Financial Results Highlights

FY12/2024 Q1

May 9, 2024

Roland Corporation

TSE Prime: 7944

『LX-9』 Digital Piano

Executive summary

  • As expected, softer sell-in due to adjustments in Dealer inventories, etc., but this has already been factored into our budget.
  • Both sales and profits exceeded the internal plan for Q1.
  • New product development is progressing well.
  • Although there are uncertainties in demand especially in North America, we maintain 1H and full-yearguidance.

2

  1. FY12/2024 Q1 Results
  2. FY12/2024 Forecast

3 Supplemental Information

  1. FY12/2024 Q1 Results
  2. FY12/2024 Forecast

3 Supplemental Information

FY12/2024 Q1 Financial Results

Highlights

Sales

22.0bn

(YoY：-3.4%)

Operating Profit

1.5bn

(YoY ：-22.5%)

Net Income1

0.9bn

(YoY ：-30.4%)

  • Rebound from aggressive sell-in in Q4 of the previous year aimed at improving balance sheet health, but within our expectations
  • YoY decrease in profit due to volume decline is within expectations
  • Normalization of sales strategy is slightly slower than expected, but this is covered by tighter cost execution.
  • No major extraordinary gains or losses

1 Net income refers to "net income attributable to owners of parent"

5

FY12/2024 Q1 Financial Results

Consolidated Financial Forecast

  • Gross profit margin improved by 1.6pt from Q4 of the previous year (3M: 40.9%)

FY12/2023 Q11

FY12/2024 Q12

(JPY mn)

Actual

% of Sales

Forecast

% of Sales

YoY

Sales

22,861

100.0%

22,083

100.0%

-3.4%

9,748

42.6%

9,392

42.5%

-3.7%

Gross Profit

SG＆A

7,729

33.8%

7,827

35.4%

+1.3%

Operating Profit

2,018

8.8%

1,564

7.1%

-22.5%

1,408

6.2%

980

4.4%

-30.4%

Net Income3

EBITDA

2,663

11.7%

2,269

10.3%

-14.8%

1

Exchange rates for FY12/2023 Q1

USD/JPY: 132.36, EUR/JPY: 142.16, EUR/USD: 1.074

2

Exchange rates for FY12/2024 Q1

USD/JPY: 148.61, EUR/JPY: 161.36, EUR/USD: 1.086

3

Net income refers to "net income attributable to owners of parent"

6

FY12/2024 Q1 Financial Results

Sales by Category

  • The main reason for the YoY decline excluding FX in the major categories was the impact of dealer inventory adjustments, which was in line with internal assumptions.
  • (vs. Q1 Plan) Keyboards:○, Percussion & Wind:○, Guitar-related:△,Creation-related:○, Video & Pro Audio:△, Others: ○

(JPY mn)

Keyboards

Perc. & Wind

Guitar-related

Creation-related Video & Pro Audio

Others

Total

YoY1

-2.4%

-1.8%

-2.0%

-4.0%

-28.7%

+1.6%

-3.4%

(-11.8%)

(-11.9%)

(-11.7%)

(-14.0%)

(-34.5%)

(-8.1%)

(-13.0%)

5,594

5,461

2023Q1

2024Q1

6,732

6,612

2023Q1

2024Q1

5,648

5,533

2023Q1

2024Q1

3,131

3,006

2023Q1

2024Q1

1,029

734

724

735

2023Q1

2024Q1

2023Q1

2024Q1

1 Figures in ( ) are comparisons excluding the effect of FX rates

7

FY12/2024 Q1 Financial Results

Sales by Region

  • The main reason for the YoY decline excluding FX in the major categories was the impact of dealer inventory adjustments, which was in line with internal assumptions.
  • (vs. Q1 Plan) Japan:△, North America:△, Europe:○, China:○, Emerging countries: ○

(JPY mn)

Japan

North America

Europe

China

Others

Total

YoY1

-18.4%

+5.8%

-8.9%

-4.4%

-2.7%

-3.4%

(-18.4%)

(-5.7%)

(-19.7%)

(-10.6%)

(-13.7%)

(-13.0%)

2,554 2,084

2023Q1

2024Q1

8,229

8,709

2023Q1

2024Q1

7,099

6,469

2023Q1

2024Q1

1,455 1,392

2023Q1 2024Q1

3,522 3,427

2023Q1

2024Q1

1 Figures in ( ) are comparisons excluding the effect of FX rates

8

FY12/2024 Q1 Financial Results

Consolidated Operating Profit

Changes (vs Previous year)

Sales Volume change

(JPY bn)

Selling Price / Cost ratio change

SG&A change

FX impact

+0.7

2.0

-1.1

+0.4

1.5

-0.5

Factors

  • Sales Volume
    • Rebound from aggressive sell-in in Q4 of the year (Dealer inventory has been adjusted)
  • Selling Price / Cost ratio
    • Although progress has been made compared to Q4/2023, normalization of sales strategy is still underway (-)
    • DW earnings improvement (+)
  • SG&A
    • Decrease in expenses due to lower sales volume
    • Tighter execution with close monitoring of market conditions

FY12/2023 Q1

FY12/2024 Q1

9

FY12/2024 Q1 Financial Results

Topics: Major new products and services announced in the first quarter

Creation-related equipment & services

Stage Pianos

Roland Cloud

  • Reasonably priced stage piano with expressive sound and playability
  • Upgrade software available from Roland Cloud

⚫ In collaboration with Melodics , the acclaimed casual music

lesson app, we now offer "Melodics Essentials for Roland".

  • Lesson services on Roland Cloud will be expanded in the future.

Upgrade software available on

Image of 『RD-08』

Roland Cloud 『RD-08 Upgrade』

Gaming Audio Mixer / Video Capture

Screen image of 『Melodics Essentials for Roland』

  • High-endmodel with video functions added to Roland's first audio mixer for game distributors released last year
  • Compatible with the "BGM CAST" service of Roland Cloud, which enables the use of copyright-free background music and sound effects

Roland Account

  1. Cloud User1 Paid User2 Subscriber

2023Q4

2024Q1

2.7M

2.8M

1.2M

1.4M

115K

123K

28K

29.5K

『BRIDGE CAST X』

1 Cumulative number of users of the Roland Cloud service

2 Number of subscribers registered at the end of each financial year + number of single purchases during 10 each financial year

Attachments

Disclaimer

Roland Corporation published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 06:08:09 UTC.