Analyst and Investor Briefing on the First Half of the Fiscal Year...Analyst and Investor Briefing...

Analyst and Investor Briefing on the First Half of the Fiscal Year

Ending March 31, 2006(April 1, 2005 to September 30, 2005)

November 1, 2005YAMAHA CORPORATION

First Half ResultsNet sales and operating income were lower than both the previous year and initial projections on April 28.

Net sales declined ¥11.4 billion compared to the first half of last year. Electronic equipment and metal products decreased ¥10.1 billion.

Net sales were ¥4.3 billion lower than initial projections. Lifestyle-related products reported net sales was ¥1.6 billion higher than projected, while musical instruments and AV/IT were ¥3.2 billion and ¥2.5 billion lower, respectively.

Operating income decreased ¥9.8 billion from the first half of the previous year. Lifestyle-related products increased ¥1.1 billion, while electronic equipment and metal products dropped ¥8.1 billion.

Operating income was ¥0.6 billion lower than initial projections, with lifestyle-related products exceeding forecasts by ¥1.0 billion and musical instruments falling short by ¥1.9 billion.

Net income came in higher than initial projections owing to increased equity method income.

Inventories at the end of the first half increased ¥1.3 billion over the first half of the previous year, primarily for musical instruments and AV products (increase of ¥9.7 billion over initial projections).

2Q Results2Q net sales and operating income declined compared to the second quarter of the previous year.

Net sales decreased ¥2.6 billion from the second quarter of a year ago as electronic equipment and metal products fell ¥2.7 billion.

Operating income declined ¥1.7 billion from the second quarter of a year ago. Lifestyle-related products increased ¥0.7 billion, but electronic equipment and metal products decreased ¥3.0 billion.

Inventory adjustments were made by cutting production, etc., but this has not led to reduced inventories because of substantial sales declines in the musical instruments and AV/IT businesses.

Overview of Performance in the Overview of Performance in the First HalfFirst Half

Net sales and operating income declined from the first half of the previous year and were lower than initial projections.

FY Mar 06(1H)

257.214.4

(5.6%)21.3

(8.3%)16.5

(6.4%)

(Billions of yen)

Business Performance in First Half FY Business Performance in First Half FY March 2006March 2006

Currency Exchange Rate

US$EURUS$EUR

105134105134

Net Income(Net Income Ratio)

Recurring Profit(Recurring Profit Ratio)

Operating Income(Operating Income Ratio)

Net Sales

Change from FY Mar 05

(1H)

FY Mar 06 (1H)

ProjectionsChange

from Projections

2QResults

(4.2%)

( 40.6%)

( 24.6%)

261.5

15.0

18.0

12.0

(1.6%)

(4.0%)

+18.3%

133.1

7.5

9.7

6.7

Net Sales

Operating Income

FY Mar 05(1H)

268.6

24.2

28.3

(6.1)

110136110134

110133110132

Equity Method Income 5.6 8.5 5.6 3.2

-- +37.5%

9.9 10.0

2.4 1.0

8.1

0.7

4.55.1

13.2

1.0 0

-1.3 -0.5-0.6

151.2 150.8

36.8 35.5 38.0

154.0

28.028.338.422.6 21.021.2

21.0 20.0 20.5

Net Sales Operating Income

Performance by Business Segment in Performance by Business Segment in First Half FY March 2006First Half FY March 2006

Musical Instruments

AV/IT

Lifestyle-Related

ProductsElectronic

Equipment and Metal Products

Recreation & Others

(+6.6)

(-3.5)

(-0.3)

(-4.8)

(-26.3)

(-4.2%)268.6

257.2 261.5

Figures in parentheses

represent change from the same period of the

previous year or initial projections

14.4

Year-on-year after translation adjustments: up ¥0.7 billion (musical instruments up ¥0.6 billion, AV/IT up ¥0.1 billion)Verses initial projections after translation adjustments: up ¥0.1 billion (musical instruments up ¥0.7 billion, AV/IT down ¥0.5 billion, electronic equipment and metal products down ¥0.1 billion)

