Yamaha Corporation · TSE:7951
Yamaha — Q2 FY2010.3 Earnings Presentation
26 slides from Yamaha's earnings presentation, Nov 2, 2009
Slide 1: Analyst and Investor Briefing on the Second Quarter of FY2010.3
Analyst and Investor Briefing on the Second Quarter of the Fiscal Year Ending March 31, 2010 (FY2010.3) November 2, 2009 YAMAHA CORPORATION
Slide 2: Overview of Performance in the Second Quarter of FY2010.3
Overview of Performance in the Second Quarter of FY2010.3 2Q External Environment Ongoing global economic downturn, except in China - Continuing weakness in personal consumption, especially in the U.S., Europe and Japan - B2B business improving after a round of inventory adjustments at finished pr
Slide 3: Performance in the First Half of FY2010.3
Performance in the First Half of FY2010.3 ¾ Net sales and operating income were lower than last year’s 1H figures. Sales were lower than initial projections (made on April 30), but income was higher. (Billions of yen) Change from FY2010.3 FY2009.3 FY2010.3 Change FY2010.3 2Q (1H) (1H) same period (1
Slide 4: Performance by Business Segment in the First Half of FY2010.3
Performance by Business Segment in the First Half of FY2010.3 Net Sales Operating Income Others 250.5 (-18.4%) Lifestyle- 19.1 (-33.9) (Billions of yen) related 204.3 (-3.8%) 212.5 products 21.6 (-17.4) Electronic (-1.6) 12.8 13.3 13.1 (-26.5) 12.6 Others devices 30.3 (-19.0) 17.9 (-16.1) 21.3 0.4 A
Slide 5: 1H of FY2010.3 Operating Income Analysis
1H of FY2010.3 Operating Income Analysis Effects of vs. same period of restructuring ¥2.5 billion previous year Material Price cost increases reductions ¥3.9 billion Reduced ¥1.9 billion sales and production -¥17.1 billion Impact of exchange Reduction in Retirement actual SG&A rates benefit expenses
Slide 6: Business Environment in the Second Half and Full Year Performance Forecast
Business Environment in the Second Half of FY2010.3 and Full Year Performance Forecast Business Environment in the Second Half Delayed market recovery, year-end sales are likely to be lower than initially expected - Ongoing personal consumption slump in developed markets - Ongoing uncertainty over
Slide 7: Forecast for Performance in FY2010.3 (Full Year)
Forecast for Performance in FY2010.3 (Full Year) ¾Full year forecast remains unchanged from initial projections. (Billions of yen, %) FY2009.3 FY2010.3 Change from Increase / results projections decrease the previous year Net sales 459.3 439.0 -20.3 -4.4% Operating income 13.8 6.0 -7.8 -56.7% Ordina
Slide 8: FY2010.3 Full-Year Forecast for Performance by Business Segment
FY2010.3 Full-Year Forecast for Performance by Business Segment Net Sales Operating Income Figures in parentheses represent changes from the previous year (Billions of yen) 459.3 (-4.4%) 439.0 Others 30.8 (-12.4) Lifestyle- 27.0 13.8 related 43.1 (-0.3) products 43.0 22.0 (−) Electronic 22.0 devices
Slide 9: Musical Instruments
Musical Instruments 1H Overview Full Year Overview and • Sales and income declined year-on-year and against initial projections. 2H Priorities • Discounting the impact of exchange rates, actual sales declined by 7% (¥11.8 billion) year-on-year. Actual sales were also 7% (¥10.1 billion) • Steadily la
Slide 10: Musical Instruments (Sales by Region)
Musical Instruments (Sales by Region) 69.5 First Half (Billions of yen) 63.2 (-9%) Figures in parentheses represent actual 2Q 32.6 year-on-year change, discounting the 29.2 (-10%) impact of exchange rates 36.2 27.8 26.3 (-9%) 25.3 20.7 (±0 %) 21.9 (-11%) 19.1 1Q 36.9 34.0 (-8%) 15.8 14.8 (-4%) 7.6 (
Slide 11: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category (Billions of yen) In Japan sales slightly decreased year- Pianos on-year on value base as a temporary Electones Figures in parentheses last-minute demand driven by represent actual year-on-year 25.7 impending price rises. European sales change, discount
Slide 12: AV/IT
AV/IT 1H Overview Full Year Overview and 2H Priorities • Sales and income declined year-on-year. • Lower expenses and favorable exchange rates resulted in • Expand sales of AV products during period of high smaller losses than initially projected. demand in year-end shopping season. - Increase sales
