Yamaha Corporation · TSE:7951
Yamaha — Q1 FY2018.3 Earnings Presentation
26 slides from Yamaha's earnings presentation, Aug 2, 2017
Slide 1: Analyst and Investor Briefing on the First Quarter of FY2018.3
Yamaha Corporation Analyst and Investor Briefing on the First Quarter of Fiscal Year Ending March 31, 2018 (FY2018.3) August 2, 2017
Slide 2: Overview of Performance in the First Quarter of FY2018.3
Overview of Performance in the First Quarter (April-June) of FY2018.3 Results Summary Sales increased ¥2.8 billion year-on-year (including +¥0.9 billion due to the impact of exchange rates), to reach ¥101.2 billion. Operating income declined to ¥11.6 billion, down ¥0.2 billion (including -¥1.8 bil
Slide 3: Performance in the First Quarter of FY2018.3
Performance in the First Quarter of FY2018.3 (billions of yen) FY2017.3 FY2018.3 Changes from FY2018.3 Changes from the previous 1Q previous the previous 1Q results 1Q results year projections** projection Net Sales 98.4 101.2 +2.9% 102.0 -0.7% Operating Income 11.8 11.6 12.0 (Operating Income Ratio
Slide 4: Performance by Business Segment in the First Quarter of FY2018.3
Performance by Business Segment in the First Quarter of FY2018.3 Net Sales Operating Income Year-on-year (billions of yen) change 11.8 12.0 98.4 (+2.9%) 101.2 102.0 11.6 0.4 1.4 ■Others 8.2 (+11.7%) 9.2 2.0 26.5 1.9 ■Audio 25.5 (+3.7%) Equipment 9.4 ■Musical 64.7 65.6 8.3 Instruments (+1.4%) FY2017.
Slide 5: FY2018.3 1Q Operating Income Analysis
FY2018.3 1Q Operating Income Analysis Actual Versus same period of the previous year increase in (billions of yen) sales and Impact of production, Cost exchange Increase in reduction increase in rates labor cost Actual measures gross margins -1.8 at oversea increase etc. +0.6 factories in SG&A +1.5
Slide 6: Musical Instruments: 1Q Overview
Musical Instruments: 1Q Overview (billions of yen) 1Q 1Q Overview ■Net Sales ■Operating Income Sales increased year-on-year, but income declined Piano sales remained brisk in the Chinese Market, partly due to rising unit prices, and were strong overall The timing for the launch of new digital
Slide 7: Audio Equipment: 1Q Overview
Audio Equipment: 1Q Overview (billions of yen) 1Q ■■■ ■Operating Income 1Q Overview Net Sales Sales rose year-on-year, but income was flat Building on double-digit growth in actual 1Q sales the previous year, AV products and professional audio 25.5 26.5 equipment continued to grow Sales of pro
Slide 8: Others: 1Q Overview
Others: 1Q Overview 1Q (billions of yen) ■■ ■Operating Net Sales Income 1Q Overview Sales and income were both up from the same period of the previous year Sales of electronic devices were robust, especially 9.2 sound generators for amusement equipment, and 8.2 automobile interior wood component
Slide 9: Outlook for 2-4 Quarters and Full Year of FY2018.3
Outlook for 2-4 Quarters and Full Year of FY2018.3 Outlook for 2-4Q Musical instruments: initial targets will be met by focusing on full-scale launch of new digital music instrument products Audio equipment: 1Q results are largely in line with targets, and steady sales are projected, especially
Slide 10: Forecast for Performance in FY2018.3 (Full Year)
Forecast for Performance in FY2018.3 (Full Year) (billions of yen) Changes from FY2018.3 Changes from FY2017.3 FY2018.3 same period of previous the previous results projections the previous projections** projection year Net Sales 408.2 432.0 +5.8% 427.0 +1.2% Operating Income 44.3 50.0 48.5 (Operati
Slide 11: Forecast for Performance by Business Segment in FY2018.3 (Full Year)
Forecast for Performance by Business Segment in FY2018.3 (Full Year) (billions of yen) Net Sales Changes from the previous Operating Income Changes from previous year projection (+5.8%) 432.0 (+1.2%) 427.0 408.2 36.0 35.0 50.0 35.1 (+2.6%) (+2.9%) 48.5 ■Others 44.3 2.5 2.0 (+7.8%) 124.5 (+1.2%) 123.
Slide 12: FY2018.3 Full Year Operating Income Analysis
FY2018.3 Full Year Operating Income Analysis Actual Versus previous year increase in Cost (billions of yen) sales and reduction Increase in measures labor cost production, at oversea Increase increase in +3.5 factories Impact of gross margins, in SG&A exchange etc. -1.3 -6.0 rates +7.9 +1.6 50.0 44.
