Yonex Co., Ltd. · TSE:7906
Yonex — H1 FY3/23 Earnings Presentation
22 slides from Yonex's earnings presentation, Nov 9, 2022
Slide 1: Financial Results 1st Half of Fiscal Year Ending March 31, 2023
Financial Results 1st Half of Fiscal Year Ending March 31, 2023 YONEX CO., LTD. (Tokyo Stock Exchange Code: 7906) November 9, 2022
Slide 2: 1H Key Performance Highlights
1H Key Performance Highlights □Net Sales Increased by 44.0% Y/Y to JPY50.0bn ・ Demand continued to recover in all regions, resulting in record-high sales for the 1H. - Japan Segment: Domestic sales and sales to overseas distributors increased. - Overseas subsidiaries: In addition to sales increases
Slide 3: Consolidated Income Statement
Consolidated Income Statement FY3/22 FY3/23 FY3/23 1H (Million yen) Y/Y Forecasts 1H 1H （Announced on Aug 9） Net Sales 34,788 50,092 +15,304 +44.0％ 48,000 Gross Profit 15,815 22,624 +6,809 +43.1％ ー Gross Profit Margin 45.5％ 45.2％ ー -0.3%pt ー SGA 11,625 15,508 +3,883 +33.4％ ー Operating Profit 4,189 7
Slide 4: Consolidated Balance Sheets
Consolidated Balance Sheets (Million yen) End FY3/22 End FY3/22 1H Change Asset Current Assets 44,841 55,477 +10,636 Cash and Deposits 17,922 22,967 +5,044 Notes and Accounts 12,676 15,965 +3,289 Receivable-Trade Inventory 11,792 13,907 +2,115 Non-Current Assets 21,457 23,767 +2,309 Total assets 66,
Slide 5: Consolidated Cash Flow
Consolidated Cash Flow (Million yen) 22,451 -1,468 +1,869 Investing -888 activities Financial Others +5,399 activities Capital expenditures for 17,538 production increase, new core system, others Operating activities Repayment of loans, payment of dividends, others Increase of net income, others Sta
Slide 6: Operating Profit Changes
Operating Profit Changes +391 (Million yen) +2,034 Negative Impact Positive Impact +144 +6,809 +1,313 7,116 SGA +3,883 4,189 FY3/22 Gross Profit Personnel Advertising R&D Others FY3/23 Expenses Expenses Expenses 1H 1H 6
Slide 7: Reported Segment Information
Reported Segment Information (Million yen) FY3/22 1H FY3/23 1H Y/Y Net sales 18,836 24,291 +29.0% Sporting Goods Division Japan Operating profit 1,764 2,672 +51.5% Net sales 13,344 21,215 +59.0% Asia Operating profit 2,338 4,472 +91.3% North Net sales 1,451 2,568 +76.9% America Operating profit 172
Slide 8: Net Sales Change and Forex Impact (Reported Segments)
Net Sales Change and Forex Impact (Reported Segments) Forex RMB TWD USD EUR GBP (Million yen) Rate Local Currency Basis Forex Impact FY3/22 1H 16.64 3.83 107.69 129.82 149.60 FY3/23 1H 18.93 4.27 122.88 134.25 159.44 Y/Y +13.8% +11.5% +14.1% +3.4% +6.6% *FY end of overseas subsidiaries is December (
Slide 9: Net Sales and Operating Profit of Sporting Goods Division: Japan
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan (Million yen) Net Sales（+29.0% Y/Y） ・Domestic Sales 24,291 - Demand from badminton and soft tennis club activities recovered. ▻ In FY3/22 1H, COVID-19 led to restrictions of club activities 18,836 and delays in overs
Slide 10: Net Sales and Operating Profit of Sporting Goods Division: Asia
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Asia Forex FY3/21 FY3/22 FY3/23 （Million yen) Rate 1H 1H 1H RMB 15.38 16.64 18.93 Net Sales（+59.0％ Y/Y） TWD 3.60 3.83 4.27 *Jan-Jun ・China - Sales increase in 1Q had a significant impact. - Despite the Shanghai lockdown, i
Slide 11: Net Sales and Operating Profit of Sporting Goods Division: North America
