Consolidated Financial Results for the Fiscal Year Ended November 20, 2021 [Japanese GAAP] December 24, 2021 Company name: Zojirushi Corporation Stock exchange listing: Tokyo Stock Exchange Securities code: 7965 URL: https://www.zojirushi.co.jp Representative: Norio Ichikawa, Representative Director, President and Corporate Officer Contact: Shigehisa Okamoto, Corporate Officer and General Manager, Accounting Department Phone: +81-6-6356-2368 Scheduled date of general shareholders’ meeting: February 17, 2022 Scheduled date of commencing dividend payments: February 18, 2022 Scheduled date of filing securities report: February 18, 2022 Availability of supplementary explanatory materials on annual financial results: Available Schedule of annual financial results briefing session: Scheduled 1. Consolidated Financial Results for the Fiscal Year Ended November 20, 2021 (November 21, 2020 to (Amounts of less than one million yen are rounded down.) November 20, 2021) (1) Consolidated Operating Results Net sales (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Ordinary profit Operating profit Fiscal year ended November 20, 2021 November 20, 2020 (Note) Comprehensive income: Fiscal year ended November 20, 2021: ¥5,848 million [56.2%] Fiscal year ended November 20, 2020: ¥3,744 million [17.6%] % Million yen 6,399 5,440 % Million yen 6,791 5,725 Million yen 77,673 74,947 17.6 (0.1) 18.6 (2.6) 3.6 (5.3) % Million yen 4,509 3,943 % 14.3 (3.4) Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales Fiscal year ended % Yen 8.2 – November 20, 2021 November 20, 2020 7.3 – (Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended November 20, 2021: ¥(170) million Yen 66.69 58.34 % 6.1 5.5 % 6.8 6.1 Fiscal year ended November 20, 2020: ¥256 million (2) Consolidated Financial Position Total assets As of November 20, 2021 As of November 20, 2020 (Reference) Equity: As of November 20, 2021: ¥76,224 million As of November 20, 2020: ¥72,317 million Million yen 101,913 97,019 Net assets Million yen 76,837 72,917 (3) Consolidated Cash Flows Equity ratio Net assets per share Yen 1,127.06 1,069.58 % 74.8 74.5 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Fiscal year ended November 20, 2021 November 20, 2020 Million yen (799) (1,608) Million yen (2,365) (2,206) Cash and cash equivalents at end of period Million yen 35,209 32,582 Million yen 5,150 7,366 2. Dividends Fiscal year ended November 20, 2020 Fiscal year ended November 20, 2021 Fiscal year ending November 20, 2022 (Forecast) 1st quarter-end Annual dividends 3rd quarter-end 2nd quarter-end Year-end Total dividends (annual) Payout ratio (consolidated) Total Yen Yen Yen Yen Yen Million yen – – – 13.00 15.00 17.00 – – – 13.00 26.00 1,757 19.00 34.00 2,299 51.0 17.00 34.00 67.6 Ratio of dividends to net assets (consolidated) % % 44.6 2.5 3.1 3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 20, 2022 (November 21, 2021 to November 20, 2022) Net sales Operating profit Ordinary profit (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen – 43,300 2nd quarter (cumulative) Full year 50.27 – (Note) The Company is applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and related standards from the beginning of the fiscal year ending November 20, 2022, and therefore the financial results forecast above shows the amounts after the adoption of these accounting standards. Accordingly, changes from the previous corresponding period are not shown. 79,300 33.27 3,000 3,200 2,250 4,400 4,700 3,400 – – – – – – * 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) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (3) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): November 20, 2021: November 20, 2020: November 20, 2021: November 20, 2020: 2) Total number of treasury shares at the end of the period: 3) Average number of shares during the period: Fiscal year ended November 20, 2021: Fiscal year ended November 20, 2020: 67,623,974 shares 67,608,818 shares 72,600,000 shares 72,600,000 shares 4,968,791 shares 4,987,621 shares (Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended November 20, 2021 (November 21, 2020 to November 20, 2021) (1) Non-consolidated Operating Results Net sales Fiscal year ended November 20, 2021 November 20, 2020 (% indicates changes from the previous corresponding period.) Operating profit Ordinary profit Profit Million yen 66,784 64,800 % Million yen 4,535 3,349 3.1 (4.6) % Million yen 5,590 4,057 35.4 1.3 % Million yen 4,031 2,952 37.8 (8.0) % 36.6 (8.3) Basic earnings per share Diluted earnings per share Fiscal year ended November 20, 2021 November 20, 2020 Yen 59.62 43.67 (2) Non-consolidated Financial Position Yen – – Total assets As of November 20, 2021 As of November 20, 2020 (Reference) Equity: As of November 20, 2021: ¥62,917 million As of November 20, 2020: ¥60,967 million Million yen 80,380 79,172 Net assets Million yen 62,917 60,967 Equity ratio Net assets per share Yen 930.30 901.72 % 78.3 77.0 * These consolidated financial results are outside the scope of audit 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. Overview of Operating Results, etc. ………………………………………………………………………………………. 