Sysmex : Financial Statements( PDF format / 437KB )

Summary of Consolidated Financial Results [ IFRS ]

for the First Nine Months of the Fiscal Year Ending March 31, 2022

		February 10, 2022
Listed company name	:	Sysmex Corporation
Code	:	6869
Listed stock exchanges	:	Tokyo Stock Exchange
URL	:	www.sysmex.co.jp/en
Company representative	: Hisashi Ietsugu, Chairman and CEO
Contact	: Tomoo Aramaki, Executive Vice President
		Corporate Business Administration
Phone	:	078(265)-0500
Scheduled date for filing of quarterly report	:	February 14, 2022
Scheduled date for dividend payment	:	―
Preparation of supplementary material for	:	Yes
quarterly earnings
Holding of earnings announcement	:	Yes

(Unit: Millions of Yen)

1. Results for the First Nine Months of the Fiscal Year Ending March 31, 2022

(1) Operating results

(% changes as compared with the corresponding period of the previous fiscal year)

		Net Sales					Operating profit	Profit before tax	Profit
	Nine months ended	258,901		22.2%			49,870	38.9%		48,065		44.4%		32,784		41.5%
	Dec. 31, 2021
	Nine months ended	211,848		(2.9)%			35,907	(11.2)%		33,286		(10.6)%		23,171		(12.1)%
	Dec. 31, 2020
							Profit			Total			Basic earnings	Diluted earnings
							attributable to
							comprehensive
							owners of the		per share (Yen)	per share (Yen)
							income
							parent
	Nine months ended Dec. 31, 2021		32,901		41.3%	36,513		35.4%				157.38					157.05
	Nine months ended Dec. 31, 2020		23,288		(12.1)%	26,966		12.9%				111.49					111.34
(2) Financial condition
														Equity attributable	Equity attributable
		Total assets					Total equity	to owners of the	to owners of the
														parent				parent to total assets
	As of Dec. 31, 2021					459,775					331,584						330,930						72.0%
	As of Mar. 31, 2021					427,475					308,669						307,898						72.0%
2. Dividend
				Dividend per share
				First quarter	Second quarter Third quarter			Year-end				Annual
				(Yen)					(Yen)	(Yen)			(Yen)				(Yen)
	Year ended Mar. 31, 2021		￣			36.00				￣		36.00			72.00
	Year ending Mar. 31, 2022		￣			37.00				￣
	Year ending Mar. 31, 2022																37.00				74.00
	(Forecast)

Note: Revision of dividends forecast for this period: No

3. Financial Forecast for the Year Ending March 31, 2022

(% changes as compared with the previous fiscal year)

	Net Sales		Operating profit	Profit before tax	Profit attributable to	Basic earnings
		owners of the parent	per share (Yen)
Year ending	360,000	18.0%	66,000	27.4%	63,000	31.2%	44,000	32.8%	210.44
Mar. 31, 2022

Note: Revision of financial forecast for this period: No

4. Other Information

1. Changes in significant consolidated subsidiaries (which resulted in changes in scope of consolidation): No
2. Changes in accounting policies and accounting estimates
3. 1. Changes in accounting policies required by IFRS: No
   2. Other changes in accounting policies: No
   3. Changes in accounting estimates: No
4. Number of outstanding stock (common stock)
5. 1. Number of outstanding stock at the end of each fiscal period (including treasury stock): 209,640,632 shares as of Dec. 31, 2021; 209,443,232 shares as of Mar. 31, 2021
   2. Number of treasury stock at the end of each fiscal period:

447,083 shares as of Dec. 31, 2021; 446,876 shares as of Mar. 31, 2021

1. Average number of outstanding stock for each period (cumulative): 209,056,923 shares for the nine months ended Dec. 31, 2021 208,881,059 shares for the nine months ended Dec. 31, 2020

Note: Quarterly summaries of financial results are excluded from quarterly reviews.

