Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2005 Earnings Presentation
29 slides from Yamaha's earnings presentation, Feb 10, 2005
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY Ending March 2005
Analyst and Investor Briefing on the Third Quarter of the Fiscal Year Ending March 31, 2005 February 10, 2005 YAMAHA CORPORATION
Slide 2: Overview of Performance in the Third Quarter
Overview of Performance in the Third Quater T In 3Q, sales of musical instruments and AV/IT products fell below the target levels, and overall sales were down about 4% from the November 2, 2004, projections announced along with the release of the interim results. Boosted by "STAGEA“ ElectoneTM effec
Slide 3: Performance in the Third Quarter of FY2005
Performance in the Third Quarter of FY2005 ¾ Net sales and income were below the same period of the previous fiscal year. ¾ Net income increased due to gain on a reimbursement for the payment of the prior-year obligations associated with the substitutional portion of the employee welfare pension fun
Slide 4: Net Sales by Business Segment in the Third Quarter of FY2005
Net Sales by Business Segment in the Third Quarter of FY2005 (Billions of Yen) 150.9 149.1 144.9 -2.8% 144.6 -3.0% 9.7 143.7 -4.8% Recreation & Others 11.4 9.9 +2.1 9.9 -13.2 9.9 16.9 Electronic Equipment and 22.1 16.5 -25.3 16.5 16.5 -2.4 Metal Products 11.7 12.0 0 12.0 12.0 +2.6 Lifestyle-Related
Slide 5: Operating Income/Loss by Business Segment in the Third Quarter of FY2005
Operating Income/Loss by Business Segment in the Third Quarter of FY2005 Billions of Yen) FY2004 FY2005 Increase/ Currency Actual Nov. 2 3Q) (3Q) (Decrease) Exchange Increase/ Impact (Decrease) Projections Musical Instruments 5.5 7.4 +1.9 +0.2 + 1.7 6.7 AV/IT 3.2 2.4 (0.8) +0.1 (0.9) 2.1 Lifestyle-R
Slide 6: Forecast for Business Performance in FY2005 (Full Year)
Forecast for Business Performance in FY 2005 (Full Year) ¾ Exchange rates for 4Q are set at ¥110/USD and ¥134/euro (previously ¥127). ¾ Full-year projections are for lower sales and income than previous projections. Billions of Yen) FY2005 FY2005 Change from Change 1Q to 3Q 4Q FY2004 New Previous Pr
Slide 7: Forecast for Net Sales by Business Segment in FY2005
Forecast for Net Sales by Business Segment in FY2005 (Full Year) (Billions of Yen) 539.5 541.0 +0.3% 543.7 +0.8% 546.5 538.5 -1.5% Recreation & Others 46.2 43.0 -6.9 43.0 42.5 43.0 +1.2 Electronic 70.0 70.0 72.0 Equipment and 76.9 -9.0 70.0 -2.8 Metal Products 43.0 -4.0 43.0 42.0 43.0 +2.4 Lifestyle
Slide 8: Forecast for Operating Income/Loss by Business Segment in FY2005
Forecast for Operating Income/Loss by Business Segment in Fiscal 2005 (Full Year) (Billions of Yen) FY2005 Increase/ Currency Actual Nov. 2 FY2004 (New Exchange Increase/ Projections projections) (Decrease) Impact (Decrease) Musical Instruments 10.5 14.0 +3.5 +0.3 +3.2 15.5 AV/IT 4.4 4.5 +0.1 +1.2 (
Slide 9: Musical Instruments
Musical Instruments 3Q Overview Propriety Policies for 4Q z In 3Q, higher sales and income from the same period of z 4Q sales expected higher than the previous projections and year previous year on year, due to sales expansion of Disklavier “Mark IV” and new z Actual sales increased 3.2% compared wi
Slide 10: AV/IT
AV/IT 3Q Overview Propriety Policies for 4Q z In 3Q, increase in sales but a decline in income compared with z 4Q net sales will be in line with previous projections. the same period of the previous year. z Most important theme is getting new product YSP-1 (Yamaha z Actual sales of the AV/IT busines
Slide 11: Lifestyle-Related Products
Lifestyle-Related Products 3Q Overview Propriety Policies for 4Q z In 3Q, sales and income were up from previous projections. z 4Q sales target ¥9.8 billion, above the same period of the z Sales increased due to the success of new kitchen products previous year and previous projections. launched in
Slide 12: Essentials of Lifestyle-related Products Segment Structural Reform
Essentials of Lifestyle-related Products Segment Structural Reform T Business selection and concentration z Concentrate on bathrooms and system kitchens z Staged withdrawal from unprofitable construction materials/doors business (in two years, for completion by the end of March 2007) z Use the space
Slide 13: Electronic Equipment and Metal Products
Electronic Equipment and Metal Products 3Q Overview Propriety Policies for 4Q z Operating income for 3Q halved year on year, due to large z Previous projections for sales and income have been adjusted falloff in semiconductor sales. downward in view of expected market conditions. z Semiconductor sal
Slide 14: Recreation
Recreation 3Q Overview Propriety Policies for 4Q z In 3Q, sales and income were below the previous year and z 4Q sales will be slightly down from previous projections but under previous projections. profit/loss targets at breakeven. z Number of customers decreased. Due to some facilities’ z Will con
