Yamaha Corporation · TSE:7951
Yamaha — FY2011 Earnings Presentation
37 slides from Yamaha's earnings presentation, May 10, 2011
Slide 1: Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2011
Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2011 (FY2011.3) May 10, 2011 YAMAHA CORPORATION
Slide 2: Overview of Performance in FY2011.3
Overview of Performance in FY2011.3 External Environment ■ Recovery trend in the developed markets of Europe and North America. Ongoing steady growth in emerging markets. ■ Personal consumption remains sluggish in Japan. ■ Continuing strong yen. Results Summary ■ Full year sales were down year-on-ye
Slide 3: Performance in FY2011.3
Performance in FY2011.3 Sales declined year-on-year, but operating income increased. Both sales and operating income were higher than previous projections. (Billions of yen) FY2010.3 FY2011.3 Increase/ Previous projections Change from results results Decrease (Feb. 3, 2011) projections Net sales 41
Slide 4: Performance by Business Segment in FY2011.3
Performance by Business Segment in FY2011.3 Net Sales Operating Income (Billions of yen) 414.8 (-9.9%) Others 373.9 (+0.2%) 373.0 Lifestyle- (-8.6) related 27.5 products (-3.4) Electronic 36.9 (+4.4) 25.1 (-4.1) 26.0 devices 19.7 20.6 21.5 13.2 (+4.8) (-0.8) 12.5 AV/IT 54.4 57.0 57.5 Others Electron
Slide 5: FY2011.3 Operating Income Analysis
FY2011.3 Operating Income Analysis Versus previous year Increased actual sales and ¥13.2 production billion Handover of ¥12.2 billion Impact of lifestyle- exchange related rates Material ¥6.8 products Overseas cost Decrease in billion -¥5.4 billion business increases distribution actual SG&A Effects
Slide 6: Musical Instruments
Musical Instruments 4Q Overview FY2011.3 Overview •Sales and income were higher than in the fourth quarter •Sales declined year-on-year, but income increased. Both of the previous year and previous projections. sales and income were higher than previous projections. •Discounting the impact of exchan
Slide 7: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, North America Europe discounting the impact of exchange rates 42.1 41.6 (+6%) 53.0 48.5 (+6%) Japan 9.5 9.9 (+14%) 9.8 10.3 (+16%) 125.4 10.7 10.3 (+4%) 16.9 121.8 (-3%) 15.5 (+9%) 11.7 11
Slide 8: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Musical Instrument Sales by Region Overall, consumers continue to seek low-priced products. Although sales of upright pianos manufactured overseas are robust, conditions are generally challenging. Moderately-priced digital pianos are still showing Musical Instrum
Slide 9: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category (Billions of yen) Pianos Markets picked up, with sales especially strong in Electone Figures in parentheses Europe, China and Other Regions. In North America, show actual year-on-year promotions featuring upright pianos and Disclavia changes, discountin
Slide 10: AV/IT
AV/IT 4Q Overview FY2011.3 Overview •Although sales remained flat, operating income •Sales and income increased year-on-year. Sales were improved year-on-year. Sales were lower than lower than previous projections, but income was previous projections, but operating income was higher. higher. •Discou
Slide 11: Electronic Devices
Electronic Devices 4Q Overview FY2011.3 Overview •Sales increased year-on-year, but income declined. •Sales and income rose year-on-year, but were below Sales and income were both lower than previous previous projections. projections. •Sales of sound generators for mobile phones •Sales targets were
Slide 12: Others
Others 4Q Overview FY2011.3 Overview •Sales fell year-on-year and against previous projections. •Sales declined year-on-year, partly due to withdrawal from magnesium molded parts business, but income •The off-season for the recreation business was increased. exacerbated by numerous cancellations due
Slide 13: FY2012.3 Business Environment and Performance Forecast
FY2012.3 Business Environment and Performance Forecast Business Environment ■ Despite lingering uncertainties surrounding some European countries, recovery continues in the developed markets of Europe and North America. ■ Strong growth in China and other emerging markets. ■ The March earthquake is e
Slide 14: Forecast of Business Performance in FY2012.3
Forecast of Business Performance in FY2012.3 (Billions of yen) FY2011.3 FY2012.3 Increase/ Year-on-year percentage results forecasts decrease change Net sales 373.9 370.0 -3.9 -1.0% Operating income 13.2 10.0 -3.2 -24.0% (Operating income ratio) (3.5%) (2.7%) Ordinary income 11.0 8.0 -3.0 -27.1% (Or
