Investor Relations

Overview of Business Performance

Overview of Business PerformancePrinting Tips

FY ended March 31, 2013

In the consolidated fiscal year under review (April 1, 2012 to March 31, 2013), the Japanese economy continued to follow a mild recovery trend on the strength of post-quake reconstruction demand. Although positive developments, such as the depreciation of the yen and the rise in stock prices, have been observed from the end of last year due to expectations for economic policies, uncertainties about the future have yet to be dispelled completely. Meanwhile, with respect to the global economy, signs of an economic recovery were observed in some sectors in the United States, but the recession continued in Europe due to economic uncertainties stemming from prolonged financial problems. Although emerging markets, for the most part, achieved strong growth, the pace of economic growth slowed down in China.

Amid these circumstances, the Electronic Musical Instruments Business introduced many new high-value-added products into the market and strove to appeal directly to customers through events, shop-in-shops, etc. Furthermore, the Company also focused its efforts on proposing applications in the education field and expanding its sales and distribution network.
In addition, the Company embarked on business structural reforms in response to the prolonged performance decline, and shifted the production regime overseas, consolidated domestic factories and sales offices in Japan and abroad, and made personnel cutbacks of approximately 300 staff members in Japan and abroad by the end of March 2013.

By product, sales of electronic drums and keyboards with automatic accompaniment increased year on year due to the impact of new products. However, with respect to digital pianos, sales decreased year on year due to the growing trend toward lower prices in the market, and furthermore, owing to such factors as sluggish sales of guitar effects, etc., sales of musical instruments in general were weak. As for professional video, professional audio and computer music equipment, sales of music production software and professional audio equipment declined year on year.

By region, although sales grew steadily in Asian countries, including China, sales decreased in the major markets of North America and Europe amid continuously weak individual consumption, in addition to a slight decrease in sales year on year in Japan.

As a result, combined with the impact of the strong yen, net sales decreased by 5.7% year on year to ¥39,889 million with an operating loss of ¥2,094 million (from an operating loss of ¥1,036 million for the previous consolidated fiscal year).

Electronic Musical Instruments Business

In the Computer Peripherals Business, the Company pursued “GlobalOne” which aims at strengthening the global sales system and product development and production regime and utilizing its integrated strength. In the sales system, the Company strove to strengthen sales marketing activities through the establishment of overseas subsidiaries. In the production regime, the manufacturing subsidiary in Thailand established in the previous fiscal year as the first overseas production base of the Computer Peripherals Business commenced mass production as scheduled.

By product, sales of printers and supplies were flat year on year due to the impact of new products introduced in the previous fiscal year, in spite of a decrease in sales of conventional models. In cutting plotters and 3D products too, sales were flat year on year.

By region, sales increased year on year in Japan and North America due to robust sales primarily of new printer products. In Europe, sales decreased year on year because of the impact of the economic slump in Southern Europe and the sharp appreciation of the yen. In Asia, sales fell year on year due to a substantial decline in sales resulting from the change of the sales system in Korea, as well as a slowdown in the pace of economic growth and intensified competition in China.

As a result, net sales decreased by 0.3% year on year to ¥32,420 million, and operating income decreased by 13.9% year on year to ¥1,643 million due to a year on year increase in selling, general and administrative expenses.

Computer Peripherals Business

As a result of the factors described above, overall net sales decreased by 3.4% year on year to ¥72,310 million, operating loss was ¥451 million (from an operating income of ¥872 million for the previous consolidated fiscal year), and ordinary loss was ¥754 million (from an ordinary income of ¥136 million for the previous consolidated fiscal year). Ultimately, the Company posted a net loss of ¥4,066 million (from a net loss of ¥1,930 million for the previous consolidated fiscal year) due to such factors as business restructuring cost and tax expenses in addition to the decrease in operating income.

The average exchange rates of major currencies for the current consolidated fiscal year (*) were 80 yen to the US dollar (unchanged from the previous consolidated fiscal year), and 103 yen to the euro (from 111 yen for the previous consolidated fiscal year).
(*) Average for January to December 2012, because the fiscal year of the Company’s foreign consolidated subsidiaries is from January to December.