(Reference Translation)

Financial Results Briefing
for the Fiscal Year ended March 2021

May 27, 2021
Securities Code: 7247
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

Financial Results Briefing
May 27, 2021 Thursday 14:00-15:00 at Mikuni Building

Agenda
1. Consolidated Financial Results for the Fiscal Year ended
March 31, 2021
Hideki TAKAHASHI
Director, Senior Executive Officer, CFO(15 minutes)

２．Outline of the Mid-term Vision
Hisataka IKUTA
President, CEO & COO(15 minutes)

３．Q&A session(30 munites)
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

2

Consolidated Financial Results
for the Fiscal Year ended March 31, 2021

Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

3

FY ended March 31,2021

Mikuni's Business Segments
Net Sales and Composition Ratio
by Business Segment

2%

Other Business

Automotiverelated Products

69%

Welfare vehicles, nursing care equipment and consumer products

Turf-Care
Equipment

3%

Sales of Turf-care equipment etc.

Aircraft Parts
Import and Sales空Precision forged products, etc.

Turf- Others
Care 1,788

2,568≫ for Four-wheelers
AUTOMOBILE

19% 16,441 CONSOLIDATED
Aircraft

House

Household Appliances
Device Products

5,818

7%
Safety shut-off devices for gas
appliances, gas control devices andother various flow control devices

Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

SALES
86,962 MILLION
YEN≫ for Two-wheelers
MOTORCYCLE

Automotive

60,345

Electronic Fuel Injection Systems

Carburetors, Pumps

4

FY ended March 31,2021

Financial Highlights

FY ended March 2021 (April 2020 - March 2021)
Net sales down 21.3%, but operating income and ordinary income remain in the black.
• The rapid decline in demand due to the spread of COVID-19 bottomed out in the second quarter.
• Profit level exceeded the forecast due to the effect of reduction of COGS（cost of goods sold）and
fixed costs.

OPERATING RESULTS BY SEGMENT (Year-on-Year changes)
Automotive Products Business (decrease in sales and profit)• Demand for products for automobiles and motorcycles recovered after the summer following a sharp
drop.
• In India, after the lockdown was lifted, sales were very favorable mainly for products for motorcycles thatcomply with exhaust gas regulations, and earnings were significantly higher than the previous year.
Household Appliances Device Products Business (sales flat, operating loss narrowed)• As a result of reviewing the product strategy, operating loss decreased while sales remained flat.

Aircraft Component Import and Sales Business (decrease in sales and profit)• Sales and profits decreased due to a significant drop in air passenger demand.
Turf-Care Equipment, etc. Sales Business (decrease in sales, operating loss narrowed)• Sales decreased due to reluctant capital expenditure by customers, but operating loss decreased due toa review of the product mix.

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5

FY ended March 31,2021

Summary of Income Statement
Year-on-Year
ChangeFY2022
Forecast

FY2019FY2020Ordinary income

110,499
2,410
1,858

86,962569
597(23,537)(1,840)(1,261)

84,4003,000
2,200

Net income attributable toowners of the parent(4,014)

(125)

3,889

800

Net income per share (yen)(119.30)
10.00(3.73)
5.00

115.57(5.00)

23.82
10.00

Average rate for the period

109.03106.76Year-end

109.56103.50(Millions of yen)

Net sales
Net sales operating income

Dividend per share (yen)Exchange rate against the U.S.
dollar (yen)(Assumed rate
for the full year:
US$ = 108 yen)

(Note) 1. Amounts less than one million yen are discarded.
2. Annual dividend of 5.00 yen for FY2020 will be proposed at the ordinary general meeting of shareholders to be held on
June 29, 2021.
3. In order to apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) from the beginning of the
fiscal year ending March 31, 2022, the above consolidated earnings forecasts are forecasts after applying the AccountingStandard.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

6

Net Sales and Operating Income
by Business Segment

FY ended March 31,2021

Net Sales and Operating Income by Business Segment (FY2019 and FY2020)
FY2019Operating
Income(Operating(Sales ratio)
income ratio)
Net Sales(Millions of Yen)

Automotive
Products
HouseholdAppliances
Aircraft
Component
Turf-Care
Equipment

Other Business

Total

Changein Net Sales

FY2020Operatingincome(Operating(Sales ratio)
income ratio)

Change in Operating
IncomeNet Sales

70,2002,736

60,345

772

63.5％

3.9％

69.4％

1.3％

5,819

(345) )

