Summary Report on Financial Results for the Second Quarter of the Year Ending March 31st, 2023
(Japan GAAP)
October 31st, 2022
Stock Listing: TSE-Standard Market
Company name:
Fukuda Denshi Co., Ltd.
Code No.:
6960 (https://www.fukuda.co.jp)
Representative:
Daijiro Shirai, President & COO
Inquiries:
Haruhiko Honbu, Senior Manager of Accounting & Finance DepartmentTel:+81-3-5684-1558 (main)
Scheduled date for filing the quarterly report:
November 11th, 2022
Scheduled date for commencement of dividend payment:
December 5th, 2022
Supplementary material development:
None
Financial results meeting:None(Amounts less than one million yen are rounded down)(The number with parenthesis shows negative figure)1. Consolidated financial results for the Second quarter of the year ending March 31st, 2023 (April 1st, 2022
through September 30th, 2022)(1) Consolidated operating results (cumulative)(% represents increases or decreases from the previous year)
Ordinary
Profit attributable to
Net sales
Operating Profit
Profitowners of parent
millionmillionmillionmillion
%
%
%
%
yen
yen
yen
yen
Second quarter of the year
62,628
1.5
11,070
6.6
11,662
9.5
8,119
8.3
ending March 31st, 2023
Second quarter of the year
61,692
10,38048.7 10,650
48.8
7,493
37.1
ended March 31st, 2022
(Note) Comprehensive income
Second quarter of the year ending March 31st, 2023: 8,401 million yen / 5.5 %Second quarter of the year ended March 31st, 2022: 7,965 million yen / 35.6 %The “Accounting Standards for Revenue Recognition” (ASBJ Statement No. 29, March 31st, 2020), etc. has
been applied since the previous fiscal year. For this reason, the percentage of year-on-year change of “Net sales”
for the second quarter of the fiscal year ended March 31st, 2022 is not indicated.

Second quarter of the year
ending March 31st, 2023
Second quarter of the year
ended March 31st, 2022

Earnings
per shareyen

Diluted earnings
per shareyen

536.85―495.61―(2) Consolidated financial situation
million yen

million yen

Shareholders'equity ratio%

196,864

155,13978.8

10,257.92

195,495

149,857

76.7

9,909.40

Total assets
Second quarter of the year
ending March 31st, 2023
Year ended March 31st,2022

Net assets(Reference) Shareholders' equity:
Second quarter of the year ending March 31st, 2023: 155,139 million yen
Fiscal year ended March 31st, 2022: 149,857 million yen- 1 -Net assets
per shareyen2. Dividends
End of thefirst quarteryen

Annual Dividends per share
End of the
End of the
End of the term
second quarter
third quarter
yen
yen
yen

Annualyen
Year ended
March 31st,―
100.00―205.00305.002022
Year ending
March 31st,―
140.002023
Year ending
March 31st,
―
70.00
―
2023 (forecast)(Note) Revisions to recent dividend forecast: Yes
The detail of second quarter dividend of Year ended March 31st, 2022; ordinary dividend 80.00 yen, extra
dividend 20.00 yen
The detail of year-end dividend of Year ended March 31st, 2022; ordinary dividend 80.00 yen, extra dividend
125.00 yen
The detail of second quarter dividend of Year ending March 31st, 2023; ordinary dividend 110.00 yen, extra
dividend 30.00 yen
The detail of year-end dividend of Year ending March 31st, 2023 (forecast); ordinary dividend 55.00 yen, extra
dividend 15.00 yen
At the Board of Directors meeting held on October 31st, 2022, the Company resolved to conduct a stock split
at a ratio of two shares for one common share, effective from December 1st, 2022.
Regarding the year-end dividend per share for the fiscal year ending March 31st, 2023 (forecast), the amountconsidering the stock split is stated, and the annual dividend is stated as "-". If the stock split is not taken into
account, the year-end dividend per share for the fiscal year ending March 31st, 2023 (forecast) is 140 yen, andthe annual dividend is 280 yen.
3. Forecast of consolidated financial results for fiscal year ending March 31st, 2023 (April 1st, 2022 throughMarch 31st, 2023)(% represents increase or decrease from the previous year)

Net sales

Full-year

Operating Profit

Ordinary Profit

millionyen%

millionyen%

millionyen%

125,000(5.4)