2 (1) Overview of Operating Results for the Fiscal Year under Review ………………………………………….. 2 (2) Overview of Financial Position for the Fiscal Year under Review …………………………………………. 3 (3) Overview of Cash Flows for the Fiscal Year under Review …………………………………………………… 4 (4) Future Outlook ……………………………………………………………………………………………………………….. 5 2. Basic Policy on Selection of Accounting Standards …………………………………………………………………. 6 3. Consolidated Financial Statements and Principal Notes …………………………………………………………… 7 (1) Consolidated Balance Sheets ……………………………………………………………………………………………. 7 (2) Consolidated Statements of Income and Comprehensive Income ………………………………………….. 9 (3) Consolidated Statements of Changes in Equity …………………………………………………………………. 11 (4) Consolidated Statements of Cash Flows …………………………………………………………………………… 13 (5) Notes to Consolidated Financial Statements ……………………………………………………………………… 14 (Notes on going concern assumption) ………………………………………………………………………….. 14 (Consolidated balance sheets) …………………………………………………………………………………….. 14 (Consolidated statements of income) …………………………………………………………………………… 14 (Consolidated statements of cash flows) ………………………………………………………………………. 16 (Segment information, etc.) ………………………………………………………………………………………… 16 (Per share information) ………………………………………………………………………………………………. 17 (Significant subsequent events) …………………………………………………………………………………… 17 1 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Fiscal Year under Review The global economy during the fiscal year under review continued to head toward recovery thanks to gradual resumptions of economic activities prompted by the progress in vaccinations and the effects of economic stimulus packages, despite resurgence of the COVID-19 pandemic. Following the economic recovery, however, rising inflation is raising concerns worldwide, mainly due to shortages of supply from increased demand, disruptions in supply chains, and increases in raw materials costs. Moreover, the outlook is expected to remain uncertain, with economic activities significantly swayed by how COVID-19 develops, such as the recent emergence of new variants. Amid such management environment, on November 21, 2020, the Group initiated its new two-year medium-term plan, ADAPT Phase II, that accounts for the new normal, and has since 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 horizontal expansion of domains, we worked on developing new markets and sales channels with existing products and expanding our product lineup to deepen existing markets and sales channels. For vertical expansion of domains, we opened a bento box store, “Zojirushi Ginpaku Bento,” in Osaka following the opening of gohan (rice) restaurant, “Zojirushi Gohan Restaurant” in 2018, as part of our business development centered around delicious rice. In addition, we opened Zojirushi Direct, a direct sales e-commerce website offering Zojirushi products, and began offering Zojirushi Rental Service, comprised of Trial Rentals with which customers can try our products before purchasing and Seasonal Rentals whereby customers can use our products just for the period they need and return them after use. As our efforts to build a stronger management platform, we improved productivity and enhanced price competitiveness through streamlining of operations, established an organizational structure that facilitates the execution of ADAPT Phase II, and advanced our initiatives on ESG issues. As a result, net sales for the fiscal year under review increased by ¥2,725 million year on year to ¥77,673 million (up 3.6% year on year). 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 ¥51,995 million (down 1.1% year on year) and overseas net sales amounted to ¥25,677 million (up 14.6% year on year), resulting in overseas net sales making up 33.1% of net sales. Outside of Japan, net sales increased year on year in regions including North America where e-commerce sales are strong, as well as China and Southeast Asia. As for profits, the Company recorded operating profit of ¥6,399 million (up 17.6% year on year) due to an increase in net sales mainly of high added-value products. Ordinary profit was ¥6,791 million (up 18.6% year on year), and profit attributable to owners of parent was ¥4,509 million (up 14.3% year on year). Business results by product category were as follows. 