Slide 1: Financial Results Highlights FY12/2022 2Q
Financial Results Highlights FY12/2022 2Q Aug 8, 2022 Roland Corporation AIRA COMPACT 『T-8』、『J-6』、 『E-4』 It is equipped with a condensed version of Roland's long-accumulated expertise in electronic musical TSE Prime : 7944 instruments and authentic sounds. A new concept of electronic musical instrum
Slide 2: Executive Summary
Executive Summary ⚫ First half results exceeded forecasts, and in line with our plan even without exchange rate fluctuations ⚫ Sales for electronic music instruments remained at a higher level than before the COVID-19 period, as new lifestyles are becoming habit ⚫ Although there are supply issues (p
Slide 3: FY12/2022 2Q Results, Revised Forecast, Supplemental Information
1 FY12/2022 2Q Results 2 FY12/2022 Revised Forecast (Full Year) 3 Supplemental Information 3
Slide 4: FY12/2022 2Q Results
1 FY12/2022 2Q Results 2 FY12/2022 Revised Forecast (Full Year) 3 Supplemental Information 4
Slide 5: Note: Changes in the accounting standard
<Note: Changes in the accounting standard> • Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, revised on March 31, 2020, effective from April 1, 2021) is newly applied to our sales and operating profit from FY2022 • Accordingly, YoY changes for FY2022 (new standard) vs. FY2021 (ol
Slide 6: Highlights - First Half Results
FY12/2022 2Q Results Highlights - First Half Results Sales • Overall sales remained strong despite lockdown in China 43.0bn • Exceeded forecast also due to JPY depreciation (+5.9% vs. Guidance) Operating Profit • Marine transportation costs remained higher than forecast, but OP exceeded our plan par
Slide 7: First Half - Consolidated Results (vs. Forecast)
FY12/2022 2Q Results First Half - Consolidated Results (vs. Forecast) ⚫ Sales, Operating Profit, and Net Income exceeded forecasts ⚫ Even without foreign exchange rate fluctuations, Sales were in line with forecast and Operating Profit exceeded forecast FY12/2022 First Half1,2 (JPY mn) Forecast % of
Slide 8: First Half - Operating Profit (vs. Forecast)
FY12/2022 2Q Results First Half - Operating Profit (vs. Forecast) Changes Factors (changed analysis items) (JPY bn) Sales Volume change Selling Price/Cost ratio change • Sales Volume change SG&A change ✓ Mainly due to the lockdown in China FX impact • Selling Price/Cost ratio change +1.0 ✓ Higher-th
Slide 9: First Half - Sales by Product Category
FY12/2022 2Q Results First Half - Sales by Product Category ⚫ Generally steady except for Video & Pro Audio FY12/2021 First Half FY12/2022 First Half vs FCST JPY mn Actual % total Actual % total w/o FX Situation Demand for E-pianos remained at a high level. Supply to the market Keyboards 13,165 30.6
Slide 10: First Half - Sales by Region
FY12/2022 2Q Results First Half - Sales by Region ⚫ Generally steady except in China FY12/2021 First Half FY12/2022 First Half vs FCST JPY mn Actual % total Actual % total w/o FX Situation Store customer traffic recovered as CV-19 infections declined. Demand was Japan 5,408 12.6% 4,710 10.9% firm an
Slide 11: Production Recovered and Remained Stable, and Order Backlog Continued to Improve
FY12/2022 2Q Results Production Recovered and Remained Stable, and Order Backlog Continued to Improve Malaysia Plant Production Volume Order backlog transition ⚫ Production recovered and remained stable ⚫ Order backlog improved due to increased production ⚫ Aiming to further increase production for
Slide 12: FY12/2022 Revised Forecast (Full Year)
1 FY12/2022 2Q Results 2 FY12/2022 Revised Forecast (Full Year) 3 Supplemental Information 12
