Slide 1: Fiscal Year Ending March 31, 2024 Financial Results
Fiscal Year Ending March 31, 2024 Financial Results Yonex Co., Ltd. Tokyo Stock Exchange Code：7906 May 16, 2024
Slide 2: Table of Contents
Table of Contents 1. Consolidated Financial Results for FY3/24 ・・・・・・・・・・・ 3 2. Segment Overview ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8 3. Forecasts for FY3/25 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15 4. Dividends ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16 5. Progress of Global Growth Strategy ・・・・・・・・・・・・・
Slide 3: Highlights
Highlights Attributable to owners of parent Net Sales Operating Profit Net Profit 116.4 billion yen 11.6 billion yen 8.8 billion yen YoY YoY YoY +8.8％ +15.4％ +20.8％ ⚫ Demand for sports remained strong on the back of the resumption of various tournaments and general increase in sports activities, as
Slide 4: Consolidated Income Statement
Consolidated Income Statement （Million yen) FY3/23 FY3/24 FY3/24 Full Year YoY Results Forecasts* Results Margins Net Sales 107,019 116,442 ― +8.8％ 116,000 （+9,423） Gross Profit 45,905 51,611 44.3％ +12.4％ ― （+5,705） SGA 35,842 40,000 34.4％ +11.6％ ― （+4,158） Operating Profit 10,063 11,611 10.0％ +15.4
Slide 5: Factors behind Operating Profit Changes
Factors behind Operating Profit Changes The increase in gross profit was due to higher sales and gross profit margin improvement mainly in the Japan segment, and it more than offset the SGA increase, which consisted mainly of higher personnel expenses for organizational structure fortification and I
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets The high levels of inventories seen mainly in China at the end of FY3/23, caused by the spread of COVID-19, decreased due to a recovery in sales. Property, plant, and equipment increased mainly due to investment in new R&D facilities and factories. Interest-bearing debt i
Slide 7: Consolidated Cash Flow
Consolidated Cash Flow We reinforced investments in IT and manufacturing facilities in accordance with our Global Growth Strategy (GGS), while at the same time securing stable cash reserves. (Million yen) FY3/23 FY3/24 Change •Decrease in inventories (+) •Increase in net income (+) Operating activit
Slide 8: Segment Information
Segment Information Our business consists of the sporting goods division, which is divided into the four regional segments of Japan, Asia, North America, and Europe, and the sports facilities division. （Million yen） FY3/24 Results Related Entities Sales Segment Operating Composition Net Sales Sales
Slide 9: Net Sales Changes and Forex Impact (Reported Segments)
Net Sales Changes and Forex Impact (Reported Segments) The yen depreciated against all major currencies, and yen depreciation contributed to an overall increase in consolidated sales. Although sales in North America decreased on a local currency basis, it increased when converted to yen. ⚫ Forex rat
Slide 10: Japan Segment
Japan Segment (Million yen) YoY 51,039 47,750 Net Sales 51,039 millon yen +6.9 % 37,515 Demand for badminton remained strong, and sales increased in Q4 due in part to Domestic the popularity of a new-model racquet released in March. Tennis sales showed recovery in H2, but ultimately resulted in a sl
Slide 11: Asia Segment
Asia Segment (Million yen) YoY 54,849 Net Sales 54,849 million yen +10.4 % 49,662 Although the impact of COVID-19 continued until the beginning of the current Q1 30,968 from the previous year’s Q4, sports activities recovered soon thereafter. Sales China increased significantly year-on-year especial
Slide 12: North America Segment
North America Segment (Million yen) YoY 5,512 million yen +4.9 % 5,257 5,512 Badminton sales decreased in H2 compared to the previous year, where sales had risen significantly along with the resumption of sports activities, but overall 3,194 Net Sales sales saw a substantial increase bolstered by st
Slide 13: Europe Segment
Europe Segment (Million yen) YoY 4,518 Net Sales 4,518 million yen +18.4 % 3,815 Sales increased due to firm demand for both badminton and tennis. Sales of 2,336 Germany tennis products, in particular, increased significantly due to the high reputation of our products in the market. Sales increased
Slide 14: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Demand for badminton remained solid, bolstered by sales growth in both Japan and overseas. Tennis sales increased in China and Europe, but decreased in Japan and North America, resulting in an overall decrease. (Million yen) Sporting Goods Division Sports
Slide 15: Earnings Forecasts for FY3/25
Earnings Forecasts for FY3/25 We expect to maintain moderate growth and increase revenues and profits, while making investments to achieve mid- to long-term growth in line with our Global Growth Strategy (GGS). ⚫ Assumptions ⚫ Forex Rate (average) (Yen) • Although the external environment remains un
Slide 16: Dividends
Dividends The year-end dividend is planned for 9 yen per share, consisting of an ordinary dividend of 7 yen and a special dividend of 2 yen. Accordingly, the full-year dividend is planned for 16 yen per share. The full-year dividend for the fiscal year ending March 31, 2025 is forecast at 20 yen per
Slide 17: Progress of Global Growth Strategy
Progress of Global Growth Strategy
Slide 18: Entering a New Growth Phase
Entering a New Growth Phase We have succeeded in scaling up our business and expanding our global consumer base against the backdrop of rapidly changing values and lifestyles. We will continue to aim for further growth over the mid- to long-term in line with our Global Growth Strategy (GGS). Consoli
