Yamaha Corporation · TSE:7951
Yamaha — Q2 FY2021.3 Earnings Presentation
35 slides from Yamaha's earnings presentation, Nov 4, 2020
Slide 1: Analyst and Investor Briefing on Second Quarter of FY2021.3
Analyst and Investor Briefing on Second Quarter of FY2021.3 (Fiscal year ending March 31, 2021) November 4, 2020 Yamaha Corporation
Slide 2: FY2021.3 1H Highlights
FY2021.3 1H Highlights Overview Figures in parentheses are year-on-year comparisons FY2021.3 1H Achievements - The market is on the recovery trend due to stay-at-home demand, but both revenue and profit declined in part due to supply shortages caused by factory operating restrictions - The first hal
Slide 3: 1. Performance Summary
1. Performance Summary YAMAHA
Slide 4: FY2021.3 1H (Six Months) Summary
FY2021.3 1H Performance FY2021.3 (six months) Full Year Outlook FY2021.3 1H (Six Months) Summary (billions of yen) FY2020.3 1H FY2021.3 1H Change *2 Revenue 208.5 164.8 -43.7 -21.0% Core Operating Profit 26.1 13.0 -13.1 -50.2% (Core Operating Profit Ratio) (12.5%) (7.9%) *1 Net Profit 21.1 7.1 -14.0
Slide 5: Core Operating Profit Analysis
FY2021.3 1H Performance FY2021.3 (six months) Full Year Outlook Core Operating Profit Analysis (billions of yen) Versus previous year Decrease in Impact of Labor cost sales and exchange 26.1 rate at overseas production factories and model -1.4 mix etc. -0.8 *1 IMC Cost business reduction and Others
Slide 6: Performance by Business Segment
FY2021.3 1H Performance FY2021.3 (six months) Full Year Outlook Performance by Business Segment (billions of yen) Exchange FY2020.3 1H FY2021.3 1H Change rate impact Revenue 138.7 107.2 -31.4 -2.1 Musical Core Operating Profit 22.3 11.7 -10.5 -1.2 Instruments Core Operating Profit Ratio 16.1% 10.9%
Slide 7: FY2021.3 Outlook
FY2021.3 1H Performance FY2021.3 (six months) Full Year Outlook FY2021.3 Outlook *Full year projections remain unchanged from the previous announcement on August 4, 2020. (billions of yen) FY2020.3 FY2021.3 Full year Change Full year (projections) *2 Revenue 414.2 355.0 -59.2 -14.3% Core Operating P
Slide 8: Core Operating Profit Analysis
FY2021.3 1H Performance FY2021.3 (six months) Full Year Outlook Core Operating Profit Analysis *Full year projections remain unchanged from the previous announcement on August 4, 2020. (billions of yen) Versus previous year Impact of Decrease in exchange Labor cost sales and 46.4 rate at overseas pr
Slide 9: Outlook by Business Segment
FY2021.3 1H Performance FY2021.3 (six months) Full Year Outlook Outlook by Business Segment *Full year projections remain unchanged from the previous announcement on August 4, 2020. (billions of yen) FY2020.3 FY2021.3 Exchange Full year Change Full Year (projections) rate impact Revenue 269.4 228.0
Slide 10: 2. Segment Overview & Updates
2. Segment Overview & Updates
Slide 11: Musical Instruments: Segment Revenue and Core Operating Profit
Musical Instruments Audio Equipment IMC Business and Others Segment Revenue and Core Operating Profit 1H overview: Steady demand for stay-at-home, but revenue and profit declined due to supply shortages ・Piano sales showed signs of recovery as stores reopened; digital musical instrument sales declin
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 ＊Guitars include Line 6 and Ampeg products 92.1 (90%) 19.0 80.7 28.7 53.0 (92%) 50.7 47.6 4Q 9.5 (77%) 11.3 38.5 (101%
Slide 13: Revenue by Region
Musical Instruments Audio Equipment IMC Business and Others Revenue by Region (billions of yen) 68.9 4Q 16.0 57.5 (90%) (73%) 50.2 51.1 49.7 (90%) (103%) 13.4 48.9 3Q 44.3 44.3 44.4 (82%) 15.4 9.9 11.0 5.8 38.0 16.0 16.4 12.7 14.2 2Q 18.0 (79%) 15.3 (79%) (102%) 14.3 11.6 13.4 12.0 (87%) 13.6 12.7 (
Slide 14: Develop Products with Distinctive Individuality
Musical Instruments Audio Equipment IMC Business and Others Develop Products with Distinctive Individuality Distinctive product line-up fusing a wide range of technologies Clavinova digital piano Acoustic Desktop Amp Digital Saxophone CLP-700 series THR30IIA Wireless YDS-150 Weighted, graded keys re
Slide 15: Develop Products with Distinctive Individuality
Musical Instruments Audio Equipment IMC Business and Others Develop Products with Distinctive Individuality Worldwide acclaim for Yamaha Design supports Yamaha growth and the brand enhancement German Design Award 2021* winners Stage piano CP88 Sonogenic SHS-500 Keytars The CP88 stage pianos boast au
Slide 16: Audio Equipment: Segment Revenue and Core Operating Profit
Musical Instruments Audio Equipment IMC Business and Others Segment Revenue and Core Operating Profit 1H overview: Continued stay-at-home demand for AV products; slow recovery in PA equipment ・AV products: earphone and wireless speaker sales robust; sound bars and HiFi components solid ・PA equipment
Slide 17: 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 *Includes only sales of products for PA Equipment (excluding engineering and installation services) 47.3 40.9 (94%) (80%) (111%) 10.3 (117%) 37.6 37.
