For Immediate Release October 31, 2013 YAMAHA CORPORATION Outline of the Consolidated Financial Results through the Second Quarter (Six Months) of the Fiscal Year Ending March 31, 2014 (FY2014.3) and Performance Outlook for the Full Fiscal Year ■ Consolidated Performance through the Second Quarter (Six Months) Year-on-Year Increases in Net Sales and Operating Income Consolidated net sales through the second quarter of FY2014.3 increased ¥20.8 billion, or 11.8% from the same period of the previous fiscal year for all the segments excluding others segment, to ¥197.7 billion, due to sales growth of ¥23.5 billion resulting from foreign currency fluctuations. Consolidated operating income through the second quarter rose ¥6.9 billion, or 100.7% year on year, to ¥13.7 billion, thanks to a ¥6.7 billion increase due to foreign currency fluctuations. Along with the increase in operating income, consolidated ordinary income rose ¥7.4 billion, or 120.6% over the same period of the previous fiscal year, to ¥13.5 billion, and net income through the second quarter rose ¥9.2 billion, or 273.4%, to ¥12.5 billion. ■ Sales and Operating Income (Loss) by Business Segment Musical Instruments Sales of ¥126.9 billion (+10.4%) and Operating Income of ¥9.6 billion (+102.2%) Although piano sales in Japan were below the previous year, they remained brisk in North America. In addition, they increased thanks to positive foreign exchange impact. In the digital musical instrument business, sales of digital pianos increased, but portable keyboards showed a lackluster performance in Europe and emerging countries. In wind, string, & percussion instruments, wind instruments in North America and guitars in Japan, North America, and China remained robust. Revenues at music schools decreased slightly. Compared with the same period of the previous fiscal year, sales of this segment as a whole rose ¥11.9 billion, or 10.4%, to ¥126.9 billion, following an increase of ¥15.4 billion due to foreign currency fluctuations. Operating income increased ¥4.8 billion, or 102.2% year on year, to ¥9.6 billion, because foreign currency fluctuations boosted the income by ¥4.6 billion. 1 Audio Equipment Sales of ¥48.7 billion (+17.3%) and Operating Income of ¥2.6 billion (+14.7%) In the audio products business, sales expanded in Europe and emerging countries, and sales in North America also remained strong. Regarding professional audio equipment, sales in the commercial audio equipment market remained sluggish. Sales of network devices, such as routers and conference systems, increased in Japan, and commercial online karaoke equipment also increased thanks to expanded orders. Compared with the same period of the previous fiscal year, sales of this segment as a whole were up ¥7.2 billion, or 17.3%, to ¥48.7 billion, due to an increase of ¥7.5 billion resulting from foreign currency fluctuations. Operating income increased ¥0.3 billion, or 14.7% year on year, to ¥2.6 billion, due to an increase of ¥1.7 billion resulting from foreign currency fluctuations. Electronic Devices Sales of ¥10.1 billion (+28.5%) and Operating Income of ¥1.2 billion (compared with an operating loss of ¥0.9 billion in the same period of the previous fiscal year) In the semiconductor business, the sales increased due to the higher sales of magnetic sensors (electronic compasses) and audio codecs thanks to the increase in demand of smartphones. Compared with the same period of the previous fiscal year, sales for this segment as a whole increased ¥2.2 billion, or 28.5% year on year, to ¥10.1 billion. The segment was able to post a ¥1.2 billion operating income, compared with an operating loss of ¥0.9 billion year on year by slashing fixed costs and other factors along with increased sales. Others Sales of ¥11.9 billion (-4.2%) and Operating Income of ¥0.3 billion (-58.5%) Sales of automobile interior wood components through the second quarter declined because, in the first quarter of the previous fiscal year, great demand was generated due to model changes of our customers. Orders for factory automation (FA) equipment declined in Japan and sales decreased. In the golf products business, sales grew in South Korea and other overseas markets but struggled in Japan, resulting in a decrease. Sales of the resort business in Japan were almost the same level as the previous fiscal year. As a consequence, sales of this segment as a whole dropped ¥0.5 billion, or 4.2%, to ¥11.9 billion. Operating income decreased ¥0.4 billion, or 58.5% year on year, to ¥0.3 billion. 