Fukoku Co., Ltd. (TSE Prime Market: 5185)
June 30, 2023

Medium-Term Management PlanFY 2023–2026

Copyright © Fukoku Co., Ltd.
All Rights Reserved.

Message from Management

2/30

In December of this year, Fukoku will mark the 70th anniversary of its
founding in 1953.
For 70 years, we achieved sustainable growth by creating new value andby diligently meeting customer needs in line with our founding spirit,"Yes, We Do!"
Today, as the auto industry transitions rapidly to next-generation
technologies, such as electric and autonomous vehicles, we need tocreate value above and beyond existing business models.
Seeing these dramatic changes as opportunities, we formed the new
Medium-Term Management Plan 2026 to achieve even loftier businessgoals.
Fukoku will remain a business that contributes to society by constantly
taking on new challenges and adapting flexibly to change.
Ikuo Oshiro
President & CEO
Medium-Term Management Plan Briefing (FY2023->FY2026) FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

3/30

Looking back on the previous Medium-Term
Management Plan

Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Looking back on the previous Medium-Term
Management Plan
Structural enhancement

4/30

Profitability improvement

Rapid growth

SX
GX

DX

Corporate value

Long-Term Management Plan
New Medium-Term Management Plan

前中期経営計画

2021

2022

2023

2024

2025

Medium-Term Management Plan Briefing (FY2023->FY2026)

2026

2027

2028

2029

2030

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Looking back on the previous Medium-Term
Management Plan

5/30

Trends in net sales and income(consolidated)(Unit: JPY100M)

Net sales(Unit: JPY100M)■ Profit margin (%)

60

1,200
1,000

823
800

Operating profit

12%
10%

880

715

39

40

4.4%

600
20

400

2.4%

17

20

8%
6%
4%
2%

200

2.4%
0

0

Medium-Term Management Plan Briefing (FY2023->FY2026)

0%

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Looking back on the previous Medium-Term
Management Plan

6/30

Focus on shareholder returns
Dividends per share and payout ratio

Trends in average share price and PBR(Unit: JPY)60

配当金
Dividends

40

配当性向
Payout
ratio

平均株価

55

50

49

50

38.5%

30.6%

50.0%

40.0%

30.0%

22

1,400

share price

20.0%

20

1,323

PBR

800
600

1,003

965

0.60
0.46

672

10.0%

0

0.0%
年度
2020
FY 2020

2021
FY 年度
2021

2022
FY 年度
2022

年度
2023
FY 2023

0.8
0.7
0.6

0.45

0.5

0.35

0.4
0.3

400

10

1.0
0.9

1,200
1,000

29.1%
37.7%

30

*June 27, 2023, closing price(Unit: JPY 100 M) Average

0.2

200

0.1

0

0.0
年度
2020
FY 2020

2021
FY 年度
2021

2022
FY 年度
2022

年度
2023
FY 2023

Aiming for further increases in profit and shareholder returns to achieve a
PBR of 1.0 times
Medium-Term Management Plan Briefing (FY2023->FY2026)

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7/30

New Medium-Term Management Plan 2026:
Overview and targets

Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Numerical targets of the new Medium-Term
Management Plan 2026
(Unit: JPY 100 M)

Net
sales
売上

1,600

Operating
営業利益率
profit margin

8/30

ROE

20%
18%

1,400

16%

1,200

14%

1,000

12%

800

10%

600

8%
6%

400

4%

200

2%

0

0%
FY 2022

FY 2023

FY 2026

FY 2030

JPY 82.3 B

JPY 88.0 B

JPY 120.0 B

JPY 150.0 B

Operating profit
margin

2.4%

4.4%

8.0%

-

ROE

6.3%

8.0%

12.0%

-

Net sales

Medium-Term Management Plan Briefing (FY2023->FY2026)

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9/30

New Medium-Term Management Plan 2026: Policy Details

Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Overview of the new Medium-Term Management Plan 2026
Structural enhancement

