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SATO Holdings

SATO Holdings 6287

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msb Tamachi, Tamachi Station Tower N 3-1-1 Shibaura, Minato-ku Tokyo, Japan 108-0023
https://www.sato.co.jp/
03-6628-2438
Summary
Provides Auto-ID Solutions to help gather data on people and things at the site of business operations such as production, logistics, and retail. Mainstay products are mechatronics products, including label printers, reader equipment, maintenance services, and software, as well as consumables, including variable data labels and RFID tags.
Commercial Services & Supplies
Key dates
2012-07-13
Coverage initiation
Full Report
2022-05-12
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Executive summary

SATO Holdings Corporation primarily develops, manufactures, and sells mechatronics products, including label printers, handheld labelers, reader equipment, maintenance services, and software, and consumables, including variable data labels (allowing printing of barcodes, serial numbers, or other data that varies from label to label), primary labels (product labels and packaging labels that typically involve printing the same data in large quantities), RFID tags, printer ribbons, and MC cards. Its customer base is broad, including the manufacturing, logistics, retail, healthcare, food & beverage, and public markets. Mechatronics products account for about 40% of total sales, and consumables for about 60%. The company is distinctive for having higher gross margins on sales of mechatronics than on sales of consumables.

Shared Research estimates SATO’s share of Japan’s barcode printer market is fairly high, around 40%. Having direct connections with some 40,000 customers, the company has a system that allows it to respond rapidly to changes in customer needs. Customers choose to use the company’s products, as they produce labels in a timely fashion on production, logistics, and sales sites, with relatively little effort on the part of the customer. They also appreciate that the company’s devices rarely have trouble, after-sales service is thorough, and the company is ready to propose new solutions suited to the characteristics of individual customer sites. Meanwhile, Shared Research estimates that SATO’s share of the overseas market is only a few percent and its shift in overseas strategy is proceeding rather slowly. There seems to be ample room for the company to expand overseas sales by leveraging the expertise and services it has cultivated in Japan.

In recent years, M&A has also served as a growth driver. Companies SATO has acquired or invested in include an Asian printer manufacturer with competitive pricing capabilities, South American and Russian primary labels manufacturers, and a company in Oceania with strengths in advanced RFID reader and RFID tag tracking technology.

Trends and outlook

SATO reported FY03/22 sales of JPY124.8bn (+14.4% YoY), operating profit of JPY6.4bn (+9.5% YoY), recurring profit of JPY6.1bn (+9.7% YoY), and net income attributable to owners of the parent of JPY3.8bn (-70.7% YoY). Backed by record-high earnings in the Auto-ID Solutions (Overseas) segment, consolidated sales reached a new high for the first time in two years. However, OPM dipped 0.3pp YoY to 5.1% as the company was unable to completely offset the effects from higher costs, including higher material prices. Net income declined sharply on the dropping out of extraordinary gains booked in FY03/21 on the sale of the old headquarters building. In line with its prior forecast, the company indicated an annual dividend of JPY70.0 per share.    

In light of changes in the external environment, the company in May 2021 announced a new three-year medium-term business plan starting from FY03/22. FY03/23 will be the second year in the plan.  

SATO targets FY03/23 sales of JPY119.0bn (-4.6% YoY), operating profit of JPY8.0bn (+24.9% YoY), recurring profit of JPY7.8bn (+28.8% YoY), net income attributable to owners of the parent of JPY3.4bn (-10.4% YoY), and EPS of JPY101.1. In addition to overseas growth in the auto-ID solutions business, the company looks for a recovery in earnings in Japan as the effects from price pass-throughs come into play. The company targets operating profit of JPY8.0bn, which would represent the first record high in four years. Management has excluded its business in Russia from its forecast in light of the current situation in Ukraine, but still expects operating profit to reach a new record high. The company's annual dividend target is JPY72.0 per share. 

In its medium-term plan, SATO targets for FY03/24 (the final year in the plan) sales of JPY126.0bn, operating profit of JPY11.2bn, and OPM of 8.9% (versus the FY03/23 forecast of 6.7%). It appears that one factor contributing to earnings will be that SATO will concentrate its business resources in the auto-ID solutions business following its withdrawal from the IDP business. The company also plans strategic investments focusing on the transition to common printer platforms and development of new IT infrastructure over the three years with a view to long-term growth, and targets an OPM of over 10% in FY03/26, when the benefits start flowing through in earnest.

Strengths and weaknesses

Shared Research believes the company’s strengths are 1) its ability to provide solutions based on a good knowledge of customers’ on-site needs, 2) the high proportion of sales coming from stable recurring-revenue businesses, and 3) its wealth of knowledge on on-site data collection. Weaknesses include 1) insufficient management of overseas operations, 2) low cost competitiveness, and 3) uncertain consumables profitability in overseas markets (see Strengths and weaknesses section for details).

