Dunlop Sports Co. Ltd. First Quarter of FY 2017 Financial Results Briefing Material May 9, 2017
Summary of Consolidated Financial Results Operating profit and profit before tax both increased Operating Profit (%) IFRS 2017 2016 Jan.-Mar. Jan.-Mar. Revenue 16.9 16.9 0.0 *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero (+0%) 1.0 0.6 +0.5 (6.1%) (3.3%) (+83%) Profit before tax 1.2 0.2 Net Profit 0.6-0.2 y-o-y (% change) +1.0 (+670%) +0.8 - y-o-y 96% Japanese golf equipment market -4% 97% Japanese tennis equipment market -3% 96% U.S. golf equipment market -4% y-o-y Revenue increased 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. <2>
Revenue by Products Golf club sales declined, golf ball sales rose 2017 Jan.-Mar. Amount % Excluding currency effect Golf clubs 7.4-0.8-10% -0.7 Golf balls 3.8 +0.9 +29% +0.9 Golf others 1.5-0.1-7% -0.1 Golf equipment Tennis equipment License revenue Sports equipment Services Wellness Total y-o-y 12.7-0.1-1% +0.1 1.6 +0.1 +5% +0.1 0.2 +0.1 +46% +0.1 14.5 +0.0 +0% +0.2 0.3-0.1-13% -0.1 2.1 +0.0 +2% +0.0 16.9 +0.0 +0% +0.2 *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero <3> Japan Overseas (ex.currency) Golf clubs -1.5 +0.7 Golf balls +0.2 +0.8 Golf others -0.2 +0.1 Total -1.5 +1.6 Golf clubs Revenue in Japan fell because of market demand and increased competition. Revenue from overseas increased mainly with wedges. Golf balls Revenue increased significantly both in Japan and abroad with strong sales of the new Z-STAR product. Wellness Revenue rose with continuation of opening new compact gyms.
Revenue by Region Sales increased overseas despite declining in Japan 2017 Jan.-Mar. y-o-y change Excluding currency effect Japan 9.5-1.4-1.4 North America 2.4 +0.8 +0.9 Europe 1.4 +0.1 +0.3 Japan Golf equipment revenue decreased because of golf clubs. Revenue from tennis equipment and wellness increased. North America/Europe/Asia Revenue increased from strong sales of golf clubs and golf balls. Asia 3.2 +0.4 +0.4 Australia South Africa 0.5 +0.1 +0.0 Overseas Revenue 7.4 +1.4 +1.6 Ratio of Overseas Revenue 44.0% +8.3P +8.8P (Equipment business) (51.3%) (+9.6P) (+10.2P) Consolidated Revenue 16.9 +0.0 +0.2 *Amounts less than 100 million yen are rounded off, amounts less than ± 50 million yen are shown as zero <4> [Exchange rate of major currencies] yen 2017 2016 Change % USD 113.6 115.4-1.8-2% KRW 0.099 0.096 +0.003 3% EUR 121.1 127.2-6.1-5%
Operating Profit Analysis Profit increased with rise in overseas sales, reduced expense 2016 Jan.-Mar. Sales vol. Product mix +0.2 Material costs -0.1 Cost reduction Currency exchange Other expenses +0.1 +0.1 +0.2 2017 Jan.-Mar. 1.0 +0.5 0.5 Golf clubs -0.01 Golf balls -0.06 0.0 0.6 Tennis balls -0.01 [Exchange rate of major currencies] yen 2017 2016 Change % USD 113.6 115.4-1.8-2% KRW 0.099 0.096 +0.003 3% EUR 121.1 127.2-6.1-5% 1.0 <5>
Statement of Financial Position (B/S) Interest-bearing debt grew * 3.3 billion yen, equity ratio dropped 3.2P 流動資産 32.9 329 (*) Mainly for financing the investment in Dunlop International End of Dec. 2016 End of Mar. 2017 Current assets ( 億円 ) 2016 年 12 月末 2017 年 3 月末 Liabilities *Amounts less than 100 million yen are rounded off 億円未満四捨五入 Current 20.7 負債 23.1 負債 assets 207 流動資産 33.3 231 333 +0.4 +4 Liabilities +2.4 +24 Noncurrent assets 非流動資産 22.7 227 Shareholders equity 34.9 資本 349 Noncurrent assets 非流動資産 24.3 243 +1.6 Shareholders equity 34.6 資本 346-0.3 +16 Total assets 55.6 Total assets 57.7 Capital to asset ratio 60.6% Capital to asset ratio 57.4% 総資産 556 総資産 577 Interest-bearing debt 5.6 Interest-bearing debt 8.9 自己資本比率 60.6% 自己資本比率 57.4% <6> 有利子負債 56 有利子負債 89 3
Consolidated revenue/operating profit Although revenue was unchanged y-o-y, operating profit rose Billion yen 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0 15.8 1.7 Sales 13.6 0.7 Operating profit 14.8 1.3 14.1 15.7 0.3 0.3 Japanese GAAP 17.1 16.9 16.9-0.5 IFRS 2010_1Q 2011_1Q 2012_1Q 2013_1Q 2014_1Q 2015_1Q 2016_1Q 2017_1Q 0.6 1.0 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0-0.5-1.0 USD exchange rate 90.7 82.3 79.4 92.5 102.8 119.2 115.4 113.6 <7>
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)78-265-3139 FAX: +81-(0)78-265-3135 E-mail: dunlopsports.ir@dunlopsports.co.jp URL:http://www.dunlopsports.co.jp/en/