Yamaha Corporation · TSE:7951
Yamaha — Q2 FY2018.3 Earnings Presentation
34 slides from Yamaha's earnings presentation, Nov 2, 2017
Slide 1: Analyst and Investor Briefing on the Second Quarter of FY2018.3
Yamaha Corporation Analyst and Investor Briefing on the Second Quarter of Fiscal Year Ending March 31, 2018 (FY2018.3) November 2, 2017
Slide 2: Overview of Performance in the First Half of 2018.3
Overview of Performance in the First Half (1H) of 2018.3 Results Summary Sales increased by ¥10.6 billion year-on-year, partly due to the impact of exchange rates (+¥8.0 billion). Operating income was ¥0.7 billion lower comparing to the same period of the previous year, also partly due to the impa
Slide 3: Performance in the 1H of FY2018.3
Performance in the 1H of FY2018.3 (Billions of yen) Changes from FY2018.3 1H Changes from FY2017.3 FY2018.3 same period of previous the previous 1H results 1H results the previous year projections projection Net Sales 199.2 209.8 +5.3% 211.0 -0.6% Operating Income 24.6 23.9 -2.9% 26.5 -9.7% (Operati
Slide 4: Performance by Business Segment in the 1H of FY2018.3
Performance by Business Segment in the 1H of FY2018.3 Net Sales Operating グラフ タイトルIncome Year-on-Year change (Billions of yen) 199.2 (+5.3%) 209.8 211.0 18.1 24.6 26.5 ■Others 17.7 (+2.1%) 23.9 1.0 2.1 (+8.6%) 57.6 ■Audio 53.0 4.8 Equipment 5.2 ■Musical Instruments 128.5 (+4.4%) 134.2 18.8 16.6 FY20
Slide 5: FY2018.3 1H Operating Income Analysis
FY2018.3 1H Operating Income Analysis (Billions of yen) Versus same period of the previous year Impact of Actual Increase in exchange increase in labor cost sales and Cost rates at overseas Actual production, reduction factories increase in -1.3 SG&A product mix, +1.2 -0.6 etc. -0.7 Others +1.7 24.6
Slide 6: Musical Instruments: 1H Overview
Musical Instruments: 1H Overview (Billions of yen) 1H Overview Sales increased year-on-year, but income declined 1H Pianos, digital pianos, and guitars showed strong ■Net Sales ■Operating Income sales New digital piano models were launched in all regions, and sold especially well in China and
Slide 7: Audio Equipment: 1H Overview
Audio Equipment: 1H Overview (Billions of yen) 1H ■■■Net Sales ■Operating Income 1H Overview グラフ タイトル Sales and income rose year-on-year 57.6 In the AV product segment, sound bars and net- 53.0 work audio products sold briskly. Most regions 8.0 recorded strong sales, with results improving ICT d
Slide 8: Others: 1H Overview
Others: 1H Overview (Billions of yen) 1H ■■Net Sales ■Operating Income 1H Overview Sales and income were up year-on-year. In the industrial machinery and components category, sales were solid for factory automation equipment, as well as electronic devices 17.7 18.1 including sound generators for
Slide 9: Outlook for Second Half and Full Year
Outlook for Second Half and Full Year Outlook for 2H The musical instrument segment suffered a downturn in 1H, but is expected to rebound in 2H. Musical instruments: results are expected to rally, especially in the European and North American markets, due to the positive effects of new digital i
Slide 10: Forecast for Performance in FY2018.3 (Full Year)
Forecast for Performance in FY2018.3 (Full Year) (Billions of yen) Changes from FY2018.3 Changes from FY2017.3 FY2018.3 same period of previous the previous results projections the previous year projections projection Net Sales 408.2 432.0 +5.8% 432.0 - Operating Income 44.3 50.0 50.0 (Operating Inc
Slide 11: FY2018.3 Full Year Forecast for Performance by Business Segment
FY2018.3 Full Year Forecast for Performance by Business Segment Netグラフ タイトル Sales Operating Income Year-on-year change Change from the previous (Billions of yen) projections 408.2 (+5.8%) 432.0 (-) 432.0 50.0 50.0 36.0 (-) 36.0 44.3 2.5 2.5 ■Others 35.1 (+2.6%) 1.7 124.5 (-) 124.5 12.0 12.0 ■Audio E
Slide 12: FY2018.3 Full Year Operating Income Analysis
FY2018.3 Full Year Operating Income Analysis (Billions of yen) Versus previous year Actual increase in sales and Cost Increase in production, reduction labor cost product mix, +2.8 Actual at overseas Impact of etc. increase in factories exchange SG&A +7.4 Others rates -1.4 -5.1 -1.0 +3.0 50.0 44.3 F