5,818

(221)

5.3％

―

6.7％

（―）

28,733346

16,441

190

26.0％

1.2％

18.9％

1.2％

3,462

(386)

2,568

(169)

3.1％

―

3.0％

（―）

2,284

59

1,788

(2)

2.1％

2.6%

2.1％

（―）

110,499

2,410

86,962569

2.2％

AmountRatio

AmountRatio(9,855) (14.0)％ (1,963) (71.8)％(0)(0.0)％(12,292) (42.8)％124―(156) (45.1)％(893) (25.8)％216―(495) (21.7)％

(61)

―

(23,537) (21.3)％ (1,840) (76.4)％

0.7％(Note) Amounts less than one million yen are discarded.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

7

Forecast for the FY ending March 31, 2022

Net Sales and Operating Income
by Business Segment

Net Sales and Operating Income by Business Segment (FY2020 and FY2021)
FY2020Operating
Income(Operating(Sales ratio)
income ratio)
Net Sales(Millions of Yen)

Automotive
Products
HouseholdAppliances
Aircraft
Component
Turf-Care
Equipment

Other Business

Total

Changein Net Sales

FY2021 Est.
Operatingincome(Operating(Sales ratio)
income ratio)

AmountNet Sales

60,345772

69,000

2,660

69.4％

1.3％

81.8％

3.9％

5,818

(221)

7,100

30

6.7％

―

8.4％

0.4％

16,441

190

1,700

160

18.9％

1.2％

2.0％

9.4％

2,568

(169)

4,200

60

3.1％

―

5.0％

1.4％

1,788

(2)

2,400

90

2.1％

―

2.8％

3.8％

86,962569

84,400

3,000

0.7％

Change in Operating
IncomeRatio

Amount

Ratio

8,654

14.3％

1,887

244.2％

1,282

22.0％

251

―

(14,741) (89.7)％(30) (15.8)％

1,631

63.5％

229

―

611

34.2％

92

―

(2,562)(2.9)％

2,430

427.0％

3.6％（Note)1. Amounts less than one million yen are discarded.
2. Adoption of "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. from the FY ending March 2022 (Changes in net sales are for reference only)
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

8

Transition of Quarterly Net Sales
and Operating Income

FY ended March 31,2021

35,000Net Sales

30,000■Automotive Products Business ■Household Appliances Device Products Business■Aircraft Parts Import and Sales Business ■Turf-Care Equipment Sales Business■Other Business
31,706 30,789
29,13729,046 30,261
27,252 27,132 26,977

25,000(Millions of yen)

26,216
22,843

19,61520,00018,28515,00010,0005,000

Operating Income (loss)

0
2,000
1,500
1,000

1,469

1,197
755

668

555
140

500
0

1,484

1,045

980

(286)

522
(1,151)(500)(1,000)(1,500)18年1Q 2Q2018
18年2Q 3Q2018
18年3Q 4Q2018
18年4Q 19年1Q
19年3Q 4Q2019
19年4Q 1Q2020
20年1Q 2Q2020
20年2Q 3Q2020
20年3Q 4Q2020
20年4Q
1Q2018
1Q2019 19年2Q
2Q2019 3Q2019

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9

FY ended March 31,2021

Analysis of Changes in Operating Income (YoY)(Millions of yen)
FY2019Operating
Income2,410
SG&A
expensesdecreased
1,178(1,000)COGS
reduction
Production
efficiency
improved
887(2,000)Net sales decreased(4,628)(3,000)

Others192

FY2020Operating
Income569

R&D expenses
decreased
854
Depreciation
increased(29)

Impact ofexchange rate
fluctuations(295)(1,840)(Note) The figures inside the parentheses indicate negative values.
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10

FY ended March 31,2021

Summary of Balance Sheet(Millions of yen)

End of March
2020

End of March
2021

Changein amount

Current assets

43,17846,474

3,295

Fixed assets

47,21747,417

199

Total assets

90,396

93,891

3,495

Current liabilities

31,206

31,218

11

Fixed liabilities

32,462

34,276

1,814

Net assets

26,72628,396

1,669

Total liabilities and net
assets90,396

93,891

3,495

Shareholders' equity ratio

28.6％

29.4％

―

767.72Yen

822.12Yen―

Net assets per share(Note) Amounts less than one million yen are discarded.

