Mizuno Corporation The 100th Period （Year ending March 31, 2013） 2nd Quarter Financial Report

This report includes forecasts based our assumptions, outlook and plans for the future as of November 9, 2012, which may substantially differ from actual results due to risks and Nov. 9, 2012 uncertainties relating to the global economy, competitors' situations, changes in exchange rates, etc. Contents

FY2012 2nd Quarter Business Results

Regional Highlights

Conclusion

2 /15 Summary of FY2012 2Q

Revenue increase, profit decrease

 Olympic related marketing expenses were budgeted in the first half of fiscal year. Sudden changes

made to place in second half of fiscal year.

 Increase in revenue even after omitting sales increase due to acquiring Senoh corporation shares.

 The gross margin percentage dropped 1 point due to increase in purchase costs

Strong regions are and the Americas. The running business shows steady

 The Americas show solid performance in all areas of business

 Running sales numbers were up 113% compared to the previous year (4.56 million pairs,

globally)

Implementing Brand Building through the London Olympic Games

 Mizuno products used by 61 countries. Obtained a total 52 medals.

 Reinforced popular indoor sports in Europe (handball, )

3 /15 Consolidated Income Statement

Due to increase in purchase costs, the gross margin percentage dropped. Profit declined from increased expenses due to active promotion.

Versus (billion JPY) FY11_Q2 (6 months) FY12 _Q2(6 months) FY11(%) Revenues 78.1 81.3 +4.2% Gross margin 33.5 34.1 +1.7% Gross margin ratio 42.9% 41.9% -1.0P SG&A expenses 29.1 31.1 +6.7% SG&A expenses ratio 37.3% 38.2% +0.9P Salaries and bonus 10.2 10.8 +5.5% A&P expanses 5.5 6.3 +14.6% Operating profit 4.4 3.0 -31.6% Operating profit ratio 5.6% 3.7% -1.9P Ordinary profit 3.9 2.6 -33.4% Ordinary profit ratio 5.0% 3.2% -1.8P Net Income 2.2 1.7 -23.7%

JPY/1USD 81.7 79.5 JPY/1GBP 129.5 125.8 JPY/1EUR 114.1 101.1 4 /15 Consolidated Balance Sheet

Intangible assets were increased by acquisition of Senoh Corp.

(billion JPY) Sep.30, 2011 Sep.30, 2012 +/- Total assets 123.6 139.5 +15.9 Cash and Cash equivalents 16.5 15.4 -1.1 Accounts receivable 27.4 31.1 +3.7 Inventories 23.9 27.9 +4.0 Fixed assets 37.4 47.0 +9.6 Investment securities 6.8 6.7 -0.1 Deferred tax assets 4.4 4.7 +0.3 Total liabilities 47.4 61.4 +14.1 Short-term debt 5.2 7.1 +1.8 Long-term debt 9.8 16.1 +6.3 Other liabilities 32.4 38.3 +6.0 Net assets 76.2 78.0 +1.8 5 /15 2Q Year-to-Date Outline of Business Results

Strong sales in running shoes category. Sales increase of clubs in US and Japan. Versus FY11 Revenues 81. 3 billion yen +3.3 billion (+4.2%)

Impact of exchange fluctuations -0.8 billion (-1.0%) Increase/decrease excl. impact of exchange rate fluctuations +4.1 billion (+5.2%)

Steady revenue in Japan and the Americas. Profit decrease in Europe due to sales struggle in golf products Our high-value added running shoes continued to pull up sales. Influence of Senoh consolidation was approximately 1.9 billion Yen

Operating profit 3.0 billion yen -1.4 billion (-31.6%) Due to increase in purchase costs the gross margin percentage dropped 1 point. Profit declined from increased expenses due to aggressive promotional investment during the London Olympic Games etc.

Ordinary profit 2.6 billion yen -1.3 billion (-33.4%)

Due to decrease in operating profit

Net income 1.7 billion yen -0.5 billion (-23.7%) 6 /15 Revenue Increase/Decrease Analysis by Region

Revenues by region, with and without the impact of exchange rates

Japan Americas Europe Asia/Aus Impact of (billion JPY) Incl.export +0.8 billion -0.09 billion -0.2 million (107.0%) (98.4%) Exchange rate +3.6 billion (95.0%) -0.8 billion (106.3%) 81.3

Americas –0.4 Europe - 0.4 78.1 Asia/Aus –0.08

Japan：Growing for . Regaining for Golf.

