Yamaha Corporation · TSE:7951
Yamaha — Q2 FY2016.3 Earnings Presentation
31 slides from Yamaha's earnings presentation, Nov 2, 2015
Slide 1: Analyst and Investor Briefing on the Second Quarter of FY2016.3
Yamaha Corporation Analyst and Investor Briefing on the Second Quarter of Fiscal Year Ending March 31, 2016 (FY2016.3) November 2, 2015
Slide 2: Overview of Performance in the First Half of FY2016.3
Overview of Performance in the First Half of FY2016.3 Results Summary First half sales and income increased year-on-year and exceeded previous projections 1H sales and income have now increased for four consecutive years 1H operating income exceeded ¥20 billion, regaining levels prevailing prior
Slide 3: Performance in the First Half of FY2016.3
Performance in the First Half of FY2016.3 (Billions of yen) FY2016.3 Changes from the FY2015.3 FY2016.3 Changes from same 1H results 1H results period of the 1H previous previous previous year projection projections Net Sales 206.4 217.5 +5.4% 215.5 +0.9% Operating Income 15.1 21.2 18.5 (Operating I
Slide 4: Performance by Business Segment in the First Half of FY2016.3
Performance by Business Segment in the First Half of FY2016.3 Net Sales Operating Income Year-on-year change (Billions of yen) 206.4 (5.4%) 217.5 215.5 (-1.1%) 11.9 21.2 ■Others ■Others 12.0 (5.5%) 7.9 0.3 18.5 ■Electronic ■Electronic 7.5 15.1 0.7 Devices Devices (7.3%) 54.5 3.5 ■Audio ■Audio 50.8 E
Slide 5: FY2016.3 1H Operating Income Analysis
FY2016.3 1H Operating Income Analysis (Billions of yen) Versus same period of the previous year Improvement in Impact of manufacturing Increase in exchange cost sales and rates +¥2.2 Increase in Increase in gross labor cost +¥1.3 profitability of margin at overseas Increase in electronic factories S
Slide 6: Musical Instruments 1H
Musical Instruments 1H (Billions of yen) 1H ■Net Sales ■Operating Income 1H Overview 136.1 143.2 Sales and income increased year-on-year Sales were brisk in China and Europe, and Music 33.3 steady growth in North America and Other schools, etc. 37.8 Markets Actual sales of digital pianos, wind
Slide 7: Audio Equipment 1H
Audio Equipment 1H (Billions of yen) 1H ■■■Net Sales ■Operating Income 1H Overview 54.5 50.8 Sales increased from the same period of 7.5 the previous year, and income rose ICT devices 6.5 sharply AV product sales rallied from Q2, due to PA 24.0 factors including the launch of new equipment 20.5
Slide 8: Electronic Devices 1H
Electronic Devices 1H (Billions of yen) 1H ■Net Sales ■Operating Income 1H Overview Sales and income increased year-on-year, with income returning to positive territory Special orders of devices for amusement equipment shipped ahead of schedule Formal transfer of a manufacturing subsidiary Yam
Slide 9: Others 1H
Others 1H (Billions of yen) 1H ■■■■Net Sales ■Operating Income 1H Overview 12.0 11.9 • Although sales were on par with the same period of the previous year, profitability improved to return to positive territory FA equipment, etc. 3.6 3.8 • Sales of factory automation equipment were brisk, but the n
Slide 10: Outlook for Second Half and Full Year
Outlook for Second Half and Full Year Outlook for 2H No major change in overall outlook for the musical instrument market Launch of new AV products and steady growth in professional audio equipment expected to drive the audio equipment business forward Profitability of the electronic device se
Slide 11: Forecast for Performance in FY2016.3 (Full Year)
Forecast for Performance in FY2016.3 (Full Year) (Billions of yen) Changes from FY2016.3 Changes from FY2015.3 FY2016.3 same period of results projections the previous previous the previous year projections projection Net Sales 432.2 437.0 +1.1% 437.0 - Operating Income 30.1 37.0 35.0 (Operating Inc
Slide 12: FY2016.3 Full Year Forecast by Business Segment
FY2016.3 Full Year Forecast for Performance by Business Segment Net Sales Operating Income Change from the Year-on-year change previous projections (Billions of yen) (1.1%) 432.2 437.0 (-) 437.0 ■Others 24.0 ■Electronic 24.2 (-1.0%) (-2.0%) 24.5 13.4 (-3.2%) 13.0 (-) 13.0 37.0 Devices 30.1 35.0 ■Aud
Slide 13: FY2016.3 Full Year Operating Income Analysis
FY2016.3 Full Year Operating Income Analysis (Billions of yen) Versus previous year Improvement in manufacturing Increase in cost profitability of +¥4.1 Increase in electronic labor cost devices 37.0 at overseas Increase in factories sales and +¥2.3 Increase in Impact of gross -¥1.8 SG&A exchange ma
Slide 14: Musical Instruments Full Year Projections
Musical Instruments Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income Full Year Projections Although previous projections for sales 281.7 281.5 281.5 remain unchanged, income is expected to be higher than previously projected Music 78.2 63.8 64.6 schools, etc. Condit
Slide 15: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Sales Projections (including software products and music schools) (Billions of yen) *Figures in blue parentheses show actual 105.0 year-on-year changes, excluding the sales of music school 89.7 (98%) Figures in red parentheses (85%) show actual year-on-year 4Q26.