Slide 13: Musical Instruments: Full Year Projections
Musical Instruments: Full Year Projections Full Year (Billions of yen) Full Year Projections • Previous projections remain unchanged ■Net Sales ■Operating Income • A rebound in sales is anticipated as new digital instrument product launches scheduled for 2H restore vigor to the European and North 27
Slide 14: Musical Instruments Topics
Musical Instruments Topics Expand customer needs by introducing new products with innovative technologies Casual Wind Instruments Digital Piano-Clavinova Venova CLP-600 series A unique instrument with a compact body and authentic sound achieved through New Clavinova series introducing newly develope
Slide 15: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (including software products and music schools) Net Sales for All Regions Full year forecast: ¥271.5 billion (103%) (Billions of yen) Figures in red parentheses show actual year-on-year changes, discounting the 79.8 78.9 impact of exchange rates (99%) 4Q 20.0 20.
Slide 16: Audio Equipment: Full Year Projections
Audio Equipment: Full Year Projections Full Year (Billions of yen) Full Year Projections Previous projections remain unchanged ■■■Net Sales ■Operating Income AV product sales are expected to remain brisk for sound bars and net-work audio 124.5 products, and higher sales are anticipated via 115.5
Slide 17: Audio Equipment Topics
Audio Equipment Topics Drive consumer demand by introducing the latest digital audio and network technologies Digital Mixing System RIVAGE PM10 Development of products compatible with voice A new generation of PM consoles used for large-scale recognition function using AI live concerts, that continu
Slide 18: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region Net Sales for All Regions Full year forecast: ¥124.5 billion (105%) (Billions of yen) Figures in parentheses show 32.4 (106%) 31.2 (103%) actual year-on-year changes, discounting the impact of 29.5(104%) 29.7 28.9 exchange rates 28.4 (105%) 7.2 (109%) 7.2 7.1 6.4 9.7
Slide 19: Sales by Major Product Category
Musical Instruments/Audio Equipment: Sales by Major Product Category (Billions of yen) Musical Instruments Audio Equipment Pianos Digital Musical Instruments AV Products 51.8 89.4 (104%) 48.5 (104%) 83.0 44.9 48.6 (105%) 12.1 20.9 9.9 (99%) 4Q 11.6 (106%) 18.5 (113%) 10.1 3Q 13.6 26.7 16.8 (109%) 12
Slide 20: Others: Full Year Projections
Others: Full Year Projections Full Year (Billions of yen) Full Year Projections ■■Net Sales ■Operating Income Previous projections remain unchanged In the industrial machinery and components category, factory automation equipment sales are expected to benefit from new smartphone 35.1 36.0 36.0 m
Slide 21: Inventories
Inventories Inventories at the end of 1H were ¥103.9 billion. Discounting the exchange rate impact of +¥9.9 billion, this was around the same level as the same period of the previous year. Inventories at the end of fiscal 2018 are forecast to be ¥92.7 billion. (Billions of yen) End of 1H End of
Slide 22: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/ R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) 26.3 25.9 ■Others ■Audio Equipment 2.0 2.1 ■Musical Instruments 11.2 17.5 5.4 5.3 0.7 2.4 6.3 2.4 4.0 0.6 18.9 18.5 2.0 11.1 10.8 10.8 8.1 11.2 5.4 5.4 3.7 FY2017.3 1H FY2018.3 1H FY2017.3 FY2018.3 FY
Slide 23: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 1H As of end of fiscal year end As of Sept As of Sept As of Mar. 31, As of Mar. 31, Change 2018 projections Change 30, 2016 30, 2017 2017 Cash and deposits 94.4 115.3 +20.9 105.9 119.0 +13.1 Notes and accounts receivable 53.0 60.2 +7.2 49.8 51.0 +
Slide 24: Appendix
付 属資料 Appendix
Slide 25: Performance in the Second Quarter of FY2018.3 (Three Months)
Performance in the Second Quarter of FY2018.3 (Three Months) (Billions of yen) Changes from FY2017.3 FY2018.3 same period of FY2018.3 2Q Changes from previous the previous 2Q results 2Q results the previous projections projection year Net Sales 100.8 108.6 +7.7% 109.8 -1.1% Operating Income 12.9 12.
