Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2016.3 Earnings Presentation
34 slides from Yamaha's earnings presentation, Feb 5, 2016
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY2016.3
Yamaha Corporati Y tion Analyst and Investor Briefing on the Third Quarter of Fiscal Year Endingg March 31,, 2016 (FY2016.3)) February 5, 2016
Slide 2: Overview of Performance in the Third Quarter (October-December)
Overview of Performance in the Third Quarter (October-December) Results Summary Sales increased year-on-year and exceeded previous projections. Operating, ordinary, and net income all rose sharply. 3Q operating income exceeded 15 billion yen, regaining levels prevailing prior to FY2004.3 The opera
Slide 3: Performance in the Third Quarter of FY2016.3 (Three Months)
Performance in the Third Quarter of FY2016.3 (Three Months) (Billions of yen) Changes from FY2016.3 Changes from FY2015.3 FY2016.3 same period of 3Q results 3Q results the previous 3Q previous the previous year projections projection p j Net Sales 116.9 118.3 +1.2% 117.0 +1.1% O Operating ti Income
Slide 4: Performance by Business Segment in the Third Quarter of FY2016.3
Performance by Business Segment in the Third Quarter of FY2016.3 (Three Months) Net Sales Operating Income Year-on-year change Change from the (Billions of yen) previous projections 116.9 (1.2%) 118.3 (1.1%) 117.0 ■Others (4.6%) ■Electronic 5.7 6.0 15.7 Devices 3.0 (-15.1%) 2.6 0.4 ■Others ■Audio Eq
Slide 5: Musical Instruments 3Q (Three Months)
Musical Instruments 3Q (Three Months) 3Q (Billions of yen) 3Q Overview ■Net Sales ■Operating Income Although sales declined year-on-year, 76.3 income rose sharply 73.6 The Th transfer t f off musici school h l operations ti and effect of exchange rate were the main Music 20.0 14.6 factor behind
Slide 6: Audio Equipment 3Q (Three Months)
Audio Equipment 3Q (Three Months) 3Q (Billions of yen) ■■■Net Sales ■Operating Income 3Q Overview 36 2 36.2 Sales and income increased sharply from 31.8 the same period of the previous year 4.2 The launch of new AV products helped to ICT devices 3.5 drive strongg results in all markets,, with ac
Slide 7: Electronic Devices 3Q (Three Months)
Electronic Devices 3Q (Three Months) 3Q (Billions of yen) ■Net Sales ■Operating Income 3Q Overview Sales fell year-on-year year-on-year, but profitability improved The recoil effect following advance shipment p of amusement equipment q p in the first half was a factor behind lower sales Profit
Slide 8: Others 3Q (Three Months)
Others 3Q (Three Months) 3Q (Billions of yen) ■■■■Net Sales ■Operating Income 3Q Overview Sales increased from the same period of the previous year, and profitability was 5.7 6.0 steady Golf p product sales increased,, due to FA equipment, 1.1 1.4 shipment of new products etc. In the factory a
Slide 9: Performance in the First Three Quarters of FY2016.3 (Nine Months)
Performance in the First Three Quarters of FY2015.3 (Nine Months) (Billions of yen) Changes from FY2016.3 Changes from the FY2015.3 FY2016.3 same 1 3Q results the previous year 1-3Q Q previous p period of p previous p 1 3Q results 1-3Q 1-3Q projection projections Net Sales 323.2 335.8 +3.9% 334.5 +0
Slide 10: Cumulative Results for the First Three Quarters: Non-Operating Profit and Loss
Cumulative Results for the First Three Quarters: Non-Operating Profit and Loss Recognition of Extraordinary Profit and Loss Recognition of extraordinary loss due to immediate amortization of goodwill It has been decided to record immediate amortization of goodwill for Line 6, Inc., which became a
Slide 11: Performance by Business Segment in the First Three Quarters of FY2016.3
