Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2014.3 Earnings Presentation
34 slides from Yamaha's earnings presentation, Feb 6, 2014
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY2014.3
Yamaha Corporation p Analyst and Investor Briefing on the Third Quarter of the Fiscal Year Ending March 31, 2014 (FY2014.3) February 6, 2014
Slide 2: Overview of Performance in the Third Quarter (October-December)
Overview of Performance in the Third Quarter ((October October--December) Results Summary Although sales increased year-on-year, year on year they were slightly lower than previous projections announced on October 31. Actual sales of audio equipment in Europe and musical instruments in emerging
Slide 3: Performance in the Third Quarter of FY2014.3 (Three Months)
Performance in the Third Quarter of FY2014.3 (Three Months) (Billions of yen) Changes from FY2014.3 3Q Changes from FY2013.3 3Q FY2014.3 same results period of p 3Q results the previous year previous p previous p projections projection Net Sales 97.1 111.0 +14.3% 112.3 -1.2% Operating Income 3.6 9.1
Slide 4: Performance by Business Segment in the Third Quarter of FY2014.3
Performance by Business Segment in the Third Quarter of FY2014.3 (Three Months) Net Sales Operating Income Year-on-year Change from change the previous (Billions of yen) projections 112.3 (+14.3%) 111.0 (-1.2%) 9.1 97.1 6.1 (+4.1%) 5.9 (-4.8%) Others 5.4 (+35.7%) 4.7 (-13.0%) 7.3 0 Others Electronic
Slide 5: Musical Instruments 3Q Overview (Three Months)
Musical Instruments 3Q Overview (Three Months) (Billi (Billions off yen)) Net Sales 61 0 61.0 68.6 68 6 69.7 3Q Overview • Sales increased year-on-year and Music 20.8 19.9 schools, 20.0 exceeded previous projections etc. • Discounting the impact of Yamaha 47.8 49.8 exchange rates (+¥8.8 billion), mu
Slide 6: Audio Equipment 3Q Overview (Three Months)
Audio Equipment 3Q Overview (Three Months) (Billi (Billions off yen)) Net Sales 32.2 30.6 3Q Overview 26.9 1.9 1.9 ICT devices • Sales increased year-on-year, but 1.5 11.7 PA 8.9 10.7 were lower than previous equipment i t projections AV • Discounting the impact of products, 16.6 18.6 18.0 exchange
Slide 7: Electronic Devices 3Q Overview (Three Months)
Electronic Devices 3Q Overview (Three Months) (Billi (Billions off yen)) Net Sales 3Q Overview • Sales were up year-on-year, but below previous projections 5.4 • Sales slowed at the end of the third 4.7 quarter, mainly due to customer- 3.5 side production delays and inventory adjustments for FY2013.
Slide 8: Others 3Q Overview (Three Months)
Others 3Q Overview (Three Months) (Billi (Billions off yen)) Net Sales 6.1 59 5.9 3Q Overview 57 5.7 FA equipment, • Sales were up year-on-year, but etc.1.0 1.4 1.1 down against previous projections eso t 1.4 Resort 1.5 1 5 1.3 Golf products • Golf sales increased year-on-year year on year 1.2 1.4 1
Slide 9: Performance in the First Three Quarters of FY2014.3 (Nine Months)
Performance in the First Three Quarters of FY2014.3 (Nine Months) (Billions of yen) FY2013.3 FY2014.3 Change from Previous Change from 1-3Q 1-3Q same period of projections for previous results results the previous year FY2014.3 (1-3Q) projections Net Sales 273.9 308.7 +12.7% 310.0 ▲0.4% Operating In
Slide 10: Performance by Business Segment in the First Three Quarters of FY2014.3
Performance by Business Segment in the First Three Quarters of FY2014.3 (Nine Months) Net Sales Change from the previous Operating Income projections Year-on-year change (Billions of yen) 310.0 308.7 308 ((+12.7%)) 7 (-0.4%) (-0 4%) (-1.6%) 273.9 18.1 17.8 (-1.6%) (+30.7%) 14.8 (-4.9%) Others 15.6 E
Slide 11: FY2014.3 1-3Q Operating Income Analysis (Nine Months)
