Fact Book

FACTBOOK 2004
Year ended March 31, 2004
Profile
Corporate Principles
Corporate Objective
Yamaha will continue to create ‘Kando’ and enrich
culture with technology and passion born of sound
and music, together with people all over the world.
‘Kando’ (is a Japanese word that) signifies an inspired
state of mind.
Brand Slogan
CREATING ‘KANDO’ TOGETHER
Promise to Stakeholders
To Customers
Yamaha will fully satisfy the customer, by offering high quality
products and services, which use new and traditional technologies, as well as creativity and artistry, and continue to be a
known, trusted and loved brand.
To Shareholders
Yamaha will increase the satisfaction and understanding of its
shareholders by striving for healthy profits and returns, and by
achieving productivity, using high quality, transparent management, and practicing disclosure.
To those who work with Yamaha
Yamaha will develop relationships of mutual trust with all of
those who work with Yamaha in accordance with fair rules based
on social norms, and strive to be an organization in which individuals can demonstrate their abilities fully, have confidence,
and have pride.
To Society
Yamaha will give first priority to safety, and will care for the
environment. Yamaha will be a good corporate citizen, and
observe laws and work ethically, developing the economy, and
contributing to local and global culture.
CONTENTS
1
Financial Highlights
2
Segment Information
8
Performance Trends
11
Profitability and Growth
12
Soundness and Stability
14
Efficiency
16
Cash Flows
YAMAHA CORPORATION
17
18
20
21
23
25
26
Per Share Data
Balance Sheets
Statements of Operations
Statements of Cash Flows
Shareholder Information
Main Products/Services
Network
Financial Highlights
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
For the year:
Net sales
Operating income
Net income (loss)
527,897
8,082
(40,777)
519,104
23,001
13,320
504,406
11,043
(10,274)
524,763
32,043
17,947
539,506
45,056
43,541
5,104.61
426.30
411.97
543,088
221,750
88,167
522,486
196,733
103,304
509,663
201,965
96,166
512,716
214,471
90,436
508,731
259,731
48,871
4,813.43
2,457.48
462.40
(197.45)
1,073.75
3
21,599
64.50
952.62
7
22,277
(49.75)
978.15
8
23,020
86.65
1,040.06
10
23,563
210.63
1,259.28
15
23,903
1.99
11.91
0.14
[3,432]
[3,814]
[4,401]
[5,016]
[5,061]
At year-end:
Total assets
Total shareholders’ equity
Interest-bearing liabilities
Per share (Yen/U.S. Dollars):
Net income (loss)
Shareholders’ equity
Cash dividends
Number of employees
[Includes average number
of temporary employees]
Throughout this factbook, U.S. dollar amounts are translated from yen at the rate of US$1=¥105.69, the approximate rate prevailing on March 31, 2004.
Net Sales by Business Segment (Fiscal Year Ended 2004/3)
Net Sales by Geographical Segment (Fiscal Year Ended 2004/3)
(Millions of Yen)
(Millions of Yen)
26,061
5%
20,100
4%
48,552
9%
76,892
14%
83,473
16%
293,430
54%
44,765
8%
320,809
59%
86,671
16%
78,257
15%
Musical Instruments
Electronic Equipment
and Metal Products
Japan
Europe
AV/IT
Recreation
North America
Asia, Oceania, and Other Areas
Lifestyle-Related Products
Others
FACTBOOK 2004
1
Segment Information
Musical Instruments
Sales/Operating Income
to Sales
Operating Income
(Millions of Yen)
(Millions of Yen/%)
450,000
30,000
27,077
387,004
7.0
292,647 293,430
284,901 286,920
4.3
12,290
3.3
3.6
9,792
10,480
4,738
1.7
2000/3 2001/3 2002/3 2003/3 2004/3
Sales
AV/IT sales
0
2000/3 2001/3 2002/3 2003/3 2004/3
Operating income
0
AV/IT operating income
Operating income to sales
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
Sales
Operating income
Capital investment
Depreciation expenses
R&D expenses
Note: Figures for 2000/3 include AV/IT.
2 YAMAHA CORPORATION
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
387,004
27,077
7,846
9,920
16,133
284,901
12,290
6,117
7,224
11,195
286,920
4,738
8,837
8,373
11,521
292,647
9,792
9,067
8,001
11,834
293,430
10,480
10,099
7,447
11,970
2,776.33
99.16
95.55
70.46
113.26
AV/IT
Sales/Operating Income
to Sales
Operating Income
(Millions of Yen)
(Millions of Yen/%)
6,000
120,000
100,197
95,214
4,418
83,670
78,257
3,904
5.6
3,250
3,037
3.9
3.9
3.2
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
0
Operating income to sales
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
Sales
Operating income
Capital investment
Depreciation expenses
R&D expenses
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
100,197
3,904
1,587
1,783
4,970
95,214
3,037
2,133
1,877
5,096
83,670
3,250
1,503
1,807
5,194
78,257
4,418
1,827
1,694
4,934
740.44
41.80
17.29
16.03
46.68
Note: Figures for 2000/3 are included in Musical Instruments.
