Financial Results Summary for the Six Months Ended September 30, 2022 [Japanese GAAP](Consolidated)
Company Name:
Securities Code:
Representative:
Contact:

October 31, 2022
Exchange listed on:
Tokyo Stock Exchange
URL:
https://www.fukoku-rubber.co.jp/(Name) Takashi Ogawa(Name) Norio Nakatsugawa(Tel) 048-615-4400

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

Scheduled date for submission of quarterly report:

November 10, 2022
December 6, 2022

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, 2022 (From April 1, 2022 to September
30, 2022)(1) Consolidated Operating Results (cumulative)(Percentages represent year-on-year changes.)
Net sales
Six months ended September
30, 2022
Six months ended September
30, 2021(Note) Comprehensive income:Operating profit

Ordinary profit

Profit attributable to ownersof parent%
million yen%

million yen%

million yen%

million yen

38,971

6.3

817

-55.1

1,811

-14.8

1,470

-8.7

36,650

-

1,820

-

2,125

-

1,611

-

Six months ended September 30,
2022
Six months ended September 30,
2021
Profit per share

4,579 million yen[78.3%]

2,568 million yen[ - %]

Profit per share –dilutedyen

yen
Six months ended September
91.33
30, 2022
Six months ended September
97.12
30, 2021(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 six months ended September 30,
2021, are not shown here.

(2) Consolidated Financial Position
Total assets
Six months ended September
30, 2022
As of March 31, 2022
(Reference) Shareholders’ equity:2.

Net assets
million yen%

72,35538,60850.0

34,37749.5

65,039Six months ended September 30,
2022
As of March 31, 2022

36,208 million yen
32,224 million yen

Dividends
End of Q1

End of Q2
yen
-

yen
29.00

As of March 31, 2022
Fiscal year ending March 31,
27.00
2023
Fiscal year ending March 31,
2023 (forecast)(Note) Revision of the consolidated results forecast released most recently : Yes

3.

Shareholders’ equity ratio

million yen

Annual dividends
End of Q3
yen--

End of Q4

Total
yen
20.00

yen
49.00

25.00

52.00

Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2023 (from April 1, 2022, to March 31,
2023)(Percentages represent year-on-year changes.)
Net sales

Operating profit

Ordinary profit

million yen% million yen% million yen
Full year
77,000
7.7
3,700
111.5
3,800
(Note)
Revision of the consolidated results forecast released most recently : None%
50.6

Profit attributable toowners of parent
million yen
%
2,700
29.5

Profit per shareyen
167.75

*

Notes
(1)

Changes in major subsidiaries during the period under review (Change in specificsubsidiaries that will accompany a change in scope of consolidation): None(2) Adoption of special accounting procedures used in preparation of the quarterly
consolidated financial statements: 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
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,
2022
As of
September 30,
2022
As of
September 30,
2022

17,609,130
shares

As of March
31, 2022

17,609,130
shares1,499,923
shares

As of March
31, 2022

1,513,521
shares

16,097,851
shares

As of
September 30,
2021

16,589,034
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.

 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)(Six months ended September 30, 2022)··············································································· 6(Quarterly consolidated statement of comprehensive income)(Six months ended September 30, 2022)··············································································· 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(Additional information) ···································································································· 8(Segment information) ······································································································ 9

1. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results
The world situation during the six months ended September 30, 2022 became more unstable due to component supply shortages caused bydisruption to supply chains as a result of the lockdown in Shanghai, China, which was carried out as a measure for preventing COVID-19
infections, surging resource prices caused by the prolonged Ukrainian conflict, which broke out in late February, and exchange rate fluctuation
caused by currency measures against inflation in the United States. In Japan, automakers, which is the main industry with which the Company
does business, are continuing to adjust production in response to supply shortages of semiconductors and other main components impacted by
the lockdown in Shanghai. This situation will inevitably affect the Japanese economy.
Under these economic circumstances, the income of the Group has been significantly affected by the declining operation rate due to adjustments
to production by automakers and rising raw material costs, transportation costs, and fuel costs as a result of surging resource prices, despite anincreased gain on conversion to the Japanese yen due to the depreciation of the yen.
Against such a management environment backdrop, consolidated net sales for the six months ended September 30, 2022 increased 6.3% yearon-year to 38,971 million yen. Regarding income, operating profit decreased 55.1% year-on-year to 817 million yen due to the significant
impact of rising raw material costs, transportation costs, and fuel costs, and ordinary profit decreased 14.8% year-on-year to 1,811 million yen as
the decline in operating profit was not offset by gains on the sale of non-current assets owned by subsidiaries and temporary income fromforeign exchange gains. Profit attributable to owners of the parent decreased 8.7% year-on-year to 1,470 million yen, despite a gain fromtermination of the retirement benefit plan due to the change to the Company’s retirement benefit plan.
The Group’s business performance by segment is as follows.

Functional Parts BusinessNet sales decreased 2.5% year-on-year to 16,122 million yen due to production adjustment by automakers in response to supply chain
disruptions. Segment income decreased 37.1% year-on-year to 1,255 million yen due to the significant impact of rising raw materials prices andsurging transportation costs.

Anti-vibration Parts BusinessNet sales increased 15.6% year-on-year to 16,117 million yen due to steady orders for construction machinery and the launch of new products
for electric vehicles. Segment income decreased 16.5% year-on-year to 685 million yen due to the significant impact of surging costs formaterials for metal parts.

Metal BusinessNet sales increased 14.6% year-on-year to 3,073 million yen. Segment loss was 21 million yen (43 million yen for the same period of theprevious fiscal year), despite improvement from the effect of streamlining efforts and selling prices that reflected rising costs for materials formetal parts.

Hose BusinessNet sales increased 2.0% year-on-year to 2,396 million yen. Segment income decreased 42.8% year-on-year to 58 million yen due to rising raw
material prices.

Industrial Equipment BusinessNet sales increased 7.5% year-on-year to 1,585 million yen as orders remained steady. Segment income decreased 2.7% year-on-year to 278
million yen due to rising raw material prices.

(2) Explanation of financial position
Total assets as of September 30, 2022, were 72,355 million yen, an increase of 7,315 million yen from the end of the previous fiscal year.
Current assets increased 5,212 million yen from the end of the previous fiscal year to 42,957 million yen. This is due primarily to an increase innotes and accounts receivable - trade as a result of the recovery in orders.
Non-current assets rose 2,103 million yen over the end of last fiscal year to total 29,398 million yen. This is due primarily to the effects offoreign currency translations and the acquisition of property, plant, and equipment.
Liabilities totaled 33,746 million yen, an increase of 3,084 million yen from the end of the previous fiscal year. This is mainly due to an increasein short-term borrowing.
Net assets totaled 38,608 million yen, an increase of 4,231 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 50.0%, up 0.5 percentage points from the end of the previous fiscal year.

(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 production adjustment
by automakers and increases in raw material prices and transportation costs in response to Russia’s invasion of Ukraine and the impact of the
lockdown in Shanghai, China, on supply chains. However, the figures released on May 13, 2022, are unchanged, as we will make a Companywide effort for further streamlining and efficiency improvement to lower the break-even point and for reflecting 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 vary from 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, 2022

Second quarter under review
As of September 30, 2022

AssetsCurrent assets
Cash and deposits

9,301

10,429Notes and accounts receivable - trade
Merchandise and finished goods

17,394
5,256

19,237
6,162Work in process
Raw materials and supplies

1,236
3,112

1,334
3,533

Other
Allowance for doubtful accounts

1,495
-51

2,317
-58

Total current assets

37,74442,957

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

7,848
9,640

8,474
9,854

Land
Other, net

5,844
1,419

6,030
2,221

Total property, plant and equipment

24,753

26,581

878

1,103

734
928

797
915

1,662

1,713

27,29429,39865,03972,355

Non-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

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

Second quarter under review
As of September 30, 2022

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

4,741

5,470

4,589
7,786

4,819
10,471

297
934

342
763

Other

4,441

5,088

Total current liabilities

22,792

26,956Long-term borrowings
Retirement benefit liabilities
Provision for retirement benefits for directors (andother officers)
Other

