Summary of Consolidated Financial Results [ IFRS ] for the Fiscal Year Ended March 31, 2024

May 9, 2024

Listed company name

:

Sysmex Corporation

Code

:

6869

Listed stock exchanges

:

Tokyo Stock Exchange

URL

:

www.sysmex.co.jp/en

Company representative

:

Kaoru Asano, President

Contact

: Takuro Minami, Executive Vice President of

Corporate Business Administration

Phone

:

078(265)-0500

Scheduled date for shareholders' meeting

:

June 21, 2024

Scheduled date for dividend payment

:

June 24, 2024

Scheduled date for filing of financial report

:

June 21, 2024

Preparation of supplementary material for earnings

:

Yes

Holding of earnings announcement

:

Yes

(Unit: Millions of Yen)

1. Results for the Fiscal Year Ended March 31, 2024

(1) Operating results

(% changes as compared with the previous fiscal year)

Net Sales

Operating profit

Profit before tax

Profit

Year ended Mar. 31, 2024

461,510

12.4%

78,382

6.4%

74,600

8.6%

49,774

8.9%

Year ended Mar. 31, 2023

410,502

12.8%

73,679

9.3%

68,713

6.8%

45,725

3.8%

Profit attributable

Total

Basic earnings per

Diluted earnings

to owners of the

comprehensive

share (Yen)

per share (Yen)

parent

income

Year ended Mar. 31, 2024

49,639

8.4%

73,397

32.1%

79.27

79.24

Year ended Mar. 31, 2023

45,784

3.8%

55,566

(1.6)%

72.94

72.91

Return on equity

Profit before tax to

Operating profit to

(%)

total assets (%)

net sales (%)

Year ended Mar. 31, 2024

12.1

13.0

17.0

Year ended Mar. 31, 2023

12.4

13.5

17.9

Reference:

Share of loss on equity method: 2,849 million yen for the year ended March 31, 2024; 2,923 million yen for the year ended March 31, 2023.

Note:

The Company conducted a three-for-one stock split on common stock with an effective date of April 1, 2024. Basic earnings per share and diluted earnings per share have been calculated as if the stock split had taken place at the beginning of the previous consolidated fiscal year.

(2) Financial condition

Equity

Equity

Equity

attributable to

attributable to

attributable to

Total assets

Total equity

owners of the

owners of the

owners of the

parent to total

parent per

parent

assets (%)

share (Yen)

As of Mar. 31, 2024

618,920

432,897

432,045

69.8

692.94

As of Mar. 31, 2023

531,074

388,356

387,665

73.0

617.56

Note:

The Company conducted a three-for-one stock split on common stock with an effective date of April 1, 2024. Equity attributable to owners of the parent per share have been calculated as if the stock split had taken place at the beginning of the previous consolidated fiscal year.

(3) Cash flows

Cash flows from

operating activities

Year ended Mar. 31, 2024

63,905

Year ended Mar. 31, 2023

68,835

2. Dividend

Cash flows from investing activities

(54,970)

(51,751)

Cash flows from financing activities

(9,013)

(24,234)

Cash and cash equivalents at the end of the term

75,507

69,460

Dividend per share

Dividend to

First

Second

Third

Year-

Annual

Total

Dividend

equity

quarter

quarter

quarter

end

dividend

attributable to

payout ratio

payment

owners of the

(Consolidated)

(Millions of

parent

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

(%)

yen)

(Consolidated)

(%)

Year ended

－

40.00

－

42.00

82.00

17,157

37.5

4.7

Mar. 31, 2023

Year ended

－

42.00

－

42.00

84.00

17,583

35.4

6.6

Mar. 31, 2024

Year ending

Mar. 31, 2025

－

15.00

－

15.00

30.00

34.3

(Forecast)

Notes:

