Yonex Co., Ltd. · TSE:7906
Yonex — H1 FY3/21 Earnings Presentation
24 slides from Yonex's earnings presentation, Nov 10, 2020
Slide 1: Financial Results 1st Half of Fiscal Year Ending March 31, 2021
Financial Results 1st Half of Fiscal Year Ending March 31, 2021 YONEX CO., LTD. (Tokyo Stock Exchange Code: 7906) November 10, 2020
Slide 2: 1H Key Performance Highlights
1H Key Performance Highlights □Net Sales Declined by 30.6% Y/Y to JPY 22.0bn ・Continued negative impact of COVID-19 - Demand in China recovered relatively quickly, and domestic sales recovered more than we anticipated - Southeast Asia, India and Europe continued to struggle with the COVID-19 pandemi
Slide 3: Impact of COVID-19 upon Net Sales by Reported Segment
Impact of COVID-19 upon Net Sales by Reported Segment 1Q for Consolidated Accounts 2Q for Consolidated Accounts Segment Country/Region Jan Feb Mar Apr May Jun Jul Aug Sep Japan Japan Export & Intermediary China Asia Taiwan North USA America Canada Germany Europe UK ※Consolidated accounts as of June
Slide 4: Consolidated Financial Results
Consolidated Financial Results ■ Sales and Profits Exceed Original Forecasts ・Our original forecasts announced on August 12, 2020 were based on conservative outlooks for domestic sales and improvement of our factory utilization rates ・Sales exceeded our estimates due to implementation of small tourn
Slide 5: Consolidated Balance Sheets
Consolidated Balance Sheets (Million yen) Mar 31, 2020 Sep 30, 2020 Y/Y Asset Current Assets 33,022 32,746 -276 Net Cash (end 1H) 8,261 million yen Cash and Deposits 10,977 11,714 +737 (+2,323 million yen vs end 1Q) Notes and Accounts 11,315 10,133 -1,182 ・Cashflow of operating Receivable-Trade acti
Slide 6: Consolidated Cash Flow
Consolidated Cash Flow （Million yen） -515 +2,000 Investing -571 11,664 activities 10,927 Financing -177 activities Operating Others activities Maintenance, update of plants, others Restraint in inventory Repayment of loans, acquisitions, others others Start End FY3/21 FY3/21 1H 6
Slide 7: Operating Profit Changes
Operating Profit Changes Influence of Significant Decline in Gross Profit Large → due to lower sales and production adjustments at domestic factories in 1Q 1,711 Gross profit (Million yen) SGA -3,075（-25.7%） -5,002 （-36.6%） -215 -388 -91 (-12.1%) -2,175 (-14.3%) Others Personnel (-45.0%) R&D Expense
Slide 8: Reported Segments Information
Reported Segments Information (Million yen) FY3/20 1H FY3/21 1H Y/Y Net Sales 20,550 12,043 -41.4％ Japan Sporting Goods Division Operating Profit 857 -1,194 ― North Net Sales 1,091 923 -15.4％ America Operating Profit -18 27 ― Net Sales 1,179 873 -25.9％ Europe Operating Profit -16 -54 ― Net Sales 8,6
Slide 9: Net Sales Change and Forex Impact (Reported Segments)
Net Sales Change and Forex Impact (Reported Segments) Forex Rate* USD EUR GBP RMB TWD (Million yen) Local Currency Basis Forex Impact FY3/20 1H 110.04 124.31 142.41 16.19 3.54 FY3/21 1H 108.27 119.28 136.55 15.38 3.60 *FY end of overseas subsidiaries is December 31,820 ・Forex impact was slight -8,50
Slide 10: Net Sales and Operating Profit of Sporting Goods Division: Japan
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan Net Sales (-41.4% Y/Y) (Million yen) ・Domestic Sales - Margin of decline improved from FY3/21 1Q due to recovery in sales after the state of emergency declaration was relaxed ▻ School sports club demand recovered due
Slide 11: Net Sales and Operating Profit of Sporting Goods Division: North America
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) North America Forex Rate FY3/19 1H FY3/20 1H FY3/21 1H (Million yen) USD 108.67 110.04 108.27 ※Jan-Jun Net Sales (-15.4% Y/Y) ・From mid-March to mid-May, almost all retail stores and sports facilities closed or cut operati
Slide 12: Net Sales and Operating Profit of Sporting Goods Division: Europe
