Yamaha Corporation · TSE:7951
Yamaha — FY2015.3 Earnings Presentation
34 slides from Yamaha's earnings presentation, May 1, 2015
Slide 1: Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2015
Yamaha Corporation Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2015 (FY2015.3) May 1, 2015
Slide 2: Overview of Performance in FY2015.3
Overview of Performance in FY2015.3 Results Summary ■ Full year sales and income increased year-on-year. Musical instrument sales and income were up from the same period of the previous year, but income was lower than previous projections due to factors including rises in SG&A expenses. In the a
Slide 3: Performance in FY2015.3
Performance in FY2015.3 (Billions of yen) FY2015.3 Changes from the FY2014.3 FY2015.3 3 Changes from the previous year previous previous projections projection Net Sales 410.3 432.2 +5.3% 430.0 +0.5% Operating Income 26.0 30.1 30.0 (Operating Income Ratio) +15.9% +0.5% (6.3%) (7.0%) (7.0%) Ordinary
Slide 4: Performance by Business Segment in FY2015.3
Performance by Business Segment in FY2015.3 Net Sales Operating Income Year-on-year Change from the (Billions of yen) change previous projections 410.3 (5.3%) 432.2 (0.5%) 430.0 (2.3%) 24.2 (1.0%) 24.0 30.1 30.0 ■Others 23.7 ■Electronic 13.4 13.5 26.0 ■Others Devices 18.8 (-28.6%) (-0.5%) 0.4 0 ■Aud
Slide 5: FY2015.3 Operating Income Analysis
FY2015.3 Operating Income Analysis (Billions of yen) Versus previous year Improvement in manufacturing Increase in cost labor cost Increase in +¥4.0 at overseas Decline in sales and production 30.1 factories profitability of electronic Impact of -¥1.5 +¥1.0 devices exchange 26.0 rates -¥2.2 New cons
Slide 6: Musical Instruments 4Q/Full Year
Musical Instruments 4Q/Full Year (Billions of yen) 4Q ■Net Sales ■Operating Income 4Q Overview (Three Months) 69.3 • Sales rose year-on-year and exceeded previous 65.7 68.6 projections Music • Strong sales of digital musical instruments, wind schools, 21.3 20.4 19.6 instruments, and guitars etc. • O
Slide 7: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, 107.6 (98%) discounting the impact of 105.0 exchange rates 4Q 29.2 26.9 (92%) 3Q 25.6 26.1 (106%) (102%) 50.2 (113%) 49.4 (105%) 47.8 45.5 43.2 40.8 (108%) 2Q 13.6 (112%) 9.7 (106%) 11.8 2
Slide 8: Audio Equipment 4Q/Full Year
Audio Equipment 4Q/Full Year (Billions of yen) 4Q ■■■Net Sales 4Q Overview (Three Months) ■Operating Income • Sales and income both rose year-on-year and exceeded previous projections 30.3 29.0 ICT devices 26.1 3.6 • Compared to 3Q results, AV products showed signs 3.3 of recovery 2.3 PA 14.7 • Sale
Slide 9: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) Figures in parentheses show 30.1 (102%) actual year-on-year changes, 28.7(104%) 28.6 discounting the impact of exchange rates 24.6 24.7(101%) 25.1 6.5 (107%) 7.9 6.5 (118%) 5.7 20.6 (92%) 7.7 (115%) 19.6 4Q 8.8 9.2 (96%) 4.7 9.2 4.5 (94%) 8.5 (93%)
Slide 10: Sales by Major Product Category (Yamaha branded products)
Musical Instruments/Audio Equipment: Sales by Major Product Category (Yamaha branded products) (Billions of yen) Musical Instruments Audio Equipment Piano Digital Musical Instruments AV Products 85.7 (107%) 76.7 49.2 46.5 (90%) 48.1 50.1 (99%) 19.3 (102%) 10.3 12.8 18.1 10.4 (96%) 4Q 12.6 (96%) 26.2
Slide 11: Electronic Devices 4Q/Full Year
