Yamaha Corporation · TSE:7951
Yamaha — H1 FY2007.3 Earnings Presentation
31 slides from Yamaha's earnings presentation, Nov 1, 2006
Slide 1: Analyst and Investor Briefing on the First Half of FY2007.3
Analyst and Investor Briefing on the First Half of the Fiscal Year Ending March 31, 2007 (FY2007.3) November 1, 2006 YAMAHA CORPORATION
Slide 2: Overview of Performance in the First Half
Overview of Performance in the First Half First Half Results Net sales were higher than the same period of the previous year while operating income was lower. Operating income exceeded initial projections made on April 28. - Net sales: Year-on-year + ¥7.3 billion (Musical instruments + 6.6) Vs. in
Slide 3: Performance in the First Half
Performance in the First Half ¾Compared to the same period of the previous year, net sales increased while operating income decreased. Sales were lower than initial projections but operating income was higher. (Billions of yen) Change from FY2007.3 (1H) Change FY2006.3 FY2007.3 same period (1H) (1H)
Slide 4: Performance by Business Segment in First Half
Performance by Business Segment in First Half Net Sales Operating Recreation & others 264.5 (+ 2.8%) 265.0 (- 0.2%) Income 257.2 Lifestyle- 22.3 (- 2.2) related 20.0 (+ 11.4) 22.8 (Billions of yen) products 22.5 (- 0.7) 21.5 (+ 4.4) 22.6 Electronic equipment 27.5 (- 2.8) 26.4 (+ 4.3) 28.3 & metal pr
Slide 5: Forecast for Performance in FY2007.3 (Full Year)
Forecast for Performance in FY2007.3 (Full Year) ¾Full-year forecasts for net sales and operating income remain unchanged. Upward revision of recurring profit and net income forecasts. (Billions of yen) FY2006.3 Actual FY2007.3 New Projections Change from (Initial previous 1H 2H Total 1H 2H Total fi
Slide 6: Forecast for Performance by Segment in FY2007.3 (Full Year)
Forecast for Performance by Segment in FY2007.3 (Full Year) Net Sales Operating Recreation & others 546.0 (+ 2.2%) 546.0 (‐%) Income Lifestyle- 534.1 related 42.7 47.0 (+ 10.1) 48.0 (- 2.1) (Billions of yen) products 45.2 46.0 (+ 1.8) 43.0 (+ 7.0) Electronic equipment 56.2 54.5 (- 3.0) 54.0 (+ 0.9)
Slide 7: Musical Instruments
Musical Instruments 1H Overview Full Year Overview and 2H Priorities • Sales and income both increased compared to the same period of the previous year. Sales were lower than initial projections but income was • Full year projections revised to ¥323.5 billion for sales and ¥20.0 higher. billion for
Slide 8: AV/IT
AV/IT 1H Overview Full Year Overview and 2H Priorities • Sales fell but operating income rose slightly year-on-year. Sales and income were both higher than initial projections. • Full year sales projections revised downward by ¥1billion to • Excluding the effect of exchange rates, actual sales fell
Slide 9: Electronic Equipment & Metal Products
Electronic Equipment & Metal Products 1H Overview Full Year Overview and 2H Priorities • Year-on-year decline in sales and income chiefly • Secure market share by increasing sales of high- due to lower demand for LSI sound chips for performance sound chips for mobile phones mobile phones • Increase
Slide 10: Lifestyle-related Products
Lifestyle-related Products 1H Overview Full Year Overview and 2H Priorities • Sales levels remained unchanged year-on- year • Full-year projections revised upward for sales • System kitchen sales remained strong and downward for income thanks to the success of the marble • Draw new customers to remo
Slide 11: Recreation
Recreation 1H Overview Full Year Overview and 2H Priorities • Although sales were lower than expected, overnight • Full year projections revised downward stays and day trips both increased year-on-year. • Attract customers by proposing plans that make Wedding business decreased. the most of each fac
Slide 12: Others
Others 1H Overview Full Year Overview and 2H Priorities • Sales increased year-on-year for the segment as a whole. Sales were also higher than initial projections, but income was • Full year operating income projection revised lower. downward • Sales of golf products and magnesium molded parts were
Slide 13: Inventories
Inventories ¾Excluding the impact of exchange rates, actual inventories at the end of the first half are lower than the previous year. Actual inventories are ¥3 billion higher than initial projections due to increases in goods in process and materials. (Billions of yen) End of 1H End of Fiscal Year
Slide 14: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of March As of Sept. 30, As of March As of Sept. 30, As of March 31, 2005 2005 31, 2006 2006 31, 2007 Cash and bank deposits 51.2 31.3 36.4 35.0 35.7 Accounts and 71.6 81.4 70.3 85.7 74.0 notes receivable Inventories 78.4 90.7 77.9 91.0 74.3 Other current a
