Fukuda Denshi : Summary Report on Financial Results for the First Quarter of the Year Ending March 31st, 2023

Summary Report on Financial Results for the First Quarter of the Year Ending March 31st, 2023

(Japan GAAP)

	July 29th, 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 Department
Tel:	[phone] (main)

Scheduled date for filing the quarterly report:	August 5th, 2022
Scheduled date for commencement of dividend payment:	-
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 First quarter of the year ending March 31st, 2023 (April 1st, 2022 through June 30th, 2022)

1. Consolidated operating results (cumulative)

				(% represents increases or decreases from the previous year)
	Net sales		Operating Profit	Ordinary	Profit attributable to
		Profit		owners of parent
	million		%	million	%	million		%	million	%
	yen		yen	yen		yen
First quarter of the year
27,690		0.4	4,033	(3.9)	4,414		2.2	2,851	2.9
ending March 31st, 2023
First quarter of the year	27,587		-	4,195	79.5	4,317		77.6	2,771	58.5
ended March 31st, 2022
(Note) Comprehensive income
First quarter of the year ending March 31st, 2023: 3,060 million yen / 18.2 %
First quarter of the year ended March 31st, 2022: 2,589 million yen / 16.2 %

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 first quarter of the fiscal year ended March 31st, 2022 is not indicated.

	Earnings	Diluted earnings
	per share	per share
First quarter of the year	yen	yen
188.54	―
ending March 31st, 2023
First quarter of the year	183.31	―
ended March 31st, 2022
(2) Consolidated financial situation
	Total assets	Net assets			Shareholders'	Net assets
		equity ratio	per share
First quarter of the year	million yen	million yen		%	yen
191,721	149,798			78.1	9,904.85
ending March 31st, 2023
Year ended March 31st,	195,495	149,857			76.7	9,909.40
2022
(Reference) Shareholders' equity:
First quarter of the year ending March 31st, 2023: 149,798 million yen
Fiscal year ended March 31st, 2022: 149,857 million yen

- 1 -

2. Dividends

				Annual Dividends per share
		End of the		End of the		End of the		End of the term		Annual
		first quarter		second quarter		third quarter
Year ended		yen		yen		yen		yen		yen
March 31st,		―	100.00		―	205.00	305.00
2022
Year ending
March 31st,		―
2023
Year ending
March 31st,			100.00		―	115.00	215.00
2023 (forecast)

(Note) Revisions to recent dividend forecast: None

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 (forecast); ordinary dividend 80.00 yen, extra dividend 20.00 yen

The detail of year-end dividend of Year ending March 31st, 2023 (forecast); ordinary dividend 90.00 yen, extra dividend 25.00 yen

3. Forecast of consolidated financial results for fiscal year ending March 31st, 2023 (April 1st, 2022 through March 31st, 2023)

				(% represents increase or	decrease from the previous year)
	Net sales	Operating Profit	Ordinary Profit	Profit attributable to	Earnings
	owners of parent	per share
	million	%	million	%	million	%	million	%	yen
	yen	yen	yen	yen
Full-year	120,000	(9.2)	16,000	(29.5)	16,000	(31.7)	11,000	(32.2)	727.34

(Note) Revisions to recent business forecast: None

Since operating results of 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.

*Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries involving changes in the 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

1. Changes in accounting policies associated with revision of accounting standards: Yes
2. Changes other than (i) above: None
3. Changes in accounting projections: None
4. Restatement: None

- 2 -

1. Number of outstanding shares (common shares)

1. Number of outstanding shares at the end of the period (including treasury shares)

First quarter of the year ending March 31st, 2023: 19,588,000 shares

Year ended March 31st, 2022: 19,588,000 shares

1. Number of shares of treasury shares at the end of the period:
   First quarter of the year ending March 31st, 2023: 4,464,276 shares
   Year ended March 31st, 2022: 4,465,240 shares
2. Average number of shares during the period (accumulated consolidated quarter)

First quarter of the year ending March 31st, 2023: 15,123,276 shares

First quarter of the year ended March 31st, 2022: 15,119,815 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	P.08
statements
Consolidated quarterly income statements
	First quarter of the consolidated term ----------------------------------------------------------------	P.08
Consolidated quarterly comprehensive income statements
	First 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

- 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 first quarter of this fiscal year (April 1st, 2022 through March 31st, 2023), confirmed cases and death of COVID-19 decreased. But on the other hand, the economic prospects remain uncertain for the time being due to the re-spread of COVID-19 and the higher prices of resources affected by international situations.

In the medical industry, it is now required to strengthen the efforts to COVID-19 pandemic and to construct 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 27,690 million yen (up 0.4% year-on-year basis), "Operating profit" of 4,033 million yen (down 3.9% year-on-year basis), "Ordinary profit" of 4,414 million yen (up 2.2% year-on-year basis), and "Profit attributable to owners of parent" of 2,851 million yen (up 2.9% year-on-year basis) in the first quarter.

1. Physiological diagnostic equipment segment
   The sales of vascular screening systems increased.
   As a result, consolidated "Net sales" were 5,075 million yen (up 1.2% year-on-year basis).
2. Patient monitoring equipment segment
   Consolidated "Net sales" of patient monitoring equipment were 2,131 million yen (down 16.5% year- on-year basis).
3. 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 12,653 million yen (down 0.1% year-on-year basis).
4. 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 maintenance and repair services.
   Consolidated "Net sales" for this segment were 7,829 million yen (up 6.4% year-on-year basis).

(2) Explanation about consolidated financial situation

"Total assets" decreased 3,774 million yen from the end of previous fiscal year to reach 191,721 million yen. The main factors are the decrease of 8,397 million yen in "Notes and accounts receivable - trade" despite the increase of 1,685 million yen in "Merchandise and finished goods".

"Total liabilities" decreased 3,714 million yen from the end of the previous fiscal year to reach 41,923 million yen. The main factor is the decrease of 2,125 million yen in "Notes and accounts payable - trade" and 2,642 million yen in "Income taxes payable".

"Net assets" decreased 59 million yen from the end of the previous fiscal year to reach 149,798 million yen. The main factor is the decrease of 272 million yen in "Retained earnings" despite the increase of 264 million yen in "Foreign currency translation adjustment".

(3) Explanation about consolidated earnings forecast

Due to the steady sales achievement until the first quarter, there is no change at this moment in the forecast of the financial results for the full fiscal year which we announced on May 13th, 2022.

The forecasted financial results described in this material are based on information available at the time of announcement. Actual results may differ from the results projected and presented hereby for a variety of reasons.

- 5 -