For Immediate Release July 31, 2012 YAMAHA CORPORATION Outline of the Consolidated Financial Results for the First Quarter (Three Months) of the Fiscal Year Ending March 31, 2013 (FY2013.3) and Outlook for Performance for the Full Fiscal Year Consolidated Performance for the First Quarter (Three Months) Year-on-Year Increases in Net Sales and Income Consolidated net sales for the first quarter of FY2013.3 increased from the same period of the previous year in all segments except AV/IT. After the exclusion of the effects of foreign currency fluctuations, sales in the AV/IT segment also increased. While foreign currency fluctuations reduced the value of sales by ¥3.1 billion, sales of the musical instruments and AV/IT business overseas were generally strong, and overall sales rose ¥2.1 billion, or 2.4% year on year, to ¥90.0 billion. Consolidated operating income for the first quarter rose ¥1.1 billion, or 37.0% year on year, to ¥4.3 billion. Although foreign currency fluctuations reduced operating income by ¥1.1 billion, operating income in all segments, except electronic devices, increased. Along with the increase in operating income, consolidated ordinary income rose ¥1.0 billion, or 37.2% over the same period of the previous year, to ¥3.8 billion, and net income for the quarter rose ¥2.1 billion, or 421.9%, to ¥2.6 billion. Sales and Operating Income (Loss) by Business Segment Musical Instruments Sales of ¥67.3 billion (+1.0%) and Operating Income of ¥3.6 billion (+39.7%) Sales of piano in China continued to be favorable, but conditions in North America remained difficult, and overall piano sales decreased. In the digital musical instruments business, sales expanded in China and other emerging countries, and overall sales increased. Although sales of wind instruments rose in North America and China, in total they remained at about the same level as in the same period of the previous fiscal year. 1 Among string and percussion instruments, sales expanded principally in the guitar business, and overall sales grew. In the professional audio equipment business, while sales through the musical instrument store channel were robust, the markets for professional audio equipment in North America and Europe did not recover, and overall sales in this business declined. Compared with the same period of the previous fiscal year, sales of this segment as a whole rose ¥0.7 billion, or 1.0%, to ¥67.3 billion, despite a reduction in sales of ¥2.5 billion due to foreign currency fluctuations. Operating income rose ¥1.0 billion, or 39.7% year on year, to ¥3.6 billion, even though foreign currency fluctuations had an adverse impact of ¥0.9 billion. AV/IT Sales of ¥12.0 billion (–2.8%) and Operating Income of ¥0.6 billion (+5.1%) In the audio products business, although sales expanded in North America, they declined slightly overall. Sales of commercial online karaoke equipment decreased, but sales of information and telecommunication equipment, such as routers and conferencing systems, expanded in Japan. Compared with the same period of the previous fiscal year, sales of this segment as a whole were down ¥0.3 billion, or 2.8%, to ¥12.0 billion, because of a reduction in sales of ¥0.6 billion due to foreign currency fluctuations. Operating income rose slightly to ¥0.6 billion year on year, despite an adverse impact of foreign currency fluctuations of ¥0.1 billion, because of improvement in gross margins, reductions in expenses, and other factors. Electronic Devices Sales of ¥3.9 billion (+2.0%) and an Operating Loss of ¥0.6 billion (compared with an operating loss of ¥0.3 billion in the same period of the previous fiscal year) In the semiconductor business, even as demand for sound generator LSIs for mobile phones continued to decline along with the shift from mobile phones to smartphones, there were signs of recovery in the demand for graphic controllers used in amusement equipment, and sales overall expanded. Sales for this segment as a whole increased ¥0.1 billion, or 2.0%, to ¥3.9 billion. 2 As a result of growing competition in the magnetic sensor (electronic compass) market, gross profit declined, and this segment reported an operating loss of ¥0.6 billion (compared with an operating loss of ¥0.3 billion in the same period of the previous fiscal year). Others Sales of ¥6.8 billion (+32.8%) and Operating Income of ¥0.6 billion (+113.8%) Sales of automobile interior wood components rose substantially, in part because of the recovery from the production adjustments by manufacturing customers caused by the Great East Japan Earthquake in 2011. In golf products business, sales decreased because of more-intense competition in the Japanese market and lackluster conditions in overseas markets. Sales of factory automation (FA) equipment to China and other