Slide 1: Financial Results Highlights FY12/2021
Financial Results Highlights FY12/2021 Feb 10, 2022 Roland Corporation Flagship Synthesizer "JUPITER X” With the Roland Cloud Connect (Wireless Adopter + Roland Cloud Pro Membership) sold separately, the latest instruments and sounds from Roland Cloud can be deployed wirelessly to JUPITER
Slide 2: Executive Summary
Executive Summary • FY12/2021 Full Year Result • Overcame a difficult environment and exceeded the earnings forecasts that was revised upward significantly in May • Sales, Operating Profit, and Net Income increased significantly YoY, reached Record Highs • FY12/2022 Full Year Forecast • Continued st
Slide 3: FY12/2021 Results, FY12/2022 Forecast, Supplemental Information
1 FY12/2021 Results 2 FY12/2022 Forecast 3 Supplemental Information 3
Slide 4: FY12/2021 Results
1 FY12/2021 Results 2 FY12/2022 Forecast 3 Supplemental Information 4
Slide 5: Highlights
FY12/2021 Financial Results Highlights Sales • Grew in all major regions & categories due to robust demand 80.0bn • Order backlog +JPY6.0bn YoY as supply constraints remained severe (YoY ＋ 25.0%) Operating Profit • Substantial increase by two price optimizations and increased revenue 11.0bn • Materi
Slide 6: Consolidated Financial Results
FY12/2021 Financial Results Consolidated Financial Results FY2020/121 FY12/20212 (JPY mn) Actual % of Sales Actual % of Sales YoY Sales 64,044 100.0% 80,032 100.0% +25.0% Gross Profit 30,379 47.4% 36,137 45.2% +19.0% SG＆A 23,264 36.3% 25,043 31.3% +7.6% Operating Profit 7,115 11.1% 11,093 13.9% +55.
Slide 7: Looking back: Continued to maximize supply efforts to meet rising demand
FY12/2021 Financial Results Looking back: Continued to maximize supply efforts to meet rising demand Before COVID19 Stay Home Demand New Lifestyle Demand Difficulty in procurement and shipment / Cost increases Malaysia Plant Restriction ●Fire at major supplier Malaysia Plant Restriction ●Price Incre
Slide 8: Malaysia factory recovered, with multiple keyboard production sites
FY12/2021 Financial Results Malaysia factory recovered, with multiple keyboard production sites to meet rising demand Malaysia Plant Production Volume Plan to increase keyboard production ⚫ Despite procurement constraints, production has ⚫ Increased keyboard production at Malaysian plant and recover
Slide 9: Sales by Category
FY12/2021 Financial Results Sales by Category FY12/2020 FY12/2021 JPY mn YoY1 Actual % total Actual % total YoY w/o FX Situation Portable digital pianos continued to be strong. Development Keyboards 17,842 27.9% 24,792 31.0% +39.0% +32.4% of sales channels in North America was also successful Electr
Slide 10: Sales by Region
FY12/2021 Financial Results Sales by Region FY12/2020 FY12/2021 JPY mn YoY1 Actual % total Actual % total YoY w/o FX Situation Despite supply constraints, digital pianos and video-related products Japan 9,066 14.2% 9,666 12.1% +6.6% +6.6% were strong. Store customer traffic also improved due to prog
Slide 11: Consolidated Operating Profit
FY12/2021 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 ✓ Raw materials and container costs soared ✓ Change in the model mi
Slide 12: Sales and profit growth potential and Our strategy
FY12/2021 Financial Results Sales and profit growth potential and Our strategy Uncover hidden demand through Digital Marketing and Game Changers ⚫ A huge potential customer base who wants to try music but hasn't started yet Remove the constraints of time, place, people, money, and opportunity with C
Slide 13: Update on Roland Cloud: Mid to Long Term Vision
FY12/2021 Financial Results Update on Roland Cloud Mid to Long Term Vision of Cloud Service ⚫ 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 “B
Slide 14: Update on Roland Cloud
FY12/2021 Financial Results Update on Roland Cloud Number of users and sales Major initiatives conducted in 2021 ⚫ Grew paid users to 2.3x and revenue to 3.0x vs. 2019 ⚫ Continuous release of Software/Apps ⚫ Added “Buy-out" option2 and new pricing plan3 in 2020 ✓ 9 soft synths and 90 additional soun
Slide 15: Topic 1) Produce: Hot new product lines
FY12/2021 Financial Results Topic 1) Produce: Development of high value added products and services that only we can provide Hot new product lines F701 VAD706 SP-404MKII ⚫ International Design Awards: ⚫ The top model of VAD series with a design ⚫ The latest model of the standard Red Dot Design Award