FACTBOOK 2004
3
Lifestyle-Related Products
Sales/Operating Income (Loss)
to Sales
Operating Income (Loss)
(Millions of Yen)
(Millions of Yen/%)
2,000
60,000
46,865
46,944
45,714
46,031
44,765
1,462
1,046
892
3.3
2.3
1.9
461
1.0
0
0
-2.1
2000/3 2001/3 2002/3 2003/3 2004/3
-995
-995
2000/3 2001/3 2002/3 2003/3 2004/3
-1,000
Operating income (loss) to sales
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Sales
46,865
(995)
1,683
1,518
1,517
46,944
892
991
1,554
1,364
45,714
1,046
851
1,505
1,282
46,031
461
911
1,002
1,319
44,765
1,462
1,678
969
1,348
423.55
13.83
15.88
9.17
12.75
Operating income (loss)
Capital investment
Depreciation expenses
R&D expenses
4 YAMAHA CORPORATION
Electronic Equipment and Metal Products
Sales/Operating Income (Loss)
to Sales
Operating Income (Loss)
(Millions of Yen)
(Millions of Yen/%)
40,000
100,000
76,892
30,018
60,554
55,880
39.0
43,221
31.8
19,282
36,628
15.4
11.9
6,654
0
4,351
0
-32.4
-18,113
2000/3 2001/3 2002/3 2003/3 2004/3
2000/3 2001/3 2002/3 2003/3 2004/3
-20,000
Operating income (loss) to sales
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
Sales
Operating income (loss)
Capital investment
Depreciation expenses
R&D expenses
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
55,880
(18,113)
6,968
14,365
4,503
43,221
6,654
2,834
2,653
3,135
36,628
4,351
1,921
3,068
3,853
60,554
19,282
3,320
2,845
3,188
76,892
30,018
4,358
3,388
3,370
727.52
284.02
41.23
32.06
31.89
FACTBOOK 2004
5
Recreation
Sales/Operating Loss
to Sales
Operating Loss
(Millions of Yen)
(Millions of Yen/%)
0
30,000
23,484
21,771
21,590
20,903
20,100
-781
0
-1,110
-1,110
-3.3
-5.3
-5.9
-5.5
-8.1
-1,283
-1,741
2000/3 2001/3 2002/3 2003/3 2004/3
2000/3 2001/3 2002/3 2003/3 2004/3
-2,000
Operating loss to sales
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Sales
23,484
(781)
1,403
3,009
0
21,771
(1,283)
1,392
2,959
—
21,590
(1,741)
1,867
2,893
2
20,903
(1,110)
728
2,932
—
20,100
(1,110)
774
2,853
—
190.18
(10.50)
7.32
26.99
—
Operating loss
Capital investment
Depreciation expenses
R&D expenses
6 YAMAHA CORPORATION
Others
Sales/Operating Income (Loss)
to Sales
Operating Income (Loss)
(Millions of Yen)
(Millions of Yen/%)
800
30,000
26,061
22,067
543
20,956
18,339
365
14,663
204
2.5
0
1.7
1.4
0
-0.8
-2.1
-211
-389
2000/3 2001/3 2002/3 2003/3 2004/3
2000/3 2001/3 2002/3 2003/3 2004/3
-400
Operating income (loss) to sales
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Sales
14,663
204
927
798
435
22,067
543
1,846
1,135
494
18,339
(389)
1,015
1,050
785
20,956
365
1,352
996
904
26,061
(211)
2,420
1,167
880
246.58
(2.00)
22.90
11.04
8.33
Operating income (loss)
Capital investment
Depreciation expenses
R&D expenses
FACTBOOK 2004
7
Performance Trends
Net Sales/Overseas Sales Ratio
Cost of Sales/Cost of Sales Ratio
(Millions of Yen/%)
(Millions of Yen/%)
650,000
527,897
519,104
524,763
650,000
539,506
504,406
70.4
66.7
67.5
64.5
62.6
371,757
346,200 340,412 338,307 337,813
41.7
40.6
42.5
40.5
40.5
2000/3 2001/3 2002/3 2003/3 2004/3
Overseas sales ratio
0
2000/3 2001/3 2002/3 2003/3 2004/3
0
Cost of sales ratio
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
Net sales
Japan
North America
Europe
Other
Overseas sales ratio (%)
Cost of sales
Gross profit
8 YAMAHA CORPORATION
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
527,897
308,042
96,005
73,397
50,452
41.7
371,757
156,140
519,104
308,539
91,720
72,957
45,886
40.6
346,200
172,904
504,406
289,951
93,524
73,458
47,472
42.5
340,412
163,994
524,763
312,129
89,728
77,185
45,721
40.5
338,307
186,456
539,506
320,809
86,671
83,473
48,552
40.5
337,813
201,693
5,104.61
3,035.38
820.05
789.79
459.38
3,196.26
1,908.35
SG&A Expenses/
SG&A Expenses to Net Sales
Operating Income/
Operating Income to Net Sales
Net Income (Loss)/
Net Income (Loss) to Net Sales
(Millions of Yen/%)
(Millions of Yen/%)
(Millions of Yen/%)
50,000
200,000
50,000
43,541
45,056
8.1
148,057 149,902
156,637
152,951 154,413
17,947
13,320
32,043
3.4
2.6
28.0
28.9
30.3
29.4
8.4
29.0
0
23,001
-2.0
6.1
-10,274
4.4
11,043
8,082
-7.7
2.2
-40,777
1.5
2000/3 2001/3 2002/3 2003/3 2004/3
SG&A expenses to net sales
0
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
Operating income to net sales
Net income (loss) to net sales
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
SG&A expenses
Personnel expenses
Advertising & promotion
Operating income
Net income (loss)
2000/3
148,057
63,987
20,811
8,082
(40,777)
-50,000
2001/3
149,902
62,719
22,052
23,001
13,320
2002/3
152,951
65,439
22,455
11,043
(10,274)
2003/3
2004/3
2004/3
154,413
66,757
21,740
32,043
17,947
156,637
71,334
22,424
45,056
43,541
1,482.04
674.94
212.17
426.30
411.97
Note: Accounting for miscellaneous salaries, which was included in other in SG&A expenses, is included in personnel expenses from fiscal 2004.