FY Mar 05(1H)

FY Mar 06(1H)

FY Mar 06(1H)

(Initial Projections)

FY Mar 05(1H)

FY Mar 06(1H)

Musical Instruments

AV/IT

Lifestyle-Related Products

Electronic Equipment and Metal Products

Recreation & Other

15.0

Year-on-year after translation adjustments: up ¥1.5 billion (musical instruments up ¥1.2 billion, AV/IT up ¥0.3 billion)Verses initial projections after translation adjustments: up ¥3.3 billion (musical instruments up ¥2.5 billion, AV/IT up ¥0.8 billion)

FY Mar 06(1H)


24.2

(+7.6)

(-6.6)

(-2.1)

( -2.4)

(+1.1)

(-1.6%)


-0.１

(Billions of yen)

Forecast for Business Performance in FY Forecast for Business Performance in FY March 2006 (Full Year)March 2006 (Full Year)

25.8-6.1

+0.5%13.028.3

-9.0%11.524.2

+0.4%265.5268.6

Change fromPrevious

Fiscal Year

FY Mar 06 ProjectionsFY Mar 05 Actual

19.7(3.7%)

41.3(7.7%)

35.7(6.7%)

534.1

12.516.5

20.221.3

18.114.4

279.3257.2

29.0(5.4%)

41.5(7.7%)

32.5(6.1%)

536.5

2H1H Total 2H1H Total

Currency Exchange Rate

US$EURUS$EUR

110133110132

105137106134

108135108133

Net Sales

Operating

Income

110136110134

105134105134

107135108134

5.6 3.5 9.1 8.5 5.2 13.7

+47.2%

(42.5)

(37.0)

(546.0)


(29.0)

105134105134

Downward revision of full year net sales and operating income

Net Income(Net Income Ratio)

Recurring Profit(Recurring Profit Ratio)

Operating Income(Operating Income Ratio)

Net Sales

Equity Method Income

(Billions of yen)

Net Sales Operating Income

14.2 18.5 21.5

3.74.0

5.020.0 9.0

10.0

00

1.0

0.5

-2.1

35.7

302.6 310.0

77.7 83.5 89.0

313.0

69.0 57.5 58.542.8 41.543.0

44.042.541.9

Forecast for Performance by Segment in FY Forecast for Performance by Segment in FY March 2006 (Full Year)March 2006 (Full Year)

Musical Instruments

ＡV/IT



Recreation & Others

(+0.5)

(+7.5)

(+2.4)

(+1.4)

(-16.7)

(+0.4%)534.1 536.5 546.0

Figures in parentheses

represent year-on-year change

32.5

FY Mar 05 FY Mar 06(New Projections)

FY Mar 06(Initial Projections)

Musical Instruments

AV/IT

Lifestyle-Related ProductsElectronic Equipment and Metal Products

Recreation & Others

Recreation & Others

37.0

(+3.6)

(-6.2)

(-1.0)

(-3.4)

(-1.7)

(-1.7%)

FY Mar 05 FY Mar 06(New Projections)


0

(Billions of yen)

Year-on-year after translation adjustments: up ¥0.8 billion (musical instruments up ¥0.5 billion, AV/IT up ¥0.3 billion)Verses initial projections after translation adjustments: up ¥0.2 billion (musical instruments up ¥0.8 billion, AV/IT down ¥0.5 billion, electronic equipment and metal products down ¥0.1 billion)

Year-on-year after translation adjustments: up ¥0.5 billion (musical instruments up ¥0.6 billion, AV/IT down ¥0.1 billion)Verses initial projections after translation adjustments: up ¥3.6 billion (musical instruments up ¥2.7 billion, AV/IT up ¥0.9 billion)

