Fact Book

FACTBOOK 2003
Year Ended March 31, 2003
c1
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 Employees
Yamaha strives to create an open atmosphere where employees
can realize goals, be given opportunities, and be evaluated fairly. Yamaha will be an organization where employees can demonstrate their abilities fully, have confidence, and earn 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
17
18
20
21
22
24
Cash Flows
Per Share Data
Balance Sheets
Statements of Operations
Statements of Cash Flows
Shareholder Information
Network
FINANCIAL HIGHLIGHTS
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
563,751
527,897
519,104
504,406
524,763
4,365.75
(97)
8,082
23,001
11,043
32,043
266.58
Net income (loss)
(15,879)
(40,777)
13,320
(10,274)
17,947
149.31
Total assets
532,852
543,088
522,486
509,663
512,716
4,265.52
Total shareholders’ equity
214,896
221,750
196,733
201,965
214,471
1,784.28
Interest-bearing liabilities
97,318
88,167
103,304
96,166
90,436
752.38
Net income (loss)
per share (Yen)
(76.89)
(197.45)
64.50
(49.75)
86.65
0.72
21,599
22,277
23,020
23,563
Net sales
Operating income (loss)
Number of employees
Throughout this fact book, an exchange rate of US$1=¥120.20, the approximate rate prevailing on March 31, 2003, was used for convenience only.
1
SEGMENT INFORMATION
Musical Instruments
Sales
Operating Income
Percentage of Net Sales
(Millions of Yen)
(Millions of Yen)
(%)
100
35,000
450,000
408,025
30,694
387,004
27,077
72.3
292,647
284,901 286,920
73.3
56.9
54.8
55.7
12,290
9,792
4,738
AV/IT
0
0
0
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
Including AV/IT
AV/IT
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
408,025
387,004
284,901
286,920
292,647
2,434.67
30,694
27,077
12,290
4,738
9,792
81.46
Capital expenditure
9,936
7,846
6,117
8,837
9,067
75.43
Depreciation expenses
9,608
9,920
7,224
8,373
8,001
66.56
16,133
11,195
11,521
11,834
98.45
Sales
Operating income
R&D expenses
Note: Figures in 1999/3~2000/3 include AV/IT.
2
AV/IT
Sales
Operating Income
Percentage of Net Sales
(Millions of Yen)
(Millions of Yen)
(%)
150,000
6,000
100,197
30
3,904
95,214
19.3
83,670
18.9
3,250
3,037
15.9
0
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2001/3
2002/3
2003/3
2003/3
100,197
95,214
83,670
696.09
Operating income
3,904
3,037
3,250
27.04
Capital expenditure
1,587
2,133
1,503
12.50
Depreciation expenses
1,783
1,877
1,807
15.03
R&D expenses
4,970
5,096
5,194
43.21
Sales
Note: Figures in 1999/3~2000/3 are included in Musical Instruments.
