Yamaha Corporation · TSE:7951
Yamaha — Q1 FY2005 Earnings Presentation
28 slides from Yamaha's earnings presentation, Aug 2, 2004
Slide 1: Analyst and Investor Briefing on the First Quarter of Fiscal Year Ending March 2005
Analyst and Investor Briefing on the First Quarter of on the Fiscal Year Ending March 31, 2005 (April 1, 2004, to June 30, 2004) August 2, 2004 YAMAHA CORPORATION
Slide 2: Overview of Performance in the First Quarter
Overview of Performance in the First Quarter ¾Fiscal 2005 is the first year of Yamaha’s new medium-term management plan. In 1Q fiscal 2005, although net sales were slightly lower than projected, operating income was higher than expected, and the Company made a good start overall. T Net sales, while
Slide 3: Performance in the First Quarter
Performance in the First Quarter ¾Sales and income increased compared with 1Q fiscal 2004 ¾Lower sales and higher income than initially projected on May 7, 2004 (Billions of Yen) Change from Change from FY2004 FY2005 same period Initial Initial 1Q 1Q of Projections projections previous year Net Sale
Slide 4: Net Sales by Business Segment in the First Quarter
Net Sales by Business Segment in the First Quarter Billions of Yen 10.1 10.0 Recreation & 10.1 10.1 Others 11.1 21.2 21.2 20.2 21.2 Electronic Equipment and 16.9 Metal Products 10.4 11.5 10.4 10.4 Lifestyle-Related 11.3 Products 17.7 18.1 17.7 17.5 AV/IT 14.2 72.6 73.6 75.2 74.9 73.1 Musical Instrum
Slide 5: Breakdown of Operating Income/Loss in the First Quarter
Breakdown of Operating Income/Loss in the First Quarter Billions of Yen Decrease inIncrease in Manufactur- SG&A Increase ing Costs Expenses in Gross Profit Gain on Foreign Exchange FY2004 1Q FY2005 1Q Operating Income Operating Income
Slide 6: Operating Income by Business Segment in the First Quarter
Operating Income by Business Segment in the First Quarter Billions of Yen FY2004 FY2005 Increase/ Currency Actual Initial 1Q) (Decrease) (1Q Exchange Increase/ Impact (Decrease) (May 7) Projections Musical Instruments 5.5 6.6 +1.1 +0.2 + 0.9 5.1 AV/IT 0.2 1.8 +1.6 +0.5 +1.1 0.4 Lifestyle-Related Pro
Slide 7: Forecasts of Business Performance in FY2005 (Full Year)
Forecasts of Business Performance in FY2005 (Full Year) ¾Consistent with the initial forecast, 2Q-4Q exchange rates are assumed to be $US = ¥110 and Euro = ¥127 Billions of Yen Interim Period Full Year FY2005 FY2005 FY2004 FY2005 FY2005 FY2004 Initial (Projections) (Previous Year) (Initial (Projecti
Slide 8: FY2005 (Full Year) Breakdown of Operating Income
FY2005 (Full Year) Breakdown of Operating Income Billions of Yen Decrease in Decrease Manufactur- in Gross ing Costs Profit Increase in 0.6 (0.3) (1.3) SG&A Expenses Loss on Foreign (5.1) Exchange 45.1 39.0 FY2005 FY2004 Operating Income Operating Income (Projection)
Slide 9: Musical Instruments
Musical Instruments 1Q Overview FY2005 Projections and Priority Policies • Increased sales and income compared with 1Q fiscal 2004 • In fiscal 2005, sales of Electone™ and electronic • Sales increased 3.6% in real terms compared with 1Q fiscal instruments are expected to increase. Revised 2004 (Sale
Slide 10: AV/IT
AV/IT 1Q Overview FY2005 Projections and Priority Policies • In fiscal 2005, sales of ¥86.0 billion are projected for • In real terms, 1Q fiscal 2005 sales were consistent with fiscal 2005 (no change from initial projections) the initial projections and 27.5% higher than in 1Q fiscal 2004. 1Q fiscal
Slide 11: Electronic Equipment and Metal Products
Electronic Equipment and Metal Products 1Q Overview FY2005 Projections • As expected, in 1Q fiscal 2005, sales of • The current outlook for sales for fiscal 2005 semiconductors and electronic metals were is consistent with the initial projection strong • Inventory adjustments of LSI sound chips for
Slide 12: Lifestyle-Related Products
Lifestyle-Related Products 1Q Overview FY2005 Projections and Priority Policies • In 1Q fiscal 2005, intensified competition • In fiscal 2005, sales are expected to be ¥44.0 caused sales to fall 7.6% compared with 1Q billion, ¥2.0 billion less than originally projected. fiscal 2004 Our goal is to re
Slide 13: Recreation
Recreation 1Q Overview FY2005 Projections and Priority Policies • Sales decreased due to a decline in the • Sales and income targets have been revised number of visitors to the “Kiroro” Resort downward • Sales from other facilities were in line with • Aim for improved profitability through initial p
Slide 14: Others
