FACTBOOK 2003
Year Ended March 31, 2003

c1

PROFILE

CORPORATE PRINCIPLESCorporate Objective
Yamaha will continue to create “Kando” and enrichculture with technology and passion born of soundand music, together with people all over the world.
“Kando” (is a Japanese word that) signifies an inspired
state of mind.

Brand Slogan
CREATING “KANDO” TOGETHER
Promise to Stakeholders
To Customers
Yamaha will fully satisfy the customer, by offering high quality
products and services, which use new and traditional technologies, as well as creativity and artistry, and continue to be a
known, trusted and loved brand.
To Shareholders
Yamaha will increase the satisfaction and understanding of its
shareholders by striving for healthy profits and returns, and byachieving productivity, using high quality, transparent management, and practicing disclosure.
To Employees
Yamaha strives to create an open atmosphere where employees
can realize goals, be given opportunities, and be evaluated fairly. Yamaha will be an organization where employees can demonstrate their abilities fully, have confidence, and earn pride.
To Society
Yamaha will give first priority to safety, and will care for theenvironment. Yamaha will be a good corporate citizen, andobserve laws and work ethically, developing the economy, andcontributing to local and global culture.

CONTENTS
1
Financial Highlights
2
Segment Information
8
Performance Trends
11
Profitability and Growth
12Soundness and Stability
14
Efficiency

16
17
18
20
21
22
24

Cash FlowsPer Share Data
Balance Sheets
Statements of Operations
Statements of Cash Flows
Shareholder Information
Network

FINANCIAL HIGHLIGHTS

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3563,751

527,897

519,104

504,406

524,763

4,365.75

(97)

8,082

23,001

11,04332,043266.58Net income (loss)(15,879)(40,777)

13,320(10,274)

17,947149.31

Total assets

532,852

543,088522,486

509,663

512,716

4,265.52

Total shareholders’ equity

214,896

221,750

196,733

201,965

214,471

1,784.28

Interest-bearing liabilities

97,31888,167103,304

96,16690,436752.38Net income (loss)
per share (Yen)(76.89)(197.45)64.50(49.75)

86.65

0.72

21,59922,27723,02023,563

Net sales
Operating income (loss)

Number of employees

Throughout this fact book, an exchange rate of US$1=¥120.20, the approximate rate prevailing on March 31, 2003, was used for convenience only.

1

SEGMENT INFORMATIONMusical Instruments
Sales

Operating Income

Percentage of Net Sales(Millions of Yen)

(Millions of Yen)

(%)

100

35,000450,000
408,025
30,694

387,004

27,077284,901 286,920

72.3

292,647

73.3

56.9
54.8

55.7

12,290
9,792

4,738

AV/IT

0

0

0

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

Including AV/IT

AV/IT

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Sales

408,025

387,004

284,901

286,920292,647

2,434.67

Operating income

30,69427,077

12,290

4,738

9,792

81.46

Capital expenditure

9,936

7,846

6,117

8,837

9,067

75.43

Depreciation expenses

9,608

9,920

7,224

8,373

8,001

66.56

R&D expenses

16,133

11,195

11,521

11,83498.45

Note: Figures in 1999/3~2000/3 include AV/IT.

2

AV/IT
Sales

Operating Income

Percentage of Net Sales(Millions of Yen)

(Millions of Yen)(%)

150,000

6,000

100,197

30

3,904

95,214

19.3
83,670

18.9

3,250
3,037
15.9

0

1999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2001/3

2002/3

2003/3

2003/3

100,197

95,214

83,670696.09Operating income

3,904

3,037

3,250

27.04

Capital expenditure

1,587

2,133

1,503

12.50

Depreciation expenses

1,783

1,877

1,807

15.03

R&D expenses

4,970

5,096

5,194

43.21

Sales

Note: Figures in 1999/3~2000/3 are included in Musical Instruments.

