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    9962   JP3885400006

MISUMI GROUP INC.

(9962)
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FY2021 (ending March 2022) first half year (1H) earnings report(143KB)

11/02/2021 | 03:39am EDT

Table of contents

MISUMI Group Inc.

1. FY21 1H earnings overview

2

FY2021 (ending March 31, 2022)

2. FY21 full year consolidated earnings forecasts

13

First half (1H) earnings report

October 29, 2021

Representative Director, President

Ryusei Ono

0

1

Market condition in the 1H of FY21 and MISUMI's initiatives

The market condition is in a bit of turmoil as customers explore the new normal following

the COVID-19 pandemic

• Strong demand has led to shortages of various materials and components, starting

with semiconductors

FY21 1H earnings overview

• Supply chain disruptions in some regions due to COVID-19

• Customer utilization rates are high, but with extreme volatility

While we are affected by these market conditions

• Demand, driven by China, is recovering in all regions including Japan

• Thorough profitability improvement, which has been underway since last year,

continued

• Vigorously defending reliable and quick delivery by making full use of our global

production and supply network

However, affected by shortages of some products, and restrictions on factory

FX rates (vs Yen)

FY20 1H actual

FY21 1H actual

operations (Vietnam)

USD

106.7 yen

110.2 yen

While there were favorable and unfavorable factors, 1H results exceeded the plan,

EUR

121.4 yen

131.0 yen

resulting in new record highs for the half-year period

RMB

15.2 yen

17.0 yen

2

3

FY21 1H earnings overview

FY21 1H transition of customer numbers

Overseas: recovered from the impact of last year's lockdowns, and customer growth

Net sales and operating income both reached record highs for the half-year period

exceeded the pre-COVID-19 levels in all regions

Japan: decreased slightly compared to the previous year, which was not affected by

Factors behind the significant increase in profits are (1) profit improvement started

COVID-19, but per-customer spending increased significantly

last year, (2) sales increase, and (3) forex impact

Number of

companies

YoY

300,000

3.6

Million yen

FY20 1H

FY21 1H

250,000

3.4

Category

Actual

7/30

Actual

Percentage change

Japan

Revised plan

YoY

Vs plan

200,000

YoY

Net sales

143,302

179,900

182,238

+27.2%

+1.3%

-3.0

Operating income

9,126

25,500

28,494

+212.2%

+11.7%

150,000

Margin

6.4%

14.2%

15.6%

+9.3pt

+1.5pt

100,000

Overseas

Ordinary income

9,108

25,400

28,694

+215.0%

+13.0%

YoY

50,000

+8.7

Net income

6,708

18,600

20,831

+210.5%

+12.0%

0

FY09

10

11

12

13

14

15

16

17

18

19

20

FY21

4

1H

1H

5

FY21 1H sales by business segment

FY21 1H domestic & overseas sales

FA: in addition to continued growth in China, recovery in all regions including Japan,

Japan: demand recovered mainly related to semiconductor industry but is still below

Asia, Europe, and the U.S.

the record high

Die Components: steady acquisition of automotive-related demand mainly in the

Overseas: sales increased in all regions and reached a record high for the first half

period

U.S., Japan, and Asia

Overseas sales increased by 22.2% on a local currency basis, overseas ratio was 52%

VONA: continued recovery both in Japan and overseas on the back of strong

demand for automation

Million yen

160

Domestic & overseas sales

Billion yen

Overseas sales (1H)

95.1

Index: FY20 1H =100

100

FY20 H1

FY21 1H

140

( 1H / 2H )

Yen

90

Category

YoY change

127

80

Actual

Actual

120

Local

Yen basis

Local currency basis

currency

70

100

122

60

Domestic

Japan

Total

143,302

182,238

+27.2%

+22.2%

80

sales

122

50

FA business

47,810

59,073

+23.6%

+18.5%

60

Overseas

40

30

Die components

40

sales

31,028

37,515

+20.9%

+14.8%

20

business

20

10

VONA business

64,464

85,649

+32.9%

+28.5%

0

0

12

13

14

15

16

17

18

19

20

FY21

12

13

14

15

16

17

18

19

20

FY21

6

(1H)

7

FY21 1H sales by region (local currency basis)

FY21 1H operating income by business segment

Asia: 5G and rechargeable batteries related drove sales in China, and automotive

Restrained SG&A expenses in 1H originally planned, on the assumption of

and semiconductor-related are the drivers in the rest of Asia

activity limitation due to the impact from COVID-19

U.S. and Europe: recovery in the manufacturing industry in general, centered on EV