20,000(11.9)

20,300(13.3)

Profit attributable toowners of parent
million%yen
14,000Earnings
per share(13.7)

yen
462.85(Note) Revisions to recent business forecast: Yes
Since operating results of the Fukuda Denshi (hereinafter, “the Group”) tends to take a peak at the fourth
quarter and it is difficult to give a forecast every six months based on rational calculation, the consolidated
forecast at the second quarter is not disclosed.
Earnings per share in the forecast of consolidated financial results for fiscal year ending March 31st, 2023 is
the amount that takes into account the stock split noted in "2. Dividends". If the stock split is not taken into
account, earnings per share is 925.70 yen.
*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries involving changes inthe scope of consolidation): None
(2) Application of special accounting methods for the preparation of the consolidated quarterly financial
statements: None
(3) Changes in accounting policies, accounting projections and restatement(i) Changes in accounting policies associated with revision of accounting standards: Yes- 2 -(ii) Changes other than (i) above: None(iii) Changes in accounting projections: None(iv) Restatement: None
(4) Number of outstanding shares (common shares)(i) Number of outstanding shares at the end of the period (including treasury shares)
Second quarter of the year ending March 31st, 2023: 19,588,000 sharesYear ended March 31st, 2022: 19,588,000 shares(ii) Number of shares of treasury shares at the end of the period:
Second quarter of the year ending March 31st, 2023: 4,464,136 sharesYear ended March 31st, 2022: 4,465,240 shares(iii) Average number of shares during the period (accumulated consolidated quarter)
Second quarter of the year ending March 31st, 2023: 15,123,488 shares
Second quarter of the year ended March 31st, 2022: 15,120,781 shares* This summary is not subject to audit procedure.
* Explanation about the appropriate use of the forecasts of financial results, and other noteworthy matters
The projections and other statements with respect to the future included in this material are based on currently
available information and certain assumptions that are judged reasonable by the Group. Please be advised that
the Group does not guarantee in any way the achievement of the projections and other goals in this material
and that cases may occur where the actual results and other situations differ materially from the projections
due to various factors. With respect to the preconditions for the forecast of financial results, please refer to “(3)Explanation about consolidated earnings forecast” under the “1. Qualitative information about consolidated
earnings results for the quarter under review" section on page 5.

- 3 -Contents of the Attached Materials
1. Qualitative information about consolidated earnings results for the quarter under review --------

P.05(1) Explanation about consolidated operating results -----------------------------------------------------

P.05(2) Explanation about consolidated financial situation ---------------------------------------------------

P.05(3) Explanation about consolidated earnings forecast ----------------------------------------------------

P.05

2. Consolidated quarterly financial statements and Notes -------------------------------------------------

P.06(1) Consolidated quarterly balance sheets ------------------------------------------------------------------

P.06(2) Consolidated quarterly income statements and consolidated quarterly comprehensive income
statements

P.08

Consolidated quarterly income statements
Second quarter of the consolidated term -------------------------------------------------------------

P.08

Consolidated quarterly comprehensive income statements
Second quarter of the consolidated term -------------------------------------------------------------

P.09(3) Notes to consolidated quarterly financial statement --------------------------------------------------

P.09(Notes regarding the premise for going concern) --------------------------------------------------------

P.09(Notes when there is a significant fluctuation in the amount of shareholders’ equity) -------------

P.09(Changes in Accounting Policy) ---------------------------------------------------------------------------

P.09(Significant subsequent events)

P.09---------------------------------------------------------------------------- 4 -1. Qualitative information about consolidated earnings results for the quarter under review(1) Explanation about consolidated operating results
The Japanese economy during the consolidated cumulative second quarter of this fiscal year (April 1st,
2022 through March 31st, 2023), has been in severe conditions due to the re-spread of COVID-19, thehigher prices of resources affected by international situations, and the effects of foreign exchange rates.
Also, the economic prospects remain uncertain for the time being.
In the medical industry, it is now required to strengthen the efforts to COVID-19 pandemic and toconstruct an efficient framework to provide healthcare services reflecting the regional medical plan
through the differentiation and strengthening of medical institutions’ functions encouraging the regional
healthcare network.
In such an environment, the Group posted consolidated “Net sales” of 62,628 million yen (up 1.5%
year-on-year basis), “Operating profit” of 11,070 million yen (up 6.6% year-on-year basis), “Ordinary
profit” of 11,662 million yen (up 9.5% year-on-year basis), and “Profit attributable to owners of parent”
of 8,119 million yen (up 8.3% year-on-year basis) in the second quarter.
A. Physiological diagnostic equipment segment
The sales of electrocardiographs, vascular screening systems and blood cell counters increased.
As a result, consolidated “Net sales” were 13,417 million yen (up 9.4% year-on-year basis).
B. Patient monitoring equipment segment
Consolidated “Net sales” of patient monitoring equipment were 5,202 million yen (down 16.3% yearon-year basis).
C.

