Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2011.3 Earnings Presentation
36 slides from Yamaha's earnings presentation, Feb 4, 2011
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY2011.3
Analyst and Investor Briefing on the Third Quarter of the Fiscal Year Ending March 31, 2011 (FY2011.3) February 4, 2011 YAMAHA CORPORATION
Slide 2: Overview of Performance in the Third Quarter of FY2011.3
Overview of Performance in the Third Quarter of FY2011.3 3Q External Environment While economic activity remains subdued in Japan, the gradual recovery of the global economy as a whole continues. Yen continues to be strong. 3Q (Oct-Dec) Results Sales declined year-on-year, but income rose. Sal
Slide 3: Performance in the Third Quarter of FY2011.3
Performance in the Third Quarter of FY2011.3 Net sales declined year-on-year and against previous projections, but income increased. (Billions of yen) FY2010.3 FY2011.3 Change from Previous （3Q） （3Q） projections Change from same period of projections actual actual previous year (Oct. 29, 2010) Net
Slide 4: Performance by Business Segment in the Third Quarter of FY2011.3
Performance by Business Segment in the Third Quarter of FY2011.3 Net sales Operating Income 112.5 (Billions of yen) (-10.2%) 101.1 (-1.6%) 102.7 Others 8.4 Lifestyle- (-29.3) 5.9 (+1.8) 5.8 related 10.1 products 5.3 (-2.2) 5.2 (-10.1) 5.8 Electronic devices 17.4 (+10.2) 19.1 (+1.8) 18.8 AV/IT 6.4 7.
Slide 5: Performance in the First Three Quarters of FY2011.3
Performance in the First Three Quarters of FY2011.3 Net sales declined year-on-year and against previous projections, but income increased. (Billions of yen) FY2010.3 FY2011.3 Change from Previous projections Change from (1-3Q) (1-3Q) same period of projections actual actual previous year (Oct. 29,
Slide 6: Performance by Business Segment in the First Three Quarters of FY2011.3
Performance by Business Segment in the First Three Quarters of FY2011.3 Net sales Operating Income (Billions of yen) 316.9 (-9.9%) Others 285.4 (-0.5%) 287.0 Lifestyle- 21.0 related 28.0 (-6.8) 19.5 (+0.7) 19.4 products Electronic 15.0 (+3.3) 15.5 (-3.9) 16.1 devices 41.9 (+6.3) 44.5 (+0.8) 44.2 16.
Slide 7: FY2011.3 First Three Quarters Operating Income Analysis
FY2011.3 First Three Quarters Operating Income Analysis Versus same period of previous year Increased actual sales Impact of Retirement and exchange benefit production rates obligations ¥11.1 billion ¥16.3 Effects of billion -¥4.2 billion ¥0.8 billion Handover of restructuring Increase in ¥10.5 life
Slide 8: Business Environment in the Fourth Quarter and Full Year Forecast
Business Environment in the Fourth Quarter of FY2011.3 and Full Year Performance Forecast Business Environment in the Fourth Quarter Gradual recovery continues in the developed markets of Europe and the U.S. Steady growth in China and other emerging markets Ongoing strong yen Fourth Quarter Ov
Slide 9: Forecast for Business Performance in the Fourth Quarter of FY2011.3
Forecast for Business Performance in the Fourth Quarter of FY2011.3 Fourth quarter sales are expected to be higher than previous projections, but income is projected to be lower. (Billions of yen) FY2010.3 FY2011.3 Change from Previous (4Q) (4Q) projections Change from same period of projections ac
Slide 10: Forecast for Performance by Business Segment in the Fourth Quarter
Forecast for Performance by Business Segment in the Fourth Quarter of FY2011.3 Net sales Operating Income (Billions of yen) 97.9 (-10.5%) Others 87.6 (+0.7%) 87.0 Lifestyle- 6.5 related (±0) products 8.9 6.5 (+6.6) 6.1 Electronic 4.8 (+25.9) 6.0 devices (-18.9) 7.4 AV/IT 12.5 -3.7 -3.8 -2.5 (+4.0) 1
Slide 11: Forecast for Performance in FY2011.3 (Full Year)
Forecast for Performance in FY2011.3 (Full Year) Estimated 4Q exchange rates: US$=¥85, EUR=¥110 Full year sales projection has been revised slightly downward. Operating income projection has been revised upward by ¥1.5 billion. (Billions of yen) FY2011.3 FY2011.3 FY2011.3 Change from Change from F
