Translation
Note: 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.
Consolidated Financial Results
for the Fiscal Year Ended December 31, 2022
(under Japanese GAAP)
February 13, 2023 | |||
Company name: | Roland Corporation | Listing: | Tokyo Stock Exchange |
Security code: | 7944 | URL: | https://www.roland.com/global/ |
Representative: | Gordon Raison, CEO and Representative Director | ||
Contact: | Shunsuke Sugiura, CFO and Director | ||
Phone: | +81-53-523-0230 |
Scheduled date to hold ordinary general meeting of shareholders: | March 29, 2023 | ||||||||||
Scheduled date to commence payment of dividends: | March 30, 2023 | ||||||||||
Scheduled date to file Annual Securities Report (Yukashoken Hokokusho): | March 8, 2023 | ||||||||||
Preparation of supplementary briefing material on financial results: | Yes | ||||||||||
Holding of financial results briefing: | Yes (for institutional investors and securities analysts) | ||||||||||
(Note) Amounts less than one million yen have been omitted. | |||||||||||
1. Consolidated financial results for the fiscal year ended December 31, 2022 (from January 1 to December 31, 2022) | |||||||||||
(1) Consolidated operating results | (Percentages | indicate year-on-year changes.) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | |||||||||||
Fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
December 31, 2022 | 95,840 | - | 10,751 | - | 10,250 | 1.5 | 8,938 | 4.1 | |||
December 31, 2021 | 80,032 | 25.0 | 11,093 | 55.9 | 10,102 | 60.9 | 8,586 | 99.6 | |||
Note: Comprehensive income | |||||||||||
For the fiscal year ended December 31, 2022: ¥11,062 million | [(2.6)%] | ||||||||||
For the fiscal year ended December 31, 2021: ¥11,361 million | [188.8%] |
Fiscal year ended December 31, 2022
December 31, 2021
Basic earnings | Diluted earnings |
per share | per share |
Yen | Yen |
326.98 | 321.96 |
312.73 | 306.26 |
Return on equity | Ordinary profit to | Operating profit |
total assets ratio | margin | |
% | % | % |
28.9 | 15.8 | 11.2 |
35.6 | 20.4 | 13.9 |
Reference: Share of profit or loss of entities accounted for using equity method
For the fiscal year ended December 31, 2022: -
For the fiscal year ended December 31, 2021: -
Notes: The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) from the beginning of the fiscal year ended December 31, 2022. Net sales and operating profit of the previous fiscal year do not reflect this standard. Accordingly, year-on-year changes for net sales and operating profit against the fiscal year ended December 31, 2021 are not presented.
(2) Consolidated financial position | |||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||
As of | Millions of yen | Millions of yen | % | Yen | |||
December 31, 2022 | 77,056 | 33,747 | 43.4 | 1,228.49 | |||
December 31, 2021 | 52,807 | 28,656 | 53.7 | 1,030.19 | |||
Reference: Equity (Shareholders' equity + Accumulated other comprehensive income) | |||||||
As of December 31, 2022: ¥33,467 million | As of December 31, 2021: ¥28,380 million |
- Consolidated cash flows
Cash flows from operating | Cash flows from investing | Cash flows from | Cash and cash equivalents | |
activities | activities | financing activities | at end of period | |
Fiscal year ended | Millions of yen | Millions of yen | Millions of yen | Millions of yen |
December 31, 2022 | 793 | (11,351) | 12,879 | 10,506 |
December 31, 2021 | 4,929 | (803) | (6,071) | 8,781 |
2. Dividends
Annual dividend per share | Total | Dividend | Dividend on | |||||
dividends | payout ratio | equity | ||||||
First | Second | Third | Fiscal | |||||
Total | (Annual) | (Consolidated) | (Consolidated) | |||||
quarter-end | quarter-end | quarter-end | year-end | |||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % |
December 31, 2021 | - | 69.00 | - | 69.00 | 138.00 | 3,859 | 45.0 | 15.7 |
December 31, 2022 | - | 78.00 | - | 78.00 | 156.00 | 4,305 | 48.2 | 13.8 |
Fiscal year ending | - | 85.00 | - | 85.00 | 170.00 | 50.4 | ||
December 31, 2023 (forecast) | ||||||||
Note: The total dividends include the dividends paid to the Board Benefit Trust, Employee Stock Ownership Plan Trust and Employee Shareholding Association-type ESOP Trust (¥60 million and ¥57 million for the fiscal years ended December 31, 2021 and 2022, respectively). The dividend payout ratio is calculated by dividing the total dividends by profit attributable to owners of parent.