Slide 19: From Corporate Philosophy to Purpose and Mission
From Corporate Philosophy to Purpose and Mission We have revisited our Corporate Philosophy and have decided to change its name to Purpose supplemented by a newly crafted Mission. Our new Purpose and Mission will help us to identify what we must keep as our core and ensure all Yonex employees are on
Slide 20: Global Growth Strategy (GGS): Progress
Global Growth Strategy (GGS): Progress FROM TO Progress Further growth in other GEOGRAPHIC • Growing presence in US tennis market East Asia centric regions – broaden our FOOTPRINT • Growth in India; Start of operation of new factory global footprint Focus on supporting MARKETING Consumer-centric str
Slide 21: Geographic Footprint: US Tennis
Geographic Footprint: US Tennis The number of US tennis players surpassed 20 million in 2020 and has since sustained a moderate upward trend. The percentage of first-time players in particular shows a notable increase. (Millions of players) US Tennis Population 35.0 24% 20% 30.0 20% 16% 25.0 12% 14%
Slide 22: Geographic Footprint: US Tennis
Geographic Footprint: US Tennis Both Yonex’s market share and usage rate by top athletes are on an upward trend. We will expand the Yonex fan base and aim to become the No.1 tennis brand. Yonex Tennis Racquet Share in US Specialty Stores Yonex Racquet Usage Rate* at the （Dollar share） Australian Ope
Slide 23: Geographic Footprint: Badminton in India
Geographic Footprint : Badminton in India Sales in India have increased significantly thanks to the rising popularity of badminton. We will continue to promote initiatives for further growth in this market. Sales Growth Rate in India * ＋400% Future Potential for Growth About 4.5 times ⚫ Revitalizati
Slide 24: China: Badminton
China: Badminton China won both the men's and women's titles at the Thomas and Uber Cup finals, which were held on home ground in Chengdu, China. This was their first double victory in 12 years, bringing much excitement to Chinese badminton fans. 2024 Thomas and Uber Cups（April 27 to May 5, 2024） ▲J
Slide 25: China: Badminton
China: Badminton The market continues to be active, supported by our grassroots activities. We will continue to drive growth by reinforcing racquets in the popular price range, as well as shoes and apparel, all of which show strong growth potential. Our Grass-Roots Activities Number of Amateur Tourn
Slide 26: DTC
DTC Our new DTC Center of Excellence is currently in the analysis and planning stage, in preparation for the launch of the Yonex DTC ecosystem. Launch of DTC Center of Excellence (DTC COE) • Launched in the US • Comprised of a dedicated DTC team in the US and a cross-functional team from the Head Of
Slide 27: "Monozukuri" (Craftsmanship)
“Monozukuri” (Craftsmanship) We have strengthened our craftsmanship to meet a variety of consumer needs, giving form to our consumer-centric philosophy. We will ensure that Made by Yonex quality and innovation is infused into all of our products, including those manufactured at our overseas and part
Slide 28: IT
IT IT is an important enabler of our Global Growth Stratey (GGS). We have launched our GGS IT Transformation Program to reinforce our IT function across the Yonex Group, including a new global ERP system. Global Deployment of New ERP System January 2023: Operation started in Head Office January 2024
Slide 29: Capital Allocation Plan
Capital Allocation Plan We will allocate cash to investments for business growth and long-term stable shareholder returns, leveraging debts with sufficient consideration of cost of capital. Prior to GGS GGS FY3/24-FY3/26 FY3/21-FY3/23 Cash-In Cash-Out Cash-In Cash-Out Dividends and approx. Share Buy
Slide 30: Net Profit and ROE
Net Profit and ROE We have earned a higher ROE than the cost of equity thanks to the increase in net profit due to rapid business growth over the past three years. (Million yen) Net Net Profit income Return on Equity (ROE) 15.6% 14.9% 14〜１5% 13.6% 9.0% 9,300 9,100 7.0% 8,859 9,100 5.6% 5.2% 7,331 4.
Slide 31: Dividend Policy
Dividend Policy We will allocate stable dividends based on long-term growth. (Million yen) 2.5〜3.0% 配当金総額 Total dividends 純資産配当率 Dividend (DOE) on Equity Ratio (DOE) 2.4% 2.3% 2.1% 1.3% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% 1,738 1.1% 1.1% 1,730 1.0% 1,395 1,137 875 379 392 436 436 437 438 394 323
Slide 32: Appendix
Appendix
Slide 33: Reference: Fiscal Year End for Domestic and Overseas Businesses
Reference: Fiscal Year End for Domestic and Overseas Businesses Our Japan segment, including domestic sales and sales to overseas distributors, closes its fiscal year in March, while our overseas subsidiaries close their fiscal year in December. ⚫ Period Covered in FY3/24 2023 2024 Jan Feb Mar Apr M
Slide 34: Net Sales by Reported Segments
Net Sales by Reported Segments (Million yen) FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 Japan (Domestic sales and sales to 38,119 29,009 37,515 47,750 51,039 overseas distributors) Asia (Subsidiaries) 18,835 18,276 30,968 49,662 54,849 North America (Subsidiaries) 2,212 1,945 3,194 5,257 5,512 Europe (Subsi
Slide 35: Net Sales by Geographic Region
Net Sales by Geographic Region (Million yen) FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 Japan 29,350 22,766 28,252 32,146 33,914 Overseas 32,616 28,787 46,232 74,873 82,528 Asia 26,009 23,181 38,095 59,122 66,418 North America 2,212 1,945 3,194 5,263 5,512 Europe 3,760 3,131 3,484 8,662 8,823 Others 633 529
Slide 36: Disclaimer
Disclaimer 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 actua