Financial Results for the Fiscal Year Ended March 31, 2023 [Japan GAAP] (Consolidated)
May 15, 2023
Company Name:
Securities Code:
Representative:
Contact:

Fukoku Co., Ltd.
5185
(Title)President & CEO(Title)General Manager
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:of

Exchange listed on:
Tokyo Stock Exchange
URL
https://www.fukoku-rubber.co.jp/(Name) Takashi Ogawa(Name)
Yukio Yamazaki(TEL) 048-615-4400
June 28, 2023
June 28, 2023
June 13, 2023
Yes
Yes (For institutional investors and analysts)(Amounts rounded down to the nearest millions of yen.)

Finance::

1. Consolidated Financial Results for the Fiscal Year Ended March 2023 (From April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(Percentages represent year-on-year changes.)
Net sales
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022
(Note) Comprehensive
incomeOperating profit

Profit attributable to ownersof parent

Ordinary profit

million yen%

million yen%

million yen%

million yen%

82,318

15.1

2,010

14.9

3,139

24.4

2,135

2.4

71,504

-

1,749

152.4

2,522

75.7

2,084

66.2

4,322 million yen[24.4%]

3,475 million yen[458.5%]

Fiscal year ended
March 31, 2023

Profit per share –dilutedProfit per share
yen

Fiscal year ended
March 31, 2022

Profit to shareholders’equityOrdinary profit to total
assets

Net sales
Operating profit to net
sales

%

%

%

yen

Fiscal year ended
132.61
6.3
4.6
March 31, 2023
Fiscal year ended
127.246.7
3.9
March 31, 2022
(Reference) Equity method investment gain (loss): Fiscal year ended March 31, 2023 35 million yen Fiscal year ended March 31, 2022

2.4
2.4
16 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 previous fiscal year. For this reason, 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
As of March 31, 2023
As of March 31, 2022

Shareholders’ equity ratio

Net assets

Net assets per share

million yen

million yen%

yen

71,53065,03937,952
34,37749.8
49.5

2,211.12
2,002.05(Reference) Shareholders’ equity Fiscal year ended March 31, 2023

35,619 million yen Fiscal year ended March 31, 2022

32,224 million yen(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

3,515-3,988

753

9,478

5,344

-2,846-2,815

8,782

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

2. Dividends
Annual dividends

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(forecast)

Total amount ofannual dividends

Dividend payout
ratio(consolidated)

Ratio of dividends to
net assets(consolidated)

End of Q1
yen

End of Q2
yen

End of Q3
yen

End of Q4

Total

yen

yen

million yen

%

%

-

29.00

-

20.00

49.00

803

38.5

2.6

-

27.00

-

23.00

50.00

805

37.7

2.4

-

27.50

-

27.50

55.00

30.6

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

88,000

6.9

3,900

94.0

4,000

27.4

2,900

35.8

180.02

* Notes(1) Changes in major subsidiaries during the fiscal year under review (Change in
specific subsidiaries that will accompany a change in scope of consolidation):

Yes

Newly consolidated:-- company (Company name)
Excluded:
1 company (Company name) FUKOKU Czech s.r.o.
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

:
:
:
:

None
None
None
None

(2)

(3)

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 theperiod(iii) Average number of shares issued during theperiodFiscal year
ended March
31, 2023
Fiscal year
ended March
31, 2023
Fiscal year
ended March
31, 2023

17,609,130
shares1,500,004
shares
16,103,509
sharesFiscal 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 2023 (From April 1, 2022 to March 31, 2023)(Percentages represent year-on-year changes.)(1) Non-Consolidated Business Results
Net sales
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Operating profit

Ordinary profit

Profitmillion yen%

million yen%

million yen%

million yen%

33,585

5.1

-292

-

1,617

50.7

1,783

116.0

31,958

-

204

-

1,073

-36.6

825

-43.1

Profit per share – diluted

Profit per share
yen

yen

Fiscal year ended
110.77
March 31, 2023
Fiscal year ended
50.39
March 31, 2022
(Note) The Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., at
the beginning of the previous fiscal year. For this reason, year-on-year changes in net sales for the fiscal year ended March 31,
2022 are not shown here.

