Yamaha Corporation · TSE:7951
Yamaha — FY2023.3 Earnings Presentation
37 slides from Yamaha's earnings presentation, May 10, 2023
Slide 1: Analyst and Investor Briefing on FY2023.3
Analyst and Investor Briefing on FY2023.3 (Fiscal year ended March 31, 2023) May 10, 2023 Yamaha Corporation
Slide 2: FY2023.3 Full Year Highlights
FY2023.3 Full Year Highlights Overview Performance in FY2023.3 • Revenue and profit both increased year-on-year. • Revenue increased due to price optimization and the depreciation of the yen despite the impact of semiconductor procurement difficulties, decreased demand for entry-level models, and tu
Slide 3: 1. Performance Summary
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Slide 4: FY2023.3 Summary
FY2023.3 FY2024.3 Full Year Performance Full Year Outlook FY2023.3 Summary (billions of yen) FY2022.3 FY2023.3 Change (YoY) *2 Revenue 408.2 451.4 43.2 +10.6% Core Operating Profit 43.0 45.9 (Core Operating Profit Ratio) 2.8 +6.6% (10.5%) (10.2%) *1 Net Profit 37.3 38.2 0.9 +2.5% *2 -0.2% Exchange R
Slide 5: Core Operating Profit Analysis
FY2023.3 FY2024.3 Full Year Performance Full Year Outlook Core Operating Profit Analysis (billions of yen) Versus previous year Impact of Energy prices Increase in sales and exchange and production, model mix, rates Labor cost procurement and price optimization SG&A *1 IMC business -1.0 cost and oth
Slide 6: Performance by Business Segment
FY2023.3 FY2024.3 Full Year Performance Full Year Outlook Performance by Business Segment (billions of yen) Exchange FY2022.3 FY2023.3 Change rate impact Revenue 276.2 302.7 26.5 31.2 Musical Core Operating Profit 37.3 36.2 -1.1 7.0 Instruments Core Operating Profit Ratio 13.5％ 12.0％ -1.5P Revenue 9
Slide 7: FY2024.3 Outlook
FY2023.3 FY2024.3 Full Year Performance Full Year Outlook FY2024.3 Outlook （billions of yen） FY2023.3 FY2024.3 Change (YoY) (projections) *2 Revenue 451.4 470.0 18.6 +4.1% Core Operating Profit 45.9 56.0 10.1 +22.1% (Core Operating Profit Ratio) (10.2%) (11.9%) *1 Net Profit 38.2 42.0 3.8 +10.0% *2
Slide 8: Core Operating Profit Analysis
FY2023.3 FY2024.3 Full Year Performance Full Year Outlook Core Operating Profit Analysis (billions of yen) Versus previous year Increase in sales and production, model mix, and price optimization SG&A *1 -5.7 IMC business and others 56.0 -0.7 15.3 Impact of Energy prices Ocean freight 45.9 exchange
Slide 9: Outlook by Business Segment
FY2023.3 FY2024.3 Full Year Performance Full Year Outlook Outlook by Business Segment (billions of yen) FY2023.3 FY2024.3 Exchange Change (projections) rate impact Revenue 302.7 318.0 15.3 -7.9 Musical Core Operating Profit 36.2 43.0 6.8 -1.3 Instruments Core Operating Profit Ratio 12.0％ 13.5% +1.5P
Slide 10: 2. Segment Overview & Updates
2. Segment Overview & Updates
Slide 11: Segment Revenue and Core Operating Profit
Musical Instruments Audio Equipment IMC Business and Others Segment Revenue and Core Operating Profit FY2023.3 Revenue decreased on real basis due to the impact of COVID in China and decrease in entry-level demand • Sales of pianos decreased significantly due to the impact of COVID in China, while d
Slide 12: Revenue by Major Product Category
Musical Instruments Audio Equipment IMC Business and Others Revenue by Major Product Category (billions of yen) Pianos Digital Musical Winds, Strings Guitars Instruments /Percussion (108%) (95%) 108.4 103.0 96.1 (81%) 22.9 26.1 (108%) (123%) (84%) 64.1 63.8 (102%) (100%) 60.6 30.1 62.3 60.4 (86%) (1
Slide 13: Revenue by Region
Musical Instruments Audio Equipment IMC Business and Others Revenue by Region (114%) (106%) (billions of yen) 82.7 83.8 (108%) 22.2 (98%) (102%) (107%) (115%) (108%) 60.4 (103%) 58.3 57.4 59.8 (97%) 59.0 58.5 55.6 56.8 (79%) 57.0 56.0 53.3 (101%) (86%) 51.0 (101%) 4Q 14.9 15.0 18.1 (120%) 12.7 47.3
Slide 14: Segment Revenue and Core Operating Profit
Musical Instruments Audio Equipment IMC Business and Others Segment Revenue and Core Operating Profit FY2023.3 Revenue increased with the easing of the impact of semiconductor procurement difficulties in the 2H for PA equipment • AV: Revenue decreased sharply due to the semiconductor procurement dif
Slide 15: Revenue by Major Product Category
Musical Instruments Audio Equipment IMC Business and Others Revenue by Major Product Category (billions of yen) AV Products PA Equipment ICT Equipment PA Equipment includes only sales of products for PA Equipment (excluding engineering and installation services) (107%) 49.4 (120%) 41.2 14.0 (82%) 10
Slide 16: Revenue by Major Product Category
Musical Instruments Audio Equipment IMC Business and Others Revenue by Major Product Category The segment breakdown changed from AV products, PA equipment and ICT equipment to Consumer and B2B products from FY2024.3 Consumer Products B2B Products (112%) (billions of yen) (88%) 55.6 50.8 (116%) (105%
Slide 17: Revenue by Region
Musical Instruments Audio Equipment IMC Business and Others Revenue by Region (billions of yen) (112%) (100%) 32.1 (113%) 30.8 30.1 28.7 (98%) (109%) 26.9 (128%) (97%) 11.4 25.4 25.4 24.5 4Q 8.9 (110%) 7.4 21.0 (100%) 6.2 (109%) 6.9 (102%) 18.6 (123%) 17.7 6.0 (122%) 3Q 6.1 7.5 5.8 14.9 (125%) (101%
Slide 18: Segment Revenue and Core Operating Profit