3

2000/3

Lifestyle-Related Products
Sales

Operating Income (Loss)

Percentage of Net Sales(Millions of Yen)

(Millions of Yen)(%)

60,00046,86546,94444,841

20

2,000

1,046
45,714892

46,031

461

0

9.0

8.8

-995

9.1

8.8

7.9

-2,4740

1999/3 2000/3 2001/3 2002/3 2003/3-3,0001999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Sales

44,841

46,86546,94445,71446,031382.95

Operating income (loss)(2,474)

(995)

892

1,046

461

3.84

Capital expenditure

1,940

1,683

991

851

911

7.58

Depreciation expenses

1,838

1,518

1,554

1,505

1,002

8.34

1,517

1,364

1,282

1,319

10.97

R&D expenses

4Electronic Equipment and Metal Products
Sales

Operating Income (Loss)

Percentage of Net Sales(Millions of Yen)

(Millions of Yen)(%)

19,282100,000

73,22620

20,0006,654
4,351
60,554055,880

12.9
11.5
10.5

43,221
36,6288.3
7.3-18,1130

1999/3 2000/3 2001/3 2002/3 2003/3-28,4210-30,000

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Sales

73,22655,88043,221

36,62860,554503.78Operating income (loss)(28,421)(18,113)

6,654

4,351

19,282160.42

Capital expenditure

21,231

6,968

2,834

1,921

3,320

27.62

Depreciation expenses

22,315

14,365

2,653

3,068

2,845

23.67

4,503

3,135

3,853

3,188

26.52

R&D expenses

5

Recreation
Sales

Operating Loss

Percentage of Net Sales(Millions of Yen)

(Millions of Yen)(%)

40,0000

10-781-1,110-1,24023,324-1,28323,484
21,771

21,590-1,741

20,903

4.4
4.1

4.1

0

1999/3 2000/3 2001/3 2002/3 2003/3

4.3
4.0

-4,0000

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Sales

23,32423,484

21,771

21,59020,903173.90Operating loss

(1,240)(781)(1,283)(1,741)(1,110)(9.23)

Capital expenditure

1,744

1,403

1,392

1,867

728

6.06

Depreciation expenses

3,085

3,009

2,959

2,893

2,932

24.39

0

0

2

0

0

R&D expenses

6Others
Sales

Operating Income (Loss)

Percentage of Net Sales(Millions of Yen)

(Millions of Yen)(%)

30,000

2,000

10

1,534

22,067
20,956
18,339543
14,333

14,663
365
204
4.2
0

4.0
3.6

2.5

2.7

-389

0

1999/3 2000/3 2001/3 2002/3 2003/3-1,0001999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Sales

14,333

14,66322,067

18,33920,956174.34

Operating income (loss)

1,534

204

543

(389)

365

3.04

Capital expenditure

938

927

1,846

1,015

1,352

11.25

Depreciation expenses

859

798

1,135

1,050

996

8.29

435

494

785

904

7.52

R&D expenses

7

PERFORMANCE TRENDSNet Sales/Overseas Sales Ratio

Cost of Sales/Cost of Sales Ratio(Millions of Yen/%)(Millions of Yen/%)

650,000

650,000

563,751
527,897

519,104

524,763504,406

71.4

70.4
67.5

66.7

64.4
402,240
371,757
346,200 340,412 338,307

42.8

41.7

40.6

42.5

40.5

0

1999/3 2000/3 2001/3 2002/3 2003/3
Overseas sales ratio0

1999/3 2000/3 2001/3 2002/3 2003/3
Cost of sales ratio

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Net sales

563,751

527,897

519,104

504,406

524,763

4,365.75

Japan322,539

308,042

308,539

289,951

312,1292,596.75

North America

96,20396,00591,72093,52489,728746.49Europe82,51773,397

72,95773,45877,185642.14Other

62,49150,45245,88647,47245,721

380.37

42.8

41.7

40.6

42.5

40.5

Cost of sales

402,240

371,757

346,200

340,412338,3072,814.53

Gross profit

161,511

156,140

172,904

163,994

186,456

1,551.21

Overseas sales ratio (%)

8

SG&A Expenses/
SG&A Expenses to Net Sales

Operating Income (Loss)/
Operating Income (Loss) to Net Sales

Net Income (Loss)/
Net Income (Loss) to Net Sales(Millions of Yen/%)(Millions of Yen/%)(Millions of Yen/%)30,00040,000200,000

