MISUMI : FY2023 1Q Consolidated Financial Results （522KB）

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 Three Months Ended June 30, 2023

[Japanese GAAP]

	July 28, 2023
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 Senior Corporate Officer and Representative Corporate Officer, Finance Platform

Phone: [phone]

Scheduled date of filing quarterly securities report: August 4, 2023

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 Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)

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

							Net income
	Net sales		Operating income	Ordinary income	attributable to
Three months ended							owners of parent
Million yen	%	Million yen	%	Million yen	%	Million yen	%
June 30, 2023	89,866	(3.5)	8,999	(36.3)	9,837	(32.6)	6,087	(42.5)
June 30, 2022	93,101	2.4	14,135	(1.6)	14,603	1.2	10,586	(0.1)

(Note) Comprehensive income: Three months ended June 30, 2023: ¥18,380 million (24.4)% Three months ended June 30, 2022: ¥24,314 million 113.9%

	Net income per share	Net income per share
		(diluted)
Three months ended	Yen			Yen
June 30, 2023	21.47			21.41
June 30, 2022	37.23			37.13
(2) Consolidated Financial Position
	Total assets	Net assets	Equity ratio
	Million yen		Million yen	%
As of June 30, 2023	382,539		320,597	83.0
As of March 31, 2023	378,458		314,224	82.3
(Reference) Shareholders' equity: As of June 30, 2023:		¥317,498 million
	As of March 31, 2023:	¥311,286 million

2. Cash Dividends

Cash dividends per share for the fiscal year (yen)

	1st	2nd
	quarter-end	quarter-end
	Yen	Yen
Fiscal year ended March 31, 2023	－	17.80
Fiscal year ending March 31, 2024	－

Fiscal year ending March 31, 2024	12.44
(Forecast)
(Note) Revision of the latest forecast for cash dividends: Yes

3rd	Year-end
quarter-end
Yen	Yen
－	12.34
－	14.66

Total

Yen

30.14

27.10

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

				(% indicates changes from the previous corresponding period.)
			Operating	Ordinary	Net income	Net income per
	Net sales	attributable to
	income	income		share
				owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
2nd quarter-end	181,000	(3.8)	20,000	(25.6)	20,800	(24.4)	14,000	(30.8)	49.73
(Cumulative)
377,000	1.0	42,800	(8.2)	43,600	(8.9)	30,500	(11.0)	108.35
Full year

(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: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
5. Total number of shares outstanding (common shares)
6. 1. Total number of shares outstanding at the end of the period (including treasury stock):

As of June 30, 2023: 284,691,897 shares

As of March 31, 2023: 284,675,397 shares

1. Total number of treasury stock at the end of the period: As of June 30, 2023: 2,864,729 shares
   As of March 31, 2023: 130,070 shares
2. Weighted average number of shares outstanding during the period: Three months ended June 30, 2023: 283,570,498 shares
   Three months ended June 30, 2022: 284,346,312 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 4 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..	4
2. Quarterly Consolidated Financial Statements and Primary Notes	5
(1)	Quarterly Consolidated Balance Sheet	5
(2)	Quarterly Consolidated Statement of Income and Comprehensive Income	7
(3)	Quarterly Consolidated Statement of Cash Flows	9
(4)	Notes to the Quarterly Consolidated Financial Statements	10
(Notes on going concern assumption)	10
(Notes on significant changes in shareholders' equity)	10
(Changes in accounting policies)	10
(Segment information)	10

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1. Qualitative Information on Quarterly Financial Results

(1) Explanation of Operating Results

During the first quarter, global economic activities began to normalize as restrictions imposed due to the COVID-19 infections were eased. However, the impact of rising costs for things like energy and raw materials, along with exchange rate fluctuations, continued to prevent a full recovery in demand for capital investment in manufacturing industries. In China, which was heavily affected by the pandemic last year, economic recovery has been greatly delayed and sluggish demand continues. On the other hand, in other overseas regions and Japan, despite an uncertain economic situation, demand remained steadfast.

In this economic environment, MISUMI Group is leveraging its unique Business MODEL, which encompasses manufacturing and distribution businesses. By advancing the business foundation that supports these businesses globally, we are contributing to industries related to automation demand, particularly the manufacturing industry, by responding to customers' needs for reliable and quick delivery. Utilizing the robust business foundation of IT, production, logistics, and our global network of locations, we have made efforts to capture customer demand accurately. Our new business policies, including developing new products and services aimed at sustainable growth, have progressed primarily according to plan. However, we have also been significantly affected by sluggish demand in China and Asia, similar to the impact felt in the machine tool industry due to the delayed economic recovery in China.

