Summary of Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2022 (PDF：441KB)

Summary of Consolidated Financial Results [ IFRS ]

for the First Six Months of the Fiscal Year Ending March 31, 2022

		November 10, 2021
Listed company name	:	Sysmex Corporation
Code	:	6869
Listed stock exchanges	:	Tokyo Stock Exchange
URL	:	www.sysmex.co.jp/en
Company representative	: Hisashi Ietsugu, Chairman and CEO
Contact	: Tomoo Aramaki, Executive Vice President
		Corporate Business Administration
Phone	:	078(265)-0500
Scheduled date for filing of quarterly report	:	November 12, 2021
Scheduled date for dividend payment	:	December 6, 2021
Preparation of supplementary material for	:	Yes
quarterly earnings
Holding of earnings announcement	:	Yes

(Unit: Millions of Yen)

1. Results for the First Six Months of the Fiscal Year Ending March 31, 2022

(1) Operating results

(% changes as compared with the corresponding period of the previous fiscal year)

		Net Sales					Operating profit	Profit before tax	Profit
	Six months ended	168,753		27.8%			33,711		68.5%		32,088		77.4%		22,143		76.0%
	Sep. 30, 2021
	Six months ended	132,082		(7.6)%			20,004		(28.0)%		18,090		(27.9)%		12,578		(28.0)%
	Sep. 30, 2020
							Profit				Total			Basic earnings	Diluted earnings
							attributable to
								comprehensive
							owners of the			per share (Yen)	per share (Yen)
								income
							parent
	Six months ended Sep. 30, 2021		22,243		75.8%		23,048		61.0%				106.42					106.20
	Six months ended Sep. 30, 2020		12,653		(28.1)%		14,311		39.7%				60.59					60.53
(2) Financial condition
																Equity attributable	Equity attributable
		Total assets					Total equity	to owners of the	to owners of the
																parent				parent to total assets
	As of Sep. 30, 2021					444,194					324,722					324,052						73.0%
	As of Mar. 31, 2021					427,475					308,669					307,898						72.0%
2. Dividend
				Dividend per share
				First quarter	Second quarter Third quarter			Year-end				Annual
				(Yen)					(Yen)			(Yen)			(Yen)				(Yen)
	Year ended Mar. 31, 2021		￣			36.00					￣		36.00				72.00
	Year ending Mar. 31, 2022		￣			37.00
	Year ending Mar. 31, 2022																		37.00				74.00
	(Forecast)																	￣

Note: Revision of dividends forecast for this period: No

3. Financial Forecast for the Year Ending March 31, 2022

(% changes as compared with the corresponding period of the previous fiscal year)

	Net Sales		Operating profit	Profit before tax	Profit attributable to	Basic earnings
		owners of the parent	per share (Yen)
Year ending	360,000		18.0%	66,000	27.4%	63,000	31.2%	44,000	32.8%	210.50
Mar. 31, 2022

Note: Revision of financial forecast for this period: Yes

4. Other Information

1. Changes in significant consolidated subsidiaries (which resulted in changes in scope of consolidation): No
2. Changes in accounting policies and accounting estimates
3. 1. Changes in accounting policies required by IFRS: No
   2. Other changes in accounting policies: No
   3. Changes in accounting estimates: No
4. Number of outstanding stock (common stock)
5. 1. Number of outstanding stock at the end of each fiscal period (including treasury stock): 209,485,632 shares as of Sep. 30, 2021; 209,443,232 shares as of Mar. 31, 2021
   2. Number of treasury stock at the end of each fiscal period:

447,055 shares as of Sep. 30, 2021; 446,876 shares as of Mar. 31, 2021

1. Average number of outstanding stock for each period (cumulative): 209,014,581 shares for the six months ended Sep. 30, 2021 208,859,643 shares for the six months ended Sep. 30, 2020

Note: Quarterly summaries of financial results are excluded from quarterly reviews.

