Yamaha Corporation · TSE:7951
Yamaha — H1 FY2002 Earnings Presentation
29 slides from Yamaha's earnings presentation, Nov 19, 2001
Slide 1: Presentation of Interim Financial Statements for Fiscal 2002
Presentation of Interim Financial Statements for Fiscal 2002 November 19, 2001 YAMAHA CORPORATION
Slide 2: Financial Summary for the Interim Period Ended September 30, 2001
Financial Summary for the Interim Period Ended September 30, 2001 - Net sales and operating income decreased compared with previous interim term. - Consolidated net sales edged down (1.0%) from the previous interim term. Net sales contracted 4.7% when gains of foreign currency exchange (¥9.4 billion
Slide 3: Performance Outline
Performance Outline (Billions of Yen) Initial First Half First Half Increase/ Projection of FY2001 of FY2002 (Decrease) (announced on Oct. 10, 2001) Net Sales 251.2 248.7 (2.5) 250.0 Operating Income 12.5 7.7 (4.8) 9.0 Operating Income Ratio (%) 5.0% 3.1% Recurring Profit 13.9 7.5 (6.4) 7.5 Recurrin
Slide 4: Currency Exchange Rate
Currency Exchange Rate First Half First Half of FY2001 of FY2002 Impact Net Sales US$ ¥107 ¥122 + ¥5.5 billion EUR ¥99 ¥108 + ¥2.2 billion Others + ¥1.7 billion Total + ¥9.4 billion Profit US$ ¥106 ¥122 + ¥1.4 billion EUR ¥102 ¥106 + ¥0.9 billion Others + ¥0.3 billion Total + ¥2.6 billion 3
Slide 5: Net Sales by Business Segment
Net Sales by Business Segment (Billions of Yen) 251.2 248.7 (-1.0 %) Recreation and Others 19.8 239.3 (-4.7 %) 20.4 (+3.0%) Electronic Equipment 22.2 20.4 and Metal Products 18.4 (-17.1%) 18.4 24.2 23.8 (-1.6%) Lifestyle-Related Products 23.8 42.5 41.5 (-2.4%) 38.4 AV/IT (-9.6%) Musical Instruments
Slide 6: Net Sales by Region
Net Sales by Region (Billions of Yen) Other Regions 21.8 23.5 +7.8%) 21.8 (— %) Europe 33.5 33.9 (+1.2%) 31.3 (-6.6%) North America 42.2 43.0 (+1.9%) 37.9 (-10.2%) 153.7 148.3 148.3 Japan (-3.5%) First Half of First Half of First Half of FY2001 FY2002 FY2002 After translation adjustments * Figures i
Slide 7: Operating Income by Business Segment
Operating Income by Business Segment (Billions of Yen) Currency Actual First Half First Half Increase/ Exchange Increase/ of FY2001 of FY2002 Decrease Impact (Decrease) Musical Instruments 9.2 3.8 (5.4) 3.2 (8.6) AV/IT 0.5 1.2 0.7 (0.6) 1.3 Lifestyle-Related Products 0.7 1.0 0.3 0.3 Electronic Equip
Slide 8: Operating Income by Region
Operating Income by Region (Billions of Yen) Currency Actual First Half First Half Increase/ Exchange Increase/ of FY2001 of FY2002 (Decrease) Impact (Decrease) Japan 9.1 7.1 (2.0) 2.4 (4.4) North America 3.1 1.3 (1.8) 0.1 (1.9) Europe (0.2) (0.3) (0.1) (0.1) — Other Regions 1.4 1.9 0.5 0.2 0.3 Elim
Slide 9: Breakdown of Operating Income/Loss
Breakdown of Operating Income/Loss Gain on Foreign Actual Decrease (Billions of Yen) Exchange in Sales (11.9) 2.6 (3.0) Increase in Advertising Expenses (0.8) Manufacturing Costs Personnel Expenses (0.9) (2.4) Increase in SG&A Expenses (2.0) 12.5 7.7 Operating Income for the Operating Income for the