211.4 216.8 221.9

90.2 91.2 93.2 91.1

203.2

FY Mar04

FY Mar05

FY Mar06

FY Mar06

10.5 14.2 21.518.5104.9 106.1 109.4

44.2 45.1 46.2 44.6

104.6

FY Mar04

FY Mar05

FY Mar06

FY Mar06

Musical InstrumentsMusical Instruments

Operating Income

1H Overview1H Overview

Net Sales

•Projections for full year performance revised downward: Plan net sales at ¥310.0 billion and operating income at ¥18.5 billion. •Steadily introduce new products to the market timed with the year-end sales rush in Europe and the U.S.•Highly functional keyboard Tyros2 and digital mixer M7CL•Further expand CA business centering on Europe and the U.S.•March shipments planned for STAGEA™ entry model•Optimize inventory levels•Speed up manufacturing structure reforms •Promote policies for the Chinese market

Full Year Overview and Full Year Overview and 2H Priorities2H Priorities

9.7 9.9 8.1 10.0

Initial Projections

Initial Projections

Other

YAMAHA Musical Instruments

293.4 302.6 310.0

149.1

•Lower sales and income than year-ago 1H and initial projections•Real sales after translation adjustment decreased 1.1% year-on-year. The major factor was substantially lower Electone™ sales (¥8.9 bn to ¥4.9 bn) as demand ran its course.•Real sales fell 3.7% against initial projections. Electone™ sales in Japan and electronic musical instrument sales in Europe and the U.S. fell short of projections. •South Korea remained strong while Central and South America were steady. •Operating income was down year-on-year and lower than projections due in part to lower gross profit caused by changes in the makeup of sales and higher distribution costs. •Inventories at end-1H were higher than year-ago 1H and initial projections due to not achieving the sales plan. •Continued high inventory level especially in the U.S. 313.0

151.2 150.8 154.0

New Projections

(Billions of yen)(Billions of yen)

Chinese Market

• Yamaha music schoolsNovember grand opening – 100 sites and 20,000 pupils by 2010

• Continue developing piano sales networkPlan to prepare 60 sites by term-end

• Move forward on increasing production at Hangzhou YamahaTargeting production of 8,000 pianos and 45,000 guitars in fiscal year to March 2006

Central and Eastern European Markets

• Representative office established in Moscow in September• Develop system for direct sales in expanded EU market (Czech Republic, Slovakia, Hungary, Slovenia)

Toward MediumToward Medium--Term Growth and Improved Term Growth and Improved ProfitabilityProfitability1. Laying Groundwork for Growth Markets

2. Strengthening CA Business

• Business alliance with France’s NEXO in June Intend to develop system solutions and launch full-fledged commercial speaker business

• Established European Support Center in April

3. Stimulating the Domestic Market

4. Reducing Costs, Increasing Productivity

100

510 489 471419 417 422

9491888584

2000 2001 2002 2003 2004 2005

Children

Adults

Music School Enrollment

• Increase enrollment at music schools

Children increased year-on-year for the first time in 15 years. Adults topped 100 thousand. Estimating 80 “Core 100” urban schools for adults by March 31, 2006; medium-term target of 100 sites.

Estimating 60 “UniStyle” suburban-type concept schools; medium-term target of 200 sites.

• Effects of promoting measures to increase productivity gradually materializing.

Develop TPS activities, shorten production lead times (piano three months, other instruments two months)Start considering production site consolidation and restructuringTrain core personnel (pass on skills)Improve business processes (implement SAP/R3), start inventory reduction project

(Enrollment as of June 30; Thousands)

Toward MediumToward Medium--Term Growth and Improved Term Growth and Improved ProfitabilityProfitability

AV/ITAV/IT

•Lower sales and income than year-ago 1H and initial projections•Real sales after translation adjustment decreased 4.3% year-on-year. Home theater sales decreased primarily in Japanese, Chinese and Asian markets.•Operating income was lower than initial projections due to lower sales and translation losses caused by a weak yen. •Solid shipments of YSP speakers, a product for which expectations are high (23,000 units shipped in first half)•Router sales were lower than year-ago 1H and initial projections due to heightened competition.

