Slide 1: Financial Results Highlights FY12/2023 Q2
Financial Results Highlights FY12/2023 Q2 Aug 9, 2023 Roland Corporation 『Gigcaster 8』 Audio streaming Mixer
Slide 2: Executive Summary
Executive Summary ⚫ Achieved 1H Operating Profit Forecast ⚫ 1H Sales (Sell-in) fell short due to the prolonged dealer inventory adjustment ⚫ Sell-through is generally steady; Dealer inventories are steadily declining ⚫ No change to the Full-year Forecast (increase in sales and profit), considering t
Slide 3: Agenda
1 FY12/2023 Q2 Results 2 FY12/2023 Forecast (Full Year) 3 Supplemental Information
Slide 4: FY12/2023 Q2 Results
1 FY12/2023 Q2 Results 2 FY12/2023 Forecast (Full Year) 3 Supplemental Information
Slide 5: Highlights - First Half Results
FY12/2023 Q2 Results Highlights - First Half Results Sales • Sell-in growth was slow as Dealer inventory adjustment continued 46.0bn • Overall sell-through was steady （+7.2% vs Last year） • Effect of new consolidation of Drum Workshop (DW) （-5.5% vs Guidance） Operating Profit • Volume decreased YoY
Slide 6: Consolidated Financial Results
FY12/2023 Q2 Results Consolidated Financial Results ⚫ Operating Profit margin before goodwill amortization is 9.6% FY12/2022 First Half1 FY12/2023 First Half2 (JPY mn) Actual % of Sales Actual % of Sales YoY Sales 43,004 100.0% 46,096 100.0% +7.2% Gross Profit 17,551 40.8% 19,772 42.9% +12.7% Increa
Slide 7: Consolidated Financial Results (Excluding effect of DW consolidation)
FY12/2023 Q2 Results Consolidated Financial Results (Reference: Excluding the effect of new consolidation of DW) ⚫ Gross profit margin was 44.3%. Earning power recovered significantly after price optimizations ⚫ Operating Profit increased excluding the effect of the new consolidation of DW FY12/2022
Slide 8: Demand and Dealer Inventory Adjustment (as of end of June)
FY12/2023 Q2 Results Demand and Dealer Inventory Adjustment (as of end of June) ⚫ Demand for our products in major countries is generally steady ⚫ Dealer inventories are down in all regions, but inventories remain high especially in North America and China ⚫ Dealer inventories are overstocked especi
Slide 9: Sales by Category
FY12/2023 Q2 Results Sales by Category ⚫ Sales increased YoY except for Keyboards due to favorable FX rates ⚫ The minus factors were inventory adjustments of electronic pianos and a decreased demand for the low-end products ⚫ Although Percussion & Wind continued to be stagnant in China, total sales
Slide 10: Sales by Region
FY12/2023 Q2 Results Sales by Region ⚫ Sales increased YoY, excluding China, due partly to favorable FX rates ⚫ The minus factor was the impact of inventory adjustment at dealers in North America ⚫ In China, online sales in June were strong, showing signs of gradual recovery. The downsizing of drum
Slide 11: Consolidated Operating Profit
FY12/2023 Q2 Results Consolidated Operating Profit Changes (vs Previous year) Factors (JPY bn) Sales Volume change • Sales Volume Selling Price / Cost ratio change ✓ Decrease in Sell-in due to dealer inventory SG&A change adjustments FX impact • Selling Price / Cost ratio DW Consolidation ✓ Raw mate
Slide 12: MTP Progress Topics: Roland Retail Strategy
FY12/2023 Q2 Results MTP Progress Topics: Roland Retail Strategy Roland Store Tokyo to Open ⚫The 2nd direct store, following the London store, will open in Tokyo (Harajuku) (scheduled for October 1). Address: 4-25-37 Jingumae, Shibuya-ku, Tokyo Area: 50 m2 (Store area) B1F： Guitar-related Products,
Slide 13: MTP Progress Topics: Strengthen Foundation
FY12/2023 Q2 Results MTP Progress Topics: Strengthen Foundation Tokyo office relocation (Akihabara to Odaiba) Purpose 12F Daiba Garden City Building, 2-3-5 Daiba, ⚫ Enhanced employee engagement Minato-ku, Tokyo ⚫ Cost savings ⚫ Plans to use the office as the Tokyo base for non-sales divisions 13
Slide 14: MTP Progress Topics: New Products announced in the second quarter
FY12/2023 Q2 Results MTP Progress Topics: New Products announced in the second quarter Keyboards Video & Pro Audio Portable Keyboards AV Mixer ⚫ Stylish and affordable Portable Keyboard with authentic and ⚫ Compact AV Mixer ideal for business conferences, webinars, versatile tones and a variety of f
Slide 15: MTP Progress Topics: New Products announced in the second quarter
FY12/2023 Q2 Results MTP Progress Topics: New Products announced in the second quarter Guitar-related Products Creation-related Products & Services BOSS Guitar Effector Synthesizer ⚫ Delay Machine combining the latest ⚫ Two Digital Delay Pedals that technology with analog technology perfectly reprod
Slide 16: FY12/2023 Forecast (Full Year)
1 FY12/2023 Q2 Results 2 FY12/2023 Forecast (Full Year) 3 Supplemental Information
Slide 17: Full-year Forecast
FY12/2023 Forecast (Full Year) Full-year Forecast The initial plan (YoY Increases) maintained for both Sales and Operating Sales Operating Profit JPY 105.6bn JPY12.4bn YoY +10.2% YoY +15.3% 17
Slide 18: Consolidated Sales Forecast
FY12/2023 Forecast (Full Year) Consolidated Sales Forecast 『Dealer inventory adjustments end within this year』 × 『Continued steady demand』 × 『Weaker JPY』 First half situation Second half outlook Sell-in Sell-thru Sell-in Sell-thru Roland Stores Users Roland Stores Users ⚫ Sell-in below expectations
Slide 19: Steadily execute the mid-term plan in the second half and beyond
FY12/2023 Forecast (Full Year) Consolidated Sales Forecast Steadily execute the mid-term plan in the second half of the year and beyond • Continued introduction of new Creating Customer products Motivation by • Game Changer products with DW Demand New Products • Leverage the BOSS 50th anniversary •
Slide 20: Consolidated Operating Profit Forecast
FY12/2023 Forecast (Full Year) Consolidated Operating Profit Forecast The negative impact compared to the plan will be offset by the positive impact Change from initial forecast (by factor) Negative Positive • Decrease in sales volume and value1 • Decrease in SG&A expenses ✓ Market inventory adjustm
Slide 21: Shareholder Return
FY12/2023 Forecast (Full Year) Shareholder Return ⚫ Decided the Q2 interim dividend as planned (YoY increase) at the beginning of the year, as we achieved the 1H profit guidance ⚫ No change in the year-end dividend forecast Dividend Per Share (Forecast) Dividends and Dividend Payout Ratio (JPY) Tota
Slide 22: Supplemental Information
1 FY12/2023 Q2 Results 2 FY12/2023 Forecast (Full Year) 3 Supplemental Information 22
Slide 23: Key Consolidated Financials (PL, B/S)
Supplemental information Key Consolidated Financials（PL,B/S） FY2022 FY2023 As of Dec. As of Jun. (JPY mn) (JPY mn) Q2 Q2 31, 2022 30, 2023 Net sales 43,004 46,096 Cash and deposits 10,506 9,993 Cost of sales 25,452 26,323 Notes and accounts receivable - trade 12,905 11,412 Gross profit 17,551 19,772
Slide 24: Forward-looking statements disclaimer
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