Roland Corporation · TSE:7944
Roland — Q3 2021 Earnings Presentation
23 slides from Roland's earnings presentation, Nov 5, 2021
Slide 1: Financial Results Highlights FY12/2021 3Q
Financial Results Highlights FY12/2021 3Q Nov 5, 2021 Roland Corporation WAZA-AIR BASS, a wireless headphone amp that uses own 3D acoustic technology Main unit (center) and transmitter (right)
Slide 2: Executive Summary
Executive Summary ⚫ FY12/2021 Full Year Forecast (revised up in May) for a Significant Growth in Sales (YoY +23%) Remains Unchanged ⚫ Continued Strong Demand for Electronic Musical Instruments as new lifestyles becoming settled habits ⚫ The Malaysian factory has Recovered beyond Our Expectations ⚫ P
Slide 3: FY12/2021 3Q Results FY12/2021 Forecast (Full Year) Supplemental Information
1 FY12/2021 3Q Results 2 FY12/2021 Forecast (Full Year) 3 Supplemental Information 3
Slide 4: FY12/2021 3Q Results
1 FY12/2021 3Q Results 2 FY12/2021 Forecast (Full Year) 3 Supplemental Information 4
Slide 5: 3Q Financial Results Highlights
FY12/2021 3Q Financial Results Highlights Sales • Strong in all regions and categories due to robust demand 60.6bn • Order Backlog increased by Y3bn from 2Q due to supply constraints (YoY ＋ 31.0%) • Substantial YoY increase due to aggressive production and sales in 1H Operating Profit • Substantial
Slide 6: Consolidated Financial Results
FY12/2021 3Q Financial Results Consolidated Financial Results FY2020/121 3Q FY12/20212 3Q (JPY mn) Actual % of Sales Actual % of Sales YoY Sales 46,321 100.0% 60,668 100.0% +31.0% Gross Profit 22,432 48.4% 28,130 46.4% +25.4% SG＆A 16,996 36.7% 18,465 30.4% +8.6% Operating Profit 5,435 11.7% 9,664 15
Slide 7: Sales by Category
FY12/2021 3Q Financial Results Sales by Category FY12/2020 FY12/2021 3Q 3Q JPY mn YoY1 Actual % total Actual % total YoY w/o FX Situation Keyboards 12,720 27.5% 18,584 30.6% +46.1% +40.0% Portable digital pianos continued to perform well Percussion & Wind V-Drums Acoustic Design Series and Electroni
Slide 8: Sales by Region
FY12/2021 3Q Financial Results Sales by Region FY12/2020 FY12/2021 3Q 3Q JPY mn YoY1 Actual % total Actual % total YoY w/o FX Situation Electronic pianos and video products were strong. Vaccination rates Japan 6,818 14.7% 7,399 12.2% +8.5% +8.5% increased and store customer traffic improved Electron
Slide 9: Consolidated Operating Profit
FY12/2021 3Q Financial Results Consolidated Operating Profit Changes (vs Previous year) Factors (JPY bn) Sales Increase • Sales Increase Margin Change ✓ Increase in gross profit due to higher sales SG&A Change FX impact • Margin Change +5.8 ✓ Raw materials and container costs soared +1.2 ✓ Change in
Slide 10: FY12/2021 Forecast (Full Year)
1 FY12/2021 3Q Results 2 FY12/2021 Forecast (Full Year) 3 Supplemental Information 10
Slide 11: Full-year sales and profits expected to continue to increase compared to pre-COVID levels
FY12/2021 Full Year Forecast Full-year sales and profits are expected to continue to increase compared to pre-COVID levels ⚫ Demand for electronic musical instruments remain strong as new lifestyles penetrate ⚫ Expect to achieve the revised full-year forecast by properly managing the serious supply
Slide 12: Strong demand continues despite rising costs and prolonged supply challenges
FY12/2021 Full Year Forecast Strong demand continues despite rising costs and prolonged supply challenges ＜Vaccination rate and our new orders1＞ Strong demand continues even US/Europe/Japan after vaccination due to new (%) Vaccination rate No impact of vaccine on demand so far lifestyles becoming se