Slide 16: Topic 1) Produce: Hot new product lines
FY12/2021 Financial Results Topic 1) Produce: Development of high value added products and services that only we can provide Hot new product lines EURUS GS-1 AeroCaster Switcher Boutique Series ⚫ The next generation of electronic ⚫ iPad app that enables wireless video ⚫ Two vintage synths condensed
Slide 17: Digital marketing Strategy: Right contents to right person
FY12/2021 Financial Results Topic 2) Reach: Customer creation and market development through continuous engagement with our enthusiastic fans Digital marketing Strategy: Deliver “Right contents” to ”Right person” at “Right timing” Improve customer satisfaction Reach out to potential through continuo
Slide 18: Topic 2) Reach: Customer creation and market development
FY12/2021 Financial Results Topic 2) Reach: Customer creation and market development through continuous engagement with our enthusiastic fans ⚫ Started bundling “Start Card1” with most products ⚫ Brand exposure through “Influencers” =>User registration increased significantly ⚫ Digital ads using SNS
Slide 19: Shareholder Return
FY12/2021 Financial Results Shareholder Return • Year-end dividend of 69 yen/share as per the upwardly revised earnings • Board of Directors resolved to conduct a stock buyback1 considering strong performance of the company and the current market environment Total Return Ratio 68.2%2 Dividend per sh
Slide 20: FY12/2022 Forecast
1 FY12/2021 Results 2 FY12/2022 Forecast 3 Supplemental Information 20
Slide 21: Note: Changes in the accounting standard
<Note: Changes in the accounting standard> • Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, revised on March 31, 2020, effective from April 1, 2021) will be newly applied to our sales and operating profit from FY2022 • Accordingly, YoY changes for FY2022 (new standard) vs. FY202
Slide 22: FY12/2022 Full Year Forecast Highlights
FY12/2022 Full Year Forecast Highlights Sales • Strong Demand at a higher level as new lifestyles becoming habit 85.0bn • Despite procurement constraints, Full-year revenue to increase (YoY ー) • YoY growth expected for major products and regions Operating Profit • Further price optimization planned
Slide 23: Consolidated Financial Forecast
FY12/2022 Full Year Forecast Consolidated Financial Forecast FY12/20211 FY12/20222 New standard Old standard (same as previous year) (JPY mn) Actual % of Sales Forecast % of Sales YoY Forecast % of Sales YoY Sales 80,032 100.0% 85,000 100.0% ｰ 85,800 100.0% +7.2% Gross Profit 36,137 45.2% 38,400 45.
Slide 24: Sales and Profits continue to increase despite challenging environment
FY12/2022 Full Year Forecast Consolidated results: Sales and Profits continue to increase despite challenging environment Sales Operating Profit Net Income2 Forecast Old Standard 85.8bn Old12.4bn(14.5%) Old 8.7bn New Standard 85.0bn (FY12/2022) New11.6bn(13.6%) New 8.7bn Sales Operating Profit Net I
Slide 25: Strong demand continues, supply constraints expected to ease
FY12/2022 Full Year Forecast Strong demand continues, and supply constraints expected to ease in 2H and beyond ＜Assumptions＞ First Half Second Half Strong demand continues at a higher level even after vaccination due to new Demand lifestyles becoming settled habits ⚫ Semiconductor and shipping ⚫ Som
Slide 26: Full year Sales and Profits expected to increase
FY12/2022 Full Year Forecast Full year Sales and Profits are expected to increase from the previous year ⚫ 1H Sales and OP to decrease YoY as ~Y2bn sales sifted to FY12/21, as well as rising costs impact profitability ⚫ 2H Sales and OP to increase YoY with recovery of Malaysian plant, price optimiza
Slide 27: Sales by Category
FY12/2022 Full Year Forecast Sales by Category ⚫ Continued strong demand in all major categories, particularly for digital pianos ⚫ Sequential release of new product lines whose launch was delayed due to procurement constraints FY12/2021 FY12/2022 JPY mn YoY1 Actual % total Actual % total YoY w/o FX
Slide 28: Sales by Region
FY12/2022 Full Year Forecast Sales by Region ⚫ Strong demand in all major regions ⚫ In North America, expect lower demand due to inflation and disruption in logistics ⚫ China maintains high growth mainly in electronic pianos despite the indirect impact of private school regulations FY12/2021 FY12/20