32,043

17,947

161,608
148,057 149,902

13,320152,951 154,413
23,001

3.4
2.6
0
-2.0

28.7

28.0

28.9

30.3

29.4

11,043
8,082

-0.0

6.1

-2.8
-10,274

4.4-15,879

2.2
1.5

-7.7

0
-97

-40,777

SG&A expenses to net sales-50,000-20,0000

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

Net income (loss) to net sales

Operating income (loss) to net sales

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

SG&A expenses

161,608

148,057

149,902

152,951

154,413

1,284.63

Personnel expenses

75,53965,35565,402

67,265

68,778572.20Advertising & promotion

22,87920,81122,052

22,455

21,740180.87

(97)

8,082

23,001

11,04332,043266.58(15,879)(40,777)

13,320(10,274)

17,947149.31

Operating income (loss)
Net income (loss)

9

Capital Expenditure

Depreciation Expenses

R&D Expenses(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

40,00040,00040,00036,44634,342

28,635

22,58822,53922,441

21,15820,70018,767

18,544
16,627

17,31016,883

17,586

14,7700

1999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Capital expenditure

34,342

18,544

14,77016,627

16,883140.46

Depreciation expenses

36,44628,635

17,31018,767

17,586146.31R&D expenses

20,70022,58821,15822,53922,441

186.7010

PROFITABILITY AND GROWTH

Return on Equity (ROE)

Return on Assets (ROA)

(%)

(%)

10

10

8.6
6.4

3.5
2.5
0

0

-2.0
-2.9
-5.2
-7.1

-7.6

-18.7
-20

1999/3 2000/3 2001/3 2002/3 2003/3-20

1999/3 2000/3 2001/3 2002/3 2003/3%

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3Return on equity (ROE)(7.1)(18.7)

6.4

(5.2)

8.6

Return on assets (ROA)

(2.9)

(7.6)

2.5

(2.0)

3.5

ROE = net income / shareholders’ equity (yearly average) x 100
ROA = net income / total assets (yearly average) x 100

11

SOUNDNESS AND STABILITY

Shareholders’ Equity Ratio

Interest Coverage

Current Ratio(%)(Times)

(%)

50

40.3

25

200

41.8

40.8

19.97

39.6
37.7

146.1
139.8
132.2

112.4

115.5

8.82

5.07
4.46

1.26
0

1999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

Shareholders’ equity ratio (%)

40.3

40.8

37.7

39.6

41.8

Interest paid

3,449

2,968

3,014

2,911

2,015

16.76

(97)

8,082

23,001

11,04332,043266.58Equity in earnings of unconsolidated
subsidiaries and affiliates

3,366

4,209

2,434

2,993

7,608

63.29

Interest and dividends received

1,070

957

1,137

735

582

4.84

Interest coverage (Times)

1.26

4.46

8.82

5.07

19.97

Current assets

212,911

205,979

231,872

211,140

221,089

1,839.34

Current liabilities

189,386

178,281

175,371

144,498

158,148

1,315.71

Current ratio (%)

112.4

115.5

132.2

146.1

139.8

Operating income (loss)

2003/3

Interest coverage = (operating income + interest and dividends received + equity in earnings of unconsolidated subsidiaries and affiliates) / interest paid

12

Interest-Bearing Liabilities/
Debt to Equity Ratio

Fixed Assets to Capital Ratio(%)(Millions of Yen/Times)

200

150,000

147.8

147.7
103,304
97,318131.8

96,166

136.0

131.9

90,436

88,167

0.53
0.48
0.45
0.40

0.42

0

0

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

Debt to equity ratio

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Shareholders’ equity

214,896

221,750

196,733

201,965

214,471

1,784.28

Interest-bearing liabilities

97,31888,167103,304

96,16690,436752.38Debt to equity ratio (Times)

0.45

0.40

0.53

0.48

0.42

283,202292,460

290,614

298,522291,627

131.8

131.9

147.7

147.8

136.0

Fixed assets
Fixed assets to capital ratio (%)

Interest-bearing liabilities = long-term debt + short-term debt + convertible bonds
Debt to equity ratio = interest-bearing liabilities / shareholders’ equity
Fixed assets to capital ratio = fixed assets / shareholders’ equity x 100

