Message from Top Management

My name is Arata Shimizu, and I assumed the position of Representative Director and President on April 1 of this year. I would like to express my sincere gratitude for your continued support and confidence in the MISUMI Group.

MISUMI's aim is to create platforms that support our customers' process innovation by leveraging our IT and AI capabilities alongside the Monozukuri industry expertise we have cultivated over the years.

I sincerely ask for the continued support and confidence in the MISUMI Group going forward.

In FY2025, 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, and by advancing that global Business Foundation, 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 U.S.. As a result, consolidated net sales for FY2025 reached ¥441,383 million (9.8% increase year-over-year), marking a new record high.

By segment, the FA business, while capital investment demand in Japan remained sluggish, overseas regions generally performed well, driven by proprietary initiatives including capturing 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). 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). VONA business performed steadily across all regions, resulting in net sales of ¥192,516 million (7.1% increase year-over-year).

In terms of profitability, the positive impact of increased sales volume driven by proprietary initiatives absorbed expenditure 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 year-over-year). This increase was 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..

Regarding the consolidated financial results for FY2026, 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 forecast 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.

I would like to introduce our principal initiatives for FY2026. Going forward, the Company will actively invest in three growth strategies: global expansion, the Digital Model Shift, and entry into growth industries, aiming to expand our business domains.

Regarding global expansion, the Company has designated the U.S., Asia, and China as priority regions and strategic markets, and we will focus our investments in these areas. In the U.S., we will accelerate market penetration by creating synergies between MISUMI USA and Fictiv. In Asia, over the next two years, we will grow our operations in India and Vietnam into regional subsidiaries with annual sales exceeding 10.0 billion yen, following South Korea and Thailand. In China, we will further deepen market penetration through a regional structure based on the integration of local customers, local product development, and local management.

With respect to our Digital Model Shift, the Company has played a leading role advancing digital transformation, as evidenced by its selection for DX Grand Prix 2026. We support customers’ process innovation by addressing challenges in “design,” “purchasing,” and “production” through AI-powered services. Going forward, we will continue to invest in AI-related initiatives to further enhance our services.

Regarding entry into growth industries, we will actively promote expansion into new industrial domains driven by AI. We plan to invest 2.0 billion yen in FY2026 to expand production capacity for automated stages used in manufacturing equipment for the data center market. In the agritech sector, we will engage in joint research through a business and capital alliance with Oishii Farm Corporation. In addition, in the fields of robotics and humanoids, we will consider and pursue partnerships and business and capital alliances with related companies.

MISUMI Group is committed to Growth Chain-reaction Aspired Management, which starts with employees’ willingness to take on challenges, and aims to contribute to the sustainable growth of the Monozukuri industry, our customer, while also supporting the sustainable development of society.

Furthermore, we have focused on achieving a balance between actively investing in growth across regions, businesses, new products, and services and returning value to shareholders, while also striving to enhance the equity spread through improved capital efficiency.

Regarding future cash allocation, we will prioritize the allocation of cash on hand and future operating cash flows, including the use of leverage, to growth investments, such as M&A. We plan to invest up to 150.0 billion yen over the next three years in areas such as global expansion, the Digital Model Shift, entry into growth industries, and strengthening our existing Business Foundations, with focus on AI.

To further enhance shareholder returns, the Company has decided to introduce a progressive dividend policy with a target payout ratio of 35%, starting in FY2026. This approach enables us to prioritize growth investments while providing more stable returns to shareholders.

With respect to share buybacks, if a surplus of funds are available following growth investments, we will conduct share buybacks flexibly, taking into account factors such as the share price level. We plan to repurchase shares worth 30.0 billion yen in FY2026.

Representative Director and President

Arata Shimizu