Yamaha Corporation · TSE:7951
Yamaha — Q2 FY2019.3 Earnings Presentation
38 slides from Yamaha's earnings presentation, Nov 2, 2018
Slide 1: Analyst and Investor Briefing on 2Q FY2019.3
Analyst and Investor Briefing on 2Q FY2019.3 (Fiscal year ending March 31, 2019) November 2, 2018 Yamaha Corporation
Slide 2: FY2019.3 1H Highlights
FY2019.3 1H Highlights Overview FY201９.3 1H Achievements ・Sales and income both increased year-on-year. Performance was on target to meet full- year projections. ・Sales were robust in the key musical instruments and others segments (up 2.3%). ・Operating income amounted to ¥28.5 billion (up 19.1%), a
Slide 3: 1. Performance Summary
1. Performance Summary YAMAHA
Slide 4: FY2019.3 1H Summary
FY2019.3 1H FY2019.3 Performance Full Year Outlook FY2019.3 1H Summary (billions of yen) FY2018.3 FY2019.3 Change 1H 1H *2 Net Sales 209.8 214.6 +4.8 +2.3% Operating Income 23.9 28.5 （Operating Income +4.6 +19.1% Ratio） (11.4%) (13.3%) Ordinary Income 24.7 29.8 +5.0 +20.4% Net Income*1 19.6 21.9 +2.
Slide 5: Operating Income Analysis
FY2019.3 1H FY2019.3 Performance Full Year Outlook Operating Income Analysis (billions of yen) Versus previous year Impact of Increase in exchange sales and rates 28.5 production, Cost product mix, etc. reduction 1.7 0.2 Labor cost at overseas factories 23.9 4.8 -0.5 SG&A -1.6 FY2018.3 FY2019.3 1H 1
Slide 6: Performance by Business Segment
FY2019.3 1H FY2019.3 Performance Full Year Outlook Performance by Business Segment (billions of yen) FY2018.3 FY2019.3 Exchange Change 1H 1H rate impact Net Sales 134.2 139.0 +4.8 +0.2 Musical Operating 16.6 21.6 +5.0 +1.2 Instruments Income Operating Income Ratio 12.4% 15.5% +3.1P Net Sales 57.6 56
Slide 7: FY2019.3 Outlook
FY2019.3 1H FY2019.3 Performance Full Year Outlook FY2019.3 Outlook (billions of yen) FY2018.3 FY2019.3 Full year Change Full year (projections) *2 Net Sales 433.0 442.0 +9.0 +2.1% Operating Income 48.8 55.0 （Operating Income +6.2 +12.6% Ratio） (11.3%) (12.4%) Ordinary Income 49.2 55.0 +5.8 +11.7% N
Slide 8: Operating Income Analysis
FY2019.3 1H FY2019.3 Performance Full Year Outlook Operating Income Analysis Increase in Versus previous year sales and Cost (billions of yen) production, reduction 55.0 product Labor cost mix, etc. 1.1 at overseas Impact of exchange 48.8 factories rates SG&A -1.0 -0.4 10.8 -4.3 FY2018.3 FY2019.3 Ve
Slide 9: Outlook by Business Segment
FY2019.3 1H FY2019.3 Performance Full Year Outlook Outlook by Business Segment (billions of yen) FY2018.3 FY2019.3 Exchange Full Year Change Full Year (projections) rate impact Net Sales 274.5 279.5 +5.0 -4.1 Musical Operating 34.6 40.5 +5.9 -0.4 Instruments Income Operating Income Ratio 12.6% 14.5%
Slide 10: 2. Segment Overview
2. Segment Overview YAMAHA
Slide 11: Segment Sales and Operating Income
Musical Instruments Audio Equipment Others Segment Sales and Operating Income [1H overview] Achieved sales growth in all product categories • By product: Piano sales were robust in all regions except Europe. New entry-level products contributed to strong sales of digital pianos. Wind instrument sale
Slide 12: Sales by Major Product Category
Musical Instruments Audio Equipment Others Sales by Major Product Category Pianos Digital Musical Winds Strings/ Instruments Percussion (104%) (billions of yen) 91.3 93.1 21.0 (105%) 54.9 52.9 28.5 (103%) 12.6 42.4 42.7 1–2Q 4Q (104%) (106%) (102%) 9.9 30.6 14.2 29.3 3Q 22.6 22.7 1–2Q 9.1 1–2Q (109%
Slide 13: Sales by Region
Musical Instruments Audio Equipment Others Sales by Region (billions of yen) (98%) 77.0 75.6 4Q 19.5 (103%) 54.2 54.3 (100%) (105%) 52.1 51.1 (115%) 51.4 50.1 47.1 3Q 18.5 14.2 11.0 41.0 12.3 1–2Q (97%) 8.7 2Q (98%) 14.2 17.3 17.5 1–2Q 13.6 17.2 (110%) 1–2Q 11.0 (107%) 1–2Q 1–2Q (98%) (98%) (116%) 1