(2) Non-Consolidated Financial Position
Total assets
million yen

As of March 31,
35,4432023
As of March 31,
33,792
2022
Shareholders’ Fiscal year ended(Reference)equityMarch 31, 2023**

Shareholders’ equity ratio

Net assets

Net assets per share

million yen%

yen

19,87456.1

1,233.75

18,81655.7

1,169.06

19,874 million yen

Fiscal year ended
March 31, 2022

18,816 million yen

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 to consider in utilizing them, please see “1. Overview ofoperating 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 the primary version.

1

○ 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 andnext 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 ·············· 6Consolidated statement of income ············································································ 6Consolidated 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 ongoing concerns) ······························································· 12(Additional information) ······················································································· 12(Segment information) ·························································································· 13(Per-share information) ························································································· 16(Important subsequent events) ················································································· 16

11. Overview of Operating Results, etc.
(1) Overview of operating results for the fiscal year under review
During the fiscal year under review, the Japanese economy showed a gradual recovery mainly in domestic demand as theimpact of COVID-19 gradually eased but remained unstable due to the emergence of geopolitical risks such as the situation in
Ukraine, sharp exchange rate fluctuations, and rising prices. In the automobile industry, automakers have been forced to revise
their production plans downward due to a shortage of semiconductors and other reasons although 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 and fuel costs as a result of surging resource prices, despite anincrease in the gain on conversion to the Japanese yen due to the depreciation of the yen.
Regarding financial results for the fiscal year under review, consolidated net sales increased 15.1% year on year to total 82,318
million yen due to the impact of foreign exchange rates despite an income decrease resulting from adjustments to production byautomakers. Operating profit increased 14.9% year on year to 2,010 million yen, and ordinary profit rose 24.4% year on year to
3,139 million yen since the impact of the rising costs of raw materials, transportation and fuels was absorbed by streamlining
efforts, cost pass-through, etc. Profit attributable to owners of the parent increased 2.4% year on year to reach 2,135 million yen.
The Group’s business performance by segment is as follows.
Functional Parts BusinessNet sales increased 7.9% year on year to 33,361 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 14.3% year on year to 2,689
million yen due to the significant impact of rising raw materials prices and surging transportation costs.
Anti-Vibration Parts BusinessNet sales increased 22.5% year on year to 34,724 million yen due to steady orders for construction machinery, the launch of
new products for electric vehicles, and foreign currency translation. Segment income increased 83.6% to total 1,514 million yen
year on year 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 17.8% year on year to 6,480 million yen due to steady orders for construction machinery. Segment income(which was a loss of 175 million yen for the same period last year) came to 2 million yen due to the effect of the streamlining
efforts and the passing of rising cost of materials for metal parts on to selling prices.
Hose BusinessNet sales increased 17.3% year on year to 5,134 million yen as orders were back on a recovery trend. Segment income
increased 24.0% year on year to 116 million yen.
Industrial Equipment BusinessNet sales increased 11.0% year on year to 3,380 million yen. Segment income increased 16.7% year on year to 607 million yen
due to an improvement in the operation rate associated with the recovery in net sales.
(2) Overview of financial position for the fiscal year under review
Assets, liabilities and net assets(Assets)
Total assets increased by 6,490 million yen from the end of the previous fiscal year to 71,530 million yen.
This is due primarily to a 4,783-million-yen increase in current assets caused by an increase in merchandise and finished goods
as well as accounts receivable - trade as a result of the foreign currency translation impact of the weaker yen. Non-current assets
increased by 176 million yen mainly due to an increase in property, plant and equipment as a result of capital investments.
(Liabilities)
Liabilities increased by 2,915 million yen from the end of the previous fiscal year to 33,577 million yen.
This is due primarily to an increase in current liabilities by 3,553 million yen as a result of an increase in borrowings.
2