Key financial data

Income statementFY03/14FY03/15FY03/16FY03/17FY03/18FY03/19FY03/20FY03/21FY03/22FY03/23
(JPYmn)Cons.Cons.Cons.Cons.Cons.Cons.Cons.Cons.Cons.Est.
Sales96,77499,831105,505106,302113,383116,179116,372109,052124,783119,000
YoY10.9%3.2%5.7%0.8%6.7%2.5%0.2%-6.3%14.4%-4.6%
Gross profit41,18042,70944,94245,02248,65550,67650,17945,73550,398-
YoY13.1%3.7%5.2%0.2%8.1%4.2%-1.0%-8.9%10.2%-
Gross profit margin42.6%42.8%42.6%42.4%42.9%43.6%43.1%41.9%40.4%-
SG&A expenses34,42235,26538,48738,91742,40542,99742,71839,88843,994-
YoY11.2%2.4%9.1%1.1%9.0%1.4%-0.6%-6.6%10.3%-
SG&A ratio35.6%35.3%36.5%36.6%37.4%37.0%36.7%36.6%35.3%-
Operating profit6,7597,4446,4556,1046,2497,6797,4615,8476,4048,000
YoY23.9%10.1%-13.3%-5.4%2.4%22.9%-2.8%-21.6%9.5%24.9%
Operating profit margin7.0%7.5%6.1%5.7%5.5%6.6%6.4%5.4%5.1%6.7%
Recurring profit7,0847,4846,1205,4265,8887,6186,5715,5216,0577,800
YoY30.5%5.6%-18.2%-11.3%8.5%29.4%-13.7%-16.0%9.7%28.8%
Recurring profit margin7.3%7.5%5.8%5.1%5.2%6.6%5.6%5.1%4.9%6.6%
Net income4,2953,7633,6883,2214,0743,773-1,88212,9593,7943,400
YoY57.6%-12.4%-2.0%-12.7%26.5%-7.4%---70.7%-10.4%
Net margin4.4%3.8%3.5%3.0%3.6%3.2%-1.6%11.9%3.0%2.9%
Per-share data ('000 shares, JPY)
Shares issued (year-end)33,40834,88034,92134,92134,92134,92134,92134,92134,921-
Shares outstanding (avg.; ex. treasury shares)30,34433,02233,50233,52733,52733,55833,57133,58733,654-
EPS141.6114.0110.196.1121.5112.5-56.1385.9112.7101.0
Dividend per share40.045.055.060.065.070.070.070.070.072.0
Book value per share1,4551,5791,5251,5801,6351,6501,4231,7351,875-
Balance sheet (JPYmn)
Total current assets53,64756,33154,23555,57157,16159,36766,19574,64181,950
Cash and cash equivalents17,76019,03418,04317,37516,46116,83723,79633,03729,854
Trade receivables22,39023,35422,46023,21524,73725,52223,76624,87826,688
Inventories9,27710,95910,48110,99011,36513,45313,05313,07220,418
Tangible fixed assets20,33721,12624,85327,35131,39830,72028,93627,30630,390
Intangible assets7,70812,76010,83416,60714,43611,9333,6883,3563,256
Investments and other assets5,0434,9566,9634,7503,4505,5524,3264,0074,407
Total assets86,73795,17596,888104,280106,447107,574103,147109,312120,005
Total current liabilities31,34633,27133,75034,44634,06436,90441,49236,98842,071
Trade payables5,6987,0676,4757,7027,0857,3046,7207,5699,073
Short-term debt4,6614,1788,4595,0244,0494,9678,5504,7924,720
Total fixed liabilities8,6568,74510,98215,61616,15714,00012,83212,86213,426
Long-term debt6,1455,5787,50811,83212,67110,9179,79810,55511,011
Total liabilities40,00242,01644,73250,06350,22150,90554,32449,85055,497
Total net assets46,73553,15852,15554,21756,22556,66848,82359,46264,508
Interest-bearing debt10,8069,75615,96716,85616,72015,88418,34815,34715,731
Net cash6,9549,2782,076519-2599535,44817,69014,123
R&D expenses2,2262,2922,4142,3872,9943,4603,3773,0463,9444,500
Capital expenditures6,1067,3726,7185,7239,0444,8013,8354,9315,2077,800
Depreciation2,1792,5013,9413,9964,3074,4895,0434,0924,2204,300
Amortization of goodwill9331,0991,1771,1951,2581,081871223236200
EBITDA9,87111,04411,57311,29611,81413,25013,37610,16310,86112,500
EBITDA margin10.2%11.1%11.0%10.6%10.4%11.4%11.5%9.3%8.7%10.5%
Cash flow statement (JPYmn)
Cash flows from operating activities10,5899,2056,09110,7696,1849,36511,2595,8063,302
Cash flows from investing activities-4,776-6,221-9,596-8,716-3,504-5,212-2,449-102-3,738
Cash flows from financing activities-1,511-3,0623,254-1,343-3,458-3,534-1,311-7,131-3,987
Financial ratios
ROA (RP-based)8.6%8.2%6.4%5.4%5.6%7.1%6.2%5.2%5.3%
ROE9.9%7.6%7.1%6.2%7.6%6.9%-3.6%24.4%6.3%5.3%
Equity ratio53.7%55.6%52.8%50.8%51.5%51.5%46.3%53.3%52.6%
Source: Shared Research based on company data

