Slide 1: Financial Results Highlights FY12/2021 2Q
Financial Results Highlights FY12/2021 2Q Aug 6, 2021 Roland Corporation The Aerophone has been bringing new creativity and expression to wind instrument players. The flagship model, the Aerophone Pro, has evolved not only in design and parts, but also in its sound source, the heart of the instrumen
Slide 2: Executive Summary
Executive Summary ⚫ Revised up the final year target for the Mid-Term-Plan (FY12/2022), reflecting the continued demand on the steady growth of new lifestyles ⚫ FY12/2021 Q2 exceeded our expectations due to strong demand and accelerated production in 1H of FY12/2021 ⚫ Due to supply chain uncertainty
Slide 3: Revision to the Final Year Target for the MTP (FY12/2022) FY12/2021 2Q Results FY12/2021
1 Revision to the Final Year Target for the MTP (FY12/2022) 2 FY12/2021 2Q Results 3 FY12/2021 Forecast (Full Year) 4 Supplemental Information 3
Slide 4: Revision to the Final Year Target for the MTP (FY12/2022)
1 Revision to the Final Year Target for the MTP (FY12/2022) 2 FY12/2021 2Q Results 3 FY12/2021 Forecast (Full Year) 4 Supplemental Information 4
Slide 5: Revised up FY12/2022 MTP target supported by new lifestyles
Revision to the Final Year Target for the MTP (FY12/2022) Revised up FY12/2022 MTP target supported by new lifestyles expanding our market Sales Operating Profit Net Income1 ROE Target (FY12/2022) 81.5bn 12.3bn(15.1%) 8.6bn(10.6%) 20% or more Sales Operating Profit Net Income1 12.3 8.6 78.8 81.5 10.
Slide 6: Growth breakdown during the Medium-Term-Plan (FY2020-FY2022)
Revision to the Final Year Target for the MTP (FY12/2022) Growth breakdown during the Medium-Term-Plan (FY2020-FY2022) By Category By Region Operating Profit (bn) North America (bn) Sales increase (bn) Keyboards Europe Margin change Percussion & Wind Instruments Japan SG&A Change Guitar-related Prod
Slide 7: FY12/2021 2Q Results
1 Revision to the Final Year Target for the MTP (FY12/2022) 2 FY12/2021 2Q Results 3 FY12/2021 Forecast (Full Year) 4 Supplemental Information 7
Slide 8: 2Q Financial Results Highlights
FY12/2021 2Q Financial Results Highlights Sales • Substantial increase as a result of a drastic increase in production ahead 43bn of schedule to maximize Full Year sales (YoY ＋ 52.4%) • Strong in all regions and categories due to robust demand Operating Profit • Substantial increase due to higher re
Slide 9: Consolidated Financial Results
FY12/2021 2Q Financial Results Consolidated Financial Results ⚫ To maximize Full Year sales and profit, raw materials for 2H aggressively used ahead of schedule ⚫ Sales and profit exceeded the forecast backed by continued strong demand FY2020/121 2Q FY12/20212 2Q (JPY mn) Actual % of Sales Forecast
Slide 10: Sales by Category
FY12/2021 2Q Financial Results Sales by Category FY12/2020 FY12/2021 2Q 2Q JPY mn YoY1 Actual % total Actual % total YoY w/o FX Increase/decrease factors Keyboards 7,808 27.7% 13,165 30.6% +68.6% +61.6% Portable digital pianos continued to perform well Percussion & V-Drums Acoustic Design Series and
Slide 11: Sales by Region
FY12/2021 2Q Financial Results Sales by Region FY12/2020 FY12/2021 2Q 2Q JPY mn YoY1 Actual % total Actual % total YoY w/o FX Increase/decrease factors Although store customer traffic was affected by emergency Japan 4,255 15.1% 5,408 12.6% +27.1% +27.1% declarations, digital pianos and video-related
Slide 12: Consolidated Operating Profit
FY12/2021 2Q Financial Results Consolidated Operating Profit • Sales Increase: Increase in gross profit due to higher sales Highlights vs Forecast • Margin Change: Some cost impact expected in 1H shifted to 2H • SG&A Change: Execution control of advertising and promotion (A&P) expenses Sales Increas
Slide 13: FY12/2021 Forecast (Full Year)
1 Revision to the Final Year Target for the MTP (FY12/2022) 2 FY12/2021 2Q Results 3 FY12/2021 Forecast (Full Year) 4 Supplemental Information 13
Slide 14: Expect continued strong demand as well as higher costs and prolonged supply challenges
FY12/2021 Full Year Forecast Expect continued strong demand as well as higher costs and prolonged supply challenges Strong demand will continue even after vaccinations as new lifestyles penetrate <Vaccination rate and our order backlog> (%) US (%) Europe (%) Japan Demand Vaccination rate Order backl
Slide 15: Assumptions for the Full Year Forecast
