MISUMI : FY2025 Consolidated Financial Results （482KB）

About this update from Misumi Group Inc.

This is an abridged translation of the original document in Japanese and is intended for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the Japanese original shall prevail. Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 [Japanese GAAP] April 30, 2026 Company name: MISUMI Group Inc. Stock exchange listing: Tokyo Stock Exchange Securities Code: 9962 URL: https://www.misumi.co.jp/english/ Representative: Arata Shimizu, Representative Director and President Contact: Toru Takanami, Senior Corporate Officer, CFO, Representative of Finance Platform Phone: +81-3-6777-7579 Scheduled date of Annual General Meeting of Shareholders: June 18, 2026 Scheduled date of dividend payments: June 24, 2026 Scheduled date of filing securities report: June 16, 2026 Preparation of supplemental explanatory materials: Yes (materials for institutional investors) Holding of financial results meeting: Yes (meeting for institutional investors) (Amounts of less than one million yen are rounded down.) Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (April 1, 2025 to March 31, 2026) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Net income attributable to owners of parent Fiscal year ended Million yen % Million yen % Million yen % Million yen % March 31, 2026 441,383 9.8 47,613 2.4 49,095 (1.6) 40,457 10.7 March 31, 2025 401,987 9.3 46,480 21.2 49,901 20.9 36,549 29.8 (Note) Comprehensive income: Fiscal year ended March 31, 2026: ¥65,675 million 98.2% Fiscal year ended March 31, 2025: ¥33,140 million (32.6)% Net income per share Net income per share (diluted) Return on equity Ordinary income to total assets Operating income to net sales Fiscal year ended Yen Yen % % % March 31, 2026 149.30 149.00 11.1 11.1 10.8 March 31, 2025 131.95 131.62 10.5 12.0 11.6 (Reference) Share of profit of entities accounted for using equity method: Fiscal year ended March 31, 2026: ¥36 million Fiscal year ended March 31, 2025: ¥33 million Consolidated Financial Position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of March 31, 2026 464,969 382,509 81.7 1,433.69 As of March 31, 2025 419,574 352,064 83.2 1,271.58 (Reference) Equity: As of March 31, 2026: ¥379,832 million As of March 31, 2025: ¥349,283 million Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of fiscal year Fiscal year ended Million yen Million yen Million yen Million yen March 31, 2026 52,190 (43,203) (41,801) 104,202 March 31, 2025 60,461 (32,452) (31,759) 128,259 Cash Dividends Cash dividends per share for the fiscal year (yen) 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 - 19.83 - 23.38 43.21 Fiscal year ended March 31, 2026 - 18.02 - 34.96 52.98 Fiscal year ending March 31, 2027 (Forecast) - 22.07 - 30.91 52.98 Total cash dividends paid Dividend payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Million yen % % Fiscal year ended March 31, 2025 11,885 32.5 3.5 Fiscal year ended March 31, 2026 14,162 35.0 3.9 Fiscal year ending March 31, 2027 (Forecast) 37.5 Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027) (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share 2nd quarter -end (Cumulative) Million yen % Million yen % Million yen % Million yen % Yen 238,400 15.8 24,100 22.8 24,600 20.6 16,700 19.3 63.03 Full year 491,500 11.4 55,000 15.5 55,900 13.9 37,400 (7.6) 141.17 * Notes: Significant changes in the scope of consolidation during the period: Yes Newly included: 8 companies (Fictiv Inc. and 7 other companies) Changes in accounting policies, changes in accounting estimates and retrospective restatement Changes in accounting policies due to the revision of accounting standards: None Changes in accounting policies other than 1) above: None Changes in accounting estimates: None Retrospective restatement: None Total number of shares outstanding (common stock) Total number of shares outstanding at the end of the fiscal year (including treasury stock): As of March 31, 2026: 285,221,897 shares As of March 31, 2025: 285,057,297 shares Total number of treasury stock at the end of the fiscal year: As of March 31, 2026: 20,288,824 shares As of March 31, 2025: 10,372,985 shares Weighted average number of shares outstanding during the fiscal year: Fiscal year ended March 31, 2026: 270,982,618 shares Fiscal year ended March 31, 2025: 277,000,077 shares (Reference) Overview of Non-consolidated Financial Results 1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (April 1, 2025 to March 31, 2026) Non-consolidated Operating Results (% indicates changes from the previous corresponding period.) Operating revenue Operating income Ordinary income Net income Fiscal year ended Million yen % Million yen % Million yen % Million yen % March 31, 2026 58,271 131.9 42,859 326.1 43,723 316.1 43,197 321.8 March 31, 2025 25,125 (58.4) 10,058 (78.7) 10,509 (77.9) 10,241 (78.4) Net income per share Net income per share (diluted) Fiscal year ended Yen Yen March 31, 2026 159.41 159.09 March 31, 2025 36.97 36.88 Non-consolidated Financial Position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of March 31, 2026 176,998 87,199 48.5 324.26 As of March 31, 2025 163,779 79,186 47.3 282.22 (Reference) Equity: As of March 31, 2026: ¥85,906 million As of March 31, 2025: ¥77,522 million These financial results are outside the scope of audit by certified public accountants or an audit firm. Explanation on the appropriate use of forecasts and other notes The earnings forecasts and other