Trends and outlook

Quarterly trends and results

CumulativeFY03/20FY03/21FY03/22FY03/22
(JPYmn)Q1Q1–Q2Q1–Q3Q1–Q4Q1Q1–Q2Q1–Q3Q1–Q4Q1Q1–Q2Q1–Q3Q1–Q4% of Est.FY Est.
Sales28,46357,87587,803116,37223,65149,87279,271109,05230,17760,26192,388124,783102.3%122,000
YoY1.2%2.5%1.2%0.2%-16.9%-13.8%-9.7%-6.3%27.6%20.8%16.5%14.4%11.9%
Gross profit12,29825,12937,97050,1799,87720,85533,31645,73512,54424,55437,31750,398-
YoY-0.3%0.9%0.6%-1.0%-19.7%-17.0%-12.3%-8.9%27.0%17.7%12.0%10.2%
Gross profit margin43.2%43.4%43.2%43.1%41.8%41.8%42.0%41.9%41.6%40.7%40.4%40.4%
SG&A expenses10,78421,58632,32442,7189,49119,38429,53839,88810,83821,77432,57443,994-
YoY-0.7%0.2%0.1%-0.6%-12.0%-10.2%-8.6%-6.6%14.2%12.3%10.3%10.3%
SG&A ratio37.9%37.3%36.8%36.7%40.1%38.9%37.3%36.6%35.9%36.1%35.3%35.3%
Operating profit1,5143,5425,6457,4613851,4703,7775,8471,7062,7794,7436,404100.1%6,400
YoY2.8%6.0%3.7%-2.8%-74.6%-58.5%-33.1%-21.6%343.1%89.0%25.6%9.5%9.5%
Operating profit margin5.3%6.1%6.4%6.4%1.6%2.9%4.8%5.4%5.7%4.6%5.1%5.1%5.2%
Recurring profit1,3383,2375,3626,5716181,2313,4695,5211,6442,6954,6106,05797.7%6,200
YoY-4.6%1.5%5.1%-13.7%-53.8%-62.0%-35.3%-16.0%166.0%118.9%32.9%9.7%12.3%
Recurring profit margin4.7%5.6%6.1%5.6%2.6%2.5%4.4%5.1%5.4%4.5%5.0%4.9%5.1%
Net income8422,8804,157-1,8822133,24911,60412,9591,0851,8482,9523,79494.9%4,000
YoY7.8%50.1%35.1%--74.7%12.8%179.1%-409.4%-43.1%-74.6%-70.7%-69.1%
Net margin3.0%5.0%4.7%-1.6%0.9%6.5%14.6%11.9%3.6%3.1%3.2%3.0%3.3%
QuarterlyFY03/20FY03/21FY03/22
(JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
Sales28,46329,41229,92828,56923,65126,22129,39929,78130,17730,08432,12732,395
YoY1.2%3.7%-1.1%-2.9%-16.9%-10.8%-1.8%4.2%27.6%14.7%9.3%8.8%
Gross profit12,29812,83112,84112,2099,87710,97812,46112,41912,54412,01012,76313,081
YoY-0.3%2.1%0.0%-5.7%-19.7%-14.4%-3.0%1.7%27.0%9.4%2.4%5.3%
Gross profit margin43.2%43.6%42.9%42.7%41.8%41.9%42.4%41.7%41.6%39.9%39.7%40.4%
SG&A expenses10,78410,80210,73810,3949,4919,89310,15410,35010,83810,93610,80011,420
YoY-0.7%1.0%0.0%-3.0%-12.0%-8.4%-5.4%-0.4%14.2%10.5%6.4%10.3%
SG&A ratio37.9%36.7%35.9%36.4%40.1%37.7%34.5%34.8%35.9%36.4%33.6%35.3%
Operating profit1,5142,0282,1031,8163851,0852,3072,0701,7061,0731,9641,661
YoY2.8%8.4%0.1%-18.7%-74.6%-46.5%9.7%14.0%343.1%-1.1%-14.9%-19.8%
Operating profit margin5.3%6.9%7.0%6.4%1.6%4.1%7.8%7.0%5.7%3.6%6.1%5.1%
Recurring profit1,3381,8992,1251,2096186132,2382,0521,6441,0511,9151,447
YoY-4.6%6.3%11.0%-51.9%-53.8%-67.7%5.3%69.7%166.0%71.5%-14.4%-29.5%
Recurring profit margin4.7%6.5%7.1%4.2%2.6%2.3%7.6%6.9%5.4%3.5%6.0%4.5%
Net income8422,0381,277-6,0392133,0368,3551,3551,0857631,104842
YoY7.8%79.1%10.2%--74.7%49.0%554.3%-409.4%-74.9%-86.8%-37.9%
Net margin3.0%6.9%4.3%-21.1%0.9%11.6%28.4%4.5%3.6%2.5%3.4%2.6%
Source: Shared Research based on company data
By segmentFY03/20FY03/21FY03/22FY03/22
Quarterly (JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4% of Est.FY Est.
Sales28,46329,41229,92828,56923,65126,22129,39929,78130,17730,08432,12732,395102.3%122,000
YoY1.2%3.7%-1.1%-2.9%-16.9%-10.8%-1.8%4.2%27.6%14.7%9.3%8.8%11.9%
Auto-ID Solutions28,36229,31829,82728,50123,57426,16129,39929,78130,17730,08432,12632,396102.3%122,000
YoY1.3%3.7%-1.1%-2.8%-16.9%-10.8%-1.4%4.5%28.0%15.0%9.3%8.8%12.0%
% of total99.6%99.7%99.7%99.8%99.7%99.8%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
Overseas10,86710,74011,1189,9237,84410,16911,04611,29012,92912,35513,78813,424105.0%50,000
YoY-0.4%0.5%-2.6%-3.7%-27.8%-5.3%-0.6%13.8%64.8%21.5%24.8%18.9%23.9%
% of total38.2%36.5%37.1%34.7%33.2%38.8%37.6%37.9%42.8%41.1%42.9%41.4%41.0%
Japan17,49518,57818,70918,57815,73015,99218,35318,49117,24817,72918,33818,972100.4%72,000
YoY2.4%5.7%-0.1%-2.4%-10.1%-13.9%-1.9%-0.5%9.7%10.9%-0.1%2.6%5.0%
% of total61.5%63.2%62.5%65.0%66.5%61.0%62.4%62.1%57.2%58.9%57.1%58.6%59.0%
IDP10094100697561------
YoY-20.0%-10.5%-13.8%-14.8%-25.0%-35.1%------
% of total0.4%0.3%0.3%0.2%0.3%0.2%------
Operating profit1,5142,0282,1031,8163851,0852,3072,0701,7061,0731,9641,661100.1%6,400
YoY2.8%8.4%0.1%-18.7%-74.6%-46.5%9.7%14.0%343.1%-1.1%-14.9%-19.8%9.5%
Operating profit margin5.3%6.9%7.0%6.4%1.6%4.1%7.8%7.0%5.7%3.6%6.1%5.1%5.2%
Auto-ID Solutions1,8782,3602,4722,0464761,1322,2142,0831,7601,0011,9041,685100.8%6,300
YoY5.7%3.8%-2.4%-22.4%-74.7%-52.0%-10.4%1.8%269.7%-11.6%-14.0%-19.1%6.7%
Operating profit margin6.6%8.0%8.3%7.2%2.0%4.3%7.5%7.0%5.8%3.3%5.9%5.2%5.2%
Overseas560595773349776841,0438801,1756981,1021,003117.0%3,400
YoY1.3%-10.8%14.7%1.2%-86.3%15.0%34.9%152.1%1,426.0%2.0%5.7%14.0%26.7%
Operating profit margin5.2%5.5%7.0%3.5%1.0%6.7%9.4%7.8%9.1%5.6%8.0%7.5%6.8%
Japan1,3181,7651,6991,6973994481,1711,20358530380268281.8%2,900
YoY7.7%9.8%-8.7%-25.9%-69.7%-74.6%-31.1%-29.1%46.6%-32.4%-31.5%-43.3%-10.0%
Operating profit margin7.5%9.5%9.1%9.1%2.5%2.8%6.4%6.5%3.4%1.7%4.4%3.6%4.0%
IDP-394-343-318-262-70-78------
YoY------------
Operating profit margin-394.0%-364.9%-318.0%-379.7%-93.3%-127.9%------
Adjustments3011-5132-213193-13-547260-24
Source: Shared Research based on company data

Full-year FY03/22 results (out May 10, 2022)

Results summary

Full-year FY03/22 results were are follows.

  • Sales: JPY124.8bn (+14.4% YoY, company forecast: JPY122.0bn)
  • Operating profit: JPY6.4bn (+9.5% YoY, JPY6.4bn)
  • OPM: 5.1% (-0.3pp YoY, 5.2%)
  • Recurring profit: JPY6.1bn (+9.7% YoY, JPY6.2bn)
  • Net income attributable to owners of the parent: JPY3.8bn (-70.7% YoY, JPY4.0bn)

EPS was JPY112.7. The company plans to pay a year-end dividend of JPY35.0 per share, bringing the expected annual dividend to JPY70.0 per share, unchanged from FY03/21. The dividend payout ratio, based on the company's forecast, is estimated at 62.1%, up from 18.1% in FY03/21.  

Sales and profit improved YoY thanks to growth in the Auto-ID Solutions (Overseas) segment. Reaching a record high for the first time in two years, consolidated sales topped the JPY116.4bn level achieved in FY03/20. Sales and operating profit in the Auto-ID Solutions (Overseas) segment, which drove the overall expansion in sales, also reached record highs. 

In the Auto-ID Solutions (Japan) segment, sales increased but profit declined due to higher transportation costs as well as an increase in R&D spending and DX-related investment as part of the company's effort to ensure future growth. OPM declined 0.3pp YoY to 5.1%, reflecting the fact that it will take some time before the company's efforts to counter rising costs, including soaring material prices, begin to bear fruit. Net income declined sharply on the dropping out of extraordinary gains booked in FY03/21 on the sale of the old headquarters building.

