Yamaha Corporation · TSE:7951
Yamaha — Investor Presentation (April 2016)
32 slides from Yamaha's investor presentation, April 2016
Slide 1: April 2016 – March 2019
April 2016 – March 2019 (2016年4月～2019年3月)
Slide 2: Corporate Slogan and Corporate Philosophy
Corporate Slogan Sharing Passion & Performance Corporate Philosophy With our unique expertise and sensibilities, gained from our devotion to sound and music, we are committed to creating excitement and cultural inspiration together with people around the world. 2
Slide 3: Management Vision
Management Vision (Yamaha’s Medium to Long Term Goals) Becoming an indispensable, brilliantly individual company Boosting brand power to become a highly profitable enterprise 3
Slide 4: Review of Previous Medium-Term Management Plan (YMP2016)
Review of Previous Medium-Term Management Plan (YMP2016) (Yamaha Now) Business restructuring (sales and production in Japan, electronic devices) produced results, and profits grew sharply as costs were reduced and gross margins improved in the key musical instruments business FY2013.3 FY2016.3 Net S
Slide 5: Outline of New Medium-Term Management Plan
Outline of New Medium-Term Management Plan
Slide 6: Management Environment
Management Environment Environmental Factors (1) Although uncertainty remains over global macroeconomic prospects, in the medium term gradual growth is anticipated Return to gradual growth path in Europe and North American region once short term financial market Mature economies adjustments settle.
Slide 7: Positioning of New Medium-Term Management Plan
Positioning of New Medium-Term Management Plan Become an indispensable, brilliantly individual company Boost brand power to become a highly profitable enterprise (operating income ratio of 20%) New Medium-Term Management Plan 2016 ~ 2019 Increase Brand Power and Show Stronger Profitability as a Resu
Slide 8: Basic Strategy and Management Objective
Basic Strategy and Management Objective Basic Strategy Consolidate competitive superiority through adding new value and differentiation Further deepening our connection with customers, Raise attractive quality, and Always offer solutions with new value added Management Objective (over 3 years) Opera
Slide 9: Quantitative Financial Target
Quantitative Financial Target Operating Income Ratio (Management Objective) 12% 10% 9% 12％ 8% 7% 6% 6% 4% 3% 2% YMP2016 NEXT STAGE 12 0% FY2013.3FY2014.3FY2015.3 FY2016.3 FY2019.3 (projection) (billions of yen) Net Sales 366.9 410.3 432.2 437.0 465.0 Operating Income 9.2 26.0 30.1 41.0 55.0 ROE 1.9%
Slide 10: Net Sales/Operating Income Growth Analysis
Net Sales/Operating Income Growth Analysis (3 years) Industrial (billions of yen) Machinery/ Net Sales Audio Components Equipment and Others Emerging business countries +6.5 Musical +26.0 China +14.0 Instrument Mature (+20%) (+20%) business FY2019.3 markets +10.0 Net sales (+25%) FY2016.3 -23.5 +23.
Slide 11: Business Domains
Business Domains Enriched Lives Comfortable Society Musical Audio Industrial Machinery/ Instruments Equipment Components and Others Technology that Crosses Over Sound and People Yamaha’s core competencies 11
Slide 12: Four Key Strategies
Four Key Strategies Enriched lives Comfortable society (1) Develop products with distinctive individuality (2) Enhance customer Musical Audio interaction Industrial Machinery/ Instruments Equipment Components and Others (3) Continually reduce costs (4) Strengthen global business platforms Technology
Slide 13: (1) Develop Products with Distinctive Individuality
(1) Develop Products with Distinctive Individuality Add original value to excellent basic functions and develop products others cannot imitate Joy Beauty Confidence Discovery Fusion of Technology Evaluation technology to scientifically assess human sensitivities and sound recognition Mechatronics te
Slide 14: (2) Enhance Customer Interaction
(2) Enhance Customer Interaction Forge stronger, broader ties with customers Consumer Corporate and B2B Customers Respond to market expansion Develop value we provide to and diverse needs customers as a solutions vendor - Expand Sales Channel - Strengthen personnel and service bases Increase the wor
Slide 15: (3) Continually Reduce Costs
(3) Continually Reduce Costs Achieve ¥8 billion (net) in cost savings over three years Achieve continuous cost reductions similar to the previous medium-term plan period by reducing manufacturing costs (reorganising production processes, reducing purchasing costs, introducing new processing method
Slide 16: (4) Strengthen Global Business Platforms
(4) Strengthen Global Business Platforms Develop human resources to support global business operations and reinforce infrastructure Facilitate international careers Establish global core positions (approx. 200) to implement global grading system Promote cross-border personnel assignment Select
Slide 17: Major Business Strategies
Major Business Strategies NEXT STAGE 12 Yamaha Medium-Term Management Plan
Slide 18: Musical Instruments
Musical Instruments Increase profitability through technology development capabilities and marketing that takes advantage of Yamaha’s business scale Net Sales (billions of yen) Operating Income (billions of yen) and product mix selling prices Revision of +4.0 +4.0 +2.9 Guitars/ accessories -15.5 +4.
