Financial Results Summary for the Nine Months Ended December 31, 2021 [Japanese GAAP](Consolidated)
February 4, 2022
Company Name:
Securities Code:
Representative:
Contact:

Fukoku Co., Ltd.
5185
(Title)President(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

Exchange listed on:
Tokyo Stock Exchange
URL
https://www.fukoku-rubber.co.jp/(Name) Takashi Ogawa(Name) Norio Nakatsugawa(TEL) 048-615-4400
February 10, 2022
None
None
(Amounts rounded down to the nearest millions of yen.)

:
:

1.

Consolidated Financial Results for the Nine Months Ended December 31, 2021 (From April 1, 2021, to December
31, 2021)(1) Consolidated Operating Results (cumulative)(Percentages represent year-on-year changes.)
Net sales
Nine months ended December
31, 2021
Nine months ended December
31, 2020(Note) Comprehensive income:Operating profit

Profit attributable to ownersof parent%
million yen%

Ordinary profit

million yen%

million yen%

million yen

54,149

-

1,808

-

2,487

-

1,875

-

44,905

-20.2

-304

-

270

-69.4

8

-98.7

Nine months ended December 31, 2021 2,522 million yen
Nine months ended December 31, 2020 -1,175 million yen
Profit per share –Profit per sharediluted
yen
yen

[
[

-%]
-%]

Nine months ended December
113.8031, 2021
Nine months ended December
0.53
31, 2020(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 ending March 31, 2022. Since this change affects net sales figures, year-on-year changes in net sales for thenine months ended December 31, 2021, are not shown here.

(2) Consolidated Financial Positions
Total assets
Nine months ended December
31, 2021
As of March 31, 2021
(Reference) Shareholders’ equity:2.

Net assets
million yen%

64,59233,425

48.4

63,817
As of December 31, 2021
As of March 31, 2021

32,32147.1
31,271 million yen
30,085 million yen

Dividends
End of Q1

End of Q2
yen
-

yen
0.00

As of March 31, 2021
Fiscal year ending March 31,
29.00
2022
Fiscal year ending March 31,
2022 (forecast)(Note) Revision of the consolidated results forecast released most recently

3.

Shareholders’ equity ratio

million yen

Annual dividends
End of Q3
yen-

End of Q4

Total
yen
22.00

yen
22.00

20.00

49.00

-

: NoneForecast of Consolidated Results for the Fiscal Year Ending March 31, 2022 (from April 1, 2021, to March 31,
2022)(Percentages represent year-on-year changes.)

Profit attributable toProfit per shareowners of parent
million yen% million yen% million yen% million yen%
yen
Full year
71,800
2,200
2,900
2,250
139.79(Note 1) Revision of the consolidated results forecast released most recently: Yes(Note 2) Due to the adoption of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., beginning in thefirst quarter of the fiscal year ending March 31, 2022, the above consolidated results forecasts were prepared using the said accounting
standard. Therefore, no year-on-year changes are stated.
Net sales

Operating profit

Ordinary profit

*

Notes
(1)

Changes in significant subsidiaries during the period(Changes in specified subsidiaries resulting in changes in the scope of consolidation): None(2) Adoption of special accounting procedures used in preparation of the quarterly: Yes
consolidated financial statements(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:: Yes(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,
2021
As of
December 31,
2021
As of
December 31,
2021

17,609,130
shares

As of March
31, 2021

17,609,130
shares1,513,521
shares

As of March
31, 2021

1,026,754
shares

16,480,114
sharesNine months
ended
December 31,
2020

16,573,727
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 statement on the future such as outlook for financial results included in this material is based on information the Company
presently has and certain assumptions the Company considers reasonable, and the Company does not intend to be committed to
its realization. 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 theattachments.
* This document is an English translation of a statement initially written in Japanese. The Original Japanese document should beconsidered as the primary version.

