Yamaha Corporation · TSE:7951
Yamaha — FY2017 Earnings Presentation
39 slides from Yamaha's earnings presentation, May 2, 2017
Slide 1: Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2017
Yamaha Corporation Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2017 (FY2017.3) May 2, 2017
Slide 2: Overview of Performance in FY2017.3
Overview of Performance in FY2017.3 Results Summary Although full year sales declined year-on-year, income increased for the fifth consecutive year. Musical instrument sales decreased from the previous year due to the impact of exchange rates and transfer of music school operations, but strong p
Slide 3: Performance in FY2017.3
Performance in FY2017.3 (billions of yen) Changes from FY2017.3 Changes from FY2016.3 FY2017.3 the previous previous the previous year projections** projection Net Sales 435.5 408.2 -6.3% 405.0 +0.8% Operating Income 40.7 44.3 42.0 (Operating Income Ratio) +8.9% +5.5% (9.3%) (10.9%) (10.4%) Ordinary
Slide 4: Performance by Business Segment in FY2017.3
Performance by Business Segment in FY2017.3 Net Sales Operating Income Changes (billions of yen) Year-on-year change from previous (billions of yen) projections 435.5 (-6.3%) 405.0 408.2 (+0.8%) 44.3 42.0 ■Others 37.2 (-5.7%) 40.7 35.1 (+0.3%) 35.0 1.7 0.5 0.4 ■Audio 120.9 (-4.5%) Equipment 115.5 (+
Slide 5: FY2017.3 Operating Income Analysis
FY2017.3 Operating Income Analysis Versus same period of the previous year (billions of yen) Cost Actual reduction Impact of measures exchange Revision increase in Increase in sales 4.9 rates of selling labor cost prices 4.5 -11.1 at oversea Decrease in SG&A 3.5 40.7 factories 44.3 3.8 -2.0 FY2016.3
Slide 6: Musical Instruments: 4Q/Full Year
Musical Instruments: 4Q/Full Year ■Net Sales ■Operating Income 4Q 4Q Overview (Three Months) (billions of yen) 61.8 61.1 • Sales decreased year-on-year, but income rose. Music • The Chinese market achieved double-digit year-on-year schools, etc. 14.6 14.3 growth, and all markets except Japan showed
Slide 7: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (including software products and music schools) All regions: Net Sales (Full year) ¥257.7 (102%) (billions of yen) (96%) 87.5 *Figures in blue parentheses show actual year-on-year changes, 79.8 (91%) excluding the sales of music school **Figures in red parenthese
Slide 8: Audio Equipment: 4Q/Full Year
Audio Equipment: 4Q/Full Year ■■■ ■Operating Income 4Q Net Sales (billions of yen) 4Q Overview (Three Months) 29.1 30.5 • Sales and income increased year-on-year. • Sales were robust in the Japanese and North American ICT devices 3.5 3.7 markets. • Key AV and professional audio equipment products so
Slide 9: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region All regions: Net Sales (Full year) ¥115.5 (104%) (billions of yen) *Figures in red parentheses show actual 31.3 31.1 year-on-year changes, discounting the (107%) (104%) impact of exchange rates 29.7 28.9 28.4 (108%) 26.4 6.6 6.6 (103%) 7.1 (109%) 6.4 10.1(108%) 20.5
Slide 10: Musical Instruments/Audio Equipment: Sales by Major Product Category
Musical Instruments/Audio Equipment: Sales by Major Product Category (billions of yen) Musical Instruments Audio Equipment Pianos Digital Musical Instruments AV Products 51.4 89.3 48.3 48.5 (105%) 83.0 (103%) 44.9 (103%) 11.4 18.4 4Q 11.6 18.5 9.5 (105%) (102%) 10.1 (109%) 3Q 13.1 28.1 12.5 (106%) 2
Slide 11: Others: 4Q/Full Year
Others: 4Q/Full Year ■■■■ ■Operating 4Q Net Sales Income 4Q Overview (Three Months) (billions of yen) 8.8 • Although sales were down year-on-year, operating Others 0.7 8.3 income returned to positive figures. Resort 0.6 • Operating income improved to exceed previous 0.9 0.5 projections, due to facto
Slide 12: Forecast for Performance in FY2018.3
Forecast for Performance in FY2018.3 Assumptions Despite uncertainty in the global economy and market environment due to political tensions and other unexpected factors, markets are projected to remain firm. Musical instruments: high growth is expected in China and emerging markets. In addition
Slide 13: Forecast for Performance in FY2018.3 (Full Year)
Forecast for Performance in FY2018.3 (Full Year) Full year sales and income are both projected to rise year-on-year in FY2018.3, with operating income reaching a new record high. Net income is forecast to decline, due to the impact of posting deferred tax assets in the previous year. (billions o
Slide 14: Forecast for Performance by Business Segment in FY2018.3
