Fukuda : Summary of Consolidated Financial Results for the Six Months Ended June 30, 2022 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended June 30, 2022 (Based on Japanese GAAP)

August 10, 2022

Company name:

FUKUDA CORPORATION

Stock exchange listing:

Tokyo

Stock code:

1899

URL

https://www.fkd.co.jp/

Representative:

Representative Director and President

Masanori Araaki

Inquiries:

Director and General Manager of

Katsuhiko Iwasaki

TEL [phone]

Administration Department

Scheduled date to file Quarterly Securities Report:

August 10, 2022

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Six months ended June 30, 2022

69,517

(19.4)

2,584

(53.4)

2,725

(52.0)

1,901

(49.4)

Six months ended June 30, 2021

86,293

2.5

5,545

32.7

5,677

33.2

3,758

34.6

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended June 30, 2022

223.11

-

Six months ended June 30, 2021

441.13

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2022

129,383

77,105

59.1

As of December 31, 2021

130,755

76,412

57.9

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended December 31, 2021	-	0.00	-	130.00	130.00
Year ending December 31, 2022	-	0.00
Year ending December 31, 2022 (Forecast)			-	120.00	120.00

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	155,000	(13.8)	6,200	(30.3)	6,400	(30.0)	4,100	(30.1)	480.91

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2022	8,988,111	shares	As of December 31, 2021	8,988,111	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	462,654	shares	As of December 31, 2021	464,902	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	8,524,288	shares	Six months ended June 30, 2021	8,520,360	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	23,288	47,197
Notes receivable, accounts receivable from completed	63,660	39,647
construction contracts and other
Real estate for sale	816	665
Costs on construction contracts in progress	2,068	631
Costs on real estate business	2,335	2,412
Other inventories	358	366
Accounts receivable - other	1,885	2,203
Other	1,059	714
Allowance for doubtful accounts	(12)	(9)
Total current assets	95,462	93,829
Non-current assets
Property, plant and equipment
Buildings and structures	22,745	23,002
Machinery, vehicles, tools, furniture and fixtures	13,732	13,741
Land	15,539	15,775
Other	1,057	944
Accumulated depreciation	(26,656)	(26,999)
Total property, plant and equipment	26,419	26,464
Intangible assets
Other	523	495
Total intangible assets	523	495
Investments and other assets
Investment securities	5,352	5,173
Long-term loans receivable	52	198
Retirement benefit asset	1,898	1,988
Deferred tax assets	407	602
Other	916	906
Allowance for doubtful accounts	(276)	(276)
Total investments and other assets	8,349	8,594
Total non-current assets	35,292	35,553
Total assets	130,755	129,383

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			(Millions of yen)
		As of December 31, 2021	As of June 30, 2022
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	34,862	31,784
and other
Short-term borrowings	320	380
Income taxes payable	1,508	887
Advances received on uncompleted construction contracts	3,339	5,071
And Others
Provisions	439	1,036
Other	6,553	5,578
Total current liabilities	47,024	44,739
Non-current liabilities
Long-term borrowings	767	934
Deferred tax liabilities	79	79
Deferred tax liabilities for land revaluation	838	838
Provisions	542	546
Retirement benefit liability	2,632	2,625
Other	2,457	2,512
Total non-current liabilities	7,318	7,538
Total liabilities	54,342	52,277
Net assets
Shareholders' equity
Share capital	5,158	5,158
Capital surplus	6,169	6,169
Retained earnings	66,075	66,490
Treasury shares	(2,271)	(2,258)
Total shareholders' equity	75,131	75,559
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	677	694
Revaluation reserve for land	(112)	122
Remeasurements of defined benefit plans	72	43
Total accumulated other comprehensive income	636	860
Non-controlling interests	643	685
Total net assets	76,412	77,105
Total liabilities and net assets	130,755	129,383

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		June 30, 2021	June 30, 2022
Net sales
Net sales of completed construction contracts	77,945	61,243
Sales in real estate business	1,961	1,461
Sales in other businesses	6,386	6,812
Total net sales	86,293	69,517
Cost of sales
Cost of sales of completed construction contracts	69,367	55,512
Cost of sales in real estate business	1,374	950
Cost of sales in other businesses	5,431	5,795
Total cost of sales	76,173	62,257
Gross profit
Gross profit on completed construction contracts	8,578	5,730
Gross profit - real estate business	586	511
Gross profit - other business	954	1,017
Total gross profit	10,119	7,259
Selling, general and administrative expenses	4,574	4,675
Operating profit	5,545	2,584
Non-operating income
Interest income	6	7
Dividend income	115	117
Share of profit of entities accounted for using equity method	2	-
Other	112	67
Total non-operating income	236	193
Non-operating expenses
Interest expenses	28	20
Commission for syndicated loans	24	15
Prepayment guarantee fee	17	10
Provision for loss on litigation	25	-
Share of loss of entities accounted for using equity method	-	3
Other	8	2
Total non-operating expenses	104	52
Ordinary profit	5,677	2,725
Extraordinary income
Gain on sale of non-current assets	11	3
Gain on sale of investment securities	34	-
Reversal of provision for loss on liquidation of subsidiaries	-	36
and associates
Other	0	-
Total extraordinary income	46	40

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