Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 12, 2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:
Telephone:

Furukawa Co., Ltd.
Tokyo Stock Exchange5715
https://www.furukawakk.co.jp
Minoru Nakatogawa, President and Representative Director
Akira Mikage, General Manager, Accounting Department+81-3-6636-9502

Scheduled date of annual general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:

June 29, 2022
June 30, 2022
June 29, 2022

Preparation of supplementary material on financial results:
Holding of financial results briefing:

Yes
Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31,
2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Fiscal year ended

Millions of yen

March 31, 2022
March 31, 2021

199,097
159,702

Note: Comprehensive income

Operating profit% Millions of yen
24.7
(3.3)

7,734
5,592

Profit attributable toowners of parent

Ordinary profit% Millions of yen

38.3(35.7)

8,996
6,773

% Millions of yen
32.8(16.7)

6,477
7,468

For the fiscal year ended March 31, 2022:¥

8,021 million[(56.7)%]For the fiscal year ended March 31, 2021:¥ 18,543 million[–%]

Basic earnings
per share

Diluted earnings
per share

Return on equity

Ratio of ordinary
profit to total assets%(13.3)
68.5

Ratio of operating
profit to net sales

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2022
March 31, 2021

165.87190.73

–
–

6.9
8.9

4.0
3.2

3.9
3.5

Reference: Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2022:
For the fiscal year ended March 31, 2021:¥¥

370 million
355 million

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

229,727
218,275

100,075
94,36442.3
42.0

2,505.01
2,348.53

March 31, 2022
March 31, 2021
Reference: Equity
As of March 31, 2022:
As of March 31, 2021:¥ 97,253 million¥ 91,770 million(3) Consolidated cash flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of period
Fiscal year ended
March 31, 2022

Millions of yen
8,768

Millions of yen(5,857)

Millions of yen(6,568)Millions of yen
14,468March 31, 2021

6,042

2,245

(3,123)

17,748

2. Cash dividends
Annual dividends per share

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecast)Fiscalyear-end

Total cash
dividends (Total)

Payout ratio(Consolidated)

Ratio of dividends
to net assets(Consolidated)First
quarter-end

Secondquarter-end

Thirdquarter-end

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–

0.00

–

50.00

50.00

1,953

26.2

2.3

–

0.00

–

50.00

50.00

1,941

30.1

2.0

–

0.00

–

50.00

50.00

Total

41.3

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2023 (from April 1, 2022
to March 31, 2023)(Percentages indicate year-on-year changes.)
Net sales

Six months ending
September 30, 2022
Fiscal year ending
March 31, 2023

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings
per share

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

108,400

10.8

2,700

(22.5)

2,800(31.5)

2,000(13.5)

51.52

209,500

5.2

7,000

(9.5)

6,900

(23.3)

4,700(27.4)

121.06

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

40,445,568 shares

As of March 31, 2021

40,445,568 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

1,621,936 shares

As of March 31, 2021

1,369,919 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2022

39,054,524 sharesFiscal year ended March 31, 2021

39,157,784 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 toMarch 31, 2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Fiscal year ended

Millions of yen

March 31, 2022
March 31, 2021

7,663
8,456

Operating profit% Millions of yen(9.4)(15.3)

Basic earnings
per share

Ordinary profit% Millions of yen

3,106
4,243

(26.8)(20.9)

3,659
4,763

Profit% Millions of yen(23.2)(13.0)

2,951
7,361

%
(59.9)
60.0

Diluted earnings
per share

Fiscal year ended

Yen

Yen

March 31, 2022
March 31, 2021

75.58
187.99––(2) Non-consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Net assets per share

As ofMarch 31, 2022

Millions of yen
148,144

Millions of yen
64,968%
43.9

Yen
1,673.42

March 31, 2021

150,924

63,49042.1

1,624.81

Reference: Equity
As of March 31, 2022:¥ 64,968 million

As of March 31, 2021:¥ 63,490 million

2. Forecast of non-consolidated financial results for the fiscal year ending March 31, 2023 (from April 1,
2022 to March 31, 2023)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Ordinary profit

Basic earnings
per share

ProfitMillions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

Six months ending
September 30, 2022

4,900

(4.4)

2,500

(11.0)

2,400(24.8)

2,300(10.5)

59.24

Fiscal year ending
March 31, 2023

7,400

(3.4)

2,600

(16.3)

2,400(34.4)

2,000(32.2)

51.52* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters(1) Caution concerning forward-looking statements
The forward-looking statements, including earnings outlook, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable by theCompany. The Company makes no warranty as to the achievability of the projections. Actual business andother results may differ substantially from the statements herein due to a number of factors.
(2) Financial results briefing (for securities analysts and institutional investors)
The Company will hold a financial results briefing through livestreaming in order to prevent the spread of thenovel coronavirus disease (COVID-19). Furthermore, the Company plans to post supplementary materials anda video of the results briefing on its website.

