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

Transcription

1 Mizuno Corporation The 103rd Period (Year ending March 31, 2016) 2nd Quarter Financial Report November 6, 2015 This report includes forecasts based on our assumptions, outlook and plans for the future as of November 6, 2015, 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 FY2015-2Q Year to Date - Outline of Business Results 2 / 10 Versus FY2014-2Q Revenues 96.9 billion yen +7.0 billion(+7.8%) In Japan, the competitive sports, health sports and golf categories each surpassed last year s same period results. In the Americas, all categories except golf fell below last year s same period results (local currency basis). In Europe and Asia/Oceania, sales showed steady performance led by running shoes. Operating profit 1.4 billion yen -1.2 billion (-46.6%) Due to exchange rates mostly between Japan and Europe, purchase costs increased, decreasing the gross margin percentage 1.3 points compared to same period last year. With three new consolidated companies, sales administrative expenses increased but the SG & A expense ratio remained mostly unchanged. Ordinary profit 1.8 billion yen -1.0 billion(-34.4%) Due to fall in operating profits. Net income 1.5 billion yen -0.3 billion(-16.4%)

3 Consolidated Income Statement(YTD) 3 / 10 Billions of yen FY2014 (6 months) FY2015 (6 months) Versus FY2014(%) Revenues % Gross margin % Gross margin ratio 40.6% 39.3% -1.3P SG&A expenses % SG&A expenses ratio 37.7% 37.9% +0.2P Salaries & bonus % A&P expenses % Operating profit % Operating profit ratio 3.0% 1.5% -1.5P Ordinary profit % Ordinary profit ratio 3.1% 1.9% -1.2P Net income % Exchange rate JPY/1USD JPY/1GBP JPY/1EUR

4 Consolidated Balance Sheet 4 / 10 Billions of yen Sep.30, 2014 Sep.30, 2015 Versus FY2014(+/-) Total assets Cash & deposits Accounts receivable Inventories Fixed assets Investment securities Deferred tax assets Total liabilities Short-term debt Long-term debt Net assets

5 Revenues by Region & Product 5 / 10 The below charts show revenues by Region & Product for 2Q Year to date results. (Billions of yen) Revenues by region Revenues by product Japan Americas EMEA Asia/Oceania 0 Footwear Apparel Equipment Service/Others

6 Principal Financial Indexes 6 / 10 FY2014 2Q FY2015 2Q Versus FY2014(+/-) Return on assets (ROA) 1.9% 1.0% -0.9P Return on equity (ROE) 2.0% 1.6% -0.4P Shareholder s equity ratio 54.1% 54.6% +0.5P Earnings per share (EPS) JPY13.85 JPY JPY2.30 Book value per share (BPS) JPY JPY JPY41.63 Price book value ratio (PBR) Price at the end of this period JPY581 JPY544 -JPY37 Dividend payout ratio 36.1% 43.3% +7.2P

7 Regional Highlights (Japan) 7 / 10 Net Sales by product Total Footwear Apparel Equipment Service/Others FY FY FY15/FY14 104% 105% 102% 106% 103% Net Sales and Operating profit History and forecast Condition of FY2015 Strong sales in competitive sports and golf products. Steady performance in walking and health related products. Yen depreciation decreases footwear gross margin rate. Future measures and visions Develop lifestyle related products and breaking ground in sales channels. Strengthen support for demand increases in sports facility equipment. Expand on sports product development technology such as carbon processing for other business use.

8 Regional Highlights (EMEA) 8 / 10 Net Sales by product Total Footwear Apparel Equipment FY FY FY15/FY14 110% 112% 108% 104% Net Sales and Operating profit History and forecast Condition of FY2015 European currency depreciation causes significant increase in purchase costs. Strong sales continued for sports shoes. High product usage rate in European major games, especially for indoor sports shoes. Iron market share increased though stagnant golf market continues. Approximately 480 million Yen non-operating exchange gain. Future measures and visions Increasing brand appeal by cosponsoring various public sports events such as the Hamburg Marathon. Start expanding on tennis shoes

9 Regional Highlights (Americas) 9 / 10 Net Sales by product Total Footwear Apparel Equipment FY FY FY15/FY14 113% 102% 112% 128% Net Sales and Operating profit History and forecast Condition of FY2015 Plus recovery in golf product sales compared to previous year. Market share recovered for flagship running shoes. Weak South American Real caused decline in South American business. Future measures and visions Recover running shoes sales share by pumping in new products. Building the Mizuno image as a running brand by cosponsoring leading running clubs.

10 Regional Highlights (Asia/Oceania) 10 / 10 Net Sales by product Total Footwear Apparel Equipment FY FY FY15/FY14 125% 138% 124% 108% Net Sales and Operating profit History and forecast Condition of FY2015 Sales showed steady growth in regions such as Taiwan and Korea. Marketing expenses increased in Korea and Singapore for their future growth. Continued effects of streamlined business in China. Future measures and visions Sales expansion of sports-style products originating from Korea and China s Mizuno shops (direct management/franchise). Product planning expansion for the Asian market such as badminton and table tennis.