ズーム（6694） – [Delayed]Supplemental Material for Financial Results Briefing for the 1st quarter of fiscal year 2022

FY2022/12 1QSupplemental Material for Financial Results BriefingMay 13, 2022ZOOM CORPORATIONNote: Forward-looking statements included in this document have been prepared by the Company based on information currently available and based on certain assumptions considered reasonable. They involve inherent risks and uncertainties. Actual results may vary considerably because of various factors.FY2022 1Q financial results highlightsDespite steady demand, sales and profits are down YoY due to reduced sales quantities resulting from the shortage of semiconductorsNet sales: Operating profit: Ordinary profit : 2,795 million yen ( -33 million yen YoY)-87 million yen (-433 million yen YoY)-57 million yen (-388 million yen YoY)- Sales quantities decreased considerably due to a product supply shortage resulting from difficulty in procuring semiconductors.- While sales decreased only slightly due to the consolidation of six months’ profit and loss (for October 2021 – March 2022) from HookUp as a result of a change in the ending date of that company’s fiscal year, operating profit and ordinary profit both decreased considerably YoY due to consolidation of six months’ SG&A expenses and other expenses from HookUp as well. (* Hookup profit / loss is not consolidated in the previous 1Q.)■1Q ■Full year売上高Net Sales14,00013,41713,000 (Projected)営業利益Operating profit1,258経常利益Ordinary profit1,216(Million yen)12,00010,0008,0006,0004,0002,00001,3001,100900700500300100▲ 100700(Projected)650 (Projected)1,3001,100900700500300100▲ 1002,829 20212,795 2022346▲ 87331▲ 572021年2022年2021年2022年© 2022 ZOOM CORPORATION. All rights reserved.1Consolidated income statement for FY2022 1Q (summary)FY 2021/121Q resultsFY 2022/121Q resultsChangeRemarks(Million yen)Net sales2,8292,795-33Gross profit(Gross profit margin)Operating profit(Operating profit margin)Ordinary profit(Ordinary profit margin)Quarterly net profit attributable to owners of the parent(Quarterly net profit margin)1,248(44.1%)346(12.2%)331(11.7%)201(7.1%)1,032(36.9%)-87(-3.1%)-57(-2.0%)-60(-2.2%)-216-433-261- Despite steady demand for Company products,sales quantities decreased due to the global shortage ofsemiconductors- Because of the change in the accounting period,consolidated HookUp’s profit and loss for six month (from October 2021 to March 2022), and the sales slightly decreased- While the share of North America, where gross profit margin is high, decreased, the share of sales of HookUp, which has a relatively lower gross profit margin, increased- In addition to the above, consolidation of the income statement of HookUp beginning in 2Q of the previous year resulted in a YoY increase in SG&A expenses-388- Foreign exchange gains of 26 million yen were recorded due to the devalued yenEBITDA44615-430 EBITDA = Operating profit + * DepreciationDepreciationR&D expensesForeign exchange gains/lossesAverage exchange rate (yen/USD)*99264-3105.8 yen*10223026116.2 yen2-3329+10.4 yen* Includes 47 million yen in amortization of goodwill (vs. 44 million yen in the previous year)© 2022 ZOOM CORPORATION. All rights reserved.2Components of FY2022 1Q net sales (graph)Net sales by product categorynet sales by region- The share of “Other” increased as six months’ sales of HookUp were consolidated due to a change in the ending date of that company’s fiscal yearOthers44%HAR24%Others12%Central Europe *25％DMX/MTR10%Southern Europe *117%- Japan’s share increased as six months’ sales of HookUp were consolidated due to a change in the ending date of that company’s fiscal yearJapan37%MFX9%HVR5%PFR8%North America29％CategoryHAR: Handy Audio RecordersDMX/MTR: Digital Mixers/Multi Track RecordersMFX: Multi-EffectsPFR: Professional Field RecordersHVR: Handy Video RecordersOthers: Brands offered by Mogar, brands offered by HookUp and others*1.Southern Europe includes Italy, France, Spain, and Portugal*2.Central Europe includes Germany, the UK, the three Beneluxstates, Austria, Poland, the Czech Republic, Slovakia, the threeBaltic states, and other countries© 2022 ZOOM CORPORATION. All rights reserved.3FY2022 1Q net sales by product categoryWith the exceptions of some categories, sales decreased due to a product supply shortage resulting from difficulty in procuring semiconductorsHandy Audio Recorders(HAR)1,203(43%)Digital Mixers/Multi Track Recorders(DMX/MTR)Multi-Effects(MFX)Professional Field Recorders(PFR)Handy Video Recorders(HVR)Others Brands offered by MogarBrands offered by HookUpFY 2021/121Q results (share)FY 2022/121Q results (share)ChangeMain factors behind changes in net sales(Million