forward-looking statements herein are based on information available to the Company at the time of preparation and certain assumptions deemed to be reasonable, and actual results may differ significantly from the forecasts due to various factors. For the assumptions on the earnings forecasts and notes on their use, please refer to "1. Overview of Business Results, etc. (4) Future Outlook" on page 4 of the attached document. Contents of Attachment Overview of Business Results, etc. 2 Overview of Business Results for the Fiscal Year 2 Overview of Financial Position for the Fiscal Year 3 Overview of Cash Flows for the Fiscal Year 4 Future Outlook 5 Basic Policy Regarding Selection of Accounting Standards 5 Consolidated Financial Statements and Primary Notes 6 Consolidated Balance Sheet 6 Consolidated Statement of Income and Comprehensive Income 8 Consolidated Statement of Income 8 Consolidated Statement of Comprehensive Income 9 Consolidated Statement of Changes in Equity 10 Consolidated Statement of Cash Flows 12 Notes to the Consolidated Financial Statements 13 (Notes on going concern assumption) 13 (Changes in accounting policies) 13 (Changes in accounting estimates) 13 (Changes in presentation method) 13 (Additional information) 13 (Business combinations) 14 (Segment information) 16 (Per share information) 20 (Significant subsequent events) 21 Overview of Business Results, etc. Overview of Business Results for the Fiscal Year During the consolidated fiscal year under review, the global economy continued to face uncertainty due to U.S. tariff policies and their impact on various countries, as well as heightened geopolitical risks. As a result, operating activity in the automotive-related sector, which constitutes our primary customer base, remained at a standstill. Meanwhile, demand from telecommunications- and semiconductor-related industries, particularly in China and Asia, remained robust. In this economic environment, MISUMI Group is leveraging its unique Business MODEL, which encompasses manufacturing and distribution businesses. By advancing the global Business Foundation supporting these operations, we contribute to industries related to automation demand, particularly the manufacturing industry, by meeting customers' needs for Reliable and Quick Delivery. We continued to develop new businesses, including new products and services, by capitalizing on the robust Business Foundations in IT, production, and logistics that we have built over the years. We also made efforts to accurately capture customer demand by utilizing our global network of sites However, in some regions, demand stagnation was affected by the tariff policies of the United States. As a result, consolidated net sales amounted to ¥441,383 million (9.8% increase year-over-year). In terms of profits, the positive impact of increased sales volume driven by proprietary initiatives absorbed expenditures related to measures for sustainable growth as well as the impact of including the performance of Fictiv Inc. within the scope of consolidation starting in July. Consequently, operating income totaled ¥47,613 million (2.4% increase year-over-year), ordinary income totaled ¥49,095 million (1.6% decrease year-over-year), and net income attributable to owners of the parent amounted to ¥40,457 million (10.7% increase a year-over-year), due in part to a decrease in income tax adjustments following the recognition of deferred tax assets related to tax loss carryforwards associated with the introduction of a consolidated tax filing system in the U.S. (Million yen) Net Sales Operating Income Previous Consolidated fiscal year Current Consolidated fiscal year Percentage Change (%) Previous Consolidated fiscal year Current Consolidated fiscal year Percentage Change (%) Factory Automation (FA) Business 135,803 160,498 18.2 22,510 20,283 (9.9) Die Components Business 86,451 88,368 2.2 9,504 8,694 (8.5) VONA Business 179,732 192,516 7.1 14,466 18,635 28.8 Total 401,987 441,383 9.8 46,480 47,613 2.4 Factory Automation (FA) Business In the FA business, while capital investment demand in Japan remained sluggish, overseas regions generally performed well, driven by successful demand acquisition through proprietary initiatives such as addressing telecommunications-related demand in China, as well as meviy, the Economy Series, and D-JIT. As a result, net sales reached ¥160,498 million (18.2% increase year-over-year). Operating income totaled ¥20,283 million (9.9% decrease year-over-year) reflecting the impact of M&A-related expenses as well as the consolidation of Fictiv Inc.'s performance. Die Components Business In the Die Components business, steady growth in China and Asia offset weak demand in other regions, resulting in net sales of ¥88,368 million (2.2% increase year-over-year). On the other hand, operating income declined to ¥8,694 million (8.5% decrease year-over-year), due to the impact of sluggish automotive demand in the Americas and Europe. VONA Business VONA business is MISUMI Group's distribution business, which sells manufacturing and automation-related equipment parts-including products from other manufacturers in addition to MISUMI-branded products-as well as indirect materials such as MRO (consumables). This business performed steadily across all regions, resulting in net sales of ¥192,516 million (7.1% increase year over year), with an operating income of ¥18,635 million (28.8% increase year-over-year). Overview of Financial Position for the Fiscal Year