Slide 1: Financial Results Highlights FY12/2022 1Q
Financial Results Highlights FY12/2022 1Q May 11, 2022 Roland Corporation TSE Prime : 7944 FANTOM-0 brings your creative world together, combining the sonic power and fluid workflow of the top- of-the-line FANTOM series in streamlined instruments that go everywhere your inspiration takes you.
Slide 2: Executive Summary
Executive Summary ⚫ Supply challenges (procurement constraints/cost increases) continued, but demand remains strong ⚫ Significant increase in Sales and Profits compared to Q4/2021 due to recovery of production capacity and the price optimization ⚫ Results slightly higher than expected compared to th
Slide 3: Agenda
1 FY12/2022 1Q Results 2 FY12/2022 Forecast 3 Supplemental Information 3
Slide 4: FY12/2022 1Q Results
1 FY12/2022 1Q Results 2 FY12/2022 Forecast 3 Supplemental Information 4
Slide 5: Note: Changes in the accounting standard
<Note: Changes in the accounting standard> • Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, revised on March 31, 2020, effective from April 1, 2021) is newly applied to our sales and operating profit from FY2022 • Accordingly, YoY changes for FY2022 (new standard) vs. FY2021 (ol
Slide 6: 1Q Financial Results Highlights
FY12/2022 1Q Financial Results Highlights ⚫ Results slightly higher than expected compared to the company plan ⚫ Inventory management in 2020/Q4-2021/Q1 (~JPY2bn sales shift) negatively impacted YoY Sales • Continued strong demand for Electronic Musical Instruments 20.9bn • Almost flat YoY excluding
Slide 7: Consolidated Financial Results
FY12/2022 1Q Financial Results Consolidated Financial Results FY12/20221 1Q1 FY12/2022 1Q2 New Standard Old standard (same as previous year) (JPY mn) Actual % of Sales Forecast % of Sales YoY Forecast % of Sales YoY Sales 22,355 100% 20,978 100.0% - 21,177 100.0% -5.3% Gross Profit 10,491 46.9% 8,80
Slide 8: Sales by Category
FY12/2022 1Q Financial Results Sales by Category ⚫ All Category: Inventory management in 2020/Q4-2021/Q1 (~JPY2bn sales shift) negatively impacted YoY FY12/2021 FY12/2022 1Q 1Q JPY mn YoY1 Actual % total Actual % total YoY w/o FX Situation (vs forecast) Demand for electronic pianos remained high. De
Slide 9: Sales by Region
FY12/2022 1Q Financial Results Sales by Region ⚫ All Region: Inventory management in 2020/Q4-2021/Q1 (~JPY2bn sales shift) negatively impacted YoY FY12/2021 FY12/2022 1Q 1Q YoY1 JPY mn Actual % total Actual % total YoY w/o FX Situation (vs Forecast) Store customer traffic recovered due to a decrease
Slide 10: Consolidated Operating Profit
FY12/2022 1Q Financial Results Consolidated Operating Profit Changes (vs Previous year) Factors (changed analysis items) (JPY bn) • Sales Volume change Sales Volume change Selling Price / Cost ratio change ✓ Rebound from inventory management in SG&A change 2020/Q4-2021/Q1 FX impact ✓ Supply constrai
Slide 11: Despite the difficult environment, production volume and order backlogs have improved
FY12/2022 1Q Financial Results Despite the difficult environment, production volume and order backlogs have improved Malaysia Plant Production Volume Order backlog transition ⚫ Production recovered despite procurement constraints ⚫ Order backlog improved due to increased production ⚫ Stable operatio
Slide 12: FY12/2022 Forecast
1 FY12/2022 1Q Results 2 FY12/2022 Forecast 3 Supplemental Information 12
Slide 13: Consolidated Financial Forecast (No change)
FY12/2022 Full Year Forecast Consolidated Financial Forecast (No change) FY12/20211 FY12/20222 New Standard Old standard (same as previous year) (JPY mn) Actual % of Sales Forecast % of Sales YoY Forecast % of Sales YoY Sales 80,032 100.0% 85,000 100.0% - 85,800 100.0% +7.2% Gross Profit 36,137 45.2
Slide 14: Full year Sales and Profits expected to increase
