Yamaha Corporation · TSE:7951
Yamaha — Q1 FY2007.3 Earnings Presentation
27 slides from Yamaha's earnings presentation, Aug 3, 2006
Slide 1: Analyst and Investor Briefing on the First Quarter of FY2007.3
Analyst Analyst and and Investor Investor Briefing Briefing on on the the First First Quarter Quarter ofof the the Fiscal Fiscal Year Year Ending Ending March March 31, 31, 2007 2007 (FY2007.3) (FY2007.3) August 3, 2006 YAMAHA CORPORATION
Slide 2: Overview of Performance in the First Quarter
Overview of Performance in the First Quarter Net sales were slightly below initial projections. Although they rose ¥2.6 billion year-on-year, sales actually declined slightly if the effect of exchange rates (¥3.3 billion) is discounted. Musical instruments: Largely in line with the first quarter o
Slide 3: Performance in the First Quarter
Performance in the First Quarter ¾Operating income was higher than initially projected on April 28, while sales reflected initial projections Sales increased year-on-year, while operating income remained at the same level (Billions of yen) Change from FY2006.3 FY2007.3 Initial Change same period fro
Slide 4: Results by Business Segment in the First Quarter
Results by Business Segment in the First Quarter Net Sales Operating Income Recreation & others 124.1 126.7 (+2.1%) 126.9 (- 0.2%) 9.5 10.4 (+8.8) 10.4 (- 0.2%) (Billions of yen) Lifestyle-related products 11.2 10.8 (- 3.2) 10.5 (+3.0) Electronic 13.8 13.6 (- 2.0) 13.1 (+3.4) equipment and metal pro
Slide 5: Forecast of Business Performance in FY2007.3 (Full Year)
Forecast of Business Performance in FY2007.3 (Full Year) ¾Full year forecasts remain unchanged from the initial projections (Billions of yen) FY2006.3 FY2007.3 Change (Previous Year) (Projections) Net sales 534.1 546.0 +2.2% Operating 25.0 +3.7% income 24.1 Recurring 35.2 35.0 - 0.6% profit Net inco
Slide 6: FY2007.3 (Full Year) Results by Business Segment
FY2007.3 (Full Year) Results by Business Segment Net Sales Operating Income 534.1 534.1 (0%) 546.0 (+2.2%) Recreation & (+2.0) 48.0 (+12.4) others 41.9 42.7 (Billions of yen) Lifestyle-related (+5.5) 43.0 (-4.9) products 42.8 45.2 Electronic (-18.7) 54.0 (-3.9) equipment and 69.0 56.2 35.7 metal pro
Slide 7: Musical Instruments
Musical Instruments 1Q Overview FY2007.3 Projections and Priority Policies •Excluding the impact of exchange rate fluctuations, net sales in the first quarter were at a similar level to the •Steadily launch new products in time for Christmas previous year, but 3.3% below initial projections. In sale
Slide 8: AV/IT
AV/IT 1Q Overview FY2007.3 Projections and Priority Policies •Excluding the impact of exchange rate fluctuations, first quarter sales were 1.9% above the initial •Continue growth of AV business projections and 6.3% lower than the same quarter of the - Strengthen and expand YSP business previous year
Slide 9: Electronic Equipment and Metal Products
Electronic Equipment and Metal Products 1Q Overview FY2007.3 Projections and Priority Policies •Although first quarter sales and operating income exceed initial projections, operating income was •Secure sales through shift to high added-value LSI sound half that recorded in the same quarter of the c
Slide 10: Lifestyle-related Products
Lifestyle-related Products 1Q Overview FY2007.3 Projections and Priority Policies •Although first quarter sales exceeded initial projections, price competition became fiercer and •Steady launch of new autumn products operating income declined. Kitchens in the low-price range •System kitchens continu
Slide 11: Recreation
Recreation 1Q Overview FY2007.3 Projections and Priority Policies •Although first quarter sales were below expectations, both accommodation sales and - In addition to boosting sales by attracting day-tripper numbers increased year-on-year. more customers, aim to further reduce Sales in the revenue f
Slide 12: Others
Others 1Q Overview FY2007.3 Projections and •Sales of golf products and magnesium molded parts were Priority Policies higher than both initial projections and the same quarter of the previous year. Shipments of golf products to Korea •Securing production volume for and Hong Kong increased. automobil
Slide 13: Inventories
Inventories ¾Inventories at the end of the first quarter increased compared with the initial projection Musical instrument inventories are almost at the right level, while AV product inventories increased (Billions of yen) At the end of 1Q At the end of the fiscal year 84.7 84.5 78.9 78.4 77.9 Goods
