Yamaha Corporation · TSE:7951
Yamaha — Q1 FY2015.3 Earnings Presentation
29 slides from Yamaha's earnings presentation, Aug 1, 2014
Slide 1: Analyst and Investor Briefing on FY2015.3
Yamaha Y h Corporation C ti Analyst and Investor Briefing on the Fiscal Year Ending March 31, 2015 (FY2015.3) ( ) August 1, 2014
Slide 2: Overview of Performance in the First Quarter
Overview of Performance in the First Quarter Results Summary First quarter sales increased year-on-year, and operating income was on a par with the previous year. Although sales were slightly lower than previous projections, operating income was broadly in line with expectations. Musical instrum
Slide 3: Performance in the First Quarter of FY2015.3
Performance in the First Quarter of FY2015.3 (Billions of yen) Change from Previous Change from FY2014.3 FY2015.3 1Q 1Q same pperiod of Projections j the p previous the previous year projections 1Q Net Sales 97.0 99.6 +2.7% 100.5 -0.9% Operating Income 6.2 6.2 6.0 (Operating Income Ratio) +1.1% +3.9
Slide 4: Performance by Business Segment in the First Quarter of FY2015.3
Performance by Business Segment in the First Quarter of FY2015.3 Net Sales Operating Income Change from the (Billions of yen) Year-on-year change previous projections 97.0 100.5 (2.7%) 99.6 (-0.9%) (-8.5%) (-11.4%) ■Others 6.3 6.5 5.8 4.5 (-15.2%) ■Electronic 4.6 (-17.8%) 3.8 6.2 6.2 Devices 6.0 ■Au
Slide 5: FY2015.3 1Q Operating Income Analysis
FY2015.3 1Q Operating Income Analysis (Billi (Billions off yen)) Versus same period of the previous year Increase in Improvement labor cost in at overseas New manufacturing factories consolidations cost -¥0.7 Actual Actual Impact of +¥0.9 -¥0.3 decrease in decrease in exchange 6.2 6.2 sales SG&A rat
Slide 6: Musical Instruments 1Q
Musical Instruments 1Q 1Q ((Billions of yen) y ) ■Net Sales ■Operating Income 1Q Overview 62.6 65.0 65 7 65.7 Sales and income increased year-on-year and exceeded previous projections The North American market was on a recovery Music M i 20 4 20.4 19 3 19.3 18.9 trend, but the European market re
Slide 7: Audio Equipment 1Q
Audio Equipment 1Q 1Q ((Billions of yen) y ) ■■■Net Sales ■Operating Income 1Q Overview 23.5 24.5 24.3 Sales increased from the same period of the previous year, but income declined. These results were largely in line with previous projections. ICT devices d i 16 1.6 31 3.1 33 3.3 Sales of AV pr
Slide 8: Electronic Devices 1Q
Electronic Devices 1Q 1Q ((Billions of yen) y ) ■Net Sales ■Operating Income 1Q Overview • Sales and income were down year-on-year and against previous projections p • Sales of smartphone components p including g geomagnetic sensors and codec products declined • Conditions remained challenging in th
Slide 9: Others 1Q
Others 1Q 1Q ((Billions of yen) y ) ■■■■Net Sales ■Operating Income 1Q Overview 6.3 6.5 5.8 • Sales and income declined from the same period of the previous year, and sales were below previous projections • Automobile interior wood component sales were 1.9 broadly in line with expectations FA equipm
Slide 10: Outlook for 2-4Q and Full Year
Outlook for 2-4Q and Full Year Outlook for 2-4Q Ongoing rebound in demand is anticipated for musical instruments in the North American and Chinese markets Although recovery from the negative impact of defective AV product components t is i expected, t d conditions diti remain i challenging h ll
Slide 11: Forecast for Performance in FY2015.3 (Full Year)
Forecast for Performance in FY2015.3 (Full Year) (Billions of yen) FY2014.3 FY2015.3 Increase/ Change from Previous the previous results projections p j decrease j Projections projections Net Sales 410.3 430.0 +4.8% 430.0 - O Operating ti Income I 26 0 26.0 29 0 29.0 29 0 29.0 (Operating Income Rati
Slide 12: FY2015.3 Full Year Forecast for Performance by Business Segment
FY2015.3 Full Year Forecast for Performance by Business Segment (Billi (Billions off yen)) Net Sales Change from the previous projections Operating Income Year-on-year change 430.0 (4.8%) 430.0 (-) 410.3 29.0 29.0 ■Others 26.0 (9.8%) 26.0 (-) 23.7 26.0 0.5 ■Others ■Electronic 19.0 (-7.1%) 17.5 (-7.9
Slide 13: FY2015.3 Full Year Operating Income Analysis
FY2015.3 Full Year Operating Income Analysis (Billi (Billions off yen)) Versus same period of the previous year Improvement in manufacturing Increase in Impact of cost labor cost Actual exchange +¥3.6 at overseas Actual increase in 29.0 rates factories increase in sales and SG&A +¥2.5 production 26.