Furukawa Co., Ltd. (5715)

Attached Material
Index
1. Overview of Operating Results and Others .............................................................................................. 2(1) Analysis of operating results .............................................................................................................. 2(2) Analysis of financial position ............................................................................................................. 6(3) Basic policy on distribution of profits and dividends for the fiscal year ended March 31, 2022 andthe fiscal year ending March 31, 2023 ............................................................................................... 7
2. Basic Policy Regarding Selection of Accounting Standards..................................................................... 8
3. Consolidated Financial Statements and Significant Notes Thereto .......................................................... 9(1) Consolidated balance sheet ................................................................................................................ 9(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 11
Consolidated statement of income.................................................................................................... 11
Consolidated statement of comprehensive income .......................................................................... 12(3) Consolidated statement of changes in equity ................................................................................... 13(4) Consolidated statement of cash flows .............................................................................................. 15(5) Notes to consolidated financial statements ....................................................................................... 16
Notes on going concern assumptions ............................................................................................... 16
Changes in accounting policies ........................................................................................................ 16
Segment information ........................................................................................................................ 17
Per share information ....................................................................................................................... 20
Material subsequent events .............................................................................................................. 20
Supplementary Material on Financial Results for the Fiscal Year Ended March 31, 2022 ........................... 22-1-

Furukawa Co., Ltd. (5715)

1. Overview of Operating Results and Others(1) Analysis of operating results(i) Overview of operating results for the fiscal year under review(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

Year-on-year change

159,702

199,097

39,394

Operating profit

5,592

7,734

2,142

Ordinary profit

6,773

8,996

2,223

Profit attributable to owners of parent

7,468

6,477

(990)

In the Japanese economy in the fiscal year under review (April 1, 2021 to March 31, 2022), theincrease in exports based on the recovery of foreign economies contributed to the improvement incorporate earnings and capital investment. There was also a recovery in individual spending by theend of the year due to the development of COVID-19 vaccination and the nationwide cancellationof the state of emergency and priority preventative measures that was issued due to the rapid spreadof COVID-19 in late September. On the other hand, corporate production activities were impacted
by disorder in the global supply chain, including a shortage of semiconductors and major parts, aprice increase for raw materials and energy, and increased freight costs due to the incapacity ofcontainer transport, for example. From the start of the new year, consumption activities andcorporate production activities were again limited by the issuance of priority preventative measuresdue to the sudden increase in those infected by the highly-contagious Omicron variant and those inclose contact with them, and there was an increasing sense of uncertainty about the future of thedomestic economy due to the Russian invasion of Ukraine.
Amid this economic environment, in its consolidated financial results for the fiscal year underreview, the Company group (the “Group”) recorded net sales of ¥199,097 million (up ¥39,394
million year on year) and operating profit of ¥7,734 million (up ¥2,142 million year on year).
While revenue increased and profit decreased for our Industrial Machinery and UNIC Machinery
segments, revenue and profit increased for our Rock Drill Machinery segment that reported an
operating loss in the previous fiscal year, which meant an increase in revenue and profit for the
Machinery Business as a whole. In the Materials business, our Metals, Electronics and Chemicals
segments reported an increase in revenue and profit. Net sales and operating profit in our Real
Estate segment were nearly flat compared to the previous fiscal. Ordinary profit was ¥8,996 million(up ¥2,223 million year on year). Under extraordinary income, we recorded gains on bargain
purchases of ¥833 million due to stock acquisition in Yamaishi Metal Co., Ltd., which became asubsidiary on October 1, 2021, and under extraordinary losses, we recorded ¥668 million for
expenses corresponding to the progress of demolition work on the Furukawa Osaka Building. As aresult, profit attributable to owners of parent was ¥6,477 million (down ¥990 million year on year).
In the previous fiscal year, we recorded ¥4,078 million in gain on sale of investment securities
under extraordinary income.
(ii) Operating performance by segment
Industrial Machinery(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

16,682

17,723

1,041

Operating profit

2,113

1,396

(717)

Year-on-year change

Industrial Machinery segment net sales were ¥17,723 million (up ¥1,041 million year on year), andoperating profit was ¥1,396 million (down ¥717 million year on year). As for orders received in thefiscal year under review, we received orders related to the construction of the upper part of the No.
3 elevated bridge on the Tokai-Kanjo Expressway Daian No. 2 (Inabe, Mie Prefecture), thereplacement construction of a pedestrian bridge in front of Kameido Station (Koto, Tokyo), and for
a SICON® enclosed hanging conveyor for construction of the Shin-Kobotoke Tunnel on the Chuo
-2-

Furukawa Co., Ltd. (5715)

Expressway. As a result, orders received were almost flat in comparison to the previous fiscal year,
but the order balance at fiscal year-end was lower than the previous fiscal year-end due to adecrease in orders received in materials-related machinery and project orders. Regarding the cargohandling equipment for the international bulk terminal at the Port of Onahama and a SICON®
enclosed hanging conveyor for the construction of the No. 1 Tokyo Metropolitan Area Tunnel of
the Chuo Shinkansen (Kita-Shinagawa Construction Zone, Tokyo), we booked sales from largescale projects and bridges and other constructor projects, leading to an increase in revenue. We
recorded a decrease in profit in materials-related machinery due to the decrease in parts andoverhaul.
Rock Drill Machinery(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

24,14930,9106,761

Operating profit(1,324)

1,117

2,442

Year-on-year change

Net sales in the Rock Drill Machinery segment were ¥30,910 million (up ¥6,761 million year onyear), and operating profit was ¥1,117 million (operating loss of ¥1,324 million in the previous
fiscal year). In the previous fiscal year, a loss was recorded due to the impact of the COVID-19
pandemic, but for the fiscal year under review, there was an increase in sales both domestically andinternationally, leading to a profit being recorded due to the major improvement in operating profit.
In particular, there was a sales increase effect from other countries due to the weak yen. There wasan increase in sales for all products, and, based on the lively demand for construction machinery inNorth America, hydraulic crawler drills increased in sales in North America, the Middle East,
Africa and Southeast Asia, while hydraulic breakers increased in Europe, and ancillary parts
increased in North America.
UNIC Machinery(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

