Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2017.3 Earnings Presentation
30 slides from Yamaha's earnings presentation, Feb 6, 2017
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY2017.3
Yamaha Corporation Analyst and Investor Briefing on the Third Quarter of Fiscal Year Ending March 31, 2017 (FY2017.3) February 6, 2017
Slide 2: Overview of Performance in the First Three Quarters of FY2017.3
Overview of Performance in the First Three Quarters of FY2017.3 (Nine Months) Results Summary Although sales over the first three quarters declined year-on-year, chiefly due to the impact of exchange rates, operating income increased for the fourth consecutive year. Actual 3Q sales of musical inst
Slide 3: Performance in the First Three Quarters of FY2017.3 (Nine Months)
Performance in the First Three Quarters of FY2017.3 (Nine Months) (Billions of yen) Changes from same FY2017.3 FY2016.3 FY2017.3 Changes from the period of the 1-3Q previous 1-3Q results 1-3Q results previous year projections** previous projection Net Sales 335.8 308.3 -8.2% 309.0 -0.2% Operating In
Slide 4: Performance by Business Segment in the First Three Quarters
Performance by Business Segment in the First Three Quarters of FY2017.3 (Nine Months) Net Sales Operating Income Year-on year change Changes from the previous projections (Billions of yen) 335.8 28.4 (-8.2%) 308.3 (-0.2%) 309.0 36.9 37.4 38.5 ■Others (-5.6%) 26.8 1.3 1.6 ■Audio 91.8 Equipment 7.8 8.
Slide 5: FY2017.3 1-3Q Operating Income Analysis
FY2017.3 1-3Q Operating Income Analysis (Nine Months) Versus same period (Billions of yen) of the previous year Actual Impact of increase in Cost exchange sales and reduction Revision +¥3.7 rates Increase in production Actual of selling -¥10.0 labor cost decrease prices +¥3.9 36.9 at overseas in SG&
Slide 6: Musical Instruments: 1-3Q
Musical Instruments: 1-3Q (Nine Months) 1-3Q (Billions of yen) 1-3Q Overview ■Net Sales ■Operating Income Sales and income decreased from the same period of the previous year. This decline was due to the impact of exchange 215.6 196.5 rates, and sales increased in actual terms. The Chinese mar
Slide 7: Audio Equipment: 1-3Q
Audio Equipment: 1-3Q (Nine Months) 1-3Q (Billions of yen) ■■■Net Sales ■Operating Income 1-3Q Overview Sales declined year-on-year, but income increased. 91.8 85.0 Actual sales grew in all territories except Other Regions. ICT devices 11.7 3Q sales in major markets including Europe, North 10.
Slide 8: Others: 1-3Q
Others: 1-3Q (Nine Months) 1-3Q (Billions of yen) ■■■■Net Sales ■Operating Income 28.4 26.8 1-3Q Overview Others 1.5 1.4 • Sales declined from the same period of the Resort 3.9 3.7 previous year, but income increased. Golf products 3.9 • Operating income rose year-on-year due to 4.1 factors includin
Slide 9: Performance in the Third Quarter of FY2017.3 (Three Months)
Performance in the Third Quarter of FY2017.3 (Three Months) (Billions of yen) Changes from same FY2017.3 FY2016.3 FY2017.3 Changes from the period of the 3Q previous 3Q results 3Q results previous year projections** previous projection Net Sales 118.3 109.2 -7.7% 109.8 -0.6% Operating Income 15.7 12
Slide 10: Performance by Business Segment in the Third Quarter
Performance by Business Segment in the Third Quarter of FY2017.3 (Three Months) Net Sales Operating Income (Billions of yen) Changes from the Year-on-year previous projections change 118.3 (-7.7%) 8.6 109.2 (-0.6%) 109.8 ■Others (+6.4%) 9.1 15.7 ■Audio 13.9 Equipment 36.5 0.3 12.7 (-12.4%) 32.0 4.3
Slide 11: Outlook for Fourth Quarter and Full Year
Outlook for Fourth Quarter and Full Year Outlook for 4Q Based on 3Q sales results, the anticipated growth rate for actual musical instrument sales has been revised downward slightly from previous projections. In the audio equipment business, AV product shipments are expected to rise, and the ant
Slide 12: Forecast for Performance in FY2017.3 (Full Year)
Forecast for Performance in FY2017.3 (Full Year) (Billions of yen) FY2016.3 FY2017.3 Changes from the FY2017.3 Changes from the previous year results projections results previous projections previous projection Net Sales 435.5 405.0 -7.0% 402.0 +0.7% Operating Income 40.7 42.0 42.0 (Operating Income
Slide 13: FY2017.3 Full Year Forecast for Performance by Business Segment
FY2017.3 Full Year Forecast for Performance by Business Segment (Billions of yen) Net Sales Changes from Operating Income the previous Year-on-year projections change 435.5 (-7.0%) 405.0 (+0.7%) 402.0 ■Others 37.2 (-6.0%) 35.0 42.0 42.0 (-) 35.0 40.7 ■Audio 0.4 0.5 0.5 120.9 (-5.7%) 114.0 (+0.9%) Eq
Slide 14: FY2017.3 Full Year Operating Income Analysis
FY2017.3 Full Year Operating Income Analysis Versus Impact of (Billions of yen) previous year exchange Cost rates Revision Actual reduction -¥11.5 Actual of increase ¥4.7 decrease selling in sales in prices Increase in SG&A ¥4.4 labor cost ¥3.5 at overseas ¥2.3 42.0 40.7 factories -¥2.1 FY2016.3 FY2