 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, 2021) ............................................................................................... 6(Quarterly consolidated statement of comprehensive income)(Nine months ended December 31, 2021) ............................................................................................... 7(3) Notes to quarterly consolidated financial statements ······························································ 8(Notes to assumptions for on going 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(Change in accounting policies) ······················································································· 8(Additional information) ······························································································· 8(Segment information) ·································································································· 9

1. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results
During the nine months ended December 31, 2021, the recovery of the global economy remained sluggish due to the impact of
repeated surges of COVID-19 in various countries around the world.
Under these circumstances, while the Group saw a slowdown in orders from the second quarter and earlier, consolidated net
sales increased 20.6% year-on-year to 54,149 million yen. Although manufacturing costs were pushed up by rising raw materials
prices and surging transportation costs, as well as production adjustments due to shortages of semiconductors in automotive
manufacturers and components manufacturers, which are the Group’s main customers, operating profit totaled 188 million yen(compared to a loss of 304 million yen for the same period of the previous fiscal year), ordinary profit totaled 2,487 million yen(compared to 270 million yen for the same period of the previous fiscal year), and profit attributable to owners of parent totaled
1,875 million yen (compared to 8 million yen for the same period of the previous fiscal year). While net sales decreased 1,158
million yen due to the adoption of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020;
hereinafter the “Revenue Recognition Accounting Standard”), etc., the effect on profit/loss was insignificant.
The Group’s business performance by segment is as follows.
Functional Parts BusinessNet sales increased 21.5% year-on-year to 24,134 million yen despite a slight slowdown in orders from the second quarter andearlier. Segment income increased 76.9% year-on-year to 2,497 million yen despite the impact of rising raw materials prices andsurging transportation costs. While net sales decreased 178 million yen due to the adoption of the Revenue Recognition
Accounting Standard, etc., there is no effect on segment income.
Anti-Vibration Parts BusinessNet sales increased 24.5% year-on-year to 20,937 million yen as orders remained steady. Segment income increased 74.8%
year-on-year to 889 million yen although manufacturing costs were pushed up by a surge in costs of materials for metal parts.
While net sales decreased 46 million yen due to the adoption of the Revenue Recognition Accounting Standard, etc., the effecton segment income was insignificant.
Metal BusinessNet sales decreased 0.8% year-on-year to 3,983 million yen as orders fell slightly. Segment loss was 154 million yen (compared
to a loss of 484 million yen for the same period of the previous fiscal year) due to a rise in costs for materials for metal parts.
While net sales decreased 933 million yen due to the adoption of the Revenue Recognition Accounting Standard, etc., there is noeffect on segment income.
Hose BusinessNet sales increased 34.9% year-on-year to 3,331 million yen as orders steadily recovered. Segment income was 128 million yen(compared to a loss of 106 million yen for the same period of the previous fiscal year) due to increased net sales.
Industrial Equipment BusinessNet sales increased 5.1% year-on-year to 2,238 million yen as orders remained steady. Segment income increased 93.8% yearon-year to 416 million yen due to increased net sales.

(2) Explanation of financial position
Total assets as of December 31, 2021, were 64,592 million yen, an increase of 774 million yen from the end of the previous
fiscal year.
Current assets increased 1,321 million yen from the end of the previous fiscal year to 37,540 million yen. This increase is
primarily attributable to increases in cash and deposits.
Non-current assets decreased 546 million yen from the end of the previous fiscal year to 27,052 million yen. This is primarily
attributable to the decrease due to the reduced acquisition of machinery, equipment and others.
Liabilities totaled 31,167 million yen, a decrease of 328 million yen from the end of the previous fiscal year. This is primarily
attributable to the decrease in borrowings.
Net assets totaled 33,425 million yen, an increase of 1,103 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%, up 1.3 percentage points from the end of the previous fiscal year.

(3) Explanation of future forecast information such as consolidated financial results forecasts
The Company revised the full-year consolidated financial results forecasts for the fiscal year ending March 31, 2022, announced
on July 28, 2021. For more information, see the notice dated February 4, 2022, regarding the revisions to the consolidated
financial results forecasts.
Regarding the dividend forecast for the fiscal year ending March 31, 2022, the Company will keep the year-end dividend
unchanged at 20 yen per share.
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.

