Yamaha Corporation · TSE:7951
Yamaha — Q2 FY2011.3 Earnings Presentation
36 slides from Yamaha's earnings presentation, Nov 1, 2010
Slide 1: Analyst and Investor Briefing on the Second Quarter of FY2011.3
Analyst and Investor Briefing on the Second Quarter of the Fiscal Year Ending March 31, 2011 (FY2011.3) November 1, 2010 YAMAHA CORPORATION
Slide 2: Overview of Performance in the Second Quarter of FY2011.3
Overview of Performance in the Second Quarter of FY2011.3 2Q External Environment Gradual recovery in global economy ・Recovery generally sound in U.S. but patchy in Europe; individual consumption remains subdued in Japan ・B2B business is stable Further strengthening of yen 2Q (July-Sept) Results
Slide 3: Performance in the First Half of FY2011.3
Performance in the First Half of FY2011.3 Net sales were lower than last year’s 1H figures and previous projections (made on July 30), but operating income was higher (Billions of yen) Change from FY2011.3 FY2010.3 FY2011.3 Change same period (1H) FY2011.3 FY2010.3 (1H) (1H) from of the results res
Slide 4: Performance by Business Segment in the First Half of FY2011.3
Performance by Business Segment in the First Half of FY2011.3 Net Sales Operating Income (Billions of yen) (Billions of yen) Others 204.3 (-9.8%) Lifestyle- 184.3 (-3.0%) 190.0 related 12.6 products Electronic 17.9 (+8.1) 13.6 (+0.9) 13.5 9.6 (+6.4) 10.3 (-2.3) 10.5 devices 9.3 AV/IT 24.5 (+3.5) 25.
Slide 5: FY2011.3 1H Operating Income Analysis
FY2011.3 1H Operating Income Analysis Versus same period of the previous year Handover of Increased lifestyle- Overseas Impact of Retirement related Reduction in sales and exchange benefit actual SG&A distribution cost production products increases rates obligations expenses ¥7.1 billion ¥9.3 busine
Slide 6: Business Environment in the Second Half and Full Year Performance Forecast
Business Environment in the Second Half of FY2011.3 and Full Year Performance Forecast Business Environment in the Second Half ■ Gradual market recovery. Hopes for year-end shopping season in the U.S. and European markets ・Gradual recovery in the U.S., patchy demand by country in Europe, strong grow
Slide 7: Forecast for Performance in FY2011.3 (Full Year)
Forecast for Performance in FY2011.3 (Full Year) Full year sales forecast has been revised downward from previous projections, while income forecast has been revised upward (Billions of yen) FY2010.3 results FY2011.309/3予想 new projections FY2011.3 Increase/ previous decrease projections 1H 2H Total
Slide 8: FY2011.3 Full Year Forecast for Performance by Business Segment
FY2011.3 Full Year Forecast for Performance by Business Segment Net Sales Operating Income (Billions of yen) 414.8 (-9.8%) Others 374.0 (-2.9%) 385.0 (Billions of yen) Lifestyle- 27.5 related products 36.9 (-7.1) 25.5 (－) 25.5 Electronic 19.7 (+19.0) 23.5 23.5 (－) devices AV/IT 54.4 (+1.1) 55.0 (-5.
