Roland Corporation · TSE:7944
Roland — Q1 FY2021 Earnings Presentation
29 slides from Roland's earnings presentation, May 7, 2021
Slide 1: Financial Results Highlights FY12/2021 1Q
Financial Results Highlights FY12/2021 1Q May 7, 2021 Roland Corporation Electronic drums that pursue an acoustic drum-like appearance with a strong presence and performance feel V-Drums “VAD Series”
Slide 2: Executive Summary
Executive Summary ⚫ FY12/2021 1Q Results exceeded our expectations ⚫ Revised up Full Year Forecast for FY12/2021 based on a close analysis of demand conditions and supply certainty ⚫ With the upward revision, expect to achieve our Mid-Term Plan (FY12/2020-12/2022) one year ahead of the plan ⚫ Expect
Slide 3: FY12/2021 1Q Results FY12/2021 Revised Forecast (Full Year) FY12/2021 Revised Forecast (First Half/Second Half)
1 FY12/2021 1Q Results 2 FY12/2021 Revised Forecast (Full Year) 3 FY12/2021 Revised Forecast (First Half/Second Half) 4 Business Updates 5 Supplemental Information 3
Slide 4: FY12/2021 1Q Results
1 FY12/2021 1Q Results 2 FY12/2021 Revised Forecast (Full Year) 3 FY12/2021 Revised Forecast (First Half/Second Half) 4 Business Updates 5 Supplemental Information 4
Slide 5: 1Q Financial Results Highlights
FY12/2021 1Q Financial Results Highlights Sales • Substantial increase in all regions and major categories due to continued strong demand (Inventory secured last 4Q was consumed faster 22.3bn than expected) (YoY ＋ 56.5%) • Dramatic recovery in China which had a large COVID-19 impact in 1Q/2020 Opera
Slide 6: Consolidated Financial Results
FY12/2021 1Q Financial Results Consolidated Financial Results FY2020/121 1Q FY12/20212 1Q (JPY mn) Actual % of Sales Actual % of Sales YoY Sales 14,282 100% 22,355 100% +56.5% Gross Profit 7,021 49.2% 10,491 46.9% +49.4% SG&A 5,926 41.5% 5,881 26.3% -0.8% Operating Profit 1,094 7.7% 4,610 20.6% +321
Slide 7: Sales by Category
FY12/2021 1Q Financial Results Sales by Category FY12/2020 1Q FY12/2021 1Q JPY mn YoY1 Actual % total Actual % total YoY w/o FX Increase/decrease factors Portable digital pianos continued to perform well due to Keyboards 4,292 30.1% 6,924 31.0% +61.3% +57.5% Stay-at-Home demand Percussion & Wind V-D
Slide 8: Sales by Region
FY12/2021 1Q Financial Results Sales by Region FY12/2020 1Q FY12/2021 1Q JPY mn YoY1 Actual % total Actual % total YoY w/o FX Increase/decrease factors The impact of the state of emergency was limited. Japan 2,162 15.1% 2,841 12.7% +31.4% +31.4% Continued strong sales of digital pianos and video-rel
Slide 9: Consolidated Operating Profit
FY12/2021 1Q Financial Results Consolidated Operating Profit Changes (vs. previous year) Factors Sales Increase ◼ Sales Increase Margin Change • Gross profit increased due to higher sales SG&A Change FX impact ◼ Margin Change (JPY bn) • Decreased due to soaring raw material and container shipping co
Slide 10: FY12/2021 Revised Forecast (Full Year)
1 FY12/2021 1Q Results 2 FY12/2021 Revised Forecast (Full Year) 3 FY12/2021 Revised Forecast (First Half/Second Half) 4 Business Updates 5 Supplemental Information 10
Slide 11: Expect to achieve our MTP one year ahead despite supply chain uncertainties
FY12/2021 Revised Full Year Forecast Expect to achieve our MTP one year ahead despite some supply chain uncertainties ＜Outlook＞ 1Q 2Q 3Q 4Q Full Year Continued strong demand Stable demand due to vaccine penetration Demand 788 Secured inventory consumed Increased production Raw material availability
Slide 12: Highlights: Expect to achieve MTP one year ahead of the plan
FY12/2021 Revised Full Year Forecast Highlights: Expect to achieve MTP one year ahead of the plan Sales • Reflected continued strong demand for electronic musical instruments 78.8bn and supply chain certainty (vs Previous Forecast) • Electronic musical instruments business expected to post record-hi
Slide 13: Consolidated Financial Forecast
FY12/2021 Revised Full Year Forecast Consolidated Financial Forecast FY12/20201 FY12/20212 (JPY mn) Previous Revised vs Previous Actual % of Sales Forecast % of Sales Forecast % of Sales Forecast YoY Sales 64,044 100.0% 68,400 100.0% 78,800 100.0% +15.2% +23.0% Gross Profit 30,379 47.4% 33,000 48.2%
Slide 14: Sales by Category
FY12/2021 Revised Full Year Forecast Sales by Category FY12/2020 FY12/2021 vs JPY mn Revised Previous YoY1 Actual % total Forecast % total Forecast YoY w/o FX Supplementary comments Keyboards 17,842 27.9% 26,000 33.0% +38.3% +45.7% +42.1% • Stronger-than-expected demand for Percussion & Wind electro
Slide 15: Sales by Region
