MISUMI : FY2022 (ending March 2023) Full year earnings report （134KB）

MISUMI Group Inc.

FY2022 (ended March 31, 2023)

1.

FY22 full year earnings overview

2

Full year earnings report

2.

FY23 market outlook and consolidated earnings forecasts

10

and future initiatives

0

1

Market conditions and our initiatives for FY22

No major disruptions to our view of the trends and developments in the market over

the medium to long term

• Shift in demand from internal combustion engine vehicles and cell phones to electric vehicles,

robots and semiconductors

• Regional blocs in global supply chains

On the other hand, the Chinese market's slowdown has had a considerable impact in

the single fiscal year

FY22 full year earnings overview

• The market conditions have deteriorated due to the impact of the COVID-19 pandemic, with

respectively

lockdowns and the resurgence of infections during the first and second halves of the year,

• Sluggish demand in China has resulted in negative spillover effects in Japan and other Asian

countries

• It has been a challenging year with economic downturns in China, Japan, and other parts of Asia,

which were not offset by growth in Europe and the U.S.

In this environment, we will proactively prepare for the next phase of demand

recovery by continuing to be on the offensive

• We accelerated the innovation of our regional MODEL to meet the diverse needs of each region

• Despite the aggressive implementation of product development, we have managed to absorb

FX rates (vs Yen)

FY21 actual

FY22 actual

the impact of cost increases and maintain a certain level of profitability

USD

112.9 yen

135.1 yen

• Continued to invest in fortifying our greatest strength, which is our ability to provide "global,

EUR

131.0 yen

141.3 yen

reliable and quick delivery"

RMB

17.6 yen

19.7 yen

2

3

FY22 full year earnings overview

FY22 sales by business segment

Despite the lockdown in China at the beginning of the period and a subsequent

All businesses are being affected by the slowdown, but we increased our revenue

through the exchange rate effect

slowdown in demand during the second half, sales managed to exceed last

FA/VONA: Growth in Europe and the U.S. was not enough to offset

year's figures

sluggishness in China and Japan

In addition to the decline in sales volumes, profits were lower due to an increase

Die Components: Weakness in China and Asia due to delayed automotive

in investments and expenses in connection with assertive measures

investment and lower capacity utilization

Million yen

Million yen

FY21

FY22

FY21

FY22

Category

Actual

1/27

Actual

Percentage change

Category

Actual

Actual

YoY change

Revised plan

YoY

Vs plan

Yen basis

Local currency basis

Net sales

366,160

377,000

373,151

+1.9%

-1.0%

Total

366,160

373,151

+1.9%

-4.4%

Operating income

52,210

49,000

46,615

-10.7%

-4.9%

FA business

119,253

121,932

+2.2%

-3.9%

Margin

14.3%

13.0%

12.5%

-1.8pt

-0.5pt

Die components

75,108

79,125

+5.3%

-4.8%

Ordinary income

52,500

50,000

47,838

-8.9%

-4.3%

business

Net income

37,557

36,500

34,282

-8.7%

-6.1%

VONA business

171,799

172,093

+0.2%

-4.5%

4

5

FY22 sales by region (local currency basis)

FY22 sales by region (local currency basis)

Japan: Sluggish performance across the automotive industry due to slow business in

Asia: In the first half of the year, Asia, excluding China, experienced significant

China and low factory utilization rates

growth in the rechargeable battery sector. However, growth slowed significantly

Overseas: Although Europe and the U.S. are expected to continue to grow, the global

in the second half of the year

recession in the middle of the period is likely to have an impact on their economies

U.S./Europe: Continued growth mainly in electric vehicles despite signs of

Consequently, the overseas ratio increased by 1.6 percentage points YoY, reaching 53.7%

recession in the second half of the year

140

Domestic & overseas sales

Billion yen

Overseas sales

Asia (including China)

Americas

Europe

250

150

150

150

Index: FY21=100

Index: FY21 = 100

Yen

Yen

200.5

Yen

125

117

120

Yen

200

97

105

100

100

100

100

Japan

Local

Local

Local

98

currency

currency

Domestic

currency

150

104

108

Local

87 50

sales

50

50

80

currency

93

100

60

0

0

13

14

15

16

17

18

19

20

21

FY22

0

14

15

16

17

18

19

20

21

FY22

14

15

16

17

18

19

20

21

FY22

Overseas

13

13

40

sales

50

FX rates (vs Yen)

