MISUMI : FY2022 3Q Consolidated Financial Results （315KB）

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 Nine Months Ended December 31, 2022

[Japanese GAAP]

Representative: Ryusei Ono, Representative Director and President

Contact: Toru Takanami, CFO and Senior Corporate Officer and Representative Corporate Officer, Finance Platform

Phone: +81-3-5805-7401

Scheduled date of filing quarterly securities report: February 3, 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 Nine Months Ended December 31, 2022 (April 1, 2022 to December 31, 2022)

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

(Note) Comprehensive income: Nine months ended December 31, 2022: ¥36,121 million 0.4%

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

(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: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes, (4) Notes to the Quarterly Consolidated Financial Statements (Changes in accounting policies) " on page 9 of the attached document.

1. Total number of shares outstanding (common shares)
   1) Total number of shares outstanding at the end of the period (including treasury stock):

As of December 31, 2022 : 284,609,097 shares

2) Total number of treasury stock at the end of the period:

As of December 31, 2022 : 130,070 shares

• 1. Weighted average number of shares outstanding during the period: Nine months ended December 31, 2022 : 284,390,000 shares Nine months ended December 31, 2021 : 284,169,270 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 3 of the attached document.

1

1. Qualitative Information on Quarterly Financial Results

(1) Explanation of Operating Results

During the first nine months of the current fiscal year, the global economy was cautious about automation-related capital expenditures. In addition, the global recessionary trend intensified amid the lingering effects of the COVID-19 infection. In China, demand remained sluggish due to the lockdown at the period's beginning and the disease's subsequent rapid spread. Demand in overseas regions other than China also gradually slowed due to the economic slowdown and inflation. In Japan, although there were signs of recovery in the second half of the period, particularly in the automotive sector, a full recovery in demand still needs to be achieved.

Under 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 contribute to industries related to automation demand, particularly the manufacturing industry, by responding to customers' reliable and quick delivery needs. Despite our efforts to accurately anticipate customer demand by leveraging our solid business foundation in IT, logistics, and manufacturing and our global network of locations, we were severely impacted by the worldwide slump in investment demand, particularly in China and Japan.

Consequently, consolidated net sales were ¥281,995 million (2.9% increase year-on-year). In terms of profit, operating income was 38,306 million yen (8.6% decrease year-on-year) and ordinary income was ¥39,208 million yen (6.7% decrease year-on- year) due to a decrease in sales volume and an increase in expenses related to the introduction of a new core system. Net income attributable to owners of parent totaled ¥28,641 million yen (4.2% decrease year-on-year).

• Factory Automation (FA) Business

In the FA business, demand remained weak in China and Japan. Still, growth continued in other regions, with net sales of ¥91,788 million (3.2% increase year-on-year) and operating income of ¥17,294 million yen (6.7% decrease year-on-year).

• Die Components Business

The Die components business remained generally weak due to lower global automotive-related capital spending and factory utilization, with net sales of ¥59,936 million (6.6% increase year-on-year) and operating income of ¥7,022 million (7.4% decrease year-on-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 brand products and third-party manufacturers' products. In addition to the impact of reduced factory operations, particularly in China and Japan, and the suspension of sales that continued throughout the first half of the fiscal year, supply difficulties for some products have yet to be fully resolved, as a result of which sales were ¥130,270 million (1.0% increase year-on-year) and operating income was ¥13,989 million (11.3% decrease year-on-year).

2

1. Explanation of Financial Position

1. Assets, liabilities and net assets

Total assets as of the end of the third quarter of the fiscal year were ¥366,994 million, an increase of ¥19,603 million (+5.6%) compared to the previous year-end. This was mainly attributable to an increase of ¥20,993 million (+8.3%) in current assets due to increases in cash and deposits, and merchandise and finished goods, despite a decrease of ¥431 million (-0.9%) in property, plant and equipment, and a decrease of ¥808 million (- 2.3%) in intangible assets.

Total liabilities amounted to ¥59,586 million, a decrease of ¥7,843 million (-11.6%) compared to the previous year-end. This was mainly attributable to a decrease of ¥8,209 million (-15.7%) in current liabilities due to decreases in notes and accounts payable - trade, income taxes payable and provision for bonuses, despite an increase of ¥366 million (+2.4%) in long-term liabilities.

Total net assets amounted to ¥307,407 million, an increase of ¥27,447 million (+9.8%) compared to the previous year-end. This was primarily because shareholders' equity increased by ¥19,771 million (+7.7%) due to an increase in retained earnings, and accumulated other comprehensive income including foreign currency translation adjustments increased by ¥7,446 million (+39.0%).

As a result, the equity ratio was 83.0%, compared to 79.8% at the end of the previous year.

1. Cash flows

At the end of the third quarter of the fiscal year, cash and cash equivalents amounted to ¥100,846 million, a decrease of ¥597 million compared to the previous year-end.

Cash flows from operating activities amounted to a net cash inflow of ¥20,443 million (a net cash inflow of ¥42,663 million for the same period in the previous year). The breakdown is as follows. Income before income taxes was ¥39,073 million. Depreciation and amortization was ¥12,344 million. The amount of decrease in provision for bonuses was ¥2,765 million. The amount of increase in inventories was ¥10,664 million. The amount of decrease in accounts payable - other was ¥1,718 million. Income taxes paid was ¥13,897 million.

Cash flows from investing activities amounted to a net cash outflow of ¥14,528 million (a net cash outflow of ¥14,634 million for the same period in the previous year). The main items were purchase of fixed assets of ¥8,529 million, payments into time deposits of ¥14,145 million, and refund from time deposits of ¥8,445 million.

Cash flows from financing activities amounted to a net cash outflow of ¥10,722 million (a net cash outflow of ¥9,142 million for the same period in the previous year). The main item was dividends paid of ¥9,244 million.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements

In the consolidated cumulative period for the third quarter, the global recessionary trend intensified, and caution in automation-related capital investment was observed. Therefore, considering the progress of our business performance and recent demand trends, we have revised downward our consolidated business forecast for the full year as shown below.

If any significant events occur that may affect our business performance, we will disclose them promptly.

[Full-year consolidated financial results forecast for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)]

The forecast for dividends is announced in the press release dated January 27, 2023, titled "Announcement regarding the revision of full-year consolidated earnings forecast and annual dividends".

3