Forecast for Performance by Business Segment in FY2018.3 (billions of yen) Net Sales Operating Income Changes from previous projections 408.2 427.0 (+4.6%) 35.0 48.5 ■Others 35.1 (-0.3%) 44.3 2.0 1.7 ■Audio 115.5 123.0 (+6.5%) Equipment 11.5 10.4 ■Musical Instruments 269.0 (+4.4%) 35.0 257.7 32.1 FY
Slide 15: FY2018.3 Operating Income Analysis
FY2018.3 Operating Income Analysis (billions of yen) Versus previous year Cost reduction measures 3.9 Impact of Revision Increase in exchange of selling labor cost Actual rates Increase in prices at oversea increase in -0.5 factories SG&A sales and 2.5 -6.1 production -1.2 48.5 5.6 44.3 FY2017.3 FY2
Slide 16: Musical Instruments: FY2018.3 Projections
Musical Instruments: FY2018.3 Projections (billions of yen) Net Sales 257.7 269.0 Music 54.0 schools, etc. 54.4 Projections Musical • Sales and income are both expected to be higher than Instruments 203.3 215.0 the previous year. • Double-digit growth is projected to continue in the Chinese market,
Slide 17: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (including software products and music schools) All regions: Net Sales (Full year) ¥269.0 (103%) (billions of yen) 79.8 80.0 (100%) *Figures in red parentheses show actual year-on-year changes, discounting the impact of exchange rates 4Q 20.0 19.9 (99%) 52.7 54.9
Slide 18: Audio Equipment: FY2018.3 Projections
Audio Equipment: FY2018.3 Projections Net Sales (billions of yen) 115.5 123.0 ICT devices 14.4 15.1 Projections PA Equipment 51.9 56.2 • Sales and income are both projected to increase year-on-year. AV products, • Professional audio equipment sales are Karaoke, etc. expected to grow, especially for
Slide 19: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (billions of yen) All regions: Net Sales (Full year) ¥123.0 (105%) Figures in red parentheses show actual year- 31.7(105%) 31.2 (106%) on-year changes, discounting the impact of 29.4 (104%) 29.7 28.9 exchange rates 28.4 6.8 (99%) 6.8 (106%) 7.1 6.4 10.1(100%) 10.1 4Q
Slide 20: Musical Instruments/Audio Equipment: Sales by Major Product Category
Musical Instruments/Audio Equipment: Sales by Major Product Category (billions of yen) Musical Instruments Audio Equipment Pianos Digital Musical Instruments AV Products 48.5 50.8 (104%) 87.8 (105%) 47.3 (104%) 83.0 44.9 4Q 11.6 11.9 (105%) 19.0 (105%) 9.9 (101%) 18.5 10.1 3Q 12.9 (102%) 26.5 (106%)
Slide 21: Others: FY2018.3 Projections
Others: FY2018.3 Projections Net Sales (billions of yen) 35.1 35.0 Others 2.1 1.4 Resort 4.1 2.0 Golf Products 6.0 5.4 Projections Industrial machinery and components Sales are projected to be on a par with the previous 23.5 25.6 year, and income is expected to rise. The impact of lower sales re
Slide 22: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2016.3 full year FY2017.3 full year FY2018.3 full year (billions of yen) projections Non-Operating Income/Loss Net financial income 2.7 3.5 3.1 Other -2.5 -2.9 -3.1 Total 0.2 0.6 0 -Gain on disposal of idle Extraordinary Income/Loss l
Slide 23: Inventories
Inventories Inventories at the end of fiscal 2017 amounted to ¥93.1 billion. Although inventories continued to fall in the fourth quarter, they were higher than at the end of the previous year. Inventories at the end of fiscal 2018 are forecast to be ¥89.8 billion. (billions of yen) 91.9 93.1 89
Slide 24: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure (Depreciation) Due to projects including construction of the new Innovation Center on the headquarters site and investment in overseas production facilities, capital expenditure in FY2018.3 will increase by ¥10.8 billion above the p
Slide 25: Balance Sheet Summary
Balance Sheet Summary (billions of yen) As of March 31, 2016 As of March 31, 2017 As of March 31, 2018 projections Cash and deposits 88.2 105.9 119.2 Notes and accounts receivable 47.8 49.8 52.0 Inventories 91.9 93.1 89.8 Other current assets 27.2 23.9 26.0 Fixed assets 214.6 249.7 267.0 Total asset
Slide 26: Key Financial Figures
Key Financial Figures (billions of yen) FY2015.3 FY2016.3 FY2018.3 FY2019.3 FY2017.3 projections Mid-term target Net Sales 432.2 435.5 408.2 427.0 465.0 Operating Income 30.1 40.7 44.3 48.5 55.0 Operating Income Ratio 7.0% 9.3% 10.9% 11.4% 12% ROE 8.1% 10.1% 14.0%* 10.2% 10% level Earnings per Share
Slide 27: Return to Stockholders
Return to Stockholders • The annual dividend for FY2017.3 is ¥52, representing an increase for the fourth consecutive year. • The annual dividend for FY2018.3 is forecast to be ¥56. Annual per-share dividend (yen) Dividend payout ratio (%) 47.0 38.6 22.8 28.0 26.1 26.9 20.9 56 52 44 36 27 10 10 10 F
Slide 28: Transition to a Company with Nominating Committee, etc.