Slide 16: Audio Equipment Full Year Projections
Audio Equipment Full Year Projections Full Year (Billions of yen) ■■■Net Sales ■Operating Income Full Year Projections Sales and income are expected to rise 118.5 118.0 112.8 year-on-year and against previous projections 15.2 15.2 ICT devices 13.6 A rebound in sales of AV product is anticipated,
Slide 17: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, 31.7(100%) 30.8 (108%) discounting the impact of 30.1 exchange rates 28.7 (90%) 7.1 6.8 (107%) 24.7 24.3 (99%) 6.5 7.9 (107%) 21.0 19.6 4Q 8.2 (92%) 8.8 9.9 (111%) (107%) 9.2 9.9 (118%) 4.5 4.
Slide 18: Sales by Major Product Category (Yamaha branded products)
Musical Instruments/Audio Equipment: Sales by Major Product Category (Yamaha branded products) (Billions of yen) Musical Instruments Audio Equipment Piano Digital Musical Instruments AV Products 89.0 (102%) (101%) 85.7 50.1 52.9 46.5 47.9 (101%) 19.3 19.1 (99%) 4Q (96%) (97%) 12.8 12.2 10.0 (106%) 1
Slide 19: Electronic Devices Full Year Projections
Electronic Devices Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income Full Year Projections Previous projections remain unchanged Deterioration in profitability of amusement equipment is anticipated due to changes in the product mix and lower 2H sales associated with
Slide 20: Others Full Year Projections
Others Full Year Projections Full Year (Billions of yen) ■■■■Net Sales ■Operating Income Full Year Projections Sales are expected to be lower than previous projections, but income 24.2 24.0 24.5 projections remain unchanged FA equipment, New products are expected to boost golf etc. 6.4 6.8 7.5 p
Slide 21: Inventories
Inventories Inventories at the end of second quarter (Sept 30, 2015) amounted to ¥99.3 billion. Actual inventories increased ¥4.0 billion when excluding forex impact of +¥0.6 billion. Inventories at the end of the fiscal year is forecast to be in line with the target, reaching ¥90.3 billion. (Bill
Slide 22: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) ■Others ■Electronic Devices 13.8 13.8 13.8 (13.6) ■Audio Equipment (12.6)0.7 (12.9) ■Musical Instruments 0.8 0.6 0.6 0.6 0.6 0.3 6.7 (5.9) (6.1) 2.8 4.7 0.5 4.8 1.3 0.3 4.8 0.5 1.3 9.5 4.5 7.8 8.0 2.6
Slide 23: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 1H As of end of fiscal year end As of Sept As of Sept As of Mar. 31, As of Mar. 31, Change 2016 projections Change 30, 2014 30, 2015 2015 Cash and deposits 72.3 87.6 15.3 79.3 96.3 17.0 Notes and accounts receivable 60.6 59.6 -1.0 60.3 56.5 -3.8 I
Slide 24: Appendix
Appendix
Slide 25: Performance in the Second Quarter of FY2016.3 (Three Months)
Performance in the Second Quarter of FY2016.3 (Three Months) (Billions of yen) Changes from Changes from FY2016.3 FY2015.3 FY2016.3 same 2Q results 2Q results previous year 2Q previous projection period of the the previous projections Net Sales 106.8 111.9 +4.8% 110.0 +1.7% Operating Income 8.8 12.4
Slide 26: Performance by Business Segment in the Second Quarter (Three Months)
Performance by Business Segment in the Second Quarter of FY2016.3 (Three Months) Net Sales Operating Income Year-on-year change (Billions of yen) (4.8%) 111.9 110.0 106.8 (-13.9%) 5.4 12.4 6.3 (20.0%) 4.4 ■Electronic ■Others 3.7 0.3 Devices ■Electronic ■Audio Devices (12.4%) 29.7 8.8 2.5 9.6 Equipme
Slide 27: 1H Non-Operating Income/Loss & Extraordinary Income/Loss
1H Non-Operating Income/Loss & Extraordinary Income/Loss FY2015.3 1H FY2016.3 1H FY2016.3 1H (Billions of yen) previous projections Non-Operating Income/Loss Preferential tariff refund at a U.S. subsidiary +¥0.7 Net financial income 1.1 1.3 1.2 Other -1.1 -0.3 -1.2 Total 0 1.0 0 Extraordinary Income
Slide 28: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss (Billions of yen) FY2015.3 full year FY2016.3 full year FY2016.3 full year projections previous projections Non-Operating Income/Loss Net financial income 2.6 2.4 2.3 Other -1.5 -1.9 -2.3 Total 1.1 0.5 0 Extraordinary Income/Loss -Busin
Slide 29: Quarterly Sales and Income
Quarterly Sales and Income (Billions of yen) 116.9 117.0 118.0 111.9 110.0 106.8 108.9 105.5 105.5 103.5 99.6 102.5 8.9 10.6 8.9 12.4 11.8 8.9 9.6 12.5 6.2 4.4 4.0 4.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2015.3 FY2016.3 (projections) FY2016.3 (previous projections) Net Sales 432.2 Net Sales 437.0
Slide 30: MusicCast: Key Products in FY2016.3
Key Products in FY2016.3 A wireless multiroom audio system controlled by a simple app MusicCastTM Delivering compatible products in the US and European market 30
Slide 31: Forecast 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