  1. The total amount of cash dividends for the fiscal year ending March 31, 2024 includes 63 million yen of the dividends for the shares of the Company held by the ESOP Trust.
  2. The Company conducted a three-for-one stock split on common stock with an effective date of April 1, 2024. However, actual dividend amounts prior to this stock split are shown for the fiscal years ended March 31, 2023 and 2024.
  3. Financial Forecast for the Year Ending March 31, 2025

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

Profit attributable

Basic

Net Sales

Operating profit

Profit before tax

to owners of the

earnings per

parent

share (Yen)

Six months ending

237,000

11.4%

37,000

9.4%

34,900

4.8%

23,000

3.7%

36.89

Sep. 30, 2024

Year ending

510,000

10.5%

87,000

11.0%

82,500

10.6%

55,000

10.8%

88.21

Mar. 31, 2025

Note:

The Company conducted a three-for-one stock split on common stock with an effective date of April 1, 2024. Basic earnings per share of the consolidated financial forecast for the year ending March 31, 2025 takes the impact of this stock split into consideration.

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
    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)
    1. Number of outstanding stock at the end of each fiscal period (including treasury stock):

629,371,116 shares as of Mar. 31, 2024; 629,081,976 shares as of Mar. 31, 2023

2) Number of treasury stock at the end of each fiscal period:

5,872,332 shares as of Mar. 31, 2024; 1,342,476 shares as of Mar. 31, 2023

  1. Average number of outstanding stock for each period (cumulative): 626,187,289 shares for the year ended Mar. 31, 2024 627,682,556 shares for the year ended Mar. 31, 2023

Notes:

  1. The Company has introduced Stock-Granting Employee Stock Ownership Plan (ESOP) Trust. Company shares held by the trust are included in treasury stock and are excluded from calculations of the number of treasury stock at the end of the fiscal period and the average number of outstanding stock for the period.
  2. The Company conducted a three-for-one stock split on common stock with an effective date of April 1, 2024. The number of outstanding stock at the end of the fiscal period, the number of treasury stock at the end of the fiscal period, and the average number of outstanding stock for the period are calculated as if the stock split had taken place at the beginning of the previous consolidated fiscal year.

(Reference) Summary of the Non-consolidated Financial Results for the Year Ended March 31, 2024

(1) Non-consolidated operating results

(% changes as compared with the previous fiscal year)

Net Sales

Operating income

Ordinary income

Net income

Year ended Mar. 31, 2024

221,231

8.1%

51,703

3.2%

65,968

14.2%

34,298

(20.0)%

Year ended Mar. 31, 2023

204,746

10.1%

50,095

24.5%

57,764

19.5%

42,877

19.0%

Net income per

Diluted net income

share (Yen)

per share (Yen)

Year ended Mar. 31, 2024

54.77

54.75

Year ended Mar. 31, 2023

68.31

68.28

Note:

The Company conducted a three-for-one stock split on common stock with an effective date of April 1, 2024. Net income per share and diluted net income per share are calculated as if the stock split had taken place at the beginning of the previous consolidated fiscal year.

(2) Non-consolidated financial condition

Total assets

Net assets

Equity ratio (%)

Net assets per share

(Yen)

As of Mar. 31, 2024

355,431

267,897

75.1

427.87

As of Mar. 31, 2023

316,997

261,796

82.2

414.93

Reference:

Equity capital: 266,778 million yen as of March 31, 2024; 260,470 million yen as of March 31, 2023. Note:

The Company conducted a three-for-one stock split on common stock with an effective date of April 1, 2024. Net assets per share are calculated as if the stock split had taken place at the beginning of the previous consolidated fiscal year.

Note: Summaries of financial results are not subject to audit by certified public accountants or auditors.

  • Explanation regarding the appropriate use of financial forecast and other information
    1. 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 "4) Outlook for future" within "1. Overview of operating performance" on page 4 of the attachment to this document.
    2. Supplementary financial materials (in Japanese and English) will be posted on the Sysmex website on Thursday, May 9, 2024.