1) Cooking appliances Net sales of cooking appliances amounted to ¥55,806 million (up 2.7% year on year). In Japan, overall sales of rice cookers/warmers decreased year on year due to a slump in the sales of products in the affordable price range, despite 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. Among electric cooking appliances, steady sales of electric griddles and coffee makers, whose demand was strong due to at-home consumption, resulted in a year-on-year increase. Overseas, sales of rice cookers/warmers, electric pots, and electric cooking appliances were strong in the North American, Chinese, and Southeast Asian markets. In particular, sales of cooking appliances increased significantly in the North American market due to increased demand from at-home consumption. 2 2) Household and thermal products Net sales of household and thermal products amounted to ¥16,222 million (up 5.7% year on year). In Japan, sales increased significantly year on year, bouncing back from a significant decline in the previous fiscal year. Stainless-steel vacuum bottles led the sales, thanks in part to a strong performance of stainless-steel vacuum mugs with a seamless one-piece lid, which is the first in the industry to integrate a stopper and a gasket. Overseas, overall sales increased year on year due to a strong performance of stainless-steel vacuum bottles in the Chinese market, which is a mainstay for the product. Net sales of household appliances amounted to ¥3,871 million (up 5.6% year on year). In Japan, sales increased year on year due to strong performances of humidifiers, bedding dryers, and air cleaners prompted by higher standards of hygiene. 3) Household appliances 4) Others Cooking appliances Household and thermal products Household appliances Others Net sales Net sales of others amounted to ¥1,772 million (up 9.7% year on year). Net sales by region and product category (Million yen) Overseas Japan Americas Other Subtotal Total YoY (%) Asia Of which, China 39,899 9,400 3,838 6,488 17 15,907 55,806 2.7 7,060 7,483 5,053 1,106 571 9,162 16,222 5.7 3,806 64 0 – 64 3,871 1,228 396 108 144 543 1,772 – 2 51,995 17,344 9,001 7,740 592 25,677 77,673 Composition (%) 66.9 22.3 11.6 10.0 0.8 33.1 100.0 5.6 9.7 3.6 – (2) Overview of Financial Position for the Fiscal Year under Review As for financial position as of the end of the fiscal year under review, total assets increased by ¥4,894 million from the end of the previous fiscal year, and liabilities increased by ¥974 million. In addition, net assets increased by ¥3,920 million. As a result, equity ratio increased by 0.3 percentage points to 74.8%. The increase of ¥4,894 million in total assets was attributable to increases of ¥3,795 million in current assets and ¥1,099 million in non-current assets. The increase of ¥3,795 million in current assets was mainly due to increases of ¥2,882 million in cash and deposits, ¥1,438 million in notes and accounts receivable – trade, and ¥574 million in raw materials and supplies, partially offset by decreases of ¥207 million in electronically recorded monetary claims – operating, ¥400 million in securities, ¥198 million in merchandise and finished goods, and ¥289 million in other current assets. The increase of ¥1,099 million in non-current assets was mainly due to increases of ¥948 million in leased assets and ¥1,255 million in retirement benefit asset, partially offset by decreases of ¥116 million in buildings and structures, ¥263 million in tools, furniture and fixtures, ¥276 million in software, ¥326 million in investment securities, and ¥126 million in deferred tax assets. 3 The increase of ¥974 million in liabilities was attributable to an increase of ¥1,216 million in current liabilities, partially offset by a decrease of ¥242 million in non-current liabilities. The increase of ¥1,216 million in current liabilities was mainly due to increases of ¥1,500 million in current portion of long-term borrowings, ¥981 million in accrued expenses, and ¥118 million in income taxes payable, partially offset by decreases of ¥1,021 million in notes and accounts payable – trade and ¥395 million in other current liabilities. The decrease of ¥242 million in non-current liabilities was mainly due to a decrease of ¥1,500 million in long-term borrowings, partially offset by increases of ¥912 million in lease obligations and ¥238 million in deferred