Yamaha Corp (YAMCF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, everyone. I am Yamara. Thank you for gathering on your busy schedule. I would now like to explain the results for the second quarter of FY2026.3. I'd like to start by presenting the highlights of the first half of fiscal year ending in March 2026. Regarding the financial results summary for the first half of the fiscal year ending March 2026, revenue decreased due to sluggish market conditions in China, the absence of high demand for audio equipment for professional use, and delayed recovery in European markets. Core operating profit decreased due to the impact of additional U.S. tariffs and a worsening product mix resulting from lower sales of high-margin audio equipment for professional use. Regarding the earnings forecast for the full fiscal year ending March 2026, we anticipate that revenue decrease due to the end of high demand for audio equipment for professional use and the sluggish market conditions in China. We also expect a decrease in operating profit due to the impact of U.S. tariffs and a deterioration in the product and regional mix. Next, I will explain the overview of the financial results. Here are the actual results for the first half. For the fiscal year ending March 2026, revenue was 216.4 billion yen, core operating profit was 12.8 billion yen, a core operating profit ratio of 5.9%, and net profit was 9.8 billion yen. The exchange rates for the first half are shown on this slide. Revenue decreased by 5.2% compared to the previous period, but excluding the impact of exchange rates, the decrease was 2.9%. Next, this slide shows the factors contributing to the increase or decrease in core operating profit using a waterfall chart. In the first half of the previous fiscal year, core operating profit was 20.4 billion yen, the decrease i...