Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2015.3 Earnings Presentation
34 slides from Yamaha's earnings presentation, Feb 5, 2015
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY2015.3
Yamaha Corporation Analyst and Investor Briefing on the Third Quarter of Fiscal Year Ending March 31, 2015 (FY2015.3) February 5, 2015
Slide 2: Overview of Performance in the Third Quarter
Overview of Performance in the Third Quarter (October-December) Results Summary ■Sales and income increased year-on-year and exceeded previous projections. Musical instrument sales were generally robust. In the audio equipment segment, although professional audio equipment sales grew, AV product
Slide 3: Performance in the Third Quarter of FY2015.3 (Three Months)
Performance in the Third Quarter of FY2015.3 (Three Months) (Billions of yen) Changes from FY2015.3 3Q Changes from the FY2014.3 FY2015.3 same period of 3Q results 3Q results the previous year previous previous projections projection Net Sales 111.0 116.9 +5.3% 116.6 +0.2% Operating Income 9.1 10.6
Slide 4: Performance by Business Segment in the Third Quarter (Three Months)
Performance by Business Segment in the Third Quarter of FY2015.3 (Three Months) Net Sales Operating Income Change from the Year-on-year previous projections (Billions of yen) change 116.9 (0.2%) 116.6 10.6 9.9 (5.3%) 111.0 9.1 (-3.2%) 5.7 (-11.7%) 6.5 0.4 ■Others 5.9 3.0 ■Electronic (1.1%) 3.0 0.1 ■
Slide 5: Musical Instruments 3Q (Three Months)
Musical Instruments 3Q (Three Months) 3Q (Billions of yen) ■Net Sales ■Operating Income 3Q Overview 69.7 76.3 74.4 • Sales and income increased year-on-year and exceeded previous projections Music schools, 20.0 20.0 • Discounting the impact of exchange rates, etc. 20.0 sales increased year-on-year i
Slide 6: Audio Equipment 3Q (Three Months)
Audio Equipment 3Q (Three Months) 3Q (Billions of yen) ■■■Net Sales ■Operating Income 3Q Overview 31.8 32.7 • Sales increased year-on-year, but were 30.6 3.4 lower than previous projections ICT devices 1.8 3.5 • AV products continued to struggle, and karaoke equipment sales were lower than PA equipm
Slide 7: Electronic Devices 3Q (Three Months)
Electronic Devices 3Q (Three Months) 3Q (Billions of yen) ■Net Sales ■Operating Income 3Q Overview • Sales fell sharply year-on-year, but were in line with previous projections • Market conditions remained challenging for amusement equipment and geomagnetic sensors • Deferment of development expendi
Slide 8: Others 3Q (Three Months)
Others 3Q (Three Months) 3Q (Billions of yen) ■■■■Net Sales ■Operating Income 3Q Overview • Sales declined year-on-year and were below previous projections 5.9 6.5 5.7 • Sales of automobile interior wood components increased from the same FA equipment, 1.1 1.5 etc. 1.1 period of the previous year 1.