3
2000/3
Lifestyle-Related Products
Sales
Operating Income (Loss)
Percentage of Net Sales
(Millions of Yen)
(Millions of Yen)
(%)
60,000
46,865
46,944
44,841
20
2,000
1,046
45,714
892
46,031
461
0
9.0
8.8
-995
9.1
8.8
7.9
-2,474
0
1999/3 2000/3 2001/3 2002/3 2003/3
-3,000
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
Sales
44,841
46,865
46,944
45,714
46,031
382.95
Operating income (loss)
(2,474)
(995)
892
1,046
461
3.84
Capital expenditure
1,940
1,683
991
851
911
7.58
Depreciation expenses
1,838
1,518
1,554
1,505
1,002
8.34
1,517
1,364
1,282
1,319
10.97
R&D expenses
4
Electronic Equipment and Metal Products
Sales
Operating Income (Loss)
Percentage of Net Sales
(Millions of Yen)
(Millions of Yen)
(%)
19,282
100,000
73,226
20
20,000
6,654
4,351
60,554
0
55,880
12.9
11.5
10.5
43,221
36,628
8.3
7.3
-18,113
0
1999/3 2000/3 2001/3 2002/3 2003/3
-28,421
0
-30,000
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
Sales
73,226
55,880
43,221
36,628
60,554
503.78
Operating income (loss)
(28,421)
(18,113)
6,654
4,351
19,282
160.42
Capital expenditure
21,231
6,968
2,834
1,921
3,320
27.62
Depreciation expenses
22,315
14,365
2,653
3,068
2,845
23.67
4,503
3,135
3,853
3,188
26.52
R&D expenses
5
Recreation
Sales
Operating Loss
Percentage of Net Sales
(Millions of Yen)
(Millions of Yen)
(%)
40,000
0
10
-781
-1,110
-1,240
23,324
-1,283
23,484
21,771
21,590
-1,741
20,903
4.4
4.1
4.1
0
1999/3 2000/3 2001/3 2002/3 2003/3
4.3
4.0
-4,000
0
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
Sales
23,324
23,484
21,771
21,590
20,903
173.90
Operating loss
(1,240)
(781)
(1,283)
(1,741)
(1,110)
(9.23)
Capital expenditure
1,744
1,403
1,392
1,867
728
6.06
Depreciation expenses
3,085
3,009
2,959
2,893
2,932
24.39
0
0
2
0
0
R&D expenses
6
Others
Sales
Operating Income (Loss)
Percentage of Net Sales
(Millions of Yen)
(Millions of Yen)
(%)
30,000
2,000
10
1,534
22,067
20,956
18,339
543
14,333
14,663
365
204
4.2
0
4.0
3.6
2.5
2.7
-389
0
1999/3 2000/3 2001/3 2002/3 2003/3
-1,000
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
Sales
14,333
14,663
22,067
18,339
20,956
174.34
1,534
204
543
(389)
365
3.04
Capital expenditure
938
927
1,846
1,015
1,352
11.25
Depreciation expenses
859
798
1,135
1,050
996
8.29
435
494
785
904
7.52
Operating income (loss)
R&D expenses
7
PERFORMANCE TRENDS
Net Sales/Overseas Sales Ratio
Cost of Sales/Cost of Sales Ratio
(Millions of Yen/%)
(Millions of Yen/%)
650,000
650,000
563,751
527,897
519,104
524,763
504,406
71.4
70.4
67.5
66.7
64.4
402,240
371,757
346,200 340,412 338,307
42.8
41.7
40.6
42.5
40.5
0
1999/3 2000/3 2001/3 2002/3 2003/3
Overseas sales ratio
0
1999/3 2000/3 2001/3 2002/3 2003/3
Cost of sales ratio
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
563,751
527,897
519,104
504,406
524,763
4,365.75
322,539
308,042
308,539
289,951
312,129
2,596.75
North America
96,203
96,005
91,720
93,524
89,728
746.49
Europe
82,517
73,397
72,957
73,458
77,185
642.14
Other
62,491
50,452
45,886
47,472
45,721
380.37
42.8
41.7
40.6
42.5
40.5
Cost of sales
402,240
371,757
346,200
340,412
338,307
2,814.53
Gross profit
161,511
156,140
172,904
163,994
186,456
1,551.21
Net sales
Japan
Overseas sales ratio (%)
8
SG&A Expenses/
SG&A Expenses to Net Sales
Operating Income (Loss)/
Operating Income (Loss) to Net Sales
Net Income (Loss)/
Net Income (Loss) to Net Sales
(Millions of Yen/%)
(Millions of Yen/%)
(Millions of Yen/%)
30,000