Slide 19: Musical Instruments
Musical Instruments (2) Accelerate enhancing product competitiveness through pursuing the essence of musical instruments using Yamaha original technology of scientific evaluation of assessing human sensitivities* and offering new value *Technology which quantitatively and qualitatively evaluates and
Slide 20: Musical Instruments
Musical Instruments (3) Optimise marketing and points of contact with customers by region to promote increase in brand power and enhance customer interaction Mature Markets Raise brand power in countries of western musical Market growth rate: culture 4% (over 3 years) 5,000 500 • Strengthen artist
Slide 21: Audio Equipment
Audio Equipment Accelerate growth through expanding the business domain with combination of technological innovation and enhanced customer support Net Sales (billions of yen) Operating Income (billions of yen) actual sales to rise in Increase due Actual sales growth 20% Cost reductions +7.5 investme
Slide 22: Audio Equipment
Audio Equipment (2) Pursue evolution of audio systems through progressing and Professional Audio fusing of signal processing and network technologies Equipment Further Improve Sound Quality and Reliability High Sound Quality: High Reliability: Further strengthen Yamaha’s own technology through rea
Slide 23: Audio Equipment
Audio Equipment (3) Increase the number of audio contractors who partner with Professional Audio Equipment Yamaha by 50% through reinforcing support system Prioritise enhancement of support systems for audio contractors Reinforce systems engineering and sales staff, especially in Europe, • Propose
Slide 24: Industrial Machinery and Components
Industrial Machinery and Components Establish third platform of Yamaha business as provider of solutions offering comfort, safe, and security Net Sales (billions of yen) Operating Income (billions of yen) product mix in cost and Improvement -2.0 +7.5 and other appliances Home base customer lineups a
Slide 25: ESG
ESG NEXT STAGE 12 Yamaha Medium-Term Management Plan
Slide 26: E (Environmental)
E (Environmental) Promote activities to creating a sustainable society by reducing environmental impact (1) Reduce environmental impact in business processes Use timber sustainably • Stricter verification processes on traceability and legal compliance of timber, greater use of certified timber, re
Slide 27: S (Social)
S (Social) Promote activities to creating a sustainable society through responding to social issues, enhancing employment policies, etc. (1) Enhance development of products and services that address issues facing society Apply sound-related knowledge and technology, and introduce more universal desi
Slide 28: G (Governance)
G (Governance) Continue to improve organizational structures and mechanisms to maintain and advance transparent, high-quality management (1) Corporate Governance Initiatives Ensure highly effective operation of the Board of Directors and swift implementation of decisions by separating corporate over
Slide 29: Investment and Return to Shareholders
Investment and Return to Shareholders
Slide 30: Investment and Return to Shareholders
Investment and Return to Shareholders Cash generated will be allocated to strategic investment, the remainder is 投資と株主還元 proactively returned to shareholders Investment Capital expenditure: ¥40 billion Baseline investment to support existing business (same level as depreciation) Return to sharehol
Slide 31: Yamaha: Sharing Passion & Performance
@ YAMAHA SHARING PASSION & PERFORMANCE
Slide 32: 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