Rapid growth

Collaboration

Improvingbackofficeworkefficiency

GX

Cost
Reduction

SX

Collaborating with diverse
stakeholders to create new value

DX

Corporate value

Production processstream-lining

Profitability improvement

10/30

Defectreduction

Long-Term Management Plan
Previous Medium-Term Management Plan

2021

2022

2023

New Medium-Term Management Plan

2024

2025

Medium-Term Management Plan Briefing (FY2023->FY2026)

2026

2027

2028

2029

2030

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

New Medium-Term Management Plan 2026
Strategic Scheme

Medium-Term Management Plan Briefing (FY2023->FY2026)

11/30

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

New Medium-Term Management Plan 2026
Strategic Scheme

Medium-Term Management Plan Briefing (FY2023->FY2026)

12/30

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Balancing business strategies

13/30

Growing sales through solutions
businesses● Simulation design through in-vehicle evaluation technologies/enhancing
R&D in China● Establishing an R&D function in India

Growing sales to high-growth regions● Enhancing technology and production structures in India and Indonesia

Manufacturing-ability innovations andenhancing HR development● Developing innovative construction methods/automation/IoT adoption● Enhancing global HR development

Medium-Term Management Plan Briefing (FY2023->FY2026)

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Balancing business strategies

14/30
OEM global market share

Wipers

FY 2030

FY 2022
FUKOKU WIPER SIMULATOREV development speed adaptation in
the solutions business

45％

65％

(Unit: million wipers)

70%

300
Fukokuフコク

Sales
growth拡販

Competitors グローバルシェア
Global market share
他社

250

65%

200

60%

150

55%

100

50%

50

45%

0
2022

2023

2024

2025

2026

2027

2028

2029

2030 (FY)40%

Further solidifying our top global market share
Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Balancing business strategies

15/30

Growing industrial and other products
Development of/establishment of mass-production systems
for precision seals
Development of hydrogen-energy seals and vibration-proofing coatings
for wind power

Factory automation
New energy
Aerospace

Development of vibration-proofing mounts

Growth in the CASE market
Batteries

Development and sales expansion of holding sheets for continually evolving EV products
Development and sales expansion of thermal radiation gap fillers and large-battery vibrationproofing products

Growing life-science products
Bio
Microbiolog
ical testing

Cell-culture bags and cultures and cosmetics raw materials
Establishment of mass-production systems and sales expansion forchemical-resistant microbiological-testing chips

Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Balancing business strategies

16/30

CASE
Realizing a safe, secure, and comfortable future in the era of CASE

 Advanced vibration damping rubber
 Vibration damping rubber for aerospace Vibration damping rubber for
precision electric devices
 High performance noise reduction

sensors
 Ring type ultrasonic motors for highresolution zoom lens cameras

complex rubber
 Vibration damping rubber mounts forconstruction equipment with ICT

 Atomizing devices for sanitary andamenity spaces
 Disturbanced insulator for satellites
 Vibration damping rubber for new
generation mobility
Medium-Term Management Plan Briefing (FY2023->FY2026)

 High function seal rubber for EVs
 Advanced vibration damping rubber forvehicle motors
 Multi-way coolant flow control valves
for vehicle thermal management
FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Balancing business strategies

17/30
Battery module

CASE

Battery cell

● Thermally conductive gap filler●Battery-holder sheets

Projected growth of automotive secondary battery market (global)（Unit: GWh）

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2022

2023

2024

2025

2026

2027

2028

2029

2030 (FY)

Further growth of CASE-related products
Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Balancing business strategies

18/30

Life sciences
Realizing a safe, secure, and comfortable future in the era of health and longevity

 Liquid
culturemedium Cell culturebag Bacterial infection test kit

 Space sterilization atomizer

 Human adipose
derived stem cellconditioned media

 Human adipose stromal
cell exosome

 Beauty essence MRI drive motor

Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Balancing business strategies

19/30

Life sciences
Projected regenerative medicine market growth(global)(Unit: JPY 100 M)
60,00050,00040,00030,00020,00010,00002021 202220232024202520262027 2028 2029 2030