Performance by Business Segment in the First Three Quarters of FY2015.3 (Nine Months) Net Sales Operating Income Change from the Year-on-year change previous projections 335.8 (0.4%) (Billions of yen) 323 2 323.2 (3.9%) (0 4%) 334.5 334 5 17.8 (0.7%) 17.9 36.9 ■Others 10.5 ■Electronic 10.6 (-0.4%) 3
Slide 12: FY2016.3 1-3Q Operating Income Analysis (Nine Months)
FY2016.3 1-3Q Operating Income Analysis (Nine Months) Improvement in (Billi (Billions off yen)) Versus same period of the previous year manufacturing cost +¥3.2 Increase in Increase in I Impactt off profitability fit bilit off Increase in labor cost electronic Increase in exchange sales and at overs
Slide 13: Outlook for Fourth Quarter and Full Year
Outlook for Fourth Quarter and Full Year Outlook for 4Q Despite concerns over the slowdown in the Chinese market and elsewhere and the impact of advance shipments of some products in 3Q, the outlook for the musical instrument and audio equipment segments is generally in line with previous projecti
Slide 14: Forecast for Performance in FY2016.3 (Full Year)
Forecast for Performance in FY2015.3 (Full Year) (Billions of yen) FY2014.3 FY2015.3 Change from FY2015.3 full Change from previous year previous previous 1-3Q 4Q Full Year 1-3Q 4Q Full Year New year results projections projections projections p j Projections Net Sales 323.2 108.9 432.2 335.8 101.2
Slide 15: FY2016.3 Full Year Forecast for Performance by Business Segment
FY2016.3 Full Year Forecast for Performance by Business Segment Net Sales Operating Income Year-on-year change Change from the previous projections (Billions of yen) (1 1%) 437.0 2 (1.1%) 432.2 432 (-) 437 0 437.0 41.0 37.0 24.2 (-1.0%) 24.0 ( - ) ■Others 24.0 ■Electronic 13.4 13.0 13.0 30.1 0.5 ■Ot
Slide 16: FY2016.3 Full Year Operating Income Analysis
FY2016.3 Full Year Operating Income Analysis (Billi (Billions off yen)) Versus same period of the previous year Improvement in manufacturing cost Increase in +¥4.1 sales and production Increase in labor cost Increase in +¥8.1 at overseas profitability of 41.0 factories Increase in Impact of electron
Slide 17: Musical Instruments Full Year Projections
Musical Instruments Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income Full Year Projections Full year sales projections remain 281.7 281.5 281.5 unchanged, and income is expected to be higher than previously projected Music 78.2 63.4 63.8 schools, etc. Sales of digit
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 blue parentheses show actual 105.0 88.9 88 9 year-on-year changes, excluding the sales of music (97%) school (85%) Figures in red parentheses 4Q show actual year-on-ye
Slide 19: Audio Equipment Full Year Projections
Audio Equipment Full Year Projections Full Year (Billions of yen) ■■■Net Sales ■Operating Income Full Year Projections Full year sales projections remain 118 5 118.5 118 5 118.5 unchanged, but income is expected to be 112.8 higher than previously projected 13.6 15.3 15.2 Ay year-on-year y produc
Slide 20: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, 31.4 (99%) 31.0 (108%) discounting the impact of exchange rates 30.1 28.7 24.7 24.3(99%) 6.7 (85%) 6.4 (101%) 6.5 7.9 20.6 (108%) 19.6 (96%) 4Q 8.8 8.5 9.9 9 9 (111%) 10 4 (121%) 10.4 92 9.2 4
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 Digital Musical Instruments AV Products (excl. parts) 85 7 85.7 89.9 ((103%) %) (101%) 50.1 52.6 48.4 (102%) 19.0 (100%) 46.5 19.3 (99%) 4Q 12.6
Slide 22: Electronic Devices Full Year Projections
