Yonex Co., Ltd. · TSE:7906
Yonex — Q3 FY3/18 Earnings Presentation
20 slides from Yonex's earnings presentation, Feb 6, 2018
Slide 1: Financial Results 3rd Quarter of Fiscal Year Ending March 31, 2018
Financial Results 3rd Quarter of Fiscal Year Ending March 31, 2018 YONEX CO,. LTD. (TSE: 7906) February 6, 2018
Slide 2: 1Q-3Q Key Performance Highlights
1Q-3Q Key Performance Highlights Net Sales Increased by 2.1% YY to JPY 46.2bn • Solid sales in badminton and apparel within Japan due to strong performance of Japanese badminton players in comprehensive global sporting events • Sales in China fell due to inventory adjustment despite ongoing effort
Slide 3: Consolidated Financial Results
Consolidated Financial Results Net Sales Grew by 2.1%, but Profit Fell Mainly due to Gross Profit Decrease FY3/17 FY3/18 (Million yen) YY Change 1Q-3Q 1Q-3Q Net Sales 45,239 46,201 961 +2.1% Gross profit 19,807 18,725 -1,081 -5.5% Gross profit margin 43.8% 40.5% ― -3.3pt Operating profit 2,762 1,459
Slide 4: Consolidated Net Sales (Japan & Overseas)
Consolidated Net Sales (Japan & Overseas) Overseas Sales Ratio Decreased to 50.6% (-0.3% points YY) Japan Overseas （Million yen） 45,239 46,201 38,441 35,312 31,802 23,041 23,356 15,870 14,541 11,668 20,133 20,770 22,570 22,197 22,844 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q ※
Slide 5: Consolidated Operating Profit Changes
Consolidated Operating Profit Changes Large Impact of Gross Profit Decline, Advertising Expenses Fell mainly in Asia (Million yen) Gross Profit (negative impact) SGA (positive impact) 2,762 SGA (negative impact) -1,081 +70 1,459 Gross Profit +230 -217 R&D +136 expenses Other Personnel Advertising ex
Slide 6: Segment Sales Information
Segment Sales Information Steady Growth in North America and Europe, while Asia Declined (-0.1% points YY) （Million yen） FY3/17 FY3/18 YY Change 1Q-3Q 1Q-3Q Japan 28,545 29,228 +2.4% North America 1,330 1,497 +12.6% Sporting Goods Division Europe 1,653 1,788 +8.2% Asia 13,254 13,242 -0.1% Total 44,7
Slide 7: Net Sales Change and Forex Impact (Reported Segments)
Net Sales Change and Forex Impact (Reported Segments) Local Currency Based Changes; North America +9.3%, Europe +9.5%, Asia -0.9% Local Currency base Forex impact (positive) (Million yen) Forex impact (negative) 46,201 +43 +157 -22 -115 +102 -10 +123 +682 45,239 FY3/17 Japan North America Europe Asi
Slide 8: Net Sales and Operating Profit of Sporting Goods Division (Reported Segments)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan North Forex rate FY 3/16 FY 3/17 FY 3/18 28,655 28,545 29,228 (Jan-Sep) (Jan-Sep) (Jan-Sep) America USD 120.89 108.68 111.92 1,133 （Million yen） 993 1,518 1,497 1,330 271 65 118 56 FY3/16 FY3/17 FY3/18 FY3/16 FY3/17
Slide 9: Net Sales and Operating Profit of Sporting Goods Division (Reported Segments)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) FY 3/16 FY 3/17 FY 3/18 FY 3/16 FY 3/17 FY 3/18 Forex rate Forex rate Europe (Jan-Sep) (Jan-Sep) (Jan-Sep) Asia (Jan-Sep) (Jan-Sep) (Jan-Sep) EUR 134.76 121.17 124.54 RMB 19.31 16.49 16.47 GBP 185.34 151.70 142.66 TWD 3.83
Slide 10: Net Sales (Reported Segments)
Net Sales (Reported Segments) Japan(Export・Intermediary Sales) North America (subsidiary) Europe(subsidiary) Asia (subsidiary) sports facilities （Million yen） 45,239 46,201 454 443 38,441 443 13,254 13,242 35,312 418 5,980 ※1 31,802 1,345 430 1,801 1,653 1,788 1,207 1,221 1,843 1,497 1,496 1,029 1,5