Slide 18: Revenue by Region
Musical Instruments Audio Equipment IMC Business and Others Revenue by Region (billions of yen) (96%) 31.3 30.1 30.3 (86%) 26.5 (91%) 6.1 26.0 4Q 11.4 23.9 5.6 9.1 18.8 3Q 6.8 8.0 4.2 (76%) 13.4 (104%) 7.2 (91%) 5.5 8.7 (96%) (100%) 2Q 8.3 7.3 (67%) 7.5 4.8 7.1 6.7 1.0 4.9 2.2 (125%) (95%) 7.9 (62%)
Slide 19: Develop Products with Distinctive Individuality
Musical Instruments Audio Equipment IMC Business and Others Develop Products with Distinctive Individuality Strong product lineups to meet diverse needs in the audio equipment field Digital Mixing Systems Wireless Noise-Cancelling Earphones RIVAGE PM5, RIVAGE PM3 EP-E70A The new additions to Rivage
Slide 20: Develop Products with Distinctive Individuality
Musical Instruments Audio Equipment IMC Business and Others Develop Products with Distinctive Individuality Offer various meeting solutions for open workspaces and conference rooms to deliver intuitive meeting experience under flexible working style Ceiling Solution ADECIA Portable USB and Bluetooth
Slide 21: IMC Business and Others: Segment Revenue and Core Operating Profit
Musical Instruments Audio Equipment IMC Business and Others Segment Revenue and Core Operating Profit 1H overview: ・Electronic devices and automobile interior wood components down year on year; increase in factory automation equipment sales (billions of yen) 40 Revenue Full year projection: ・In elec
Slide 22: Develop Products with Distinctive Individuality
Musical Instruments Audio Equipment IMC Business and Others Develop Products with Distinctive Individuality Shift into growing total in-vehicle solution domain Yamaha's First Ever Automotive Sound System to Bring Superior Sound Experience to Automotive Vehicles Lynk & Co New Electric Vehicle New MG5
Slide 23: 3. Other Financial Figures
3. Other Financial Figures mga YAMAHA
Slide 24: Balance Sheet Summary
Performance Other Segment Overview ESG Summary Financial Figures Balance Sheet Summary *Full year projections remain unchanged from the previous announcement on August 4, 2020. (billions of yen) As of Mar. As of Sept. As of March Change 31, 2021 31, 2020 30, 2020 (projections) Cash and cash equivale
Slide 25: Capital Expenditure/Depreciation, R&D Expense
Performance Other Segment Overview ESG Summary Financial Figures Capital Expenditure/Depreciation, R&D Expense *Full year projections remain unchanged from the previous announcement on August 4, 2020. Capital Expenditure/Depreciation (billions of yen) 20.5 ■Others 1.2 14.8 7.2 4.3 0.8 ■Audio Equipme
Slide 26: 4. ESG
nn YAMAHA
Slide 27: ESG
Performance Other Segment Overview ESG Summary Financial Figures ESG Contribute to sustainable development of music culture and society Support for remote entrance exams at Freiburg University Proprietary ear-protecting technology of Music in Germany proposing new value in response to hearing Japan/
Slide 28: Topics
Topics Receipt of Minister of Internal Affairs and Communications’ Award in 25th AMD Award Program A collaborative work of AI reproduction, a legendary singer Hibari Misora, using Yamaha’s VOCALOID: AI singing voice synthesis technology won with the Minister of Internal Affairs and Communications’ A
Slide 29: Topics
Topics Brand Experience Area opens at Yamaha Ginza Shop to provide interactive musical experiences Enhanced customer contact, further shift to interactive experience at directly managed shops The new Brand Experience Area has been opened in the Yamaha Ginza Shop, Yamaha’s flagship store and one of t
Slide 30: Appendix
Appendix YAMAHA
Slide 31: Performance in 2Q FY2021.3 (Three Months)
Performance in 2Q FY2021.3 (Three Months) (billions of yen) FY2020.3 2Q FY2021.3 2Q Change *2 Revenue 109.0 93.0 -16.0 -14.7% Core Operating Profit 15.4 11.9 -3.5 -22.5% (Core Operating Profit Ratio) (14.1%) (12.8%) *1 Net Profit 13.8 8.9 -4.9 -35.7% *2 Exchange Rate (yen) -14.4 % (Excluding the imp
Slide 32: Performance by Business Segment in 2Q FY2021.3 (Three Months)
Performance by Business Segment in 2Q FY2021.3 (Three Months) (billions of yen) Exchange FY2020.3 2Q FY2021.3 2Q Change rate impact Revenue 71.1 60.6 -10.5 -0.3 Musical Core Operating 12.4 9.2 -3.2 -0.6 Instruments Profit Core Operating Profit Ratio 17.5% 15.2% -2.3P Revenue 29.7 25.7 -4.1 0 Audio C
Slide 33: 1H Other Income and Expenses (Six Months)
1H Other Income and Expenses (Six Months) FY2020.3 1H FY2021.3 1H (billions of yen) Core Operating Profit 26.1 13.0 Profit from (loss on) disposal of fixed assets 0.2 -0 Other Income and Expenses Others 1.2 -2.3 Total 1.4 -2.3 Operating Profit 27.6 10.7 Dividends income 1.9 0.4 Financial Income and
Slide 34: Full Year Other Income and Expenses
Full Year Other Income and Expenses *Full year projections remain unchanged from the previous announcement on August 4, 2020. FY2020.3 FY2021.3 (billions of yen) Full year Full year (projections) Core Operating Profit 46.4 25.0 Profit from (loss on) disposal of fixed assets 0.3 -0 Other Income and E
Slide 35: 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 pro