(Net assets)
Net assets increased by 3,575 million yen from the end of the previous fiscal year to 37,952 million yen.
This is due primarily to an increase in retained earnings of 1,415 million yen and an increase in foreign currency translation
adjustments of 1,957 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 9,478 million yen, up 695
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 3,515 million yen (compared to 5,344 million yen in the same period of theprevious year). The primary factors for this include an increase in funds due to the depreciation and amortization of 4,471 million
yen and profit before income taxes of 3,511 million yen as well as a decrease in funds due to an increase in trade receivables of
1,572 million yen, an increase in inventories of 876 million yen, and a decrease in retirement benefit assets and liabilities of 722
million yen.
(Cash flows from investing activities)
Funds used in investing activities were 3,988 million yen (compared to 2,846 million yen in the same period of the previousyear). This is due primarily to the acquisition of property, plant and equipment of 4,103 million yen.
(Cash flows from financing activities)
Funds provided by financing activities were 753 million yen (compared to an outflow of 2,815 million yen in the same periodof the previous year). This is mainly due to proceeds from borrowings exceeding repayment by 1,576 million yen and dividend
payments of 756 million yen.
(4) Future outlook
While economic activity is gradually returning to normal due to the easing of COVID-19 travel restrictions, the semiconductor
supply shortage remains uncertain. In addition, the situation in Russia and Ukraine and the resulting impact of global exchange
rate fluctuations as well as price hikes remain unpredictable.
Under these circumstances, there is an urgent need to develop and grow next-generation products that meet the needs of today’ssociety, including products that support CASE, and to create value that transcends existing business models. Viewing these majorchanges as an opportunity, Fukoku has overhauled its management structure and is currently formulating its New Medium-Term
Management Plan 2026 as it moves ahead to reach new heights.
(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 a 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.
The Company will pay a year-end dividend of 23 yen per share for the fiscal year under review, as noted in the Notice ofRevisions to the Full-Year Consolidated Earnings Forecast and the Year-End Dividend Forecast published on February 3, 2023.
Regarding the dividends for the next fiscal year, the Company plans to pay 55 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3. Consolidated Financial Statements and Key Notes(1) Consolidated balance sheet(Million yen)Previous fiscal year
As of March 31, 2022

Fiscal year under review
As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

9,301
949

9,972
774

Accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods

13,331

14,993

3,112

3,963

5,256

5,858

Work in process
Raw materials and supplies

1,236
3,112

1,322
3,872

Other
Allowance for doubtful accounts

1,495
-51

1,802
-31

Total current assets

37,74442,528

7,848

8,278

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

9,640
969

9,615
1,052

Land
Leased assets, net

5,844
40

5,996
58

409

894

24,75325,896

Other

878

1,406

Total intangible assets

878

1,406

Investment securities
Long-term prepaid expenses

734
31

824
13

Retirement benefit assets
Deferred tax assets

203
481

156
475

Other

211

227

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

Construction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

4

1,662

1,699

27,29429,00165,03971,530(Million yen)Previous fiscal year
As of March 31, 2022

Fiscal year under review
As of March 31, 2023

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

4,741
4,589

5,459
5,330

Short-term borrowings
Current portion of long-term borrowings

5,644
2,141

7,598
2,202

Income taxes payable
Provision for bonuses

297
934

383
753

Notes payable - facilities
Other

595
3,846

552
4,065

Total current liabilities

22,792

26,345

Non-current liabilities
Long-term borrowings

3,143

3,178

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

489
2,540

1,023
1,314

146

173

1,549

1,541

Total non-current liabilities

7,870

7,232

30,66233,577

Shareholders’ equity
Share capital

1,395

1,395

Capital surplus
Retained earnings

1,572
29,554

1,573
30,969Total liabilities
Net assets

Treasury shares-1,416-1,403

Total shareholders' equity

31,10632,534

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

93

108

-1

-7

Foreign currency translation adjustment

1,025

2,983

Total accumulated other comprehensive income

1,117

3,084

Non-controlling interests

2,152

2,333

Total net assets

34,377

37,95265,03971,530Total liabilities and net assets5(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)Net sales
Cost of sales(Million yen)Previous fiscal year
Fiscal year under review(From April 1, 2021 to March 31, (From April 1, 2022 to March 31,
2022)
2023)
71,50482,31859,99569,433Gross profit

