Slide 1: Financial Results Fiscal Year Ending March 31, 2019
Financial Results Fiscal Year Ending March 31, 2019 YONEX CO., LTD. (Tokyo Stock Exchange Code : 7906) May 17, 2019
Slide 2: Agenda
1. Financial Results for FY3/19 2. Medium-Term Management Plan - Revisions and Progress 3. Appendix
Slide 3: 1. Financial Results for FY3/19
1. Financial Results for FY3/19
Slide 4: Key Performance Highlights
Key Performance Highlights □Net Sales Decreased by 1.8% YY to JPY 61bn • Domestic sales of badminton and tennis declined • Tennis sales in Europe and North America grew due to Team Yonex players’ strong performances • China sales improved in the second half, but decreased overall during the full yea
Slide 5: Consolidated Financial Results
Consolidated Financial Results FY3/19 Compared FY3/19 Compared (Million yen) FY3/18 FY3/19 YY Change Original with Revised with Forecasts Forecasts Forecasts*2 Forecasts Net Sales 62,188 61,097 -1,090 -1.8% 64,500 -5.3% 61,000 +0.2% Gross Profit 25,946 25,744 -201 -0.8% ― ― ― ― Gross Profit Margin 4
Slide 6: Consolidated Operating Profit Changes
Consolidated Operating Profit Changes (Million yen) Blue：Positive Impact Red：Negative Impact 2,925 Gross Profit Decrease -201 +71 ＋ -323 +242 2,482 Gross Profit +250 R&D SGA Increase Expenses Personnel Advertising Others Expenses Expenses GP Margin rose +0.4%pt (41.7%→42.1%) due to lower production
Slide 7: Segment Sales Information
Segment Sales Information (Million yen) FY3/18 FY3/19 YY Change Japan 39,606 38,742 -2.2% North America 1,969 2,205 +12.0% Sporting Goods Europe 2,443 2,418 -1.0% Division Asia 17,681 17,231 -2.5% Total 61,700 60,597 -1.8% Sports Facilities Division 487 500 +2.8% Total 62,188 61,097 -1.8% Japan : Ja
Slide 8: 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 FY3/18* 112.18 126.66 144.50 16.62 3.68 FY3/19* 110.42 130.42 147.47 16.71 3.65 * FY end of overseas subsidiaries is December. 62,188 -864 〈-2.2%〉 Local Currency Basis
Slide 9: Net Sales and Operating Profit of Sporting Goods Division: Japan
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan Net Sales (-2.2% YY) (Million yen) ・Domestic Badminton Sales - Sales of racquets and shoes decreased 39,130 39,606 38,742 ・Domestic Tennis Sales - Strong sales of newly designed racquets - Sales of shoes decreased -
Slide 10: 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 FY3/17 FY3/18 FY3/19 USD 108.84 112.18 110.42 (Million yen) *Jan-Dec Net Sales (+12.0% YY) ・Growth in badminton shoes sales 2,205 ・Tennis Sales 1,969 1,760 - Increased interest in the Yonex brand d
Slide 11: Net Sales and Operating Profit of Sporting Goods Division: Europe
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Europe Forex rate EUR FY3/17 120.32 FY3/18 126.66 FY3/19 130.42 (Million yen) GBP 147.72 144.50 147.47 *Jan-Dec Net Sales (-1.0% YY) ・Badminton sales decreased 2,443 2,418 ・Tennis Sales 2,197 - Increased interest in the Yo
Slide 12: Net Sales and Operating Profit of Sporting Goods Division: Asia
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Asia Forex rate FY3/17 FY3/18 FY3/19 RMB 16.36 16.62 16.71 (Million yen) TWD 3.36 3.68 3.65 *Jan-Dec Net Sales (-2.5% YY) ・China 17,448 17,681 17,231 - Effect of inventory adjustment declined - Gained public attention for
Slide 13: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Sales (Million yen) FY3/19 YY Change composition Badminton 34,925 -1.4% 57.2% Tennis 8,371 -0.6% 13.7% Sporting Goods Golf 1,092 -3.1% 1.8% Division Others 16,207 -3.1% 26.5% (Apparel and accessories) Total 60,597 -1.8% 99.2% Sports Facilities Division 500
Slide 14: Consolidated Net Sales by Sports Categories: Badminton and Tennis
Consolidated Net Sales by Sports Categories Badminton Tennis Japan Overseas (Million yen) 35,447 35,420 34,925 7,944 8,420 8,371 24,677 24,345 24,090 1,708 2,312 2,566 6,235 6,107 5,805 10,769 11,075 10,834 FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 Overseas Sales Composition : 69.0% (+0.3%pt YY) Ove
Slide 15: Consolidated Net Sales by Sports Categories: Golf and Others
Consolidated Net Sales by Sports Categories Golf Others Japan Overseas (Million yen) (Apparel and accessories) 16,086 16,732 16,207 3,654 3,920 4,054 1,060 1,127 1,092 302 410 396 12,432 12,812 12,153 757 717 696 FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 Overseas Sales Composition : 36.3% (-0.1%pt Y
Slide 16: Consolidated Earnings Forecasts for FY3/20
Consolidated Earnings Forecasts for FY3/20 FY3/19 1H FY3/19 FY3/20 1H FY3/20 (Million yen) YY Change YY Change Results Results Forecasts Forecasts Net Sales 30,584 61,097 31,500 +3.0% 63,500 +3.9% Operating Profit 1,728 2,482 1,400 -19.0% 2,500 +0.7% Operating Profit Margin 5.7% 4.1% 4.4% -1.3%pt 3.