Slide 10: Non-Operating Income/Expenses
Non-Operating Income/Expenses (Billions of Yen) First Half First Half Increase/ of FY2001 of FY2002 (Decrease) Equity in Earnings of Unconsolidated Subsidiaries and Affiliates 3.3 2.3 (1.0) Financial Gains/Losses (0.7) (1.0) (0.3) Other Non-Operating Income/Expenses (1.2) (1.5) (0.3) TOTAL 1.4 (0.2)
Slide 11: Other Profit/Losses
Other Profit/Losses (Billions of Yen) First Half First Half Increase/ of FY2001 of FY2002 (Decrease) Gain/Loss on Sale of Fixed Assets and Investment Securities 4.8 0.8 (4.0) Retirement Benefits and Current Value Accounting (2.8) 2.8 Others 0.1 (0.1) (0.2) TOTAL 2.1 0.7 (1.4) 10
Slide 12: Forecasts of Results for FY2002
Forecasts of Results for FY2002 (Billions of Yen) FY2001 Results FY2002 Forecasts Increase/ (Decrease) 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Ratio Net Sales 251.2 267.9 519.1 248.7 256.3 505.0 (2.7)% 23.0 13.0 Operating Income 12.5 10.5 [4.4%] 7.7 5.3 [2.6%] (43.5)% 19.2 10.0 Recur
Slide 13: Currency Exchange Rate
Currency Exchange Rate FY2001 Results FY2002 Forecasts Impact 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Net Sales US$ Net Sales ¥107 ¥114 ¥111 ¥122 ¥120 ¥121 + ¥8.2 bil. EUR ¥99 ¥102 ¥100 ¥108 ¥105 ¥106 + ¥3.1 bil. Others — + ¥2.8 bil. Total + ¥14.1 bil. Profit Profit US$ ¥106 ¥111 ¥10
Slide 14: Operating Environment
Operating Environment Musical Instruments - Deceleration of world economies (especially Japan and the United States) - Rapid deterioration of market conditions due to impact of terrorism in the United States - Sales growth in Asia (China and South Korea) AV/IT - Home theater market: Intensifying com
Slide 15: Major Policies
Major Policies Responding to Changes in Core Business Markets 1. Optimize inventories (20% inventory reduction compared with end of fiscal 2002 interim period) 2. Expand AV business by introducing new products (from ¥60.5 billion to ¥65.4 billion) 3. Expand content business (from ¥2.3 billion to ¥4.
Slide 16: Forecasts of Net Sales by Business Segment
Forecasts of Net Sales by Business Segment (Billions of Yen) 519.1 505.0 (-2.7 %) Recreation and Others 43.9 490.9 (-5.4 %) Electronic Equipment 42.0 (-4.3%) 42.0 and Metal Products 43.2 38.0 (-12.0%) 38.0 Lifestyle-Related Products 46.9 47.0 (+0.2%) 47.0 AV/IT 100.2 (-5.2%) 95.0 90.4 (-9.8%) Musica
Slide 17: Forecasts of Net Sales by Region
Forecasts of Net Sales by Region (Billions of Yen) Other region 45.9 44.9 -2.2%) 42.1 (-8.3 %) Europe 73.0 72.2 (-1.1%) 68.4 (-6.3%) North America 91.7 (-1.4%) 90.4 82.9 (-9.6%) Japan 308.5 297.5 (-3.6%) 297.5 FY2001 FY2002 FY2002 Forecast After translation adjustments * Figures in parentheses repre
Slide 18: Forecasts of Operating Income by Business Segment
Forecasts of Operating Income by Business Segment (Billions of Yen) Currency Actual FY2001 FY2002 Increase/ Exchange Increase/ Results Forecasts (Decrease) Impact (Decrease) Musical Instruments 12.3 5.0 (7.3) 5.6 (12.9) AV/IT 3.9 3.3 (0.6) 0.2 (0.8) Lifestyle-Related Products 0.9 1.4 0.5 0.5 Electro
