Consolidated Operating Results for Fiscal Year Ending March 2014
Move Forward !
Aspire for Global Growth and Advance Forward!

Akito Mizuno,President of MIZUNO Corporation

Looking Back on Operational Results for the Full Fiscal Year Ending March 2014

Net sales for the 101st period was 183,204 million Yen (11.9% increase from last year) with ordinary income 5,816 million Yen (42.0 % increase from last year), resulting in this term's net income of 2,640 million Yen (35.6% increase from last year).

This term we have achieved a revenue increase not only due to strong sales performances in every single global region for our running shoes and life-style sports products, but also with the recovery of the golf business in the US, as well as the launch of direct sales by establishing overseas subsidiaries in Europe and Asia.
By product category, our footwear sales showed strong performance worldwide, pulling up the whole.

For golf products, although our custom-fitting-system products showed strong performance in the Americas with increase in sales, struggles in other regions affected the whole for a slight decrease in sales.

Baseball products showed steady performance in the Americas, but the market decrease in Japan greatly effected sales leaving us struggling.

Another contributing factor for our revenue increase was the allocation of the wholesales sales total from our overseas subsidiaries established in Korea and Spain this fiscal year, to our consolidated net sales.

For profit, even with the devalued Yen taking root and the continual increase in material as well as production cost, which lowered our gross margin percentage, our efforts to control our cost expenditure lead to a revenue increase compared to last year.

Revenues by region
Net Sales by Region

Revenues by product
Consolidated Sales figures by Product

Operating Results in Japan

Japan's revenue was 125,286 million Yen, an increase in 3.0% compared to last year.
Sales were steady in running shoes, walking shoes and additionally in life-style sports products such as training apparel etc.
With our promotions as the official sponsor of the "Osaka Marathon 2013," not only did our core strength running shoes show a growth in sales, but our highly-functional training apparel "BIOGEAR" with products such as tights, did as well.

We also expanded our sales by increasing our product line-up using our moisture absorbent heat generating material (Breath Thermo) developed in pursuit of comfort such as "easy to move in" and "comfortable to wear" in a variety of life scenes including sports.

On the other hand, although some products and categories were accepted by efforts of our unique and effective advertising and promotions, our sales in baseball and competitive sports products struggled.

For golf products, though we put up a good fight with our custom-fitted clubs as well as shoes, we were unable to grasp a foothold to turn around our difficult situation.

Osaka Marathon 2013

Running Tights "BIOGEAR"

International Operating Results

Sales revenues in Europe were 14,423million Yen (38.3% increase in Yen conversion), and a 17.3% increase from the previous year on a local currency basis.
In Europe, we continued sponsoring the Amsterdam Marathon and strengthened our running business as well as appealed to consumers, the high functionality of our products. As a result, we received appraisal from runners in each country/region and increased our sales. In addition, in the indoor sports category such as volleyball and handball, our sales are growing as well, as we respond to consumer needs.
On the other hand, for golf products we were unable to revive our demand and struggled, except in our custom-fitted products.

Sales revenues in the Americas were 30,582 million Yen (32.9% increase), and increased 9.6% from the previous year on a local currency basis. The running shoes business continued to perform well.
Running shoe sales were steady in not only specialty stores, but also in major sports retailers helping to boost our revenue as a whole.

For golf products, having an established reputation for high technology and quality, we expanded the line-up of our irons. We responded to the needs of the practicing golfer and further expanded our position in the market to increase our sales turnover.

In Asia and the Oceania regions, the sales revenue was 12,911 million Yen (50.9% increase) and a 30.5% increase on a local currency basis from the previous year.

Taiwan and Australia showed continued steady growth, contributing to our consolidated performance.

However in China, though we tried a variety of measures to improve our balance of payments and set out to improve the situation, our sales did not recover to the point of absorbing operating costs, and kept us in a bleak situation.

Runner's World BEST DEBUT Award Winner

Amsterdam Marathon

Our Efforts for Future Growth

In fiscal year 2013, we established subsidiaries in many global regions and set out to promote growth and increase revenue with our direct operation.
In addition to the business in Italy launched in January 2013, we established subsidiaries in Spain and Korea in July to penetrate the brand locally.
Also, as a proactive approach in Asia where future growth is promising, we have opened our Singapore office in April 2014.
We will increase speed of our expansion in the Asian market where future economic growth is promising.

Singapore Office

Mizuno Shop in Korea

Forecasts of Full-year Results for Financial Year Ending March 2014 and Mid-term Plans

For fiscal year 2014, we expect an annual sales of 195,000 million Yen, ordinary profit of 8,000 million Yen, and a net profit of 5,000 million Yen.
Our mid-term plans are shown in the following graph and we plan for a sales growth reaching 225,000 million Yen and an ordinary profit of 11,500 million Yen by March 2017.
We aspire to achieve further business expansion and increase in revenue by effective utilization of new structures/systems that will allow further global strategic growth.

Mid-term plan graph


We have walked side-by-side with sports since its beginning in Japan, which was over 100 years ago, and the year 2016 being our 110th anniversary in business is quickly approaching us. Every one of our employees will continue to make strenuous efforts for the worldwide realization of our corporate philosophy, "Contributing to society through the advancement of sporting goods and the promotion of sports."
Our business slogan for fiscal year 2014 is "Move Forward!"
We will challenge this fiscal year as one to advance forward toward global growth.
We greatly appreciate the generous understanding and support of our shareholders as well as our stakeholders.