40,000
200,000
32,043
17,947
161,608
148,057 149,902
13,320
152,951 154,413
23,001
3.4
2.6
0
-2.0
28.7
28.0
28.9
30.3
29.4
11,043
8,082
-0.0
6.1
-2.8
-10,274
4.4
-15,879
2.2
1.5
-7.7
0
-97
-40,777
SG&A expenses to net sales
-50,000
-20,000
0
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
Net income (loss) to net sales
Operating income (loss) to net sales
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
161,608
148,057
149,902
152,951
154,413
1,284.63
Personnel expenses
75,539
65,355
65,402
67,265
68,778
572.20
Advertising & promotion
22,879
20,811
22,052
22,455
21,740
180.87
(97)
8,082
23,001
11,043
32,043
266.58
(15,879)
(40,777)
13,320
(10,274)
17,947
149.31
SG&A expenses
Operating income (loss)
Net income (loss)
9
Capital Expenditure
Depreciation Expenses
R&D Expenses
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
40,000
40,000
40,000
36,446
34,342
28,635
22,588
22,539
22,441
21,158
20,700
18,767
18,544
16,627
17,310
16,883
17,586
14,770
0
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
Capital expenditure
34,342
18,544
14,770
16,627
16,883
140.46
Depreciation expenses
36,446
28,635
17,310
18,767
17,586
146.31
R&D expenses
20,700
22,588
21,158
22,539
22,441
186.70
10
PROFITABILITY AND GROWTH
Return on Equity (ROE)
Return on Assets (ROA)
(%)
(%)
10
10
8.6
6.4
3.5
2.5
0
0
-2.0
-2.9
-5.2
-7.1
-7.6
-18.7
-20
1999/3 2000/3 2001/3 2002/3 2003/3
-20
1999/3 2000/3 2001/3 2002/3 2003/3
%
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
Return on equity (ROE)
(7.1)
(18.7)
6.4
(5.2)
8.6
Return on assets (ROA)
(2.9)
(7.6)
2.5
(2.0)
3.5
ROE = net income / shareholders’ equity (yearly average) x 100
ROA = net income / total assets (yearly average) x 100
11
SOUNDNESS AND STABILITY
Shareholders’ Equity Ratio
Interest Coverage
Current Ratio
(%)
(Times)
(%)
50
40.3
25
200
41.8
40.8
19.97
39.6
37.7
146.1
139.8
132.2
112.4
115.5
8.82
5.07
4.46
1.26
0
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
40.3
40.8
37.7
39.6
41.8
3,449
2,968
3,014
2,911
2,015
16.76
(97)
8,082
23,001
11,043
32,043
266.58
Equity in earnings of unconsolidated
subsidiaries and affiliates
3,366
4,209
2,434
2,993
7,608
63.29
Interest and dividends received
1,070
957
1,137
735
582
4.84
1.26
4.46
8.82
5.07
19.97
Current assets
212,911
205,979
231,872
211,140
221,089
1,839.34
Current liabilities
189,386
178,281
175,371
144,498
158,148
1,315.71
112.4
115.5
132.2
146.1
139.8
Shareholders’ equity ratio (%)
Interest paid
Operating income (loss)
Interest coverage (Times)
Current ratio (%)
2003/3
Interest coverage = (operating income + interest and dividends received + equity in earnings of unconsolidated subsidiaries and affiliates) / interest paid
12
Interest-Bearing Liabilities/
Debt to Equity Ratio
Fixed Assets to Capital Ratio
(%)
(Millions of Yen/Times)
200
150,000
147.8
147.7
103,304
97,318
131.8
96,166
136.0
131.9
90,436
88,167
0.53
0.48
0.45
0.40
0.42
0
0
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
Debt to equity ratio
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
Shareholders’ equity
Interest-bearing liabilities
Debt to equity ratio (Times)
Fixed assets
Fixed assets to capital ratio (%)
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
214,896
221,750
196,733
201,965
214,471
1,784.28
97,318
88,167
103,304
96,166
90,436
752.38
0.45
0.40
0.53
0.48
0.42
283,202
292,460
290,614
298,522
291,627
131.8
131.9
147.7
147.8
136.0