Slide 14: Develop Products with Distinctive Individuality
Musical Instruments Audio Equipment Others Develop Products with Distinctive Individuality Unique products integrating various technologies Integrating acoustic and electronic technologies to create new customer value Two new models added to New TransAcoustic™ Piano EAD10 the P-Series of compact and
Slide 15: Good Design Award 2018
Musical Instruments Audio Equipment Others Good Design Award 2018 VOCALOID™ Keyboard "VKB-100" Selected for the Good Design Best 100 Four Yamaha designs including digital pianos and hybrid piano system were selected for the Good Design Awards 2018 Winners of the Good Design Awards 2018 (October 2018
Slide 16: Updates on Key Measures
Musical Instruments Audio Equipment Others Updates on Key Measures New Yamaha Guitar Group Makes Progress Acquisition of Ampeg Brand (May 2018) Acquired the Ampeg brand and its business operations, globally renowned for products including bass amps. Yamaha Guitar Group Yamaha Guitar Story • Created
Slide 17: Segment Sales and Operating Income
Musical Instruments Audio Equipment Others Segment Sales and Operating Income [1H overview] PA equipment sales grew but overall segment sales declined YoY • AV product sales declined year-on-year due to the impact of delayed shipments to mass channels in the US and changes in demand for receivers. N
Slide 18: Sales by Major Product Category
Musical Instruments Audio Equipment Others Sales by Major Product Category AV Products PA Equipment ICT Devices (billions of yen) (106%) (100%) 50.0 48.4 47.1 48.0 (97%) 4Q 10.2 12.0 (110%) 15.2 14.7 3.7 3Q 16.3 12.6 1–2Q (104%) 3.6 1–2Q 1–2Q (103%) (95%) (93%) 12.0 (94%) 11.8 (99%) 2Q 12.6 (99%) (1
Slide 19: Sales by Region
Musical Instruments Audio Equipment Others Sales by Region (103%) (billions of yen) (103%) 32.5 32.8 (107%) 30.8 30.6 29.2 27.3 7.2 7.1 (109%) 8.3 21.4 4Q 20.2 10.5 9.3 4.7 5.9 1–2Q (101%) (86%) 3Q 1–2Q 1–2Q (94%) (104%) 11.0 (102%) 5.8 1–2Q (97%) (92%) 7.8 8.0 9.5 1–2Q (99%) 8.0 (104%) 7.1 7.1 7.4
Slide 20: Develop Products with Distinctive Individuality: Connecting with Music
Musical Instruments Audio Equipment Others Develop Products with Distinctive Individuality Connecting with Music Connected systems offer ground-breaking value through uncompromising sound quality and creative technologies What is MusicCast™? An original Yamaha wireless network system enabling users
Slide 21: Develop Products with Distinctive Individuality
Musical Instruments Audio Equipment Others Develop Products with Distinctive Individuality Fresh product line-up integrates state-of-the-art technologies to create new value New additions to the digital mixing system line-up enable full-scale market launch of flagship models - Increased usage on wor
Slide 22: Develop Products with Distinctive Individuality
Musical Instruments Audio Equipment Others Develop Products with Distinctive Individuality Awarded 1st place for the third consecutive year in the network device category of the Nikkei Computer Customer Satisfaction Survey 2018-2019 For the third consecutive year, Yamaha was awarded 1st place in the
Slide 23: Segment Sales and Operating Income
Musical Instruments Audio Equipment Others Segment Sales and Operating Income [1H overview] ・Sales of factory automation equipment rose sharply due to strength in testing machineries for smartphone production, and sales of automobile interior wood components remained Net Sales (billions of yen) robu
Slide 24: 3. ESG Topics
3. ESG Topics Full year projections have not changed Full year projections have not changed 23
Slide 25: Environment
