Fukuda : Summary of Consolidated Financial Results for the Year Ended December 31, 2021 (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 Year Ended December 31, 2021

(Based on Japanese GAAP)

																		February 15, 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 of ordinary general meeting of shareholders:	March 29, 2022
Scheduled date to file Securities Report:		March 29, 2022
Scheduled date to commence dividend payments:		March 30, 2022
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						No
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)
(1) Consolidated operating results												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		%
Year ended December 31, 2021		179,846		(3.2)	8,891		(0.2)		9,147	1.2	5,864		(1.9)
Year ended December 31, 2020		185,764		2.0	8,905		10.6		9,038	8.2	5,979		9.2
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
								parent/equity
				Yen		Yen			%					%				%
Year ended December 31, 2021		688.16			-			8.0					6.8				4.9
Year ended December 31, 2020		689.77			-			8.6					6.5				4.8
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%					Yen
As of December 31, 2021		130,755					76,412					57.9			8,889.69
As of December 31, 2020		137,562					71,335					51.4			8,301.01
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen		Millions of yen		Millions of yen
Year ended December 31, 2021		7,802					(1,505)					(6,128)					23,285
Year ended December 31, 2020		6,909					(2,193)					(4,680)					23,116
2. Cash dividends
						Annual dividends per share					Total cash	Dividend payout	Ratio of dividends
															to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen		Yen	Yen	Millions of yen	%			%
Year ended December 31, 2020		-		0.00	-		110.00	110.00		946	15.9			1.4
Year ended December 31, 2021		-		0.00	-		130.00	130.00		1,120	18.9			1.5
Year ending December 31, 2022		-			0.00	-				120.00	120.00			24.9
(Forecast)

1

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)	481.03
4. Notes
(1) Changes in significant subsidiaries during the year ended December 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) 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:	No
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

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

	As of December 31, 2021	8,988,111	shares	As of December 31, 2020	8,988,111	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	464,902	shares	As of December 31, 2020	468,649	shares
Average number of shares during the period
	Year ended December 31, 2021	8,521,426	shares	Year ended December 31, 2020	8,668,226	shares

2

Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2020	As of December 31, 2021
Assets
Current assets
Cash and deposits	23,119	23,288
Notes receivable, accounts receivable from completed	69,916	63,660
construction contracts and other
Securities	0	-
Real estate for sale	1,215	816
Costs on construction contracts in progress	2,490	2,068
Costs on real estate business	1,476	2,335
Other inventories	280	358
Accounts receivable - other	2,746	1,885
Other	1,088	1,059
Allowance for doubtful accounts	(46)	(12)
Total current assets	102,288	95,462
Non-current assets
Property, plant and equipment
Buildings and structures	23,104	22,745
Machinery, vehicles, tools, furniture and fixtures	13,796	13,732
Land	15,829	15,539
Other	861	1,057
Accumulated depreciation	(26,532)	(26,656)
Total property, plant and equipment	27,058	26,419
Intangible assets
Other	553	523
Total intangible assets	553	523
Investments and other assets
Investment securities	4,978	5,352
Long-term loans receivable	84	52
Retirement benefit asset	1,435	1,898
Deferred tax assets	548	407
Other	915	916
Allowance for doubtful accounts	(300)	(276)
Total investments and other assets	7,661	8,349
Total non-current assets	35,273	35,292
Total assets	137,562	130,755

3

			(Millions of yen)
		As of December 31, 2020	As of December 31, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	38,922	34,862
and other
Short-term borrowings	5,155	320
Income taxes payable	1,503	1,508
Advances received on uncompleted construction contracts	7,008	3,339
and other
Provision for warranties for completed construction	212	217
Provision for loss on construction contracts	146	60
Provision for loss on litigation	75	79
Provision for loss on liquidation of subsidiaries and	-	71
associates
Other provisions	7	11
Other	5,685	6,553
Total current liabilities	58,717	47,024
Non-current liabilities
Long-term borrowings	943	767
Deferred tax liabilities	50	79
Deferred tax liabilities for land revaluation	851	838
Provision for retirement benefits for directors (and other	118	115
officers)
Provision for share awards	345	377
Provision for share awards for directors (and other	44	43
officers)
Other provisions	-	6
Retirement benefit liability	2,618	2,632
Other	2,535	2,457
Total non-current liabilities	7,508	7,318
Total liabilities	66,226	54,342
Net assets
Shareholders' equity
Share capital	5,158	5,158
Capital surplus	6,169	6,169
Retained earnings	61,133	66,075
Treasury shares	(2,291)	(2,271)
Total shareholders' equity	70,170	75,131
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	655	677
Revaluation reserve for land	(87)	(112)
Remeasurements of defined benefit plans	(17)	72
Total accumulated other comprehensive income	550	636
Non-controlling interests	615	643
Total net assets	71,335	76,412
Total liabilities and net assets	137,562	130,755

4

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		December 31, 2020	December 31, 2021
Net sales
Net sales of completed construction contracts	168,561	161,925
Sales in real estate business	3,518	4,387
Sales in other businesses	13,683	13,533
Total net sales	185,764	179,846
Cost of sales
Cost of sales of completed construction contracts	152,361	146,029
Cost of sales in real estate business	2,889	3,475
Cost of sales in other businesses	11,441	11,596
Total cost of sales	166,692	161,102
Gross profit
Gross profit on completed construction contracts	16,200	15,895
Gross profit - real estate business	629	912
Gross profit - other business	2,242	1,936
Total gross profit	19,071	18,744
Selling, general and administrative expenses	10,165	9,852
Operating profit	8,905	8,891
Non-operating income
Interest income	17	14
Dividend income	127	143
Rental income from land and buildings	32	24
Share of profit of entities accounted for using equity method	19	9
Other	140	204
Total non-operating income	337	397
Non-operating expenses
Interest expenses	47	41
Provision of allowance for doubtful accounts	44	-
Commission for syndicated loans	33	32
Prepayment guarantee fee	38	27
Other	40	39
Total non-operating expenses	205	141
Ordinary profit		9,038	9,147

5