Yonex Co., Ltd. · TSE:7906
Yonex — H1 FY3/24 Earnings Presentation
26 slides from Yonex's earnings presentation, Nov 9, 2023
Slide 1: Financial Results Fiscal Year Ending March 31, 2024 H1
Fiscal Year Ending March 31, 2024 H1 Financial Results Yonex Co., Ltd. Tokyo Stock Exchange Code：7906 Ｎｏｖｅｍｂｅｒ 9, 2023
Slide 2: Table of Contents
Table of Contents 1. Consolidated Financial Results for FY3/24 H1 ・・・・ 3 2. Segment Overview ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8 3. Forecasts for FY3/24 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15 4. Topics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17 5. Appendix ・・・・・・・・・・・・・・・・・・・・・・・・・・
Slide 3: Highlights
Highlights Net Sales Operating Profit Net Profit Attributable to owners of parent 57.7 billion yen 5.6 billion yen 4.3 billion yen YoY YoY YoY +15.2％ -21.1％ -21.4％ ⚫ Demand for sports remained strong in all regions of the world. The resumption of international competitions, our sales promotion activ
Slide 4: Consolidated Income Statement
Consolidated Income Statement （Million yen） FY3/23 H1 FY3/24 H1 FY3/24 Forecasts* YoY Results Results Margins H1 Full Year Net Sales 50,092 57,725 ― +15.2％ 57,000 116,000 （+7,633） Gross Profit 22,624 25,110 43.5％ +11.0％ ― ― （+2,485） SGA 15,508 19,498 33.8％ +25.7％ ― ― （+3,990） Operating Profit 7,116
Slide 5: Factors behind Operating Profit Changes
Factors behind Operating Profit Changes Despite higher gross profit, operating profit declined due to the increases in SGA, which included advertising expenses arising from international tournament sponsorships, tournament-related promotions, and personnel expenses to strengthen our business foundat
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets Inventories decreased mainly in China, where inventories increased at the end of FY3/23 due to the impact of the COVID-19 outbreak and decreased as sales recovered from February onward. ⚫ Assets ⚫ Liabilities （Million yen） End FY3/24 End FY3/24 End FY3/23 Change End FY3/2
Slide 7: Consolidated Cash Flows
Consolidated Cash Flows Increase investments based on our medium to long-term vision while securing a stable cash flow and a robust financial foundation. （Million yen） FY3/23 H1 FY3/24 H1 Change Operating activities 5,399 5,299 -99 • Decrease in net income (-) • Depreciation increased due to the sta
Slide 8: Segment Information
Segment Information Our business consists of the sporting goods division, which is divided into the four regional segments of Japan, Asia, North America, and Europe, and the sports facilities division. （Million yen） FY3/24 H1 Results Related Entities Sales Segment Operating Composition Net Sales Sal
Slide 9: Net Sales Changes and Forex Impact (Reported Segments)
Net Sales Changes and Forex Impact (Reported Segments) The yen depreciated against all major currencies in regions where we operate. The increase in sales in local currency terms and the weakening of the yen contributed to the increase in consolidated sales. ⚫ Forex Rate 1RMB 1TWD 1USD 1EUR 1GBP FY3
Slide 10: Japan Segment
Japan Segment YoY 26,078 Net Sales 26,078 million yen +7.4 % （Million yen） 24,291 18,836 Badminton sales remained steady due to strong sales of our new model Domestic racquets launched in Q1 and increased demand in the tournament Sales season. Tennis sales decreased due to the abating of the strong
Slide 11: Asia Segment
Asia Segment YoY 26,005 Net Sales 26,005 million yen +22.6 % （Million yen） 21,215 Despite another outbreak of COVID-19, which began in Dec 2022 and continued until the beginning of Q1, demand for badminton recovered as 13,344 China we restarted tournaments soon after the outbreak subsided. Sales inc
Slide 12: North America Segment
North America Segment YoY （Million yen） 3,059 3,059 million yen +19.1 % 2,568 Net Sales Badminton sales increased due to strong sales in Q1. Tennis sales 1,451 declined due to an inventory increase in the overall market since the H2 of FY3/23, mainly in the U.S., and to the abating of the strong gro
Slide 13: Europe Segment
Europe Segment 2,247 YoY （Million yen） Net Sales 2,247 million yen +34.4 % 1,671 Tennis sales increased due to the strong market and to the attention garnered by tennis magazine awards given to our racquets for their strong 864 Germany performance evaluations. Badminton sales increased as the holdin
Slide 14: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories The badminton market was strong, with sales growth in both Japan and overseas. Tennis continued to see increases in China and Europe, but demand appears to be slowing subsequent to the strong demand during the COVID-19 pandemic period with declines being s
Slide 15: Earnings Forecasts for FY3/24
Earnings Forecasts for FY3/24 We have made no changes to our forecasts announced in May. And although operating profit was lower than forecast in the H1, we expect to achieve our full-year forecasts. In the H2, we expect an upward boost from our revised exchange rate outlook, and we will continue ou
Slide 16: Dividend
Dividend We increased the ordinary dividend to 7 yen per share, which is unchanged from our initial forecast. Our basic dividend policy is to maintain stable and appropriate levels of dividends. FY3/24 FY3/20 FY3/21 FY3/22 FY3/23 （Interim dividend/ Year-end forecast） Total Dividend （Yen） 5.0 4.5 10.