Content of Supplementary Materials

1. Overview of operating performance

2

1)

Operating performance during the year

2

2)

Financial conditions at end of the year

4

3)

Cash flows during the year

4

4)

Outlook for future

4

2. Basic perspective on selection of accounting standards

5

3. Consolidated financial statements and notes

6

1)

Consolidated statement of financial position

6

2)

Consolidated statement of income

8

3)

Consolidated statement of comprehensive income

9

4)

Consolidated statement of changes in equity

10

5)

Consolidated statement of cash flows

12

6)

Notes to the consolidated financial statements

13

1.

Notes related to the going concern assumption

13

2.

Segment information

13

3.

Per-share information

16

4.

Significant subsequent event

16

－ 1 －

1. Overview of operating performance

  1. Operating performance during the year

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 fiscal year ended March 31, 2024, the Japanese economy continued showing signs of a gradual recovery underpinned by solid personal consumption as normal economic activity resumed following the COVID- 19 pandemic. In overseas markets, while the United States has seen strong personal consumption and investment, Europe has experienced economic slowdown due to inflationary pressures, and China has faced weak domestic demand and sluggish export growth. Additionally, geopolitical risks associated with the Middle East and the Russia-Ukraine issue continue to pose uncertainties.

On the healthcare front, in Japan demand are rising in the medical and healthcare fields against the backdrop of an aging population and diversifying health and medical needs. The Japanese Government has positioned 'next-generation healthcare' as one of its growth strategies, and these fields are expected to remain active. Looking overseas, aging populations in developed countries and economic growth in emerging markets are causing healthcare demand to increase and prompting higher levels of healthcare quality and service enhancements. At the same time, rapid advances in the application of artificial intelligence, information and communications technology, and other leading-edge technologies to the healthcare sector are expected to continue providing opportunities for growth.

Against this backdrop, Sysmex has launched its reagents in Japan and Europe that use a small amount of blood to identify amyloid beta (Aβ) accumulation in the brain, a cause of Alzheimer's disease, and has also begun supplying these reagents for a U.S.-based LDT*1 to a large commercial lab in the United States.

In addition, Sysmex has entered into a Basic Agreement on Business Collaboration with Fujirebio Holdings, Inc. to deepen their multifaceted collaboration in the field of immunochemistry, such as on research and development, production, clinical development, and sales-marketing. Based on this agreement, the companies have signed a CDMO*2 agreement in relation to dedicated reagents for Sysmex's HISCL™-Series Automated Immunoassay System in the field of neurodegenerative diseases, and have agreed on the supply of reagent raw materials. Going forward, the two companies will promote the mutual utilization of each other's high-quality reagent materials, and will further work together in the future with a view to developing new parameters and new technologies.

Meanwhile, we had entered a strategic alliance agreement with CellaVision AB to advance hematology solutions by expanding its portfolio, including next-generation cell morphology analyzers. Going forward, the companies will work to further increase efficiency and standardization of the testing workflow, increase the precision of cell morphology classification, and provide value in supporting diagnosis.

Moreover, Sysmex and Hitachi High-Tech Corporation have agreed to collaborate in the development of genetic testing systems based on capillary electrophoresis sequencers*3. This decision comes from discussions based on the findings of joint research carried out since the conclusion of a feasibility study agreement in August 2023 aimed at developing new genetic testing systems. To achieve widespread clinical realization, Sysmex and Hitachi High-Tech will develop more efficient genetic testing systems at a lower cost, aiming at expanding optimal genetic testing for individual diseases.

Furthermore, we commenced direct sales and service in Italy in the fields of hematology, urinalysis, and hemostasis in April 2024, which will be in addition to our direct sales and service in the fields of life science, among others that we are already providing. We will expand our business in Italy by increasing our share of the market in various testing fields, and also by offering solutions to diverse issues in medical settings through direct communication with our customers.