Substantial increase in profit in each business due to profitability improvement,

related, and demand in logistics and medical related also captured

sales increase, and forex impact

Asia (including China)

North America

Europe

Yen

142

150

Yen

150

Yen

150

Million yen

Index: FY20 1H = 100

130

134

FY20 1H

FY21 1H

100

100

100

Category

Actual

Actual

YoY

Local

Local

Local

Margin

Margin

Yen basis

Local currency basis

Currency

Currency

Currency

50

119 50

128

50

132

Total

9,126

6.4%

28,494

15.6%

+212.2%

+175.0%

FA business

6,128

12.8%

12,796

21.7%

+108.8%

+90.6%

0

0

12

13

14

15

16

17

18

19

20

FY21

0

Die components

12

13

14

15

16

17

18

19

20 FY21

12

13

14

15

16

17

18

19

20

FY21

1,273

4.1%

5,091

13.6%

+300.0%

+266.4%

business

China

124 (111)

FX rates (vs Yen)

FY20 1H actual

FY21 1H actual

VONA business

1,725

2.7%

10,606

12.4%

+515.0%

+441.1%

USD

106.7 yen

110.2 yen

Asia

138 (131)

Parentheses indicate

EUR

121.4 yen

131.0yen

local currency basis

RMB

15.2yen

17.0 yen

8

9

Profitability improvement effects in 1H of FY21

FY21 1H operating income analysis (YoY)

In addition to the increase in sales volume and forex impact, profitability improvement

Main initiatives to improve profitability

effects exceeded the previous plan

Significantly increased profit by absorbing expenses incurred in fortifying the IT

Appropriate pricing in consideration of market competitiveness

infrastructure and the impact at the Vietnam factory

Billion yen

Improvement of product mix by bolstering sales of high value-added

35

2.8 -0.8

-1.1

products

30

0.1

0.1

28.5

5.2

Other

FX

IT infra.

Factory

Cost reduction in production and procurement

Warehouse Recruitment

0.6

enhancement

Vietnam

25

expenses.

expansion

suppression

impact

impact

Restraining SG&A expenses by fundamentally reviewing inefficient

12.5

cost reduction

operations

20

PU/CD*

We are going to strengthen the existing initiatives in 2H and beyond;

15

Profit improvement effects

9.1

While continuing and reinforcing profitability improvement measures, such as

10

Termination of low-profit products and services

Sales

5

volume

Product selection and concentration in the VONA business

0

*PU/CD: Price up / Cost down

FY20

FY21

10

1H Actual

1H Actual 11

Investment results

Investment in IT enhancement, such as core system renewal, is implemented in advance in anticipation of the future

Investment in production and logistics, restrained considering demand trends, will be actively deployed in 2H

Billion yen

Capital expenditures by half year

FY21 full year

15

Production and logistics related

12

IT related

consolidated earnings forecasts

10.7

10.7

9

9.1

8.9

5.7

6.4

7.9

6.1

7.7

5.3

4.1

2.7

6

3.9

0.4

(1.7 related to

logistics)

3

5.0

4.3

3.8

4.8

4.0

5.7

5.0

FX rates (vs Yen)

FY20 actual

FY21 2H plan

FY21

0

full-year plan

1H

2H

1H

2H

1H

2H

1H

USD

106.2 yen

107.0 yen

108.7 yen

EUR

123.7 yen

128.0 yen

130.1 yen

FY18

FY19

FY20

FY21

RMB

15.6 yen

16.5 yen

16.8 yen

12

13

Outlook of FY21 going forward

FY21 full year earnings forecast

The global trend of structural reform in manufacturing and the rising

Revised forecast to reflect overachievement in 1H while maintaining a cautious

outlook for 2H as previously planned

demand for automation in the medium to long term remains unchanged,

Proactively implement initiatives for growth and thoroughly improve profitability

but uncertainty is increasing

• Difficulties in procuring energy and raw materials, supply chain disruptions

Million yen

• Rising risks in China (recession, power restrictions)

FY20

FY21

Category

Actual

Revised plan

YoY

Revised plan(July 30)

Local currency

Local currency

• Watching out for

(October 28)

