YAMAHA CORPORATION Interim Flash Report Non-Consolidated Basis Results for the FY2004 interim period ended September 30, 2003 November 10, 2003 Company name: YAMAHA CORPORATION (URL http://www.yamaha co.jp/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 10, 2003 Interim dividend: YES Start date of interim dividend payout: December 10, 2003 Application of share unit system: Applicable (1 unit=100 shares) The accounting methods used in this report are not consistent with U.S. standard accounting methods. 1. RESULTS FOR THE FY2004 INTERIM PERIOD (April 1, 2003 to September 30, 2003) Figures of less than ¥1 million have been omitted. (1) Non-Consolidated Operating Results Net sales Millions of yen FY2004 interim period (Ended September 30, 2003) FY2003 interim period (Ended September 30, 2002) FY2003 (Ended March 31, 2003) Operating income (% change from the previous interim period ¥179,907 172,098 334,078 4.5 (0.5) Millions of yen (% change from the previous interim period) ¥18,767 10,599 21,897 77.1 38.7 Net income FY2004 interim period (Ended September 30, 2003) FY2003 interim period (Ended September 30, 2002) FY2003 (Ended March 31, 2003) Recurring profit Millions of yen (% change from the previous interim period) ¥19,763 10,998 22,218 79.7 27.3 Net income per share Millions of yen (% change from the previous interim period Yen ¥19,288 7,669 151.5 (11.8) ¥93.47 37.15 7,706 Notes: 1. Average number of outstanding shares during the period: FY2004 interim period ended September 30, 2003 206,356,126 shares FY2003 interim period ended September 30, 3002 206,426,510 shares FY2003 ended March 31, 2003 206,404,508 shares 2. Changes in method of accounting: NONE 1 36.95 YAMAHA CORPORATION—Non-Consolidated Basis (2) Dividends Interim dividends per share Dividends paid for the year Yen FY2004 interim period (Ended September 30, 2003) FY2003 interim period (Ended September 30, 2002) FY2003 (As of March 31, 2003) Yen ¥5.00 5.00 — ¥ — — ¥10.00 (3) Non-Consolidated Financial Data FY2004 interim period (Ended September 30, 2003) FY2003 interim period (Ended September 30, 2002) FY2003 (As of March 31, 2003) Total assets Shareholders’ equity Shareholders’ equity ratio Shareholders’ equity per share Millions of yen Millions of yen % Yen ¥356,379 291,774 ¥347,499 ¥169,342 148,282 ¥146,394 47.5% 50.8 42.1 ¥820.65 718.43 709.03 Notes: 1. Number of outstanding shares at the end of the period: FY2004 interim period ended September 30, 2003 206,351,727 shares FY2003 interim period ended September 30, 3002 206,397,898 shares FY2003 ended March 31, 2003 206,358,924 shares 2. Number of shares of treasury stock at the end of the period: FY2004 interim period ended September 30, 2003 171,536 shares FY2003 interim period ended September 30, 3002 125,365 shares FY2003 ended March 31, 2003 164,339 shares 2. FORECAST OF RESULTS FOR FY2004 (April 1, 2003 to March 31, 2004) FY2004 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 ¥341,000 ¥24,500 ¥23,500 ¥5.00 ¥10.00 Reference: Net income per share for the fiscal year is forecast to be ¥113.88 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 2004” under “BUSINESS RESULTS.” 