MISUMI : FY2021 third quarter consolidated financial results （218KB）

January 28, 2022

MISUMI Group Inc.

FY2021 third quarter consolidated financial results

• Record high for both sales and profits in the cumulative third quarter period due to strong demand for capital investment and solid operations

worldwide ~

MISUMI Group Inc. announced its consolidated financial results for the cumulative third quarter period of FY2021 (April 1, 2021- December 31, 2021) today. Major performance indicators are as follows.

(Million yen)	FY2020 3Q	FY2021 3Q	YoY change
cumulative basis	cumulative basis
Net sales	223,014	274,155	+22.9%
Operating income	17,533	41,898	+139.0%
Net income	12,183	29,903	+145.4%
Earnings per share	42.91 yen	105.23 yen

< Highlights of FY2021 cumulative third quarter consolidated financial results >

1. Significant increase in profits due to sales expansion and ongoing effects of profitability improvement

• 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.

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• Consequently, consolidated net sales was ¥274,155 million, an increase of 22.9% year-on-year (18.0% increase on a local currency basis). 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.

2. Sustained high growth achieved by steadily capturing rising demand across all business segments

Segment sales for FY2021 cumulative third quarter are shown in the table below.

	Net sales (million yen)	YoY change
	FY2020 3Q	FY2021 3Q	Yen basis	Local
	cumulative basis	cumulative basis	Currency
		basis
FA business	74,055	88,962	+20.1%	+15.1%
Die components	48,520	56,224	+15.9%	+9.6%
business
VONA business	100,438	128,969	+28.4%	+24.1%
Total	223,014	274,155	+22.9%	+18.0%

• In the FA business, sales increased by 20.1% year-on year due to continued growth across all regions, including Japan.
• In the Die components business, sales increased by 15.9% year-on-year, with continued growth in all regions.
• In the VONA business, with our broad acquisition of automation related demand worldwide, sales increased by 28.4% year-on-year.

3. Record high sales for the cumulative third quarter in all regions

Regional break down of sales for FY 2021 cumulative third quarter were as follows.

		Net sales (million yen)	YoY change
		FY2020 3Q	FY2021 3Q	Yen basis	Local
		Cumulative basis	Cumulative basis	currency
			basis
Japan	110,768	131,442	+18.7%	－
Overseas	112,246	142,712	+27.1%	+17.3%
	China	46,633	56,938	+22.1%	+8.8%
	Asia	30,732	40,411	+31.5%	+24.3%
	United States	19,662	24,711	+25.7%	+19.5%
	Europe	11,599	15,410	+32.9%	+24.0%
	Other	3,618	5,240	+44.8%	+32.7%

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• In Japan, sales increased by 18.7% year on year driven by sustained strong demand related to semiconductors.
• Sales were strong in each overseas region, with an increase of 27.1% year-on-year.

4. Upward revisions to the consolidated earnings forecast and year-end dividend forecast for FY2021

(1) FY2021 (April 1, 2021-March 31, 2022) consolidated earnings forecast

	Net sales	Operating	Ordinary	Net income	Earnings per
	income	income	share
	Million yen	Million yen	Million yen	Million yen	Yen
Previous Forecast	356,000	48,500	48,500	35,200	123.87
(A)
Revised forecast	366,000	52,000	52,000	37,000	130.17
(B)
Difference (B-A)	+10,000	+3,500	+3,500	+1,800
Ratio of difference	+2.8%	+7.2%	+7.2%	+5.1%
(%)
FY2020 results	310,719	27,199	27,189	17,138	60.36

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 above 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.

1. FY2021 (April 1, 2021-March 31, 2022) year-end dividend forecast Annual dividend

				Interim		Year-end		Total
Previous forecast				12.65 yen		30.98 yen
	Payout ratio			25.0%	25.0%
Revised forecast				14.23 yen		32.56yen
	Payout ratio			25.0%	25.0%
	Actual results this		18.33yen
	year
	Results of		5.91 yen		9.18 yen		15.09 yen
previous fiscal year
	Payout ratio	25.0%	25.0%	25.0%

MISUMI established its shareholder return policy by comprehensively considering various factors, including the expansion of its management structure, the strengthening of its balance sheet, and the enhancement of its capital efficiency; to realize sustainable growth and to improve its corporate value.

As for dividends, since the dividend payout ratio is based on 25%, and as aforementioned, the consolidated earnings forecast was revised for the fiscal year ending March 31, 2022, the year-end dividend forecast has been revised to 14.23 yen per share (5.05 yen increase year-on-year), and the annual dividend forecast is expected to be 32.56 yen.

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[Notes regarding forward-looking statements]

The outlook for the fiscal year ending March 31, 2022 and the forward-looking statements in this document have been prepared on the basis of information available at the time of preparation. This includes the domestic and foreign economic climate, changes in foreign exchange rates for various currencies, and other factors that may affect business performance, that have been determined to be reasonable by MISUMI Group Inc. as well as risks and uncertainties. In light of this, please refrain from making investment decisions solely on the basis of this outlook. Actual business performance may differ greatly from this outlook due to various factors that affect MISUMI Group Inc., including economic climate, market trends and exchange rates.

Please refer to our quarterly earnings results report for details on consolidated earnings results for the cumulative third quarter of the fiscal year ending March 31, 2022.

Please direct any inquiries to:

IR/SR Team

Corporate Relations Department,

MISUMI Group Inc.

Tel: [phone]

Fax: [phone]

Email: [e-mail]

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