Slide 15: Estimated Impact of Great East Japan Earthquake on Projected Results for FY2012.3
Estimated Impact of Great East Japan Earthquake on Projected Results for FY2012.3 (mainly musical instruments Impact of component procurement difficulties and AV/IT segment) Net sales -¥9.2 billion Operating income -¥3.3 billion Impact of weak consumer spending in Japan Net sales -¥4.5 billion Opera
Slide 16: Forecast of Performance by Business Segment in FY2012.3
Forecast of Performance by Business Segment in FY2012.3 Figures in Net Sales parentheses Operating Income show change from the previous (Billions of yen) year 373.9 (-1.0%) 370.0 Others 25.1 (-6.4) Electronic 23.5 devices 20.6 (+14.0) 23.5 AV/IT 57.0 (-8.8) 52.0 13.2 10.0 Musical 1.5 Others instrume
Slide 17: FY2012.3 Sales and Operating Income Analysis (Projection)
FY2012.3 Sales and Operating Income Analysis (Projection) Net sales Component procurement Weak Actual difficulties consumer increase in -¥9.2 billion spending sales in Japan Impact of ¥16.4 exchange billion -¥4.5 Customers’ rates ¥387.0 billion production cut -¥3.3 billion billion -¥3.3 billion ¥373
Slide 18: Musical Instruments: Projections
Musical Instruments: Projections ■Market Environment ■Priority Measures •Ongoing gradual recovery in global economy. •Expand sales in emerging markets including China. •Continuing growth momentum in China and other •Continue building optimum production structure to emerging markets. match market tre
Slide 19: Musical Instruments: Sales by Region (FY2012.3 Projections)
Musical Instruments: Sales by Region (FY2012.3 Projections) Figures in parentheses show actual year-on-year changes, discounting the impact of exchange rates (Billions of yen) 121.8 119.1 (-2%) (+2%) 2H 60.4 61.6 41.6 42.6 (+4%) 48.5 48.4 (+3%) 42.8 43.2 (+2%) 1H 61.4 20.2 21.1 (+2%) 25.8 25.6 (+2%)
Slide 20: Musical Instruments: Sales by Product Category (FY2012.3 Projections)
Musical Instruments: Sales by Product Category (FY2012.3 Projections) (Billions of yen) Pianos Electone Figures in parentheses show actual year-on-year changes, discounting the 39.3 39.1 (±0%) impact of exchange rates 2H 4.6 4.2 (-9%) 19.6 20.0 (+2%) 2.0 2.1 (+5%) 1H 19.7 19.1 (-1%) 2.6 2.1 (-19%) F
Slide 21: Emerging Market Sales
Emerging Market Sales (Billions of yen) Eastern Europe Russia Pianos 12% (+30%) (+16%) 21% Digitial musical (+15%) (+17%) 2.7 instruments 4.4 4.2 4.8 2.2 1.8 15% Wind instruments 2H 2.4 1.3 1.5 47% 2.1 2.1 1.1 String & percussion 1H 2.3 2.1 2.4 0.7 0.9 1.2 5% instruments FY2010.2 FY2011.3 FY2012.3 F
Slide 22: AV/IT: Projections
AV/IT: Projections ■Market Environment ■Priority Measures •Build AV business by launching products targeted at demand trends. •Fiercer competition from mass merchandisers and Web- based sales networks. -Expand AV receiver sales, especially to regain share in North American market. •Continuing growth
Slide 23: Electronic Devices: Projections
Electronic Devices: Projections ■Market Environment ■Priority Measures •Marked shift from conventional mobile phones •Maintain sales of sound generators in mobile to smart phones. phones and continue developing products for •Growing use of electronic components in smart phones. vehicles. •Enhance ge
Slide 24: Others: Projections
Others: Projections ■Market Environment ■Priority Measures •Uncertainty over automobile production in the wake •Enhance manufacturing systems for automobile of the earthquake. interior wood components by shrinking lead times, •Signs of recovery in corporate capital expenditure. etc. •Golf products s
Slide 25: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) 22.6 Others Electronic 3.1 (17.9) 14.5 devices 3.2 (14.1) 14.8 AV/IT 1.5 0.8 10.4 (12.8) 1.3 (13.2) 0.7 1.3 1.2 0.4 2.4 0.9 1.0 Musical 14.8 instruments 11.7 9.9 8.1 FY2009.3 FY2010.3 FY2011.3 FY2012.3
Slide 26: Inventories
Inventories Total inventories as of March 31, 2011 were ¥2.2 billion higher than at the end of the previous fiscal year (allowing for the impact of exchange rates, actual inventories were ¥5.7 billion higher than the previous year) (Billions of yen) 80.7 69.5 71.7 68.8 24.1 Goods in 21.3 24.3 23.3
Slide 27: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of March 31, As of March 31, As of March 31, As of March 31, 2009 2010 2011 2012 (projections) Cash and bank deposits 41.4 59.4 57.2 59.4 Notes & accounts 50.5 47.4 45.1 50.5 receivable Inventories 80.7 69.5 71.7 68.8 Other current assets 29.5 17.0 20.8 21.
