Yonex Co., Ltd. · TSE:7906
Yonex — H1 FY3/25 Earnings Presentation
27 slides from Yonex's earnings presentation, Nov 8, 2024
Slide 1: Fiscal Year Ending March 31, 2025 H1 Financial Results
Fiscal Year Ending March 31, 2025 H1 Financial Results Yonex Co., Ltd. Tokyo Stock Exchange Code: 7906 November 8, 2024
Slide 2: Table of Contents
Table of Contents 1. Consolidated Financial Results for FY3/25 H1 ・・・・・・・・・・・・ 3 2. Segment Overview ・・・・・・・・・・・・・・・・・・・・・・・・・・ 8 3. Forecasts for FY3/25 ・・・・・・・・・・・・・・・・・・・・・・・・・・ 15 4. Topics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17 5. Appendix ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 23 © 2024 YONEX Co., Lt
Slide 3: Highlights
Highlights Net Sales Operating Profit Net Profit Attributable to owners of parent 66.9 billion yen 7.6 billion yen 5.4 billion yen YoY YoY YoY +16.0％ +37.1％ +23.4％ Sports activity levels remained high. To further stimulate market growth, we focused our efforts on marketing campaigns that showcased
Slide 4: Consolidated Income Statement
Consolidated Income Statement (Million yen) FY3/24 H1 FY3/25 H1 FY3/25 YoY Results Forecasts* Results Margins Net Sales 57,725 66,942 ― +16.0% 134,000 （+9,216） Gross Profit 25,110 30,248 45.2％ +20.5% ― （+5,137） SGA 19,498 22,556 33.7％ +15.7% ― （+3,058） Operating Profit 5,612 7,691 11.5％ +37.1% 13,10
Slide 5: Factors behind Operating Profit Changes
Factors behind Operating Profit Changes Gross profit increased due to a combination of higher sales and improved gross profit margin. These gains more than offset the rise in SGA expenses, which included system-related expenditures for global IT reinforcement, depreciation costs, and personnel expen
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets Property, plant and equipment increased due to capital investments in our new R&D facility (Yonex Performance Innovation Center) and new tennis factory. Interest-bearing debt increased due to borrowings for these investments. Assets Liabilities (Million yen) End FY3/2
Slide 7: Consolidated Cash Flows
Consolidated Cash Flows We secured stable cash flow to reinforce investments based on our Global Growth Strategy (GGS). （Million yen） FY3/24 H1 FY3/25 H1 Change • Decrease in inventories (+) • Increase in notes and accounts Operating activities 5,299 7,710 +2,411 payable-trade (+) • Increase in inte
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) FY3/25 H1 Results Related Entities Sales Segment Composition Net Sales Operating Pro
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, contributing to an overall increase in consolidated sales. Sales in North America decreased on a local currency basis. Forex Rate 1RMB 1TWD 1USD 1EUR 1GBP FY3/24 H1 （Jan-Jun） 19.44 yen 4.40 yen
Slide 10: Japan Segment
Japan Segment (Million yen) 28,167 million yen YoY Net Sales 28,167 +8.0 % 24,291 26,078 Badminton sales increased on the back of strong sales of racquets, supported by continued strong demand and the launch of a new model racquet in Q2. Although Domestic tennis racquet sales also saw an uptick than
Slide 11: Asia Segment
Asia Segment (Million yen) 32,438 million yen YoY Net Sales 32,438 +24.7 % 26,005 Badminton demand remained solid, highlighted by strong sales from an online 21,215 sales event in June, and strong sales of badminton equipment, apparel, and bags. China The Chinese market was energized by the national
Slide 12: North America Segment
North America Segment (Million yen) 3,059 3,109 YoY 2,568 3,109 million yen +1.6 % Net Sales Tennis sales increased for both racquets and strings thanks to improving inventory levels and the successes of our grassroots activities. Badminton activities remained solid and racquet sales increased, but
Slide 13: Europe Segment
Europe Segment (Million yen) YoY Net Sales 2,858 million yen +27.2 % 2,858 2,247 1,671 Badminton sales increased, bolstered by the successes of international Germany tournaments held in Q1. Tennis sales also saw an uptick, particularly in racquets, driven by effective initiatives to expand Yonex pro
