Yamaha 2009 Annual Report Download - page 41

actions resulted in the posting of extraordinary losses consisting of
¥15,323 million in impairment losses, and a loss on valuation of
investments in capital of subsidiaries and affiliates of ¥3,301 million.
Going forward, Yamaha will continue to conduct Groupwide
reviews and consideration of profit plans, particularly in unprofit-
able businesses, and press ahead with further structural reforms
as required.
Analysis of Management Performance
Net Sales
Sales by Business Segment
Net sales in fiscal 2009 declined ¥89,469 million, or 16.3% year
on year, to ¥459,284 million. Lower sales stemmed from transfer
of the electronic metal products business and transfer of four
recreation facilities in the recreation business enacted in fiscal
2008 (approx. ¥14.3 billion), as well as foreign currency effects
(approx. ¥34.9 billion). In addition, sales fell in musical instruments
and across all segments due to adverse economic conditions,
with the most severe declines noted in the electronic devices and
the others business segments.
Musical Instruments
Sales in fiscal 2009 decreased by ¥33,390 million, or 9.8%, to
¥306,630 million. Excluding declines resulting from foreign cur-
rency effects (approx. ¥27.6 billion), sales (including approx. ¥5.1
billion from new consolidations) on a real basis declined by roughly
¥5.8 billon year on year, or 1.7%.
By product, piano sales declined year on year with sales growth
in China unable to fully compensate for lower demand in the U.S. and
Japanese markets. Sales volume for pianos worldwide declined by
roughly 1,100 units from the previous year to around 94,200 units.
While sales of medium-priced and premium pianos made in Japan
declined, sales of affordable-price-range pianos made in China
increased, accelerating the decline in unit sales prices. In digital musi-
cal instruments, sales were lower, most notably in the North American
market. In wind instruments, sales were lackluster overall, but in string
and percussion instruments, acoustic guitars recorded firm sales.
Growth in electric acoustic guitars was especially strong, particularly
in the United States. The same was true for electronic drums, where
sales increased in the North American market. Sales of professional
audio equipment, most notably digital mixers for which growth had
been anticipated, ended flat for the year due to worsening economic
conditions. Sales in the music entertainment business were favorable,
reflecting healthy performance in the musical entertainment media
business, including CDs, as well as the musical publications field.
By region, and on a local currency basis, sales in Japan were
lower year on year. In North America, adverse economic conditions
caused sales to decline significantly from the previous fiscal year. In
contrast, sales in Europe were on a par with the previous year, reflect-
ing sales benefits from new digital musical instruments. In other
regions, sales grew as growth undertones continued to emerge in
Latin America. In China, piano production at Hangzhou Yamaha
Musical Instruments Co., Ltd. (Hangzhou Yamaha) increased as this
market maintained double-digit year-on-year growth.
AV/IT
Sales in fiscal 2009 declined ¥14,091 million, or 19.9% year on
year, to ¥56,722 million. In AV products, sales of AV receivers and
home theater products struggled in the key markets of North
America and Europe, reflecting the impact of the global economic
slowdown. In front surround system products, shipments of the
YRS-1000, Digital Sound Projector™ YSP series TV stands with
built-in subwoofers, held firm in the Japanese market, while sales
in the European and U.S. markets declined. Sales of routers and
commercial online karaoke equipment produced on an OEM basis
were also lower compared to the previous year. Delays in sales
channel development, meanwhile, led to sluggish sales of confer-
encing systems.
Electronic Devices
In fiscal 2009, sales decreased by ¥23,024 million, or 51.2% year
on year, to ¥21,975 million. Sales in the semiconductor business
alone, excluding the impact of transfer of the electronic metal
products business in the previous fiscal year (approx. ¥9.2 billion),
declined by roughly ¥13.9 billion, or 38.7%. In semiconductors,
sales of sound generators for mobile phones fell sharply, reflecting
lower sales volumes for mobile phones in the Japanese market,
and the ongoing shift to sound-generation software for mobile
phones in overseas markets. Shipments of audio and graphic
controllers used in amusement equipment were also lower year on
year, hit hard by deteriorating market conditions. Sales of digital
amplifiers used in flat-panel TVs and mobile phones ended the
year flat, as development delays prevented expansion in shipment
targets. Yamaha opted to withdraw from full-scale entry into the
silicon microphone business, new devices that were expected to
replace sound generators for mobile phones, after determining
that it would be difficult to secure earnings given falling unit sales
prices stemming from increased competition.
Sales by Business Segment
(Millions of Yen)
1 Musical Instruments
2 AV/IT
3 Electronic Devices
4 Lifestyle-Related
Products
5 Others
6 Recreation*
n Fiscal 2008
n Fiscal 2009
306,630
56,722 21,975 43,121 30,833
400,000
300,000
200,000
100,000
1 2 3 4 5 6
0
* Starting from the fiscal
year ended March 2009,
Recreation is included in
the Others segment.
Annual Report 2009 39