Yamaha Corporation · TSE:7951
Yamaha — Q1 FY2008.3 Earnings Presentation
26 slides from Yamaha's earnings presentation, Aug 2, 2007
Slide 1: Analyst and Investor Briefing on the First Quarter of FY2008.3
Analyst and Investor Briefing on the First Quarter of the Fiscal Year Ending March 31, 2008 (FY2008.3) August 2, 2007 YAMAHA CORPORATION
Slide 2: Overview of Performance in the First Quarter
Overview of Performance in the First Quarter Net sales increased ¥8.5 billion or 6.7% year-on-year, which is ¥4.4 billion or 3.3% higher than previous projections. On a real basis (discounting the impact of exchange rates), net sales increased ¥3.6 billion or 2.8% year-on-year, about on par with p
Slide 3: Performance in the First Quarter
Performance in the First Quarter ¾Sales and operating income were higher year-on-year and against previous projections (May 23). Excluding Yamaha Motor from the scope of consolidation through the equity method resulted in a year-on-year decrease in recurring profit. Net income increased year-on-year
Slide 4: Results by Business Segment in the First Quarter
Results by Business Segment in the First Quarter Net Sales Operating 126.7 135.2 (+6.7%) 130.8 (+3.3%) Income Recreation 12.1 (+16.6) 11.5 (+5.2) & others 10.4 11.4 (+5.6) (Billions of yen) Lifestyle-related 11.9 (-4.0) products 10.8 14.4 (+6.3) Recreation Electronic 13.6 12.9 (+11.6) & others equip
Slide 5: Forecast of Business Performance in FY2008.3 (Full Year)
Forecast of Business Performance in FY2008.3 (Full Year) ¾Full year totals for net sales and operating income expected to be higher than previous projections (May 23), with revising the euro exchange rate from ¥148=€1 to ¥155=€1. (Billions of yen) Change from Previous Change from FY2007.3 FY2008.3 s
Slide 6: FY2008.3 (Full Year) Forecast by Business Segment
FY2008.3 (Full Year) Forecast by Business Segment Net Sales Operating Income 550.4 557.0 (+1.2%) 551.0 (+1.1%) Recreation (Billions of yen) & others 42.5 (-15.3) 39.0 (+9.0) 50.2 Lifestyle-related 49.0 (+5.2) 49.0 (0) products 46.6 Electronic 47.0 (-14.2) (+2.2) Recreation equipment and 54.8 46.0 &
Slide 7: Musical Instruments
Musical Instruments 1Q Overview FY2008.3 Projections and Priority Policies • Discounting the impact of exchange rates, real 1Q net sales • Further strengthen profitability as the core business increased 3.0% year-on-year, but fell slightly against • Market new products without fail in time for Chris
Slide 8: AV/IT
AV/IT FY2008.3 Projections 1Q Overview and Priority Policies • Downward revision of full-year targets due to delay in developing sales • Discounting the impact of exchange rates, real 1Q channels for IP conferencing systems and other factors net sales declined year-on-year and against previous proje
Slide 9: Electronic Equipment and Metal Products
Electronic Equipment and Metal Products 1Q Overview FY2008.3 Projections • While first quarter sales and operating income exceeded and Priority Policies previous projections, operating income was half of year- • Secure sales through shift to high added-value LSI ago 1Q sound chips for mobile phones
Slide 10: Lifestyle-Related Products
Lifestyle-Related Products 1Q FY2008.3 Projections Overview and Priority Policies • First quarter sales fell short of previous projections, • Aim for securing full-year sales and operating and an operating loss was stated. income on par with previous projections. • System kitchens continued to sell
Slide 11: Recreation
Recreation 1Q Overview FY2008.3 Projections and Priority Policies • First quarter sales and operating income were • The transfer date for the four resort facilities was below previous projections. changed from the initially scheduled date of July 31 to October 1, so sales are forecast to be higher t
Slide 12: Others
Others 1Q Overview FY2008.3 Projections • Sales and operating income increased year-on-year. and Priority Policies • In the metallic molds and components businesses, • Continue focusing on production cost production of both magnesium and plastic parts reductions and yield improvements for increased.