FY12/2021 Full Year Forecast Assumptions for the Full Year Forecast ⚫ Assumptions for Malaysia Factory Attendance Rate: June/60% → July/30% → August/60% → September and after/100% Further upside not assumed in the forecast Recovery of Malaysia Factory production loss Production catch-up ・Production
Slide 16: Affected by the lockdown in 1H, but expect a rapid recovery
FY12/2021 Full Year Forecast Affected by the lockdown in 1H, but expect a rapid recovery due to early supply of vaccines Our daily production output (May-July) Vaccination in Southeast Asia1 Moving Control Order (5/25) Vaccination in Malaysia accelerates Lockdown (6/1) Enhanced MCO (7/3) Resumed ope
Slide 17: Full Year Sales and Profits are expected to increase
FY12/2021 Full Year Forecast Full Year Sales and Profits are expected to increase from the previous year ⚫ To maximize Full Year performance, drastically increased production in 1H knowing the possibility of parts shortages in 2H. As a result, the impact of the lockdown, parts and container shortage
Slide 18: Consolidated Financial Forecast
FY12/2021 Full Year Forecast Consolidated Financial Forecast FY12/20201 FY12/20212 (JPY mn) Actual % of Sales Forecast % of Sales YoY Sales 64,044 100.0% 78,800 100.0% +23.0% Gross Profit 30,379 47.4% 36,300 46.1% +19.5% SG＆A 23,264 36.3% 25,500 32.4% +9.6% Operating Profit 7,115 11.1% 10,800 13.7%
Slide 19: Consolidated Operating Profit
FY12/2021 Full Year Forecast Consolidated Operating Profit Changes (vs Previous year) Factors (JPY bn) Sales Increase • Sales Increase Margin Change ✓ Increase in gross profit due to higher sales SG&A Change • Absorb cost increases by price optimization FX impact • Full price optimization effect fro
Slide 20: Shareholder Returns
FY12/2021 Full Year Forecast Shareholder Returns ＜Policy＞ The Company’s shareholder return policy is to make sustainable and stable dividend payments while flexibly purchasing treasury shares taking into account various factors, including stock market trends and capital efficiency. Through this, we
Slide 21: Key takeaways
Key takeaways ⚫ Demand for electronic musical instruments remain strong in 2H as new lifestyles settle ⚫ Although faced with serious supply issues and cost increases, we took appropriate measures. Expect to achieve the full-year target by maximizing sales in 1H ⚫ Supply issues are temporary external
Slide 22: Supplemental Information
1 Revision to the Final Year Target for the MTP (FY12/2022) 2 FY12/2021 2Q Results 3 FY12/2021 Forecast (Full Year) 4 Supplemental Information 22
Slide 23: Update on Roland Cloud
Business update 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 Creation ･音源コンテンツ Playing
Slide 24: Consolidated Financial Results / Second Half
FY12/2021 Forecast (Second Half) Consolidated Financial Results / Second Half ⚫ Assumptions for 2H forecast ✓Impact of the factory suspension ✓Procurement restrictions continue ✓Parts and shipping costs remain high ✓Postponement of some new products launch to next year ⚫ SG&A expenses are planned to
Slide 25: Consolidated Financial Results / Second Half
FY12/2021 Forecast (Second Half) Consolidated Financial Results / Second Half • Sales Decrease: Reflecting severe procurement restrictions and Malaysia plant shutdown • Margin Change: Additional price optimization to counter soaring raw materials and Highlights 前回予想からの container costs. Limited contr
Slide 26: Sales by Category
FY12/2021 Full Year Forecast Sales by Category FY12/2020 FY12/2021 JPY mn YoY1 Actual % total Forecast % total YoY w/o FX Keyboards 17,842 27.9% 26,000 33.0% +45.7% +42.1% Percussion & Wind Instruments 14,620 22.8% 17,600 22.3% +20.4% +17.4% Guitar-related Products 16,712 26.1% 18,100 23.0% +8.3% +5
Slide 27: Sales by Region
FY12/2021 Full Year Forecast Sales by Region FY12/2020 FY12/2021 JPY mn YoY1 Actual % total Forecast % total YoY w/o FX Japan 9,066 14.2% 9,300 11.8% +2.6% +2.1% North America 19,963 31.2% 24,800 31.5% +24.2% +24.0% Europe 21,027 32.8% 25,400 32.2% +20.8% +16.6% China 6,304 9.8% 9,100 11.6% +44.3% +
Slide 28: Key Consolidated Financials (PL, B/S)
Key Consolidated Financials（PL, B/S） (JPY mn) FY12/2020 FY12/2021 (JPY mn) As of Dec. As of Jun. 2Q 2Q 31, 2020 30, 2021 Net sales 28,234 43,030 Cash and deposits 10,832 11,497 Cost of sales 14,517 22,704 Notes and accounts receivable - trade 5,930 8,308 Gross profit 13,716 20,326 Inventories 18,075
Slide 29: 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