Yonex Co., Ltd. · TSE:7906
Yonex — Q1 FY3/21 Earnings Presentation
21 slides from Yonex's earnings presentation, Aug 12, 2020
Slide 1: Financial Results 1st Quarter of Fiscal Year Ending March 31, 2021
Financial Results 1st Quarter of Fiscal Year Ending March 31, 2021 YONEX CO., LTD. (Tokyo Stock Exchange Code: 7906) August 12, 2020
Slide 2: 1Q Key Performance Highlights
1Q Key Performance Highlights □Net Sales Declined by 44.2% Y/Y to JPY 8.1bn ・All people’s sports activities stopped due to COVID-19 - Japan Segment (Domestic, Export and Intermediary) declined significantly, and Asia segment declined - COVID-19 had little impact on the 1Q results in North America an
Slide 3: Impact of COVID-19 upon Net Sales by Reported Segment
Impact of COVID-19 upon Net Sales by Reported Segment 1Q for Consolidated Accounts Segment Country/Region Jan Feb Mar Apr May Jun Japan Japan Export & Intermediary China Asia Taiwan North USA America Canada Germany Europe UK Earnings Impact High Middle Low Net Sales Y/Y ～50％ 50～90％ 90％～ (Local curre
Slide 4: Consolidated Financial Results
Consolidated Financial Results FY3/20 FY3/21 (Million yen) Y/Y 1Q 1Q Net Sales 14,690 8,199 -6,491 -44.2％ Gross Profit 6,104 2,667 -3,437 -56.3％ (Gross Profit Margin) （41.6％） （32.5％） （-9.1%pt） SGA 5,951 4,069 -1,882 -31.6％ Operating Profit 152 -1,402 -1,555 ― (Operating Profit Margin) （1.0％） （-17.1％
Slide 5: Consolidated Balance Sheets
Consolidated Balance Sheets (Million yen) March 31, 2020 June 30, 2020 Y/Y Net Cash Asset Current Assets 33,022 31,493 -1,529 5,938 million yen (June 30,2020) Cash and Deposits 10,977 9,525 -1,451 Notes and Accounts 11,315 8,522 -2,793 Receivable-Trade Reduction in sales caused by influence of Inven
Slide 6: Operating Profit Changes
Operating Profit Changes Gross Profit Declined Significantly → due to lower sales and production adjustments at domestic factories (Million yen) 152 Gross Profit SGA -1,882（-31.6%） Advertising R&D -3,437 Expenses Others （-56.3%） Expenses -1,402 -76 -248 (-24.5%) (-16.1%) -1,325 Personnel (-54.4%) Ex
Slide 7: Reported Segments Information
Reported Segments Information (Million yen) FY3/20 1Q FY3/21 1Q Y/Y Net sales 9,518 3,353 -64.8% Japan Sporting Goods Division Operating profit -7 -1,514 ― North Net sales 590 679 +15.2% America Operating profit -17 46 ― Net sales 630 639 +1.5% Europe Operating profit -17 -8 ― Net sales 3,769 3,428
Slide 8: Net Sales Change and Forex Impact (Reported Segments)
Net Sales Change and Forex Impact (Reported Segments) Forex Rate* USD EUR GBP RMB TWD FY3/20 1Q 110.19 125.14 143.67 16.32 3.57 (Million yen) Local Currency Basis Forex Impact FY3/21 1Q 108.92 120.10 139.59 15.59 3.61 *FY end of overseas subsidiaries is December 14,690 Sporting Goods Division Sales
Slide 9: Net Sales and Operating Profit of Sporting Goods Division: Japan
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan Net Sales (-64.8% Y/Y) ・Domestic Sales (Million yen) - Mainstay badminton, tennis and apparel sales largely decreased ▻Mar: All schools were temporarily closed and school club activities 9,246 9,518 were stopped ▻Apr
Slide 10: Net Sales and Operating Profit of Sporting Goods Division: North America
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) North America Forex Rate FY3/19 1Q FY3/20 1Q FY3/21 1Q (Million yen) USD 108.29 110.19 108.92 ※Jan-Mar Net Sales (+15.2% Y/Y) ・Badminton and tennis sales increased - Strong sales of all new racquets ・Retail stores had been
