Yamaha Corporation · TSE:7951
Yamaha — Q1 FY2014.3 Earnings Presentation
31 slides from Yamaha's earnings presentation, Aug 1, 2013
Slide 1: Analyst and Investor Briefing on the First Quarter of FY2014.3
Yamaha Corporation Analyst and Investor Briefing on the First Quarter of the Fiscal Year Ending March 31, 2014 (FY2014.3) August 1, 2013
Slide 2: Overview of Performance in the First Quarter
Overview of Performance in the First Quarter Results Results Summary Summary First quarter sales and income increased year-on-year in an environment of yen depreciation. Sales and income exceeded previous projections announced on April 30. Musical instrument sales were down from the same period of
Slide 3: Performance in the First Quarter of FY2014.3
Performance in the First Quarter of FY2014.3 (Billions of yen) Change from Previous Change from FY2013.3 FY2014.3 same period of Projections the previous (1Q) (1Q) the previous year projections (1Q) Net Sales 90.0 97.0 +7.7% 94.0 +3.2% Operating Income 4.3 6.2 +45.0% 2.5 +146.6% (Operating Income Ra
Slide 4: Performance by Business Segment in the First Quarter of FY2014.3
Performance by Business Segment in the First Quarter of FY2014.3 Net Sales Operating Income Change from the Year-on-year previous (Billions of yen) change projections 94.0 (+7.7%) 97.0 (+3.2%) 90.0 6.5 (-7.9%) 6.3 (-3.1%) Others 6.8 4.0 (+20.4%) 4.6 (+16.2%) 6.2 Electronic 3.9 Others Devices 0.4 Ele
Slide 5: FY2014.3 1Q Operating Income Analysis
FY2014.3 1Q Operating Income Analysis (Billions of yen) Versus Versus same same period period of of the the previous previous year year Decrease in actual Effect of SG&A structural Increase in reform Improvement in 0.1 manufacturing 0.5 Impact of manufacturing cost exchange rate cost -0.7 Decrease i
Slide 6: Musical Instruments 1Q
Musical Instruments 1Q (Billions of yen) Net Net Sales Sales 61.5 62.6 58.8 Music 20.5 schools, 20.7 20.7 etc. 1Q Overview Yamaha • Sales increased year-on-year and exceeded musical 38.1 40.8 42.1 previous projections instruments • Discounting the impact of exchange rates (+¥6.6 billion), actual sal
Slide 7: Audio Equipment 1Q
Audio Equipment 1Q (Billions of yen) Net Net Sales Sales 22.0 23.5 20.5 1.6 1.5 Reuter etc. 1.9 8.9 9.3 PA 1Q Overview Equipment 8.3 • Sales were up year-on-year and against AV previous projections products, 10.3 11.6 12.6 • Discounting the impact of exchange rates karaoke (+¥3.5 billion), actual sa
Slide 8: Electronic Devices 1Q
Electronic Devices 1Q (Billions of yen) Net Net Sales Sales 3.9 4.0 4.6 1Q Overview • Sales were higher than the same period of the FY2013.3* 1Q FY2014.3 1Q FY2014.3 1Q previous year and surpassed previous (previous projections) projections • Geomagnetic sensor and codec product sales were robust Op
Slide 9: Others 1Q
Others 1Q (Billions of yen) Net Net Sales Sales 6.8 6.5 6.3 FA equipment, etc. 1.7 1.8 2.0 Resort 1.3 1.5 1.4 1Q Overview Golf products 1.4 1.5 1.2 • Sales and income declined year-on-year Automobile interior wood 2.4 • Automobile interior wood component sales component 1.7 1.7 decreased, but sales
Slide 10: Outlook for 2-4Q and Full Year
Outlook for 2-4Q and Full Year Outlook Outlook for for 2-4Q 2-4Q Despite expectations of lower distributor inventories in Chinese market and strong sales of new products, the anticipated year-on-year growth rate for musical instrument and audio equipment sales has been revised downward Although
Slide 11: Forecast for Performance in FY2014.3 (Full Year)
Forecast for Performance in FY2014.3 (Full Year) (Billions of yen) Change from FY2014.3 same period Previous Change from FY2013.3 of the the previous Projections Projections projections previous year Net Sales 366.9 408.0 +11.2% 390.0 +4.6% Operating Income 9.2 20.0 +117.0% 18.0 +11.1% (Operating In
Slide 12: FY2014.3 Full Year Forecast for Performance by Business Segment
FY2014.3 Full Year Forecast for Performance by Business Segment Net Sales Change from Operating Income Year-on-year the previous change projections (Billions of yen) (+11.2%) 408.0 (+4.6%) 390.0 366.9 (+4.9%) 25.0 (－) 20.0 Others 25.0 19.0 Others Electronic 23.8 19.0 (+26.3%) (－) 18.0 0.5 0 Electron
Slide 13: FY2014.3 Operating Income Analysis
FY2014.3 1Q Operating Income Analysis (Billions of yen) Versus Versus same same period period of of the the previous previous year year Improvement in Effect of manufacturing structural cost reform 2.6 Increase in 2.5 manufacturing cost Decrease in Impact of actual exchange rate 20.0 -2.7 Increase p
Slide 14: Musical Instruments Full Year Projections
Musical Instruments Full Year Projections (Billions of yen) Net Net Sales Sales 246.5 258.0 235.5 Full Year Projections Music 81.5 81.7 • Sales and income projections have been schools, 81.9 revised due to reconsideration of etc. exchange rates and market conditions Yamaha • The European market is p