Slide 17: History and Recent Situation of Our Chinese Business
History and Recent Situation of Our Chinese Business Factors Influencing the Sales Trend of Yonex China From FY3/22 From FY3/24 Player base of badminton expanded due to: ⚫ Growth rate expected to be more moderate than ⚫ Remarkable successes of Chinese athletes in the last two years, when rapid growt
Slide 18: Toward Further Growth of Our China Business
Toward Further Growth of Our China Business New approaches to customer communication, sales channels, product development, and other strategies Opening of “Yonex Shanghai Showroom” in August Acting as a place where customers can experience the ‘Craftsmanship and Innovation’ of Yonex, this showroom w
Slide 19: Ben Shelton (USA) Wins His First ATP Title in Tokyo
Ben Shelton (USA) Wins His First ATP Title in Tokyo Young stars of Team Yonex made breakthrough performances in Tokyo. We held an exclusive event to boost the tournament held in Japan Kinoshita Group Japan Open Tennis Championships Yonex Tennis Festival Winner Ben Shelton （USA） Held for the First Ti
Slide 20: Yonex's New Tennis Racquet Series "PERCEPT"
Yonex’s New Tennis Racquet Series “PERCEPT” As part of the rebranding of one of our main tennis racquet series, “VCORE PRO,” this new racquet “PERCEPT” is designed to allow users to “perceive” the tennis ball with the racquet acting as an extension of the palm of their hand, control, and create uniq
Slide 21: Initiatives of Our Global Growth Strategy (GGS)
Initiatives of Our Global Growth Strategy (GGS) Launched various projects in the focus areas of our GGS Global Growth Strategy （GGS） ⚫ Marketing Key Areas Restructuring our organization and reviewing strategies and policies that allow for better collaboration between the marketing, product Geographi
Slide 22: Appendix
Appendix
Slide 23: Reference: Fiscal Year End for Domestic and Overseas Businesses
Reference： Fiscal Year End for Domestic and Overseas Businesses Japan segment including domestic sales and sales to overseas distributors closes their fiscal year in March, while our overseas subsidiaries close their fiscal year in December. ⚫ Period Covered in FY3/24 H1 2023 2024 Jan Feb Mar Apr Ma
Slide 24: Net Sales by Reported Segments
Net Sales by Reported Segments （Million yen） FY3/20 H1 FY3/21 H1 FY3/22 H1 FY3/23 H1 FY3/24 H1 Japan (Domestic sales and sales to 20,550 12,043 18,836 24,291 26,078 overseas distributors) Asia (Subsidiaries) 8,659 8,005 13,344 21,215 26,005 North America (Subsidiaries) 1,091 923 1,451 2,568 3,059 Eu
Slide 25: Net Sales by Geographic Region
Net Sales by Geographic Region （Million yen） FY3/20 H1 FY3/21 H1 FY3/22 H1 FY3/23 H1 FY3/24 H1 Japan 15,934 9,648 14,417 17,135 17,138 Overseas 15,886 12,444 20,370 32,956 40,586 Asia 12,647 9,778 16,860 25,343 32,150 North America 1,091 923 1,451 2,568 3,059 Europe 1,887 1,567 1,326 4,098 4,498 Oth
Slide 26: Disclaimer
Disclaimer 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. We would like to remind investors that various unforeseen factors could c