Summary of Consolidated Financial Statements

For the Fiscal Year Ended December 31, 2022

(Japan GAAP)

February 10, 2023

Name of the Company: ASICS Corporation

Listing Exchanges: Tokyo

Code No.: 7936

URL: https://corp.asics.com/en/

President, CEO and COO, Representative Director: Yasuhito Hirota

Date of the ordinary general shareholders' meeting: March 24, 2023

Date of scheduled payment of dividends: March 27, 2023

Date of filing Securities Report: March 27, 2023

Financial Results Supplemental Materials: Yes

Financial Results Presentation Meeting: Yes (For institutional investors, analysts and press in Japan)

(Amounts less than one million yen are truncated)

1. Consolidated results for the fiscal year ended December 31, 2022 (January 1, 2022- December 31, 2022)

  1. Consolidated business results (Accumulated)

(The percentages indicate the rates of increase or decrease compared with the corresponding period of the previous fiscal year)

Net sales

Operating income

Ordinary income

Profit attributable to

owners of parent

MY

%

MY

%

MY

%

MY

%

FY ended December 31, 2022

484,601

19.9

34,002

54.9

30,913

39.5

19,887

111.5

FY ended December 31, 2021

404,082

22.9

21,945

-

22,166

-

9,402

-

(Note) Comprehensive income: FY ended December 31, 2022: ¥ 33,225

million (27.6 %)

(Note) Comprehensive income: FY ended December 31, 2021: ¥ 26,033

million (- %)

Ratio of net

Ratio of ordinary

Ratio of

Net income

Diluted net

income to

operating

income to total

per share

income per share

shareholders'

income to net

assets

equity

sales

Yen

Yen

%

%

%

FY ended December 31, 2022

108.60

108.51

12.6

8.0

7.0

FY ended December 31, 2021

51.38

51.33

6.9

6.5

5.4

(Reference) Equity in earnings of affiliates:FY ended December 31, 2022:

－ million

FY ended December 31, 2021:

－ million

Note: ASICS Corporation has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the current consolidated fiscal year.

The figures for the fiscal year ending December 31, 2022 are after the application of the accounting standards.

  1. Consolidated financial position

Total assets

Net assets

Shareholders' equity

Net assets per share

ratio

MY

MY

%

Yen

As of December 31, 2022

425,067

172,729

40.1

931.45

As of December 31, 2021

345,773

146,537

42.2

798.08

(Reference) Shareholders' equity: December 31, 2022:

¥ 170,614 million

December 31, 2021:

¥ 146,080 million

Note: ASICS Corporation has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the current consolidated fiscal year.

The figures for the fiscal year ending December 31, 2022 are after the application of the accounting standards.

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(3)

Consolidated cash flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

operating activities

investing activities

financing activities

equivalents at end of year

MY

MY

MY

MY

FY ended December 31, 2022

(21,427)

(14,481)

2,314

65,804

FY ended December 31, 2021

49,146

(10,167)

(25,968)

95,275

2.

Dividends

Cash dividend per share

Total

Dividend

Ratio of

dividend

dividends to

payout ratio

End of 1st

End of 2nd

End of 3rd

End of

amount

net assets

(Record date)

Annual

(Consolidated)

quarter

quarter

quarter

year

(Annual)

(Consolidated)

Yen

Yen

Yen

Yen

Yen

MY

%

%

FY ended December

-

12.00

-

12.00

24.00

4,392

46.7

3.2

31, 2021

FY ended December

-

16.00

-

24.00

40.00

7,326

36.8

4.6

31, 2022

FY ending December

-

22.00

-

22.00

44.00

40.3

31, 2023 (Projected)

3. Forecast of consolidated business results for the fiscal year ending December 31, 2023 (January 1, 2023- December 31, 2023)

(The full-year percentages indicate the rates of increase or decrease compared with the previous fiscal year)

Net sales

Operating income

Ordinary income

Profit attributable to

Net income per

owners of parent

share

MY

%

MY

%

MY

%

MY

%

Yen

Full-year

510,000

5.2

37,000

8.8

32,000

3.5

20,000

0.6

109.22

  • Notes
  1. Changes in significant subsidiaries during the fiscal year (changes in specified subsidiaries that caused changes in the scope of consolidation): None
  2. Changes in accounting policy, changes in accounting estimates, and changes in presentation due to revisions
  • Changes in accounting policy to conform to revisions in accounting standards and others: Adopted: Yes
  • Changes in accounting policy adopted otherwise than in: None Changes in accounting estimates: None