FY12/2021 Revised Full Year Forecast Sales by Region FY12/2020 FY12/2021 vs JPY mn Revised Previous YoY1 Actual % total Forecast % total Forecast YoY w/o FX Supplemental comments Japan 9,066 14.2% 9,300 11.8% +1.1% +2.6% +2.1% Ｘｘｘが想定以上に好調 •Significant increase in online channel sales North through d
Slide 16: Consolidated Operating Profit
FY12/2021 Revised Full Year Forecast Consolidated Operating Profit • Sales Increase: Expect increase in gross profit amount due to higher sales • Margin Change: Higher raw material and container shipping costs expected to continue, and expansion of entry-level pianos also affects profit margin 前回予想か
Slide 17: FY12/2021 Revised Forecast (First Half/Second Half)
1 FY12/2021 1Q Results 2 FY12/2021 Revised Forecast (Full Year) 3 FY12/2021 Revised Forecast (First Half/Second Half) 4 Business Updates 5 Supplemental Information 17
Slide 18: Both sales and profits expected to increase in first half, second half and full year
FY12/2021 Revised Forecast (First Half/Second Half) Both sales and profits are expected to increase on the first half, second half and full year basis First Half Second Half Full Year Increase in Increase in Increase in Sales and Profit Sales and Profit Sales and Profit Sales 41.4bn 37.4bn 78.8bn ・v
Slide 19: Consolidated Financial Results / First Half
FY12/2021 Revised Forecast (First Half) Consolidated Financial Results / First Half ⚫ Reflecting substantial sales growth in 1Q and strong demand for electronic musical instruments, full year sales forecast up 29% vs. previous forecast ⚫ Decrease in SG&A ratio due to significant revenue growth FY12/
Slide 20: Consolidated Operating Profit / First Half
FY12/2021 Revised Forecast (First Half) Consolidated Operating Profit / First Half • Sales Increase: Expect increase in gross profit amount due to higher sales • Margin Change: Price optimization effect expected to occur gradually 前回予想からの Highlights vs Previous Forecast • SG&A Change: Control overal
Slide 21: Consolidated Financial Results / Second Half
FY12/2021 Revised Forecast (Second Half) Consolidated Financial Results / Second Half ⚫ Sales remained at the previous forecast excluding the impact of foreign exchange rate (Sales increase including the foreign exchange rate impact) ⚫ Gross profit margin lower than the previous forecast, but improv
Slide 22: Consolidated Financial Results / Second Half
FY12/2021 Revised Forecast (Second Half) Consolidated Financial Results / Second Half • Sales Increase: - (Sales forecast remain unchanged) • Margin Change: Higher raw material and container shipping costs expected to continue, 前回予想からの Highlights and expansion of entry-level pianos also affects prof
Slide 23: Shareholder Returns
FY12/2021 Revised Forecast Shareholder Returns Dividend forecast remains unchanged from previous forecast To be disclosed separately in case of revision based on future funding needs ＜Policy＞ FY12/2021 Dividends Forecast The Company’s shareholder return policy is to make disclosed Feb.12, 2021 susta
Slide 24: Business Updates
1 FY12/2021 1Q Results 2 FY12/2021 Revised Forecast (Full Year) 3 FY12/2021 Revised Forecast (First Half/Second Half) 4 Business Updates 5 Supplemental Information 24
Slide 25: Expect high demand. Consider price optimization to counter soaring raw material costs
Business Updates Expect high demand. Consider price optimization to counter soaring raw material costs ⚫ Stay-at-Home demand expected to relatively relax as vaccination progresses ⚫ But we assume the increased leisure time under the new lifestyles will not decrease Demand significantly post COVID-19
Slide 26: Update on Roland Cloud
Business Updates Update on Roland Cloud ⚫ Providing total solutions for enjoying music not only to existing musicians but also to Potential Customers who want to start playing music ⚫ Aiming to become a Solution Provider that removes the various “Barriers” to enjoying music Creation ･音源コンテンツ Playing
Slide 27: Supplemental Information
1 FY12/2021 1Q Results 2 FY12/2021 Revised Forecast (Full Year) 3 FY12/2021 Revised Forecast (First Half/Second Half) 4 Business Updates 5 Supplemental Information 27
Slide 28: Key Consolidated Financials (PL, B/S)
Key Consolidated Financials（PL,B/S） FY2020 FY2021 As of Dec. As of Mar. (JPY mn) (JPY mn) 1Q 1Q 31, 2020 31, 2020 Net sales 14,282 22,355 Cash and deposits 10,832 12,259 Cost of sales 7,261 11,863 Notes and accounts receivable - trade 5,930 8,826 Gross profit 7,021 10,491 Inventories 18,075 18,749 S
Slide 29: Forward-looking statements
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