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Europe Forex Rate FY3/19 FY3/20 FY3/21 1H 1H 1H (Million yen) EUR 131.64 124.31 119.28 GBP 149.71 142.41 136.55 ※Jan-Jun Net Sales (-25.9% Y/Y) ・From mid-March, almost all retail stores and sports facilities closed or cut
Slide 13: Net Sales and Operating Profit of Sporting Goods Division: Asia
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Asia Forex FY3/19 FY3/20 FY3/21 (Million yen) Rate RMB 1H 17.08 1H 16.19 1H 15.38 Net Sales (-7.5% Y/Y) TWD 3.67 3.54 3.60 ・China ※Jan-Jun - Badminton sales mainly recovered ▻ Feb：Almost all retail stores and facilities cl
Slide 14: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories FY3/21 1H (Million yen) Sales Japan Y/Y Overseas Y/Y Total Y/Y Composition Badminton 2,600 -2,758 -51.5% 8,740 -3,546 -28.9% 11,340 -6,305 -35.7% 51.4% （Overseas sales composition: Y/Y) (77.1%: +7.5pt) Tennis 1,915 -870 -31.2% 1,070 -51 -4.6% 2,985 -921 -2
Slide 15: Forecasts for FY3/21
Forecasts for FY3/21 ■ Forecasts for FY3/21 remain unchanged Forex FY3/20 FY3/21 1H FY3/21 Rate (Results) (Results) (Forecasts) ・Recovery in badminton sales to require more time than expected USD 109.04 108.27 110 because of numerous areas where COVID-19 conditions have not EUR 122.06 119.28 120 imp
Slide 16: About China: Strengthen Direct Communication with Customers
About China： Strengthen Direct Communication with Customers ■Strengthen Online Flagship Shop ←Post about opening of WeChat mall flagship shop ・Opened flagship shop on JD and WeChat malls on June 1st ▻ Generated buzz through active ad posts, open campaigns on SNS for Chinese large online sales campai
Slide 17: Changes in Sports Environment and People's Activities
Changes in Sports Environment and People’s Activities Changes in Sports Environment Our Responses and People’s Activities Cancellation of many sports tournaments Plan many local small tournaments １ ▻ Decline in opportunities to play sports and events for each sport ▻ Decrease in motivation Rising aw
Slide 18: Responses to Changes in Sports Environment and People's Activities
Responses to Changes in Sports Environment and People’s Activities ■Boost Resumption of Sports Activities and Health Promotion Globally ▻ Implemented more than 1,000 small tournaments and events globally (Jun-Oct) ▻ Implemented “new normal” measures for tournaments to prevent COVID-19 infection ↑Bad
Slide 19: Responses to Changes in Sports Environment and People's Activities
Responses to Changes in Sports Environment and People’s Activities ■ Develop Products, Distribute Video Contents to Cultivate Outdoor Badminton Demand ▻ Launched sports facemasks using our original “Very Cool” apparel material ▻ Launched yellow colored nylon shuttlecocks to improve visibility outdoo
Slide 20: Responses to Changes in Sports Environment and People's Activities
Responses to Changes in Sports Environment and People’s Activities ■Enhance the Global Recognition of the Yonex Tennis Brand ▻ Distributed globally video content featuring US Open Champion Naomi Osaka just after her victory in September ▻ “YONEX BRANDOGRAPHY” video highlighting “monozukuri” or craft
Slide 21: Reference Information
ove’ YONEX Reference Information
Slide 22: Net Sales (Reported Segments)
Net Sales (Reported Segments) (Million yen) FY3/17 1H FY3/18 1H FY3/19 1H FY3/20 1H FY3/21 1H Japan 20,054 20,632 19,697 20,550 12,043 North America 897 971 1,081 1,091 923 Europe 1,186 1,200 1,225 1,179 873 Asia 8,854 9,087 8,247 8,659 8,005 Sports Facilities 338 341 333 339 247 Total 31,330 32,232
Slide 23: Region Sales by Destination
Region Sales by Destination (Million yen) FY3/17 1H FY3/18 1H FY3/19 1H FY3/20 1H FY3/21 1H Japan 15,708 16,272 15,452 15,934 9,648 Overseas 15,621 15,960 15,132 15,886 12,444 North America 897 971 1,081 1,091 923 Europe 1,983 2,047 2,055 1,887 1,567 Asia 12,458 12,647 11,705 12,647 9,778 Others 282
Slide 24: 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