Dunlop Sports Co. Ltd.

Transcription

1 Dunlop Sports Co. Ltd. (Stock Code :7825 Tokyo Stock Exchange) Second Quarter of FY Financial Results Briefing Material August 7,

2 First Half Earnings

3 Summary of Consolidated Financial Results Overseas sales was strong. Operating and pretax profits both rose. Operating profit (%) Profit Jan-Jun 2016 Jan-Jun (%) -0.3 ( -1%) Forecast Announced 17/2/14 *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero. vs. previous year () vs. forecast Revenue declined slightly. Operating profit rose because of strong overseas sales, improved gross margin, and reduced expenses. Profit before tax increased as foreign exchange operations in financial revenue mainly turned profitable. The results significantly exceeded the forecast as well. <3> Change (Reference) Jan-Mar Apr-Jun Revenue (6.6%) (6.3%) (+4%) (3.6%) (6.1%) (7.1%) before tax (+106%) (6.8%) (6.9%) Net profit (+278%) (1.6%) (3.6%) (3.5%) Japanese golf equipment market -3% Japanese tennis equipment market -2% U.S. golf equipment market -4%

4 Revenue by Products Golf club and accessories sales declined. Golf ball sales rose. Jan-Jun Amount % Golf clubs % -0.5 Golf balls % +0.5 Golf others % -0.5 Golf equipment Tennis equipment License revenue Sports equipment Services Wellness Total % % % % % % % -0.2 *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero. Excluding currency effect <4> Japan Overseas (excl. currency) Golf clubs Golf balls Golf others Total Golf clubs Revenue in Japan declined because of the market situation and increased competition. Revenue overseas increased for the respective brands. Golf balls Revenue increased significantly both in Japan and overseas with strong sales of the new Z-STAR product. Wellness Revenue rose with continuation of opening new compact gym outlets. Membership at existing outlets remained firm.

5 Revenue by Region Sales rose overseas despite declining in Japan. Jan-Jun Japan North America Europe Asia Australia South Africa Overseas Revenue Ratio of Overseas Revenue (Equipment business) Consolidated Revenue change % +6.1P +6.2P (49.4%) (+7.5P) (+7.7P) *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero. Excluding currency effect <5> Japan Golf equipment sales declined because of golf clubs. Wellness sales rose. North America/Europe Sales rose from strong sales of golf clubs and golf balls. Tennis equipment business was launched in North America. Asia XXIO 9 continues to be popular in South Korea. [Exchange rate of major currencies] JPY 2016 Change % USD KRW GBP % % %

6 Operating Profit Analysis Profit increased with higher overseas sales and from reduced costs and expenses Jan-Jun Japan -1.3 Overseas +1.3 Sales vol. Product mix Material costs Cost reduction Currency exchange Other expenses Jan-Jun Golf clubs Golf balls Tennis balls [Exchange rate of major currencies] JPY 2016 Change % USD % KRW % 2.4 *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero. <6>

7 Status of Financial Position Statement (B/S) Interest-bearing debt grew 1.9 billion yen, and the equity ratio dropped 1.5P. End 2016 of 年 Dec 月末 End of Jun 年 6 月末 (Billion ( 億円 ) yen) *Amounts less than 100 million yen are 億円未満四捨五入 rounded off. Current Liabilities 負債 Current 流動資産 assets 流動資産 assets 負債 Liabilities Noncurrent assets 非流動資産 Shareholders equity 資本 Noncurrent 非流動資産 assets Shareholders equity 資本 Total assets 55.6 Capital to asset ratio Interest-bearing debt 60.6% 5.6 <7> Total assets 57.6 Capital to asset ratio Interest-bearing debt 59.1% 7.5

8 Consolidated revenue/operating profit 1 st Half Although revenue declined slightly, operating profit rose. Billion yen Sales/Revenue Operating profit JGAAP IFRS _1H 2011_1H 2012_1H 2013_1H 2014_1H 2015_1H 2016_1H _1H -1.0 USD to JPY <8>

9 Full Year Earnings Forecast

10 Consolidated Earnings Forecast Expecting revenue to rise and operating profit to decline. Revenue Jan-Dec forecast 2016 Jan-Dec (%) (+4%) Previous forecast Announced 17/2/14 Change Japanese golf equipment market -2% Japanese tennis equipment market -4% U.S. golf equipment market -3% Operating profit (%) (4.6%) (5.5%) ( -13%) (3.7%) 0.7 Net profit (+17%) (2.1%) ROE 6.1% 5.7% +0.5% 4.7% +1.4% *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero. Dividend per share Total dividend Interim 10 yen 10 yen - yen Year to Dec Year end 1.16 billion yen (forecast) 30 yen 25 yen +5 yen Full year (forecast) 40 yen 35 yen +5 yen <10> Forecast as of 17/2/14 Change

11 Revenue by Products (forecast) Expecting sales to rise mainly with golf clubs and golf balls. Golf clubs Golf balls Golf others Golf equipment Tennis equipment License revenue Sports equipment Services Wellness Total Jan-Dec Amount % % % % % % % % % % % +2.6 *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero. Excluding currency effect <11> Golf clubs Golf balls Golf others Total Japan Overseas (excl. currency) Golf clubs Expecting sales to decline in Japan but rise overseas. Golf balls Expecting sales to rise mainly in North America and South Korea. Tennis equipment Expecting sales to rise with increased sales in Japan, as well as with launch of tennis equipment business in North America. Services Expecting tournament orders to decline. Wellness Expecting sales to increase from new outlets, and membership at existing outlets to remain firm.

12 Revenue by Region (forecast) Expecting sales to rise in all regions, mainly in North America. Jan-Dec change Excluding currency effect Japan Expecting golf sales to decline but tennis and wellness sales to rise. Japan North America Europe Asia Australia South Africa Overseas Revenue Ratio of Overseas Revenue (Equipment business) Consolidated Revenue % +2.6P +2.1P (42.3%) (+3.1P) (+2.6P) North America Expecting sales to rise with higher golf club and golf ball sales and with launch of tennis equipment business. Europe Expecting golf club and golf ball sales to rise. Asia Expecting sales to decline in China but to rise in Southeast Asia and Thailand. [Exchange rate of major currencies] JPY 2016 Change % USD % KRW % GBP % *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero. <12>

13 Consolidated Operating Profit Analysis (forecast) Despite strong overseas sales, expecting profit to decline as material prices is likely to rise Jan-Dec Sales vol. Product mix +0.4 Material costs -0.8 Cost reduction Currency exchange Other expenses -0.4 Jan-Dec Japan -0.4 Overseas +0.8 Golf clubs Golf balls Tennis balls [Exchange rate of major currencies] JPY 2016 Changes % 4.0 USD % 3.5 KRW % *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero. <13>

14 Full year Consolidated Revenue/Operating profit Expecting revenue to rise and operating profit to decline. Billion yen 90.0 Sales/Revenue Operating profit JGAAP IFRS forecast 0 USD to JPY <14>

15 This document was prepared for the benefit of investors to contribute to their understanding of the current situation of Dunlop Sports Co. Ltd. The contents described in this document are prepared and based on generally acknowledged economic/social conditions and certain assumptions determined reasonable by the company at the time of preparation of the material and are subject to change without advance notice due to factors, including changes in the management environment. We kindly ask investors to make investments at their discretion. ~ Contact ~ Dunlop Sports Co. Ltd. Public Relations TEL: +81-(0) FAX: +81-(0) dunlopsports.ir@dunlopsports.co.jp URL: