YAMAHA CORPORATION Interim Flash Report Non-Consolidated Basis Results for the FY2005 interim period ended September 30, 2004 November 2, 2004 YAMAHA CORPORATION (URL http://www.global.yamaha.com/english/ir/report/) Code number: 7951 Address of headquarters: 10-1, Nakazawa-cho, Hamamatsu, Shizuoka 430-8650, Japan Representative director: Shuji Ito For further information, please contact: Fumio Umeda, Accounting and Finance Manager Telephone: +81 53 460 2141 Date of the interim meeting of the Board of Directors: November 2, 2004 Interim dividend: YES Start date of interim dividend payout: December 10, 2004 Application of share unit system: Applicable (1 unit=100 shares) Company name: The accounting methods used in this report are not consistent with U.S. standard accounting methods. 1. RESULTS FOR THE FY2005 INTERIM PERIOD (April 1, 2004 to September 30, 2004) Figures of less than ¥1 million have been omitted. (1) Non-Consolidated Operating Results Net sales Millions of yen FY2005 interim period (Ended September 30, 2004) FY2004 interim period (Ended September 30, 2003) FY2004 (Ended March 31, 2004) Operating income (% change from the previous interim period) ¥187,605 179,907 345,354 4.3 4.5 Millions of yen (% change from the previous interim period) ¥21,359 18,767 26,954 13.8 77.1 Millions of yen ¥(13,617) 19,288 25,579 Notes: 1. Average number of outstanding shares during the period: FY2005 interim period ended September 30, 2004 206,344,960 shares FY2004 interim period ended September 30, 3003 206,356,126 shares FY2004 ended March 31, 2004 206,352,788 shares 2. Changes in method of accounting: YES 1 Millions of yen (% change from the previous interim period) ¥22,574 19,763 28,118 14.2 79.7 Net income (loss) per share Net income (loss) FY2005 interim period (Ended September 30, 2004) FY2004 interim period (Ended September 30, 2003) FY2004 (Ended March 31, 2004) Recurring profit (% change from the previous interim period) — 151.5 Yen ¥(65.99) 93.47 123.38 YAMAHA CORPORATION—Non-Consolidated Basis (2) Dividends Interim dividends per share Dividends paid for the year Yen FY2005 interim period (Ended September 30, 2004) FY2004 interim period (Ended September 30, 2003) FY2004 (Ended March 31, 2004) Yen ¥7.50 5.00 — ¥ — — 15.00 (3) Non-Consolidated Financial Data FY2005 interim period (As of September 30, 2004) FY2004 interim period (As of September 30, 2003) FY2004 (As of March 31, 2004) Total assets Shareholders’ equity Shareholders’ equity ratio Shareholders’ equity per share Millions of yen Millions of yen % Yen ¥324,895 356,379 337,029 ¥161,984 169,342 179,982 49.9 47.5 53.4 ¥785.03 820.65 871.65 Notes: 1. Number of outstanding shares at the end of the period: FY2005 interim period as of September 30, 2004 206,341,215 shares FY2004 interim period as of September 30, 3003 206,351,727 shares FY2004 as of March 31, 2004 206,347,606 shares 2. Number of shares of treasury stock at the end of the period: FY2005 interim period as of September 30, 2004 183,411 shares FY2004 interim period as of September 30, 3003 171,536 shares FY2004 as of March 31, 2004 177,020 shares 2. FORECAST OF RESULTS FOR FY2005 (April 1, 2004 to March 31, 2005) FY2005 Year-end dividends per share Dividends per share for the year Net sales Recurring profit Net income Millions of yen Millions of yen Millions of yen Yen Yen ¥343,000 ¥23,500 ¥(2,000) ¥7.50 ¥15.00 Reference: Net income per share for the fiscal year is forecast to be ¥(9.69) on a non-consolidated basis. Forecast performance is predicted by the Company based on the information available at the time of the forecast. Actual performance may differ from forecasts. For further information, please see “Forecast for Fiscal 2005” under “BUSINESS RESULTS.” 