(FY)

Business growth in the regenerative medicine
marketMedium-Term Management Plan Briefing (FY2023->FY2026)

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Balancing business strategies

20/30

Life sciences

Rapid Susceptibility Test-Total Analysis Systems

Projected rapid microbiological testing market growth
Comparison between number of deaths related(Unit: JPY100M) (global)
drug-resistant bacteria and other causes ofdeath per year

10,000death related drug-resistantbacteria (in 2050)
tetanus10 M
people8,000

cancer6,000

0.06 M
peopletraffic
accident
1.2 M
people8.2 M
peopledeath relateddrug-resistantBacteria (current)

4,000

0.7 Million
people(minimum)measles0.13 M
peoplecholera0.1~0.12 M people

2,000

diarrheal disease
1.4 M
peoplediabetes
1.5 M
peopleTranslation of the Review on Antimicrobial Resistance : Antimicrobial Resistance :Tackling a Crisis for the future Health and Wealth of Nations(December 2014)*Partially modified

02021202220232024202520262027202820292030(FY)

Substantial contributions to addressing the issue of drug-resistantmicrobes through microfluidic chips
Medium-Term Management Plan Briefing (FY2023->FY2026)

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Balancing business strategies

21/30(Unit: JPY100M)

1600
1400
1200

インダストリアル・ライフサイエンス他
Industrial,
life sciences, etc.
/宇宙 他 rail, aerospace, etc.
建機・鉄道・航空
Construction
machinery,
Automotive(including CASE)
自動車（含CASE）
Percentageof overseas sales
海外売上比率140

Net sales

1000
800

200

80

250

85%
80%

90

75%
920

713

95%
90%

140

600
400

100%

70%
1050

760

65%
60%

200

55%

0

50%

年度
2022
FY 2022

年度
2023
FY
2023

年度
2026
FY 2026

年度
2030
FY 2030

Increasing profitability by balancing existing businesses andgrowth businesses
Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Investment plans for executing strategy

生産強化
Production enhancements

22/30

Investing a total of JPY 21 B

New business creation
新規創出
R&D
研究開発

Environmental
環境関連
Other

その他

FY 2021▶2023

FY 2024▶2026
Investing in enhancing existing businesses andcreating new ones

Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

New Medium-Term Management Plan 2026
Strategic Scheme

Medium-Term Management Plan Briefing (FY2023->FY2026)

23/30

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Management structure reforms

24/30

Fukoku's environmental
targets

Carbon neutrality
No more than 1% of waste disposed of in landfills

Fukoku nonconsolidated CO2 reduced by 46％
50% reduction in waste from manufacturing processes
CO2 calculation base year
2013

Priorities

2023

2025

2030

2040

2050

■ Energy conservation/Scope 1 emissions reduction
Purchasing renewable energy■ Product/technology/production innovations
Purchasing fully carbon-neutral electricity and gas, energy innovation (external)*Setting environmental targets (guidelines) for domestic and overseas subsidiaries

Eco-friendly productdevelopment
 Focusing on development of carbon-neutral materials
Creating high-value-added products with high levels ofcompetitive strengths in environmental aspects→ Carbon-neutral wipers
 Broadening use of recyclable rubber and its applications→ Grass matsMedium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Management structure reforms

25/30

Previous
manufacturing process
従来の製造プロセス

Surface treatment(chemicals)
Assembled wipers
Press
Electricity

Waste liquid

Polymers
Petroleumbased

Thrown away on
replacement

Mixer
Carbon black
Chemicals

Mixed material(unpressed rubber)

Eco-friendly manufacturing process
環境配慮型の製造プロセス

PressedrubberBurrs

Coating(using organic solvents)

Surface treatment(waste-free)

RenewableenergyNaturalBurr-freemoldingMedium-Term Management Plan Briefing (FY2023->FY2026)

Coating(no organic solvents used)

Reuse

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Management structure reforms