27,80428,305500

Operating profit

3,180

2,165

(1,014)Year-on-year change

UNIC segment net sales were ¥28,305 million (up ¥500 million year on year), and operating profit
was ¥2,165 million (down ¥1,014 million year on year). Domestically, primarily until the second
quarter, the recovery of a willingness to invest led to an increase in sales to wide-area rental
companies, which held investment back in the previous fiscal year, and wholesale, but after thesecond quarter, there was a decrease mainly due to truck production delays caused by overseas
parts supply difficulties and delays in crane installations due to the decrease in production. Also,
there was a decrease in the cost price ratio and a decrease in profit caused by the rise in the cost of
raw materials, such as steel. Internationally, in China, UNIC cranes exports increased and sales
increased, but in North America, due to the shortage of materials for building construction, market
recovery stagnated, leading to a decrease in exports of mini crawler cranes and a decrease in sales,
which, together with the increased price of ocean freight, meant that operating profit was nearly flatcompared to the previous fiscal year.
Machinery Business Total(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

68,63576,9388,303

Operating profit

3,968

4,679

710

Year-on-year change

Total net sales of the Machinery business—consisting of the Industrial Machinery, Rock Drill
Machinery, and UNIC Machinery segments—amounted to ¥76,938 million (up ¥8,303 million year
on year), and operating profit was ¥4,679 million (up ¥710 million year on year).
-3-

Furukawa Co., Ltd. (5715)

Metals(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

76,094

102,995

26,900

499

940

441

Net sales
Operating profit

Year-on-year change

Net sales in the Metals segment were ¥102,995 million (up ¥26,900 million year on year), andoperating profit was ¥940 million (up ¥441 million year on year). The overseas market price ofelectrolytic copper started at US$8,768/ton before making steady progress in the latter half toaround US$9,000/ton due to the economic recovery of various European countries and the expecteddemand for electric automobiles and renewable energy. However, there was a further increase dueto the Russian invasion of Ukraine, and the price reached an all-time high of US$10,730/ton on
March 7, and by the end of the period under review the price was US$10,337/ton. The domestic
price of electrolytic copper started the year at ¥1.02 million and ended at ¥1.33 million. The
Company’s sales volume of electrolytic copper declined to 77,402 tons (down 4,596 tons year onyear) due to the gradual reduction of production volume following a review of the contracted
smelting ratio, but segment sales increased thanks to higher overseas electrolytic copper market
prices. There was also an increase in profit due to the greater price margin because of the
improvement in contracted smelting income as a result of decreased copper production output andthe rise in the price of copper.
Electronics(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

5,741

7,271

1,530

161

666

504

Net sales
Operating profit

Year-on-year change

Net sales in the Electronics segment were ¥7,271 million (up ¥1,530 million year on year), andoperating profit was ¥666 million (up ¥504 million year on year). There was an increase in sales ofcrystal products due to the higher demand for their use in discrete semiconductors. There was anincrease in sales of coils due to higher demand for in-vehicle use, although there was also an
impact from the decrease in production of automobiles from the second quarter resulting from thesemiconductor shortage. Both domestically and internationally, sales of high-purity metallic arsenic
were boosted by stable demand for compound semiconductors, a major application for thatmaterial, while demand for aluminum nitride for use in thermal management components andsemiconductor manufacturing equipment components increased.
Chemicals(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

6,367

7,896

1,529

380

743

363

Net sales
Operating profit

Year-on-year change

Net sales in the Chemicals segment were ¥7,896 million (up ¥1,529 million year on year), andoperating profit was ¥743 million (up ¥363 million year on year). Sales of cupric oxide increased
due to higher unit prices, mainly reflecting higher copper prices and strong demand for the use ofthat material in circuit boards. Sales of cuprous oxide increased due to the higher unit pricereflecting higher copper prices, although there was a decrease in the demand for ship repair,because the demand for ship bottom paints, a major application for the product, was impacted bydisorder in ship operation due to the COVID-19 pandemic.

-4-

Furukawa Co., Ltd. (5715)

Materials Business Total(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

88,203

118,163

29,960Operating profit

1,040

2,349

1,308

Year-on-year change

The Materials business—consisting of the Metals, Electronics, and Chemicals segments—posted
total net sales of ¥118,163 million (up ¥29,960 million year on year) and operating profit of ¥2,349
million (up ¥1,308 million year on year).
Real Estate(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

2,107

2,115

7

736

743

6

Net sales
Operating profit

Year-on-year change

Net sales in the Real Estate segment were ¥2,115 million (up ¥7 million year on year), andoperating profit was ¥743 million (up ¥6 million year on year). The commercial facilities of the
Muromachi Furukawa Mitsui Building (commercial name: COREDO Muromachi 2), our main
facility, was temporarily closed due to the emergency measures in Tokyo following thegovernment’s third declaration of state of emergency issued in April. It reopened with limited
operating hours in May, and while the fourth declaration of state of emergency that followed thepriority preventative measures in July was rescinded at the end of September, another preemergency status was issued at the start of the new year. In this way, throughout the entire year,
there was an impact from the COVID-19 pandemic. For these reasons, partial exemptions for rent
payments were given to commercial tenants, which caused a decrease in profit. On the other hand,overall rental revenues remained mostly on a par with the previous fiscal year due to the expansionof business office tenants.
Others(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

755

1,879

1,123

Operating profit

(82)

17

99

Year-on-year change

We run a metal powders business and a transportation business. Net sales were ¥1,879 million (up¥1,123 million year on year), and operating profit was ¥17 million (operating loss of ¥82 million in
the previous fiscal year).
(iii) Outlook for the next fiscal year
In our forecasts for the fiscal year ending March 31, 2023, we project net sales to increase ¥10,402
million to ¥209,500 million and operating profit to increase ¥734 million to ¥7,000 million
compared to the fiscal year ended March 31, 2022.
The results forecasts by segment are as follows.
In the Industrial Machinery segment, we forecast increased profit due to increased revenue frompumps, sewage plant extended transfer facilities, pump facilities such as waste processing, andbridges.
In the Rock Drill Machinery segment, despite the forecast of an increased yield effect from productprice rises and the weak yen, there will be a reduction in sales related to tunnel drill jumbos
primarily due to the delays in the construction of the Linear Chuo Shinkansen. Overall, we forecast
a decrease in net sales but an increase in operating profit.