2 YAMAHA CORPORATION—Non-Consolidated Basis (References) (1) Non-Consolidated Balance Sheets Millions of yen FY2004 interim period (as of Sept. 30, 2003) FY2003 interim period (as of Sept. 30, 2002) FY2003 (as of Mar. 31, 2003) ¥ 25,861 ¥ 11,371 ¥ 19,127 7,698 5,680 9,253 Accounts receivable 41,294 36,125 39,260 Inventories 25,101 25,243 27,748 Deferred income taxes 8,652 7,979 7,969 Other current assets 2,321 2,177 2,507 (1,306) (1,283) (1,344) ASSETS Current assets: Cash and bank deposits Notes receivable Allowance for doubtful accounts Total current assets 109,623 87,295 104,521 36,054 14,003 36,300 7,054 7,277 7,130 Land 63,918 48,110 63,937 Other tangible assets 11,024 6,455 11,102 118,051 75,846 118,470 110 77 110 Investment securities 27,486 25,100 19,599 Shares of affiliated companies 62,960 63,855 62,353 Deferred income taxes 19,313 22,992 22,914 Other assets 19,911 17,608 20,605 Allowance for doubtful accounts (1,078) (1,001) (1,074) Fixed assets: Tangible assets Buildings Machinery and equipment Total tangible assets Intangible assets Investments and other assets: Total investments and other assets 128,593 128,555 124,397 Total fixed assets 246,755 204,479 242,978 ¥356,379 ¥291,774 ¥347,499 Total assets Note: Figures of less than ¥1 million have been omitted. 3 YAMAHA CORPORATION—Non-Consolidated Basis Millions of yen FY2004 interim period (as of Sept. 30, 2003) FY2003 interim period (as of Sept. 30, 2002) FY2003 (as of Mar. 31, 2003) LIABILITIES Current liabilities: Notes payable ¥ Accounts payable Short-term loans 806 ¥ 1,253 24,518 26,867 ¥ 688 23,762 2,912 944 6,461 24,317 — 24,317 Current portion of long-term debt — 6,220 6,220 Corporate taxes payable 50 50 100 20,745 20,637 22,911 909 741 852 Convertible bonds scheduled for redemption within one year Accrued expenses Various reserves — — 1,264 Other current liabilities Reserve for subsidiary support 2,513 2,109 2,383 Total current liabilities 76,772 58,823 88,961 — 24,317 — Long-term liabilities: Convertible bonds Long-term debt 17,338 — 17,038 Deferred income taxes on land revaluation 10,160 10,684 10,169 Accrued employees’ retirement benefits 44,882 48,017 46,228 614 672 721 36,309 — 37,020 959 977 965 110,264 84,669 112,143 187,037 143,492 201,105 28,533 28,533 28,533 Capital reserve 40,052 26,924 40,052 Total capital surplus 40,052 26,924 40,052 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 4,159 4,159 4,159 Retained earnings 65,422 58,854 58,854 Unappropriated earnings 23,603 12,851 12,101 Total earned surplus 93,185 75,865 75,115 Reserve for land revaluation 2,533 15,457 2,426 Net unrealized holding gains on other securities 5,233 1,640 Treasury stock, at cost (195) Total shareholders’ equity Total liabilities and shareholders’ equity Note: Figures of less than ¥1 million have been omitted. 4 (139) 449 (183) 169,342 148,282 146,394 ¥356,379 ¥291,774 ¥347,499 YAMAHA CORPORATION—Non-Consolidated Basis (2) Non-Consolidated Statement of Operations FY2004 interim period (April 1, 2003– Sept. 30, 2003) FY2003 interim period (April 1, 2002– Sept. 30, 2002) FY2003 (April 1, 2002– Mar. 31, 2003) Millions of yen % Millions of yen % Millions of yen % Net sales ¥179,907 100.0 ¥172,098 100.0 ¥334,078 100.0 Cost of sales: 127,127 70.7 129,515 75.2 245,721 73.6 Gross profit 52,780 29.3 42,582 24.8 88,356 26.4 Unrealized profit 93 Total gross profit 52,874 29.4 42,602 24.8 88,480 26.4 34,107 19.0 32,002 18.6 66,583 19.9 Operating income 18,767 10.4 10,599 6.2 21,897 6.5 Non-operating income 1,536 0.9 1,125 0.6 1,661 0.5 540 0.3 727 0.4 1,340 0.4 Selling, general and administrative expenses: Non-operating expenses: Recurring profit 20 124 19,763 11.0 10,998 6.4 22,218 6.6 Other profit 113 0.0 210 0.1 382 0.1 Other loss 758 0.4 3,193 1.8 13,743 4.1 Income before income taxes and minority interests 19,118 10.6 8,015 4.7 8,857 2.6 Current income taxes (benefit) 50 0.0 50 0.0 100 0.0 Deferred income taxes (benefit) (220) (0.1) 296 0.2 1,051 0.3 7,669 4.5 7,706 2.3 Net income (loss) 19,288 Retained earnings at beginning of period 4,421 Reversal of reserve for land revaluation Interim dividends Retained earnings at end of period 5 10.7 4,557 4,557 (107) 623 869 — — 1,031 ¥ 23,603 ¥ 12,851 ¥ 12,101