Message from Top Management

In FY2024, the global economy experienced a gradual recovery in demand for capital investment, particularly within the manufacturing sector. Demand for the automotive and telecommunications sectors remained firm, especially in China, Asia, and Japan. Meanwhile, in Europe, the market continues to stagnate, while in the US, a full-fledged recovery has yet to be realized due to growing uncertainty about the future and a decline in capital investment appetite.

In this economic environment, MISUMI Group is leveraging its unique Business MODEL, which encompasses manufacturing and distribution businesses. By advancing the global business foundation that support these operations and meeting our customer’s needs for a Reliable and Quick Delivery, we are contributing to the automation-related industries, particularly for the global manufacturing industry. We continue to develop new businesses, including new products and services, by capitalizing on the robust Business Foundations in IT, production, and logistics that have been built over the years, as well as our global network of sites, and striving to accurately capture customer demand. As a result, consolidated net sales for FY2024 reached a record high of ¥401,987 million (9.3% year-over-year increase). 

By segment, the FA business achieved success through regionally tailored unique measures, such as targeting telecommunications demand in China and promoting the Economy Series, as well as meviy in Japan, and net sales reached ¥135,803 million (14.9% year-over-year increase). In the Die components business, customer demand was primarily captured in China and Japan, driven by the gradual recovery of automotive-related sector, and net sales reached ¥86,451 million (8.2% year-over-year increase). In the VONA business, growth was driven by Asia and China, resulting in net sales of ¥179,732 million (6.0% year-over-year increase).

In terms of profits, operating income was ¥46,480 million (21.2% year-over-year increase), ordinary income was ¥49,901 million (20.9% year-over-year increase), and net income attributable to owners of the parent company was ¥36,549 million (29.8% year-over-year increase),  due to increased sales volume, improved product mix, and impact from foreign exchange while we continued expenditures related to measures aimed at sustainable growth.

We expect the global economy, including Japan, to face an increasingly uncertain business environment as the global supply chain continues to shift toward regional bloc formations and the effects of the U.S. tariff policy becoming apparent. A challenging business environment is anticipated to persist; in the industrial sector, however, there are high expectations that the demand for automation will continue to grow worldwide amid ongoing efforts to address various social issues.

To meet these customer needs, we will continue to advance our Business Foundations in IT, production and logistics, further refining our “globally Reliable, Quick Delivery” capabilities. We will accelerate the development of regional markets, new products and services, etc. to improve Customer’s Time Value, and promote the transition to the Digital MODELs tailored to meet the needs of each different market.

Our key initiatives for FY2025 are as follows.

We will continue to promote the Digital MODEL Shift to respond to the diversification of customer needs related to automation and establish a unique competitive advantage through synergies with region-specific growth strategies. As part of our digital initiatives undertaken to date, in the first installment, our AI platform for machinery parts procurement, “meviy,” was launched. Second installment involved the roll-out of the highly price-competitive “Economy Series,” and in the third installment, “D-JIT,” which accommodates the customer request for large quantities with quick delivery, successfully scaling up our operations. 

As the fourth installment following these, “floow,” which was just launched, is a total cost reduction service for indirect materials. For indirect materials procured by customers at their manufacturing factories, high-frequency consumables are constantly available through vending machines installed onsite, less frequent consumables are delivered via regular shipments and ad-hoc or infrequently consumables can be procured via our e-Commerce site or a dedicated representative. By structuring the supply chain according to purchase frequency, we not only reduce indirect material costs, but total costs, including labor costs. floow was first introduced in China, where over 1,700 MISUMI vending machines have been deployed at 420 factories. In Japan, following a trial involving 110 vending machines at 50 factories, this service was launched in FY2025, and we will now roll-out across Asia. By undertaking these initiatives, ¥400.0 billion in net sales, ¥43.5 billion in operating income, and ¥32.0 billion in net income attributable to owners of parent are forecasted for FY2025. This forecast reflects the impact of U.S. tariffs and a resulting decline in capital investment demand in various countries based on certain assumptions.

At the Board of Directors meeting held on April 17, 2025, the Company resolved the acquisition of Fictiv Inc. (“Fictiv”), a provider of on-demand custom mechanical components procurement services in the U.S.

We have transformed the procurement of machinery parts in the Industrial Automation (IA) industry by standardizing what were previously considered custom parts and listing them as "standard products" in catalogs, thus contributing to the enhancement of the Customer’s Time Value. Furthermore, even for "drawing-specified custom parts" that are difficult to standardize, we provide a service to customers through “meviy,” an AI platform for machinery parts procurement, creating synergies through cross-selling.

Founded in 2013, Fictiv provides on-demand procurement services for custom mechanical components in the U.S. manufacturing industry and has grown in recent years as a major player in on-demand procurement services. 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.

While our customer base lies primarily in the equipment manufacturing sector, Fictiv has high level of expertise and a proven track record in the field of product development and has established a customer domain distinct from our own. experience. Through this acquisition, we aim to further expand our "online processing business," which has high growth potential, and extend our business area by entering the product development domain with a new customer base. This will expand the business scope of our entire Group. We also believe that this will contribute to business expansion in the U.S. market, which we regard as a key region. We will pursue maximizing synergies across product, customer and regional axes by deepening cross-selling and utilizing the supply chain network.

It should be noted that the financial impact of this acquisition is currently under review and is not included in the aforementioned FY2025 earnings forecast.

MISUMI Group is committed to the Growth Chain-reaction Aspired Management, focusing on employees’ challenges to contribute to the sustainable growth of the Industrial Automation (IA) industry, our customers. We aim to support the sustainable development of society through automation and labor-saving in the IA industry. To achieve this, we actively invest in growth across regions, businesses, and the development of new products and services. We are also advancing our Business MODEL to enhance our Customers’ Time Value. Moreover, to increase corporate value over the medium to long term, we will accurately assess the cost of capital and aim for a return on capital that exceeds this cost, thereby widening the equity spread. We will balance growth investments from a medium- to long-term perspective with returning profits to our shareholders.

We will be implementing a flexible approach to stock repurchases based on factors such as cash position, investment opportunities for growth, and stock market trends.

The dividend payout ratio had been previously set at 30%; however, considering factors such as strengthening the management foundation, bolstering our financial position, and improving capital efficiency, we have revised our target dividend payout ratio to 35%.

Kosuke Nishimoto
Representative Director and Chairman

Ryusei Ono
Representative Director and President