Slide 11: Net Sales (Unreported Regional Data)
Net Sales (Unreported Regional Data) Increase in North America, Europe and Japan, but Slight Decrease in Asia Japan North America Europe Asia Others （Million yen） 45,239 46,201 413 456 38,441 35,312 335 31,802 272 18,517 18,388 144 10,912 10,104 7,965 3,012 3,105 2,780 2,528 2,943 1,518 1,330 1,497
Slide 12: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Overseas Tennis Grew, Badminton Sales Remained Flat due to a Slowing in China (Million yen) FY3/18 Sales YY Change 1Q-3Q Composition Badminton 25,712 55.7% +0.4% Tennis 5,984 12.9% +6.6% Sporting Goods Division Golf 794 1.7% +18.6% Others 13,265 28.7% +2.8
Slide 13: Composition of Consolidated Net Sales (By Sports Categories)
Composition of Consolidated Net Sales (By Sports Categories) Badminton Accounts for Majority of Sales, Followed by Others (including apparel) and Tennis Badminton Tennis Golf Others Sports Facilities 1.0% （Million yen） 28.7% 55.7% 1.7% 12.9% 12
Slide 14: Badminton Sales (Japan & Overseas)
Badminton Sales (Japan & Overseas) Steady Growth in Japan on back of New Product Launches, Overseas Sales Declined due to Inventory Adjustments Japan Overseas （Million yen） 25,712 YY Change 25,602 + 109 million yen （+0.4％） 20,198 18,407 15,505 Overseas - 225 million yen 18,279 18,054 （-1.2%） 13,014
Slide 15: Tennis Sales (Japan & Overseas)
Tennis Sales (Japan & Overseas) Growth in Europe and North America due to Strong Performances of Team Yonex Players Japan Overseas （Million yen） 5,984 YY Change 5,612 5,166 + 372 million yen 4,676 1,736 （+6.6%） 4,210 1,268 934 817 Overseas + 467 million yen 600 （+36.8%） Japan - 95 million yen （-2.2%
Slide 16: Golf Sales (Japan & Overseas)
Golf Sales (Japan & Overseas) Japan and Overseas Recover due to New Product Launches Japan Overseas （Million yen） 947 YY Change 893 + 124 million yen 821 794 （+18.6%） 377 327 669 334 275 Overseas + 69 million yen 205 （+33.6%） Japan + 55 million yen （+11.9%） 569 565 486 519 464 Overseas Sales Composi
Slide 17: Other Sales (Japan & Overseas)
Other Sales (Japan & Overseas) Steady Growth in Apparel in Japan, Slowing Overseas due to Inventory Adjustment in China Japan Overseas （Million yen） 12,899 13,265 YY Change 11,811 + 366 million yen 10,708 10,917 3,290 （+2.8%） 1,586 3,287 1,083 1,335 Overseas + 2 million yen （+0.1%） Japan + 363 milli
Slide 18: Sports Facilities Division Sales (Japan)
Sports Facilities Division Sales (Japan) Decline due to Prolonged Rain and Early Snow Offset Efforts to Attract Guests Japan （Million yen） 454 443 YY Change 430 443 - 10 million yen 418 （-2.3%） FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q 1Q-3Q Sports facilities division: Golf course,
Slide 19: Consolidated Earnings Forecasts of Fiscal Year March 2018
Consolidated Earnings Forecasts of Fiscal Year March 2018 FY3/18 FY3/17 FY3/18 (Million yen) YY Change Revised forecasts YY Change Results Original forecasts (2017/10/26) Net sales 61,042 65,000 +6.5% 63,500 +4.0% Operating profit 4,147 4,400 +6.1% 3,100 -25.3% Operating profit margin 6.8% 6.8% -0.0
Slide 20: 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 the materials were prepared. Investors are cautioned that various unforeseen factors could cause actual results to