Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2007.3 Earnings Presentation
30 slides from Yamaha's earnings presentation, Feb 8, 2007
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY2007.3
Analyst and Investor Briefing on the Third Quarter of FY2007.3* (April 1 to December 31, 2006) February 8, 2007 YAMAHA CORPORATION *Fiscal year ending March 31, 2007
Slide 2: Overview of Performance in the Third Quarter
Overview of Performance in the Third Quarter Third Quarter Results Sales were lower than the projection announced October 31, while operating income was higher. Sales and operating income were both higher than the same quarter of the previous year. Strong sales of lifestyle-related products cont
Slide 3: Business Performance in the Third Quarter
Business Performance in the Third Quarter ¾Sales and income were up year-on-year ¾Sales were lower than previous projections, while income was higher (Billions of yen) FY2006.3 FY2007.3 Change Previous Change from (3Q) (3Q) from FY projections previous actual Actual projections 2006.3 3Q (Oct. 31, 2
Slide 4: Performance by Business Segment in the Third Quarter
Performance by Business Segment in the Third Quarter Net Sales Operating Income Recreation & others 149.2 152.0 (+1.9%) 154.0 (-1.3%) (Billions of yen) Lifestyle- 10.8 13.2 (+22.2) 12.8 （+3.1) related products 12.5 12.9 (+3.2) 12.5 (+3.2) Electronic Recreation & equipment & 14.2 14.3 (+0.7) 14.0 (+2
Slide 5: Forecast for Business Performance in the Fourth Quarter
Forecast for Business Performance in the Fourth Quarter ¾ Sales and operating income in the fourth quarter are forecast to be lower than previous projections (Billions of yen) FY2006.3 FY2007.3 Change from Previous Change from (4Q) (4Q) projections previous FY2006.3 4Q projections actual (projection
Slide 6: Forecast for Performance by Business Segment in the Fourth Quarter
Forecast for Performance by Business Segment in the Fourth Quarter Net Sales Operating Income Recreation & (Billions of yen) others Recreation & Lifestyle- 127.7 126.0 (-1.3%) 127.5 (-1.2%) Electronic others equipment & related metal products 11.8 12.0 (+1.7) 12.0 （0) products Lifestyle-related prod
Slide 7: Forecast for Business Performance in 2007.3
Forecast for Business Performance in 2007.3 ¾Estimated 4Q exchange rates: US$=¥115 EUR=¥148 (Only EUR estimate has changed, from ¥141 to ¥148) ¾Full-year projection for sales is lower than previous projections, while that for income is higher (Billions of yen) (%) Change Change FY2007.3 FY2007.3 1Q-
Slide 8: FY2007.3 Full Year Forecast for Performance by Segment
FY2007.3 Full Year Forecast for Performance by Segment Net Sales Operating Income Recreation & others 534.1 542.5 (+1.6%) 546.0 (-0.6%) (Billions of yen) Lifestyle- 47.0 related 42.7 47.5 (+11.2) (+1.1) products 45.2 46.0 (+1.8) 46.0 (0) Electronic equipment & 56.2 55.0 (-2.1) 54.5 (+0.9) metal Life
Slide 9: Musical Instruments
Musical Instruments 3Q Overview 4Q Projections and Priority Policies •Sales and income rose year-on-year, partly due to the weaker yen. •Excluding the effect of exchange rate fluctuations, actual 4Q •Discounting the effect of exchange rates, actual 3Q sales were around the sales are expected to be i
Slide 10: AV/IT
AV/IT 3Q Overview 4Q Projections and Priority Policies •Sales fell and operating income declined slightly year-on-year. •4Q sales and income projections were •Actual 3Q sales were 14.6% lower than those in the previous revised downward. year (10% lower than previous projections). •Smooth market laun
Slide 11: Electronic Equipment & Metal Products
Electronic Equipment & Metal Products 3Q Overview 4Q Projections and Priority Policies •Sales increased year-on-year, while income declined. •Downward revision of 4Q operating income Sales and income were both higher than previous projection. projections. •In semiconductor business, sales declined y
Slide 12: Lifestyle-related Products
Lifestyle-related Products 3Q Overview 4Q Projections and Priority Policies •Sales rose and income fell, both year-on-year and •4Q sales are expected to be lower than previous against projections. projections, while operating income is expected •System kitchen sales remained strong thanks to the to
Slide 13: Recreation
Recreation 3Q Overview 4Q Projections and Priority Policies •3Q sales were at the same level as the previous year, •4Q sales are expected to be lower than previous but lower than previous projections. projections. Income projections remain unchanged. •Operating income was ¥0.4 billion higher than th
Slide 14: Others
Others 3Q Overview 4Q Projections and Priority Policies •Sales for the segment as a whole rose both year-on-year and •4Q sales are forecast to be higher than both against previous projections. the previous year’s 4Q results and projections. Production of magnesium •Sales of automobile interior wood
Slide 15: Inventories
Inventories ¾Discounting the effect of exchange rates, inventories at the end of 3Q were ¥1 billion lower than the same quarter of the previous year. (Finished product inventories were ¥3.9 billion lower) ¾ They were ¥4.4 billion higher than previous projections due to increases in unsold products,
Slide 16: Slide 16
Slide 17: Appendix
Appendix
Slide 18: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure/Depreciation Full Year (Billions of yen) 1-3Q 26.5 25.5 22.9 4.8 4.7 4.4 15.8 4.7 (19.6) 4.9 (20.0) 14.8 (18.9) (14.3) 2.5 (14.7) 5.5 1.6 Others 2.6 1.6 Electronic equipment & 2.8 1.1 metal products 4.2 0.9 AV/IT 0.8 14.5 15.2 9.6 11.