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Furukawa Co., Ltd. (5715)

As for UNIC Machinery, while it is projected that there will be a quick recovery from the disordercaused by truck production delays and reductions, which is impacting crane installation, toward thelatter half of the year, and that there will be a recovery of the North American market, which wasdelayed by the shortage of construction materials, there will be a decrease in sales due to theRussian invasion of Ukraine and an impact from the increasing price of raw materials such as steel.
Overall, despite an increase in sales, we are forecasting that operating profit will be almost on a parwith the period under review.
In the Metals segment, the copper price for the year was set at US$9,400/ton and the exchange rate
was set at ¥120/US$. In comparison with the fiscal year under review, mainly due to the increase in
the price of metal and the weak yen, while an increase in sales is forecast, operating profit isprojected to decrease mainly due to the elimination of increased profits caused by price margin
profits.
In the Electronics segment, while the continuation of the lively demand for high-purity metallic
arsenic and aluminum nitride is forecast, profits from crystal products are projected to decrease dueto the impact of the rise in electricity costs and raw material prices. Overall, net sales are forecast to
be on par with the fiscal year under review, while operating profit is forecast to decrease.
In the Chemicals segment, the continuation of lively demand for cuprous oxide for use in substrates
is forecast, and, in comparison to the fiscal year under review, increased sales and profits are
forecast due to the increase effect from the rise in the price of copper. Overall, with regard to net
sales, while an increase in sales is projected, a decrease in operating profit is forecast.
In the Real Estate segment, in the Muromachi Furukawa Mitsui Building (commercial name:
COREDO Muromachi 2), our main facility, a decrease in sales is forecast to the reduction inbusiness office tenants, and profit is projected to decrease.
As a result of the above, ordinary profit is expected to decrease ¥2,096 million to ¥6,900 million
compared to the fiscal year under review in which foreign exchange gains were recorded, and profit
attributable to owners of parent is also expected to decline ¥1,777 million to ¥4,700 million.
(2) Analysis of financial position(i) Assets, liabilities and net assets(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Total assets

218,275

229,727

Liabilities

123,910

129,652

5,741(Interest-bearing debt)

69,68365,671(4,011)

94,364

100,075

5,710

42.0

42.3

0.3

Net assets
Equity-to-asset ratio(%)

Year-on-year change
11,452

Total assets as of the end of the fiscal year under review were ¥229,727 million, an increase of¥11,452 million compared to the end of the previous fiscal year. The main reasons for the increase
were a reduction in cash and deposits, increases in inventory such as raw materials and stock,buildings, structures, and land, and an increase in investment securities due to rising prices of listed
shares. Interest-bearing debt (borrowings) was ¥65,671 million, a decrease of ¥4,011 million
compared to the end of the previous fiscal year, and total liabilities were ¥129,652 million, an
increase of ¥5,741 million compared to the end of the previous fiscal year due to an increase innotes and accounts payable - trade, electronically recorded obligations - operating, and accounts
payable - other. As a fund-raising measure based on the impact of the COVID-19 pandemic,¥10,000 million in working capital procured in May 2020 was settled following a repayment of thebalance of ¥2,000 million at the end of the previous fiscal year. Net assets were ¥100,075 million,
an increase of ¥5,710 million compared to the end of the previous fiscal year, and equity-to-asset
ratio rose 0.3 percentage points to 42.3%.

-6-

Furukawa Co., Ltd. (5715)(ii) Cash flows(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Year-on-year change

Cash flows from operating activities

6,042

8,768

2,726

Cash flows from investing activities

2,245(5,857)(8,102)

Cash flows from financing activities(3,123)(6,568)(3,445)

Cash and cash equivalents

17,748

14,468(3,279)In the fiscal year under review, net cash provided by operating activities amounted to ¥8,768
million from the recording of profit before income taxes and other factors. Net cash flows frominvesting activities were ¥5,857 million primarily due to expenditure for the acquisition of tangible
fixed assets, while net cash flows from financing activities were ¥6,568 million primarily due to
expenditure for loan repayments and dividend payments. As a result, cash and cash equivalents at
the end of the fiscal year under review totaled ¥14,468 million, down ¥3,279 million compared tothe end of the previous fiscal year.
(iii) Trends in cash flow indicators
Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended
March 31, 2019
March 31, 2020
March 31, 2021
March 31, 2022
Equity-to-asset ratio

(%)

36.3

36.0

42.0

42.3

Market value equity ratio

(%)

25.6

19.8

23.9

21.8

Debt repayment ratio(Years)

6.2

8.4

11.5

7.5

Interest coverage ratio(Times)

20.5

16.4

13.1

20.4

Notes: Equity-to-asset ratio: equity / total assets
Market value equity ratio: market capitalization / total assets
Debt repayment ratio: interest-bearing debt / operating cash flow
Interest coverage ratio: operating cash flow / interest payment
1) All indicators are calculated using consolidated-based financial figures.
2) Market capitalization is calculated by multiplying the closing share price at the end of the period by the
total number of issued shares at the end of the period (excluding treasury shares).
3) Operating cash flow represents cash flows from operating activities in the consolidated statement of cash
flows.
4) Interest-bearing debt represents the liabilities (borrowings) in the consolidated balance sheet on whichinterest is paid.
5) Interest payment represents interest paid in the consolidated statement of cash flows.