Others 1Q Overview FY2005 Projections and Priority Policies • In 1Q fiscal 2005, sales of golf products and • Fiscal 2005 sales projection is ¥23.0 billion (no automobile interior wood components were change from initial projection) even with or slightly above 1Q fiscal 2004 • Major issues are impro
Slide 15: Inventories
Inventories ¾ At the end of 1Q fiscal 2005, inventories increased compared with the initial projection. However, our goal is to shrink inventories by the end of fiscal 2005. Billions of Yen At the end of 1Q At the end of the Fiscal Year 88.5 79.3 76.2 Goods in 27.6 72.1 70.4 68.1 Process/ Materials
Slide 16: Interest-Bearing Liabilities (Actual Balance)
Interest-Bearing Liabilities (Actual Balance) ¾ By the end of fiscal 2005, the actual balance of short- and long-term borrowings is expected to be ¥2.3 billion. 41.5 Billions of Yen Free Cash Flows 23.8 11.4 (2.0) (2.4) FY2003 FY2004 FY2004 FY2005 FY2005 (1Q-4Q) (1Q) (2Q-4Q) (1Q) (2Q-4Q) Interest-Be
Slide 17: Balance Sheet Summary
Balance Sheet Summary ¾ In the 1Q of 2005, shareholder’s equity and total assets decreased due to the implementation of impairment accounting. (Billions of Yen) As of June 30, As of March 31, As of June 30, As of March 31, 2003 2004 2004 2005 Cash and Bank Deposits 33.2 32.1 30.5 45.2 Accounts and N
Slide 18: Appendix
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Slide 19: YAMAHA Musical Instrument Sales in the Japanese Market
YAMAHA Musical Instrument Sales in the Japanese Market In the 1Q of fiscal 2005, although piano sales declined due to slack demand, overall sales increased compared to 1Q fiscal 2004 thanks to the introduction of the “STAGEA™” Electone™. Electone™ sales are expected to increase through the end of fi
Slide 20: YAMAHA Musical Instrument Sales in the U.S. Market
YAMAHA Musical Instrument Sales in the U.S. Market In 1Q fiscal 2005, piano and electronic piano sales fell well short of expectations, reflecting inventory adjustments carried out by musical instrument retailers. Starting in 2Q fiscal 2005, sales are expected to recover due to the introduction of n
Slide 21: YAMAHA Musical Instrument Sales in the German Market
YAMAHA Musical Instrument Sales in the German Market Consumption remained stagnant despite a partial economic recovery. Despite large shipments to dealers, retail sales were weak. Strong sales of new portable keyboards are expected. 250 Wholesale Amount Millions of EURO 200 194 188 (106%) 200 190 (1
Slide 22: YAMAHA Musical Instrument Sales in the U.K. Market
YAMAHA Musical Instrument Sales in the U.K. Market Favorable piano sales were recorded thanks to price reductions and the launch of a program to sell wind instruments at schools. Retail sales of electronic instruments were sluggish but are expected to recover due to a stable supply of new products.
Slide 23: Scale of Global Market for Home Theater Products
Scale of Global Market for Home Theater Products (Home theater systems + AV amplifiers/receivers) (Million Units) <Home theater systems > <AV amplifiers/receivers> 11.15 Others 10.09 Japan 8.36 Europe 5.70 4.39 3.43 3.51 3.25 3.05 2.97 Others North Japan America Europe North America 2001 2002 2003 2
Slide 24: YAMAHA's AV Amplifier Market Share
YAMAHA’s AV Amplifier Market Share Japan Home theater systems: AV amplifiers Share of Total Sales Amount GfKJ Share of Total Sales Amount GfKJ 20% 40% 30% 39 36 10% 20% 31 33 14 12 11 10 10% 0% 0% 2001 2002 2003 2004 2001 2002 2003 2004 (Jan-Jun) (Jan-Jun) AV receivers U.S. Share of Total Sales Amou
Slide 25: Trends in the Global Market for Mobile Phones
Trends in the Global Market for Mobile Phones z Unit sales of mobile phones will continue to increase (520 million units in 2003 600 million (Million Units) units in 2004) 600.0 z In the developed European and U.S. markets, demand for mobile-phone replacements with 500.0 colored displays, camera and
Slide 26: Non-Operating Income/Extraordinary Income (Loss) in the First Quarter
Non-Operating Income /Extraordinary Income (Loss) in the First Quarter FY2005 1Q FY2004 1Q FY2005 1Q (Initial Projections) (Billions of Yen) Non-Operating Income Equity method income 2.4 2.8 2.1 Net financial income (loss) (0.1) 0.2 0.4 Other (0.7) (0.8) (0.8) Total + 1.6 + 2.2 +1.7 Extraordinary In
Slide 27: FY2005 Non-Operating Income/Extraordinary Income (Loss)
FY2005 Non-Operating Income /Extraordinary Income (Loss) FY2005 FY2005 FY2004 (Projections) (Initial Projections) (Billions of Yen) Non-Operating Income Equity method income 10.4 7.0 7.0 Net financial income(loss) (1.0) (0.4) (0.6) Other (3.5) (4.6) (3.9) Total + 5.9 + 2.0 (2.5) •Social insurance •G
Slide 28: 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, our actual performance may differ greatly from our