Slide 13: Electronic Devices
Electronic Devices 1H Overview Full Year Overview and 2H Priorities • Sales declined sharply year-on-year. Although an operating loss was recorded, factors • Boost profitability by reducing fixed costs. including lower depreciation expenses due to fixed • Increase sales through launch of new digital
Slide 14: Lifestyle-Related Products
Lifestyle-Related Products 1H Overview Full Year Overview and 2H Priorities • Sales declined year-on-year, but income increased. • Although sales were much lower than initial projections, • Reinforce remodeling business (develop sales the decline in operating income was minimized by channels with st
Slide 15: Others
Others 1H Overview Full Year Overview and 2H Priorities • Sales and income fell year-on-year. • Sales in the recreation sector were lower than initial • Lower the break-even point for automobile interior projections due to reduced guest numbers, but sales of wood components by smoothly meeting new m
Slide 16: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure (Depreciation) Full Year 1H (Billions of yen) 22.6 3.1 18.3 (17.9) 3.2 1.8 1.0 (15.2) 9.0 8.7 1.5 1.9 Others 1.7 (8.8) 1.1 (7.0) Electronic devices 0.8 1.0 5.0 (6.7) 0.7 AV/IT 1.4 0.7 14.8 13.6 Musical 0.7 0.3 5.6 5.5 instruments 3.3
Slide 17: Inventories
Inventories ¾ Inventories at the end of the first half were ¥9.9 billion lower than the same period of the previous year (discounting the impact of newly consolidated subsidiaries and exchange rates, actual inventories were down by ¥3.6 billion year-on-year). ¾ Discounting the impact of exchange rat
Slide 18: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of Fiscal Year End As of End of 1H (2009 actual and 2010 projection) As of Sept. As of Sept 30, As of Mar. 31, As of Mar. 31, Change Change 30, 2008 2009 2009 2010 Cash and deposits 62.4 44.1 -18.3 41.4 38.8 -2.6 Notes and accounts 72.4 57.9 -14.5 50.5 66.0
Slide 19: Appendix
Appendix
Slide 20: First Half Non-Operating Income/Loss & Extraordinary Income/Loss
First Half Non-Operating Income/Loss & Extraordinary Income/Loss FY2010.3 (1H) FY2009.3 (1H) actual FY2010.3 (1H) actual initial projections (Billions of yen) Non-operating income/loss Net financial income 1.6 0.2 0.1 Other -1.6 -1.5 -1.6 Total 0 -1.3 -1.5 Extraordinary income/loss Income from (loss
Slide 21: Musical Instrument and Professional Audio Sales in the Japanese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Japanese Market (Billions of yen) 150 136.8 136.5 135.0 132.6 (98%) (100%) (99%) (98%) 100 69.5 69.0 68.7 69.5 Music schools, etc. (94%) (99%) (100%) (101%) 63.2 (91%) 50 51.7 52.1 50.6 (91%) (101%) (97%) 46.9 Yamaha musical (93
Slide 22: Musical Instrument and Professional Audio Sales in the U.S. Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the U.S. Market (Millions of US$) 600 555 544 (104%) (98%) 526 (97%) 500 436 (83%) 400 251 259 252 300 (103%) 238 (103%) (97%) (94%) 201 (84%) 200 100 0 FY06.3 FY07.3 FY08.3 FY09.3 FY10.3 FY06.3 FY07.3 FY08.3 FY09.3 First Half Full
Slide 23: Musical Instrument and Professional Audio Sales in the German Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the German Market (Millions of euro) 120 104 99 100 (104%) 95 (102%) (104%) (101%) 90 60 46 47 46 43 45 (95%) (106%) (95%) (103%) (97%) 30 0 FY06.3 FY07.3 FY08.3 FY09.3 FY10.3 FY06.3 FY07.3 FY08.3 FY09.3 First Half Full Year Figures
Slide 24: Musical Instrument and Professional Audio Sales in the Chinese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Chinese Market (Millions of yuan) 1,200 932 1,000 (115%) 808 (119%) 800 670 599 (113%) 534 (109%) 600 492 (109%) 417 (118%) 314 344 (121%) 400 (110%) (110%) 200 0 FY06.3 FY07.3 FY08.3 FY09.3 FY10.3 FY06.3 FY07.3 FY08.3 FY09.3 Fi
Slide 25: Sales in Emerging Markets
Sales in Emerging Markets (Billions of yen) Eastern Europe Russia Pianos (-25%) 14% 14% Digital musical (+57%) instruments 14% 2.8 Wind 2.1 0.8 5% instruments 0.6 53% FY2009.3 1H FY2010.3 1H FY2009.3 1H FY2010.3 1H String and percussion instruments 14% 11% Professional China audio equipment 13% (+9%
Slide 26: 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