Yamaha Corporation · TSE:7951
Yamaha — FY2012 Earnings Presentation
38 slides from Yamaha's earnings presentation, May 2, 2012
Slide 1: Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2012
Analyst and Investor Briefing on the Fiscal Year Ended March 31, 2012 (FY2012.3) May 2, 2012 YAMAHA CORPORATION
Slide 2: Overview of Performance in FY2012.3
Overview of Performance in FY2012.3 External Environment ■ The global economy slowed from mid-2011, chiefly due to the escalation of fiscal problems in Europe, and the outlook become even less certain. ■ Japan is gradually recovering from the effects of the Great East Japan Earthquake, but there has
Slide 3: Performance in FY2012.3
Performance in FY2012.3 Sales, operating income and ordinary income were all higher than previous projections, but a large net loss was recorded (Billions of yen) Previous Change from FY2011.3 FY2012.3 Increase/ projections previous results results Decrease (announced on Feb. 2, 2012) projections N
Slide 4: Performance by Business Segment in FY2012.3
Performance by Business Segment in FY2012.3 Net Sales (Billions of yen) Operating Income 373.9 (Billions of yen) (-4.6%) 356.6 (+0.7%) Others 25.1 354.0 Electronic (-11.9) 22.1 (+0.6) 22.0 13.2 devices 20.6 16.2 (-21.2) (-1.6) 16.5 8.1 7.5 57.0 1.5 AV/IT (-6.8) 53.2 (+1.3) 52.5 Electronic 0.5 device
Slide 5: Impact of Japanese Earthquake and Thai Floods
Impact of Japanese Earthquake and Thai Floods ■Impact of Great East Japan Earthquake Net sales -¥9.5 billion Operating -¥3.5 billion income Note: Impact on production -¥4.0 billion ■Impact of additional events Net sales -¥2.0 billion Production delays following re-start of component supply Operating
Slide 6: FY2012.3 Operating Income Analysis
FY2012.3 Operating Income Analysis Versus previous year (Billions of yen) Impact of exchange Material rates cost Change in -¥2.7 increases inventory valuation -¥1.7 method 13.2 -¥0.9 Decrease in Restructuring Decrease actual SG&A cost increases Effects of expenses in actual 8.1 -¥0.6 restructuring s
Slide 7: Musical Instruments
Musical Instruments 4Q Overview FY2012.3 Overview •Profitability improved year-on-year and sales were higher than •Sales and income declined year-on-year, but were higher than previous projections. previous projections. •Discounting the impact of exchange rates, actual sales were up 3.0% •Discountin
Slide 8: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region (Billions of yen) Figures in parentheses show actual year-on-year changes, North America Europe discounting the impact of exchange rates 41.6 37.9 (-2%) Japan 9.9 48.5 45.4 (-3%) 9.7 (+2%) 10.3 9.0 (-4%) 10.3 121.8 (-3%) 9.1 (-6%) 15.5 13.7 (-6%) 118.5 11.3 10.3
Slide 9: Musical Instruments: Sales by Region
Musical Instruments: Sales by Region Musical Instrument Sales by Region Backlogs in Electone supply caused by the earthquake were resolved through rapid re-start of production, but subsequent orders were flat, and sales declined year-on-year. Digital piano backlogs have almost been filled, but marke
Slide 10: Musical Instruments: Sales by Product Category
Musical Instruments: Sales by Product Category Japan: The earthquake had less impact Pianos than predicted, and full-year results were Electone (Billions of yen) nearly on par with the previous year. Figures in parentheses show 39.3 40.3 (+6%) North America: Although moderately-priced actual year-on
Slide 11: AV/IT
AV/IT 4Q Overview FY2012.3 Overview •Sales and income declined year-on-year. Sales •Sales declined year-on-year, but income increased. were higher than previous projections and Sales and income both exceeded previous projections. profitability improved. •Actual sales of AV products were on par with
Slide 12: Electronic Devices
Electronic Devices 4Q Overview FY2012.3 Overview •Sales declined from the same period of the previous year •Sales and income were down year-on-year, and sales and were lower than previous projections. were lower than previous projections. •Sales of most products were down year-on-year and •Condition
Slide 13: Others
Others 4Q Overview FY2012.3 Overview •Sales fell year-on-year, but profitability remained about •Sales and income declined year-on-year, but were in line the same, broadly meeting previous projections. with previous projections. •Sales of automobile interior wood components were •Sales of automobile
Slide 14: FY2013.3 Business Environment and Performance Forecast
FY2013.3 Business Environment and Performance Forecast Business Environment ■ Instability in the global economy, especially European markets. ■Despite slowing in pace, Chinese growth remains solid, and steady expansion is projected in emerging markets. ■ Yen remains strong. ■ Operating conditions ar
Slide 15: Forecast for Performance in FY2013.3
Forecast for Performance in FY2013.3 (Billions of yen) FY2012.3 FY2013.3 Increase/ Year-on-year percentage results forecasts decrease change Net sales 356.6 378.0 +21.4 +6.0% Operating income 8.1 14.5 +6.4 +78.8% (Operating income ratio) (2.3%) (3.8%) Ordinary income 7.3 13.0 +5.7 +79.2% (Ordinary i
Slide 16: Forecast for Performance by Business Segment in FY2013.3
Forecast for Performance by Business Segment in FY2013.3 Figures in Net Sales parentheses show Operating Income change from the previous year (Billions of yen) (+6.0%) 378.0 (Billions of yen) 356.6 Others (+17.5) 26.0 Electronic 22.1 (+4.7) 17.0 16.2 devices 53.2 (+3.5) 55.0 14.5 AV/IT Others 0.5 8.
