Yamaha Corporation · TSE:7951
Yamaha — Investor Presentation (February 2001)
43 slides from Yamaha's investor presentation, Feb 8, 2001
Slide 1: Mid-Term Presentation of Management Plans
April, 2001-March, 2004 Mid-Term Presentation of Management Plans The figures forecast for future plans and outlooks have been calculated on the basis of current information available to YAMAHA and the YAMAHA Group. They are, therefore, subject to risks and uncertainties. Accordingly, our actual per
Slide 2: Today's Topics
Today's Topics 1. Striving for Growth 2. Targets
Slide 3: Goals to be Achieved through the Mid-Term Plan
Goals to be Achieved through the Mid-Term Plan Striving for Growth Group Management Increasing the Company’s Value Enhancing the YAMAHA Brand
Slide 4: 1. Striving for Growth
1. Striving for Growth =. p= ‘>
Slide 5: YAMAHA Group Structure
YAMAHA Group Structure Yamaha Music Foundation I. Core Business II. Lifestyle 䋽 Sound / Music 䋽 Related and Leisure III. Electronic Parts and Materials Musical Instruments Lifestyle Related Electronic Metals AV / IT Resorts Car Components Semiconductors Golf Gear Media Related Factory Automation / M
Slide 6: Strategies for Growth
Strategies for Growth (billions of yen) 610.0 527.8 520.0 + 90.0 Storage Heads 20.2 䌔䌈 250ం 22.2 Semiconductors Core Business Sound /Music (Semiconductors Included) Lifestyle-Related and Leisure Electronic Parts and Materials FY 2000 FY 2001 FY 2004
Slide 7: Breakdown of Growth (+¥90 billion)
Breakdown of Growth (+¥90 billion) Core Businesses + 63.5 (413.5 㸢 477.0) Lifestyle Related and Leisure + 6.5 (71.5 㸢 78.0) Electronic Parts and Materials + 20.0 (35.0 㸢 55.0)
Slide 8: 1-1. Core Businesses
1-1. Core Businesses YAMAHA is working hard to maximize the output of its core businesses (musical instruments and audiovisual equipment) in a manner that sustains the growth of each separate business as well as the Company's global operations on a consolidated base.
Slide 9: Musical Instruments
Musical Instruments 䋭 The global market for musical instruments is growing. 䋭 Therefore, we plan to Increase sales 12% over the next three years by building a competitive advantage in various markets. 䋨billions of yen䋩 䋩 400 䋫34.0 3㪈4 300 280 200 100 0 FY 2000 FY2001 FY 2004
Slide 10: Breakdown of Growth for Musical Instruments
Breakdown of Growth for Musical Instruments FY 2001 FY 2004 䋫/䋭 䋭 䋨billions of yen䋩 Pianos 56.9 61.0 +4.1 (+7.2%) Home Keyboards 63.9 69.7 +5.8 䋨+9.1%) Wind, String, and Percussion Instruments 51.9 63.0 +11.1 (+21.4%) Pro Audio / Synthesizers 27.0 37.0 +10.0 (+37.0%) Music Schools 45.5 48.5 +3.0 (+6
Slide 11: Musical Instruments: Major Policies
Musical Instruments 䂓 4 Major Policies Strengthen YAMAHA’s professional audio business through the development of the music production equipment sub-market Expand business in the Chinese market Improve sales network in Japan for musical instruments Increase the number of adult music students
Slide 12: Expanding Professional Audio Business through Music Production Market
Expanding YAMAHA’s Professional Audio Business through the Music Production Market 䋭 YAMAHA is determined to expand its operations in the promising market for music production through: 䂓Expanding its presence in the market for digital mixers 䂓Developing new effect processors 䂓Strengthening its posit
Slide 13: Chinese Market
Chinese Market 䋭With the Chinese market for musical instruments expanding rapidly, YAMAHA is accelerating its efforts to develop and implement plans for local production and marketing in China. (billions of yen) 150 100 Estimated size of the Chinese market 50 0 YAMAHA Present In 3 years In 5 years I
Slide 14: Improved Organization of Sales and Marketing System in Japan
Improved Organization of Sales and Marketing System in Japan Background Depressed market conditions and major changes in : marketing and sales networks Goals: Decentralized decision making Creating front-line specialists Increased efficiency and business consolidation Reinforced customer ties Starti
Slide 15: Aggressive Strategies to Develop the Market for Adult Students
