Zojirushi : Consolidated Financial Results for the Fiscal Year Ended November20,2021

Consolidated Financial Results

for the Fiscal Year Ended November 20, 2021

[Japanese GAAP]

December 24, 2021

Company name: Zojirushi Corporation

Stock exchange listing: Tokyo Stock Exchange

Securities code: 7965

URL: https://www.zojirushi.co.jp

Representative: Norio Ichikawa, Representative Director, President and Corporate Officer

Contact: Shigehisa Okamoto, Corporate Officer and General Manager, Accounting Department

Phone: [phone]

Scheduled date of general shareholders' meeting: February 17, 2022

Scheduled date of commencing dividend payments: February 18, 2022

Scheduled date of filing securities report: February 18, 2022

Availability of supplementary explanatory materials on annual financial results: Available

Schedule of annual financial results briefing session: Scheduled

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended November 20, 2021 (November 21, 2020 to

	November 20, 2021)
(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
			Net sales		Operating profit	Ordinary profit	Profit attributable to
				owners of parent
	Fiscal year ended		Million yen	%	Million yen	%	Million yen	%	Million yen	%
	November 20, 2021		77,673	3.6	6,399	17.6	6,791	18.6	4,509	14.3
	November 20, 2020		74,947	(5.3)	5,440	(0.1)	5,725	(2.6)	3,943	(3.4)

(Note) Comprehensive income: Fiscal year ended November 20, 2021: ¥5,848 million [56.2%]
	Fiscal year ended November 20, 2020: ¥3,744 million [17.6%]
	Basic earnings	Diluted		Return on	Ratio of	Ratio of
	earnings		ordinary profit	operating profit
	per share		equity
	per share		to total assets	to net sales
Fiscal year ended	Yen		Yen	%	%	%
November 20, 2021	66.69		-	6.1	6.8	8.2
November 20, 2020	58.34		-	5.5	6.1	7.3

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended November 20, 2021: ¥(170) million Fiscal year ended November 20, 2020: ¥256 million

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen

%

Yen

As of November 20, 2021

101,913

76,837

74.8

1,127.06

As of November 20, 2020

97,019

72,917

74.5

1,069.58

(Reference) Equity: As of November 20, 2021: ¥76,224 million

As of November 20, 2020: ¥72,317 million

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents

operating activities

investing activities

financing activities

at end of period

Fiscal year ended

Million yen

Million yen

Million yen

Million yen

November 20, 2021

5,150

(799)

(2,365)

35,209

November 20, 2020

7,366

(1,608)

(2,206)

32,582

2. Dividends

		Annual dividends			Total			Ratio of
							Payout ratio		dividends to
	1st	2nd	3rd	Year-			dividends
	quarter-	quarter-	quarter-	Total		(consolidated)		net assets
	end		(annual)
	end	end	end					(consolidated)
	Yen	Yen	Yen	Yen	Yen		Million yen	%	%
Fiscal year ended
November 20,	-	13.00	-	13.00	26.00	1,757	44.6	2.5
2020
Fiscal year ended
November 20,	-	15.00	-	19.00	34.00	2,299	51.0	3.1
2021
Fiscal year ending
November 20,	-	17.00	-	17.00	34.00			67.6
2022 (Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 20, 2022 (November 21, 2021 to November 20, 2022)

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
			per share
							parent
2nd quarter	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
43,300	-	3,000	-	3,200	-	2,250	-	33.27
(cumulative)
Full year	79,300	-	4,400	-	4,700	-	3,400	-	50.27

(Note) The Company is applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and related standards from the beginning of the fiscal year ending November 20, 2022, and therefore the financial results forecast above shows the amounts after the adoption of these accounting standards. Accordingly, changes from the previous corresponding period are not shown.

* Notes:

1. Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: - (Name) -
   Excluded: - (Name) -
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

November 20, 2021:	72,600,000 shares
November 20, 2020:	72,600,000 shares
2) Total number of treasury shares at the end of the period:
November 20, 2021:	4,968,791 shares
November 20, 2020:	4,987,621 shares
3) Average number of shares during the period:
Fiscal year ended November 20, 2021:	67,623,974 shares
Fiscal year ended November 20, 2020:	67,608,818 shares

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended November 20, 2021 (November 21, 2020 to November 20, 2021)

(1) Non-consolidated Operating Results			(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit	Ordinary profit	Profit
	Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	November 20, 2021	66,784	3.1	4,535	35.4	5,590	37.8	4,031	36.6
	November 20, 2020	64,800	(4.6)	3,349	1.3	4,057	(8.0)	2,952	(8.3)
		Basic earnings		Diluted earnings
		per share			per share
	Fiscal year ended	Yen			Yen
	November 20, 2021	59.62			-
	November 20, 2020	43.67			-

(2) Non-consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of November 20, 2021	80,380	62,917	78.3	930.30
As of November 20, 2020	79,172	60,967	77.0	901.72

(Reference) Equity: As of November 20, 2021: ¥62,917 million As of November 20, 2020: ¥60,967 million

• These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes
  Forward-looking statements, such as performance forecasts, made in this document are based on information currently available to the Company and certain assumptions deemed reasonable, and the Company does not in any way guarantee the achievement of the projections. Actual results, etc., may differ significantly due to various factors.

