Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2008.3 Earnings Presentation
28 slides from Yamaha's earnings presentation, Feb 7, 2008
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY2008.3
Analyst and Investor Briefing on the Third Quarter of the Fiscal Year Ending March 31, 2008 (FY2008.3) February 7, 2008 YAMAHA CORPORATION
Slide 2: Overview of Performance in the Third Quarter of FY2008.3
Overview of Performance in the Third Quarter of FY2008.3 Third Quarter results Third quarter sales were lower than both the projection announced on October 31 and the same quarter of the previous year, while operating income was higher. Despite favorable exchange rates due to the strong euro, sa
Slide 3: Business Performance in the Third Quarter of FY2008.3
Business Performance in the Third Quarter of FY2008.3 ¾Sales were lower than last year’s 3Q results and previous projections, while operating income was higher (Billions of yen) FY2007.3 FY2008.3 Change Previous Change from (3Q) (3Q) from projections previous actual actual FY2007.3 (Oct. 31, 2007) p
Slide 4: Performance by Business Segment in the Third Quarter of FY2008.3
Performance by Business Segment in the Third Quarter of FY2008.3 Net Sales Operating Income (Billions of yen) 152.0 148.2 150.3 (-1.4%) Recreation (-2.5%) & others 13.2 11.3 10.6 (+7.1) Recreation Lifestyle- (-14.3) 12.6 14.2 0.4 & others related 12.9 (-4.0) 12.1 (-6.4) Lifestyle- products 9.1 13.0
Slide 5: Forecast for Business Performance in the Fourth Quarter of FY2008.3
Forecast for Business Performance in the Fourth Quarter of FY2008.3 ¾ Sales and income in the fourth quarter are forecast to be lower than previous projections (Billions of yen) FY2007.3 FY2008.3 Change Previous Change from (4Q) (4Q) from projections previous actual projections FY2007.3 (Oct. 31, 20
Slide 6: Forecast for Performance by Business Segment in the Fourth Quarter of FY2008.3
Forecast for Performance by Business Segment in the Fourth Quarter of FY2008.3 Net Sales Operating Income (Billions of yen) Recreation 133.9 (-1.5%) & others 125.1 (-6.5%) 127.0 14.7 Recreation Lifestyle- related 10.8 (-26.5) 10.5 (+2.9) & others products 11.2 Lifestyle- 11.0 (-1.8) 12.5 (-12.0) rel
Slide 7: Forecast for Business Performance in FY2008.3
Forecast for Business Performance in FY2008.3 ¾Estimated 4Q exchange rates: US$=¥115 EUR=¥155 ¾Full-year projection for sales is lower than previous projections, while that for operating income is unchanged (Billions of yen) (%) FY2008.3 FY2008.3 Change from Change from 1Q-3Q 4Q FY2007.3 (new (previ
Slide 8: FY2008.3 Full Year Forecast for Performance by Segment
FY2008.3 Full Year Forecast for Performance by Segment Net Sales Operating Income (Billions of yen) (+0.7%) Recreation 550.4 554.0 558.0 (-0.7%) & others Recreation Lifestyle- 50.2 47.5 (-5.3) 46.5 (+2.2) & others related Lifestyle- 46.0 (-1.2) 48.0 (-4.2) products 46.6 33.5 related (-2.2) 1.0 33.5
Slide 9: Musical Instruments
Musical Instruments 3Q Overview Full Year Projections and 4Q Priority Policies • Sales and income rose year-on-year, partly due to the strong euro. • Full year sales are expected to be in line with previous • Discounting the effect of exchange rates, actual sales increased 3.3% projections. year-on-
Slide 10: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region • Actual year- year-on- on-year change in 1- 1-3Q sales, discounting impact of exchange rates (Billions of yen) Japan Japan (+/- (+/-0%), North America (- (-1%), Europe (+5%) , 150 136.5 133.9 China (+22%), Other regions (+18%) 4Q 4Q 100 • Actual year- year-on- o
Slide 11: Musical Instruments: Sales by Product
Musical Instruments: Sales by Product Pianos Electronic Musical Instruments (Billions of yen) (Billions of yen) (Excluding Electones) 60 53.4 +4% 55.6 80 73.8 79.9 4Q 40 +8% 60 1-3Q 20 40 20 0 FY2007.3 FY2008.3 projection 0 FY2007.3 FY2008.3 projection Professional Audio Equipment (Billions of yen)
Slide 12: AV/IT
AV/IT 3Q Overview Full Year Projections and 4Q Priority Policies • Sales and operating income were around the same level as the • Downward revision of full year sales projections. previous year. Sales were lower than projections, while income Income is expected to be slightly higher than projections
Slide 13: Electronic Equipment & Metal Products
Electronic Equipment & Metal Products 3Q Overview Full Year Projections and 4Q Priority Policies • In semiconductor business, sales and income both fell year-on-year. Sales were lower than previous • Downward revision of full year sales and projections, but income was higher. operating income projec
Slide 14: Lifestyle-Related Products
