Yamaha Corporation · TSE:7951
Yamaha — Q1 FY2010.3 Earnings Presentation
24 slides from Yamaha's earnings presentation, Jul 31, 2009
Slide 1: Analyst and Investor Briefing on the First Quarter of FY2010.3
Analyst and Investor Briefing on the First Quarter of the Fiscal Year Ending March 31, 2010 (FY2010.3) July 31, 2009 YAMAHA CORPORATION
Slide 2: Overview of Performance in the First Quarter
Overview of Performance in the First Quarter First quarter sales and operating income declined year-on-year. Sales were lower than previous projections (made on April 30), but operating income exceeded projections, resulting in a net loss of ¥2.9 billion. Year-on-year • Net sales declined by 19.3%
Slide 3: Performance in the First Quarter
Performance in the First Quarter ¾ Sales and income declined year-on-year. Sales were lower than previous projections, but operating income was higher. (Billions of yen) FY2009.3 FY2010.3 Change from Previous Change from (1Q) (1Q) same period of projections previous results results previous year (Ap
Slide 4: Performance by Business Segment in the First Quarter
Performance by Business Segment in the First Quarter Net Sales Operating Income (Billions of yen) 123.3 Others (-19.3%) 99.4 (-4.9%) 104.5 Lifestyle- 10.3 5.6 related Others products 10.5 0.7 Electronic 6.3 7.5 (-38.3) 6.4 (+0.9) devices 13.8 (-15.8) 8.8 (-14.5) 10.3 AV/IT (-37.4) 4.7 4.3 (+8.6) 11.
Slide 5: Business Environment in 2-4Q and Full Year Outlook
Business Environment in 2-4Q and Full Year Outlook 2-4Q Business Environment Ongoing global recession ⋅ Although there are some signs that the U.S. economy is bottoming out, economic activity is patchy in Europe and sluggish in Japan. Fundamental trends in China indicate a revival of consumption,
Slide 6: Forecast for Business Performance in FY2010.3 (Full Year)
Forecast for Business Performance in FY2010.3 (Full Year) ¾Estimated exchange rates for 2-4Q: US$=¥95, EUR=¥120 (Billions of yen, %) FY2009.3 FY2010.3 Change from same Increase / period of previous results projections decrease year Net sales 459.3 439.0 -20.3 -4.4% Operating income 13.8 6.0 -7.8 -56
Slide 7: FY2010.3 Full Year Forecast for Performance by Business Segment
FY2010.3 Full Year Forecast for Performance by Business Segment Net Sales Operating Income (Billions of yen) 459.3 (-4.4%) 439.0 Others 30.8 Lifestyle-related (-12.4) 27.0 products 43.1 (-0.3) 43.0 Electronic devices 22.0 (−) 22.0 13.8 AV/IT 56.7 53.0 (-6.6) 6.0 Lifestyle-related products 19.2 0.5 M
Slide 8: Musical Instruments
Musical Instruments 1Q Overview Full Year Overview and Priority Policies • Sales and income declined year-on-year and against • Ensure new products are launched for key year- previous projection. end sales push in Europe and the U.S. • Discounting the impact of exchange rates, actual sales • Increas
Slide 9: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Figures in parentheses show actual year-on-year (-8%) Includes ¥0.1 billion of sales by changes, discounting the impact of exchange rates 36.9 newly-consolidated subsidiaries 1Q 34.0 (Billions of yen) Includes ¥0.1 billion of sales by newly- Includes ¥0.7 billion
Slide 10: Musical Instruments (Sales by Region)
Musical Instruments (Sales by Region) Musical Instrument Sales by Region Japan In the face of weak consumption caused by uncertainty over economic prospects, the rush of orders to beat piano price rises has not reached the level expected. Digital pianos and wind instruments, in particular, continue
Slide 11: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category Figures in parentheses show actual year-on-year changes, discounting the impact of exchange rates 1Q (Billions of yen) 16.5 (-8%) (-10%) 12.6 13.1 (-12%) 10.2 (-10%) 11.4 9.1 8.9 6.9 (-7%) 5.8 4.7 (-16%) 1.8 1.5 FY2009.3 FY2010.3 FY2009.3 FY2010.3 FY200
Slide 12: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category Sales by Product Category Pianos Despite a short-lived spike in demand driven by price rises, the Japanese market continues its overall trend of gradual contraction, and sales in Asia are down from the previous year as Taiwan and Korea struggle. Europea
Slide 13: AV/IT
AV/IT 1Q Overview Full Year Overview and Priority Policies • Sales declined year-on-year, but income rose • Build AV business in line with market changes slightly. Operating losses were smaller than ⋅ Increase sales of mid- to high-range receivers previously projected. ⋅ Expand sales of front surrou
Slide 14: Electronic Devices
Electronic Devices 1Q Overview Full Year Overview and Priority Policies • Sales decreased year-on-year. Due to lower • Boost profitability by reducing fixed costs. depreciation expenses resulting from fixed asset • Increase sales through launch of new digital impairment carried out in the previous y
Slide 15: Lifestyle-Related Products
Lifestyle-Related Products 1Q Overview Full Year Overview and Priority Policies • Sales and income were lower than previous • Reinforce remodeling business (develop sales projections. Sales were down year-on-year, channels with strengths in remodeling and sell but income was up, partly due to cost r
Slide 16: Others
Others 1Q Overview Full Year Overview and Priority Policies • Sales were higher than previous projections. • Lower the break-even point for automobile interior Operating losses were much smaller, partly due wood components by increasing production and to fixed-cost reductions. Sales and income reduc
Slide 17: Inventories
Inventories ¾ Inventories at the end of 1Q were ¥1.2 billion lower than the same quarter of the previous year (discounting the impact of newly consolidated subsidiaries and exchange rates, actual inventories rose by ¥6.4 billion). ¾ Discounting the impact of exchange rates, actual inventories were ¥
Slide 18: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 1Q Full year (2009 actual, 2010 projection) As of June As of June Change As of March As of March Change 30, 2008 30, 2009 31, 2009 31, 2010 Cash and deposits 66.5 36.5 -30.0 41.4 38.8 -2.6 Notes and accounts receivable 68.5 52.5 -16.0 50.5 66.0 15
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Slide 20: Appendix
Appendix 20
Slide 21: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) 1Q Full Year 22.6 18.3 (17.9) (15.2) 4.3 (4.3) Others (3.3) Electronic devices 2.5 AV/IT Musical instruments FY2009.3 FY2010.3 FY2009.3 FY2010.3 (projections) R&D Expenses 23.2 21.0 6.0 5.2 Others Elec
Slide 22: First Quarter Non-Operating Income/Loss & Extraordinary Income/Loss
First Quarter Non-Operating Income/Loss & Extraordinary Income/Loss FY2009.3 (1Q) FY2010.3 (1Q) FY2010.3 (1Q) results results previous projections (Billions of yen) Non-operating income/loss Net financial income (loss) 0.7 0.2 0.1 Other -0.6 -0.9 -0.8 Total +0.1 -0.7 -0.7 Extraordinary income/loss I
Slide 23: Full-Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full-Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2009.3 results FY2010.3 projections (Billions of yen) Non-operating income/loss ⋅Yamaha Motor Co., Ltd. dividend 1.1 Net financial income (loss) 2.0 0 Other -3.8 -3.0 Total -1.8 -3.0 ⋅ Impairment loss -15.3 Extraordinary income/loss ⋅
Slide 24: Forward-looking 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