FY2014.3 1 1--3Q Operating Income Analysis (Nine Months) A t l Actual Improvement (Billions of yen) decrease in Versus same period of the previous year in SG&A manufacturing cost +¥1.7 Effects of structural +¥1.9 ¥1.9 reform Increase in +¥1.9 labor cost at Actual overseas Impact of decrease in Impac
Slide 12: Outlook for Fourth Quarter and Full Year
Outlook for Fourth Quarter and Full Year Key Points Ongoing delay in emerging market recovery Although electronic device business slowed in the third quarter, full-year sales and operating income are expected to be on par with the previous projections Review of SG&A expenses and other costs
Slide 13: Forecast for Performance in the Fourth Quarter of FY2014.3
Forecast for Performance in the Fourth Quarter of FY2014.3 (Three Months) (Billions of yen) FY2014.3 Change from FY2014.3 4Q Change from FY2013.3 4Q same period of previous previous 4Q results projections the previous year projections projections Net Sales 93.0 99.3 +6.7% 98.0 +1.3% Operating Income
Slide 14: Forecast for Performance by Business Segment in the Fourth Quarter
Forecast for Performance by Business Segment in the Fourth Quarter of FY2014.3 (Three Months) Net Sales Operating Income Change from Year-on-year change the previous (Billions of yen) projections 93.0 98.0 (+6.8%) 99.3 (+1.3%) (-4.6%) Others 6.5 (+8.8%) 6.2 Electronic 5.7 4.5 (+39.4%) 5.2 (+15.6%) D
Slide 15: Forecast for Performance in FY2014.3 (Full Year)
Forecast for Performance in FY2014.3 (Full Year) (Billions of yen) FY2013.3 FY2014.3 Change FY2014.3 Change from full fear from Full Full Year previous previous previous 1-3Q 4Q 1-3Q 4Q New year results projections projections Year projections Projections Net Sales 273.9 93.0 366.9 308.7 99.3 408.0
Slide 16: FY2014.3 Full Year Forecast for Performance by Business Segment
FY2014.3 Full Year Forecast for Performance by Business Segment Net Sales Change from Operating Income the previous Year-on-year change projections (Billions of yen) 408.0 ((+11.2%)) 408.0 (－) 22 0 22.0 22 0 22.0 366.9 24.5 (+0.9%) 24.0 (-2.0%) (+33.3%) 20.0 (－) Others 23.8 20.0 0 Others Electronic
Slide 17: FY2014.3 Full Year Operating Income Analysis
FY2014.3 Full Year Operating Income Analysis Improvement in (Billions of yen) Versus same period of the previous year manufacturing Effects of cost structural +¥2.7 reform +¥2.3 Increase in labor cost Impact of at overseas Impact of exchange factories guitar productions Actual Actual rates 22.0 -¥2.
Slide 18: Musical Instruments Full Year Projections
Musical Instruments Full Year Projections (Billi (Billions off yen)) Net Sales 258.5 258.5 Full Year Projections j 235.5 • Sales are projected to increase Music 80.8 79.7 year-on-year and be in line with schools, 81.9 etc. previous projections Yamaha • Although the North American musical 177.7 178.8
Slide 19: Musical Instruments Sales by Region
Musical Instruments Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, 108.0 105.0 105 0 (97%) discounting the impact of exchange rates 4Q 26.7 26.5 ((99%)) 3Q 25.9 25 6 (99%) 25.6 40.6 (102%) 44.5 (97%) 42.8 (98%) Q 25.4 33.4 36.7 37.6 2Q 25 4 24 2 (95%) 24.2
Slide 20: Audio Equipment Full Year Projections
Audio Equipment Full Year Projections (Billi (Billions off yen)) Net Sales Full Year Projections j 105.0 105.5 92 6 92.6 7.3 7.6 • Sales are expected to be slightly ICT devices 6.5 higher than previous projections 42.1 41.7 PA 37.0 • Sales of professional audio equipment equipment will be slow to re
Slide 21: Audio Equipment Sales by Region
Audio Equipment Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, discounting the impact of exchange rates 28.6 (98%) 24.6 24.3 (99%) 25.0 (99%) 23.3 21.3 6.5 (95%) 17.4 20.8 (105%) 4Q 5.7 (89%) 6.3 7.4(118%) 6.1 59 5.9 4.9 (114%) 9.2 (94%) 3Q 6.6 8.0 (104%)
