Roland Corporation · TSE:7944
Roland — Q1 2024 Earnings Presentation
23 slides from Roland's earnings presentation, May 9, 2024
Slide 1: Financial Results Highlights FY12/2024 Q1
Financial Results Highlights FY12/2024 Q1 May 9, 2024 Roland Corporation TSE Prime: 7944 『LX-9』 Digital Piano
Slide 2: Executive summary
Executive summary ⚫ As expected, softer sell-in due to adjustments in Dealer inventories, etc., but this has already been factored into our budget. ⚫ Both sales and profits exceeded the internal plan for Q1. ⚫ New product development is progressing well. ⚫ Although there are uncertainties in demand
Slide 3: FY12/2024 Q1 Results, Forecast, Supplemental Information
1 FY12/2024 Q1 Results 2 FY12/2024 Forecast 3 Supplemental Information
Slide 4: FY12/2024 Q1 Results
1 FY12/2024 Q1 Results 2 FY12/2024 Forecast 3 Supplemental Information
Slide 5: Q1 Financial Results Highlights
FY12/2024 Q1 Financial Results Highlights Sales • Rebound from aggressive sell-in in Q4 of the previous year aimed at 22.0bn improving balance sheet health, but within our expectations (YoY：-3.4%) Operating Profit • YoY decrease in profit due to volume decline is within expectations 1.5bn • Normaliz
Slide 6: Consolidated Financial Forecast
FY12/2024 Q1 Financial Results Consolidated Financial Forecast ⚫ Gross profit margin improved by 1.6pt from Q4 of the previous year (3M: 40.9%) FY12/2023 Q11 FY12/2024 Q12 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 22,861 100.0% 22,083 100.0% -3.4% Gross Profit 9,748 42.6% 9,392 42.5%
Slide 7: Sales by Category
FY12/2024 Q1 Financial Results Sales by Category ⚫ The main reason for the YoY decline excluding FX in the major categories was the impact of dealer inventory adjustments, which was in line with internal assumptions. ⚫ (vs. Q1 Plan) Keyboards:○, Percussion & Wind:○, Guitar-related:△, Creation-relate
Slide 8: Sales by Region
FY12/2024 Q1 Financial Results Sales by Region ⚫ The main reason for the YoY decline excluding FX in the major categories was the impact of dealer inventory adjustments, which was in line with internal assumptions. ⚫ (vs. Q1 Plan) Japan:△, North America:△, Europe:○, China:○, Emerging countries: ○ (J
Slide 9: Consolidated Operating Profit
FY12/2024 Q1 Financial Results Consolidated Operating Profit Changes (vs Previous year) Factors Sales Volume change (JPY bn) Selling Price / Cost ratio change • Sales Volume SG&A change ✓ Rebound from aggressive sell-in in Q4 of the year FX impact (Dealer inventory has been adjusted) • Selling Price
Slide 10: Topics: Major new products and services announced in the first quarter
FY12/2024 Q1 Financial Results Topics: Major new products and services announced in the first quarter Creation-related equipment & services Stage Pianos Roland Cloud ⚫ Reasonably priced stage piano with expressive sound and playability ⚫ In collaboration with Melodics , the acclaimed casual music ⚫
Slide 11: Topics: Major new products and services announced in the first quarter
FY12/2024 Q1 Financial Results Topics: Major new products and services announced in the first quarter Keyboards Home Piano Portable Keyboard ⚫ Equipped with the latest modeling sound source completely ⚫ Full-scale Re-entry into the Portable Keyboard Market redesigned from the ground up from the prev
Slide 12: Topics: Major new products and services announced in the first quarter
