Yamaha Corporation · TSE:7951
Yamaha — FY2014 Earnings Presentation
39 slides from Yamaha's earnings presentation, May 1, 2014
Slide 1: Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2014
Y Yamaha h Corporation C ti Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2014 (FY2014.3) May 1, 2014
Slide 2: Overview of Performance in FY2014.3
Overview of Performance in FY2014.3 Results Summary Full year sales increased year-on-year, year on year and operating operating, ordinary, ordinary and net income all rose sharply Fourth quarter results were much higher than previous projections Musical instrument sales exceeded previous projec
Slide 3: Performance in FY2014.3
Performance in FY2014.3 ■Sales and income increased substantially against the previous year (Billions of yen) Changes from FY2014.3 Changes from FY2014.3 same FY2013 3 FY2013.3 period of the previous previous results previous year projection projections Net Sales 366.9 410.3 +11.8% 408.0 +0.6% Opera
Slide 4: Performance by Business Segment in FY2014.3
Performance by Business Segment in FY2014.3 Net Sales Change from the previous Operating Income Year-on-year change projections (Billions of yen) 408 0 (11.8%) 408.0 (11 8%) 410.3 410 3 ((0.6%)) 26.0 26 0 ■Others 366.9 24.0 (-0.6%) 23.7 (-1.3%) 0.8 ■Electronic ■Others (-5.9%) 22.0 Devices 23.8 20.0
Slide 5: FY2014.3 Operating Income Analysis
FY2014.3 Operating Income Analysis Improvement (Billi (Billions off yen)) Effect of in Versus same period of the previous year structural manufacturing reform cost Impact of +¥2.7 26.0 g exchange +¥2.3 rates Increase in +¥13.7 labor cost Actual at overseas Impact of Actual decrease in factories guit
Slide 6: Musical Instruments
Musical Instruments (Billi (Billions off yen)) ■Net Sales ■Operating Income 4Q 4Q Overview 59 5 59.5 61.8 6 8 65.7 • Sales and income both rose year year-on-year on year and Music exceeded previous projections schools, 20.4 21.3 etc. 20.9 • Strong sales of digital musical instruments • In Japan, the
Slide 7: Musical Instruments Sales by Region
Musical Instruments Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, (100%) 108.0 107.6 discounting the impact of exchange rates 4Q 26.7 29.2 ((109%)) 3Q 25.9 25.6 25 6 (99%) 45.5 (98%) 43.2(97%) 2Q 33.4 40.8 (101%) 37.6 36.7 25 4 24.2 25.4 24 2 (95%) 98 9.8
Slide 8: Audio Equipment
Audio Equipment (Billi (Billions off yen)) ■■■Net Sales 4Q ■Operating Income 4Q Overview • Sales increased year year-on-year on year and were in line with 24.1 26 1 26.1 26 1 26.1 previous projections ICT devices 2.2 2.3 • In North America and Europe, AV products 1.8 struggled compared to the previo
Slide 9: Audio Equipment Sales by Region
Audio Equipment Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, discounting the impact of 28 6 28.6 exchange rates (97%) 23.3 24.6 24.6(100%) 25.1 (98%) 21.3 (103%) (92%) 4Q 17.4 20.6 (122%) (89%) (94%) (107%) 3Q (104%) (87%) (100%) (97%) 2Q (98%) 6.0 6.6 (
Slide 10: Musical Instruments/Audio Equipment: Sales by Major Product Category
Musical Instruments/Audio Equipment: Sales by Major Product Category (Billions of yen) Musical Instruments Audio Equipment Piano Digital Musical Instruments AV Products (excl. parts) 48.1 ((101%)) 76.7 (104%) 40 9 40.9 (97%) 62.5 18.1 49.2 (110%) 4Q (110%) 42.4 15.1 (93%) 10.3 24.5 (106%) 3Q (103%)
Slide 11: Electronic Devices
Electronic Devices (Billi (Billions off yen)) ■Net Sales ■Operating Income 4Q 4Q Overview • Sales were up year year-on-year, on year, but below previous projections • Sales of components for amusement equipment and geomagnetic sensors for smart phones were lower than expected 52 5.2 4.0 3.7 • Operat
Slide 12: Others
Others (Billi (Billions off yen)) ■■■■Net Sales 4Q ■Operating Income 4Q Overview 57 5.7 62 6.2 59 5.9 • Sales increased year year-on-year, on year, but were lower than previous projections 1.4 1.2 FA equipment, etc. 1.3 • Resort guest numbers were lower than Resort 1.0 1.1 1.1 anticipated G lf produ
Slide 13: Forecast for Performance in FY2015.3