3. Forecast of consolidated financial results for the fiscal year ending December 31, 2023 (from January 1 to December 31, 2023) (Percentages indicate year-on-yearchanges.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||||||
owners of parent | per share | |||||||||||||
Millions of | Millions of | Millions of | Millions | |||||||||||
yen | % | yen | % | yen | % | of yen | % | Yen | ||||||
First six months | 48,800 | 13.5 | 4,100 | (12.3) | 4,100 | (14.5) | 3,100 | (21.1) | 113.81 | |||||
Fiscal year | 105,600 | 10.2 | 12,400 | 15.3 | 12,400 | 21.0 | 9,300 | 4.0 | 340.73 |
[Notes]
-
Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scope of consolidation): Yes
Newly added subsidiary : 1 company (Roland Drum Corporation) - Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements
- Changes in accounting policies due to the application of new or revised accounting standards: Yes
2) | Changes in accounting policies due to reasons other than the above 1): | None | |
3) | Changes in accounting estimates: | None | |
4) | Restatements of prior period financial statements: | None | |
(3) Number of shares of common stock issued | |||
1) | Number of shares issued (including treasury shares) | ||
As of December 31, 2022: | 28,066,786 shares | ||
As of December 31, 2021: | 27,970,534 shares | ||
2) | Number of treasury shares | ||
As of December 31, 2022: | 824,172 shares | ||
As of December 31, 2021: | 421,931 shares | ||
3) | Average number of shares of common stock during the period | ||
Fiscal year ended December 31, 2022: | 27,336,507 shares | ||
Fiscal year ended December 31, 2021: | 27,457,125 shares |
Notes: The aggregate number of shares of the Company held by the Board Benefit Trust, Employee Stock Ownership Plan Trust and Employee Shareholding Association-type ESOP Trust was included in the number of treasury shares, which was to be deducted from the calculation of the average number of shares of common stock during the period. It is noted that the average numbers of shares of common stock held by these trusts during the fiscal years ended December 31, 2021 and 2022 were 430,571 shares and 385,917 shares, respectively.
(Reference) Overview of non-consolidated financial results | |||||||||||
1. Non-consolidated financial results for the fiscal year ended December 31, 2022 (from January 1 to December 31, 2022) | |||||||||||
(1) Non-consolidated operating results | (Percentage indicates year-on-year changes.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit | ||||||||
Fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
December 31, 2022 | 34,356 | 16.0 | 7,471 | 106.0 | 9,555 | 33.0 | 7,678 | 27.6 | |||
December 31, 2021 | 29,624 | 14.1 | 3,626 | 79.0 | 7,183 | 24.4 | 6,018 | 17.9 | |||
Basic earnings | Diluted earnings | ||||||||||
per share | per share | ||||||||||
Fiscal year ended | Yen | Yen | |||||||||
December 31, 2022 | 280.88 | 276.56 | |||||||||
December 31, 2021 | 219.19 | 214.65 | |||||||||
(2) Non-consolidated financial position | |||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||
As of | Millions of yen | Millions of yen | % | Yen | |||||||
December 31, 2022 | 63,914 | 25,492 | 39.7 | 932.24 | |||||||
December 31, 2021 | 41,445 | 23,856 | 57.3 | 861.81 |
Reference: Equity (Shareholders' equity + Accumulated other comprehensive income)
As of December 31, 2022: ¥25,396 million As of December 31, 2021: ¥23,741 million
- This financial results report is not subject to audit procedures by certified public accountants or an audit firm.
-
[Proper use of earnings forecasts, and other special notes]
(Disclaimer with respect to earnings and other forecasts) - The forward-looking statements including the earnings forecast contained in this document are based on information currently available and certain assumptions that are believed to be reasonable. Accordingly, please be advised that the Company does not guarantee the achievement of the forecasts and the actual results may differ from the results described in this forward- looking statements due to a variety of factors. For further information on the forecast of consolidated financial results, please refer to "1. Overview of Operating Results, etc. (1) Overview of operating results for the fiscal year ended December 31, 2022
(ii) Future outlook" on page 4 of the Attached Materials. - The Company will hold a financial results briefing for institutional investors and securities analysts on Tuesday, February 14, 2023. Materials used at the financial results briefing will be posted on the Company's website.
- The forward-looking statements including the earnings forecast contained in this document are based on information currently available and certain assumptions that are believed to be reasonable. Accordingly, please be advised that the Company does not guarantee the achievement of the forecasts and the actual results may differ from the results described in this forward- looking statements due to a variety of factors. For further information on the forecast of consolidated financial results, please refer to "1. Overview of Operating Results, etc. (1) Overview of operating results for the fiscal year ended December 31, 2022
Contents of Attached Materials
1. | Overview of Operating Results, etc. ···································································································· | P.2 |
(1) Overview of operating results for the fiscal year ended December 31, 2022 ················································ | P.2 | |
(2) Overview of financial position for the fiscal year ended December 31, 2022 ··············································· | P.4 | |
(3) Basic policy for profit distribution and dividends for the fiscal year ending December 31, 2023 ························ | P.5 | |
2. | Basic Approach to Selection of Accounting Standards··············································································· | P.5 |
3. | Consolidated Financial Statements and Major Notes················································································· | P.6 |
- Consolidated balance sheets ········································································································ P.6
- Consolidated statements of income and consolidated statements of comprehensive income ······························ P.8
- Consolidated statements of changes in equity ···················································································· P.10
- Consolidated statements of cash flows ···························································································· P.12
(5) Notes to consolidated financial statements ······················································································· | P.13 |
(Going concern assumption) ········································································································ | P.13 |
(Changes in accounting policies)···································································································· | P.13 |
(Changes in reporting method)······································································································ | P.13 |
(Segment information, etc.) ········································································································· | P.13 |
(Per share information) ·············································································································· | P.14 |
(Subsequent events) ·················································································································· | P.15 |
- 1 -
1. Overview of Operating Results, etc.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020; hereinafter, the "Accounting Standard for Revenue Recognition") since the beginning of the fiscal year ended December 31, 2022.