FACTBOOK 2004
9
Capital Investment/Capital Investment
to Net Sales
Depreciation Expenses
R&D Expenses/R&D Expenses
to Net Sales
(Millions of Yen)
(Millions of Yen/%)
(Millions of Yen/%)
30,000
30,000
30,000
28,635
22,588
21,160
22,539
22,441
22,503
21,158
18,767
18,544
16,627
16,883
17,310
3.9
17,586
4.5
17,522
4.3
4.3
4.1
3.5
14,770
4.2
3.3
3.2
2.8
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
R&D expenses to net sales
Capital investment to net sales
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Capital investment
18,544
28,635
22,588
14,770
17,310
21,158
16,627
18,767
22,539
16,883
17,586
22,441
21,160
17,522
22,503
200.21
165.79
212.92
Depreciation expenses
R&D expenses
10
0
YAMAHA CORPORATION
Profitability and Growth
Return on Equity (ROE)
Return on Assets (ROA)
(%)
(%)
20
20
18.4
8.6
8.5
6.4
3.5
2.5
0
0
-2.0
-5.2
-7.6
-18.7
2000/3 2001/3 2002/3 2003/3 2004/3
-20
2000/3 2001/3 2002/3 2003/3 2004/3
-20
%
Fiscal Year Ended:
Return on equity (ROE)
Return on assets (ROA)
2000/3
(18.7)
(7.6)
2001/3
6.4
2.5
2002/3
(5.2)
(2.0)
2003/3
2004/3
8.6
3.5
18.4
8.5
ROE = net income / shareholders’ equity (yearly average) x 100
ROA = net income / total assets (yearly average) x 100
FACTBOOK 2004
11
Soundness and Stability
Shareholders’ Equity Ratio
Interest Coverage
Current Ratio
(%)
(Times)
(%)
40
60
200
36.51
51.1
163.2
146.1
139.8
41.8
40.8
132.2
39.6
37.7
115.5
19.97
8.82
4.46
2000/3 2001/3 2002/3 2003/3 2004/3
0
5.07
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
0
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Shareholders’ equity ratio (%)
40.8
2,968
8,082
37.7
3,014
23,001
39.6
2,911
11,043
41.8
2,015
32,043
51.1
1,535
45,056
14.52
426.30
4,209
957
4.46
205,979
178,281
115.5
2,434
1,137
8.82
231,872
175,371
132.2
2,993
735
5.07
211,140
144,498
146.1
7,608
582
19.97
221,089
158,148
139.8
10,447
538
36.51
201,704
123,596
163.2
Interest expense
Operating income
Equity in earnings of unconsolidated
subsidiaries and affiliates
Interest and dividend income
Interest coverage (Times)
Total current assets
Total current liabilities
Current ratio (%)
98.85
5.09
1,908.45
1,169.42
Interest coverage = (operating income + interest and dividends received + equity in earnings of unconsolidated subsidiaries and affiliates) / interest expense
12
YAMAHA CORPORATION
Interest-Bearing Liabilities/
Debt to Equity Ratio
Fixed Assets to Capital Ratio
(%)
(Millions of Yen/Times)
120,000
200
103,304
96,166
90,436
88,167
147.7
147.8
136.0
131.9
118.2
0.53
0.48
0.42
48,871
0.40
0.19
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
0
Debt to equity ratio
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
Total shareholders’ equity
Interest-bearing liabilities
Debt to equity ratio (Times)
Fixed assets
Fixed assets to capital ratio (%)
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
221,750
88,167
0.40
292,460
131.9
196,733
103,304
0.53
290,614
147.7
201,965
96,166
0.48
298,522
147.8
214,471
90,436
0.42
291,627
136.0
259,731
48,871
0.19
307,026
118.2
2,457.48
462.40
2,904.97
Interest-bearing liabilities = long-term debt + short-term debt + convertible bonds
Debt to equity ratio = interest-bearing liabilities / shareholders’ equity
Fixed assets to capital ratio = fixed assets / shareholders’ equity x 100
FACTBOOK 2004
13
Efficiency
Total Asset Turnover
Trade Receivable Turnover
(Times)
(Times)
1.5
8
6.95
6.55
1.03
0.98
0.97
6.52
6.84
6.40
1.06
0.98
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
0
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
Net sales
Total assets
Total asset turnover (Times)
Trade receivables
Trade receivable turnover (Times)
2001/3
2002/3
2003/3
2004/3
2004/3
527,897
543,088
0.98
73,482
6.55
519,104
522,486
0.97
85,678
6.52
504,406
