Yamaha Corporation · TSE:7951
Yamaha — Q2 FY2015.3 Earnings Presentation
35 slides from Yamaha's earnings presentation, Nov 4, 2014
Slide 1: Analyst and Investor Briefing on the Second Quarter of FY2015.3
Yamaha Corporation Analyst and Investor Briefing on the Second Quarter of Fiscal Year Ending March 31, 2015 (FY2015.3) November 4, 2014
Slide 2: Overview of Performance in the First Half of FY2015.3
Overview of Performance in the First Half of FY2015.3 (Six Months) Results Summary First half sales and income increased year-on-year and exceeded previous projections. Net income declined from the same period of the previous year, partly due to the inclusion of income from the sales of investme
Slide 3: Performance in the First Half of FY2015.3
Performance in the First Half of FY2015.3 (Billions of yen) Changes from FY2015.3 Changes from FY2014.3 FY2015.3 same period of 1H results 1H results the previous 1H previous the previous year projections projection Net Sales 197.7 206.4 +4.4% 204.5 +0.9% Operating Income 13.7 15.1 14.5 (Operating I
Slide 4: Performance by Business Segment in the First Half of FY2015.3
Performance by Business Segment in the First Half of FY2015.3 Net Sales Operating Income Change from the (Billions of yen) previous projections Year-on-year 197.7 change 206.4 (101%) 204.5 (104%) ■Others 12.0 12.0 11.9 (101%) 7.5 (100%) 7.0 ■Electronic 10.1 (74%) (107%) Devices 15.1 ■Others ■Audio 5
Slide 5: FY2015.3 1H Operating Income Analysis
FY2015.3 1H Operating Income Analysis (Billions of yen) Versus same period of the previous year Improvement in Increase in Decline in manufacturing labor cost sales of Decline in cost at overseas audio profitability of +¥1.8 factories equipment electronic Impact of 15.1 13.7 -¥0.6 -¥0.3 devices New
Slide 6: Musical Instruments 1H
Musical Instruments 1H 1H (Billions of yen) ■Net Sales ■Operating Income 126.9 136.1 135.0 1H Overview • Sales and income increased year-on-year Music schools, 39.3 37.8 38.0 and exceeded previous projections etc. • Digital musical instruments saw strong sales of double-digit growth • Robust sales i
Slide 7: Audio Equipment 1H
Audio Equipment 1H 1H (Billions of yen) ■■■Net Sales ■Operating Income 50.8 50.5 48.7 1H Overview ICT devices 3.6 6.5 6.3 • Sales increased year-on-year, but income declined. Results were broadly in line with previous projections. PA equipment 18.9 20.5 19.5 • AV products struggled in all markets •
Slide 8: Electronic Devices 1H
Electronic Devices 1H 1H (Billions of yen) ■Net Sales ■Operating Income 1H Overview • Sales and income declined sharply year-on- year. • Sales were higher than previous projections, but income was lower, partly due to changes in the product mix. 10.1 • Sales for the amusement equipment 7.5 7.0 conti
Slide 9: Developments in the Semiconductor Business
Developments in the Semiconductor Business Shift to Fabless Production • The decision has been made to transfer ownership of the semiconductor production subsidiary Yamaha Kagoshima Semiconductor Inc. and shift the business to a fabless model Semiconductor Business Going Forward • Shift to fable
Slide 10: Others 1H
Others 1H 1H (Billions of yen) ■■■■Net Sales ■Operating Income 1H Overview 11.9 12.0 12.0 • Although sales were in line with previous projections, an operating loss was posted FA equipment, 3.2 3.3 3.0 • Sales of automobile interior wood etc. components were in line with expectations • Golf product
Slide 11: Outlook for Second Half and Full Year
Outlook for Second Half and Full Year Outlook for 2H No major change in overall outlook for the musical instrument market Although AV products continues to face headwinds, new professional audio equipment products are expected to contribute to improved results in the audio equipment segment Co