Slide 13: Full Year - Consolidated Forecast (vs. Previous Forecast)
FY12/2022 Revised Forecast (Full Year) Full Year - Consolidated Forecast (vs. Previous Forecast) ⚫ Revised up forecast to reflect changes in the external environment and countermeasures (see below) ⚫ Excluding foreign exchange rate fluctuations, we expect to land in line with our initial forecast FY
Slide 14: Assumption Change: (1) Foreign Exchange
FY12/2022 Revised Forecast (Full Year) Assumption Change: (1) Foreign Exchange Revised exchange rate assumptions Beginning of the year Now USD/JPY ：113.00 USD/JPY ：126.45 EUR/JPY ：127.00 EUR/JPY ：135.65 EUR/USD：1.124 EUR/USD：1.073 Impact Sales OP +JPY 7.4bn +JPY 1.0bn <Forex sensitivity＞ <Forex sens
Slide 15: Assumption Change: (2) Market Environment
FY12/2022 Revised Forecast (Full Year) Assumption Change: (2) Market Environment ⚫ Growth momentum unchanged as new lifestyles becoming settled habits ⚫ Continued strong sales, especially in North America, the world's largest market ⚫ Chinese market somewhat uncertain due to lockdowns, but covered b
Slide 16: Assumption Change: (3) Supply & Cost
FY12/2022 Revised Forecast (Full Year) Assumption Change: (3) Supply & Cost ⚫ Supply situation is gradually improving, and order backlog is expected to steadily decrease ⚫ High costs addressed through further price optimizations. We recognize that the peak of marine transportation costs has passed.
Slide 17: Full Year - Consolidated Operating Profit Forecast (vs. Previous Forecast)
FY12/2022 Revised Forecast (Full Year) Full Year - Consolidated Operating Profit Forecast (vs. Previous Forecast) Changes Factors (changed analysis items) (JPY bn) Sales Volume change Selling Price/Cost ratio change • Sales Volume change SG&A change ✓ Mainly due to China lockdown, etc. FX impact • S
Slide 18: Second Half - Consolidated Forecast (vs. Previous Forecast)
FY12/2022 Revised Forecast (Full Year) Second Half - Consolidated Forecast (vs. Previous Forecast) FY12/2022 Second Half1,2 Previous Revised vs Previous (JPY mn) % of Sales % of Sales Forecast Forecast Forecast Sales 44,400 100.0% 49,395 100.0% +11.3% Gross Profit 20,400 45.9% 22,648 45.9% +11.0% SG
Slide 19: Second Half - Operating Profit Forecast (vs. Previous Forecast)
FY12/2022 Revised Forecast (Full Year) Second Half - Operating Profit Forecast (vs. Previous Forecast) Changes Factors (changed analysis items) (JPY bn) Sales Volume change Selling Price/Cost ratio change SG&A change • Sales Volume change FX impact ✓ Mainly due to China lockdown, etc. • Selling Pric
Slide 20: Results by First Half and Second Half
FY12/2022 Revised Forecast (Full Year) Results by First Half and Second Half ⚫ Significant increases in sales and profit expected for the full year ⚫ The seasonal balance between the first and second half is expected to show a normal seasonal trend from this year First Half Second Half Full Year Sal
Slide 21: Shareholder Returns
FY12/2022 Revised Forecast (Full Year) Shareholder Returns ⚫ Decided to maintain initial FY12/2022 guidance for a YoY dividend increase due to the achievement of the half-year earnings forecast ⚫ Maintain the forecast of dividend increase for the year-end dividend. Consider revision if necessary, af
Slide 22: Supplemental Information
1 FY12/2022 2Q Results 2 FY12/2022 Revised Forecast (Full Year) 3 Supplemental Information 補足資料 22
Slide 23: How We Think About the External Environment Changes