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

As ofDecember 31, 2021

AssetsCurrent assets
Cash and deposits

8,992

9,858

Notes and accounts receivable - trade
Merchandise and finished goods

18,713
3,990

17,492
4,674Work in process
Raw materials and supplies

1,060
2,200

1,192
2,913

Other
Allowance for doubtful accounts

1,299
-37

1,444
-37

Total current assets

36,21837,540

7,235

7,698

10,040
5,806

9,519
5,799

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net

2,101

1,513

Total property, plant and equipment

25,18424,530Intangible assets

784

831

Investments and other assets
Investment securities

745

746

898
-13

957
-13

Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

1,629

1,690

27,59927,052

63,81764,592

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

As ofDecember 31, 2021

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

4,460

4,246

4,733
8,751

5,325
8,920

209
798

224
562

Other

4,317

4,984

Total current liabilities

23,27024,264Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Other

3,338
2,296

2,102
2,357

144

137

2,446

2,304

Total non-current liabilities

8,225

6,903

31,496

31,167

Shareholders’ equity
Share capital

1,395

1,395

Capital surplus
Retained earnings

1,571
28,315

1,572
29,344

Treasury shares-933-1,41630,34830,897

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

109
1

87
-28

Foreign currency translation adjustment

-374

315

Non-current liabilities

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

-262

374

Non-controlling interests

Total accumulated other comprehensive income

2,235

2,153

Total net assets

32,32133,42563,81764,592

Total liabilities and net assets

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statement of income)(Nine months ended December 31, 2021)

Net sales
Cost of sales(Million yen)
Nine months ended December 31, Nine months ended December 31,
2020
2021
(from April 1, 2020, to December (from April 1, 2021, to December
31, 2020)
31, 2021)
44,90554,14938,88645,161Gross profit

6,018

8,987

Selling, general and administrative expenses

6,323

7,179

Operating profit (loss)

-304

1,808

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

31
74

18
6

6

4

-

176

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

27
428

258
199

Other

192

161

Total non-operating income

760

826

Interest expenses
Foreign exchange losses

85
46

75
-

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

44

33
30

Other

7

7

Non-operating income

Non-operating expenses

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

185

146

270

2,487

-

31

-

31

16

-

Extraordinary losses
Loss on valuation of investment securities

16-

Profit before income taxes

Total extraordinary losses

254

2,518

Income taxes - current
Income taxes - deferred

332
30

499
162

Total income taxes

363

661

Profit (loss)

-109

1,857

Loss attributable to non-controlling interests

-117

-17

8

1,875

Profit attributable to owners of parent

(Quarterly consolidated statement of comprehensive income)(Nine months ended December 31, 2021)

Profit (loss)
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
Comprehensive income(Million yen)
Nine months ended December 31, Nine months ended December 31,
2020
2021
(from April 1, 2020, to December (from April 1, 2021, to December
31, 2020)
31, 2021)
-109
1,857
13
-5

