Financial Results Summary for the Three-Month Period Ended June 30, 2022 [Japanese GAAP] (Consolidated)
July 30, 2021
Listed company:
Fukoku Co., Ltd.
Exchange listed on:
Tokyo Stock Exchange
Code:
5185
URL https://www.fukoku-rubber.co.jp/
Representative:(Title) President(Name) Takashi Ogawa
General Manager of FinanceContact:(Title)(Name) Norio Nakatsugawa (TEL) 048-615-4400
Department
Scheduled date for submission of
Scheduled commencement date ofAugust 6, 2021
quarterly report:
dividends payment:
Preparation of supplementary materials for quarterly report: NoneConvening quarterly results briefing: None(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, 2021 to June 30, 2021)(1) Consolidated Operating Results (cumulative)(Percentages represent year-on-year changes.)
Net sales
Three-month period ended
June 30, 2021
Three-month period ended
June 30, 2020
(Note) Comprehensive income

Operating profit

Profit attributable toowners of parent

Ordinary profit

million yen%

million yen%

million yen%

million yen%

18,978

-

1,337

-

1,396

-

866

-

15,884

-16.9

37

-92.3

113

-73.0

-23

-

Three-month period ended June 30, 2021
Three-month period ended June 30, 2020

1,903 million yen (-1,311 million yen (Profit per share

-%)
-%)

Profit per share – diluted
yen

yen

Three-month period ended June 30, 2021
52.24
Three-month period ended June 30, 2020
-1.39
(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 under review. Since this change affects net sales figures, year-on-year changes in net
sales for the three-month period ended June 30, 2021, are not shown here.

(2) Consolidated Financial Positions
Total assets

Net assets

million yen

Shareholders’ equity ratio

million yen

Three-month period ended June 30, 2021
64,635
Fiscal year ended March 2021
63,817(Reference) Shareholders’ equity
Three-month period ended June 30, 2021
Fiscal year ended March 2021%

33,80232,321
31,517 million yen
30,085 million yen

48.8
47.1

2. Dividends
Annual dividends
End of Q1
Fiscal year ended March 2021
Fiscal year ending March 2022
Fiscal year ending March 2022 (forecast)End of Q2

End of Q3

End of Q4

Total

yen

yen

yen

yen

yen

-

0.00

-

22.00

22.00

25.00

-

20.00

45.00

(Note) Revision of the dividends forecast released most recently : None

3. Forecast of Consolidated Results for the Fiscal Year Ending March 2022 (from April 1, 2021 to March 31, 2022)(Percentages represent changes from the previous year for the full year, and on a year-on-year basis for quarterly results.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
Profit per shareowners of parent

Q2 (cumulative)
Full year

million yen%

million yen%

million yen%

million yen%

yen

37,00073,000

-

1,850
3,720

-

2,000
3,900

-

1,350
2,450

-

81.41
147.75(Note 1) Revision of the consolidated results forecast released most recently: None(Note 2) Due to the adoption of the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.,
beginning in the first quarter under review, the above consolidated results forecasts were prepared using the said accounting
standard. Thus no year-on-year changes are stated.

-1-

* Notes(1) Changes in significant subsidiaries during the period

:

None

(Changes in specified subsidiaries resulting in changes in the scope of consolidation)(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(i) Change in accounting policies in accordance with: Yes
revision of accounting 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 Q1 of fiscal year
ending Marchend of the period (including2022
treasury shares)of fiscal year(ii) Number of treasury shares at the Q1
ending Marchend of the period
2022(iii) Average number of shares
Q1 of fiscal year
issued during the period
ending March(cumulative from the beginning of 2022
the fiscal year)**

17,609,130 sharesFiscal year
ended March
2021

17,609,130 shares

1,026,802 sharesFiscal year
ended March
2021

1,026,754 shares

16,582,344 shares

Q1 of fiscal
year ending
March 2021

16,562,916 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 notintend 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 informationsuch 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.

