Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2010.3 Earnings Presentation
39 slides from Yamaha's earnings presentation, Feb 4, 2010
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY2010.3
Analyst and Investor Briefing on the Third Quarter of the Fiscal Year Ending March 31, 2010 (FY2010.3) February 4, 2010 YAMAHA CORPORATION
Slide 2: Overview of Performance in the Third Quarter of FY2010.3
Overview of Performance in the Third Quarter of FY2010.3 3Q External Environment Signs that the U.S. economy is bottoming out. Economic slowdown continuing in Europe and Japan. B2B business improving after a round of inventory adjustments. Strong yen providing temporary relief from unfavorable
Slide 3: Performance in the Third Quarter of FY2010.3
Performance in the Third Quarter of FY2010.3 Net sales were lower than initial projections, but operating income was slightly higher. Sales and income both declined year-on-year. (Billions of yen) FY2009.3 FY2010.3 Change from Initial (3Q) (3Q) projections Change from same period of projections ac
Slide 4: Performance by Business Segment in the Third Quarter of FY2010.3
Performance by Business Segment in the Third Quarter of FY2010.3 Net Sales Operating Income 118.9 (-5.3%) 112.5 (-6.7%) 120.6 (Billions of yen) Others Lifestyle- 7.3 7.0 related (+14.9) 8.4 (+19.4) 11.7 products 12.6 4.7 (-19.7) 10.1 (-13.4) 6.1 Electronic devices (+13.5) 5.3 (-12.6) 16.6 17.0 Lifes
Slide 5: Performance in the First Three Quarters of FY2010.3
Performance in the First Three Quarters of FY2010.3 Net sales were lower than initial projections, but income was higher. Sales and income both declined year-on-year. (Billions of yen) FY2009.3 FY2010.3 Change from Initial (13Q) (13Q) projections Change from same period of projections actual act
Slide 6: Performance by Business Segment in the First Three Quarters of FY2010.3
Performance by Business Segment in the First Three Quarters of FY2010.3 Net Sales Operating Income 369.4 Others (-14.2%) 333.1 (Billions of yen) 26.3 316.9 (-4.9%) Lifestyle- related 34.2 19.8 products (-20.4) 21.0 (+5.9) 22.2 Electronic 17.8 33.0 devices (-18.3) 28.0 (-15.2) 46.9 14.9 1.3 (-15.9) 1
Slide 7: FY2010.3 1-3Q Operating Income Analysis
FY2010.3 13Q Operating Income Analysis Effects of restructuring Versus same period ¥3.6 billion of previous year Price increases ¥6.2 billion Material cost Reduced reductions sales and ¥2.7 billion production -¥22.6 billion Impact of exchange rates ¥22.2 Reduction in -¥13.8 actual SG&A billion bill
Slide 8: Business Environment in the Fourth Quarter and Full Year Performance Forecast
Business Environment in the Fourth Quarter of FY2010.3 and Full Year Performance Forecast Business Environment in the Fourth Quarter Ongoing uncertainty associated with delayed economic recovery, especially in developed markets. The high yen has become an established trend. Fourth Quarter Overvi
Slide 9: Business Restructuring
Business Restructuring • Focus on Core Businesses Withdraw from magnesium molded parts business - In principle, production will cease at the end of March, in accordance with initial plans Hand over lifestyle-related products business - Majority of shares to be transferred by March 31, 2010 - Yam
Slide 10: Forecast for Business Performance in the Fourth Quarter of FY2010.3
Forecast for Business Performance in the Fourth Quarter of FY2010.3 Fourth quarter sales and income are expected to be lower than initial projections (Billions of yen) FY2009.3 FY2010.3 Change from Initial (4Q) (4Q) projections Change from same period of projections actual projections previous yea
Slide 11: Forecast for Performance by Business Segment in the Fourth Quarter
Forecast for Performance by Business Segment in the Fourth Quarter of FY2010.3 Net Sales Operating Income 105.9 (Billions of yen) (+6.9%) 96.1 (-9.3%) 89.9 7.2 Others (+44.4) 6.5 (-9.7) 10.0 Lifestyle- 4.5 related (+1.1) 9.0 (-10.0) 7.1 products 8.9 (+19.0) 5.0 Electronic 4.2 (-29.6) 11.8 -8.4 -4.5
Slide 12: Forecast for Performance in FY2010.3 (Full Year)