Slide 17: 2. Medium-Term Management Plan - Revisions and Progress
2. Medium-Term Management Plan - Revisions and Progress
Slide 18: Quantitative Targets for FY3/21 (Revised)
Quantitative Targets for FY3/21 (Revised) FY3/21 Plans (Million yen) FY3/19 Change Results Original (A) Revised (B) (B-A) May 22, 2018 May 9, 2019 Net Sales 61,097 80,000 66,000 -14,000 Operating Profit 2,482 6,000 3,000 -3,000 Overseas Sales 50.9% 60% 53% -7% pt Ratio ROE 4.6% 9% 5% -4% pt 18
Slide 19: Reasons for Downward Revisions
Reasons for Downward Revisions Main Factors Net Sales: Sales in Asia, Mainly China, and Japan Segment Fall Shy of Forecasts (FY3/19 results) [China] ・Increased distribution level inventories, inventory Promote business by more accurately adjustments cause sales to fall shy of forecasts identifying a
Slide 20: 5 Basic Policies: Ongoing
To Achieve Targets 5 Basic Policies: Ongoing 1: Pursuing High Quality Manufacturing that Appeals to Customers 2: Raise Productivity and Quality, and Promote R&D through Joint Partnership with Academia 3: Promote Global Marketing Activities to Expand the Yonex Brand Globally 4: Expand Global Sales Ch
Slide 21: Basic Policy 1: Pursuing High Quality Manufacturing that Appeals to Customers
Basic Policy 1: Pursuing High Quality Manufacturing that Appeals to Customers Acquisition of ToyoZouki Co., Ltd. →R&D function for stringing machines acquired Progress Implement use of new carbon materials in each sports category → Yonex players’ outstanding performances using our innovative sportin
Slide 22: Basic Policy 2: Raise Productivity and Quality, and Promote R&D
Basic Policy 2: Raise Productivity and Quality, and Promote R&D through Joint Partnership with Academia Formed partnerships with academia to develop new materials and ergonomic technologies Progress Increased productivity by implementing factory automation Investments in AI and IoT technologies to p
Slide 23: Basic Policy 3: Promote Global Marketing Activities
Basic Policy 3: Promote Global Marketing Activities to Expand the Yonex Brand Globally Built global marketing network Progress Opened new showroom and fitting studio in Tokyo Began disseminating information from our China E-Commerce flagship store Ongoing, Create new services leveraging our showroom
Slide 24: Basic Policy 4: Expand Global Sales Channels and Fortify Supply Chain
Basic Policy 4: Expand Global Sales Channels and Fortify Supply Chain Management Expanded sales channel of tennis (Mainly North America) Progress Started to acquire inventory data from key accounts (China) Reviews of shoe suppliers and manufacturers Ongoing, Build global E-Commerce strategy Future S
Slide 25: Basic Policy 5: Accelerate Decision Making and Human Resources Development
Basic Policy 5: Accelerate Decision Making Process and Human Resources Development Empowerment of women → Women in management 13.3% (YY Change +2.1%pt) Progress Revisions to create a 5 business division organizational structure (To become effective June 25th) Empowerment of women → Target of growing
Slide 26: 3. Appendix
3. Appendix
Slide 27: Consolidated Net Sales (Japan and Overseas)
Consolidated Net Sales (Japan and Overseas) Japan Overseas (Million yen) 61,042 62,188 61,097 54,159 47,619 30,342 30,988 31,107 23,575 49.7% 49.8% 50.9% Overseas Sales 19,043 43.5% Composition 40.0% 28,576 30,584 30,700 31,199 29,990 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 *”Overseas” include exports an
Slide 28: Net Sales (Reported Segments)
Net Sales (Reported Segments) Japan (Exports and Intermediary Sales) North America (Subsidiary) Europe (Subsidiary) Asia (Subsidiary) Sports Facilities (Million yen) 62,188 61,097 61,042 54,159 504 487 500 47,619 491 17,448 17,681 17,231 1,610 463 10,640 2,422 2,468 2,197 2,443 2,418 1,619 1,981 1,7
Slide 29: Net Sales (Unreported Regional Data)
Net Sales (Unreported Regional Data) Japan North America Europe Asia Others (Million yen) 61,042 62,188 61,097 542 643 536 54,159 47,619 458 24,365 24,378 24,488 405 17,049 13,135 4,086 3,672 3,996 3,877 3,883 1,619 1,981 1,761 1,969 2,205 28,576 30,584 30,700 31,199 29,990 FY3/15 FY3/16 FY3/17 FY3/
Slide 30: 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