Production, Stated at Selling Prices

Note 1 beneath the production table in the annual securities report of MISUMI Group Inc., for the 64th business year ended 31 March 2026, says that the amounts are stated at selling prices. The table above it has three rows. FA, ¥42,717 million (US$260.79 million). Die parts, ¥34,845 million (US$212.73 million). VONA, ¥359 million (US$2.19 million). Total, ¥77,922 million (US$475.71 million) — one million above the sum of the three rows, which is what rounding three numbers to the million does. The heading over all of it is production, orders and sales, and everything underneath is a yen amount.

The filer is a pure holding company on the Tokyo Stock Exchange Prime Market, with 60 consolidated subsidiaries, one unconsolidated subsidiary and three affiliates, and three reportable segments: FA, die parts and VONA. Consolidated sales for the year were ¥441,383 million (US$2,694.65 million), up 9.8%. Operating profit was ¥47,613 million (US$290.68 million), up 2.4%. Ordinary profit was ¥49,095 million (US$299.73 million), down 1.6%. Profit attributable to owners of the parent was ¥40,457 million (US$246.99 million), up 10.7%, with the company pointing to deferred tax assets recognised on carryforward losses following adoption of consolidated tax filing in the United States. The document was submitted on 16 June 2026.

What the group sells, in the filing's own list: in FA, standard components for automated machinery, automatic positioning modules, optical-technology equipment, materials for electronic devices and custom machined parts; in die parts, standard components built into press and plastic injection dies, and precision die parts; in VONA, web-centred distribution of general products including other manufacturers' brands. Under production, orders and sales, all of that is expressed in one unit. The four tables there are in millions of yen — production at selling prices, purchases at purchase prices, orders received and order backlog, and sales — and the only other numbers beside them are year-on-year percentages.

The heading is prescribed. Form No. 2 of the Cabinet Office Ordinance on Disclosure of Corporate Affairs carries, in its instructions for preparation at item (32)a(b), the requirement to state the situation as to production, orders received and sales for the most recent consolidated fiscal year, and at (b)i the results of production, orders and sales — stated in comparison with the same period of the previous year and linked to segment information — together with the content of any significant movement in those results. Both of those — the prior-year comparison and the segment link — are asked for in that one sentence. The neighbouring provision, (32)a(d), asks for sales by counterparty and each counterparty's share of total sales over the most recent two consolidated fiscal years, and permits counterparties below one-tenth of that total to be omitted. The instruction as read here sits in Form No. 2; by what provision the annual securities report's own form takes it up is not in the pages read here.

Because production is stated at selling prices, it can be divided by sales on the same basis: ¥77,922 million ÷ ¥441,383 million = 17.7%. That is the share of the year's sales, measured in the price charged to the customer, matched by production recorded inside the group. The complement, 82.3%, is arithmetic rather than a printed percentage; the purchases table directly below prints ¥187,927 million (US$1,147.30 million), which its own note states at purchase prices, so it stands on a different basis and cannot be set against sales the way production can. The ratio is not a cost ratio and not a margin — both terms are selling-price yen, which is what note 1 makes possible — and it assumes nothing about timing, since goods produced in a year are not necessarily the goods sold in it.

Segment sales are ¥160,498 million (US$979.84 million) for FA, ¥88,368 million (US$539.49 million) for die parts and ¥192,516 million (US$1,175.31 million) for VONA. Dividing each segment's production line above by its own sales line gives 26.6%, 39.4% and 0.19%. Die parts produces about two-fifths of what it sells; VONA about one five-hundredth. VONA is nonetheless the largest segment at 43.6% of sales, against 36.4% for FA and 20.0% for die parts. The three printed segment figures sum to ¥441,382 million against a printed consolidated total of ¥441,383 million, the same one-million rounding gap as the production table.

What the ratio cannot do is separate quantity from price. Nothing in these tables is expressed in units, so a movement could be more items, dearer items, or a different exchange rate. The segment discussion accounts for the year in named demand instead: communications-related demand in China, meviy, the Economy series and D-JIT on the FA side; subdued capital investment demand in Japan; growth in China and Asia for die parts against automotive weakness in the Americas and Europe; all regions broadly firm at VONA. A quantitative split into unit price, mix and currency is not part of that account.