Under the Accounting Standard for Revenue Recognition, sales discounts, which were previously recognized in non-operating expenses, have been reclassified as deductions from net sales. With this change in our accounting standard, net sales and operating profit decline, whereas ordinary profit, profit attributable to owners of parent, and cash flows remain unaffected.
Figures for the fiscal year ended December 31, 2022 (hereinafter, the "period under review") as referred to in "Operating results for the fiscal year ended December 31, 2022" represent the results after the application of the Accounting Standard for Revenue Recognition. For this reason, direct year-on-year comparisons of these figures are not shown. Instead, to help you better understand the operating performance for the period under review, year-on-year comparisons after adjustment are shown, which are percentages calculated based on the assumption that the results for the period under review had been measured by the same accounting standard as used in the fiscal year ended December 31, 2021.
(1) Overview of operating results for the fiscal year ended December 31, 2022
(i) Operating results for the fiscal year ended December 31, 2022
During the period under review, while new COVID-19 cases were contained to some extent and social and economic activities got back on a recovery track, countries around the world underwent big changes, such as the prolonged Russia-Ukraine conflict, global inflation, and drastic changes in exchange rate and interest rates. Such economic downside risks were noticeable especially from the second half of the period under review onward, making market conditions remain highly uncertain. In China, major cities were placed under lockdowns on a sporadic basis, and after the zero-Covid policy was lifted, new cases surged.
In the electronic musical instruments business hemisphere, compared to the pre-pandemic era, sales standards went on to become a further solid position endorsed by the entrenched new lifestyle brought by the COVID-19 pandemic as a whole; however, demand declines were sensed especially in China and Europe from the second half of the period under review onward. On the procurement and supply sides, by implementing various measures, the circumstances have been moving out of the worst phase of COVID-19, although difficulties in purchasing raw materials forced us to extend development periods. On the cost side, despite a decline trend of ocean transportation costs, raw materials prices remained higher compared to the pre pandemic level. To deal with these higher cost and price, the Company has focused on to optimize its product prices with the careful eyes on the market conditions and competitive situations of each region.
Surrounded by these circumstances, our key strategies (1) Produce, (2) Reach, (3) Deliver, and (4) Support, were set forth under the vision for our medium-term corporation plan, "Bringing the WAKUWAKU Thrill and Excitement to all the people in the World." As the third year of the Medium-term Business Plan, the Group grappled with (1) Development of high value-added products and services that only we can provide, (2) Customer creation and market development through continuous engagement with our enthusiastic fans, (3) Establishment of the world best SCM that never stops supplying products without stock shortages and over- stockings, and (4) Human resources development, strengthening governance and visualization.
Regarding "Development of high value-added products and services that only we can provide," while refreshing our core product families and adding new products to our lineup to strengthen our market competitiveness, continued efforts were put into the development of products. They include the AIRA Compact series, portable electronic musical instruments that allow users to enjoy full-scale electronic music easily, to acquire new customers and the ultimate sampling pad SPD-SX PRO for drummers, designed for the most demanding gigs, to expand the market. In October, all the shares of Drum Workshop, Inc. (hereinafter, "DW"), a U.S.- based drum manufacturer, were acquired aiming to reach a dominant position in the drum market and to offer innovations to drummers and other musicians. Additionally, toward achieving our medium- to long-term goal of evolving from a hardware provider into a solutions provider, our effort was paid to enhance the content of the cloud-base subscription service, Roland Cloud that offers a variety of software sound sources, sounds, data for software updates, etc. Another efforts was extended to develop new services, such as Roland Piano App, a digital application of piano practice which could reach to additional contents if registered as a paid membership of Roland Cloud service.
Regarding "Customer creation and market development through continuous engagement with our enthusiastic fans," accelerated use of digital marketing was a major driver. A special website of Roland at 50 was launched to commemorate the 50th anniversary of our founding, and Roland/BOSS Players Summit 2022, an online user-interactive event which offered the 50th anniversary concept model performance and other live performances was held. Meanwhile, based on a belief that it is highly important for us
- 2 -
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Roland Corporation published this content on 13 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2023 08:25:10 UTC.