26/30

Diversity and inclusionContinually generating women leadersSupporting success by people with diverse backgrounds, including international, experienced,
and specialized human resources

Leveraging the experience and expertise of senior human resources

Creating rewarding workplaces

Diverse work styles suited to people's lifestyles



Helping people to realize their own career plansIncreasing employee engagement

Developing human resources able to think deeply andact based on a broad range of perspectives
Global human resources to enhance existing businesses

Human resources to create solutions

Human resources to create innovation



Human resources able to reform manufacturing

Human resources able to address safety, quality, and environmental topics

Digital human resources able to drive digital transformation (DX)

Medium-Term Management Plan Briefing (FY2023->FY2026)

Fukoku's learning place

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Three main strategic pillars

27/30

Promoting stakeholder dialogsMarket capitalization of negotiable shares: JPY 11.32 B (as of March 31, 2023)

Addressing PBR of less than 1.0 times and achieving ROE of 12% （FY 2026） by enhancing
management with a focus on capital cost and share value

Thorough complianceEnhancing appropriate disclosure (global initiatives)Enhancing IR activities (enhancing dialogue opportunities and methods)

Enhancing corporate governancePermeation of new MVV and organizational culture reforms

Awareness-raising activities by the Compliance Committee (global deployment)

Developing internal whistleblowing system and thoroughly preventing compliance violations

To transform all wishes into excitement.
A company that is sincerely loved for its in-depth
proposal and solid solution capabilities.
Endeavor

Stick at it

Take pride

Believe

Complement

Communicate

Medium-Term Management Plan Briefing (FY2023->FY2026)

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28/30Returns to Shareholders

Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

New Medium-Term Management Plan 2026 Target(Unit: JPY100M)

Sales
売上

1,600

Operating
営業利益率
profit %

29/30

ROE

20%
18%

1,400

16%

1,200

14%

1,000

12%

800

10%

600

8%
6%

400

4%

200

2%

0

0%
FY2022

FY2023

FY2026

FY2030

Sales

823

880

1,200

1,500

Operating
Profit Ratio

2.4%

4.4%

8.0%

-

ROE

6.3%

8.0%

12.0%

-

（Unit: JPY 100M)

Medium-Term Management Plan Briefing (FY2023->FY2026)

FUKOKU Co., Ltd.(TSE Prime:5185) June 2023 Copyright © Fukoku Co., Ltd. All Rights Reserved.

Returns to shareholders

30/30

Basic dividend policy Targeting a 30% consolidated payout ratio

and maintaining stable dividends

 Minimum annual dividends of 20 yen/share

Trend in dividends per share

Dividends(Unit: JPY)

100
75

Estimated dividends based on 30%
consolidated payout ratio

49
22
35
2020
年度
FY 2020

2021
年度
FY 2021

55

50

55

45
2022
年度
FY 2022

Medium-Term Management Plan Briefing (FY2023->FY2026)

85

2023
年度
FY 2023

2024
FY 年度
2024

2025
FY 年度
2025

2026
年度
FY 2026

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31/30AppendixMedium-Term Management Plan Briefing (FY2023->FY2026)

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Company Profile

32/30

Company ProfileB u si n e ss
p ro f i l e

P ro d u ct i o n a n d s a l e s o f R u b b e r p ro d u c ts ,Me t a l p ro d u c t s・ P l a s t i c pr o du c ts ,O A ・ E l e ct ri c , d e vi c e s ・ Me d i c a l d e vi c e s et c .

