(Reference Translation)

Financial Results Briefing
for the Six Months ended September 30, 2021

November 19, 2021

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

Financial Results Briefing
November 19, 2021 Thursday 14:00-15:00
at Mikuni Building

Agenda
1. Consolidated Financial Results for the Six Months ended
September 30, 2021
Satoshi FUJIMORI
Hiroshi IKEGAMI

Director, Senior Executive Officer, CFO
Executive Officer, General Manager,
Corporate Planning

２．Mid-term and Long-term Vision
Hisataka IKUTA

President, CEO & COO

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

2

Consolidated Financial Results
for the Six Months
ended September 30, 2021

Note
Our fiscal year begins on April 1 of each year and ends on March 31 of the following year.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

3

FY2021 2nd Quarter

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

Other Business

Turf-Care
Equipment
Sales of Turf-care equipment etc.

Aircraft Parts
Import and Sales
Precision forged products, etc.

3%
5%
2%

Household Appliances
Device Products

8%
Safety shut-off devices for gas
appliances, gas control devices andother various flow control devices
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

82%

Automotiverelated Products

OthersTurf-Care1,065

2,127
AircraftHouse 619
3,267

≫ for Four-wheelers
AUTOMOBILECONSOLIDATED
SALES
39,556MILLION YEN≫ for Two-wheelers
MOTORCYCLE

Automotive

32,476

Electronic Fuel Injection Systems
Carburetors, Pumps

4

(Reference) FY2021 2nd Quarter

Mikuni's Business Segments(Previous Accounting Standards)
Net Sales and Composition Ratio
by Business Segment

2%

Other Business

4%

Turf-Care
Equipment
Sales of Turf-care equipment etc.

Aircraft Parts
Import and Sales
Precision forged products, etc.

17%
7%

Safety shut-off devices for gas
appliances, gas control devices andother various flow control devices
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

OthersTurf-Care1,065
2,127≫ for Four-wheelers
AUTOMOBILE

Aircraft
8,430

House
3,267

Household Appliances
Device Products

70%

Automotiverelated Products

CONSOLIDATED
SALES
49,067MILLION YEN≫ for Two-wheelers
MOTORCYCLE

Automotive

34,176(Note)
The above values are only for reference basedon the previous accounting standards.

Electronic Fuel Injection Systems
Carburetors, Pumps

5

FY2021 2nd Quarter

Financial Highlights

The Six Months ended September 30, 2021 (from April 2, 2021 to September, 30 2021)

Adopted "Accounting Standard for Revenue Recognition" and other standards, sales increased
by 4.4% and operating income returned to profitability• Significant recovery in mainstay automotive products business; continue to focus on realizing thegrowth scenario of the revised medium-term management plan.
• Full-year forecasts remain unchanged due to concerns about shortages in parts procurement andsemiconductors.
• (Reference) According to the previous accounting method, net sales for the second quarter increasedby 29.5% year on year.
OPERATING RESULTS BY SEGMENT (Year-on-Year changes)
Automotive Products Business (increased in both sales and profit)• Net sales recovered to the level of FY2019, before the spread of COVID-19. Improved production efficiency
and fixed cost reductions boosted profitability and improved the operating margin, resulting in a significant
positive operating income.
• Business in India grew as planned, contributing to higher sales and profits.
• In North America, demand increased due to the expansion of customers and the popularity of outdoor leisuredue to COVID-19.
Household Appliances Device Products Business (increased in both sales and profit, operating lossnarrowed)• Operating loss narrowed due to revised product strategy and improved production efficiency.

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6

FY2021 2nd Quarter

Financial Highlights*continued from the previous page

OPERATING RESULTS BY SEGMENT (Year-on-Year changes)
Aircraft Component Import and Sales Business (decrease in sales and profit)• Net sales decreased significantly due to the application of "Accounting Standard for Revenue
Recognition" etc.
• Decline in passenger aircraft demand and adjustments to delivery dates with customers resulted inlower revenue even under the previous accounting standards.
Turf-Care Equipment, etc. Sales Business (increased in both sales and profit)• Sales increased due to recovery in capital investment by customers such as golf courses.
• Returned to profitability, partly due to the effect of the spin-off of the company.
Other Businesses ( increased sales and profits, reduced operating loss)• Sales and profits increased in "Other businesses" such as heaters for vehicles and welfare and nursing
care equipment.