Q4 FY03/22 results summary

Q4 FY03/22 (January–March 2022) results were as follows

  • Sales: JPY32.4bn (+8.8% YoY)
  • Operating profit: JPY1.7bn (-19.8% YoY)
  • Recurring profit: JPY1.4bn (-29.5% YoY)
  • Net income attributable to owners of the parent: JPY842mn (-37.9% YoY)

Sales on a YoY basis were up for a fifth consecutive quarter, while operating profit on the same basis was down for the third consecutive quarter. 

Note: Shared Research intends to update this report after interviewing the company.

Factors affecting change in operating profit
Factors affecting OP changeFY03/20FY03/21FY03/22
Quarterly (JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
Operating profit1,5142,0282,1031,8163851,0852,3072,0701,7061,0731,9641,661
YoY change411582-419-1,129-9432042541,321-12-343-409
Sales change36470986-232-1,803-1,403-313312,1281,491779948
GP-related factors, other-231-205148-357-441-323-219-127336-637-534-250
SG&A: Auto-ID Solutions-51-340-2295377051752-370-1,299-1,030-618-1,066
SG&A: IDP-3794913132629836734612912000
Forex impact-4-15-52-1419-323574274430-41
Auto-ID Solutions (Overseas)560595773349776841,0438801,1756981,1021,003
YoY change7-72994-483892705311,0981459123
Sales change17717822-29-887-103826101,534651794652
GP-related factors, other-209-23029-1774120248146169-402-602-31
SG&A-related factors7747977134614622-178-631-256-206-523
Forex impact-38-67-49-21-16-74-82-4726217325
Auto-ID Solutions (Japan)1,3181,7651,6991,6973994481,1711,203585303802682
YoY change94158-161-594-919-1,317-528-494186-145-369-521
Sales change205498-20-224-881-1,296-159-29707827-7243
GP-related factors, other193187-397-552-450-432-73198-25936-313
SG&A-related factors-145-390-21526481387-54-517-719-736-356-385
Forex impact1519-1313342117125023-42-66
Source: Shared Research based on company data

Auto-ID Solutions (Japan)

Auto-ID Solutions (Japan)FY03/20FY03/21FY03/22FY03/22
Quarterly (JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4% of Est.FY Est.
Sales17,49518,57818,70918,57815,73015,99218,35318,49117,24817,72918,33818,972100.4%72,000
YoY2.4%5.7%-0.1%-2.4%-10.1%-13.9%-1.9%-0.5%9.7%10.9%-0.1%2.6%5.0%
Mechatronics6,9547,6767,4568,7116,1766,3207,0288,4446,7397,3376,9348,550-
YoY11.8%9.7%7.3%-3.5%-11.2%-17.7%-5.7%-3.1%9.1%16.1%-1.3%1.3%
Consumables10,54010,90311,2539,8679,5549,67211,32510,04710,52610,40611,41710,377-
YoY-3.0%3.0%-4.5%-1.4%-9.4%-11.3%0.6%1.8%10.2%7.6%0.8%3.3%
Gross profit8,7409,3189,1368,9987,3397,6148,6639,0198,2468,2048,4538,713-
YoY2.8%6.3%0.6%-6.4%-16.0%-18.3%-5.2%0.2%12.4%7.7%-2.4%-3.4%
Gross profit margin50.0%50.2%48.8%48.4%46.7%47.6%47.2%48.8%47.8%46.3%46.1%45.9%
Operating profit1,3181,7651,6991,6973994481,1711,20358530380268281.8%2,900
YoY7.7%9.8%-8.7%-25.9%-69.7%-74.6%-31.1%-29.1%46.6%-32.4%-31.5%-43.3%-10.0%
Operating profit margin7.5%9.5%9.1%9.1%2.5%2.8%6.4%6.5%3.4%1.7%4.4%3.6%4.0%
Source: Shared Research based on company data
Sales by marketFY03/20FY03/21FY03/22
Quarterly (JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
Sales17,49518,57818,70918,57815,73015,99218,35318,49117,24817,72918,33818,972
YoY2.4%5.7%-0.1%-2.4%-10.1%-13.9%-1.9%-0.5%9.7%10.9%-0.1%2.6%
Manufacturing5,4265,5845,4525,6264,1384,2474,9645,5964,8024,9965,4345,753
YoY-----23.7%-23.9%-9.0%-0.5%16.0%17.6%9.5%2.8%
% of total31.0%30.1%29.1%30.3%26.3%26.6%27.0%30.3%27.8%28.2%29.6%30.3%
Logistics3,5703,7433,7593,7283,1683,1853,7483,6503,5863,5873,9013,604
YoY-----11.3%-14.9%-0.3%-2.1%13.2%12.6%4.1%-1.3%
% of total20.4%20.1%20.1%20.1%20.1%19.9%20.4%19.7%20.8%20.2%21.3%19.0%
Retail2,5022,4872,4942,0972,4232,4432,8142,6142,6832,6362,4302,413
YoY-----3.2%-1.8%12.8%24.7%10.7%7.9%-13.6%-7.7%
% of total14.3%13.4%13.3%11.3%15.4%15.3%15.3%14.1%15.6%14.9%13.3%12.7%
Healthcare1,8842,3572,3932,2281,6761,9222,2012,2211,9112,0662,1142,918
YoY-----11.0%-18.5%-8.0%-0.3%14.0%7.5%-4.0%31.4%
% of total10.8%12.7%12.8%12.0%10.7%12.0%12.0%12.0%11.1%11.7%11.5%15.4%
Food & beverage1,9612,0752,2161,9731,8401,7872,1161,8391,8811,6961,9341,809
YoY-----6.2%-13.9%-4.5%-6.8%2.2%-5.1%-8.6%-1.6%
% of total11.2%11.2%11.8%10.6%11.7%11.2%11.5%9.9%10.9%9.6%10.5%9.5%
Public4115365681,070650554624679535831559528
YoY----58.2%3.4%9.9%-36.5%-17.7%50.0%-10.4%-22.2%
% of total2.3%2.9%3.0%5.8%4.1%3.5%3.4%3.7%3.1%4.7%3.0%2.8%
Source: Shared Research based on company data
Note: The company changed its market classifications from FY03/22. Figures for FY03/20 and FY03/21 have been retrospectively adjusted.
Sales trends by market
(JPYmn)FY03/20FY03/21FY03/22ChangeDescription
ManufacturingQ1Sales5,4264,1384,802+664IndustryOverall production activity recovered. In particular, the electronic components industry performed well in response to 5G demand.
YoY--23.7%+16.0%SATOConsumables sales recovered to almost the same level as in FY03/20. Despite focus on strong industries and applications, mechatronics were yet to fully recover as investment appetite remained mixed.
Q2Sales5,5844,2474,996+749IndustryThe surge in demand for semiconductors has led to strong performance in the chemical and electronic components industries. On the other hand, production in the automobile and steel industries stagnated.
YoY--23.9%+17.6%SATOSales of consumables grew significantly YoY, reflecting strong industry demand. Mechatronics product sales grew substantially due to the need to address labor shortages and improve efficiency.
Q3Sales5,4524,9645,434+470IndustryAn increase in demand for semiconductors has led to strong performance in the chemical and electronic components industries. On the other hand, production in the automobile and steel industries stagnated.
YoY--9.0%+9.5%SATOSales of consumables grew driven by strong industry demand. Mechatronics product sales grew, with strong demand for RFID in particular, due to the need to address labor shortages and DX shift. Recovery continued.
Q4Sales5,6265,5965,753+157IndustryAn increase in demand for semiconductors has led to strong performance in the chemical and electronic components industries. On the other hand, production in the automobile and steel industries stagnated.
YoY--0.5%+2.8%SATOSales of consumables grew YoY, reflecting strong industry demand. Mechatronics sales were down slightly YoY due to delays in sales, despite strong performance of RFID due to labor shortages and the need to respond to the shift to DX.
LogisticsQ1Sales3,5703,1683,586+418IndustryThe e-commerce industry continued to be brisk. Demand for automation and digitization increased to combat labor shortages and to initiate e-commerce businesses.
YoY--11.3%+13.2%SATOConsumables sales rose versus FY03/20 in many industries. Mechatronics increased slightly due to needs in logistics and wholesale industries, which account for a large portion of sales, to shift to e-commerce.
Q2Sales3,7433,1853,587+402IndustryVarious industries are responding to the expansion of the EC market and the continued stay-at-home demand. The need for automation and digitalization has risen.
YoY--14.9%+12.6%SATOConsumables grew by responding to the needs of wholesalers (tied to stay-at-home demand), which account for a high percentage of sales. Sales of mechatronics products grew substantially, thanks to automation and digitalization of shipping management.
Q3Sales3,7593,7483,901+153IndustryVarious industries are responding to the expansion of the EC market and the continued stay-at-home demand. The need for automation and digitalization has risen.
YoY--0.3%+4.1%SATOConsumables grew in almost all industries, driven by volume growth. Mechatronics products continued to grow thanks to support for shipping process automation and digitization of inbound and outbound shipment management with RFID.
Q4Sales3,7283,6503,604-46IndustryVarious industries are responding to the expansion of the EC market and the continued stay-at-home demand. The need for automation and digitalization has risen.
YoY--2.1%-1.3%SATOConsumables grew driven by volume growth, while mechatronics products declined due to a slow recovery in the wholesale business, despite strong demand for automation and RFID in applications such as receiving and shipping management.
RetailQ1Sales2,5022,4232,683+260IndustryBoom in supermarkets and e-commerce continued. Demand for automation increase in industries promoting e-commerce.
YoY--3.2%+10.7%SATOConsumables sales increased slightly compared to FY03/20 contributed by new businesses acquired in 2H FY03/21. Mechatronics grew in light with sales for supermarkets.
Q2Sales2,4872,4432,636+193IndustrySupermarkets and e-commerce continue to thrive. The automation need to improve the efficiency of store operations and support e-commerce increased.
YoY--1.8%+7.9%SATOSales of consumables declined, as shortened hours at specialty stores offset strong market demand. Mechatronics sales increased significantly, capturing the need to address labor shortages
Q3Sales2,4942,8142,430-384IndustryDemand for supermarkets has slowed down. Necessary investments to improve efficiency of store operations and for digital shift continued. The e-commerce industry continued to be robust.
YoY-+12.8%-13.6%SATOSales of consumables declined slightly, as stay-at-home demand for supermarkets has slowed down. Mechatronics sales decreased due to the absence of large orders seen in the same period of the previous year, although the need to address labor shortages continued.
Q4Sales2,0972,6142,413-201IndustryDemand for supermarkets has slowed down. Necessary investments to improve efficiency of store operations and for digital shift continued. The e-commerce industry continued to be robust.
YoY-+24.7%-7.7%SATOSales of consumables declined as stay-at-home demand for supermarkets has slowed down. Mechatronics sales decreased due to the absence of large orders seen in the same period of the previous year, although the need to address labor shortages continued.