• Explanation regarding the appropriate use of financial forecast and other information
  1. The forecasts and future projections contained herein have been prepared on the basis of rational decisions given the information available as of the date of announcement of this document. These forecasts do not represent a commitment by the Company, and actual performance may differ substantially from forecasts for a variety of reasons. Please refer to "3) Consolidated financial forecast" within "1. Qualitative information on quarterly financial results" on page 4 of the attachment to this document for cautionary statements concerning the conditions and performance forecasts that serve as the basis for these forecasts.

3. Supplementary financial materials (in Japanese and English) will be posted on the Sysmex website on Wednesday, November 10, 2021.

Content of Supplementary Materials
1. Qualitative information on quarterly financial results	2
1)	Operating performance analysis	2
2)	Financial conditions analysis	4
3)	Consolidated financial forecast	4
2. Condensed quarterly consolidated financial statements and notes	5
1)	Condensed quarterly consolidated statement of financial position	5
2)	Condensed quarterly consolidated statement of income	7
3)	Condensed quarterly consolidated statement of other comprehensive income	8
4)	Condensed quarterly consolidated statement of changes in equity	9
5)	Condensed quarterly consolidated statement of cash flows	11
6)	Notes to the condensed quarterly consolidated financial statements	12
	1. Notes related to the going concern assumption	12
	2. Segment information	12

－ 1 －

1. Qualitative information on quarterly financial results

1. Operating performance analysis

Future-related information contained in the text below is based on the judgement as of the end of the fiscal period under review.

During the first six months of the fiscal year ending March 31, 2022, the Japanese economy was affected by the COVID-19 pandemic. Despite progress with rolling out vaccines, social activity and personal consumption remained sluggish, due to reissuing the state of emergency and the priority preventative measures. Overseas, economic deregulation led to a gradual economic recovery, albeit with variations among countries and regions. Even so, the outlook remains uncertain due to the gradual shrinking of fiscal and monetary policies and the impact of the global shortage of semiconductors.

On the healthcare front, we are seeing major changes in the healthcare environment due to the COVID-19 pandemic, as well as an aging society and increasingly diverse health and medical needs. In Japan, expectations are mounting for new medical services to address the "new normal," such as resolving the pressure on medical systems due to a rise in the number of infections, stable supplies of necessary supplies and a response to digitalization in the medical field. Looking overseas, aging populations in developed countries are driving demand for the moderation of medical systems. In emerging markets, healthcare demand is increasing, and demand is rising for higher levels of healthcare quality, service enhancements and preventive medicine. As a result, we are seeing rapid advances in the application of artificial intelligence, big data analysis and other leading-edge technologies, which are expected to provide further opportunities for growth.

Against this backdrop, Sysmex continued to expand its product portfolio in the hematology field. We launched a next-generation flagship model, XR-Series Automated Hematology Analyzer, and a compact three-part differential model, the XQ-Series Automated Hematology Analyzer in Japan. We will continue with a global sales rollout after receiving regulatory approval in individual countries. We aim to contribute optimization of laboratory operations according to regional characteristics and facilities' needs.

In the life science field, we formed a strategic alliance related to joint development and global business with QIAGEN N.V., which has extensive experience in the development of companion diagnostics*1 in the field of oncology. By leveraging QIAGEN's experience in developing companion diagnostics, Sysmex expects to strengthen its global relationships with pharmaceutical companies. We will work toward the early development and clinical implementation of companion diagnostics.

"Genetic diagnosis and counseling for inherited retinal dystrophy (IRD)*2 using a genetic testing system (tentatively named the IRD Panel Testing System), which Sysmex and the Kobe City Eye Hospital have been developing jointly, has received Advanced Medical Care B*3 approval. Going forward, we will commence this testing at the Kobe City Eye Hospital. In addition, we will increase the number of cooperating facilities for advance medical care that can perform this test, in the aim of increasing opportunities for patients to receive medical care.

As the global general distributor, Sysmex continued to market hinotori™ to medical institutions in Japan. (The hinotori™ Surgical Robot System is the first made-in-Japanrobotic-assisted surgery

system.) We are working with Medicaroid Corporation, a joint venture between Sysmex and Kawasaki Heavy Industry, Ltd., to obtain regulatory approval overseas, and we will begin introducing the system in overseas markets, as well.

*1 Companion diagnostics:

Testing to predict the efficacy or risk of side effects of specific drugs before prescription.