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
13
2,426.18
EFFICIENCY
Total Assets Turnover
Trade Receivables Turnover
(Times)
(Times)
1.5
8
6.95
6.40
1.05
6.55
6.52
6.40
1.03
0.98
0.97
0.98
0
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
Net sales
563,751
527,897
519,104
504,406
524,763
4,365.75
Total assets
532,852
543,088
522,486
509,663
512,716
4,265.52
1.05
0.98
0.97
0.98
1.03
87,627
73,482
85,678
71,844
79,130
6.40
6.55
6.52
6.40
6.95
Total assets turnover (Times)
Trade receivables
Trade receivables turnover (Times)
Total assets turnover = net sales / total assets (yearly average)
Trade receivables turnover = net sales / trade receivables (yearly average)
14
658.32
Inventories Turnover
Trade Payables Turnover
(Times)
(Times)
8
15
13.75
6.04
12.12
6.38
6.27
11.76
5.93
5.55
10.32
10.25
0
1999/3 2000/3 2001/3 2002/3 2003/3
0
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
Inventories
91,095
77,416
97,664
84,264
80,144
666.76
Finished products
56,743
50,136
63,893
54,775
51,116
425.26
Raw materials & work in process
34,352
27,280
33,771
29,489
29,028
241.50
6.04
6.27
5.93
5.55
6.38
49,969
52,335
48,924
36,880
39,462
12.12
10.32
10.25
11.76
13.75
Inventories turnover (Times)
Trade payables
Trade payables turnover (Times)
Inventories turnover = net sales / inventories (yearly average)
Trade payables turnover = net sales / trade payables
15
328.30
CASH FLOWS
Cash Flows from Operating Activities
Free Cash Flow Margin
(Millions of Yen)
(%)
5
40,000
33,052
4.41
29,016
3.59
2.17
10,851
0
1.05
0
-2.80
-9,089
-5
-20,000
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
Cash flows from
operating activities
10,851
(9,089)
29,016
33,052
274.98
Cash flows from
investing activities
12,474
(5,441)
(10,437)
(21,645)
(180.07)
Free cash flow
23,325
(14,530)
18,579
11,407
94.90
527,897
519,104
504,406
524,763
4,365.75
4.41
(2.80)
3.59
2.17
Net sales
Free cash flow
margin (%)
Free cash flow margin = free cash flow / net sales x 100
16
PER SHARE DATA
Net Income (Loss) per Share
Shareholders’ Equity per Share
Dividends per Share
(Yen)
(Yen)
(Yen)
86.65
100
1,500
20
64.50
0
1,040.56
1,073.75
1,040.06
978.15
952.62
-49.75
10
-76.89
8
7
6
3
-197.45
-250
1999/3 2000/3 2001/3 2002/3 2003/3
0
0
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
Yen
U.S. Dollars
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
2003/3
Net income (loss) per share
(76.89)
(197.45)
64.50
(49.75)
86.65
0.72
1,040.56
1,073.75
952.62
978.15 1,040.06
8.65
6
3
7
8
10
0.08
1,239
619
1,445
1,651
2,063
17.16
—
—
14.9
—
27.1
Shareholders’ equity per share
Dividends per share
Dividends paid (Millions of Yen)
Dividend payout ratio (%)
Payout ratio = dividends paid / net income (non-consolidated) x 100
17
BALANCE SHEETS
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2002/3
2003/3
2003/3
41,074
44,485
370.09
356
1,370
11.40
Notes and accounts receivable
74,519
81,755
680.16
Allowance for doubtful accounts
(2,675)
(2,625)
(21.84)
Inventories
84,264
80,144
666.76
Deferred income taxes
9,332
10,489
87.26
Prepaid expenses and other current assets
4,267
5,469
45.50
211,140
221,089
1,839.34
Land
78,069
76,835
639.23
Buildings and structures
70,745
67,166
558.79
Machinery and equipment
35,440
33,639
279.86
1,003
1,082
9.00
185,261
178,724
1,486.89
76,307
77,622
645.77
Long-term loans receivable
1,733
694
5.77
Lease deposits
5,087
5,013
41.71
26,384
24,663