Slide 28: Return to Shareholders
Return to Shareholders An annual dividend of ¥10 is planned for FY2012.3 (consolidated payout ratio of 38.7%) 50 38.6 38.7 Consolidated payout ratio (%) 42.5 26.1 Per-share 21.1 dividend (yen) 14.7 16.6 27.5 7.1 22.5 20 20 Special dividend 15 10 10 Regular dividend FY2004.3 FY2005.3 FY2006.3 FY2007
Slide 29: Appendix
Appendix
Slide 30: Performance in the Fourth Quarter of FY2011.3
Performance in the Fourth Quarter of FY2011.3 Sales in the fourth quarter were higher than previous projections (Billions of yen) Increase/ FY2010.3 FY2011.3 Previous Increase/ projections decrease 4Q results 4Q results decrease (Feb. 3, 2011) against projections Net sales 97.9 88.4 -9.7% 87.6 +1.0
Slide 31: Performance by Business Segment in the Fourth Quarter of FY2011.3
Performance by Business Segment in the Fourth Quarter of FY2011.3 Net Sales Operating Income (Billions of yen) 97.9 (-9.7%) Others 88.4 (+1.0%) 87.6 Lifestyle- 6.5 related (-14.2) products 8.9 5.6 (-14.2) 6.5 Electronic 4.8 (+7.7) 5.1 (-14.5) 6.0 devices 12.5 (-0.2) 12.5 (-4.0) 13.0 Lifestyle- -3.7
Slide 32: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2010.3 results FY2011.3 results FY2012.3 projections (Billions of yen) Non-operating income (loss) Net financial income 0.3 0.7 0.2 Other -2.2 -2.9 -2.2 Total -1.9 -2.2 -2.0 ・Handover of Yamaha Livingtec -2.2 ・Revaluation loss on inve
Slide 33: Musical Instruments: Sales and Income by Quarter
Musical Instruments: Sales and Income by Quarter Net sales: ¥276.3 billion Net sales: ¥271.1 billion Net sales: ¥271.0 billion Operating income: ¥5.1 billion Operating income: ¥8.6 billion Operating income: ¥7.5 billion (Billions of yen) 74.2 68.4 71.3 71.4 70.8 68.4 65.0 66.5 65.2 66.6 65.3 65.3 Ot
Slide 34: AV/IT: Sales and Income by Quarter
AV/IT: Sales and Income by Quarter Net sales: ¥54.4 billion Net sales: ¥57.0 billion Net sales: ¥52.0 billion Operating income: ¥1.4 billion Operating income: ¥2.5 billion Operating income: ¥1.5 billion (Billions of yen) 19.1 17.4 17.4 13.3 12.5 12.0 13.4 12.5 12.1 11.2 11.7 10.8 2.0 2.3 Operating 1
Slide 35: Electronic Devices: Sales and Income by Quarter
Electronic Devices: Sales and Income by Quarter Net sales: ¥19.7 billion Net sales: ¥20.6 billion Net sales: ¥23.5 billion Operating income: -¥0.6 billion Operating income: ¥0.5 billion Operating income: ¥0 billion (Billions of yen) 7.1 7.4 5.0 5.3 4.8 5.1 5.1 5.2 5.1 4.7 4.3 4.7 Operating income/lo
Slide 36: Others: Sales and Income by Quarter
Others: Sales and Income by Quarter Net sales: ¥27.5 billion Net sales: ¥25.1 billion Net sales: ¥23.5 billion Operating income: ¥0.5 billion Operating income: ¥1.5 billion Operating income: ¥1.0 billion (Billions of yen) 8.4 1.3 7.1 6.3 6.2 6.5 6.5 6.3 6.2 5.9 6.0 0.9 1.5 5.6 Recreation 1.6 5.0 1.3
Slide 37: Forward-looking 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