Slide 15: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) 30.0 Figures in parentheses show 28.6 (-5%) 1Q 1Q actual year-on-year changes, discounting the impact of exchange rates Music schools, etc. 8.7 (-2%) 9.5 (-9%) 8.9 10.3 (-5%) 7.2 8.3 5.4 (-4%) Yamaha musical 4.4 instruments 11.0 10.3 9.2 8.4 8.0
Slide 16: Audio Equipment Full Year Projections
Audio Equipment Full Year Projections (Billions of yen) Net Net Sales Sales 99.5 106.0 92.6 7.1 Reuter etc. 7.2 6.5 Full Year Projections 43.4 PA 41.1 • Sales and income are expected to rise year- Equipment 37.2 on-year, and operating income will be in line with previous projections AV • Exchange ra
Slide 17: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) 1Q 1Q Figures in parentheses show actual year-on-year changes, (+8%) discounting the impact of (+4%) exchange rates (-17%) (+6%) 6.3 6.4 5.2 5.6 4.4 4.7 (-16%) 4.8 3.7 1.4 1.5 FY13.3* 1Q FY14.3 1Q FY13.3* 1Q FY14.3 1Q FY13.3* 1Q FY14.3 1Q FY13.3* 1Q
Slide 18: Musical Instruments/Audio Equipment: Sales by Major Product Category
Musical Instruments/Audio Equipment: Sales by Major Product Category (Billions of yen) Figures in parentheses show actual year- on-year changes, discounting the impact of Piano Digital Musical Instruments exchange rates 72.4 (+2%) AV Products 46.3 (±0%) 49.4 (+1%) 40.9 62.5 42.4 (+4%) (+3%) 56.3 (+1
Slide 19: Electronic Devices Full Year Projection
Electronic Devices Full Year Projection (Billions of yen) Net Net Sales Sales 19.0 19.0 15.0 Full Year Projections • Sales are expected to increase year-on- year, and aim for a return to profit FY2013.3* FY2014.3 FY2014.3 • Outsourcing of production will proceed (previous (projections) projections)
Slide 20: Others Full Year Projections
Others Full Year Projections (Billions of yen) Net Net Sales Sales 23.8 25.0 25.0 FA equipment, 5.4 6.2 6.3 etc. Resort 5.2 5.7 5.7 Full Year Projections Golf products 5.2 5.8 5.6 • Sales and income are expected to rise Automobile year-on-year interior wood 8.0 7.3 7.4 component • Solid demand for f
Slide 21: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) 15.4 14.8 Others Electronic Devices 13.8 0.8 (13.5) (13.7) 1.0 1.3 Audio Equipment 1.1 (11.6) 1.0 Musical Instruments 1.4 3.1 2.5 3.5 2.6 (2.6) 2.1 (2.9) 0.2 0.1 0.1 10.6 8.9 9.0 0.6 0 0.6 1.8 1.4 FY20
Slide 22: Inventories
Inventories Inventories at the end of the 1Q were ¥10 billion higher than previous year. (discounting the +¥13.1 billion of exchange rate, actual inventories decreased by ¥3.1 billion) Inventories at the end of the fiscal year is forecast to be ¥79.4 billion. (impact of exchange rate: year-on-year
Slide 23: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 1Q As of fiscal year end As of June As of June As of Mar. As of Mar. Change Change 30, 2012 30, 2013 31, 2013 31, 2014 Cash and deposits 48.2 52.1 4.0 51.4 60.7 9.3 Notes and accounts receivable 44.9 52.3 7.4 51.0 55.4 4.4 Inventories 79.9 89.9 10
Slide 24: Appendix
Appendix
Slide 25: First Quarter Non-Operating Income/Loss & Extraordinary Income/Loss
First Quarter Non-Operating Income/Loss & Extraordinary Income/Loss (Billions of yen) FY2013.3 1Q FY2014.3 1Q FY2014.3 1Q previous projections Non-Operating Non-Operating Income/Loss Income/Loss Net financial income 0.3 0.2 0.4 Other -0.8 -0.7 -0.3 Total -0.5 -0.5 0.1 Extraordinary Extraordinary Inc
Slide 26: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss (Billions of yen) FY2013.3 FY2014.3 FY2014.3 previous projections Non-Operating Non-Operating Income/Loss Income/Loss Net financial income 1.1 1.0 1.1 Other -1.7 -2.5 -2.6 Total -0.6 -1.5 -1.5 Gain on sales of Extraordinary Extraordinar
Slide 27: Musical Instruments and Audio Equipment: Sales by Region
Musical Instruments and Audio Equipment: Sales by Region Sales by Region The musical instrument and audio equipment business struggled amid a slow-paced market recovery. Although piano and Electone sales were down year-on-year, demand remained strong for hybrid pianos, especially the NU1 model, and
Slide 28: Quarterly Sales and Income
Quarterly Sales and Income (Billions of yen) 114.0 97.1 97.0 99.5 97.5 90.0 86.8 93.0 8.5 6.2 5.3 Operating 4.3 3.6 Income 2.5 -1.2 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2013.3 Y2014.3 projections 28
Slide 29: Quarterly Sales and Income by Segment
Quarterly Sales and Income by Segment (Billions of yen) Musical Instruments Audio Equipment 58.8 56.2 61.0 59.5 62.6 63.9 70.0 61.5 32.5 27.0 24.1 23.5 25.0 25.0 20.5 21.0 6.5 3.1 4.4 3.1 2.5 1.6 2.2 2.2 2.1 0 1.1 1.2 0.1 0.9 -0.5 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2013.3* FY2014.3
Slide 30: 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
Slide 31: Years of Passion & Performance
125 YEARS OF PASSION & PERFORMANCE