Forecast for Performance in FY2010.3 (Full Year) Estimated 4Q exchange rates: US$=¥90, EUR=¥127 Full year projections for sales have been revised downward. Operating income projections remain unchanged. (Billions of yen) (%) FY2010.3 FY2010.3 Change 1Q3Q 4Q FY2009.3 Change from (new (initial fr
Slide 13: FY2010.3 Full Year Forecast for Performance by Business Segment
FY2010.3 Full Year Forecast for Performance by Business Segment Net Sales Operating Income 459.3 (-10.1%) 413.0 (-5.9%) 439.0 (Billions of yen) Others 30.9 Lifestyle- related 27.0 products 43.1 (-10.8) 27.5 (+1.9) 43.0 Electronic 22.0 37.0 (-14.0) 13.8 (-14.2) 22.0 devices 56.7 (-9.0) 20.0 (-9.1) AV
Slide 14: Musical Instruments
Musical Instruments 3Q Overview Full Year Overview and 4Q Priorities • Sales and income declined year-on-year and against initial • Full year sales and operating income are expected to projections. be lower than initial projections. • Discounting the impact of exchange rates, actual sales fell • Dis
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 (-10%) 48.5 42.0 (-6%) 67.1 53.7 Japan 10.1 9.4 (-4%) 9.9 10.5 (±0%) 10.6 21.0 132.6 10.7 (+7%) 13Q 16.9 (-18%) 122.7 (-7%) 15
Slide 16: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Musical Instrument Sales by Region Japan Sales of mid-range and high-end keyboard instruments are sluggish as consumers continue to seek low-priced products. Although demand for upright pianos was boosted by pending orders and new silentTM models, grand pianos ar
Slide 17: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category (Billions of yen) Figures in parentheses Pianos Digital Musical show actual year-on-year change, discounting the impact of exchange rates Instruments 4Q 44.9 69.5 (-5%) 40.1 (-5%) 60.3 8.7 11.8 8.8 (-1%) 12.3 (+2%) 13Q 36.2 31.3 (-5%) 57.7 48.0 (-7%) F
Slide 18: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category Musical Instrument Sales by Product Category Pianos Grand pianos are lagging in Japan, and sales are down year-on-year. Asian sales are also below last year’s figures as the Korean sales are not yet recovering. In Europe, as well as deteriorating econom
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. Operating initial projections. income is predicted to move into positive figures. • Discounting the impact of exchange rates, actual sales • Discou
Slide 20: Electronic Devices
Electronic Devices 3Q Overview Full Year Overview and 4Q Priorities • Sales and income both increased year-on-year. • Sales are projected to be lower than initial Sales were lower than initial projections, but projections, chiefly due to product income was higher. development delays. However, operat
Slide 21: Lifestyle-Related Products
Lifestyle-Related Products 3Q Overview Full Year Overview and 4Q Priorities • Sales and income declined year-on-year and • Downward revision of initial projections for full against initial projections. year sales and operating income. • Although fewer new housing starts led to a sharp • Continue to
Slide 22: Others
Others 3Q Overview Full Year Overview and 4Q Priorities • Sales and income increased year-on-year and against • Upward revision of initial projections. Aim to achieve initial projections. operating profit. • Production in the components business, including • Lower the break-even point for automobile
Slide 23: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure (Depreciation) Full Year 13Q 22.6 (Billions of yen) 15.4 3.1 18.3 (17.9) 15.9 Others (13.6) 3.2 1.8 2.4 1.5 1.2 (14.2) 1.0 (15.2) Electronic 1.0 1.9 devices 1.3 7.7 (10.3) 0.7 1.5 AV/IT 0.6 0.6 14.8 Musical 10.7 1.0 12.5 13.6 instrum
Slide 24: Inventories
Inventories Discounting the impact of exchange rates, actual inventories at the end of December were ¥11.3 billion lower than at the same period of the previous year and ¥3.8 billion lower than initial projections. Actual inventories at March 31, 2010 are projected to be ¥3.4 billion lower than
Slide 25: Balance Sheet Summary Forecast