Assets, liabilities and net assets Assets Total assets as of the end of the fiscal year were ¥464,969 million, an increase of ¥45,394 million (+10.8%) compared to the previous year-end. Current assets were ¥295,654 million, a decrease of ¥22,150 million (-7.0%). This was mainly attributable to cash and deposits following acquisition of a subsidiary, which decreased by ¥46,354 million (-29.1%), while notes and accounts receivable - trade increased by 20,130 million (+25.7%) and merchandise and finished goods increased by ¥2,985 million (+5.2%). Non-current assets were ¥ 169,314 million, an increase of ¥67,545 million (+66.4%). Of these, property, plant and equipment amounted to ¥56,638 million, an increase of ¥4,115 million (+7.8%). This was mainly attributable to an increase of buildings and structures of ¥1,468 million (+6.8%), and an increase of right-of-use assets of ¥1,123 million (+17.9%). Intangible assets increased by ¥57,087 million (+171.5%) to ¥90,370 million due to an increase in goodwill associated with the acquisition of subsidiary shares. Investments and other assets increased by ¥6,342 million (+39.7%) to ¥22,306 million. Liabilities Total liabilities amounted to ¥82,460 million, an increase of ¥14,949 million (+22.1%) compared to the previous year-end. Current liabilities were ¥65,180 million, an increase of ¥13,304 million (+25.6%). This was mainly attributable to an increase in notes and accounts payable - trade of ¥8,663 million (+40.9%). Non-current liabilities amounted to ¥17,279 million, an increase of ¥1,644 million (+10.5%). This was mainly attributable to an increase of ¥695 million (+12.4%) in lease obligations and an increase of ¥665 million (+63.8%) in deferred tax liabilities. As a result, the current ratio was 4.5 times, and the Company maintained high stability. Net assets Total net assets amounted to ¥382,509 million, an increase of ¥30,444 million (+8.6%) compared to the previous year-end. This was primarily because shareholders' equity increased by ¥5,474 million (+1.8%) due to an increase in retained earnings and purchase of treasury stock, and an increase of ¥25,073 million (+55.7%) in accumulated other comprehensive income including foreign currency translation adjustments. As a result, the equity ratio was 81.7%, compared to 83.2% at the end of the previous year. Overview of Cash Flows for the Fiscal Year At the end of the fiscal year, cash and cash equivalents amounted to ¥104,202 million, a decrease of ¥24,056 million compared to the previous year-end. Cash inflows from operating activities amounted to a net cash inflow of ¥52,190 million, (a net cash inflow of ¥60,461 million for the same period in the previous year). The breakdown is as follows. Income before income taxes was ¥48,498 million. Depreciation and amortization was ¥17,939 million. The amount of increase in notes and accounts receivable - trade was ¥11,598 million. Income taxes paid was ¥12,733 million. Cash outflows from investing activities amounted to a net cash outflow of ¥43,203 million, (a net cash outflow of ¥32,452 million for the same period in the previous year). The breakdown is as follows. The purchase of fixed assets was ¥14,288 million. The purchase of shares of subsidiaries resulting in change in the scope of consolidation was ¥48,483 million. Payments into time deposits were ¥12,324 million. Refund from time deposits was ¥36,070 million. Cash outflows from financing activities amounted to a net cash outflow of ¥41,801 million, (a net cash outflow of ¥31,759 million for the same period in the previous year). The main items were purchase of treasury stock of Fiscal year ended March 2022 Fiscal year ended March 2023 Fiscal year ended March 2024 Fiscal year ended March 2025 Fiscal year ended March 2026 Equity ratio (%) 79.8 82.3 83.3 83.2 81.7 Equity ratio (market value basis) (%) 300.0 248.1 140.7 161.5 149.6 Interest-bearing debt to cash flow ratio (%) 13.0 24.4 12.5 12.5 16.8 Interest coverage ratio (times) 623.9 270.4 371.0 386.7 283.5 ¥25,132 million and dividends paid of ¥11,322 million. (Reference) Trend of cash flow indicators Equity ratio: Equity / Total assets Equity ratio (market value basis): Total market capitalization / Total assets Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows Interest coverage ratio: Cash flows / Interest expenses Notes: All indicators are calculated using consolidated financial figures. Total market capitalization is calculated by multiplying the closing share price at the end of the fiscal year with the number of outstanding shares (excluding treasury stock) as of that date. Cash flows are cash flows from operating activities stated in the consolidated statements of cash flows. Interest-bearing debt includes lease obligations according to the application of IFRS16 "Leases" from the fiscal year ended March 31, 2020. Interest expenses are interest expenses paid as stated in the consolidated statements of cash flows. Future Outlook Regarding the consolidated earnings forecast for the fiscal year ending March 31, 2027, while geopolitical risks and other sources of uncertainty are expected to persist, automation-related demand in industries such as data centers and semiconductors is expected to continue expanding steadily on a global basis. Based on these assumptions, consolidated net sales are forecasted at ¥491,500 million, operating income at ¥55,000 million, and net income attributable to owners of the parent at ¥37,400 million. While there is a possibility that heightened