tax liabilities. The increase of ¥3,920 million in net assets was mainly due to profit attributable to owners of parent of ¥4,509 million recorded and increases of ¥1,039 million in foreign currency translation adjustment and ¥441 million in remeasurements of defined benefit plans, partially offset by dividends of surplus of ¥1,893 million and a decrease of ¥222 million in valuation difference on available-for-sale securities. (3) Overview of Cash Flows for the Fiscal Year under Review Cash and cash equivalents (hereinafter, “cash”) at the end of the fiscal year under review increased by ¥2,627 million from the end of the previous fiscal year to ¥35,209 million. (Cash Flows from Operating Activities) Net cash provided by operating activities totaled ¥5,150 million, a decrease of ¥2,216 million compared with the previous fiscal year. This was mainly due to cash inflows from profit before income taxes of ¥6,827 million and an increase in accrued expenses of ¥855 million, partially offset by cash outflows from an increase in trade receivables of ¥1,022 million, a decrease in trade payables of ¥1,386 million, and income taxes paid of ¥1,909 million. (Cash Flows from Investing Activities) Net cash used in investing activities totaled ¥799 million, a decrease of ¥808 million compared with the previous fiscal year. This was mainly due to cash outflows from purchase of property, plant and equipment of ¥812 million and purchase of intangible assets of ¥270 million, partially offset by cash inflows from proceeds from sale and redemption of securities of ¥400 million. (Cash Flows from Financing Activities) Net cash used in financing activities totaled ¥2,365 million, an increase of ¥159 million compared with the previous fiscal year. This was mainly due to cash outflows from dividends paid of ¥1,893 million. (Sources of capital and liquidity) The Group’s capital needs primarily include operating expenses such as expenses for manufacturing products and selling, general and administrative expenses, as well as capital investments including molds and other manufacturing facilities and information processing systems. Funds to meet these capital needs are self-financed in principle with cash flows from operating activities, but the Group may procure funds using borrowings from financial institutions and other means as needed. 4 (4) Future Outlook The economic climate is expected to continue picking up, because restrictions on economic activities are anticipated to be gradually loosened as vaccinations progress, and the recovering trend of the global economy will be maintained. However, the Group presumes that the management environment will remain uncertain, because various countries are expected to continue the process of trial and error to control the infection while maintaining economic activities, given the as-yet unclear outlook on the end of the pandemic due in part to another surge in COVID-19 cases mainly in Europe and new variants spreading worldwide. Amid such management environment, the Group will position the fiscal year ending November 20, 2022, which is the final year of ADAPT Phase II, as a year of laying the groundwork for new growth, and work on expanding business domains and developing a stronger management platform, in order to achieve the management policy of “Brand Innovation: strengthening Zojirushi as a brand of household products and developing it into a food and lifestyle solution brand.” Specifically, in domestic businesses, we will work on strengthening proposal sales and cultivating new sales channels in pursuit of the optimal balance between profit and market share, and aim to launch new products in line with changes in society and lifestyles and develop businesses centered around delicious rice. In overseas businesses, we will launch products that meet the specific needs of overseas customers, cultivate and expand the e-commerce market, and expand sales channels in growing regions, to put the business on a sustainable growth trajectory. At the same time, we will improve efficiency in operations and development, reestablish the supply chain, and enhance human resources and organizational structures, while striving to increase social value by promoting our initiatives on ESG issues. Our current forecast for the fiscal year ending November 20, 2022 is as follows. We had set medium-term financial results targets to reach ¥80,000 million in consolidated net sales and ¥6,000 million in consolidated operating profit (operating profit ratio of 7.5%) in the fiscal year ending November 20, 2022. However, the Group forecasts net sales of ¥79,300 million in the full-year consolidated financial results forecast, because the adoption of the Accounting Standard for Revenue Recognition and related standards (hereinafter, the “Standards for Revenue Recognition”) will reduce net sales by roughly ¥1,700 million, despite increases in revenue expected for both domestic and overseas businesses due to launch of new products, enhancement of new businesses, and strengthening of sales activities. Consolidated operating profit for the fiscal year ended November 20, 2021 was ¥6,399 million (operating profit ratio of 8.2%), achieving the target a year ahead of the plan. However, in the fiscal year ending November 20, 2022, the Group expects cost of sales to increase due to the impact of foreign exchange rates and a significant surge in prices of raw materials such as aluminum, copper, nickel, and resin; expenses to increase due to more active investments in advertising and sales activities associated with the launch of jointly developed products scheduled in the fall of 2022; and operating profit to decrease due to the adoption of the Standards for Revenue Recognition. Accordingly, the Group forecasts operating profit of ¥4,400 million, ordinary profit of ¥4,700 million, and profit attributable to owners of parent of ¥3,400 million. Although future developments of the soaring raw materials prices are uncertain, the Group will move forward with the expansion of business domains and a review of the sales prices of new products, in an effort to put the business back on a sustainable growth trajectory in the fiscal year ending November 20, 2023 onward. 5 Net sales Operating profit Ordinary profit (Million yen) Consolidated financial results forecast Amount YoY 79,300 4,400 4,700 3,400 – – – – Profit attributable to owners of parent (Notes) 1. The above consolidated financial results forecast assumes exchange rate of 1 USD = ¥110. 2. The Company is applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and related standards from the beginning of the fiscal year ending November 20, 2022, and therefore the financial results forecast above shows the amounts after the adoption of these accounting standards. Accordingly, year-on-year changes are not shown. 2. Basic Policy on Selection of Accounting Standards The Group plans to prepare its consolidated financial statements using the Japanese GAAP for the time being, taking into consideration the comparability of consolidated financial statements across periods and among companies. The Group plans to appropriately address the adoption of IFRS upon considering various circumstances in Japan and overseas. 6 3. Consolidated Financial Statements and Principal Notes (1) Consolidated Balance Sheets As of November 20, 2020 As of November 20, 2021 (Million yen) Assets Current assets Cash and deposits Notes and accounts receivable – trade Electronically recorded monetary claims – operating Securities Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Total property, plant and equipment Intangible assets Software Other Total intangible assets Investments and other assets Investment securities Deferred tax assets Retirement benefit asset Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 7 34,391 11,720 1,575 400 19,994 268 2,053 3,258 (7) 73,654 12,774 (10,133) 2,640 3,662 (3,257) 404 9,441 (7,687) 1,753 7,429 949 (334) 615 3 12,848 774 121 896 *1 6,565 617 2,150 294 (8) 9,620 23,364 97,019 37,274 13,159 1,368 – 19,796 265 2,627 2,968 (9) 77,450 12,880 (10,356) 2,524 3,663 (3,295) 368 9,465 (7,974) 1,490 7,431 2,039 (475) 1,564 39 13,418 498 117 616 *1 6,239 491 3,406 300 (8) 10,428 24,463 101,913 As of November 20, 2020 As of November 20, 2021 (Million yen) Liabilities Current liabilities Notes and accounts payable – trade Current portion of long-term borrowings Lease obligations Accrued expenses Income taxes payable Provision for bonuses Provision for product warranties Other Total current liabilities Non-current liabilities Long-term borrowings Lease obligations Deferred tax liabilities Retirement benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 8,967 – 335 5,832 1,039 1,129 179 897 18,381 1,500 271 770 2,853 324 5,720 24,102 4,022 4,214 63,474 (965) 70,746 1,913 129 (471) 1,570 599 72,917 97,019 7,945 1,500 366 6,813 1,158 1,139 171 502 19,598 – 1,184 1,008 2,933 351 5,478 25,076 4,022 4,243 66,090 (961) 73,395 1,690 1,168 (30) 2,829 612 76,837 101,913 8 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 (Million yen) 77,673 *1, *2 51,023 26,649 *1, *3 20,250 6,399 56 134 35 – 18 108 496 *4 56 109 1,016 27 387 170 37 623 6,791 *5 2 56 59 *6 0 *7 21 1 – – – 23 6,827 2,013 278 2,291 4,536 26 4,509 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Purchase discounts Share of profit of entities accounted for using equity method Royalty income Rental income Foreign exchange gains Refund of Chinese value-added-tax Other Total non-operating income Non-operating expenses Interest expenses Sales discounts Share of loss of entities accounted for using equity method Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Total extraordinary income Extraordinary losses Loss on sale of non-current assets Loss on retirement of non-current assets Loss on sale of investment securities Loss on valuation of investment securities Information security expenses Loss on COVID-19 Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 74,947 *1, *2 49,620 25,327 *1, *3 19,886 5,440 68 122 33 256 33 112 34 *4 42 77 781 34 428 – 34 497 5,725 – 4 4 *6 0 *7 19 0 2 *8 41 *9 35 100 5,629 1,544 88 1,632 3,997 53 3,943 9 Consolidated Statements of Comprehensive Income Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 (Million yen) 3,997 (92) 32 (90) (101) *1 (252) 3,744 3,709 34 4,536 (222) 1,113 441 (20) *1 1,312 5,848 5,768 80 10 (3) Consolidated Statements of Changes in Equity Fiscal year ended November 20, 2020 (from November 21, 2019 to November 20, 2020) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 4,022 – 4,022 4,200 13 13 4,214 61,288 (1,757) 3,943 2,186 63,474 (Million yen) Total shareholders’ equity 68,545 (1,757) 3,943 (0) 15 2,201 70,746 (966) (0) 1 1 (965) Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets 2,005 (92) (92) 1,913 180 (50) (50) 129 (381) (90) (90) (471) 1,804 (234) (234) 1,570 668 (68) (68) 599 71,018 (1,757) 3,943 (0) 15 (303) 1,898 72,917 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 11 Fiscal year ended November 20, 2021 (from November 21, 2020 to November 20, 2021) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings (Million yen) Total shareholders’ equity Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 4,022 – 4,022 4,214 28 28 4,243 63,474 (1,893) 4,509 2,616 66,090 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 1,913 (222) (222) 1,690 129 1,039 1,039 1,168 (471) 441 441 (30) 1,570 1,258 1,258 2,829 (965) (0) 3 3 (961) 599 12 12 612 70,746 (1,893) 4,509 (0) 32 2,648 73,395 72,917 (1,893) 4,509 (0) 32 1,271 3,920 76,837 12 For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 (Million yen) (4) Consolidated Statements of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Decrease (increase) in retirement benefit asset Increase (decrease) in retirement benefit liability Increase (decrease) in provision for product warranties Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Loss (gain) on valuation of investment securities Loss (gain) on sale of investment securities Loss (gain) on sale of non-current assets Loss on retirement of non-current assets Information security expenses Loss on COVID-19 Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accrued expenses Other, net Subtotal Interest and dividends received Interest paid Payments information security control expense Payments for loss on COVID-19 Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Proceeds from sale and redemption of securities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale and redemption of investment securities Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Repayments of lease obligations Purchase of treasury shares Dividends paid Dividends paid to non-controlling interests Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 13 5,629 2,344 (0) 89 (617) 159 (9) (190) 34 (256) 2 (4) 0 19 41 35 56 (995) 1,583 470 (91) 8,300 314 (34) (41) (35) (1,136) 7,366 (636) 300 – (1,084) 0 (169) (32) 10 4 (1,608) (344) (0) (1,758) (103) (2,206) 25 3,577 29,005 *1 32,582 6,827 2,078 1 4 (644) 97 (8) (190) 27 170 – (55) (2) 21 – – (1,022) 171 (1,386) 855 (27) 6,918 169 (27) – – (1,909) 5,150 (974) 791 400 (812) 2 (270) (33) 97 0 (799) (404) (0) (1,893) (67) (2,365) 642 2,627 32,582 *1 35,209 (5) Notes to Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Consolidated balance sheets) *1 Investments in associates are as follows. As of November 20, 2020 As of November 20, 2021 (Million yen) Investment securities (shares) 1,724 1,728 (Consolidated statements of income) *1 Research and development expenses included in general and administrative expenses and manufacturing expenses for the fiscal year under review are as follows. (Million yen) For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 818 784 *2 Amounts of write-downs based on declined profitability of