Roland Corporation · TSE:7944
Roland — Q1 2023 Earnings Presentation
22 slides from Roland's earnings presentation, May 11, 2023
Slide 1: Financial Results Highlights FY12/2023 Q1
Financial Results Highlights FY12/2023 Q1 May 11, 2023 Roland Corporation TSE Prime : 7944 『GP-6』 Digital Piano
Slide 2: Executive Summary
Executive Summary ⚫ There is an impact from the dealer inventory adjustment, but it is already factored-in to our budget. ⇒ Q1 Results were in line with our expectation ⚫ New products launches generally executed as planned ⚫ Uncertainty in the external environment remains, but full-year forecasts ar
Slide 3: FY12/2023 Q1 Results, Forecast, Supplemental Information
1 FY12/2023 Q1 Results 2 FY12/2023 Forecast 3 Supplemental Information
Slide 4: FY12/2023 Q1 Results
1 FY12/2023 Q1 Results 2 FY12/2023 Forecast 3 Supplemental Information
Slide 5: Highlights
FY12/2023 Q1 Financial Results Highlights Sales • Dealer inventory adjustment continues but overall sell-through is 22.8bn steady (YoY：+9.0%) • Effect of new consolidation of Drum Workshop（DW） Operating Profit • Volume down YoY due to dealer inventory adjustments, but within our expectations 2.0bn •
Slide 6: Consolidated Financial Results
FY12/2023 Q1 Financial Results Consolidated Financial Results ⚫ Operating Profit margin before goodwill amortization is 9.2% FY12/2022 Q11 FY12/2023 Q12 (JPY mn) Actual % of Sales Actual % of Sales YoY Sales 20,978 100.0% 22,861 100.0% +9.0% Gross Profit 8,808 42.0% 9,748 42.6% +10.7% SG＆A 6,240 29.
Slide 7: Consolidated Financial Results (Excluding the effect of new consolidation)
FY12/2023 Q1 Financial Results Consolidated Financial Results (Reference: Excluding the effect of new consolidation) ⚫ Gross Profit margin recovered steadily to 44.1% (price optimizations, decrease in freight costs, product mix) FY12/2022 Q11 FY12/2023 Q12 (JPY mn) Actual % of Sales Actual % of Sale
Slide 8: Sales by Category
FY12/2023 Q1 Financial Results Sales by Category FY12/2022 FY12/2023 Q1 Q1 JPY mn YoY1 Actual % total Actual % total YoY w/o FX Situation E-pianos affected by the inventory adjustment. The softening of demand in Keyboards 6,553 31.2% 5,594 24.5% -14.6% -21.4% the mid to high-end and the escalation o
Slide 9: Sales by Region
FY12/2023 Q1 Financial Results Sales by Region FY12/2022 FY12/2023 Q1 Q1 JPY mn YoY1 Actual % total Actual % total YoY w/o FX Situation Although the mainstay digital piano struggled slightly, guitar-related products Japan 2,261 10.8% 2,554 11.2% +12.9% +11.8% performed very well due to back-order sh
Slide 10: Consolidated Operating Profit
FY12/2023 Q1 Financial Results Consolidated Operating Profit Changes (vs Previous year) Factors (JPY bn) • Sales Volume Sales Volume change Selling Price / Cost ratio change ✓ Decrease in Sell-in due to dealer inventory SG&A change adjustments FX impact (The impact is expected to be largest in Q1) D
Slide 11: Topics: Major new products and services announced in the first quarter
FY12/2023 Q1 Financial Results Topics: Major new products and services announced in the first quarter Keyboards Creation-related Products & Services Digital Grand Piano Roland Cloud Manager ⚫ Four "GP Series" digital grand piano models that look great in ⚫ Version upgraded free luxurious spaces such
Slide 12: Topics: Major new products and services announced in the first quarter
FY12/2023 Q1 Financial Results Topics: Major new products and services announced in the first quarter Percussion & Wind Instruments Guitar-related Products Video & Pro Audio Headphones for Electronic Drums BOSS Guitar Amp Electronic Drums ⚫ Two entry-level "V-Drums" models ⚫ Three models in “KATANA”
Slide 13: FY12/2023 Forecast
1 FY12/2023 Q1 Results 2 FY12/2023 Forecast 3 Supplemental Information
Slide 14: Q1 results in line with expectations; no change in FY earnings outlook
FY12/2023 Forecast Q1 results were generally in line with our expectations. No change in FY earnings outlook. ＜Assumptions for Earnings Forecasts＞ 1st Half 2nd Half ⚫ New Lifestyles ⚫ New Lifestyles Environment ⚫ Uncertainty in global ⚫ Europe and China to be Opportunity economy recovery phase ⚫ Yea
Slide 15: Consolidated Financial Forecast (Full-Year)
FY12/2023 Full-Year Forecast Consolidated Financial Forecast (Disclosed on 2/13/2023) ⚫ Including effect of new consolidation of DW (YoY 9 months add on: Q1-Q3) FY12/20221 FY12/20232 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 95,840 100.0% 105,600 100.0% +10.2% Gross Profit 39,356 41.1
Slide 16: Supplemental Information
1 FY12/2023 Q1 Results 2 FY12/2023 Forecast 3 Supplemental Information 16
Slide 17: First Half Forecast
Supplemental Information First Half Forecast ⚫ Including effect of new consolidation of DW (6 months: Q1-Q2) FY12/2022 First Half1 FY12/2023 First Half2 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 43,004 100.0% 48,800 100.0% +13.5% Gross Profit 17,551 40.8% 21,200 43.4% +20.8% SG＆A 12,8
Slide 18: Second Half Forecast
Supplemental Information Second Half Forecast ⚫ Including effect of new consolidation of DW (3months: Q3) FY12/2022 Second Half1 FY12/2023 Second Half2 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 52,836 100.0% 56,800 100.0% +7.5% Gross Profit 21,805 41.3% 25,300 44.5% +16.0% SG＆A 15,731
Slide 19: Full-Year Forecast: Sales by Category
FY12/2023 Full-Year Forecast Sales by Category FY12/2022 FY12/2023 JPY mn Actual % of Sales Forecast % of Sales YoY YoY1 Keyboards 29,869 31.2% 31,200 29.5% +4.5% +6.0% Percussion & Wind Instruments 23,046 24.1% 30,800 29.2% +33.6% +5.4% Guitar-related Products 23,540 24.6% 23,900 22.6% +1.5% +2.5%
Slide 20: Full-Year Forecast: Sales by Region
FY12/2023 Full-Year Forecast Sales by Region FY12/2022 FY12/2023 JPY mn Actual % of Sales Forecast % of Sales YoY YoY1 Japan 9,736 10.2% 10,100 9.6% +3.7% +2.4% North America 34,904 36.4% 40,400 38.3% +15.7% +4.0% Europe 26,439 27.6% 28,100 26.6% +6.3% +3.0% China 9,641 10.1% 10,500 9.9% +8.9% +10.7
Slide 21: Key Consolidated Financials (PL, B/S)
Supplemental information Key Consolidated Financials（PL, B/S） (JPY mn) FY2022 FY2023 (JPY mn) As of Dec. As of Mar. Q1 Q1 31, 2022 31, 2023 Net sales 20,978 22,861 Cash and deposits 10,506 9,962 Cost of sales 12,169 13,112 Notes and accounts receivable - trade 12,905 11,038 Gross profit 8,808 9,748
Slide 22: Forward-looking statements notice
This material contains information that constitutes “forward-looking statements” of Roland Corporation. Statements other than those related to past or present facts are all statements that constitute forward-looking statements. Such forward-looking statements are based on our assumptions and decisio