Financial Results Summary for the Six Months Ended September 30, 2023 [Japanese GAAP](Consolidated)
Company Name:
Securities Code:
Representative:
Contact:

October 31, 2023
Exchange listed on:
Tokyo Stock Exchange
URL:
https://www.fukoku-rubber.co.jp/(Name) Ikuo Oshiro(Name) Yukio Yamazaki(Tel) 048-615-4400

FUKOKU Co., Ltd.
5185
(Title)President & CEO(Title)General Manager of Finance
Department

Scheduled date for submission of quarterly report:

November 10, 2023
December 6, 2023

Scheduled commencement date of dividends payment:
Preparation of supplementary materials for quarterly report:
Convening quarterly results briefing:Yes
Yes (For institutional investors and analysts)(Amounts rounded down to the nearest millions of yen.)

1.

Consolidated Financial Results for the Six Months Ended September 30, 2023 (From April 1, 2023 to September
30, 2023)(1) Consolidated Operating Results (cumulative)(Percentages represent year-on-year changes.)
Net sales
Six months ended September
30, 2023
Six months ended September
30, 2022(Note) Comprehensive income:Operating profit

Ordinary profit

Profit attributable to ownersof parent%
million yen%

million yen%

million yen%

million yen

42,950

10.2

1,059

29.6

1,390

-23.2

1,047

-28.7

38,971

6.3

817

-55.1

1,811

-14.8

1,470

-8.7

Six months ended September 30, 2023
Six months ended September 30, 2022

yen

Profit per share –diluted
yen

65.03

-

91.33

-

Profit per share
Six months ended September
30, 2023
Six months ended September
30, 2022

2,897 million yen
4,579 million yen[-36.7%][78.3%](2) Consolidated Financial Position
Total assets
Six months ended September
30, 2023
As of March 31, 2023
(Reference) Shareholders’ equity:2.

Net assets

Shareholders’ equity ratio

million yen

million yen%

74,85940,42150.8

37,95249.8

71,530Six months ended September 30, 2023
As of March 31, 2023

38,044 million yen
35,619 million yen

Dividends
End of Q1

End of Q2
yen
-

yen
27.00

Annual dividends
End of Q3
yen-

As of March 31, 2023
Fiscal year ending March 31,
27.50
2024
Fiscal year ending March 31,
2024 (forecast)(Note) Revision of the consolidated results forecast released most recently : None3.

-

End of Q4

Total
yen
23.00

yen
50.00

27.50

55.00

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

Operating profit

Ordinary profit

million yen% million yen% million yen
Full year
88,000
6.9
3,900
94.0
4,000
(Note)
Revision of the consolidated results forecast released most recently : None%
27.4

Profit attributable toowners of parent
million yen
%
2,900
35.8

Profit per shareyen
180.02

*

Notes
(1)

Changes in major subsidiaries during the period under review (Change in specific: Nonesubsidiaries that will accompany a change in scope of consolidation)(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
1)
Change in accounting policies in accordance with revision of accounting standards:: None2)
Change in accounting policies other than item 1) above: None3)
Change in accounting estimates: None4)
Retrospective restatements: None(4)***

Number of shares issued (common shares)
1)
Number of shares issued at the end of theperiod (including treasury shares)2)
Number of treasury shares at the end of theperiod3)
Average number of shares issued during theperiod (cumulative from the beginning of the
fiscal year)

As of September
30, 2023
As of September
30, 2023
As of September
30, 2023

17,609,130
shares1,493,432
shares16,110,049
shares

As of March 31,2023
As of March 31,2023
As of September
30, 2022

17,609,130
shares1,500,004
shares
16,097,851
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 ·························································································· 3(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)(Six months ended September 30, 2023)··············································································· 6(Quarterly consolidated statement of comprehensive income)(Six months ended September 30, 2023)··············································································· 7(3) Notes on quarterly consolidated financial statements··································································· 8(Notes on assumptions for ongoing concerns) ··········································································· 8(Notes on when there is a significant change in the amount of shareholders’ equity) ······························ 8(Adoption of special accounting procedures used in preparation of the quarterly consolidated
financial statements) ········································································································· 8(Segment information) ······································································································ 9

11. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results
During the six months ended September 30, 2023, expectations for recovery in Japan’s economy have emerged as COVID-19 was reclassified toCategory 5, restrictions on activity and overseas travel were relaxed, and economic activity began to return to normal. However, prospects
remain uncertain due to prolonged geopolitical instability, ongoing price escalation due to soaring resource prices, and fluctuations in thefinancial capital markets.
Demand in the automobile industry remains at high levels and supply shortages of semiconductors are being overcome.
Under these economic circumstances, the income of the Group has been significantly affected by a declining operation rate due to adjustments
to production by automakers, the slowing Chinese economy, and rising raw material costs as a result of surging resource prices, despite anincreased gain on conversion to the Japanese yen due to the depreciation of the yen.
Regarding financial results for the six months ended September 30, 2023, consolidated net sales increased 10.2% year on year to 42,950 million
yen due to the impact of foreign exchange rates despite an income decrease resulting from adjustments to production by automakers. Operating
profit was up 29.6% year on year to total 1,059 million yen due to streamlining efforts, cost pass-throughs, etc., which absorbed the impact ofrising raw material and fuel costs. Ordinary profit decreased 23.2% year on year, amounting to 1,390 million yen, since one-time income that
included a gain on sales of non-current assets owned by subsidiaries was posted in the same period last year. Likewise, since one-time income,such as earnings from the termination of the retirement benefit plan due to the change in our company’s retirement benefit plan, was posted in
the same period last year, profit attributable to owners of the parent decreased 28.7% to total 1,047 million yen.
If the one-time income is not factored in, ordinary profit and net profit attributable to owners of the parent is higher than in the same period lastyear.
The Group’s business performance by segment is as follows.

Functional Parts BusinessNet sales increased 8.2% year on year to reach 17,443 million yen due to the impact of foreign currency translation despite a decline in theoperation rate as a result of production adjustments by automakers. Segment income increased 20.8% year on year to total 1,516 million yen due
to the effect of streamlining efforts and the passing of the rising cost of materials onto selling prices.

Anti-vibration Parts BusinessNet sales increased 13.4% year on year to reach 18,272 million yen due to growing demand in Southeast Asia and in the United States and theeffect of currency translation. Segment income was up 22.0% year on year to total 836 million yen due to the effect of streamlining efforts andthe passing of the rising cost of materials for metal parts onto selling prices.

Metal BusinessNet sales increased 13.7% year on year to 3,495 million yen due to steady orders for construction machinery. Segment income (which was a lossof 21 million yen for the same period last year) came to 33 million yen due to the effect of streamlining efforts and the passing of the rising costof materials for metal parts onto selling prices.

Hose BusinessNet sales climbed 9.9% year on year to total 2,633 million yen due to strong orders. Segment income fell by 94.3% year on year to three million
yen due primarily to the recognition of additional product warranty costs in North America.

Industrial Equipment BusinessNet sales fell 3.3% year on year to 1,533 million yen due primarily to declining demand for OA products in China and Southeast Asia, despite
domestic steady orders for medical products. Segment income fell 10.7% year on year to 249 million yen despite streamlining efforts.

2(2) Explanation of financial position
Total assets as of September 30, 2023 were 74,859 million yen, an increase of 3,329 million yen from the end of the previous fiscal year.
Current assets increased 2,391 million yen from the end of the previous fiscal year to 44,920 million yen. This is due primarily to an increase innotes and accounts receivable - trade as a result of the effects of foreign currency translations.
Non-current assets rose 937 million yen over the end of last fiscal year to total 29,939 million yen. This is due primarily to the effects of foreign
currency translations, the acquisition of property, plant, and equipment, and an increase in intangible assets such as software.
Liabilities totaled 34,437 million yen, an increase of 859 million yen from the end of the previous fiscal year, due primarily to inclusion of theunsettled amount of electronically recorded obligations - operating in the closing balance as of September 30, 2023, which was a bank holiday.
Net assets totaled 40,421 million yen, an increase of 2,469 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 50.8%, up 1.0 percentage point from the end of the previous fiscal year.

(3) Explanation of future forecast information such as consolidated financial results forecasts
Future economic prospects remain uncertain due to the ongoing Ukrainian conflict, the expanding Middle East crisis, other geopoliticaluncertainties, exchange rate fluctuations due to worldwide tight money policies, and a pronounced tendency toward higher prices due to soaring
resource prices.
Working against this backdrop, Fukoku Group aims to stay on track with its New Medium Term Management Plan 2026, which was announced
on June 28, 2023, through groupwide efforts designed to strengthen existing businesses and expand growth businesses as well as new
businesses. In addition to these strategies, the Group will also work on reinforcing its business foundation with a focus on ESG, with the aim of
maximizing profitability.
There have been no changes made to the full year consolidated financial results forecasts for the fiscal year ending March 31, 2024 announced
on May 15, 2023.
The above forecasts represent the Company’s best judgment based on information currently available. Actual results may vary from the above
forecasts due to various factors.