Slide 15: Musical Instruments Full Year Projections
Musical Instruments Full Year Projections (Billions of yen) Full Year ■Net Sales ■Operating Income Full Year Projections 277.4 256.0 254.0 • Although sales are likely to be higher than 61.4 Music previous projections, income is expected schools, 54.0 54.4 to be lower. etc. • Strong sales of pianos,
Slide 16: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (including software products and music schools) (Billions of yen) All regions: Net Sales (1-3Q) ¥196.6 (103%) , Full Year Projections ¥256.0 (102%) (96%) 87.6 80.5(92%) *Figures in blue parentheses show actual year-on-year changes, excluding the sales of music sc
Slide 17: Audio Equipment Full Year Projections
Audio Equipment Full Year Projections Full Year ■■■Net Sales ■Operating Income Full Year Projections (Billions of yen) • Sales and income are expected to 120.9 114.0 113.0 exceed previous projections. 15.2 ICT devices • Double-digit growth in actual terms is 14.1 14.2 anticipated for commercial audi
Slide 18: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) All regions: Net Sales (1-3Q) ¥85.0 (104%) , Full Year Projections ¥114.0 (104%) 31.3 31.1 Figures in red parentheses show actual year- on-year changes, discounting the impact of 29.0 (105%) 29.2 (106%) exchange rates 27.9 (106%) 26.3 6.6 6.6 (110%)
Slide 19: Sales by Major Product Category (Yamaha branded products)
Musical Instruments/Audio Equipment: Sales by Major Product Category (Yamaha branded products) (Billions of yen) Musical Instruments Audio Equipment Piano Digital Musical Instruments AV products 51.4 48.4 (106%) 89.3 82.3 (103%) 48.3 4Q 11.4 18.4 44.4 (103%) 11.6 (108%) 17.8 9.5 (102%) 9.6 (108%) 3Q
Slide 20: Others: Full Year Projections
Others: Full Year Projections Full Year ■■■■Net Sales ■Operating Income (Billions of yen) 37.2 35.0 35.0 Full Year Projections Others 2.2 1.7 2.3 • Previous projections for sales and Resort 4.8 4.1 4.1 operating income remain unchanged. 5.8 Golf products 5.2 5.1 • Higher 4Q costs in the electronic d
Slide 21: Inventories
Inventories Inventories at the end of the third quarter (December 31, 2016) were ¥97.4 billion. Although the impact of exchange rates reduced inventories, they were still higher than the same period of the previous year. Inventories at the end of fiscal 2017 are forecast to be ¥92.0 billion. Refle
Slide 22: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billions of yen) Capital Expenditure (Depreciation) 19.6 ■Others ■Audio Equipment 16.5 (11.1) 1.8 ■Musical 11.2 1.8 Instruments 11.9 (12.7) 6.2 (9.4) 1.3 4.0 (11.3) 7.7 2.9 (8.1) 1.4 1.2 3.1 2.2 10.6 11.6 7.8 6.7 4.3 FY2016.3 1-3Q FY2017.3 1-3Q FY2016.3
Slide 23: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 3Q As of end of fiscal year end As of Dec. 31, As of Dec. 31, As of Mar. 31, As of Mar. 31, Changes 2017 projections Changes 2015 2016 2016 Cash and deposits 99.5 97.7 -1.8 88.2 93.6 5.4 Notes and accounts receivable 62.8 62.5 -0.3 47.8 48.0 0.2 I
Slide 24: Appendix
Appendix
Slide 25: Forecast for Performance in the Fourth Quarter of FY2017.3
Forecast for Performance in the Fourth Quarter of FY2017.3 (Three Months) (Billions of yen) Changes from FY2017.3 Changes from the FY2016.3 FY2017.3 same period of the 4Q previous previous 4Q results 4Q projections previous year projections** projection Net Sales 99.7 96.7 -3.0% 93.0 +4.0% Operating
Slide 26: Forecast by Business Segment in the Fourth Quarter of FY2017.3
Forecast for Performance by Business Segment in the Fourth Quarter of FY2017.3 (Three Months) Net Sales Operating Income Year-on-year change (Billions of yen) Changes from 99.7 (-3.0%) the previous 96.7 projections 93.0 8.8 (+4.0%) ■Others (-7.1%) 8.2 4.6 ■Audio 29.1 29.0 3.7 (-0.4%) 3.5 ■Others Equ
Slide 27: Third Quarter Non-Operating & Extraordinary Income/Loss
Third Quarter Non-Operating Income/Loss & Extraordinary Income/Loss (Nine Months) FY2016.3 1-3Q FY2017.3 1-3Q FY2017.3 1-3Q (Billions of yen) previous projections Non-Operating Income/Loss Net financial income 1.6 2.1 2.0 Other -0.9 -1.8 -2.5 Total 0.7 0.2 -0.5 -Gain on disposal of assets -Restructu
Slide 28: Full Year Non-Operating & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2016.3 full year FY2017.3 full year FY2017.3 full year (Billions of yen) projections previous projections Non-Operating Income/Loss Net financial income 2.7 3.4 3.2 Other -2.5 -2.4 -3.2 Total 0.2 1.0 -Structural reform expenses 0 -Gai
Slide 29: Quarterly Sales and Income
Quarterly Sales and Income 118.3 (Billions of yen) 111.9 109.2 109.8 105.5 99.7 100.8 100.8 98.4 96.7 98.4 93.0 12.4 15.7 12.9 11.8 12.9 12.7 11.8 13.9 8.9 3.7 4.6 3.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016.3 FY2017.3 FY2017.3 (previous projections) Net Sales (Full Year) 435.5 Net Sales (Full Ye
Slide 30: 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