205.18
173
107
0.89
3,573
4,800
39.93
Total investments and other assets
113,260
112,902
939.28
Total Assets
509,663
512,716
4,265.52
ASSETS
Current assets:
Cash and bank deposits
Marketable securities
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
Deferred income taxes
Excess of cost over net assets acquired
Other assets
18
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2002/3
2003/3
2003/3
47,871
27,078
225.27
—
24,317
202.30
4,363
10,090
83.94
Notes and accounts payable
36,880
39,462
328.30
Accrued expenses
41,987
42,501
353.59
Income taxes payable
1,224
3,101
25.80
Advances received
3,742
3,428
28.52
65
92
0.77
8,360
8,074
67.17
144,498
158,148
1,315.71
Convertible bonds
24,317
—
—
Long-term debt
19,615
28,951
240.86
316
266
2.21
Deferred income taxes on land revaluation
14,638
13,577
112.95
Accrued employees’ retirement benefits
59,074
53,988
449.15
LIABILITIES
Current liabilities:
Short-term loans
Current portion of convertible bonds
Current portion of long-term debt
Deferred income taxes
Other current liabilities
Total current liabilities
Long-term liabilities:
Deferred income taxes
Directors’ retirement benefits
859
965
8.03
38,472
36,848
306.56
1,191
1,572
13.08
Total long-term liabilities
158,486
136,171
1,132.87
MINORITY INTERESTS
4,712
3,925
32.65
Common stock
28,533
28,533
237.38
Additional paid-in capital
26,924
—
—
Reserve for land revaluation
16,482
—
—
157,589
—
—
Long-term deposits received
Other long-term liabilities
SHAREHOLDERS’ EQUITY
Retained earnings
Capital surplus
—
40,052
333.21
Earned surplus
—
162,344
1,350.62
Reserve for land revaluation
—
16,152
134.38
766
378
3.14
Translation adjustments
(28,280)
(32,753)
(272.49)
Total shareholders’ equity
202,014
214,707
1,786.25
(49)
(236)
(1.96)
Total shareholders’ equity
201,965
214,471
1,784.28
Total Liabilities, Minority Interests and Shareholders’ Equity
509,663
512,716
4,265.52
Net unrealized holding gains/losses on other securities
Treasury stock, at cost
19
STATEMENTS OF OPERATIONS
Millions of
U.S. Dollars
Millions of Yen
Fiscal Year Ended:
2002/3
2003/3
2003/3
Net sales
504,406
524,763
4,365.75
Cost of sales
340,412
338,307
2,814.53
Gross profit
163,994
186,456
1,551.21
Selling, general and administrative expenses
152,951
154,413
1,284.63
11,043
32,043
266.58
735
582
4.84
Interest expense
(2,911)
(2,015)
(16.76)
Sales rebates
(4,477)
(4,347)
(36.16)
(352)
(1,015)
(8.44)
3,694
—
—
(14,857)
(7,746)
(64.44)
Loss on sale or disposal of properties, net
(1,672)
(974)
(8.10)
Equity in earnings of unconsolidated subsidiaries and affiliates
2,993
7,608
63.29
Structural reform expenses
—
(2,271)
(18.89)
Other, net
18
749
6.23
(16,829)
(9,429)
(78.44)
(5,784)
22,612
188.12
Current
1,507
3,962
32.96
Deferred
2,429
65
0.54
Total income taxes
3,936
4,027
33.50
Income (loss) before minority interests
(9,723)
18,583
154.60
Minority interests
551
636
5.29
Net Income (Loss)
(10,274)
17,947
149.31
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
Total other income (expenses)
Income (loss) before income taxes and minority interests
Income taxes:
20
STATEMENTS OF CASH FLOWS
Millions of Yen
Millions of
U.S. Dollars
Fiscal Year Ended:
2002/3
2003/3
2003/3
Cash flows from operating activities:
Income (loss) before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Loss from revaluation of investment securities
Decrease in employees’ retirement benefits, net of payments