(JPYmn)FY03/20FY03/21FY03/22ChangeDescription
HealthcareQ1Sales1,8841,6761,911+235IndustryAlthough the recovery in the number of outpatient visitors to medical institutions was sluggish, demand in general such as for measures to address labor shortages, recovered.
YoY--11.0%+14.0%SATOConsumables declined versus FY03/20 as sales did not recover for hospitals, which account for a large percentage of the total. Mechatronics grew thanks to the automation demand in the pharmaceutical manufacturing industry.
Q2Sales2,3571,9222,066+144IndustryThe number of outpatients at medical institutions is recovering. Demand is firm across the board, including efficient management of medical equipment and response to labor shortages.
YoY--18.5%+7.5%SATOConsumables sales increased due to increased demand from medical equipment manufacturers and hospitals. Mechatronics sales decreased due to the absence of a large order booked in the pharmaceutical industry in the same period the previous year, although sales to hospitals recovered.
Q3Sales2,3932,2012,114-87IndustryThe number of outpatients at medical institutions remained flat. Demand was firm across the board, including efficient management of medical equipment and response to labor shortages.
YoY--8.0%-4.0%SATOConsumables sales increased slightly due to higher demand from medical equipment manufacturers and pharmaceutical industry. Mechatronics sales decreased due to the restricted sales activities and printer supply because of the pandemic.
Q4Sales2,2282,2212,918+697IndustryOverall demand is firm, including for improving the efficiency of administrative operations and responding to labor shortages. Investment appetite for automation is recovering.
YoY--0.3%+31.4%SATOConsumables and mechatronics products both grew significantly due to recovery in demand from hospitals as well as large orders for medical equipment.
Food & beverageQ1Sales1,9611,8401,881+41IndustryFood manufacturing was robust for retailers but struggled for restaurants and commercial sectors. Traceability demand increased with higher regulatory compliance needs.
YoY--6.2%+2.2%SATOConsumables sales were yet to recover to FY03/20 levels due to sluggish volumes in the food manufacturing industry, which accounts for a large portion. Mechatronics failed to reach the record high in FY03/20 despite proposals for improved traceability and automation.
Q2Sales2,0751,7871,696-91IndustryDemand for traceability and business efficiency is increasing due to increased awareness of legal compliance and quality control.
YoY--13.9%-5.1%SATOConsumables sales recovered in general, but decreased slightly due to the absence of the special demand for meals in the previous year. Mechatronics sales decreased due to the absence of large orders in the same period of the previous year, despite a recovery in food service sales.
Q3Sales2,2162,1161,934-182IndustryDemand for traceability and business efficiency continued to increase due to higher awareness of legal compliance and quality control, as well as labor shortages.
YoY--4.5%-8.6%SATOConsumables sales decreased as at-home-demand for food manufacturing slowed down. Mechatronics sales decreased due to the absence of large orders in the same period of the previous year, despite a recovery in food service sales.
Q4Sales1,9731,8391,809-30IndustryDemand for traceability, business efficiency, and automation continued to increase due to higher awareness of legal compliance and quality control, as well as labor shortages.
YoY--6.8%-1.6%SATOConsumables sales increased slightly mainly on continued demand for labels used in food production. Mechatronics product sales decreased due to the absence of large orders from the manufacturing industry in the same period of the previous year, despite a recovery trend in the food service industry.
PublicQ1Sales411650535-115IndustryThe overall business environment remained stable
YoY-+58.2%-17.7%SATOConsumables sales increased compared to FY03/20 due to orders from larger customers, Mechatronics were down YoY due to the absence of large orders seen in FY03/21, but sales were up versus FY03/20.
Q2Sales536554831+277IndustryThe overall business environment remained stable.
YoY-+3.4%+50.0%SATOConsumables sales increased due to the accumulation of new orders. Mechatronics sales grew significantly due to orders from large customers.
Q3Sales568624559-65IndustryThe overall business environment remained stable.
YoY-+9.9%-10.4%SATOConsumables sales were steady in general, but decreased YoY due to the absence of large orders seen in the same period of the previous year. Mechatronics sales increased significantly thanks to orders from the large customers.
Q4Sales1,070679528-151IndustryThe overall business environment remained stable.
YoY--36.5%-22.2%SATOConsumables sales were remained flat YoY; Mechatronics products sales declined on the dropping out of a large project in the same period of the previous year.
Source: Shared Research based on company data
Note: The company changed its market classifications from FY03/22. Figures for FY03/20 and FY03/21 have been retrospectively adjusted.

