Yamaha Corporation · TSE:7951
Yamaha — Q2 FY2014.3 Earnings Presentation
32 slides from Yamaha's earnings presentation, Nov 1, 2013
Slide 1: Analyst and Investor Briefing on the Second Quarter of FY2014.3
Yamaha Corporation Analyst and Investor Briefing on the Second Quarter of the Fiscal Year Ending March 31, 2014 (FY2014.3) November 1, 2013
Slide 2: Overview of Performance in the First Half of FY2014.3
Overview of Performance in the First Half of FY2014.3 (Six Months) Results Results Summary Summary First half sales and income increased year-on-year and exceeded previous projections announced on July 31. Although sales of musical instruments and audio equipment improved over 1Q results on a loca
Slide 3: Performance in the First Half of FY2014.3
Performance in the First Half of FY2014.3 (Billions of yen) FY2014.3 FY2013.3 FY2014.3 Changes from Changes from 1H 1H 1H same period of previous previous results results the previous year projections projection Net Sales 176.8 197.7 +11.8% 196.5 +0.6% Operating Income 6.8 13.7 +100.7% 11.5 +18.9% (
Slide 4: Performance by Business Segment in the First Half of FY2014.3
Performance by Business Segment in the First Half of FY2014.3 Net Sales Operating Income Change from Year-on-year the previous (Billions of yen) change projections 196.5 (+11.8%) 197.7 (+0.6%) 13.7 176.8 0.3 Others 12.0 (-4.2%) 11.9 (-1.1%) 11.5 9.5 (+28.5%) 10.1 (+6.8%) 1.2 Electronic Devices Other
Slide 5: FY2014.3 1H Operating Income Analysis
FY2014.3 1H Operating Income Analysis (Billions of yen) Versus Versus same same period period of of the the previous previous year year Decrease in actual SG&A Effect of structural 1.2 reform Improvement in Increase in 1.1 Impact of manufacturing overseas labor cost Decrease in exchange cost 1.2 -1.
Slide 6: Musical Instruments 1H
Musical Instruments 1H (Billions of yen) Net Net Sales Sales 126.5 126.9 1H Overview 115.0 •Sales increased year-on-year and Music 40.0 39.3 exceeded previous projections schools, 41.0 etc. •Discounting the impact of exchange rates Yamaha (+¥15.4 billion), actual sales were lower musical 74.0 86.5 8
Slide 7: Audio Equipment 1H
Audio Equipment 1H (Billions of yen) Net Net Sales Sales 48.5 48.7 1H Overview 41.5 3.5 3.6 •Sales were up year-on-year and against ICT devices 3.3 19.5 18.9 previous projections PA 16.7 equipment •Discounting the impact of exchange rates (+¥7.5 billion), actual sales decreased AV 25.4 26.2 from the
Slide 8: Electronic Devices 1H
Electronic Devices 1H (Billions of yen) Net Net Sales Sales 1H Overview •Sales were higher than the same period of the previous year and surpassed 9.5 10.1 previous projections 7.9 •Geomagnetic sensor and codec product sales were robust •Lower fixed costs achieved through FY2013.3* 1H FY2014.3 1H FY
Slide 9: Others 1H
Others 1H (Billions of yen) Net Net Sales Sales 12.4 1H Overview 12.0 11.9 •Sales and income declined year-on-year FA equipment, etc. 3.1 3.3 3.4 •Sales of automobile interior wood Resort 2.8 2.9 2.8 components and factory automation Golf products equipment were lower than the same 2.4 2.2 2.3 Autom
Slide 10: Outlook for Second Half and Full Year
Outlook for Second Half and Full Year Outlook Outlook for for 2H 2H Musical instrument sales lacks strength, but on the recovery trend against the same period of the previous year The North American and European markets are gradually rebounding, and Chinese and other region markets are also fore
Slide 11: Forecast for Performance in FY2014.3 (Full Year)
Forecast for Performance in FY2014.3 (Full Year) (Billions of yen) FY2013.3 FY2014.3 Changes FY2014.3 Changes from the from the 2H Previous Full 1H Full previous previous 1H 2H new year projections projections Year results projections Year Net Sales 176.8 190.1 366.9 197.7 210.3 408.0 +11.2% 408.0 ―
Slide 12: FY2014.3 Full Year Forecast for Performance by Business Segment
FY2014.3 Full Year Forecast for Performance by Business Segment Net Sales Operating Income Change from the previous Year-on-year projections (Billions of yen) change (―) 408.0 (+11.2%) 408.0 22.0 366.9 25.0 (+2.9%) 24.5 (-2.0%) 20.0 0.5 Others Electronic 19.0 20.0 (+5.3%) 0.5 Others 23.8 (+33.3%) 0.