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11

Transition of Cash FlowFY ended March 31,2021

In addition to the 5.4 billion yen positive cash flow attributable to income statement (profit +depreciation), the negative investment cash flow narrowed due to reduced capital expenditures andthe sale of shares. Despite a decrease in operating cash flow due to an increase in inventory, thecompany managed to keep free cash flow negative to 2.5 billion yen.
(Millions of yen)
10,000
5,611
5,000

9,423
5,185

4,630

5,121
2,389

0

(1,485)

(85)

(116)
(4,746)(2,876)(3,812)(5,270)318(6,607)(6,997)△(5,000)
5,000(2,558)(4,680)△(10,000)
10,000FY20152015年度FY20162016年度FY20172017年度Cash flows from

営業C/F
operating activities
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

FY20182018年度Cash flows from
投資C/F

investing activities

FY20192019年度FY20202020年度Free cash flow
フリーキャッシュ

12

FY ended March 31,2021

Transition of R&D Expenses

The actual R&D expenses for FY2020 were 5.08 billion yen against the projected amount of
5.3 billion yen. Continuing activities to improve development efficiency resulted in a decreaseof 0.8 billion yen from the previous fiscal year.
％(Millions of yen)
7,000

6,019

6,000
5,000

4,322

4,831

5,281

5,500
5,081

9.0
8.0

4,000
7.4

3,000
2,000

10.0

5,935

7.0

7.6

7.5

7.2

6.8

7.0
6.0

6.2

1,000

5.0

0

4.0
2015年度FY2015実績

2016年度FY2016実績

2017年度FY2017
実績

R&D expenses

2018年度FY2018

研究開発費（連結）(consolidated)実績

2019年度FY2019実績

2020年度FY2020実績

2021年度FY2021
予想(Est.)

Ratio to net sales
対売上高比率(Note) The above net sales do not include the net sales of the aircraft component import and sales business, the turfcare equipment sales business, and other businesses.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

13

FY ended March 31,2021Transition of Depreciation and Capital Expenditures

In addition to the fact that capital expenditure was pushed back due to the COVID-19 pandemic,
the entire Group assessed investment efficiency, timing, and priority from the perspective of cash
conservation, and as a result, capital expenditure for FY2020 was -55% compared to the previous
fiscal year, which was within the scope of depreciation.
(Millions of yen)
8,000

7,411

7,364

7,000
5,872

6,000
5,000

5,855

5,434

4,343

5,300
4,238

4,387

4,338

4,621

4,900

4,651

4,000

3,284

3,000
2,000
1,000
0
2015年度FY20152016年度FY20162017年度FY20172018年度FY20182019年度FY20192020年度FY2020

実績

実績

実績

実績

実績

実績

Depreciation
減価償却費
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

2021年度FY2021
予想(Est.)

Capital Expenditure
設備投資

14

FY ended March 31,2021

Transition of Interest-Bearing Debt and Debt-to-Equity Ratio

Interest-bearing debt increased by 2.9 billion yen due to the negative free cash flow. Net debtto-equity ratio increased to 1.2 times.

(Times)(Millions of yen)
40,00036,5002.0

33,62730,00029,601

31,26330,027
1.5

26,40520,0000.9

0.7

FY20152015年度

1.0

0.9

10,000

0

1.2

1.1

FY20162016年度FY20172017年度Interest-Bearing Debt
有利子負債残高

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0.7

FY20182018年度

0.5

FY20192019年度FY20202020年度

0.0

D/Eレシオ(ネット)
Debt-to-Equity Ratio (Net)15

Transition of Capital Ratio

FY ended March 31,2021

Although there were losses and dividends for the fiscal year, as well as the depreciation of local
currencies (which reduced the value of assets and liabilities of overseas subsidiaries), net assets
increased due to the rise in the share prices of listed stocks held by the company, and the equity
ratio rose.
40.0%

36.0%
33.1%

32.8%

35.0%

31.0%
30.0%

28.6%

29.4%

March, 20202020年3月

March, 2021
2021年3月

25.0%

20.0%

March,
2016
2016年3月

March,
20172017年3月

Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

March, 20182018年3月

March, 20192019年3月

16Mid-term Vision

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17

The revised “Vision2023 Final STAGE”
Changes from the Previous Plan
◼ Responding to the movement toward solving global social issues➢ Strengthen specific initiatives for climate change anddigitalization◼ Review market trend forecasts after the COVID-19 pandemic➢ Re-establishment of quantitative management targets

FY2019-23

2 nd STAGE
FY2016-18
1st STAGE
FY2013-15(The power to break through and pride)
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18

Long-term Environmental VisionCorporate Philosophy
With a global perspective, Mikuni will contribute to the realization of an affluent society bymaking full use of our human resources and technology.

