Quarterly Securities Report
For the First Quarter of the 52nd Fiscal Year (January 1, 2023 through March 31, 2023)
Roland Corporation
- This is an English translation of the Quarterly Securities Report (Shihanki Hokokusho), which was produced based on Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act of Japan and was filed via the Electronic Disclosure for Investors' NETwork (EDINET) system as set forth in Article 27-30-2 of the same act. The translation includes a table of contents and pagination that are not included in the electronic filing.
- Appended to the back of this document are English translations of the independent auditor's Quarterly Review Report attached to the Quarterly Securities Report when it was filed using the aforementioned method, and the Confirmation Note that was filed at the same time as the Quarterly Securities Report.
- This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
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Table of Contents | ||
Page | ||
Quarterly Securities Report for the First Quarter of the 52nd Fiscal Year | ||
Cover | 3 | |
Section 1 Company Information | 4 | |
Item 1. Overview of Company | 4 | |
1. | Key Financial Data | 4 |
2. | Description of Business | 4 |
Item 2. Overview of Business | 5 | |
1. | Business Risks | 5 |
2. | Management's Discussion and Analysis of Financial Position, Operating Results and Cash Flows | 5 |
3. | Material Contracts, etc | 6 |
Item 3. Information about Reporting Company | 7 | |
1. | Company's Shares, etc | 7 |
2. | Directors and Other Officers | 8 |
Item 4. Financial Information | 9 | |
1. | Quarterly Consolidated Financial Statements | 10 |
2. | Other information | 17 |
Section 2 Information about Reporting Company's Guarantor, etc | 18 | |
Independent Auditor's Quarterly Review Report ………………………………………………………………………………………. 19 | ||
Confirmation Note………………………………………………………………………………………………………………………. 21 |
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Cover
Document title | Quarterly Securities Report |
Clause of stipulation | Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act |
Place of filing | Director, Kanto Local Finance Bureau |
Filing date | May 12, 2023 |
Quarterly accounting period | The first quarter of the 52nd fiscal year (January 1, 2023 through March 31, 2023) |
Company name | Roland Kabushiki Kaisha |
Company name in English | Roland Corporation |
Title and name of representative | Gordon Raison, CEO and Representative Director |
Address of registered headquarters | 2036-1 Nakagawa, Hosoe-cho,Kita-ku,Hamamatsu-shi, Shizuoka |
Telephone number | +81-53-523-0230 |
Name of contact person | Yuichi Hakamata, CFO and Executive Officer |
Nearest place of contact | 2036-1 Nakagawa, Hosoe-cho,Kita-ku,Hamamatsu-shi, Shizuoka |
Telephone number | +81-53-523-0230 |
Name of contact person | Yuichi Hakamata, CFO and Executive Officer |
Place for public inspection | Tokyo Stock Exchange, Inc. |
(2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo) |
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Section 1 Company Information
Item 1. Overview of Company
1. Key Financial Data
Fiscal year | 51st | 52nd | 51st | |
First quarter | First quarter | |||
Accounting period | (January 1, 2022 through | (January 1, 2023 through | (January 1, 2022 through | |
March 31, 2022) | March 31, 2023) | December 31, 2022) | ||
Net sales | (million yen) | 20,978 | 22,861 | 95,840 |
Ordinary profit | (million yen) | 2,601 | 1,864 | 10,250 |
Profit attributable to owners of parent | (million yen) | 1,912 | 1,408 | 8,938 |
Comprehensive income | (million yen) | 3,707 | 1,758 | 11,062 |
Net assets | (million yen) | 29,829 | 33,329 | 33,747 |
Total assets | (million yen) | 57,390 | 73,538 | 77,056 |
Basic earnings per share | (yen) | 69.42 | 51.61 | 326.98 |
Diluted earnings per share | (yen) | 68.29 | 50.92 | 321.96 |
Equity-to-asset ratio | (%) | 51.5 | 44.9 | 43.4 |
Net cash provided by (used in) | (million yen) | (1,128) | 5,286 | 793 |
operating activities | ||||
Net cash provided by (used in) | (million yen) | (252) | (632) | (11,351) |
investing activities | ||||
Net cash provided by (used in) | (million yen) | 1,101 | (5,125) | 12,879 |
financing activities | ||||
Cash and cash equivalents | (million yen) | 8,557 | 9,962 | 10,506 |
at end of period | ||||
Notes: 1. Non-consolidated financial data are not presented | as the Company prepares quarterly consolidated financial statements. |
2. Basic earnings per share and diluted earnings per share are computed using the average number of shares of common stock during the period, which is calculated by subtracting the number of treasury shares from these shares. These treasury shares include the treasury shares remaining in Board Benefit Trust, Employee Stock Ownership Plan Trust and Employee Shareholding Association-type ESOP Trust.