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7

Summary of Income Statement

FY2021 2nd Quarter

First Half of FY First Half of FY
ending March, ending March,
2021
2022
(Millions of yen)

(Reference)PreviousAccountingStandards
First Half of FY
ending March,
2022

Full-year
forecast for FY
ending March,
2022

49,0672,001
1,775

84,4003,400
3,000

37,901(1,438)(1,345)39,556
1,902
1,685

Net income attributable toowners of the parent(1,729)

748

839

1,200

Net income per share (yen)(51.42)
00.00

22.33
5.00

25.02
5.00

35.73
10.00

Average rate for the period

108.23107.82Year-end

107.74110.58Net sales
Operating income
Ordinary income

Dividend per share (yen)Exchange rate against the U.S.
dollar (yen)(Assumed rate
for the full year:
US$ = 109 yen)

(Note) 1. Amounts less than one million yen are discarded.
2. In order to apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) from the beginning of thefiscal year ending March 31, 2022, the above consolidated earnings forecasts are forecasts after applying the AccountingStandard.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

8

Net Sales and Operating Income
by Business Segment

FY2021 2nd Quarter

Net Sales and Operating Income by Business Segment (First Half, FY2019 and FY2020)
First Half of FY ending
March, 2021
Net Sales

Operating
IncomeFirst Half of FY ending
March, 2022
Net Sales

OperatingincomeAmount

Sales ratio

Operatingincome ratio

Sales ratio

Operatingincome ratio

Automotive
Products

23,728(1,270)

32,476

2,068

62.6％

―82.1％

6.4％

HouseholdAppliances

2,358

△264

3,267(165)

6.2％

―

8.3％

―

Aircraft
Component

9,193

261

619

(4)

24.3％

2.8％

1.6％

―

1,841(100)

2,127

7

4.9％

―

5.4％

0.3％

780

(63)

1,065

(3)

2.1％

―

2.7％

―

37,901(1,438)39,556

1,902(Millions of Yen)

Turf-Care
Equipment
Other BusinessTotal(Note)

Changein Net Sales

Change in Operating
IncomeRatio

Amount

Ratio

8,747

36.9％

3,338―

909

38.6％

99―

(8,573) (93.3％) (2,65)

―

286

15.5%

108―

284

36.5％

59―

1,654

4.4％

3,340――4.8％
1. Amounts less than one million yen are discarded.
2. The figures for the first half of the fiscal year ending March 31, 2022 are after the application of "AccountingStandard for Revenue Recognition" etc.
3. Figures in parentheses are negative values.

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9

Net Sales and Operating Incomeby Business Segment(Reference) FY2021 2nd Quarter

Net Sales and Operating Income by Business Segment (First Half, FY2019 and FY2020)
Previous Accounting Standards(Reference purpose only)

First Half of FY endingMarch, 2021

First Half of FY ending
March, 2022

Net Sales

Net Sales

Operating
IncomeOperatingincomeSales ratio

Operatingincome ratio

Automotive
Products

23,728(1,270)34,176

2,164

62.6％

―

69.7％

6.3％

HouseholdAppliances

2,358

(264)

3,267

(162)

6.2％

―

6.7％

―

Aircraft
Component

9,193

261

8,430(4)

24.3％

2.8％

17.2％

―

1,841

(100)

2,127

7

4.9％

―

4.3％

0.3％

780

(63)

1,065

(3)

2.1％

―

2.2％

―

37,901(1,438)49,0672,001(Millions of Yen)

Turf-Care
Equipment
Other
Business
Total

Sales ratio―(Note) 1. Amounts less than one million yen are discarded.
2. Figures in parentheses are negative values.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

Operatingincome ratio

Changein Net Sales

Change in Operating
IncomeAmountRatio

AmountRatio

10,44744.0％

3,434―

909

38.6％

102―

(762)

(8.3％)

(265)

―

286

15.5%

108―

284

36.5％

59―

11,165

29.5％

3,439

―

4.1％
10FY2021 2nd Quarter

Analysis of Changes in Operating Income (YoY)(Millions of yen)

Net sales
increased
3,320

COGS
reduction
Production
efficiency
improved425425

Impact ofexchangeratefluctuations
170
R&D
Depreciation
expenses
increased
Increased(71)
(93)

SG&A
expenses
increased(175)

Others(236)

FY2021 1H
Operatingincome
1,920

FY2020 1H
Operatingloss(1,438)+3,340(Note) Figures in parentheses are negative values.
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11

Transition of Quarterly Net Sales
and Operating Income

FY2021 2nd Quarter

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(Millions of yen)