Slide 19: Interest-bearing Liabilities (Actual Balance)
Interest-bearing Liabilities (Actual Balance) (Billions of yen) 25.4 Free Cash Flows 5.8 9.9 -9.6 -18.0 FY2006.3 FY2006.3 FY2007.3 FY2007.3 FY2007.3 1H 2H 1H 3Q 4Q (new Interest-bearing projections) Liabilities 15.5 Long- and short-term borrowings, less cash and deposits 4.3 0.3 -8.0 -9.4 As of Sept
Slide 20: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 3Q Full Year As of Dec. 31, As of Dec. 31, Change As of Mar. 31, As of Mar. 31, Change 2005 2006 2006 2007 Cash and bank deposits 30.0 34.9 4.9 36.4 34.5 - 1.9 Accounts & notes receivable 88.6 89.8 1.2 70.3 76.0 5.7 Inventories 84.7 86.3 1.6 77.9
Slide 21: Third Quarter Non-operating Income/Loss & Extraordinary Income/Loss
Third Quarter Non-operating Income/Loss & Extraordinary Income/Loss FY2006.3 (3Q) FY2007.3 (3Q) FY2007.3 (3Q) previous results results projections Non-operating income (loss) (Billions of yen) Equity method income 3.9 3.6 3.4 Net financial income (loss) - 0.1 - 0.1 - 0.2 Other - 1.1 - 1.0 - 1.3 Tota
Slide 22: Full-year Non-operating Income/Loss & Extraordinary Income/Loss
Full-year Non-operating Income/Loss & Extraordinary Income/Loss FY2006.3 FY2007.3 new FY2007.3 previous results projections projections (Billions of yen) Non-operating income (loss) Equity method income 14.8 17.8 17.3 Net financial income (loss) - 0.2 - 0.1 - 0.2 Other - 3.5 - 2.7 - 4.1 Total + 15.0
Slide 23: Yamaha Musical Instrument Sales in the Japanese Market
Yamaha Musical Instrument Sales in the Japanese Market Apart from ElectonesTM, which continued their downward trend, sales of other products for the first three quarters were in line with the previous year. Share in the digital piano market began to increase from the end of the year. Figures in pare
Slide 24: Yamaha Musical Instrument Sales in the U.S. Market
Yamaha Musical Instrument Sales in the U.S. Market The U.S. market struggled, with sales amounting to just 96% of those in the same period of the previous year. Retail sales failed to grow from early December to Christmas, and piano imports (Jan. – Oct.) fell some 25%. However, sales of professional
Slide 25: Yamaha Musical Instrument Sales in the German Market
Yamaha Musical Instrument Sales in the German Market The rallying European economy drove strong sales, amounting to 108% of those in the same period of the previous year. (103% in Germany and 127% in Eastern Europe). Shipments were steady, especially for pianos, electronic pianos and professional au
Slide 26: Yamaha Musical Instrument Sales in the U.K. Market
Yamaha Musical Instrument Sales in the U.K. Market The LS9 digital mixer and other professional audio equipment sold well amid a generally slow Christmas sale season characterized by fierce cost competition and sluggish sales of musical instruments overall. Sales amounted to 97% of those in the same
Slide 27: Yamaha Musical Instrument Sales in the Chinese Market
Yamaha Musical Instrument Sales in the Chinese Market Shipments were steady for both upright pianos manufactured in Hangzhou and imported upright and grand pianos, partly due to large orders from schools. Sales of professional audio equipment and digital mixers were robust, driven by demand from TV/
Slide 28: Scale of Home Theater Market
Scale of Home Theater Market (Home theater systems, amplifiers and receivers) Home Theater Systems AV Amplifiers and Receivers •The market is on a downward trend, especially in Europe and the U.S. (2007 •The global market is shrinking by 3-4 % annually. forecast: 11 million units). •Europe/U.S. mark
Slide 29: AV Market Share
AV Market Share Japan Home Theater Systems: AV Amplifiers: Share of Share of Total Sales Value Total Sales Value（GfKJ） 20% （GfKJ） 40% 30% 10% 20% 39% 14% 13% 35% 33% 31% 30% 11% 10% 12% 10% 0% 0% ’02 ’03 ’04 ’05 ’06 ’02 ’03 ’04 ’05 ’06 U.S. Home Theater Systems: AV Receivers: Share of Share of Total
Slide 30: In this report, the figures forecast for the Company’s future performance have been calculated
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