MISUMI : FY2022 (ending March 2023) First half year (1H) earnings report（136KB）

Table of contents

MISUMI Group Inc.
FY2022 (ended March 31, 2023)	1.	FY22 1H earnings overview	2
First half (1H) earnings report	2.	Consolidated earnings forecasts for FY22	12
and future initiatives

October 28, 2022

Representative Director, President

Ryusei Ono

0

1

					Market condition in FY22 1H and MISUMI's initiatives
					Initial point of view
						EVs, robots, and semiconductors take center stage from old cars and cell phones	--- unchanged
					mid-term	Global supply chains are becoming increasingly divided into regional blocs	---	unchanged
						Automation demand will continue to grow in China and other regions over	---	temporary
						the medium term		deceleration
FY22 1H earnings overview
		FY22	continue until the second half of this fiscal year
					Supply difficulties for semiconductors and other key components will	---	as expected
						Ukraine Situation and COVID-19 convergence difficult to adopt optimism	---	China LD
						having a profound
								effect on
					Under these circumstances, the Company shall
						・Strengthen the business foundation that supports our greatest strength, "global and reliable
					mid-term	quick delivery"
						・Accelerate model innovation by region and continue to promote unique measures
	FX rates (vs Yen)	FY21 1H actual	FY22 1H actual			・During LD, we will continue to make full use of our production and supply network to ensure
	USD	110.2 yen	133.5 yen		short-term	reliable and quick delivery
	EUR	131.0 yen	138.8 yen		・ Despite the impact of higher costs, the company maintained high profitability through
	RMB	17.0 yen	19.8 yen			thorough earnings management
				2				3

FY22 1H earnings overview	Transition of customer numbers(1H)
Demand deceleration in Japan and China due to factors such as China LD and	Domestic: customer decline was within expectations due to profit improvement
prolonged shortage of materials	measures implemented in the previous fiscal year

Both sales and profits were significantly affected by market conditions, but	Overseas: continued to increase except for China, which was affected by the LD
Number of
sales increased year on year due to exchange rate effects			companies
						300,000														YoY
					Million yen													+3.6%
																	-5.1%
	FY21 1H		FY22 1H			250,000
				Percentage change
Category	Actual	5/6	Actual															Japan
	Initial plan	YoY	vs plan	200,000
																	YoY
				+3.2%	-1.4%
Net sales	182,238	190,900	188,158															-12.3%
Operating income	28,494	28,500	26,898	-5.6%	-5.6%	150,000
Margin	15.6%	14.9%	14.3%	-1.3pt	-0.6pt	100,000														Overseas
													YoY
	28,694	28,700	27,527	-4.1%	-4.1%
Ordinary income	50,000														-0.1%
Net income	20,831	20,900	20,240	-2.8%	-3.2%														excluding
														China
						0														+2.8%
						09	10	11	12	13	14	15	16	17	18	19	20	21	FY22
					4	1H														1H	5

FY22 1H sales by business segment	FY22 1H sales by region (local currency basis)
All businesses were affected by slowing demand, but foreign exchange effects	Japan: delayed recovery due to the impact of China LD, including automobile-related
industries, remained sluggish
helped to secure revenue growth

FA / VONA: growth in Asia, Europe, and the Americas failed to offset demand		Overseas: slowed down due to the China LD and power restrictions, but other regions
	were steady
slowdown in Japan and China
				As a result, overseas sales ratio stood at 55.3%, up 3.1pts YoY
Die components: weakness in Japan, China, and Asia due to lower automotive-
related investment and operation of the customers		Million yen	160		Domestic & overseas sales			Billion yen			Overseas sales(1H)
							120
					Index FY21 1H =100															104.1
	FY21 1H		FY22 1H
			140	(1H/2H)
																100
Category			YoY change
Actual	Actual	120											yen
			Domestic
										109
	Yen basis	Local currency basis
			100		Sales									80
															Local
	182,238	188,158	+3.2%	-4.1%
Total	80										Japan	currency
														96	95	60
FA business	59,073	61,415	+4.0%	-3.2%	60			Overseas								40
Die components					40
37,515	39,900	+6.4%	-5.1%			sales
business											20
				20
VONA business	85,649	86,842	+1.4%	-4.2%	0												0
					13	14	15	16	17	18	19	20	21	FY22
							13	14	15	16	17	18	19	20	21	FY22
															1H
				6																					1H	7

