For Immediate Release April 30, 2015 Company Name: YAHAMA CORPORATION President and Representative Director: Takuya Nakata Code Number: 7951 (First Section of Tokyo Stock Exchange) Outline of the Consolidated Financial Results for the Fiscal Year Ended March 31, 2015 (FY2015.3) and Outlook for Performance in FY2016.3 Consolidated Performance in FY2015.3 Year-on-Year Increases in Net Sales and Income Consolidated net sales for FY2015.3 increased ¥21.9 billion, or 5.3%, over the previous fiscal year, to ¥432.2 billion. By business segment, sales of all segments, except for electronic devices, increased. Accompanying the increase in sales, operating income for FY2015.3 rose ¥4.1 billion, or 15.9%, to ¥30.1 billion. Ordinary income increased ¥5.1 billion, or 19.4%, to ¥31.2 billion, and net income rose ¥2.0 billion, or 8.9%, to ¥24.9 billion. Therefore, gains were recorded in all indicators of income. Note that the expenses incurred in connection with the transfer of the business of a semiconductor manufacturing subsidiary, which was announced on March 27, 2015, are recorded as an extraordinary loss, amounting to ¥1.6 billion. Sales and Operating Income/Loss by Business Segment Musical Instruments Sales of ¥281.7 billion (+7.4%) and Operating Income of ¥25.1 billion (+27.0%) Sales of pianos in Japan were sluggish, in part because of the impact of the increase in the consumption tax, but sales in North America and China expanded, resulting in firm sales overall. Among digital musical instruments, sales of digital pianos rose in all geographical areas, and ElectoneTM sales grew in Japan, accompanying the first new product launch in 10 years. Sales of guitars in all regions and sales of wind instruments, mainly in North America, expanded. However, as a result of a decline in the number of students enrolled at music schools, sales in this business decreased. Sales in this segment as a whole rose ¥19.4 billion, or 7.4%, to ¥281.7 billion. Operating income increased ¥5.3 billion, or 27.0%, to ¥25.1 billion. 1 Audio Equipment Sales of ¥112.8 billion (+7.0%) and Operating Income of ¥6.1 billion (+4.6%) In audio products, although signs of recovery emerged in North America, the business environment continued to be challenging, and sales declined. Sales of professional audio equipment were favorable in Europe because of the launching of new products, and the increase in the installation of audio equipment in Japan also contributed to sales performance. Sales of commercial online karaoke equipment were below the previous fiscal year, but sales of ICT (information and communication technology) equipment expanded. Sales in this segment as a whole rose ¥7.4 billion, or 7.0%, to ¥112.8 billion. Operating income increased ¥0.3 billion, or 4.6%, to ¥6.1 billion. Electronic Devices Sales of ¥13.4 billion (–28.6%) and an Operating Loss of ¥1.4 billion (compared with operating income of ¥0.8 billion in the previous fiscal year) In the semiconductor business, the operating environment did not improve. Sales were sluggish mainly in the magnetic sensors (electronic compasses) for smartphones and graphic controllers for amusement equipment. Sales in this segment as a whole decreased ¥5.4 billion, or 28.6%, to ¥13.4 billion. Accompanying the decline in sales, the segment posted an operating loss of ¥1.4 billion, compared with operating income of ¥0.8 billion in the previous fiscal year. Others Sales of ¥24.2 billion (+2.3%) and Operating Income of ¥0.4 billion (compared with an operating loss of ¥0.4 billion in the previous year) Orders for automobile interior wood components and FA (factory automation) equipment both recovered, and sales of these products increased. On the other hand, sales in the golf products and resort businesses decreased. As a consequence, sales of this segment as a whole increased ¥0.6 billion, or 2.3%, to ¥24.2 billion. Operating income amounted to ¥0.4 billion, compared with an operating loss of ¥0.4 billion in the previous fiscal year. 2 Non-Consolidated Performance in FY2015.3 Increases in Net Sales and Income compared with the previous fiscal year Sales of Yamaha on a non-consolidated basis in FY2015.3 increased to ¥233.7 billion, or 4.5%. Operating income amounted to ¥10.5 billion, a gain of 29.2%; ordinary income was ¥24.5 billion, 