Interest and dividend income
Interest expense
Equity in earnings of unconsolidated subsidiaries and affiliates
Gain on sale of investment securities
Loss on sale or disposal of properties, net
Net loss on foreign exchange
Structural reform expenses
Decrease (increase) in accounts and notes receivable—trade
Decrease in inventories
Increase (decrease) in accounts and notes payable—trade
Other, net
Subtotal
Interest and dividends received
Interest paid
Income taxes paid, net of payment
Net cash provided by operating activities
(5,784)
18,919
(507)
14,857
(8,210)
(736)
2,911
(2,993)
(3,667)
1,672
63
—
18,794
18,532
(15,715)
(4,775)
33,360
746
(2,918)
(2,171)
29,016
22,612
17,699
395
7,746
(5,150)
(583)
2,015
(7,608)
—
974
242
1,509
(8,509)
3,233
2,894
(1,413)
36,061
1,181
(2,067)
(2,123)
33,052
188.12
147.25
3.29
64.44
(42.85)
(4.85)
16.76
(63.29)
—
8.10
2.01
12.55
(70.79)
26.90
24.08
(11.76)
300.01
9.83
(17.20)
(17.66)
274.98
Cash flows from investing activities:
Purchases of properties
Proceeds from sale of properties
Purchases of investment securities
Proceeds from sale of investment securities
Other, net
Net cash used in investing activities
(14,876)
888
(858)
4,074
336
(10,437)
(15,730)
2,674
(6,541)
187
(2,235)
(21,645)
(130.87)
22.25
(54.42)
1.56
(18.59)
(180.07)
Cash flows from financing activities:
Decrease in short-term loans
Proceeds from long-term debt
Repayments of long-term debt
Cash dividends paid
Cash dividends paid to minority shareholders
Repayments of resort member deposits
Purchases of treasury stock
Other, net
Net cash used in financing activities
(13,241)
8,178
(5,665)
(1,652)
(468)
—
—
(31)
(12,880)
(20,887)
18,908
(3,065)
(1,857)
(268)
(1,297)
(133)
19
(8,582)
(173.77)
157.30
(25.50)
(15.45)
(2.23)
(10.79)
(1.11)
0.16
(71.40)
1,122
6,821
32,725
(504)
2,319
40,571
(4.19)
19.29
337.53
1,025
40,571
85
42,976
0.71
357.54
Effect of exchange rate changes
on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents arising from
inclusion of subsidiaries in consolidation
Cash and Cash Equivalents at End of Year
21
SHAREHOLDER INFORMATION
Share Price at the End
of Fiscal Year
Trading Volume
(Million Shares)
(Yen)
250
2,500
148
1,335
1,318
1,254
122
114
107
912
88
832
0
0
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3 2000/3 2001/3 2002/3 2003/3
Yen
Fiscal Year Ended:
1999/3
2000/3
2001/3
2002/3
2003/3
Share price at the end of fiscal year
1,254
832
1,318
912
1,335
Share price—high
1,429
1,609
1,475
1,390
1,399
Share price—low
1,010
620
710
745
857
88
114
122
107
148
Trading volume (Million shares)
22
Dividend Yield
Price to Earnings Ratio
Price to Book Value Ratio
(%)
(Times)
(Times)
3
50
2
1.38
1.28
1.21
20.4
0.93
15.4
0.88
0.77
0.75
0.53
0.48
0.36
0
1999/3 2000/3 2001/3 2002/3 2003/3
0
0
1999/3 2000/3 2001/3 2002/3 2003/3
Fiscal Year Ended:
1999/3 2000/3 2001/3 2002/3 2003/3
1999/3
2000/3
2001/3
2002/3
2003/3
0.48
0.36
0.53
0.88
0.75
—
—
20.4
—
15.4
1.21
0.77
1.38
0.93
1.28
Number of shares issued (Thousand shares)
206,523
206,523
206,523
206,523
206,523
Market capitalization
at the end of fiscal year (Millions of Yen)
258,980
171,827
272,198
188,349
275,709
14.8
18.9
22.5
25.2
20.5
Dividend yield (%)
Price to earnings ratio (Times)
Price to book value ratio (Times)
Percentage of shares owned
by foreign investors (%)
23
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 Nagoya Co., Ltd.
