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Roland (7944) investor relations material
Roland Investor presentation summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Strategic direction and market positioning
Aims to accelerate transformation into a high-profit, customer experience (CX)-driven company by focusing investments on demand creation and enhancing CX for electronic musical instruments.
Targets global expansion with a focus on electronic instruments, leveraging strong market share in key categories like electronic drums, guitar effects, and synthesizers.
Identifies huge growth potential in emerging markets and among new user segments, with digitalization and AI as key enablers.
Three strategic pillars: Direct Connect (customer engagement), Innovation (new products/tech), and Expansion in Emerging Markets.
Plans to realize returns on prior investments in data utilization and management foundation.
Financial targets and performance
Sets FY2028 targets: sales of ¥120.0bn (+18.9%), operating profit of ¥14.4bn (+53.0%), and OP margin of 12.0%.
Net profit goal of ¥10.2bn, ROIC of 18%+, and ROE of 20%+ by FY2028.
Sales growth to be driven by Direct Connect, Innovation, and Emerging Markets, with emerging markets targeted for 12% CAGR.
Operating profit growth supported by increased sales volume, price optimization, and cost control, offset by higher SG&A investments.
Capital allocation prioritizes dividends and debt service, with a 50% total payout ratio target and a DOE floor of 5%.
Key strategic initiatives
Direct Connect: Develop Wi-Fi-enabled instruments, expand direct-to-consumer channels, and launch the Roland App for personalized user engagement.
Innovation: Expand digital wind instruments, co-develop products via alliances, and accelerate AI-driven development.
Expansion in Emerging Markets: Launch region-specific models, broaden sales channels, and strengthen logistics in high-growth regions like China, India, and Latin America.
Strengthen management foundation through M&A, production optimization, and increased equity compensation for executives.
Sustainability focus includes innovation, responsible supply chain, workplace health, cultural support, environmental conservation, and governance.
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