(3) Basic policy on distribution of profits and dividends for the fiscal year ended March 31, 2022 andthe fiscal year ending March 31, 2023
The Company’s basic policy is to strive for improvement in the return of profit to its shareholders
through distributing profits, while giving comprehensive consideration to future business development
and other various factors, keeping in mind the need to make capital investment for ensuring revenue
and the need for internal funds for research and development, etc. We strive to return profits toshareholders in a stable and ongoing manner. In principle, providing there are no special circumstances
concerning profit and loss, we aim for annual dividends of ¥50.00 per share and a consolidated payout
ratio of 30% or higher, based on consolidated earnings.
For the fiscal year ended March 31, 2022, we plan to pay year-end dividends of ¥50.00 per share.
For the fiscal year ending March 31, 2023, we forecast no dividends in the second quarter and year-end
dividends of ¥50.00 per share.

-7-

Furukawa Co., Ltd. (5715)

2. Basic Policy Regarding Selection of Accounting Standards
For the time being, the Group intends to use Japanese Generally Accepted Accounting Principles(Japanese GAAP) to prepare its consolidated financial statements in order to facilitate comparison withother financial periods and other companies.
As for the application of International Financial Accounting Standards (IFRS), the Group plans toappropriately respond after considering the circumstances in Japan and overseas.

-8-

Furukawa Co., Ltd. (5715)

3. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-9-

As of March 31, 2022

17,74828,03014,469––28,344

15,9909,839
11,5895,568(141)
88,625

17,205
10,813
20,8184,635(48)
96,23822,5409,042
53,436
537
1,271
2,988
89,817341

24,051
8,789
54,170
429
517
3,018
90,976376

34,449
4,086
–
194
1,334
(573)
39,490129,649
218,275

35,860
4,495
351
403
1,746
(720)
42,136
133,489229,727

Furukawa Co., Ltd. (5715)(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for environmental measures
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Provision for environmental measures
Other provisions
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 10 -

As of March 31, 2022

11,638
6,863
10,575219
10,511
1,054
110
7
6,859
47,83915,916
9,381
13,504
188
13,310
1,491
138
3
5,924
59,85959,107
393
9,761
1,402
2,709
86
16
234
2,360
76,071
123,910

52,166302
10,501
1,399
2,543
58
16
239
2,565
69,793
129,652

28,2082
50,025(1,862)
76,37328,2082
54,557(2,197)80,57011,303
351
2,609
(826)
1,959
15,3962,594
94,364
218,275

11,832
(292)
2,602
35
2,506
16,6832,821
100,075
229,727

Furukawa Co., Ltd. (5715)(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Freight and incidental costs
Salaries, allowances and bonuses
Provision for bonuses
Provision for retirement benefits
Provision of allowance for doubtful accounts
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Gain on sales of waste goods
Other
Total non-operating income
Non-operating expenses
Interest expenses
Administrative expenses of inactive mountain
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on bargain purchase
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Demolition expenses of a rental building
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 11 -

Fiscal year ended
March 31, 2022

159,702137,508
22,194

199,097
172,995
26,101

2,114
7,309
35
508
4
732
5,896
16,601
5,592

2,465
7,557
108
629
16
1,053
6,535
18,366
7,734

749

752

355

370

702
65
876
2,749

677
497
746
3,044

456
769
342
1,568
6,773

427
812
543
1,782
8,996

–
4,105
4,105

833
280
1,113

151
730
89
971
9,907
2,172
65
2,237
7,670
201
7,468

157
668
146
972
9,137
2,715
(264)
2,450
6,686
208
6,477

Furukawa Co., Ltd. (5715)

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 12 -

Fiscal year ended
March 31, 2022

7,670

6,686

5,941
641
(434)
4,756

527
(483)
723
547

(31)

20

10,873
18,543

1,335
8,021

18,350

7,771

193

250

Furukawa Co., Ltd. (5715)(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

28,208–Retained earnings
44,507

Treasury shares

Total shareholders’equity(1,697)71,018Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Merger of consolidated
subsidiaries
Net changes in items
other than shareholders’equity(1,960)

7,468

7,468
(165)

(165)

10

10

2

Total changes during period
Balance at end of period(1,960)

2

–

2

5,518

(165)

5,355

28,2082

50,025(1,862)

76,373

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehensive income

5,363

(322)

2,620

(339)

(2,797)

4,525

Noncontrollinginterests

Total net
assets2,423

77,966

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Merger of consolidated
subsidiaries
Net changes in items
other than shareholders’equity(1,960)
7,468
(165)
10
2
5,939

673

(10)

(487)

4,756

10,871

171

11,042

Total changes during period

5,939

673

(10)

(487)

4,756

10,871

171

16,397

Balance at end of period

11,303

351

2,609

(826)

1,959

15,3962,594

94,364- 13 -

Furukawa Co., Ltd. (5715)

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

28,208Retained earnings
2

Total shareholders’equityTreasury shares

50,025(1,862)

76,373

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equity(1,953)(1,953)

6,477

6,477
(334)

(334)

7

Total changes during period
Balance at end of period

7

–

–

4,531

(334)

4,196

28,2082

54,557(2,197)80,570

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

11,303

351

2,609

(826)

