Yamaha Corporation · TSE:7951
Yamaha — FY2010.3 Earnings Presentation
43 slides from Yamaha's earnings presentation, Apr 30, 2010
Slide 1: Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2010
Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2010 (FY2010.3) April 30, 2010 YAMAHA CORPORATION
Slide 2: Overview of Performance in FY2010.3
Overview of Performance in FY2010.3 External Environment ■ Ongoing global economic downturn ■ Continuing strong yen ■ B2B business recovering Results Summary ■ Sales and operating income both declined year-on-year. A net loss was recorded for the second consecutive year, due to factors including the
Slide 3: Performance in FY2010.3
Performance in FY2010.3 Sales and operating income both declined year-on-year, but were higher than previous projections (Billions of yen) FY2009.3 FY2010.3 Previous Increase/ decrease Increase/ projections against previous results results decrease (Mar. 19, 2010) projections Net sales 459.3 414.8
Slide 4: Performance by Business Segment in FY2010.3
Performance by Business Segment in FY2010.3 Net Sales Operating Income 459.3 (Billions of yen) Others (-9.7%) 414.8 (+0.4%) 413.0 Lifestyle- 30.9 related products 43.1 (-10.9) 27.5 (-0.1) 27.5 Electronic 22.0 (-14.3) 36.9 (-0.2) 37.0 13.8 devices AV/IT 56.7 (-10.1) 19.7 (-1.3) 20.0 (-4.1) 54.4 (+1.7
Slide 5: FY2010.3 Operating Income Analysis
FY2010.3 Operating Income Analysis Effects of restructuring ¥4.8 billion Versus previous year Price Material cost increases Reduced reductions ¥7.9 billion sales and ¥2.8 billion production -¥20.0 billion Impact of exchange Reduction in rates Retirement actual SG&A ¥13.8 benefit expenses -¥12.7 bill
Slide 6: Musical Instruments
Musical Instruments 4Q Overview FY2010.3 Overview ・Sales and income declined year-on-year. •Sales and income were higher than in the fourth quarter of the ・Despite the effects of price increases, discounting the impact of previous year. Sales were higher than previous projections, but exchange rates
Slide 7: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) Figures in parentheses show North America Europe actual year-on-year changes, discounting the impact of exchange rates 67.1 48.5 42.1 (-6%) 4Q 9.9 53.0 (-12%) Japan 4Q 10.1 9.5 (-5%) 3Q 21.0 9.8 (-9%) 132.6 3Q 10.6 125.4 (-5%) 10.7 (+7%) 16.9 (-
Slide 8: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Musical Instrument Sales by Region Japan Sales of mid-range and high-end large keyboard instruments are slow as consumers continue to seek low-priced products. Although new silentTM models Yamaha Musical have helped to keep upright piano sales robust, grand piano
Slide 9: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category Japan: While demand for upright pianos (Billions of yen) Pianos grew as consumers rushed to beat price Electone 44.9 rises in the first half, grand pianos lagged. Figures in parentheses 40.3 (-4%) Europe: High-end upright and grand show actual year-on-y
Slide 10: AV/IT
AV/IT 4Q Overview FY2010.3 Overview ・Operating income increased year-on-year due to in-house ・Sales and income were up year-on-year and exceeded previous production of components, lower materials costs and reduction of projections. expenses. ・Actual sales excluding the effect of exchange rates incre
Slide 11: Electronic Devices
Electronic Devices 4Q Overview FY2010.3 Overview ・Sales and income increased year-on-year, but were ・Sales declined year-on-year, but income lower than previous projections. Product increased. development delays were the main factor behind ・Sales of sound generators for mobile phones, a sales target
Slide 12: Lifestyle-Related Products
Lifestyle-Related Products 4Q Overview FY2010.3 Overview ・Sales increased slightly from the same period of the ・Sales declined year-on-year, but income increased. previous year. ・Although sales fell sharply from the previous year, a ・Operating income returned to positive territory, thanks lower brea
Slide 13: Others
Others 4Q Overview FY2010.3 Overview ・Operating income improved sharply year-on-year and moved into ・Sales and income increased year-on-year. positive figures over the full year. ・Sales were broadly in line with previous projections, but ・Automobile interior wood component sales and income increased