Forecast for Performance in FY2015.3 ■Sales and income are forecast to increase year-on-year (Billions of yen) Year-on-year y FY2014.3 FY2014 3 FY2015.3 FY2015 3 Increase/ percentage results projections decrease change Net Sales 410.3 430.0 +19.7 19.7 +4.8% 4.8% Operating Income 26.0 29.0 (Operating
Slide 14: Forecast for Performance by Business Segment in FY2015.3
Forecast for Performance by Business Segment in FY2015.3 (Billions of yen) Net Sales Operating Income Year-on-year change 430 0 430.0 410.3 (+4.8%) ■Others 26.0 (+9.8%) 29.0 ■Electronic 23.7 19.0 18.8 (+0.9%) ■Others Devices 26.0 05 0.5 ■El t ■Electronic i 0.5 ■Audio 105.5 112.0 (+6.2%) 0.8 Devices
Slide 15: FY2015.3 Sales and Operating Income Analysis
FY2015.3 Sales and Operating Income Analysis (Billi (Billions off yen)) Sales Actual increase in sales 430.0 N New +¥9.3 ¥9 3 consolidations Impact of +¥12.8 exchange rates -¥2.4 410.3 FY2014.3 FY2015.3 projections Operating Income Actual Impact p of Actual exchange increase in increase in sales and
Slide 16: Musical Instruments (projections)
Musical Instruments (projections) (Billi (Billions off yen)) Net Sales 262.3 273.0 Full Year Projections • Sales and income are expected to rise year-on- Music 80.6 78.9 schools, year (including consolidation of newly acquired etc. Li 6, Line 6 Inc.) I ) • Steady sales are anticipated in developed Y
Slide 17: Musical Instruments Sales by Region
Musical Instruments Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, 107.6 105.1 105 1 discounting the impact of exchange rates (98%) 4Q 29.2 26.6 (91%) 3Q 25 6 26.2 25.6 26 2 (106%) (102%) 49.6 (122%) 40.8 45.5 46.7 (102%) 43.2 44.7 2Q (109%) 24 2 25.1 24.2
Slide 18: Audio Equipment (projections)
Audio Equipment (projections) (Billi (Billions off yen)) Net Sales 105 5 105.5 112.0 Full Year Projections ICT devices 7.8 13.6 • Sales are projected to rise year-on-year, while operating income will remain steady (including consolidation lid ti off newly l acquired i d Revolabs, R l b Inc.) I ) PA
Slide 19: Audio Equipment Sales by Region
Audio Equipment Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, discounting the impact of exchange rates 28.6 30.0 (105%) 26.9 (108%) 24.6 24.1(98%) 25.1 6.5 (105%) 65 6.5 (105%) 4Q 5.8(106%) 20.6 21.1 5.7 (100%) 7.7 7.7 10 0(110%) 10.0 4.7 4 7(102%) 4.7 9.
Slide 20: Musical Instruments/Audio Equipment: Sales by Major Product Category
Musical Instruments/Audio Equipment: Sales by Major Product Category (Billions of yen) Musical Instruments Audio Equipment Piano Digital Musical Instruments AV Products (excl. parts) 48.1 47.4 (100%) 81.7 (107%) 76.7 49.2 49 9 (102%) 49.9 4Q 12.6 11.7 (96%) 17.5 (100%) 18.1 10.3 9.9 (99%) 3Q 12.6 12
Slide 21: M&A Development
M&A Development Announced acquisition (100% ownership) of Line 6, Inc. (a U.S. musical instruments and audio equipment manufacturer) in December 2013, and Revolabs, Inc. (a U.S. provider of wireless audio di solutions) l ti ) iin M March h 2014 Has a solid reputation in the Built B ilt market k t
Slide 22: Key Products in FY2015.3
Key Products in FY2015.3 Another progress in the digital musical instruments with leading-edge technology and brand new concept unit ElectoneTM electronic organ STAGEATM ELS 02C custom ELS-02C t model d l ELS 02 standard ELS-02 t d d model d l JPY980,000 (excl. tax) JPY650,000 (excl. tax) current mo
Slide 23: Key Products in FY2015.3
Key Products in FY2015.3 Digital piano incorporated with superb sounds of two different concert grand pianos Clavinova digital piano CLP series Carries true tonal characters of concert grand pianos Clavinova Cl i CLP-545WA CLP 545WA White ash JPY215,000 (excl. tax) Yamaha CFX grand piano (left) and
Slide 24: Key Products in FY2015.3
Key Products in FY2015.3 Music production synthesizer with the latest sound engine and rich sound production function The music production synthesizers MOXF6 and MOXF8 Music production synthesizers MOXF6 and MOXF8 (discretionary price) A trumpet carrying an international artist’s deep musical sensit
Slide 25: Key Products in FY2015.3
Key Products in FY2015.3 Renewing a lineup of acoustic guitars with A.R.E. wood reforming technology The acoustic guitar L series A modified non-scalloped bracing pattern Acoustic guitar LL36 ARE ((traditional model on the left,, and the new JPY360 000 (excl. JPY360,000 ( l tax) t ) model on the rig
