Briefing on the Musical Instruments Business

[ Image ] Presenter:Hiroo Okabe Director and Managing Executive Officer

Presenter:Hiroo Okabe Director and Managing Executive Officer

Briefing on the Musical Instruments Business

Outline of Today’s Presentation

Outline of Medium-Term Business Plan

Position of Musical Instruments Business Throughout the Company

Yamaha Group Corporate Philosophy

Vision of the Musical Instruments Business

Value of the Musical Instruments Business

Company-Wide Slogan

Company-Wide Fundamental Policies

Fundamental Policies of Musical Instruments Business

Targets

Recognition of Business Environment and Key Issues

Recognition of Business Environment 【Customers】

Recognition of Business Environment 【Sales Network】

Recognition of Business Environment 【Competition】

Recognition of Business Environment 【Areas of Concern】

Key Issues

1. Accelerate Product Innovation and Development

2. Strengthen Manufacturing Process

3. Strengthen Marketing Power 1, 2

3. Strengthen Marketing Power 3, 4

4. Operate More Efficiently

Review of the First Year

Net Sales (Musical instrument business overall)

Net Sales (By region)

Net Sales (By product)

Operating Income

Analysis of Operating Income

Inventories

Progress of Key Measures and Future Development

Map of Key Measures

1. Promote Total Piano Strategy

2. Build High Added-Value Strategies 1

2. Build High Added-Value Strategies 2

3. Rebuild Guitar Business 1

3. Rebuild Guitar Business 2

3. Rebuild Guitar Business 3

4. Reorganize and Reinforce Production Bases 1

4. Reorganize and Reinforce Production Bases 2

4. Reorganize and Reinforce Production Bases 3

4. Reorganize and Reinforce Production Bases 4

5. Expansion Measures to Open New Stores and Schools 1

5. Expansion Measures to Open New Stores and Schools

5. Expansion Measures to Open New Stores and Schools 2

5. Expansion Measures to Open New Stores and Schools

6. Strengthen Base of Music Entertainment Business

6. Strengthen Base of Music Entertainment Business

7. Growth in Emerging Markets

8. Expansion of Commercial Audio Equipment Business 1

8. Expansion of Commercial Audio Equipment Business 2

9. Promote Business Development

Projections for the Second Year

Net Sales (Musical instrument business overall)

Net Sales (By region)

Net Sales (By region: excluding impact of exchange rates)

Net Sales (By product)

Operating Income

Analysis of Operating Income

Inventories

In this report, the divs forecast for the Company's future performance have been calculated on the basis of information currently available to Yamaha and the Yamaha Group. Forecasts are, therefore, subject to risks and uncertainties. Accordingly, actual performance may differ greatly from our predictions depending on changes in operating and economic conditions, demand trends, and the value of key currencies, such as the U.S. dollar and the euro.