Consolidated Financial Results of FY2021(PDF:1.97MB)

Business Report

Consolidated Financial Results

for FY2021

(Ending March 31, 2022)

GUNZE LIMITED

(Company Code: 3002)	1

Ⅰ．FY2021 Results Overview

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Ⅰ-1. Consolidated Financial Summary

			*GUNZE has applied the "Accounting Standard for Revenue Recognition"(ASBJ Statement No.29,March 3,2020) and other
Consolidated Results	rerated standards effective from the beginning of the first quarter of the current fiscal year. As such ,the figures for the
projected results, shown above , represent amounts after the application of the said accounting standard and other related
			standards, and year-over-year increases/decreases(%)are for reference only.				（Millions of yen, %）
				*Reference:			*Reference:			Operating margin
				YoY				FY2021/FY2019
	FY2021	FY2020				FY2019
	Increase		Change		Increase		Change
					FY2021		FY2020			FY2019
				(Decrease)				(Decrease)
Net Sales	124,314	123,649	665		0.5%	140,311		(15,997)		(11.4%)		－		－			－
Operating
4,880	4,673	206		4.4%	6,746		(1,866)		(27.7%)		3.9%		3.8%			4.8%
Profit
Ordinary
5,399	5,094	304		6.0%	6,868		(1,469)		(21.4%)		4.3%		4.1%			4.9％
Profit (loss)
Net profit (loss)
attributable to	2,939	2,147	791		36.9%	4,387		(1,448)		(33.0%)		2.4%		1.7%			3.1%
owners of the
parent
		As a result of the application of the Accounting Standard for Revenue Recognition and other related standards for the fiscal year under review,
		net sales decrease by ¥3,770 million, while operating profit, ordinary profit, and profit before income taxes each increased by ¥36 million.
			Previous fiscal year	Losses arising from COVID-19		(963)
			Fiscal year Gain on sale of fixed assets			5,447
				Impairment loss of fixed assets(Sports club)	(1,496)
				Impairment loss of fixed assets(Legwear)	(1,136)
				Impairment loss of the sale of commercial facilities	(881)
				Losses arising from COVID-19		(410)
				Business structure improvement expenses		(563)					3

Ⅰ-2. FY2021 Segment Summary

We promoted cost-cutting through design improvement, etc. for the considerable adverse impacts of COVID-19, and the soaring raw materials and fuels prices, and other factors.

(Millions of yen)

Functional Solutions	The application of the Accounting Standard for Revenue Recognition and other related standards caused net sales in this segment to
decrease by ¥675 million, but had no impact on operating profit.
YoY Increase (Decrease)		Topics

The functional solutions business, all the divisions were on track.

Net Sales

Operating Profit

6,465

3,180

•	Plastic Films	Packaging films continued to enjoy strong demand related to people spending more time at home. In addition,
plastic films for export and industrial applications performed well.

• Engineering Performed strongly, supported by a recovery in sales of office equipment related products and an increased

Plastics

demand in the semiconductor market.

• Electronic Negatively affected by prolonged materials procurement arising from the global semiconductor shortage, but Components cost-cutting activities provided a positive contribution.
• Medical Exhibited a robust performance thanks to the growth of the Chinese market and the sales of medical lasers,

Materials

despite the lingering negative effects of COVID-19 in some regions.

Apparel	The application of the Accounting Standard for Revenue Recognition and other related standards caused net sales in this segment to
decrease by ¥2,922 million and operating profit to increase by ¥39 million.
YoY Increase (Decrease)	Topics

In-store sales were impacted by the sluggish market conditions brought on by the spread of COVID-19 infections, but e- commerce and mail-order catalog channels performed strongly.

	Net Sales	(5,442)		•	Inner	sluggish in-store sales, but sales of women's innerwear performed strongly in the foundation garment product
					Sales of men's innerwear were negatively impacted by a suspension of operations at the Vietnam Factory and
						wear	lines, which differentiate from other products on the market through adhesive technologies, as well as new
							products with environmentally friendly materials.
	Operating	(2,864) •		Production was adjusted through the shutdown of a factory due to stagnant sales arising from the decrease in
	Legwear	opportunities for wearing stockings. Consequently, as profitability decreased, loss on valuation of inventories was
	Profit
						recorded.
		Lifestyle Creations		The application of the Accounting Standard for Revenue Recognition and other related standards caused net sales in this segment to
			decrease by ¥172 million and operating profit to decrease by ¥3 million.
		YoY Increase (Decrease)			Topics

Net Sales

Operating Profit

(400)

(28)

• Real Estate
• Sports club

The rental property business performed well, while the shopping center business experienced a decrease in the number of visitors caused by a continuation of shortened business hours and cancellation of events in response to the state of emergency declarations.

Experienced an adverse impact from temporary closures and shortened business hours arising from the	4
redeclaration of the state of emergency and requests from various prefectural governments.

Ⅰ-3. FY2021 Performance by Segment

Consolidated Results

(Millions of yen)

	Net Sales		Operating margin

				*Reference:		*Reference:
		FY2021	FY2020	YoY	FY2019	FY2021/FY2019
		Increase	InCrease
				(Decrease)		(Decrease)
	Functional	56,138	49,673	13.0%	56,361	(0.4%)
	Solutions	6,465	(223)
	Apparel	57,197	62,640	(8.7％)	69,491	(17.7%)
	(5,442)	(12,294)
	Lifestyle	11,576	11,976	(3.3％)	14,945	(22.5％)
	Creations	(400)	(3,369)
	Total	124,314	123,649	0.5％	140,311	(11.4％)
				665		(15,997)

		*Reference:			*Reference:
FY2021	FY2020	YoY	FY2019		FY2021/FY2019
Increase		InCrease
		(Decrease)			(Decrease)
8,032	4,852		6,120		31.2%
65.5%
14.3%	9.8%	3,180	10.9%		1,912
(557)	2,306	－	2,743		－
(1.0%)	3.7%	(2,864)	3.9%		(3,300)
453	482	(6.0%)	1,187		(61.8%)
3.9%	4.0%	(28)	7.9%		(734)
		4.4%			(27.7%)
4,880	4,673	6,746
	(1,866)
3.9%	3.8%	206	4.8%

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