Yamaha 2009 Annual Report Download - page 43

million, to ¥63,145 million. Transport expenses also decreased by
¥1,275 million, or 7.3% from ¥17,359 million in the previous year,
to ¥16,083 million. The ratio of SG&A expenses to net sales
recorded an increase of 2.4 points year on year, rising to 33.8%.
Excluding foreign currency effects from a strong yen, selling, gen-
eral and administrative expenses on a real basis decreased by
about ¥9.7 billion compared to the previous year. If effects from
the transfer of the electronic metal products business and four
recreation facilities (approx. ¥5.3 billion) and new consolidations
(approx. ¥3.4 billion) are considered, selling, general and adminis-
trative expenses actually decreased by ¥7.8 billion, or 4.5%.
Operating Income
Operating income for fiscal 2009 decreased by ¥18,999 million, or
57.8% year on year, to ¥13,845 million. Excluding roughly ¥6.9
billion of this decline due to foreign currency effects from a strong
yen, operating income decreased by around ¥12.1 billion, or
37.0%. Key factors in this decline included lower profits from
decreased production, higher prices for raw materials (approx.
¥3.1 billion), amortization of shortfall in retirement benefits provision
(approx. ¥2.1 billion), and amortization of goodwill. These factors
outweighed major cost reductions, upward revisions in wholesale
prices, and other efforts taken by Yamaha to shore up income.
Operating Income (Loss) by Business Segment
By segment, operating income in the musical instruments seg-
ment in fiscal 2009 was ¥19,198 million, ¥8,726 million, or 31.3%,
lower than the fiscal 2008 figure of ¥27,924 million. In addition to
decreased sales year on year stemming from the economic slow-
down, the gross profit ratio declined from foreign currency effects
accompanying a strong yen and increased costs due to higher
prices for raw materials, among other factors.
The AV/IT segment recorded an operating loss of ¥410 million,
a decline of ¥2,249 million from operating income of ¥1,839 million
in the previous year. This outcome resulted from a decrease in
sales of AV products, centered on the European and U.S. markets,
due to the effects of global economic weakness.
Similarly, the electronic devices segment posted an operating
loss of ¥2,536 million, a decline of ¥4,400 million from operating
income of ¥1,863 million in the previous year. Income fell as sales
continued to decline in this segment due to the ongoing shift to
sound-generation software over sound generator devices for
mobile phones, coupled with lower sales volumes for mobile
phones in the Japanese market.
The lifestyle-related products segment also recorded an oper-
ating loss of ¥305 million, down ¥894 million from ¥588 million in
operating income in the previous year. The loss was mainly the
result of decreased sales and a higher cost of sales due to higher
prices for raw materials.
The others segment also posted an operating loss of ¥2,100
million, down ¥2,729 million from operating income of ¥628 million
a year earlier. While profitability initially improved on the transfer of
four recreation facilities in the previous year, income from automo-
bile interior wood components for luxury cars and magnesium
molded parts decreased on sharply lower sales.
Operating Income (Loss) by Region
By region, in fiscal 2009, the Company recorded an operating loss
of ¥1,647 million for Japan, representing a year-on-year decrease
of ¥16,218 million. In addition to foreign currency losses due to a
strong yen, income fell on lower sales in semiconductors, lifestyle-
related products, and others business.
In North America, operating income declined by ¥3,030 million
year on year to ¥1,863 million, primarily due to substantially lower
sales of musical instruments and AV products.
In Europe, decreased sales of AV products caused operating
income to decline by ¥646 million to ¥5,160 million.
In Asia, Oceania and other areas, operating income declined
by ¥162 million year on year to ¥7,796 million.
Non-Operating Income and Expenses
In fiscal 2009, non-operating income decreased by ¥2,336 million,
or 37.7% year on year, from ¥6,192 million to ¥3,856 million. Of
this amount, interest and dividend income decreased by ¥1,323
million, or 33.7%, to ¥2,601 million, compared to ¥3,925 million
the previous fiscal year. Other non-operating income decreased
by ¥866 million, or 40.9% year on year, from ¥2,120 million to
¥1,254 million.
Non-operating expenses decreased by ¥731 million, or 11.3%
year on year, from ¥6,453 million to ¥5,722 million. Of this amount,
interest expenses decreased by ¥453 million, or 42.4% year on
year, from ¥1,068 million to ¥615 million. Sales discounts due to
early payment declined from ¥4,105 million to ¥3,416 million, a
decrease of ¥688 million, or 16.8%, in year-on-year terms. Other
non-operating expenses rose from ¥1,278 million to ¥1,690 million,
an increase of ¥411 million, or 32.2%.
Operating Income (Loss) 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
19,198
(410)
(2,536)
(305)
(2,100)
30,000
20,000
10,000
-10,000
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 41