Yamaha 2007 Annual Report Download

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Annual Report 2007
Year ended March 31, 2007
2007/8 CM072
Printed in Japan using soy-based inks on recycled paper.
URL: http://www.global.yamaha.com/
Public Relations Division

Table of contents

  • Page 1
    Annual Report 2007 Year ended March 31, 2007 Public Relations Division URL: http://www.global.yamaha.com/ 2007/8 CM072 Printed in Japan using soy-based inks on recycled paper.

  • Page 2
    ... Lifestyle-Related Products Recreation Others R&D and Intellectual Property Emphasis on Corporate Social Responsibility (CSR) in Management Board of Directors, Corporate Auditors and Executive Officers Financial Section Main Networks Organization Chart Investor Information Yamaha Annual Report 2007...

  • Page 3
    ... musical instrument manufacturer, supplying a full line-up of acoustic and digital musical instruments. To help as many people as possible experience the joy of playing an instrument, the Yamaha name has also been associated with a chain of music schools since 1954. Initially these offered children...

  • Page 4
    ... craftsmanship that uses only the best in materials. The quality of the sound produced by a Yamaha musical instrument reflects the depth of the expertise that we have accumulated each day over the years-skills we ensure are passed on to new generations of artisans. 05 Yamaha Annual Report 2007 06

  • Page 5
    ... that blend the best of acoustic and digital, such as the DisklavierTM (player piano) and the SilentTM series. As the world continues to go digital, new situations are arising where people seek digitally created sound. Yamaha is the name to shape such creativity. 07 Yamaha Annual Report 2007 08

  • Page 6
    .... The mission of Yamaha remains to develop new technologies and expertise related to sound and music. We aspire to help people create environments of sound that reach the heart and feed the soul; to help more people learn the joys of creating music with an instrument; in short, to help enrich people...

  • Page 7
    ... in Japan of planning, development, manufacturing, installation, venue set-up and maintenance services for commercial audio equipment and systems. Future plans call for growing Yamaha's commercial audio equipment business by making the best use of these companies' assets in terms of high technical...

  • Page 8
    ... markets. In the musical instruments business, guitars are one example. We are targeting growth in this area, especially in the North American market, with plans to develop attractive products alongside various programs to build relations with leading artists. In the audio equipment sector, Yamaha...

  • Page 9
    ... service center in North America to drive growth in this our largest market • Strengthen development of component technologies in the electric acoustic guitar field • China: Aim for quality, cost control and supply capabilities • Japan: Aim for "mother factory" functionality and increase value...

  • Page 10
    ...for commercial audio equipment that Yamaha is targeting is worth an estimated ¥250 billion. (This figure excludes the PA systems and related equipment used by musicians for performing, which are mainly sold through the same retail sales channels as musical instruments.) Although the market in Japan...

  • Page 11
    ...792 10,480 14,183 14,132 22,037 59.2% AV/IT â- Audio products (AV amplifiers and receivers, speaker systems, Digital Sound ProjectorTM, etc.) â- Commercial online karaoke equipment â- Routers â- IP conferencing systems 2003/3 2004/3 2005/3 2006/3 2007/3 CDR 83,670 78,257 77,720 75,939 72,823...

  • Page 12
    ...to close two US-based factories making pianos and wind instruments and a guitar plant in Taiwan. This move will accelerate the concentration of musical instrument production facilities in Japan, Indonesia and China. Yamaha also made steady progress in developing supply-chain management systems. This...

  • Page 13
    ... digital signal-processing technologies developed by Yamaha, including various original technologies for processing digital audio and music. Practical applications include sound field controls in AV equipment, effecters used in professional mixing consoles, mobile phone sound generation and 3D sound...

  • Page 14
    ...part due to currency-related gains. Speaker system SoavoTM-2 these new trends, Yamaha aims to develop a line of highly differentiated products for the desktop audio field that combine high sound quality with compact, stylish design. Yamaha is also developing new audio equipment to support business...

