Financial Results Summary for the Three-Month Period Ended June 30, 2022 [Japanese GAAP](Consolidated)
July 29, 2022
Exchange listed on: Tokyo Stock Exchange
URL: https://www.fukoku-rubber.co.jp/(Name) Takashi Ogawa

Fukoku Co., Ltd.
5185
(Title) President & CEO
Corporate Officer and General
Contact:(Title)Manager of Finance Department
Scheduled date for submission of
As of August 10, 2022
quarterly report:
Preparation of supplementary materials for: Nonequarterly report
Convening quarterly results briefing: NoneCompany Name:
Securities Code:
Representative:(Name)

Norio Nakatsugawa(TEL) 048-615-4400

Scheduled commencement date ofdividends payment:-(Amounts rounded down to the nearest millions of yen.)

1. Consolidated Financial Results for the Three-Month Period Ended June 30, 2022 (From April 1, 2022 to June 30,
2022)(1) Consolidated Operating Results (cumulative)(Percentages represent year-on-year changes.)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
million yen%

million yen

Three months ended June 30, 2022
19,3892.2
Three months ended June 30, 2021
18,978(Note) Comprehensive income:Three months ended June 30, 2022

447
1,337

million yen%

million yen

%

1,080
1,396

-22.6
-

861
866

-0.6
-

2,405 million yen
1,903 million yen

Three months ended June 30, 2021

Profit per share

%

-66.6
-

(26.3%)(-%)

Profit per share – diluted

yen

yen

Three months ended June 30, 2022
53.51
Three months ended June 30, 2021
52.24
(Note) The Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc.,
at the beginning of the first quarter of the fiscal year ended March 31, 2022. For this reason, year-on-year changes in net
sales for the three months ended June 30, 2021, are not shown here.

(2) Consolidated Financial Position
Total assets

Net assets

million yen

Three months ended June 30, 2022
As of March 31, 2022
(Reference) Shareholders’ equity:

Shareholders’ equity ratio

million yen%

67,71436,45165,03934,377
Three months ended June 30, 2022
34,146 million yen
As of March 31, 2022
32,224 million yen

50.4
49.5

2. Dividends
End of Q1

End of Q2

yen

Annual dividends
End of Q3

yen

As of March 31, 2022
29.00
Fiscal year ending March 31,
2023
Fiscal year ending March 31,
25.00
2023 (forecast)(Note) Revision of the dividends forecast released most recently

End of Q4

Total

yen

yen

yen

-

20.00

49.00

-

25.00

50.00

: None3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2023 (from April 1, 2022, to March 31,
2023)
Net sales
million yen(Note)

Operating profit% million yen(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
Profit per shareowners of parent% million yen% million yen

Full year
77,000
7.7
3,700
111.5
3,800
50.6
Revision of the consolidated results forecast released most recently: None

-1-

2,700

%

yen

29.5

167.75

* Notes(1) Changes in major subsidiaries during the period under review(Change in specific subsidiaries that will accompany a change inscope of consolidation)(2) Adoption of special accounting procedures used in preparation of
the quarterly consolidated financial statements: None: Yes(Note) For details, please see “2. Quarterly Consolidated Financial Statements and Key Notes, (3) Notes to quarterly consolidated
financial statements (Adoption of special accounting procedures used in preparation of the quarterly consolidated financial
statements)” on Page 8 of the attachments.

(3) Change in accounting policies or estimates and retrospective restatements(i) Change in accounting policies in accordance with revision of: Noneaccounting standards(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
the period(iii) Average number of shares issued during
the period (cumulative from the
beginning of the fiscal year)**

As of June 30, 2022

17,609,130 shares As of March 31, 2022

17,609,130 shares

As of June 30, 2022

1,513,541 shares As of March 31, 2022

1,513,521 shares

As of June 30, 2022

16,095,595 shares As of June 30, 2021

16,582,344 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 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. 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 be considered as the primary version.