tensions in the Middle East could lead to increases in raw material prices and transportation costs, the outlook remains uncertain; therefore, no quantitative impact has been reflected in the consolidated earnings forecast. Should any events arise that necessitate a revision to this forecast due to changes in the business environment or other factors, we will promptly disclose such information. (The assumed exchange rates are USD/JPY 152.0, EUR/JPY 179.0, and RMB/JPY 22.0.) [Considerations related to estimated earnings] The outlook for the fiscal year ending March 31, 2027, and the forward-looking statements in this document have been prepared on the basis of information available at the time of preparation. This includes the domestic and foreign economic climate, changes in foreign exchange rates for various currencies, and other factors that may affect business performance, which have been determined to be reasonable by MISUMI Group Inc. as well as risks and uncertainties. In light of this, please refrain from making investment decisions solely on the basis of this outlook. Actual business performance may differ greatly from this outlook due to various factors that affect MISUMI Group Inc., including economic climate, market trends and exchange rates. Basic Policy Regarding Selection of Accounting Standards The Group is scheduled to adopt the International Financial Reporting Standards (IFRS) on a voluntary basis from the fourth quarter of the fiscal year ending March 2028. Consolidated Financial Statements and Primary Notes Consolidated Balance Sheet (Million yen) As of March 31, 2025 As of March 31, 2026 Assets Current assets Cash and deposits 159,296 112,941 Notes and accounts receivable - trade 78,390 98,520 Merchandise and finished goods 57,186 60,171 Work in process 3,661 3,094 Raw materials and supplies 8,805 10,172 Income taxes receivable 1,850 2,164 Other 9,012 9,751 Allowance for doubtful accounts (397) (1,161) Total current assets 317,805 295,654 Non-current assets Property, plant and equipment Buildings and structures 37,287 41,262 Accumulated depreciation (15,751) (18,256) Buildings and structures, net 21,536 23,005 Machinery, equipment and vehicles 51,468 57,070 Accumulated depreciation (35,841) (40,937) Machinery, equipment and vehicles, net 15,626 16,133 Land 4,259 4,323 Right-of-use assets 9,909 11,693 Accumulated depreciation (3,642) (4,303) Right-of-use assets, net 6,267 7,390 Construction in progress 1,767 2,037 Other 11,042 13,094 Accumulated depreciation (7,977) (9,346) Other, net 3,064 3,748 Total property, plant and equipment 52,522 56,638 Intangible assets Software 27,677 28,143 Goodwill - 43,962 Other 5,605 18,264 Total intangible assets 33,283 90,370 Investments and other assets Investment securities 1,224 5,552 Deferred tax assets 9,052 10,800 Other 6,073 6,292 Allowance for doubtful accounts (387) (339) Total investments and other assets 15,963 22,306 Total non-current assets 101,769 169,314 Total assets 419,574 464,969 (Million yen) As of March 31, 2025 As of March 31, 2026 Liabilities Current liabilities Notes and accounts payable - trade 21,189 29,852 Lease obligations 1,932 2,466 Accounts payable - other 8,667 8,653 Income taxes payable 4,476 4,867 Provision for bonuses 5,882 6,333 Provision for directors' bonuses 230 226 Other 9,497 12,779 Total current liabilities 51,876 65,180 Non-current liabilities Lease obligations 5,604 6,300 Deferred tax liabilities 1,043 1,708 Liability for retirement benefits 7,337 7,362 Provision for loss on business liquidation 61 68 Other 1,586 1,839 Total non-current liabilities 15,634 17,279 Total liabilities 67,510 82,460 Net assets Shareholders' equity Capital stock 14,483 14,727 Capital surplus 24,585 24,721 Retained earnings 293,546 322,681 Treasury stock (28,352) (52,392) Total shareholders' equity 304,263 309,738 Accumulated other comprehensive income Valuation difference on available-for-sale securities (51) 118 Foreign currency translation adjustments 44,858 69,647 Remeasurements of defined benefit plans 212 328 Total accumulated other comprehensive income 45,020 70,094 Stock acquisition rights 1,663 1,293 Non-controlling interests 1,116 1,383 Total net assets 352,064 382,509 Total liabilities and net assets 419,574 464,969 Consolidated Statement of Income and Comprehensive Income Consolidated Statement of Income (Million yen) For the fiscal year ended March 31, 2025 For the fiscal year ended March 31, 2026 Net sales 401,987 441,383 Cost of sales 214,997 235,367 Gross profit 186,990 206,015 Selling, general and administrative expenses 140,509 158,402 Operating income 46,480 47,613 Non-operating income Interest income 4,164 1,857 Share of profit of entities accounted for using equity method 33 36 Miscellaneous income 502 724 Total non-operating income 4,701 2,618 Non-operating expenses Interest expenses 156 184 Foreign exchange losses 688 568 Loss on retirement of non-current assets 166 118 Commission expenses 165 133 Miscellaneous loss 103 130 Total non-operating expenses 1,279 1,135 Ordinary income 49,901 49,095 Extraordinary income Reversal of provision for loss on business liquidation 1,015 - Total extraordinary income 1,015 - Extraordinary losses Impairment loss 300 597 Loss on liquidation of business 675 - Total extraordinary losses 976 597 Income before income taxes 49,940 48,498 Income taxes - current 14,219 12,603 Income taxes - deferred (934) (4,730) Income taxes 13,285 7,873 Net income 36,654 40,625 Net income attributable to non-controlling