yen)678(24%)285(10%)246(9%)232(8%)148(5%)173(6%)191(7%)839(31%)-525- Reduced shipments due to inventory adjustments by dealers in Central Europe and China- Supplies of some products are short due to difficulty in procuring semiconductors-255 – Product supplies are short due to difficulty in procuring semiconductors, mainly for the L-Series-42 – Product supplies are short due to difficulty in procuring semiconductors, mainly for the G1 Four-Series53-40-92- Effects of new products from the F2/F2-BT, F3, and F8n Pro- Product supplies are short for some products due to difficulty in procuring semiconductors- Down YoY as a rebound from rapid growth in demand for uses such as web conferencing as working from home spread due to COVID-19 in the same period last year- In addition to product supply shortages for some products due to difficulty in procuring semiconductors, sales decreased as a rebound from the effects of new products from the AM7 and ZDM-1PMP in the same period last year28 – Demand recovered in southern Europe due to progressive normalization of economic activities after COVID-19839- HookUp’s results are included in the consolidated income statement beginning with 2Q of the previous consolidated fiscal year- Six months’ sales were consolidated due to a change in the ending date of the fiscal year of HookUp540(19%)288(10%)179(6%)188(7%)265(9%)162(6%)-(-)Total2,8292,795-33© 2022 ZOOM CORPORATION. All rights reserved.4FY2022 1Q net sales by regionSales decreased in nearly all regions as a result of product supply shortages due to difficulty in procuring semiconductorsFY 2021/121Q results (Share)FY 2022/121Q results (Share)ChangeMain factors behind changes in net sales(Million yen)239(9%]999(35%]472(17%]555(20%]39(1%]522(18%]1,026(37%)787- Six months’ sales were consolidated due to a change in the ending date of the fiscal year of HookUp (839 million yen)- In addition to product supply shortages, sales of some products including HVR were down as a rebound from growth in demand in the same period last year800(29%)470(17%)153(5%)36(1%)307(11%)-198- Reduced shipments due to inventory adjustments by dealers- Decreases mainly in sales of HAR and DMX due to a product supply shortage resulting from difficulty in procuring semiconductors-2- Decreased sales due to lower demand for HAR and supply shortages for new products- Recovery in demand for brands offered by Mogar due to normalization of economic activities in southern Europe-401- Decrease due to a rebound from large-scale shipments of the outstanding balance of orders received mainly for HAR in the same period one year ago- Reduced shipments due to HAR inventory adjustments by dealers-3-214- Down 50 million yen in China: Reduced shipments due to inventory adjustments by dealers- Others: Down 29 million yen in Sweden, down 25 million yen in South Korea2,8292,795-33JapanNorth AmericaSouthern Europe *1Central Europe *2U.A.E.OthersTotal*1. Southern Europe includes Italy, France, Spain, and Portugal*2. Central Europe includes Germany, the UK, the three Benelux states, Austria, Poland, the Czech Republic, Slovakia, the three Baltic states, and other countries© 2022 ZOOM CORPORATION. All rights reserved.5FY 2022 1Q analysis of changes in operating profitAnalysis of changes in operating profit (million yen)HookUp operating profit in October 2021-March 2022Gross profit decreased due to lower sales quantities resulting from the shortage of semiconductors* ZJP: ZOOM CorporationZNA: ZOOM North America, LLCLabor costs increased due to increases in employees at ZJP and ZNA *Outsourcing costs increased mainly at ZJP2021 1Q totalIncrease in operating profit due to consolidation of HookUpDecrease in gross profit due to lower salesIncrease in sales due to exchange-rate fluctuationsDecrease in R&DexpensesIncrease in personnel costsIncrease in other expenses2022 1Q total© 2022 ZOOM CORPORATION. All rights reserved.6FY2022 1Q Consolidated Balance Sheet (summary)FY 2021/12FY 2022/121Q totalChange8,0358,497462Main factors behind changes(Million yen)-166 Dividend 218 million yen-663Decreased sales: 3,653 million yen in 4Q of last year, 2,795 million yen in 1Q of this year227 Increased logistics lead time951Inventories of onerous supplies newly recognized due to application of the Accounting Standard for Revenue Recognition (877 million yen)26 Goodwill: + 30 million yen (increased due to devaluation of the yen)51 Increase of +57 million yen in deferred tax assetsLiabilities on onerous supplies newly recorded under current liabilities (other) due to application of the Accounting Standard for Revenue Recognition (877 million yen)773-227 Decreased purchases from production consignment factories257 Increase due to raising