509,663
0.98
71,844
6.40
524,763
512,716
1.03
79,130
6.95
539,506
508,731
1.06
78,725
6.84
Trade receivables = notes and accounts receivable - allowance for doubtful accounts
Total asset turnover = net sales / total assets (yearly average)
Trade receivable turnover = net sales / trade receivables (yearly average)
14
YAMAHA CORPORATION
5,104.61
4,813.43
744.87
Inventory Turnover
Trade Payable Turnover
(Times)
(Times)
8
15
13.75
13.59
7.09
6.38
6.27
11.76
5.93
5.55
2000/3 2001/3 2002/3 2003/3 2004/3
10.32
0
10.25
2000/3 2001/3 2002/3 2003/3 2004/3
0
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Inventories
77,416
50,136
27,280
6.27
52,335
10.32
97,664
63,893
33,771
5.93
48,924
10.25
84,264
54,775
29,489
5.55
36,880
11.76
80,144
51,116
29,028
6.38
39,462
13.75
72,146
46,592
25,554
7.09
39,947
13.59
682.62
440.84
241.78
Finished products
Raw materials & work in process
Inventory turnover (Times)
Trade payables
Trade payable turnover (Times)
377.96
Inventory turnover = net sales / inventories (yearly average)
Trade payable turnover = net sales / trade payables (yearly average)
FACTBOOK 2004
15
Cash Flows
Free Cash Flow
Free Cash Flow Margin
(Millions of Yen)
(%)
39,574 40,000
10
7.34
23,325
4.41
18,579
3.68
11,407
2.17
0
0
-2.80
-14,530
2000/3 2001/3 2002/3 2003/3 2004/3
-20,000
2000/3 2001/3 2002/3 2003/3 2004/3
-5
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Cash flows from
operating activities
10,851
(9,089)
29,016
33,052
58,349
552.08
12,474
23,325
(5,441)
(14,530)
(10,437)
18,579
(21,645)
11,407
(18,775)
39,574
(177.64)
374.43
(7,522)
527,897
12,987
519,104
(12,880)
504,406
(8,582)
524,763
(50,141)
539,506
(474.42)
5,104.61
4.41
(2.80)
3.68
2.17
7.34
Cash flows from
investing activities
Free cash flow
Cash flows from
financing activities
Net sales
Free cash flow
margin (%)
Free cash flow margin = free cash flow / net sales x 100
16
YAMAHA CORPORATION
Per Share Data
Net Income (Loss) per Share
Shareholders’ Equity per Share
Dividends per Share
(Yen)
(Yen)
(Yen)
1,500
250
20
210.63
1,259.28
15
1,073.75
1,040.06
86.65
952.62
64.50
978.15
10
0
8
-49.75
7
3
-197.45
2000/3 2001/3 2002/3 2003/3 2004/3
-250
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
Yen
Fiscal Year Ended:
Net income (loss) per share
Shareholders’ equity per share
Dividends per share
Dividends paid (Millions of Yen/
Millions of U.S. Dollars)
Dividend payout ratio (%)
2000/3
0
U.S. Dollars
2001/3
2002/3
2004/3
2004/3
(197.45)
1,073.75
3
64.50
952.62
7
(49.75)
86.65
210.63
978.15 1,040.06 1,259.28
8
10
15
1.99
11.91
0.14
619
—
1,445
14.9
1,651
—
2003/3
2,063
27.1
3,095
12.2
29.28
Payout ratio = dividends paid / net income (non-consolidated) x 100
FACTBOOK 2004
17
Balance Sheets
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
33,796
32,885
41,074
44,485
32,053
303.27
ASSETS
Current assets:
Cash and bank deposits
Marketable securities
Notes and accounts receivable
2,805
1,349
356
1,370
1,150
10.88
76,334
88,466
74,519
81,755
81,114
767.47
Allowance for doubtful accounts
(2,852)
(2,788)
(2,675)
(2,625)
(2,389)
(22.60)
Inventories
77,416
97,664
84,264
80,144
72,146
682.62
Deferred income taxes
12,354
9,201
9,332
10,489
12,291
116.29
6,124
5,094
4,267
5,469
5,337
50.50
205,979
231,872
211,140
221,089
201,704
1,908.45
Land
48,970
48,619
78,069
76,835
75,362
713.05
Buildings and structures
81,478
77,617
70,745
67,166
66,524
629.43
Machinery and equipment
34,999
34,516
35,440
33,639
33,802
319.82
2,672
2,363
1,003
1,082
2,978
28.18
168,121
163,117
185,261
178,724
178,667
1,690.48
78,474
84,980
76,307
77,622
101,017
955.79
2,940
2,188
1,733
694
193
1.83
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment, net
of accumulated depreciation:
Construction in progress
Total property, plant and equipment, net