*2 Inherited retinal dystrophy (IRD):

IRD is an inherited progressive disease thought to be caused by genetic mutations. The main symptoms are night blindness, narrowing of the visual field, and loss of vision, which can lead to blindness in some cases. Several diseases with similar symptoms are collectively referred to as inherited retinal dystrophy.

*3 Advanced medical care B:

Advanced medical care is new experimental medical technology whose effectiveness and safety have not yet been evaluated, and which has been designated by the Ministry of Health, Labor and Welfare as a medical technology to be evaluated for effectiveness and safety in order to determine whether it should be covered by insurance in the future. Within this category, Advanced medical care B may be conducted only at medical institutions that meet the facility criteria set for each medical technology.

－ 2 －

Net sales by destination

		Six months ended	Six months ended	YoY
		Sep. 30, 2020	Sep. 30, 2021
		(Previous
		Amount	Percentage of	Amount	Percentage of
		period = 100)
		(Millions of yen)	total (%)	(Millions of yen)	total (%)
Japan	21,275	16.1	25,557	15.0	120.1
	Americas	29,366	22.2	38,227	22.7	130.2
	EMEA	36,885	27.9	49,238	29.2	133.5
	China	33,642	25.5	42,145	25.0	125.3
	Asia Pacific	10,913	8.3	13,585	8.1	124.5
Overseas subtotal	110,807	83.9	143,196	85.0	129.2
Total	132,082	100.0	168,753	100.0	127.8

In Japan, sales of urinalysis instruments rose, as did sales of hemostasis and immunochemistry reagents as well as instrument and reagents sales in the life science field related to COVID-19 testing. As a result, sales in Japan rose 20.1% year on year, to ¥25,557 million.

Overseas, testing demand recovered from the previous corresponding period, when demand was affected by COVID-19. Reagent sales rose as a result, mainly in the hematology and urinalysis fields. In addition, the impact of yen depreciation. Consequently, overseas sales increased 29.2% year on year, to ¥143,196 million. The overseas sales ratio rose 1.1 percentage point, to 85.0%.

Selling, general and administrative (SG&A) expenses expanded 15.7%, to ¥44,065 million, owing to a partial resumption of sales activities that had been constrained across all regions in the previous corresponding period.

As a result, during the first six months of the fiscal year ending March 31, 2022, the Group recorded consolidated net sales of ¥168,753 million, up 27.8% year on year. Operating profit rose 68.5%, to ¥33,711 million; profit before tax surged 77.4%, to ¥32,088 million, and profit attributable to owners of the parent expanded 75.8%, to ¥22,243 million.

Performance by segment

1. Japan
   In Japan, sales of urinalysis instruments rose, as did sales of hemostasis and

immunochemistry reagents as well as instrument and reagents sales in the life science field related to COVID-19 testing. As a result, sales in Japan rose 19.2% year on year, to ¥27,715 million.

On the profit front, performance was affected by higher SG&A and R&D expenses, but gross profit increased due to higher sales and an improvement in the cost of sales ratio. Accordingly, segment profit (operating profit) rose 46.4%, to ¥18,957 million.

1. Americas
   In North America, sales of instruments, reagents and maintenance services increased due to a

resurgence in testing demand in the hematology field and sales increase of instruments. Along with the alliance with Siemens Healthcare Diagnostics Inc., sales of instrument and reagents increased in the urinalysis field. As a result, sales in the region grew 31.2%, to ¥35,674 million. Segment profit (operating profit) grew 372.4%, to ¥1,775 million. Although SG&A expenses increased, this performance was attributable to higher sales and gross profit, stemming from an

improved cost of sales ratio.

1. EMEA
   Sales of instruments and reagents increased in the fields of hematology, urinalysis and

hemostasis, due to a resurgence in testing demand and the acquisition of bids in Russia, Middle East and Eastern Europe. Sales of purchased antibody testing kits related to the COVID-19 pandemic also grew. As a result, sales were ¥49,753 million, up 33.8% year on year.

Segment profit (operating profit) grew 111.9%, to ¥7,680 million, despite higher SG&A

－ 3 －