2 ■ Consolidated Forecast for the Full Fiscal Year (FY2014.3) Previous Forecast Revised Upward for Operating Income, Ordinary Income, and Net Income The Company’s previous forecast, announced on July 31, 2013, for consolidated performance for the full fiscal year ending March 31, 2014 called for net sales of ¥408.0 billion (+11.2% year on year), operating income of ¥20.0 billion (+117.0%), ordinary income of ¥18.5 billion (+115.6%), and net income of ¥16.5 billion (+300.3%). The current outlook for consolidated net sales remains unchanged. The Company has taken account of the estimated ¥1 billion adverse effect on operating income of the strike at the guitar manufacturing subsidiary in Indonesia. However, as a result of the expected rise in income due to a revision of the outlook for foreign currency exchange rates and other factors, income indicators have been revised upward. The current outlook is for operating income of ¥22.0 billion (+138.7%), ordinary income of ¥20.5 billion (+138.9%), and net income of ¥18.0 billion (+336.6%). Also, please note that the outlook for net income takes account of business structural reform expenses of ¥0.75 billion, which have been accounted for as an extraordinary loss, in a musical instruments sales subsidiary in Japan. Notes: 1. The assumed foreign exchange rates for the consolidated forecast have been revised only between the Japanese yen and the Euro from ¥125/EUR to ¥130/EUR (not revised for ¥95/USD). 2. Sales and income/loss figures in the text above have, in principle, been rounded to the nearest ¥0.1 billion. Figures in parentheses are changes from the same period of the previous fiscal year, except as indicated. 3. The name of the AV/IT business segment was changed to “audio equipment” business segment as of the first quarter of FY2014.3. In addition, the segment classification was reviewed, and “professional audio equipment” business was moved from the “musical instruments” segment to the “audio equipment” segment. Please note that the amount and percentage change on a year-on-year basis were calculated using the classification method after the change. 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 Second Quarter of FY2014.3 Performance Outline October 31, 2013 (billions of yen) Six Months Initial Projections Six Months Results Six Months Results Ended Sept. 30, 2013 Ended Sept. 30, 2012 Initial Projections Projections Results (Previous Year) (Full Year) (announced on July 31, 2013) (Full Year) (Previous Year) (announced on July 31, 2013) Net Sales Japan Sales Overseas Sales Operating Income Ordinary Income Net Income Currency Exchange Rate (Settlement Rate) (=yen) ROE (*1) ROA (*2) Earnings per Share Capital Expenditure (Depreciation) R&D Expenditure Cash Flows Operating Activities Investing Activities Total Inventories at End of Period Number of Employees Japan Overseas Total (*3) （Changes from the changes in the scope of consolidation） Temporary Staff (average during the period) FY2014.3 FY2014.3 FY2013.3 FY2014.3 FY2014.3 FY2013.3 196.5 197.7 176.8 408.0 408.0 366.9 81.3 (41.4%) 82.3 (41.6%) 84.4 (47.8%) 165.8 (40.6%) 166.2 (40.7%) 165.8 (45.2%) 115.2 (58.6%) 115.4 (58.4%) 92.4 (52.2%) 242.2 (59.4%) 241.8 (59.3%) 201.2 (54.8%) 11.5 (5.9%) 13.7 (6.9%) 6.8 (3.9%) 20.0 (4.9%) 22.0 (5.4%) 9.2 (2.5%) 11.0 (5.6%) 13.5 (6.8%) 6.1 (3.5%) 18.5 (4.5%) 20.5 (5.0%) 8.6 (2.3%) 10.0 (5.1%) 12.5 (6.3%) 3.3 (1.9%) 16.5 (4.0%) 18.0 (4.4%) 4.1 (1.1%) (*5) 96/US$ 98/US$ 80/US$ 96/US$ 97/US$ 82/US$ 123/EUR 125/EUR 105/EUR 124/EUR 127/EUR 103/EUR 8.6% 10.6% 3.4% 7.0% 7.5% 1.9% 5.0% 6.1% 1.9% 4.2% 4.5% 1.1% 51.6 yen 64.6 yen 17.3 yen 85.2 yen 93.0 yen 21.3 yen 7.6 4.9 5.8 14.8 12.0 13.8 (6.2) 6.0 (5.4) (13.7) (13.1) (11.6) 11.8 10.7 11.0 24.0 23.0 22.1 3.7 -4.7 -1.0 89.2 4.3 -2.5 1.8 90.5 -4.6 -5.8 -10.5 83.7 26.3 -11.8 14.5 79.4 26.5 -7.3 19.2 80.3 7.8 -12.6 -4.9 82.0 7,100 13,100 20,200 6,991 12,901 19,892 7,538 12,551 20,089 7,000 13,200 20,200 6,900 13,200 20,100 7,143 12,545 19,688 (50) (46) (169) (55) (50) (173) 8,900 8,604 8,598 8,200 8,200 8,198 Sales by Business Segment Musical Instruments (*4) Audio Equipment (*4) Electronic Devices Others Operating Income by Business Segment Musical Instruments (*4) Audio Equipment (*4) Electronic Devices Others 126.5 48.5 9.5 12.0 7.5 3.0 0.5 0.5 (64.4%) (24.7%) (4.8%) (6.1%) 126.9 48.7 10.1 11.9 (64.2%) (24.7%) (5.1%) (6.0%) 115.0 41.5 7.9 12.4 9.6 2.6 1.2 0.3 (65.0%) (23.5%) (4.5%) (7.0%) 258.0 106.0 19.0 25.0 14.0 5.5 0 0.5 4.7 2.3 -0.9 0.7 (63.2%) (26.0%) (4.7%) (6.1%) 258.5 105.0 20.0 24.5 16.0 5.0 0.5 0.5 (63.4%) (25.7%) (4.9%) (6.0%) 235.5 92.6 15.0 23.8 (64.2%) (25.2%) (4.1%) (6.5%) 6.4 4.6 -2.0 0.3 Non-Consolidated Basis Net Sales Operating Income Ordinary Income Net Income 119.7 7.0 12.7 14.0 (5.8%) (10.6%) (11.7%) 124.7 1.9 5.7 4.8 (1.5%) (4.5%) (3.9%) 231.4 -4.2 6.2 5.8 ＊1, 2 The ROE and ROA for the interim period are calculated on an annually adjusted basis. ＊3 Number of Employees = Number of full-time staff at end of the period ＊4 Effective in the first quarter of FY2014.3, AV/IT segment was renamed audio equipment segment, and the PA equipment business, which was previously reported as part of the musical instruments segment has now been reported as part of the audio equipment business. The above figures of FY2013.3 reflect the new segments accordingly. ＊5 2H Currency Exchange Rates US$=95JPY EUR=130JPY 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. (2.7%) (2.5%)