What the same instruction asks about price, it asks in words. Item (32)a(b)ii requires that where production capacity, principal raw-material prices, or the purchase and selling prices of principal products and goods have moved significantly, or where there is anything else to note about production, orders or sales, the content be given linked to segment information. It fixes no threshold for what counts as significant, and it prescribes no split into price and quantity. On the text read here, (b) and (d) ask for results, and for a counterparty's share of total results, without naming an amount, a unit or a quantity. A paragraph of named demand, and tables carrying yen and percentages only, both sit inside what the instruction as printed calls for.

Orders received were ¥478,983 million (US$2,924.19 million) and order backlog at the close was ¥33,566 million (US$204.92 million), which is 7.6% of the year's sales, or 27.8 days of it. Taking each segment's backlog over its own sales: FA 14.8%, or 53.9 days; die parts 3.2%, or 11.5 days; VONA 3.7%, or 13.4 days. FA is the segment that contains custom machined parts. The note under the table says the amounts are consolidated orders from external customers; what the backlog is made of is not stated there. Orders exceed sales by ¥37,600 million (US$229.55 million), more than the whole closing backlog; the table carries orders and closing backlog, and the year also brought Fictiv Inc. into consolidation from July, so the queue cannot be rolled forward from these rows. Both totals here, like production and sales, print one million above the sum of their three segment lines.

Segment profit is disclosed and its total equals consolidated operating profit: FA ¥20,283 million (US$123.83 million), die parts ¥8,694 million (US$53.08 million), VONA ¥18,635 million (US$113.77 million). Against their own sales that is 12.6%, 9.8% and 9.7%, with the consolidated figure at 10.8%. The directions differ from the sales lines: FA sales rose 18.2% while its profit fell 9.9%, and the company says its operating profit there was affected by M&A-related expenses and the consolidation of Fictiv Inc.; die parts sales rose 2.2% and profit fell 8.5%; VONA sales rose 7.1% and profit rose 28.8%. The same table carries a fourth profit row for the year, segment profit before amortisation of goodwill and the like, defined in its note as segment profit plus the goodwill amortisation and intangible-asset amortisation arising on the acquisition of Fictiv Inc.: FA ¥23,143 million (US$141.29 million), against FA segment profit of ¥22,510 million (US$137.42 million) the year before, when the goodwill amortisation line was blank for every segment.

Geography gets its own table, in sales and in property, plant and equipment. Dividing each region's sales by consolidated sales: Japan 40.2%, China 20.8%, Asia 16.3%, America 14.3%, Europe 6.3%, Other 2.1%. The six lines sum to ¥441,380 million against the printed ¥441,383 million, six numbers rounded to the million where the segment table has three, and the percentages above use the printed total as denominator. The regional table carries sales and fixed assets; the segment table carries profit and is cut by business. On the disclosure as presented, the two cuts of the same ¥441,383 million cannot be joined.

One table does count something other than yen. Greenhouse gas emissions, in thousands of tonnes of CO2e: scope 1 was 6 in each of FY2022, FY2023 and FY2024; scope 2 was 15, 13 and 12; scope 3 was 1,528, 1,353 and 1,424, the middle year marked as corrected from a previously disclosed figure. The FY2024 total is printed as 1,441, against components summing to 1,442. Scope 3, covering categories 1 to 7 and category 12, is 98.8% of that total; scopes 1 and 2 together are 1.2%. The 42% cut against 2020 by 2030 appears in one passage for greenhouse gas emissions and in another for scope 1 and scope 2 specifically, with carbon zero dated 2050.

Research and development was ¥5,368 million (US$32.77 million), 1.2% of sales. It divides into service development, ¥3,864 million (US$23.59 million), and product and production-technology development, ¥1,504 million (US$9.18 million); the two sum exactly. Service development is given as a total only, on the stated ground that it is common to the segments. The product side is itemised — FA ¥1,438 million (US$8.78 million), die parts ¥66 million (US$0.40 million) — and those two sum exactly as well. So 72.0% of development spending sits in the layer the company describes as common to the segments, and the layer that is itemised is the one with machines and dies in it.

Merchandise and finished goods on the consolidated balance sheet are ¥60,171 million (US$367.34 million), which the audit report gives as 12.9% of consolidated total assets and treats as a key audit matter. The valuation method described there is that merchandise and products which have been in stock for a set period since sales handling began, are judged to have no prospect of further sale, and exceed a set quantity, are in principle written down by 100% of book value. A catalogue's economics sit in the tail — the item ordered twice a year still has to be somewhere — and the accounts carry that tail as a book value and a rule for taking it to nothing.