Yamaha Music Hamamatsu 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 Sound Technologies Inc.
Yamaha Music Craft Corporation
Yamaha Hall Co., Ltd.
Yamaha Piano Service Co., Ltd.
Yamaha Music Communications Co., Ltd.
Music Lease Corporation
MUSIC E-NET Inc.
AV/IT
YIS Corporation
D.S. Corporation
Lifestyle-Related Products
Yamaha Livingtec Corporation
Yamaha Living Products Corporation
Joywell Home Corporation
Electronic Equipment and Metal Products
Yamaha Kagoshima Semiconductor Inc.
Yamaha Metanix Corporation
Recreation
Kiroro Development Corporation
Haimurubushi Corporation
Katsuragi Corporation
Toba International Hotel Corporation
Tsumagoi Corporation
Nemunosato Corporation
Kiroro Associates Corporation
24
Others
Yamaha Fine Technologies Co., Ltd.
Yamaha Credit Corporation
Yamaha Insurance Service Co., Ltd.
Yamaha Business Support Corporation
Companies Accounted for Using the Equity Method
Yamaha Motor Co., Ltd.
KORG Inc.
YAMAHA’s Overseas Network
American Region
Yamaha Corporation of America
Yamaha Electronics Corporation, U.S.A.
Yamaha Exporting, Inc.
Yamaha Music Manufacturing, Inc.
Yamaha Musical Products, Inc.
Yamaha Music InterActive Inc.
YMH Digital Music Publishing LLC.
Yamaha Canada Music Ltd.
Yamaha de México, S.A. de C.V.
Yamaha Music Latin America, S.A.
Yamaha Musical do Brasil Ltda.
Asia/Oceania Region
Yamaha KHS Music Co., Ltd.
Taiwan Yamaha Musical Inst. Mfg. Co., Ltd.
Kaohsiung Yamaha Co., Ltd.
Yamaha Music & Electronics (China) Co., Ltd.
Tianjin Yamaha Electronic Musical Instruments, Inc.
Yamaha Trading (Shanghai) Co., Ltd.
Yamaha Electronics Trading (Shanghai) Co., Ltd.
Guangzhou Yamaha-Pearl River Piano Inc.
Xiaoshan Yamaha Musical Instruments Co., Ltd.
Yamaha Electronics (Suzhou) Co., Ltd.
Yamaha Music Korea Ltd.
Yamaha Music (Asia) Pte., Ltd.
Yamaha Electronics Asia Pte., Ltd.
Yamaha Music (Malaysia) Sdn. Bhd.
Yamaha Electronics Manufacturing Malaysia Sdn. Bhd.
PT. Yamaha Music Indonesia (Distributor)
PT. Yamaha Indonesia
PT. Yamaha Music Manufacturing Indonesia
PT. Yamaha Music Manufacturing Asia
PT. Yamaha Musical Products Indonesia
PT. Yamaha Electronics Manufacturing Indonesia
Siam Music Yamaha Co., Ltd.
Yamaha Music Australia Pty., Ltd.
Yamaha Music Gulf FZE
European Region
Yamaha Music Holding Europe G.m.b.H.
Yamaha Music Central Europe G.m.b.H.
Yamaha Elektronik Europa G.m.b.H.
Yamaha-Kemble Music (U.K.) Ltd.
Yamaha Electronics (U.K.) Ltd.
Kemble & Company Ltd.
Kemble Music Ltd.
Yamaha Musique France S.A.S.
Yamaha Electronique France S.A.S.
Yamaha Electronique Alsace S.A.
Yamaha Scandinavia AB
Yamaha Musica Italia S.p.A.
Yamaha-Hazen Música S.A.
25
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