Yamaha Corporation · TSE:7951
Yamaha — H1 FY2008.3 Earnings Presentation
34 slides from Yamaha's earnings presentation, Nov 1, 2007
Slide 1: Analyst and Investor Briefing on the First Half of FY2008.3
Analyst and Investor Briefing on the First Half of the Fiscal Year Ending March 31, 2008 (FY2008.3) November 1, 2007 YAMAHA CORPORATION
Slide 2: Overview of Performance in the First Half
Overview of Performance in the First Half First Half Results Sales and operating income exceeded previous projections (made on August 1) and were higher than the same period of the previous year. Net sales were generally in line with previous projections. They increased by 6.1% (¥16.2 billion) c
Slide 3: Performance in the First Half of FY2008.3
Performance in the First Half of FY2008.3 ¾Net sales and operating income were higher than the same period of the previous year and exceeded previous projections (Billions of yen) Change from FY2008.3 Change FY2007.3 FY2008.3 same period (1H) 2Q (1H) (1H) from of previous previous Results projection
Slide 4: Performance by Business Segment in First Half of FY2008.3
Performance by Business Segment in First Half of FY2008.3 Net Sales Operating Income 280.7 (+6.1%) 280.5 (+0.1%) (Billions of yen) Recreation 264.5 & others 25.4 (+13.9) 24.2 (+5.0) 21.3 0.3 Recreation & others Lifestyle- 22.3 (+1.8) 0.3 related 22.9 23.9 (-4.2) Lifestyle- products 22.5 1.8 17.5 0.2
Slide 5: Forecast for Performance in FY2008.3 (Full Year)
Forecast for Performance in FY2008.3 (Full Year) ¾Full year net sales and income projections revised upward (Billions of yen) FY2007.3 Actual FY2008.3 New Projections Change from previous (Previous 1H 2H Total 1H 2H Total fiscal year projections) Net sales 264.5 285.9 550.4 280.7 277.3 558.0 +1.4% (
Slide 6: Forecast for Performance by Segment in FY2008.3 (Full Year)
Forecast for Performance by Segment in FY2008.3 (Full Year) Net Sales Operating Income 550.4 558.0 (+1.4%) 557.0 (+0.2%) (Billions of yen) Recreation & others 46.5 (-7.4) 42.5 (+9.4) Lifestyle- 50.2 related 48.0 (+3.0) 49.0 (-2.0) products 46.6 46.5 (-15.1) 47.0 (-1.1) Recreation Electronic 54.8 & o
Slide 7: Musical Instruments
Musical Instruments Full Year Overview and 1H Overview 2H Priorities • Sales and income exceeded previous projections and were higher than the same period of the previous year. • Upward revision of full year projections to ¥343 billion in sales • Discounting the impact of exchange rates, actual sale
Slide 8: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) • Actual year- Japan year-on- on-year change in first half sales, discounting impact of exchange rates 150 136.5 136.0 Japan (+/- (+/- 0%), 0%), North America (+/- (+/- 0% ), ), Europe (+8%), (+8%), 100 2H China (+21%), (+21%), Other regions (+1
Slide 9: Musical Instruments: Sales by Product
Musical Instruments: Sales by Product (Billions of yen) (Billions of yen) Pianos Electronic Musical Instruments (Excluding Electones) 79.0 55.3 80 73.8 60 53.4 70 50 60 40 2H 50 30 40 30 20 1H 20 10 10 0 0 FY07.3 FY08.3 FY07.3 FY08.3 (Billions of yen) Wind Instruments String & Percussion Instruments
Slide 10: Professional Audio Equipment Sales Growth
Professional Audio Equipment Sales Growth (Billions of yen) Sales Projection by 36.3 Region for FY08.3 31.0 (Billions of yen) 26.1 +17% 7.1 Other regions 12.0 20.2 21.6 China 2.0 N. America 2.9 Japan Europe 12.3 FY04.3 FY05.3 FY06.3 FY07.3 FY08.3 (projection) STAGEPAS 300 LS9-32
Slide 11: AV/IT
AV/IT Full Year Overview and 1H Overview 2H Priorities • Sales declined but operating income increased slightly • Downward revision of full year sales projections year-on-year. Sales and income were both lower than by ¥2 billion to ¥74 billion. Downward revision of previous projections. operating in
Slide 12: Electronic Equipment & Metal Products
Electronic Equipment & Metal Products Full Year Overview and 1H Overview 2H Priorities • Sales increased and income declined year-on- year. Operating income exceeded previous • Secure sales of LSI products for mobile phone projections. handsets, such as LSI sound chips and codec chips, • Demand for
Slide 13: Lifestyle-Related Products
Lifestyle-Related Products Full Year Overview and 1H Overview 2H Priorities • Sales increased year-on-year, but income declined. Sales and income were both lower than previous projections. • Downward revision of full year sales and • Sales were held back by lower unit prices for system income projec
Slide 14: Recreation
Recreation Full Year Overview and 1H Overview 2H Priorities • Sales and income both declined year-on-year. • Downward revision of full year operating income. • Overall, higher unit prices failed to make up for a decline in customer numbers, and this resulted in lower • Aim to reduce extent of operat
Slide 15: Others
Others Full Year Overview and 1H Overview 2H Priorities • Sales and income exceeded previous projections and increased year-on-year. • Upward revision of full year projections. • In metallic molds and components business, • Automobile interior wood components/metallic production of both magnesium an
Slide 16: Inventories
Inventories ¾Discounting the effects of exchange rates (¥3.3 billion) and postponement in handover of electronic metal products business (¥5.3 billion), inventories at the end of the first half were broadly in line with previous projections. Actual inventories were up ¥2.6 billion year-on-year due t
Slide 17: Shareholder Dividend
