Yamaha Corporation (YAMCY) Q1 2027 Earnings Call Prepared Remarks Transcript

Mitsuru Shomon
Executive Officer & Executive GM of Corporate Management Unit

My name is Shomon, and I will now present the financial results for the first quarter of the fiscal year ending March 2027. First, please turn to Page 1. This page summarizes the key points of our earnings announcement regarding the overview. Revenue increased due to a recovery in musical instrument sales and a weakening yen. Despite higher procurement costs, core operating profit increased, driven by an improved product mix resulting from growth in digital musical instruments, price optimization and favorable exchange rates.

Regarding our full year earnings outlook, while uncertainties remain, such as rising procurement costs and the situation in the Middle East, we are maintaining our previous forecast for May 2026 for revenue and core operating profit, supported by further price optimization efforts and a weaker yen. However, we are revising our net profit forecast upward from the previous estimate following the refund of U.S. tariffs. Please turn to the next page.

The performance summary is next. Please turn to the next page, Page 3. This is the business performance summary. Revenue was JPY 116.3 billion, an increase of JPY 12.4 billion from the previous year, representing a 12% rise. Excluding the impact of exchange rates, revenue increased by 2.9% from the previous year. Core operating profit was JPY 9.3 billion, an increase of JPY 4.6 billion from the previous year or 97.7%.

Net profit was JPY 10.7 billion. This includes JPY 4.3 billion in other income representing U.S. tariff refunds that have already been completed or finalized, resulting in an increase of JPY 8.3 billion from the previous year, a 348.8% rise or