Slide 13: FY2014.3 Full Year Operating Income Analysis
FY2014.3 Full Year Operating Income Analysis Improvement in (Billions of yen) Versus Versus same same period period of of the the previous previous year year manufacturing cost Effects of 2.7 structural Increase in reform overseas labor Impact of 2.5 cost Impact of exchange Increase in -2.7 guitar a
Slide 14: Musical Instruments Full Year Projections
Musical Instruments Full Year Projections (Billions of yen) Net Net Sales Sales Full Year Projections 258.0 258.5 • Sales and income are projected to 235.5 increase year-on-year and exceed Music 81.7 80.8 previous projections, due to factors schools, 81.9 etc. including exchange rate revisions Yamah
Slide 15: Musical Instruments Sales by Region
Musical Instruments Sales by Region (Billions of yen) 55.4 52.8 (-5%) 1H 1H Figures in parentheses show actual year-on-year changes, discounting the impact of Music exchange rates schools, etc. 19.5 (+2%) 20.3 (-6%) 17.6 21.1 (-2%) 15.4 16.6 Yamaha musical 10.0 13.2 (+2%) instruments 18.0 17.7 19.0
Slide 16: Audio Equipment Full Year Projections
Audio Equipment Full Year Projections (Billions of yen) Net Net Sales Sales Full Year Projections 106.0 105.0 92.6 7.1 7.3 • Sales and income are expected to be lower than previous projections ICT devices 6.5 43.4 42.1 • Focus on rebound in professional audio PA 37.0 equipment market equipment • Rou
Slide 17: Audio Equipment Sales by Region
Audio Equipment Sales by Region (Billions of yen) 1H 1H Figures in parentheses show actual year-on-year changes, (+2%) discounting the impact of (-6%) (+1%) exchange rates (+3%) 13.0 11.7 11.0 11.3 9.1 9.7 (-8%) 10.1 8.2 2.8 3.2 FY13.3* 1H FY14.3 1H FY13.3* 1H FY14.3 1H FY13.3* 1H FY14.3 1H FY13.3*
Slide 18: Musical Instruments/Audio Equipment: Sales by Major Product Category
Musical Instruments/Audio Equipment: Sales by Major Product Category Figures in parentheses show (Billions of yen) Piano Digital Musical Instruments actual year-on-year changes, discounting the impact of (+3%) exchange rates 74.4 AV Products 47.3 (+1%) 62.5 (+1%) 40.9 49.9 42.4 40.2 24.3 (+7%) (+7%)
Slide 19: Electronic Devices Full Year Projections
Electronic Devices Full Year Projections (Billions of yen) Full Year Projections Net Net Sales Sales • Sales are expected to increase year-on- year, and a return to profit is targeted • Higher sales of geomagnetic sensors and 19.0 20.0 codec products are anticipated, driven by 15.0 demand from smart
Slide 20: Others Full Year Projections
Others Full Year Projections (Billions of yen) Net Net Sales Sales Full Year Projections • Sales are expected to be slightly below 23.8 25.0 24.5 previous projections 6.3 6.2 FA equipment, 5.4 • Sales of automobile interior wood etc. components and factory automation Resort 5.2 5.7 5.5 equipment are
Slide 21: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) Others 14.8 Electronic Devices Audio Equipment 13.8 1.3 (13.7) 12.0 (13.1) Musical Instruments 1.1 (11.6) 1.0 1.4 5.8 (5.4) 0.5 4.9 (6.0) 2.5 3.5 1.2 0.4 0.2 0.5 3.0 1.3 0.1 1.2 8.9 9.0 3.8 7.4 3.2 FY2
Slide 22: Inventories