Sales increased due to the consolidation of Seno Corporation. Americas：Footwear marked double-digit growth. Growing for Golf. Europe：Growing for Footwear and down for Golf. Asia/Aus：Growing for footwear sales in Taiwan and Australia.

Sales in increased except for the settlement adjustments. 2Q (6 months) (6 2Q

FY2012 Europe -

2Q (6 months) (6 2Q - 60.7 11.7 5.3 3.7

Japan Americas Asia/Aus FY2011 Incl.export

57.1 11.2 5.7 4.0

Revenues of of FY12 Revenues Revenues of of FY11 Revenues

FY11-2Q FY12-2Q 7 /15 Revenue Increase/Decrease Analysis by Product

Increase/Decrease in consolidated revenues by product, including impact of exchange rates

(billion JPY) Others +2.6 billion Sporting Sporting Golf goods (116.0%) 81.3 goods Footwear Apparel Incl. shoes., wear Incl. Shoes, wear +1.4 billion -0.3 billion +0.1 billion -0.5 billion (108.2%) (97.8%) (101.2%)

78.1 (97.5%)

Baseball：Slightly fell in Japan and America. Sporting footwear：Growing in all areas Americas marked double-digit growth. Sporting apparel：External sales increased, while total amount slightly fell due to the settlement

adjustment. 2Q(6 months)

Golf ：Growing in Japan and Americas. Experienced difficulty in Europe due to the slow economy. -

2Q (6 months) (6 2Q - FY2012

19.6 18.4 13.5 11.2 18.5

Sporting Sporting Baseball Footwear Apparel Golf Other

FY2011

Revenues of FY12 Revenues of of FY11 Revenues 20.1 17.0 13.8 11.1 16.0

FY11-2Q FY12-2Q 8 /15 Principal Financial indexes

Main Indexes were decreased because of lowering profit margin and increase of total assets by acquisition of Senoh Corp.

FY11_Q2 FY12_Q2 +/-

Return on assets (ROA) 3.6% 2.4% -1.2P Return on equity (ROE) 3.0% 2.2% -0.8P Shareholder’s equity ratio 61.5% 55.8% -5.7P Earnings per share (EPS) JPY17.91 JPY13.65 -JPY4.26 Book value per share (BPS) JPY610.45 JPY624.25 +JPY13.80 Price book value ratio (PBR) 0.66 0.63 -0.03 Price at the end of this period JPY403 JPY391 -JPY12 Dividend payout ratio 27.9% 36.6% +8.7P

9 /15 Regional Highlights

Global Business Unit (global strategic decision-making unit) FY12 net sales outline (growth rate y-o-y) based on local currency without currency conversion.

Up 5% or more Asia, Japan Europe Americas Between -5% and 5% Australia Down 5% or more ＊ ＊＊

■Baseball goods ■Others (for racket sports, martial Diamond sports business arts, etc.)

■ Footwear ■Sports shoes ■Others & Apparel business

■Golf goods ■Others Golf business

■Sportswear (health) ■Sports shoes (walking) Wellness business ■Others (related to health business)

＊incl. Senoh Corp. ＊＊excl. audit adjustment 10 /15 Regional Highlights (Japan)

FY12 2Q Summary Summary of results (Japan) FY12 results by business –Added the 3-month actual performance during July to (incl. exports to Asia) Sept. –Sales increase due to above was approx. 1.9 billion Footwear & (billion JPY) Total Diamond Golf Wellness Other Yen. Apparel –Custom-fitted clubs sales doing well. Revenue 60.7 16.0 20.6 6.4 8.6 9.1 –Domestic sales recovered to sales standards prior to disaster. vs. FY 11 106% 105% 99% 108% 105% - –Sales in walking shoes, health training machines have been steadily increasing. Revenue Revenue Operating profit Future actions/outlook (billion JPY) Operating profit (billion JPY) 10 –Effective use of the Olympics for brand exposure. 60.7 –Support Nippon Professional Baseball, “Samurai 60 56.7 55.5 57.1 8 Japan” 40 6 –Utilize sponsor events such as the Marathon – Implement of Tech 4 2.7 2.8 20 2.2 2.0 –Increase awareness through campaigns and add 2 new products.

