Yamaha Corporation · TSE:7951
Yamaha — FY2013 Earnings Presentation
36 slides from Yamaha's earnings presentation, May 1, 2013
Slide 1: Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2013
Yamaha Corporation Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2013 (FY2013.3) May 1, 2013
Slide 2: Overview of Performance in FY2013.3
Overview of Performance in FY2013.3 External External Environment Environment ■ In the global economy, the North American market is trending toward recovery, but market conditions remain unstable in Europe ■ The pace of growth is steadily slowing in the Chinese market. Growth in other markets is pat
Slide 3: Performance in FY2013.3
Performance in FY2013.3 Net sales and income in all levels were higher than previous projections and also exceeded previous year. Net income returned to black. (Billions of yen) FY2013.3 Change from FY2012.3 FY2013.3 YoY changes Previous previous Results Results Projections projections made on 2013
Slide 4: Performance by Business Segment in FY2013.3
Performance by Business Segment in FY2013.3 (Billions of yen) Net Sales Operating Income (+0.5%) 365.0 356.6 (+2.9%) 366.9 23.8 (-0.7) Others 22.1 (+7.7) 15.0 24.0 Electronic 16.2 (-7.4) (-3.0) 15.5 Devices AV/IT 53.2 (+4.1) 55.4 (+0.7) 55.0 8.1 9.2 7.0 0.4 0.3 2.9 2.9 0.5 Others Musical (+0.8) Inst
Slide 5: Domestic Business Structural Reform
Domestic Business Structural Reform Domestic business structural reform progressed smoothly. An extraordinary loss of ¥3.1 billion was recorded (previous projection made on Feb.6, 2013: ¥3.3 billion). Profitability is projected to improve by ¥2.5 billion in FY2014.3. Restructuring Savings in Main
Slide 6: FY2013.3 Operating Income Analysis
FY2013.3 Operating Income Analysis (Billions of yen) Versus Versus previous previous year year Effects of Increase Impact of structural inprice sales/ exchange reform rates (Saitama 3.1 Retirement Increase Decrease benefit integration) in actual in material -3.0 SG&A cost obligation 1.1 -1.4 0.4 0.9
Slide 7: Musical Instruments
Musical Instruments 4Q Overview FY2013.3 Overview • Pianos sales were robust in North America and China • Actual sales rose year-on-year despite sluggish results during • Digital piano sales were up year-on-year, but portable the year-end period of high demand keyboards struggled • Production adjust
Slide 8: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, North America Europe discounting the impact of exchange rates 45.4 45.6 (+3%) 41.3 (+4%) 37.9 Japan 9.7 11.9 (+7%) 9.0 11.0 (±0%) 13.7 14.0 (+4%) 9.1 10.3 (+8%) 118.5 116.7 (-2%) 11.2 10.2
Slide 9: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Musical Instrument Sales by Region A stagnant market produced overall results even lower than those of the previous year, which suffered from the impact of the Great East Japan Earthquake. Although demand for grand pianos and upright pianos manufactured in Indone
Slide 10: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category (Billions of yen) Piano Digital Musical Instruments Figures in parentheses show 59.2 62.5 (+4%) actual year-on-year changes, 40.3 40.9 (-1%) discounting the impact of exchange rates 15.1 (-8%) 14.4 4Q 9.3 10.6 (+1%) (+9%) 10.2 17.1 19.0 3Q 10.2 (-2%) 2Q
Slide 11: AV/IT
AV/IT 4Q Overview FY2013.3 Overview • Profitability improved as sales increased • Sales rose year-on-year but operating income • Robust sales of AV receivers in the North American remained the same. Sales and income were both and European markets higher than previous projections • Genuine increase i
Slide 12: Electronic Devices
Electronic Devices 4Q Overview FY2013.3 Overview • Sales were down year-on-year and against previous •Delay in recovery of amusement market in second projections, but profitability improved half • Graphics controllers for amusement equipment •Progress with overseas outsourcing of production struggle