interests 105 167 Net income attributable to owners of parent 36,549 40,457 Consolidated Statement of Comprehensive Income (Million yen) For the fiscal year ended March 31, 2025 For the fiscal year ended March 31, 2026 Net income 36,654 40,625 Other comprehensive income Valuation difference on available-for-sale securities (51) 169 Foreign currency translation adjustments (3,583) 24,762 Remeasurements of defined benefit plans, net of tax 113 115 Share of other comprehensive income in associates 6 2 Total other comprehensive income (3,514) 25,050 Comprehensive income 33,140 65,675 Comprehensive income attributable to Owners of parent 32,993 65,531 Non-controlling interests 147 143 Consolidated Statement of Changes in Equity Fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025) ‌(Million yen) Shareholders' equity Capital stock Capital surplus Retained earnings Treasury stock Total shareholders' equity Balance at beginning of fiscal year 14,146 24,303 266,651 (9,159) 295,942 Changes of items during fiscal year Issuance of new shares 337 337 - - 674 Dividends of surplus - - (9,653) - (9,653) Net income attributable to owners of parent - - 36,549 - 36,549 Purchase of treasury stock - - - (20,000) (20,000) Disposal of treasury stock - (55) - 807 751 Net changes of items other than shareholders' equity - - - - - Total changes of items during fiscal year 337 281 26,895 (19,193) 8,321 Balance at end of fiscal year 14,483 24,585 293,546 (28,352) 304,263 Accumulated other comprehensive income Stock acquisition rights Non-controlling interests Total net assets Valuation difference on available-for-sale securities Foreign currency translation adjustments Remeasureme nts of defined benefit plans Total accumulated other comprehensive income Balance at beginning of fiscal year - 48,476 96 48,573 2,087 1,076 347,679 Changes of items during fiscal year Issuance of new shares - - - - - - 674 Dividends of surplus - - - - - - (9,653) Net income attributable to owners of parent - - - - - - 36,549 Purchase of treasury stock - - - - - - (20,000) Disposal of treasury stock - - - - - - 751 Net changes of items other than shareholders' equity (51) (3,618) 116 (3,552) (423) 40 (3,936) Total changes of items during fiscal year (51) (3,618) 116 (3,552) (423) 40 4,384 Balance at end of fiscal year (51) 44,858 212 45,020 1,663 1,116 352,064 Fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026) ‌(Million yen) Shareholders' equity Capital stock Capital surplus Retained earnings Treasury stock Total shareholders' equity Balance at beginning of fiscal year 14,483 24,585 293,546 (28,352) 304,263 Changes of items during fiscal year Issuance of new shares 243 243 - - 487 Dividends of surplus - - (11,322) - (11,322) Net income attributable to owners of parent - - 40,457 - 40,457 Purchase of treasury stock - - - (25,000) (25,000) Disposal of treasury stock - (107) - 959 851 Net changes of items other than shareholders' equity - - - - - Total changes of items during fiscal year 243 135 29,135 (24,040) 5,474 Balance at end of fiscal year 14,727 24,721 322,681 (52,392) 309,738 Accumulated other comprehensive income Stock acquisition rights Non-controlling interests Total net assets Valuation difference on available-for-sale securities Foreign currency translation adjustments Remeasureme nts of defined benefit plans Total accumulated other comprehensive income Balance at beginning of fiscal year (51) 44,858 212 45,020 1,663 1,116 352,064 Changes of items during fiscal year Issuance of new shares - - - - - - 487 Dividends of surplus - - - - - - (11,322) Net income attributable to owners of parent - - - - - - 40,457 Purchase of treasury stock - - - - - - (25,000) Disposal of treasury stock - - - - - - 851 Net changes of items other than shareholders' equity 169 24,789 115 25,073 (370) 266 24,970 Total changes of items during fiscal year 169 24,789 115 25,073 (370) 266 30,444 Balance at end of fiscal year 118 69,647 328 70,094 1,293 1,383 382,509 Consolidated Statement of Cash Flows (Million yen) For the fiscal year ended March 31, 2025 For the fiscal year ended March 31, 2026 Cash flows from operating activities Income before income taxes 49,940 48,498 Depreciation and amortization 17,718 17,939 Impairment loss 300 597 Amortization of goodwill - 2,209 Increase (decrease) in liability for retirement benefits 70 110 Increase (decrease) in provision for bonuses 2,837 223 Increase (decrease) in provision for directors' bonuses 195 (3) Increase (decrease) in allowance for doubtful accounts 109 537 Interest and dividend income (4,165) (1,914) Interest expenses 156 184 Share-based payment expenses 740 781 Foreign exchange (gains) losses 38 (295) Share of (profit) loss of entities accounted for using equity method (33) (36) Reversal of provision for loss on business liquidation (1,015) - Loss on liquidation of business 675 - Loss on retirement of non-current assets 166 118 (Increase) decrease in notes and accounts receivable - trade (3,438) (11,598) (Increase) decrease in inventories 7,477 (335) Increase (decrease) in accounts payable - other (687) (1,475) (Increase) decrease in consumption taxes refund receivable (225) (319) Increase (decrease) in notes and accounts payable - trade 189 5,889 (Increase) decrease in other assets (1,623) 1,134 Increase (decrease) in other liabilities 1,314 433 Subtotal 70,743 62,679 Interest and dividend income received 3,915 2,429 Interest expenses paid (156) (184) Income taxes paid (14,041) (12,733) Net cash provided by operating