Long-term Environmental Vision
We will continue to be a valuable entity in solving the environmental issues of countries,
regions, and customers.

2050

2030
Toward the achievement of the Paris Agreement and SDGs

Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

Toward the Carbon Neutral

19

Initiatives to Contribute the SDGs
We will realize a cycle of improving the sustainability of the earth and society, as
well as our own development, by carrying out activities in accordance with our
corporate philosophy.
Three goals that are closely related to our business activities

Targets to be focused on
◼
◼
◼
◼
◼

Strengthen R&D capabilities
Environmentally friendly manufacturing with clean technology
Increasing the efficiency of resource use
Improving knowledge and capabilities to cope with climate change
Reduce emissions of chemical substances and waste throughout the
product life cycle

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20

Initiatives for Carbon Minimizationin Production Plants
Energy-efficient factories

Fuels with low CO2
emission factors

Reduction of GHG(Greenhouse Gases)

Use of Renewable Energy

LNG storage facility in
Efforts to increase CO2
Kikugawa plant (Shizuoka absorption
Prefecture)

to Our Customers
Through our business activities, we contribute to improving the environmental performance ofthe products that our customers provide to society.
Automotive-related
Products

HouseholdAppliances
DeviceProducts

Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

Aircraft Component
Import and Sales

Turf-Care Equipment, etc.
Sales

Life & Support

21

Strategies
Three key drivers of growth in business strategy, regional strategy, andHR strategy
1. Optimal allocation of firm resources (people, goods, and money)
2. Improve competitiveness3. Promotion of human capital management

Promotion of business strategy (5 business domains)
Promotion of regional strategies(5 regions)

Automotive-related
Products

Europe andthe Americas

Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

HouseholdAppliances
DeviceProducts

Greater
China

India

Aircraft Component
Import and Sales

Turf-Care
Equipment, etc.
Sales

Life & Support

Japan

Europe andthe Americas

ASEAN

22

Automobiles:
Market Trends, Environmental Regulations, and Forecast for Electrification◼ After the coronavirus disaster, the annual sales volume will not recover to 90
million units until 2023 or later.
◼ Stricter environmental regulations will be enforced worldwide, and the ratio ofelectric vehicles will exceed 60%.

Pure
ICE

Source:

出典：IHS
Markit 2020秋季ブリーフィングデータをベースに作成
Prepared based on IHS Markit Fall 2020 Briefing Database.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

23

Motorcycles:
Market Trends, Environmental Regulations, and Forecast for Electrification◼

After the corona virus disaster, demand will expand mainly in India, and theglobal motorcycle production volume will increase to 62 million units in 2030.

◼

Environmental regulations will be tightened in each country and region, but
progress in electrification will be slow.

Source:Current
Status and世界二輪産業の現状と将来展望
Future Prospects of the Global
出典：FOURIN
Motorcycle Industry (FOURIN)

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24

Optimal Allocation of Firm Resources
Allocate firm resources (people, goods, and money) from the perspective of
total optimization

Product
development
for Indian
motorcycles

Stars

Question marks

Increased production
for growing markets
Need for new capital
expenditure

Aiming toincrease market
share

Cash

Cash

Small lots,
unprofitableNot expected to grow

Secure stable profits
No need for new capital
expenditure
Cash cows

Withdrawal or scale down

Dogs

High ← Market growth rate → Low

Product
development
for EVs

Large ← Relative market share → Small
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25

Turning electrification into a business opportunity (products for automobiles)

Actively invest management resources in the strategic development of
products that utilize Mikuni's elemental technologies for electric vehicles.

Motor Battery Inverter Charging system
Coolant Circulation Electronic Water Pump**Supplied by Pierburg Mikuni Pump Technology Corporation.

