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Earnings presentation materials7951YAMAHA CORPORATIONInformation and Communications, Services and Others

Presentation Materials for the Second-Quarter Financial Results Briefing for the Fiscal Year Ending March 2027

The first half of the fiscal year ending March 2027 saw higher revenue and profit, driven by increased sales of electronic musical instruments and other products, the weaker yen, price optimization and the effects of structural reforms. The full-year forecasts for revenue and profit for the period remain unchanged, while the business profit forecast has been raised by ¥2 billion from the previous forecast.

Worth reading
67In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
20
¥100 million (increase in full-year business profit versus previous forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentation materialsSecond quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,379 100 million+9.9%
Operating profit¥223 100 million +74.2%business profit
Ordinary income¥262 100 million profit before tax
Net income¥187 100 million +91.4%profit for the year attributable to owners of the parent
Operating profit margin9.4 % business profit margin
Results for the three months of the current quarter
Revenue
¥1,215 100 million+8.1%
Business profit
¥130 100 million+60.5%
Profit for the period
¥80 100 million+8.2%
Full-year earnings forecast
Revenue
¥4,900 100 million
Business profit
¥400 100 million
Profit for the period
¥310 100 million
Business profit margin
8.2 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Foreign exchange impact¥60 100 million
  • Cost increases¥-39 100 million
  • Revenue growth, increased production, product mix and other factors¥89 100 million
  • Benefits of production-structure reforms¥13 100 million
  • Selling, general and administrative expenses¥-27 100 million
  • Other Businesses¥-1 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • ¥155
    AssumptionsUS dollar exchange rate for the second half
  • ¥180
    AssumptionsEuro exchange rate for the second half
  • ¥9 100 million
    AssumptionsRevenue impact of a ¥1 change in the US dollar exchange rate
  • ¥1.1 100 million
    AssumptionsProfit impact of a ¥1 change in the US dollar exchange rate
  • ¥6.2 100 million
    AssumptionsRevenue impact of a ¥1 change in the euro exchange rate
  • ¥4 100 million
    AssumptionsProfit impact of a ¥1 change in the euro exchange rate
New initiatives
  • New products (GCB grand piano, PSR-SX620 portable keyboard, YDS-152/YDS-122 digital saxophones, FG7/FS7 series guitars and others)
  • New products (R200A stereo receiver, DM5 series digital mixers)
  • Adoption of branded audio systems in the new Mitsubishi Motors Pajero
  • Business alliance with Sedbergh Vietnam, a private school in Vietnam, concerning a music education program
  • Reduction of cross-shareholdings (partial sale of Yamaha Motor shares)
Key KPIsA metric the company considers important as a management benchmark.
  • Electronic musical instrument sales (first half)¥1,009 100 million
    Year on year against the same period last year103% (excluding foreign exchange effects)
  • Orchestral and band instrument sales (first half)¥697 100 million
    Year on year against the same period last year103% (excluding foreign exchange effects)
  • Guitar sales (first half)¥493 100 million
    Year on year against the same period last year109% (excluding foreign exchange effects)
  • Domestic SOHO router market share ranking1 rank
    Year on year against the same period last year22 consecutive years
  • Number of automakers and models adopting automotive audio systems6 companies, 20 models
Segment results
  • Musical Instruments Business
    Revenue¥1,595 100 million (YoY +13.6%)
    Business profit¥154 100 million (YoY +100.0%)
  • Audio Equipment Business
    Revenue¥708 100 million (YoY +4.6%)
    Business profit¥70 100 million (YoY +29.6%)
  • Other Businesses
    Revenue¥76 100 million (YoY -8.4%)
    Business profit¥-1 100 million
Medium-term management plan targets
  • ROE
    Target fiscal yearFiscal year ending March 2028
    Target value10%
  • ROIC
    Target fiscal yearFiscal year ending March 2028
    Target value10%
  • Total Payout Ratio
    Target value50% or more
Financial targets
  • ROE
    Actual and forecastForecast for the fiscal year ending March 2027: 6.2%
    TargetFiscal year ending March 2028: 10%
  • ROIC
    Actual and forecastForecast for the fiscal year ending March 2027: 5.5%
    TargetFiscal year ending March 2028: 10%
Market Size / Share
No. 1 domestic SOHO router market share for 22 consecutive years. Market size: Not disclosed.
Capital expenditures
¥160 100 million full-year forecast for the fiscal year ending March 2027
Annual Dividend
Annual dividend per share¥26
Payout ratio
36.9 %
Total payout ratioTarget: 50% or more
Acquisition of treasury shares
The results and planned amount of share buybacks are shown in a graph, but the repurchase period is Not disclosed
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥2,379 100 million (YoY +9.9%)
