Yamaha 2011 Annual Report Download - page 49

47
Annual Report 2011
Sales by Region
Fiscal 2011 sales in Japan declined ¥38,831 million, or 17.8%, year
on year, to ¥179,574 million. Sales were up in the AV/IT business
due mainly to brisk demand for front surround system products and
commercial online karaoke equipment. Sales also increased in the
electronic devices business thanks to strong demand for magnetic
sensors. However, with sluggish domestic sales of musical instruments
and the exclusion of the lifestyle-related products subsidiary from the
scope of consolidation, sales declined substantially.
Outside of Japan, sales decreased ¥2,112 million, or 1.1%, year on
year, to ¥194,292 million. Despite signs of recovery in North America
and Europe and strong demand in emerging markets, sales were
down slightly due to foreign currency translation effects. The ratio of
overseas sales to net sales was 4.7 percentage points higher than in
fiscal 2010, rising from 47.3% to 52.0%.
By region, sales in North America slipped ¥3,033 million, or 5.3%,
year on year, to ¥54,635 million. Although intense competition caused
sales of audio products and other products to decline, if we exclude
the almost ¥4,000 million decrease from foreign currency translation
effects, sales actually increased by roughly ¥900 million, or 1.7%, in real
terms.
In Europe, sales declined ¥5,605 million, or 8.0%, to ¥64,678
million. Thanks to generally strong sales of pianos, portable keyboards,
and audio and other products, sales increased 7.8%, or approximately
¥4,700 million in real terms, despite a nearly ¥10,300 million decline
caused by foreign currency translation effects.
Sales in Asia, Oceania and other areas increased ¥6,526 million,
or 9.5%, to ¥74,978 million. China maintained double-digit growth,
especially in pianos, and sales in other areas were also strong. If we
exclude the approximately ¥3,100 million decrease from foreign cur-
rency translation effects, sales increased by roughly ¥9,600 million, or
14.7%, in real terms.
Cost of Sales and Selling, General and Administrative Expenses
The cost of sales in fiscal 2011 decreased ¥31,066 million, or 11.6%, year
on year, to ¥237,313 million. The cost of sales decrease was mainly the
result of the exclusion of the lifestyle-related products subsidiary from
the scope of consolidation and foreign currency translation effects.
The cost of sales ratio declined by 1.2 percentage points year on year,
from 64.7% to 63.5%.
Gross profit decreased by ¥9,877 million, or 6.7%, to ¥136,553
million. The gross profit ratio rose by 1.2 percentage points, from 35.3%
to 36.5%.
Selling, general and administrative (SG&A) expenses decreased
¥16,215 million, or 11.6%, to ¥123,387 million. Advertising expenses
and sales promotion expenses declined ¥2,066 million, or 11.4%, from
¥18,130 million to ¥16,063 million. Personnel expenses also decreased
¥8,405 million, or 12.7%, from ¥66,333 million to ¥57,927 million. The
ratio of SG&A expenses to net sales declined by 0.7 of a percentage
point, to 33.0%. If we exclude the approximately ¥4,100 million in for-
eign currency translation effects due to the strong yen and the roughly
¥11,400 million resulting from the exclusion of the lifestyle-related
products subsidiary from the scope of consolidation, SG&A expenses
decreased by about ¥800 million in real terms.
Operating Income
y
¥13,165 million
Operating income in fiscal 2011 increased ¥6,337 million, or 92.8%,
year on year, to ¥13,165 million. Operating income increased in all
business segments, including a substantial earnings increase in the
mainstay musical instruments segment. Despite the nearly ¥5,400
million decrease in foreign currency translation effects from the strong
yen, an absence of almost ¥400 million from excluding the lifestyle-
related products subsidiary from the scope of consolidation, a roughly
¥1,500 million increase in overseas distribution expenses, higher
Management’s Discussion and Analysis
Selling, General and Administrative Expenses
Millions of yen
10/3 11/3 Change
Sales commissions 1,427 1,358 -69
Transport expenses 12,966 10,705 -2,261
Advertising expenses and sales promotion
expenses 18,130 16,063 -2,067
Allowance for doubtful accounts 204 106 -98
Provision for product warranties 1,425 1,656 +231
Provision for retirement benefits 7,107 5,299 -1,808
Salaries and benefits 59,225 52,628 -6,597
Rent 4,686 3,469 -1,217
Depreciation and amortization 3,827 3,744 -83
Net Sales by Region
(Millions of yen)
0
600,000
400,000
200,000
07/3 08/3 09/3 10/3 11/3
� Japan
� North America
� Europe
� Asia, Oceania, and other areas
373,866
+92.8%