Slide 15: 2H Priority Products (1)
2H Priority Products (1) z Upright Pianos: YUS and YU Series First change in the basic lineup of upright pianos in 5 years. New models launched successively from the end of September. First-year sales annual targets: 12,000 units in Japan, 11,000 units overseas. z Low-priced upright pianos for the E
Slide 16: 2H Priority Products (2)
2H Priority Products (2) zDigital Sound ProjectorsTM: YSP Series Yamaha Digital Sound ProjectorsTM have established a solid reputation for use in home theater systems featuring flat-screen TVs. November sees the launch of the YSP-1100, successor to the YSP-1000. The YSP- 1100’s simple controls creat
Slide 17: Appendix
Appendix
Slide 18: Slide 18
Slide 19: First Half Non-operating Income (Loss)/Extraordinary Income (Loss)
First Half Non-operating Income (Loss)/ Extraordinary Income (Loss) FY2006.3 (1H) FY2007.3 (1H) FY2007.3 (1H) Actual Actual Initial Projections Non-operating Income (Loss) (Billions of yen) Equity method income 8.5 10.2 7.8 Net financial income 0 0.2 - 0.2 (loss) Other - 1.6 - 1.3 - 1.6 Total + 6.9
Slide 20: Full Year Non-operating Income (Loss)/Extraordinary Income (Loss)
Full Year Non-operating Income (Loss)/ Extraordinary Income (Loss) FY2006.3 FY2007.3 FY2007.3 Initial Actual New Projections Projections Non-operating Income (Loss) (Billions of yen) Equity method income 14.8 17.3 14.8 Net financial income - 0.2 - 0.2 - 0.7 (loss) Other - 3.5 - 4.1 - 4.1 Total + 11.
Slide 21: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure/Depreciation Full Year 1H 27.0 26.5 22.9 4.8 5.5 4.4 15.0 4.9 (20.0) 5.2 (20.0) Others (18.9) 11.7 2.6 5.5 1.6 1.8 Electronic 9.8 1.8 2.8 1.1 equipment & 1.7 1.1 (9.8) 1.8 (9.7) metal products 2.2 (9.2) 0.6 15.2 14.5
Slide 22: Interest-bearing Liabilities
Interest-bearing Liabilities (Billions of yen) 25.4 Free Cash Flows 17.0 - 18.0 - 9.6 FY2006.3 FY2006.3 FY2007.3 FY2007.3 1H 2H 1H 2H (New projections) Interest-bearing Liabilities 15.5 Long- and short-term borrowings, 4.3 less cash and deposits - 4.6 - 8.0 - 10.2 As of As of As of As of As of Balan
Slide 23: Yamaha Musical Instrument Sales in the Japanese Market
Yamaha Musical Instrument Sales in the Japanese Market ElectoneTM sales continued to decline, with first half sales at about 99% of the previous year’s 1H figures. The new YU and YUS piano series and the D-Deck new-concept keyboard are expected to reverse this falling sales trend. (Billions of yen)
Slide 24: Yamaha Musical Instrument Sales in the U.S. Market
Yamaha Musical Instrument Sales in the U.S. Market While the piano market remains tight and sales targets for the first half were not met, the market is slowly looking up. Trade inventories have also fallen gradually and expectations are high for year-end sales. Portable keyboards and wind instrumen
Slide 25: Yamaha Musical Instrument Sales in the German Market
Yamaha Musical Instrument Sales in the German Market The German market continues to be stable. Sales of pianos and wind instruments were at 105% compared to the same period of the previous year. Looking ahead to year-end, sales promotion efforts are being boosted for the Tyros2 high-performance keyb
Slide 26: Yamaha Musical Instrument Sales in the U.K. Market
Yamaha Musical Instrument Sales in the U.K. Market The market is picking up. Although products such as pianos, electronic instruments and guitars continue to sell well, with sales at almost 110% year-on-year, professional audio equipment sales are languishing at just 90% of the previous year’s 1H fi
Slide 27: Yamaha Musical Instrument Sales in the Chinese Market
Yamaha Musical Instrument Sales in the Chinese Market Even though the Chinese economy continues to show strong growth, expansion in the musical instrument market is limited to certain areas. Piano sales are recovering thanks to bulk orders from schools, etc. and the new KB280/220 portable keyboards
Slide 28: Slide 28
Slide 29: Scale of Home Theater Market
Scale of Home Theater Market (Home theater systems, amplifiers and receivers) Home Theater Systems AV Amplifiers and Receivers • The market is on a downward trend, especially in Europe and the U.S. • The global market shrank by approximately 4% year-on-year (2006 forecast: 11 million units. 2007 for
Slide 30: AV Market Share
AV Market Share Japan Home Theater Systems: AV Amplifiers: Share of Total Sales Share of Total Sales Amount (GfKJ) 20% Amount (GfKJ) 40% 30% 10% 20% 39% 14% 14% 35% 33% 31% 31% 11% 10% 12% 10% 0% 0% ’02 ’03 ’04 ’05 ’06 ’02 ’03 ’04 ’05 ’06 (Jan. – Sept.) (Jan. – Sept.) U.S. Home Theater Systems: AV R
Slide 31: 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