Yamaha Corporation · TSE:7951
Yamaha — Q1 FY2016.3 Earnings Presentation
28 slides from Yamaha's earnings presentation, Jul 31, 2015
Slide 1: Analyst and Investor Briefing on the First Quarter of FY2016.3
Yamaha Corporation Analyst and Investor Briefing on the First Quarter of Fiscal Year Ending March 31, 2016 (FY2016.3) July 31, 2015
Slide 2: Overview of Performance in the First Quarter (April-June)
Overview of Performance in the First Quarter (April-June) Results Summary First quarter sales increased year-on-year, and operating, ordinary, and net income all rose sharply. This is the fourth consecutive year of rising first quarter sales and income. Sales and income both exceeded previous proj
Slide 3: Performance in the First Quarter of FY2016.3
Performance in the First Quarter of FY2016.3 (Billions of yen) Changes from FY2016.3 Changes from FY2015.3 FY2016.3 same 1Q results 1Q results the previous year 1Q previous period of the previous projections projection Net Sales 99.6 105.5 +6.0% 104.0 +1.5% Operating Income 6.2 8.9 7.0 (Operating In
Slide 4: Performance by Business Segment in the First Quarter of FY2016.3
Performance by Business Segment in the First Quarter of FY2016.3 Net Sales Operating Income Year-on-year change (Billions of yen) 105.5 104.0 8.9 99.6 (6.0%) ■Others 5.8 6.5 0.4 ■Others (12.7%) 3.5 ■Electronic 0.4 7.0 ■Electronic 3.8 (-8.5%) Devices 24.7 6.2 1.0 Devices ■Audio ■Audio Equipment 24.3
Slide 5: FY2016.3 1Q Operating Income Analysis
FY2016.3 1Q Operating Income Analysis Improvement in (Billions of yen) Versus same period of the previous year manufacturing Increase in cost sales and +¥1.0 Increase in gross margin Increase in profitability of +¥1.0 Impact of electronic labor cost Actual exchange devices at overseas decrease in ra
Slide 6: Musical Instruments 1Q
Musical Instruments 1Q (Billions of yen) 1Q ■Net Sales ■Operating Income 1Q Overview 70.8 Sales and income increased year-on-year 65.7 Sales were robust in North America and 19.1 exceeded expectations in Europe Music schools, etc. 18.9 Strong sales of digital musical instruments drove double-d
Slide 7: Audio Equipment 1Q
Audio Equipment 1Q (Billions of yen) 1Q ■■■Net Sales ■Operating Income 1Q Overview 24.3 24.7 Sales and income rose year-on-year Although AV product sales again declined ICT devices 3.3 3.5 from the same period of the previous year, they were in line with expectations PA Sales of online karaoke
Slide 8: Electronic Devices 1Q
Electronic Devices 1Q (Billions of yen) 1Q ■Net Sales ■Operating Income 1Q Overview • Although sales declined year-on-year, income improved to return to positive territory • Improved profitability was partly due to the effects of structural reforms and rallying sales of devices for amusement equipme
Slide 9: Others 1Q
Others 1Q (Billions of yen) 1Q ■■■■Net Sales ■Operating Income 1Q Overview Sales and income increased year-on-year 5.8 6.5 Factory automation equipment sales were stronger than the previous year Sales of automobile interior wood 2.4 components and golf products declined FA equipment, 1.5 etc.
Slide 10: Outlook for 2-4Q and Full Year
Outlook for 2-4Q and Full Year Outlook for 2-4Q In light of first quarter sales results, previous projections for musical instrument sales remain unchanged in all markets Audio equipment business will focus on continuing growth for professional audio equipment and recovery driven by the launch o
Slide 11: Forecast for Performance in FY2016.3 (Full Year)
Forecast for Performance in FY2016.3 (Full Year) (Billions of yen) Changes from FY2016.3 Changes from FY2015.3 FY2016.3 same period of results projections the previous previous the previous year projections projection Net Sales 432.2 437.0 +1.1% 435.0 +0.5% Operating Income 30.1 35.0 34.0 (Operating
Slide 12: FY2016.3 Full Year Forecast 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) 432.2 (1.1%) 437.0 (0.5%) 435.0 ■Others 24.2 (1.1%) 24.5 (-) 30.1 35.0 34.0 ■Electronic 24.5 0.5 ■Others 13.4 (-3.2%) 13.0 (-) 13.0 0.