•Full year sales projections revised downward by ¥5.5 billion to ¥83.5 billion. Operating income also revised downward to ¥4.0 billion.•Expect shipments to exceed 100,000 units on a full year basis for “YSP” 2 models, which was launched in September. •Initiatives to shorten shipment schedules for AV products (from 90 days this term to 56 days next term)•Revitalize router business by enhancing lineup and strengthening solution proposals•Develop sales network in Asian markets, including China

71.9 70.6 75.6 80.3

6.4 7.18.77.9

FY Mar04

FY Mar05

FY Mar06

FY Mar06

4.4 3.7 4.0 5.0

31.2 33.3 32.4 34.0

2.8 3.5 3.1 4.0

FY Mar04

FY Mar05

FY Mar06

FY Mar06

Operating Income

Net Sales

1.4 2.40.7 1.0

Initial Projections Initial Projections

Routers

AV

78.3 77.7 83.534.0

36.8 35.5 38.0 89.0

New Projections

1H Overview1H OverviewFull Year OverviewFull Year Overviewand 2H Prioritiesand 2H Priorities

(Billions of yen)(Billions of yen)

29.8 31.422.4 21.9

6.6 7.0

5.9 6.1

FY Mar04

FY Mar05

FY Mar06

FY Mar06

64.0 56.745.2 45.8

12.912.3

12.712.3

FY Mar04

FY Mar05

FY Mar06

FY Mar06

14.2 13.25.1 4.5

Electronic Equipment and Electronic Equipment and Metal ProductsMetal Products

•Year-on-year decline in sales and income due to lower demand for LSI sound chips for mobile phones and falling unit prices. But both sales and income higher than initial projections.•Solid shipment levels of new LSI sound products for mobile phones launched in June•Decrease in shipments of sound LSI chips for Chinese mobile phone manufacturers•Starting to see recovery in electronic metals since summer

•Downward revision of full year results projections•Secure market share by increasing sales of new LSI sound products for mobile phones•Increase sales of existing LSI chips for applications other than mobile phones like chips for pachinko•Develop and market new devices•Continue investment in 0.18μprocesses at semiconductor plants. Results expected starting in 2007. •For electronic metal materials, continue efforts to reduce costs and ramp up production for copper connectors

Operating Income

Net Sales

Initial Projections

Initial Projections

30.020.0

9.0 10.0

76.969.0

57.536.4 38.4

28.3Electronic Metals

Semiconductors

28.0 58.5

New Projections

1H Overview1H Overview Full Year Overview and 2H Full Year Overview and 2H PrioritiesPriorities

(Billions of yen) (Billions of yen)

20.9 20.1 19.6 19.6

17.2 16.5 18.0 16.0

6.7 6.2 5.4 5.9

FY Mar04

FY Mar05

FY Mar06

FY Mar06

0 01.01.5

11.2 10.7 10.0 10.3

8.6 7.4 9.6 7.7

3.4 3.1 3.03.0

FY Mar04

FY Mar05

FY Mar06

FY Mar06

1.1 1.00 -1

LifestyleLifestyle--Related ProductsRelated Products

•Higher sales and income than year-ago 1H and initial projections.•Considerable year-on-year sales growth due to recovery in market share for system kitchens•Posted ¥1.0 billion in operating income due to higher sales, decreased personnel costs and other fixed expenditures, and effects of rationalization measures. •Solid sales to Air Water Emoto

•2H net sales and operating income right at initial projections•Steadily market new products including the “double-heating” system bathroom launched in October. •Strengthen remodeling business by enhancing showrooms, etc.- Reduce costs by further promoting manufacturing reforms

Operating Income

Net Sales

Initial Projections

Installation, etc.

