Yonex Co., Ltd. · TSE:7906
Yonex — H1 FY3/2018 Earnings Presentation
22 slides from Yonex's earnings presentation, Nov 7, 2017
Slide 1: Financial Results: 1st Half of Fiscal Year Ending March 31, 2018
Financial Results 1st Half of Fiscal Year Ending March 31, 2018 YONEX CO,. LTD. (TSE: 7906) November 7, 2017
Slide 2: H1 Key Performance Highlights
H1 Key Performance Highlights Net Sales Increased by 2.9% YY to JPY 32.2bn • Growth in student badminton players in new school year within Japan due to strong performance of Japanese badminton players in comprehensive global sporting event. • Sales fell short of estimates due to slower than expect
Slide 3: Consolidated Financial Results
Consolidated Financial Results Net Sales Grew by 2.9%, but Profit Fell due to Gross Profit Decrease and Increase in SGA FY3/18 H1 Compared FY3/17 FY3/18 (Million yen) YY Change Original with H1 H1 forecasts Forecasts Net Sales 31,330 32,232 902 +2.9% 32,800 -1.7% Gross profit 14,050 13,483 -567 -4.0
Slide 4: Consolidated Net Sales (Japan & Overseas)
Consolidated Net Sales (Japan & Overseas) Overseas Sales Ratio Decreased to 49.5% (-0.4% points YY) Japan Overseas （Million yen） 31,330 32,232 25,218 23,788 21,830 15,621 15,960 9,401 7,907 9,433 13,922 14,354 15,817 15,708 16,272 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 H1 H1 H1 H1 H1 ※Net Sales in “Over
Slide 5: Consolidated Operating Profit Increase/Decrease
Consolidated Operating Profit Increase/Decrease Large Impact of Gross Profit Decline, Global Advertising Expenses Grew, but Regionally Fell (Million yen) Gross Profit (negative impact) SGA (positive impact) 2,697 SGA (negative impact) △567 +35 +157 △70 Research and +136 1,871 development expenses Ot
Slide 6: Segment Sales Information
Segment Sales Information Domestic Growth Steady but Asian Growth Fell Behind Forecasts （Million yen） FY3/17 FY3/18 YY Change H1 H1 Japan 20,054 20,632 +2.9% North America 897 971 +8.3% Sporting Goods Division Europe 1,186 1,200 +1.2% Asia 8,854 9,087 +2.6% Total 30,991 31,891 +2.9% Sports Facilitie
Slide 7: H1 Net Sales Increase / Decrease (Reported Segments)
H1 Net Sales Increase / Decrease （Reported Segments） Local Currency Based Increase; Asia +5.7%, Europe +8.5%, North America +7.7% (Million yen) Local Currency base Forex impact (positive) △ 275 +3 32,232 Forex impact (negative) +508 +4 +101 △ 86 +69 +578 31,330 FY3/17 Japan North America Europe Asia
Slide 8: Net Sales (Reported Segments)
Net Sales (Reported Segments) Japan(Export・Intermediary Trade) North America (subsidiary) Europe(subsidiary) Asia (subsidiary) sports facilities （Million yen） 32,232 31,330 338 341 25,128 9,087 23,788 328 8,854 21,830 316 2,593 329 1,220 942 1,186 1,200 766 752 1,209 999 897 971 1,013 642 19,078 20,
Slide 9: Net Sales and Operating Profit of Sporting Goods Division (Reported Segments)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan North Forex rate FY 3/16 FY 3/17 FY 3/18 20,087 20,054 20,632 America (Jan-Jun) USD H1 120.22 H1 111.80 H1 112.37 1,372 （Million yen） 1,109 851 999 971 897 56 28 7 FY3/16 FY3/17 FY3/18 FY3/16 FY3/17 FY3/18 FY3/16 FY3
Slide 10: Net Sales and Operating Profit of Sporting Goods Division (Reported Segments)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Forex rate FY 3/16 FY 3/17 FY 3/18 Forex rate FY 3/16 FY 3/17 FY 3/18 Europe (Jan-Jun) H1 H1 H1 Asia (Jan-Jun) H1 H1 H1 EUR 134.16 124.61 121.62 RMB 19.31 17.06 16.38 GBP 183.28 160.19 141.39 TWD 3.84 3.39 3.66 8,854 9,087
Slide 11: Net Sales (Unreported Regional Data)
Net Sales (Unreported Regional Data) Low Single Digit Growth Rate in Every Region Except North America Japan North America Europe Asia Others （Million yen） 32,232 31,330 282 294 25,218 23,788 243 12,458 12,647 21,830 164 68 6,088 6,454 5,499 2,070 2,047 1,983 2,061 999 897 971 1,697 642 752 14,354 1
Slide 12: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Badminton in Japanese Market and “Others” Gained Steady Growth (Million yen) Sales Net Sales YY Change Composition Badminton 17,871 55.4% +2.4% Tennis 4,142 12.8% +0.8% Sporting Goods Division Golf 501 1.6% +3.0% Others 9,374 29.1% +4.8% Total 31,891 98.9%
Slide 13: Composition of Consolidated Net Sales (By Sports Categories)
Composition of Consolidated Net Sales (By Sports Categories) Badminton Accounts for a Substantial Portion, Followed by Others (including apparel) and Tennis Badminton Tennis Golf Others Sports Facilities 1.1% （Million yen） 29.1% 55.4% 1.6% 12.8% 12
Slide 14: Badminton Sales (Japan & Overseas)
Badminton Sales (Japan & Overseas) Steady Growth in Japan due to New Product Launch, While Overseas Sales Growth Slowed Japan Overseas （Million yen） 17,871 YY Change 17,451 + 420 million yen （+2.4％） 12,083 12,327 Overseas + 69 million yen 10,682 12,505 12,435 （+0.6%） Japan + 350 million yen 7,677 7,
Slide 15: Tennis Sales (Japan & Overseas)
Tennis Sales (Japan & Overseas) Significant Growth Overseas to Exceed 1/4 of Total Sales Due to Strong Performances of New Generation of Team Yonex Players Japan Overseas （Million yen） 4,109 4,142 YY Change 3,686 + 33 million yen 3,330 870 1,064 （+0.8%） 2,951 620 540 Overseas + 193 million yen 379 （
Slide 16: Golf Sales (Japan & Overseas)
Golf Sales (Japan & Overseas) Sales Overseas Recovers, Japan Declines Japan Overseas （Million yen） 668 YY Change 625 + 14 million yen 557 （+3.0%） 267 487 501 261 225 Overseas + 35 million yen 140 176 （+25.2%） Japan - 20 million yen （-6.0%） 400 364 346 331 325 Overseas Sales Composition 35.2 % FY3/14
Slide 17: Other Sales (Japan & Overseas)
Other Sales (Japan & Overseas) Slowdown in Overseas (Mainly Apparel in China), Steady Growth in Domestic Apparel Japan Overseas （Million yen） 9,374 YY Change 8,943 + 431 million yen 8,250 7,500 2,214 （+4.8%） 7,198 1,095 2,174 689 990 Overseas + 39 million yen （+1.8%） Japan + 391 million yen （+5.8%）
Slide 18: Sports Facilities Division Sales (Japan)
Sports Facilities Division Sales (Japan) Sales Remained Flat Due to Bad Weather, Despite Online Reservation Japan （Million yen） YY Change 338 341 329 328 + 3 million yen 316 （+0.9%） FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 H1 H1 H1 H1 H1 Sports facilities division: Golf course, driving range, tennis clubs
Slide 19: Consolidated Earnings Forecasts of Fiscal Year March 2018
Consolidated Earnings Forecasts of Fiscal Year March 2018 FY3/18 FY3/17 FY3/18 (Million yen) YY Change Revised forecasts YY Change Results Original forecasts (2017/10/26) Net sales 61,042 65,000 +6.5% 63,500 +4.0% Operating profit 4,147 4,400 +6.1% 3,100 -25.3% Operating profit margin 6.8% 6.8% － 4.
Slide 20: TOPICS① Badminton: ASTROX77
TOPICS① Badminton: ASTROX77 ASTORX77 uses a world’s-first, new dimension graphite material, Namd, that enables the shaft to flex and store more energy, delivering explosive force on impact with the shuttle and allowing for a steeper angle of attack. ※ Namd has been developed in combination with Nitt
Slide 21: TOPICS② Tennis: New EZONE
TOPICS② Tennis: New EZONE The enhanced ISOMETRIC sweet spot reaches deeper into the corners of the racquet producing a racket with the largest sweet spot in the history of the EZONE series. The result is a truly powerful racquet across a larger area of the string bed. Superior upper frame performanc
Slide 22: Forward-looking statements and investor relations contact
Statements made in these materials with respect to plans, strategies and future performances are forward‐looking statements based on information and assumptions available to Yonex when the materials were prepared. Investors are cautioned that various unforeseen factors could cause actual results to