Slide 13: Others
Others 4Q Overview FY2013.3 Overview • Steady sales of automobile interior wood • Smoothly managed 1Q transition of automobile components interior wood components in response to customer • Measures taken for golf product defect issue have model changes, and subsequent sales were robust nearly been c
Slide 14: FY2014.3 Business Environment and Performance Forecast
FY2014.3 Business Environment and Performance Forecast Business Business Environment Environment ■ The US economy is on a recovery trend despite concerns due to fiscal constraints ■ Fiscal issues in Europe continue to cause uncertainty ■ The Chinese economy is still growing reliably, albeit at a slo
Slide 15: Forecast for Performance in FY2014.3
Forecast for Performance in FY2014.3 Sales and income are forecast to increase against previous year. (Billions of yen) FY2013.3 FY2014.3 Increase/ Year-on-year decrease percentage results projections change Net sales 366.9 390.0 +23.1 +6.3% Operating income 9.2 18.0 +8.8 +95.3% (Operating income r
Slide 16: Forecast for Performance by Business Segment in FY2014.3
Forecast for Performance by Business Segment in FY2014.3 (Billions of yen) Net Sales Operating Income (+6.3%) 366.9 390.0 Others 23.8 (+4.9) 25.0 Electronic 19.0 Devices 15.0 (+26.3) Audio 99.5 18.0 Equipment 92.6 * (+7.5) 0.5 Others 9.2 5.5 Audio Equipment 0.3 Musical 235.5* (+4.7) 246.5 4.6 * Inst
Slide 17: FY2014.3 Sales and Operating Income Analysis
FY2014.3 Sales and Operating Income Analysis (Billions of yen) Sales Increase in actual Impact of sales exchange Newly- rates consolidation 12.7 9.6 0.8 390.0 366.9 FY2013.3 FY2014.3 projections Increase in actual sales and Operating Income production 3.1 Improvement in manufacturing cost Increase i
Slide 18: Musical Instruments: Projections
Musical Instruments: Projections (Billions of yen) Net Net Sales Sales Full Year Projections 235.5* 246.5 •Sales and income are expected to increase year-on-year Music 81.9** 81.5 schools, etc. •Sales are anticipated to rise in China and emerging markets Yamaha •Wind instrument, string and musical 1
Slide 19: Musical Instrument: Sales by region
Musical Instrument: Sales by region Figures in parentheses show actual year-on-year changes, discounting the impact of exchange rates North America Europe (Billions of yen) 36.7* 40.2 (+1%) (+4%) 35.8 Japan 33.4* 17.8 (+1%) 20.1* 21.1 (+2%) 18.0* 108.0* 106.5 (-1%) 15.4* 17.9 16.6* 19.1 (+1%) (+8%)
Slide 20: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category (Billions of yen) Piano Digital Musical Instruments 68.0 (+5%) (+3%) 62.5 Figures in parentheses show 43.3 actual year-on-year changes, 40.9 discounting the impact of exchange rates 36.3 (+6%) 34.1 (+4%) 2H 20.8 21.5 28.4 31.7 (+3%) Yamaha Musical Instr
Slide 21: Audio Equipment: Projections
Audio Equipment: Projections (Billions of yen) Full Year Projections Net Net Sales Sales • Sales and income are expected to rise year-on- 92.6* 99.5 year Routers, etc. • Karaoke equipment sales are anticipated to 7.2 decline as the effects of model changes fade Professional 6.5 audio * • Professiona
Slide 22: Electronic Devices: Projections
Electronic Devices: Projections (Billions of yen) Net Net Sales Sales Full Year Projections •Sales are expected to increase year-on- year, and a return to profit is anticipated, partly due to business structural reform 19.0 15.0 •Fixed costs at the Kagoshima factory will be reduced by early retireme
Slide 23: Others: Projections
Others: Projections (Billions of yen) Net Net Sales Sales Full Year Projections •Sales and income are expected to rise 23.8 25.0 year-on-year •Sales of automobile interior wood Factory automation 5.4 6.2 equipment, etc. components are anticipated to decline Resorts 5.2 5.7 as the current round of de