Slide 9: Performance in the First Three Quarters of FY2015.3 (Nine Months)
Performance in the First Three Quarters of FY2015.3 (Nine Months) (Billions of yen) FY2015.3 Changes from FY2014.3 FY2015.3 Changes from same 1-3Q results 1-3Q results previous year 1-3Q previous projection period of the the previous projections Net Sales 308.7 323.2 +4.7% 323.0 +0.1% Operating Inco
Slide 10: Performance by Business Segment in the First Three Quarters (Nine Months)
Performance by Business Segment in the First Three Quarters of FY2015.3 (Nine Months) Net Sales Operating Income Change from the Year-on-year change previous projections (Billions of yen) (4.7%) 323.2 323.0 308.7 (0.1%) (-0.2%) 17.8 ■Others 17.8 (-4.0%) 18.5 (-28.9%) 10.6 10.5 25.7 25.0 ■Electronic
Slide 11: FY2015.3 1-3Q Operating Income Analysis (Nine Months)
FY2015.3 1-3Q Operating Income Analysis (Nine Months) (Billions of yen) Versus same period of the previous year Improvement in manufacturing Increase in cost labor cost Decline in Decrease in +¥3.0 at overseas profitability of SG&A factories Decline electronic resulted from devices +¥0.5 -¥1.0 incre
Slide 12: Outlook for Fourth Quarter and Full Year
Outlook for Fourth Quarter and Full Year Outlook for 4Q Although musical instrument sales are likely to be robust in North America and show a trend toward recovery in Other Markets, the outlook remains cautious for Japan and Europe. In the audio equipment segment, professional audio equipment sa
Slide 13: Forecast for Performance in FY2015.3 (Full Year)
Forecast for Performance in FY2015.3 (Full Year) (Billions of yen) Change FY2015.3 Change FY2014.3 FY2015.3 from full year from Full Year previous 1-3Q Full 4Q year previous previous 4Q 1-3Q New results projections projections Year projections Projections Net Sales 308.7 101.6 410.3 323.2 106.8 430.
Slide 14: 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 (4.8%) 430.0 ( - ) 430.0 30.0 410.3 29.0 (1.4%) 24.0 (-7.7%) 26.0 0.0 5.5 0.5 ■Others 26.0 ■Others 23.7 13.5 ■Electronic 18.8 (-28.3%)
Slide 15: 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 Gain resulted manufacturing labor cost from increase/ cost at overseas decrease in +¥4.0 factories sales and Decline in production Decrease in -¥1.5 profitability of SG&A
Slide 16: Musical Instruments 4Q and Full Year Projections
Musical Instruments 4Q and Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income 4Q Projections • Sales in the Japanese market are expected 281.0 277.5 262.3 to decline from the same period of the previous year, when demand was 77.4 Music 78.1 particularly high prior to the
Slide 17: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, 107.6 104.4 (97%) discounting the impact of exchange rates 4Q 29.2 26.3 (90%) 3Q 25.6 26.1 (102%) (106%) 40.8 50.5 (114%) 45.5 49.5 (104%) 43.2 47.6 1-3Q (100%) 13.9(118%) 9.9 (100%) 11.6(
Slide 18: Audio Equipment 4Q and Full Year Projections
Audio Equipment 4Q and Full Year Projections Full Year (Billions of yen) ■■■Net Sales ■Operating Income 4Q Projections • Conditions will remain challenging for AV 111.5 112.0 products 105.5 • Installation of commercial audio 13.3 13.5 ICT devices 7.8 equipment is expected to drive higher sales of pr
Slide 19: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, discounting the impact of exchange rates 28.6 30.2 (101%) 28.0 (102%) 24.6 24.3(99%) 25.1 6.7 (104%) 6.5 (91%) 7.2 (110%) 20.6 19.5 4Q 5.7 7.7 8.4(110%) 9.2 (96%) 4.7 (90%) 9.2 4.4 8.5 (93%) 3
Slide 20: 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) 48.1 49.6 (98%) 85.6 (107%) 76.7 49.2 46.3 (89%) 4Q 12.6 12.3 (93%) 19.2 (101%) 18.1 10.3 1
Slide 21: Electronic Devices 4Q and Full Year Projections