Slide 13: First Quarter Non-operating Income (Loss) / Extraordinary Income (Loss)
First Quarter Non-operating Income (Loss) / Extraordinary Income (Loss) FY2007.3 1Q FY2008.3 1Q FY2008.3 1Q (Results) (Results) (Previous projections) (Billions of yen) Non-operating Income (Loss) Equity method income 6.4 0 Dividend 0 Net financial income 0.4 0.9 income 0.8 0.2 Other - 0.9 - 0.7 - 1
Slide 14: FY2008.3 (Full Year) Non-operating Income (Loss) / Extraordinary Income (Loss)
FY2008.3 (Full Year) Non-operating Income (Loss) /Extraordinary Income (Loss) FY2007.3 FY2008.3 FY2008.3 (Results) (Current projections) (Previous projections) Non-operating Income (Loss) (Billions of yen) Equity method income 17.8 0 0 Dividend Dividend Net financial income 0.1 2.4 income 2.7 1.6 in
Slide 15: Inventories
Inventories ¾ Inventories at the end of the first quarter increased against previous projections; goods in process/materials increased. Discounting the impact of exchange rates, inventories of finished musical instruments are at close to proper levels; AV/IT inventories are slightly high. We will se
Slide 16: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure/Depreciation 25.2 26.0 22.9 3.7 4.5 6.8 4.4 (20.0) 2.6 (22.1) Others 6.5 (18.9) 4.4 2.3 0.9 0.9 Electronic equipment 0.9 0.6 (5.6) 5.5 1.5 & metal products (4.8) 0.6 AV/IT 0.3 1.1 17.4 Musical 4.7 14.8 4.4 11.9 instr
Slide 17: Balance Sheet Summary (Projection)
Balance Sheet Summary (Projection) (Billions of yen) As of June 30, As of March 31, As of June 30, As of March 2006 2007 2007 31, 2008 Cash and bank 29.4 deposits 46.7 92.2 106.3 Accounts and notes 70.4 76.6 76.9 73.2 receivable Inventories 84.5 82.2 91.4 73.3 Other current assets 26.4 25.5 30.9 26.
Slide 18: Sale of Yamaha Motor Shares
Sale of Yamaha Motor Shares ¾Increase in the market value of Yamaha Motor shares held by Yamaha ¾Increasing impact of Yamaha Motor financial results on Yamaha’s consolidated results in the form of equity method income or loss. ¾ Yamaha removes Yamaha Motor from the scope of consolidation through the
Slide 19: Return to Shareholders
Return to Shareholders ¾ Based on a stable and ongoing dividend, Yamaha will strive to further return the profits to shareholders, targeting a consolidated payout ratio of 40%. ¾ Starting from FY2008.3, a special dividend totaling ¥12.0 billion will be paid out over three years (20 yen per share eac
Slide 20: Slide 20
Slide 21: Appendix
Appendix
Slide 22: Yamaha Musical Instrument and Professional Audio Equipment Sales in the Japanese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Japanese Market First quarter sales were nearly on par with the first quarter of the previous year. Regarding piano sales, while orders of grand pianos have been solid thanks to the effects of new products, upright piano sales s
Slide 23: Yamaha Musical Instrument and Professional Audio Equipment Sales in the U.S. Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the U.S. Market Last year’s downturn in demand caused by housing start stagnation and other factors has ended and the piano market is recovering. Going forward, sales of new electronic piano and synthesizer products are expected to
Slide 24: Yamaha Musical Instrument and Professional Audio Equipment Sales in the German Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the German Market Piano shipments made progress on the back of strong orders for new products, but dealer stock has temporarily increased. Audio equipments for facilities continue to perform well. Performance from the second quarter
Slide 25: Yamaha Musical Instrument and Professional Audio Equipment Sales in the Chinese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Chinese Market Piano sales remain strong on the back of sales growth of Hangzhou- made pianos and deliveries of high-priced Japan-made products to schools. Bidding opportunities are also increasing for instruments other than pia
Slide 26: 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