Slide 12: Forecast for Performance in FY2015.3 (Full Year)
Forecast for Performance in FY2015.3 (Full Year) (Billions of yen) FY2014.3 FY2015.3 Increase/ Change from the Previous previous results projections decrease Projections projections Net Sales 410.3 430.0 +4.8% 430.0 - Operating Income 26.0 29.0 29.0 (Operating Income Ratio) +11.6% - (6.3%) (6.7%) (6
Slide 13: FY2015.3 Full Year Forecast for Performance by Business Segment
FY2015.3 Full Year Forecast for Performance by Business Segment Net Sales Operating Income Year-on-year change Change from the (Billions of yen) previous projections 410.3 (105%) 430.0 (100%) 430.0 29.0 ■Others 26.0 (100%) 26.0 0.5 29.0 23.7 (110%) 14.5 (83%) 17.5 26.0 0.5 ■Others ■Electronic 0 ■Ele
Slide 14: FY2015.3 Full Year Operating Income Analysis
FY2015.3 Full Year Operating Income Analysis (Billions of yen) Versus same period of the previous year Improvement in Increase in manufacturing labor cost cost at overseas Decline in +¥3.6 factories profitability of Impact of electronic exchange -¥1.2 Actual devices Increase in rates increase in -¥2
Slide 15: Musical Instruments Full Year Projections
Musical Instruments Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income Full Year Projections 277.5 274.5 262.3 • Sales and income are projected to increase year-on-year and exceed Music 78.1 78.4 previous projections schools, 80.6 etc. • Market conditions are expected to
Slide 16: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) Figures in parentheses show 107.6 105.8(98%) actual year-on-year changes, discounting the impact of exchange rates 4Q 29.2 27.3 (94%) 3Q 25.6 26.6 (104%) 45.5 49.8 (108%) 40.8 48.2(114%) 43.2 45.9 (105%) 2Q 11.7(109%) 10.3 (109%) 24.2 24.2 (100%
Slide 17: Audio Equipment Full Year Projections
Audio Equipment Full Year Projections Full Year (Billions of yen) ■■■Net Sales ■Operating Income Full Year Projections 105.5 112.0 112.0 • Previous projections remain unchanged • Although AV products continues to lag, 13.5 13.7 the sale and installation of commercial ICT devices 7.8 audio equipment
Slide 18: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, 30.1 (104%) discounting the impact of 28.6 exchange rates 27.5 (105%) 25.5 (104%) 25.1 6.3 (102%) 24.6 (109%) 6.5 6.4 20.6 4Q 5.7 19.7 (95%) 7.7 8.6 (112%) 9.5 (106%) 9.2 4.7 8.7 (104%) 4.8(10
Slide 19: Sales by Major Product Category (Yamaha branded products)
Musical Instruments/Audio Equipment: Sales by Major Product Category (Yamaha branded products) (Billions of yen) Musical Instruments Audio Equipment Piano Digital Musical Instruments AV Products (excl. parts) 84.3 (108%) 48.1 48.2 (99%) 76.7 18.6 (104%) 49.2 46.6 (93%) 18.1 4Q 12.6 11.7 (94%) 10.3 9
Slide 20: Electronic Devices Full Year Projections
Electronic Devices Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income Full Year Projections • Sales and income are expected to be lower than previous projections • The sharp fall in sales is projected to result in an operating loss • A rebound in the amusement equipment m
Slide 21: Others Full Year Projections
Others Full Year Projections Full Year (Billions of yen) ■■■■Net Sales ■Operating Income Full Year Projections 23.7 26.0 26.0 • Sales and income are expected to increase year-on-year, and previous 7.3 6.8 FA equipment, 5.5 projections remain unchanged etc. • Sales of automobile interior wood compone
Slide 22: Inventories
Inventories Inventories at the end of the first half (Sept. 30, 2014) increased year on year by ¥4.2 billion to ¥94.7billion. The actual inventories decreased when excluding the forex impact of +¥5.6 billion Inventories at the end of the fiscal year is forecast to decrease year on year and versus