Transition to a Company with Nominating Committee, etc. Objectives To make a clear separation between oversight and execution in management, thereby enhancing the overall management oversight function by the Board of Directors and speeding up the execution of management. Post-transition Structure
Slide 29: Appendix
@) YAMAHA Appendix
Slide 30: Quarterly Sales and Income
Quarterly Sales and Income (billions of yen) 118.3 116.5 111.9 109.2 107.0 105.5 102.0 100.8 101.5 99.7 98.4 99.9 12.4 15.7 12.9 12.0 14.0 15.5 8.9 11.8 12.7 3.7 6.9 7.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016.3 FY2017.3 FY2018.3 (projections) Net Sales (Full Year) 435.5 Net Sales (Full Year) 408
Slide 31: Key Products in FY2018.3: Disklavier ENSPIRE
Key Products in FY2018.3 An acoustic player piano that offers an immersive new user experience and exciting new ways to listen, learn and play Disklavier ENSPIRETM Disklavier ENSPIRE retains its category-leading position as the only fully- integrated and most accurate high-resolution reproducing pia
Slide 32: Key Products in FY2018.3: Clavinova CLP Series
Key Products in FY2018.3 Pursuing the true grand piano-like experiences with new GrandTouch keys Clavinova CLP Series The new CLP-600 Series captures the soul of a remarkable concert instrument in a digital piano to deliver a grand piano performance in a more personal environment. In order to achiev
Slide 33: Key Products in FY2018.3: REVSTAR Electric Guitars
Key Products in FY2018.3 Inspired by custom bikes and Japanese craft, engineered for the stage REVSTAR Series Electric Guitars Drawing inspiration from London and Tokyo’s vintage street-racing motorbikes, Japan’s heritage of engineering excellence and the 50-year legacy of Yamaha guitar craftsmanshi
Slide 34: Key Products in FY2018.3: TransAcoustic Guitar
Key Products in FY2018.3 A guitar of built-in sounding reverb/chorus with no need for external amplification or effects TransAcousticTM Guitar The Yamaha TransAcoustic guitar recreates the experience of playing in a rich, live room without needing any external amplification or effects, just the guit
Slide 35: Key Products in FY2018.3: RIVAGE PM10
Key Products in FY2018.3 New-generation digital mixing system for large-scale live concerts RIVAGE PM10 RIVAGE PM10 is a new generation of PM console, a thoroughly refined flagship model realizing state-of-the-art sound quality operation, functionality, reliability and expandability to bring true in
Slide 36: Key Products in FY2018.3: VXS Speaker Systems
Key Products in FY2018.3 Suitable for delivering BGM at cafés and restaurants Speaker Systems VXS1MLB, VXS1MLW Subwoofers VXS3SB2, VXS3SW Speaker Systems Subwoofer VXS1MLW VXS1MLB VXS3SW The most compact models within VXS series speakers that are ideal for BGM delivery in various scenes such as rest
Slide 37: Key Products in FY2018.3: NS-5000 HiFi Speaker
Key Products in FY2018.3 3-way bookshelf speaker NS-5000 HiFi Speaker Transparent, uncolored sound. Exceptionally wide range. Consistent tone color throughout the entire frequency spectrum. Overwhelmingly low distortion. We have scientifically quantified each sound quality necessary in a flagship sp
Slide 38: Key Products in FY2018.3: Cubase 9
Key Products in FY2018.3 State-of-the-art music production software Cubase 9 by Steinberg Cubase Pro 9, Cubase Artist 9 and Cubase Elements 9 are the latest versions of comprehensive music production software that supports every scene in contemporary music production, such as composition, arrangemen
Slide 39: Forward-looking forecasts 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