Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2004 Earnings Presentation
24 slides from Yamaha's earnings presentation, Feb 10, 2004
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY Ending March 2004
Analyst and Investor Briefing on the Third Quarter of the Fiscal Year Ending March 31, 2004 (April 1, 2003 to December 31, 2003) February 10, 2004 YAMAHA CORPORATION
Slide 2: Overview of the Performance in the Third Quarter
Overview of the Performance in the Third Quarter In 3Q, sales in the musical instruments business and the AV/IT business fell short of the forecasts announced along with interim results in November 2003. However, in addition to sharp growth in semiconductors, sales in the musical instruments and AV
Slide 3: Performance in the Third Quarter
Performance in the Third Quarter ¾Compared with previous projections, both sales and earnings increased. Billions of Yen Change from Change from 3Q previous projections same period of previous year Net Sales Operating Income (Operating Income Ratio) Recurring Profit (Recurring Profit Ratio) Net Inco
Slide 4: Sales by Business Segment in the Third Quarter
Sales by Business Segment in the Third Quarter ¾Compared with previous projections, sales were lower but higher than in the same period of previous year Billions of Yen Change from previous Change from same period projections of previous year 3Q Currency Actual Increase/ Currency Actual Increase/ Ex
Slide 5: Operating Income by Business Segment in the Third Quarter
Operating Income by Business Segment in the Third Quarter ¾3Q earnings were higher than previous projections and the level recorded in the same period of the previous year Billions of Yen Change from previous Change from same period projections of previous year 3Q Currency Actual Increase/ Currency
Slide 6: Forecasts of Business Performance in FY2004
Forecasts of Business Performance in FY2004 ¾4Q exchange rate assumptions: ¥110/$ and ¥127/euro Billions of Yen 4Q FY2004 FY2004 FY2003 Change Change from 1Q-3Q (Current (Previous from Forecasts Forecasts) Forecasts) projections FY2003 Net Sales 415.3 106.7 542.0 544.0 524.7 (0.4) +3.3 45.1 0.4 45.5
Slide 7: Forecasts of Net Sales by Business Segment
Forecasts of Net Sales by Business Segment Billions of Yen 524.7 542.0+3.3%)545.0 544.0 541.8 Recreation & 46.0 +10.0) 46.0 47.5 46.0 Others 41.8 Electronic Equipment and 60.6 76.0 (+25.4) 76.0 70.5 76.0 Metal Products Lifestyle-Related 45.0 Products 46.0 45.0 (-2.2) 45.5 45.0 AV/IT 83.7 79.0 (-5.6)
Slide 8: Forecasts of Operating Income by Business Segment
Forecasts of Operating Income by Business Segment Billions of Yen Currency Actual Previous FY2004 Increase/ FY2003 Exchange Increase/ (Nov 10) Projections (Decrease) Impact (Decrease) Projections Musical Instruments 9.8 12.0 +2.2 +2.3 (0.1) 12.0 AV/IT 3.2 4.0 +0.8 +2.7 (1.9) 4.0 Lifestyle-Related Pr
Slide 9: Musical Instruments 3Q Overview
Musical Instruments 3Q Overview • 3Q sales on an adjusted basis rose year-on-year. • In North America and Europe, the trend toward lower prices caused Christmas season sales to fall short of expectations. • In Asia, Korea and the near east registered growth. In China, the delay of market policies ca
Slide 10: Yamaha Musical Instrument Sales in the Japanese Market
YAMAHA Musical Instrument Sales in the Japanese Market In Q1–Q3, Electone sales fell by half year-on-year because of a lull ahead of a model change. Overall, sales declined 3% year-on-year. For the full year, sales are expected to recover with the launch of “STAGEA,” an Electone with new functions.
