Management Policies

Message from the Chairman and CEO

Higher reagent sales, due to resurgent testing demand, and the impact of yen depreciation pushed up net sales and profits

Net sales rose substantially, centering on reagent sales, owing to a recovery in testing demand and an increase in the installed instrument base.

Higher net sales and an improved cost of sales ratio pushed up profit significantly.

代表取締役会長兼社長 家次 恒

May 2022

家次 恒

I would like to extend my sincere sympathies to the people who are suffering from the novel coronavirus disease (COVID-19). I also offer my heartfelt thanks to all of you who are working to help prevent the pandemic from spreading. 
In the fiscal year ended March 31, 2022, the Sysmex Group experienced a major increase in net sales, thanks to a combination of positive factors: testing demand recovered, we benefited from an alliance in the urinalysis field in North America, and performance was favorable in direct-sales areas. Higher net sales and an improved cost of sales ratio pushed up gross profit substantially. The COVID-19 impact suppressed selling, general, and administrative (SG&A) expenses, leading to higher operating profit. The rise in operating profit plus an improvement in foreign exchange gains (losses) contributed to a significant rise in profit attributable to owners of the parent. 
The year under review was characterized by major changes in the external environment, such as soaring raw material prices and logistics costs and rising geopolitical risks. However, these factors had little impact on performance. Year on year, net sales were up 19.2%, operating profit was up 34.8%, and profit attributable to owners of the parent was up 38.2%. At the exchange rates prevailing one year earlier, net sales would have been up 12.2% and operating profit up 16.4%.
In the diagnostics business, sales rose in all fields. We saw a major rise in reagent fields in our mainstay fields, centering on hematology*. In the immunochemistry field, we launched 18 reagent parameters in China, bringing the total to 37. We also entered a capital and business tie-up with KAINOS Laboratories Inc., through which we will seek to expand our global reagent lineup. In the medical robotics business, a total of 18 units have been installed. Sales in this business rose 67.1% year on year. In October 2021, we completed an application to expand regulatory approval in Japan for our robotic assisted surgery system to gynecology and gastroenterology. We aim to expand the system’s scope of use to surgery outside the field of urology. 
We had initially forecast dividends for the year of ¥74 per share (interim and year-end dividends of ¥37 each). However, we raised that amount by ¥2 per share, to ¥76 (interim dividend of ¥37, year-end dividend of ¥39). This resulted in a consolidated dividend payout ratio of 36.0%. We plan to continue paying stable dividends going forward. 
For the fiscal year ending March 31, 2023, we forecast consolidated net sales of ¥410.0 billion, operating profit of ¥76.0 billion and profit attributable to owners of the parent of ¥50.0 billion.* We anticipate annual dividends of ¥80 per share, up ¥4 year on year. 
I would like to ask our shareholders for your continued support.
* Hematology field: The field of in vitro diagnostics that determines whether precise testing is necessary by analyzing the number, type and size of red, white and other blood cells.

*  Assumed exchange rates: US1.00 = JPY120.0, EUR1.00 = JPY130.0, CNY1.00 = JPY18.0