Slide 15: Others
Others 3Q Overview Propriety Policies for 4Q z In 3Q, this segment as a whole maintained profitability. z 4Q sales target of ¥6.6 billion, up year on year and above z FA business activities reported a strong performance. Sales previous projections of magnesium components for mobile phones were in li
Slide 16: Non-Operating Income/Extraordinary Income (Loss) for the Third Quarter
Non-Operating Income /Extraordinary Income (Loss) for the Third Quarter FY2005 (Q3) FY2004 (Q3) FY2005(Q3) (Nov. 2 projections) Billions of Yen) Non-Operating Income Equity method income 4.0 3.4 3.7 Net financial income (loss) (0.3) (0.2) (0.4) Other (0.9) (0.7) (1.1) Total + 2.8 + 2.5 + 2.2 Extraor
Slide 17: Non-Operating Income/Extraordinary Income (Loss) for Fiscal 2005 (Full Year)
Non-Operating Income /Extraordinary Income (Loss) for Fiscal 2005 (Full Year) FY2005 FY2005 FY2004 (New projections) (Nov. 2 projections) (Billions of Yen) Non-Operating Income Equity method income 10.4 9.1 9.3 Net financial income (loss) (1.0) (0.4) (0.5) Other (3.5) (3.7) (4.3) Total + 5.9 + 5.0 +
Slide 18: Inventories
Inventories ¾Inventories at the end of 3Q were up year on year and above previous projections. ¾Including production cuts, compress inventories to previous-year levels by year end (Billions of Yen) At the end of 3Q At the end of the year 82.8 76.8 74.4 73.7 72.1 69.5 Goods in 27.6 Process/ 25.6 Mate
Slide 19: Interest-Bearing Liabilities (Actual Balance)
Interest-Bearing Liabilities (Actual Balance) （Billions of Yen） ） Free Cash Flows 37.7 24.2 1.8 (2.4) 2.6 FY2004 FY2004 FY2005 FY2005 FY2005 1H 2H 1H 3Q 4Q (New projections) Interest-Bearing Liabilities 46.7 Convertible bonds 243 23.2 22.0 16.8 Long- and short- term borrowings, 224 232 220 less cash
Slide 20: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/ R&D Expenses 24.0 24.1 Capital Expenditure/Depreciation 21.2 4.6 5.3 19.8 19.8 Billions of Yen) 16.9 17.6 4.9 17.5 5.8 5.3 5.7 Others 3.0 5.0 5.4 4.4 5.0 Electronic 3.3 Equipment and 2.8 4.3 4.4 3.4 Metal Products Musical 13.3 14.2 Instruments/ 10.6 11.9 9.8 9.1 9.7
Slide 21: Balance Sheet Summary
Balance Sheet Summary (Billions of Yen) At the end of 3Q At the end of fiscal year Dec. 03 Dec. 04 Change Mar. 04 Mar. 05 Change Cash and Bank Deposits 46.0 42.8 (3.2) 32.1 44.4 12.3 Accounts and Notes Receivable 100.1 89.3 (10.8) 78.7 73.0 (5.7) Inventories 76.8 82.8 6.0 72.1 73.7 1.6 Other Current
Slide 22: $S SH QG L[
$S SH QG L[
Slide 23: Yamaha Musical Instrument Sales in the Japanese Market
YAMAHA Musical Instrument Sales in the Japanese Market The piano market continued its downtrend, while the “STAGEA” Electone TM maintained strong sales (about 23,000 units shipped since rollout, of which about 20,000 shipped in this term up to end-December). This product uses the latest sound source
Slide 24: Yamaha Musical Instrument Sales in the U.S. Market
YAMAHA Musical Instrument Sales in the U.S. Market Christmas season shipments were strong for Disklavier “Mark IV”, while electronic pianos were slightly weak. But portable keyboards trended well, centering on volume retailers. 553 532 (104%) Wholesale Amount (106%) 501 Millions of U.S. Dollars) (10
Slide 25: Yamaha Musical Instrument Sales in the German Market
YAMAHA Musical Instrument Sales in the German Market General retailing trended strongly, in particular the overall electronic piano market. Low priced portable keyboard models had difficulties, while special offers maintained sales of wind instruments. 194 188 200 Wholesale Amount 190 (102%) 182 (97
Slide 26: Yamaha Musical Instrument Sales in the U.K. Market
YAMAHA Musical Instrument Sales in the U.K. Market Although Christmas sale retailing fell short of expectations, sales trended strongly for grand pianos, electronic pianos and portable keyboards. Wind instruments were weak and special offers are planned. 80 Wholesale Amount 65 65 Millions of ) 63 (1
Slide 27: Scale of Global Market for Home Theater Products
Scale of Global Market for Home Theater Products (Home theater systems + AV amplifiers/receivers) <Home theater systems > <AV amplifiers/receivers> The growth rate becomes duller, but annual growth in the Overall markets continue to shrink. 10% range is expected in 2005. North America:Sales growth o
Slide 28: Yamaha's AV Amplifier Market Share
YAMAHA’s AV Amplifier Market Share Japan Home theater systems: AV amplifiers Share of Total Sales Amount GfKJ) Share of Total Sales Amount GfKJ) 20% 40% 30% 10% 20% 14 11 10 14 10% 0% 0% ‘01 ‘02 ‘03 ’04 ‘01 ‘02 ‘03 ’04 U.S. AV receivers Share of Total Sales Amount INTELECT) Home theater systems: 10%
Slide 29: 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, our actual performance may differ greatly from our