of accumulated depreciation
Investments and other assets:
Investment securities
Long-term loans receivable
Lease deposits
Deferred income taxes
Excess of cost over net assets acquired
Other assets
Total investments and other assets
Translation adjustments
Total Assets
18
YAMAHA CORPORATION
5,134
5,185
5,087
5,013
5,146
48.69
32,123
28,876
26,384
24,663
17,379
164.43
366
333
173
107
234
2.21
5,300
5,932
3,573
4,800
4,388
41.52
124,338
127,496
113,260
112,902
128,359
1,214.49
44,649
—
—
—
—
—
543,088
522,486
509,663
512,716
508,731
4,813.43
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
42,638
58,349
47,871
27,078
16,711
158.11
—
—
—
24,317
—
—
Current portion of long-term debt
11,527
10,160
4,363
10,090
7,388
69.90
Trade payables
52,335
48,924
36,880
39,462
39,947
377.96
Accrued expenses
LIABILITIES
Current liabilities:
Short-term loans
Current portion of convertible bonds
48,580
40,888
41,987
42,501
45,888
434.18
Income taxes payable
1,803
1,858
1,224
3,101
2,492
23.58
Advances received
4,745
4,417
3,742
3,428
3,333
31.54
122
34
65
92
94
0.89
Deferred income taxes
Other current liabilities
Total current liabilities
16,526
10,736
8,360
8,074
7,737
73.20
178,281
175,371
144,498
158,148
123,596
1,169.42
24,317
24,317
24,317
—
—
—
9,685
10,478
19,615
28,951
24,772
234.38
42,448
—
—
—
—
—
Long-term liabilities:
Convertible bonds
Long-term debt
Long-term accounts payable
Deferred income taxes
132
257
316
266
198
1.87
1,632
1,632
14,638
13,577
13,569
128.38
18,635
67,250
59,074
53,988
50,012
473.20
—
792
859
965
939
8.88
41,448
40,592
38,472
36,848
30,799
291.41
1,416
1,341
1,191
1,572
1,600
15.14
Total long-term liabilities
139,716
146,662
158,486
136,171
121,891
1,153.29
MINORITY INTERESTS
3,340
3,718
4,712
3,925
3,511
33.22
Common stock
28,533
28,533
28,533
28,533
28,534
269.98
Additional paid-in capital
26,924
26,924
26,924
—
—
—
8,331
8,269
16,482
—
—
—
Deferred income taxes on land revaluation
Accrued employees’ retirement benefits
Directors’ retirement benefits
Long-term deposits received
Other long-term liabilities
SHAREHOLDERS’ EQUITY
Reserve for land revaluation
Retained earnings
157,962
170,496
157,589
—
—
—
Capital surplus
—
—
—
40,052
40,054
378.98
Earned surplus
—
—
—
162,344
203,485
1,925.30
Reserve for land revaluation
—
—
—
16,152
15,866
150.12
Net unrealized holding gains/losses
on other securities
—
308
766
378
10,979
103.88
Translation adjustments
—
(37,794)
(28,280)
(32,753)
(38,937)
(368.41)
221,752
196,739
202,014
214,707
259,983
2,459.86
(2)
(5)
(49)
(236)
(252)
(2.38)
Total shareholders’ equity
221,750
196,733
201,965
214,471
259,731
2,457.48
Total Liabilities, Minority Interests
and Shareholders’ Equity
543,088
522,486
509,663
512,716
508,731
4,813.43
Shareholders’ equity
(before treasury stock adjustment)
Treasury stock, at cost
FACTBOOK 2004
19
Statements of Operations
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Net sales
527,897
519,104
504,406
524,763
539,506
5,104.61
Cost of sales
371,758
346,200
340,412
338,307
337,813
3,196.26
Gross profit
156,140
172,904
163,994
186,456
201,693
1,908.35
Selling, general and administrative expenses
148,057
149,902
152,951
154,413
156,637
1,482.04
8,082
23,001
11,043
32,043
45,056
426.30
957
1,137
735
582
538
5.09
Interest expense
(2,968)
(3,014)
(2,911)
(2,015)
(1,535)
(14.52)
Sales rebates
(4,188)
(4,391)
(4,477)
(4,347)
(4,378)
(41.42)
(280)
(879)
(352)
(1,015)
—
—
9,091
3,152
3,694
—
5
0.05
—
(513)
(14,857)
(7,746)
(110)
(1.04)
1,820
4,086
(1,672)
(974)
(2,297)
(21.73)
Operating income
Other income (expenses):
Interest and dividend income
Loss on foreign exchange
Gain on sale of marketable
and investment securities
Loss from revaluation of investment securities