58.1% higher than in the prior year; and net income amounted to ¥25.3 billion, an increase of 42.9%. Consolidated Forecast for FY2016.3 The forecast is for increases in Net Sales and Income The Company’s forecasts for FY2016.3 call for net sales of ¥435.0 billion (+0.7%), operating income of ¥34.0 billion (+12.8%), ordinary income of ¥33.0 billion (+5.7%), and net income of ¥25.5 billion (+2.3%). These forecasts take account of a decline in sales of ¥12.4 billion, due to the transfer of the operations of music schools in Japan to the Yamaha Music Foundation, and the impact of foreign currency fluctuations. Note that the foreign currency rates assumed for the forecasts are ¥120 per U.S. dollar and ¥130 per euro. Dividends from Retained Earnings In view of the financial results announced today, the Company has revised its previous forecast for the year-end dividend of FY2015.3, from ¥16.5 per share to ¥22.5 per share. Additionally, the outlook for dividends for the full fiscal year has been revised upward from ¥30.0 per share to ¥36.0 per share. Notes: 1. Sales and income/loss figures in the text above have, in principle, been rounded to the nearest ¥0.1 billion. Figures in parentheses are percentage changes from the same period of the previous fiscal year, except as indicated. 2. Accompanying revision of accounting regulations, including the Accounting Standards for Business Combinations, beginning in FY2016.3, the method of presentation of net income will be changed from “net income” to “net income attributable to owners of the parent company.” Please note that “net income” in the “Consolidated Forecasts for FY2016.3” is presented in the same wording as in FY2015.3 and means “net income attributable to owners of the parent company.” For further information, please contact: Yamaha Corporation Corporate Communications Division, Public Relations Group Email: [email protected] Telephone: +81-3-5488-6601/Facsimile: +81-3-5488-5060 3 FY2015.3 Performance Outline April 30, 2015 (billions of yen) Net Sales Japan Sales Overseas Sales Operating Income Ordinary Income Net Income Currency Exchange Rate (Settlement Rate) (=yen) ROE ROA Earnings per Share Capital Expenditure (Depreciation) R&D Expenditure Results Projections (Previous Year) (announced on Feb. 4, 2015) Results Projections (Full Year) FY2015.3 FY2014.3 FY2015.3 410.3 430.0 432.2 167.9 (40.9%) 159.6 (37.1%) 160.4 (37.1%) 242.4 (59.1%) 270.4 (62.9%) 271.8 (62.9%) 26.0 (6.3%) 30.0 (7.0%) 30.1 (7.0%) 26.1 (6.4%) 30.0 (7.0%) 31.2 (7.2%) 22.9 (5.6%) 21.0 (4.9%) 24.9 (5.8%) 100/US$ 108/US$ 109/US$ 129/EUR 140/EUR 141/EUR 9.2% 7.1% 8.1% 5.5% 4.5% 5.1% 118.3 yen 108.5 yen 128.8 yen 10.8 13.6 13.8 (12.8) (12.7) (12.6) 22.6 25.5 25.4 FY2016.3 435.0 147.1 (33.8%) 287.9 (66.2%) 34.0 (7.8%) 33.0 (7.6%) 25.5 (5.9%) 120/US$ 130/EUR 7.2% 4.8% 131.7 yen 13.8 (13.7) 24.8 Cash Flows Operating Activities Investing Activities Total Inventories at End of Period 33.2 -23.0 10.3 82.7 31.5 -12.5 19.0 87.9 31.7 -11.7 20.0 87.8 38.5 -14.0 24.5 87.1 6,830 13,021 19,851 6,600 13,500 20,100 6,541 13,426 19,967 6,300 14,400 20,700 (257) (25) 7,860 7,400 Number of Employees Japan Overseas Total (*1) （Changes from the changes in the scope of consolidation） Temporary Staff (average during the period) (46) (270) 7,863 7,700 Sales by Business Segment Musical Instruments Audio Equipment Electronic Devices Others 262.3 105.5 18.8 23.7 (63.9%) (25.7%) (4.6%) (5.8%) 281.0 111.5 13.5 24.0 (65.4%) (25.9%) (3.1%) (5.6%) 281.7 112.8 13.4 24.2 (65.2%) (26.1%) (3.1%) (5.6%) 280.0 117.5 13.0 24.5 (64.4%) (27.0%) (3.0%) (5.6%) Operating Income by Business Segment Musical Instruments Audio Equipment Electronic Devices Others 19.7 5.9 0.8 -0.4 26.5 5.5 -2.0 0 25.1 6.1 -1.4 0.4 26.5 6.5 0.5 0.5 Non-Consolidated Basis Net Sales Operating Income Ordinary Income Net Income 223.7 8.1 15.5 17.7 (3.6%) (6.9%) (7.9%) 233.7 10.5 24.5 25.3 (4.5%) (10.5%) (10.8%) ＊1 Number of employees = Number of full-time staff at end of the period Consolidated financial forecasts were prepared based on information available at the time of the announcement and do not represent promises by the Company or its management that these performance figures will be attained. Actual consolidated results may differ from forecasts owing to a wide range of factors.