Shareholder Dividend ¾The Company plans to pay a year-end dividend of ¥50 per share (regular dividend ¥30, special dividend ¥20) (yen) Per-share dividend 50 Special dividend Consolidated earnings/dividend ratio 27.1 20 22.5 21.1 20 15 Regular 10 16.6 dividend (%) 14.7 11.6 7.1 FY03.3 FY04.3 FY05.3 F
Slide 18: Elements of Balance Sheet Change
Elements of Balance Sheet Change (Billions of yen) Other current assets Fixed assets Net assets +5.3 -0.4 +13.4 +31.9 +10.5 Inventories ・Income taxes payable +25.9 Other (including +23.5 for sales of shares in liabilities Notes and accounts Yamaha Motor Co., Ltd.) receivable ・Deferred income taxes +
Slide 19: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of March As of Sept. 30, As of March As of Sept. 30, As of March 31, 2006 2006 31, 2007 2007 31, 2008 Cash and bank deposits 36.4 35.0 46.7 95.8 106.0 Notes and accounts 70.3 85.7 76.6 87.1 71.9 receivable Inventories 77.9 91.0 82.2 95.6 74.9 Other current
Slide 20: Progress in Implementing Medium-term Business Plan YGP2010: 1. Growth
Progress in Implementing Medium-term Business Plan “YGP2010” 1. Growth in “The Sound Company” Business Domain Key Measures Progress Expand piano business •Launched expansion project, started new product development through “Total Piano Strategy” Build platform for guitar •Began efforts to improve qu
Slide 21: Progress in Implementing Medium-term Business Plan YGP2010: 2. Greater Profitability
Progress in Implementing Medium-term Business Plan “YGP2010” 2. Greater Profitability in the “Diversification” Business Domain Key measures Progress Handover of four facilities in •Although two months later than initially planned, handover was completed on recreation business October 1 Handover of e
Slide 22: Slide 22
Slide 23: Appendix
Appendix
Slide 24: First Half Non-operating Income (Loss)/Extraordinary Income (Loss)
First Half Non-operating Income (Loss)/ Extraordinary Income (Loss) FY2007.3 (1H) Actual FY2008.3 (1H) Actual FY2008.3 (1H) Previous Projections Non-operating Income (Loss) (Billions of yen) Equity method income 10.2 0.1 Dividends received 1.7 0 Dividends Net financial income 0.2 1.8 1.6 received 1.
Slide 25: Full Year Non-operating Income (Loss)/Extraordinary Income (Loss)
Full Year Non-operating Income (Loss)/ Extraordinary Income (Loss) FY2007.3 FY2008.3 FY2008.3 Actual New Projections Previous Projections Non-operating Income (Loss) (Billions of yen) Equity method income 17.8 0.1 Dividends received 2.7 0 Dividends Net financial income 2.5 2.4 received 2.7 (loss) 0.
Slide 26: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure/Depreciation Full year 1H 26.0 25.0 25.2 3.7 4.5 3.6 15.5 2.8 2.6 (22.1) Others 4.4 (20.0) (20.6) 2.3 12.7 2.0 2.3 Electronic 11.7 1.5 equipment 1.7 (10.6) 1.6 (11.6) & metal 1.8 (9.7) 1.4 1.7 products 1.8 1.1 AV/IT
Slide 27: 2H Priority Products (1)
2H Priority Products (1) zGrand Pianos: C Series The first model change in over seven and a half years for the C series, which forms the basis of Yamaha’s grand piano lineup. On sale in Japan from June. First- year sales target: 9,200 units. C3 zDigital Pianos: P-85 A portable digital piano that ena
Slide 28: 2H Priority Products (2)
2H Priority Products (2) zModels developed in collaboration with wind instrument artists “Merveille”: handmade flute featuring newly- designed head joint and body, developed in partnership with Shigenori Kudo, international flautist resident in Paris. YTR-9335VS: high-quality trumpet developed in co
Slide 29: 2H Priority Products (3)
2H Priority Products (3) zTV Peripheral Devices: Expanded Range of Home Theater Products for flat- panel TVs Digital Sound Projector: YSP-4000 • Simple connection with a single HDMI cable • Controls can be linked with TV remote control • Launching integrated TV furniture stand for more sophisticated
Slide 30: Yamaha Musical Instrument and Professional Audio Sales in the Japanese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Japanese Market In spite of overall market contraction, sales were maintained at the previous year’s level. Contributing factors included a halt in the downward sales trend with the launch of new grand piano products, increased
Slide 31: Yamaha Musical Instrument and Professional Audio Sales in the U.S. Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the U.S. Market While declining demand for musical instruments since last year has been halted, the piano market failed to grow due to financial uncertainty resulting from the subprime mortgage issue. Strong sales of professional au
Slide 32: Yamaha Musical Instrument and Professional Audio Sales in the German Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the German Market Sales are steady against a background of economic growth. New upright piano products contributed to this stability in the first half, and second-half sales growth is anticipated from new electronic piano and portab
Slide 33: Yamaha Musical Instrument and Professional Audio Sales in the Chinese Market
Yamaha Musical Instrument and Professional Audio Equipment Sales in the Chinese Market Even though the Chinese economy continues to grow at double-digit rates (actual GDP growth in the first half of 2007 exceeded 11%), expansion in the musical instrument market is limited to certain areas. Against t
Slide 34: 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, actual performance may differ greatly from our pre