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○ 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)(Three months ended June 30, 2022) ················································································· 6(Quarterly consolidated statement of comprehensive income)(Three months ended June 30, 2022) ················································································· 7(3) Notes to quarterly consolidated financial statements ································································· 8(Notes to assumptions for ongoing concerns) ········································································· 8(Notes when there is a significant change in the amount of shareholders’ equity) ····························· 8(Adoption of special accounting procedures used in preparation of the quarterly consolidated financial
statements) ················································································································· 8(Additional information) ································································································· 8(Segment information) ··································································································· 9-3-1. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results
The economic situation during the three months ended June 30, 2022, has remained on a slow recovery trend since COVID-19
countermeasures of major economies have shifted to aiming at both epidemic prevention and economic recovery. As Russia began
invading Ukraine in late February, however, the outlook for the economic environment has become uncertain. During the period
under review, while production adjustments by automakers in response to insufficient semiconductor supply had only a minor
impact, there has been increasing an impact of surging raw material costs, transportation costs, and fuel costs. Japan has also beensignificantly affected by production adjustments by automakers in response to the lockdown in Shanghai that started in April.
Under this management environment, consolidated net sales increased 2.2% year-on-year to 19,389 million yen. As for gains
and losses, operating profit decreased 66.6% year-on-year to 447 million yen due to the significant impact of increases in raw
material costs, transportation costs, and fuel costs, and ordinary profit decreased 22.6% year-on-year to 1,080 million yen, as
temporary income from the gain on sale of non-current assets owned by subsidiaries and the foreign exchange gain was not able
to recover the decrease in the operating profit. The profit attributable to owners of parent decreased 0.6% year-on-year to 861
million yen despite of the gain on termination of retirement benefit plan due to change in the retirement benefit plan of theCompany.
The Group’s business performance by segment is as follows.
Functional Parts Business
Due to production adjustment by automakers in response to insufficient semiconductor supply, net sales decreased year-on-yearby 10.1% to 7,893 million yen. Segment income decreased 41.2% year-on-year to 744 million yen due to the significant impact ofrising raw materials prices and surging transportation costs.
Anti-Vibration Parts BusinessNet sales increased 13.7% year-on-year to 8,080 million yen due to steady orders for construction machinery. Segment income
decreased 44.9% year-on-year to 278 million yen due to surging costs for materials for metal parts.
Metal BusinessNet sales increased 20.3% year-on-year to total 1,576 million yen. Segment loss was 2 million yen (compared to a loss of 13
million yen for the same period of the previous fiscal year), despite an improving trend due to the effect of efforts for streamlining
and the effect of reflecting costs for materials for metal parts in selling prices.
Hose BusinessNet sales increased 3.3% year-on-year to 1,239 million yen as orders remained steady. Segment income decreased 62.7% yearon-year to 34 million yen due to surging raw material prices.
Industrial Equipment BusinessNet sales increased 0.1% year-on-year to 750 million yen as orders remained steady. Segment income decreased 20.5% yearon-year to 114 million yen due to surging raw material prices.
(2) Explanation of financial position
Total assets as of June 30, 2022, were 67,714 million yen, an increase of 2,675 million yen from the end of the previous fiscal
year.
Current assets increased 1,500 million yen from the end of the previous fiscal year to 39,244 million yen. This is due primarily
to an increase in notes and accounts receivable - trade as a result of the recovery in orders.
Non-current assets rose 1,174 million yen over the end of last fiscal year to total 28,469 million yen. This is due primarily tothe effects of foreign currency translations and the acquisition of property, plant, and equipment.
Liabilities increased 600 million yen from the end of the previous fiscal year to 31,263 million yen. This is due primarily to anincrease in notes and accounts payable - trade and electronically recorded obligations - operating.
Net assets totaled 36,451 million yen, an increase of 2,074 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 50.4%, up 0.9 percentage points from the end of the previous fiscal year.

-4-(3) Explanation of future forecast information such as consolidated financial results forecasts
The forecast of consolidated results for the fiscal year ending March 31, 2023, has become increasingly uncertain due to the
production adjustment by automakers and the increase in raw material prices and transportation costs in response to Russia’s
invasion of Ukraine and the lockdown in Shanghai, China. However, the figures released on May 13, 2022, are unchanged, as we
will make a Company-wide effort for further streamlining and efficiency improvement to lower the break-even point and forreflecting the increase in raw material prices in selling prices.
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.