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets

1,959

15,3962,594

94,364

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equity(1,953)
6,477
(334)
7
528

(644)

(7)

862

547

1,286

227

1,513

Total changes during period

528

(644)

(7)

862

547

1,286

227

5,710

Balance at end of period

11,832

(292)

2,602

35

2,506

16,6832,821

100,075- 14 -

Furukawa Co., Ltd. (5715)(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Share of loss (profit) of entities accounted for using
equity method
Gain on bargain purchase
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Other, net
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of finance lease liabilities
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -

Fiscal year ended
March 31, 2022

9,907
3,879

9,137
4,003

(355)

(370)

–
184
(929)
456
(432)
2,550
645
(1,259)(2,560)(5,386)
6,699
1,004
(462)
(1,863)
664
6,042

(833)
433
(878)
427
(421)
345
(10,328)
5,955
3,700
(467)
10,703885(429)(2,484)94
8,768(3,403)(5,507)

–

(352)

5,648
2,245

3
(5,857)

10,330(10,465)
10,426(11,034)
(232)
(165)
(1,961)(22)(3,123)

15,957(16,062)220(4,140)(232)(334)(1,953)(22)(6,568)

(63)

377

5,101
12,646
17,748(3,279)17,748
14,468Furukawa Co., Ltd. (5715)(5) Notes to consolidated financial statements
Notes on going concern assumptions
Not applicable.
Changes in accounting policies
Application of accounting standard for revenue recognition, etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review,
and it has recognized revenue at the time the control of promised goods or services is transferred to thecustomer at the amount expected to be received upon exchange of said goods or services.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the beginning of the fiscal year underreview was added to or deducted from the opening balance of retained earnings of the fiscal year underreview, and thus the new accounting policy was applied from such opening balance; provided,
however, that the new accounting policy was not retrospectively applied to contracts for which nearly
all the revenue amounts had been recognized according to the previous treatment in periods prior to thebeginning of the fiscal year under review, by applying the method provided for in paragraph 86 of the
Accounting Standard for Revenue Recognition.
The effect of this change on the consolidated financial statements for the fiscal year under review was
immaterial.
Due to the application of the Accounting Standard for Revenue Recognition, “Notes and accounts
receivable - trade” under current assets of the consolidated balance sheet as of the end of the previous
fiscal year has been included in “Notes and accounts receivable - trade, and contract assets” undercurrent assets from the consolidated balance sheet as of the end of the fiscal year under review. In
accordance with the transitional treatment provided for in paragraph 89-2 of the Accounting Standard
for Revenue Recognition, figures for the previous fiscal year have not been restated in accordance with
the new approach to presentation.
Application of accounting standard for fair value measurement, etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement
No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year under review,
and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value
Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph
19 of the Accounting Standard for Fair Value Measurement, and paragraph 44-2 of the “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
As a result, the Company changed the valuation criteria for other securities with readily determinable
fair value from the fair value method based on average market price, etc. at one month before theaccounting period closing date to the fair value method based on market price, etc. at the accounting
period closing date.

- 16 -

Furukawa Co., Ltd. (5715)

Segment information[Segment information]
1. Overview of reportable segments
The reportable segments of the Group are components of the Group for which discrete financial
information is available and regularly reviewed by the Board of Directors to make decisions
about allocation of managerial resources and to assess their performance.
The Group is mainly engaged in the manufacturing and sales of machinery, copper smelting on
consignment and sales, and the manufacturing and sales of electronics and chemicals in Japanand overseas.
In the Group, under the operating holding company structure, each core operating company
establishes comprehensive strategies and conducts businesses activities in Japan and overseas
for the products it handles, and the Company manages and monitors each core operatingcompany.
As such, the Group is composed mainly of segments structured around products based on its
core operating companies. There are seven reporting segments: “Industrial Machinery,” “RockDrill Machinery,” “UNIC Machinery,” “Metals,” “Electronics,” “Chemicals,” and “RealEstate.”The Industrial Machinery segment manufactures, sells, and services pumps, crushers, grinding
mills, classifiers, separators, conveyor belts, environmental preservation machines, recycling
plants, steel structures, bridges and other industrial machinery, and concludes various
construction contracts. The Rock Drill Machinery segment manufactures and sells rock drills
such as hydraulic breakers, hydraulic crushers, blast hole drills (pneumatic and hydrauliccrawler drills, down-the-hole-drills, attachment drills, etc.) and tunnel and mining drill jumbos(tunnel drill jumbos, concrete sprayers, drill jumbos used in mines, etc.). The UNIC Machinery
segment manufactures and sells UNIC cranes, mini crawler cranes, ocean cranes and UNIC
carriers, etc. After purchasing crude ore from overseas, the Metals segment manufactures andsells copper, gold, silver, and sulfuric acid which are smelted on consignment by joint smelting
companies. This segment also digs and sells limestone. The Electronics segment manufacturesand sells high-purity metallic arsenic, crystal products, cores and coils, aluminum nitride andoptical components. The Chemicals segment manufactures and sells sulfuric acid, polyferricsulfate solutions, sulfuric acid bands, cuprous oxide, and cupric oxide, and sells titanium oxide.
The Real Estate segment is engaged in the transaction and leasing of real estate.
2. Method for calculating amounts of net sales, profit or loss, assets and other items by reportablesegment
The accounting method for the operating segments that are reportable is the same as describedin “Significant Matters as Basis for Preparing Consolidated Financial Statements” (in Japaneseonly).
The profit stated for the reportable segments is a figure based on operating profit. Intersegment
revenue or transfers are based on actual market price.
(Matters relating to changes in the method of calculating the increase in property, plant andequipment and intangible assets)
From the fiscal year under review, in order to more accurately grasp the invested capital ofeach reportable segment, the method of calculating the increase in property, plant andequipment and intangible assets for each reportable segment has been reviewed.
Information regarding the increase in property, plant and equipment and intangible assets foreach reportable segment in the previous fiscal year has been produced based on the amended
calculation method.