Slide 14: Musical Instruments Full Year Projections
Musical Instruments Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income 274.5 Full Year Projections 262 3 273.0 262.3 The recovery trend in the North American market is expected to continue The European market is projected to pick up Music 78.9 78.4 after flat year yea
Slide 15: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region 107.6 105.7 (98%) (Billions of yen) Figures in parentheses show actual year-on-year changes, discounting the impact of exchange rates 4Q 29.2 27.0 (93%) 3Q 25.6 26.2 (102%) 46.4 (114%) 45.5 49 1 (107%) 49.1 43.2 45.7 (106%) 40.8 2Q (102%) 9.5 (102%) 24.2 24.7 11.
Slide 16: Audio Equipment Full Year Projections
Audio Equipment Full Year Projections Full Year (Billions of yen) ■■■Net Sales ■Operating Income Full Year Projections 112 0 112.0 105.5 112 0 112.0 Launch of new AV products will keep actual results broadly in line with the previous year 13.6 13.7 q p Professional audio equipment sales are ICT
Slide 17: Audio Equipment: Sales by Region
Audio Equipment: Sales by Region (Billions of yen) Figures in parentheses show 28.6 29.6 (103%) actual year-on-year changes, discounting the impact of 26.6 26 6 (106%) exchange rates 25.1 24.6 25.1 (102%) 6.6 (108%) 6.5 5 9 (106%) 5.9 5.7 20.6 21.2 21 2(104%) 7.7 7.8 4Q (101%) 4.9 9.2 9.7 (108%) 4.7
Slide 18: 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 Piano Digital Musical Instruments AV Products (excl. parts) 76.7 82.4 (107%) 48.1 48.1 (100%) 17.6 49.2 48.7 (99%) 18.1 (100%) 4Q (102%) 12.6 11.9 (97%) 10.3 10.3 25 8 25.8 (106
Slide 19: Electronic Devices Full Year Projections
Electronic Devices Full Year Projections Full Year (Billions of yen) ■Net Sales ■Operating Income Full Year Projections Sales and income are expected to be below previous projections Trends in new p product launches are the key y to a rally in sales of components for amusement equipment Althou
Slide 20: Others Full Year Projections
Others Full Year Projections Full Year (Billions of yen) ■■■■Net Sales ■Operating Income Full Year Projections 23 7 23.7 26 0 26.0 26 0 26.0 Sales of automobile interior wood components are expected to be in line with previous projections FA equipment, q p , etc. 6.8 6.8 56 5.6 Sales are anticip
Slide 21: Inventories
Inventories Inventories at the end of 1Q (June 30, 2014) decreased year on year and versus previous projections (year-on-year forex impact of +¥2.4 billion) Inventories at the end of the fiscal year is forecast to decrease versus previous projections and remain at the previous year level (Billions
Slide 22: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses (Billi (Billions off yen)) Capital Expenditure (Depreciation) (12.8) 13.8 (12.8) 13.6 (13.1) ■Others 10.8 1.0 0.8 ■Electronic Devices 0.8 0.9 0 9 ■Audio Equipment 1.2 2.4 ■Musical Instruments 0.2 3.3 3.2 (2.9) 2.8 2.1 (2.9) 0.2 0.4 0.7 9.6 8.5 0.1 0 0.6
Slide 23: Balance Sheet Summary
Balance Sheet Summary (Billi (Billions off yen)) As of end of 1Q As of fiscal year end As off J A June As A off J June As of Mar. As of Mar. Change Change 30, 2013 30, 2014 31, 2014 31, 2015 Cash and deposits 52.1 61.4 9.3 60.6 76.2 15.6 Notes and accounts receivable 52.3 52.4 0.1 56.7 57.3 0.6 Inve
Slide 24: Appendix
Appendix
Slide 25: 1Q Non-Operating Income/Loss & Extraordinary Income/Loss
1Q Non-Operating Income/Loss & Extraordinary Income/Loss FY2014.3 1Q FY2015.3 1Q FY2015.3 1Q (Billions of yen) previous projections Non-Operating Income/Loss Net financial income 0.4 0.2 0.3 Other -0.3 -0.7 -0.6 Total 0.1 -0.5 -0.3 Extraordinary Income/Loss Income from (loss on) 0 0 -0.1 01 disposal
Slide 26: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2014.3 full year FY2015.3 full year FY2015.3 full year (Billions of yen) previous projections projections Non-Operating Income/Loss Net financial income 2.6 1.6 2.1 Other -2.5 -2.6 -3.1 Total 0.1 -1.0 -1.0 Extraordinary Income/Loss In
Slide 27: Quarterly Sales and Income
Quarterly Sales and Income (Billi (Billions off yen)) 120.0 111.0 104.9 105.5 97.0 100.7 101.6 99.6 9.1 8.3 11.0 6.2 7.5 6.2 32 3.2 3.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2014.3 FY2015.3 p projections j 27
Slide 28: Quarterly Sales and Income by Segment
Quarterly Sales and Income by Segment (Billi (Billions off yen)) Musical Instruments Audio Equipment 74.0 62.6 64 3 69.8 65.6 62 6 64.3 65.7 69.3 65.5 30 6 30.6 34.0 26.1 24.3 26.2 27.5 23.5 25.3 6.3 5.8 7.2 7.0 3.5 4.4 5.2 38 3.8 2.7 25 2.5 0.9 17 1.7 0.6 0.6 1.4 0.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3
Slide 29: Forward-looking statements notice
In this report, the figures forecast for the Company Company’s 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 fr