July 29, 2022

Consolidated Financial Results for the First Six Months of Fiscal Year

Ending December 31, 2022 (Six Months Ended June 30, 2022)

Company name: MonotaRO Co., Ltd.

Listing: Tokyo Stock Exchange, Prime Market

Stock code:

3064

URL: https://www.monotaro.com

Representative:

Masaya Suzuki, President & CEO

Contact:

Tetsuya Koda, Senior Executive Officer, General Manager of Business

Tel: +81-6-4869-7190

Admin. Dept.

Scheduled date to file Quarterly Securities Report: August 10, 2022

Scheduled date of dividend payments: September 9, 2022

Supplementary materials: Yes

Investors meeting: Yes

(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended June 30, 2022

(January 1, 2022 - June 30, 2022)

(1) Consolidated results of operations

(Percentages show the change from the same period of previous fiscal year)

Net income

Net sales

Operating income

Ordinary income

attributable to

owners of the parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Six months ended Jun. 30, 2022

109,863

19.6

13,136

10.4

13,319

11.2

9,317

11.7

Six months ended Jun. 30, 2021

91,868

22.0

11,898

27.7

11,973

28.2

8,344

27.6

Note: Comprehensive income: Six months ended Jun. 30, 2022: 9,476 million yen (12.7%)

Six months ended Jun. 30, 2021: 8,409 million yen (32.3%)

Net income per share

Diluted net income per share

Yen

Yen

Six months ended Jun. 30, 2022

18.75

18.75

Six months ended Jun. 30, 2021

16.80

16.79

The Company implemented a 2-for-1 share split effective on April 1, 2021 and net income per share and diluted net income per share are stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of Jun. 30, 2022

105,996

66,921

62.3

As of Dec. 31, 2021

95,789

60,283

61.9

Reference: Shareholders' equity

Jun. 30, 2022: 66,030 million yen

Dec. 31, 2021: 59,286 million yen

2. Dividends

Dividends per share

1Q-end

2Q-end

3Q-end

Year-end

Annual

Yen

Yen

Yen

Yen

Yen

Year ended Dec. 31, 2021

-

5.75

-

5.75

11.50

Year ending Dec. 31, 2022

(actual)

-

6.50

Year ending Dec. 31, 2022

(forecast)

-

7.00

13.50

Note: Amendments to dividend forecast compared with the most recent disclosure: None

3. Consolidated Forecasts for the Fiscal Year Ending December 31, 2022 (January 1, 2022 - December 31, 2022)

(Percentages show the change from the same period of previous fiscal year)

Net sales

Operating income

Ordinary income

Net income attributable

Net income

to owners of the parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

226,073

19.2

24,380

1.0

24,392

0.4

17,067

(2.8)

34.35

Note: Revision of consolidated forecast during this quarter: None

4. Others

  1. Changes in the number of material subsidiaries resulting in changes in scope of consolidation during the six-month period ended June 30, 2022: None
  2. Application of special accounting methods for the preparation of quarterly consolidated financial statements: None
  3. Changes in accounting principles and estimates, or retrospective restatements:
    1. Changes in accounting principles caused by the revision of accounting standards: Yes
    2. Changes in accounting principles other than mentioned in 1): None
    3. Changes in estimates: None
    4. Retrospective restatements: None
  5. Number of shares outstanding (common shares)
    1. Number of shares outstanding at the end of period (including treasury stock)

Jun. 30, 2022:

501,313,800 shares

Dec. 31, 2021:

501,275,000 shares

2) Number of treasury stock at the end of period

Jun. 30, 2022:

4,443,916 shares

Dec. 31, 2021:

4,443,812 shares

3) Average number of shares outstanding during the period

Six months ended Jun. 30, 2022:

496,869,945 shares

Six months ended Jun. 30, 2021:

496,822,639 shares

The Company implemented a 2-for-1 share split effective on April 1, 2021 and the respective numbers of shares above are stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.

This quarterly report of financial results is out of scope from quarterly review procedures conducted by independent auditors.

* Cautionary statement with respect to forward-looking statements

The forecasts above are based on the judgments made in accordance with information currently available. Forecasts therefore include risks and uncertainties. Actual figures may differ from these forecasts due to subsequent changes in the circumstances.

1. Qualitative Information on the Consolidated Financial Statements

(1) Qualitative Information Regarding Consolidated Results of Operations

The Japanese economy during the first six months of the fiscal year ending December 31, 2022 generally continued to be unpredictable with concerns about the global rebound of the novel coronavirus infectious disease (COVID-19), supply chain disruptions, shortages in the supply of semiconductors and other components, rising energy and raw material prices, a rapid depreciation of the yen,as well as concerns about the impact on the economy from the Russian aggression in Ukraine.

In this economic environment, we have continually concentrated on acquiring new customers aggressively mainly through internet advertisements (paid listings) and internet search engine optimization (SEO), which can improve our website's position on the search engines. We also conducted promotion activities including direct mail using e-mail and mail flyers, daily special prices, the publication and distribution of catalogs. In terms of catalogs, we newly published RED BOOK vol. 18 Spring Edition in late February, divided into 13 volumes with 174 thousand items and approximately 3.1 million issues available in total.

Furthermore, the total number of our product lineup reached approximately 18 million items in total and 494 thousand items in stock which are available for the same day shipment to meet the increase in demand corresponding to the expansion of our customer base as of the end of the first six months of the fiscal year ending December 31, 2022. In addition, in order to strengthen the logistics base, "Inagawa Distribution Center" (Kawabe-gun, Hyogo Prefecture, total floor area of about 189,000 m2) started its operation in April.