Performance Other Summary Segment Overview ESG Financial Figures Environment Sustainable Wood Procurement Initiative Joint research agreement signed with Kyoto University aimed at cultivation and use of sustainable forestry resources Rich sound and user responsibility: research results will be publi
Slide 26: Social
Performance Other Summary Segment Overview ESG Financial Figures Social Supporting youth development by music promotion activities A program to encourage children’s musical aspirations and dreams -Yamaha Launched the I'm a HERO Program in Colombia- Children took the field at a match in the Categoria
Slide 27: Social
Performance Other Summary Segment Overview ESG Financial Figures Social Making steady progress with music promotion activities in emerging countries - Expansion of music promotion activities aimed at increasing player numbers Musical instruments, teaching materials, and instruction guidance are prov
Slide 28: Social
Performance Other Summary Segment Overview ESG Financial Figures Social Extending universal design to audio for TV and radio Start of subtitling support project utilizing “Sound UD”* in partnership with 16 TV and radio stations throughout Japan Selected by the Ministry of Internal Affairs and Commun
Slide 29: 4. Other Financial Figures
4. Other Financial Figures 28
Slide 30: Balance Sheet Summary
Performance Other Summary Segment Overview ESG Financial Figures Balance Sheet Summary *Full year projections remain unchanged from the original announcement (on May 2018) (billions of yen) As of As of As of As of Sep.30, Sep.30, Change Mar.31, Mar.31,2019 Change 2017 2018 (projections) 2018 Cash an
Slide 31: Capital Expenditure/Depreciation, R&D Expenses
Performance Other Summary Segment Overview ESG Financial Figures Capital Expenditure/Depreciation, R&D Expenses Capital Expenditure/ Depreciation (billions of yen) 25.4 Others 24.6 11.2 1.8 1.9 Audio 0.7 8.0 4.2 4.0 Equipment 2.4 0.4 Musical 1.5 Instruments 18.6 19.5 8.1 6.1 11.6 5.4 5.4 10.8 FY2018
Slide 32: Annual Report
Annual Report Yamaha Group Annual Report2018 The Yamaha Group Annual Report 2018 was released on October 24, 2018, and offers both financial and non-financial perspectives on progress in the Group’s efforts to create medium- and long-term value Format: A4 paper size, 90 pages Japanese version: Broch
Slide 33: Appendix
Appendix YAMAHA
Slide 34: Performance in 2Q FY2019.3 (Three Months)
Performance in 2Q FY2019.3 (Three Months) (billions of yen) FY2018.3 FY2019.3 Change 2Q 2Q *2 Net Sales 108.6 109.5 +0.9 +0.9% Operating Income 12.4 15.2 （Operating Income +2.9 +23.4% Ratio） (11.4%) (13.9%) Ordinary Income 13.5 16.2 +2.7 +20.2% Net Income*1 10.3 12.5 +2.2 +21.2% *2 +1.9% Exchange Ra
Slide 35: Performance by Business Segment in 2Q FY2019.3 (Three Months)
Performance by Business Segment in 2Q FY2019.3 (Three Months) (billions of yen) FY2018.3 FY2019.3 Exchange Change 2Q 2Q rate impact Net Sales 68.6 69.9 +1.3 -0.8 Musical Operating 8.4 11.4 +3.0 +0.4 Instruments Income Operating Income Ratio 12.2% 16.3% +4.1P Net Sales 31.1 30.3 -0.7 -0.3 Audio Opera
Slide 36: 1H Non-Operating Income/Loss, Extraordinary Income/Loss
1H Non-Operating Income/Loss, Extraordinary Income/Loss (billions of yen) FY2018.3 2019.3 1H 1H Net financial income 2.1 2.2 Non-Operating Other -1.3 -1.0 Income/Loss Total 0.8 1.3 Income from (loss on) disposal of fixed assets -0.1 0 Extraordinary Income/Loss Others -0.3 0.2 Total -0.4 0.1 Income t
Slide 37: Full Year Non-Operating Income/Loss, Extraordinary Income/Loss
Full Year Non-Operating Income/Loss, Extraordinary Income/Loss (billions of yen) FY2018.3 FY2019.3 Full year Full year (projections) Net financial income 4.3 3.7 Non-Operating Income/Loss Other -3.9 -3.7 Total 0.4 0 Income from (loss on) -Gain on sales of disposal of fixed assets Yamaha Motor Co., -
Slide 38: Forecast 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 pro