inventories held for the purpose of ordinary sales are as follows. The amounts below reflect offsetting with reversals. For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 (Million yen) Cost of sales 33 77 *3 Major items and amounts included in selling, general and administrative expenses are as follows. For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 (Million yen) Freight costs Advertising expenses Promotion expenses Payroll and allowances Provision for bonuses Retirement benefit expenses Depreciation Outsourcing expenses Provision for product warranties 1,845 2,410 1,626 4,136 666 122 990 1,938 (9) 14 1,819 2,408 1,660 4,256 767 105 886 2,171 (8) *4 Details of refund of Chinese value-added-tax are as follows. For the fiscal year ended November 20, 2020 Refund of Chinese value-added-tax is refund received by Zojirushi Shanghai Corporation as a tax incentive for foreign companies that have expanded to Shanghai City. For the fiscal year ended November 20, 2021 Refund of Chinese value-added-tax is refund received by Zojirushi Shanghai Corporation as a tax incentive for foreign companies that have expanded to Shanghai City. *5 Details of gain on sale of non-current assets are as follows. For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 (Million yen) Machinery, equipment and vehicles Total *6 Details of loss on sale of non-current assets are as follows. For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 (Million yen) Tools, furniture and fixtures Total *7 Details of loss on retirement of non-current assets are as follows. For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 (Million yen) – – 0 0 2 2 14 19 Buildings and structures Machinery, equipment and vehicles Tools, furniture and fixtures Total 2 2 0 0 4 1 15 21 *8 Details of information security expenses are as follows. For the fiscal year ended November 20, 2020 The expenses are related to investigations conducted, security measures put in place, and contact points established in response to unauthorized access from a third party to Shopping at Zojirushi, a website for sales of parts and consumables operated by a consolidated subsidiary of the Company. For the fiscal year ended November 20, 2021 Not applicable. 15 The loss mainly comprises cancellation fees for cancelling sales promotion events in response to requests to refrain from going out issued by the government and local municipalities due to the impact of the spread of COVID-19. *9 Details of loss on COVID-19 are as follows. For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 Not applicable. (Consolidated statements of cash flows) consolidated balance sheets are as follows. *1 Relationships between cash and cash equivalents at end of period and the amounts of accounts presented in the (Million yen) For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 Cash and deposits Time deposits with maturities of over three months Cash and cash equivalents 34,391 (1,809) 32,582 37,274 (2,064) 35,209 (Segment information, etc.) [Segment information] The Group engages in manufacture and sales of household products and other products, as well as incidental operations thereto, and businesses other than household products are immaterial. Accordingly, the segment information is omitted. 16 (Per share information) Item Net assets per share Basic earnings per share For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 ¥1,069.58 ¥58.34 ¥1,127.06 ¥66.69 (Notes) 1. Diluted earnings per share are not stated because there were no dilutive shares. 2. The basis of calculation is as follows. (1) Net assets per share As of November 20, 2020 As of November 20, 2021 Total amount of net assets (Million yen) 72,917 76,837 599 [599] 72,317 72,600 4,987 67,612 3,943 – 3,943 612 [612] 76,224 72,600 4,968 67,631 4,509 – 4,509 For the fiscal year ended November 20, 2020 For the fiscal year ended November 20, 2021 Amount deducted from total amount of net assets (Million yen) [Of which, non-controlling interests (Million yen)] Net assets associated with common shares (Million yen) Number of issued common shares (Thousand shares) Number of common shares held as treasury shares (Thousand shares) Number of common shares used in the calculation of net assets per share (Thousand shares) (2) Basic earnings per share Profit attributable to owners of parent (Million yen) Amount not attributable to common shareholders (Million yen) Profit attributable to owners of parent relating to common shares (Million yen) Average number of common shares during the period (Thousand shares) 17 (Significant subsequent events) Not applicable. 67,608 67,623