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) North America (Million yen) Forex FY3/21 FY3/22 FY3/23 Rate 1H 1H 1H USD 108.27 107.69 122.88 *Jan-Jun Net Sales（+76.9% Y/Y） ・For tennis, demand remains solid and the sales of new racquets were strong. 2,568 ・Sales of badm
Slide 12: Net Sales and Operating Profit of Sporting Goods Division: Europe
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Europe (Million yen) Forex FY3/21 FY3/22 FY3/23 Rate 1H 1H 1H EUR 119.28 129.82 134.25 GBP 136.55 149.60 159.44 Net Sales（＋93.3% Y/Y） *Jan-Jun ・Sales of tennis equipment increased due mainly to racquets. ・Sales of badminto
Slide 13: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories FY3/23 1H Sales (Million yen) Japan Y/Y Overseas Y/Y Total Y/Y Composition Sporting Goods Division Badminton 5,420 +1,105 +25.6% 23,858 +8,871 +59.2% 29,279 +9,976 +51.7% 58.5% Overseas sales composition: Y/Y 81.5%: +3.8%pt Tennis 4,081 +659 +19.3% 4,829 +
Slide 14: Impact of Shanghai Lockdown
Impact of Shanghai Lockdown During lockdown (March 28 - May 31, 2022) After relax of lockdown April May June Shanghai Sports facilities and retail stores: closed Sales Other Shipments increased Sports facilities and retail stores: operated as usual areas on the back of: ・Replenishment of retail stor
Slide 15: Badminton: Demand Recovery in All Regions
Badminton: Demand Recovery in All Regions ・Recovered from the previous year, when restrictions continued due to Asia the spread of infection. (Except China) ・Market revitalized by athletes' successes in international competitions. Japan Club activities and tournaments are being conducted almost as u
Slide 16: Full-Year Forecast for the FY3/23
Full-Year Forecast for the FY3/23 Forecasts Maintained Forex FY3/22 FY3/23 ・We anticipate a worsening in the business environment from 3Q onwards. Rate Results Forecast - Rising raw material prices caused by the yen depreciation and concerns about RMB 17.02 20 global inflation, economic slowdown, an
Slide 17: Interim Dividend and Year-End Dividend Forecast for FY3/23
Interim Dividend and Year-End Dividend Forecast for FY3/23 ■Policy: A stable and appropriate level of dividends will be maintained. ■Interim dividend: The extra dividend of 1 yen is added to the ordinary dividend of 5 yen per share based on the profit level achieved during 1H. ■Year-end dividend (Fo
Slide 18: Sustainability Efforts (Environment)
Sustainability Efforts (Environment) Reduction of CO2 Development of Reviewing Packaging Materials Emissions Sustainable Wear <Scope 1 and 2＞ <Changing Materials＞ The Ratio of Sustainable Wear* We established reduction ・Use of biomass or paper materials targets and efforts to be instead of plastics
Slide 19: Reference Information
ove’ YONEX Reference Information
Slide 20: Net Sales (Reported Segments)
Net Sales (Reported Segments) (Million yen) FY3/19 1H FY3/20 1H FY3/21 1H FY3/22 1H FY3/23 1H Japan 19,697 20,550 12,043 18,836 24,291 Asia 8,247 8,659 8,005 13,344 21,215 North America 1,081 1,091 923 1,451 2,568 Europe 1,225 1,179 873 864 1,671 Sports Facilities 333 339 247 290 346 Total 30,584 31
Slide 21: Regional Sales by Destination
Regional Sales by Destination (Million yen) FY3/19 1H FY3/20 1H FY3/21 1H FY3/22 1H FY3/23 1H Japan 15,452 15,934 9,648 14,417 17,135 Overseas 15,132 15,886 12,444 20,370 32,956 Asia 11,705 12,647 9,778 16,860 25,343 North America 1,081 1,091 923 1,451 2,568 Europe 2,055 1,887 1,567 1,326 4,098 Othe
Slide 22: Forward-looking statements notice
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