Zoom : Supplemental Material for Financial Results Briefing for the 1st quarter of fiscal year 2022

FY2022/12 1Q

Supplemental Material for Financial Results Briefing

May 13, 2022

ZOOM CORPORATION

Note: Forward-looking statements included in this document have been prepared by the Company based on information currently available and based on certain assumptions considered reasonable. They involve inherent risks and uncertainties. Actual results may vary considerably because of various factors.

FY2022 1Q financial results highlights

Despite steady demand, sales and profits are down YoY due to reduced sales quantities resulting from the shortage of semiconductors

Net sales:	2,795 million yen ( -33 million yen YoY)
Operating profit:	-87 million yen (-433 million yen YoY)
Ordinary profit :	-57 million yen (-388 million yen YoY)

• Sales quantities decreased considerably due to a product supply shortage resulting from difficulty in procuring semiconductors.
• While sales decreased only slightly due to the consolidation of six months' profit and loss (for October 2021 - March 2022) from HookUp as a result of a change in the ending date of that company's fiscal year, operating profit and ordinary profit both decreased considerably YoY due to consolidation of six months' SG&A expenses and other expenses from HookUp as well. (* Hookup profit / loss is not consolidated in the previous 1Q.)

■1Q ■ Full year(Million yen)

				Net Sales
														Operating profit				Ordinary profit
	14,000	13,417			13,000																		1,300
											1,258
			(Projected)		1,300								1,216
	12,000														1,100													1,100
	10,000																										900
														900					700
																								650
																						(Projected)
	8,000														700									700					(Projected)
	6,000														500													500
	4,000														300													300
																346								331
	2,000														100					▲ 87				100			▲ 57
	2,829			2,795
	0							▲ 100													▲ 100
														2021			2022						2021			2022
	2021				2022

© 2022 ZOOM CORPORATION. All rights reserved.

1

Consolidated income statement for FY2022 1Q (summary)

(Million yen)

		FY 2021/12	FY 2022/12	Change	Remarks
		1Q results	1Q results
					- Despite steady demand for Company products,
					sales quantities decreased due to the global shortage of
	Net sales	2,829	2,795	-33	semiconductors
	consolidated HookUp's profit and loss for six month (from
					- Because of the change in the accounting period,
					October 2021 to March 2022), and the sales slightly
					decreased
	Gross profit	1,248	1,032		- While the share of North America, where gross profit
	-216	margin is high, decreased, the share of sales of HookUp,
	(Gross profit margin)	(44.1%)	(36.9%)	which has a relatively lower gross profit margin,
					increased
	Operating profit	346	-87	-433	- In addition to the above, consolidation of the income
	statement of HookUp beginning in 2Q of the previous
	(Operating profit margin)	(12.2%)	(-3.1%)
		year resulted in a YoY increase in SG&A expenses
	Ordinary profit	331	-57	-388	- Foreign exchange gains of 26 million yen were recorded
	(Ordinary profit margin)	(11.7%)	(-2.0%)	due to the devalued yen
	Quarterly net profit attributable to	201	-60	-261
	owners of the parent
	(7.1%)	(-2.2%)
	(Quarterly net profit margin)
	EBITDA	446	15	-430	EBITDA = Operating profit + * Depreciation
	Depreciation	*	*	2	* Includes 47 million yen in amortization of goodwill (vs.
		44 million yen in the previous year)
	R&D expenses	99	102
	264	230	-33
	Foreign exchange gains/losses	-3	26	29
	Average exchange rate (yen/USD)
	105.8 yen	116.2 yen	+10.4 yen

© 2022 ZOOM CORPORATION. All rights reserved.

2

Components of FY2022 1Q net sales (graph)

Net sales by product category

net sales by region

• The share of "Other" increased as six months' sales of HookUp were consolidated due to a change in the ending date of that company's fiscal year

HAR 24%

Others

12%

Central Europe *2

5％

• Japan's share increased as six months' sales of HookUp were consolidated due to a change in the ending date of that company's fiscal year

Others

Japan

44%

DMX/MTR

10%

MFX

Southern Europe *1

17%

37%

HVR PFR 9%

5% 8%

North America

29％

Category

HAR: Handy Audio Recorders

DMX/MTR: Digital Mixers/Multi Track Recorders

MFX: Multi-Effects

PFR: Professional Field Recorders

HVR: Handy Video Recorders

Others: Brands offered by Mogar, brands offered by HookUp and others

*1.Southern Europe includes Italy, France, Spain, and Portugal

*2.Central Europe includes Germany, the UK, the three Benelux states, Austria, Poland, the Czech Republic, Slovakia, the three Baltic states, and other countries

© 2022 ZOOM CORPORATION. All rights reserved.

3

FY2022 1Q net sales by product category

With the exceptions of some categories, sales decreased due to a product supply shortage resulting from difficulty in procuring semiconductors

					(Million yen)
		FY 2021/12	FY 2022/12	Change	Main factors behind changes in net sales
		1Q results	1Q results
		(share)	(share)
	Handy Audio Recorders	1,203	678		- Reduced shipments due to inventory adjustments by dealers in Central
	-525	Europe and China
	(HAR)	(43%)	(24%)	- Supplies of some products are short due to difficulty in procuring
					semiconductors
	Digital Mixers/Multi Track Recorders	540	285	-255	- Product supplies are short due to difficulty in procuring semiconductors,
	(DMX/MTR)	(19%)	(10%)	mainly for the L-Series
	Multi-Effects	288	246	-42	- Product supplies are short due to difficulty in procuring semiconductors,
	(MFX)	(10%)	(9%)	mainly for the G1 Four-Series
	Professional Field Recorders	179	232	53	- Effects of new products from the F2/F2-BT, F3, and F8n Pro
	(PFR)	- Product supplies are short for some products due to difficulty in
	(6%)	(8%)		procuring semiconductors
	Handy Video Recorders	188	148	-40	- Down YoY as a rebound from rapid growth in demand for uses such as
	(HVR)	web conferencing as working from home spread due to COVID-19 in the
	(7%)	(5%)		same period last year
		265	173		- In addition to product supply shortages for some products due to
	Others	-92	difficulty in procuring semiconductors, sales decreased as a rebound from
	the effects of new products from the AM7 and ZDM-1PMP in the same
		(9%)	(6%)		period last year
	Brands offered by Mogar	162	191	28	- Demand recovered in southern Europe due to progressive normalization
	of economic activities after COVID-19
		(6%)	(7%)
		-	839		- HookUp's results are included in the consolidated income statement
	Brands offered by HookUp	839	beginning with 2Q of the previous consolidated fiscal year
	- Six months' sales were consolidated due to a change in the ending date
		(-)	(31%)		of the fiscal year of HookUp
	Total	2,829	2,795	-33

© 2022 ZOOM CORPORATION. All rights reserved.

4