Slide 1: Financial Results Highlights FY12/2024 Q3
Financial Results Highlights FY12/2024 Q3 November 7, 2023 Roland Corporation 『V-Drums 7 Series』
Slide 2: Executive Summary
Executive Summary ⚫ Considering market conditions and earnings progress, we lowered our full- year earnings forecast ⚫ While price competition continues, we are working to maintain and improve our brand value by promoting price optimization. The situation was mostly normalized in Q3 ⚫ With an eye on
Slide 3: Agenda
1 FY12/2024 Q3 Results 2 FY12/2024 Forecast (Full Year) 3 Supplemental Information
Slide 4: Q3 Results
1 FY12/2024 Q3 Results 2 FY12/2024 Forecast (Full Year) 3 Supplemental Information
Slide 5: Q3 Results Highlights
FY12/2024 Q3 Results Highlights (JPY) Sales • Recovery of customer demand is in process 69.6bn • Growth was particularly sluggish in July and August but has been (YoY: -2.5%) recovering since September. Operating Profit • The large decrease in sales volume had a significant impact. • Unit selling pr
Slide 6: Consolidated Financial Results (Q3 YTD)
FY12/2024 Q3 Results Consolidated Financial Results (Q3 YTD) ⚫ See Supplementary Materials (p.25) for the July-September period (3 months) results. FY12/2023 Q3 YTD1 FY12/2024 Q3 YTD2 (JPY mn) Actual % of Sales Actual % of Sales YoY Sales 71,410 100.0% 69,611 100.0% -2.5% Gross Profit 31,225 43.7% 3
Slide 7: Sales by Category (Q3 YTD)
FY12/2024 Q3 Results Sales by Category (Q3 YTD) ⚫ The main reasons for the real YoY decline in the major categories were dealer inventory adjustments in Q1-Q2 and sluggish customer demand. ⚫ In the digital piano, sales in regions other than China have bottomed out. ⚫ In the electronic drums, althoug
Slide 8: Sales by Region (Q3 YTD)
FY12/2024 Q3 Results Sales by Region (Q3 YTD) ⚫ The main reasons for the real YoY decline in the major categories were dealer inventory adjustments in Q1-Q2 and sluggish customer demand. ⚫ Demand declined markedly during the Olympics, especially in Europe, but since September, demand seems to have b
Slide 9: Consolidated Operating Profit (Q3 YTD)
FY12/2024 Q3 Results Consolidated Operating Profit (Q3 YTD) Changes (vs Previous year) Factors (JPY bn) Sales Volume change Selling Price / Cost ratio change • Sales Volume SG&A change ✓ Reactionary decline from aggressive sell-in in FX impact Q4 of the previous year ✓ High inflation, competitive im
Slide 10: Topics: Major new products and services announced in the 3rd quarter
FY12/2024 Q3 Results Topics： Major new products and services announced in the 3rd quarter Percussion & Winds ⚫ V-Drums adds innovative new series, "V-Drums Quiet Design” ⚫ The quietest electronic drum in Roland's history, a completely new design for a variety of housing conditions ⚫ 75% reduction of
Slide 11: Topics: Major new products and services announced in the 3rd quarter
FY12/2024 Q3 Results Topics： Major new products and services announced in the 3rd quarter Percussion & Winds V-Drums ⚫ After an 8-year absence, the flagship sound module has been redesigned and three drum kits have been released ⚫ The snare uses a newly developed digital snare, enabling more delicat
Slide 12: Topics: Major new products and services announced in the 3rd quarter
FY12/2024 Q3 Results Topics： Major new products and services announced in the 3rd quarter Creation-related products & Services Synthesizer Roland Cloud ⚫ The JUNO-D, a mainstay product for band and keyboard players, has ⚫ The tape echo “RE-201”, which was released in 1974 and is known been remodeled
Slide 13: Topics: Major new products and services announced in the 3rd quarter
FY12/2024 Q3 Results Topics： Major new products and services announced in the 3rd quarter Creation-related products & Services Guitar-related products Guitar Effector Stage Piano ⚫ The SDE-3000, a digital delay masterpiece that has ⚫ Flagship and portable models of the fascinated many people since i
Slide 14: Forecast (Full Year)
1 FY12/2024 Q3 Results 2 FY12/2024 Forecast (Full Year) 3 Supplemental Information
Slide 15: Consolidated Forecast
FY12/2024 Forecast (Full Year) Consolidated Forecast ⚫ Revised full-year forecasts downward considering market conditions and earnings progress. FY12/20231 FY12/20242 FY12/20243 (JPY mn) Actual % of Sales Forecast % of Sales YoY Init. Forecast Init. vs Rev. Sales 102,445 100.0% 99,900 100.0% -2.5% 9