Medical treatment equipment segment
While the business of renting medical equipment for home treatment increased, the sales of AEDs
and ventilators decreased.
As a result, consolidated “Net sales” were 26,924 million yen (down 0.4% year-on-year basis).

D.

Consumables and other products segment
Consumables and other products segment includes the sales of recording paper, disposable
electrodes, and consumables used for devices handled in the above segments, as well as maintenanceand repair services.
Consolidated “Net sales” for this segment were 17,084 million yen (up 5.6% year-on-year basis).

(2) Explanation about consolidated financial situation“Total assets” increased 1,369 million yen from the end of previous fiscal year to reach 196,864 million
yen. The main factors are the increase of 2,390 million yen in “Cash and deposits” and 1,260 million yen in“Merchandise and finished goods” despite the decrease of 4,212 million yen in “Notes and accounts
receivable - trade”.
“Total liabilities” decreased 3,912 million yen from the end of the previous fiscal year to reach 41,725
million yen. The main factor is the decrease of 1,046 million yen in “Notes and accounts payable - trade”
and 925 million yen in “Income taxes payable”.
“Net assets” increased 5,281 million yen from the end of the previous fiscal year to reach 155,139 million
yen. The main factor is the increase of 4,994 million yen in “Retained earnings”.
(3) Explanation about consolidated earnings forecast
The Group has revised the forecasts of the financial results. For further information, please refer to theannouncement posted on October 31st, 2022 “Notice of the Revision Forecast of the Financial Results,
Distribution of Surplus and Year-end Dividend Forecast, Stock Split and Partial amendment to the Articles
of Incorporation”.

- 5 -2. Consolidated quarterly financial statements and Notes(1) Consolidated quarterly balance sheets
Previous fiscal year
(as of March 31st, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetaryclaims - operating
Securities
Merchandise 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
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations operating
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for product warranties
Other provisions
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
Other provisions
Other
Total non-current liabilities
Total liabilities- 6 -(Million yen)
End of the Second quarter
under review(as of September 30th, 2022)

64,05736,54366,44732,330

2,908

2,648

497
9,391
205
3,940
2,217
(23)
119,736

10,651
323
5,091
1,579
(5)
119,066

45,264
1,538

46,184
1,519

9,671
19,293(8)
28,95675,759195,495

10,693
19,411(11)
30,09377,797
196,864

15,501

14,455

6,648

6,090

1,750
3,451
3,439
117
579
7,339
38,829

1,800
2,526
2,909
133
212
6,879
35,007

3,137
752
2,918
6,809
45,638

3,179
658
2,878
6,717
41,725

Previous fiscal year
(as of March 31st, 2022)
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on
available-for-sale securities
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Total net assets
Total liabilities and net assets- 7 -(Million yen)
End of the Second quarter
under review(as of September 30th, 2022)

4,621
21,841
142,135(20,362)
148,236

4,621
21,841
147,130(20,357)
153,235

1,836

1,694

(11)

391

(204)

(183)

1,621

1,903

149,857
195,495

155,139
196,864(2) Consolidated quarterly income statements and consolidated quarterly comprehensive income statements
Consolidated quarterly income statements(Second quarter of the consolidated term)

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Gain on investments in investment
partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in investment
partnership
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Surrender value of insurance policies
Gain on extinguishment of tie-insharesTotal extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment losses
Loss on valuation of investment
securities
Office relocation expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

Second quarter of theprevious consolidated term(from April 1st, 2021
to September 30th, 2021)
61,69230,53831,153(Million yen)
Second quarter of theconsolidated term(from April 1st, 2022
to September 30th, 2022)
62,62829,70832,91920,773