FY21 actual

FY22 actual

China 92 (82)

USD

112.9 yen

135.1 yen

Asia 104 (94)

20

0

Parentheses indicate

EUR

131.0 yen

141.3 yen

14

15

16

17

18

19

20

21 FY22

14

15

16

17

18

19

20

21

local currency basis

RMB

17.6yen

19.7 yen

13

13

FY22

6

7

FY22 operating income by business segment

FY22 operating income analysis (YoY)

FA/ VONA: A significant decrease in sales volumes in China, Asia, and Japan

Cost containment measures and foreign exchange effects helped mitigate the

impact of lower volumes

caused the decline in profit

Growth initiatives (IT infrastructure renewal, price reduction) implemented as

Die Components: Reduced automobile demand caused a decrease in

planned while maintaining a certain level of profitability

production, resulting in lower capacity utilization

Billion yen

Million yen

70

8.1 1.3

0.8

-6.2

FY21

FY22

60

52.2

Personnel

Reduced

-4.8

-1.8

warehouse/

Category

Actual

Actual

YoY

organization

costs

Sales

-1.5

-0.7-0.8 46.6

50

Forex

volume IT infra.

Margin

Margin

Yen basis

Local currency basis

impact

enhancement

PU/CD*

China Export

Other

40

PD

freight

Total

52,210

14.3%

46,615

12.5%

-10.7%

-26.3%

rates

expenses

30

14.3% (1)

FA business

23,381

19.6%

21,384

17.5%

-8.5%

-23.7%

12.5%

20

Die components

9,542

12.7%

8,723

11.0%

-8.6%

-22.8%

business

10

*PU/PD: Price Up = price increase / Price Down = price decrease

VONA business

19,287

11.2%

16,506

9.6%

-14.4%

-31.1%

0

*CU/CD: Cost Up = cost increase / Cost Down = cost decrease

FY21

FY22

Actual

Actual

8

9

Market outlook for FY23

No change in the view of

medium- to long-term market trends and development

Based on market conditions from the previous year, a full demand recovery is

expected in the second half of FY23

FY23 market outlook and

• The recovery and expansion of automation demand is expected to be

driven primarily by China and other overseas markets

consolidated earnings forecast

• Significantly accelerate investments in electric vehicles, semiconductors

and other growth areas

Considering these factors, the Company is:

• committed to continuously improving our products and services

• aiming to innovate its business foundation while maintaining thorough

profit management

• preparing for the upcoming high growth phase by leveraging our global,

FX rates (vs Yen)

FY22 actual

FY23 plan

USD

135.1 yen

130.0 yen

reliable and quick delivery capabilities and emphasizing short lead times

EUR

141.3 yen

138.0 yen

RMB

19.7 yen

19.0 yen

10

11

FY23 full year earnings forecast

FY23 sales forecast by business segment

Although the market remains uncertain, the Company is taking innovative steps

FA/ VONA: We aim to accelerate meviy development, expand the lineup of

to achieve record sales performance

economy products, and focus growth primarily on overseas markets

The Company aims to maintain profitability while making the necessary upfront

Die Components: A moderate recovery in global automotive demand is

investments in innovation for its Business MODEL

expected

Million yen

FY22

FY23

Million yen

Category

YoY

FY22

FY23

Actual

Plan

Yen basis

Local currency basis

Category

YoY

Actual

Plan

Yen basis

Local currency

Net sales

373,151

396,000

+6.1%

+8.0%

basis

Total

373,151

396,000

+6.1%

+8.0%

Operating income

46,615

51,000

+9.4%

+14.3%

FA business

121,932

135,586

+11.2%

+13.2%

Margin

12.5%

12.9%

+0.4pt

+0.7pt

Die components

79,125

80,857

+2.2%

+4.7%

Ordinary income

47,838

51,400

+7.4%

-

business

VONA business

172,093

179,557

+4.3%

+5.8%

Net income

34,282

37,800

+10.3%

-

12

13

FY23 domestic & overseas sales

FY23 sales by region (local currency basis)