Finally, as the global general distributor, Sysmex continued to market hinotori™ to medical institutions in Japan. (The hinotori Surgical Robot System is the made-in-Japanrobotic-assisted surgery system.) Also, Medicaroid Corporation, a joint venture between Sysmex and Kawasaki Heavy Industry, Ltd., is moving forward in putting together regulatory affairs and sales systems in preparation to enter overseas markets. In July 2023, sales of an upgraded model with a "hand clutch function" was launched that allows hand operation in addition to the foot pedal at the clutch operation that disconnects the connection between the surgical operation and the forceps operation. In overseas, Medicaroid Corporation and Medicaroid Asia Pacific Pte. Ltd. received approval for hinotori from Singapore's Health Sciences Authority on September, 2023. In Japan, in addition to the three surgical fields the hinotori is currently approved for in Japan (urology, gastroenterology, and gynecology), Medicaroid filed a regulatory approval application for the use of hinotori in respiratory surgery (thoracic surgery). We will continue to collaborate on Medicaroid's regulatory approval activities in Japan and overseas to introduce products in a steady manner.

*1 LDT:

A laboratory developed test (LDT) is a type of in vitro diagnostic test that is designed, manufactured, and used within a single laboratory.

－ 2 －

*2 CDMO:

Contract development and manufacturing organization

*3 Capillary electrophoresis sequencer:

Analysis instrument that analyzes DNA base sequences and base lengths in a short time, at relatively low cost. It is widely used in the medical and healthcare areas for analyzing individual DNA differences as well as in DNA identification in criminal investigations.

Net sales by destination

Year ended

Year ended

YoY

March 31, 2023

March 31, 2024

(Previous period

Amount

Percentage of

Amount

Percentage of

(Millions of yen)

total (%)

(Millions of yen)

total (%)

= 100)

Japan

59,832

14.6

62,184

13.5

103.9

Americas

105,905

25.8

118,782

25.7

112.2

EMEA

111,376

27.1

127,486

27.6

114.5

China

96,902

23.6

109,952

23.9

113.5

Asia Pacific

36,485

8.9

43,104

9.3

118.1

Overseas subtotal

350,669

85.4

399,325

86.5

113.9

Total

410,502

100.0

461,510

100.0

112.4

In Japan, sales of immunochemistry reagents fell due to a decline in demand for testing related to COVID-19, but sales of hematology, urinalysis and hemostasis instruments increased. As a result, sales in Japan were up 3.9% year on year, to ¥62,184 million.

Overseas, sales of instruments, reagents and maintenance services increased in the hematology field, as did sales of urinalysis and hemostasis reagents. This factor, plus ongoing yen depreciation, caused overseas Group sales to rise 13.9% year on year, to ¥399,325 million. The overseas sales ratio rose 1.1 percentage point, to 86.5%.

Selling, general and administrative (SG&A) expenses expanded 19.1%, to ¥133,798 million. Behind this rise were higher labor costs and greater investment in digitalization. R&D expenses increased 1.1% year on year, to ¥31,402 million.

As a result, during the fiscal year ended March 31, 2024, the Group recorded consolidated net sales of ¥461,510 million, up 12.4% year on year. Operating profit was up 6.4%, to ¥78,382 million; profit before tax increased 8.6%, to ¥74,600 million, and profit attributable to owners of the parent rose by 8.4%, to ¥49,639 million.

Performance by segment

(1) Japan

In Japan, sales of immunochemistry reagents fell due to a decline in demand for testing related to COVID-19, but sales of hematology, urinalysis and hemostasis instruments increased. As a result, sales in Japan were up 6.2% year on year, to ¥67,205 million.

On the profit front, performance was affected by higher SG&A expenses, but higher sales pushed up segment profit (operating profit) 13.2%, to ¥58,127 million.

(2) Americas

In North America, sales increased for hematology reagents, urinalysis reagents and maintenance services. In Central and South America, sales of instruments and reagents rose in the hematology and urinalysis fields. As a result, overall sales in the Americas grew 11.6% year on year, to ¥112,479 million. Segment profit (operating profit) up 39.6%, to ¥5,674 million, despite higher SG&A expenses, due to

increased sales.