Slide 24: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) 15.4 Others (12.8) 13.8 0.8 (13.5) Electronic Others 10.4 11.3 (12.0) 1.1 (11.6) 1.0 Devices Electronic 1.3 1.4 3.1 Audio 0.50.9 1.9 <2.5> Equipment 1.1 0.7 Devices AV/IT 1.0 Musical Musical 9.5<8.9> 1
Slide 25: Inventories
Inventories Inventories at the end of period were ¥4.9 billion higher than previous year. Discounting the impact of exchange rates of +¥6.2 billion, actual inventories decreased by ¥1.3 billion. Inventories were ¥4.9billion higher than the previous projections including ¥4.9 billion impact of excha
Slide 26: 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, 2011 2012 2013 2014 projections Cash and deposit 58.7 56.6 51.4 55.4 Notes and accounts receivable 45.1 44.5 51.0 50.2 Inventories 71.7 77.1 82.0 76.0 Other current assets 19.2 10.8 13.5 13.9 Fixe
Slide 27: Return to Shareholders
Return to Shareholders An annual dividend of ¥15 is planned for 50 47.0 38.6 Consolidated payout ratio(%) 42.5 26.1 21.1 21.5 16.6 14.7 27.5 Per-share dividend (yen) 20 22.5 20 Special 15 dividend 10 10 10 Regular dividend FY2005.3 FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 FY2011.3 FY2012.3 FY20
Slide 28: Appendix
Appendix 付属資料
Slide 29: Performance in the Fourth Quarter of FY2013.3
Performance in the Fourth Quarter of FY2013.3 Sales and income exceeded previous year and previous projections (Billions of yen) FY2013.3 4Q previous Change from FY2012.3 4Q FY2013.3 4Q YoY changes projections previous results results made on Feb. 6, projections 2013 Net sales 86.0 93.0 +8.2% 91.1
Slide 30: Performance by Business Segment in the Fourth Quarter of FY2013.3
Performance by Business Segment in the Fourth Quarter of FY2013.3 (Billions of yen) Net Sales Operating Income (+8.2%) 93.0 (+2.1%) 91.1 86.0 5.7 (-2.7) 5.9 Others 5.0 (+13.5) 3.7 -1.2 -3.4 Electronic (-12.3) 4.2 4.3 (-14.2) 12.9 12.5 -2.9 Devices (+3.1) AV/IT 11.1 (+16.9) 0 -0.1 -0.4 -0.9 -0.4 Musi
Slide 31: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss (Billions of yen) FY2012.3 results FY2013.3 results FY2014.3 projections Non-operating Non-operating income/loss income/loss Net financial income/loss 1.3 1.1 1.0 Other -2.1 -1.7 -2.5 Total -0.8 -1.5 -0.6 Structural reform expenses -3.1
Slide 32: Sales and Income by Quarter: Musical Instruments
Sales and Income by Quarter : Musical Instruments (Billions of yen) Net sales: ¥272.7 billion Net sales: ¥235.5 billion Net sales: ¥246.5 billion Operating income: ¥8.1 billion Operating income: ¥6.4 billion Operating income: ¥12.0 billion 70.7 67.3 64.5 70.2 66.5 58.8 61.0 59.5 61.5 61.0 56.2 57.5
Slide 33: Sales and Income by Quarter: Audio Equipment
Sales and Income by Quarter : Audio Equipment (Billions of yen) Net sales: ¥55.4 billion Net sales: ¥92.6 billion Net sales: ¥99.5 billion Operating income: ¥2.9 billion Operating income: ¥4.6 billion Operating income: ¥5.5 billion AV/IT 27.0 24.1 29.0 22.0 24.0 24.5 17.8 20.5 21.0 12.0 12.7 12.9 1.
Slide 34: Sales and Income by Quarter: Electronic Devices
Sales and Income by Quarter : Electronic Devices (Billions of yen) Net sales: ¥15.0 billion Net sales: ¥19.0 billion Operating income: -¥2.0 billion Operating income: ¥0 billion 5.5 5.0 3.9 4.0 4.0 4.5 3.5 3.7 -0.6 -0.4 -0.4 0 0 0 0 -0.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2013.3 FY2014.3 projections 34
Slide 35: Sales and Income by Quarter: Others
Sales and Income by Quarter : Others (Billions of yen) Net sales: ¥23.8 billion Net sales: ¥25.0 billion Operating income: ¥0.3 billion Operating income: ¥0.5 billion 6.8 6.5 6.0 6.5 6.0 5.6 5.7 5.7 0.6 0.1 0.5 -0.1 -0.4 0 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2013.3 FY2014.3 projections 35
Slide 36: Forecast figures disclaimer
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