Slide 14: Appendix
Appendix
Slide 15: Interest-bearing Liabilities
Interest-bearing Liabilities (Billions of yen) 26.7 Free Cash Flows 7.4 7.9 -19.6 -6.4 FY2005.3 FY2006.3 FY2006.3 FY2007.3 FY2007.3 (full year) (1Q) (full year) (1Q) (full year projection) Interest-bearing Liabilities 14.9 Long- and short-term borrowings, less cash and deposits -4.6 -8.0 0.7 -9.3 As
Slide 16: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure/ 27.0 Depreciation 22.7 22.9 5.5 6.8 5.3 4.4 (18.9) (20.0) (19.0) 5.2 0.9 0.9 5.0 5.5 1.8 (4.7) 0.3 (4.8) Others 3.5 1.1 1.1 Electronic equipment 0.7 & metal products 0.4 4.7 14.5 AV/IT 0.2 11.3 11.9 Musical 2.2 inst
Slide 17: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of June As of March As of June As of March 30, 2005 31, 2006 30, 2006 31, 2007 Cash and bank deposits 35.6 36.4 29.4 38.5 Accounts and notes 72.8 70.3 70.4 72.6 receivable Inventories 84.7 77.9 84.5 73.7 Other current assets 22.4 24.8 26.4 25.3 Fixed assets
Slide 18: First Quarter Non-operating Income (Loss)/Extraordinary Income (Loss)
First Quarter Non-operating Income (Loss)/ Extraordinary Income (Loss) FY2006.3 1Q FY2007.3 1Q FY2007.3 1Q (actual) (actual) (initial projections) Non-operating Income (Loss) (Billions of yen) Equity method income 5.3 6.4 3.9 Net financial income 0.2 0.4 0.1 Other -0.8 -0.9 -0.7 Total + 4.7 + 5.9 +3
Slide 19: FY2007.3 Non-operating Income (Loss)/Extraordinary Income (Loss)
FY2007.3 Non-operating Income (Loss)/ Extraordinary Income (Loss) FY2005.3 FY2006.3 FY2007.3 (actual) (actual) (projections) Non-operating Income (Loss) (Billions of yen) Equity method income 9.1 14.8 14.8 Net financial income -0.3 -0.2 -0.7 Other -3.2 - 3.5 -4.1 Total + 5.6 - Gain on return of + 11
Slide 20: Yamaha Musical Instrument Sales in the Japanese Market
Yamaha Musical Instrument Sales in the Japanese Market Sales were at levels similar to the first quarter of the previous year. Electone sales continued to fall. Rising enrollments in music schools are expected to boost sales. (Billions of yen) 139.4 134.4 140.2 136.8 133.8 150 1Q sales for Numbers i
Slide 21: Yamaha Musical Instrument Sales in the U.S. Market
Yamaha Musical Instrument Sales in the U.S. Market Wholesale for piano declined due to the impact of inventory sell-off at the end of the previous fiscal year. Sales of professional audio equipment were robust (131% of 1Q figures for the previous year) with a new sales company of commercial audio st
Slide 22: Yamaha Musical Instrument Sales in the German Market
Yamaha Musical Instrument Sales in the German Market Pianos and electronic instruments sold well in a more severe retail sales environment. The professional audio equipment market is also on an upward trend overall. Wholesale Amount 250 (Millions of euros) 194 200 188 188 (107%) 200 (102%) 180 (104%
Slide 23: Yamaha Musical Instrument Sales in the U.K. Market
Yamaha Musical Instrument Sales in the U.K. Market The musical instrument market continues to be sluggish. Shipments of new piano and electronic piano models started. A wind instrument sales campaign aimed at schools began in July, and this should recover sales. Wholesale Amount 80 (Millions of poun
Slide 24: Yamaha Musical Instrument Sales in the Chinese Market
Yamaha Musical Instrument Sales in the Chinese Market The first quarter saw double-digit year-on-year growth. Large orders for pianos increased and business grew on the back of school sales. The Yamaha Music Communication Center in Beijing, combining showroom and R&D functions, opened in June. Whole
Slide 25: Scale of Global Market for Home Theater Products
Scale of Global Market for Home Theater Products (Home Theater Systems + AV Amplifiers/Receivers) Home Theater Systems AV Amplifiers/Receivers •The market is on a downward trend, especially in Europe and the •The global market shrank by approximately 4% year-on-year U.S. (11 million units in 2006) •
Slide 26: Yamaha's AV Market Share
Yamaha’s AV Market Share Japan AV Amplifiers: Home Theater Systems: 20% Share of Total Sales Share of Total Sales Amount (GfKJ) 40% Amount (GfKJ) 30% 10% 20% 39% 14% 15% 35% 33% 31% 33% 11% 10% 12% 10% 0% 0% ’02 ’03 ’04 ’05 ’06 (Jan.-June) ’02 ’03 ’04 ’05 ’06 (Jan.-June) U.S. Home Theater Systems: A
Slide 27: Forward-looking figures disclaimer
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