-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···················································································· 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 ofcomprehensive ········································································································· 6(Quarterly consolidated statement of income)(Three-month period) ···························································································· 6(Quarterly consolidated statement of comprehensive income)(Three-month period) ···························································································· 7(3)Notes to quarterly consolidated financial statements ····························································· 8(Notes to assumptions for 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)································································································ 9-3-1. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results
During the three-month period under review, the global economy generally saw a quick recovery in demand despite regional
differences in the spread of COVID-19 infections.
The automotive industry, where the Group has major customers, saw orders, which had continued an upward trend since the second
half of last year, pick up quickly in step with the recovery of automobile sales in the U.S. and China.
Working against this backdrop, the Group enjoyed a steady flow of orders, and consolidated net sales totaled 18,978 million yen(up from 15,884 million yen for the same period last year). The Company worked on various improvements, such as streamlining
manufacturing processes and enhancing efficiency in indirect operations, since last fiscal year with an aim of lowering break-evensales. These efforts paid off with operating profit totaling 1,337 million yen (up from 37 million yen for the same period last year),ordinary profit totaling 1,396 million yen (up from 113 million yen for the same period last year), and profit attributable to ownersof parent totaling 866 million yen (compared to a loss of 23 million yen for the same period last year). While net sales decreased
455 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 effects of this change on profit/loss were insignificant.
While the Company expects to be affected by the global shortage of semiconductors, higher shipping costs due to container
shortages, and rising material costs during the rest of the fiscal year, it will take optimal measures to minimize the impact.
The Group’s business performance by segment is as follows.
Functional Parts BusinessNet sales increased 37.1% year on year, totaling 8,782 million yen as orders quickly recovered in Japan and overseas. Segment
income rose 309.4% year on year to hit 1,265 million yen as a result of structural reforms, including the streamlining of production
and cost cutting, in addition to sales growth. While net sales fell 67 million yen due to the adoption of the Revenue Recognition
Accounting Standard, etc., there was no effect on segment income.
Anti-Vibration Parts BusinessNet sales rose 11.8% year on year to total 718 million yen as orders steadily recovered. Segment income was up 33.0% year on year
to total 505 million yen thanks to increased sales as well as structural reforms focusing on streamlining production, cutting costs,
etc. While net sales decreased 56 million yen due to the adoption of the Revenue Recognition Accounting Standard, etc., the effecton segment income was insignificant.
Metal BusinessNet sales dropped 19.9% year on year to total 1,310 million yen. A segment loss of 13 million yen (which was 111 million yen forthe same period last year) was posted because structural reforms were still running late. While net sales fell 332 million yen due tothe adoption of the Revenue Recognition Accounting Standard, etc., it did not affect segment income.
Hose BusinessNet sales rose 18.7% year on year to total 1,200 million yen as orders steadily recovered. Segment income increased 240.2% year
on year to total 93 million yen due to increased net sales.
Industrial Equipment BusinessNet sales increased 25.4% year on year to total 749 million yen as orders steadily recovered. Segment income was up 174.6% year
on year to total 144 million yen thanks to increased sales as well as the positive effects of structural reforms.
(2) Explanation of financial position
Total assets as of the end of the first quarter under review were 64,635 million yen, up 817 million yen over the end of last fiscal
year.
Current assets increased 468 million yen over the end of last fiscal year to total 36,687 million yen. This is due primarily to anincrease in merchandise and finished goods as a result of the recovery in orders.
Non-current assets rose 349 million yen over the end of last fiscal year to total 27,948 million yen. This is primarily due to theacquisition of property, plant, and equipment as well as the effects of foreign currency translations.
Liabilities totaled 30,832 million yen, a decrease of 663 million yen compared to the end of last fiscal year. This decrease is primarily
attributable to the repayment of short-term borrowings.
Net assets totaled 33,802 million yen, an increase of 1,481 million yen over the end of last fiscal year. This is primarily due toincreases in retained earnings and foreign currency translation adjustments.
As a result, the shareholders’ equity ratio came to 48.8%, up 1.7 percentage points over the end of last fiscal year.

-4-(3) Explanation of future forecast information such as consolidated financial results forecasts
The Company has revised the forecast figures for consolidated results for the six-month period ending September 30, 2021, and thefiscal year ending March 31, 2022, as well as the dividends forecast, all of which were announced on May 14, 2021. For more
information, see the notice dated July 28, 2021, regarding the revisions to the consolidated performance forecasts and dividends
forecast.
The above forecasts represent the Company’s best judgment based on information currently available. Actual results may vary fromthe above forecasts due to various factors.

-5-

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

First quarter under review(June 30, 2021)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

8,992
18,713

8,967
18,627

Merchandise and finished goods
Work in process

3,990
1,060

4,317
1,192

Raw materials and supplies
Other

2,200
1,299

2,276
1,343

Allowance for doubtful accounts

-37

-38

36,21836,687

7,235

7,393

Machinery, equipment and vehicles, net
Land

10,0405,806

10,015
5,856

Other, net

2,101

2,171

Total property, plant and equipment

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

25,18425,437

Intangible assets

784

840

Investments and other assets
Investment securities

745

779

898
-13

905
-13

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

-6-

1,629

1,670

27,59927,94863,81764,635

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

First quarter under review(June 30, 2021)

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

4,460
4,733

4,705
4,969

Short-term borrowings
Income taxes payable

8,751
209

8,180
196

Provision for bonuses
Other

798
4,317

537
4,102

Total current liabilities

23,27022,692

Non-current liabilities
Long-term borrowings

3,338

2,886

Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Other

2,296

2,370

144

137

2,446

2,746

Total non-current liabilities

8,225

8,140

31,49630,832

Shareholders’ equity
Share capital

1,395

1,395

Capital surplus
Retained earnings

1,571
28,315

1,571
28,817

Treasury shares

-933

-933

30,34830,850

109

115

1
-374

-15
566

-262

666

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests

2,235

2,285

Total net assets

32,32133,802

63,81764,635

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-month period)(Million yen)

Net sales
Cost of sales

Three-month period in theThree-month period under review
previous fiscal year
(From April 1, 2021
(From April 1, 2020
to June 30, 2021)
to June 30, 2020)
15,884
18,978
13,624
15,266Gross profit