Loss (gain) on sale or disposal of properties, net
Equity in earnings of unconsolidated
subsidiaries and affiliates
4,205
2,434
2,993
7,608
10,447
98.85
Special retirement benefits
(21,281)
—
(1,061)
—
—
—
Cumulative effect of accounting change
with respect to prior service cost
of the pension plan
(29,507)
—
—
—
—
—
Structural reform expenses
(17,368)
—
—
(2,271)
(6)
(0.06)
3,836
(1,521)
1,079
749
(266)
(2.52)
Total other income (expenses)
(55,684)
491
(16,829)
(9,429)
2,400
22.71
Income (loss) before income taxes
and minority interests
(47,601)
23,491
(5,784)
22,612
47,456
449.01
Current
2,947
2,900
1,507
3,962
4,769
45.12
Deferred
(10,167)
6,826
2,429
65
(1,387)
(13.12)
(7,220)
9,726
3,936
4,027
3,382
32.00
Other, net
Income taxes:
Total income taxes
(40,382)
13,765
(9,723)
18,583
44,073
417.00
Minority interests
395
444
551
636
532
5.03
Net Income (Loss)
(40,777)
13,320
(10,274)
17,947
43,541
411.97
Income (loss) before minority interests
20
YAMAHA CORPORATION
Statements of Cash Flows
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Income (loss) before income taxes
and minority interests
(47,601)
23,491
(5,784)
22,612
47,456
449.01
Depreciation and amortization
28,876
17,448
18,919
17,699
17,695
167.42
Increase (decrease) in allowance
for doubtful accounts
(1,010)
(126)
(507)
395
(407)
(3.85)
1.04
Cash flows from operating activities:
Loss from revaluation
of investment securities
—
513
14,857
7,746
110
Decrease in employees’ retirement
benefits, net of payments
(19,322)
(957)
(8,210)
(5,150)
(3,983)
Increase in long-term
accounts payable
42,448
—
—
—
—
—
(957)
(1,137)
(735)
(582)
(538)
(5.09)
Interest expense
2,968
3,014
2,911
2,015
1,535
14.52
Equity in earnings of unconsolidated
subsidiaries and affiliates
(4,209)
(2,433)
(2,993)
(7,608) (10,447)
(98.85)
Gain on sale of investment securities
(9,091)
(3,152)
(3,667)
—
(5)
(0.05)
Loss (gain) on sale or disposal
of properties, net
(1,820)
(4,086)
1,672
974
2,297
21.73
Interest and dividend income
Net loss on foreign exchange
(37.69)
280
879
63
242
217
2.05
Structural reform expenses
17,368
—
—
2,271
6
0.06
Decrease (increase) in accounts
and notes receivable—trade
11,511
(8,058)
18,794
(8,509)
(698)
(6.60)
9,811
(14,863)
18,532
3,233
6,346
60.04
Decrease (increase) in inventories
Increase (decrease) in accounts
and notes payable—trade
3,087
(5,669) (15,715)
2,894
1,283
12.14
Other, net
(2,470)
(9,034)
(4,775)
(1,413)
3,383
32.01
12,501
(4,170)
33,360
36,061
64,248
607.89
959
1,113
746
1,181
1,301
12.31
(2,968)
(2,938)
(2,918)
(2,067)
(1,582)
(14.97)
—
—
—
—
(339)
(3.21)
358
(3,094)
(2,171)
(2,123)
(5,278)
(49.94)
10,851
(9,089)
29,016
33,052
58,349
552.08
Subtotal
Interest and dividends received
Interest paid
Fines and penalties paid
Income taxes paid, net of payment
Net cash provided by (used in)
operating activities
FACTBOOK 2004
21
continued
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
2004/3
Purchases of properties
(20,175) (15,082) (14,876) (15,730) (18,721)
(177.13)
Proceeds from sale of properties
17,137
9,137
888
2,674
552
5.22
Purchases of investment securities
(34,321)
(3,546)
(858)
(6,541)
(266)
(2.52)
Proceeds from sale
of investment securities
45,290
3,381
4,074
187
371
3.51
811
668
336
(2,235)
(711)
(6.73)
12,474
(5,441) (10,437) (21,645) (18,775)
(177.64)
Decrease in short-term loans
(4,666)
13,534
(105.77)
Proceeds from long-term debt
2,382
8,112
8,178
18,908
Repayments of long-term debt
(5,033)
(7,197)
(5,665)
(3,065)
(8,778)
(83.05)
—
—
—
—
(24,314)
(230.05)
Cash flows from investing activities:
Other, net
Net cash (used in) provided by
investing activities
Cash flows from financing activities:
Redemption of convertible bonds
Cash dividends paid
2,651
25.08
(206)
(1,239)
(1,652)
(1,857)
(2,063)