11,50812,884

Selling, general and administrative expenses
Salaries

3,669

3,942

2,289
195

2,530
215

15

13

130

177

222
29

189
4

Other

3,205

3,800

Total selling, general and administrative expenses

9,758

10,874

1,749

2,010

30

44

7

6

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

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

16

35

261

415

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

266
201

493
297

Other

174

167

Total non-operating income

957

1,459

94

158

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

33
39

4
125

Other

16

42

Non-operating expenses
Interest expenses

Total non-operating expenses

184

330

2,522

3,139

31

2

Gain on termination of retirement benefit plan-554

Total extraordinary income

31

557

-

9
174

Ordinary profit
Extraordinary income
Gain on sale of investment securities

Extraordinary losses
Loss on litigation
Loss on liquidation of businessTotal extraordinary losses

-

184

2,553

3,511

Income taxes - current

583

794

Income taxes - deferred

-23

522

559

1,316

1,994

2,194

Profit before income taxes

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

6

-90

59

2,084

2,135

(Consolidated statement of comprehensive income)

ProfitOther comprehensive income(Million yen)Previous fiscal year
Fiscal year under review(From April 1, 2021 to March 31, (From April 1, 2022 to March 31,
2022)
2023)
1,994
2,194

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

-15
-1

14
-10

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

1,441

2,099

56

24

1,480

2,127

Comprehensive income

3,475

4,322

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

3,465

4,102

9

220

7

(3) Consolidated statement of changes in equity
Previous fiscal year (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
Valuation difference
Deferred gains or
on available-for-salelosses on hedges
securities
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

8

Fiscal year under review (From April 1, 2022 to March 31, 2023)(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of
period1,395

Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity1,572

29,554-1,416

31,106

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

-756

-756

2,135

2,135

0

-0

-0

12

13

36

1,395

36

0

1,415

12

1,428

1,573

30,969-1,40332,534Foreign currencytranslation
adjustment

Non-controllinginterests

Total net assets

1,025

2,152

34,377

Accumulated other comprehensive income
Valuation difference
Deferred gains or
on available-for-salelosses on hedges
securities
Balance at beginning of
period93-1

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

-756
2,135
-0
13
36
14

-5

1,957

180

2,147

14

-5

1,957

180

3,575

108

-7

2,983

2,333

37,9529

(4) Consolidated statement of cash flows(Million yen)Previous fiscal year
Fiscal year under review(From April 1, 2021 to March 31, (From April 1, 2022 to March 31,
2022)
2023)
Cash flows from operating activities
Profit before income taxes

2,553

3,511

Depreciation
Loss on liquidation of business

4,369
-

4,471
174

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)
Gain on termination of retirement benefit plan

-1
135

-22
-181

199

-722

-0

15

-

-554

Interest and dividend income
Interest expenses

-37
94

-51
158

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

-103

-104

-16

-35

-232
39

-488
125

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

-31
2,080

-2
-1,572

Decrease (increase) in inventories
Increase (decrease) in trade payables-2,004
-329

-876
971

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

-122
-257

-151
-251

Other

-336

-9

Subtotal

5,998

4,404

45

55

Interest paid
Income taxes refund (paid)

-97
-601

-155
-788

Cash flow from operating activities

5,344

3,515

Interest and dividends received

10

(Million yen)Previous fiscal year
Fiscal year under review(From April 1, 2021 to March 31, (From April 1, 2022 to March 31,
2022)
2023)
Cash flows from investing activities
Payments into time deposits
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
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Other

