Roland Corporation · TSE:7944
Roland — Q1 2025 Earnings Presentation
24 slides from Roland's earnings presentation, May 13, 2025
Slide 1: Financial Results Highlights FY12/2025 Q1
Financial Results Highlights FY12/2025 Q1 May 13, 2025 Roland Corporation 『V-STAGE』
Slide 2: Executive Summary
Executive Summary ⚫ Q1 results increased YoY in both sales and profit, excluding FX. Sales was in line with the plan. ⚫ However, U.S. tariff policies that exceeded our expectations are causing confusion in the musical instrument industry. ⚫ We expect to be affected to some extent going forward. ⚫ We
Slide 3: Agenda
1 FY12/2025 Q1 Results 2 Impact of U.S. Tariff Policy 3 FY12/2025 Forecast 4 Supplemental Information
Slide 4: FY12/2025 Q1 Results
1 FY12/2025 Q1 Results 2 Impact of U.S. Tariff Policy 3 FY12/2025 Forecast 4 Supplemental Information
Slide 5: Q1 Financial Results Highlights
FY12/2025 Q1 Financial Results Highlights Sales • YoY +2.1% 22.5bn • Though some good and bad depending on region and category, the (YoY：+2.1%) trend is in line with internal plans. Operating Profit • YoY -7.8%（without FX, YoY+8.1%） 1.4bn • Increased without FX despite increased SG&A expenses (YoY：-
Slide 6: Consolidated Financial Forecast
FY12/2025 Q1 Financial Results Consolidated Financial Forecast ⚫ GP margin improved by 1.0pt (43.5%) YoY, excluding FX impact. ⚫ OP margin improved by 0.4pt (7.5%) YoY, excluding FX impact FY12/2024 Q11 FY12/2025 Q12 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 22,083 100.0% 22,543 100.0
Slide 7: Sales by Category
FY12/2025 Q1 Financial Results Sales by Category ⚫ YoY sales increase in all major categories except Perc. & Wind ⚫ vs. Our Expectation: Keyboards “positive”, Perc. & Wind “slightly weak”, Guitar-related “slightly weak”, Creation- related “positive”, and Video & Pro Audio “positive”. ⚫ Perc. & Wind
Slide 8: Sales by Region
FY12/2025 Q1 Financial Results Sales by Region ⚫ China continued to struggle but appears to have bottomed out. “Others” continued to grow, offsetting the negative in China. ⚫ vs. Our Expectation: North America “positive”, Europe “slightly weak”, Japan “slightly weak”, China “positive”, and Others “p
Slide 9: Consolidated Operating Profit
FY12/2025 Q1 Financial Results Consolidated Operating Profit Changes (vs Previous year) Factors (vs Previous year) Sales Volume change (JPY bn) Selling Price / Cost ratio change SG&A change • Sales Volume FX impact ✓ Dealer recovery from inventory adjustment （＋） ✓ Impact of stock-outs for some produ
Slide 10: Topics: Major new products and services announced in the first quarter
FY12/2025 Q1 Financial Results Topics: Major new products and services announced in the first quarter Creation-related equipment & services Synthesizer Roland Cloud ⚫ V-STAGE, a new series of premium stage keyboards ⚫ Software version of the JC-120, the famous guitar amp that has designed for high-c
Slide 11: Topics: Major new products and services announced in the first quarter
FY12/2025 Q1 Financial Results Topics: Major new products and services announced in the first quarter Guitar-related products Keyboards V-Guitar Processor Portable Keyboard ⚫ Our proprietary modeling technology allows the processor to ⚫ The Roland Piano App offers lesson functions that allow you enj
Slide 12: Impact of U.S. Tariff Policy
1 FY12/2025 Q1 Results 2 Impact of U.S. Tariff Policy 3 FY12/2025 Forecast 4 Supplemental Information
Slide 13: Our Perceptions of U.S. Tariff Policy
Impact of U.S. Tariff Policy Our Perceptions of U.S. Tariff Policy ⚫ The US is the world's largest musical instrument market and a major importer, so the impact to the market will be big ⚫ The higher the percentage of production in China, where tariff rates are extremely high, the greater the impact
Slide 14: Scope of Direct Impact of U.S. Tariff Policies on Roland
Impact of U.S. Tariff Policy Scope of Direct Impact of U.S. Tariff Policies on Roland ⚫ While our US sales is high at ~30% of total sales, the sales ratio of Chinese-produced products in the US, which are most affected by tariffs, is not significant at ~14%. (30% × 14% = ~4% of Roland’s total sales)
Slide 15: Our Response to the U.S. Tariff Policy
Impact of U.S. Tariff Policy Our Response to the U.S. Tariff Policy ⚫ While closely monitoring the situation, we implement defense and attack measures to minimize the impact ⚫ Measures will be flexibly reviewed as the situation progresses ⚫ In the medium to long term, we consider electronic instrume
Slide 16: FY12/2025 Forecast
1 FY12/2025 Q1 Results 2 Impact of U.S. Tariff Policy 3 FY12/2025 Forecast 4 Supplemental Information
Slide 17: Revision of Earnings Forecast
FY12/2025 Full-Year Forecast Revision of Earnings Forecast Assumptions 1. Tariffs on China will remain at 145% and 10% for the rest of the world for the 2025. 2. Does not include the possibility of a global recession ⚫ Aim to achieve the initial forecast set before the imposition of the reciprocal t
Slide 18: Revision of Earnings Forecast
FY12/2025 Full-Year Forecast Revision of Earnings Forecast Factors affecting OP (Y bn) a e d c 0.3 b b 0.5 f a -1.4 e 0.3 0.6 c d 0.3 0.2 0.2 0.4 -2.0 0.6 a. Cost increase due to tariffs a. US Price Increase (High) b. Suspension of China exports to the US b. Production shift (High) c. US Price Incre
Slide 19: Revision of Earnings Forecast
FY12/2025 Full-Year Forecast Revision of Earnings Forecast ⚫ We withdraw the forecast for the first half of the fiscal year ⚫ The forecast may be revised again depending on the progress of the situation （JPY bn） vs Previous Previous Forecast1 Revised Forecast1 Forecast 1st Half Full-Year 1st Half Fu
Slide 20: Dividend forecast
FY12/2025 Full-Year Forecast Dividend forecast ⚫ Due to the high degree of uncertainty, we do not revise our dividend forecast at this time ⚫ We revise our dividend forecast if the risk scenarios become more likely ＜Policy＞ The Company’s shareholder return policy is to make sustainable and stable di
Slide 21: Our views on exchange rate fluctuations
FY12/2025 Full-Year Forecast Our views on exchange rate fluctuations Point：The recent trend of the USD weakening compared to the forecast is not expected to have a negative impact on operating profit ⚫ Operating profit is most sensitive to EUR/USD rates, and the recent strong EUR / weak USD is favor
Slide 22: Supplemental Information
1 FY12/2025 Q1 Results 2 Impact of U.S. Tariff Policy 3 FY12/2025 Forecast 4 Supplemental Information
Slide 23: Key Consolidated Financials
Supplemental Information Key Consolidated Financials FY2024 FY2025 As of Dec. As of Mar. (JPY mn) (JPY mn) Q1 Q1 31, 2024 31, 2025 Net sales 22,083 22,543 Cash and deposits 14,478 17,116 Gross profit 9,392 9,559 Notes and accounts receivable - trade 12,538 11,272 Selling, general and Inventories 29,
Slide 24: Forward-looking statements
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