Slide 17: FY2013.3 Sales and Operating Income Analysis (Projection)
FY2013.3 Sales and Operating Income Analysis (Projection) Net sales Newly (Billions of yen) Impact of consolidated Increase in exchange subsidiaries, actual sales rates etc. ¥26.2 -¥7.3 ¥2.5 356.6 378.0 FY2012.3 FY2013.3 result projection Increase in Operating income actual Impact of sales and excha
Slide 18: Musical Instruments: Projections
Musical Instruments: Projections ■Market Environment ■Priority Measures • North America is on a recovery trend, but •Expand sales in emerging markets including conditions remain uncertain in European markets. China. •Continuing growth momentum in China and other •Leverage results of production struc
Slide 19: Musical Instruments: Sales by Region (Projections)
Musical Instruments: Sales by Region (Projections) (Billions of yen) [+1%] Figures in parentheses show actual 123.5 (+4%) year-on-year changes, discounting the impact of exchange rates 118.5 Figures in brackets show actual changes from the year before last (FY2011.3), discounting the impact of excha
Slide 20: Musical Instruments: Sales by Product Category (Projections)
Musical Instruments: Sales by Product Category (Projections) Pianos Electone (Billions of yen) Figures in parentheses show 40.3 40.8 (+3%) actual year-on-year changes, discounting the impact of exchange rates 2H 19.5 20.7 (+7%) 4.1 4.6 (+13%) 2.1 (-9%) 2.3 1H 20.8 20.1 (±0%) 2.5 (+40%) 1.8 FY2012.3
Slide 21: Emerging Market Sales
Emerging Market Sales (Billions of yen) Eastern Europe Russia Pianos 8% ピアノ (+0%) (+5%) (+30%) Digital musical (+15%) 24% 電子楽器 instruments 4.2 4.2 4.4 2.4 2.9 3.3 Wind instruments 2H 48% 管楽器 2.1 1.9 2.2 1.9 String & percussion 1.4 1.7 14% 弦打楽器 instruments 1H 2.1 2.3 2.2 1.0 1.2 1.4 6% PAPA equi
Slide 22: AV/IT: Projections
AV/IT: Projections ■Market Environment ■Priority Measures •Fiercer competition from mass merchandisers and •Build AV product business by launching products Web-based sales networks. targeted at demand trends. - Expand sales of front surround systems in •Continuing growth in emerging markets. oversea
Slide 23: Electronic Devices: Projections
Electronic Devices: Projections ■Market Environment ■Priority Measures •Amusement market is stalled. •Proactively propose solutions for amusement •Further shift from conventional mobile phones equipment manufacturers. to smart phones. •Strengthen competitiveness by enhancing •Fiercer competition amo
Slide 24: Others: Projections
Others: Projections ■Market Environment ■Priority Measures •Although automakers are increasing production as •Steadily respond to rising demand for automobile they recover from the effects of the earthquake, interior wood components as automakers increase trends for luxury vehicles are uncertain. pr
Slide 25: Capital Expenditure/Depreciation/R&D Expenses
Capital Expenditure/Depreciation/R&D Expenses Capital Expenditure (Depreciation) (Billions of yen) 15.2 Others 14.5 Electronic 0.8 (14.1) 11.3 (12.0) 1.2 devices 0.7 10.4 (12.8) 1.1 (12.7) 1.3 AV/IT 0.5 1.3 3.2 0.9 1.0 1.10.7 Musical instruments 11.7 8.3 9.8 8.0 FY2010.3 FY2011.3 FY2012.3 FY2013.3 (
Slide 26: Inventories
Inventories Total inventories as of March 31, 2012 were ¥5.5 billion higher than at the end of the previous fiscal year (allowing for the impact of exchange rates, actual inventories were ¥6.9 billion higher than the previous year) (Billions of yen) 77.1 69.5 71.7 71.5 25.5 Goods in 21.3 24.3 25.0
Slide 27: Balance Sheet Summary
