Message from Top Management

During FY2023, the global economy continued to be difficult due to sluggish global investment demand, particularly in the manufacturing sector. In China, demand remained generally sluggish due to uncertain economic conditions, and in Japan and Asia, with the exceptions of some areas, demand remained weak but showed a gradual recovery trend toward the end of the period. In Europe and the U.S., on the other hand, geopolitical risks and other economic slowdowns led to a deceleration starting in the second half of the fiscal year. 

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. 

To further strengthen the solid business foundation and global network in IT, manufacturing, and logistics that we have built up over the years, we completed an overhaul of the core IT system in Japan, our largest base. At the same time, while we continued to accelerate our new business policies, including the development of new products and services, consolidated net sales were ¥367,649 million (1.5% decrease year-over-year) as impacted by weak global demand for capital investment. 
By segment, in the FA business, sales in Japan managed to maintain the same level as the previous year, but overseas sales, particularly in China, were sluggish, resulting in sales of ¥118,219 million (3.0% decrease year-over- year). The Die Components business, while generally weak in all regions, captured automotive-related demand, particularly in Asia and Europe, which, supported by exchange rate effects, contributed to sales of ¥79,932 million (1.0% increase year-over-year). In the VONA business, sales in Japan managed to maintain the same level as the previous year, but overseas sales, particularly in China and Asia, remained sluggish due to the slowdown in customer factory operations. As a result, sales were ¥169,497 million (1.5% decrease year-over-year). 

In terms of profit, as affected by decreased sales volume and increased costs related to the introduction of a new core IT system for Business MODEL innovation, etc., operating income was ¥38,365 million (17.7% decrease year-over-year), and ordinary income was ¥41,265 million (13.7% decrease year-over-year). Net income attributable to owners of parent was ¥28,152 million (17.9% decrease year-over-year). 

We expect the global economy, including Japan, to face an uncertain business environment as the global supply chain continues to shift toward regional blocs. In the industrial sector, however, there are high expectations that the demand for automation will continue to grow worldwide as various social issues are addressed.

To meet these customer needs, we will continue to advance our IT, production, and logistics business foundations and further refine our “globally reliable, quick delivery.” We will also accelerate the development of regional markets, new businesses, new products and services, etc. to improve customer's time value, and promote the transition to the Digital MODEL that fits each market to respond to the different needs of each market.

Our key initiatives for FY2024
We are committed to continuously developing the Digital MODELs to meet the increasingly diverse automation needs of our customers. We will also strengthen our capabilities to respond to the different needs of customers in each market, building a region-specific optimal MODEL that adapts to each competitive environment. The resulting synergy will allow us to build a unique competitive advantage.

Our “meviy” service, which was developed as the first initiative toward the “Digital MODEL Shift,” has enabled instant quotes and shipping in as little as one day by simply uploading 3D data or 2D drawings for machine components. To adapt to customers’ diverse needs, we will continue to strengthen the “product enhancement” and “system integration” and launch new initiatives that leverage our forte to accelerate global growth.
The second initiative was the introduction of our competitively priced “Economy Series” products in China, Asia, and Japan. To accelerate market penetration in each market, we are expanding our product offering through product development and differentiation.
In addition, our third initiative was the full launch of a new service called "D-JIT*", which brings innovation to customers' procurement process. We are transforming ourselves from "MISUMI for small volume and quick delivery" to "MISUMI for large volume, too" in order to meet customers' desired quantities. With a "dynamic" supply system that takes advantage of IT, we will achieve a successful global expansion from Japan.

By taking these and other initiatives, we forecast sales of ¥393.0 billion, operating income of ¥46.0 billion, and net income attributable to owners of the parent of ¥34.4 billion in FY2024.

MISUMI Group is committed to the Growth Chain-reaction management, which starts with the employees’ challenges, to contribute to the sustainable growth of the IA (Industrial Automation) industry, which is our customer, and to support the sustainable development of society through automation and labor saving in the IA industry. To achieve this, we are actively investing for growth in the development of regions, businesses, new products, and services, and are working to advance our Business MODEL that contributes to increasing customer’s time value. In addition, to increase corporate value over the medium to long term, the Company will accurately assess the cost of capital and aim for a return on capital that exceeds the cost of capital and widening the equity spread. To that end, we will strike a balance between investments in growth from a medium to long-term perspective and the return of profits to our shareholders.

Stock repurchases will be implemented flexibly depending on the situation, such as cash position, investment opportunities for growth, and stock market trends.
The purpose of this stock repurchase is to enhance shareholder returns and to facilitate a flexible capital policy.

Details of matters relating to the repurchase of treasury stocks
Total purchase price : Up to 20.0 billion yen
Maximum number of stocks to be purchased : 12,000,000 stocks
Acquisition period :  From May 17, 2024, to November 29, 2024

We will revise the benchmark payout ratio from 25% to 30% starting from the year-end dividend for FY2023, considering the management foundation expansion, strengthening of the financial position, and capital efficiency improvement.

Representative Director and Chairman
Kosuke Nishimoto

Representative Director and President
Ryusei Ono