Auto-ID Solutions (Overseas)

Auto-ID Solutions (Overseas)FY03/20FY03/21FY03/22FY03/22
Quarterly (JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4% of Est.FY Est.
Sales10,86710,74011,1189,9237,84410,16911,04611,29012,92912,35513,78813,424105.0%50,000
YoY-0.4%0.5%-2.6%-3.7%-27.8%-5.3%-0.6%13.8%64.8%21.5%24.8%18.9%23.9%
Base8,5398,2868,7587,7955,7557,7798,5008,97610,0239,40010,57910,206-
YoY-2.2%-1.6%-3.9%-6.8%-32.6%-6.1%-2.9%15.2%74.2%20.8%24.5%13.7%
Primary labels2,3282,4542,3602,1282,0892,3892,5472,3142,9052,9553,2103,217-
YoY6.8%8.4%2.5%9.7%-10.3%-2.6%7.9%8.7%39.1%23.7%26.0%39.0%
Gross profit3,7843,7224,0043,3622,7513,5724,0934,0194,6933,9934,6024,852-
YoY-5.7%-8.0%-4.4%-5.7%-27.3%-4.0%2.2%19.5%70.6%11.8%12.4%20.7%
Gross profit margin34.8%34.7%36.0%33.9%35.1%35.1%37.1%35.6%36.3%32.3%33.4%36.1%
Operating profit560595773349776841,0438801,1756981,1021,003117.0%3,400
YoY1.3%-10.8%14.7%1.2%-86.3%15.0%34.9%152.1%1,426.0%2.0%5.7%14.0%26.7%
Operating profit margin5.2%5.5%7.0%3.5%1.0%6.7%9.4%7.8%9.1%5.6%8.0%7.5%6.8%
Base577518741348-26422728733894448900503-
YoY21.0%-3.7%9.1%-27.2%--18.5%-1.8%110.6%-6.2%23.6%-31.4%
Operating profit margin6.8%6.3%8.5%4.5%-0.5%5.4%8.6%8.2%8.9%4.8%8.5%4.9%
Primary labels-3360616100245271140266220187545-
YoY--59.2%408.3%--308.3%344.3%2,233.3%166.0%-10.2%-31.0%289.3%
Operating profit margin-1.4%2.4%2.6%0.3%4.8%10.3%10.6%6.1%9.2%7.4%5.8%16.9%
Overseas eliminations1616-29-5315457143014-44
Source: Shared Research based on company data
Auto-ID Solutions (Overseas): Earnings by region
The AmericasFY03/20FY03/21FY03/22
Quarterly (JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
Sales3,3743,3013,3093,2022,1593,1593,3663,7164,1063,6154,1314,174
YoY-0.8%2.4%-8.9%-3.1%-36.0%-4.3%1.7%16.1%90.2%14.4%22.7%12.3%
Base2,7972,7152,8112,6651,7812,6612,7943,1403,4582,9713,5543,457
YoY-2.0%2.8%-7.6%-3.2%-36.3%-2.0%-0.6%17.8%94.2%11.6%27.2%10.1%
Primary labels577586498537378498572576648644577717
YoY5.7%0.3%-15.3%-2.4%-34.5%-15.0%14.9%7.3%71.4%29.3%0.9%24.5%
Operating profit19117818871-4224332225036880298278
YoY274.5%334.1%-82.1%-36.5%71.3%252.1%--67.1%-7.5%11.2%
Operating profit margin5.7%5.4%5.7%2.2%-1.9%7.7%9.6%6.7%9.0%2.2%7.2%6.7%
Base17411715043-441702321562514224176
YoY314.3%1,571.4%-290.9%-45.3%54.7%262.8%--97.6%-3.4%12.8%
Operating profit margin6.2%4.3%5.3%1.6%-2.5%6.4%8.3%5.0%7.3%0.1%6.3%5.1%
Primary labels1761382827390941177674102
YoY88.9%79.4%216.7%0.0%-88.2%19.7%136.8%235.7%5,750.0%4.1%-17.8%8.5%
Operating profit margin2.9%10.4%7.6%5.2%0.5%14.7%15.7%16.3%18.1%11.8%12.8%14.2%
EuropeFY03/20FY03/21FY03/22
Quarterly (JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
Sales4,1373,9344,0673,8563,1643,8924,1113,7355,0024,7045,4195,250
YoY4.8%2.4%0.5%5.1%-23.5%-1.1%1.1%-3.1%58.1%20.9%31.8%40.6%
Base2,3862,0672,2052,2651,4532,0012,1371,9972,7462,3922,7862,750
YoY3.1%-4.3%-5.4%-0.7%-39.1%-3.2%-3.1%-11.8%89.0%19.5%30.4%37.7%
Primary labels1,7511,8671,8621,5911,7111,8911,9741,7382,2562,3122,6332,500
YoY7.2%11.1%8.6%14.6%-2.3%1.3%6.0%9.2%31.9%22.3%33.4%43.8%
Operating profit58261091081222927466264165311559
YoY-72.8%-81.6%105.7%--79.3%780.8%151.4%-38.9%2,100.0%-27.9%13.5%747.0%
Operating profit margin1.4%0.7%2.7%2.8%0.4%5.9%6.7%1.8%5.3%3.5%5.7%10.6%
Base1092686129-8657932011521198117
YoY-0.9%-10.3%62.3%10.3%-119.2%8.1%-84.5%--63.2%112.9%485.0%
Operating profit margin4.6%1.3%3.9%5.7%-5.9%2.8%4.4%1.0%4.2%0.9%7.1%4.3%
Primary labels-51023-219817218146149144113442
YoY------687.0%-52.0%-16.3%-37.6%860.9%
Operating profit margin-2.9%0.0%1.2%-1.3%5.7%9.1%9.2%2.6%6.6%6.2%4.3%17.7%
Asia and OceaniaFY03/20FY03/21FY03/22
Quarterly (JPYmn)Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
Base
Sales3,3553,5053,7412,8652,5203,1183,5683,8393,8174,0384,2384,001
YoY-5.8%-3.2%-0.1%-13.9%-24.9%-11.0%-4.6%34.0%51.5%29.5%18.8%4.2%
Operating profit294374505176104196401557527423479208
YoY-9.3%-25.6%-24.6%-49.7%-64.6%-47.6%-20.6%216.5%406.7%115.8%19.5%-62.7%
Operating profit margin8.8%10.7%13.5%6.1%4.1%6.3%11.2%14.5%13.8%10.5%11.3%5.2%
Source: Shared Research based on company data