• Explanation regarding the appropriate use of financial forecast and other information
• 1. Basic earnings per share have been revised from the figures indicated in the consolidated financial forecast announced on November 10, 2021, in accordance with changes in the number of shares of outstanding stock and treasury stock. No other figures in the financial forecast have been revised.
  2. The forecasts and future projections contained herein have been prepared on the basis of rational decisions given the information available as of the date of announcement of this document. These forecasts do not represent a commitment by the Company, and actual performance may differ substantially from forecasts for a variety of reasons. Please refer to "3) Consolidated financial forecast" within "1. Qualitative information on quarterly financial results" on page 4 of the attachment to this document for cautionary statements concerning the conditions and performance forecasts that serve as the basis for these forecasts.
  3. Supplementary financial materials (in Japanese and English) will be posted on the Sysmex website on Thursday, February 10, 2022.

Content of Supplementary Materials
1. Qualitative information on quarterly financial results	2
1)	Operating performance analysis	2
2)	Financial conditions analysis	4
3)	Consolidated financial forecast	4
2. Condensed quarterly consolidated financial statements and notes	5
1)	Condensed quarterly consolidated statement of financial position	5
2)	Condensed quarterly consolidated statement of income	7
3)	Condensed quarterly consolidated statement of other comprehensive income	8
4)	Condensed quarterly consolidated statement of changes in equity	9
5)	Condensed quarterly consolidated statement of cash flows	11
6)	Notes to the condensed quarterly consolidated financial statements	12
	1. Notes related to the going concern assumption	12
	2. Segment information	12

－ 1 －

1. Qualitative information on quarterly financial results

1. Operating performance analysis

Future-related information contained in the text below is based on the judgement as of the end of the fiscal period under review.

During the first nine months of the fiscal year ending March 31, 2022, the Japanese economy was characterized by signs of an upturn in social activity and personal consumption, as COVID-19 vaccinations increased, and a nationwide emergency declaration was lifted as the number of new infections dropped. However, in the second half of this period, consumer confidence again ebbed due to the emergence of a new mutant strain (the Omicron variant). Overseas, the overall trend is toward recovery, although the situation varies by country and region. Even so, the outlook remains uncertain due to such factors as a shift toward tighter monetary policy in the United States and concerns of an economic slowdown fueled by debt problems in China and energy-related issues.

On the healthcare front, we are seeing major changes in the healthcare environment due to the COVID-19 pandemic, as well as an aging society and increasingly diverse health and medical needs. In Japan, expectations are mounting for new medical services to address the "new normal," such as resolving the pressure on medical systems when the number of infections rises, stable supplies of necessary supplies and a response to digitalization in the medical field. Looking overseas, aging populations in developed countries are driving demand for the moderation of medical systems. In emerging markets, healthcare demand is increasing, and demand is rising for higher levels of healthcare quality, service enhancements and preventive medicine. As a result, we are seeing rapid advances in the application of artificial intelligence, big data analysis and other leading-edge technologies, which are expected to provide further opportunities for growth.

Against this backdrop, Sysmex continued to expand its product portfolio in the hematology field. We launched a next-generation flagship model, XR-Series Automated Hematology Analyzer, and a compact three-part differential model, the XQ-Series Automated Hematology Analyzer in Japan. We are moving forward with a gradual global sales rollout as we receive regulatory approval in individual countries. We aim to contribute optimization of laboratory operations according to regional characteristics and facilities' needs.

As an initiative toward the realization of personalized medicine, Sysmex submitted an application for manufacturing and marketing approval with the Pharmaceuticals and Medical Devices Agency (PMDA) for an assay kit to measure amyloid beta (Aβ) in the blood using its automated immunoassay system, HISCL-5000/HISCL-800. Alzheimer's disease is thought to be caused by the accumulation of a protein called Aβ in the brain, which causes damage to nerve cells. By providing an assay kit that assists in identifying the accumulation of Aβ in the brain, we aim to reduce the burden on patients and create an environment that allows them to start treatment as soon as possible.

