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Mizuno Corporation The 108th Period (Year ending March 31, 2021)
Financial Report
May 12, 2021
This report includes forecasts based on our assumptions, outlook and plans for the future as of May 12, 2021, which may substantially differ from actual results due to risks and uncertainties relating to the global economy, competitors' situations, changes in exchange rates, etc.
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Revenues 150.4 billion yen -19.3 billion (-11.4%)
Operating profit 3.8 billion yen -2.5 billion（-39.2%)
Sales decreased significantly in all region due to the COVID-19 pandemic whereas golf business showed strong performance across all geographies.
In Japan, sales dropped in all business categories except face masks and work business..
The reduction in expenses was not sufficient to offset the decrease of gross margin.
Ordinary profit 6.0 billion yen -0.0 billion（- 0.7%）
Net income 3.7 billion yen -0.9 billion (-19.0%）
Ordinary profit was boosted by non-operating income (e.g. foreign exchange gain)..
Tax expense increased compared to FY2019.
FY2020 Year to Date - Outline of Business Results
Versus FY2019
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Consolidated Income Statement（YTD）
Billions of yen FY2019 FY2020 Versus
FY2019(%)
Revenues 169.7 150.4 -11.4%
Gross margin 69.0 60.6 -12.2%
Gross margin ratio 40.7% 40.3% -0.4P
SG&A expenses 62.8 56.8 -9.5%
SG&A expenses ratio 37.0% 37.8% +0.8P
Salaries & bonus 21.1 20.7 -2.0%
A&P expenses 10.2 7.7 -24.8%
Operating profit 6.3 3.8 -39.2%
Operating profit ratio 3.7% 2.5% -1.2P
Ordinary profit 6.1 6.0 -0.7%
Ordinary profit ratio 3.6% 4.0% +0.4P
Net income 4.6 3.7 -19.0%
Exchange rate JPY／1USD 109.37 106.66
JPY／1GBP 138.51 138.65
JPY／1EUR 121.13 123.71
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Consolidated Balance Sheet
Billions of yen Mar.31 2020 Mar.31 2021 Versus Mar 31 2020
Total assets 154.4 157.1 +2.7
Cash & deposits 17.0 22.6 +5.6
Accounts receivable 39.2 35.1 -4.1
Inventories 35.5 35.9 +0.4
Fixed assets 44.1 42.7 -1.4
Investment securities 5.7 6.8 +1.1
Deferred tax assets 4.6 2.3 -2.3
Total liabilities 55.1 53.0 -2.1
Short-term loan 8.6 8.4 -0.2
Long-term loan 8.3 9.1 +0.8
Net assets 99.3 104.2 +4.9
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The below charts show revenues by region & product for FY2020 YTD results. (Billions of JPY)
Revenues by Region & Product
118.0
19.4 15.2 17.2
106.3
18.1 13.0 13.0
Japan Americas EMEA Asia/Oceania
Revenues by region
FY19 FY20
Overseas Sales Ratio FY2019 31% FY2020 29%
49.7 48.6
39.1
32.4
40.4
47.8
35.3
26.9
Footwear Apparel Equipment Service/Others
Revenues by products
FY19 FY20
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Principal Financial Indexes
FY2019 FY2020 Versus FY2019
Return on assets (ROA) 4.2% 2.6% -1.6P
Return on equity (ROE) 4.7% 3.7% -1.0P
Shareholder’s equity ratio 64.1% 66.0% +1.9P
Earnings per share (EPS) ¥181.95 ¥146.93 - ¥35.02
Book value per share (BPS) ¥3,883.15 ¥4,062.54 + ¥179.39
Price book value ratio (PBR) 0.48 0.54 + 0.06
Price at the end of this period ¥1,871 ¥2,174 + ¥303
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Summary of FY2020 Despite COVID-19 pandemic, outdoor sports
business such as golf and baseball gradually recovered throughout 2nd half of FY2020.
Face masks fit our customers’ needs.
Work business keeps growing.
Stock management was effective in keeping our stock level healthy.
Future measures & visions Enhancement of E-commerce business.
Investment in a new R&D facility.
Improvement of sporting goods business and our brand.
Regional Highlights (Japan)
Net Sales by product (unit: billions of JPY)
Revenues & Operating profit History （unit: billions of JPY）
128.5 129.3 124.5 118.0
106.3
3.1
7.4 5.8
3.9 2.5
0
5
10
15
20
25
30
0
40
80
120
160
FY16 FY17 FY18 FY19 FY20
Revenues Operating profit
Total Footwear Apparel Equipment Service/Others
FY20 106.3 19.6 39.9 19.8 26.9
FY19 118.0 23.8 38.8 23.1 32.2 FY20/FY19 90% 82% 103% 86% 84%
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Summary of FY2020 Though sales reduced due to COVID-19
pandemic, golf business grew strongly.
