Yonex Co., Ltd. · TSE:7906
Yonex — Q3 FY3/24 Earnings Presentation
22 slides from Yonex's earnings presentation, Feb 8, 2024
Slide 1: Fiscal Year Ending March 31, 2024 Q3 Financial Results
Fiscal Year Ending March 31, 2024 Q3 Financial Results Yonex Co., Ltd. Tokyo Stock Exchange Code：7906 February 8, 2024
Slide 2: Table of Contents
Table of Contents 1. Consolidated Financial Results for FY3/24 Q3 ・・・・ 3 2. Segment Overview ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 7 3. Forecasts for FY3/24 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14 4. Topics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15 5. Appendix ・・・・・・・・・・・・・・・・・・・・・・・・・・
Slide 3: Highlights
Highlights Net Sales Operating Profit Net Profit Attributable to owners of parent 85.1 billion yen 8.2 billion yen 6.2 billion yen YoY YoY YoY +7.0％ -11.9％ -6.3％ ⚫ Demand for sports remained strong on the back of the resumption of international tournaments, our grass- roots activities, and the succe
Slide 4: Consolidated Income Statement
Consolidated Income Statement （Million yen） FY3/23 Q3 FY3/24 Q3 FY3/24 Full Year YoY Results Forecasts* Results Margins Net Sales 79,632 85,172 ― +7.0％ 116,000 （+5,539） Gross Profit 34,696 37,738 44.3％ +8.8％ ― （+3,041） SGA 25,378 29,533 34.7％ +16.4％ ― （+4,154） Operating Profit 9,317 8,204 9.6％ -11.9
Slide 5: Factors behind Operating Profit Changes
Factors behind Operating Profit Changes Gross profit increased due to improved gross profit margin in the Japan segment and higher sales. However, operating profit declined due to the SGA increase, including advertising expenses arising from international tournament sponsorships and athlete contract
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets The high levels of Inventories seen mainly in China at the end of FY3/23, caused by the spread of COVID-19, decreased due to the sales recovery recorded from February onwards. Property, plant and equipment increased mainly due to capital investments related to the start o
Slide 7: Segment Information
Segment Information Our business consists of the sporting goods division, which is divided into the four regional segments of Japan, Asia, North America, and Europe, and the sports facilities division. （Million yen） FY3/24 Q3 Results Related Entities Sales Segment Operating Composition Net Sales Sal
Slide 8: Net Sales Changes and Forex Impact (Reported Segments)
Net Sales Changes and Forex Impact (Reported Segments) The yen depreciated against all the major currencies in regions where we operate. The increase in sales in local currency terms in all of our operating territories and the weakening of the yen contributed to the increase in consolidated sales. ⚫
Slide 9: Japan Segment
Japan Segment YoY 37,545 Net Sales 37,545 million yen +5.3 % （Million yen） 35,640 27,307 Tennis sales decreased as sales growth over the past few years slowed Domestic but recovered in Q3 due in part to solid sales of new-model tennis Sales racquets. Badminton sales increased mainly in racquets on t
Slide 10: Asia Segment
Asia Segment YoY 39,290 Net Sales 39,290 million yen +6.4 % （Million yen） 36,940 Although the spread of COVID-19 negatively impacted sales in Q1, sports 22,177 activities recovered shortly thereafter, and demand for badminton and China tennis trended solidly. While Q3 sales decreased, Q1-Q3 cumulati
Slide 11: North America Segment
North America Segment YoY 4,506 4,506 million yen +16.3 % （Million yen） 3,874 Badminton sales rose, and demand remained strong, as reflected by the 2,444 Net Sales increased attendance at international badminton tournaments and related events in Canada. Despite strong sales of new model racquets, te
Slide 12: Europe Segment
Europe Segment YoY （Million yen） Net Sales 3,370 million yen +24.3 % 3,370 2,710 Strong sales of tennis equipment, including new model racquets, 1,638 Germany contributed to an increase in overall sales. Sales increased, boosted by the strong sales of badminton on the back of UK the success of the A
Slide 13: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Demand for badminton remained solid, bolstered by sales growth in both Japan and overseas. Tennis sales increased in China and Europe, while they decreased in Japan and North America, despite the recovery trend in demand in Q3. （Million yen） Sporting Goods
Slide 14: Earnings Forecasts for FY3/24
Earnings Forecasts for FY3/24 Earnings have generally been in line with expectations, and our full-year forecasts remain unchanged from the previous forecasts announced in May. We will continue to focus on achieving our forecasts while continuing to invest in personnel, IT, and other areas. (Million
Slide 15: Tennis Australian Open 2024: Strong Performance of "Head-to-Toe" Yonex Athletes
Tennis Australian Open 2024： Strong Performance of “Head-to-Toe” Yonex Athletes The great success of “head-to-toe” Yonex athletes drew significant attention to Yonex apparel and shoes, in addition to our racquets. The wave-inspired apparel design captures the drama, sounds, and emotions at the games
Slide 16: Tennis Australian Open 2024: Pop-up Shop "CLUB YONEX"
Tennis Australian Open 2024：Pop-up Shop “CLUB YONEX” Opened the first pop-up shop in Melbourne to connect with Team Yonex athletes and fans during the Australian Open. CLUB YONEX 1,500+ people visited over 5 days （January 11-15） While enjoying art, music, and snacks, players and fans interacted with
Slide 17: Sustainability: Environmentally Friendly Manufacturing
Sustainability: Environmentally Friendly Manufacturing Yonex is implementing initiatives to reduce packaging for various products while examining the impact on transportation and maintenance of product quality. Eco-friendly shoe box and trimmings Shifting to biodegradable tennis racquet covers （from
Slide 18: Appendix
Appendix
Slide 19: Reference: Fiscal Year End for Domestic and Overseas Businesses
Reference： Fiscal Year End for Domestic and Overseas Businesses Our Japan segment, including domestic sales and sales to overseas distributors, closes their fiscal year in March, while our overseas subsidiaries close their fiscal year in December. ⚫ Period Covered in FY3/24 Q3 2023 2024 Jan Feb Mar
Slide 20: Net Sales by Reported Segments
Net Sales by Reported Segments （Million yen） FY3/20 Q3 FY3/21 Q3 FY3/22 Q3 FY3/23 Q3 FY3/24 Q3 Japan (Domestic sales and sales to 29,018 19,911 27,307 35,640 37,545 overseas distributors) Asia (Subsidiaries) 13,652 12,488 22,177 36,940 39,290 North America (Subsidiaries) 1,731 1,511 2,444 3,874 4,50
Slide 21: Net Sales by Geographic Region
Net Sales by Geographic Region （Million yen） FY3/20 Q3 FY3/21 Q3 FY3/22 Q3 FY3/23 Q3 FY3/24 Q3 Japan 21,957 15,732 20,447 24,045 24,554 Overseas 24,632 19,982 33,528 55,587 60,617 Asia 19,462 15,654 27,529 43,839 48,054 North America 1,731 1,511 2,444 3,874 4,506 Europe 2,954 2,447 2,455 6,366 6,734
Slide 22: Disclaimer
Disclaimer 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. We would like to remind investors that various unforeseen factors could c