Yamaha Corporation · TSE:7951
Yamaha — Q3 FY2006 Earnings Presentation
28 slides from Yamaha's earnings presentation, Feb 9, 2006
Slide 1: Analyst and Investor Briefing on the Third Quarter of FY 2006.3
Analyst and Investor Briefing on the Third Quarter of FY 2006. 3* (April 1 to December 31, 2005) February 9, 2006 YAMAHA CORPORATION *Fiscal year ending March 31, 2006
Slide 2: Overview of Performance in the Third Quarter
Overview of Performance in the Third Quarter Third Quarter Results Although strong sales of lifestyle-related products continued, sales of musical instruments, AV products and semiconductors failed to reach expected levels and overall sales were 2.5% lower than the projection made at the end of the
Slide 3: Business Performance in the Third Quarter
Business Performance in the Third Quarter Sales were up year-on-year, while income was down Both sales and income were lower than the previous projections Billions of yen) FY 2005. 3 Change Previous Change from FY 2006. 3 previous (3Q) 3Q from FY projections 2005. 3 3Q (Oct. 31, 2005) projections Ne
Slide 4: Performance by Business Segment in the Third Quarter
Performance by Business Segment in the Third Quarter Net Sales Operating Income 149.2 (+3.0%) 153.0 (-2.5%) (Billions of yen) Recreation 144.9 10.6 & others 10.9 (+11.2) +2.8) 9.8 11.3 Lifestyle-related 12.5 (+4.2) (+10.6) products 12.0 Lifestyle- (-13.9) 14.6 (-2.7) Electronic 14.2 13.9 14.2 relate
Slide 5: Forecast for Business Performance in FY 2006.3
Forecast for Business Performance in FY 2006.3 Estimated 4Q exchange rates: US$=¥110, EUR=¥134 Full-year projections for sales and income are lower than previous projections (Billions of yen) (%) Change Change FY 2006. 3 FY 2006. 3 1Q-3Q 4Q FY 2005. 3 from from (new (previous actual projections actu
Slide 6: Full Year Forecast for Performance by Segment
FY 2006. 3 Full Year Forecast for Performance by Segment Net sales Operating income 534.1 529.0 (-1.0%) 536.5 (-1.4%) (Billions of yen) Recreation & others 41.9 +1.4) 42.5 (0) 42.5 Lifestyle- related 42.8 44.5 (+4.0) 43.0 (+3.5) products Electronic 69.0 56.0 (-18.8) 57.5 (-2.6) 35.7 equipment & meta
Slide 7: Musical Instruments
Musical Instruments 3Q Overview 4Q Projections and Priority Policies •Sales and income rose year-on-year, partly due to the weaker yen. •Discounting the effect of exchange rates, actual 3Q sales rose 1.6% year-on- • Downward revision of full-year operating income projections. year. Professional audi
Slide 8: AV/IT
AV/IT 3Q Overview 4Q Projections and Priority Policies •Sales rose but income fell year-on-year. • 4Q sales projections were revised downward to ¥16.2 •Actual 3Q sales were 2.8% lower than those in the previous year billion, in line with the figure for the same quarter of the (17.0% lower than previ
Slide 9: Electronic Equipment & Metal Products
Electronic Equipment & Metal Products 3Q Overview 4Q Projections and Priority Policies •Sales and income fell both year-on-year and against • Downward revision of 4Q sales and operating income projections. projections. •In semiconductor business, demand and unit prices declined • Unit prices for LSI
Slide 10: Lifestyle-related Products
Lifestyle-related Products 3Q Overview 4Q Projections and Priority Policies •Sales and income rose both year-on-year and against projections. •4Q sales are forecast to reach ¥9.4 billion, slightly higher •Robust sales of marble sink kitchens continued. than projections. •Although new bathroom produc
Slide 11: Recreation
Recreation 3Q Overview 4Q Projections and Priority Policies •3Q sales rose year-on-year due to higher guest numbers resulting from more rooms. Increased room rates also contributed to this result. •4Q sales and income are forecast to come in below projections. •In spite of increased sales and reduce
Slide 12: Others
Others 3Q Overview 4Q Projections and Priority Policies •Sales for the segment as a whole rose both year-on-year and •4Q sales are forecast to be ¥6.8 billion , higher than against projections. both the previous year’s 4Q results and projections. Operating income projections are unchanged. •Sales an
Slide 13: Inventories
Inventories Inventories at the end of 3Q were higher than the previous year and previous projections. We will work to reduce inventories by the end of the fiscal year, including reducing production. End of 3Q End of FY 82.8 84.7 (Billions of yen) 75.0 78.4 72.5 69.9 Goods in 26.8 23.7 process/ 22.5
Slide 14: Slide 14
Slide 15: Appendix
Appendix
Slide 16: Third Quarter Non-operating Income/Loss & Extraordinary Income/Loss
Third Quarter Non -operating Income/Loss & Extraordinary Income/Loss FY 2005. 3 (3Q) FY 2006. 3 (3Q) FY 2006. 3 (3Q) results results previous projections Non-operating income (loss) (Billions of yen) Equity method income 3.4 3.9 3.8 Net financial (0.2) (0.1) (0.3) income (loss) Other (0.7) (1.0) (1.