FY12/2024 Q1 Financial Results Topics: Major new products and services announced in the first quarter Guitar-related equipment Others Vocal Effectors ⚫ Vocal effect pedal with full range of effects and harmony Roland Corporation and Universal Music Group Form functions to bring more expressive power
Slide 13: FY12/2024 Forecast
1 FY12/2024 Q1 Results 2 FY12/2024 Forecast 3 Supplemental Information
Slide 14: No change in 1H and Full-year Guidance
FY12/2024 Full-Year Forecast No change in 1H and Full-year Guidance Q1 Outlook and Strategy for Q2 and Beyond Sell-thru ⚫ Slightly weaker than expected ⚫ Gradual recovery due to new product (mainly U.S, Japan) launches and progress in dealer inventory adjustments ⚫ Weakness due to Dealer inventory ⚫
Slide 15: Sales and Profit Forecasts for the 1st Half and the 2nd Half of the Year
FY12/2024 Full-Year Forecast Sales and Profit Forecasts for the 1st Half and the 2nd Half of the Year (No Change) ⚫ Some uncertainties about demand in major countries, but no major trend changes in the near term ⚫ No change in 1H and Full-year forecasts 1st Half 2nd Half Full-Year (JPY) Sales 45.1bn
Slide 16: Supplemental Information
1 FY12/2024 Q1 Results 2 FY12/2024 Forecast 3 Supplemental Information 16
Slide 17: Consolidated Financial Forecast (Disclosed on 2/14/2024)
Supplemental Information Consolidated Financial Forecast (Disclosed on 2/14/2024) FY12/20231 FY12/20242 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 102,445 100.0% 99,900 100.0% -2.5% Gross Profit 43,932 42.9% 44,600 44.6% +1.5% SG＆A 32,060 31.3% 33,200 33.2% +3.6% Operating Profit 11,87
Slide 18: First Half Forecast (Disclosed on 2/14/2024)
Supplemental Information First Half Forecast (Disclosed on 2/14/2024) FY12/2023 First Half1 FY12/2024 First Half2 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 46,096 100.0% 45,100 100.0% -2.2% Gross Profit 19,772 42.9% 19,700 43.7% -0.4% SG＆A 15,516 33.7% 16,400 36.4% +5.7% Operating Pro
Slide 19: Second Half Forecast (Disclosed on 2/14/2024)
Supplemental Information Second Half Forecast (Disclosed on 2/14/2024) FY12/2023 Second Half1 FY12/2024 Second Half2 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 56,349 100.0% 54,800 100.0% -2.7% Gross Profit 24,159 42.9% 24,900 45.4% +3.1% SG＆A 16,544 29.4% 16,800 30.7% +1.5% Operating
Slide 20: Sales Forecast by Category (Disclosed on 2/14/2024)
Supplemental Information Sales Forecast by Category (Disclosed on 2/14/2024) (JPY mn) Keyboards Perc. & Wind Guitar-related Creation-related Video & Pro Audio Others Total -6.7% -1.8% +0.7% +4.2% -9.2% -16.0% -2.5% YoY1 (-3.7%) (+1.3%) (+3.7%) (+7.4%) (-7.1%) (-13.6%) (+0.5%) 27,546 29,342 28,800 25
Slide 21: Sales Forecast by Region (Disclosed on 2/14/2024)
Supplemental Information Sales Forecast by Region (Disclosed on 2/14/2024) (JPY mn) Japan North America Europe China Others Total YoY1 -2.0% -1.6% -5.9% -4.5% +2.8% -2.5% (-2.0%) (+1.4%) (-2.2%) (-1.4%) (+6.4%) (+0.5%) 38,920 38,300 29,663 27,900 15,372 15,800 9,693 9,500 8,796 8,400 2023 2024 2023
Slide 22: Key Consolidated Financials
Supplemental information Key Consolidated Financials FY2023 FY2024 As of Dec. As of Mar. (JPY mn) (JPY mn) Q1 Q1 31, 2023 31, 2024 Net sales 22,861 22,083 Cash and deposits 12,883 12,259 Gross profit 9,748 9,392 Notes and accounts receivable - trade 13,805 11,484 Selling, general and Inventories 30,
Slide 23: 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