Slide 1: Financial Results Fiscal Year Ending March 31, 2020
Financial Results Fiscal Year Ending March 31, 2020 YONEX CO., LTD. (Tokyo Stock Exchange Code: 7906) May 20, 2020
Slide 2: Agenda
1. Financial Results for FY3/20 2. Forecasts and Initiatives 3. Appendix
Slide 3: 1. Financial Results for FY3/20
1. Financial Results for FY3/20
Slide 4: Key Performance Highlights
Key Performance Highlights □Net Sales Increased by 1.4% YY to JPY 61.9bn ・China sales, mainly badminton products, recovered and led the overall sales growth ・Japan sales declined due to COVID-19 ・Subsidiaries, including China, were not impacted by COVID-19 because their fiscal years end on December
Slide 5: Consolidated Financial Results
Consolidated Financial Results FY3/20 Compared (Million yen) FY3/19 FY3/20 YY Change Original with Forecasts Forecasts Net Sales 61,097 61,967 +869 +1.4% 63,500 -2.4% Gross Profit 25,744 26,213 +468 +1.8% ― ― (Gross Profit Margin) （42.1%） （42.3%） （+0.2%pt） SGA 23,261 23,791 +530 +2.3% ― ― Operating
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets YY (Million yen) March 31, 2019 March 31, 2020 Change Net Cash +7,163milion yen Asset Current assets 33,959 33,022 -936 (March 31, 2020) Cash and deposits 11,119 10,977 -142 Notes and accounts 12,867 11,315 -1,551 receivable-trade The effect of sales reduced by COVID-19 I
Slide 7: Consolidated Cash Flow
Consolidated Cash Flow (Million yen) -1,493 +2,967 Investing -1,317 10,927 10,901 activities Financing -130 Operating activities activities Others Used for maintenance Used for repayment of plants, others of debt loan, others Start End FY3/20 FY3/20 7
Slide 8: Operating Profit Changes
Operating Profit Changes Gross profit Increase ＜ SGA Increase → Gross profit margin +0.2%pt (Million yen) +468 （+1.8%） +147 +245 2,482 (+2.3%) (+2.7%) +228 2,421 Personnel Advertising -91 (+3.7%) Gross Profit Expenses (-6.7%) Expenses Others R&D Expenses SGA +530（+2.3%） Operating Profit -61（-2.5%） F
Slide 9: Segment Sales Information
Segment Sales Information (Million yen) FY3/19 FY3/20 YY Change Net sales 38,742 38,119 -1.6% Sporting Goods Division Japan Operating profit 912 448 -50.9% North Net sales 2,205 2,212 +0.4% America Operating profit 73 -50 ― Net sales 2,418 2,286 -5.4% Europe Operating profit 43 -73 ― Net sales 17,23
Slide 10: Net Sales Change and Forex Impact (Reported Segments)
Net Sales Change and Forex Impact (Reported Segments) Forex rate* USD EUR GBP RMB TWD FY3/19 110.42 130.42 147.47 16.71 3.65 (Million yen) Local Currency Basis Forex Impact FY3/20 109.04 122.06 139.25 15.77 3.52 *FY end of overseas subsidiaries is December -1,203 61,967 61,097 +2,806 (+16.3%) +11 Sp
Slide 11: Net Sales and Operating Profit of Sporting Goods Division: Japan
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan Net Sales (-1.6% YY) ・Domestic sales fall (Million yen) - 1H(Apr-Sep) badminton and apparel sales grew - Until February, sales remained at the same level as the previous year due to influence of sales tax increase 39
Slide 12: Net Sales and Operating Profit of Sporting Goods Division: North America
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) North America Forex rate FY3/18 FY3/19 FY3/20 USD 112.18 110.42 109.04 (Million yen) *Jan-Dec Net Sales (+0.4% YY) ・Badminton sales increased 2,205 2,212 - Sales of shuttlecocks and shoes grew 1,969 ・Tennis sales declined
Slide 13: Net Sales and Operating Profit of Sporting Goods Division: Europe
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Europe Forex rate FY3/18 FY3/19 FY3/20 EUR 126.66 130.42 122.06 (Million yen) GBP 144.50 147.47 139.25 Net Sales (-5.4% YY) *Jan-Dec ・Sales on local currency basis remained at the same level as previous year 2,443 2,418 ・B
Slide 14: Net Sales and Operating Profit of Sporting Goods Division: Asia
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Asia Forex rate FY3/18 FY3/19 FY3/20 (Million yen) RMB 16.62 16.71 15.77 Net Sales (+9.3%YY) TWD 3.68 3.65 3.52 *Jan-Dec ・Despite the negative impact of foreign exchange, 18,835 17,681 sales increased 17,231 ・China sales r
Slide 15: Our Initiative for China Business
Our Initiative for China Business Advertisement of new badminton racquet and string→ ・Actively Use SNS [SNS；WeChat, TikTok, Weibo, others］ → Enhanced information dissemination for new product launches ・Expand Opportunities to Try our Products at Retail Stores and Sports Facilities → People post on S