Slide 14: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories The badminton market continued to trend solidly, with increased sales both in Japan and overseas. Tennis sales saw an uptick abroad, particularly in North America and Europe. Other categories such as apparel, bags, and accessories also recorded higher sale
Slide 15: Earnings Forecasts for FY3/25 (upward revision)
Earnings Forecasts for FY3/25 (upward revision) We revised our earnings forecasts upward from those announced in May 2024 to reflect the solidly trending sports market and the increase in our marketing investments aimed at expanding the Yonex fanbase. Reasons for the Revision Forex Rate (average
Slide 16: Dividends
Dividends Our basic policy is to maintain a stable and appropriate level of dividends. In light of our interim profit exceeding the previous forecasts, we will increase the interim dividend to 11 yen per share by adding a special dividend of 1 yen to the ordinary dividend of 10 yen per share. Conseq
Slide 17: Start of Operations at the Yonex Performance Innovation Center
Start of Operations at the Yonex Performance Innovation Center The Yonex Performance Innovation Center, our new R&D facility, became fully operational in July. Located next to our existing manufacturing facilities in Nagaoka City, Niigata Prefecture, this center is designed to help us reach new heig
Slide 18: China: Leveraging International Competitions and Player Successes to Drive Market Growth
China: Leveraging International Competitions and Player Successes to Drive Market Growth The Chinese national team won both the men’s and women’s World Team Championships held on their home turf in Q2. We will continue to focus our marketing efforts on promoting international sporting events and cel
Slide 19: Marketing Activities in China
Marketing Activities in China We enhanced our in-store brand communications and attracted new fans through a co-branding project with Starbucks. Yonex Concept Shops Yonex Shanghai Showroom We expanded our network of Yonex Concept Shops (retail We organized in-store events, live commerce sessions, an
Slide 20: 2024 US Open Tennis Championships
2024 US Open Tennis Championships At this year’s US Open, which saw a record-breaking attendance exceeding 1 million spectators, Team Yonex's US athletes thrilled local fans with their outstanding performances. We also launched a pop-up shop in New York to boost our visibility both on and off the co
Slide 21: Efforts to Grow Our Overseas Tennis Business
Efforts to Grow Our Overseas Tennis Business Our tennis sales increased to 4.3 times the level of FY3/19 H1, thanks to our various initiatives on multiple fronts. Higher racquet usage rate at Grand Slam Tournaments Strong reputation for high quality and performance More Yonex Head to Toe athle
Slide 22: Golf: Yonex's Iwai Sisters Shine with Strong Performances
Golf: Yonex’s Iwai Sisters Shine with Strong Performances Both sisters excelled in domestic golf tours, and our golf clubs garnered attention for their role in driving athletes’ successes. Yonex’s Iwai Sisters A total of 13 wins* Yonex Golf Clubs: Elevating Athletes’ Performances Chisato Iwai won th
Slide 23: Appendix
fn Appendix
Slide 24: 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 their fiscal year in March, while our overseas subsidiaries close their fiscal year in December. Period Covered in Consolidated Financial Results f
Slide 25: Net Sales by Reported Segments
Net Sales by Reported Segments (Million yen) FY3/21 H1 FY3/22 H1 FY3/23 H1 FY3/24 H1 FY3/25 H1 Japan (Domestic sales and sales to 12,043 18,836 24,291 26,078 28,167 overseas distributors) Asia 8,005 13,344 21,215 26,005 32,438 (Subsidiaries) North America 923 1,451 2,568 3,059 3,109 (Subsidiaries) E
Slide 26: Net Sales by Geographic Region
Net Sales by Geographic Region (Million yen) FY3/21 H1 FY3/22 H1 FY3/23 H1 FY3/24 H1 FY3/25 H1 Japan 9,648 14,417 17,135 17,138 18,906 Overseas 12,444 20,370 32,956 40,586 48,035 Asia 9,778 16,860 25,343 32,150 38,567 North America 923 1,451 2,568 3,059 3,109 Europe 1,567 1,326 4,098 4,498 5,501 Oth
Slide 27: 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