Quarterly Securities Report
For the Second Quarter of the 52nd Fiscal Year
(April 1, 2023 through June 30, 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.
Table of Contents | ||
Page | ||
Quarterly Securities Report for the Second 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 | 7 |
Item 3. Information about Reporting Company | 8 | |
1. | Company's Shares, etc | 8 |
2. | Directors and Other Officers | 11 |
Item 4. Financial Information | 12 | |
1. | Quarterly Consolidated Financial Statements | 13 |
2. | Other information | 21 |
Section 2 Information about Reporting Company's Guarantor, etc | 22 | |
Independent Auditor's Quarterly Review Report ………………………………………………………………………………………. 23 | ||
Confirmation Note………………………………………………………………………………………………………………………. 25 |
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 | August 10, 2023 |
Quarterly accounting period | The second quarter of the 52nd fiscal year (April 1, 2023 through June 30, 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
- Key financial data
Fiscal year | 51st | 52nd | 51st | |
First Half | First Half | |||
Accounting period | (January 1, 2022 through | (January 1, 2023 through | (January 1, 2022 through | |
June 30, 2022) | June 30, 2023) | December 31, 2022) | ||
Net sales | (million yen) | 43,004 | 46,096 | 95,840 |
Ordinary profit | (million yen) | 4,794 | 4,012 | 10,250 |
Profit attributable to owners of parent | (million yen) | 3,927 | 3,195 | 8,938 |
Comprehensive income | (million yen) | 7,976 | 5,727 | 11,062 |
Net assets | (million yen) | 32,788 | 37,356 | 33,747 |
Total assets | (million yen) | 62,777 | 76,506 | 77,056 |
Basic earnings per share | (yen) | 143.08 | 116.97 | 326.98 |
Diluted earnings per share | (yen) | 140.80 | 115.47 | 321.96 |
Equity-to-asset ratio | (%) | 51.8 | 48.5 | 43.4 |
Net cash provided by (used in) | (million yen) | (910) | 9,248 | 793 |
operating activities | ||||
Net cash provided by (used in) | (million yen) | (443) | (1,123) | (11,351) |
investing activities | ||||
Net cash provided by (used in) | (million yen) | 1,342 | (7,869) | 12,879 |
financing activities | ||||
Cash and cash equivalents | (million yen) | 8,722 | 9,993 | 10,506 |
at end of period | ||||
Fiscal year | 51st | 52nd | ||
Second Quarter | Second Quarter | |||
Accounting period | (April 1, 2022 through | (April 1, 2023 through | ||
June 30, 2022) | June 30, 2023) | |||
Basic earnings per share | (yen) | 73.67 | 65.34 | |
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 six months ended June 30, 2023. No changes were made to major subsidiaries and affiliates.
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Item 2. Overview of Business
1. Business Risks
During the six months ended June 30, 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 significantly 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 instrument 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 six months ended June 30, 2023, was the final adjustment phase toward the normalization of the supply chain, as dealer inventories were temporarily overstocked, particularly in the U.S., due to the easing of supply constraints and the subsequent increase of shipments at the end of the previous fiscal year. On the cost side, although raw material prices remained high, progress was made toward normalization, including the penetration of appropriate pricing that has been continuously focused on and the 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 ¥46,096 million (up 7.2% 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, as well as the weaker yen. In terms of profit, the Group recorded operating profit of ¥4,256 million (down 9.0% year on year), ordinary profit of ¥4,012 million (down 16.3% year on year), and profit attributable to owners of parent of ¥3,195 million (down 18.6% year on year), due to an impact of a temporary decrease in shipments resulting from dealer inventory adjustments and active investment in new product development at DW, despite the effect of cost reduction measures implemented during the period.
Sales performance (year-on-year change) by mainstay category is as shown below:
(Keyboards) Net sales: ¥11,849 million (down 13.9% year on year)
Sales of electronic pianos were affected overall by dealer inventory adjustments and softening demand for low-end products in particular, although new product lines launched in the current period contributed to the performance.
(Percussion and Wind Instruments) Net sales: ¥13,272 million (up 41.7% year on year)
Sales of drums were generally firm in the developed countries, mainly due to the introduction of new products, although sales in China were affected by COVID-19 and downsizing of music schools against the backdrop of government regulations on tutoring schools. Overall sales in the drums business were significantly up year on year, partly due to the effect of the consolidation of the newly acquired subsidiary, 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.
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Roland Corporation published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 06:47:30 UTC.