Kitchens

Bathrooms

23.2 21.2 22.644.8 42.8 43.0

21.0 41.5

New Projections

Initial Projections

1H Overview1H OverviewFull Year Overview and 2H Full Year Overview and 2H

PrioritiesPriorities


RecreationRecreation

•Lodging was generally solid owing in part to more rooms at Haimurubushi™, but sales overall were lower than both year-ago 1H levels and initial projections due to fewer day trips and weddings.

•Operating income improved substantially year-on-year thanks to lower depreciation and streamlining administrative costs, but the loss was larger than initial projections.

•Downward revision of full year results projections.•Aim to improve income by developing measures to attract lodging and day-trip guests for each facility and by further improving operating efficiency.

10.3 9.4 8.9 9.5

Operating Income

Net Sales

-0.5-1.2-0.5 -0.7

Initial Projections

Initial Projections

FY Mar 04 FY Mar 05 FY Mar 06 FY Mar 06

20.1 18.3 18.5 20.0

-1.0 -0.5-2.3-1.1

FY Mar 04 FY Mar 05 FY Mar 06 FY Mar 06New

Projections




5.2 4.9 4.9 5.3

1.2 1.2 1.2 1.0

6.95.5 5.0 4.7

FY Mar04

FY Mar05

FY Mar06

FY Mar06

0.5 0.1 0-0.1

OthersOthers

•Lower sales than year-ago 1H for the segment overall, but higher than initial projections.

•Sales of automobile interior wood components and golf clubs maintained the same level as the previous year, but sales of metallic molds and components decreased.

•Operating income returned to the black thanks to lower manufacturing costs for automobile interior wood components and factory automations, etc.

•Full year forecast has not changed from initial projections.

•For automobile interior wood components, continue to reduce manufacturing costs and establish optimal production methods

•Develop new customers for magnesium molds and components in sectors such as mobile phones and digital cameras, and secure production capacity by increasing production.

2.2 2.1 2.8 2.7

13.0 11.3 10.6 10.1

10.610.210.9 11.2

FY Mar04

FY Mar05

FY Mar06

FY Mar06

1.00.2-0.2

1.0Operating Income

Net Sales

Initial Projections Initial

Projections

Other Businesses of YFT

Golf clubs

Automobile Interior Wood Components

24.023.626.1 24.011.111.6

13.311.0

New Projections




2H Priority Products 2H Priority Products -- 11

Tyros2Shipments commenced in October primarily to Europe (November for North America)。The Tyros2 is the successor to Tyros™, which sold 25,000 units after put on the market in September 2002. New MEGA VOICE added to previous model, which was particularly well-received by semiprofessionals in Europe. Tones increased from 10 to 19 and more realistic tones like guitar strings added. In terms of function, storage capacity andplay capacity were raised thanks to the hard drive-based recorder/player. Plans call for sales in Europe of 6,000 units. Current Market Price: 3,599 euro

Digital Mixer M7CLTargets analog mixer customers in the mid-size sound recording market (small concert venues, etc.) due to easy operation enabled by Centralogic and more compact size. Made a major impact on markets immediately after launch in October. Expect sales of 1,350 units in the second half.

M7CL-48: Current Market Price (with tax): ¥2.9 millionM7CL-32: Current Market Price (with tax): ¥2.4 million

2H Priority Products 2H Priority Products -- 22Digital Sound Producers YSP800

and YSP100032-inch compatible YSP800 and 42-inch compatible YSP1000, the successor to the YSP1, both launched on market in September. Plan to ship approximately 90,000 units domestically and to overseas.

YSP800: Current Market Price $799YSP1000: Current Market Price $1499

“Double-Heating” System BathroomNew type of system bathroom that heats both the bathtub and the bathroom and helps maintain the heat of the water in the bathtub over a long period. Launched in October

AudioEngine (MA-7)

AudioEngine™, a 128 note LSI chip for mobile phones, is comprised of a proprietary hybrid synthesizer, high quality sound processor, low power class-D amp, etc. It provides high sound quality and functionality for all sound generated by mobile phones, including ring tone melodies.

