Yamaha Corporation · TSE:7951
Yamaha — Q1 FY2006 Earnings Presentation
30 slides from Yamaha's earnings presentation, Aug 1, 2005
Slide 1: Analyst and Investor Briefing on the First Quarter of FY Ending March 2006
Analyst and Investor Briefing on the First Quarter of the Fiscal Year Ending March 31, 2006 (April 1, 2005 to June 30, 2005) August 1, 2005 YAMAHA CORPORATION
Slide 2: Overview of Performance in the First Quarter
Overview of Performance in the First Quarter ¾ Sales were lower than the initial projection made on April 28, but operating income was higher. Both sales and operating income were down compared to the first quarter of the previous year. Net sales were ¥1.7 billion lower than initially projected, dow
Slide 3: Performance in the First Quarter
Performance in the First Quarter ¾ Sales were lower than initially projected on April 28, while operating income was higher ¾ Sales operating income decreased year-on-year Net income for this quarter improved due to the absence of depletion expenses incurred in the previous year) (Billions of yen) C
Slide 4: Results by Business Segment in the First Quarter
Results by Business Segment in the First Quarter Net Sales Operating 132.9 Income Recreation & others 10.1 124.1 (-6.6%) 125.8 (-1.4%) Lifestyle-related 9.5 (-5.9) 9.5 0) (Billions of yen) products 10.4 11.2 (+7.7) 10.2 (+9.8) 15.0 Electronic equipment and 21.2 13.6 (+1.5) Figures in parentheses met
Slide 5: Forecasts of Business Performance in FY2006 (Full Year)
Forecasts of Business Performance in FY2006 (Full Year) ¾ Full year forecasts have not been revised from the initial projections (Billions of yen) FY2005 FY2006 Change (Previous Year) (Projections) Net sales 534.1 546.0 +2.2% Operating 35.7 37.0 +3.6% Income Recurring Profit 41.3 42.5 +2.9% Net 19.7
Slide 6: FY2006 (Full Year) Results by Business Segment
FY2006 (Full Year) Results by Business Segment Net Sales Operating Income 546.0 (+2.2%) (Billions of yen) 539.5 534.1 (-1.0%) Recreation 44.0 (+5.0) & others 46.2 41.9 (-9.3) Lifestyle-related 42.8 41.5 (-3.0) products 44.8 (-4.5) Electronic (-10.3) 58.5 (-15.2) 45.1 equipment and 76.9 69.0 1.5 meta
Slide 7: Musical Instruments
Musical Instruments 1Q Overview FY2006 Projections and Priority Policies Excluding the impact of exchange rate fluctuations, net sales in • Steadily launch new products in time for Christmas sales the first quarter were 3.1% below initial projections, and were push; increase sales especially sluggis
Slide 8: AV/IT
AV/IT 1Q Overview FY2006 Projections and Priority Policies Excluding the impact of exchange rate fluctuations, first • Continue growth of home theater operations quarter sales were 9.1% below the initial projection and Strengthen and expand YSP business 9.0% lower than the same quarter of the previo
Slide 9: Electronic Equipment and Metal Products
Electronic Equipment and Metal Products 1Q Overview FY2006 Projections and Priority Policies Although first quarter sales and operating income Boost share with increased sales of new LSI sound chip exceeded initial projections, they were below products for mobile phones results for the same quarter
Slide 10: Lifestyle-Related Products
Lifestyle-Related Products 1Q Overview FY2006 Projections and Priority Policies Sales and operating income in the first quarter rose year-on- Build on the strong start in the first quarter and aim for year and compared to initial projections enhanced profitability compared to the previous year • Rem
Slide 11: Recreation
Recreation 1Q Overview FY2006 Projections and Priority Policies Although stays at facilities such as In addition to increasing revenue by attracting more Nemunosato™ and Tsumagoi™ increased due to customers, minimize deficit by further efforts to factors including the effects of the Aichi Expo, rati
Slide 12: Others
Others 1Q Overview FY2006 Projections and Priority Policies With an increase in sales of golf products, FA and Continue new customer development and metallic molds against the initial projections, strengthen productivity for automobile positive operating income was achieved in the first interior woo
Slide 13: Inventories
Inventories ¾ Inventories at the end of the first quarter increased compared with both the initial projection and the same quarter of the previous year. Every effort will be made to shrink inventories by the end of the fiscal year. (Billions of yen) At the end of 1Q At the end of the fiscal year 79.