					FY22 1H sales by region (local currency basis)							FY22 1H operating income analysis (vs. plan)
		Asia: continued growth in Asia, excluding China, driven by rechargeable batteries		Significant impact of decreased sales volume due to China LD, partially affected by
			CU* influence
		and semiconductors
																								Profit increase was achieved thanks to favorable foreign exchange effects and cost
		Americas / Europe: acquisition of new solid demand related to EVs, and steady			controls but fell short of the planAdherence.	to a certain level of profitability
		growth in logistics and medical services																	Billion yen	Operating									Operating
																															35	margin
		Asia (including China)				Americas								Europe					14.9%									margin
																								14.3%
150							150									28.5	-3.9
Index: FY21 1H=100				150								Yen											30		4.2	-1.8			0.6	26.9
																						Yen		-0.3	0.9
										Yen
																		128									113				-1.3
										103																					25				Forex	IT infra.	Personnel	Other
100										100									100
																													Sales			Impact	expenses
																				Local									Local			PU/CD*	Forex	enhancement	cost
										Local																				volume	(SG&A
																		currency									currency	20				Impact	expenses)
									currency
																	106									106					(Gross
50										90 50																					profit)
																	50
																															15
0	13	14	15	16	17	18	19	20	21	FY22	0									0											10
	14	15	16	17	18	19	20	21	13	14	15	16	17	18	19	20	21	FY22
										1H	13	FY22
																			1H										1H

China 99 (85)	FX rates (vs Yen)	FY21 1H actual	FY22 1H actual		5		*PU/PD: Price Up = price increase / Price Down = price decrease
Asia 109 (98)	USD	110.2 yen	133.5 yen				*CU/CD: Cost Up = cost increase / Cost Down = cost decrease
Parentheses indicate local currency basis	EUR	131.0 yen	138.8 yen		0
	FY22	FY22
	RMB	17.0yen	19.8 yen
						1H plan	1H actual 9
			8
FY22 1H operating income by business segment			Investment results

Active development to reinforce the IT infrastructure geared for business model

FA / VONA: Japan and China were affected by the volume decline due to LD, whichinnovation accounted for a high percentage of sales, thereby significantly impacting profits

	Die components: The significant weighting of automotive-related products and			Due to the impact of the China LD, some investments, including those related
			to new logistics site was delayed
	lower capacity utilization due to lower demand												Capital expenditures by half year
									Million yen			Billion yen
									14
		FY21 1H			FY22 1H						Production and logistics related
						12
	Category	Actual		Actual		YoY						IT related
				10	9.1									8.8
				Margin			Margin	Yen basis	Local currency basis		8.9
												7.9			7.7
											8
Total	28,494		15.6%	26,898		14.3%	-5.6%	-22.1%
			5.3	4.1				6.1	2.7	2.9
											6		3.9		0.4
	FA business	12,796		21.7%	12,241		19.9%	-4.3%	-19.5%											4.9
												4															2.5
	Die components	5,091		13.6%	4,732		11.9%	-7.1%	-21.8%											5.7				5.9		(1.1 related to
										4.8				5.0		logistics)
	business					2
											3.8		4.0							2.4
	VONA business	10,606		12.4%	9,924		11.4%	-6.4%	-25.4%		0
						1H	2H			1H		2H			1H	2H		1H
																	FY19				FY20				FY21		FY22
										10															11

							Outlook of FY22 going forward
						While the demand for automation in the industrial automation industry
						will remain unchanged over the medium to long term, uncertainty is
						progressing at present
						• Impact from inflationary prices in energy and raw materials, and
							exchange rate fluctuations
						•	Global recession risk
Consolidated earnings forecasts for FY22		• Prolonged parts shortages and difficulty in procuring parts
						Our company shall
						・ Thoroughly balance "assertiveness" and "protectiveness" in
							preparation for uncertainties in the business environment
						・• Continue to focus on regions/businesses/services with high growth
							and profitability
	FX rates (vs Yen)	FY21 actual	FY22 2H plan	FY22	・	Continue to strengthen business foundation and focus on refining
	full-year plan
	USD	112.9 yen	141.0 yen		136.9 yen		"reliable and quick delivery"
	EUR	131.0 yen	141.0 yen		139.8 yen
	RMB	17.6 yen	20.0 yen		19.9 yen
						12	13