0 0 (Note) Results by business are based on FY09 FY10 FY11 FY12 internal company documents. 11 /15 Regional Highlights (Europe)

Summary of results (Europe) FY12 2Q Summary FY12 results by business –European financial crisis/adverse weather decreased sales. Footwear ＆ (billion JPY) Total Golf –Enhanced custom-fitted clubs helped maintain our Apparel market share. Revenue 5.3 4.2 1.1 –Exchange rate effects due to dollar-based purchases. vs. FY11 92% 99% 80% –Utilizing the on-site Performance Center. Currency 98% 105% 82% neutral basis –Increased recognition of indoor shoes.

Revenue Revenue Operating profit (billion JPY) Operating profit (billion JPY) Future actions/outlook 8 2.0 –Handling recovery delay of European economy. 6 5.7 5.7 1.5 5.3 5.3 –In addition to running shoes, strengthen sales of indoor shoes which recognition increased during the Olympics. 4 1.0 –Strengthen sales centered on new products and custom-fitted clubs. 2 0.5 0.3 0.3 0.2 0.2

0 0.0 (Note) Results by business are based on FY09 FY10 FY11 FY12 internal company documents. 12 /15 Regional Highlights (Americas)

Summary of results (Americas) FY12 2Q Summary FY12 results by business –Unable to completely absorb with hike in sales Footwear & price. (billion JPY) Total Diamond Golf Apparel –High-price-range product sales were strong not Revenue 11.7 5.5 3.9 2.3 only in running specialty stores, but at major sports retailer channels as well. vs. FY11 104% 112% 96% 102%

Currency –With the synergetic effects of our custom-fitted 107% 113% 98% 105% neutral basis clubs sales was steady. Future actions/outlook Revenue Revenue Operating profit (billion JPY) (billion JPY) Operating profit –Increase sales by proving to customers our high 15 5 commendation by Runners World magazine and various specialized magazines through campaigns 11.7 12 11.2 11.2 4 allowing them to actually experience our shoes. 9.7 9 3 –As with other regions, promote sales centered on new products and custom fitting. 6 2 0.9 1.0 –Reinforcement of the marketing cooperation with 3 0.7 1 South American distributors as we prepare for the -0.0 World Cup Soccer and the Olympics in Brazil. 0 0

FY09 FY10 FY11 FY12 (Note) Results by business are based on -3 -1 internal company documents. 13 /15 Regional Highlights (Asia/Australia)

FY12 2Q Summary

Summary of results (Asia/Aus) FY12 results by business –Revenues increased by 3% compared to last term Footwear & based on actual sales, excluding the settlement (billion JPY) Total Diamond Golf Other Apparel adjustments related to our production subsidiaries. –Increased revenue in Taiwan/Australia, stagnant in Revenue 3.7 3.4 0.2 0.7 -0.6 China (excludes exchange rate impacts).

Currency Future actions/outlook Revenue Revenue Operating profit (billion JPY) Operating profit (billion JPY) –No direct damage to our stores due to demonstrations. 5 0.5 4.4 –Stagnant in-store sales. 4.0 4.0 4 3.7 0.4 –May affect bulk orders due to Japanese brand rejection. 3 0.3 0.19 –Secure current high margin percentages with 2 0.2 stable growth centered on grassroots promotional activities. 1 0.08 0.1 0.04 -0.01 –Aim to double FY2011 sales number by FY 2015. 0 0.0 FY09 FY10 FY11 FY12 (Note) Results by business are based on -1 -0.1 internal company documents. 14 /15 Conclusion

Business slogan for FY12 “Be Professional!”

The first half of fiscal year 2012 was filled with positive news such as the Japan team winning several medals at the London Olympic Games as well as the great performances of our contract golf professional athletes. Using the above as our tailwind, we will accelerate the shift into our regrowth for the latter half of the year. In addition to the lingering delay in recovery of the European economy, the anti-Japanese activities in China continue to bring uncertainty, but we will proceed to place importance on transforming our business structure to withstand even difficult environments, and make efforts to enhance our business performance.

FY12 Company policies Management transformation Technological transformation Personnel transformation 15 /15