(19.52)
Cash dividends paid
to minority shareholders
—
(242)
(468)
(268)
(384)
(3.63)
Proceeds from stock issued
to minority shareholders
—
22
—
—
—
—
Repayments of resort member deposits
—
—
—
(1,297)
(6,049)
(57.23)
Purchases of treasury stock
—
—
—
(133)
(23)
(0.22)
0
(3)
(31)
19
0
0
Net cash (used in) provided by
financing activities
(7,522)
12,987
(12,880)
(8,582) (50,141)
(474.42)
Effect of exchange rate changes
on cash and cash equivalents
(1,467)
887
1,122
(504)
(1,599)
(15.13)
Net (decrease) increase in cash
and cash equivalents
14,335
(656)
6,821
2,319
(12,167)
(115.12)
Cash and cash equivalents
at beginning of year
Other, net
17,923
33,632
32,725
40,571
42,976
406.62
Increase in cash and cash equivalents
arising from inclusion of subsidiaries
in consolidation
1,373
351
1,025
85
1,150
10.88
Decrease in cash and cash equivalents
arising from exclusion of subsidiaries
in consolidation
—
(602)
—
—
(127)
(1.20)
Decrease in cash and cash equivalents
accompanying changes to the accounting
periods of consolidated subsidiaries
—
—
—
—
(587)
(5.55)
33,632
32,725
40,571
42,976
31,245
295.63
Cash and Cash Equivalents at End of Year
22
(13,241) (20,887) (11,179)
YAMAHA CORPORATION
Shareholder Information
Common Stock Price Range and Trading Volume
(Yen/Shares)
2,500
Common Stock Price Range
0
Trading Volume
2000/3
2001/3
2002/3
2003/3
2004/3
Yen
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
Share price at the end of fiscal year
832
1,609
620
114
1,318
1,475
710
122
912
1,390
745
107
1,335
1,399
857
148
1,945
2,320
1,323
278
Share price—high
Share price—low
Trading volume (Million Shares)
FACTBOOK 2004
23
Dividend Yield
Price to Earnings Ratio
Price to Book Value Ratio
(%)
(Times)
(Times)
1
2
25
0.88
20.4
0.77
1.54
1.38
0.75
15.4
1.28
0.53
0.93
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
0
2000/3 2001/3 2002/3 2003/3 2004/3
0
Fiscal Year Ended:
2000/3
2001/3
2002/3
2003/3
2004/3
Dividend yield (%)
Number of shares issued (Thousand Shares)
0.36
—
0.77
206,523
0.53
20.4
1.38
206,523
0.88
—
0.93
206,523
0.75
15.4
1.28
206,523
0.77
9.2
1.54
206,525
Market capitalization
at the end of fiscal year (Millions of Yen)
171,827
272,198
188,349
275,709
401,690
18.9
22.5
25.2
20.5
26.2
Price to earnings ratio (Times)
Price to book value ratio (Times)
Percentage of shares owned
by foreign investors (%)
24
0.77
9.2
0.36
YAMAHA CORPORATION
Main Products/Services
Musical Instruments
•Pianos
•Electronic and digital musical instruments (electronic pianos,
Electones™, portable keyboards, synthesizers, etc.)
•Wind instruments
(trumpets, flutes, saxophones, etc.)
•String instruments
(guitars, violins, etc.)
•Percussion instruments
(drums, vibraphones, etc.)
•Educational musical instruments
(recorders, Pianicas™, etc.)
•Professional audio equipment
(digital mixers, power amplifiers, etc)
•Soundproof rooms
(AVITECS™)
•Music schools, English schools
•Content distribution service
AV/IT
•Audio products
(AV amplifiers and receivers, speaker systems, etc.)
•Visual products
(digital cinema projectors, etc.)
•Online karaoke
•Routers
Lifestyle-Related Products
•System bathrooms
•System kitchens
•Washstands
•Furniture
•Parts for housing facilities
Electronic Equipment and Metal products
•Semiconductors
•Specialty metals
Recreation
•Comprehensive recreation facilities
(Kiroro™, Tsumagoi™, Katsuragi-Kitanomaru™,
Toba Hotel International™, Nemunosato™, Haimurubushi™)
•Ski resort
(Kiroro™)
•Golf courses
(Katsuragi Golf Club™, Nemunosato Golf Club™)
Others
•Golf products
•Automobile interior wood components
•Industrial robots
•Metallic molds and components
FACTBOOK 2004
25
Network
Main Domestic Group Companies
Musical Instruments
Yamaha Music Tokyo Co., Ltd.
Yamaha Music Nishi-Tokyo Co., Ltd.