42.1

30.627.0

48.246.3

11.912.5 13.8

28.7

FY Mar 05 FY Mar 06 FY Mar 06

36.3

27.325.4

36.741.0

7.710.1

8.0

25.2

FY Mar 05 FY Mar 06 FY Mar 06

InventoriesInventories

89.4 90.7Goods in Process/Materials

ＡＶ/ＩＴ

Musical Instruments

81.0


78.469.9 69.4

Inventories at the end of the first half were higher than the previous year and initial projections. We will work to reduce inventories ahead of the term-end.

1H-End


Term-End

(New Projections)

(Billions of yen)

Appendix

FY Mar 05 (1H)

Extraordinary Income (Loss)

1.40.41.8

Equity method incomeNet financial income (loss)OtherTotal

Income from (loss on) disposal of fixed assetsImpairment lossOtherTotal

Corporate income tax, etc.Minority interests in consolidated subsidiariesTotal

FY Mar 06 (1H)

8.50

(1.6)+ 6.9

0.5

0.3

+ 0.8

5.30.35.6

FY Mar 06 (1H)(Initial Projections)

(0.1)

(0.4)

(0.5)

5.30.25.5

Non-Operating Income/Loss & Extraordinary Income/Loss for First Half FY March 2006

Non-Operating Income (Loss)

Corporate Income Tax and Other Expenses

5.60.1

(1.6)+ 4.1

5.6(0.2)(2.4)+ 3.0

(0.4)(32.5)

0.3

(32.6)

(Billions of yen)

FY Mar 05

9.1(0.3)(3.2)+ 5.6

Extraordinary Income (Loss)

(1.1)(6.7)

(7.8)

13.40.4

13.8

Equity method incomeNet financial income (loss)OtherTotal

Income from (loss on) disposal of fixed assetsOther

Total

Corporate income tax, etc.Minority interests in consolidated subsidiaries, etc.Total

FY Mar 06New Projections

13.7(0.6)(4.1)+ 9.0

00

0

12.10.4

12.5

FY Mar 06Initial Projections

11.0(0.6)(4.9)+5.5

(0.4)(0.6)

(1.0)

12.10.4

12.5

Full Year Non-Operating Income/Loss, Extraordinary Income/Loss for FY March 2006

•Gain on return of substitutional portion: 19.9•Gain on asset disposal : 6.5•Impairment loss: -32.7

Non-Operating Income (Loss)

Corporate Income Tax and Other Expenses

(Billions of yen)

5.7 5.7 5.3

2.5 2.5 2.62.0 2.2 2.5

1.1 1.31.1

11.2 11.4 10.7

5.1 5.2 5.0

4.5 4.2 4.9

2.2 2.42.2

5.2 5.3 6.40.6 0.6 1.03.0 2.2

4.71.7

2.42.3

11.3 12.3 11.9

1.1 1.4 1.75.0

5.8 5.6

4.5 4.85.3

Capital Expenditure/Depreciation/R&D ExpensesCapital Expenditure/Depreciation/R&D Expenses

11.1(9.5)

22.7

(19.0)

24.0

(19.9)

24.0

(19.5)

Capital Expenditure/Depreciation

11.3 11.7

R&D Expenditures

AV/IT


Others


Musical Instruments

AV/IT


Others

Musical Instruments

FY Mar 05

9.8 (9.2)

11.5

14.5

(9.7)

FY Mar 06(New

Projections)

23.0 23.023.0

1H Full Year

(Billions of yen)

FY Mar 06 FY Mar 06(Initial

Projections)FY Mar 05

FY Mar 05 FY Mar 06(New

Projections)FY Mar 06 FY Mar 06


FY Mar 05FY Mar 06(Initial Projections)

As of Mar. 31, 04

Long-and short-term borrowings, less cash and deposits

InterestInterest--Bearing Liabilities (Actual Balance)Bearing Liabilities (Actual Balance)