Operating profit¥223 100 million (business profit) (YoY +74.2%)
Ordinary income¥262 100 million (profit before tax)
Net income¥187 100 million (profit for the year attributable to owners of the parent) (YoY +91.4%)
Operating profit margin9.4 % (business profit margin)
Results for the three months of the current quarterRevenue ¥1,215 100 million (YoY +8.1%) / Business profit ¥130 100 million (YoY +60.5%) / Profit for the period ¥80 100 million (YoY +8.2%)
Full-year earnings forecastRevenue ¥4,900 100 million / Business profit ¥400 100 million / Profit for the period ¥310 100 million / Business profit margin 8.2 %
Segment resultsSegment Musical Instruments Business / Revenue ¥1,595 100 million (YoY +13.6%) / Business profit ¥154 100 million (YoY +100.0%), Segment Audio Equipment Business / Revenue ¥708 100 million (YoY +4.6%) / Business profit ¥70 100 million (YoY +29.6%), Segment Other Businesses / Revenue ¥76 100 million (YoY -8.4%) / Business profit ¥-1 100 million
Breakdown of Factors Affecting the ChangeFactors Foreign exchange impact / Amount ¥60 100 million, Factors Cost increases / Amount ¥-39 100 million, Factors Revenue growth, increased production, product mix and other factors / Amount ¥89 100 million, Factors Benefits of production-structure reforms / Amount ¥13 100 million, Factors Selling, general and administrative expenses / Amount ¥-27 100 million, Factors Other Businesses / Amount ¥-1 100 million
Key KPIsIndicator name Electronic musical instrument sales (first half) / Value ¥1,009 100 million / Year on year against the same period last year 103% (excluding foreign exchange effects), Indicator name Orchestral and band instrument sales (first half) / Value ¥697 100 million / Year on year against the same period last year 103% (excluding foreign exchange effects), Indicator name Guitar sales (first half) / Value ¥493 100 million / Year on year against the same period last year 109% (excluding foreign exchange effects), Indicator name Domestic SOHO router market share ranking / Value 1 rank / Year on year against the same period last year 22 consecutive years, Indicator name Number of automakers and models adopting automotive audio systems / Value 6 companies, 20 models / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookAssumptions US dollar exchange rate for the second half / Value ¥155, Assumptions Euro exchange rate for the second half / Value ¥180, Assumptions Revenue impact of a ¥1 change in the US dollar exchange rate / Value ¥9 100 million, Assumptions Profit impact of a ¥1 change in the US dollar exchange rate / Value ¥1.1 100 million, Assumptions Revenue impact of a ¥1 change in the euro exchange rate / Value ¥6.2 100 million, Assumptions Profit impact of a ¥1 change in the euro exchange rate / Value ¥4 100 million
Medium-term management plan targetsIndicator ROE / Target fiscal year Fiscal year ending March 2028 / Target value 10%, Indicator ROIC / Target fiscal year Fiscal year ending March 2028 / Target value 10%, Indicator Total Payout Ratio / Target fiscal year Not disclosed / Target value 50% or more
Financial targetsIndicator ROE / Actual and forecast Forecast for the fiscal year ending March 2027: 6.2% / Target Fiscal year ending March 2028: 10%, Indicator ROIC / Actual and forecast Forecast for the fiscal year ending March 2027: 5.5% / Target Fiscal year ending March 2028: 10%
Annual DividendAnnual dividend per share ¥26 / Breakdown Not disclosed
Payout ratio36.9 %
Acquisition of treasury sharesThe results and planned amount of share buybacks are shown in a graph, but the repurchase period is Not disclosed
Capital expenditures¥160 100 million (full-year forecast for the fiscal year ending March 2027)
Market Size / ShareNo. 1 domestic SOHO router market share for 22 consecutive years. Market size: Not disclosed.
New initiativesNew products (GCB grand piano, PSR-SX620 portable keyboard, YDS-152/YDS-122 digital saxophones, FG7/FS7 series guitars and others), New products (R200A stereo receiver, DM5 series digital mixers), Adoption of branded audio systems in the new Mitsubishi Motors Pajero, Business alliance with Sedbergh Vietnam, a private school in Vietnam, concerning a music education program, Reduction of cross-shareholdings (partial sale of Yamaha Motor shares)
Items this document does not state (10)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The first half benefited from growth in musical instrument sales, particularly electronic musical instruments, the weaker yen, price optimization, an improved product mix and the effects of structural reforms. The full-year business profit forecast was revised upward to reflect the offsetting of higher procurement costs through price optimization and the weaker yen, among other factors. The company cited weak economic conditions in Europe and China and soft demand for consumer audio equipment and other products as reasons for leaving the revenue forecast unchanged.

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Presentation Materials for the Second-Quarter Financial Results Briefing for the Fiscal Year Ending March 2027 | YAMAHA CORPORATION (7951) timely disclosure | Komori