The valuation rule quoted in the audit report has a standard behind it. Accounting Standards Board of Japan Statement No. 9 applies to the measurement methods, valuation basis and disclosure of inventories at every company, and names merchandise and products among them. Its paragraph 7 sets the baseline: inventories held for ordinary sale are carried at cost, and where net realisable value at the period end is below cost, at that value, the difference charged to the period. Paragraph 9 gives the two methods available for inventories that have fallen out of the ordinary operating cycle through staleness or expected disposal, where a reasonably computed value is difficult to arrive at — writing the book value down to expected disposal value, zero or a memorandum value included, or writing it down regularly once a set turnover period is exceeded. The standard prints no turnover period. Paragraph 12 puts the judgement and the write-down, in principle, on the individual item, a grouped unit being permitted where appropriate and applied consistently. Paragraph 17 says where the amount lands: cost of sales, or manufacturing cost where it arises unavoidably in production, or extraordinary loss where it stems from an extraordinary event and is material. Paragraph 18 requires it to be shown by note or as a separate line within cost of sales, unless the amount is immaterial.

Two percentages of total assets appear in the two audit reports, on two different denominators. The consolidated report puts merchandise at 12.9%, against consolidated total assets of ¥464,969 million (US$2,838.64 million) as printed on the consolidated balance sheet. The parent-only report puts shares of subsidiaries and affiliates at ¥32,320 million (US$197.31 million), or 18.3% of total assets, against parent total assets of ¥176,998 million (US$1,080.57 million) as printed on the holding company's own balance sheet. The second balance sheet is the holding company's, where the key audit matter is whether the net-asset backing of those shares has fallen far enough to require write-down; the report records that it has not fallen significantly, in this year or before. Same phrase, two magnitudes.

The segment note gives sales, profit, depreciation and goodwill amortisation by segment, and this year impairment loss as well, and no balance sheet. Capital expenditure is a group total, ¥14,288 million (US$87.23 million), with the statement that assets are not allocated to reportable segments for internal management, so segment capital expenditure and segment assets are not shown. Depreciation is allocated, and sums exactly to ¥17,939 million (US$109.52 million), of which FA is 43.9%, VONA 35.2% and die parts 20.9%. Goodwill sits entirely in FA, ¥43,962 million (US$268.39 million) at the close, with ¥2,209 million (US$13.49 million) amortised in the year — 10.9% of FA's segment profit.

The cash statement: operating ¥52,190 million (US$318.62 million); investing an outflow of ¥43,203 million (US$263.75 million); financing an outflow of ¥41,801 million (US$255.20 million). Cash and equivalents closed at ¥104,202 million (US$636.15 million) against ¥128,259 million (US$783.02 million) a year before. The three flows sum to an outflow of ¥32,814 million (US$200.33 million); the row printed immediately below them, the effect of exchange rate changes on cash and cash equivalents, is ¥8,757 million (US$53.46 million), and the four together come to ¥24,057 million (US$146.87 million), which is the difference between the two printed balances. The line printed for the decrease itself reads ¥24,056 million (US$146.86 million), one million out, on the same rounding to the million that runs through the other tables. The ¥14,288 million of capital expenditure is the first line of the investing section, printed as payments for purchase of non-current assets, and the largest line below it is ¥48,483 million (US$295.99 million) for the acquisition of shares of a subsidiary resulting in a change in the scope of consolidation.

The buyback was authorised in two units and only one of them bound. The board resolution of 25 July 2025 covered up to 17,000,000 shares and up to ¥25,000 million (US$152.63 million); the company acquired 10,269,100 shares for ¥24,999 million (US$152.62 million), and the unexercised portion is printed as 39.6% of the shares and 0% of the value. The same purchase is carried in three amounts: ¥24,999 million against the resolution, ¥25,000 million as the movement in the statement of changes in equity, and ¥25,132 million (US$153.43 million) as cash paid in the cash flow statement; the lines that reconcile the three are not among the rows read here. A further resolution of 30 April 2026 covers 13,000,000 shares and ¥30,000 million (US$183.15 million) through 31 March 2027, of which 98.5% of shares and 97.7% of value were unexercised at the filing date, with 201,000 shares and ¥703 million (US$4.29 million) taken.