Supplemental Information How We Think About the External Environment Changes ⚫ Went through an MBO to resolve many internal problems and significantly strengthened management base ⚫ The company is more resilient to changes in the environment than it was when Global Financial Crisis Global Financial
Slide 24: Update on Roland Cloud
Supplemental Information 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 Mid to Long Term
Slide 25: First Half - Consolidated Results (vs. Previous Year)
Supplemental Information First Half - Consolidated Results (vs. Previous Year) Old standard (same as previous year) FY12/2021 First Half1 FY12/2022 First Half2 (JPY mn) Actual % of Sales Actual % of Sales YoY Sales 43,030 100.0% 43,441 100.0% +1.0% Gross Profit 20,326 47.2% 17,988 41.4% -11.5% SG＆A
Slide 26: First Half - Operating Profit (vs. Previous Year)
Supplemental Information First Half - Operating Profit (vs. Previous Year) Changes Factors (changed analysis items) (JPY bn) Sales Volume change Selling Price / Cost ratio change • Sales Volume change SG&A change FX impact ✓ Rebound from inventory policy in 2020/Q4- Accounting Change 2021/Q1 ✓ Mainl
Slide 27: Second Half - Consolidated Forecast (vs. Previous Year)
Supplemental Information Second Half - Consolidated Forecast (vs. Previous Year) Old standard (same as previous year) FY12/2021 First Half1 FY12/2022 First Half2 Revised (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 37,002 100.0% 49,858 100.0% +34.7% Gross Profit 15,811 42.7% 23,111 46.4%
Slide 28: Second Half - Consolidated Operating Profit (vs. Previous Year)
Supplemental Information Second Half - Consolidated Operating Profit (vs. Previous Year) Changes Factors (changed analysis items) (JPY bn) Sales Volume change Selling Price / Cost ratio change • Sales Volume change SG&A change FX impact ✓ Recovery from production constraints in the Accounting Change
Slide 29: Full Year - Consolidated Forecast (vs. Previous Year)
Supplemental Information Full Year - Consolidated Forecast (vs. Previous Year) Old standard (same as previous year) FY12/20211 FY12/20222 Revised (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 80,032 100.0% 93,300 100.0% +16.6% Gross Profit 36,137 45.2% 41,100 44.1% +13.7% SG＆A 25,043 31.3
Slide 30: Full Year - Operating Profit (vs. Previous Year)
Supplemental Information Full Year - Operating Profit (vs. Previous Year) Changes Factors (changed analysis items) (JPY bn) Sales Volume change Selling Price / Cost ratio change • Sales Volume change SG&A change FX impact ✓ Rebound from inventory policy in 2020/Q4-2021/Q1 Accounting Change ✓ Mainly
Slide 31: Full Year - Sales by Product Category
Supplemental Information Full Year - Sales by Product Category ⚫ Wind and percussion instruments, video and audio equipment minus, covered in other categories FY12/2021 FY12/2022 Change from JPY mn Revised YoY1 Previous Actual % total Forecast % total w/o FX Forecast2 Keyboards 24,792 31.0% 30,900 3
Slide 32: Full Year - Sales by Region
Supplemental Information Full Year - Sales by Region ⚫ Lockdown impact in China covered in other regions FY12/2021 FY12/2022 Change from JPY mn Revised YoY1 Previous Actual % total Forecast % total w/o FX Forecast2 Japan 9,666 12.1% 9,800 10.6% +1.8% +1.5% North America 25,959 32.4% 31,300 33.9% +6.
Slide 33: Key Consolidated Financials (PL, B/S)
Supplemental Information Key Consolidated Financials（PL,B/S） FY2021 FY2022 As of Dec. As of Jun. (JPY mn) (JPY mn) 2Q 2Q 31, 2021 30, 2022 Net sales 43,030 43,004 Cash and deposits 8,781 8,722 Cost of sales 22,704 25,452 Notes and accounts receivable - trade 7,444 10,387 Gross profit 20,326 17,551 I
Slide 34: 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