Slide 9: FY2011.3 Full Year Operating Income Analysis
FY2011.3 Full Year Operating Income Analysis Versus previous year Increased actual sales Reduction in Material and Impact of Retirement actual SG&A cost Overseas production ¥11.0 exchange distribution billion benefit expenses increases Effects of ¥9.7 billion ¥6.8 rates cost obligations ¥0.3 billion
Slide 10: Musical Instruments
Musical Instruments 1H Overview Full Year Overview and 2H Priorities • Sales declined year-on-year and against previous projections, but income increased on both counts. • Discounting the impact of exchange rates, actual sales increased by 1% (¥1.7 billion) year-on-year. • Focus on sales to meet yea
Slide 11: Musical Instruments (Sales by Region)
Musical Instruments (Sales by Region) 63.2 (-3%) (Billions of yen) 61.4 First Half Figures in parentheses represent actual year-on-year Music changes, discounting the schools, etc. impact of exchange rates (+4%) (+2%) 26.3 (+4%) 21.9 21.4 22.7 20.7 21.0 (+19%) Yamaha 25.1 7.6 8.5 musical 22.3 21.0 2
Slide 12: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Musical Instrument Sales by Region Japan The musical instrument market remains generally weak, and sales are below targets and the previous year’s results. There is a clear trend toward trading down to low-priced or second-hand products or delaying purchase, espe
Slide 13: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category (Billions of yen) Pianos Japan: Actual demand remains Electone Figures in parentheses show actual weak in a difficult sales year-on-year changes, discounting 40.3 38.6 (+2%) environment. the impact of exchange rates. North America: Sales are picking up
Slide 14: AV/IT
AV/IT 1H Overview Full Year Overview and 2H Priorities • Sales and income increased year-on-year, with operating income • Mass retail market in North America is getting tighter. returning to positive figures. • Expand sales of AV products during period of high demand in year- • Discounting the impac
Slide 15: Electronic Devices
Electronic Devices 1H Overview Full Year Overview and 2H Priorities • Sales and income rose year-on-year. • Build up production structure to meet growing • Sales of sound generators for mobile phones orders for geomagnetic sensors. continued to decline year-on-year, especially outside • Increase sal
Slide 16: Others
Others 1H Overview Full Year Overview and 2H Priorities • Sales and income increased year-on-year. • Respond to demand for steady supply of • Golf product sales were robust, especially in automobile interior wood components. the Korean market. • Steadily launch competitive new golf products. • Produ
Slide 17: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure (Depreciation) (Billions of yen) 1H Full Year 14.5 13.9 13.9 (14.1) (13.8) 0.8 (13.1) 0.71.3 0.6 0.6 7.1 (6.5) 1.2 1.2 5.0 (6.7) 5.5 (6.1) 0.5 0.2 2.2 2.4 Others 1.2 0.2 0.7 0.70.4 Electronic devices 0.70.3 11.7 9.8 9.6 AV/IT Musical
Slide 18: Inventories
Inventories Inventories at the end of September were ¥3.2 billion lower than the same period of the previous year. (After adjusting for the impact of exchange rates and the exclusion of lifestyle- related business from consolidated results, actual inventories were up by ¥2.5 billion). Discounting
Slide 19: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of Fiscal Year End As of End of 1H (2010 actual and 2011 projection) As of Sept. As of Sept. 30, As of Mar. 31, As of Mar. 31, Change Change 30, 2009 2010 2010 2011 Cash and deposits 44.1 51.8 7.6 59.4 59.6 0.2 Notes and accounts receivable 57.9 50.8 -7.1 4
Slide 20: Slide 20
Slide 21: Appendix
Appendix
Slide 22: Slide 22
Slide 23: Performance in the Second Quarter of FY2011.3