- 17 -

Furukawa Co., Ltd. (5715)

3. Information relating to the amounts of net sales, profit or loss, assets and other items byreportable segment
Fiscal year ended March 31, 2021
(Millions of yen)
Reportable segment

Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers
Total

Industrial
Machinery

Rock Drill
Machinery

UNIC
Machinery

16,682

24,14927,804

3,058

25

MetalsElectronics

Chemicals

76,094

5,741

6,367

120

219

0

55
6,422

19,741

24,17427,92476,314

5,741

Segment profit (loss)

2,113(1,324)

3,180

499

161

380

Segment assets

22,46334,05330,12530,521

6,960

16,664

356

888

1,036

180

282

241

–

–

126

3,027

216

–

1,253

437

946

346

324

156

Other items
Depreciation
Investments in entities
accounted for using equity
methodIncrease in property, plantand equipment and intangible
assetsReportable segment
Real Estate
Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Investments in entities
accounted for using equity
methodIncrease in property, plantand equipment and intangible
assetsOthers(Note 1)

Total

Total

Eliminations/co
rporate(Note 2)Carrying
amount(Note 3)

2,107

158,946755

159,702–

159,702

13

3,493

1,574

5,068

(5,068)–2,121

162,440

2,329

164,770(5,068)

159,702

736

5,746

(82)

5,663

(71)

5,592

26,811

167,600

3,056

170,657

47,618218,275

432

3,418

86

3,504

76

3,581

–

3,370

163

3,533

–

3,533

2

3,467

184

3,651

492

4,144

Notes: 1. The “Others” category refers to business segments not included in the reporting segments, and includes thetransportation business and other businesses.
2. Eliminations/corporate are as follows:(1) Segment profit (loss) adjustment of ¥(71) million includes eliminations of intersegment transactions of ¥22
million and company-wide expenses not allocated to each reporting segment of ¥(93) million. Company-wide
expenses are mainly expenses related to deserted metal mine assets and deserted coal mine assets that do notbelong to the reporting segments.
(2) Segment assets adjustment is ¥47,618 million, composed mainly of surplus working capital (cash and deposits)
and long-term investment funds (investment securities).
3. Segment profit (loss) is adjusted to operating profit in the consolidated statement of income.

- 18 -

Furukawa Co., Ltd. (5715)

Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segment

Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers
Total

Industrial
Machinery

Rock Drill
Machinery

UNIC
Machinery

17,72330,91028,305

2,867

2

MetalsElectronics

Chemicals

102,995

7,271

7,896

100

228

0

55

20,59030,91328,405103,223

7,272

7,951

Segment profit (loss)

1,396

1,117

2,165

940

666

743

Segment assets

23,862

36,081

30,25935,6497,857

16,949

466
–

901
–

1,116
7

179
–

298
–

237
–

–

–

129

3,399

231

–

1,703

247

718

325

265

105

Other items
Depreciation
Amortization of goodwill
Investments in entities
accounted for using equity
methodIncrease in property, plantand equipment and intangible
assetsReportable segment
Real Estate
Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of goodwill
Investments in entities
accounted for using equity
methodIncrease in property, plantand equipment and intangible
assetsOthers(Note 1)

Total

Total

Eliminations/co
rporate(Note 2)Carrying
amount(Note 3)

2,115

197,217

1,879

199,097–

199,097

13

3,268

1,623

4,891

(4,891)–

2,128

200,486

3,502

203,989(4,891)

199,097

743

7,772

17

7,789

(54)

7,734

26,660177,3214,434

181,756

47,971

229,727

419
–

3,619
7

92
–

3,712
7

47
–

3,759
7

–

3,760

160

3,920

–

3,920

595

3,961

45

4,006

772

4,778

Notes: 1. The “Others” category refers to business segments not included in the reporting segments, and includes the metal
powders business, transportation business and other businesses.
2. Eliminations/corporate are as follows:(1) Segment profit (loss) adjustment of ¥(54) million includes eliminations of intersegment transactions of ¥47
million and company-wide expenses not allocated to each reporting segment of ¥(102) million. Company-wide
expenses are mainly expenses related to deserted metal mine assets and deserted coal mine assets that do notbelong to the reporting segments.
(2) Segment assets adjustment is ¥47,971 million, composed mainly of surplus working capital (cash and deposits)
and long-term investment funds (investment securities).
3. Segment profit (loss) is adjusted to operating profit in the consolidated statement of income.

