Slide 1: Financial Results Fiscal Year Ending March 31, 2021
Financial Results Fiscal Year Ending March 31, 2021 YONEX CO., LTD. (Tokyo Stock Exchange Code: 7906) May 18, 2021
Slide 2: 1. Financial results for FY3/21
１．Financial results for FY3/21
Slide 3: Key Performance Highlights
Key Performance Highlights □Net Sales Declined by 16.8% Y/Y to JPY51.5bn ・The impact of the COVID-19 pandemic was significant in 1Q. ・China recovered relatively early, Japan and North America gradually recovered. ・We focused on encouraging people to restart sports activities and promoting people’s h
Slide 4: Impact of COVID-19 upon Net Sales by Reported Segments
Impact of COVID-19 upon Net Sales by Reported Segments FY3/21 for Consolidated Accounts 2020 2021 Segment Country/Region Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Japan Japan Export & Intermediary Asia China Taiwan North USA America CANADA Europe Germany UK *Consolidated accounts a
Slide 5: Consolidated Financial Results
Consolidated Financial Results ■Sales and Profits Exceeded Our Forecasts ・Sales exceeded our estimates due to the limited impact of the state of emergency in Japan. ・Gross profit exceeded our estimates, and SGA fell below our estimates due to the cancellation of international tournaments. FY3/21 (Mi
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets (Million yen) End FY3/20 End FY3/21 Y/Y Asset Current assets 33,022 34,939 +1,917 Cash and deposits 10,977 13,271 +2,293 Net Cash 10,302 million yen Notes and accounts （＋3,139million yen Y/Y） 11,315 11,181 -134 receivable-trade ・Cash reserves are secured to prepare for In
Slide 7: Consolidated Cash Flow
Consolidated Cash Flow (Million yen) -1,067 -1,281 13,164 +4,537 Investing activities +47 10,927 Financial activities Others Operating activities Maintenance, update of plants, others Restraint in inventory Repayment of loan, acquisitions, others others Start End FY3/21 FY3/21 7
Slide 8: Operating Profit Changes
Operating Profit Changes Influence of Decline in Gross Profit Strong → due to lower sales and production adjustments at domestic factories in 1Q (Million yen) 2,421 Gross Profit SGA -3,540（-14.9%） Negative Impact Positive Impact 1,032 -135 (-10.7%) -627 （-9.7%） -4,929 （-18.8%） R&D Others -2,133 (-22
Slide 9: Reported Segment Information
Reported Segment Information (Million yen) FY3/20 FY3/21 Y/Y Net sales 38,119 29,009 -23.9％ Japan Sporting Goods Division Operating profit 448 -1,283 ー North Net Sales 2,212 1,945 -12.1％ America Operating profit -50 7 ー Net sales 2,286 1,901 -16.9％ Europe Operating profit -73 -121 ー Net sales 18,835
Slide 10: 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) FY3/20 109.04 122.06 139.25 15.77 3.52 Local Currency Basis Forex Impact FY3/21 106.81 121.80 137.07 15.47 3.61 *FY end of overseas subsidiaries is December 61,967 ・Forex impact was slight -9,110 ・Inf
Slide 11: Net Sales and Operating Profit of Sporting Goods Division: Japan
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan (Million yen) Net Sales （-23.9% Y/Y） ・Domestic Sales: Strong impact of sales decline in 1Q - People gradually restarted activities after the state of emergency was lifted. ▻ Provided opportunities to play sports and
Slide 12: 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 USD FY3/20 FY3/21 110.42 109.04 106.81 (Million yen) *Jan-Dec Net Sales （-12.1% Y/Y） ・Impacted by the COVID-19 from March 2020 ・Tennis sales, especially racquets, grew from May 2,205 2,212 -
Slide 13: 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 EUR 130.42 122.06 121.80 (Million yen) GBP 147.47 139.25 137.07 *Jan-Dec Net Sales（-16.9% Y/Y） ・Germany: Sales decline despite a gradual recovery trend - Impacted by the COVID-19 from