Performance in the Second Quarter of FY2011.3 2Q sales were lower than previous projections, but operating income was higher (Billions of yen) Change from Previous FY2010.3 FY2011.3 Changes from (2Q) (2Q) same period of projections for FY2011.3 2Q previous the previous results results (July 30, 201
Slide 24: Performance by Business Segment in the Second Quarter of FY2011.3
Performance by Business Segment in the Second Quarter of FY2011.3 Net Sales Operating Income 104.9 (-11.0%) (Billions of yen) Others 6.2 93.4 (-5.7%) 99.1 Lifestyle- related 9.1 6.4 (+4.5) (+1.9) products 5.0 6.5 5.4 Electronic (+3.1) (-5.0) devices 5.1 13.3 14.5 AV/IT (+0.3) 13.4 (-7.8) 3.9 4.1 0.2
Slide 25: First Half Non-Operating Income/Loss & Extraordinary Income/Loss
First Half Non-Operating Income/Loss & Extraordinary Income/Loss FY2011.3 (1H) FY2010.3 (1H) actual FY2011.3 (1H) actual previous projections (Billions of yen) Non-operating income/loss 0.2 0.5 0.5 Net financial income Other -1.5 -1.4 -1.5 Total -1.3 -0.9 -1.0 Extraordinary income/loss Revaluation l
Slide 26: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2010.3 results FY2011.3 new projections FY2011.3 previous projections (Billions of yen) Non-operating income/loss 0.3 0.5 0.5 Net financial income Other -2.2 -3.0 -3.0 Total -1.9 -2.5 -2.5 •Handover of Yamaha Livingtec -2.2 •Impairmen
Slide 27: 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%) 125.4 120.6 (98%) (95%) (96%) 100 Music schools, etc. 69.0 68.7 69.5 (99%) (100%) (101%) 63.2 61.4 (91%) (97%) 50 52.1 50.6 (101%) (97%) 46.9 Yamaha musical (9
Slide 28: 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%) 500 436 423 (83%) 400 (106%) (92%) 400 259 252 300 (103%) (97%) 238 (94%) 201 215 (84%) (107%) 200 100 0 ) n ro 0 3 .3 .3 .3 .3 .3 .3 .3 .3 .3 io 07 08 09 10 11 07 08 09 10 c
Slide 29: Sales in the German Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the German Market (Millions of euro) 120 100 104 104 99 (104%) 99 (105%) (104%) (102%) (95%) 90 60 43 47 45 46 48 (106%) (103%) (104%) (97%) (95%) 30 0 FY07.3 FY08.3 FY09.3 FY10.3 FY11.3 FY07.3 FY08.3 FY09.3 FY10.3 FY11.3 (projectio
Slide 30: Sales in the Chinese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Chinese Market 1,212 (Millions of yuan) (114%) 1,200 1,059 932 (114%) 1,000 (115%) 808 (119%) 800 670 638 (113%) (118%) 533 600 492 (109%) 417 (118%) 344 (121%) 400 (110%) 200 0 FY07.3 FY08.3 FY09.3 FY10.3 FY11.3 FY07.3 FY08.3 F
Slide 31: Emerging Market Sales
Emerging Market Sales (Billions of yen) Eastern Europe Russia 5% Pianos (-26%) (+23%) (+24%) 27% 6.1 (+12%) Digital musical instruments 2.4 3.3 4.4 4.2 2.0 1.9 45% 2H 2.3 2.1 1.4 1.2 1.4 11% Wind instruments 1H 2.8 2.1 2.1 1.0 0.6 0.7 12% String & percussion FY09.3 FY10.3 FY11.3 FY09.3 FY10.3 FY11.3
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: ¥270.0 billion Operating income: ¥19.2 billion Operating income: ¥5.1 billion Operating income: ¥7.0 billion (Billions of yen) 85.2 81.2 77.7 72.3 71.3 71.4 68.4 68.4 66.6 62.7 62.5 65.2 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: ¥55.0 billion Operating income: -¥0.4 billion Operating income: ¥1.4 billion Operating income: ¥1.0 billion (Billions of yen) 18.8 16.5 16.6 17.4 13.8 13.3 12.5 13.4 11.2 12.0 10.8 9.8 2.0 1.6 Operating 0
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: ¥23.5 billion Operating income: -¥2.5 billion Operating income:-¥0.6 billion Operating income: ¥1.5 billion (Billions of yen) 7.5 7.4 5.6 5.3 5.8 4.7 4.7 5.0 4.8 5.1 5.1 4.2 0.6 0.5 Operating
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: ¥25.5 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 6.3 6.2 6.5 6.5 6.1 1.5 1.5 5.8 0.9 4.5 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