Yonex Co., Ltd. · TSE:7906
Yonex — H1 FY3/19 Earnings Presentation
20 slides from Yonex's earnings presentation, Nov 22, 2018
Slide 1: Financial Results 1st Half of Fiscal Year Ending March 31, 2019
Financial Results 1st Half of Fiscal Year Ending March 31, 2019 YONEX CO., LTD. (Tokyo Stock Exchange Code: 7906) November 22, 2018
Slide 2: 1H Key Performance Highlights
1H Key Performance Highlights □Net Sales Decreased by 5.1% YY to JPY 30.5bn • Japan sales declined due to delayed launch of some products and contraction in the sports market caused by declining birthrates, but margin of decline improved from FY3/19 1Q • Tennis sales in Europe and North America incr
Slide 3: Consolidated Financial Results
Consolidated Financial Results Gross and Operating Profits Declined YY due to Lower Sales, Net Sales Fell Shy of Original Forecast, but Profits Forecasts Were Achieved Compared FY3/19 1H (Million Yen) FY3/18 1H FY3/19 1H YY Change Original Forecasts with Forecasts Net sales 32,232 30,584 -1,648 -5.1
Slide 4: Operating Profit Changes
Operating Profit Changes Large Impact of Gross Profit Decline from Lower Net Sales, but SGA Decreased due to Lower Advertising Expenses mainly in Asia Gross Profit (Negative Impact) SGA (Negative Impact) SGA (Positive Impact) (Million yen) 1,871 GP Margin Increase 41.8%⇒43.2% （+1.4pt） -284 +11 +51 1
Slide 5: Segment Sales Information
Segment Sales Information Steady Growth in North America, Inventory Adjustments in China Caused Asia to Decline (Million yen) FY3/18 1H FY3/19 1H YY Change Japan 20,632 19,697 -4.5% North America 971 1,081 +11.3% Sporting Goods Europe 1,200 1,225 +2.1% Division Asia 9,087 8,247 -9.2% Total 31,891 30
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, Europe Increased Slightly Local Currency Basis (+) Forex Impact (Positive) Forex rate USD EUR GBP RMB TWD Local Currency Basis (-) Forex Impact (Negative) FY3/18 1H* 11
Slide 7: Net Sales and Operating Profit of Sporting Goods Division (Japan, North America)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segment) Japan North America Net Sales Operating Profit (Million yen) FY3/17 FY3/18 FY3/19 Forex rate 1H 1H 1H 20,632 USD 111.80 112.37 108.67 20,054 19,697 *Jan-Jun 1,081 971 897 1,372 851 777 56 70 7 FY3/17 FY3/18 FY3/19 FY3/17 FY
Slide 8: Net Sales and Operating Profit of Sporting Goods Division (Europe, Asia)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segment) Europe Asia Net Sales Operating Profit (Million yen) FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 Forex rate Forex rate 1H 1H 1H 1H 1H 1H EUR 124.61 121.62 131.64 RMB 17.06 16.38 17.08 GBP 160.19 141.39 149.71 8,854 9,087 TWD
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 1H YY Change Composition Badminton 16,726 54.7% -6.4% Tennis 4,050 13.2% -2.2% Sport
Slide 10: Consolidated Net Sales by Sports Categories: Badminton, Tennis
Consolidated Net Sales by Sports Categories Badminton Tennis Japan Overseas (Million yen) 17,451 17,871 16,726 12,435 12,505 11,552 4,109 4,142 4,050 870 1,064 1,255 3,239 3,078 2,795 5,015 5,366 5,174 FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 1H 1H 1H 1H 1H 1H Overseas Sales Composition：69.1% Overs
Slide 11: Consolidated Net Sales by Sports Categories: Golf, Others
Consolidated Net Sales by Sports Categories Golf Others Japan Overseas (Including apparel and accessories) (Million yen) 8,930 9,360 8,902 2,174 2,214 2,088 572 499 516 140 176 236 6,756 7,145 6,814 358 339 335 FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 1H 1H 1H 1H 1H 1H Overseas Sales Composition：41
Slide 12: About China
About China China’s Inventory Adjustment Continued during the 1H ・ Inventory adjustments continued, but progress achieved varies by product ・ Adjustments will continue to be made for both existing and new products Opened Our Flagship Store on An E-Commerce Platform (Since Apr 2018) ・ Leverage our on
Slide 13: Consolidated Earnings Forecasts for Fiscal Year March 2019
Consolidated Earnings Forecasts for Fiscal Year March 2019 FY3/18 FY3/19 (Million yen) YY Change Results Forecasts Net Sales 62,188 64,500 +3.7% Operating Profit 2,925 3,000 +2.6% Operating Profit Margin 4.7% 4.7% -0.0pt Ordinary Profit 2,858 3,000 +4.9% Ordinary Profit Margin 4.6% 4.7% +0.1pt Net P
Slide 14: Tennis: YONEX was No. 1 Racquet Brand in US Open Junior, Next Gen ATP Finals
Tennis: YONEX was No. 1 Racquet Brand in US Open Junior (Girls), Next Gen ATP Finals, Others Yonex racquets were used by a large number of players in major tournaments, and achieved No. 1 place in four tournaments recently* ◎US Open Junior 2018 (Aug 27-Sep 9 , USA) Girl’s Singles Main Draw Used by 3
Slide 15: Badminton: Kento Momota is Newly Ranked Men's World No. 1
Badminton: Kento Momota is Newly Ranked Men’s World No. 1 Kento Momota (JPN) Racquet: ASTROX99, String: AEROBITE Achieved World No. 1 Singles Ranking (September 27, 2018) The first Japanese man to ever obtain badminton’s top global ranking Career Highlights • BLIBLI Indonesia Open (Jul 3-8, Indonesi
Slide 16: Appendix
Appendix
Slide 17: Consolidated Net Sales (Japan & Overseas)
Consolidated Net Sales (Japan & Overseas) Japan Overseas (Million yen) 31,330 32,232 30,584 25,218 23,788 15,960 15,621 15,132 49.9% 49.5% 9,401 49.5% 9,433 37.3% Overseas Sales 39.7% Composition 14,354 15,817 15,708 16,272 15,452 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 1H 1H 1H 1H 1H *”Overseas” include
Slide 18: Net Sales (Reported Segments)
Net Sales (Reported Segments) Japan (Export, Intermediary Sales) North America (Subsidiary) Europe (Subsidiary) Asia (Subsidiary) (Million yen) Sports Facilities 31,330 32,232 341 30,584 338 333 23,788 25,218 328 8,854 9,087 316 8,247 942 2,593 *1 1,220 752 1,209 1,186 1,200 971 1,225 999 897 1,081
Slide 19: Net Sales (Unreported Regional Data)
Net Sales (Unreported Regional Data) Japan North America Europe Asia Others (Million yen) 31,330 32,232 294 30,584 282 289 25,218 23,788 243 12,458 12,647 164 11,705 6,088 6,454 2,070 1,983 2,047 2,055 2,061 999 897 971 1,081 752 14,354 15,817 15,708 16,272 15,452 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19
Slide 20: 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