3,143
2,540

2,889
1,334

146

168

2,039

2,398

Total non-current liabilities

7,870

6,790

30,662

33,746

Shareholders’ equity
Share capital

1,395

1,395

Capital surplus
Retained earnings

1,572
29,554

1,573
30,702

Treasury shares-1,416-1,403

Total shareholders’ equity

Non-current liabilities

Total liabilities
Net assets

31,10632,267

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

93

92

-1

-14

Foreign currency translation adjustment

1,025

3,863

Total accumulated other comprehensive income

1,117

3,940

Non-controlling interests

2,152

2,399

Total net assets

34,37738,60865,03972,355

Total liabilities and net assets

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statement of income)(Six months ended September 30, 2022)(Million yen)

Net sales

Six-month period in the previous
fiscal year
(From April 1, 2021
to September 30, 2021)
36,650Six-month period under review(From April 1, 2022
to September 30, 2022)
38,971

Cost of sales

30,11032,918Gross profit

6,539

6,052

Selling, general and administrative expenses

4,719

5,235

Operating profit

1,820

817

12
3

20
3

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

3

5

98
201

410
458

Subsidies for employment adjustment
Other

2
94

170
80

Total non-operating income

415

1,150

Interest expenses
Loss on retirement of non-current assets

51
19

52
76

Other

39

27

Non-operating expenses

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

110

156

2,125

1,811

8

2

Gain on termination of retirement benefit plan-554

Total extraordinary income

8

557

-

10
10

Profit before income taxes

2,134

2,358

Income taxes - current
Income taxes - deferred

502
0

448
387

Extraordinary losses
Loss on litigation
Total extraordinary losses

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

502

835

1,631

1,522

20

52

1,611

1,470

(Quarterly consolidated statement of comprehensive income)(Six months ended September 30, 2022)(Million yen)

ProfitOther 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

Six-month period in the previous
fiscal year
(From April 1, 2021
to September 30, 2021)
1,631

Six-month period under review(From April 1, 2022
to September 30, 2022)
1,522

-11

-1

-22
938

-13
3,010

31

61

936

3,056

Comprehensive income

2,568

4,579

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

2,482

4,293

85

285

(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.
(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 Accounting Procedures for Shifting between Different Retirement
Benefit Programs (ASBJ Implementation Guidelines No. 1, amended on December 16, 2016) for the accounting proceduresfor the shift of the pension program. For this reason, a gain on termination of the retirement benefit plan of 554 million yen
was posted as extraordinary income for the six months ended September 30, 2022.

(Segment information)
Segment information
I. Six months ended September 30, 2021 (from April 1, 2021, to September 30, 2021)
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

16,25813,935

2,682

2,299

1,474

36,650-36,650

272

2

0

50

-

326

-326

-

16,531

13,937

2,682

2,350

1,474

36,976-326

36,650Industrial
Equipment

Net sales
Sales to external customers
Intersegment sales ortransfer
Total

Segment income
1,996
821
-43
102
286
3,162
-1,342
1,820(loss)(Notes) 1. The adjustment of -1,342 million yen for segment income (loss) includes an inter-segment elimination of 2 million yen
and corporate expenses that are not allocated to any reportable segments totaling -1,344 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, 2022 (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

Industrial
Equipment

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

Net sales
Sales to external customers
Intersegment sales ortransfer
Total

Segment income
1,255
685
-21
58
278
2,257
-1,440817(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.