Balance Sheet Summary Forecast (Billions of yen) As of end of 3Q Full year projections As of Dec. 31, As of Dec. 31, As of Mar. 31, As of Mar. 31, Change Change 2008 2009 2009 2010 Cash and deposits 40.8 46.6 5.8 41.4 52.4 11.0 Notes and accounts 66.0 63.6 -2.4 50.5 55.9 5.4 receivable Inventories 8
Slide 26: Slide 26
Slide 27: Appendix
Appendix
Slide 28: Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss
Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss FY2009.3 (3Q) FY2010.3 (3Q) FY2010.3 (3Q) actual actual initial projections (Billions of yen) Non-operating income/loss Net financial income 0.1 0.1 -0.1 Other -1.3 -0.5 -0.9 Total -0.4 -1.0 -1.2 Extraordinary income/loss Income fro
Slide 29: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2009.3 FY2010.3 FY2010.3 actual new projections initial projections • Yamaha Motor Co., Ltd. dividend 1.1 (Billions of yen) Non-operating income/loss Net financial income 2.0 0.3 0 Other -3.8 -2.3 -3.0 Total -1.8 -2.0 -3.0 • Impairmen
Slide 30: 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) 136.8 136.5 150 (98%) 135.0 132.6 (100%) (99%) (98%) 122.7 (93%) 102.9 102.2 101.8 100.7 (96%) (99%) (100%) (99%) 91.4 100 (91%) Music schools, etc. 50 51.7 52.1 50.6 40.4 38.5 39.2 46.9 40.0 Ya
Slide 31: 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$) 600 555 544 (104%) (98%) 526 (97%) 500 417 436 399 389 (83%) (106%) (103%) 393 (97%) (91%) 400 332 (85%) 304 (91%) 300 200 100 0 FY06.3 FY07.3 FY08.3 FY09.3 FY10.3 FY06.3 FY07.3 FY08.3 FY09.3 FY10.3
Slide 32: 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) 120 100 104 99 95 99 (104%) (102%) (96%) 85 (101%) (104%) 82 82 90 76 80 (104%) (105%) (103%) (96%) (100%) 60 30 0 FY06.3 FY07.3 FY08.3 FY09.3 FY10.3 FY06.3 FY07.3 FY08.3 FY09.3 FY10.3 (projectio
Slide 33: Musical Instrument and Pro Audio Sales in the Chinese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Chinese Market (Millions of yuan) 1,200 1035 (111%) 932 1,000 (115%) 802 808 (119%) (115%) 800 700 679 628 (111%) 599 (113%) (120%) (109%) 600 458 524 (114%) (109%) 400 200 0 FY 06.3 FY 07.3 FY 08.3 FY 09.3 FY 10.3 FY 06.3 FY 07
Slide 34: Musical Instruments: Sales and Income by Quarter
Musical Instruments: Sales and Income by Quarter Net sales: ¥340.0 billion Net sales: ¥306.6 billion Net sales: ¥275.0 billion Operating income: ¥27.9 billion Operating income: ¥19.2 billion Operating income: ¥5.5 billion 93.0 88.8 85.2 (Billions of yen) 82.0 81.2 77.7 76.2 71.3 71.4 68.4 Other 62.5
Slide 35: AV/IT: Sales and Income by Quarter
AV/IT: Sales and Income by Quarter Net sales: ¥70.8 billion Net sales: ¥56.7 billion Net sales: ¥53.5 billion Operating income: ¥1.8 billion Operating income: -¥0.4 billion Operating income: ¥1.0 billion (Billions of yen) 22.9 18.5 17.4 15.2 16.5 16.6 14.2 13.8 13.3 11.2 11.6 9.8 1.9 2.0 Operating 1
Slide 36: Electronic Devices: Sales and Income by Quarter
Electronic Devices: Sales and Income by Quarter Net sales: ¥45.0 billion Net sales: ¥22.0 billion Net sales: ¥20.0 billion Operating income: ¥1.9 billion Operating income: -¥2.5 billion Operating income: -¥0.5 billion (Billions of yen) 14.4 13.5 4.7 4.5 Electronic Metals 9.7 9.0 8.9 8.2 7.5 Semi- 5.
Slide 37: Lifestyle-Related Products: Sales and Income by Quarter
Lifestyle-Related Products: Sales and Income by Quarter Net sales: ¥45.5 billion Net sales: ¥43.1 billion Net sales: ¥37.0 billion Operating income: ¥0.6 billion Operating income: -¥0.3 billion Operating income: ¥0 billion (Billions of yen) 12.1 12.6 11.4 11.5 10.5 10.5 11.1 10.1 8.9 8.8 9.1 9.0 Ope
Slide 38: Others: Sales and Income by Quarter
Others: Sales and Income by Quarter Net sales: ¥47.4 billion Net sales: ¥30.9 billion Net sales: ¥27.5 billion Operating income: ¥0.6 billion Operating income: -¥2.1 billion Operating income: ¥0 billion (Billions of yen) 13.3 12.1 11.3 10.7 4.7 1.5 10.3 4.0 1.2 1.8 8.8 8.4 1.7 7.3 6.0 6.3 6.3 1.3 1.
Slide 39: Forward-looking statements caution
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