＊Not included in above

29.6 28.9

- 2.4

Free Cash Flows

30.8

FY Mar 051H

28.0

29.1

Interest-Bearing Liabilities

Balance of resort security deposits

- 18.0

FY Mar 062H

(New Projections)

27.2

25.1

16.823.1

-4.6

15.5

- 6.7

As of Mar. 31, 06

(New Projections)

FY Mar 05 2H

(Billions of yen)

FY Mar 061H

As of Sept. 30, 04

As of Mar. 31, 05

As of Sept. 30, 05

Cash and Bank DepositsAccounts and Notes ReceivableInventoriesOther Current AssetsFixed AssetsTotal AssetsAccounts and Notes PayableShort- and Long-Term BorrowingsOther LiabilitiesShareholders’EquityTotal Liabilities and Shareholders’ Equity

As of March 31, 2004

32.178.772.118.8

307.0508.7

39.948.9

160.2259.7508.7


51.271.678.424.4

280.0505.6

37.746.6

146.1275.2505.6

As of Sept. 30, 2004

42.585.889.424.8

282.2524.7

47.165.7

158.3253.6524.7

As of Sept. 30, 2005

31.381.490.724.6

293.8521.8

41.846.8

134.7298.5521.8


33.072.069.922.3

301.5498.7

38.626.3

129.8304.0498.7

Balance Sheet SummaryBalance Sheet Summary

(¥100 million)

*Other liabilities includes minority interests in consolidated subsidiaries

0

500

1000

1500

FY Mar02

FY Mar03

FY Mar04

FY Mar05

FY Mar06

FY Mar02

FY Mar03

FY Mar04

FY Mar05

FY Mar06

YAMAHA Musical Instrument Sales in the Japanese Market

(¥100 million)

Figures in parentheses are year-on-year comparisons

(Projection)

First Half Full Year

752 731 705(97%) (96%)

310 304 296(98%) (97%)

1,4281,394 1,344(98%) (96%)

592 559 569(94%) (110%)

Yamaha musical instruments

Music schools, etc.

Sales in the first half were 95% of the same period the previous year as shipments of the Electone™ STAGEA™ ran their course. Other products were about the same as the previous year. Enrollment in music schools increased for the first time in 15 years and this should produce an impact going forward.

702(95%)

282(88%)

1,367(98%)

547(96%)

737(105%)

1,402(104%)

322(109%)

517(92%)

YAMAHA Musical Instrument Sales in the U.S. YAMAHA Musical Instrument Sales in the U.S. MarketMarket

0

100

200

300

400

500

600

FY Mar02

FY Mar03

FY Mar04

FY Mar05

FY Mar06

FY Mar02

FY Mar03

FY Mar04

FY Mar05

FY Mar06

219

First Half Full Year (Projection)

Piano sales in the first half recovered to 110% of the same period the previous year. Professional audio equipment, especially digital mixers, performed well, with sales coming in at 120% of the same period the previous year. Portable keyboards encountered tough conditions due to heightened competition. Guitars also fell considerably short of expectations. Expectations are high for year-end sales of NEXO speakers and the new digital mixer M7CL.

241 241 249(110%) (100%) (103%)

Wholesale Amount(Millions of U.S. Dollars)

(107%)(106%)

(103%)

470501

532551

257(103%)

(106%)585


YAMAHA Musical Instrument Sales in the German YAMAHA Musical Instrument Sales in the German MarketMarket

0

50

100

150

200

250

FY Mar02

FY Mar03

FY Mar04

FY Mar05

FY Mar06

FY Mar02

FY Mar03

FY Mar04

FY Mar05

FY Mar06

92

First Half Full Year(Projection)

Retail conditions overall were slow. Sales of products other than pianos stagnated. Large drop-off in portable keyboards. Launched Tyros2, an electronic instrument for which expectations are high, for the year-end sales rush. Its sound quality has earned praise.