(3) EMEA

In the EMEA region, the move to direct sales in Saudi Arabia contributed to performance. Also, sales of instruments, reagents, and maintenance services increased in the hematology field. Accordingly, sales in the EMEA region grew 14.0% year on year, to ¥129,137 million.

Segment profit (operating profit) fell 18.7%, to ¥6,819 million, despite an improvement in the cost of sales ratio, owing to higher SG&A expenses.

－ 3 －

(4) China

In China, against the backdrop of a recovery in testing demand and contributions from the localization of production, sales of instruments and reagents increased in the hematology field, as did sales of hemostasis reagents, pushing up sales for the region 13.4% year on year, to ¥109,797 million.

The cost of sales ratio deteriorated and SG&A expenses increased, causing segment profit (operating profit) to fall 21.2% year on year, to ¥7,852 million.

(5) Asia Pacific

Sales of instruments and reagents expanded in the hematology and hemostasis fields. As a result, sales in the Asia Pacific region rose 18.1% year on year, to ¥42,891 million.

Segment profit (operating profit) grew 18.3%, to ¥4,088 million, despite higher SG&A expenses, due to increased sales and an improved cost of sales ratio.

2) Financial conditions at end of the year

As of March 31, 2024, total assets amounted to ¥618,920 million, up ¥87,845 million from March 31, 2023. As main factors, trade and other receivables grew ¥30,747 million, property, plant and equipment expanded ¥14,587 million, and intangible assets were up ¥13,256 million.

Meanwhile, total liabilities as of March 31, 2024 were ¥186,023 million, up ¥43,305 million from March 31, 2023. Principal changes included long-term loans payable, which were up ¥28,600 million.

Total equity came to ¥432,897 million, up ¥44,540 million from March 31, 2023. Among principal reasons, retained earnings increased ¥31,793 million and other components of equity grew ¥23,889 million. Equity attributable to owners of the parent to total assets amounted to 69.8% on March 31, 2024, down 3.2 percentage points from 73.0% on March 31, 2023.

3) Cash flows during the year

As of March 31, 2024, cash and cash equivalents amounted to ¥75,507 million, up ¥6,047 million from March 31, 2023.

Cash flows from various activities during the fiscal year are described in more detail below. (Cash flows from operating activities)

Net cash provided by operating activities was ¥63,905 million, down ¥4,929 million from the previous fiscal year. As principal factors, profit before tax provided ¥74,600 million (¥5,887 million more than in the preceding year), depreciation and amortization provided ¥35,888 million (up ¥4,081 million), an increase in trade receivables used ¥21,987 million (up ¥19,007 million), and income taxes paid used ¥28,974 million (up ¥4,693 million).

(Cash flows from investing activities)

Net cash used in investing activities was ¥54,970 million (up ¥3,218 million). Among major factors, purchases of property, plant and equipment used ¥25,610 million (up ¥8,125 million), purchases of intangible assets used ¥24,581 million (down ¥439 million), and the purchase of investments in equity instruments used ¥4,026 million (down ¥1,162 million).

(Cash flows from financing activities)

Net cash used in financing activities was ¥9,013 million (down ¥15,220 million). This was mainly due to proceeds from long-term loans payable provided ¥29,000 million (up ¥29,000 million), dividends paid of ¥17,579 million (up ¥1,050 million) and ¥9,068 million in repayments of lease liabilities (up ¥1,108 million).

4) Outlook for future

In Japan, domestic demand is prompting a modest recovery, which is expected to drive positive trends such as higher wages and increased capital investment. Looking overseas, we expect a tighter financial environment in the United States to put downward pressure on economic activity in the corporate sector, particularly in manufacturing, resulting in a gradual slowdown. In Europe, the economy is slated to bottom out as inflationary pressures ease. In China, the economy is forecast to return to a period of stagnation due to a weak recovery in consumer spending and the protracted real estate recession. In addition, the Middle East and the Russia-Ukraine issue continue to present geopolitical risks, leading to overall uncertainty.