Electronic Devices 4Q/Full Year (Billions of yen) 4Q ■Net Sales ■Operating Income 4Q Overview (Three Months) • Sales declined year-on-year and were broadly in line with previous projections • Operating income improved compared to the previous projections due to initiatives including cost reduction a
Slide 12: Others 4Q/Full Year
Others 4Q/Full Year (Billions of yen) 4Q ■■■■Net Sales 4Q Overview (Three Months) ■Operating Income • Sales and income both rose year-on-year and 6.3 exceeded previous projections 5.9 6.5 • Strong sales of automobile interior wood FA equipment, 1.2 1.7 1.6 components etc. Resort 1.0 0.9 0.9 • A rebo
Slide 13: Forecast for Performance in FY2016.3
Forecast for Performance in FY2016.3 Assumptions ■ Musical instruments: steady growth in all markets. Sales in Chinese market will continue to grow. ■ Audio equipment: launch new products including digital mixers. Reinforce line-up of products for commercial installed sound markets and achieve conti
Slide 14: Forecast for Performance in FY2016.3 (Full Year)
Forecast for Performance in FY2016.3 (Full Year) (Billions of yen) Sales and income are forecast to increase year-on-year FY2016.3 Changes from the Year-on-year FY2015.3 Projections previous year percentage change Net Sales 432.2 435.0 +2.8 +0.7% Operating Income 30.1 34.0 (Operating Income Ratio)
Slide 15: Forecast for Performance by Business Segment in FY2016.3
Forecast for Performance by Business Segment in FY2016.3 Net Sales Year-on-year change Operating Income (Billions of yen) 432.2 435.0 (0.7%) (1.1%) 30.1 34.0 ■Others 24.2 24.5 0.5 ■Electronic ■Others ■Electronic 13.4 13.0 (-3.2%) 0.5 Devices Devices 0.4 ■Audio ■Audio 6.5 Equipment Equipment 112.8 11
Slide 16: FY2016.3 Sales and Operating Income Analysis
FY2016.3 Sales and Operating Income Analysis (Billions of yen) Sales Actual increase in Effect of sales 435.0 432.2 music +¥9.5 school Impact of transfer exchange rates -¥12.4 +¥5.7 FY2015.3 FY2016.3 projections Operating Income Improvement in manufacturing Increase in cost labor cost +¥3.8 at overs
Slide 17: Musical Instruments FY2016.3 Projections
Musical Instruments FY2016.3 Projections (Billions of yen) Net Sales 281.7 280.0 Music 65.2 schools, 78.2 Projections etc. • Sales are expected to decline due to changes in the status of music school operations • Steady growth anticipated in all musical Yamaha musical 203.5 214.8 instrument categori
Slide 18: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Sales Projections (including software products and music schools) (Billions of yen) Figures in red parentheses show actual year-on-year changes, discounting the impact of exchange rates 105.0 *Figures in blue 92.2(88%) parentheses show actual year-on-year changes
Slide 19: Audio Equipment FY2016.3 Projections
Audio Equipment FY2016.3 Projections (Billions of yen) Net Sales 112.8 117.5 ICT devices 13.6 15.1 Projections PA 47.4 51.9 • Sales and income are projected to rise year- equipment on-year • Aim to drive rebound in AV product sales with launch of new products AV products, • Pace of growth in profess
Slide 20: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) 32.2 (102%) Figures in parentheses show actual year-on-year changes, 28.7 30.1 30.0 discounting the impact of exchange rates (107%) 7.4 (93%) 24.7 23.7(96%) 6.5 6.7 (106%) 7.9 21.0 (107%) 4Q 19.6 8.8 8.2 (93%) 9.9 (111%) 9.2 9.9 (118%) 4.8 (106%) 8.
