FY2003 Performance Outline YAMAHA CORPORATION (billions of yen) Results FY2002 Initial Projection (Nov.15,2001) FY2003 Results Forecast FY2003 FY2004 Net Sales 504.4 530.0 524.7 547.0 JAPAN Sales 290.0 (57.5%) 303.2 (57.2%) 312.1 (59.5%) 311.6 (57.0%) Overseas Sales 214.4 (42.5%) 226.8 (42.8%) 212.6 (40.5%) 235.4 (43.0%) Operating Income 11.0 (2.1%) 24.5 (4.6%) 32.0 (6.1%) 32.0 (5.9%) Recurring Profit 7.6 (1.5%) 25.0 (4.7%) 33.8 (6.4%) 35.0 (6.4%) Net Income -10.3 (-2.0%) 18.5 (3.5%) 17.9 (3.4%) 29.0 (5.3%) Currency Exchange 124/US$ 121/US$ 122/US$ 120/US$ Rate (=yen) 107/EUR 115/EUR 116/EUR 125/EUR ROE(%) -5.2% 8.9% 8.6% 12.7% ROA(%) -2.0% 3.6% 3.5% 5.7% Earnings per share -49.7yens 89.7yens 86.7yens 140.7yens Capital Expenditure 16.6 18.0 16.9 24.0 Depreciation 18.7 18.7 17.6 19.5 R&D Expenditure 22.5 23.0 22.4 22.5 Loans & Equivalents（*1） 55.1 52.9 46.0 35.1 Free Cash Flow Operating Activities 29.0 26.0 33.0 49.2 Investing Activities -10.4 -20.5 -21.6 -26.0 Total 18.6 5.5 11.4 23.2 Inventories at year-end 84.3 80.0 80.1 73.1 No. of Employees JAPAN 11,846 11,940 11,887 12,019 Overseas 11,174 11,620 11,676 12,370 Total（*2） 23,020 23,560 23,563 24,389 (No of newly consolidated) (145) (153) (645) Sales by Business segment 297.5 (56.1%) 292.6 (55.8%) 302.0 (55.2%) Musical Instruments 286.9 (56.9%) ＡＶ・ＩＴ 95.2 (18.9%) 91.3 (17.2%) 83.7 (16.0%) 90.0 (16.5%) Life Related 45.7 (9.1%) 46.6 (8.8%) 46.0 (8.8%) 47.5 (8.7%) Electronic Equipment 36.6 (7.3%) 52.7 (9.9%) 60.6 (11.5%) 61.5 (11.2%) Recreation 21.6 (4.3%) 21.6 (4.1%) 20.9 (4.0%) 21.5 (3.9%) Others 18.4 (3.6%) 20.3 (3.8%) 20.9 (4.0%) 24.5 (4.5%) Operating Income by Business segment Musical Instruments 4.7 9.8 9.8 12.0 AV・IT 3.0 3.5 3.2 3.7 Life Related 1.0 0.9 0.5 0.8 Electronic Equipment 4.4 10.7 19.3 15.7 Recreation -1.7 -0.8 -1.1 -0.5 Others -0.4 0.4 0.4 0.3 Non Consolidated Basis Net Sales 316.7 330.0 334.0 338.0 11.0 (3.3%) 21.8 (6.5%) 14.5 (4.3%) Operating Income 5.6 (1.8%) Recurring Profit 6.5 (2.2%) 11.5 (3.5%) 22.1 (6.6%) 14.0 (4.1%) Net Income -25.3 (-8.0%) 8.0 (2.4%) 7.7 (2.3%) 12.0 (3.6%) ＊1 Loans & Equivalents＝Loans(Short term , Long term)＋Convertible Bonds－Cash & Bank Deposit ＊2 No. of Employees ＝No. of Full-time Staff at year-end＋Average No. of Temp. Staff Forecast 2004 (Interim period) First Half 269.0 158.5 (58.9%) 110.5 (41.1%) 18.5 (6.9%) 19.5 (7.2%) 17.0 (6.3%) 120/US$ 125/EUR 7.6% 3.2% 82.5yens 13.0 9.4 11.3 36.6 12.9 -12.8 0.1 85.9 12,269 13,507 25,776 (647) 149.0 (55.4%) 39.5 (14.7%) 24.0 (8.9%) 33.0 (12.3%) 10.5 (3.9%) 13.0 (4.8%) 7.0 1.5 0.8 9.5 -0.4 0.1 174.0 11.0 11.0 10.0 (6.3%) (6.3%) (5.7%)