How do you recover the performance from Casio and Corona? From 2020 first quarter financial results announcement

Casio Computer Co., Ltd. held an online presentation on July 31st for the financial results summary for the term ending March 31, 2021. He also explained the impact of the new coronavirus, successful cases of the clock business in China, the steady development of the musical instrument business, and the business outlook for the fiscal year ending March 2021, which looks at the world of after-corona.

  • Continuing from the previous time, this financial result announcement was also held online

The influence of coronary damage is great

According to the announcement, Casio Computer Co., Ltd. posted a net sales of JPY 40 billion for the first quarter of the year ending March 2021. 61% of the previous year [down 26.1 billion yen]. Operating profit was -1.2 billion yen [-8.7 billion yen year-on-year], and ordinary income was -1.1 billion yen [-8.1 billion yen year-on-year].

  • Company-wide consolidated financial results. The unit of numerical value without% is "100 million yen" [excluding 1-share profit]

By business, even in the watch business, which has the highest operating profit margin of 11%, net sales were 22.2 billion yen, and the rate of increase was 44%. The effects of the domestic emergency declaration [April 7th to May 6th, 2020] and the lockdown of overseas cities due to the new epidemic of coronavirus, which are still fierce, are reflected in the figures.

  • Performance by business. Musical instruments business accounts for about 46% of sales in profit improvement business [electronic dictionaries, musical instruments, projectors, other systems]

Mr. Seiji Tamura, Executive Officer, General Manager of Corporate Governance Department, and in charge of IR, Casio Computer Co., Ltd. explained his future efforts based on the assumption that the effects of Corona's disaster will continue in the current term. "As a sustainable value-creating company that responds to the ever-changing market environment with after-corona, we will restructure all products, business structures, and business models this term," and "Establish a foundation for high profitability during this term" Declared.

As a result, the forecast for the next fiscal year [ending March 2022] is net sales of ¥280 billion and operating income of ¥32 billion [Mr. Tamura].

  • Mr. Seiji Tamura Executive Officer, General Manager of Corporate Governance Department, and in charge of IR, Casio Computer Co., Ltd.

  • Business plan for the fiscal year ending March 2020. Even after-corona, the clock business supports the backbone

G-SHOCK's strategy to overwhelm the Chinese market

Next, I will explain the business overview. Mr. Tamura introduced successful cases in China for the watch business that has the main product "G-SHOCK". First, he said, "The watch business in China is doing very well," and emphasized that the point was "to create a new proper balance between online sales and offline [actual store] sales." "We have been working on predicting future market changes for several years," so that the sales balance will be 55% online and 45% offline.

  • Watch business overview. After all, the effect of suspension of physical stores and restrictions on going out are large

  • Sales results of watch products by area and in EC

Also, for events at physical stores, "We have switched from a large-scale event that attracts customers to a large number of small events that are close to users," saying, "From around March, we will have business talks with major shopping malls in China. So, we were able to build an environment for purchasing from apps without attracting customers with those shopping mall apps and visiting actual stores."

  • The watch business has been successful in China with a precise strategy

On the other hand, as for online sales, "We have been actively promoting e-commerce and SNS utilization in China for several years, and in September 2020, we launched the Super Brand Day of "Kyoto Shojo []" [*1]. We have acquired a tie-up company, and we can expect an order of magnitude more exposure than in 2019." Tamura continues.

Tamura“In addition to distributing G-SHOCK video content, we are currently preparing for November 11 “China Single Day” [*2] while increasing the number of new G-SHOCK fans through consumer experience planning, etc. With that in mind, we are expecting about 145% year-on-year growth in the second quarter, and the industry's high reputation that Casio Computer is the only company that has succeeded both online and offline. It has received"

*1: Jin Dong. China's second largest online shopping mall
*2: Also called Kobushi. Various events are held such as single parties gathering to hold parties and get married. It's also known as the day of shopping and gifts, and it's often talked about recently as the EC site updates its highest sales.

Casio plans to horizontally deploy successful cases in China to emerging Asian countries where growth is expected in the future, aiming for a ripple effect on the growth driver market. In the watch business, sales are also strong.G-SHOCK sports line "G-SQUAD"It was also announced that the company will strive to provide new value to health-conscious users.

The background of the strong musical instrument business

Musical instrument business is also strong due to nesting demand from corona erosion. In the background, "we have succeeded in developing highly competitive products," says Tamura.

  • Technological reform of Casio musical instruments matches the so-called "nesting demand"

Tamura"We started full-scale structural reform of the musical instrument about two years ago. We have made various reforms such as developing new sound sources and reviewing the design. Very stylish design with the world's shortest depth, Moreover, products with high competitiveness were born, such as the keyboard touch that makes you feel the grand piano and the realization of beautiful tones [edit note: electronic piano,Privia PX-S1000 / S3000]. I think that this time we succeeded in regaining demand from beginners to experienced people with this coronal disaster.''

The slim and smart models of electronic pianos currently account for about 40% of Casio's musical instrument business. In addition, there was a reference to the focus on the company's e-commerce site and the promotion of structural reforms.Published contentIt does not change much here, so I will omit it here.

“Although there is a tendency to increase from June to July compared with the previous year, the second wave of the new coronavirus is highly likely and somewhat conservative It is assumed that the sales for the second quarter and the second half will remain at about 75% of the previous year's level. The amount was set at 100 billion yen in the first half [69% of the previous year] and 220 billion yen in the full year [78% of the previous year].

  • Earnings forecast for the year ending March 31, 2021. The negative effect of the new coronavirus does not recover overnight

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