2 YAMAHA CORPORATION—Non-Consolidated Basis (References) (1) Non-Consolidated Balance Sheets Millions of yen FY2005 interim period (as of Sept. 30, 2004) FY2004 interim period (as of Sept. 30, 2003) FY2004 (as of Mar. 31, 2004) ASSETS Current assets: Cash and bank deposits ¥ 23,476 ¥ 25,861 7,696 7,698 7,857 Accounts receivable 39,483 41,294 39,926 Inventories 25,252 25,101 23,531 Deferred income taxes 10,735 8,652 9,847 2,627 2,321 2,333 (1,020) (1,306) (1,489) Notes receivable Other current assets Allowance for doubtful accounts Total current assets ¥ 4,630 108,251 109,623 86,637 22,446 36,054 35,988 Fixed assets: Tangible assets Buildings Machinery and equipment 7,368 7,054 7,079 51,415 63,918 62,575 8,541 11,024 11,894 89,772 118,051 117,538 103 110 103 Investment securities 32,778 27,486 36,371 Shares of affiliated companies 55,226 62,960 62,124 Deferred income taxes 20,464 19,313 15,610 Other assets 19,374 19,911 19,594 Allowance for doubtful accounts (1,075) (1,078) Land Other tangible assets Total tangible assets Intangible assets Investments and other assets: (950) Total investments and other assets 126,768 128,593 132,750 Total fixed assets 216,643 246,755 250,392 ¥324,895 ¥356,379 ¥337,029 Total assets Note: Figures of less than ¥1 million have been omitted. 3 YAMAHA CORPORATION—Non-Consolidated Basis Millions of yen FY2005 interim period (as of Sept. 30, 2004) FY2004 interim period (as of Sept. 30, 2003) FY2004 (as of Mar. 31, 2004) LIABILITIES Current liabilities: Notes payable ¥ 883 Accounts payable 28,770 Short-term loans ¥ 806 ¥ 741 24,518 21,337 1,991 2,912 1,790 — 24,317 — 17,038 — — 6,584 50 100 Accrued expenses 20,858 20,745 27,138 Various reserves 1,612 909 1,102 Other current liabilities 1,716 2,513 2,254 Total current liabilities 79,456 76,772 54,464 Convertible bonds scheduled for redemption within one year Current portion of long-term debt Corporate taxes payable Long-term liabilities: 300 17,338 17,338 Deferred income taxes on land revaluation Long-term debt 11,848 10,160 10,160 Accrued employees’ retirement benefits 40,069 44,882 42,596 648 614 658 29,701 36,309 30,935 885 959 893 83,453 110,264 102,582 162,910 187,037 157,046 28,534 28,533 28,534 Capital reserve 40,054 40,052 40,054 Total capital surplus 40,054 40,052 40,054 Directors’ retirement benefits Long-term deposits received Other liabilities Total long-term liabilities Total liabilities SHAREHOLDERS’ EQUITY Common stock Capital surplus: Earned surplus: Legal reserve Retained earnings Unappropriated earnings Total earned surplus Reserve for land revaluation Net unrealized holding gains on other securities Treasury stock, at cost 4,159 4,159 4,159 87,212 65,422 65,422 (20,020) 23,603 27,747 71,351 93,185 97,329 13,824 2,533 3,648 8,437 5,233 10,622 (218) Total shareholders’ equity Total liabilities and shareholders’ equity Note: Figures of less than ¥1 million have been omitted. 4 (195) (207) 161,984 169,342 179,982 ¥324,895 ¥356,379 ¥337,029 YAMAHA CORPORATION—Non-Consolidated Basis (2) Non-Consolidated Statement of Operations FY2005 interim period (April 1, 2004– Sept. 30, 2004) FY2004 interim period (April 1, 2003– Sept. 30, 2003) FY2004 (April 1, 2003– Mar. 31, 2004) Millions of yen % Millions of yen % Millions of yen % ¥187,605 100.0 ¥179,907 100.0 ¥345,354 100.0 Cost of sales: 131,508 70.1 127,127 70.7 248,139 71.9 Gross profit 56,097 29.9 52,780 29.3 97,214 28.1 Net sales Unrealized profit 129 Total gross profit 56,226 30.0 52,874 29.4 97,455 28.2 34,867 18.6 34,107 19.0 70,500 20.4 Operating income 21,359 11.4 18,767 10.4 26,954 7.8 Non-operating income 1,400 0.7 1,536 0.9 2,382 0.7 184 0.1 540 0.3 1,218 0.4 22,574 12.0 19,763 11.0 28,118 8.1 548 0.3 113 0.0 371 0.1 Other loss 33,044 17.6 758 0.4 4,047 1.1 Income (loss) before income taxes and minority interests 7.1 Selling, general and administrative expenses: Non-operating expenses: Recurring profit Other profit 93 241 (9,921) (5.3) 19,118 10.6 24,443 Current income taxes (benefit) 6,322 3.4 50 0.0 100 Deferred income taxes (benefit) (2,625) (1.4) (220) (0.1) (1,236) (0.3) (13,617) (7.3) 10.7 25,579 7.4 Net income (loss) Retained earnings at beginning of period 3,774 Reversal of reserve for land revaluation (10,176) Interim dividends — Retained earnings (loss) at end of period ¥ (20,020) 5 19,288 4,421 4,421 (107) (1,221) — 1,031 ¥ 23,603 ¥ 27,747 0.0