Slide 13: FY2016.3 Full Year Operating Income Analysis
FY2016.3 Full Year Operating Income Analysis (Billions of yen) Versus previous year Improvement in manufacturing Increase in cost Increase in labor cost profitability of +¥3.8 at overseas Actual electronic factories increase in devices -¥1.6 SG&A Impact of Actual +¥2.5 exchange increase in 35.0 -¥2.
Slide 14: Musical Instruments Full Year Projections
Musical Instruments Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income Full Year Projections 281.7 281.5 280.0 • Income is projected to increase year-on- year, and sales and income are both expected to exceed previous projections Music 78.2 64.6 65.2 schools, etc. • Despi
Slide 15: 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 year-on-year changes, 105.0 excluding the sales of music school (99%)* Figures in red parentheses 4Q 91.0 (87%) show actual year-on-year c
Slide 16: Audio Equipment Full Year Projections
Audio Equipment Full Year Projections Full Year (Billions of yen) ■■■Net Sales ■Operating Income Full Year Projections • Sales and income are projected to rise 118.0 year-on-year 112.8 117.5 • The launch of new models is expected to 15.2 15.1 spur a rally in AV product sales ICT devices 13.6 • Growt
Slide 17: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, 31.8 (101%) discounting the impact of exchange rates 30.1 30.1 (107%) 28.7 7.5 24.7 24.0 (97%) (94%) 6.5 6.4 (101%) (107%) 7.9 21.2 4Q 19.6 (105%) 8.8 8.3 (94%) 9.8 (110%) 9.2 9.8 (117%) 4.8 8
Slide 18: 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 89.5 (103%) 48.3 (102%) 53.5 (103%) 46.5 50.1 19.2 (100%) 19.3 10.0 (97%) 4Q 12.6 (98%) 10.4 12.8 28
Slide 19: 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 Although sales of devices for amusement equipment are expected to rebound, the outlook for other devices remains cautious The effects of
Slide 20: Others Full Year Projections
Others Full Year Projections Full Year (Billions of yen) ■■■■Net Sales ■Operating Income Full Year Projections Previous projections remain unchanged 24.5 24.5 24.2 Smartphone-related equipment are expected to drive an increase in factory FA equipment, automation equipment sales and income etc. 6
Slide 21: Inventories
Inventories Inventories at the end of the first quarter (June 30, 2015) amounted to ¥97.4 billion including the year-on-year forex impact of +¥6.8 billion Inventories at the end of the fiscal year is forecast to be ¥90.1 billion with forex impact of +¥0.1 billion (Billions of yen) End of 1Q End of
Slide 22: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) 13.8 (12.6) 13.8 (13.6) 13.8 (13.7) ■Others ■Electronic Devices 0.8 0.6 0.7 ■Audio Equipment 0.6 0.6 0.4 ■Musical Instruments 2.8 4.7 4.7 3.2 0.2 (2.9) 2.6 (3.0) 0.4 0.1 9.5 0.7 0.2 0.7 8.0 8.0 2.0 1.5
Slide 23: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 1Q As of end of fiscal year end As of June As of June As of Mar. 31, As of Mar. 31, Change 2016 projections Change 30, 2014 30, 2015 2015 Cash and deposits 61.4 84.3 22.9 79.3 95.3 16.0 Notes and accounts receivable 52.4 54.8 2.4 60.3 56.5 -3.8 In
Slide 24: Appendix
Appendix
Slide 25: First Quarter Non-Operating Income/Loss & Extraordinary Income/Loss
First Quarter Non-Operating Income/Loss & Extraordinary Income/Loss FY2015.3 1Q FY2016.3 1Q FY2016.3 1Q (Billions of yen) previous projections Non-Operating Income/Loss Net financial income 0.3 0.4 0.2 Other -0.6 -0.8 -0.7 Total -0.3 -0.4 -0.5 Extraordinary Income/Loss Income from (loss on) -0.１ -0.
Slide 26: 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 Income/Loss Net financial income 3.8 3.2 2.1 Other -2.7 -3.2 -3.1 Total 1.1 0 -1.0 -Business structural reform exp
Slide 27: Quarterly Sales and Income
Quarterly Sales and Income (Billions of yen) 116.9 118.0 118.0 108.9 110.0 110.0 106.8 105.5 104.0 103.5 103.0 99.6 6.2 8.9 10.6 8.9 9.6 12.5 7.0 9.5 13.0 4.5 4.4 4.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2015.3 FY2016.3 (projections) FY2016.3 (previous projections) Net Sales 432.2 Net Sales 437.0 N
Slide 28: 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