Slide 13: Musical Instruments: FY2018.3 Full Year Projections
Musical Instruments: FY2018.3 Full Year Projections Full Year (billions of yen) ■Net Sales ■Operating Income 271.5 257.7 269.0 Projections Sales and income are expected to increase year-on- 54.1 54.0 year and exceed previous projections Music 54.4 Changes in exchange rate assumptions are the sch
Slide 14: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (including software products and music schools) All regions: Net Sales (Full year) ¥271.5 (104%) (billions of yen) 79.8 79.0 (99%) *Figures in red parentheses show actual year-on-year changes, discounting the impact of exchange rates 4Q 20.0 20.5 (102%) 52.7 55.1
Slide 15: Audio Equipment: FY2018.3 Full Year Projections
Audio Equipment: FY2018.3 Full Year Projections Full Year (billions of yen) ■■■ ■Operating Income Net Sales Projections 115.5 124.5 123.0 Sales and income are expected to increase 15.5 15.1 year-on-year and exceed previous projections ICT devices 14.4 • AV products are expected to maintain the str
Slide 16: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (billions of yen) All regions: Net Sales (Full year) ¥124.5 (106%) Figures in red parentheses show actual year- 32.0 32.0 (106%) on-year changes, discounting the impact of 29.7 (106%) exchange rates 29.6 (104%) 28.9 28.4 7.2 (105%) 7.0 (106%) 7.1 6.4 9.5 10.1 (94%) 4
Slide 17: Sales by Major Product Category
Musical Instruments/Audio Equipment: Sales by Major Product Category (billions of yen) Musical Instruments Audio Equipment Pianos Digital Musical Instruments AV Products 48.5 51.8 (105%) 88.9 (105%) 47.5 (103%) 83.0 44.9 4Q 11.6 12.1 (106%) 19.8 (108%) 9.5 (95%) 18.5 10.1 3Q 13.3 (104%) 27.5 (109%)
Slide 18: Others: FY2018.3 Full Year Projections
Others: FY2018.3 Full Year Projections Full Year (billions of yen) ■■ ■Operating Income Net Sales 35.1 36.0 35.0 Projections Sales and income are expected to increase year-on- 10.2 9.4 year and exceed previous projections 11.6 Strong sales of electronic devices are anticipated over Others the fu
Slide 19: Inventories
Inventories Inventories at the end of 1Q were ¥100.1 billion. Taking into account exchange rate impact of +¥6.3 billion, this was around the same level as at fiscal year-end. Anticipating steady 2-4Q sales, inventories at the end of fiscal 2018 are forecast to be ¥92.1 billion (billions of yen)
Slide 20: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/ R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) 25.9 28.4 ■Others 2.1 ■Audio Equipment 2.1 ■Musical Instruments 6.7 17.5 5.3 3.6 2.4 3.5 4.0 0.3 0.3 18.5 19.6 1.1 1.0 11.1 10.8 11.1 2.8 11.2 2.2 2.2 2.7 FY2017.3 1Q FY2018.3 1Q FY2017.3 FY2018.3 FY2
Slide 21: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 1Q As of end of fiscal year end As of June As of June As of Mar. 31, As of Mar. 31, 2018 Change projections Change 30, 2016 30, 2017 2017 Cash and deposits 84.7 102.7 +18.0 105.9 118.6 +12.7 Notes and accounts receivable 45.0 51.0 +6.0 49.8 52.0 +
Slide 22: Appendix
@) YAMAHA Appendix
Slide 23: First Quarter Non-Operating Income/Loss & Extraordinary Income/Loss
First Quarter Non-Operating Income/Loss & Extraordinary Income/Loss (Billions of yen) FY2017.3 1Q FY2018.3 1Q FY2018.3 1Q previous projections Non-Operating Income/Loss Net financial income 0.4 0.4 0.2 Other -0.7 -0.8 -0.7 Total -0.3 -0.4 -0.5 Extraordinary Income/Loss Income from (loss on) 0.2 0.0
Slide 24: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss (Billions of yen) FY2017.3 full year FY2018.3 full year FY2018.3 full year projections previous projections Non-Operating Income/Loss Net financial income 3.5 3.3 3.1 Other -2.9 -3.3 -3.1 Total 0.6 0 0 Extraordinary Income/Loss Income f
Slide 25: Quarterly Sales and Income
Quarterly Sales and Income 118.5 (billions of yen) 116.5 109.2 109.8 102.5 107.0 100.8 99.9 101.2 102.0 98.4 101.5 11.8 12.9 14.9 16.0 12.7 11.6 14.0 15.5 6.9 7.5 12.0 7.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2017.3 FY2018.3 FY2018.3 (projections) Net Sales (Full Year) 408.2 Net Sales (Full Year) 4
Slide 26: 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 pre