Slide 14: Net Sales and Operating Profit of Sporting Goods Division: Asia
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Asia Forex rate FY3/19 FY3/20 FY3/21 RMB 16.71 15.77 15.47 (Million yen) TWD 3.65 3.52 3.61 Net Sales（-3.0% Y/Y） *Jan-Dec ・China: Recovered to the same level as the previous year - Almost all retail stores and facilities w
Slide 15: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories FY3/21 Sales (Million yen) Japan Y/Y Overseas Y/Y Total Y/Y Composition Sporting Goods Division Badminton 7,319 -2,957 -28.8% 21,516 -3,453 -13.8% 28,836 -6,410 -18.2％ 55.9% （Overseas sales composition: Y/Y) (74.6%: +3.8%pt) Tennis 4,785 -1,149 -19.4% 2,62
Slide 16: Forecasts for FY3/22
Forecasts for FY3/22 ■The impact of COVID-19 is expected to diminish as people’s activities restart with the widening of vaccinations, although the COVID-19 situation remains severe in some areas. ■In FY3/22, our eyes are set on the levels of FY3/20, before the COVID-19 pandemic. 【Earnings】 ・Net sal
Slide 17: Consolidated Earnings Forecasts for FY3/22
Consolidated Earnings Forecasts for FY3/22 (Million yen) FY3/21 1H FY3/21 1H FY3/22 1H VS VS Results Results Forecasts FY3/20 FY3/21 FY3/20 FY3/21 FY3/22 Net Sales 31,820 22,093 31,500 -1.0% +42.6％ Forex rate Results Results Forecasts USD 109.04 106.81 105 Operating Profit 1,711 -215 1,300 -24.1% ―
Slide 18: 2. Our Efforts to Achieve Medium- to Long-Term Growth
2. Our Efforts to Achieve Medium- to Long-Term Growth
Slide 19: Keep Growing
75th Anniversary 1946 2021 Keep Growing 19
Slide 20: To become a Truly Global Company Needed by Many People
To become a Truly Global Company Needed by Many People Overseas Sales Ratio FY3/10 FY3/20 +23.5%pt 29.1% 52.6% ※55.8% for FY3/21 due to decrease in domestic sales caused by the COVID-19 pandemic. Raise brand recognition and grow the Yonex fan base to become a truly global company 20
Slide 21: Marketing Investments
To Grow the Yonex Fan Base Advertising Expenses Tournament sponsorship and athlete contracts, others Expenses to support Marketing Investments sports and athletes for growth of sales and profits in medium- to long-term 21
Slide 22: Crucial Point in Marketing Investments
Crucial Point in Marketing Investments Expand the market by spreading and developing sports Sponsorship Athlete Contract Support for organizing ・ Supporting athletes' performance tournaments and events ・ Technical innovation by leveraging the feedback on our products Provide opportunities to play sp
Slide 23: Priority Areas for 2021
Priority Areas for 2021 ① Grow the badminton business in Asia, with a focus on China ② Raise brand recognition and strengthen marketing for the tennis business ③ Promote DX (Digital Transformation) 23
Slide 24: Partnership with Chinese National Badminton Team
Partnership with Chinese National Badminton Team Live streaming of press interview About 5.5 million viewers Press interview in Shanghai on March 3, 2021 24
Slide 25: History and Future of Chinese Business
History and Future of Chinese Business Future Back on the growth trend FY3/21 Recovered early despite being Net Sales Target of profit rate affected by the COVID-19 Double-digit Mid 10% growth FY3/18 Stagnation of distribution inventories Net Sales 16.8bn FY3/16 Shift from sales via agents to direct
Slide 26: Establishing a Foundation for Growth
Establishing a Foundation for Growth Unparalleled Craftmanship/ Technical Innovation Grass-roots sales promotion activities Enhance information dissemination /Expanding the market through online flagship shops and SNS (Racquet demonstrations, events etc.) 26
Slide 27: From Japan to Asia and the World
From Japan to Asia and the World Partnership with Malaysian National Badminton Team in April 2021 Growth in Asia Global expansion of the Yonex brand 27