Slide 14: FY2011.3 Business Environment and Performance Forecast
FY2011.3 Business Environment and Performance Forecast Business environment ■ Although economic recovery is projected in China and other emerging markets, uncertainty continues in North America, Europe and Japan ■ Yen will remain strong ■ Upward trend in material costs Performance forecast ■ Compare
Slide 15: Forecast of Business Performance in FY2011.3
Forecast of Business Performance in FY2011.3 (Billions of yen) FY2010.3 FY2011.3 Increase/ Year-on-year percentage results forecasts decrease change Net sales 414.8 385.0 -29.8 -7.2% Operating income 6.8 10.0 +3.2 +46.5% (operating income ratio) (1.6%) (2.6%) Ordinary income 4.9 7.5 (ordinary income
Slide 16: FY2011.3 Sales and Operating Income Analysis (Projection)
FY2011.3 Sales and Operating Income Analysis (Projection) Net sales Impact of exchange Effect of rates handover of lifestyle- Effect of -¥6.2 billion related withdrawal products from ¥414.8 business magnesium billion -¥36.9 molded parts Actual business increase in billion sales -¥4.7 billion ¥385.0
Slide 17: Forecast of Performance by Business Segment in FY2011.3
Forecast of Performance by Business Segment in FY2011.3 Figures in Net Sales parentheses show Operating Income change from the previous year (Billions of yen) 414.8 (-7.2%) 385.0 Others Lifestyle- 27.5 related (-12.6) 24.0 products 36.9 Electronic 19.7 (+16.5) 23.0 devices AV/IT 54.4 (+4.8) 57.0 6.8
Slide 18: Musical Instruments
Musical Instruments Market Environment Priority measures •Delay in global economic recovery •Expand sales in emerging markets including China •Polarization of consumption into performance- •Form optimum production structure to match oriented spending and price-oriented spending market trends •Ongo
Slide 19: Musical Instruments: Sales by Region (FY2011.3 Projections)
Musical Instruments: Sales by Region (FY2011.3 Projections) Figures in parentheses show actual year-on- year changes, discounting the impact of exchange rates 125.4 124.4 (-1%) (Billions of yen) 2H 62.2 61.3 (-1%) 53.0 54.2 (＋6%) 43.8 (＋8%) 42.1 42.6 (＋5%) 41.1 26.7 28.6 (＋9%) 1H 63.2 63.1 (±0%) 20.
Slide 20: Musical Instruments: Sales by Product Category (FY2011.3 Projections)
Musical Instruments: Sales by Product Category (FY2011.3 Projections) (Billions of yen) Pianos Electone Figures in parentheses show actual year-on-year changes, discounting the 40.3 40.3 (+2%) impact of exchange rates 4.9 4.1 (-16%) 2H 19.3 20.1 (+5%) 2.2 1.9 (-14%) 1H 21.0 20.2 (-1%) 2.7 2.2 (-18%)
Slide 21: Emerging Market Sales
Emerging Market Sales Pianos Eastern Europe Russia Digital musical 17% 16% instruments (+9%) (+23%) (+19%) 6.1 (-26%) Wind instruments 4.4 4.7 2.0 1.9 2.2 15% 2H 3.3 String & percussion 2.3 2.5 1.1 1.3 45% 1.4 7% instruments 1H 2.8 2.1 2.2 0.8 0.9 0.6 PA equipment FY2009.3 FY2010.3 FY2011.3 FY2009.3
Slide 22: AV/IT
AV/IT Market Environment Priority measures •Build AV business by launching products targeted •Demand for flat-panel TVs is gradually increasing at demand trends •Growing differentiation of functions and •Expand sales of mid- and high-level AV specification standards such as HDMI and 3D receivers •
Slide 23: Electronic Devices
Electronic Devices Market Environment Priority measures •Falling mobile phone sales in Japan. Shift to •Enhance profitability by reducing fixed costs sound generation software for mobile •Maintain sound generators for mobile phone phones in overseas markets business by offering added value •Althou
Slide 24: Others
Others Market Environment Priority measures •Model change cycle for luxury vehicles has run its •Assure profitability of automobile interior course wood components business by further lowering break-even point •Signs of recovery in corporate capital expenditure ・Expand share in golf products busin
Slide 25: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure (Depreciation) (Billions of yen) Others 24.4 22.6 Electronic 3.5 (20.3) (17.9) devices 3.1 2.4 2.0 3.2 14.5 (14.1) 13.9 (14.2) AV/IT 1.5 0.8 0.7 0.6 1.3 1.3 2.1 Musical 16.5 instruments 14.8 11.7 9.9 FY2008.3 FY2009.3 FY2010.3 FY2011.
