Fukuda Denshi : Summary Report on Financial Results for the Third Quarter of the Year Ending March 31st, 2022

Summary Report on Financial Results for the Third Quarter of the Year Ending March 31st, 2022

(Japan GAAP)

	January 31st, 2022
	Stock Listing: TSE-JASDAQ
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:	February 10th, 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 Third quarter of the year ending March 31st, 2022 (April 1st, 2021 through December 31st, 2021)

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
Third quarter of the year
93,068		-	15,863	35.9	16,320		36.4	11,579	28.6
ending March 31st, 2022
Third quarter of the year	96,752		1.5	11,672	27.4	11,963		27.8	9,000	31.9
ended March 31st, 2021
(Note) Comprehensive income
Third quarter of the year ending March 2022: 11,773 million yen / 22.6 %
Third quarter of the year ended March 2021: 9,605 million yen / 28.5 %

The "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31st, 2020), etc. has been applied since the beginning of the first quarter of the current consolidated fiscal year. The percentage of year-on-year change for "Net sales" is not indicated as the figures for the third quarter are calculated after the application of the said Accounting Standard. (The figures for "Operating Profit", "Ordinary Profit", and "Profit attributable to owners of parent" have not been affected by the said Accounting Standard.).

The consolidated "Net sales" reaches 99,401 million yen (up 2.7% year-on-year basis) if not applied the said Accounting Standards.

		Earnings		Diluted earnings
		per share		per share
Third quarter of the year		yen		yen
	765.77		―
ending March 31st, 2022
Third quarter of the year		595.31		―
ended March 31st, 2021
(2) Consolidated financial situation
		Total assets	Net assets	Shareholders'	Net assets
		equity ratio	per share
Third quarter of the year	million yen	million yen	％	yen
183,202	145,197	79.3	9,601.44
ending March 31st, 2022
Year ended March 31st, 2021	191,762	137,981	72.0	9,125.88

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(Reference) Shareholders' equity:
Third quarter of the year ending March 31st, 2022: 145,197 million yen
Year ended March 31st, 2021		137,981 million yen
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 March		yen		yen		yen		yen		yen
	―	75.00		―	200.00	275.00
31st, 2021
Year ending March		―	100.00		―
31st, 2022
Year ending March							115.00		215.00
31st, 2022 (forecast)
(Note) Revisions to recent dividend forecast: None

The detail of second quarter dividend of Year ended March 31st, 2021; ordinary dividend 55.00 yen, extra dividend 20.00 yen

The detail of year-end dividend of Year ended March 31st, 2021; ordinary dividend 90.00 yen, extra dividend 110.00 yen

The detail of second quarter dividend of Year ending March 31st, 2022; ordinary dividend 80.00 yen, extra dividend 20.00 yen

The detail of year-end dividend of Year ending March 31st, 2022 (forecast); ordinary dividend 80.00 yen, extra dividend 35.00 yen

3. Forecast of consolidated financial results for fiscal year ending March 31st, 2022

				(% represents increase or	decrease from the previous year)
	Net sales		Operating Profit	Ordinary Profit	Profit attributable	Earnings
		to owners of parent	per share
	million	%	million	%	million	%	million	%	yen
	yen	yen	yen	yen
Full-year	125,000	-	20,000	1.0	20,500	1.2	15,000	1.9	991.96

(Note) Revisions to recent business forecast: Yes

The "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31st, 2020), etc. has been applied since the beginning of the first quarter of the current consolidated fiscal year. The percentage of year-on-year change for "Net sales" is not indicated but the figures for "Operating Profit", "Ordinary Profit", and "Profit attributable to owners of parent" have not been affected by the said Accounting Standard.

*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

Note: For details, please refer to Changes in Accounting Policy in (3) Notes to consolidated quarterly financial statement under the "2. Consolidated quarterly financial statements and Notes" section on page 9.

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1. Number of outstanding shares (common shares)

1. Number of outstanding shares at the end of the period (including treasury shares)
   Third quarter of the year ending March 31st, 2022: 19,588,000 shares
   Year ended March 31st, 2021: 19,588,000 shares
2. Number of shares of treasury shares at the end of the period:
   Third quarter of the year ending March 31st, 2022: 4,465,520 shares
   Year ended March 31st, 2021: 4,468,250 shares
3. Average number of shares during the period (accumulated consolidated quarter)

Third quarter of the year ending March 31st, 2022: 15,121,278 shares

Third quarter of the year ended March 31st, 2021: 15,119,385 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 Fukuda Denshi (hereinafter, "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.

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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
	Third quarter of the consolidated term -------------------------------------------------------------	P.08
Consolidated quarterly comprehensive income statements
	Third 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

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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 third quarter of this fiscal year (April 1st, 2021 through March 31st, 2022) has been in severe conditions due to the continued impact of the COVID-19 pandemic, and the economic prospects remain uncertain for the time being.

In the medical industry, it is now required to strengthen the efforts to the 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 93,068 million yen, "Operating profit" of 15,863 million yen (up 35.9% year-on-year basis), "Ordinary profit" of 16,320 million yen (up 36.4% year-on-year basis), and "Profit attributable to owners of parent" of 11,579 million yen (up 28.6% year-on-year basis) in the third quarter.

The "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31st, 2020), etc. has been applied since the beginning of the first quarter of the current consolidated fiscal year. The percentage of year-on-year change for "Net sales" is not indicated as the figures for the third quarter are calculated after the application of the said Accounting Standard. (The figures for "Operating Profit", "Ordinary Profit", and "Profit attributable to owners of parent" have not been affected by the said Accounting Standard.)

1. Physiological diagnostic equipment segment
   While the sales of electrocardiographs increased, the number of large orders decreased. As a result, consolidated "Net sales" were 18,849 million yen.
2. Patient monitoring equipment segment
   Consolidated "Net sales" of patient monitoring equipment were 9,250 million yen.
3. Medical treatment equipment segment
   While the sales of ventilators decreased, the business of renting medical equipment for home treatment increased. As a result, consolidated "Net sales" were 40,421 million yen.
4. Consumables and other products segment
   In this segment, we mainly handle 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 24,546 million yen.

(2) Explanation about consolidated financial situation

"Total assets" decreased 8,560 million yen from the end of previous fiscal year to reach 183,202 million yen. The main factors are the decrease of 12,846 million yen in "Notes and accounts receivable - trade" despite the increase of 4,974 million yen in "Property, plant and equipment".

"Total liabilities" decreased 15,777 million yen from the end of the previous fiscal year to reach 38,004 million yen. The main factor is the decrease of 6,159 million yen in "Notes and accounts payable - trade" and 4,312 million yen in "Income taxes payable".

"Net assets" increased 7,216 million yen from the end of the previous fiscal year to reach 145,197 million yen. The main factor is the increase of 7,007 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 the

announcement posted on January 31st, 2022 "Notice of Revision of Forecast of the Financial Results for the Fiscal Year Ending March 2022".

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