Zojirushi : Consolidated Financial Results for the Six Months Ended May 20,2022

Consolidated Financial Results for the Six Months Ended May 20, 2022 [Japanese GAAP]

July 1, 2022

Company name: Zojirushi Corporation

Stock exchange listing: Tokyo Stock Exchange

Securities code: 7965

URL: http://www.zojirushi.co.jp

Representative: Norio Ichikawa, Representative Director, President and Corporate Officer

Contact: Shigehisa Okamoto, Corporate Officer and General Manager, Accounting Department

Phone: [phone]

Scheduled date of filing quarterly report: July 4, 2022

Scheduled date of commencing dividend payments: July 29, 2022

Availability of supplementary explanatory materials on quarterly financial results: Available

Schedule of quarterly financial results briefing session: None

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Six Months Ended May 20, 2022 (November 21, 2021 to May 20,

2022)
(1) Consolidated Operating Results (cumulative)	(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit	Ordinary profit	Profit attributable to
				owners of parent
	Six months ended	Million yen	%		Million yen	%	Million yen	%	Million yen	%
	May 20, 2022	45,247	-		4,844	-	5,593	-	3,673	-
	May 20, 2021	42,504	6.7		4,841	55.0	4,787	54.0	3,075	51.3

(Note) Comprehensive income: Six months ended May 20, 2022: ¥5,445 million [-%] Six months ended May 20, 2021: ¥4,349 million [151.7%]

	Basic earnings	Diluted earnings
	per share	per share
Six months ended	Yen	Yen
May 20, 2022	54.31	-
May 20, 2021	45.49	-

(Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and related standards from the beginning of the first quarter of the fiscal year ending November 20, 2022, and therefore changes from the previous corresponding period prior to the application of these accounting standards are not shown.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of May 20, 2022	106,936	80,971	75.1
As of November 20, 2021	101,913	76,837	74.8

(Reference) Equity: As of May 20, 2022: ¥80,268 million

As of November 20, 2021: ¥76,224 million

(Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and related standards from the beginning of the first quarter of the fiscal year ending November 20, 2022, and therefore the figures for the six months ended May 20, 2022 show the amounts after the application of these accounting standards.

2. Dividends

				Annual dividends
		1st		2nd		3rd	Year-end		Total
		quarter-end		quarter-endquarter-end
Fiscal year ended		Yen		Yen		Yen	Yen		Yen
	-	15.00			-	19.00	34.00
November 20, 2021
Fiscal year ending		-	17.00
November 20, 2022
Fiscal year ending
November 20, 2022							-	17.00	34.00
(Forecast)

(Note) Revision of the dividend forecast announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 20, 2022 (November 21, 2021 to November 20, 2022)

(% indicates changes from the previous fiscal year.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
			per share
							parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	81,500	-	5,000	-	6,000	-	4,000	-	59.14

(Note 1) Revision of the financial results forecast announced most recently: None

(Note 2) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and related standards from the beginning of the first quarter of the fiscal year ending November 20, 2022, and therefore the financial results forecast above shows the amounts after the application of these accounting standards. Accordingly, changes from the previous corresponding period are not shown.

* Notes:

1. Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: - (Name) -
   Excluded: - (Name) -
2. Accounting methods adopted particularly 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
5. Total number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares):

May 20, 2022:	72,600,000 shares
November 20, 2021:	72,600,000 shares
2) Total number of treasury shares at the end of the period:
May 20, 2022:	4,944,721 shares
November 20, 2021:	4,968,791 shares
3) Average number of shares during the period (cumulative):
Six months ended May 20, 2022:	67,638,081 shares
Six months ended May 20, 2021:	67,617,766 shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes

Forward-looking statements, such as performance forecasts, made in this document are based on information currently available to the Company and certain assumptions deemed reasonable, and the Company does not in any way guarantee the achievement of the projections. Actual results, etc., may differ significantly due to various factors.

