MISUMI : FY2021 3Q Consolidated Financial Results （492KB）

This is an abridged translation of the original document in Japanese and is intended for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

	January 28, 2022
Company name: MISUMI Group Inc.	Stock exchange listing: Tokyo Stock Exchange
Securities Code: 9962	URL: https://www.misumi.co.jp

Representative: Ryusei Ono, Representative Director and President

Contact: Toru Takanami, CFO and Representative Corporate Officer, Finance Platform Phone: [phone]

Scheduled date of filing quarterly securities report: February 4, 2022

Scheduled date of dividend payments: －

Preparation of supplemental explanatory materials: None

Holding of quarterly financial results meeting: None

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 to December 31, 2021)

(1) Consolidated Operating Results (Accumulated) (% indicates changes from the previous corresponding period.)

							Net income
	Net sales		Operating income	Ordinary income	attributable to
							owners of parent
Nine months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
December 31, 2021	274,155	22.9	41,898	139.0	42,035	140.8	29,903	145.4
December 31, 2020	223,014	(5.4)	17,533	(3.2)	17,459	(1.1)	12,183	(5.7)

(Note) Comprehensive income: Nine months ended December 31, 2021: ¥35,967 million 174.4% Nine months ended December 31, 2020: ¥13,106 million 21.6%

Net income per share

Net income per share

(diluted)

Nine months ended

Yen

Yen

December 31, 2021

105.23

104.88

December 31, 2020

42.91

42.76

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Million yen

Million yen

%

As of December 31, 2021

324,761

262,201

79.9

As of March 31, 2021

288,921

233,569

80.0

(Reference) Shareholders' equity: As of December 31, 2021: ¥259,494 million

As of March 31, 2021:

¥231,147 million

2. Cash Dividends

Cash dividends per share for the fiscal year (yen)

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2021

－

5.91

－

9.18

15.09

Fiscal year ending March 31, 2022

－

18.33

－

Fiscal year ending March 31, 2022

14.23

32.56

(Forecast)

(Note) Revision of the latest forecast for cash dividends: Yes

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating		Ordinary		Net income	Net income per
				attributable to
		income		income		share
					owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	366,000	17.8	52,000	91.2	52,000	91.3	37,000	115.9	130.17

(Note) Revision of the latest financial results forecasts: Yes

* Notes:

1. Changes in significant consolidated subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Adoption of special accounting procedures for the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None

(Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Primary Notes, (4) Notes to the Quarterly Consolidated Financial Statements (Changes in accounting policies) on page 9 of the attached document.

1. Total number of shares outstanding (common shares)
   1) Total number of shares outstanding at the end of the period (including treasury stock):

As of December 31, 2021	: 284,380,297 shares
As of March 31, 2021	: 284,244,497 shares

2) Total number of treasury stock at the end of the period:

As of December 31, 2021	: 129,896 shares
As of March 31, 2021	: 129,760 shares

• 1. Weighted average number of shares outstanding during the period: Nine months ended December 31, 2021 : 284,169,270 shares Nine months ended December 31, 2020 : 283,912,017 shares
• These quarterly financial results are outside the scope of quarterly review by certified public accountants or audit corporations.
• Explanation on the appropriate use of forecasts and other notes

The earnings forecasts and other forward-looking statements herein are based on information available to the Company at the time of preparation and certain assumptions deemed to be reasonable, and actual results may differ significantly from the forecasts due to various factors. For the assumptions on the earnings forecasts and notes on their use, please refer to "Explanation of Consolidated Financial Results Forecast and Other Forward- looking Statements" on page 3 of the attached document.

Contents of Attachment
1. Qualitative Information on Quarterly Financial Results .............................................................................	2
(1)	Explanation of Operating Results ..........................................................................................................	2
(2)	Explanation of Financial Position ..........................................................................................................	3
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements ...........	3
2. Quarterly Consolidated Financial Statements and Primary Notes ...............................................................	4
(1)	Quarterly Consolidated Balance Sheet ...................................................................................................	4
(2)	Quarterly Consolidated Statement of Income and Comprehensive Income .............................................	6
(3)	Quarterly Consolidated Statement of Cash Flows ..................................................................................	8
(4)	Notes to the Quarterly Consolidated Financial Statements .....................................................................	9
(Notes on going concern assumption) .......................................................................................................	9
(Notes on significant changes in shareholders' equity) ..............................................................................	9
(Changes in accounting policies) ..............................................................................................................	9
(Additional information)...........................................................................................................................	9
(Segment information)............................................................................................................................	11

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1. Qualitative Information on Quarterly Financial Results

(1) Explanation of Operating Results

The global economy during the cumulative third quarter of FY2021 experienced a recovery in demand for capital investment and operations from the beginning of the term, then continued to be steady after that. On the other hand, there continues to be shortages of some parts such as semiconductors and concerns remain regarding a slowdown in economic activities and supply chain disruptions caused by the COVID-19 pandemic. As a result, uncertainty persists regarding the future economic outlook.