The dividend is the output of a division. The policy names a payout ratio of about 35%, paid twice. An interim of ¥18.02 (US$0.1100) per share and a proposed year-end of ¥34.96 (US$0.2134) make ¥52.98 (US$0.3234) for the year; the interim totalled ¥4,900 million (US$29.91 million) and the year-end is put at ¥9,262 million (US$56.54 million), and the two together are 35.0% of profit attributable to owners of the parent. Run it backwards: ¥34.96 × 264,933,073 shares — the 285,221,897 issued less the 20,288,824 in treasury — returns the ¥9,262 million. From the year to March 2027 the company has decided on progressive dividends with the 35% payout as the guide.

The register is counted in units of 100 shares. Foreign holders are 54.91%: corporations and other bodies at 1,565,207 units of 2,851,631, or 54.89%, plus individuals at 0.02%. That denominator includes the company's own shares, which appear as 202,888 units inside individuals and others; on the base without them, 1,565,207 ÷ 2,648,743 = 59.09%, and 2,648,743 is also the number of voting rights. The ten largest holders are 52.59% of shares excluding treasury. The first two are Japanese trust banks, at 20.65% and 10.84%; third, at 6.35%, is a foreign custodian nominee account, and more custodian accounts run down the list, along with an investment company, CEP LUX-ORBIS SICAV, at 2.32% and, tenth, the Government of Norway at 1.38%.

A reader in English reaches Japanese filings through two systems: EDINET, where this document sits, and the exchange's own material on English disclosure. What I retrieved of the second is a search-result list on the exchange's FAQ site — 25 items, titles only, with no date shown against any of them; most carry a bracketed category naming English disclosure on the Prime Market from April 2025, which is the period the requirement runs from rather than a date of publication. The first two items are an outline of the rule change and a handbook; the rest are questions, and they ask whether the English requirement covers only decisions, occurrences, earnings and revisions to forecasts and dividends; which documents earnings disclosure means; whether both languages must be simultaneous; what level of summary suffices; and whether public-relations material and inspection documents such as convocation notices and corporate governance reports are included. The answer text is not in what I retrieved, so I cannot say what any of those titles resolves to, and I am not describing the rule itself here.

Back to note 1. Production at selling prices; orders and backlog in yen; sales in yen. The indicators the company names for itself are sales, operating profit and equity spread. The numbers that carry targets sit in the other half of the document: 42% below 2020 levels by 2030, and carbon zero in 2050; an internal mobility rate of 16% in Japan against a standing 20%; women in management at 24% globally, and 14% at MISUMI in Japan, against 30% by the end of March 2031; 129 themes submitted in the first round of i-Up across Japan and China; five management forums on AI; up to ¥150,000 million (US$915.75 million) of investment over roughly three years. Percentages, counts of themes and forums, a yen ceiling. The measure that comes nearest to the catalogue itself is the one quoted in the audit report: a period since handling began, no prospect of further sale, a quantity above a threshold, and then zero.

The ordinance has a conversion clause of its own, pointing the other way. Form No. 2's general instructions require a filer that has prepared consolidated financial statements under designated international accounting standards, and that states amounts in a currency other than yen, to print the principal items with the yen-converted amounts alongside; and where such a conversion is made, to convert at the exchange rate of a stated day and to note that day, the rate used, the type of rate and anything else necessary. The condition is a non-yen presentation under those standards, and the amounts in the tables read here are printed in yen. The conversion in the note that follows runs the other way and is this publication's own, but it is stated on the same three points: the day, the rate, and where the rate comes from.

Conversion: yen figures are converted at ¥163.8 = US$1, the rate retrieved from the source below on 24 July 2026, applied without adjustment to every period shown, including prior-year and multi-year figures. That single rate is an editorial convention of this publication, sourced below; it does not come from the filing. Converted amounts keep the significant figures of the yen as printed in the cited disclosure — ¥1 million for the statement figures, ¥0.01 for the per-share dividends — so where components and totals are converted separately, a converted component sum can differ from a converted total by one unit in the last place. Ratios, percentages, day counts, share counts and tonnages are not converted. Ratios not printed in the filing are computed here from the figures cited in the same paragraph, with numerator and denominator named in the text.