S e cu r it y co d e

P ri m e m a r k e t, T o k yo S to c k E x c h a n ge (5 1 8 5 )Foundation

1 9 5 3 D e c e m b er 2 4 ( 7 0 ye a rs s i n c e f ou n d a t i on )Head office

Saitama, Ageo city

Representative

I k u o O sh i ro , P re s i d e n t
C o n so l i d a ti o n 4, 5 7 7

No. of employees

No. ofShareholders

P a re n t c o m p a n y 1 , 1 8 5* a s o f S e p te m be r 3 0 , 2 0 2 0, e x c e p t p a rt ti m e wo rk e rs

1 6 ,2 5 5* a s o f Ma rc h 3 1, 20 2 3・ Domestic bases
Bases /
Affiliate companies- 5 plants, 2business offices

・ Affiliate companies- Consolidated subsidiaries: 2 in Japan and 14 overseas- Equity Method Affiliated Companies :1 overseas
Medium-Term Management Plan Briefing (FY2023->FY2026)

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Company Profile

33/30

History1953

Dec

Founder, Eiichi Kawamoto established Fukoku Rubber Industry Co.,
Ltd.

1956

Apr

Succeeded in developing Wiper blade rubber technology

1972

Sep

Invested in Sueyoshi Industries Co., Ltd.

1983

Jan

Thai Fukoku Co., Ltd. Was established in Bangkok, Thailand.

1986

Jan

Changed the company name to
Fukoku Co., Ltd.

1994

Oct

Registered with Japan Securities Dealers’
Association (currently JASDAQ) to list stocks for OTC market

1996

Feb

Invested in Tokyo Rubber MFG. Co., Ltd.

2004

Mar

Stock listed on the 2nd section of the Tokyo Stock Exchange

2005

Mar

Stock upgraded to the 1st section of the Tokyo Stock Exchange

2020

Jun

Selected by the METI under the 2020 Global Niche Top Companies
Selection 100 program

2020

Jul

Takashi Ogawa was appointed president

2022

Apr

Stock listed on the Prime market of the Tokyo stock exchange
Medium-Term Management Plan Briefing (FY2023->FY2026)

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Company Profile

34/30

Sales per business (FY2022 Consolidation)

Functional Parts

Industrial
Equipment

Metal
8%

Hose 4%
6%

Wiper blade rubber

CVJ boots

Diaphragm

Anti-Vibration Parts

82.3

Functional
parts
40%
Damper pulley

Billion JPY

V-rod

Viscous mount

Metal
Anti-vibration

42%

Fuel tank forconstruction machinery

Industrial Equipment

Printer roller

Ultra sonic motor

Door cover forconstruction machinery

Hose

Cell culture bag

Cell culture medium

Medium-Term Management Plan Briefing (FY2023->FY2026)

Intercooler hose

Water hose

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Company Profile

35/30

Sales per region (FY2022 Consolidation)

Global network

Korea
China

7%

10%
Americas &Europe15%

82.3
Billion JPY

Japan
47%

ASEAN
20%

Japan
1953

Indonesia
1997

India
2010

Thailand1983

America
2001

Vietnam
2011

Korea
1987

China
2001

Mexico2014*Based on countries or regions of customers locations

Medium-Term Management Plan Briefing (FY2023->FY2026)

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Company Profile

36/30

Our strength: Production and sales of a wide variety of products

Medium-Term Management Plan Briefing (FY2023->FY2026)

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Company Profile
High share product

37/30

Wiper blade rubber■ Automotive industry

World
Share*（％）

Domestic
share■ Other industries

Over 90%

Viscous mount(for Construction
Machinery)

Crankshaft damper

50%*our estimation

15%
70%

Diaphragm

Cell culture bag

30%

35%

Piston Seals

Ingot wire-saw
main roller

CVJ boots

17%

12%

30%

Producing many products with a high market share in niche fields
Medium-Term Management Plan Briefing (FY2023->FY2026)

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Company ProfileAward: 2020 Global niche Top 100

38/30

Ju n e 2 02 0

Fukoku was selected by the Ministry of Economy, Trade andIndustry under the 2020 Global Niche Top Companies
Selection 100 program that recognizes companies striving
to capture global markets, securing a high market share inniche sectors, and performing good management.

The examination committee consists of external experts
who evaluate and select companies having:
1. both global share and profit,
2. unique and independent technology, and3. importance in the supply chain.
Medium-Term Management Plan Briefing (FY2023->FY2026)

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