Slide 13: Expect to achieve the full-year forecast by accelerating mitigation measures
FY12/2021 Full Year Forecast Expect to achieve the full-year forecast by accelerating mitigation measures Q3Q4 Initiatives Progress Situation and Outlook •Malaysia factory is catching up at 100%+ production Production •China factory started mass production of keyboards in Catch-up November, graduall
Slide 14: Malaysia's situation stabilized and factory operations recovered sharply
FY12/2021 Full Year Forecast Malaysia's situation stabilized and our factory operations recovered sharply Our daily production amount (May-October) Malaysia Situation1 Before Lockdown Operation restrictions Resume full operations （Vaccination rate） ⚫ Almost all workers fully vaccinated （Infection nu
Slide 15: Consolidated Financial Forecast
FY12/2021 Full Year Forecast Consolidated Financial Forecast ⚫ Net Income Forecast revised up from JPY7.7bn to 8.3bn due to lower tax expenses in 3Q results FY12/20201 FY12/20212 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 64,044 100.0% 78,800 100.0% +23.0% Gross Profit 30,379 47.4% 36,
Slide 16: Consolidated Operating Profit
FY12/2021 Full Year Forecast Consolidated Operating Profit Changes (vs Previous year) Factors (JPY bn) Sales Increase • Sales Increase Margin Change ✓ Increase in gross profit due to higher sales SG&A Change • Continue to absorb costs by optimizing prices FX impact • Full price optimization effect f
Slide 17: Supplemental Information
1 FY12/2021 3Q Results 2 FY12/2021 Forecast (Full Year) 3 Supplemental Information 17
Slide 18: Despite supply chain turmoil, demand remains strong compared to pre-COVID levels
Despite supply chain turmoil, demand remains strong compared to pre-COVID levels Stay Home Demand New Lifestyle Demand Difficulty in procurement and shipment Cost increases Pre-COVID19 Malaysia Plant Restriction ●Fire at major supplier Malaysia Plant Restriction ●Price Increase 1 ●Price Increase 2 2
Slide 19: Update on Roland Cloud
Business update Update on Roland Cloud ⚫ Providing total solutions for enjoying music not only to existing musicians but also to Potential Customers who want to start playing music ⚫ Aiming to become a Solution Provider that removes the various “Barriers” to enjoying music Creation ･音源コンテンツ ･バーチャル楽器
Slide 20: Sales by Category (Full Year Forecast)
FY12/2021 Full Year Forecast Sales by Category FY12/2020 FY12/2021 JPY mn YoY1 Actual % total Forecast % total YoY w/o FX Keyboards 17,842 27.9% 24,500 31.1% +37.3% +33.5% Percussion & Wind Instruments 14,620 22.8% 19,100 24.2% +30.6% +27.3% Guitar-related Products 16,712 26.1% 18,700 23.7% +11.9% +
Slide 21: Sales by Region (Full Year Forecast)
FY12/2021 Full Year Forecast Sales by Region FY12/2020 FY12/2021 JPY mn YoY1 Actual % total Forecast % total YoY w/o FX Japan 9,066 14.2% 9,500 12.1% +4.8% +4.8% North America 19,963 31.2% 26,200 33.2% +31.2% +30.5% Europe 21,027 32.8% 24,900 31.6% +18.4% +13.3% China 6,304 9.8% 7,900 10.0% +25.3% +
Slide 22: Key Consolidated Financials (PL, B/S)
Key Consolidated Financials（PL, B/S） (JPY mn) FY12/2020 FY12/2021 (JPY mn) As of Dec. As of Sep. 3Q 3Q 31, 2020 30, 2021 Net sales 46,321 60,668 Cash and deposits 10,832 8,787 Cost of sales 23,888 32,538 Notes and accounts receivable - trade 5,930 8,331 Gross profit 22,432 28,130 Inventories 18,075
Slide 23: Forward-looking statements
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