Inventories Inventories at the end of September were ¥6.9 billion higher than the same period of the previous year (discounting the +¥14.2 billion impact of exchange rates, actual inventories were down by ¥7.4 billion) Projections at the end of March 2014 is ¥80.3 billion (impact of exchange rate
Slide 23: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) 1H As of fiscal year end As of Sept. As of Sept. As of Mar. As of Mar. Change Change 30, 2012 30, 2013 31, 2013 31, 2014 Cash and deposits 50.0 62.7 12.7 51.4 64.1 12.7 Notes and accounts receivable 48.8 56.6 7.8 51.0 56.3 5.3 Inventories 83.7 90.5 6.9 82.0 80
Slide 24: Appendix
Appendix
Slide 25: Performance in the Second Quarter of FY2014.3 (Three Months)
Performance in the Second Quarter of FY2014.3 (Three Months) (Billions of yen) Changes from FY2014.3 FY2013.3 FY2014.3 Changes from same period of 2Q 2Q 2Q the previous previous previous results results year projections projection Net Sales 86.8 100.7 +16.0% 99.5 +1.2% Operating Income 2.6 7.5 +193.
Slide 26: Performance by Business Segment in the Second Quarter of FY2014.3
Performance by Business Segment in the Second Quarter of FY2014.3 (Three Months) Net Sales Operating Income Year-on- Change year change from the (Billions of yen) previous 99.5 (+16.0%) 100.7 projections 7.5 86.8 5.7 (+0.3%) 5.6 (+1.2%) 0.8 Electronic 4.9 (+36.2%) 5.5 (-2.2%) Devices Others 5.6 (+12
Slide 27: First Half Non-Operating Income/Loss & Extraordinary Income/Loss
First Half Non-Operating Income/Loss & Extraordinary Income/Loss FY2013.3 1H FY2014.3 1H FY2014.3 1H (Billions of yen) previous projections Non-Operating Non-Operating Income/Loss Income/Loss Net financial income 0.5 0.7 0.9 Other -1.2 -1.2 -1.1 Total -0.7 -0.5 -0.2 Extraordinary Extraordinary Incom
Slide 28: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2013.3 FY2014.3 FY2014.3 (Billions of yen) previous projections new projections Non-Operating Non-Operating Income/Loss Income/Loss Net financial income 1.1 1.1 1.4 Other -1.7 -2.6 -2.9 Total -0.6 -1.5 -1.5 Extraordinary Extraordinary
Slide 29: Musical Instruments/Audio Equipment: Sales by Region
Musical Instruments/Audio Equipment: Sales by Region Sales by Region Note: Year-on-year comparisons discount the impact of exchange rates Market conditions began to appear slightly more positive from the summer, and overall sales were stteady in the second quarter. Although pianos and Electones stil
Slide 30: Quarterly Sales and Income
Quarterly Sales and Income (Billions of yen) 112.3 97.1 97.0 100.7 98.0 86.8 93.0 90.0 7.5 7.3 6.2 Operating 4.3 3.6 Income 2.6 1.0 -1.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2013.3 FY2014.3 projections 30
Slide 31: Quarterly Sales and Income by Segment
Quarterly Sales and Income by Segment (Billions of yen) Musical Instruments Audio Equipment 58.8 56.2 61.0 59.5 62.6 64.3 68.6 63.0 32.2 27.0 24.1 20.5 21.0 23.5 25.3 24.0 5.1 5.9 3.2 4.4 2.2 1.5 2.2 1.0 1.3 0 1.8 1.9 0.5 0.9 0.5 -0.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2013.3* FY2014.
Slide 32: Important Notice
Important 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 gre