Slide 29: Consolidated Operating Profit
FY12/2022 Full Year Forecast Consolidated Operating Profit Changes (vs Previous year) Factors (JPY bn) Sales Increase Margin Change • Sales Increase SG&A Change FX impact ✓ Increase in gross profit due to higher sales • Absorb cost increases by further price Accounting change optimization • Margin C
Slide 30: Shareholder Returns
FY12/2022 Full Year Forecast Shareholder Returns ＜Policy＞ The Company’s shareholder return policy is to make sustainable and stable dividend payments while flexibly purchasing treasury shares taking into account various factors, including stock market trends and capital efficiency. Through this, we
Slide 31: Change of Representative Director (Planned)
FY12/2022 Full Year Forecast Change of Representative Director1（Planned） ⚫ Transition to a new management team for further enhancing the corporate value of the Roland Group ⚫ Accelerating the evolution to a Global Marketing Driven Company ⚫ Formal decision to be made at the AGM on March 30, 2022, an
Slide 32: Supplemental Information
1 FY12/2021 Results 2 FY12/2022 Forecast 3 Supplemental Information 32
Slide 33: First Half Forecast
Supplemental information First Half Forecast ⚫ Sales and Profits to decrease YoY after Y2bn sales sifted to FY12/21 (from 4Q/2020 to 1Q/2021) ⚫ Additional price optimizations in response to raw material costs increase, but the full effects start from 2Q ⚫ Due in part to FX impact (-1pt), GP margin d
Slide 34: Second Half Forecast
Supplemental information Second Half Forecast ⚫ Sales and Profits to increase YoY due to recovery of Malaysia plant suspensions in the previous year ⚫ GPM to improve significantly due to price optimizations in 2021 and Q1/2022, and easing of cost increases FY12/2021 Second Half1 FY/12/2022 Second Ha
Slide 35: Our Sustainability
Supplemental information Our Sustainability Policy for the initiatives Materiality “Environmental and Social”, ”Musical and Video culture”, We have identified materiality, focusing on initiatives that meet the ”Company’s Business” expectations of all stakeholders, including the environment and socie
Slide 36: Our Sustainability: Examples of Initiatives
Supplemental information Our Sustainability <Examples of Initiatives> Renewable Energy SKU Reduction Women Empowerment ⚫ Switching to CO2-free electricity for all ⚫ Compared to 2019, reduced SKU by ⚫ Awarded the highest "Eruboshi" offices in Hamamatsu City, Shizuoka 30% certification as a company th
Slide 37: R&D Expenses / Capital Expenditures / Depreciation
Supplemental information R&D Expenses／Capital Expenditures・Depreciation R&D Expenses1 Capital Expenditures1 Depreciation1 (JPY mn) (JPY mn) (JPY mn) 4,500 4,500 4,500 4,170 4,145 4,039 4,056 4,000 4,000 4,000 3,549 3,536 3,500 3,500 3,500 3,000 3,000 3,000 2,500 2,500 2,500 2,000 2,000 2,000 1,847 1
Slide 38: Key Consolidated Financials (PL)
Supplemental information Key Consolidated Financials（PL） (JPY mn) 12/2018 12/2019 12/2020 12/2021 Net sales 61,153 63,247 64,044 80,032 Cost of sales 31,536 33,006 33,664 43,895 Gross profit 29,617 30,240 30,379 36,137 Selling, general and administrative expenses 23,762 24,971 23,264 25,043 Operatin
Slide 39: Key Consolidated Financials (B/S)
Supplemental information Key Consolidated Financials (B/S) (JPY mn) 12/2018 12/2019 12/2020 12/2021 Cash and deposits 9,052 8,815 10,832 8,781 Notes and accounts receivable - trade 8,065 8,913 5,930 7,444 Inventories 13,142 14,215 18,075 25,240 Other current assets 1,918 1,120 1,220 1,156 Total curr
Slide 40: Key Consolidated Financials (CF)
Supplemental information Key Consolidated Financials (CF) (JPY mn) 12/2018 12/2019 12/2020 12/2021 Profit before income taxes 4,392 4,080 5,846 10,239 Depreciation 1,078 1,537 1,568 1,608 Amortization of goodwill 59 4 4 4 Decrease (increase) in trade receivables (677) (846) 2,172 (347) Decrease (inc
Slide 41: Key Consolidated Financials (Sales by product / region)
Supplemental information Key Consolidated Financials (Sales by product / region) Product (JPY mn) 12/2018 12/2019 12/2020 12/2021 Ratio (2021) Keyboards 15,551 17,104 17,842 24,792 31.0% Percussion & Wind 14,351 14,205 14,620 19,053 23.8% Instruments Guitar-related Products 16,411 16,744 16,712 19,0
Slide 42: Forward-looking statements disclaimer
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