Lifestyle-Related Products 3Q Overview Full Year Projections and 4Q Priority Policies • Sales and income fell, both year-on-year and against previous • Sales and income are expected to fall below previous projections. projections due to market downturn. • Weak demand for new construction continued a
Slide 15: Recreation
Recreation 3Q Overview Full Year Projections and 4Q Priority Policies • Operating losses improved year-on-year with • Full year results are expected to be in line the handover of four facilities. with previous projections. • Excluding the four facilities handed over, sales • Focus on increasing cust
Slide 16: Others
Others 3Q Overview Full Year Projections and 4Q Priority Policies • Sales exceeded previous projections and increased year-on- • Upward revision of full year sales projections. Income year. Operating income was broadly in line with last year’s is expected to be in line with projections. figures and
Slide 17: Inventories
Inventories • Inventories at the end of 3Q were ¥2.1 billion lower than the same quarter of the previous year. (¥1.9 billion higher excluding inventory transferred as part of handover of electronic metals business) • Discounting the effects of exchange rates, actual inventories were ¥6.2 billion hig
Slide 18: Slide 18
Slide 19: Appendix
付 属資料 Appendix • Capital Expenditure/Depreciation/R&D Expenses • Balance Sheet Summary • Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss • Full Year Non-Operating Income/Loss & Extraordinary Income/Loss • Yamaha Musical Instrument Sales in the Japanese Market • Yamaha Musical Ins
Slide 20: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure (Depreciation) (Billions of yen) Full Year 1-3Q 25.2 23.5 25.0 4.5 3.6 3.2 15.8 16.4 2.8 (20.6) Others 4.4 (20.0) 2.6 (20.2) 2.3 2.5 2.0 1.5 2.0 Electronic 1.7 equipment & metal 2.8 (14.7) 1.5 (15.5) products 0.9 AV/IT 16.3 14.8 15.7
Slide 21: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 3Q Full year As of Dec. 31, As of Dec. 31, Change As of Mar. 31, As of Mar. 31, Change 2006 2007 2007 2008 Cash and bank deposits 34.9 101.9* 67.0 46.7 107.5* 60.8 Notes & accounts receivable 89.8 85.1 -4.7 76.6 70.5 -6.1 Inventories 86.3 84.2 -2.
Slide 22: Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss
Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss FY2008.3 (3Q) FY2007.3 (3Q) results FY2008.3 (3Q) results (previous projections) (Billions of yen) Non-operating income (loss) Equity method income 3.6 0 0 Net financial income (loss) -0.1 -0.1 -0.2 Other -1.0 -0.4 -1.1 Total +2.5 -
Slide 23: Full-Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full-Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2007.3 FY2008.3 FY2008.3 results new projections (previous projections) (Billions of yen) Non-operating income (loss) • Yamaha Motor Co., • Yamaha Motor Co., Ltd. dividend 1.7 Ltd. dividend 1.7 Equity method income 17.8 0.1 0.1 Net fi
Slide 24: Yamaha Musical Instrument Sales in the Japanese Market
Yamaha Musical Instrument Sales in the Japanese Market (Including Professional Audio Equipment) Although sales of electronic musical instruments, wind instruments and professional audio equipment were robust, year-end sales failed to inject vitality into the market and sales figures were in line wit
Slide 25: Yamaha Musical Instrument Sales in the U.S. Market
Yamaha Musical Instrument Sales in the U.S. Market (Including Professional Audio Equipment) Year-end sales were subdued. Total sales for the first three quarters fell below the previous year’s figure, partly due to considerably weaker demand in the piano market and weak sales among mass merchandiser
Slide 26: Yamaha Musical Instrument Sales in the German Market
Yamaha Musical Instrument Sales in the German Market (Including Professional Audio Equipment) Although strong results were recorded in the first half, year-end sales were sluggish. The grand piano market stalled, but new upright piano products contributed to healthier results and sales of new digita
Slide 27: Yamaha Musical Instrument Sales in the Chinese Market
Yamaha Musical Instrument Sales in the Chinese Market (Including Professional Audio Equipment) Pianos account for almost 50% of sales, and new locally-produced products sold well. Factors including progress in developing sales networks and screening of TV commercials are driving strong growth, sales
Slide 28: Forward-looking figures disclaimer
In this report, the figures forecast for the Company’s future performance have been calculated on the basis of information currently available to Yamaha and the Yamaha Group. Forecasts are, therefore, subject to risks and uncertainties. Accordingly, actual performance may differ greatly from our pre