29,13727,252

27,132

26,977

26,21625,00023,78522,843
19,61520,00019,183

18,28525,281

20,37315,00010,0005,000

Operating Income (loss)

0
2,000
1,500
1,000

1,484

1,045
555
140

500

(286)

0

1,253

1,183

747

719

522
(1,151)(500)(1,000)(1,500)

19/1Q

19/2Q

19/3Q

19/4Q

(Note) 1. Amounts less than one million yen are discarded.
2. Figures in parentheses are negative values.
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20/1Q

20/2Q

20/3Q

20/4Q

21/1Q

21/2Q

21/1Q

21/2Q

(Reference)Previous AccountingStandards

12FY2021 2nd Quarter

Summary of Balance Sheet(Millions of yen)

End of March
2020

End of September
2021

Changein amountCurrent assets

46,474

48,7702,296

Fixed assets

47,417

46,956(461)

Total assets

93,891

95,726

1,834

Current liabilities

31,21832,307

1,088

Fixed liabilities

34,27632,688(1,588)

Net assets

28,39630,731

2,334

Total liabilities and net
assets93,891

95,726

1,834

Shareholders' equity ratio

29.4％

31.1％

―

822.12Yen

888.23Yen―Net assets per share(Note) 1. Amounts less than one million yen are discarded.

2. Figures in parentheses are negative values.

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 figures as of September 30, 2021 are after the application of the said
accounting standards etc.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

13

Transition of Cash FlowFY2021 2nd Quarter

Cash flow from operating activities was an inflow of 3,199 million yen, and cash flow from investing
activities was an outflow of 1,308 million yen, which was significantly lower than the same period
last year (2,188 million yen). Free cash flow was positive 1,890 million yen.

(Millions of yen)
10,0005,000

9,423 5,611

5,185
0(5,270)

(85)

5,121

2,389

(1,485)(3,812)(5,000)(10,000)

1,890(6,607)318(2,876)(6,997)(4,608)FY2016FY2017

Cash flow from operating activities

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FY20183,199(1,308)

FY2019(2,558)FY2020Cash flow from investing activities

2Q, FY2021
Free cash flow

14

Depreciation, Capital Investment and R&D Expenses

FY2021 2nd Quarter
www.mikuni.co.jp(Millions of yen)

Depreciation and Capital Investment

7,411

8,000
7,000

7,364

Depreciation

5,855

6,000
5,000

4,387

4,621

4,338

5,300

4,651

4,000

Capital investment

4,900

3,284

3,000
2,000

2Q
2Q
2,265 1,962

1,0000FY2017(Millions of yen)

FY2019

6,019

5,935

FY20202Q
1,340

FY2021 forecast

R&D Expenses

7,000
6,000

FY2018

2Q
2,337

5,281

5,081

5,000

5,500

4,000
3,000
2,000

2Q2,5031,0000FY2017

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

FY2018FY2019FY20202Q
2,596

FY2021 forecast

15Summary of Balance SheetFY2021 2nd Quarter

Transition of Capital Ratio
40.0%

36.0%

30.0%

33.1%
28.6%

20.0%

March, 2018

March, 2019

March, 2020

29.4%

March, 2021

Transition of Interest-Bearing Debt

30,00026,40530,02733,627

June , 2021
(Millions of yen)

50,00040,00031.1%

36,56835,598March, 2021

June, 2021

20,00010,0000March, 2018
March, 2019
March, 2020
(Note) Amounts less than one million yen are discarded.
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16

(Reference)

Comparison of Net Sales and Operating Income by Segmentwith the Last Two Fiscal Years (Previous Accounting Standard)

Automotive Products
33,706(Millions of yen)

Net Sales

34,17623,728101

100
70
2019.2Q

2020.2Q

Operation Income923

2019.2Q

2021.2Q

2,165

Size of sales when2019.2Q is set to 100

2020.2Q

2021.2Q(1,270)Household Appliances Device Products

Net Sales
2,778

3,268

2,359

118

100

2020.2Q

2019.2Q

2020.2Q

2021.2Q(163)

85
2019.2Q

Operation Income

(285)

(265)

2021.2Q(Note) 1. Amounts less than one million yen are discarded. 2. Figures in parentheses are negative values.
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17

(Reference)

Comparison of Net Sales and Operating Income by Segmentwith the Last Two Fiscal Years (Previous Accounting Standard)

Aircraft Parts Import and Sales
14,654(Millions of yen)