Slide 22: Sales by Major Product Category
Musical Instruments/Audio Equipment: Sales by Major Product Category (Billions (Billi of yen) Musical Instruments Audio Equipment Piano Digital Musical Instruments AV Products 75.3 (103%) 47.7 (101%) 62 5 62.5 16.7 40.9 (105%) 49.2 (98%) 15.1 42.4 12.2 (109%) 4Q 24.5 ((106%)) 10.3 (95%) 10.6 19.0 10
Slide 23: Electronic Devices Full Year Projections
Electronic Devices Full Year Projections (Billi (Billions off yen)) Net Sales Full Year Projections j • Sales are predicted to increase year-on-year and be on par with previous projections • A fourth quarter rally in customer 20.0 20.0 15.0 operations, especially in the amusement equipment sector se
Slide 24: Others Full Year Projections
Others Full Year Projections (Billi (Billions off yen)) 売上高 Net Sales Full Year Projections j 23 8 23.8 24.5 24.0 • Overall sales are expected to be FA equipment, 5.4 6.2 5.8 etc. slightly lower than previous Resort 5.2 5.5 5.2 projections Golf products 5.2 5.8 • Factory automation equipment and 5.6
Slide 25: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billi (Billions off yen)) Capital Expenditure (Depreciation) 13.8 12.0 (13.1) 1.1 11.3 (12.7) Others 1.4 (11.6) 1.2 8 7 (8.3) 8.7 (8 3) (9.3) * 04 0.4 1.2 1 2 Electronic 7.1 2.5 0.2 Devices Audio 0.7 3.0 2.8 Equipment 0.4 0.7 Musical Instruments 1.8* 0.
Slide 26: Inventories
Inventories Inventories at the end of December were ¥5.4 billion higher than the same period of the previous year (excluding the +¥11.0 billion impact of exchange rates, actual inventories decreased by ¥5.6 billion) Inventories at fiscal year-end are projected to be ¥81.0 billion (forex impact of
Slide 27: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 3Q As of fiscal year end As of Dec. 31, As of Dec. 31, As of Mar. 31, As of Mar. 31, Change 2014 projections Change 2012 2013 2013 Cash and deposits 50.0 68.1 18.1 51.4 62.2 10.8 Notes and accounts receivable 57.1 64.8 7.7 51.0 53.6 2.6 Inventorie
Slide 28: Return to Shareholders
Return to Shareholders FY2014.3 annual dividend has been revised upward to ¥22.5 per share 50 Special dividends 42.5 Annual dividend per share 27.5 22.5 22.5 20 20 Regular R l 15 15 dividends 10 10 10 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 FY2011.3 FY2012.3 FY2013.3 FY2014.3
Slide 29: Appendix
Appendix
Slide 30: Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss
Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss (Nine Months) FY2014.3 1-3Q FY2014.3 1-3Q FY2013.3 1-3Q (Billions of yen) previous projections results Non-Operating Income/Loss Net financial income 0.6 1.0 1.0 Other -1.4 -2.5 -1.5 Total -0.8 -1.5 -0.5 Gain on sales of investment
Slide 31: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2013.3 full year FY2014.3 full year FY2014.3 full year previous projections new projections (Billions of yen) Non-Operating p g Income/Loss Net financial income 1.1 1.4 1.5 Other -1.7 -2.9 -3.0 Total -0.6 -1.5 -1.5 Gain on sale of inv
Slide 32: Quarterly Sales and Income
Quarterly Sales and Income (Billions of yen) 111.0 97.1 93.0 97.0 100.7 99.3 90.0 86.8 7.5 9.1 6.2 Operating 4.3 3.6 Income 2.6 -1.2 -0.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2013.3 FY2014.3 p projections j 32
Slide 33: Quarterly Sales and Income by Segment
Quarterly Sales and Income by Segment (Billions of yen) Musical Instruments Audio Equipment 69.7 62.6 64.3 61.8 56 2 61.0 58 8 56.2 58.8 61 0 59.5 59 5 30 6 30.6 26.9 26.1 24.1 23.5 25.3 20.5 21.0 5.1 6.3 3.2 4.4 2.7 15 1.5 22 2.2 13 1.3 2.2 18 1.8 -0.5 06 0.6 1.0 0 0.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -0.3
Slide 34: Forward-looking statements notice
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