Slide 12: FY2011.3 Full Year Forecast for Performance by Business Segment
FY2011.3 Full Year Forecast for Performance by Business Segment Net sales Operating Income 414.8 (-10.1%) (Billions of yen) Others Lifestyle- 27.5 373.0 (-0.3%) 374.0 related products 36.9 (-5.3) 26.0 (+2.0) 25.5 Electronic 19.7 (+8.9) 21.5 (-8.5) 23.5 devices ＡV/IT 54.4 (+5.7) 57.5 (+4.5) 55.0 12.5
Slide 13: FY2011.3 Full Year Projections Operating Income Analysis
FY2011.3 Full Year Projections Operating Income Analysis Versus previous year Increased actual sales Handover of and lifestyle- production Reduction in Impact of related Retirement products actual SG&A Material Overseas ¥11.4 billion ¥12.5 exchange cost distribution benefit business expenses increas
Slide 14: Musical Instruments
Musical Instruments 3Q Overview Full Year Overview and 4Q Priorities • Sales declined and income rose, both year-on-year and •Full year sales are expected to be lower than previous against previous projections. projections, but operating income is likely to exceed • Discounting the impact of exchang
Slide 15: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) Figures in parentheses show North America Europe actual year-on-year change, discounting the impact of exchange rates 42.1 40.9 (+4%) 53.0 47.6 (+5%) Japan 9.5 9.2 (+4%) 9.8 9.4 (+9%) 125.4 10.7 10.3 (+4%) 16.9 15.5 (+9%) 122.4 (-2%) (+4%) 11.7
Slide 16: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Musical Instrument Sales by Region Sales of all products except electronic drums and professional audio equipment still face tough conditions. Prices have fallen further for digital pianos and portable keyboards, and competition is fierce. Although wind Japan ins
Slide 17: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category (Billions of yen) Figures in parentheses show Pianos Digital Musical actual year-on-year change, discounting the impact of Instruments exchange rates (+6%) Figures for Digital Musical Instruments 40.3 60.9 57.2 38.7 (+2%) 12.9 and Professional Audio Equ
Slide 18: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category Musical Instrument Sales by Product Category Although Japan faces a struggle as demand continues to stagnate, sales of upright pianos are driving a recovery in Europe. Moderately priced player piano Disclavia are Pianos selling well in North America. Si
Slide 19: AV/IT
AV/IT 3Q Overview Full Year Overview and 4Q Priorities • Sales and income increased year-on-year and against • Upward revision of full year projections. Sales and previous projections. operating income are expected increase year-on- • Discounting the impact of exchange rates, actual year and against
Slide 20: Electronic Devices
Electronic Devices 3Q Overview Full Year Overview and 4Q Priorities • Sales and income are projected to be lower than • Although sales were on a par with the same period previous projections, due to factors including the of the previous year, income declined. Sales were decline in the pachinko-relat
Slide 21: Others
Others 3Q Overview Full Year Overview and 4Q Priorities • Sales declined year-on-year, due to withdrawal from •Sales are projected to be higher than previous magnesium molded parts business. Sales and projections. income were both higher than previous projections. •Lower the break-even point for aut
Slide 22: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure (Depreciation) Full Year (Billions of yen) 1-3Q 14.5 13.9 0.8 (14.1) 11.8 (12.8) 0.6 (13.1) 7.7 (10.3) 7.4 (9.4) 0.7 1.2 Others 1.3 0.4 0.2 1.0 2.2 Electronic 0.6 1.4 0.6 0.6 devices 1.0 0.8 AV/IT 11.7 9.8 Musical 5.5 5.8 9.0 instrume
Slide 23: Inventories
Inventories Excluding the impact of exchange rates and handover of lifestyle-related products business, actual inventories at the end of December were ¥3.9 billion higher than at the same period of the previous year. Discounting the impact of exchange rates, they were ¥3.5 billion higher than previ