Musical Instruments Audio Equipment IMC Business and Others Segment Revenue and Core Operating Profit FY2023.3 • Sales of electronic devices increased with the increased adoption of automotive sound systems by automakers. Revenue (billions of yen) • Sales of automobile interior wood components and f
Slide 19: 3. Other Financial Figures
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Slide 20: Balance Sheet Summary
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns Balance Sheet Summary (billions of yen) As of March As of March 31, As of March 31, 2022 Change 2024 31, 2023 (adjusted) (projections) Cash and cash equivalents 172.5 103.9 -68.6 138.0 Trade and other receivables
Slide 21: Capital Expenditure/Depreciation and R&D Expenses
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns Capital Expenditure/Depreciation and R&D Expenses Capital Expenditure/Depreciation (billions of yen) 33.5 2.0 20.5 6.5 14.8 ■Others 1.4 ■Audio Equipment 0.7 4.0 2.6 25.0 ■Musical Instruments 12.1 15.2 13.1 14.5 ■
Slide 22: 4. Topics
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Slide 23: Medium-Term Management Plan Progress in Non-Financial Targets
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns Medium-Term Management Plan Progress in Non-Financial Targets Non-financial targets to enhance sustainable growth capability in the new society Indicators to connect more New value creation with customers indicat
Slide 24: Medium-Term Management Plan: Further strengthen the business foundation
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns Medium-Term Management Plan Key Theme/ Further strengthen the business foundation (1) Develop closer ties with (2) Create new value (3) Be more flexible and customers resilient Strategic investment to enhance Cre
Slide 25: Create new value - Develop Products with Distinctive Individuality
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns Medium-Term Management Plan Key Theme/Further strengthen the business foundation (2) Create new value - Develop Products with Distinctive Individuality Concert grand piano Digital piano Synthesizer Portable keybo
Slide 26: Set sustainability as a source of value
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns Medium-Term Management Plan Key Theme/ Set sustainability as a source of value [ [Society] [Culture] [Culture] [Environment] ②Enhance brand and competitiveness by [Society] ③Expand (3) Expand market market throug
Slide 27: Enable Yamaha colleagues to be more valued, engaged, committed
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns Medium-Term Management Plan Key Theme/ Enable Yamaha colleagues to be more valued, more engaged, and more committed (3) Foster open organizational (2) Promote respect for human rights (1) Increase job satisfactio
Slide 28: Medium-Term Management Plan Financial Indicators
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns Medium-Term Management Plan Financial Indicators Revenue/Revenue growth Core operating profit ratio 600.00 ■Revenue（billions of yen） 35% 451.4 470.0 14% 414.2 408.2 20% 372.6 25% 400.00 15% 11.9% 11% 15% 10.9％ 10
Slide 29: External Evaluation
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns External Evaluation Yamaha selected for all six ESG indices for Best Japan Brands 2023 Japanese equities adopted by the GPIF Selected for 9 consecutive years FTSE Blossom Japan Index Ranked 28th, the equal rankin
Slide 30: 5. Return to Shareholders
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Slide 31: Dividends, Total Return Ratio and Payout Ratio
Performance Other Shareholder Segment Overview Topics Summary Financial Figures Returns Dividends, Total Return Ratio and Payout Ratio Annual Dividend per Share Payout Ratio Share Buyback ¥15 billion ¥28 billion ¥15 billion 74 yen 66 yen 66 yen 66 yen 66 yen 43.6％ 33.9％ 30.7% 29.6% 29.8% FY2020.3 FY
Slide 32: Appendix
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Slide 33: FY2023.3 4Q Summary (Three Months)
FY2023.3 4Q Performance FY2023.3 4Q Segment Full Year (three months) Overview (three months) Other Income/Expenses FY2023.3 4Q Summary (Three Months) （billions of yen） FY2022.3 4Q FY2023.3 4Q Change (QoQ) *2 Revenue 105.9 113.2 7.3 +6.9% Core Operating Profit 8.2 7.1 -1.0 （Core Operating Profit Rati
Slide 34: Performance by Business Segment (Three Months)
FY2023.3 4Q Performance FY2023.3 4Q Segment Full Year (three months) Overview (three months) Other Income/Expenses Performance by Business Segment (Three Months) (billions of yen) Exchange FY2022.3 4Q FY2023.3 4Q Change rate impact Revenue 71.5 72.2 0.8 5.3 Musical Core Operating Profit 8.2 4.8 -3.4
Slide 35: Full Year Other Income and Expenses
FY2023.3 4Q Performance FY2023.3 4Q Segment Full Year (three months) Overview (three months) Other Income/Expenses Full Year Other Income and Expenses （billions of yen） FY2022.3 FY2023.3 FY2024.3 （projections） Core Operating Profit 43.0 45.9 56.0 Profit from (loss on) Other disposal of fixed assets
Slide 36: Segment Changes
Segment Changes Change in segment details and breakdown from FY2024.3 The breakdown of categories for Audio Equipment Segment changed from AV products, PA equipment and ICT equipment to Consumers and B2B products Audio Equipment Audio Equipment AV products Consumer products PA equipment B2B products
Slide 37: Forward-looking statements caution
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 pro