In a new initiative on the logistics front, Sysmex and Yamato Transport Co., Ltd. have started dry ice-free transportation of reagents for gene testing in consolidated cargo at the ultralow temperature range of minus 70 degrees Celsius. This model is revolutionary because it is both eco-friendly and cost effective for long-distance transportation of pharmaceutical and other products that require strict quality and temperature control, without using dry ice. Going forward, we will leverage this model, expanding the list of products for transportation and the delivery service area to realize a sustainable cold chain for pharmaceutical products, thus providing quality and stable product supply to medical professionals.

－ 2 －

Net sales by destination

		Nine months ended	Nine months ended	YoY
		December 31, 2020	December 31, 2021
		(Previous
		Amount	Percentage of	Amount	Percentage of
		period = 100)
		(Millions of yen)	total (%)	(Millions of yen)	total (%)
Japan	33,295	15.7	39,283	15.1	118.0
	Americas	45,637	21.6	59,275	22.9	129.9
	EMEA	59,589	28.1	76,184	29.4	127.8
	China	56,393	26.6	62,792	24.3	111.3
	Asia Pacific	16,933	8.0	21,366	8.3	126.2
Overseas subtotal	178,553	84.3	219,618	84.9	123.0
Total	211,848	100.0	258,901	100.0	122.2

In Japan, sales rose for hemostasis and immunochemistry reagents related to COVID-19 testing, as did sales of instruments and reagents in the life science field. Sales of medical robotics instruments also grew. As a result, sales in Japan rose 18.0% year on year, to ¥39,283 million.

Overseas, testing demand recovered from the previous corresponding period, when demand was affected by COVID-19. Reagent sales rose as a result, mainly in the hematology and urinalysis fields. In addition, the impact of yen depreciation. Consequently, overseas sales increased 23.0% year on year, to ¥219,618 million. The overseas sales ratio rose 0.6 percentage point, to 84.9%.

Selling, general and administrative (SG&A) expenses expanded 15.6%, to ¥67,256 million, owing to a partial resumption of sales activities that had been constrained across all regions in the previous corresponding period.

As a result, during the first nine months of the fiscal year ending March 31, 2022, the Group recorded consolidated net sales of ¥258,901 million, up 22.2% year on year. Operating profit rose 38.9%, to ¥49,870 million; profit before tax surged 44.4%, to ¥48,065 million, and profit attributable to owners of the parent expanded 41.3%, to ¥32,901 million.

Performance by segment

1. Japan
   Sales rose for hemostasis and immunochemistry reagents related to COVID-19 testing, as did

sales of instruments and reagents in the life science field. Sales of medical robotics instruments also grew. As a result, sales in Japan rose 16.6% year on year, to ¥42,170 million.

On the profit front, performance was affected by higher SG&A and R&D expenses, but gross profit increased due to higher sales and an improvement in the cost of sales ratio. Accordingly, segment profit (operating profit) rose 26.9%, to ¥27,630 million.

1. Americas
   In North America, sales of instruments, reagents and maintenance services increased in the

hematology field due to a resurgence in testing demand and sales increase of instruments. Along with the alliance with Siemens Healthcare Diagnostics Inc., sales of instruments, reagents and maintenance services increased in the urinalysis field. As a result, sales in the region grew 31.7%, to ¥55,848 million.

Segment profit (operating profit) grew 208.0%, to ¥2,955 million. Although SG&A expenses

increased, this performance was attributable to higher sales and gross profit, stemming from an improved cost of sales ratio.

1. EMEA
   Sales of instruments and reagents increased in the fields of hematology, urinalysis and

hemostasis, due to a resurgence in testing demand and the acquisition of bids in Russia, Middle East and Eastern Europe. Sales of purchased antibody testing kits related to the COVID-19 pandemic also grew. As a result, sales were ¥76,936 million, up 27.9% year on year.

Segment profit (operating profit) grew 62.2%, to ¥12,172 million, despite higher SG&A expenses, due to increased sales and higher gross profit, stemming from an improved cost of sales ratio.

(4) China

－ 3 －