Yamaha 2009 Annual Report Download - page 28

Fiscal 2009 Performance Overview
Sales in this segment declined 34.9% compared with the previ-
ous fiscal year, to ¥30,833 million. The segment posted an
operating loss of ¥2,100 million, in contrast to operating income
of ¥628 million recorded a year earlier.
In the golf products business, both sales and income
increased year on year. The overall market slowed from the second
half of the year due to worsening economic prospects.
Sales and earnings in the automobile interior wood
components business declined on sharply lower orders from
manufacturers of finished products.
In the metallic molds and components business, Yamaha
decided to withdraw from the magnesium molded parts business.
In the recreation business, earnings improved thanks to the
transfer of four facilities that took place in the previous fiscal year.
Others
Key Business Indicators
(Millions of Yen)
Net Sales (Left)
n Others
n Recreation
Operating
Income (Right)
n Others
n Recreation
05/3 06/3 07/3 08/3 09/3
Net Sales Others ¥23,557 ¥24,671 ¥32,365 ¥36,044 ¥30,833
Recreation
18,290 18,013 17,800 11,353
Operating
Income
(Loss)
Others 168 582 794 1,731
(2,100)
Recreation
(2,253) (1,789) (1,536) (1,103)
Capital Expenditures 4,127 3,141 3,095 2,828 2,082
Depreciation Expenses 3,943 3,235 3,419 2,656 1,889
R&D Expenses 990 1,173 1,147 1,440 1,809
* For the four fiscal years from the year ended March 31, 2005 to the year ended March 31, 2008, capital
expenditures, depreciation expenses and R&D expenses were presented in a combined form for the two
business segments of Others and Recreation.
Market Trends and Business Strategy
Market Trends
Adverse market conditions persist with no early
recovery in sight
As the global economic outlook worsens, no major recovery
appears likely in the golf products business in Japan or overseas.
In the automobile interior wood components business, while the
situation appears to have bottomed out due to ongoing adjustments
in manufacturers’ inventory, the prospects of a fast recovery
remain unlikely. In the factory automation (FA) equipment business,
some positive movement has emerged, particularly in products
related to environmental measures with the start of a new fiscal
year. In recreation, meanwhile, corporate demand continues to
decrease and individual demand continues to decline as well amid
consumer restraint.
Business Strategy
Yamaha’s most urgent issue—Generate stable earnings
In the golf products business, Yamaha will continue to invest in
R&D and enhance its current inpres™ brand in a push to expand
market share. Most visibly, the Company will respond to strong
sales of mid- and premium-grade custom ordered products.
In the automobile interior wood components business, Yamaha
will strive to increase its profitability by lowering the breakeven point.
Particular attention will be given to minimizing losses stemming from
the launch of new products to improve yields.
For the factory automation (FA) equipment business, Yamaha
will proactively develop new customers in a drive to boost sales.
In the recreation business, Yamaha aims to post operating
income as early as possible. To do this, Yamaha will leverage the
appeal of facilities in product planning and proposals. Improving
the quality of service and operations through better employee
training will be another important measure here. Tsumagoi™, for
example, will pursue stronger sales initiatives targeting individual
customers, while highlighting its unique features, including both
Japan’s premier outdoor music facilities and horseback riding
facilities. Katsuragi-Kitanomaru™ and the Katsuragi Golf Club™,
meanwhile, will take advantage of the marketing benefits from
hosting a women’s professional golf tournament for a second
consecutive year to propose attractive product plans in advance.
60,000
05/3 06/3 07/3 08/3 09/3
0
9,000
40,000 6,000
20,000 3,000
–3,000
0
Net Sales/Operating Income (Loss)
(Millions of Yen)
26 Yamaha Corporation