Slide 26: Performance by Business Segment in the Second Quarter of FY2018.3
Performance by Business Segment in the Second Quarter of FY2018.3 (Three Months) Net Sales Operating Income Year-on- (Billions of yen) Year change 108.6 109.8 100.8 (+7.7%) 14.9 8.9 9.5 (-6.2%) 12.9 12.4 ■Others 0.6 (+13.1%) 31.1 0.7 ■Audio Equipment 27.5 2.8 3.2 ■Musical 63.8 (+7.5%) 68.6 9.4 8.4 I
Slide 27: 1H Non-Operating Income/Loss & Extraordinary Income/Loss
1H Non-Operating Income/Loss & Extraordinary Income/Loss FY2018.3 1H (Billions of yen) FY2017.3 1H FY2018.3 1H previous projections Non-Operating Income/Loss Net financial income 1.8 2.1 1.8 Other -2.0 -1.3 -1.8 Total -0.2 0.8 0 Extraordinary Income/Loss Income from (loss on) disposal of fixed 0.1 -
Slide 28: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss (Billions of yen) FY2017.3 full year FY2018.3 full year FY2018.3 full year projections previous projections Non-Operating Income/Loss Net financial income 3.5 3.9 3.3 Other -2.9 -3.9 -3.3 Total 0.6 0 0 Extraordinary Income/Loss Income f
Slide 29: Quarterly Sales and Income
Quarterly Sales and Income (Billions of yen) 118.5 117.7 109.2 109.8 108.6 104.5 101.2 102.5 100.8 99.9 101.2 98.4 11.8 12.9 12.7 12.4 18.1 14.9 16.0 11.6 11.6 6.9 8.0 7.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2017.3 FY2018.3 (projections) FY2018.3 (previous projections) Net Sales 408.2 Net Sales 43
Slide 30: Key Products in FY2018.3: SX Series Grand Pianos
Key Products in FY2018.3 Launched Yamaha SX Series Grand Pianos October 2017 Premium pianos for high-end users such as lead pianists and performers - Heir to the tradition of technical excellence established by the CFX Concert Grand - By combining traditional and innovative technologies, the SX seri
Slide 31: Key Products in FY2018.3: Clavinova CLP-600 Series
Key Products in FY2018.3 Yamaha Clavinova CLP-600 Series Digital Piano Launched May 2017 First model upgrade in three years for the CLP Series, a key digital piano product - Featuring new GrandTouch keyboard, the first major upgrade to the key action mechanism in 20 years - The Clavinova CLP Series
Slide 32: Key Products in FY2018.3: Clavinova CSP Series
Key Products in FY2018.3 Yamaha Clavinova CSP Series Digital Piano Launched New series in the long-selling Clavinova digital piano line-up October 2017 - World-first technology automatically creates piano scores from audio data - The Clavinova CSP series offers a new type of digital piano, respondin
Slide 33: Key Products in FY2018.3: Venova
Key Products in FY2018.3 Launched Yamaha Venova Casual Wind Instrument August 2017 A completely new type of beginner-friendly wind instrument with rich saxophone-like tone - Compact instrument made from strong, light ABS resin - Developed to bring the authentic feel and sound of a musical instrument
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