Changes in presentation due to revisions: None

  1. Number of shares (of common stock) issued and outstanding

Number of shares outstanding (including treasury shares) at fiscal end:

December 31, 2022

189,870,559 shares

December 31, 2021

189,870,559 shares

  • Number of treasury shares at fiscal end:

December 31, 2022

6,700,633 shares

December 31, 2021

6,829,533 shares

  • Average number of shares during the term:

FY ended December 31, 2022

183,119,804 shares

FY ended December 31, 2021

183,004,752 shares

2

(Reference) Summary of non-consolidated business results

Non-consolidated results for the fiscal year ended December 31, 2022 (January 1, 2022- December 31, 2022)

  1. Non-consolidatedbusiness results (Accumulated)

(The percentages indicate the rates of increase or decrease compared with the corresponding period of the previous fiscal year)

Operating revenue

Operating income

Ordinary income

Net income

MY

%

MY

%

MY

%

MY

%

FY ended December 31, 2022

31,564

15.7

722

-

18,140

189.3

6,914

(1.5)

FY ended December 31, 2021

27,275

17.1

(3,965)

-

6,271

155.4

7,020

647.7

Net income

Diluted net income

per share

per share

Yen

Yen

FY ended December 31, 2022

37.76

37.73

FY ended December 31, 2021

38.36

38.32

  1. Non-consolidatedfinancial position

Total assets

Net assets

Shareholders' equity

Net assets per share

ratio

MY

MY

%

Yen

As of December 31, 2022

164,932

45,489

27.4

246.73

As of December 31, 2021

153,066

42,408

27.5

229.98

(Reference) Shareholders' equity: December 31, 2022:

¥ 45,193 million

December 31, 2021:

¥ 42,095 million

  • Summary of Consolidated Financial Statements is not subjected to auditing procedures by independent auditors
  • Explanation of appropriate use of business performance forecasts; other special items

(Notes to the description about future, other)

The performance forecasts above are estimated based on information available as of the date hereof. This may cause actual results to differ from stated projections due to changing business conditions or other factors. Please refer to page 10, "(4) Forecast for the fiscal year ending December 31, 2023" for the forecast of consolidated business results.

(How to access supplemental materials on quarterly business results)

The Company is scheduled to hold conference call on business results for press on Friday, February 10, 2023 and for investors on Monday, February 13, 2023. We plan to post the supplemental materials use in the meeting on the Company's website (https://corp.asics.com/en/investor_relations/library/financial_summary)on Friday, February 10, 2023.

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1. Qualitative information for consolidated business results

(1) Explanation on business results

Forward-looking statements in the text are our estimation as of the end of December 31, 2022. Effective from the fiscal year ended December 31, 2022, the Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others.

Major initiatives during the fiscal ended December 31, 2022

Although there has been concerns about the various effects of the novel coronavirus disease (COVID-19) in the fiscal year ended December 31, 2022, efforts to normalize socioeconomic activities are underway in many parts of the world. Under these circumstances, net sales for the fiscal year ended December 31, 2022 grew significantly by 19.9% from the previous fiscal year to ¥484.6 billion with double digit growth in all regions, and increased by 9.6% even after excluding the effects of foreign exchange, reaching a record high. Despite deteriorating foreign exchange rates in purchasing goods and higher logistics costs in North America and Europe, mainly due to improving the sales channel mix and optimizing selling prices, the gross profit ratio was 49.7%, up from the previous fiscal year. Operating income also increased significantly from the previous fiscal year by 54.9% to ¥34.0 billion reaching a record high, and we achieved our operating income target of ¥25.0 billion set in the Mid-term Plan 2023 ahead of schedule.

Still there is confusion over the situation in Russia and Ukraine. However, the scale of ASICS Russia and Ukraine operations are small and the impact on business performance has been minimal.