working capital etc.Non-current assets2,7942,864Total assets10,82911,361Current liabilities3,6754,293Current assetsCash and depositsAccounts receivable-trade and contract assetsMerchandise and finished goodsRaw materials and suppliesProperty, plant, and equipmentIntangible fixed assetsInvestments and other assetsAccounts payable-tradeShort-term loans payableNon-current liabilitiesTotal liabilitiesCapital stockTotal net assets2,0671,9502,9631155481,4767691,0001,3461,2424,9172125,9111,9001,2863,1901,1075401,5028201,6041,2095,5032125,85869-7531618-32585–53531Total liabilities and net assets10,82911,361© 2022 ZOOM CORPORATION. All rights reserved.7Trends in quarterly business results in FY 2022 1Q and the past three years No.11,963 2,037 2,246 2,360 1,706 2,395 2,739 売上高Net Sales3,578 2,829 3,260 3,674 3,653 2,795 (Million yen)1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2019年2020年2021年2022年42107116627営業利益Operating profit4882943462383812921Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2019年2020年2021年2022年2207921712経常利益Ordinary profit467331277223364297▲ 87▲ 57▲ 54▲ 3071Q1Q2Q3Q4Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2019年2020年2021年2022年Sales quantities decreased considerably due to a product supply shortage resulting from difficulty in procuring semiconductors.© 2022 ZOOM CORPORATION. All rights reserved.8Trends in quarterly business results in FY 2022 1Q and the past three years No.2(Million yen)200 243 249 254 241 299 276 254 264 297 230 研究開発費R&D expenses365 404 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2019年2020年2021年2022年164 175 150 167 154 人件費Labor costsBonusesConsolidate HookUp’s profit and loss for 6 months.ZNA consolidated247 260 319 262 HookUp consolidated319 325 421 389 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2019年2020年2021年2022年262 303 292 305 237 その他経費Other expensesTemporary costs (Ads, etc.)Consolidate HookUp’s profit and loss for 6 months.362 408 469 374 451 434 525 498 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2019年2020年2021年2022年Consolidation of HookUp’s profit and loss for six months resulted in YoY increases in labor costs and other expenses.© 2022 ZOOM CORPORATION. All rights reserved.9FY 2022/12 forecasts of consolidated financial resultsSales and profits are projected to decrease due to product supply shortages resulting from the shortage of semiconductors- Production in the first half of 2022 is expected to be only about 70-80% of the required volume due to the shortage of semiconductor supply.- Even though a recovery is projected in the second half of 2022, the balance of outstanding orders is not expected to be filled by the end of FY2022.- Because of the change in the accounting period, consolidated HookUp’s profit and loss for 15 months.(Consolidated for 9 months in FY 2021/12)Net income attributable to owners of the parentNet salesOperating profitOrdinary profitEBITDANet profit per shareDividends per sharePayout ratioExchange rate (yen/USD)FY 2021/12ResultsForecastChange(Million yen)FY 2022/12Rate of change1Q resultsRate of achievement13,41713,000-417-3.1%2,79522%1,2581,2168547006504001,6661,110-558-44.4%-566-454-556-46.6%-53.2%-33.4%-87-57-6015—1%199.56 yen92.87 yen-106.69 yen-53.5%102 yen(After the split : 51 yen)50 yen25.6%53.8%109.8 yen108.0 yen—* We conducted a two-for-one stock split of common stock on January 1, 2022.Figures shown for net profit per share are from after the stock split.Figures shown for dividends per share are from before the stock split for FY 2021/12 and after the stock split for FY 2022/12.—* Sensitivity to exchange rates (effects of changes in exchange rates on annual income): An increase (decrease) of one yen in the value of the yenin foreign exchange would lead to a decrease (increase) of approximately 27 million yen in operating profitWhile the trend toward devaluation of the yen has a positive effect on business results, projections of business results remain unchanged due to uncertainty regarding resolution of the shortage of semiconductors.© 2022 ZOOM CORPORATION. All rights reserved.10FY 2022/12 sales projections by consolidation category(Million yen)FY 2022/12FY 2021/12ResultsForecastChangeRate of change1Q resultsRate of achievement4,9333,884-1,049-21.3%67817%2,2032,013-190-8.6%28514%1,2891,123-166-12.9%24622%9681,231+262 +27.1%23219%819635-183-22.3%14823%Handy Audio Recorders(HAR)Digital Mixers/Multi Track Recorders(DMX/MTR)Multi-Effects(MFX)Professional Field Recorders(PFR)Handy Video Recorders(HVR)Others 1,2781,361+83+6.5%17313%Brands offered by Mogar827808-18-2.2%19124%Brands offered by HookUp1,0981,942+844 +76.9%83943%Total13,41713,000-417-3.1%2,79522%© 2022 ZOOM CORPORATION. All rights reserved.11