95 94 87(103%) (99%) (92%)

Wholesale Amount(Millions of Euro)

(102%) (97%)(106%)190

194 188 200

85(98%)

(95%)189


YAMAHA Musical Instrument Sales in the U.K. YAMAHA Musical Instrument Sales in the U.K. MarketMarket

0

20

40

60

80

FY Mar

02

FY Mar

03

FY Mar

04

FY Mar

05

FY Mar

06

FY Mar

02

FY Mar

03

FY Mar

04

FY Mar

05

FY Mar

06

26


Musical instruments faced difficult market conditions, as pianos, electronic instruments, and wind instruments fell short of the levels posted in the first half last year. Professional audio equipment performed well though, with sales amounting to 110% of the previous year. A recovery is expected at the year-end with a large volume of orders for the new mixer M7CL.

28 28 30(107%) (100%) (107%)

Wholesale Amount(Millions of Pounds)

(102%) (103%) (101%)62

63 65 66

27(90%)

(98%)65


YAMAHA Musical Instrument Sales in the Chinese YAMAHA Musical Instrument Sales in the Chinese MarketMarket

Although shipments of pianos increased owing to ramped up production of Hangzhou-made pianos, inventory made and distributed by Chinese manufactures increased and unit prices fell. In the area of professional audio equipment, products were exhibited at a broadcast equipment exhibition at the end of August in Beijing, which contributed to a strong performance from digital mixers. Music schools will open in Shanghai in November.

0

200

400

600

800

FY Mar

03

FY Mar

04

FY Mar

05

FY Mar

06

FY Mar

03

FY Mar

04

FY Mar

05

FY Mar

06

259


242285

(93%)(118%)

Wholesale Amount(Millions of Chinese Yuan)

(89%)

(118%)514 456

540

314(110%)

(114%)617


N. America Europe

Japan OtherN. America

Europe

Japan

Other

Scale of Home Theater Market (Home theater systems, amplifiers and receivers)

629

966

1,2141,264

Volume(Ten Thousand Units)

305 297

02 03 04 05

AV Amplifiers and Receivers•N. America: Forecast approx. 10% decrease on a volume basis•Europe: Market contracting•Japan: Declining market share recovered in April-June period (31%)•Asia, China: Market expanding, package sales increasing.

325351

Home Theater Systems•N. America: Rapid decline in growth rates for both HTiB and home theater systems with DVD •Europe: Shrinking more than the last year’s forecasts in Germany, a principal market•Japan: Progress in flat-panel compatibility as popularity of flat-panel televisions grows•Other: Chinese-made products are growing substantially in Asia and Central and Eastern Europe

02 03 04 06(Projection)

1,327

284

06 05(Projection)(Projection) (Projection)

0%

10%

20%

30%

40%

0%

10%

20%

30%

40%

0%

10%

20%

AV Amplifiers: Share of Total Sales Amount (GfKJ)

Home Theater Systems:Share of Total Sales Amount (GfKJ)

14％11％ 10％ 23％

35％39％

33％

U.S.

0%

5%

10%

Home Theater Systems:Share of Total Sales Amount (INTELECT)

AV Receivers: Share of Total Sales Amount (INTELECT)

7％5％

6％

Japan

14％

8％25％ 24％

27％34％

’01 ’02 ’03 ’05(Jan.-Aug.)

AV Market Share

13％

’04

8％

31％

34％

’01 ’02 ’03 ’05(Jan.-Aug.)’04

’01 ’02 ’03 ’05(Jan.-Aug.)’04’01 ’02 ’03 ’05(Jan.-Aug.)’04

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 predictions depending on changes in our operating and economic conditions, demand trends, and the value of key currencies, such as the U.S. dollar and EURO.

Date post:	06-Oct-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

Analyst and Investor Briefing on the First Half of the Fiscal Year...Analyst and Investor Briefing...

Documents