Slide 26: Key Products in FY2015.3
Key Products in FY2015.3 Mixers with an intuitive easy-to-use interface with superior sound quality and reliable construction The mixing console MG series Product release started from Februaryy 2014 A compact mixing console with core futures and performance inherited from the industry leading standa
Slide 27: Key Products in FY2015.3
Key Products in FY2015.3 A unique designer sound system of light and music, blending into one Relit lighting audio system LSX-700 Lighting and audio system LSX-700 Black on the left and brown on the right JPY70,000 (excl. tax) 11.2-channel AV preamplifier and power amplifier at the pinnacle of the A
Slide 28: Electronic Devices (projections)
Electronic Devices (projections) (Billi (Billions off yen)) Net Sales Full Year Projections • Sales and income are both likely to be generally on a par with the previous year • Although use of geomagnetic sensors will 18 8 18.8 19 0 19.0 increase, unit prices are projected to fall • Demand from buye
Slide 29: Others (projections)
Others (projections) (Billi (Billions off yen)) Net Sales Full Year Projections 26 0 26.0 23.7 • Sales and income are expected to increase year- 6.9 on-year FA equipment, etc. 5.6 • Factory automation equipment, golf, and resort Resort 5.2 5.5 sales are projected to rise Golf products • Sales of aut
Slide 30: Inventories
Inventories Inventories at the end of the fiscal year (March 31, 2014) were ¥82.7 billion (previous projections were ¥81.0 billion) Actual inventories decreased excluding the impact of exchange rates (forex impact of +¥5.1 billion versus previous year, and +¥2.0 billion versus the previous projecti
Slide 31: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billi (Billions off yen)) Capital Expenditure (Depreciation) 13.8 (12.8) 13.8 (11.6) 10.8 (12.8) ■ Others 1.1 1.0 14 1.4 0.8 0 8 1.2 ■Electronic Devices 2.5 * 0.2 2.4 ■ Audio Equipment 2.8 ■ Musical 8.9* 9.6 6.6 Instruments FY2013.3* FY2014.3 FY2015.3 p
Slide 32: Balance Sheet Summary
Balance Sheet Summary (Billi (Billions off yen)) As of March 31, 2015 As of March 31, 2013 As of March 31, 2014 projections Cash and deposits 51.4 60.6 76.2 Notes and accounts receivable 51.0 56.7 57.3 I Inventories t i 82 0 82.0 82 7 82.7 84 4 84.4 Other current assets 13.5 14.5 14.5 Fixed assets 1
Slide 33: Key Financial Figures
Key Financial Figures (Billions of yen) FY2011.3 FY2012.3 FY2013.3 FY2014.3 FY2015.3 FY2016.3 (projections) Mid term target Mid-term Net Sales 373.9 356.6 366.9 410.3 430.0 430.0 Operating Income 13.2 8.1 9.2 26.0 29.0 30 0 30.0 (Operating Income Ratio) (3.5%) (2.3%) (2.5%) (6.3%) (6.7%) (7.0%) ROE
Slide 34: Return to Shareholders
Return to Shareholders Annuall cash A h dividends di id d for f FY2014.3 FY2014 3 have h been b revised i d upward d to t ¥27, an increase of ¥4.5 from the previous announcement Annual dividends for FY2015.3 is forecast to be ¥27 47.0 50 38.6 Payout Ratio (%) 26 1 26.1 42 5 42.5 22.8 24.9 16.6 An
Slide 35: Appendix
Appendix
Slide 36: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2013.3 full year FY2014.3 full year FY2015.3 full year (Billions of yen) projections Non-Operating Income/Loss Net financial income 1.1 2.6 1.6 Other -1.7 -2.5 -2.6 T t l Total -0.6 06 01 0.1 -1.0 10 Gain on sales of investment securi
Slide 37: Quarterly Sales and Income
Quarterly Sales and Income (Billi (Billions off yen)) 120 0 120.0 111.0 106.0 100.7 101.6 100.5 103.5 97.0 7.5 9.1 9.5 10.5 6.2 6.0 3.2 3.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2014.3 FY2015.3 p projections j 37
Slide 38: Quarterly Sales and Income by Segment
Quarterly Sales and Income by Segment (Billi (Billions off yen)) Musical Instruments Audio Equipment 74.0 64.33 69.8 62 6 64 62.6 69 8 65.6 65 6 65.00 69.0 65 69 0 65 0 65.0 30.6 34 0 34.0 26.1 24.5 26.5 27.0 23.5 25.3 6.3 7.5 7.0 44 4.4 52 5.2 38 3.8 55 5.5 27 2.7 30 3.0 2.0 0.9 1.7 0.6 0.5 2.0 0.5
Slide 39: In this report, the figures forecast for the Company’s future performance have been calculated
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