Electronic Devices 4Q and Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income 4Q Projections • Sales are expected to be lower than previous projections • Further delay is anticipated in recovery of the amusement equipment market • Sluggish customer sales are projected to c
Slide 22: Others 4Q and Full Year Projections
Others 4Q and Full Year Projections Full Year (Billions of yen) ■■■■Net Sales ■Operating Income 4Q Projections • Golf product and resort sales are expected 23.7 24.0 26.0 to be lower than previous projections amid ongoing headwinds 7.3 • Factory automation equipment sales are FA equipment, etc. 5.7
Slide 23: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) 13.6 ■Others (12.8) 13.6 ■Electronic Devices (9.3) 9.8 (9.2) 10.8 0.7 (12.7) 0.8 (12.6) ■Audio Equipment 0.6 0.7 ■Musical Instruments 0.8 0.6 1.2 3.2 3.0 0.7 7.1 1.9 0.2 0.1 2.8 1.8 6.7 9.1 9.0 4.5 6.6
Slide 24: Inventories
Inventories Inventories at the end of the third quarter (Dec. 31, 2014) amounted to ¥94.9 billion including the year-on-year forex impact of +¥4.9 billion Inventories at the end of the fiscal year is forecast to be ¥87.9 billion. The actual inventories will increase by +¥1.8 billion versus previou
Slide 25: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 3Q As of fiscal year end As of Dec. 31, As of Dec. 31, As of Mar. 31, As of Mar. 31, Change 2015 projections Change 2013 2014 2014 Cash and deposits 68.1 74.5 +6.4 60.6 74.7 +14.1 Notes and accounts receivable 64.8 68.2 +3.4 56.7 58.8 +2.1 Invento
Slide 26: Return to Shareholders
配当 Return to Shareholders Annual dividends for FY2015.3 is forecast to be ¥30 47.0 38.6 Payout Ratio (%) 27.7 22.8 Annual dividend per share (yen) 30 27 10 10 10 FY2011.3 FY2012.3 FY2013.3 FY2014.3 FY2015.3 projections 26
Slide 27: Appendix
Appendix
Slide 28: Forecast for Performance in the Fourth Quarter of FY2015.3
Forecast for Performance in the Fourth Quarter of FY2015.3 (Three Months) (Billions of yen) FY2015.3 Changes from FY2015.3 Changes from FY2014.3 same period of 4Q 4Q previous the previous 4Q results the previous projections year projections projection Net Sales 101.6 106.8 +5.1% 107.0 -0.2% Operatin
Slide 29: Forecast by Business Segment in the Fourth Quarter
Forecast for Performance by Business Segment in the Fourth Quarter of FY2015.3 (Three Months) Net Sales Operating Income Year-on-year change Change from the previous projections (Billions of yen) (5.1%) 106.8 (-0.2%) 107.0 101.6 (7.2%) 6.3 (-16.0%) 7.5 ■Others 5.9 2.9 ■Electronic (-27.3%) (-27.5%) 4
Slide 30: Third Quarter Non-Operating and Extraordinary Income/Loss (Nine Months)
Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss (Nine Months) FY2014.3 1-3Q FY2015.3 1-3Q FY2015.3 1-3Q (Billions of yen) previous projections Non-Operating Income/Loss Patent income +¥0.6 Net financial income 1.0 1.3 1.2 Other -1.5 -1.0 -2.2 Total -0.5 0.3 -1.0 Extraordinary Inc
Slide 31: Full Year Non-Operating and Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2014.3 full year FY2015.3 full year FY2015.3 full year (Billions of yen) projections previous projections Non-Operating Income/Loss Net financial income 2.6 2.2 1.8 Other -2.5 -2.2 -2.8 Total 0.1 0 -1.0 -Gain on sales of investment se
Slide 32: Quarterly Sales and Income
Quarterly Sales and Income (Billions of yen) 111.0 116.9 100.7 101.6 106.8 106.8 97.0 99.6 9.1 8.8 10.6 6.2 7.5 6.2 3.2 4.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2014.3 FY2015.3 projections 32
Slide 33: Quarterly Sales and Income by Segment
Quarterly Sales and Income by Segment (Billions of yen) Musical Instruments Audio Equipment 62.6 64.3 69.7 65.7 65.7 70.4 76.3 68.6 23.5 25.3 30.6 26.1 24.3 26.4 31.8 29.0 8.3 7.8 5.1 6.3 5.8 4.4 3.8 4.5 2.7 2.7 0.9 1.8 1.3 0.8 0.6 0.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2014.3 FY2015.
Slide 34: Forecast cautionary note
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