GSI Creos : Business Report for Fiscal 2021

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Business Report for

Fiscal 2021

From April 1, 2021 to March 31, 2022

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GSI Creos IR Information https://www.gsi.co.jp/en/ir.html

For more detailed information,
please visit our website.	Securities Code 8101

Message fro m t h e P r e s i dent and CEO

you all very much for your ongoing support Creos.

have completed our business operations Fiscal 2021, we would like to take this to provide you with a report on our

conditions.

2022 marks the first year of our three-year term management plan"GSI CONNECT and thus for the start of this new plan, we been carrying out a review of our group's business portfolio, redistributing our resources, and also concentrating initiatives that are aimed at the expansion of business fields, in order to develop

strengthen our business foundation.

result of these, in our business results for 2021, while there was a downturn in for medical and sanitary consumables, had notably contributed to our business in the previous fiscal year, there was

increase in our sales related to yarns and in Asia, and the sales of our Industrial Business related to semiconductors and As such, in terms of profits, our results mostly in line with the forecast that we

on May 14 last year.

the Fiscal 2021 dividend per share, we

made the amount ¥65*, which substantially marks an increase to ¥35 compared with the previous fiscal year.

In our mid-term management plan"GSI CONNECT 2024"(see Page 2 for details), we have set forth two challenges, which are"reaching a new record-high net profit"and"boosting the confidence within capital markets."During Fiscal 2022, toward the realization of these challenges, we shall work on strengthening our management foundation and further boosting our shareholder value and corporate value by promoting ESG management, which includes the cultivation and expansion of our businesses in the fields of "Environment,""Life & Health,"and"Energy,"at an accelerating pace while maximizing the strengths of our group.

We sincerely look forward to your continued support.

Tadaaki Yoshinaga

Representative Director,

President and CEO

*GSI Creos implemented a 2-for-1 stock split of common stock dated April 1, 2021, so compared with the Fiscal 2020 dividend per share of ¥30, which takes into consideration this stock split, the increase amount of the dividend was ¥35.

Report on Fisc al 2 0 2 1 Results
				Fiscal 2022 Result Forecast
Net Sales			Operating Profit				Net Sales
						¥117,000million
Fiscal 2020	Fiscal 2021		Fiscal 2020	Fiscal 2021
¥116,375million	¥111,829million	¥3,632million	¥2,008million			Operating Profit
		¥2,400million
Ordinary Profit			Profit Attributable to Owners of Parent			Ordinary Profit
				¥2,400million
Fiscal 2020	Fiscal 2021		Fiscal 2020	Fiscal 2021			Profit Attributable to
¥3,700million	¥1,882million	¥2,026million	¥1,638million			Owners of Parent
		¥1,700million

*GSI Creos applied"Accounting Standard for Revenue Recognition"(ASBJ Statement No.29), etc. at the beginning of Fiscal 2021. Therefore, in the case of net sales, comparisons with"Fiscal 2021"and"Fiscal 2020"are not made.

1

Results by S e g m e n t

T e x t i l e M a t e r i a l s B u s i n e s s

			Net Sales
						¥89,488million
		Fiscal 2020
		¥83,203million
Composition of Net Sales	Fiscal 2021
74.4%
	Operating Profit
		Fiscal 2020		¥2,894million
						¥645million
		Fiscal 2021
	Functional yarns & fabrics			Medical & sanitary
Sales	Sales
for innerwear, Fabrics for
Increase		Decrease	consumables
	outerwear

Industrial Products Business

Net Sales

Fiscal 2020	¥26,886million

		¥28,626million
Composition of Net Sales	Fiscal 2021
25.6%
Operating Profit
	Fiscal 2020	¥1,433million
		¥1,893million
	Fiscal 2021

Sales Semiconductor-related products, Chemical products & Increase other industrial materials, Hobby-related products

*GSI Creos applied"Accounting Standard for Revenue Recognition"(ASBJ Statement No.29), etc. at the beginning of Fiscal 2021. Therefore, in the case of net sales of each business, comparisons with"Fiscal 2021"and"Fiscal 2020"are not made.

O v e r s e a s S a l e s R a t i o

61.8％ year		Divided by Region		Asia	Americas		Europe and others		Japan
11.5pt		50.5％	8.1％		3.2％		38.2％
	Year-on-

Mid-term Management Plan "GSI CONNECT 2024"

Main Quantitative Targets (Fiscal 2024)

【Vision】		Net Sales			Operating Profit			to Owners of Parent
										Profit Attributable
Contributing to building sustainable societies by offering new		¥135,000			¥3,500			¥2,200
values in"Niche Fields"as a business-creating trading company
"Niche*	Fields"refers to"Fields of products and businesses in far-reaching target	million	million		million
business areas that may be of any market size, that are strong points of our
company, in which it is difficult for manufacturers to directly go on the offensive,
and in which we are unrivaled among competitors."		ROE			Equity Ratio		Dividend Payout Ratio
【Priority Measures】
	8.0～9.0%			40.0%			50.0%
2.	Enrichment of human resources and promotion of new ways of working
1.	Proactive investment in sustainable business fields
3.	Strengthening of highly effective governance systems

Based on the group slogan"Weave a New Story,"we shall strengthen group collaboration and aim for the achievement of targets.

2

Dividend Information (as of June 28, 2022)

Transition of dividend per share and dividend payout ratio

				¥65.0	¥70.0
¥17.5	¥20.0	¥22.5	¥30.0	48.9％	50.5％
24.7％	22.4％	28.2％	18.6％
FY2017	FY2018	FY2019	FY2020	FY2021	FY2022
					(Forecast)

*GSI Creos implemented a 2-for-1 stock split of common stock dated April 1, 2021, so the dividends per share are amounts calculated assuming that the stock split was carried out at the beginning of Fiscal 2017.

Directors and Executive Officers (as of June 28, 2022)

Directors
Representative Director,	Tadaaki Yoshinaga
President and CEO
Director,	Masateru Nakayama
Senior Managing Executive Officer
Director,	Fumihiro Onishi
Managing Executive Officer
Director,	Hiroki Nishimura
Managing Executive Officer
Outside Director	Kazunori Hattori

Director,	Yasushi Araki
Full-time Audit and Supervisory Committee Member
Outside Director,	Takafumi Hayano
Audit and Supervisory Committee Member
Outside Director,	Yoshie Kato
Audit and Supervisory Committee Member

Company Profile (as of March 31, 2022)

Company Name	GSI Creos Corporation
Head Office	2-3-1, Kudan Minami, Chiyoda-ku, Tokyo
Established	October 31, 1931
Capital	¥7,186 million
Employees	624 (Consolidated)
Offices	7 domestic 24 overseas
Consolidated Subsidiaries	8 domestic 8 overseas
Website	https://www.gsi.co.jp/en/index.html
	Stock Information (as of March 31, 2022)
Total number of shares authorized to be issued	40,000,000 shares
Total number of shares issued	12,629,942 shares
Number of shareholders		17,343
Executive Officers
Executive Officer		Kunihiro Ono
Executive Officer		Tsutomu Hada
Executive Officer		Yuichi Tamura
Executive Officer		Akinori Hamano
Executive Officer		Takashi Yanagisawa
Executive Officer		Daisuke Sato
Executive Officer		Tetsuya Mukai
Executive Officer		Motoya Nakamura
Executive Officer		Nobuyoshi Sekiya