Slide 23: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) (12.8) 13.6 (13.1) ■Others 10.8 13.6 (12.6) ■Electronic Devices 0.8 ■Audio Equipment 0.8 ■Musical Instruments 6.7 0.8 0.9 (6.0) 0.3 (5.9) 1.2 3.0 3.3 4.9 0.5 0.2 0.5 1.3 2.8 0.1 1.2 9.0 8.5 4.5 6.6 3.2
Slide 24: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 1H As of fiscal year end As of Sept. As of Sept. As of Mar. As of Mar. Change Change 30, 2013 30, 2014 31, 2014 31, 2015 Cash and deposits 62.7 72.3 +9.6 60.6 76.2 +15.6 Notes and accounts receivable 56.6 60.6 +4.1 56.7 57.3 +0.6 Inventories 90.5
Slide 25: Appendix
Appendix
Slide 26: Performance in the Second Quarter of FY2015.3 (Three Months)
Performance in the Second Quarter of FY2015.3 (Three Months) (Billions of yen) FY2015.3Changes from the FY2014.3 FY2015.3 Changes from same 2Q results 2Q results previous year 2Q previous period of the previous projections projection Net Sales 100.7 106.8 +6.1% 104.9 +1.8% Operating Income 7.5 8.8 8
Slide 27: Performance by Business Segment in the Second Quarter of FY2015.3
Performance by Business Segment in the Second Quarter of FY2015.3 (Three Months) Net Sales Operating Income Change from the (Billions of yen) Year-on-year change previous projections 100.7 (106%) 106.8 (102%) 104.9 (112%) 6.3 (101%) ■Others 5.6 (67%) 3.7 (116%) 6.2 ■Electronic 5.5 3.2 8.8 8.3 Device
Slide 28: 1H Non-Operating Income/Loss & Extraordinary Income/Loss
1H Non-Operating Income/Loss & Extraordinary Income/Loss (Billions of yen) FY2014.3 1H FY2015.3 1H FY2015.3 1H previous projections Non-Operating Income/Loss Net financial income 0.9 1.1 0.9 Other -1.1 -1.1 -1.4 Total -0.2 0 -0.5 Extraordinary Income/Loss Income from (loss on) 0 -0.1 -0.1 disposal o
Slide 29: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss (Billions of yen) FY2014.3 full year FY2015.3 full year FY2015.3 full year previous projections Non-Operating Income/Loss Net financial income 2.6 1.8 2.1 Other -2.5 -2.8 -3.1 Total 0.1 -1.0 -1.0 Gain on sales of investment securities 1
Slide 30: Quarterly Sales and Income
Quarterly Sales and Income (Billions of yen) 111.0 116.6 100.7 101.6 99.6 106.8 107.0 97.0 7.5 9.1 8.8 9.9 6.2 6.2 4.0 3.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2014.3 FY2015.3 projections 30
Slide 31: Quarterly Sales and Income by Segment
Quarterly Sales and Income by Segment (Billions of yen) Musical Instruments Audio Equipment 74.4 67.0 62.6 64.3 69.8 65.6 65.7 70.4 30.6 32.7 26.1 28.5 23.5 25.3 24.3 26.4 5.8 8.3 7.4 4.4 5.2 6.3 3.8 2.7 3.0 2.5 0.9 1.7 0.6 1.3 0.6 1.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2014.3 FY2015.
Slide 32: Key Products in FY2015.3
Key Products in FY2015.3 Another progress in the digital musical instruments with leading-edge technology and brand new concept unit ElectoneTM electronic organ STAGEATM ELS-02C custom model ELS-02 standard model JPY980,000 (excl. tax) JPY650,000 (excl. tax) current model new model ELS-01 series fun
Slide 33: Key Products in FY2015.3
Key Products in FY2015.3 Digital piano incorporated with superb sounds of two different concert grand pianos Clavinova digital piano CLP series Carries true tonal characters of concert grand pianos Clavinova CLP-545WA White ash JPY215,000 (excl. tax) Yamaha CFX grand piano (left) and Bösendorfer Imp
Slide 34: Key Products in FY2015.3
Key Products in FY2015.3 A compact mixing console with core futures and performance inherited from the industry leading standards of CL series The digital mixing console QL series Launched in April 2014 34
Slide 35: 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