Company forecast for FY03/23

FY03/21FY03/22FY03/23
(JPYmn)1H2HFY1H2HFY1H Est.2H Est.FY Est.
Sales49,87259,180109,05260,26164,522124,78357,80061,200119,000
YoY-13.8%1.2%-6.3%20.8%9.0%14.4%-4.1%-5.1%-4.6%
Gross profit20,85524,88045,73524,55425,84450,398--
YoY-17.0%-0.7%-8.9%17.7%3.9%10.2%---
Gross profit margin41.8%42.0%41.9%40.7%40.1%40.4%---
SG&A expenses19,38420,50439,88821,77422,22043,994--
YoY-10.2%-3.0%-6.6%12.3%8.4%10.3%---
SG&A ratio38.9%34.6%36.6%36.1%34.4%35.3%---
Operating profit1,4704,3775,8472,7793,6256,4043,0005,0008,000
YoY-58.5%11.7%-21.6%89.0%-17.2%9.5%8.0%37.9%24.9%
Operating profit margin2.9%7.4%5.4%4.6%5.6%5.1%5.2%8.2%6.7%
Recurring profit1,2314,2905,5212,6953,3626,0572,9004,9007,800
YoY-62.0%28.7%-16.0%118.9%-21.6%9.7%7.6%45.7%28.8%
Recurring profit margin2.5%7.2%5.1%4.5%5.2%4.9%5.0%8.0%6.6%
Net income3,2499,71012,9591,8481,9463,7941,9001,5003,400
YoY12.8%---43.1%-80.0%-70.7%2.8%-22.9%-10.4%
Net margin6.5%16.4%11.9%3.1%3.0%3.0%3.3%2.5%2.9%
Source: Shared Research based on company data

Company forecast

The company's new FY03/23 earnings forecasts are as follows

  • Sales: JPY119.0bn (-4.6% YoY)
  • Operating profit: JPY8.0bn (+24.9% YoY)
  • OPM: 6.7% (+1.6pp YoY)
  • Recurring profit: JPY7.8bn (+28.8% YoY)
  • Net income attributable to owners of the parent: JPY3.4bn (-10.4% YoY)

SATO forecasts EPS of JPY101.0 and an annual dividend of JPY72.0 per share (the forecast for FY03/22 is JPY70.0 per share). Based on the company's forecast, the expected dividend payout ratio is 71.3% (62.1% in FY03/22). 

In light of the current situation in Ukraine, the company is excluding its Russian business from its earnings forecasts. In FY03/21, the Russian business booked sales of about JPY7.3bn and operating profit of about JPY500mn. Based on the company's briefing materials, Shared Research estimates the Russian business reported sales of about JPY9.8bn and operating profit of about JPY1.1bn in FY03/22. Factoring in the exclusion of the Russian business, the company expects sales to decline YoY, but nevertheless forecasts operating profit reaching a new record high for the first time in four years (operating profit in FY03/19 was JPY7.7bn).

The company's forecast factors in expected growth in the auto-ID solutions business overseas (excluding the business in Russia), as well as a recovery in earnings in Japan. Management in particular expects a recovery in sales to the manufacturing industry to drive the recovery in earnings in Japan. The company forecasts OPM improving 1.6pp YoY to 6.7%. It forecasts a YoY decline in net income on the expected booking of extraordinary losses in line with pension plan revisions at the UK subsidiary. 

Note: Shared Research intends to update this report after interviewing the company.

By segmentFY03/13FY03/14FY03/15FY03/16FY03/17FY03/18FY03/19FY03/20FY03/21FY03/22
(JPYmn)Act.Act.Act.Act.Act.Act.Act.Act.Act.Est.
Sales87,25796,77499,831105,505106,302113,383116,179116,372109,052122,000
YoY8.3%10.9%3.2%5.7%0.8%6.7%2.5%0.2%-6.3%11.9%
Auto-ID Solutions87,25796,77499,831105,505106,209113,067115,751116,008108,915122,000
YoY8.3%10.9%3.2%5.7%0.7%6.5%2.4%0.2%-6.1%12.0%
% of total100.0%100.0%100.0%100.0%99.9%99.7%99.6%99.7%99.9%100.0%
Overseas22,37328,37433,15739,38038,92642,58543,31642,64840,34950,000
YoY20.6%26.8%16.9%18.8%-1.2%9.4%1.7%-1.5%-5.4%23.9%
% of total25.6%29.3%33.2%37.3%36.6%37.6%37.3%36.6%37.0%41.0%
Japan64,88468,40066,67566,12567,28370,48272,43573,36068,56672,000
YoY4.7%5.4%-2.5%-0.8%1.8%4.8%2.8%1.3%-6.5%5.0%
% of total74.4%70.7%66.8%62.7%63.3%62.2%62.3%63.0%62.9%59.0%
IDP92315427363136-
YoY-242.4%35.6%-15.0%-62.5%-
% of total0.1%0.3%0.4%0.3%0.1%-
Operating profit5,4536,7597,4446,4556,1046,2497,6797,4615,8476,400
YoY17.2%23.9%10.1%-13.3%-5.4%2.4%22.9%-2.8%-21.6%9.5%
Operating profit margin6.2%7.0%7.5%6.1%5.7%5.5%6.6%6.4%5.4%5.2%
Auto-ID Solutions5,4366,9277,8286,4166,2217,6969,2218,7565,9056,300
YoY15.9%27.4%13.0%-18.0%-3.0%23.7%19.8%-5.0%-32.6%6.7%
Operating profit margin6.2%7.2%7.8%6.1%5.9%6.8%8.0%7.5%5.4%5.2%
Overseas6981,8132,5242,6101,6501,8652,2392,2772,6843,400
YoY77.7%159.6%39.2%3.4%-36.8%13.0%20.1%1.7%17.9%26.7%
Operating profit margin3.1%6.4%7.6%6.6%4.2%4.4%5.2%5.3%6.7%6.8%
Japan4,7375,1145,3043,8064,5715,8316,9826,4793,2212,900
YoY10.2%8.0%3.7%-28.2%20.1%27.6%19.7%-7.2%-50.3%-10.0%
Operating profit margin7.3%7.5%8.0%5.8%6.8%8.3%9.6%8.8%4.7%4.0%
IDP-----240-1,426-1,421-1,317-148-
YoY----------
Operating profit margin-----260.9%-452.7%-332.8%-362.8%-108.8%-
Adjustments17-168-38439123-21-1212290100
R&D expenses2,0432,2262,2922,4142,3872,9943,4603,3773,0463,900
YoY9.9%9.0%3.0%5.3%-1.1%25.4%15.6%-2.4%-9.8%28.0%
Capital expenditures3,0606,1067,3726,7185,7239,0444,8013,8354,9318,000
YoY66.8%99.6%20.7%-8.9%-14.8%58.0%-46.9%-20.1%28.6%62.2%
Depreciation1,9412,1792,5013,9413,9964,3074,4895,0434,0924,150
YoY0.6%12.3%14.7%57.6%1.4%7.8%4.2%12.3%-18.9%1.4%
Source: Shared Research based on company data