  • Page 15
    ... reinforce in-house manufacturing, Yamaha aims to build an efficient production system by utilizing external foundries for any devices that require advanced manufacturing processes. Planned total capital expenditure over the three years to March 2010 is ¥9 billion. 27 Yamaha Annual Report 2007 28

  • Page 16
    ..., Yamaha plans to develop new business models to support the establishment of additional business units that will offer semi-custom order products for the luxury sector and built-to-order products for the super-luxury sector. In system kitchens, the company plans to further upgrade the berryTM range...

  • Page 17
    ... a training venue for companies, schools and other customers. Besides offering the location as a training facility for music schoolteachers and college-level music students, Yamaha also plans to make the facility available as a sales training venue. Many Japanese companies use outside facilities for...

  • Page 18
    ... customers, helping Yamaha to increase market share. Sales growth was in double digits for the second year running. These factors resulted in a major improvement in the profitability of the golf products business. Yamaha launched a fully remodeled range of golf clubs under the "New inpresTMX" brand...

  • Page 19
    ... Equipment and Metal Products Musical Instruments Lifestyle-Related Products R&D organization R&D at Yamaha comprises three elements. First, technical departments attached to each business segment and the Group Companies work on product development. Second, the 35 Yamaha Annual Report 2007...

  • Page 20
    ... patent filings in areas related to acoustic technology and audio signal processing 37 Patents Owned by Yamaha (as of March 31, 2007) (Number of patents) 6,000 5,000 4,000 3,000 Others 2,000 1,000 0 Lifestyle-Related Products Electronic Equipment and Metal Products AV/IT Musical Instruments Japan...

  • Page 21
    ... 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. Enhancing corporate governance Creating a management structure through the Board of Directors and Executive Officers The Board of...

  • Page 22
    ...propelled fader* equipped in professionaluse digital mixers enables key user interface somewhat akin to the keyboard in electronic musical instruments. In developing the fader system, Yamaha applied quality engineering that fuses technologies related to controlling mechanism, controlling circuit and...

  • Page 23
    ...students have enjoyed playing music together, motivated and supported by Yamaha's BläserKlasse concept. Cogeneration system "Yamaha Forest"-Report on 2nd Year of Reforestation Initiative in Indonesia Yamaha Corporation and Yamaha Motor Co., Ltd. are working together on the "Yamaha Forest" project...

  • Page 24
    ...Group Yoshihiro Doi Executive Officer General Manager, Domestic Sales & Marketing Division Yasushi Yahata Executive Officer Productive Technology Business Group Process Management Group Golf Products Division Takuya Nakata Executive Officer General Manager, Pro Audio & Digital Musical Instruments...

  • Page 25
    ... wind instruments also increased. In the music schools business, child student enrollment numbers 300,000 200,000 100,000 0 Musical Instruments AV/IT Electronic Equipment and Metal Products Fiscal 2006 Lifestyle-Related Products Recreation Others Fiscal 2007 47 Yamaha Annual Report 2007 48

  • Page 26
    ... higher sales in businesses such as musical instruments, metallic molds and components, and golf products. The ratio of overseas sales in the fiscal year ended March 2007 was 47.1%, an increase of 2.4 points from the fiscal 2006 figure of 44.7%. Sales in North America fell in year-on-year terms by...

  • Page 27
    ... the planned sale of four resorts in the recreation business segment; and provisions to cover structural reform expenses related to closures associated with the decisions made to liquidate one manufacturing subsidiary in Taiwan and two manufacturing subsidiaries in the United States. Total long-term...

  • Page 28
    ... digital signal-processing technologies developed by Yamaha, including various original technologies for processing digital audio and music. Practical applications include sound field controls in AV equipment, effecters used in professional mixing consoles, mobile phone sound generation and 3D sound...

  • Page 29
    ... to the corporate value of the Yamaha Group through sound business management. For fiscal 2010, the plan's final year, Yamaha has established consolidated performance targets of ¥590.0 billion in net sales, ¥45.0 billion in operating income and 10% ROE. New Accounting Standards In line with...

  • Page 30
    ... Balance Sheets Yamaha Corporation and Consolidated Subsidiaries At March 31, 2007 and 2006 Millions of Yen Thousands of U.S. Dollars (Note 4) Millions of Yen Thousands of U.S. Dollars (Note 4) ASSETS Current assets: Cash and bank deposits (Note 16) Notes and accounts receivable - trade Marketable...