Business restructuring done in previous years made our US business more profitable.
Gain on sales of office building was recorded.
Future measures & visions Action to minimize the impact of COVID-19 .
Effective investment to expand sales.
Regional Highlights (Americas)
Net Sales by product (unit: billions of JPY)
Revenues & Operating profit History （unit: billions of JPY）
24.2
20.8
18.0 19.4
18.1
(0.2)
0.2
0.8 0.9
(1.0)
1.0
3.0
5.0
(5)
0
5
10
15
20
25
30
FY16 FY17 FY18 FY19 FY20
Revenues Operating profit(2.5)
Total Footwear Apparel Equipment
FY20 18.1 6.1 2.9 9.0
FY19 19.4 7.2 3.3 8.8 FY20/FY19 93% 85% 88% 102%
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Summary of FY2020 EMEA business was severely impacted by COVID-
19 pandemic and resulted in operating loss.
Non-operating income covered operating loss.
Sales in Golf was relatively good (almost the same level as FY2019).
Future measures & visions Taking full advantage of a newly established
regional headquarters.
Building up the third pillar of our EMEA business in addition to existing pillars: golf and running.
Development of non-sports products like lifestyle footwear.
Reduction in fixed costs and improvement of structural efficiency.
Regional Highlights (EMEA)
Net Sales by product (unit: billions of JPY)
Revenues & Operating profit History （unit: billions of JPY）
15.3 14.3 15.1 15.2 13.0
(0.2) (0.0)
0.3 0.3 (0.3)
(1.0)
1.0
3.0
5.0
(5)
0
5
10
15
20
25
30
FY16 FY17 FY18 FY19 FY20
Revenues Operating profit
Total Footwear Apparel Equipment
FY20 13.0 9.1 1.7 2.2
FY19 15.2 10.6 2.2 2.3 FY20/FY19 86% 86% 77% 96%
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Summary of FY2020 Sales declined in all entities in Asia/Oceania,
especially in South Korea, because of COVID-19 pandemic.
Business restructuring done in China last year made our Chinese business return to profitability.
Future measures & visions Action to minimize the impact of COVID-19.
Development of competitive sports products aiming for Asian market, i.e. football, table tennis and badminton.
Regional Highlights (Asia/Oceania)
Net Sales by product (unit: billions of JPY)
Revenues & Operating profit History （unit: billions of JPY）
20.8 20.9 20.5
17.2
13.0
1.1 1.0 1.2 1.1 0.7
(1.0)
1.0
3.0
5.0
(5)
0
5
10
15
20
25
30
FY16 FY17 FY18 FY19 FY20
Revenues Operating profit
Total Footwear Apparel Equipment
FY20 13.0 5.5 3.3 4.2
FY19 17.2 8.1 4.3 4.8 FY20/FY19 76% 68% 77% 88%
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Plans for FY2021 through FY2023 are as follows.
Mid term plan (Consolidated)
185.4
178.1 169.7
150.4
175.0
185.0 200.0
8.0 7.6
6.3
3.8 5.0
7.0
9.0 8.1 7.7
6.1 6.0 5.0
7.0
9.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0.0
50.0
100.0
150.0
200.0
250.0
FY17 FY18 FY19 FY20 FY21 FY22 FY23
Revenues Operating income Ordinary income
Applied FX rate 2017 2018 2019 2020 2021～
USD 112.35 110.53 109.37 106.66 106
EUR 129.44 128.41 122.53 122.00 122
unit: billions of JPY
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Japan:
Expansion of non-sports business such as work business and
lifestyle business with our technology cultivated through long years of
experience in sporting goods development and manufacturing.
Overseas:
Key growth drivers are running and golf.
Mid term plan (Revenues by region and products)
118.0
106.3
122.0 127.0
135.0
19.4 18.1 20.0 22.0 25.0
15.2 13.0
16.0 17.0 18.0
17.2 13.0 17.0 19.0 22.0
30.5% 29.3% 30.3%
31.4% 32.5%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2019 2020 2021 2022 2023Japan AmericasEMEA Asia/OceaniaOcerseas sales ratio
Revenues by region
49.7
40.4
50.0 54.0
60.0
48.6 47.8
53.0
56.0 60.0
39.1 35.3
39.0 41.0
45.0
32.4
26.9
33.0 34.0 35.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2019 2020 2021 2022 2023
Footwear Apparel Equipment Service/Other
Revenues by products unit: billions of JPY
unit: billions of JPY
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Mizuno group focuses on improving profitability and efficiency.
Mid term plan (ROA ROE)
2.0% 1.1%
5.3% 5.1%
4.2%
2.6%
3.4%
4.6%
5.8%
2.3%
0.8%
5.4%
6.4%
4.7%
3.7%
3.4%
4.7%
5.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023
ROA
ROE