Forex sensitivity: Assuming that all currencies except the yen move in line with the US dollar, a JPY1/USD appreciation of the yen reduces yearly sales by JPY459mn and operating profit by JPY17mn (on a full-year FY03/22 basis).

Auto-ID Solutions (Japan) sales by market
Sales by marketFY03/13FY03/14FY03/15FY03/16FY03/17FY03/18FY03/19FY03/20FY03/21FY03/22
(JPYmn)Act.Act.Act.Act.Act.Act.Act.Act.Act.Est.
Sales64,88468,40066,67566,12567,28370,48272,43573,36068,56672,000
YoY4.7%5.4%-2.5%-0.8%1.8%4.8%2.8%1.3%-6.5%5.0%
Manufacturing17,94618,17019,34819,23120,10321,54622,96722,76619,447-
YoY-1.2%6.5%-0.6%4.5%7.2%6.6%-0.9%-14.6%-
% of total27.7%26.6%29.0%29.1%29.9%30.6%31.7%31.0%28.4%-
Logistics15,55816,52515,93015,60516,07816,83817,05817,80516,568-
YoY-6.2%-3.6%-2.0%3.0%4.7%1.3%4.4%-6.9%-
% of total24.0%24.2%23.9%23.6%23.9%23.9%23.5%24.3%24.2%-
Retail8,4959,9228,5328,4357,7727,8838,2618,0668,866-
YoY-16.8%-14.0%-1.1%-7.9%1.4%4.8%-2.4%9.9%-
% of total13.1%14.5%12.8%12.8%11.6%11.2%11.4%11.0%12.9%-
Healthcare7,2017,4047,3187,3197,5477,8017,9818,5537,658-
YoY-2.8%-1.2%0.0%3.1%3.4%2.3%7.2%-10.5%-
% of total11.1%10.8%11.0%11.1%11.2%11.1%11.0%11.7%11.2%-
Food & beverage5,7475,7996,1256,1326,2736,3716,5056,6426,140-
YoY-0.9%5.6%0.1%2.3%1.6%2.1%2.1%-7.6%-
% of total8.9%8.5%9.2%9.3%9.3%9.0%9.0%9.1%9.0%-
Public1,6021,9842,6572,3582,5182,9152,5392,1372,429-
YoY-23.8%33.9%-11.3%6.8%15.8%-12.9%-15.8%13.7%-
% of total2.5%2.9%4.0%3.6%3.7%4.1%3.5%2.9%3.5%-
Source: Shared Research based on company data

Historical performance versus company estimates

Results vs. Initial Est.FY03/14FY03/15FY03/16FY03/17FY03/18FY03/19FY03/20FY03/21FY03/22
(JPYmn)Cons.Cons.Cons.Cons.Cons.Cons.Cons.Cons.Cons.
SalesInitial Est.96,000100,000110,000113,000113,500120,000120,000-117,000
Act.96,77499,831105,505106,302113,383116,179116,372109,052124,783
Results vs. Initial Est.0.8%-0.2%-4.1%-5.9%-0.1%-3.2%-3.0%-6.7%
Operating profitInitial Est.6,5008,0008,5008,0006,0007,3008,500-6,400
Act.6,7597,4446,4556,1046,2497,6797,4615,8476,404
Results vs. Initial Est.4.0%-6.9%-24.1%-23.7%4.2%5.2%-12.2%-0.1%
Recurring profitInitial Est.6,3007,9008,4007,9005,9007,1007,300-6,200
Act.7,0847,4846,1205,4265,8887,6186,5715,5216,057
Results vs. Initial Est.12.4%-5.3%-27.1%-31.3%-0.2%7.3%-10.0%--2.3%
Net incomeInitial Est.3,6005,0005,5005,0003,6004,1005,000-4,000
Act.4,2953,7633,6883,2214,0743,773-1,88212,9593,794
Results vs. Initial Est.19.3%-24.7%-33.0%-35.6%13.2%-8.0%---5.2%
Source: Share Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: FY03/21 initial estimate was undetermined due to the COVID-19 outbreak so is shown as “-”.

Medium-term business plan

Medium-term business plan targets (announced May 2021)
FY03/20FY03/21FY03/22FY03/23FY03/243-yrFY03/265-yr
(JPYmn)Cons.Cons.Est.TargetsTargetsCAGRTargetsCAGR
Sales116,372109,052117,000123,000130,000+6.0%+6.0%
YoY0.2%-6.3%7.3%5.1%11.1%
Auto-ID Solutions (Overseas)42,64840,34946,00049,50054,000+10.2%
YoY-1.5%-5.4%14.0%7.6%17.4%
Auto-ID Solutions (Japan)73,36068,56671,00073,50076,000+3.5%
YoY1.3%-6.5%3.5%3.5%7.0%
Operating profit7,4615,8476,4008,60011,800+26.4%
YoY-2.8%-21.6%9.5%34.4%84.4%
Operating profit margin6.4%5.4%5.5%7.0%9.1%Over 10%
Auto-ID Solutions (Overseas)2,2772,6843,1003,6004,500+18.8%
YoY1.7%17.9%15.5%16.1%45.2%
Operating profit margin5.3%6.7%6.7%7.3%8.3%
Auto-ID Solutions (Japan)6,4793,2213,3005,0007,300+31.4%