- 19 -

Furukawa Co., Ltd. (5715)

Per share information(Yen)
Fiscal year ended March 31,
2021
Net assets per share
Basic earnings per share

Fiscal year ended March 31,
2022

2,348.53

2,505.01

190.73165.87

Notes: 1. The amount of diluted earnings per share is not provided because there are no potential shares.
2. The bases for calculating basic earnings per share are as follows:
Fiscal year ended March 31,
2021

Fiscal year ended March 31,
2022

Basic earnings per share
Profit attributable to owners of parent (Millions of yen)

7,468

6,477

Profit (loss) not attributable to commonshareholders(Millions of yen)––

Profit attributable to owners of parent pertaining tocommon shares(Millions of yen)

7,468

6,477

Average number of outstanding common shares during
the period(Thousands of shares)

39,15739,054

Material subsequent events(Partial termination of entrusted smelting agreements)
At the Board of Directors meeting on May 12, 2022, the Company made the decision to terminate
the entrusted smelting agreements concluded between Group consolidated subsidiary Furukawa
Metals & Resources Co., Ltd. and smelting entrusted party Onahama Smelting and Refining Co.,
Ltd. as of the end of March 2023.
(1) Reason for termination of agreement
The Group operates an entrusted copper smelting business at Furukawa Metals & Resources
Co., Ltd. A recent trend in the copper smelting business environment has been for copper
concentrates treatment and refining charges from mining companies, our source of revenue, tobe disadvantageous to the smelting company due to mainly booming copper concentrates
purchasing demand from China causing instability in the supply and demand balance, andsmelting costs have continued to exceed the treatment and refining charges.
Furukawa Metals & Resources Co., Ltd. has been working to reduce exports of unprofitableelectrolytic copper and sulfuric acid as a response to the deficit structure of the entrusted
smelting business under this business environment by incrementally reducing production.
However, deeming it necessary to implement further radical action, the decision was made toterminate the entrusted smelting agreement with Onahama Smelting and Refining Co., Ltd.,
which is entrusted with approximately 34% of the annual production volume for copper(approximately 24,000 tons) of Furukawa Metals & Resources Co., Ltd.
(2) Name of counterparty of agreement
Onahama Smelting and Refining Co., Ltd.
(3) Termination date of entrusted smelting agreement:
March 31, 2023
(4) Agreement details
Entrusted agreement from Furukawa Metals & Resources Co., Ltd. to Onahama Smelting andRefining Co., Ltd. for the smelting of copper ore, crude copper and scrap copper- 20 -

Furukawa Co., Ltd. (5715)(5) Material impacts on operating activities due to termination of the agreement
It will have no effect on the financial performance of the metals segment in the current fiscal
year or the fiscal year ending March 31, 2023. As for the effect on the financial performance ofthe metals segment in the fiscal year ending March 31, 2024, under calculations based on theassumptions of a copper price of US$9,400 per ton, and an exchange rate of ¥120/US$, which
are the conditions for fiscal 2023, the Company expects net sales will be reduced byapproximately ¥40,000 million compared with ¥110,700 million forecasted for fiscal 2023 dueto the decrease in copper production. However, by reducing unprofitable exports andimproving profitability from entrusted operations, the Company expects operating profit toincrease by approximately ¥400 million compared with the fiscal year ending March 31, 2023,
forecast of ¥0 million.

- 21 -

Furukawa Co., Ltd. (5715)

Assumptions

Copper priceExchange rate

Fiscal year ended
March 31, 2022

Year-on-yearchangeFiscal year ended March 31, 2022 (actual)

$/mt

9,691

2,812

Fiscal year ending March 31, 2023 (forecast)

$/mt

9,400

(291)

Fiscal year ended March 31, 2022 (actual)

Yen/$

112.4

6.3

Fiscal year ending March 31, 2023 (forecast)

Yen/$

120.0

7.6

Supplementary Material on Financial Results
for the Fiscal Year Ended March 31, 2022
May 12, 2022
Furukawa Co., Ltd.
Net sales(Yen amounts are rounded down to millions.)

Machinery businessIndustrial Machinery segment
Rock Drill Machinery segment
UNIC Machinery segment

Fiscal year ending March 31, 2023

Fiscal year ended
March 31, 2022

Year-on-year change

76,9388,303

78,6001,661

17,72330,910

1,041
6,761

20,20029,4002,476(1,510)

Forecast

Year-on-year change

28,305500

29,000694

Materials business

118,163

29,960126,000

7,836

Metals segment

102,995

26,900110,700

7,704

7,271
7,896

1,530
1,529

7,300
8,000

28
103

Real Estate segment

2,115

7

2,000

(115)

Others segment

1,879

1,123

2,900

1,020

199,097

39,394

209,500

10,402

Fiscal year ended
March 31, 2022

Year-on-year changeElectronics segment
Chemicals segment

Total

Operating profit

Machinery business

Fiscal year ending March 31, 2023
Forecast

Year-on-year change

4,679

710

5,300

620

Industrial Machinery segment
Rock Drill Machinery segment

1,396
1,117

(717)
2,442

1,800
1,300

403
182

UNIC Machinery segment

2,165(1,014)2,200

34

Materials business

2,349

1,308

1,200

(1,149)

Metals segment

940

441

0

(940)

Electronics segment
Chemicals segment

666
743

504
363

600
600

(66)
(143)

Real Estate segment

743

6

600

(143)

Others segment

17

99

(20)

(37)

(Subtotal)

7,789

2,125

7,080

(709)

Eliminations/corporate

(54)

16

(80)

(25)

7,734

2,142

7,000

(734)

Total

- 22 -

Furukawa Co., Ltd. (5715)* Reference Information (the below values are reference values)
1. Industrial Machinery segment order balance
The Industrial Machinery segment mainly provides built-to-order manufacturing, and the order balance
as of the end of the fiscal year under review is as follows.

Order backlog

As ofMarch 31, 2022

Year-on-year change¥9.3 billion¥(0.4) billion

2. Profit or loss from metal price fluctuations in the Metals segment
Fiscal year ended
March 31, 2022

Year-on-year change

Operating profit¥0.94 billion¥0.44 billion

Of which was due to pricefluctuations¥1.51 billion¥0.00 billion[¥1.18 billion][¥0.27 billion][¥0.23 billion][¥(0.18) billion]

CopperGold- 23 -