Aggressive Strategies to Develop the Market for Adult Students 䋭YAMAHA is driving demand in the music education market by aggressively implementing adult-oriented strategies. YAMAHA Programs Sales and Marketing Yamaha Music Group in Japan Foundation Classrooms Yamaha Music Yamaha Music Sales Media C
Slide 16: AV / IT
AV / IT YAMAHA’s strategy to become the #1 home theater producer includes: 䂓More competitive CD-R/RW products with improved sales potential 䂓Continued growth in router sales and the development of products through 䇭 the fusion of AV / IT technology. (billions of yen) 䋫24.5 127.5 103 100 0 FY 2000 FY
Slide 17: Strategy to become #1 in Home Theaters
Strategy to become # 1 in Home Theaters 䋭YAMAHA has entered the visual entertainment industry and is striving to provide customers with total solution home theaters. (billions of yen) +20.7 100 73.7 53 0 FY 2000 FY 2001 FY 2004
Slide 18: Improved CD-R/RW Performance with Greater Sales Potential
Improved CD-R/RW Performance with Greater Sales Potential 䋭YAMAHA is challenging itself to build a strong position in the after market for external devices through focusing on equipment speed and dependability. 䂓 At least two new models to be released every year 䂓 Development of a range of models ad
Slide 19: Continued Growth in Router Sales
Continued Growth in Router Sales Concentrating on edge routers for individual and small office and home office(SOHO) consumers, YAMAHA is aiming for medium-term sales of ¥10 billion. (billions of yen) 15 䋫4.2 10 9.5 4.3 5.3 5 0 FY 2000 FY 2001 FY 2004
Slide 20: Semiconductors
Semiconductors 䋭YAMAHA intends to strengthen its earning power through intelligent sound- and network-centered devices by: 䂓 Expanding its mobile phone audio chip business 䂓 Making efforts to secure the number one share of the market for amusement-related products 䂓 Making improvements in its line o
Slide 21: Plans for Digital Media Business
Plans for Digital Media Business Yamaha Music Media Develop digital media content and expand business through strategic alliances Yamaha Music Communications Discover new artists Content Improve mobile content and work towards increased globalization Digital Media Promotion Start new businesses (bil
Slide 22: Review of Strategies for Digital Media Businesses
Review of Strategies for Digital Media Businesses Projects Targets Status •Music Front Search for artists via 3,000 songs; First debut Internet in December •Music Portal Site MidRadio, electronic Site opened in December score distribution •Ringer Melody Distribution Sound chips ¥6.0 billion by end o
Slide 23: 1-2. Lifestyle Related and Leisure
1-2. Lifestyle Related and Leisure Faced with a flagging economy, YAMAHA is analyzing its options and looking for ways to strengthen its business base and improve profitability.
Slide 24: Lifestyle-Related Business (Yamaha Livingtec Corporation)
Lifestyle-Related Business (Yamaha Livingtec Corporation) 䋭With severe economic conditions denting profits, YAMAHA is looking to improve the quality and sales potential of its products to solidify its business base by: 䂓Making customers’ homes into “Life Resorts” 䂓YAMAHA is concentrating on the mark
Slide 25: Recreation (Yamaha Resort Corporation)
Recreation (Yamaha Resort Corporation) YAMAHA is working to make structural improvements in all of its facilities and is reinforcing its existing operational framework. 䂓Profitable segments of the Company are contributing to overall brand and Group value and reputation. 䂓YAMAHA is streamlining its o
Slide 26: Action Plan for Resorts
Action Plan for Resorts Selectively allocate resources and continue working to improve profitability for all facilities Tsumagoi Nemu Kiroro Leverage the reputations of these resorts to improve the image of the entire resort system Katsuragi Kitanomaru Toba Make specific adjustments to ensure t
Slide 27: 1-3. Electronic Parts and Materials
1-3. Electronic Parts and Materials YAMAHA will foster balanced business growth by drawing on the strengths of the various technologies it has developed in its core businesses.