-21
-30

-1,070

680

-3

36

-1,066664-1,175

2,522

-925

2,512

-250

9

Profit attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

(3) Notes to quarterly consolidated financial statements(Notes to assumptions for on going concerns)
Not applicable.
(Notes when there is a significant change in the amount of shareholders’ equity)
Based on the resolution of the Board of Directors meeting held on October 29, 2021, the Company repurchased 500,000 sharesthrough the Tokyo Stock Exchange Trading Network Off-Auction Own Share Repurchase Trading System (ToSTNeT-3) on
November 1, 2021. As a result, there was an increase of 482 million yen in treasury shares during the nine months ended
December 31, 2021, raising the balance of treasury shares to 1,416 million yen as of December 31, 2021.
(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 third quarter under review,and calculated them by multiplying this estimated effective tax rate by profit before income taxes.
(Change in accounting policies)(Adoption of Accounting Standard for Revenue Recognition)
The Company adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020;
hereinafter the “Revenue Recognition Accounting Standard”), etc., at the beginning of the first quarter of the fiscal year ending
March 31, 2022. Under this standard, revenue is recognized when control of promised goods or services is transferred to thecustomer, in the amount expected to be received in exchange for the goods or services.
The major change is that in the case of transactions, where the Company processes raw materials bought from a customer andthen sells them back to that customer, the Company now recognizes the net amount of payment received from the customer
minus the purchase price of raw materials as revenue, whereas previously the Company would recognize the total amount of
payment including the purchase price of raw materials as revenue.
In addition, for transactions in which the Company's role in selling products to customers falls under the category of agent, theCompany previously recognized revenue based on the total amount of payment received from the customer, but has changed to amethod of recognizing revenue based on the net amount of such total payment minus the amount paid to third parties.
The Company has applied the Revenue Recognition Accounting Standard, etc., in accordance with the transitional treatment
provided in the proviso of Paragraph 84 of the Guidance on Accounting Standard for Revenue Recognition. After the cumulative
effects of retrospectively applying the new accounting policy prior to the beginning of the first quarter of the fiscal year ending
March 31, 2022, were added to or subtracted from the beginning balance of retained earnings, the Company began using the
new accounting policy starting with the beginning balance of the current fiscal year. However, while the Company applied thepolicy set forth in Paragraph 86 of the Revenue Recognition Accounting Standard, it did not apply the new accounting policy
retrospectively to contracts in which almost all of the revenue amounts were recognized using the previous accounting practiceprior to the beginning of the first quarter of the fiscal year ending March 31, 2022. Using the method specified in the additional
provision (1) of Paragraph 86 of the Revenue Recognition Accounting Standard, the Company accounted for contract changes
made prior to the beginning of the first quarter of the fiscal year ending March 31, 2022, based on the contract terms afterreflecting all contract changes, and added or subtracted the cumulative effects of such changes on retained earnings at the
beginning of the first quarter of the fiscal year ending March 31, 2022.
As a result, net sales and cost of sales for the nine months ended December 31, 2021, decreased 1,158 million yen and 1,158
million yen respectively. The effects on operating profit, ordinary profit, and profit before income taxes were insignificant. The
effects on the beginning balance of retained earnings were also insignificant.
In accordance with the transitional treatment specified in Paragraph 89-2 of the Revenue Recognition Accounting Standard, theprior year's consolidated financial statements have not been reclassified to conform to the new presentation.
(Adoption of Accounting Standard for Fair Value Measurement)
The Company adopted the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019; hereinafter
the “Fair Value Measurement Accounting Standard”), etc., at the beginning of the first quarter of the fiscal year ending March
31, 2022. In accordance with the transitional treatment specified in Paragraph 19 of the Fair Value Accounting Standard andParagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Company
applies the new accounting policies set forth in the Fair Value Accounting Standard prospectively. The adoption of the new
accounting standard had no effect on quarterly consolidated financial statements.

(Additional information)
The Company makes estimates and judgments regarding impairment of non-current assets and recoverability of deferred tax
assets in consideration of deterioration of profitability due to decreased orders affected by COVID-19 in Japan and abroad.
While the Company assumed that the impact would continue throughout the fiscal year under review, it currently makes
accounting estimates on the assumption that the impact will continue in the next fiscal year. In the future, actual figures may
differ from these estimates and assumptions.
(Segment information)
Segment information
I. Nine months ended December 31, 2020 (from April 1, 2020, to December 31, 2020)
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

19,537

16,816

4,011

2,409

2,129

44,905-44,905

331

0

3

60

-

396

-396

-

19,86816,817

4,015

2,470

2,129

45,301-396

44,905

Segment income
1,411
509
-484
-106
214
1,544
-1,849-304(loss)(Notes) 1. The adjustment of -1,849 million yen for segment income (loss) includes an inter-segment elimination of 1 million yen
and corporate expenses that are not allocated to any reportable segments totaling -1,851 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 loss 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. 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

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)

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. Matters related to changes to reporting segments, etc.
As described in “Changes in Accounting Policies,” the Company adopted the Revenue Recognition Accounting Standard,etc., at the beginning of the first quarter of the fiscal year ending March 31, 2022, and changed its accounting method forrevenue recognition. Accordingly, the method of accounting for profit or loss in the business segments has also changed.
As a result of these changes, net sales for the metal business, functional parts, and anti-vibration parts segments have declinedby 933 million yen, 178 million yen, and 46 million yen respectively for the nine months ended December 31, 2021, comparedto the figures otherwise calculated by the accounting method used prior to the changes. The effects of these changes on
operating profit were insignificant.
3. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.