2. Description of Business
There were no significant changes in the business in which the Company and its subsidiaries and affiliates (collectively, the "Group") operate during the three months ended March 31, 2023.
No changes were made to major subsidiaries and affiliates.
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Item 2. Overview of Business
1. Business Risks
During the three months ended March 31, 2023 (hereinafter the "period under review"), among the matters related to Overview of Business and Financial Information stated in this Quarterly Securities Report, no major risks that might have a material impact on the financial position, operating results and cash flows of the Group have been recognized by the management. There were no significant changes in the matters related to "Business and other risks" stated in the Annual Security Report for the previous fiscal year.
2. Management's Discussion and Analysis of Financial Position, Operating Results and Cash Flows
This document contains forward-looking statements, which are based on the Group's estimates and assumptions made as of the end of the period under review.
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Business performance
During the period under review, the transition to a world after COVID-19 advanced in countries including Japan and China, following Europe and the U.S. At the same time, however, the global economic environment surrounding the Group remained uncertain as concerns of a global economic slowdown intensified due to the protracted situation in Russia and Ukraine, rising prices and interest rates worldwide, and financial instability in the U.S. and Europe.
Meanwhile, the environment surrounding the electronic musical instruments business was overall favorable, as stable demand for this segment has been generated, backed by a new lifestyle that has become normal in the wake of the COVID-19 pandemic. The three months ended March 31, 2023 was the final adjustment phase toward the normalization of the supply chain, as dealer inventories were temporarily overstocked due to the easing of supply constraints and the subsequent increase of sell-ins at the end of the previous fiscal year. Softening demand in the low-price range extended to the mid- to high-price range for some products though, sell-throughs were generally within expectations. On the cost side, although raw material prices remained high, there were signs of progress toward normalization, including the penetration of appropriate pricing that has been continuously focused on and the gradual effect of a decline in stubbornly high marine transportation costs.
As a result of the above, during the period under review, the Group recorded net sales of ¥22,861 million (up 9.0% year on year), partly due to the contribution of newly consolidated Drum Workshop, Inc. (hereinafter, "DW"), a U.S.-based drum manufacturer, acquired in the previous fiscal year. In terms of profit, the Group recorded operating profit of ¥2,018 million (down 21.4% year on year), ordinary profit of ¥1,864 million (down 28.3% year on year), and profit attributable to owners of parent of ¥1,408 million (down 26.4% year on year), due to a decrease in sell-in volume and active investment in new product development at DW, despite the effect of cost reduction.
Sales performance (year-on-year change) by mainstay category is as shown below:
(Keyboards) Net sales: ¥5,594 million (down 14.6% year on year)
Among the mainstay categories, electronic pianos were affected overall by inventory adjustments in the market, the spread of softening demand from low- to mid-end products, and the escalation of competitive climate, although new products launched in the current period contributed to the performance.
(Percussion and Wind Instruments) Net sales: ¥6,732 million (up 37.6% year on year)
Among the mainstay categories, sales of drums were generally firm in developed countries, mainly due to the introduction of new products, although sales in China were affected by COVID-19 and the downsizing of music schools against the backdrop of government regulations on tutoring schools. Overall sales in the drums business were up year on year, partly due to the effect of the new consolidation of DW.
Sales of electronic wind instruments were down year on year due to market inventory adjustments in the mainstay markets of China and Japan, as well as competition from new entrants, especially in China.
(Guitar-relatedProducts) Net sales: ¥5,648 million (up 11.5% year on year)
Among the mainstay categories, sales of guitar effects were strong, especially for compact pedals, recovering from supply shortages in the same period of the previous year.
As to musical instruments amplifiers, sell-throughs remained strong, while sell-ins were affected by inventory adjustments in the market, particularly in the U.S.
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Roland Corporation published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 06:12:07 UTC.