activities 60,461 52,190 Cash flows from investing activities Purchase of fixed assets (15,434) (14,288) Payments into time deposits (37,780) (12,324) Refund from time deposits 21,679 36,070 Purchase of investment securities (1,269) (4,104) Payments for lease and guarantee deposits (221) (487) Proceeds from collection of lease and guarantee deposits 536 252 Purchase of shares of subsidiaries resulting in change in scope of consolidation - (48,483) Other, net 37 162 Net cash used in investing activities (32,452) (43,203) Cash flows from financing activities Repayments of borrowings - (3,392) Purchase of treasury stock (20,164) (25,132) Repayments of lease obligations (1,889) (1,908) Dividends paid (9,653) (11,322) Other, net (50) (45) Net cash used in financing activities (31,759) (41,801) Effect of exchange rate change on cash and cash equivalents (1,367) 8,757 Net increase (decrease) in cash and cash equivalents (5,117) (24,056) Cash and cash equivalents at beginning of fiscal year 133,376 128,259 Cash and cash equivalents at end of fiscal year 128,259 104,202 Notes to the Consolidated Financial Statements (Notes on going concern assumption) Not applicable (Changes in accounting policies) Not applicable (Changes in accounting estimates) Not applicable (Changes in presentation method) Not applicable (Additional information) Not applicable (Business combinations) [Business combination through acquisition] MISUMI Group Inc. (the "Company") resolved at its Board of Directors' meeting held on April 17, 2025, that through its US subsidiary, MISUMI Investment USA Corporation ("MIUC") will acquire Fictiv Inc., including its seven subsidiaries ("Fictiv"), a provider of on-demand custom mechanical components procurement services for the US manufacturing industry, (the "Acquisition") and the Company entered into a merger agreement with Fictiv with respect to the Acquisition. Under the agreement, the acquisition was completed on June 17, 2025 (US time). Outline of business combination This Acquisition was executed through a reverse triangular merger method, where D1 Merger Subsidiary Corporation, a wholly owned subsidiary established by MIUC for this Acquisition, was merged with Fictiv. The surviving entity following the merger is Fictiv, and the shareholders of Fictiv received cash consideration for this transaction from MIUC. As a result, D1 Merger Subsidiary Corporation was absorbed into Fictiv and ceased to exist, with the surviving company becoming a wholly owned subsidiary of MIUC. Name and business of the acquired company Name: Fictiv Inc. Business: Provision of on-demand procurement services for custom mechanical components Reason for acquisition Fictiv, founded in 2013, offers on-demand procurement services for custom mechanical components for the US manufacturing industry. Fictiv has operations in four global regions in the US, China, India and Mexico, and approximately 400 employees, with a network of approximately 250 manufacturing partners worldwide. Fictiv has grown in recent years as a provider of on-demand procurement services for custom mechanical components. Fictiv's business has a high degree of affinity with our meviy business, featuring advanced technological capabilities, a robust customer service structure and a strong customer base. The main aim of this Acquisition is to enhance our digital services, including meviy, while concurrently expanding our customer domain. By acquiring Fictiv, we will rapidly increase the value we provide from the traditional realm of production equipment to the upstream area of product development within the value chain, establishing a significant starting point for sustainable growth. While the Company and Fictiv share similarities in business content and values, we excel in different areas in terms of product categories and regions of operations in a mutually complementary form. By welcoming Fictiv into the MISUMI Group, we believe we can leverage the strengths of both companies to create synergistic effects. Going forward, we will continue to expand our services globally to eliminate inefficiencies in the IA industry and enhance the "Customer's Time Value." Date of the business combination June 17, 2025 (US time) June 30, 2025 (Deemed acquisition date) Business combination legal structure Acquisition by way of "reverse triangular merger" in exchange for cash consideration Company name after the business combination Fictiv Inc. (the name remains unchanged) The percentage of voting rights acquired 100% Background for determining the acquiring company The Company's consolidated subsidiary, MIUC, acquired the shares for cash consideration. Scope of the acquired company's results included in consolidated financial statements July 1, 2025 to March 31, 2026 Breakdown of the acquisition cost of the acquired company and the composition of consideration by type Cash on hand (including accounts payable) ¥50,778 million Consideration for this Acquisition ¥50,778 million Details of principal acquisition cost of the acquired company Fees and commissions for advisory-related services: ¥1,065 million Goodwill amount, reason for recognizing the goodwill, amortization method, and amortization period of goodwill recognized Goodwill amount ¥41,992 million At the end of the interim consolidated accounting period, provisional accounting treatment had been carried out without completion of the allocation of acquisition cost. The allocation of acquisition cost was finalized at the end of the current