  • Page 31
    ...translation adjustments Minority interests Total net assets Treasury stock, Total Net unrealized Loss on at cost shareholders' holding gain on deferred hedges (Note 15) equity other securities (Note 15) 2007 Net sales Cost of sales (Note 10) Gross profit Selling, general and administrative expenses...

  • Page 32
    ...31, 2007 and 2006. Investments in unconsolidated subsidiaries and affiliates not accounted for by the equity method are carried at cost. Certain overseas subsidiaries are consolidated on the basis of fiscal periods ending December 31, which differs from the balance sheet date of the Company; however...

  • Page 33
    ... To provide for the payment of bonuses to directors, the projected amount of such bonuses is set aside as a reserve. (j) Product warranty reserve A warranty reserve is provided to cover the cost of customers' claims relating to after-sales service and repairs. The amount of this reserve is estimated...

  • Page 34
    ... balance sheet dates is summarized as follows: Thousands of U.S. Dollars Millions of Yen 2007 Excess of revalued carrying amount of land over market value ¥ (18,954) ¥ 2006 (18,203) 2007 $ (160,559) Millions of Yen 2007 Long-term debt from banks at average rates of 2.7% and 2.3% for current...

  • Page 35
    ... tables present information related to the consolidated statements of changes in net assets for the year ended March 31, 2007: (a) Number of Shares Issued 14. INCOME TAXES Income taxes applicable to the Company and its domestic consolidated subsidiaries comprised corporation tax, inhabitants...

  • Page 36
    ... expenses Total The assumptions used in accounting for the above plans are as follows: 2007 Discount rate Expected rate of return on plan assets Amortization of past service cost Amortization of actuarial gain or loss 2.0% 4.0% 10 years (straight-line method) 10 years (straight-line method) ¥ 5,535...

  • Page 37
    ... sheets if the finance leases currently accounted for as operating leases had been capitalized: Millions of Yen Thousands of U.S. Dollars Export bills discounted with banks Guarantees of indebtedness of others ¥ 882 645 $ 7,471 5,464 As of March 31, 2007 Tools and equipment Other Total...

  • Page 38
    ... bonds Corporate bonds Other Total ¥ Carrying value Estimated fair value Sales of other securities Profit on sales ¥ 41 31 200 ¥ 20 399 620 200 ¥ 20 401 622 0 0 1 2 (7) (6) (13) (26) (24) 299 292 519 513 1,299 1,286 2,119 2,092 ¥ 2,739 ¥ 2,715 ¥ 73 Yamaha Annual Report 2007 74

  • Page 39
    ... products ¥ 559,031 19,956 4,728 25,152 ¥ ¥ 200 120 199 520 ¥ ¥ 299 419 1,499 2,219 Year ended March 31, 2007 I. Sales and operating income (loss) Sales to external customers Intersegment sales or transfers Total Operating expenses Operating income (loss) Musical instruments...

  • Page 40
    ...capital expenditures Total assets Depreciation Capital expenditures Musical instruments Year ended March 31, 2006 I. Sales and operating income Sales to external customers Intersegment sales or transfers Total Operating expenses Operating income Total assets ¥ Japan North America Europe Total...

  • Page 41
    ... business of consolidated affiliate accounted for by the equity method Name: Yamaha Motor Co., Ltd. Business: Development, manufacture, and sale of motorcycles, marine related products, power products and other products (3) Name of counter parties, date of sales, numbers of shares sold, sales price...

  • Page 42
    ... for schools Management company for the music entertainment business of the Yamaha Group ¥100 million Production and sales of music publications, creation and sales of multimedia software, import and ¥350 million sales of software from overseas Planning, creation, manufacturing and sales of audio...

  • Page 43
    ..., Ltd. Stock Price Movement (Yen) Managing Council Musical Instruments Business Group Piano Division Wind, String & Percussion Instruments Division Sound Proofing Division Pro Audio & Digital Musical Instruments Division Corporate Planning Division Tel: +81 3 5488 6602 Public Relations Division...