Zoom : Financial results briefing material for Fiscal Year ended December 2021

Fiscal Year ended December

2021 (39th term)

Financial Results

Briefing

February 18, 2022

ZOOM Corporation

We're For Creators

I. FY 2021/12 financial results

FY 2021 financial results highlights

Sales and profit both remarkable grew YoY (Record high)

Net sales:	13,417 million yen (+2,998 million yen YoY, + 3.2% vs. forecast)
Operating income:	1,258 million yen (+	503 million yen YoY, +11.4% vs. forecast)
Ordinary income:	1,216 million yen (+	765 million yen YoY, +13.7% vs. forecast)

*The forecasts are figures disclosed on August 12, 2021.

・Sales and profit both grew YoY because of strong demand for our products due to changes in lifestyles with COVID-19 pandemic and to making HookUp a consolidated subsidiary in 2021.

・Achieved the performance target of the third medium-term business plan (2021-2023) in the first year: Consolidated operating income 1.2 billion yen.

■Full year

(Million yen)

14,000	Net sales			Operating profit	1,400	Ordinary profit
12,000			1,200
		1,400
10,000			1,200			1,000
8,000		13,417	1,000			800
6,000		800			600		1,216
10,419			1,258
4,000		600		400
		400	755		450
2,000			200			200
0	2020	2021	0	2020	2021	0	2020	2021
			© 2022 ZOOM CORPORATION. All rights reserved.			2

Consolidated income statement for FY 2021 (summary)

(millions of yen)

	Results for FY	Results for FY	Change		Remarks
	ended	ended
	Dec. 2020	Dec. 2021
				・Strong demand for our products
Net sales	10,419	13,417	2,998	・Secured the minimum required semiconductor parts
・Sales increased 1,098 million yen due to making
					HookUp a consolidated subsidiary
Gross profit	4,288	5,704	1,416	・Gross profit margin improved due to yen depreciation
(Gross profit margin)	(41.2%)	(42.5%)			and price increase of some products.
Operating profit	755	1,258	503	・Operating profit increased 75 million yen due to making
(Operating profit margin)	(7.2%)	(9.4%)			HookUp a subsidiary.
	450	1,216		• In the last year, non-operating expenses of 240 million
Ordinary profit	765		yen were recorded as share of loss of entities
(Ordinary profit margin)	(4.3%)	(9.1%)		accounted for using equity method, accompanying the
		filing by ZOOM UK Distribution Ltd. (ZUK) for
					administration under bankruptcy law.
Net profit attributable to owners	502	854		•	In the last year, 178 million yen in extraordinary gains
351		was recorded as gain on step acquisitions from fair-
of the parent
(4.8%)	(6.4%)		market valuation of the equity stake in ZOOM North
(Net profit margin)			America, LLC (ZNA) prior to making it a consolidated
				subsidiary.
EBITDA	823	1,666	843	EBITDA = Operating profit + * Depreciation + share of
profit/loss of entities accounted for using equity method
Depreciation	*315	*408	92	* Includes 181 million yen in amortization of goodwill (vs.
1,071	1,331	259	115 million yen in the previous year)
R&D expenses
Foreign exchange gains/losses	(20)	(7)	13
Average exchange rate (yen/USD)	106.8yen	109.8yen	+3.0yen
	© 2022 ZOOM CORPORATION. All rights reserved.	3

Net sales by product category FY 2021

	Other
Brands offered by Mogar
	24%
Brands offered by HookUp

HVR

High-quality sound 4K 6% camera for musicians.

PFR

HAR 37%

Your go-to handy recorder that can record professional sound with its advanced preamps and 6 interchangeable capsules, from podcasting to music to filmmaking and more.

7%

In the various fields, a field recorder that can capture both explosive and subtle sounds at full audio quality.

MFX 10%

DMX/MTR

16%

Live mixer and recorder that not only has good sound quality, but also allows you to play BGM, invite guests to appear on the phone, record podcasts, and mix live performances easily.

Multi-effects with expression pedal, which provides greatly expanded expressiveness for the guitar.

*Actual figure for FY 2021/12

© 2022 ZOOM CORPORATION. All rights reserved.

4