consolidated accounting period, and the goodwill amount decreased by ¥8,914 million upon finalizing the provisional accounting treatment. Reason for recognizing the goodwill The above goodwill is mainly the result of the future excess earning power expected from business development. Amortization method and amortization period Equal amortization over 15 years Amount and major components of assets acquired, and liabilities assumed as of the business combination date Current assets ¥5,334 million Non-current assets ¥13,498 million Total assets ¥18,833 million Current liabilities ¥6,346 million Non-current liabilities ¥3,700 million Total liabilities ¥10,047 million Amount allocated to intangible assets other than goodwill, breakdown by type, and amortization period Type Amount Amortization period Technology-related assets ¥12,381 million 15 years Estimated amounts and calculation method of the impact on the consolidated statement of income assuming that the business combination was completed on the start date of the consolidated fiscal year end as of Mar.31.2026 Net sales ¥3,308 million Operating loss (¥7,766 million) ( Note) The above includes ¥6,919 million of expenses related to Fictiv's unvested share options and other share-based compensation, which is recognized separately from the business combination. (Calculation method of estimated amounts) The difference of net sales and profit and loss information calculated assuming that the business combination was completed on the start date of consolidated fiscal year and net sales and profit and loss information of the consolidated statement of income of the acquiring company shall be treated as the estimated amounts of the impact. Note that this explanatory note has not been confirmed by an audit. (Segment information) [Segment information] Description of reportable segments Reportable segments are parts of the Group whose financial data can be obtained separately. The Board of Directors reviews the financial data periodically to evaluate earnings and determine how to allocate business resources. The Group consists of MISUMI Group Inc. (the Company), 60 consolidated subsidiaries, 1 non-consolidated subsidiary and 3 affiliated companies, operating in three business segments: FA Business, Die Components Business and VONA Business. "FA Business" develops and provides standard components that help streamline production and save labor costs in a production system such as factory automation as well as auto locating modules for high-precision production equipment. Various optics research and experimental equipment and components for production equipment, which change due to the digitalization of electronic devices, are also developed and offered. In addition, the business develops and provides custom mechanical components. "Die Components Business" serves the automotive, electronics, and electrical machinery industries by developing and supplying standardized die components for metal press and plastic injection molding applications and precision die components. "VONA Business" provides third-party brands alongside original MISUMI-branded products mainly through online sales. It provides indirect materials such as MRO (consumables), etc. as well as manufacturing, automation-related equipment parts. Method of computing net sales, income/loss and assets/liabilities by reportable segment Accounting treatment applied for reportable business segments is consistent with those described in "Basis of Presentation of Consolidated Financial Statements." Income of reportable segments is presented on an operating income basis. Net sales, income/loss and assets/liabilities, and disaggregation of revenue by reportable segment For the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025) Reportable Segments Adjustments Consolidated FA Business Die Components Business VONA Business Total Net sales 135,803 86,451 179,732 401,987 - 401,987 Revenue from contracts with customers Sales to customers 135,803 86,451 179,732 401,987 - 401,987 Internal sales to other segments - - - - - - Total 135,803 86,451 179,732 401,987 - 401,987 Segment income* 22,510 9,504 14,466 46,480 - 46,480 (Million yen) *(Note) Total of segment income corresponds to operating income in the Consolidated Statements of Income. (Note) For the Group's internal management, assets (or liabilities) are not allocated to reportable segments. Thus, assets (or liabilities) by reportable segment are not presented. For the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026) (Million yen) Reportable Segments Adjustments Consolidated FA Business Die Components Business VONA Business Total Net sales 160,498 88,368 192,516 441,383 - 441,383 Revenue from contracts with customers Sales to customers 160,498 88,368 192,516 441,383 - 441,383 Internal sales to other segments - - - - - - Total 160,498 88,368 192,516 441,383 - 441,383 Segment income* 1 20,283 8,694 18,635 47,613 - 47,613 Segment income before amortization of goodwill *2 23,143 8,694 18,635 50,473 - 50,473 *1. Total of segment income corresponds to operating income in the Consolidated Statements of Income. *2. The additional segment profit by amortization expenses of goodwill and intangible asset related to the acquisition of Fictiv Inc. (Note) For the Group's internal management, assets (or liabilities) are not allocated to reportable segments. Thus, assets (or liabilities) by reportable segment are not presented. [Supplementary information] For