Slide 26: Inventories
Inventories (Billions of yen) 80.7 76.3 69.5 24.1 65.4 Goods in 25.5 process/materials 21.3 18.6 4.1 3.1 7.5 Other products 2.9 2.5 9.1 6.5 7.1 AV/IT 45.0 Musical 38.6 38.8 37.2 instruments FY2008.3 FY2009.3 FY2010.3 FY2011.3 (projection) Total inventories as of March 31, 2010 were ¥11.2 billion lo
Slide 27: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of March 31, As of March 31, As of March 31, As of March 31, 2008 2009 2010 2011 (projections) Cash and bank deposits 104.0 41.4 59.4 53.9 Notes & accounts receivable 65.1 50.5 47.4 51.6 Inventories 76.3 80.7 69.5 65.4 Other current assets 30.3 29.5 17.0 17
Slide 28: Return to Shareholders
Return to Shareholders An annual dividend of ¥10 is planned for FY2011.3 (consolidated payout ratio of 36%) 50 42.5 35.9 Consolidated 26.1 payout ratio 21.1 Per-share 16.6 14.7 dividend 7.1 11.6 27.5 (Yen) 22.5 20 20 Special 15 dividend 10 10 Regular dividend FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2
Slide 29: Appendix
Appendix
Slide 30: Performance in the Fourth Quarter of FY2010.3
Performance in the Fourth Quarter of FY2010.3 Fourth quarter sales and income were higher than previous projections (Billions of yen) Increase/ Previous FY2009.3 FY2010.3 4Q Increase/ projections decrease 4Q results results decrease against (Mar. 19, 2010) projections Net sales 89.9 97.9 +9.0% 96.1
Slide 31: Performance by Business Segment in the Fourth Quarter of FY2010.3
Performance by Business Segment in the Fourth Quarter of FY2010.3 Net Sales Figures in parentheses Operating Income indicate change from the previous year or previous projections (+9.0%) 97.9 (+1.9%) 96.1 (Billions of yen) 89.9 6.5 Others (+44.5) (+0.0) 6.5 4.5 8.9 9.0 Lifestyle- (+0.8) (-0.6) relat
Slide 32: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2009.3 results FY2010.3 results FY2011.3 projections Non-operating income (loss) •Yamaha Motor Co., Ltd. dividend 1.1 (Billions of yen) Net financial income 2.0 0.3 0 Other -3.8 -2.2 -2.5 Total -1.8 -1.9 -2.5 •Impairment loss -15.3 •H
Slide 33: Musical Instrument Sales in the Japanese Market
Musical Instrument Sales in the Japanese Market Figures in parentheses Market Wholesale Amount indicate year-on- Yamaha’s Wholesale Amount year percentage (Billions of yen) changes 120 (Billions of yen) 50 42.2 100 87.3 79.9 78.0 (91%) 37.8 (87%) (92%) (98%) 37.4 (90%) (99%) String & 40 percussion 8
Slide 34: Musical Instrument Sales in the North American Market
Musical Instrument Sales in the North American Market Figures in parentheses Market Wholesale Amount indicate year-on- Yamaha’s Wholesale Amount year percentage changes (Millions of US$) (Millions of US$) 2,500 (Millions of US$) 2,033 500 (84%) 1,821 1,813 (90%) (100%) 380 366 381 2,000 400 (81%) (1
Slide 35: Musical Instrument Sales in the European Market