emerging markets rose while sales of the recreation businesses in Japan also posted a slight rise. As a consequence, sales of this segment as a whole rose ¥1.7 billion, or 32.8%, to ¥6.8 billion. Operating income expanded ¥0.3 billion, or 113.8% year on year, to ¥0.6 billion. Consolidated Forecast for the Full Fiscal Year (FY2013.3) Forecast for Net Sales and Net Income Revised Downward The Company’s previous forecast, announced on May 1, 2012, for consolidated performance for the full fiscal year ending March 31, 2013 called for net sales of ¥378.0 billion (+6.0% year on year), operating income of ¥14.5 billion (+78.8%), ordinary income of ¥13.0 billion (+79.2%), and net income of ¥9.0 billion (compared with a net loss of ¥29.4 billion in the previous fiscal year). The Company has revised the forecast for net sales to ¥375.0 billion (+5.2%) as a result of taking account of performance for the first quarter, business trends going forward, foreign currency fluctuations, and other factors. However, the forecasts for operating income and ordinary income, ¥14.5 billion (+78.8%) and ¥13.0 billion (+79.2%) respectively, have not been revised. Nevertheless, the forecast for net income has been revised to ¥7.5 billion (versus a net loss of ¥29.4 billion in the previous fiscal year), because of the reporting of an extraordinary loss amounting to ¥1.7 billion in connection with business structural reforms. 3 Please note that the positive effects of business structural reforms are expected to emerge during the fiscal year ending March 31, 2014. Notes: 1. Sales and income/loss figures in the text above have, in principle, been rounded to the nearest ¥0.1 billion. 2. Figures in parentheses are changes from the same period of the previous fiscal year, except as indicated. For further information, please contact: Yamaha Corporation Corporate Communications Division, Public Relations Group Email: [email protected] Telephone: +81-3-5488-6601 4 First Quarter of FY2013.3 Performance Outline July 31, 2012 (billions of yen) 1Q Projections 1Q Results (announced on May 1, 2012) 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 Expenditures (Depreciation Expenses) R&D Expenses 1Q Results Initial Projections Projections Results (Previous Year) (Full Year) (announced on May 1, 2012) (Full Year) (Previous Year) FY2013.3 FY2013.3 FY2012.3 FY2013.3 FY2013.3 FY2012.3 89.0 90.0 87.9 378.0 375.0 356.6 45.8 (51.5%) 45.4 (50.4%) 43.6 (49.6%) 177.1 (46.9%) 173.3 (46.2%) 167.1 (46.9%) 43.2 (48.5%) 44.6 (49.6%) 44.3 (50.4%) 200.9 (53.1%) 201.7 (53.8%) 189.5 (53.1%) 2.0 (2.2%) 4.3 (4.7%) 3.1 (3.5%) 14.5 (3.8%) 14.5 (3.9%) 8.1 (2.3%) 1.5 (1.7%) 3.8 (4.2%) 2.8 (3.1%) 13.0 (3.4%) 13.0 (3.5%) 7.3 (2.0%) 1.5 (1.7%) 2.6 (2.9%) 0.5 (0.6%) 9.0 (2.4%) 7.5 (2.0%) -29.4 75/US$ 81/US$ 82/US$ 75/US$ 78/US$ (*4) 79/US$ 105/EUR 106/EUR 114/EUR 105/EUR 101/EUR 112/EUR 2.9% 5.4% 0.8% 4.4% 3.8% -13.2% 1.6% 3.0% 0.5% 2.4% 2.1% -7.8% 7.7 yen 13.6 yen 2.6 yen 46.5 yen 38.7 yen -151.7 yen 5.2 2.6 1.8 15.2 15.7 11.3 (2.9) (2.6) (2.8) (12.7) (12.1) (12.0) 5.8 5.6 5.5 22.4 22.6 22.8 Cash Flows Operating Activities Investing Activities Total Inventories at End of Period -10.1 -5.7 -15.8 79.3 -3.4 -3.8 -7.2 79.9 -1.6 -2.0 -3.7 76.1 21.5 -16.7 4.8 71.5 19.7 -14.3 5.4 70.9 10.9 -9.0 1.9 77.1 7,700 12,600 20,300 7,629 12,346 19,975 7,750 11,878 19,628 7,600 12,900 20,500 7,500 12,800 20,300 7,443 12,251 19,694 Number of Employees Japan Overseas Total (*3) （Changes from the changes in the scope of consolidation） Temporary Staff (average during the period) (170) (171) (0) (170) (170) (0) 9,100 8,770 8,490 8,300 8,300 8,497 Sales by Business Segment Musical Instruments AV/IT Electronic Devices Others Operating Income by Business Segment Musical Instruments AV/IT Electronic Devices Others 67.5 12.0 3.5 6.0 (75.9%) (13.5%) (3.9%) (6.7%) 2.1 0.5 -0.8 0.2 67.3 12.0 3.9 6.8 (74.7%) (13.4%) (4.3%) (7.6%) 3.6 0.6 -0.6 0.6 66.6 12.4 3.8 5.1 (75.8%) (14.1%) (4.3%) (5.8%) 2.6 0.6 -0.3 0.3 280.0 55.0 17.0 26.0 13.0 3.0 -2.0 0.5 (74.0%) (14.6%) (4.5%) (6.9%) 278.0 55.0 17.0 25.0 13.0 3.0 -2.0 0.5 (74.1%) (14.7%) (4.5%) (6.7%) 265.1 53.2 16.2 22.1 (74.3%) (14.9%) (4.6%) (6.2%) 7.7 2.9 -2.9 0.4 Non-Consolidated Basis Net Sales Operating Income Ordinary Income Net Income 63.6 2.0 5.5 5.4 (3.1%) (8.7%) (8.4%) 63.2 0.4 1.6 0.4 (0.6%) (2.5%) (0.6%) 239.3 -4.3 0.6 -30.4 ＊1, 2 ROE and ROA are calculated on an annually adjusted basis. ＊3 Number of Employees = Number of full-time staff at end of period ＊4 2Q-4Q currency exchange rates US$1=JPY77, EUR1=JPY100 The forward-looking statements in this document contain inherent risks and uncertainties insofar as they are based on future projections and plans that may differ materially from the actual results achieved. 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