Slide 1: Financial Results Highlights FY12/2023 Q3
Financial Results Highlights FY12/2023 Q3 November 8, 2023 Roland Corporation “DWe” Convertible Drums
Slide 2: Executive Summary
Executive Summary ⚫ Sales and profits increased YoY despite an uncertain environment ⚫ Dealer inventory adjustment has progressed and is again in the buildup phase toward Q4, the biggest sales season of the year ⚫ Demand for electronic pianos slowed down and recovery delayed in China ⚫ Implementing
Slide 3: FY12/2023 Q3 Results; Forecast; Supplemental Information
1 FY12/2023 Q3 Results 2 FY12/2023 Forecast (Full Year) 3 Supplemental Information
Slide 4: FY12/2023 Q3 Results
1 FY12/2023 Q3 Results 2 FY12/2023 Forecast (Full Year) 3 Supplemental Information
Slide 5: Highlights
FY12/2023 Q3 Results Highlights (JPY) Sales • Sell-in affected by dealer inventory adjustments and lower demand for electronic pianos 71.4bn • Sell-through of our products in the US was steady (YoY: +10.5%) • Effect of new consolidation of Drum Workshop (DW) Operating Profit • Positive effects conti
Slide 6: Consolidated Financial Results
FY12/2023 Q3 Results Consolidated Financial Results ⚫ Operating Profit Margin before amortization of goodwill was 11.2% FY12/2022 Q3 YTD1 FY12/2023 Q3 YTD2 (JPY mn) Actual % of Sales Actual % of Sales YoY Sales 64,622 100.0% 71,410 100.0% +10.5% Gross Profit 26,515 41.0% 31,225 43.7% +17.8% SG＆A 20,
Slide 7: Consolidated Financial Results (Excluding the effect of new consolidation of DW)
FY12/2023 Q3 Results Consolidated Financial Results (Reference: Excluding the effect of new consolidation of DW) FY12/2022 Q3 YTD1 FY12/2023 Q3 YTD2 (JPY mn) Actual % of Sales Actual % of Sales YoY Sales 64,622 100.0% 64,649 100.0% +0.0% Gross Profit 26,515 41.0% 29,275 45.3% +10.4% SG＆A 20,227 31.3
Slide 8: Demand for Our Products and Dealer Inventory Adjustment
FY12/2023 Q3 Results Demand for Our Products and Dealer Inventory Adjustment (as of end of September) ⚫ Demand for our products is generally steady, except for China and Keyboards ⚫ Dealer inventory adjustment due to SCM disruption caused by the pandemic has almost settled ⚫ Dealer inventories are o
Slide 9: Sales by Category (Q3 YTD)
FY12/2023 Q3 Results Sales by Category (Q3 YTD) ⚫ Sales increased YoY, excluding Keyboards, due partly to favorable FX rates ⚫ Although Percussion & Wind continued to be stagnant in China, total sales increased significantly due to DW consolidation ⚫ The main reason for the YoY decline in real terms
Slide 10: Sales by Region (Q3 YTD)
FY12/2023 Q3 Results Sales by Region (Q3 YTD) ⚫ Sales increased YoY, excluding China, due partly to favorable FX rates ⚫ The main negative factors were the dealer inventory adjustment in North America and delayed recovery in China ⚫ Other regions were polarized (emerging countries ◎, developed count
Slide 11: Consolidated Operating Profit
FY12/2023 Q3 Results Consolidated Operating Profit Changes (vs Previous year) Factors (JPY bn) Sales Volume change Selling Price / Cost ratio change • Sales Volume SG&A change ✓ Decrease in Sell-in due to dealer inventory FX impact adjustments DW Consolidation ✓ Decrease in demand of Electronic Pian
Slide 12: Topics: New Products - Convertible Drums DWe
FY12/2023 Q3 Results Topics: New Products announced in the third quarter Percussion & Wind Instruments Convertible Drums ”DWe” ⚫ Launching “DWe” from DW, the all-new product with technical synergies between DW and Roland: aiming to create and expand the Convertible Drums market Main Features ⚫ 2 in
Slide 13: Topics: New Products - Guitar-related Products
FY12/2023 Q3 Results Topics: New Products announced in the third quarter Guitar-related Products BOSS Guitar Effector BOSS Amplifier ⚫ Guitar multiple effects with easy-to- ⚫ Noise Suppressor, a compact pedal ⚫ Acoustic amplifier, delivering a full use and further sound upgraded powered by MDP techn
Slide 14: Topics: New Products - Creation-related Products & Services
FY12/2023 Q3 Results Topics: New Products announced in the third quarter Creation-related Products & Services BGM CAST Synthesizer ⚫ “BGM CAST”, launched on “Roland Cloud”, a service that provides ⚫ Synthesizer that crafts a variety of sounds with a users access to utilize royalty-free background mu
Slide 15: Topics: Infrastructure Enhancement
FY12/2023 Q3 Results Topics: Infrastructure Enhancement Decided to construct a new headquarters based on “Creativity” and “Sustainability” concept Acquired a building next to the Miyakoda Plant (Hamamatsu) to expand and renovate Purpose Overview ⚫ Accelerate innovation by consolidating R&D divisions
Slide 16: FY12/2023 Forecast (Full Year)
1 FY12/2023 Q3 Results 2 FY12/2023 Forecast (Full Year) 3 Supplemental Information
Slide 17: Full-year Forecast
FY12/2023 Forecast (Full Year) Full-year Forecast ⚫ Mixed positive and negative factors compared to initial forecasts; market uncertainty is rising for Q4 to next fiscal year ⚫ Focus on Agile SG&A Control based on the sales situations to maximize profits Positive vs. initial forecast Initial Forecas
Slide 18: Outlook for the market environment in the coming year
FY12/2023 Forecast (Full Year) Outlook for the market environment in the coming year ⚫ Uncertainty in North American demand, recovery in China will take time ✓ Demand creation ⚫ Recovery of demand for Electronic Pianos will be slow through new products ⚫ Current Dealer inventories may be excessive r
Slide 19: Supplemental Information
1 FY12/2023 Q3 Results 2 FY12/2023 Forecast (Full Year) 3 Supplemental Information 19
Slide 20: Key Consolidated Financials (PL, B/S)
Supplemental information Key Consolidated Financials（PL,B/S） (JPY mn) FY2022 FY2023 (JPY mn) As of Dec. As of Sep. Q3 Q3 31, 2022 30, 2023 Net sales 64,622 71,410 Cash and deposits 10,506 10,023 Cost of sales 38,106 40,185 Notes and accounts receivable - trade 12,905 14,632 Gross profit 26,515 31,22
Slide 21: Forward-looking statements disclaimer
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