Slide 16: Sales Forecast by Category
FY12/2024 Forecast (Full Year) Sales Forecast by Category ⚫ In the keyboard, percussion and wind, and other categories, sales were in line with or slightly above the plan due to the impact of foreign exchange rates ⚫ In real terms, sales in all categories were down from the previous year (JPY mn) Ke
Slide 17: Sales Forecast by Region
FY12/2024 Forecast (Full Year) Sales Forecast by Region ⚫ Due to the exchange rates, revenue in Europe and Others regions increased compared to the plan ⚫ In real terms, revenue decreased compared to the previous year in all regions. (JPY mn) Japan North America Europe China Others Total -6.1% -3.4%
Slide 18: Operating Profit Forecast
FY12/2024 Forecast (Full Year) Operating Profit Forecast Changes (vs Previous year) Point Sales Volume change (JPY bn) • Sales Volume Decrease due to rebound from aggressive sell-in in Q4 last year, Selling Price / Cost ratio change high inflation, competition, etc. SG&A change FX impact • Selling P
Slide 19: Q4 Outlook (October to December)
FY12/2024 Forecast (Full Year) Q4 Outlook（October to December） ⚫ Sales were affected by aggressive sell-in in Q4 of the previous fiscal year, but are gradually recovering ⚫ In Operating Profit, selling price / cost ratio is expected to improve due to price optimization. SG&A expenses are expected to
Slide 20: Shareholder Return
FY12/2024 Forecast (Full Year) Shareholder Return ⚫ Although the full-year earnings forecast has been revised downward, the year-end dividend forecast is maintained because there are no financial concerns and future growth is possible. Dividend Per Share (Forecast) Dividends and Dividend Payout Rati
Slide 21: Outlook for FY2025 ①
FY12/2024 Forecast (Full Year) Outlook for FY2025 ① ⚫ As of Q3 2024, market issues still remain, but our issues are steadily resolved as planned ⚫ Market issues are also expected to be gradually resolved Post-Covid issues in the business environment Resolved in Market will be resolved in Reactionary
Slide 22: Outlook for FY2025 ②
FY12/2024 Forecast (Full Year) Outlook for FY2025 ② ⚫ The US market, the largest market, is expected to enter a phase of gradual re-growth, as the adjustment period following the special demand for coronavirus-related products comes to an end and inflation slows down ⚫ During the same period, we wil
Slide 23: Outlook for FY2025 ③
FY12/2024 Forecast (Full Year) Outlook for FY2025 ③ ⚫ Aiming for market growth +α through market recovery and the creation of demand through new products (excluding the impact of exchange rates) Growth image for FY2025 (YoY / woFX) Keyboards ↑ North America ↑ Perc. & Wind ↑ Europe ↑ Guitar ↑ Japan ↑
Slide 24: Supplemental Information
1 FY12/2024 Q3 Results 2 FY12/2024 Forecast (Full Year) 3 Supplemental Information 24
Slide 25: Consolidated Financial Results (July-September period, 3 months)
Supplemental information Consolidated Financial Results（July-September period, 3 months) FY12/2023 Q3 3M1 FY12/2024 Q3 3M2 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 25,314 100.0% 22,906 100.0% -9.5% Gross Profit 11,453 45.2% 10,062 43.9% -12.1% SG＆A 7,965 31.5% 8,008 35.0% +0.5% Opera
Slide 26: Sales by Category (July-September period, 3 months)
Supplemental information Sales by Category （July-September period, 3 months) (JPY mn) Keyboards Perc. & Wind Guitar-related Creation-related Video & Pro Audio Others Total +4.8% -13.2% -24.4% +4.4% -17.6% -4.2% -9.5% YoY1 (+1.9%) (-16.0%) (-26.5%) (+1.6%) (-19.5%) (-5.7%) (-12.1%) 7,350 6,537 6,849
Slide 27: Sales by Region (July-September period, 3 months)
Supplemental information Sales by Region （July-September period, 3 months) (JPY mn) Japan North America Europe China Others Total -3.9% -12.7% -8.6% -19.9% -1.3% -9.5% YoY1 (-3.9%) (-15.4%) (-12.3%) (-23.2%) (-2.5%) (-12.1%) 10,506 9,177 6,967 6,368 4,034 3,983 2,048 1,969 1,756 1,407 2023Q3 2024Q3
Slide 28: Key Consolidated Financials
Supplemental information Key Consolidated Financials (JPY mn) FY2023 FY2024 (単位: 百万円) As of Dec. 31, As of Sep. 30, Q3 Q3 2023 2024 Net sales 71,410 69,611 (JPY mn) 12,883 10,889 Gross profit 31,225 30,245 Cash and deposits 13,805 11,815 Selling, general and Notes and accounts receivable - trade 30,
Slide 29: 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