Yonex Co., Ltd. · TSE:7906
Yonex — Q1 FY3/2019 Earnings Presentation
19 slides from Yonex's earnings presentation, Aug 8, 2018
Slide 1: Financial Results 1st Quarter of Fiscal Year Ending March 31, 2019
Financial Results 1st Quarter of Fiscal Year Ending March 31, 2019 YONEX CO., LTD (Tokyo Stock Exchange Code:7906) August 8, 2018
Slide 2: 1Q Key Performance Highlights
1Q Key Performance Highlights □Net Sales Decreased by 9.2%YY to JPY 14.4bn • Domestic tennis and badminton sales decreased • Tennis sales, mainly racquets, in Europe and North America grew due to Team Yonex player’s strong performances • Badminton and apparel sales fell in China due to continued inv
Slide 3: Consolidated Financial Results
Consolidated Financial Results Gross and Operating Profits Decreased due to Net Sales Decline, Net Profit Increased due to Gain on Fixed Asset Sale FY3/18 FY3/19 (Million yen) YY Change 1Q 1Q Net Sales 15,915 14,457 -1,457 -9.2% Gross Profit 6,647 6,236 -410 -6.2% Gross Profit Margin 41.8% 43.1% ― +
Slide 4: Operating Profit Changes
Operating Profit Changes Large Impact of Gross Profit Decline from Lower Net Sales, Advertising Expenses Fell due to Review of Contents Gross Profit (Negative Impact) SGA (Negative Impact) SGA (Positive Impact) 809 (Million yen) GP Margin Increase 41.8%⇒43.1% (+1.3pt) -410 579 -207 +7 +8 +11 R&D Oth
Slide 5: Segment Sales Information
Segment Sales Information Steady Growth in North America and Europe, Asia Decreased due to Inventory Adjustment in China FY3/18 FY3/19 (Million yen) YY Change 1Q 1Q Japan 10,178 9,246 -9.2% North America 514 553 +7.4% Sporting Goods Europe 638 649 +1.8% Division Asia 4,393 3,823 -13.0% Total 15,725
Slide 6: Net Sales Change and Forex Impact (Reported Segments)
Net Sales Change and Forex Impact (Reported Segments) Large Declines in Japan and Asia, Europe Fell in Local Currency Basis, Forex Impact was Positive Local Currency Base (+) Forex Impact (Positive) Forex rate USD EUR GBP RMB TWD FY3/18 1Q* 113.63 121.07 140.79 16.56 3.65 Local Currency Base (-) For
Slide 7: Net Sales and Operating Profit of Sporting Goods Division (Japan, North America)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan North America Net Sales Operating Profit (Million yen) FY3/17 FY3/18 FY3/19 Forex rate 1Q 1Q 1Q 9,833 10,178 USD 115.47 113.63 108.29 9,246 *Jan-Mar 514 553 631 469 337 22 32 146 -9 FY3/17 FY3/18 FY3/19 FY3/17 FY3/18
Slide 8: Net Sales and Operating Profit of Sporting Goods Division (Europe, Asia)
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Europe Asia Net Sales Operating Profit (Million yen) FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 Forex rate Forex rate 1Q 1Q 1Q 1Q 1Q 1Q EUR 127.22 121.07 133.22 RMB 17.60 16.56 17.04 GBP 165.28 140.79 150.88 4,393 TWD 3.46
Slide 9: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Overseas Badminton Sales Fell, Tennis Sales Declined due to Weak Domestic Sales despite Strong Growth Overseas Sales (Million yen) FY3/19 1Q YY Change Composition Badminton 7,857 54.3% -10.3% Tennis 1,996 13.8% -6.6% Sporting Goods Golf 284 2.0% +11.6% Div
Slide 10: Consolidated Net Sales by Sports Categories (Badminton, Tennis)
Consolidated Net Sales by Sports Categories Badminton Tennis Japan Overseas (Million yen) 8,503 8,760 7,857 6,139 2,178 2,137 5,954 5,269 1,996 393 490 661 1,784 1,647 2,548 2,620 2,587 1,335 FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 1Q 1Q 1Q 1Q 1Q 1Q Overseas Sales Composition：67.1% Overseas Sales
Slide 11: Consolidated Net Sales by Sports Categories (Golf, Others)
Consolidated Net Sales by Sports Categories Golf Others Japan Overseas (Including apparel and accessories) (Million yen) 4,193 4,573 4,133 1,102 1,348 284 1,104 241 254 68 82 118 3,090 3,225 3,029 173 172 165 FY3/17 FY3/18 FY3/19 FY3/17 FY3/18 FY3/19 1Q 1Q 1Q 1Q 1Q 1Q Overseas Sales Composition：41.8
Slide 12: Consolidated Earnings Forecasts for Fiscal Year March 2019
Consolidated Earnings Forecasts for Fiscal Year March 2019 FY3/18 1H FY3/18 FY3/19 1H FY3/19 (Million yen) YY Change YY Change Results Results Forecasts Forecasts Net Sales 32,232 62,188 32,000 -0.7% 64,500 +3.7% Operating Profit 1,871 2,925 1,600 -14.5% 3,000 +2.6% Operating profit margin 5.8% 4.7%
Slide 13: Tennis: Angelique Kerber Wins Her Third Grand Slam Title!
Tennis： Angelique Kerber Wins Her Third Grand Slam Title! Wimbledon 2018 (July 2-15) Angelique Kerber (GER) wins her first Wimbledon crown, adding to her US Open 2016 and Australia Open 2016 victories YONEX was the No. 1 brand amongst the boys and girls who made it to the Round of 16* Boy’s Doubles
Slide 14: Badminton: TOTAL BWF World Championships 2018
Badminton： TOTAL BWF World Championships 2018 （July 30 – August 5, Nanjing, China） Kento Momota (JPN) is world champ! Team Yonex wins three golds! (Fielded 6 of 10 finalists) The first Japanese player to win a men’s singles title Women’s Singles Champion Women’s Doubles Champion at the World Champio
Slide 15: Appendix
Appendix
Slide 16: Consolidated Net Sales (Japan & Overseas)
Consolidated Net Sales (Japan & Overseas) Japan Overseas (Million yen) 15,915 15,297 14,457 11,623 11,675 7,519 8,060 49.2% 50.6% 7,154 4,628 3,917 49.5% 39.8% 33.6% 6,994 7,757 7,777 7,855 7,303 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 1Q 1Q 1Q 1Q 1Q ※”Overseas” include exports and intermediary sales fro
Slide 17: Net Sales (Reported Segments)
Net Sales (Reported Segments) Japan (Export, Intermediary Sales) North America (subsidiary) (Million yen) Europe (subsidiary) Asia (subsidiary) Sports Facilities 15,915 15,297 190 179 14,457 185 4,393 4,174 11,623 11,675 3,823 175 470 182 537 ※1 638 680 401 653 493 639 514 469 649 553 9,895 9,808 9,
Slide 18: Net Sales (Unreported Regional Data)
Net Sales (Unreported Regional Data) Japan North America Europe Asia Others (Million yen) 15,915 15,297 145 119 14,457 138 11,623 11,675 5,883 6,317 69 126 5,402 2,976 2,281 1,017 1,047 1,082 1,060 1,180 493 469 514 553 401 6,994 7,757 7,777 7,855 7,303 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 1Q 1Q 1Q 1Q
Slide 19: Forward-looking statements and IR 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