Motor Battery Inverter
Coolant Control Electronic Valve

E-MotorElectronic Parking
Lock ACT for e-Axle

Electric Vacuum Pump for
generating negative pressure
for brake system

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Acceleration Pedal Module
for EVElectric PT and e-Axle
lubrication and coolingElectronic Oil Pump
26

Enhancing our presence in the market (products for motorcycles and marine products, etc.)
Improving environmental performance of motorcycle and marine products aroundthe world by introducing Mikuni's technologies and further enhancing our presencein the market.
Air Intake Module
for outboard
engines

Variable Valve Timing forlarge motorcycles andoutboard engines

Electronic Throttle Bodies
for large motorcycles

Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

FI System forsmall motorcycles

27

Sales Forecast for Automotive Products Business
Automotive-related
Products(Millions of yen)
80,000四輪車用製品79,60072,13770,20069,00060,34560,000

Products forMotorcycle andMarine Products, etc.
40,00020,000

Products for
Automobile0
2018年度FY20182019年度FY20192020年度FY20202021年度FY2021

2023年度FY2023

実績

実績

実績

Est.
予想

Target目標

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28

Mid-term Vision（KGI/KPI)

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29

Targets of the Mid-term Vision
FY2023

Net Sales
Operating Income
Profit Margin: 95 billion yen: 5 billion yen: 5.0% or higher

Operating income（Millions of yen）

5,000

4,403
3,000
2,410
569

Net sales
Figures based on the application of the accounting standard for revenue recognition retrospectively to FY2018.

95,000（Millions of yen）
84,60084,40080,30069,400FY20182018年度FY20192019年度FY20202020年度

実績

実績

実績

Automotive-

自動車関連品事業
related ProductsHousehold Appliances

生活機器関連品事業
Device Products

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FY20212021年度Aircraft Component

FY2023
2023年度

Est.
予想

航空機部品輸入販売事業
Import and Sales

Target目標

Turf-Care Equipment,

芝管理機械等販売事業
etc. Sales

Others
その他

30

Net Sales by Region
The automotive related business in India will be the driving force for growth of theentire Mikuni Group.
Figures based on the application of the accounting standard for revenue recognition retrospectively to FY2018.

India

95,000（Millions of yen）

84,40084,60080,300

India

7%
84.6
billionyen

ASEAN

69,400Greater
China
Europe andthe Americas

Japan

FY2019FY2020Europe and the Americas

Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

FY2021

FY2023Est.

TargetGreater China

ASEAN

India

53%

FY2023

17%

Japan
95
billionyen

ASEAN

FY2018Japan

10 billion yen increase from India
India

Japan

FY201844%

Greater
China

Europeand theAmericas31

Financial Strategy: Maintain a Sound Financial Position
Recover capital ratio and debt-to-equity ratio to appropriate levels

Capital ratio
33% or higher
Own capital

Net D/E ratio
less than 0.9

Capital ratio（Millions of yen）

Interest-bearing debt
40.0%

31,00030,00025,841Net D/E ratio（Millions of yen）
40,0001.60

27,560

33.0%

35.0%

36,56730,00033,62720,00028.6%

Net asset

1.10

30,0001.20

32,0001.40
1.20
1.00

30.0%

29.4%

28,39620,0000.90
0.80

26,727
10,000

25.0%

0.60

10,000

0.40
0

20.0%

FY2019FY2020

FY2023
TargetCopyright(c) 2021 MIKUNI CORP. All Right Reserved.

0

0.20

FY2019FY2020

FY2023
Target32

Financial Strategy: Allocate Funds to Invest for Growth
Investment in research stage shall be kept at a certain level. Improve the efficiency
of development activities for mass production. And increase the ratio of investment
in advanced development.
Capital Expenditure and Depreciation（Millions of yen）
8,000

7,411

（Millions of yen）
7,364

Depreciation
Capital Expenditure

6,000

5,300
4,338

R&D Expenses

4,621

4,651

6,019
6,000

5,935
5,081

5,500

4,900
4,000

4,000

3,284

2,000

2,000

0

0

FY2018FY2019Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

FY2020

FY2021FY2018FY2019FY2020

FY2021

-2023

-2023

Average

Average33

Disclaimer
1. This document has been prepared on a consolidated basis.
2. This document summarizes the financial results and earnings forecasts that have alreadybeen announced, and is provided solely for the purpose of providing information toinvestors, and is not intended as a solicitation to buy or sell.
3. The forward-looking statements, including earnings forecasts, contained in this document
are based on information available as of the date of the announcement, and actual
results may differ from these forecasts due to various factors.
4. Statements regarding business performance, etc., have been prepared based on various
data that are believed to be reliable, but we do not guarantee their accuracy.

For more information, please contact
Corporate Management Department
Corporate Division
Phone: +81-3-6895-0038
Mikuni Corporation
13-11, Sotokanda 6-chome, Chiyoda-ku, Tokyo 101-0021, Japan
URL https://www.mikuni.co.jp/
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34