Net Sales
9,193

Operation Income
8,431

100

261
205

63
58
2019.2Q

2020.2Q

2021.2Q(5)
2019.2Q

2020.2Q

2021.2Q

Turf-care Equipment
2,182

100

2019.2Q

Net Sales
1,841

2,127

Operation Income
7
2019.2Q

84
2020.2Q

2020.2Q

2021.2Q

97(78)(101)

2021.2Q(Note) 1. Amounts less than one million yen are discarded. 2. Figures in parentheses are negative values.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

18

(Reference)

Comparison of Net Sales and Operating Income in Automotive Product Segmentwith the Last Two Fiscal Years (Previous Accounting Standard)

India

Japan
16,474

4,637

14,411
3,014

9,985

100
61

2019.2Q

2020.2Q

Europe & Americas
4,864
4,007
3,033
100

12176
2019.2Q

2020.2Q

87100

2021.2Q

2019.2Q

3,551

3,280

2020.2Q

4,217

6,081

2019.2Q(Note) Amounts less than one million yen are discarded.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

2020.2Q

6,046
3,878

100

2021.2Q

9964

792021.2Q

2021.2Q

ASEAN

102100154

118

Greater China
4,131(Millions of yen)

2019.2Q

2020.2Q

2021.2Q

19

Mid-term and Long-term Vision

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20

Mid-term Vision
FY2023 Targets: Net Sales
95 billion yen
Operating Income 5 billion yen
Profit Margin
5.0% or more

Operation
Income

4,403

3,400
2,410569

Net Sales

5,000(Millions of yen)

3,000
Forecast at
beginning of termFigures based on the application of the accounting standard for revenue recognition
retrospectively to FY2018.
95,00084,40084,60080,30069,400FY2018Automotive

FY2019FY2020Household Appliances Device

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

FY2021

FY2023

Forecast

TargetAircraft Parts

Turf-care

Others21

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

Capital ratio（Millions of yen）

31,00030,00025,841

20,00028.6%

Net D/E ratio
less than 0.9
Interest-bearing debt

40.0%（Millions of yen）
40,000

35.0%

30.0%

29.4%

30,000Net D/E ratio
1.60

27,560

33.0%

Net asset

36,56733,6271.10

30,0001.20

28,39620,00032,0001.40
1.20

0.90

26,727

10,000

25.0%

1.00
0.80
0.60

10,0000.40
020.0%FY2019FY2020

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

0.200

FY2019FY2020

FY2023
Target22

Net Sales by Region
 Leveraging Mikuni's strengths in India, the world's largest motorcycle market
 Contribute to the growth of the Indian automobile market with technology
Thus, make the mobility business in India a driving force for the growth of the entire Mikuni GroupFigures based on the application of the accounting standard for revenue recognition retrospectively to FY2018.

84,600India

95,000（Millions of yen）

84,40080,300

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%

FY202317%95billion
yen

ASEAN

FY2018Japan10 billion yen increase from India
IndiaJapan

FY2018

Japan
44%

GreaterChinaEuropeand theAmericas

23

Enhancing our presence in the market (products for motorcycles and marine products, etc.)
In the growing motorcycle and marine product market, Mikuni further enhances its
market presence by leveraging its technology

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

24Turning electrification into a business opportunity (products for automobiles)
Increase the sales proportion of products for electric vehicles in Mikuni to 70% by FY2030
The growing market of HEVs and PHEVs is a tailwind for us.

70%
60%
50%
Motor Battery Inverter Charging system
Coolant Circulation Electronic Water Pump*

Motor Battery Inverter
Coolant Control Electronic Valve40%
30%
20%10%0%

Electric Vacuum Pump
for generating negative
pressure for brakesystem

Acceleration Pedal Modulefor EV*Supplied by Pierburg Mikuni Pump Technology Corporation.
Copyright(c) 2021 MIKUNI CORP. All Right Reserved.

FY2021
Forecast

FY2030TargetElectronic Parking
Lock ACT for e-Axle
Electric PT and e-Axle
lubrication and coolingElectronic Oil Pump

25

Promotion of Digital Transformation (DX)

Promoting the digitization of development
and manufacturing processes
 Facilitating the flow of design information in
the engineering chain
 Sharing design information in the form of 3D
drawings, starting with model-based
development, and concentrating theknowledge of related departments
to minimize design changes, reduce losses,
and shorten development lead time
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26

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.
CO2 Emissions and Regional Ratios FY2020(Mikuni Group, Scope 1 + Scope 2)

Achieving the 2030 Paris Agreement and SDGs

Promoting carbon
minimization

Aiming for Carbon Neutrality in 2050

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27

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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28