Slide 11: Yamaha Musical Instrument Sales in the U.S. Market
YAMAHA Musical Instrument Sales in the U.S. Market The negative portion from 1Q was recouped in 2Q, fueling a year-on-year rise in sales. In 3Q, sales were brisk, especially for portable keyboards. High-end pianos and wind instruments struggled. Wholesale Amount Millions of Dollars *Numbers in 600 p
Slide 12: Yamaha Musical Instrument Sales in the German Market
YAMAHA Musical Instrument Sales in the German Market Because of the ongoing slump in the overall economy, the financial condition of retailers is worsening. E-commerce (Internet) is starting to impact sales of wind instruments. Wholesale Amount Millions of EUR 250 *Numbers in parentheses refer to th
Slide 13: Yamaha Musical Instrument Sales in the U.K. Market
YAMAHA Musical Instrument Sales in the U.K. Market With the retail consumption index down 7% year-on-year and the economy in the midst of a pullback, sales of lower-priced pianos, electric pianos, and portable keyboards were firm. However, sales of PA and wind instruments remained weak. Wholesale Am
Slide 14: AV/IT 3Q Overview
AV/IT 3Q Overview • 3Q sales rose year-on-year because of the launch of mid/high-end AV receivers, after having been delayed, and the introduction of value-priced system goods made in China. However, sales were below target. • Routers and on-line karaoke systems were firm on the whole. • Inventories
Slide 15: Semiconductors 3Q Overview
Semiconductors 3Q Overview • Sales of mobile phones sound source chips remained brisk. • Sales of semiconductors outside of those for mobile phones were in line with plan. Sales Billions of Yen 63.3 58.5 46.0 Mobile phone sound 24.5 source chips FY2002 FY2003 FY2004 FY2004 Projections Previous Proje
Slide 16: Electronic Metals 3Q Overview
Electronic Metals 3Q Overview • Supported by a robust semiconductor market, sales of lead frame materials remained healthy. • End-3Q inventories were sharply down year-on-year. Disposal of Invar materials inventories was completed. *Numbers in parentheses refer Sales to the previous (Billions of Yen
Slide 17: Lifestyle-Related Products 3Q Overview
Lifestyle-Related Products 3Q Overview • 3Q sales were broadly in line with plan. • Market conditions rapidly deteriorated from late December as orders fueled by tax breaks on housing loans wound down. • Joint development with Air Water leads to announcement of new products. Sales scheduled to begin
Slide 18: Recreation 3Q Overview
Recreation 3Q Overview • Customer numbers good, but average spending per customer continues to fall. • Sales at Kiroro fell significantly short of target because of lack of snow. • Rationalization is progressing and losses narrowing. • Kiroro Golf Club closed at end-October as planned. Sales Operati
Slide 19: Others 3Q Overview
Others 3Q Overview • Sales of automobile interior and magnesium components for mobile phones remained brisk. • Golf product sales fell short of previous projections because of a change in the date for sales of new products (from December to January). • In 3Q, sales of automobile interior components
Slide 20: Inventories
Inventories ¾End-3Q inventories were slightly higher than planned. ¾New target for year-end inventories is at same level as announced along with interim results. Billions of 90.7 Yen 86.5 Goods in 80.1 Process/ 26.8 76.8 Materials 27.4 71.5 70.8 24.8 Other Products 4.8 25.6 4.2 24.9 25.2 AV/IT Produ
Slide 21: Interest-Bearing Liabilities
Interest-Bearing Liabilities ¾In the second half, resort deposit refunds will be around ¥5.5bn and convertible bonds will be redeemed. Billions of Yen Free Cash Flows 23.1 19.9 11.0 (11.7) 1.8 FY2003 FY2003 FY2004 FY2004 FY2004 First Half Second Half First Half 4Q 3Q Projection 69.5 Convertible bond
Slide 22: Capital Investments/Depreciation and Amortization
Capital Investments/ Depreciation and Amortization Billions of Yen 22.4 21.8 (18.7) (18.2) (19.0) 16.6 16.9(17.6) Capital 12.9 Investments 12.3 Second Half 9.2 9.4 10.2 8.4 8.4 8.5 Depreciation and Amortization 8.2 9.5 8.5 9.1 9.5 8.8 9.5 8.8 First Half FY2002 FY2003 FY2004 FY2004 Projection Previou
Slide 23: Balance Sheet Summary
Balance Sheet Summary (Billions of Yen) As of September As of March 31, As of September As of December As of March 31, 30, 2002 2003 30, 2003 31, 2003 2004 (Projections) Cash and Bank Deposits 40.3 44.5 44.2 46.0 26.4 Accounts and Notes Receivable 81.4 79.1 88.6 100.1 81.4 Inventories 90.7 80.1 86.5
Slide 24: 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, our actual performance may differ greatly from our