Slide 14: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/ R&D Expenses Capital Expenditure/ (Billions of yen) Depreciation 22.7 (19.0) 24.0 (19.9) 21.2 (17.5) (4.8) (4.7) 5.3 4.8 4.9 4.0 3.5 5.6 Others 4.4 5.0 0.8 1.7 Electronic equipment 0.7 1.8 1.1 & metal products 1.1 0.4 0.2 0.2 AV/IT 10.1 11.3 11.9 Musical 1.9 2.2 Ins
Slide 15: Interest-Bearing Liabilities (Actual Balance)
Interest-Bearing Liabilities (Actual Balance) (Billions of yen) 39.5 Free Cash Flows 29.1 23.2 -2.4 -19.6 FY2004 FY2004 FY2005 FY2006 (Full Year) (1Q) (2-4Q) 2-4Q projection FY2006 Q Interest-bearing Liabilities 22.3 16.8 14.9 Long- and short-term borrowings, less cash and deposits -4.6 -2.4 As at M
Slide 16: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of June 30, As of March As of June As of March 2004 31, 2005 30, 2005 31, 2006 Cash and Bank 30.5 51.2 35.6 30.1 Deposits Accounts and Notes 81.0 71.6 72.8 85.8 Receivable Inventories 79.3 78.4 84.7 69.4 Other Current Assets 22.2 24.4 22.4 25.5 Fixed Assets
Slide 17: Appendix
Appendix
Slide 18: Slide 18
Slide 19: First Quarter Non-Operating Income/Extraordinary Income (Loss)
First Quarter Non-Operating Income/ Extraordinary Income (Loss) FY2005 1Q FY2006 1Q FY2006 1Q (Initial Projections) Non-Operating Income (Billions of yen) Equity method income 2.8 5.3 2.8 Net financial income 0.2 0.2 0.1 Other - 0.8 - 0.8 - 1.0 Total + 2.2 + 4.7 +1.9 Extraordinary Income (Loss) Inco
Slide 20: FY2006 Non-Operating Income/Extraordinary Income (Loss)
FY2006 Non-Operating Income/ Extraordinary Income (Loss) FY2004 FY2005 FY2006 (Projections) Non-Operating Income Billions of yen Equity method 10.4 9.1 11.0 income Net financial - 1.0 - 0.3 - 0.6 income Other - 3.5 - 3.2 - 4.9 Total + 5.9 + 5.6 +5.5 Extraordinary Income (Loss) Income from (loss on)
Slide 21: Yamaha Musical Instrument Sales in the Japanese Market
YAMAHA Musical Instrument Sales in the Japanese Market With the end of the initial round of “STAGEA™” Electone™ shipments, first quarter sales fell year-on-year Spring enrolments in Yamaha Music Schools rose year-on-year for the second year running, and this is expected to boost sales (Billions of y
Slide 22: Yamaha Musical Instrument Sales in the U.S. Market
YAMAHA Musical Instrument Sales in the U.S. Market Retail sales are robust but increased shipments at the end of the previous fiscal year (4Q) have left inventories higher than planned. Thus sales in 1Q were lower than projections. However, the current round of inventory adjustment is coming to an e
Slide 23: Yamaha Musical Instrument Sales in the German Market
YAMAHA Musical Instrument Sales in the German Market Retail sales are slack and conditions continue to be challenging. Sales should pick up with new electronic instruments for autumn and the launch of high-function professional audio models. Wholesale Amount (Millions of Euros) 194 200 188 180 (111%
Slide 24: Yamaha Musical Instrument Sales in the U.K. Market
YAMAHA Musical Instrument Sales in the U.K. Market The musical instrument market is sluggish all round, but inventory has been reduced and the new high-added-value CLPO1 electronic piano and wind instrument school campaign are expected to spark increased sales. Wholesale Amount 68 (Millions of ) 65
Slide 25: Yamaha Musical Instrument Sales in the Chinese Market
YAMAHA Musical Instrument Sales in the Chinese Market Sales of pianos manufactured in Hangzhou are increasing rapidly as production rises. Sales networks are also being established for these products. A new subsidiary, was established in Shanghai in July; now preparing to open Yamaha Music School in
Slide 26: Inventory of Musical Instrument Products
Inventory of Musical Instrument Products ¾ Inventories at the end of the first quarter were up compared to both initial projections and the same quarter of the previous year. Inventories increased in the U.S. By product, inventories rose for pianos and electronic instruments. End of First Quarter En
Slide 27: Scale of Global Market for Home Theater Products
Scale of Global Market for Home Theater Products (Home Theater Systems + AV Amplifiers/Receivers) Home Theater Systems AV Amplifiers/Receivers Although the market is expanding, the prices continue falling. Growth • The global market is shrinking in 2006 is expected to be 8% by volume. • North Americ
Slide 28: Yamaha's AV Market Share
Yamaha’s AV Market Share Japan Home Theater Systems: Share of Total Sales Amount AV Amplifiers: GfKJ Share of Total Sales Amount GfKJ 39 14 14 35 34 31 11 10 23 ‘01 ‘02 ‘03 ‘04 ’05 (Jan.-June) ‘01 ‘02 ‘03 ’04 ’05 (Jan.-June) U.S. Home Theater Systems: AV Receivers: Share of Total Sales Amount Share
Slide 29: LSI Sound Chips for Mobile Phones: Trends and Measures
LSI Sound Chips for Mobile Phones: Trends and Measures Market Environment - The mobile phone market will be driven by emerging markets such as China, India and Brazil in 2005 and can expect to see growth of 10% or more compared with the previous year. However, this will not result in expanded sales
Slide 30: Forward-looking forecast cautionary note
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, our actual performance may differ greatly from our