Zojirushi : Consolidated Financial Results for the Three Months Ended February 20,2022

Consolidated Financial Results for the Three Months Ended February 20, 2022

[Japanese GAAP]

April 1, 2022

Company name: Zojirushi Corporation

Stock exchange listing: Tokyo Stock Exchange Securities code: 7965

URL:http://www.zojirushi.co.jp

Representative: Norio Ichikawa, Representative Director, President and Corporate Officer Contact: Shigehisa Okamoto, Corporate Officer and General Manager, Accounting Department Phone: [phone]

Scheduled date of filing quarterly report: April 5, 2022 Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: Available Schedule of quarterly financial results briefing session: None

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Three Months Ended February 20, 2022 (November 21, 2021 to

February 20, 2022)

(1) Consolidated Operating Results (cumulative) (% indicates changes from the previous corresponding period.)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Three months ended February 20, 2022 February 20, 2021	Million yen % 26,500 - 24,698 2.0	Million yen 3,979 % - 3,646 28.9	Million yen 4,148 % - 3,590 15.4	Million yen 2,756 % - 2,394 15.4

(Note) Comprehensive income: Three months ended February 20, 2022: ¥3,484 million [22.2%]

Three months ended February 20, 2021: ¥2,851 million [13.6%]

Basic earnings per share	Diluted earnings per share
Three months ended February 20, 2022 February 20, 2021	Yen 40.76 35.42	Yen - -

(Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,

March 31, 2020) and related standards from the beginning of the first quarter of the fiscal year ending November 20, 2022, and therefore changes from the previous corresponding period prior to the application of these accounting standards are not shown.

(2) Consolidated Financial Position

Total assets	Net assets	Equity ratio
As of February 20, 2022 As of November 20, 2021	Million yen 104,930 101,913	Million yen 78,975 76,837	% 74.7 74.8

(Reference) Equity: As of February 20, 2022: ¥78,336 million

As of November 20, 2021: ¥76,224 million

(Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,

March 31, 2020) and related standards from the beginning of the first quarter of the fiscal year ending November 20, 2022, and therefore the figures for the three months ended February 20, 2022 show the amounts after the application of these accounting standards.

2. Dividends

Annual dividends
1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
Fiscal year ended November 20, 2021 Fiscal year ending November 20, 2022	Yen - -	Yen 15.00	Yen -	Yen 19.00	Yen 34.00
Fiscal year ending November 20, 2022 (Forecast)	17.00	-	17.00	34.00

(Note) Revision of the dividend forecast announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 20, 2022 (November 21, 2021 to November 20, 2022)

(% indicates changes from the previous corresponding period.)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Basic earnings per share
2nd quarter (cumulative) Full year	Million yen 43,300 79,300 % - -	Million yen 3,000 4,400 % - -	Million yen 3,200 4,700 % - -	Million yen 2,250 3,400 % - -	Yen 33.27 50.27

(Note 1) Revision of the financial results forecast announced most recently: None

(Note 2) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and related standards from the beginning of the first quarter of the fiscal year ending November 20, 2022, and therefore the financial results forecast above shows the amounts after the application of these accounting standards. Accordingly, changes from the previous corresponding period are not shown.

* Notes:

• (1) Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: - (Name) -

  Excluded: - (Name) -

• (2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None

• (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement

  • 1) Changes in accounting policies due to the revision of accounting standards: Yes

  • 2) Changes in accounting policies other than 1) above: None

  • 3) Changes in accounting estimates: None

  • 4) Retrospective restatement: None

• (4) Total number of issued shares (common shares)

  • 1) Total number of issued shares at the end of the period (including treasury shares):

February 20, 2022:

November 20, 2021:

72,600,000 shares 72,600,000 shares

• 2) Total number of treasury shares at the end of the period:February 20, 2022:

November 20, 2021:

4,968,791 shares 4,968,791 shares

3) Average number of shares during the period (cumulative):Three months ended February 20, 2022:

Three months ended February 20, 2021:

67,631,209 shares 67,612,379 shares

* These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.

* Explanation of the proper use of financial results forecast and other notes

Forward-looking statements, such as performance forecasts, made in this document are based on information currently available to the Company and certain assumptions deemed reasonable, and the Company does not in any way guarantee the achievement of the projections. Actual results, etc., may differ significantly due to various factors.

