MISUMI Group Inc. FY2021 first half consolidated financial results （187KB）

October 28, 2021

MISUMI Group Inc.

FY2021 first half consolidated financial results

• Recovery in capital investment demand and operations continued, both sales and profits reached record highs for the half-year period ~

MISUMI Group Inc. announced its consolidated financial results for the first half of FY2021 (April 1, 2021- September 30, 2021) today. Major performance indicators are as follows.

(Million yen)	FY2020 first half	FY2021 first half	YoY change
Net sales	143,302	182,238	+27.2%
Operating income	9,126	28,494	+212.2%
Net income	6,708	20,831	+210.5%
Earnings per share	23.63 yen	73.31 yen

< Highlights of FY2021 first half consolidated financial results >

1. Significant increase in profit due to the ongoing effects of profitability improvement since last year and sales recovery

• The global economy during the first half of FY2021 started to recover from the COVID-19 pandemic, capital investment and operations in the manufacturing industry were solid worldwide. Demand that has been driven by China, also recovered in all other regions, including Japan. On the other hand, concerns such as the strong recovery in demand causing a shortage of some components, including semiconductors, and supply chain disruptions in certain regions due to COVID-19, became apparent.
• 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 ¥182,238 million, an increase of 27.2% year-on-year (22.2% increase on a local currency basis). In terms of profits, operating income was ¥28,494 million (212.2% increase year-on-year) due to the recovery of sales and the effects of ongoing efforts to improve profitability since the previous fiscal year. Ordinary income was ¥28,694 million (215.0% increase year-on-year), and net income attributable to owners of parent was ¥20,831 million (210.5% increase year-on-year). Both sales and profits reaching record highs for the half-year period.

2. High growth continued in all business segments since the first quarter

Segment sales for FY2021 first half are shown in the table below.

	Net sales (million yen)	YoY change
	FY2020	FY2021		Local
	Yen basis	Currency
	first half	first half
		basis
FA business	47,810	59,073	+23.6％	+18.5％
Die components	31,028	37,515	+20.9％	+14.8％
business
VONA business	64,464	85,649	+32.9％	+28.5％
Total	143,302	182,238	+27.2％	+22.2％

• In the FA business, sales increased by 23.6% due to continued growth in China and continued recovery in all other regions including Japan.
• In the Die components business, automobile-related demand showed sign of recovery in Asia, the U.S. and Europe with sales increased by 20.9% year-on-year.
• In the VONA business, sales increased by 32.9% year-on-year due to the strong global demand for automation.

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3. Overseas sales continued to increase in all regions, reaching record high for the half-year period

Regional break down of sales for FY 2021 first half were as follows.

		Net sales (million yen)	YoY change
		FY2020	FY2021		Local
		Yen basis	currency
		first half	first half
			basis
Japan	71,222	87,157	+22.4％	－
Overseas	72,080	95,081	+31.9％	+22.1%
	China	30,375	37,786	+24.4％	+11.3％
	Asia	19,501	26,984	+38.4％	+30.6％
	United States	12,594	16,395	+30.2％	+26.0％
	Europe	7,232	10,304	+42.5％	+31.9％
	Other	2,376	3,611	+51.9％	+39.1％

• In Japan, semiconductor-related demand remained strong with sales increasing by 22.4% year-on-year.
• Sales were strong in each overseas region, with an increase of 31.9% year-on-year.

4. Interim dividend per share to be 18.33 yen, an increase of 12.42 yen year-on-year

• MISUMI established its shareholder return policy by comprehensively taking into account 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.
• With respect to dividends, our payout ratio is set at 25%. In light of this, we paid out an interim dividend per share of 18.33 yen, an increase of 12.42 yen year-on-year.
• We revised our year-end dividend forecast to 12.65 yen per share, an increase of 3.47 yen year-on-year, a decrease of 0.02 yen to our previous forecast.

				Annual dividend
		Interim		Year-end		Total
Previous forecast				12.67 yen		31.00 yen
Payout ratio			25.0%	25.0%
Revised forecast				12.65 yen		30.98 yen
Payout ratio			25.0%	25.0%
FY2021 interim		18.33yen		-			-
per-share dividend
FY2020 interim		5.91 yen		9.18 yen		15.09 yen
per-share dividend
Payout ratio	25.0%	25.0%	25.0%
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5. Revisions to our consolidated earnings forecast for FY2021

The consolidated financial forecasts for the fiscal year ending March 31, 2022 were revised upward as below since capital investment and operations in the manufacturing industry were solid worldwide, and both sales and profits for the first half of FY2021 exceeded the previous forecast announced on July 30, 2021.

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	354,000	45,500	45,200	33,000	116.14
(A)
Revised forecast	356,000	48,500	48,500	35,200	123.87
(B)
Difference (B-A)	+2,000	+3,000	+3,300	+2,200
Ratio of difference	+0.6%	+6.6%	+7.3%	+6.7%
(%)
FY2020 results	310,719	27,199	27,189	17,138	60.36

[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 earnings results report for details on consolidated earnings results for the first half of 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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