FY22 full year earnings forecast

FY22 sales forecast by business segment

Uncertainty, but considering unique measures and exchange rate effects,

FA / VONA: growth through enhancement of product lineup and inventory,

the full-year plan remains unchanged

and acceleration of meviy expansion

Profitability is expected to be at the same level as the previous year due to

Die components: growing EV demand, but full-scale recovery of automobile

successful efforts to improve profitability in the last fiscal year

operations yet to be achieved

Million yen

FY21

FY22

Million yen

Category

YoY

FY21

FY22

Actual

Plan

Yen basis

Local currency basis

Category

YoY

Actual

Plan

Yen basis

Local currency basis

Net sales

366,160

403,500

+10.2%

+3.0%

Total

366,160

403,500

+10.2%

+3.0%

Operating income

52,210

57,300

+9.7%

-8.1%

FA business

119,253

135,495

+13.6%

+6.5%

Margin

14.3%

14.2%

-0.1pt

-1.5pt

Die components

75,108

83,739

+11.5%

+0.2%

52,500

57,600

+9.7%

Ordinary income

-

business

VONA business

171,799

184,266

+7.3%

+1.8%

Net income

37,557

42,000

+11.8%

-

14

15

FY22 domestic & overseas sales	FY22 sales by region (local currency basis)
Japan: demand recovery is expected to be weak, including the automotive sector,	Asia China: "Assertiveness" continues, but market conditions are on the way to recovery
and remained at the same level as the previous year
Asia (other): growth by capturing demand of mass-production factories
Americas / Europe: relatively strong compared to Japan, China and Asia
Americas / Europe: capturing growing demand centered on EVs + continue to penetrate
As a result, overseas sales ratio is expected to be 56.0%, up 3.9 pts YoY
logistics, medical, etc.

160		Domestic & overseas sales	Billion yen			Overseas sales				Asia(including China)				Americas						Europe
										250								225.8
Index: FY21=100														150					150										150
															Index: FY21=100											Yen					Yen
																							Yen
140																														134							120
									Yen																113
120									118	200										100					100										100
											Local															Local									Local						Local
										currency
100																								currency									currency						currency
										105 150
	Domestic							Japan															101 50									111						113
80							101											50															50
Sales
60											100
																									0
			Overseas																0	13 14 15 16 17	18	19	20	13	14	15	16	17	18	19	20	21	(Forecast)	13	14	15 16 17	18	19	20 21 FY22
																		21 FY22
																										FY22	0
40				Sales																						(Forecast)																(Forecast)
										50
																																	FX rates (vs Yen)
20																						China 111(98)												FY21 actual		FY22 plan
																																	USD			112.9 yen		136.9 yen
																						Asia 116(105)
0																																		EUR			131.0 yen		139.8 yen
13	14	15	16	17	18	19	20	21	FY22	0											Parentheses indicate local currency basis
	13	14	15	16	17	18	19	20	21	FY22															RMB			17.6 yen			19.9 yen
										(Forecast)										(Forecast) 16																						17

			FY22 operating income analysis (vs. plan)							Shareholder return
Anticipating an increase in raw materials and other costs compared to 1H,		Dividend for 1H of FY22 was 17.80 yen, a decrease of 0.53 yen year-on-year
which cost suppression will offset
																	Full-year dividend is expected to be 36.94 yen, a record high, and an increase
We will keep SG&A expenses below plan, but model innovation acceleration
	of 3.90 yen year-on-year
costs factored in as before
Billion yen
70																							Yen/share				Dividends per share				36.94 yen
		57.3	-6.7	10.4	-4.6					1.2		0.3		0.1		57.3	40.00
60		2.5																(+3.90 yen YoY)
																					33.04 yen
													35.00
				-3.2										Warehouse			IT infra.
											Other												(+17.95 yen YoY)
					Forex	Personnel			costs	enhancement
50
						expenses									30.00
				Sales		Impact	Cost																									Year-end
				volume PU/CD*	Forex	(SG&A																										Year-	end			19.14 yen
40					Impact	expenses)																25.00									14.71	yen
				(Gross
																								22.60	21.20			(+5.53 yen	YoY)		(+4.43 yen YoY)
					profit)																	20.00
30								Compared to plan +4.1				15.42	16.71		14.55	15.09
								15.00		13.05
20											YoY change -6.6				10.72								1H					1H
																					10.00
							0				-2.3			+0.7			-5
																								18.33 yen			17.80 yen
																						5.00									(+12.42 yen YoY)			(-0.53 yen YoY)
10				*PU/PD: Price Up = price increase / Price Down = price decrease
												0.00
				*CU/CD: Cost Up = cost increase / Cost Down = cost decrease										14	15	16	17	18	19	20	21		FY22
0																						13
		FY22																		FY22														(Forecast)
	initial plan																		plan		* Effective July 1, 2015, a 3-for-1 stock split was executed. past DPS amounts have been adjusted to reflect the split
																		18												19