In addition, in relation to the sales of MRO products to enterprise customers through the integrated purchase systems, both the number of customers and the amount of sales steadily increased.

Consequently, we have successfully obtained 636,978 newly registered accounts for the first six months of the fiscal year ending December 31, 2022 and the number of registered accounts totaled 7,416,297 as of the end of the first six months of the fiscal year ending December 31, 2022.

In addition, NAVIMRO, which is our Korean subsidiary, also aggressively engaged in acquiring new customers mainly through paid listings and focused on increasing both its product lineup and the number of products in stock in order to expand its customer base.

All of our efforts mentioned above resulted in net sales of 109,863 million yen (19.6% increase from the same period of the previous fiscal year), operating income of 13,136 million yen (10.4% increase from the same period of the previous fiscal year), ordinary income of 13,319 million yen (11.2% increase from the same period of the previous fiscal year), and net income attributable to owners of the parent of 9,317 million yen, a corresponding 11.7% increase.

(2) Qualitative Information Regarding Consolidated Financial Position

Total assets as of June 30, 2022 (the end of the first six months of the fiscal year ending December 31, 2022) amounted to 105,996 million yen, an increase of 10,207 million yen from the end of the previous fiscal year. This was attributable to increases of 6,746 million yen, 2,939 million yen, 2,604 million yen, 2,518 million yen, and 2,323 million yen in machinery and equipment, buildings, notes and accounts receivable-trade, merchandise, and software, respectively, despite decreases of 6,536 million yen and 2,696 million yen, 1,618 million yen in cash and deposits, construction in progress, and software in progress, respectively.

On the other hand, total liabilities as of June 30, 2022 amounted to 39,074 million yen, an increase of 3,569 million yen from the end of the previous fiscal year. This was due mainly to increases of 1,974 million yen and 986 million yen in accounts payable-trade and accounts payable-other, respectively.

Total net assets amounted to 66,921 million yen, an increase of 6,637 million yen from the end of the previous fiscal year. This was largely due to net income attributable to owners of the parent of 9,317 million yen offset by dividend payments of 2,856 million yen for the first six months of the fiscal year ending December 31, 2022.

As a result, the equity ratio as of June 30, 2022 was 62.3%, up 0.4 percentage points from the end of the previous fiscal year.

(3) Forecast for the Fiscal Year Ending December 31, 2022

Our consolidated financial results for the first six months of this fiscal year were almost in line with our plan in terms of sales and slightly higher in terms of operating income. However, the economic outlook is difficult to forecast at this time due to continued rapid inflation mainly in Europe and the United States, and the accompanying a policy of rising interest rates especially in the United States. Therefore, the consolidated forecast for the fiscal year ending December 31, 2022, disclosed on February 3, 2022, has not been changed at this time.

2. Consolidated Quarterly Financial Statements

(1) Consolidated quarterly balance sheets

Accounts

(In millions of yen)

As of Dec. 31, 2021

As of Jun. 30, 2022

Assets

Current assets

Cash and deposits

12,379

5,843

Notes and accounts receivable-trade

21,665

24,270

Electronically recorded monetary claims

900

1,499

Merchandise

14,647

17,166

Goods in transit

696

695

Supplies

86

115

Accounts receivable-other

5,961

6,041

Other

844

1,565

Allowance for doubtful accounts

(95)

(92)

Total current assets

57,086

57,105

Noncurrent assets

Property, plant and equipment

Buildings, net

9,822

12,762

Leased assets, net

3,282

3,013

Construction in progress

9,164

6,468

Other, net

5,835

13,370

Total property, plant and equipment

28,105

35,615

Intangible assets

Goodwill

770

816

Other

5,562

6,259

Total intangible assets

6,332

7,076

Investments and other assets

Guarantee deposits

2,634

3,041

Other

1,683

3,220

Allowance for doubtful accounts

(54)

(62)

Total investments and other assets

4,264

6,199

Total noncurrent assets

38,702

48,890

Total assets

95,789

105,996

Liabilities

Current liabilities

Accounts payable-trade

14,562

16,536

Short-term loans

－

17

Current portion of long-term loans payable

－

2,250

Lease obligations

34

23

Accounts payable-other

4,409

5,395

Income taxes payable

4,090

4,457

Provision for employees' bonuses

121

137

Provision for accident related loss

16

16

Other

589

771

Total current liabilities

23,824

29,606

Noncurrent liabilities

Long-term loans payable

9,000

6,750

Lease obligations

586

596

Net defined benefit liability

388

453

Asset retirement obligations

1,222

1,416

Other

484

251

Total noncurrent liabilities

11,681

9,467

Total liabilities

35,505

39,074

Net assets

Shareholders' equity

Capital stock

2,000

2,008

Capital surplus

899

1,003

Retained earnings

56,646

63,107

Treasury stock

(413)

502

Total shareholders' equity

59,133

65,616

Accumulated other comprehensive income

Foreign currency translation adjustment

151

415

Remeasurements of defined benefit plans

1

(1)

Total accumulated other comprehensive income

152

413

Subscription rights to shares

99

95

Non-controlling interests

897

795

Total net assets

60,283

66,921

Total liabilities and net assets

95,789

105,996

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MonotaRO Co. Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 06:33:01 UTC.