Yen basis

Yen basis

basis

basis

geopolitical risk reduction scenario and strategy updates from major

Net sales

310,719

356,000

+14.6%

+11.8%

+0.6%

+0.3%

manufacturers

Operating

27,199

48,500

+78.3%

+65.8%

+6.6%

+5.6%

We will:

income

Margin

8.8%

13.6%

+4.9pt

+4.2pt

+0.7pt

+0.7pt

In the short-term: not only make full use of our supply network with

reliable and quick delivery, but striving to enhance our resilience and

Ordinary

27,189

48,500

+78.4%

-

+7.3%

-

the ability to respond to changes

income

In the long-term: continue to strengthen business model innovation

Net income

17,138

35,200

+105.6%

-

+6.7%

-

aiming for sustainable growth

14

15

FY21 sales forecast by business segment

FY21 domestic & overseas sales

Demand for automation including EV-related, will continue, and the impact of recent

Japan: continued demand for semiconductors and EV-related but concerns about

difficulties in procuring parts

concerns will be factored

Overseas: while demand for automation will increase, geopolitical risks will be taken

FA and VONA are expected to reach record highs, while Die components business

into consideration

is likely to grow for the full year

Overseas sales up 11.8% on a local currency basis, the overseas ratio at 52%

Domestic & overseas sales

Billion yen

Overseas sales

Million yen

160

(Index: FY20100)

200

183.7

FY20

FY21

140

180

Yen

YoY

160

Category

118

Revised Plan

120

Actual

Japan

(October 28)

Yen basis

Local currency basis

140

100

Domestic

111

120

Local

Total

310,719

356,000

+14.6%

+11.8%

80

Sales

100

Currency

112

80

FA business

102,244

119,321

+16.7%

+13.8%

60

Overseas

40

60

Die components business

66,871

73,261

+9.6%

+6.2%

Sales

40

20

20

VONA business

141,602

163,419

+15.4%

+13.1%

0

0

12

13

14

15

16

17

18

19

20

FY21

12

13

14

15

16

17

18

19

20

FY21

16

Forecast

Forecast

17

FY21 sales by region (local currency basis)

FY21 operating income analysis (YoY)

Asia: cautious view taken as uncertainty anticipated in 2H in both China and Asia,

Profit increase exceeded the plan due to sale volume, profitability improvement

and forex impact, covering the increase in expenditures

but annual growth expected year-on-year

Proactive reinforcement of IT infrastructure and organization in 2H to achieve

U.S. and Europe: continued to cultivate demand for EV and medical related, but

sustainable growth

uncertainty exists, as in other regions

Billion yen

60

3.4

0.5

-3.1

Asia(including China)

North America

Europe

-0.9

-2.6

150

150

150

50

8.9

Other

IT infra.

48.5

(Index: FY20=100)

Yen

Yen

Yen

FX

expenses.

HR & org.

117

119

enhancement

124

15.0

impact

reinforcement

Vietnam

factory

100

100

100

40

PU/CD*

impact

Local

Local

Local

Currency

Currency

Currency

50

111

50

115

118

30

27.2

50

Sales

volume

20

0

0

0

12

13

14

15

16

17

18

19

20

FY21

12

13

14

15

16

17

18

19

20

FY21

12

13

14

15

16

17

18

19

20

FY21

Forecast

Forecast

Forecast

FX rates (vs Yen)

FY20 actual

FY21 2H plan

FY21

10

China

113(105)

full-year plan

Asia

122(118)

USD

106.2 yen

107.0 yen

108.7 yen

0

*PU/CD: Price up / Cost down

Parentheses indicate

EUR

123.7 yen

128.0 yen

130.1 yen

FY20

FY21

local currency basis

RMB

15.6 yen

16.5 yen

16.8 yen 18

Actual

Revised plan 19

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Disclaimer

Misumi Group Inc. published this content on 02 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2021 08:38:02 UTC.


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Sales 2022 366 B 2 869 M 2 869 M
Net income 2022 39 149 M 306 M 306 M
Net cash 2022 87 827 M 688 M 688 M
P/E ratio 2022 21,1x
Yield 2022 1,18%
Capitalization 828 B 6 479 M 6 479 M
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Nbr of Employees 11 682
Free-Float 99,9%
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Mean consensus OUTPERFORM
Number of Analysts 8
Last Close Price 2 911,00 JPY
Average target price 4 387,50 JPY
Spread / Average Target 50,7%
EPS Revisions
Managers and Directors
Ryusei Ono President & Representative Director
Kosuke Nishimoto Chairman
Toshinari Sato Managing Director & Chief Information Officer
Yoichi Nakano Independent Outside Director
Tadashi Saegusa Honorary Chairman
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