Looking at the healthcare environment, demand for higher healthcare quality and services is growing. Furthermore, artificial intelligence (AI), information communication technology (ICT) and other leading-edge technologies are rapidly being applied to the healthcare field. Rising healthcare demand in emerging markets, spurred by economic growth, is expected to sustain future growth. The global COVID-19 pandemic has also prompted considerations about healthcare systems and the potential for major changes in the healthcare environment itself. We anticipate further opportunities for growth, owing to increasingly diverse medical functions, improved access to healthcare, and the creation of new value in the area of self-medication.

Under these circumstances, in April 2023 the Sysmex Group commenced a new mid-term management plan (for the fiscal years ending March 31, 2024 to 2026). By promoting key actions during this period, we aim to

－ 4 －

achieve sustainable growth and strengthen the management foundation to support it.

Our consolidated operating forecast for the fiscal year ending March 31, 2025 calls for increased sales and profits as we expand our product lineup and reinforce our sales and service structure. We forecast net sales of ¥510,000 million, operating profit of ¥87,000 million, profit before tax of ¥82,500 million and profit attributable to owners of the parent of ¥55,000 million.

Note: Our assumptions for annual average exchange rates are US$1=¥147.0 and €1=¥158.0

The forecast outlined above is based on currently available information. Actual performance may differ from this forecast for a variety of reasons.

2. Basic perspective on selection of accounting standards

The Sysmex Group voluntarily adopted IFRS from the fiscal year ended March 31, 2017. Our aim is to increase convenience to shareholders and investors in Japan and overseas by enhancing the international comparability of our financial information in capital markets.

－ 5 －

3. Consolidated financial statements and notes

1) Consolidated statement of financial position

(Unit: Millions of yen)

As of

As of

March 31, 2023

March 31, 2024

Assets

Current assets

Cash and cash equivalents

69,460

75,507

Trade and other receivables

126,319

157,067

Inventories

73,310

79,123

Other short-term financial assets

875

1,310

Income taxes receivable

600

934

Other current assets

24,924

29,515

Total current assets

295,491

343,459

Non-current assets

Property, plant and equipment

102,106

116,693

Goodwill

16,842

17,221

Intangible assets

73,530

86,786

Investments accounted for using the equity method

92

472

Trade and other receivables

17,895

21,435

Other long-term financial assets

9,777

14,034

Asset for retirement benefits

614

458

Other non-current assets

3,842

4,339

Deferred tax assets

10,880

14,018

Total non-current assets

235,583

275,461

Total assets

531,074

618,920

－ 6 －

(Unit: Millions of yen)

As of

As of

March 31, 2023

March 31, 2024

Liabilities and equity

Liabilities

Current liabilities

Trade and other payables

31,678

33,602

Lease liabilities

7,149

8,659

Other current financial liabilities

3,537

1,028

Income taxes payable

14,662

12,476

Provisions

1,123

1,159

Contract liabilities

14,469

16,591

Accrued expenses

18,772

21,643

Accrued bonuses

11,360

12,611

Other current liabilities

8,348

10,311

Total current liabilities

111,102

118,084

Non-current liabilities

Long-term loans payable

－

28,600

Lease liabilities

15,442

18,080

Other non-current financial liabilities

305

76

Liability for retirement benefits

1,959

2,239

Provisions

398

674

Other non-current liabilities

7,059

10,350

Deferred tax liabilities

6,450

7,917

Total non-current liabilities

31,615

67,938

Total liabilities

142,718

186,023

Equity

Equity attributable to owners of the parent

Capital stock

14,282

14,729

Capital surplus

20,580

20,830

Retained earnings

334,192

365,985

Treasury stock

(314)

(12,315)

Other components of equity

18,925

42,814

Total equity attributable to owners of the parent

387,665

432,045

Non-controlling interests

690

851

Total equity

388,356

432,897

Total liabilities and equity

531,074

618,920

－ 7 －

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Sysmex Corporation published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 06:08:09 UTC.