Slide 16: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories FY3/20 (Million yen) Sales Japan YY Change Overseas YY Change Total YY Change Composition Badminton 10,276 -557 -5.1% 24,970 +879 +3.7% 35,246 +321 +0.9% 56.9% （Overseas sales composition: YY change) (70.8%: +1.8%pt) Tennis 5,934 +129 +2.2% 2,540 -25 -1.0%
Slide 17: 2. Forecasts and Initiatives
2. Forecasts and Initiatives
Slide 18: Forecasts for FY3/21
Forecasts for FY3/21 • Forecasts for FY3/21 will not be disclosed because of the difficulty in establishing accurate estimates in light of the impact of the COVID-19 outbreak • We will disclose forecasts promptly once it becomes possible to make reasonable estimates • Also, dividends forecasts will
Slide 19: Impact from COVID-19 by Sporting Goods Division (Japan Segment)
Impact from COVID-19 by Sporting Goods Division (Japan Segment) Japan ・All schools have been closed and school club activities have been stopped since March ・Almost all facilities (tennis courts and gyms) have been closed since April due to the emergency declaration by the Japanese Government ・March
Slide 20: Impact from COVID-19 by Sporting Goods Division (Asia Segment)
Impact from COVID-19 by Sporting Goods Division (Asia Segment) China ・Almost all stores and facilities(gyms and badminton halls) closed during February ・February sales declined 50% YY while e-commerce continued to operate ・Retail stores started to reopen from late March, and roughly 90% were operati
Slide 21: Impact from COVID-19 (North America & Europe Segment)
Impact from COVID-19 by Sporting Goods Division (North America & Europe Segment) North America（US/Canada） ・Since mid March, all retail stores have been closed or operating at reduced hours. ・Public facilities for tennis are also closed. ・Sports events and tournaments have been cancelled or postponed
Slide 22: Impact from COVID-19 (Production and Supply Chain)
Impact from COVID-19 by Sporting Goods Division (Production and Supply Chain) Japan ・Niigata Factory: Closed from late April ・Tokyo Factory: Closed from beginning of May Taiwan ・Taiwan factory continues to operate ・Manufacture of some OEM racquets brought back in-house to maintain utilization rates
Slide 23: Medium-Term Management Plan (FY3/18-21)
Medium-Term Management Plan (FY3/18-21) Quantitative Targets Reduced as Large Fall in Sales and Profits are Expected because of Strong Impact of COVID-19 Quantitative Targets for FY3/21 Net Sales 66,000 Million yen Operating Profit 3,000 Million yen Overseas Sales Composition 53 % ROE 5% 5 Basic Pol
Slide 24: Ongoing Topics of The Medium-Term Management Plan
Ongoing Topics of The Medium-Term Management Plan Promote Automation and Leverage AI and IoT ・Promote automation for racquet casting and painting lines ・Leverage AI and IoT to inspect products and monitor operating conditions ・Use RFID on some products to make inventory stocking and control more eff
Slide 25: Future Outlook and Challenges
Future Outlook and Challenges ～What We Are Learning from COVID-19～ “Stay at Home” and Sports - Recovery of demand and sales relies upon abating of the pandemic - Be prepared for a extended period of time before demand for our athletic focused products recovers Globalization Partially Achieved an
Slide 26: 3. Appendix
ove’ YONEX 3. Appendix
Slide 27: Consolidated Net Sales (Japan and Overseas)
Consolidated Net Sales (Japan and Overseas) Japan Overseas (Million yen) 61,042 62,188 61,097 61,967 54,159 30,342 30,988 31,107 32,616 23,575 49.8% Overseas Sales 49.7% 50.9% 52.6% Composition 43.5% 30,584 30,700 31,199 29,990 29,350 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 *”Overseas” include exports an
Slide 28: Net Sales (Reported Segments)
Net Sales (Reported Segments) North America (Subsidiary) Europe (Subsidiary) Asia(Subsidiary) Sports Facilities 合計 (Million yen) 62,188 61,967 61,042 61,097 54,159 Segment Asia: 504 487 500 512 China and Taiwan subsidiaries, 491 India subsidiary (manufacturing) 17,448 17,681 17,231 18,835 10,640 * 2
Slide 29: Regional Sales Data by Destination
Supplemental Information Regional Sales Data by Destination Japan North America Erope Asia Others (Million yen) 61,042 62,188 61,097 61,967 542 643 536 633 Asia: 54,159 China, Taiwan, Southeast Asia, 458 Korea, India and others 24,365 24,378 24,488 26,009 17,049 4,086 3,672 3,996 3,877 3,760 1,981 1
Slide 30: Forward-looking statements and Investor Relations contact
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. Investors are cautioned that various unforeseen factors could cause actual results t