Yamaha 2006 Annual Report Download - page 13

President and Representative Director
Shuji Ito
534,079 534,084
539,506
524,763
504,406
2002 2003 2004 2005 2006
19,697
28,123
43,541
17,947
(10,274)
2002 2003 2004 2005 2006
505,577
519,977
508,731
512,716
509,663
2002 2003 2004 2005 2006
Net Sales
(Millions of Yen)
Net Income (Loss)
(Millions of Yen)
Total Assets
(Millions of Yen)
• In the lifestyle-related products segment,
a considerable improvement in the
financial situation led to the achievement
of a turnaround to profitability from the
loss recorded in fiscal 2005. This reflected
the positive effects of restructuring efforts,
bolstered home refurbishment business
activities and strong expansion in sales
of system kitchens featuring artificial
marble sinks.
• Sales in the recreation segment continued to
show loss despite a steady rise in lodging
because of decreases in revenues from
wedding-related and certain other activities.
The results for the year under review leave us in
a difficult position to achieve the main YSD50
target of ¥50 billion in consolidated operating
income in fiscal 2007. Nevertheless, we intend
to leave the basic policies and gist of the plan
intact. By accelerating the measures we have
taken to date, we seek to achieve a good set of
results in fiscal year 2007 and thereby prepare
for the next phase of growth.
Progress towards stronger business
foundations
The basic policy of our YSD50 plan calls for us
to establish a stable, high-earnings structure
that enables sustainable development. In the
musical instruments segment, we are
implementing measures to raise profitability. As
part of our manufacturing structure reforms, we
continue to strengthen bases in China that
produce musical instruments for the Chinese
domestic market, where growth is expected
going forward. Also during the period, we
committed to transferring our entire grand
piano production from Hamamatsu to the
upright piano production facility in Kakegawa.
This process, which is already underway, aims
to boost productivity in piano production to
meet demand trends in the Japanese market
and to develop personnel by assuring that
specialized skills are passed on down the line.
We also are working to increase
manufacturing productivity under an internal
program called YPM (Yamaha Productivity
Management), which is based on the Toyota
Production System. Introduced some time
ago, YPM is generating positive results in
wind instruments.
In the AV equipment business, we will
continue to develop and expand sales of home
theater systems. We focused in particular on
the Digital Sound ProjectorTM series, which was
launched to critical acclaim in 2004. We also
catered to the global trend to listen to music on
the move and launched small speaker systems
with outstanding bass quality for mobile phones
and digital audio players. As the leading maker
of home theater audio systems, our goal is to
respond to new growing markets as well as
existing markets by offering consumers
products with a superior sound.
With regard to the future direction of
unprofitable operations, we plan to execute
initiatives based on careful analysis of key factors
from a medium- to long-term perspective.
Yamaha Annual Report 2006 13