Slide 1: Financial Results Highlights FY12/2024 Q2
Financial Results Highlights FY12/2024 Q2 Aug 7, 2024 Roland Corporation 『KATANA ARTIST GEN3』
Slide 2: Executive Summary
Executive Summary ⚫ Exceeded H1 plan partly due to weaker JPY (Sales and Profit increased YoY) ⚫ Amid continued price appeals in the market from peers, we are promoting the normalization of sales strategy ⚫ Dealer inventory adjustment mostly ended in H1 ⚫ On the other hand, demand is slowing down ma
Slide 3: FY12/2024 Q2 Results FY12/2024 Forecast (Full Year) Supplemental Information
1 FY12/2024 Q2 Results 2 FY12/2024 Forecast (Full Year) 3 Supplemental Information
Slide 4: FY12/2024 Q2 Results
1 FY12/2024 Q2 Results 2 FY12/2024 Forecast (Full Year) 3 Supplemental Information
Slide 5: Highlights - First Half Results
FY12/2024 Q2 Results Highlights - First Half Results Sales 46.7bn • Dealer inventory adjustment mostly ended in H1 （+1.3% vs Last year） • Demand continues to decline in North America and China （+3.5% vs Guidance） Operating Profit • Volume and unit price impact were lower than expected, but SG&A 4.4b
Slide 6: Consolidated Financial Results
FY12/2024 Q2 Results Consolidated Financial Results ⚫ GP margin improved steadily each quarter due to sales strategy normalization (Q4/2023: 40.9% → Q1/2024: 42.5% → Q2/2024: 43.8%) ⚫ Please see Supplementary Materials (p.20) for results for the April-June period (3 months). FY12/2023 First Half1 FY
Slide 7: Situation and Outlook for North America
FY12/2024 Q2 Results Situation and Outlook for North America ⚫ Adjustment period continues throughout this year ⚫ Gradual transition to recovery phase expected from next year H1 Situation Full Year Outlook Next Year Outlook • Slowdown in demand • Dealers review inventory levels as demand North Ameri
Slide 8: Sales by Category (Q2 YTD)
FY12/2024 Q2 Results Sales by Category（Q2 YTD） ⚫ The main negative factor in real terms in the major categories was the impact of dealer inventory adjustments ⚫ Please see Supplementary Materials (p.21) for results for the April-June period (3 months) (JPY mn) Keyboards Perc. & Wind Guitar-related C
Slide 9: Sales by Region (Q2 YTD)
FY12/2024 Q2 Results Sales by Region（Q2 YTD） ⚫ The main negative factor in real terms in major regions was the impact of dealer inventory adjustments ⚫ Please see Supplementary Materials (p. 22) for results for the April-June period (3 months) (JPY mn) Japan North America Europe China Others Total -
Slide 10: Consolidated Operating Profit (Q2 YTD)
FY12/2024 Q2 Results Consolidated Operating Profit（Q2 YTD） Changes (vs Previous year) Factors Sales Volume change (JPY bn) Selling Price / Cost ratio change SG&A change • Sales Volume FX impact ✓ Rebound from aggressive sell-in in Q4/2023 ✓ Softening demand in North America and China • Selling Price
Slide 11: Consolidated Operating Profit (Q2 YTD) vs Guidance
FY12/2024 Q2 Results Consolidated Operating Profit（Q2 YTD） Changes (vs Guidance) Sales Volume change (JPY bn) Selling Price / Cost ratio change SG&A change FX impact ② ① Decrease in volume and negative ① +1.2 impact on sales price per unit were offset by controlling SG&A expenses +1.5 ② Significantl
Slide 12: Major new products announced in Q2: Guitar-related products
FY12/2024 Q2 Results Topics: Major new products and services announced in the 2nd quarter Guitar-related products Guitar Amp. Bass effector ⚫ “KATANA AMP GEN 3 Series" (7 models) with greatly improved ⚫ The “ME Series” is a bass multi-effects pedal that offers intuitive expressiveness with highly po