FY12/2022 Full Year Forecast Full year Sales and Profits are expected to increase from the previous year (No change) ⚫ Currently we expect the Russia-Ukraine issue and the China lockdown to give a negligible effect on our earnings forecast ⚫ If a significant impact is expected in the future, it will
Slide 15: Quarterly OP turned around by countermeasures
FY12/2022 Full Year Forecast Despite a challenging environment, quarterly OP turned around by our counter measures Demand Strong demand for electronic music instruments as new lifestyles becoming habit No major improvement in procurement and marine transportation constraints, but Supply Malaysian fa
Slide 16: Consolidated Operating Profit (No change)
FY12/2022 Full Year Forecast Consolidated Operating Profit (No change) Changes (vs Previous year) Factors (changed analysis items) (JPY bn) Sales Volume change • Sales Volume change Selling Price/Cost ratio change ✓ For the first half, a reactionary decline from SG&A change inventory management in 2
Slide 17: Supplemental Information
1 FY12/2022 1Q Results 2 FY12/2022 Forecast 3 Supplemental Information 17
Slide 18: Impact of Russia-Ukraine Issues and China Lockdown
Supplemental information Impact of Russia-Ukraine Issues and China Lockdown ⚫ Currently, we do not expect the impact to be material to our forecast. ⚫ Inflationary effects worldwide will be closely monitored; if a major impact is expected, it will be disclosed Russia China ⚫ Sales subsidiary in Mosc
Slide 19: Update on Roland Cloud
Supplemental information 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 Mid to Long Term
Slide 20: 50th Anniversary Marketing Activities
Supplemental information 50th Anniversary Marketing Activities • Founded in 1972, Roland celebrates its 50th anniversary on April 18, 2022 • Unveiled a special website "Roland at 50“ to commemorate this milestone year and to express our gratitude to customers around the world • Various projects are
Slide 21: First Half Forecast (Feb. 10, 2022, Disclosed)
Supplemental information First Half Forecast (Feb. 10, 2022, Disclosed ) FY12/2021 First Half1 FY12/2022 First Half2 New standard Old standard (same as previous year) (JPY mn) Actual % of Sales Forecast % of Sales YoY Forecast % of Sales YoY Sales 43,030 100.0% 40,600 100.0% ｰ 41,000 100.0% -4.7% Gr
Slide 22: Second Half Forecast (Feb. 10, 2022, Disclosed)
Supplemental information Second Half Forecast (Feb. 10, 2022, Disclosed ) FY12/2021 Second Half1 FY/12/2022 Second Half2 New standard Old standard (same as previous year) (JPY mn) Actual % of Sales Forecast % of Sales YoY Forecast % of Sales YoY Sales 37,002 100.0% 44,400 100.0% ｰ 44,800 100.0% +21.
Slide 23: Sales by Category (Feb. 10, 2022, Disclosed)
FY12/2022 Full Year Forecast Sales by Category (Feb. 10, 2022, Disclosed ) FY12/2021 FY12/2022 JPY mn YoY1 Actual % total Actual % total YoY w/o FX Keyboards 24,792 31.0% 27,900 32.8% － +13.3% Percussion & Wind Instruments 19,053 23.8% 19,500 22.9% － +1.9% Guitar-related Products 19,093 23.9% 19,800
Slide 24: Sales by Region (Feb. 10, 2022, Disclosed)
FY12/2022 Full Year Forecast Sales by Region (Feb. 10, 2022, Disclosed ) FY12/2021 FY12/2022 JPY mn YoY1 Actual % total Actual % total YoY w/o FX Japan 9,666 12.1% 9,700 11.4% － +0.3% North America 25,959 32.4% 27,200 32.0% － +3.3% Europe 24,958 31.2% 25,600 30.1% － +6.5% China 8,673 10.8% 10,700 12
Slide 25: Key Consolidated Financials (PL, B/S)
Supplemental information Key Consolidated Financials（PL,B/S） FY2021 FY2022 As of Dec. As of Mar. (JPY mn) (JPY mn) 1Q 1Q 31, 2021 31, 2022 Net sales 22,355 20,978 Cash and deposits 8,781 8,557 Cost of sales 11,863 12,169 Notes and accounts receivable - trade 7,444 9,874 Gross profit 10,491 8,808 Inv
Slide 26: 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