Yamaha 2007 Annual Report Download - page 10

Yamaha Annual Report 2007 1817
Yamaha commercial audio equipment is installed in many of the world’s leading concert
halls, theaters and other facilities. Famous venues that use Yamaha systems include
Carnegie Hall in New York, the Walt Disney Concert Hall in Los Angeles, world-renowned
opera houses such as the Opéra Bastille in Paris and La Scala in Milan, and the New
National Theatre, Tokyo.
Yamaha has played an important role in leading the industry into the transition
from traditional analog technology to the world of digital. Today, models such as
Yamaha’s PM1D and PM5D are widely recognized as setting global benchmarks in
the field of digital mixers.
The global market 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 is flat, the markets in the
leading regions of North America, Europe and China are all expanding. Overall, global
market growth is forecast at about 4% per year. Demand for professional audio
equipment is especially strong in the United States, where the market is growing due to
the increasing installation of products in churches, a sector that is resilient to
macroeconomic trends. In Japan, new demand is projected to emerge as many of the
facilities built in the late 80s and early 90s are in need of renovation.
Technical progress is rapidly making digital network technology the industry
norm, driving the spread of products such as digital mixing systems where Yamaha is
a world leader. We expect underlying needs for innovation in integrated networks will
further drive the business opportunities.
Against this backdrop, we aim to exploit our strengths in digital and network
technologies to enlarge and upgrade our family of “output-side” products (such as
power amplifiers and speakers), while also generating growth by expanding the
commercial audio equipment business into new markets.
At the same time, we plan to accelerate efforts to develop our capabilities as a
system solutions provider. Critically this involves continuing to improve the
interoperability, reliability, and system-related capabilities of each product. It also
means proposing system-based solutions that are optimized to customer needs in
terms of aspects such as delivery and service. Alongside this, we are also focusing on
upgrading our technical support systems.
To support business expansion in the fields of power amplifiers and speakers as a
part of a digital system solution, Yamaha concluded a strategic alliance with NEXO S.A.,
a leading French manufacturer of professional speaker systems. In Japan, Yamaha is
moving on to attain broader coverage of the Japanese commercial audio installation
market. This has been achieved through the acquisition of FUJI SOUND CO., LTD., a
long-standing leader in developing and manufacturing commercial audio equipment, and in
engineering, installation and maintenance services for theaters and concert halls in Japan.
Another area that Yamaha is targeting is the market for commercial installed
sound systems. This segment features multifunctional sound systems without the
necessity of skilled operators for applications other than music in venues such as
restaurants and hotel function or banquet rooms.
Yamaha has established a global network of companies providing sales and
customer support services for commercial audio equipment and systems. The London-
based CA Support Center provides services in Europe while in the United States,
Yamaha has established Yamaha Commercial Audio Systems, Inc. as a North American
commercial audio equipment specific sales subsidiary, based in the L.A. suburb of Buena
Park. Elsewhere, we have established Yamaha Digital Audio Creative Center (YDACC)
facilities, with operating bases in ten countries and other areas worldwide, including
Japan, China, Taiwan, Singapore, and Panama. Through these support centers and the
YDACC network, we are providing training seminars globally for more than 7,000 people
per year, including many engineers and sales personnel. On top of this, Yamaha
subsidiaries in each local market provide a range of detailed client support services.
By continuing to develop the product lineup while steadily building related support
networks, we have continuously accomplished double-digit growth in annual sales of
commercial audio equipment. As a result, this business successfully achieved its sales
and profit targets under the “YSD50” medium-term business plan. In the new “YGP2010”
medium-term business plan, the aim is to expand within this business domain as part of
the overall growth strategy. In addition to digital mixer systems, which are the mainstay,
Yamaha expects growth of “output-side” products. The goal is to achieve consolidated
sales of PA products (the sum of commercial audio equipment and of PA equipment
primarily at musical instrument stores) of ¥42 billion in the year ending March 2010.
We expect commercial audio equipment to remain one of our most profitable
businesses. It promises to make a significant contribution to the overall growth of the
Yamaha Group in years to come.
New National Theatre, Tokyo Yamaha CA Training Seminars
Photo by Robert C. Mora/WireImage.com
2007 GRAMMY®Awards Ceremony
Carnegie Hall
YDACC Beijing Walt Disney Concert Hall
Sales Plan for
Professional Audio Equipment
20.2 21.6
04/3 05/3 06/3 07/3 10/3
(Target)
26.5
31.0
42.0
(Billions of Yen)
* GRAMMY®is a registered trademark or trademark of the National Academy of Recording Arts and
Sciences, Inc. in the United Staes and other countries.