Slide 13: Major new products announced in Q2: Creation-related products & services
FY12/2024 Q2 Results Topics: Major new products and services announced in the 2nd quarter Creation-related products & services Synthesizer USB microphone for smartphone ⚫ Flagship synthesizer greatly evolved with the latest technology ⚫ USB microphone for Twitch streamers/YouTubers for easy, "FANTOM
Slide 14: Major new products: Creation-related, Video & Professional Audio
FY12/2024 Q2 Results Topics: Major new products and services announced in the 2nd quarter Creation-related products & services Video & Professional Audio Roland Cloud Video Switcher ⚫ Launched "Drum Channel for Roland" offering numerous drum ⚫ Compact video switcher for high-quality video production
Slide 15: FY12/2024 Forecast (Full Year)
1 FY12/2024 Q2 Results 2 FY12/2024 Forecast 3 Supplemental Information
Slide 16: Full-year sales forecast by region and category
FY12/2024 Forecast (Full Year) Full-year sales forecast by region and category ⚫ Consolidated forecasts remain unchanged (JPY99.9bn), partly due to the weaker JPY than planned ⚫ On the other hand, on a local currency basis, overall results are expected to fall short of the initial plan Guidance Guid
Slide 17: Full Year Operating Profit Forecast
FY12/2024 Forecast (Full Year) Full Year Operating Profit Forecast ⚫ No change in earnings forecast (JPY11.4bn) as positive and negative factors from the initial plan are expected to be generally balanced The assumed exchange rate for the H2 has been revised from the original plan （JPY/USD：137⇒148、J
Slide 18: Shareholder Return
FY12/2024 Forecast (Full Year) Shareholder Return ⚫ 2Q-end dividend to be paid as initial plan due to the achievement of the profit forecast. ⚫ No change in the year-end dividend forecast Dividend Per Share (Forecast) Dividends and Dividend Payout Ratio Total Payout Ratio including share buybacks: 6
Slide 19: Supplemental Information
1 FY12/2024 Q2 Results 2 FY12/2024 Forecast (Full Year) 3 Supplemental Information
Slide 20: Consolidated Financial Results (April-June period, 3 months)
Supplemental information Consolidated Financial Results（April-June period, 3 months) FY12/2023 Q2 3M1 FY12/2024 Q2 3M2 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 23,235 100.0% 24,621 100.0% +6.0% Gross Profit 10,023 43.1% 10,790 43.8% +7.6% SG＆A 7,786 33.5% 7,926 32.2% +1.8% Operating
Slide 21: Sales by Category (April-June period, 3 months)
Supplemental information Sales by Category （April-June period, 3 months) (JPY mn) Keyboards Perc. & Wind Guitar-related Creation-related Video & Pro Audio Others Total +1.3% +11.0% +16.1% -4.8% -24.5% +15.2% +6.0% YoY1 (-8.5%) (-1.0%) (+4.6%) (-14.3%) (-31.4%) (+5.1%) (-4.7%) 7,259 6,255 6,338 6,540
Slide 22: Sales by Region (April-June period, 3 months)
Supplemental information Sales by Region （April-June period, 3 months) (JPY mn) Japan North America Europe China Others Total -3.9% +9.2% +12.6% -16.1% +10.7% +6.0% YoY1 (-3.9%) (-3.6%) (+0.2%) (-23.7%) (-1.5%) (-4.7%) 9,059 8,297 7,004 6,220 3,542 3,920 2,424 2,749 2,329 2,307 2023Q2 2024Q2 2023Q2
Slide 23: Key Consolidated Financials
Supplemental information Key Consolidated Financials (JPY mn) FY2023 FY2024 (JPY mn) As of Dec. As of June Q2 Q2 31, 2023 30, 2024 Net sales 46,096 46,705 Cash and deposits 12,883 13,434 Gross profit 19,772 20,183 Notes and accounts receivable - trade 13,805 12,163 Selling, general and Inventories 3
Slide 24: Forward-looking statements notice
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