-174

-

-35

52
-5

-2,772
154-4,103
622

-124
-2

-555
-2

37
70

4
-1

Cash flow from investing activities-2,846-3,988Cash flow from financing activities
Proceeds from short-term borrowings

235

1,704

Repayments of short-term borrowings
Proceeds from long-term borrowings-1,178
1,915

-179
2,400

Repayments of long-term borrowings
Repayments of lease obligations-2,334-18-2,348-26

Purchase of treasury shares
Dividends paid

-494
-846

-0
-756

Dividends paid to non-controlling interests

-93

-39

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

753

430

415

113

695

Cash and cash equivalents at beginning of period

8,668

8,782

Cash and cash equivalents at end of period

8,782

9,478

11

(5) Notes to consolidated financial statements(Notes to assumptions for ongoing concerns)
Not applicable.
(Additional information)(Shift of the retirement benefit plan)
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, revised on December 16, 2016) for the accounting procedures forthe shift of the pension program. For this reason, the gain on termination of the retirement benefit plan of 554 million yen was
posted as the extraordinary income for the fiscal year under review.

12

(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.

13

3. Information on Net Sales, Income or Loss, Assets, Liabilities and Other Items by Reporting Segment
Previous fiscal year (From April 1, 2021 to March 31, 2022)
Reporting segment
Total(Million yen)Amountreported in
Adjustments 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

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 externalcustomers
Intersegment sales ortransfer

Other items
Depreciation

Investment in entities
accounted for using
474
474
474
equity method
Increase in property,
plant and 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.

14

Fiscal year under review (From April 1, 2022 to March 31, 2023)
Reporting segment
Total(Million yen)Amountreported in
Adjustments consolidated(Note) 1
financialstatements(Note) 2

Functional
Parts

AntiVibration
Parts

Metal

Hose

Industrial
Equipment

32,70934,714

6,480

5,034

3,380

82,318-82,318

652

9

0

100

-

762

-762

-

Total

33,361

34,724

6,480

5,134

3,380

83,080-762

82,318Segment income

2,689

1,514

2

116

607

4,930

-2,9202,010

Segment assets

28,45627,820

3,777

4,533

3,083

67,6703,859

71,530

1,903

1,985

172

220

123

4,404

67

4,471

-

-

124

-

-

124

-

124

Net sales
Sales to externalcustomers
Intersegment sales ortransfer

Other items
Depreciation
Impairment losses

Investment in entities
accounted for using
525
525
525
equity method
Increase in property,
plant and equipment
2,154
1,739
109
133
181
4,317
654
4,971
and intangible assets(Notes) 1. Adjustments are as follows:(1) The adjustment of -2,920 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 -2,921 million yen. Corporate expenses areprimarily general and administrative expenses that are not attributable to any reportable segments.
(2) The adjustment of 3,859 million yen for segment assets includes an inter-segment elimination of -1,031 million yen andcompany-wide assets that are not allocated to any reporting segments totaling 4,891 million yen. Company-wide assets
are primarily cash and deposits that are not attributable to any reporting segments.
(3) The adjustment of 67 million yen for depreciation is primarily depreciation of non-current assets for the research anddevelopment departments of the parent company.
(4) The adjustment of 654 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 is adjusted to be consistent with operating profit recorded in the consolidated financial statements.

15

(Per-share information)
Previous fiscal year
(From April 1, 2021 to March 31, 2022)

Fiscal year under review(From April 1, 2022 to March 31, 2023)

2,002.05 yen

2,211.12 yen

127.24 yen

132.61 yen

Net assets per share
Profit per share(Notes) 1. Profit per share – diluted is not stated as there are no dilutive shares.
2. The basis for calculation of profit per share is as follows:

Previous fiscal year
Fiscal year under review(From April 1, 2021 to March (From April 1, 2022 to March
31, 2022)
31, 2023)
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 commonshares (million yen)
Average number of shares issued during the period(thousand shares)(Important subsequent events)
Not applicable.

16

2,084

2,135

-

-

2,084

2,135

16,383

16,103