Table of Contents - Attachments

1. Overview of Operating Results, etc. .................................................................................................... 2

(1)	Overview of Operating Results for the Fiscal Year under Review	.................................................. 2
(2)	Overview of Financial Position for the Fiscal Year under Review	................................................. 3
(3)	Overview of Cash Flows for the Fiscal Year under Review ............................................................	4
(4)	Future Outlook ................................................................................................................................	5
2. Basic Policy on Selection of Accounting Standards ............................................................................	6
3. Consolidated Financial Statements and Principal Notes .....................................................................	7
(1)	Consolidated Balance Sheets ..........................................................................................................	7
(2)	Consolidated Statements of Income and Comprehensive Income	.................................................. 9
(3)	Consolidated Statements of Changes in Equity ............................................................................	11
(4)	Consolidated Statements of Cash Flows .......................................................................................	13
(5)	Notes to Consolidated Financial Statements .................................................................................	14
	(Notes on going concern assumption) ......................................................................................	14
	(Consolidated balance sheets) ..................................................................................................	14
	(Consolidated statements of income) .......................................................................................	14
	(Consolidated statements of cash flows) ..................................................................................	16
	(Segment information, etc.) ......................................................................................................	16
	(Per share information) .............................................................................................................	17
	(Significant subsequent events) ................................................................................................	17

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1. Overview of Operating Results, etc.

1. Overview of Operating Results for the Fiscal Year under Review
   The global economy during the fiscal year under review continued to head toward recovery thanks to gradual resumptions of economic activities prompted by the progress in vaccinations and the effects of economic stimulus packages, despite resurgence of the COVID-19 pandemic. Following the economic recovery, however, rising inflation is raising concerns worldwide, mainly due to shortages of supply from increased demand, disruptions in supply chains, and increases in raw materials costs. Moreover, the outlook is expected to remain uncertain, with economic activities significantly swayed by how COVID-19 develops, such as the recent emergence of new variants.
   Amid such management environment, on November 21, 2020, the Group initiated its new two-yearmedium-term plan, ADAPT Phase II, that accounts for the new normal, and has since worked on horizontal expansion of domains, vertical expansion of domains, and a stronger management platform in order to develop Zojirushi from the current brand of household products into a food and lifestyle solution brand.
   For horizontal expansion of domains, we worked on developing new markets and sales channels with existing products and expanding our product lineup to deepen existing markets and sales channels. For vertical expansion of domains, we opened a bento box store, "Zojirushi Ginpaku Bento," in Osaka following the opening of gohan (rice) restaurant, "Zojirushi Gohan Restaurant" in 2018, as part of our business development centered around delicious rice. In addition, we opened Zojirushi Direct, a direct sales e-commerce website offering Zojirushi products, and began offering Zojirushi Rental Service, comprised of Trial Rentals with which customers can try our products before purchasing and Seasonal Rentals whereby customers can use our products just for the period they need and return them after use. As our efforts to build a stronger management platform, we improved productivity and enhanced price competitiveness through streamlining of operations, established an organizational structure that facilitates the execution of ADAPT Phase II, and advanced our initiatives on ESG issues.
   As a result, net sales for the fiscal year under review increased by ¥2,725 million year on year to ¥77,673 million (up 3.6% year on year). Net sales by product category also increased year on year in cooking appliances, household and thermal products, and household appliances. On a consolidated basis, domestic net sales amounted to ¥51,995 million (down 1.1% year on year) and overseas net sales amounted to ¥25,677 million (up 14.6% year on year), resulting in overseas net sales making up 33.1% of net sales. Outside of Japan, net sales increased year on year in regions including North America where e-commerce sales are strong, as well as China and Southeast Asia.
   As for profits, the Company recorded operating profit of ¥6,399 million (up 17.6% year on year) due to an increase in net sales mainly of high added-value products. Ordinary profit was ¥6,791 million (up 18.6% year on year), and profit attributable to owners of parent was ¥4,509 million (up 14.3% year on year).
   Business results by product category were as follows.

1. Cooking appliances
   Net sales of cooking appliances amounted to ¥55,806 million (up 2.7% year on year).
   In Japan, overall sales of rice cookers/warmers decreased year on year due to a slump in the sales of products in the affordable price range, despite strong sales of the Embudaki series, the highest grade of induction heating pressure rice cookers which reproduces heat from swaying flame of traditional cooking stoves. Sales of electric pots were weak due in part to the shrinking market. Among electric cooking appliances, steady sales of electric griddles and coffee makers, whose demand was strong due to at-home consumption, resulted in a year-on-year increase.
   Overseas, sales of rice cookers/warmers, electric pots, and electric cooking appliances were strong in the North American, Chinese, and Southeast Asian markets. In particular, sales of cooking appliances increased significantly in the North American market due to increased demand from at-home consumption.

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