Consequently, as a result of the slowdown in demand and some effects from the exchange rates, our consolidated net sales were ¥89,866 million (3.5% decrease year-on-year). In terms of profit, due to the decrease in sales volume and operation, as well as the prepayment of costs associated with the introduction of a new core IT system, operating income was ¥8,999 million (36.3% decrease year-on-year), ordinary income was ¥9,837 million (32.6% decrease year-on-year). Net income attributable to the owners of parent totaled ¥6,087 million (42.5% decrease year-on-year).

• Factory Automation (FA) Business

The FA business secured growth in regions excluding China. However, in the economically sluggish Chinese market, the overall demand for facility investment remained subdued, with net sales of ¥29,093 million (3.7% decrease year-on-year) and operating income of ¥3,639 million yen (42.1% decrease year-on-year).

• Die Components Business

The Die Components business experienced an improvement in the operational status of automotive-related customers, attributed to factors such as the alleviation of material supply constraints in regions other than China. Additionally, there was a partial impact from exchange rate effects. As a result, sales reached ¥19,569 million (0.6% increase year-over-year), while operating income was ¥2,083 million (11.7% decrease year-over-year).

• VONA Business

VONA business is MISUMI Group's sales and distribution business of manufacturing / automation-related equipment parts and MRO (Maintenance, Repair, and Operations) products. In addition, this business segment includes MISUMI branded products and third-party manufacturers' products. Sales in Europe and the US continued to grow due to the strengthening of product lines and other factors. However, China and Asia were significantly affected by lower factory utilization rates and other factors, resulting in sales of ¥41,204 million (5.1% decrease year on year) and operating income of ¥3,276 million (40.3% decrease 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 first quarter of the fiscal year were ¥382,539 million, an increase of ¥4,081 million (+1.1%) compared to the previous year-end. This was mainly attributable to an increase of ¥4,141 million (+1.5%) in current assets due to increases in merchandise and finished goods as well as raw materials and supplies, and an increase of ¥1,128 million (+2.3%) in property, plant and equipment.

Total liabilities amounted to ¥61,942 million, a decrease of ¥2,291 million (-3.6%) compared to the previous year-end. This was mainly attributable to a decrease of ¥2,580 million (-5.3%) in current liabilities due to decreases in notes and accounts payable - trade and provision for bonuses, despite an increase of ¥288 million (+1.9%) in long-term liabilities.

Total net assets amounted to ¥320,597 million, an increase of ¥6,373 million (+2.0%) compared to the previous year-end. This was primarily because accumulated other comprehensive income including foreign currency translation adjustments increased by ¥12,327 million (+44.7%) while shareholders' equity decreased by ¥6,116 million (-2.2%) due to an increase in treasury stock.

As a result, the equity ratio was 83.0%, compared to 82.3% at the end of the previous year.

1. Cash flows

At the end of the first quarter of the fiscal year, cash and cash equivalents amounted to ¥107,556 million, an increase of ¥916 million compared to the previous year-end.

Cash flows from operating activities amounted to a net cash inflow of ¥7,645 million (a net cash inflow of ¥2,781 million for the same period in the previous year). The breakdown is as follows. Income before income taxes was ¥9,837 million. Depreciation and amortization was ¥4,346 million. The amount of decrease in provision for bonuses was ¥1,834 million. The amount of decrease in notes and accounts receivable - trade was ¥3,744 million. The amount of decrease in notes and accounts payable - trade was ¥3,107 million. The amount of decrease in accounts payable - other was ¥1,097 million. Income taxes paid was ¥3,024 million.

Cash flows from investing activities amounted to a net cash outflow of ¥159 million (a net cash outflow of ¥3,364 million for the same period in the previous year). The breakdown is as follows. The purchase of fixed assets was ¥2,933 million. Payments into time deposits was ¥7,817 million. Refund from time deposits was ¥10,584 million.

Cash flows from financing activities amounted to a net cash outflow of ¥12,727 million (a net cash outflow of ¥4,697 million for the same period in the previous year). The main items were purchase of treasury stock of ¥8,808 million and dividends paid of ¥3,511 million.

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