Slide 24: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 3Q Full year projections As of Dec. As of Dec. 31, As of Mar. 31, As of Mar. 31, Change Change 31, 2009 2010 2010 2011 Cash and deposits 46.6 49.6 3.0 59.4 52.3 -7.1 Notes and accounts receivable 63.6 54.8 -8.8 47.4 46.8 -0.6 Inventories 74.5 71.4
Slide 25: Appendix
Appendix
Slide 26: Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss
Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss FY2010.3 (3Q) FY2011.3 (3Q) FY2011.3 (3Q) actual actual previous projections (Billions of yen) Non-operating income/loss Net financial income 0.1 0.1 0 Other -0.5 -1.2 -1.1 Total -0.4 -1.1 -1.1 Extraordinary income/loss Income from
Slide 27: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2010.3 actual FY2011.3 new FY2011.3 previous projections projections (Billions of yen) Non-operating income/loss Net financial income 0.3 0.5 0.5 Other -2.2 -3.0 -3.0 Total -1.9 -2.5 -2.5 Extraordinary income/loss Income from (loss on
Slide 28: Musical Instrument and Pro Audio Sales in the Japanese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Japanese Market (Billions of yen) 150 136.5 135.0 132.6 (100%) (99%) (98%) 125.4 122.4 (95%) (98%) 102.2 101.8 100.7 (99%) (100%) (99%) 91.4 90.2 100 (91%) (99%) Music schools, etc. 50 52.1 50.6 46.9 Yamaha 38.5 39.2 (101%) (97%
Slide 29: Musical Instrument and Pro Audio Sales in the U.S. Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the U.S. Market (Millions of US$) 600 544 526 (98%) (97%) 500 436 399 (83%) 390 413 389 (89%) (103%) (106%) 400 (97%) 332 318 (85%) 297 (107%) (89%) 300 200 100 0 FY07.3 FY08.3 FY09.3 FY10.3 FY11.3 FY07.3 FY08.3 FY09.3 FY10.3 FY11.3
Slide 30: Musical Instrument and Pro Audio Sales in the German Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the German Market (Millions of euro) 120 104 99 100 102 (104%) 99 (103%) (104%) (102%) 84 (96%) 80 82 81 82 (105%) (103%) 90 (102%) (96%) (102%) 60 30 0 FY07.3 FY08.3 FY09.3 FY10.3 FY11.3 FY07.3 FY08.3 FY09.3 FY10.3 FY11.3 (projecti
Slide 31: Musical Instrument and Pro Audio Sales in the Chinese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Chinese Market (Millions of RMB) 1,400 1,233 (114%) 1,081 1,200 957 932 (116%) 1,000 810 (116%) (115%) 808 700 (116%) (119%) 679 800 628 (111%) 524 (113%) (120%) (114%) 600 400 200 0 FY07.3 FY08.3 FY09.3 FY10.3 FY11.3 FY07.3 FY0
Slide 32: Musical Instruments: Sales and Income by Quarter
Musical Instruments: Sales and Income by Quarter Net sales: ¥306.6 billion Net sales: ¥276.3 billion Net sales: ¥268.0 billion Operating income: ¥19.2 billion Operating income: ¥5.1 billion Operating income: ¥8.0 billion (Billions of yen) 85.2 81.2 77.7 71.3 71.4 68.4 70.8 68.4 66.6 65.2 62.1 62.5 O
Slide 33: AV/IT: Sales and Income by Quarter
AV/IT: Sales and Income by Quarter Net sales: ¥56.7 billion Net sales: ¥54.4 billion Net sales: ¥57.5 billion Operating income: -¥0.4 billion Operating income: ¥1.4 billion Operating income: ¥2.0 billion (Billions of yen) 19.1 16.5 16.6 17.4 13.8 13.3 12.5 13.4 13.0 11.2 12.0 9.8 2.0 2.3 0.7 1.1 Ope
Slide 34: Electronic Devices: Sales and Income by Quarter
Electronic Devices: Sales and Income by Quarter Net sales: ¥22.0 billion Net sales: ¥19.7 billion Net sales: ¥21.5 billion Operating income: -¥2.5 billion Operating income: -¥0.6 billion Operating income: ¥1.0 billion (Billions of yen) 7.5 5.6 6.0 5.0 5.3 4.8 5.1 5.1 5.2 4.7 4.7 4.2 0.6 0.5 0.4 0.1
Slide 35: Others: Sales and Income by Quarter
Others: Sales and Income by Quarter Net sales: ¥30.9 billion Net sales: ¥27.5 billion Net sales: ¥26.0 billion Operating income: -¥2.1 billion Operating income: ¥0.5 billion Operating income: ¥1.5 billion (Billions of yen) 10.3 1.8 8.8 8.4 1.7 7.3 7.1 1.3 6.5 6.3 6.2 6.5 6.5 1.5 5.9 0.9 1.5 1.0 1.6
Slide 36: 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