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

First quarter under review(As of June 30, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

9,301
17,394

8,364
18,921

Merchandise and finished goods
Work in process

5,256
1,236

5,501
1,318

Raw materials and supplies
Other

3,112
1,495

3,134
2,059

Allowance for doubtful accounts
Total current assets

-51

-54

37,744

39,244

7,848

8,184

9,640
5,844

9,779
5,942

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

1,419

1,897

Total property, plant and equipment

24,75325,803

Intangible assets

878

976

Investments and other assets
Investment securities

734

763

928

926

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

-6-

1,662

1,690

27,29428,46965,03967,714

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

First quarter under review(As of June 30, 2022)

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

4,741
4,589

5,005
4,807

Short-term borrowings
Income taxes payable

7,786
297

7,959
266

Provision for bonuses
Other

934
4,441

476
6,118

Total current liabilities

22,792

24,634Non-current liabilities
Long-term borrowings

3,143

2,685

2,540

1,303

146

156

2,039

2,483

Retirement benefit liabilities
Provision for retirement benefits for directors (andother officers)
Other
Total non-current liabilities

7,870

6,628

30,662

31,263

Share capital
Capital surplus

1,395
1,572

1,395
1,572

Retained earnings
Treasury shares

29,554-1,41630,093-1,416

Total shareholders' equity

31,106

31,645

Total liabilities
Net assets
Shareholders’ equity

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

93

93

-1
1,025

2
2,403

Total accumulated other comprehensive income
Non-controlling interests
Total net assets

1,117
2,152
34,3772,500
2,305
36,45165,03967,714

Total liabilities and net assets-7-

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statement of income)(Three months ended June 30, 2022)

Net sales
Cost of sales(Million yen)Three-month period in theThree-month period under review
previous fiscal year
(From April 1, 2022
(From April 1, 2021
to June 30, 2022)
to June 30, 2021)
18,97819,38915,266
16,260Gross profit

3,712

3,128

Selling, general and administrative expenses

2,374

2,680

Operating profit

1,337

447

6

9

2

2

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

0

-

31
7

210
429

Other

48

30

Total non-operating income

96

681

Interest expenses
Share of loss of entities accounted for using equity
methodLoss on retirement of non-current assets
Other

24

24

-

0

4
8

18
6

Total non-operating expenses

37

49

1,396

1,080

-

2
554

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on termination of retirement benefit plan
Total extraordinary income

-

557

1,396

1,637

Income taxes - current

219

312

Income taxes - deferred

282

423

Total income taxes

502

736

Profit894

900

Profit attributable to non-controlling interests

27

39

Profit attributable to owners of parent

866

861

Profit before income taxes-8-

(Quarterly consolidated statement of comprehensive income)(Three months ended June 30, 2022)

ProfitOther comprehensive income(Million yen)Three-month period in theThree-month period under review
previous fiscal year
(From April 1, 2022
(From April 1, 2021
to June 30, 2022)
to June 30, 2021)
894
900

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

5
-15

-0
3

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

994

1,469

24

31

1,009

1,504

Comprehensive income

1,903

2,405

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

1,796

2,243

107

161

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(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 first quarter under review,and calculated them by multiplying this estimated effective tax rate by profit before income taxes.
(Additional information)(Shift of the retirement benefit plan)
On April 1, 2022, the Company completely shifted its defined-benefit corporate pension program to a defined-contribution
corporate pension program. The Company adopted the Accounting Procedures for Shifting between Different Retirement
Benefit Programs (ASBJ Implementation Guidelines No. 1, December 16, 2016) for the accounting procedures for the shift ofthe pension program. For this reason, the gain on termination of retirement benefit plan of 554 million yen was posted as theextraordinary income for the three months ended June 30, 2022.

-10-

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

Reporting segment
Total

Functional
Parts

AntiVibration
Parts

Metal

8,635

7,107

1,310

1,175

749

18,978-18,978

147

1

0

24

-

173

-173

-

8,782

7,108

1,310

1,200

749

19,152-173

18,978

1,265

505

-13

93

144

1,996

-658

1,337

Industrial
Equipment

Hose

Net sales
Sales to externalcustomers
Intersegment sales ortransfer
Total
Segment income (loss)(Notes) 1. The adjustment of -658 million yen for segment income (loss) includes an inter-segment elimination of 3 million yen andcorporate expenses that are not allocated to any reportable segments totaling -655 million yen. Corporate expenses areprimarily 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 statementof income.
2. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.
II. Three months ended June 30, 2022 (from April 1, 2022, to June 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

7,767

8,079

1,576

1,214

750

19,389-19,389

125

1

0

24

-

151

-151

-

Total

7,893

8,080

1,576

1,239

750

19,540-151

19,389Segment income (loss)

744

278

-2

34

114

1,170

-723

447

Hose

Industrial
Equipment

Net sales
Sales to externalcustomers
Intersegment sales ortransfer(Notes) 1. The adjustment of -723 million yen for segment income (loss) includes an inter-segment elimination of 7 million yen andcorporate expenses that are not allocated to any reportable segments totaling -730 million yen. Corporate expenses areprimarily 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 statementof income.
2. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.

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