Under this economic environment, MISUMI Group is leveraging its unique business model, which encompasses both manufacturing and distribution businesses. By advancing the business foundation that supports these businesses globally, we contribute to industries worldwide that related to automation demand, particularly the manufacturing industry, by responding to customers' reliable, quick delivery needs.

By utilizing the strong business foundation built to date in IT, logistics, and production as well as our global network, we have continued to provide a stable supply of products to customers around the world while responding to changes taking place in the environment such as the impact of COVID-19 infections and geopolitical risks.

Consequently, consolidated net sales totaled ¥274,155 million (22.9% increase year-on-year). In terms of profits, operating income was ¥41,898 million (139.0% increase year-on-year) due to increased sales and the ongoing effects of profitability improvement. Ordinary income was ¥42,035 million (140.8% increase year-on- year), and net income attributable to owners of parent totaled ¥29,903 million (145.4% increase year-on-year). Both sales and profits reached record highs for the cumulative third quarter period.

The Company has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the fiscal year. For details, please refer to 2. Quarterly Consolidated Financial Statements and Primary Notes, (4) Notes to the Quarterly Consolidated Financial Statements (Changes in accounting policies).

• Factory Automation (FA) Business

In the FA business, sales totaled ¥88,962 million (20.1% increase year-on-year) and operating income reached ¥18,542 million (76.6% increase year-on-year) due to continued growth across all regions, including Japan.

• Die Components Business

In the Die components business, sales totaled ¥56,224 million (15.9% increase year-on-year) and operating income was ¥7,580 million (147.6% increase year-on-year),with continued growth in all regions.

• VONA Business

VONA business is MISUMI Group's sales and distribution business of manufacturing, automation-related equipment parts / indirect materials, and MRO (consumables) products. This business segment includes MISUMI brand products, as well as third-party manufacturers' products. With our broad acquisition of automation related demand worldwide, sales totaled ¥128,969 million (28.4% increase year-on-year) and operating income was ¥15,776 million (296.9% increase year-on-year).

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1. Explanation of Financial Position

1. Assets, liabilities and net assets

Total assets as of the end of the third quarter of the fiscal year were ¥324,761 million, an increase of ¥35,840 million (+12.4%) compared to the previous year-end. This was mainly attributable to an increase of ¥29,110 million (+14.3%) in current assets due to increases in cash and deposits, and merchandise and finished goods, an increase of ¥2,767 million (+6.5%) in property, plant and equipment, and an increase of ¥3,465 million (+10.9%) in intangible assets.

Total liabilities amounted to ¥62,560 million, an increase of ¥7,208 million (+13.0%) compared to the previous year-end. This was mainly attributable to an increase of ¥4,592 million (+10.8%) in current liabilities caused primarily by an increase in income taxes payable.

Total net assets amounted to ¥262,201 million, an increase of ¥28,631 million (+12.3%) compared to the previous year-end. This was primarily because shareholders' equity increased by ¥22,359 million (+9.8%) mainly due to an increase in retained earnings.

As a result, the equity ratio was 79.9%, compared to 80.0% at the end of the previous year.

2) Cash flows

At the end of the third quarter of the fiscal year, cash and cash equivalents amounted to ¥93,522 million, an increase of ¥21,557 million compared to the previous year-end.

Cash flows from operating activities amounted to a net cash inflow of ¥42,663 million (a net cash inflow of ¥22,927 million for the same period in the previous year). The breakdown of cash flows from operating activities is as follows. Income before income taxes was ¥40,910 million. Depreciation and amortization amounted to ¥11,479 million. The amount of a decrease in notes and accounts receivable - trade was ¥1,003 million. An increase in inventories was ¥2,352 million. A decrease in notes and accounts payable - trade was ¥1,235 million. Income taxes paid was ¥8,497 million.

Cash flows from investing activities amounted to a net cash outflow of ¥14,634 million (a net cash outflow of ¥3,716 million for the same period in the previous year). The breakdown of cash flows from investing activities is as follows. The purchase of fixed assets was ¥12,662 million. Payments into time deposits was ¥7,105 million. Refund from time deposits was ¥5,240 million. Payments for lease and guarantee deposits was ¥1,144 million.

Cash flows from financing activities amounted to a net cash outflow of ¥9,142 million (a net cash outflow of ¥5,132 million for the same period in the previous year). The main item of cash flows from financing activities was dividends paid of ¥7,817 million.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements

Demand for capital investment and operations were strong globally in the consolidated cumulative third quarter. Upward revisions have been made to our full-year consolidated earnings forecast as below considering the progress of business performance and current demand trend.

We will promptly make a disclosure if important matters that will affect business performance occur due to a further spread of COVID-19 going forward．

[Full-year consolidated financial results forecast for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)]

	Net sales	Operating	Ordinary	Net income	Net income per
	attributable to
	income	income	share
	(million yen)	owners of parent
	(million yen)	(million yen)	(yen)
		(million yen)
Revised forecast	366,000	52,000	52,000	37,000	130.17
Previous forecast	356,000	48,500	48,500	35,200	123.87

The forecast for dividends is announced in the press release dated January 28, 2022, titled "Announcement regarding the revision of full-year consolidated earnings forecast and annual dividends".

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