  • Digital
  • Worldwide EC sales grew by 35.3% from the previous fiscal year to ¥86.3 billion. The number of OneASICS members increased by 35% from the previous fiscal year to 7.3 million. In terms of realizing "To be No.1 Performance Running & Racing brand" which is one of the strategic priorities in the Mid-term Plan 2023, we continue to grow the number of OneASICS members and to accelerate in building of the running ecosystem by increasing the number of touch points with runners.
  • In November, we made njuko SAS (hereafter referred to as "njuko"), which offers one of the largest race registration platforms in Europe with over 3.3 million annual registrations, a subsidiary. njuko has been used as a platform for many of most prestigious events in France, the UK, Germany, and other European countries.
    This completes the acquisition of a top-tier race registration company in each of the key regions of Japan, North America, Europe, and Oceania. In 2023, ASICS expects to have more than 12 million race registrations worldwide, making it the No. 1 race registration company by global market share.
    By further expanding the running ecosystem, we aim to achieve sales of ¥100.0 billion in EC as early as possible and sales of ¥10.0 billion by 2026 in running services such as race registration business and running apps.
  • Greater China Region

Net sales increased significantly by 18.7% from the previous fiscal year to ¥62.4 billion. Shanghai and other areas were affected by COVID-19 related restrictions due to the spread of COVID-19 from March through May. The spread of COVID-19 also continued in Beijing, Guangzhou, and other areas, through October and November. The consumption environment was

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extremely severe throughout the year, due to factors such as people refraining from going out in major cities in December. Despite such circumstances, the various locality-oriented strategies led by the China Division established in 2019 have been successful. Net sales grew significantly in Performance Running by 34.5% (18.2% on a currency neutral basis), Core Performance Sports by 58.5% (39.7% on a currency neutral basis), and Sport Style by 40.7% (23.8% on a currency neutral basis). In addition, Performance Running net sales grew by 137.3% , growth of about 2.0 times, compared to 2019.

  • Performance Running
  • Net sales increased by 24.0% from the previous fiscal year to ¥258.2 billion. Net sales in each region grew significantly, more than 20% in Europe, more than 30% in Greater China and Oceania, and more than 50% in Southeast and South Asia regions, from the previous fiscal year. In the fourth quarter of the fiscal year ended December 31, 2022, net sales grew by approximately 50%.
  • The METASPEED series of running shoes for top athletes continues to make great strides. Our share in each of the year-end and New Year's relay races, "Ekiden", increased year on year. We are working to continue expanding our share of the running shoe market in each region, and aim "To be No.1 Performance Running & Racing brand."
  • Onitsuka Tiger
  • Net sales grew by 11.6% from the previous fiscal year to ¥43.0 billion. Net sales decreased in the Greater China region, which was affected by COVID-19 related restrictions. However, net sales increased by 35.8% in Japan, where inbound sales are recovering and, furthermore, more than doubled in the Southeast and South Asia regions. In the fourth quarter of the fiscal year ended December 31, 2022, net sales grew by approximately 37%.
  • Onitsuka Tiger has announced the launch of the MEXICO 66 CACTFUL sneaker, a new version of the brand's signature MEXICO 66 shoe model using a cactus-derived material more than 20% in the upper for the first time.
    By using Mexican cactus fibers and other materials as the raw material, we have realized a design that utilizes its lightweight features. Other environmentally friendly materials are also used, such as shoelaces made from recycled materials.
  • Sustainability
  • The Group has been selected for the eighth time as a component company of the Dow Jones Sustainability Asia/Pacific Index. The Dow Jones Sustainability Indices (DJSI) is a series of globally-recognized Socially Responsible Investment (SRI) indices. The DJSI is jointly determined by S&P Dow Jones Indices (US) and ESG assessment company SAM (Switzerland). The DJSI evaluates the sustainability of company business practices from three perspectives-- economic, environmental, and social--and only firms that are rated as leading their respective industries become component companies. ASICS was ranked in the top 5% of the global assessed companies in the industry.
  • ASICS received an overall rating of "A-" again in the index published by CDP, an international non-govermental organization, which evaluates corporate climate change measures. The results of the CDP evaluation are set in the performance targets of the Sustainability-Linked Bond, and are an important indicator for the financing aspect. We will continue to enhance the

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Asics Corporation published this content on 10 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2023 06:19:03 UTC.