2,260

3,712

Selling, general and administrative expenses

2,223

2,374

Operating profit

37

1,337

Non-operating income
Interest income

15

6

3

2

-

0

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

31

Subsidies for employment adjustment
Other

101
26

2
53

Total non-operating income

146

96

34

24

1

-

13
20

12

70

37

113

1,396

Loss on valuation of investment securities

0-

Total extraordinary losses

0-Profit before income taxes

113

1,396

Income taxes - current
Income taxes - deferred

226
-156

219
282

Total income taxes

69

502

Profit43894

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses

Profit attributable to non-controlling interests

66

27

Profit (loss) attributable to owners of parent

-23

866

-8-

(Quarterly consolidated statement of comprehensive income)(Three-month period)(Million yen)Three-month period in theprevious fiscal year
(From April 1, 2020
to June 30, 2020)
ProfitOther comprehensive income

Three-month period under review(From April 1, 2021
to June 30, 2021)
43

894

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

6
-24

5
-15

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income-1,328

994

-8

24

-1,355

1,009-1,311

1,903-1,193

1,796

-117

107

Comprehensive income
Profit attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests-9-(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.
(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 under review. Under this standard,
revenue is recognized when control of promised goods or services is transferred to the customer, in the amount expected to bereceived in exchange for the goods or services.
In addition, the Company applies the alternative practice provided in Paragraph 98 of the Guidance on Accounting Standard for
Revenue Recognition and recognizes revenue upon shipment of goods or products sold in Japan, if the period from shipment totransfer of control of the goods or products to the customer is of normal length.
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 toa method 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 under review were added
to or subtracted from the beginning balance of retained earnings, the Company began using the new accounting policy startingwith the beginning balance of the current fiscal year. However, while the Company applied the policy set forth in Paragraph 86of the Revenue Recognition Accounting Standard, it did not apply the new accounting policy retrospectively to contracts in whichalmost all of the revenue amounts were recognized using the previous accounting practice prior to the beginning of the firstquarter under review. 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 under review
based on the contract terms after reflecting all contract changes, and added or subtracted the cumulative effects of such changes
on retained earnings at the beginning of the first quarter under review.
As a result, net sales and cost of sales for the first quarter under review decreased 455 million yen and 454 million yen respectively.
The effects on operating profit, ordinary profit, and profit before income taxes were insignificant. The effects on the beginningbalance 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 under review. In accordance withthe transitional treatment specified in Paragraph 19 of the Fair Value Accounting Standard and Paragraph 44-2 of the AccountingStandard 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)(Accounting estimates on the impact of COVID-19)
There have been no significant changes to the assumptions and accounting estimates regarding the impact of COVID-19 describedunder “Critical Accounting Estimates” in the annual securities report for the previous fiscal year.

- 10 -

(Segment information)
Segment information
I. Three-month period in the previous fiscal year (from April 1, 2020 to June 30, 2020)
1. Information on net sales, income or loss by reporting segment
Reporting segment(Million yen)
Quarterly
consolidated
Adjustments statement of(Note) 1
incomeamounts(Note) 2

Functional
Parts

AntiVibration
Parts

Metal

6,305

6,357

1,635

988

597

15,884-

15,884

102

0

1

21

-

126

-126

-

Total

6,408

6,357

1,636

1,010

597

16,011-126

15,884

Segment income (loss)

309

380

-111

27

52

657

-620

37

Hose

Industrial
Equipment

Total

Net sales
Sales to externalcustomers
Intersegment sales ortransfer(Notes) 1. The adjustment of -620 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 -624 million yen. Corporate expenses areprimarily 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 statementof income.
2. Information on impairment loss on non-current assets and goodwill and other by reporting segment
Not applicable.

- 11 -

II. Three-month period under review (from April 1, 2021 to June 30, 2021)
1. Information on net sales, income or loss by reporting segment
Reporting segment(Million yen)
Quarterly
consolidated
Adjustments statement of(Note) 1
incomeamounts(Note) 2

Functional
Parts

AntiVibration
Parts

Metal

8,635

7,107

1,310

1,175

749

18,978-18,978

147

1

0

24

-

173

-173

-

Total

8,782

7,108

1,310

1,200

749

19,152-173

18,978Segment income (loss)

1,265

505

-13

93

144

1,996

-658

1,337

Hose

Industrial
Equipment

Total

Net sales
Sales to externalcustomers
Intersegment sales ortransfer(Notes) 1. The adjustment of -658 million yen for segment income (loss) includes an inter-segment elimination of -3 million yen
and corporate expenses that are not allocated to any reportable segments totaling -655 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 statementof income.
2. Information on 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 under review and changed its accounting method for revenue recognition. Accordingly, the methodof accounting for profit or loss in the business segments has also been changed.
As a result of these changes, net sales for the functional parts, anti-vibration parts, and metal business segments have declined by
67 million yen, 56 million yen, and 332 million yen respectively compared to 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.

- 12 -