Slide 19: Forecasts of Operating Income by Region
Forecasts of Operating Income by Region (Billions of Yen) Currency Actual FY2001 FY2002 Increase/ Exchange Increase/ Results Forecasts (Decrease) Impact (Decrease) Japan 13.4 5.5 (7.9) 5.2 (13.1) North America 5.8 4.0 (1.8) 0.3 (2.1) Europe 1.3 0.7 (0.6) — (0.6) Other Regions 3.0 3.3 0.3 0.3 — Elimi
Slide 20: Forecasts of Breakdown of Operating Income/Loss
Forecasts of Breakdown of Operating Income/Loss (Billions of Yen) Gain on Foreign Decrease in Exchange Sales 5.8 (6.5) Increase in Manufacturing Costs Personnel Expenses (2.7) Advertising Expenses (0.3) (6.2) Increase in SG&A Expenses (3.1) 23.0 13.0 Operating Income Operating Income for FY2001 for
Slide 21: Inventories
Inventories 2.20 2.19 2.52 1.96 1.76 Months Inventories at the end of the Term Average Net Sales per Month 97.7 104.5 (Billions of Yen) 92.2 29.6 83.9 77.4 29.1 33.8 Goods in 5.2 27.8 Process/ 27.3 6.5 16.0 Materials 7.9 12.9 4.9 Other Products 4.1 11.1 6.4 9.1 AV/IT 53.7 36.9 44.1 44.5 44.8 Musical
Slide 22: Number of Employees
Number of Employees 24,349* 22,419 22,277 22,100 21,599 9,906 12,252 9,034 9,952 10,200 Overseas 12,565 12,513 12,325 12,097 11,900 Japan FY2000 First Half FY2001 First Half FY2002 of FY2001 of FY2002 (Forecast) * Including 990 employees added due to expanded scope of consolidation. 21
Slide 23: Capital Investments/Depreciation and Amortization
Capital Investments/ Depreciation and Amortization (Billions of Yen) 34.3 36.4 28.6 Capital Investments 18.5 17.3 17.3 18.6 14.8 Depreciation and Amortization FY1999 FY2000 FY2001 FY2002 (Forecast) 22
Slide 24: Free Cash Flow
Free Cash Flow (Billions of Yen) 23.4 18.4 FY2001 FY2000 FY2002 (Forecast) (14.5) 23
Slide 25: Outstanding Balance of Actual Debt
Outstanding Balance of Actual Debt (Billions of Yen) 89.6 Employee Savings 10.3 70.4 Convertible 62.7 Bonds 24.3 Interest- 8.3 24.3 49.7 Bearing Liabilities 24.3 24.3 Long-Term Debt 55.0 46.1 (excluding Cash 30.1 25.4 and Deposits FY1999 FY2000 FY2001 FY2002 (Forecast) In addition, resort deposits t
Slide 26: R&D Expenses
R&D Expenses (Billions of Yen) 22.5 21.4 22.4 20.7 Electronic 6.9 5.2 5.6 Equipment, etc. 5.0 5.0 5.2 AV/IT Musical 10.6 11.2 11.6 Instruments FY1999 FY2000 FY2001 FY2002 (Forecast) 25
Slide 27: Balance Sheets
Balance Sheets (Billions of Yen) First Half First Half FY2001 FY2002 of FY2001 of FY2002 Cash and Bank Deposits 32.8 32.9 38.2 44.6 Accounts and Notes Receivable 81.5 85.7 79.6 77.1 Inventories 92.2 97.7 104.5 83.9 Other Current Assets 15.5 15.6 15.7 15.6 Fixed Assets 293.9 290.6 282.8 281.6 Total A
Slide 28: Forward-looking forecasts notice
In this report, the figures forecast for our 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, our actual performance may differ greatly from our predictio
Slide 29: Yamaha - Creating Kando Together
@ YAMAHA CREATING KANDO TOGETHER