Yamaha Music Yokohama Co., Ltd.
Yamaha Music Kanto Co., Ltd.
Yamaha Music Osaka Co., Ltd.
Yamaha Music Kobe Co., Ltd.
Yamaha Music Setouchi Co., Ltd.
Yamaha Music Tokai Co., Ltd.
Yamaha Music Kyushu Co., Ltd.
Yamaha Music Hokkaido Co., Ltd.
Yamaha Music Tohoku Co., Ltd.
Yamaha Music Trading Corporation
Yamaha Music Media Corporation
Yamaha Music Craft Corporation
Yamaha Sound Technologies Inc.
Yamaha Music Communications Co., Ltd.
Music Lease Corporation
Yamanashi Kogei Co., Ltd.
Sakuraba Mokuzai Co., Ltd.
YP Winds Corporation
Yamaha Hall Co., Ltd.
Yamaha Piano Service Co., Ltd.*
AV/IT
Yamaha Electronics Marketing Corporation
D.S. Corporation
Lifestyle-Related Products
Yamaha Livingtec Corporation
Yamaha Living Products Corporation
Joywell Home Corporation*
lectronic Equipment and Metal Products
Yamaha Kagoshima Semiconductor Inc.
Yamaha Hi-Tech Design Corporation
Yamaha Metanix Corporation
Recreation
Kiroro Associates Co., Ltd.
Tsumagoi Co., Ltd.
Katsuragi Co., Ltd.
Toba Hotel International Co., Ltd.
Nemunosato Co., Ltd.
Haimurubushi Co., Ltd.
Others
Yamaha Credit Corporation
Yamaha Insurance Service Co., Ltd.
Yamaha Fine Technologies Co., Ltd.
YP Engineering Corporation
Yamaha Travel Service Co., Ltd.
Nihon Jimu Center Co., Ltd.
YP Video Corporation
Yamaha Business Support Corporation*
Companies Accounted for Using the Equity Method
Yamaha Motor Co., Ltd.
KORG Inc.
*Non-consolidated subsidiary or affiliate
26
YAMAHA CORPORATION
YAMAHA’s Overseas Network
The Americas
Yamaha Corporation of America
Yamaha Electronics Corporation, U.S.A.
Yamaha Music Manufacturing, Inc.
Yamaha Exporting, Inc.
Yamaha Musical Products, Inc.
Yamaha Music InterActive Inc.*
Yamaha Canada Music Ltd.
Yamaha de México, S.A. de C.V.
Yamaha Music Latin America, S.A.
Yamaha Musical do Brasil Ltda.*
Europe
Yamaha Music Holding Europe G.m.b.H.
Yamaha Music Central Europe G.m.b.H.
Yamaha Elektronik Europa G.m.b.H.
Yamaha Scandinavia AB
Yamaha Musique France S.A.S.
Yamaha Electronique France S.A.S.
Yamaha-Kemble Music (U.K.) Ltd.
Kemble & Company Ltd.
Yamaha Electronics (U.K.) Ltd.
Yamaha-Hazen Música S.A.
Yamaha Musica Italia S.p.A.
Kemble Music Ltd.*
Asia and Oceania
Taiwan Yamaha Musical Inst. Mfg. Co., Ltd.
Kaohsiung Yamaha Co., Ltd.
Yamaha KHS Music Co., Ltd.
Yamaha Music & Electronics (China) Co., Ltd.
Tianjin Yamaha Electronic Musical Instruments, Inc.
Guangzhou Yamaha-Pearl River Piano Inc.
Xiaoshan Yamaha Musical Instruments Co., Ltd.
Yamaha Electronics (Suzhou) Co., Ltd.
Hangzhou Yamaha Musical Instruments Co., Ltd.*
Yamaha Trading (Shanghai) Co., Ltd.*
Yamaha Electronics Trading (Shanghai) Co., Ltd.*
PT. Yamaha Indonesia
PT. Yamaha Music Manufacturing Indonesia
PT. Yamaha Music Indonesia (Distributor)
PT. Yamaha Music Manufacturing Asia
PT. Yamaha Musical Products Indonesia
PT. Yamaha Electronics Manufacturing Indonesia
Yamaha Music (Asia) Pte., Ltd.
Yamaha Electronics Asia Pte., Ltd.
Yamaha Music (Malaysia) Sdn. Bhd.
Audio-Visual Land (Malaysia) Sdn. Bhd.
Consolidated Music Sdn. Bhd.
S.P. Music Centre Sdn. Bhd.
Yamaha Electronics Manufacturing Malaysia Sdn. Bhd.
Yamaha Music Korea Ltd.
Yamaha Music Australia Pty., Ltd.
Yamaha Music Gulf FZE
Siam Music Yamaha Co., Ltd.*
*Non-consolidated subsidiary or affiliate
FACTBOOK 2004
27
Public Relations Division
URL: http://www.global.yamaha.com
Printed in Japan using soy-based inks on recycled paper.