Electronic Devices Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income Full Year Projections Previous projections remain unchanged Conditions will remain challenging in the amusement equipment market It will be difficult to increase sales of geomagnetic sensors and o
Slide 23: Others Full Year Projections
Others Full Year Projections Full Year (Billions of yen) ■■■■Net Sales ■Operating Income Full Year Projections Previous projections remain unchanged 24 2 24.2 24 0 24.0 24 0 24.0 New golf products are expected to boost sales FA equipment, Plans to attract more customers in winter etc. 64 6.4 6
Slide 24: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billi (Billions off yen)) Capital Expenditure (Depreciation) ■Others ■Electronic Devices ■Audio Equipment ■M i l Instruments ■Musical I t t 13 8 13.8 13 8 13.8 9.8 (9.2) (9.4) 0.8 (12.6) 12.3 (12.7) 0.7 0.6 (12.9) 0.6 0.6 0.8 0.6 7.7 2.8 0.7 1.9 0.7 4.8
Slide 25: Inventories
Inventories Inventories at the end of the third quarter (December 31, 2015) amounted to 95.2 billion yen. Actual inventories increased by 4.8 billion yen year-on-year after adjusting for foreign exchange impact of -4.5 billion yen. Inventories at the end off the fiscal f year are fforecast to be 9
Slide 26: Balance Sheet Summary
Balance Sheet Summary (Billi (Billions off yen)) As of end of 3Q As of end of fiscal year end As of Dec. 31, As of Dec. 31, As of Mar. 31, As of Mar. 31, Change 2016 projections Change 2014 2015 2015 Cash and deposits 74.5 99.5 25.0 79.3 89.4 10.1 Notes and accounts receivable 68.2 62.8 5.4 60.3 54.
Slide 27: Return to Stockholders: Stock Buyback and Dividends
Return to Stockholders: Stock Buyback and Dividends Decision to acquire treasury stock Reason: To increase the return profits to shareholders p and improve capital p efficiency y Type of shares to be acquired: Common stock of Yamaha Corporation Total shares to be acquired: 9 million shares (upper l
Slide 28: Appendix
付 属資料 Appendix
Slide 29: Forecast for Performance in the Fourth Quarter of FY2016.3
Forecast for Performance in the Fourth Quarter of FY2016.3 (Three Months) (Billions of yen) Changes from FY2015.3 FY2014.3 FY2015.3 4Q same period of 4Q previous Changes from the 4Q Q results esu ts p projections oject o s the previous year previous p p projection j projections Net Sales 108.9 101.2
Slide 30: Forecast for Performance by Business Segment in the Fourth Quarter
Forecast for Performance by Business Segment in the Fourth Quarter of FY2016.3 (Three Months) Net Sales Operating Income Year-on-year change Change from the (Billions of yen) 108.9 (-7.1%) previous projections 6.5 ( 7 1%) 101 2 (-1.3%) 101.2 102.5 ■Others (-5.7%) 6.1 2.9 ■Others ■Electronic Devices
Slide 31: Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss
Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss (Nine Months) FY2014.3 1-3Q FY2015.3 1-3Q FY2015.3 1-3Q (Billions of yen) previous projections Non-Operating Income/Loss Net financial income 1.3 1.6 1.5 Patent income +¥0.6 Other -1.0 -0.9 -1.0 Total 0.3 0.7 0.5 -Gain on sales of f
Slide 32: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2015.3 full year FY2016.3 full year FY2016.3 full year (Billions of yen) projections previous projections Non-Operating p g Income/Loss Net financial income 2.6 2.6 2.4 Other -1.5 -2.1 -1.9 Total 1.1 0.5 0.5 -Gain on sales of fixed as
Slide 33: Quarterly Sales and Income
Quarterly Sales and Income (Billi (Billions off yen)) 116.9 118.3 117.0 111.9 111.9 106.8 108.9 105.5 105.5 99.6 101.2 102 5 102.5 89 8.9 10 6 4 10.6 89 8.9 12.4 15.7 4.1 41 89 8.9 12.4 11.8 11 8 40 4.0 6.2 6 2 4.4 4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2015.3 FY2016.3 (projections) FY2016.3 (previ
Slide 34: 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