Balance Sheet Summary (Billions of yen) As of March 31, As of March 31, As of March 31, As of March 31, 2010 2011 2012 2013 (projections) Cash and deposits 59.4 58.7 56.6 59.2 Notes and accounts receivable 47.4 45.1 44.5 47.2 Inventories 69.5 71.7 77.1 71.5 Other current assets 17.0 19.2 10.8 11.6 F
Slide 28: Return to Shareholders
Return to Shareholders An annual dividend of ¥10 is planned for FY2013.3 (consolidated payout ratio of 21.5%) 50 38.6 Consolidated payout ratio (%) 42.5 26.1 21.1 16.6 21.5 14.7 7.1 27.5 22.5 Per-share 20 20 dividend (yen) 15 Special 10 10 10 dividend Regular dividend FY2004.3 FY2005.3 FY2006.3 FY2
Slide 29: Priorities for Final Year of YMP125
Priorities for Final Year of YMP125 ■Accelerate Growth in China and Other Emerging Markets Steadily implement new measures relating to products, distribution networks, stores and music school expansion in the aim of achieving sales totalling ¥100 billion in these markets by FY2015.3 ■Proceed with t
Slide 30: Appendix
Appendix
Slide 31: Performance in the Fourth Quarter of FY2012.3
Performance in the Fourth Quarter of FY2012.3 Fourth quarter sales declined year-on-year, but were higher than previous projections (Billions of yen) Increase/ FY2011.3 FY2012.3 Increase/ Previous decrease 4Q results projections for 4Q results decrease 4Q against projections Net sales 88.4 86.0 -2.
Slide 32: Performance by Business Segment in the Fourth Quarter of FY2012.3
Performance by Business Segment in the Fourth Quarter of FY2012.3 Net Sales Operating Income (Billions of yen) (Billions of yen) 88.4 (-2.８%) 86.0 (+3.1%) 83.4 Others 5.6 (-9.3) (+3.2) Electronic 5.0 4.9 5.1 (-16.3) 4.3 (-6.6) 4.6 devices 12.5 (-11.7) 11.1 (+6.0) 10.4 AV/IT -3.2 -2.9 -3.5 Musical in
Slide 33: Full Year Non-Operating Income/Loss & Extraordinary Income/Loss
Full Year Non-Operating Income/Loss & Extraordinary Income/Loss FY2011.3 results FY2012.3 results FY2013.3 projections (Billions of yen) Non-operating income/loss Net financial income 0.7 1.3 0.7 Other -2.9 -2.1 -2.2 Total -2.2 -0.8 -1.5 •Revaluation loss on Extraordinary income/loss investment secu
Slide 34: Musical Instruments: Sales and Income by Quarter
Musical Instruments: Sales and Income by Quarter Net sales: ¥271.1 billion Net sales: ¥265.1 billion Net sales: ¥280.0 billion Operating income: ¥8.6 billion Operating income: ¥7.7 billion Operating income: ¥13.0 billion (Billions of yen) 76.0 68.4 70.8 69.5 66.6 65.3 66.6 65.7 67.1 65.6 67.5 67.0 O
Slide 35: AV/IT: Sales and Income by Quarter
AV/IT: Sales and Income by Quarter Net sales: ¥57.0 billion Net sales: ¥53.2 billion Net sales: ¥55.0 billion Operating income: ¥2.5 billion Operating income: ¥2.9 billion Operating income: ¥3.0 billion (Billions of yen) 19.1 18.0 17.1 12.0 13.4 12.5 12.4 12.7 12.0 13.0 12.0 11.1 Operating 2.3 incom
Slide 36: Electronic Devices: Sales and Income by Quarter
Electronic Devices: Sales and Income by Quarter Net sales: ¥20.6 billion Net sales: ¥16.2 billion Net sales: ¥17.0 billion Operating income: ¥0.5 billion Operating income: -¥2.9 billion Operating income: -¥2.0 billion (Billions of yen) 5.1 5.1 5.2 5.1 5.0 4.4 4.3 4.0 4.5 3.8 3.8 3.5 Operating income
Slide 37: Others: Sales and Income by Quarter
Others: Sales and Income by Quarter Net sales: ¥25.1 billion Net sales: ¥22.1 billion Net sales: ¥26.0 billion Operating income: ¥1.5 billion Operating income: ¥0.4 billion Operating income: ¥0.5 billion (Billions of yen) 7.1 6.5 7.0 5.9 5.9 6.0 6.0 6.5 6.5 5.6 1.5 5.1 5.0 1.6 1.6 1.1 1.3 1.3 1.2 0.
Slide 38: Forward-looking 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 pre