21,84910,38011,070

32
80
20

30
99
386

78

17

88
300

80
614

18

17

4

-

6
29
10,6504
22
11,662

1
60
469

7
163

-

67

531

239

13

0
58

153

48

33
200
10,980
3,252
234
3,486
7,493
7,493

0
108
11,792
3,576
97
3,673
8,119
8,119

- 8 -

Consolidated quarterly comprehensive income statements(Second quarter of the consolidated term)

ProfitOther comprehensive income
Valuation difference on
available-for-sale securities
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent

Second quarter of theprevious consolidated term(from April 1st, 2021
to September 30th, 2021)
7,493(Million yen)
Second quarter of theconsolidated term(from April 1st, 2022
to September 30th, 2022)
8,119

399

(141)

53

403

17

21

471
7,965

282
8,401

7,965

8,401

(3) Notes to consolidated quarterly financial statement(Notes regarding the premise for going concern)
Not applicable.
(Notes when there is a significant fluctuation in the amount of shareholders’ equity)
Not applicable.
(Changes in Accounting Policy)
Application of Implementation Guidance on Accounting Standard for Fair Value Measurement:
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.
31, June 17th, 2021) has been applied since the beginning of the first quarter of the current consolidated fiscal
year. In accordance with the transitional treatment prescribed in Paragraph 27–2 of the “Implementation
Guidance on Accounting Standard for Fair Value Measurement”, the Group has decided to apply the new
accounting policies set forth by the Implementation Guidance on Accounting Standard for Fair Value
Measurement in the future.
The change had no impact on the Group’s consolidated financial statements.
(Significant subsequent events)
Stock Split and Partial amendment to the Articles of Incorporation:
At the Board of Directors meeting held on October 31st, 2022, the Company resolved to stock split andpartial amendment to the articles of incorporation accompanying the stock split.
(1) Purpose of the Stock Split
The objective of the stock split is to lower the minimum investment price per unit of the Company, thereby
facilitating an environment where it is easier to invest in the Company's shares and expanding the Company's
investor base.
(2) Outline of the Stock Split(i) Stock Split Method
The record date of the stock split will be Wednesday, November 30th, 2022. Each share of the Company’scommon stock held by shareholders as of the record date will be subdivided into two shares.
(ii) Increase in Number of Shares as a Result of the Stock Split
Number of shares outstanding prior to the stock split
Increase in total number of outstanding shares as a result of this stock split
Number of shares outstanding after the stock split
Number of shares authorized to be issued after the stock split- 9 -19,588,000 shares
19,588,000 shares
39,176,000 shares
156,000,000 shares

(iii) Stock Split Schedule
Date of public notice of the record date
Record date
Effective date

Tuesday, November 15th, 2022
Wednesday, November 30th, 2022
Thursday, December 1st, 2022(iv) Impact on per share information
Assuming that this stock split took place at the beginning of the previous consolidated fiscal year, the pershare information is as follows:
Second quarter of theSecond quarter of theprevious consolidated term
consolidated term(from April 1st, 2021
(from April 1st, 2022
to September 30th, 2021)
to September 30th, 2022)
Earnings per share

247.80 yen

268.43 yen--

Diluted earnings per share(3) Partial amendment to the Articles of Incorporation(i) Reasons for the amendment
In line with the stock split, pursuant to the Article 184, paragraph 2 of the Companies Act of Japan, theCompany will make the partial amendment to articles of incorporation of the Company as of Thursday,
December 1st, 2022.
(ii) Details of the amendment
Details are as follows:
Before the amendment
Article 6. (Aggregate Number of Issuable Shares)
The total number of shares that the Company may
issue shall be 78,000,000 shares.

(Updated contents are underlined.)
After the amendment
Article 6. (Aggregate Number of Issuable Shares)
The total number of shares that the Company may
issue shall be 156,000,000 shares.

(iii) Schedule of the amendment to the Articles of Incorporation
Effective date : Thursday, December 1st, 2022
(4) Other(i) Change in the amount of capital
There will be no change in the amount of capital at the time of this stock split.

* This English translation is for reference purposes only. The original Japanese version will prevail as the official
authoritative version.

- 10 -