Table of Contents - Attachments
1. Qualitative Information on Financial Results for the Period under Review ........................................	2
(1)	Explanation of Operating Results ...................................................................................................	2
(2)	Explanation of Financial Position ...................................................................................................	3
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Statements	4
2. Quarterly Consolidated Financial Statements and Principal Notes .....................................................	5
(1)	Quarterly Consolidated Balance Sheets ..........................................................................................	5
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ..................................	7
(3)	Quarterly Consolidated Statements of Cash Flows .........................................................................	9
(4)	Notes to Quarterly Consolidated Financial Statements .................................................................	10
	(Notes on going concern assumption) ......................................................................................	10
	(Notes when there are significant changes in amounts of equity) ............................................	10
	(Changes in accounting policies) ..............................................................................................	10

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1. Qualitative Information on Financial Results for the Period under Review

1. Explanation of Operating Results
   During the period under review (November 21, 2021 to May 20, 2022), the recovery of the global economy slowed due to negative factors such as the spread of the Omicron variant of COVID-19 and Russia's invasion of Ukraine. The global economic outlook is expected to remain highly uncertain as the risk of China's zero COVID policy is becoming apparent, in addition to increasing inflationary pressure and restrictions on the procurement of raw materials and parts.
   Amid such management environment, the Group entered the final fiscal year of its new two-year medium- term plan, ADAPT Phase II, that accounts for the new normal, and has worked on horizontal expansion of domains, vertical expansion of domains, and a stronger management platform in order to develop Zojirushi from the current brand of household products into a food and lifestyle solution brand.
   For the period under review, the Group's net sales increased by ¥2,742 million year on year to ¥45,247 million (¥42,504 million for the same period a year earlier). Net sales by product category also increased year on year in cooking appliances, household and thermal products, and household appliances. On a consolidated basis, domestic net sales amounted to ¥27,368 million (¥27,005 million for the same period a year earlier) and overseas net sales amounted to ¥17,878 million (¥15,499 million for the same period a year earlier), resulting in overseas net sales making up 39.5% of net sales. Outside of Japan, net sales increased year on year in China, which is the mainstay market, North America, Taiwan, and Southeast Asia.
   As for profits, the Company recorded operating profit of ¥4,844 million (¥4,841 million for the same period a year earlier) due to increased net sales and a decrease in selling, general and administrative expenses. Ordinary profit was ¥5,593 million (¥4,787 million for the same period a year earlier), and profit attributable to owners of parent was ¥3,673 million (¥3,075 million for the same period a year earlier).
   From the beginning of the first quarter of the fiscal year under review, the Group has applied the Accounting
   Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020; hereinafter, "Revenue Recognition Standard") and related standards. As a result, the accounting treatment of revenue for the period under review is different from that for the same period a year earlier. Therefore, year-on-year percentage changes are not presented in the explanation of operating results above. For details on the impact of the application of the
   Revenue Recognition Standard and related standards on financial position and operating results, see "Changes in accounting policies" in "(4) Notes to Quarterly Consolidated Financial Statements" under "2. Quarterly
   Consolidated Financial Statements and Principal Notes."
   Business results by product category were as follows.

1. Cooking appliances
   Net sales of cooking appliances amounted to ¥32,876 million (¥30,903 million for the same period a year earlier). In Japan, overall sales of rice cookers/warmers remained almost unchanged year on year, despite continued strong sales of the Embudaki series, the highest grade of induction heating pressure rice cookers which reproduces heat from swaying flame of traditional cooking stoves. Electric kettles recorded strong sales due in part to the expansion of the market. Sales of electric cooking appliances declined year on year owing to declined sales of electric griddles, toaster ovens, and other products for which demand had been strong, due partly to the
   softening of demand for at-home consumption caused by the spread of COVID-19.
   Overseas, sales of rice cookers/warmers, electric pots, and electric cooking appliances were strong in the North American, Chinese, and Taiwanese markets. Especially in the North American market, sales of cooking appliances were strong as the economy was recovering and demand for at-home consumption continued.
2. Household and thermal products
   Net sales of household and thermal products amounted to ¥9,331 million (¥9,231 million for the same period a year earlier).
   In Japan, sales increased year on year. Stainless-steel products led the sales, thanks in part to the launch of

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