Table of Contents - Attachments

1. Qualitative Information on Financial Results for the Period under Review ........................................ 2

(1) Explanation of Operating Results ................................................................................................... 2

(2) Explanation of Financial Position ................................................................................................... 3

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Statements 4

2. Quarterly Consolidated Financial Statements and Principal Notes ..................................................... 5

(1) Quarterly Consolidated Balance Sheets .......................................................................................... 5

(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................. 7

(3) Notes to Quarterly Consolidated Financial Statements ................................................................... 9

(Notes on going concern assumption) ........................................................................................ 9

(Notes when there are significant changes in amounts of equity) .............................................. 9

(Changes in accounting policies) ................................................................................................ 9

1. Qualitative Information on Financial Results for the Period under Review

(1) Explanation of Operating Results

During the period under review (November 21, 2021 to February 20, 2022), there was a growing sense of global economic slowdown due to the spread of the Omicron variant of COVID-19 as well as increased costs owing to the rising prices and supply restrictions of raw materials among other factors. Meanwhile, due to factors such as falling stock prices worldwide against the backdrop of the Ukraine crisis and concerns over prolonged inflation owing to soaring resource prices, the uncertain outlook is expected to continue.

Amid such management environment, the Group entered the final fiscal year of its new two-year medium-term plan, ADAPT Phase II, that accounts for the new normal, and has worked on horizontal expansion of domains, vertical expansion of domains, and a stronger management platform in order to develop Zojirushi from the current brand of household products into a food and lifestyle solution brand.

For the period under review, the Group's net sales increased by ¥1,801 million year on year to ¥26,500 million (¥24,698 million for the same period a year earlier). Net sales by product category also increased year on year in cooking appliances, household and thermal products, and household appliances. On a consolidated basis, domestic net sales amounted to ¥14,775 million (¥15,049 million for the same period a year earlier) and overseas net sales amounted to ¥11,724 million (¥9,649 million for the same period a year earlier), resulting in overseas net sales making up 44.2% of net sales. Outside of Japan, net sales declined in Southeast Asia but increased year on year in North America, Taiwan, and China.

As for profits, the Company recorded operating profit of ¥3,979 million (¥3,646 million for the same period a year earlier) due to increased net sales and a decrease in selling, general and administrative expenses. Ordinary profit was ¥4,148 million (¥3,590 million for the same period a year earlier), and profit attributable to owners of parent was ¥2,756 million (¥2,394 million for the same period a year earlier).

From the beginning of the period under review, the Group has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020; hereinafter, "Revenue Recognition Standard") and related standards. As a result, the accounting treatment of revenue for the period under review is different from that for the same period a year earlier. Therefore, year-on-year percentage changes are not presented in the explanation of operating results above. For details on the impact of the application of the Revenue Recognition Standard and related standards on financial position and operating results, see "Changes in accounting policies" in "(3) Notes to Quarterly Consolidated Financial Statements" under "2. Quarterly Consolidated Financial Statements and Principal Notes."

Business results by product category were as follows.

• 1) Cooking appliances

  Net sales of cooking appliances amounted to ¥18,929 million (¥17,979 million for the same period a year earlier).

  In Japan, overall sales of rice cookers/warmers decreased year on year due to a slump in the sales of rice cookers/warmers in the affordable price range, despite continued strong sales of the Embudaki series, the highest grade of induction heating pressure rice cookers which reproduces heat from swaying flame of traditional cooking stoves. Sales of electric pots were weak due in part to the shrinking market, while electric kettles recorded strong sales. Sales of electric cooking appliances declined year on year owing to declined sales of electric griddles, toaster ovens, and other products for which demand had been strong, due partly to the softening of demand for at-home consumption caused by the spread of COVID-19.

  Overseas, sales of rice cookers/warmers, electric pots, and electric cooking appliances were strong in the North American, Chinese, and Taiwanese markets. Especially in the North American market, sales of cooking appliances were strong as the economy was recovering and demand for at-home consumption continued.

• 2) Household and thermal products

  Net sales of household and thermal products amounted to ¥5,309 million (¥5,071 million for the same period a year earlier).