Slide 21: Sales by Major Product Category (Yamaha branded products)
Musical Instruments/Audio Equipment: Sales by Major Product Category (Yamaha branded products) (Billions of yen) Musical Instruments Audio Equipment Piano (103%) Digital Musical Instruments AV Products 50.1 53.0 85.7 88.7 (102%) (95%) 46.5 47.5 (101%) 12.1 19.6 (102%) 12.8 19.3 10.4 10.2 (99%) 4Q (1
Slide 22: Electronic Devices FY2016.3 Projections
Electronic Devices FY2016.3 Projections (Billions of yen) Net Sales Projections • Sales are expected to decline year-on-year • A return to profit is anticipated, largely due to fixed cost reductions achieved in conjunction with structural reforms 13.4 13.0 • Focus on sales of new amusement equipment
Slide 23: Others FY2016.3 Projections
Others FY2016.3 Projections (Billions of yen) Net Sales 24.2 24.5 Projections FA equipment, 6.4 7.1 • Sales and income are expected to be on par etc. with the previous year Resort 4.7 5.1 • Higher sales of factory automation equipment is anticipated mainly on smartphone-related Golf products 5.5 5.6
Slide 24: Inventories
Inventories Inventories at the end of fiscal 2015 amounted to ¥87.8 billion (previous forecast was ¥87.9 billion) Inventories at the end of fiscal 2016 are forecast to be ¥87.1 billion (Billions of yen) 87.8 87.1 82.7 Goods in process/ 27.7 25.2 materials 25.3 Other 4.7 4.1 products 4.2 Audio 16.7
Slide 25: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) ■Others ■Electronic Devices 13.8 13.8 (13.7) (12.8) (12.6) ■Audio Equipment ■Musical Instruments 10.8 0.8 0.4 0.7 0.6 1.2 2.8 0.2 4.7 2.8 9.5 8.0 6.6 FY2014.3 FY2015.3 FY2016.3 projections R&D Expenses
Slide 26: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of March 31, As of March 31, 2014 As of March 31, 2015 2016 projections Cash and deposits 60.6 79.3 94.3 Notes and accounts receivable 56.7 60.3 56.5 Inventories 82.7 87.8 87.1 Other current assets 14.5 20.2 20.6 Fixed assets 224.4 282.4 279.0 Total assets
Slide 27: Key Financial Figures
Key Financial Figures (Billions of yen) FY2011.3 FY2012.3 FY2013.3 FY2014.3 FY2015.3 FY2016.3 FY2016.3 projections Mid-term target Net Sales 373.9 356.6 366.9 410.3 432.2 435.0 430.0 Operating 13.2 8.1 9.2 26.0 30.1 34.0 30.0 Income (Operating Income Ratio) (3.5%) (2.3%) (2.5%) (6.3%) (7.0%) (7.8%)
Slide 28: Return to Shareholders
Return to Shareholders Annual cash dividends for FY2015.3 have been revised upward to ¥36, an increase of ¥6 from the previous announcement Annual dividends for FY2016.3 is forecast to be ¥36 47.0 Payout Ratio (%) 38.6 28.0 27.3 22.8 36 36 27 Regular Dividends (yen) 10 10 10 FY2011.3 FY2012.3 FY20
Slide 29: Appendix
Appendix
Slide 30: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2014.3 full year FY2015.3 full year FY2016.3 full year (Billions of yen) projections Non-Operating Income/Loss Net financial income 2.6 3.8 2.1 Other -2.5 -2.7 -3.1 Total 0.1 1.1 -1.0 -Gain on sales of investment securities +1.0 Extra
Slide 31: Quarterly Sales and Income
Quarterly Sales and Income (Billions of yen) 116.9 118.0 111.0 108.9 110.0 106.8 104.0 100.7 101.6 103.0 97.0 99.6 6.2 7.5 9.1 3.2 8.8 10.6 4.4 7.0 9.5 13.0 6.2 4.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2014.3 FY2015.3 FY2016.3 (projections) Net Sales ¥410.3 Net Sales ¥432.2 Net Sales ¥435.0 Operati
Slide 32: Key Products in FY2016.3
Key Products in FY2016.3 An entirely new and unprecedented hyprid piano TransAcoustic Piano TM Soundboard Transducers Transducers inside the TransAcoustic™ Piano ◇Play piano at any volume effectively transmit vibrations to the acoustic piano soundboard, thereby allowing digital sound to be ◇Enjoy di
Slide 33: Key Products in FY2016.3
Key Products in FY2016.3 A flagship digital mixing system for large concert halls Digital Mixing System RIVAGE PM10 ◇A thoroughly refined flagship of sound quality, operation, functionality, reliability and expandability ◇A new PM will bring true innovation to the evolving live sound scene (schedule
Slide 34: Forward-looking statements caution
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