Slide 28: Electronic Metal Parts (Yamaha Metanix Corporation)
Electronic Metal Parts (Yamaha Metanix Corporation.) YAMAHA is integrating its information- and communication management resources to increase the value of its products. The Company is taking steps to: 䂓Lay the foundations for its invar business 䂓Commercialize new types of materials 䂓Expand its proc
Slide 29: Factory Automation, Molds, and Parts
Factory Automation (FA), Molds, and Parts (Yamaha Fine Technologies Co., Ltd.) 䋭 YAMAHA will broaden its customer base through a total solution approach built on synergies from its FA-, molds-, and parts-related business segments, and it will work to strengthen its business with customers outside th
Slide 30: Car Components
Car Components 䋭It is projected that YAMAHA's car component business will continue to generate annual revenues of ¥10 billion. Targets include: 䂓Strengthening the Company's competitive edge in the market for panels and steering wheels 䂓Securing a wider customer base 䋨billions of yen䋩 䋩 15 䋭 10 10 10
Slide 31: 1-4. Generating New Business
1-4. Generating New Business YAMAHA has been incubating a thermoelectric modules business, and it is now taking steps to make it fully operational.
Slide 32: Thermoelectric Modules
Thermoelectric Modules 䋭 YAMAHA will secure a strong position in the market for parts related to light- wave communication by employing its existing metal and materials technology. Other plans include: 䂓Risk reduction through flexible business models that make use of alliances as well as licensing a
Slide 33: Industry Structure of Light-Wave Communications Market
Industry Structure (the flow of goods in the Market for light- wave communications systems) 䂓Components made from endothermic elements can be used in laser modules to amplify wave frequencies used in light-wave communication (Peltier Module). Light-Wave Communication Peltier Module Laser Module Syst
Slide 34: Market Projections
Market Projections 䂔YAMAHA's basic strategy YAMAHA will make use of its superior technology (high-efficiency and high- density packaging) to create businesses focusing on the lucrative market for modules with medium- to high-output capabilities. (billions of yen) High output module 20 18 16 14 Mediu
Slide 35: 2. Targets
op J) eB) ON aa qe) _ NI
Slide 36: Numerical Targets for the YAMAHA Group
Numerical Targets for the YAMAHA Group 䋭 Targets for the term ending March 2004 are as follows: 䋼Consolidated 䋾䋼Non-consolidated䋾 Net Sales ¥610 billion ¥380 billion Recurring Income ¥30 billion ¥15 billion Return on Equity 䇭9.5䋦 7.5䋦 Free Cash Flow ¥17 billion ¥11 billion
Slide 37: Net Sales
Net Sales 䋨billions of yen䋩 610.0 527.8 520.0 Overseas 276.0 219.9 205.0 Japan 307.9 315.0 334.0 March,’00 March,’01 March,’04
Slide 38: Exchange Rate
Exchange Rate 䋨yen䋩 䋼March,’01䋾 䋼March,’04䋾 䌕䌓 dollar 107 110 euro 97 100
Slide 39: Recurring Income/Net Income (Loss)
Recurring Income/Net Income (Loss) 䋨billions of yen) 30 22.0 19.0 12.5 8.5 March,’00 March,’01 March,’04 -40.7
Slide 40: Overseas Production
Overseas Production 䋨billions of yen䋩 34% Percentage of 30% overseas production 104 20% 84 55 Overseas production March,’00 March,’01 March,’04
Slide 41: Projected Number of Employees
Projected Number of Employees (number of employees) 23,500 23,100 23,300 22,800 21,599 11,204 12,000 12,260 Overseas 9,357 11,640 12,242 12,296 11,160 11,100 11,040 Japan March,'00 March,'01 March,'02 March,'03 March,'04
Slide 42: Capital Investment and Depreciation Costs
Capital Investment (depreciation) 䋨billions of yen䋩 28.6 Depreciation Costs 18.5 19.6 19.6 19.9 18.0 18.0 18.0 16.5 18.1 March,’00 March,’01 March,’02 March,’03 March,’04
Slide 43: WHVINWA &
WHVINWA &