Musical Instrument Sales in the European Market Figures in parentheses Market Wholesale Amount indicate year-on- Yamaha’s Wholesale Amount year percentage changes (Millions of euro) (Millions of euro) 2,000 1,828 1,738 (98%) 1,712 500 （94%) （101%) 376 343 400 （99%) 326 （105%) 1,500 String & （88%) pe
Slide 36: Musical Instrument Sales in the Chinese Market
Musical Instrument Sales in the Chinese Market Figures in parentheses Market Wholesale Amount indicate year-on- Yamaha’s Wholesale Amount year percentage changes (Millions of yuan) 5,000 4,560 (Millions of yuan) 4,375 4,336 (105%) (99%) String & 1,200 1,023 (96%) percussion (112%) String & instrumen
Slide 37: Musical Instrument Sales in Other Region Markets
Musical Instrument Sales in Other Region Markets Figures in parentheses Market Wholesale Amount indicate year-on- Yamaha’s Wholesale Amount year percentage changes (Billions of yen) Note: includes 150 Russia (Billions of yen) 40 110.0 30.9 104.7 108.1 28.0 28.7 (108%) (105%) (103%) (95%) (104%) (102
Slide 38: World Market for Professional Audio Equipment
World Market for Professional Audio Equipment Figures in Market Wholesale Amount parentheses Yamaha’s Wholesale Amount (Billions of yen) indicate year-on- 500 year percentage changes 418.0 (89%) 371.0 382.0 400 (Billions of yen) (88%) (103%) 40 Other 32.1 31.5 (99%) 29.8 (106%) 300 China (93%) 30 Ot
Slide 39: Musical Instruments: Sales and Income by Quarter
Musical Instruments: Sales and Income by Quarter Net sales: ¥306.6 billion Net sales: ¥276.3 billion Net sales: ¥281.0 billion Operating income: ¥19.2 billion Operating income: ¥5.1 billion Operating income: ¥6.5 billion (Billions of yen) 85.2 81.2 77.7 76.0 71.3 71.4 72.0 68.4 68.0 62.5 65.2 65.0 O
Slide 40: AV/IT: Sales and Income by Quarter
AV/IT: Sales and Income by Quarter Net sales: ¥56.7 billion Net sales: ¥54.4 billion Net sales: ¥57.0 billion Operating income: -¥0.4 billion Operating income: ¥1.4 billion Operating income: ¥2.5 billion (Billions of yen) 17.4 18.5 16.5 16.6 13.8 13.3 14.0 13.0 11.2 12.5 11.5 9.8 2.0 1.8 0.7 1.1 0.8
Slide 41: Electronic Devices: Sales and Income by Quarter
Electronic Devices: Sales and Income by Quarter Net sales: ¥22.0 billion Net sales: ¥19.7 billion Net sales: ¥23.0 billion Operating income: -¥2.5 billion Operating income: -¥0.6 billion Operating income: ¥0.5 billion (Billions of yen) 7.5 6.0 6.5 5.6 5.3 5.5 4.7 4.7 4.9 4.8 5.0 4.2 0.6 0.2 0.3 -0.2
Slide 42: Others: Sales and Income by Quarter
Others: Sales and Income by Quarter Net sales: ¥30.9 billion Net sales: ¥27.5 billion Net sales: ¥24.0 billion Operating income: -¥2.1 billion Operating income: ¥0.5 billion Operating income: ¥0.5 billion (Billions of yen) 10.3 1.8 8.8 8.4 1.7 7.3 1.3 6.5 6.3 6.3 6.5 6.0 6.0 1.5 5.5 0.9 1.6 4.5 1.6
Slide 43: Forward-looking forecast 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