Mizuno Corporation The 103rd Period (Year ended March 31, 2016)

Transcription

1 Mizuno Corporation The 103rd Period (Year ended March 31, 2016) 4th Quarter Financial Report May 10, 2016 This report includes forecasts based on our assumptions, outlook and plans for the future as of May 10, 2016, which may substantially differ from actual results due to risks and uncertainties relating to the global economy, competitors' situations, changes in exchange rates, etc.

2 FY2015 Year to Date - Outline of Business Results Compared to FY2014 Revenues billion yen +9.0 billion(+4.8%) The footwear business showed steady performance in the Group as a whole, but the Americas struggled. The sports facility service business showed steady performance. Operating profit 3.0 billion yen -2.1 billion (-41.2%) The gross margin percentage dropped 1.1 points compared to last term as the stronger dollar increased purchase costs Significant profit decline due to struggling footwear business in the Americas. Ordinary profit 2.8 billion yen -2.4 billion(-46.7%) Due to decline in operating profits. Net income 2.1 billion yen -1.3 billion(-37.6%) 2 / 13

3 Consolidated Income Statement(YTD) Billions of yen FY2014 (12 months) FY2015 (12 months) Change (%) Revenues % Gross margin % Gross margin ratio 39.7% 38.6% -1.1P SG&A expenses % SG&A expenses ratio 37.0% 37.1% +0.1P Salaries & bonus % A&P expenses % Operating profit % Operating profit ratio 2.7% 1.5% -1.2P Ordinary profit % Ordinary profit ratio 2.8% 1.4% -1.4P Net income % Exchange rate JPY/1USD JPY/1GBP JPY/1EUR / 13

4 Consolidated Balance Sheet Billions of yen Mar.31, 2015 Mar.31, 2016 Change (+/-) Total assets Cash & deposits Accounts receivable Inventories Fixed assets Investment securities Deferred tax assets Total liabilities Short-term debt Long-term debt Net assets / 13

5 Revenues by Region & Product Accumulative sales figures for FY2015 by region and product (Billions of yen) Revenues by region Revenues by product Overseas Sales Ratio 2014:35% 2015:36% Japan Americas EMEA Asia/Oceania 0 Footwear Apparel Equipment Service/Others / 13

6 Principal Financial Indexes FY2014 FY2015 Change (+/-) Return on assets (ROA) 3.3% 2.0% -1.3P Return on equity (ROE) 3.7% 2.3% -1.4P Shareholder s equity ratio 53.1% 52.2% -0.9P Earnings per share (EPS) JPY26.57 JPY JPY10.03 Book value per share (BPS) JPY JPY JPY31.94 Price book value ratio (PBR) Price at the end of this period JPY626 JPY519 -JPY107 Dividend payout ratio 37.6% 60.5% +22.9P 6 / 13

7 Regional Highlights (Japan) Revenues by product Total Footwear Apparel Equipment Service/Others FY FY FY15/FY14 103% 105% 101% 103% 106% Revenues and Operating profit History and forecast Condition of FY2015 Favorable sales for competitive sports / golf products. Steady increase in sales from areas other than sports channels. Winter apparel sales didn t reach planned target due to warm winter. Future measures and visions Develop lifestyle related products and create new sales channels. Strengthen response to equipment demand increase for sports facilities. Transfer technology used for developing sporting goods such as carbon processing, for other business use. 7 / 13

8 Regional Highlights (Americas) Revenues by product Total Footwear Apparel Equipment Others/adj FY FY FY15/FY14 107% 98% 110% 118% incl. audit adj Revenues and Operating profit History and forecast Condition of FY2015 Sales figures decreased 5% from last year on a currency neutral basis. Market inventory increase due to performance running market deceleration, weighing on operations. Business in South America continues to decline with Brazil s economical depression and weak Real. Future measures and visions Regain sales share in running specialty stores by reorganizing the sales organization. Rebuilding business in the Americas will be our business challenge for FY2016, and we will take on inventory adjustment immediately. 8 / 13

9 Regional Highlights (EMEA) Revenues by product Total Footwear Apparel Equipment Others/adj FY FY FY15/FY14 100% 102% 94% 93% incl. audit adj Revenues and Operating profit History and forecast Condition of FY2015 Sales grew 2% compared to last year on a currency neutral basis. Established Mizuno Norway to strengthen Northern European business. Restructured the golf business organization to streamline. Significant increase in purchase costs due to weak European currencies. Future measures and visions Continue brand appeal through co-sponsoring various public sports events such as the Hamburg Marathon and the Amsterdam Marathon. Further expand tennis footwear. 9 / 13

10 Regional Highlights (Asia/Oceania) Net Sales by product Total Footwear Apparel Equipment Others/adj FY FY FY15/FY14 117% 129% 110% 106% incl. audit adj Net Sales and Operating profit History and forecast Condition of FY2015 Sales grew 8% compared to last year on a currency neutral basis. Sales grew mainly in Taiwan/Korea. Increase in purchase costs due to weak local currencies against the dollar. Future measures and visions Expand on sports-style products originating from Mizuno shops in Korea/China (directly managed/franchised) to all Asian market. Amplify product plans for the Asian market, such as badminton/table tennis. Continue streamlining the China business for profit improvement. 10 / 13

11 Mid term plan (consolidated) After currency rate conversion replacements and adjustments for operations in the Americas, plans for FY2016 through FY2018 are as follows. Revenues (billion JPY) Ordinary profit (billion JPY) Applied rate USD JPY EUR JPY 11 / 13

12 Mid term plan (by region and product) Due to currency conversion rate impacts, the overseas sales ratio will once drop, but we will continue to attain sales growth overseas. Revenues (billion JPY) By region Revenues (billion JPY) By product 12 / 13

13 Mid term plan (ROA/ROE) As we improve our profit ratio and streamline our assets such as inventory, our goal is for an early ROE realization of over 5% % FY14 FY15 FY16 FY17 FY18 ROA ROE 13 / 13