Slide 11: Net Sales and Operating Profit of Sporting Goods Division: Europe
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Europe Forex Rate FY3/19 FY3/20 FY3/21 1Q 1Q 1Q (Million yen) EUR 133.22 125.14 120.10 GBP 150.88 143.67 139.59 ※Jan-Mar Net Sales (+1.5% Y/Y) ・Badminton sales increased - Due mainly to strong demand for racquets 649 630 6
Slide 12: Net Sales and Operating Profit of Sporting Goods Division: Asia
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Asia Forex FY3/19 FY3/20 FY3/21 Net Sales (-9.1% Y/Y) Rate 1Q 1Q 1Q (Million yen) RMB 17.04 16.32 15.59 TWD 3.69 3.57 3.61 ・China ※Jan-Mar - Sales decreased, mainly badminton racquets ▻January: Sales growth, mainly badmint
Slide 13: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories FY3/21 Sales (Million yen) Japan Y/Y Overseas Y/Y Total Y/Y Composition Badminton 666 -1,952 -74.6% 3,791 -1,698 -30.9% 4,457 -3,650 -45.0% 54.3% （Overseas sales composition: Y/Y) (85.1%: +17.4pt) Tennis 460 -892 -66.0% 643 +136 +26.9% 1,104 -756 -40.6% 13
Slide 14: FY3/21 Earnings, Dividend Forecasts Assumptions
FY3/21 Earnings, Dividend Forecasts Assumptions Although near term earnings are recovering, we assume that the COVID-19 pandemic will continue to negatively influence our business, while its influence is likely to gradually weaken, because of the difficulty in predicting its convergence. 【Earnings F
Slide 15: Earnings and Dividend Forecasts for FY3/21
Earnings and Dividend Forecasts for FY3/21 Earnings Forecasts FY3/20 1H FY3/20 FY3/21 1H FY3/21 Y/Y Y/Y (Million yen) (Results) (Results) (Forecasts) (Forecasts) Net Sales 31,820 61,967 21,000 -34.0％ 50,000 -19.3％ Operating Profit 1,711 2,421 -900 ― -900 ― (Operating Profit Margin) （5.4%） （3.9%） （-4
Slide 16: Influence of COVID-19 at Current Time (Reported Segments)
Influence of COVID-19 at Current Time (Reported Segments) Japan Domestic ・About 90% of school sports clubs have restarted activities* ・Executed small tournaments locally (around 200 tournaments*) while observing proper COVID-19 infection prevention measures Export & ・Retail stores and sports facilit
Slide 17: Our Initiatives Relating to COVID-19
Our Initiatives Relating to COVID-19 ■Safety of Employees and Local Communities, and Prevention of COVID-19 Spread 【Yonex Global Facilities】 ・Recommend “work from home” and implement staggered working hours ・Temporary closure of offices ・Cancellation of business trips 【Support for Medical Institutio
Slide 18: Appendix
ove’ YONEX Appendix
Slide 19: Net Sales (Reported Segments)
Net Sales (Reported Segments) (Million yen) FY3/17 1Q FY3/18 1Q FY3/19 1Q FY3/20 1Q FY3/21 1Q Japan 9,833 10,178 9,246 9,518 3,353 North America 469 514 553 590 679 Europe 639 638 649 630 639 Asia 4,174 4,393 3,823 3,769 3,428 Sports Facilities 179 190 185 182 98 Total 15,297 15,915 14,457 14,690 8,
Slide 20: Regional Sales by Destination
Regional Sales by Destination (Million yen) FY3/17 1Q FY3/18 1Q FY3/19 1Q FY3/20 1Q FY3/21 1Q Japan 7,777 7,855 7,303 7,363 2,352 Overseas 7,519 8,060 7,154 7,327 5,846 North America 469 514 553 590 679 Europe 1,047 1,082 1,060 993 1,024 Asia 5,883 6,317 5,402 5,651 4,073 Others 119 145 138 92 69 To
Slide 21: 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 these materials were prepared. Investors are cautioned that various unforeseen factors could cause actual results t