Yonex Co., Ltd. · TSE:7906
Yonex — Q3 FY3/19 Earnings Presentation
19 slides from Yonex's earnings presentation, Feb 7, 2019
Slide 1: Financial Results 3rd Quarter of Fiscal Year Ending March 31, 2019
Financial Results 3rd Quarter of Fiscal Year Ending March 31, 2019 YONEX CO., LTD. (Tokyo Stock Exchange Code: 7906) February 7, 2019
Slide 2: 1Q-3Q Key Performance Highlights
1Q-3Q Key Performance Highlights □Net Sales Decreased by 3.1% YY to JPY 44.7bn • Japan sales declined due to contraction in the sports market caused by declining birthrates despite Team Yonex players’ strong performances and launches of new products • Tennis sales in Europe and North America grew du
Slide 3: Consolidated Financial Results
Consolidated Financial Results Gross and Operating Profits Decline YY due to Lower Sales (Million Yen) FY3/18 3Q FY3/19 3Q YY Change Net Sales 46,201 44,753 -1,447 -3.1% Gross Profit 18,725 18,682 -42 -0.2% Gross Profit Margin 40.5% 41.7% ― +1.2%pt SGA 17,265 17,262 -2 -0.0% Operating Profit 1,459 1
Slide 4: Operating Profit Changes
Operating Profit Changes SGA Expense Declined due to Lower Advertising Expenses, but Not Enough to Offset Decline in Gross Profit Gross Profit (Negative Impact) SGA (Negative Impact) SGA (Positive Impact) +37 (Million yen) 1,459 -42 +134 1,420 -311 +137 Other R&D Gross Profit Expenses Personnel Adve
Slide 5: Segment Sales Information
Segment Sales Information Steady Growth in North America, Ongoing Inventory Adjustments in China Caused Asia to Decline (Million yen) FY3/18 1Q-3Q FY3/19 1Q-3Q YY Change Japan 29,228 28,318 -3.1% North America 1,497 1,680 +12.2% Sporting Goods Europe 1,788 1,835 +2.6% Division Asia 13,242 12,476 -5.
Slide 6: Net Sales Change and Forex Impact (Reported Segments)
Net Sales Change and Forex Impact (Reported Segments) Asia and Europe Fell on a Local Currency Basis but Forex Impact was Positive Local Currency Basis (+) Forex Impact (Positive) Forex rate USD EUR GBP RMB TWD Local Currency Basis (-) Forex Impact (Negative) FY3/18 1Q-3Q* 111.92 124.54 142.66 16.47
Slide 7: Net Sales and Operating Profit of Sporting Goods Division (Reported Segments)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan North America Net Sales Operating Profit (Million yen) FY3/17 FY3/18 FY3/19 Forex rate 1Q-3Q 1Q-3Q 1Q-3Q 29,228 USD 108.68 111.92 109.60 28,545 28,318 *Jan-Sep 1,680 1,497 1,330 1,133 118 98 421 56 271 FY3/17 FY3/18
Slide 8: Net Sales and Operating Profit of Sporting Goods Division (Reported Segments)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Europe Asia Net Sales Operating Profit (Million yen) FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 Forex rate Forex rate 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q EUR 121.17 124.54 130.97 RMB 16.49 16.47 16.84 GBP 151.70 142.66 148.
Slide 9: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Badminton Sales Fell due to Weakness in Both Japan and Overseas, Tennis Sales Declined due to Weak Sales in Japan despite Strong Growth Overseas Sales (Million yen) FY3/19 1Q-3Q YY Change Composition Badminton 24,959 55.8% -2.9% Tennis 5,917 13.2% -1.1% Sp
Slide 10: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Badminton Tennis Japan Overseas (Million yen) 25,602 25,712 24,959 5,984 5,917 18,054 5,612 18,279 17,412 1,268 1,736 1,969 4,343 4,248 3,947 7,323 7,658 7,546 FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q Overseas Sales Com
Slide 11: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Golf Others Japan Overseas (Including apparel and accessories) (Million yen) 12,882 13,247 12,662 3,287 3,290 3,264 812 771 686 275 298 205 9,595 9,956 9,397 480 537 472 FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q Overseas
Slide 12: Consolidated Earnings Forecasts for Fiscal Year March 2019
Consolidated Earnings Forecasts for Fiscal Year March 2019 (Downward Revision) FY3/19 FY3/19 FY3/18 (Million yen) Original YY Change Revised YY Change Results Forecasts Forecast** Forex rate USD EUR GBP RMB TWD Net Sales 62,188 64,500 +3.7% 61,000 -1.9% FY3/18 Results 112.18 126.66 144.50 16.62 3.68
Slide 13: Tennis: Australian Open 2019, Team Yonex Captures Titles
Tennis: Australian Open 2019, Team Yonex Captures 8 Titles Women’s Singles Champion Naomi Osaka Secures World No. 1 Ranking (Jan 29, 2019) Team Yonex Winners Women’s Singles Naomi Osaka Japan Men’s Doubles Pierre-Hugues Herbert France Junior Girl’s Singles Clara Tauson Denmark Junior Girl’s Doubles
Slide 14: Tennis: Australian Open - Yonex Support Players
Tennis: Australian Open - Yonex Support Players Junior Boy’s Singles Racquet Usage Rate 27%: No. 1 Yonex Stringing Team The Official Stringing Team of the Australian Open Yonex was No. 2 in Junior Girl’s Singles and Women’s Singles for the fourth straight year 30% 27% 25% 24% 22% ←Stringing booth 20
Slide 15: Appendix
Appendix
Slide 16: Consolidated Net Sales (Japan & Overseas)
Consolidated Net Sales (Japan & Overseas) Japan Overseas (Million yen) 45,239 46,201 44,753 38,441 35,312 23,041 23,356 22,946 15,870 50.9% 50.6% 14,541 51.3% Overseas Sales 41.2% 41.3% Composition 20,770 22,570 22,197 22,844 21,807 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q *”
Slide 17: Net Sales (Reported Segments)
Net Sales (Reported Segments) Japan(Export, Intermediary Sales) North America(Subsidiary) Europe(Subsidiary) Asia(Subsidiary) Sports Facilities (Million yen) 45,239 46,201 44,753 38,441 454 443 442 35,312 443 13,254 13,242 12,476 418 1,345 5,980 ※1 1,801 1,221 1,843 1,653 1,788 1,497 1,835 1,518 1,3
Slide 18: Net Sales (Unreported Regional Data)
Net Sales (Unreported Regional Data) Japan North America Europe Asia Others (Million yen) 45,239 46,201 44,753 413 456 381 38,441 35,312 335 18,388 272 18,517 17,823 10,912 10,104 3,105 2,780 3,012 3,060 2,943 1,518 1,330 1,497 1,680 1,221 20,770 22,570 22,197 22,844 21,807 FY3/15 FY3/16 FY3/17 FY3/
Slide 19: Forward-looking statements and Investor Relations contact
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