3

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

Second quarter under review
As of September 30, 2023

AssetsCurrent assets
Cash and deposits

9,972

11,314

Notes and accounts receivable - trade
Merchandise and finished goods

19,731
5,858

20,791
5,850

Work in process
Raw materials and supplies

1,322
3,872

1,422
3,847

Other
Allowance for doubtful accounts

1,802
-31

1,728
-33

Total current assets

42,52844,920

Buildings and structures, net
Machinery, equipment and vehicles, net

8,278
9,615

8,661
9,704

Land
Other, net

5,996
2,005

6,141
1,996

Total property, plant and equipment

25,896

26,505

1,406

1,630

824
874

922
881

1,699

1,804

29,001

29,93971,53074,859Non-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

4

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

Second quarter under review
As of September 30, 2023

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

5,459

5,098

5,330
9,800

6,092
10,333

383
753

388
803

Other

4,618

4,889

Total current liabilities

26,34527,606Long-term borrowings
Retirement benefit liabilities
Provision for retirement benefits for directors (andother officers)
Other

3,178
1,314

2,655
1,470

173

184

2,565

2,520

Total non-current liabilities

7,232

6,831

33,57734,437

Shareholders’ equity
Share capital

1,395

1,395

Capital surplus
Retained earnings

1,573
30,9691,575
31,646

Treasury shares-1,403-1,397

Total shareholders’ equity

Non-current liabilities

Total liabilities
Net assets

32,53433,220

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

108

160

-7

-42

Foreign currency translation adjustment

2,983

4,705

Total accumulated other comprehensive income

3,084

4,824

Non-controlling interests

2,333

2,377

Total net assets

37,95240,421

71,53074,859Total liabilities and net assets5(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statement of income)(Six months ended September 30, 2023)
Six-month period in the previous
fiscal year
(From April 1, 2022
to September 30, 2022)
38,971(Million yen)Six-month period
under review(From April 1, 2023
to September 30, 2023)
42,950

Cost of sales

32,91836,304Gross profit

6,052

6,645

Selling, general and administrative expenses

5,235

5,585

817

1,059

20
3

37
3

5

18

410
458

385
17

Net sales

Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Gain on sale of non-current assets
Other
Total non-operating income
Non-operating expenses
Interest expenses

250

119

1,150

582

52

120

Loss on retirement of non-current assets
Other

76
27

74
56

Total non-operating expenses

156

251

1,811

1,390

Gain on sale of investment securities
Gain on termination of retirement benefit plan

2
554

-

Total extraordinary income

557

-

10

-

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on litigation
Total extraordinary losses

10

-

2,358

1,390

Income taxes - current

448

447

Income taxes - deferred

387

-75

Profit before income taxes

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

6

835

371

1,522

1,018

52

-29

1,470

1,047

(Quarterly consolidated statement of comprehensive income)(Six months ended September 30, 2023)

ProfitSix-month period in the previous
fiscal year
(From April 1, 2022
to September 30, 2022)
1,522(Million yen)Six-month period
under review(From April 1, 2023
to September 30, 2023)
1,018

-1

52

-13
3,010

-39
1,839

61

26

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

3,056

1,878

Comprehensive income

4,579

2,897

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

4,293

2,787

285

109

7

(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 estimated the effective tax
rate after applying tax effect accounting to profit before income taxes in the fiscal year, including the second quarter underreview, and calculated them by multiplying this estimated effective tax rate by profit before income taxes.

8

(Segment information)
Segment information
I. Six months ended September 30, 2021 (from April 1, 2022, to September 30, 2022)
1. Information on net sales, income or loss by reporting segment
Reporting segment
Total(Million yen)
Quarterly
consolidated
Adjustments statement of(Note) 1
incomeamounts(Note) 2

Functional
Parts

Antivibration
Parts

Metal

Hose

15,847

16,115

3,073

2,350

1,585

38,971-

38,971

275

2

0

46

-

324

-324

-

16,122

16,117

3,073

2,396

1,585

39,295-324

38,971

1,255

685

-21

58

278

2,257

-1,440817

Industrial
Equipment

Net sales
Sales to external customers
Intersegment sales ortransfer
Total
Segment income (loss)(Notes) 1. The adjustment of -1,440 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 -1,441 million yen. Corporate
expenses are primarily general and administrative expenses that are not attributable to any reporting segments.
2. Segment income (loss) is adjusted to be consistent with operating profit recorded in the quarterly consolidated
statement of income.
2. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.
II. Six months ended September 30, 2023 (from April 1, 2023, to September 30, 2023)
1. Information on net sales, income or loss by reporting segment
Reporting segment
Total(Million yen)
Quarterly
consolidated
Adjustments statement of(Note) 1
incomeamounts(Note) 2

Functional
Parts

Antivibration
Parts

Metal

Hose

Industrial
Equipment

17,073

18,269

3,495

2,578

1,533

42,950-42,950

370

3

0

55

-

429

-429

-

Total

17,443

18,272

3,495

2,633

1,533

43,379-429

42,950

Segment income

1,516

836

33

3

249

2,639

-1,580

1,059

Net sales
Sales to external customers
Intersegment sales ortransfer(Notes) 1. The adjustment of -1,580 million yen for segment income includes an inter-segment elimination of 1 million yen andcorporate expenses that are not allocated to any reportable segments totaling -1,578 million yen. Corporate expenses areprimarily general and administrative expenses that are not attributable to any reporting segments.
2. Segment income is adjusted to be consistent with operating profit recorded in the quarterly consolidated statement ofincome.
2. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.

9