Slide 28: Raise Brand Recognition and Strengthen Marketing for the Tennis Business
Raise Brand Recognition and Strengthen Marketing for the Tennis Business Grown to become a brand chosen by top athletes Australian Open VS 2016 Changes in the Usage Rate of Yonex Racquets 31% Junior Girl’s Singles +14%pt 27% 17% 19% Women’s Singles +14%pt 13% 13% 6% Junior Boy’s Singles +13%pt 2016
Slide 29: Towards Addressing the Next Challenges
Towards Addressing the Next Challenges ◎ Raise recognition amongst top athletes Badminton 55.9% △ Raise recognition amongst general players 51.5bn Consolidated Net Sales for Increase tennis sales Tennis FY3/21 14.4% Growth in North America, which is the largest market for our tennis business, is ess
Slide 30: History and Future of the Tennis Business in North America
History and Future of the Tennis Business in North America +300% Net sales focus ・Reconstruction of operating system VS FY3/14 Double-digit +200% ・Improvement in pricing structure ＋167% growth Expansion of sales network ・Number of stores +100% ▻Target a 40% Y/Y increase in FY3/21 ・Provide and increa
Slide 31: Promotion of DX (Digital Transformation)
Promotion of DX (Digital Transformation) Introduction of Digitalization of Introduction of ≪Phase≫ Use of online tools e-commerce work processes a new ERP system ・Our products are being ・Expense workflow system distributed to EC platforms was renewed in November 2018 Replacement of the ERP system ov
Slide 32: Yonex's Sustainability
Yonex’s Sustainability Company Philosophy: ”Contribute to the world through innovative technology and the highest quality products” Yonex’s Sustainability（Vision and Principles） Unparalleled Spread and development Human rights and craftmanship of global sports diversity Cooperation with all stakehol
Slide 33: Progress in Sustainability Efforts: Environment (E)
Progress in Sustainability Efforts: Environment (E) 【Subject】 Toward a carbon-free society 【Progress】 ■Setting of company-wide numerical targets for CO2 reductions ・The target was considered by combining the efforts of each sector; factory, development, and management. ・Consideration of numerical re
Slide 34: Progress in Sustainability Efforts: Social (S)
Progress in Sustainability Efforts: Social (Ｓ) 【Subject】 Diversity efforts to promote the advancement of women and global human resources 【Progress】 ■ Rate of Women in Managerial Positions *Manager or higher, on non consolidated basis ＜Goal＞ ＜New Goal＞ 30％ 15.3％ 30％ As of end of by2020 March, 2021 b
Slide 35: Progress in Sustainability Efforts: Governance (G)
Progress in Sustainability Efforts: Governance (Ｇ) 【Subject】 Enhancement of Corporate Governance 【Progress】 ■Implementing an effectiveness evaluation of the board of directors Through objective evaluation and analysis, we identify and solve issues to improve the functions of the board. ■Promoting di
Slide 36: Reference Information
ove’ YONEX Reference Information
Slide 37: Net Sales (Reported Segments)
Net Sales (Reported Segments) (Million yen) FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 Japan 39,130 39,606 38,742 38,119 29,009 North America 1,760 1,969 2,205 2,212 1,945 Europe 2,197 2,443 2,418 2,286 1,901 Asia 17,448 17,681 17,231 18,835 18,276 Sports Facilities 504 487 500 512 422 Total 61,042 62,188 6
Slide 38: Region Sales by Destination
Region Sales by Destination (Million yen) FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 Japan 30,770 31,199 29,990 29,350 22,766 Overseas 30,342 30,988 31,107 32,616 28,787 North America 1,761 1,969 2,205 2,212 1,945 Europe 3,672 3,996 3,877 3,760 3,131 Asia 24,365 24,378 24,488 26,009 23,181 Others 542 643 53
Slide 39: 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