Japan: We plan to secure growth by expanding into areas supported by meviy and

Asia: We aim to achieve market penetration of economy products by accelerating

developing new sources of demand

new product launches

Overseas:The effects of unique measures, in addition to the recovery of market

U.S. and Europe: We aim to expand customer base by focusing on growth areas

conditions in China and other Asian markets from the next period, will contribute to growth

As a result, the overseas ratio was 54.6%, up 0.9 pt from the previous year

such as electric vehicles

140

Domestic & overseas sales

Billion yen

Overseas sales

Asia(including China)

Americas

Europe

250

150

150

150

Index: FY22=100

216.3

Local

Local

Index: FY22=100

Local

Local

Currency

currency

currency

112

currency

120

111

200

111

110

100

100

100

Yen

Yen

100

108

Yen

Yen

Domestic

Japan

150

50

108

107

50

108

Sales

104

50

80

100

60

Overseas

0

0

14

15

16

17

18

19

20

21

21

FY23

0

14

15

16

17

18

19

20

21

22

FY23

15

16

17

18

19

20

21

22

FY23

Forecast

14

Forecast

Forecast

40

Sales

50

FX rates (vs Yen)

FY22 actual

FY23 plan

China 108(112)

USD

135.1 yen

130.0 yen

Asia

109(111)

20

EUR

141.3 yen

138.0 yen

14

15

16

17

18

19

20

21

22 FY23

0

Parentheses indicate

14

15

16

17

18

19

20

21

22

FY23

local currency basis

RMB

19.7 yen

19.0 yen

Forecast

14

Forecast

15

FY23 operating income analysis (YoY)

Investment performance

The Company plans to significantly increase its profits through the effects of

FY22: Despite some delays caused by the impact of LD in China, we will execute

sales growth and improvement in profit margins (PU/CD*)

our plan with a focus on the renewal of our core systems

We will continue to implement "assertive measures" to improve our operating

FY23: We aim to strengthen our logistics and production capabilities, and

income levels and ratios year over year

further refine our global, reliable and quick delivery capabilities

Billion yen

70

4.2

0.5

-3.6

Billion yen

Transition of capital investments

11.9

-3.4

25

60

Other

Production and logistics related

PU/CD*

expenses

China/Asia

-2.9

-2.3

51.0

IT related

21.4

22.0

PD

IT infra.

20

50

46.6

enhancement HR & org.

Forex

18.0

reinforcement

Sales

impact

15.4

16.5

10.0

40

volume

15

12.1

14.0

13.6

Assertive

5.6

(5.0

related

to

5.4

9.4

(logistics)

Measures

4.3

4.9

30

12.5%

12.9%

10

(1.7

related

to

20

7.2

(logistics)

12.0

5

3.1

10.9

10

10.0

9.3

8.6

9.7

8.7

*PU/PD: Price Up = price increase / Price Down = price decrease

4.1

0

0

*CU/CD: Cost Up = cost increase / Cost Down = cost decrease

16

17

18

19

20

21

22

FY23

FY22

FY23

Plan

Actual

Plan

16

17

Shareholder return

Stock buy-back

For FY23, we expect to pay a full-year dividend of ¥33.22 per share, with a

payout ratio of 25%

The Company has resolved to repurchase its own stocks as follows:

The increase of 3.08 yen compared to the previous year represents a 10.2% increase and a

・Maximum purchase amount: 10 billion yen

new record high

Million yen

33.22

Yen/ stock

・Maximum number of stocks to be repurchased: 4,000,000 stocks

12,000

Total amount of dividends

Dividends per stock

33.04

30.14

35.00

・Purchase period : May 1st , 2023 ~ July 31st, 2023

10,000

30.00

8,000

22.60

21.20

25.00

We implement our stock buy-back program in a flexible manner, taking

into consideration factors such as long-term growth investments,

16.71

15.09

20.00

available cash, and stock market trends, among others

6,000

15.42

14.55

9,452

15.00

13.05

9,391

8,573

4,000

We strive to balance sustainable growth and maximize shareholder

10.00

6,400

6,010

2,000

3,573

4,231

4,597

4,128

4,286

returns through a flexible capital policy

5.00

0

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

0.00

Expected

Plan

18

19