256

20,696
6,033

Work in process
Raw materials and supplies

1,236
3,112

1,428
3,581

Other
Allowance for doubtful accounts

1,495
-51

1,962
-57

Total current assets

37,74445,759Buildings and structures, net
Machinery, equipment and vehicles, net

7,848
9,640

8,434
9,984

Land
Other, net

5,844
1,419

6,021
2,000

Total property, plant and equipment

24,753

26,440

878

1,368

734
928

803
926

1,662

1,730

27,29429,53965,03975,298Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets-6-

(Million yen)Previous fiscal year
As of March 31, 2022

Third quarter under review
As of December 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Provision for bonuses

4,741

5,646

4,589
7,786

6,214
10,444

297
934

435
500

Other

4,441

5,563

Total current liabilities

22,79228,805Long-term borrowings
Retirement benefit liabilities
Provision for retirement benefits for directors (andother officers)
Other

3,143
2,540

3,689
1,348

146

168

2,039

2,422

Total non-current liabilities

7,870

7,628

30,66236,433

Shareholders’ equity
Share capital

1,395

1,395

Capital surplus
Retained earnings

1,572
29,554

1,573
30,747

Treasury shares-1,416-1,403

Total shareholders' equity

Non-current liabilities

Total liabilities
Net assets

31,10632,313

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

93

101

-1

-28

Foreign currency translation adjustment

1,025

4,086

Total accumulated other comprehensive income

1,117

4,158

Non-controlling interests

2,152

2,393

Total net assets

34,37738,86565,03975,298

Total liabilities and net assets-7-

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statement of income)(Nine months ended December 31, 2022)

Net sales(Million yen)
Nine months ended in theNine months ended under review
previous fiscal year
(From April 1, 2022
(From April 1, 2021
to December 31, 2022)
to December 31, 2021)
54,14960,622

Cost of sales

45,161

51,264Gross profit

8,987

9,358

Selling, general and administrative expenses

7,179

8,024

Operating profit

1,808

1,334

18
6

31
6

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

4

6

176

555

Gain on sale of non-current assets
Subsidies for employment adjustment

258
199

468
184

Other

161

130

Total non-operating income

826

1,383

75
30

115
77

Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other

41

31

Total non-operating expenses

146

224

2,487

2,493

Ordinary profit
Extraordinary income
Gain on sale of investment securities

31

2

Gain on termination of retirement benefit plan-554

Total extraordinary income

31

557

Loss on litigation-

9

Total extraordinary losses-

9Profit before income taxes

2,518

3,040

Income taxes - current
Income taxes - deferred

499
162

717
331

661

1,048

1,857

1,991

Extraordinary losses

Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

-8-

-17

80

1,875

1,911

(Quarterly consolidated statement of comprehensive income)(Nine months ended December 31, 2022)

Profit(Million yen)
Nine months ended in theNine months ended under review
previous fiscal year
(From April 1, 2022
(From April 1, 2021
to December 31, 2022)
to December 31, 2021)
1,857
1,991

Other 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

-21

7

-30
680

-28
3,201

36

60

664

3,240

Comprehensive income

2,522

5,232

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

2,512

4,952

9

279

-9-

(3) Notes to quarterly consolidated financial statements(Notes to assumptions for ongoing concerns)
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 estimatedthe effective tax rate after applying tax effect accounting to profit before income taxes in the fiscal year,
including the third quarter under review, and calculated them by multiplying this estimated effective tax rate byprofit before income taxes.
(Additional information)(Shift of the retirement benefit plan)
On April 1, 2022, the Company completely shifted its defined-benefit corporate pension program to adefined-contribution corporate pension program. The Company adopted the Accounting Procedures for
Shifting between Different Retirement Benefit Programs (ASBJ Implementation Guidelines No.1, revised on
December 16, 2016) for the accounting procedures for the shift of the pension program. For this reason, thegain on termination of retirement benefit plan of 554 million yen was posted as the extraordinary income forthe nine months ended December 31, 2022.

-10-

(Segment information)
Segment information
I. Nine months ended December 31, 2021 (from April 1, 2021, to December 31, 2021)
1. Information on net sales, income or loss by reporting segment
Reporting segment
AntiFunctional
Vibration
Parts
Parts

Metals

Hoses

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)

23,73820,933

3,982

3,256

2,238

54,149-54,149

395

4

0

75

-

476

-476

-

24,13420,937

3,983

3,331

2,238

54,625-476

54,149

2,497

889

-154

128

416

3,777

-1,968

1,808(Notes) 1. The adjustment of -1,968 million yen for segment income (loss) includes an inter-segment elimination of
9 million yen and corporate expenses that are not allocated to any reportable segments totaling -1,978
million yen. Corporate expenses are primarily general and administrative expenses that are not
attributable to any reportable segments.
2. Segment income (loss) is adjusted to be consistent with operating profit recorded in the quarterly
consolidated statement of income.
2. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.
II. Nine months ended December 31, 2022 (from April 1, 2022, to December 31, 2022)
1. Information on net sales, income or loss by reporting segment
Reporting segment
AntiFunctional
Vibration
Parts
Parts

Metals

Hoses

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)

24,38725,327

4,691

3,685

2,531

60,622-60,622

458

5

0

72

-

537

-537

-

24,84525,333

4,691

3,758

2,531

61,160-537

60,622

1,903

1,017

-8

114

477

3,505

-2,171

1,334(Notes) 1. The adjustment of -2,171 million yen for segment income (loss) includes an inter-segment elimination of
2 million yen and corporate expenses that are not allocated to any reportable segments totaling -2,173
million yen. Corporate expenses are primarily general and administrative expenses that are not
attributable to any reportable segments.
2. Segment income (loss) is adjusted to be consistent with operating profit recorded in the quarterly
consolidated statement of income.
2. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.

-11-