the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025) Information by product and service Information by product and service is not presented because similar information is presented in segment information. Information by region Net sales (Million yen) Japan China Asia America Europe Others Total 177,688 79,331 64,010 44,697 26,801 9,458 401,987 (Note) Net sales represent the net sales of the Group in Japan and other countries or regions. Property, plant and equipment (Million yen) Japan China Vietnam America Others Total 15,520 15,404 4,437 9,175 7,984 52,522 Information by major customer Information by major customer is not presented because sales to no specific customer account for 10% or more of net sales in the consolidated statement of income. For the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026) Information by product and service Information by product and service is not presented because similar information is presented in segment information. Information by region Net sales (Million yen) Japan China Asia America Europe Others Total 177,221 91,947 72,045 63,307 27,676 9,184 441,383 (Note) Net sales represent the net sales of the Group in Japan and other countries or regions. Property, plant and equipment (Million yen) Japan China Vietnam America Others Total 17,173 16,495 4,101 9,540 9,326 56,638 Information by major customer Information by major customer is not presented because sales to no specific customer account for 10% or more of net sales in the consolidated statement of income. [Information on impairment losses of non-current assets by reportable segment] For the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025) For the Group's internal management, impairment losses of non-current assets are not allocated to reportable segments. Thus, impairment losses by reportable segment are ¥300 million. For the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026) The Company posted impairment losses of ¥92 million in the Die Components Business. The impairment loss on Companywide assets was ¥504 million. [Information on amortization of goodwill and unamortized balance by reportable segment] For the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025) Not applicable For the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026) (Million yen) Reportable Segment Total FA Business Amortization during the period 2,209 2,209 Balance at end of the period 43,962 43,962 [Information on gain from negative goodwill by reportable segment] Not applicable (Per share information) (Yen) For the fiscal year ended March 31, 2025 For the fiscal year ended March 31, 2026 Net assets per share 1,271.58 1,433.69 Net income per share 131.95 149.30 Net income per share (diluted) 131.62 149.00 Notes: The basis for the calculation of net assets per share is as follows. As of March 31, 2025 As of March 31, 2026 Total net assets (Million yen) 352,064 382,509 Net assets pertaining to shares of common stock (Million yen) 349,283 379,832 Major components of the difference (Million yen) Stock acquisition rights 1,663 1,293 Non-controlling interests 1,116 1,383 Number of shares of common stock outstanding (Thousands of shares) 285,057 285,221 Number of treasury stock (Thousands of shares) 10,372 20,288 Number of shares of common stock used for calculation of net assets per share (Thousands of shares) 274,684 264,933 The basis for the calculation of net income per share and net income per share (diluted) is as follows. For the fiscal year ended March 31, 2025 For the fiscal year ended March 31, 2026 Net income per share Net income attributable to owners of parent (Million yen) 36,549 40,457 Amount not attributable to common shareholders (Million yen) - - Net income attributable to owners of parent pertaining to shares of common stock (Million yen) 36,549 40,457 Average number of shares of common stock in the fiscal year (Thousands of shares) 277,000 270,982 Net income per share (diluted) Adjusted net income attributable to owners of parent (Million yen) - - Major components of the increase in the number of shares of common stock used for calculation of net income per share (diluted) (Thousands of shares) 676 547 Stock acquisition rights Increase in the number of shares of common stock (Thousands of shares) 676 547 Summary of residual shares not included in calculation of net income per share (diluted) because of no dilutive effect - - (Significant subsequent events) At the meeting of the Board of Directors held on April 30, 2026, in accordance with the provisions of Article 156 of the Companies Act, applied pursuant to Article 165, Paragraph 3 of the same Act, the Company resolved to acquire its treasury stocks. Reasons for the repurchase of treasury stocks This repurchase of treasury stock will be carried out as a flexible capital policy measure with the aim of improving capital efficiency and enhancing shareholder returns. 2. Type of stock to be repurchased Common stock of MISUMI Group Inc. 3. Total number of shares to be purchased Up to 13,000,000 shares (4.91% of total outstanding shares excluding treasury stock) 4. Total purchase price Up to 30,000 million yen 5. Acquisition period From May 22, 2026 ,to March 31, 2027 6. Acquisition method Market acquisition through a discretionary transaction method on the Tokyo Stock Exchange (Reference) Stock information as of March 31, 2026 Total number of outstanding shares (excluding treasury stock): 264,933,073 Number of treasury stock 20,288,824

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