Slide 17: Full-year Non-operating Income/Loss & Extraordinary Income/Loss
Full -year Non -operating Income/Loss & Extraordinary Income/Loss FY 2005. 3 FY 2006. 3 FY 2006. 3 results new projections previous projections Non-operating income (loss) (Billions of yen) Equity method income 9.1 14.8 13.7 Net financial (0.3) (0.2) (0.6) income (loss) Other (3.2) (3.6) (4.1) Total
Slide 18: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure/Depreciation (Billions of yen) 1-3Q Full Year 22.7 24.0 24.0 4.3 4.5 16.1 5.3 Others 14.8 (19.0) (19.5) (19.5) (14.7) 5.9 5.8 Electronic equipment & 3.5 2.6 (14.3) 5.0 metal products 1.4 1.4 3.5 4.2 1.1 AV/IT 0.8 0.8 Musical 11.3 12.4
Slide 19: Interest-bearing Liabilities (Actual Balance)
Interest -bearing Liabilities (Actual Balance) 29.1 (Billions of yen) Free Cash Flows 15.8 4.4 -2.4 -18.0 FY 2005. 3 FY 2005. 3 FY 2006. 3 FY 2006. 3 FY 2006. 3 1H 2H 1H 3Q 4Q new Interest-bearing projections) Liabilities 23.1 15.5 13.6 Long- and short-term borrowings, less cash and deposits -2.0 -4
Slide 20: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of end of 3Q Full Year As of As of Change As of As of Change Dec. 31, 2004 Dec. 31, 2005 Mar. 31, 2005 Mar. 31, 2006 Cash and bank deposits 42.8 30.0 -12.8 51.2 27.8 -23.4 Accounts & notes receivable 89.3 88.6 -0.7 71.6 74.6 3.0 Inventories 82.8 84.7 1.9 78
Slide 21: YAMAHA Musical Instrument Sales in the Japanese Market
YAMAHA Musical Instrument Sales in the Japanese Market As demand for the STAGEA TM ElectoneTM ran its course, sales over the first three quarters amounted to ¥6.6 billion, down ¥4.6 billion year-on-year. Sales of products other than Electones TM were in line with the previous year. Thanks to increas
Slide 22: YAMAHA Musical Instrument Sales in the U.S. Market
YAMAHA Musical Instrument Sales in the U.S. Market Sales over the first three quarters were driven by a buoyant market for musical instruments in the U.S. and amounted to 103% of the same period the previous year. Sales of professional audio equipment, especially digital mixers, stayed strong at 118
Slide 23: YAMAHA Musical Instrument Sales in the German Market
YAMAHA Musical Instrument Sales in the German Market Retail conditions remain difficult, reflecting macroeconomic factors. However, customers began returning to the stores toward the end of the year and sales recovered to 103% of the same period the previous year. Electronic instruments such as elec
Slide 24: YAMAHA Musical Instrument Sales in the U.K. Market
YAMAHA Musical Instrument Sales in the U.K. Market Overall the musical instrument market remained depressed, with actual retail sales sluggish in both specialty music stores and mass market. Particularly with regard to wind instruments, the volume of inexpensive import models from China has been rap
Slide 25: YAMAHA Musical Instrument Sales in the Chinese Market
YAMAHA Musical Instrument Sales in the Chinese Market Although China’s end-of-year sales lacked vigor overall, products such as pianos and digital mixers sold well. The music school opened in Shanghai in November made a healthy start, with approximately 200 students enrolled. 800 800 Wholesale amoun
Slide 26: Scale of Home Theater Market
Scale of Home Theater Market (Home theater systems, amplifiers and receivers) Home Theater Systems AV Amplifiers and Receivers World market has flattened out World market shrinking by 2-3% p.a. North America: HTiB is contracting, systems with DVD are showing Europe and N. America: Market contracting
Slide 27: AV Market Share
AV Market Share Japan Home Theater Systems: AV Amplifiers: Share of Total Sales Share of Total Sales Value Value (GfKJ) 20% (GfKJ) 40% 30% 10% 20% 39% 14% 14% 12% 35% 33% 31% 11% 10% 23% 10% 0% 0% ’01 ’02 ’03 ’04 ’05 ’01 ’02 ’03 ’04 ’05 U.S. Home Theater Systems: AV Receivers: Share of Total Sales S
Slide 28: In this report, the figures forecast for the Company’s future performance have been calculated
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