132,426.18

EFFICIENCY

Total Assets Turnover

Trade Receivables Turnover(Times)(Times)

1.5

8

6.95
6.40

1.05

6.55

6.52

6.40

1.03
0.98

0.97

0.98

0

1999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Net sales

563,751

527,897

519,104

504,406

524,763

4,365.75

Total assets

532,852

543,088522,486

509,663

512,716

4,265.52

1.05

0.98

0.97

0.98

1.03

87,62773,482

85,67871,844

79,130

6.40

6.55

6.52

6.40

6.95

Total assets turnover (Times)
Trade receivables
Trade receivables turnover (Times)
Total assets turnover = net sales / total assets (yearly average)
Trade receivables turnover = net sales / trade receivables (yearly average)

14658.32Inventories Turnover

Trade Payables Turnover(Times)(Times)

8

15

13.75

6.04

12.12

6.38

6.27

11.76

5.93
5.55

10.32

10.25

0

1999/3 2000/3 2001/3 2002/3 2003/3

0

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3Inventories

91,09577,416

97,66484,26480,144666.76

Finished products

56,74350,13663,89354,775

51,116425.26

Raw materials & work in process

34,352

27,28033,771

29,48929,028241.50

6.04

6.27

5.93

5.55

6.38

Trade payables

49,96952,33548,92436,88039,462

Trade payables turnover (Times)

12.12

10.32

10.25

11.76

13.75

Inventories turnover (Times)

Inventories turnover = net sales / inventories (yearly average)
Trade payables turnover = net sales / trade payables

15

328.30CASH FLOWSCash Flows from Operating Activities

Free Cash Flow Margin(Millions of Yen)(%)

5

40,00033,052

4.41

29,016

3.59

2.17

10,851
0
1.05

0

-2.80

-9,089-5-20,000

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Cash flows fromoperating activities

10,851(9,089)29,01633,052274.98Cash flows frominvesting activities

12,474(5,441)(10,437)(21,645)(180.07)

Free cash flow

23,325(14,530)

18,57911,40794.90

Net sales

527,897

519,104

504,406

524,763

4,365.75

4.41(2.80)

3.59

2.17

Free cash flow
margin (%)
Free cash flow margin = free cash flow / net sales x 100

16

PER SHARE DATANet Income (Loss) per Share

Shareholders’ Equity per ShareDividends per Share

(Yen)

(Yen)

(Yen)

86.65

100

1,500

20

64.50

0

1,040.56

1,073.75

1,040.06
978.15952.62-49.7510-76.898
7
6

3-197.45-250

1999/3 2000/3 2001/3 2002/3 2003/3

00

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

Yen

U.S. Dollars

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

2003/3

Net income (loss) per share(76.89)(197.45)64.50(49.75)

86.65

0.72

Shareholders’ equity per share

1,040.56

1,073.75

952.62

978.15 1,040.06

8.65

6

3

7

8

10

0.08

1,239

619

1,445

1,651

2,063

17.16

—

—

14.9

—

27.1

Dividends per share
Dividends paid (Millions of Yen)
Dividend payout ratio (%)
Payout ratio = dividends paid / net income (non-consolidated) x 100

17

BALANCE SHEETSMillions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

2002/3

2003/3

2003/3

Cash and bank deposits

41,074

44,485370.09Marketable securities

356

1,370

11.40

Notes and accounts receivable

74,51981,755680.16

Allowance for doubtful accounts(2,675)(2,625)(21.84)Inventories

84,26480,144666.76

Deferred income taxes

9,332

10,48987.26

Prepaid expenses and other current assets

4,267

5,469

45.50

211,140

221,089

1,839.34

Land

78,06976,835639.23

Buildings and structures

70,745

67,166558.79Machinery and equipment

35,44033,639279.86

Construction in progress

1,003

1,082

9.00

185,261

178,724

1,486.89

Investment securities

76,307

77,622645.77Long-term loans receivable

1,733

694

5.77

Lease deposits

5,087

5,013

41.71

Deferred income taxes

26,384

24,663205.18

173

107

0.89

3,573

4,800

39.93

Total investments and other assets

113,260

112,902939.28

Total Assets

509,663

512,716

4,265.52

ASSETS
Current assets:

Total current assets

Property, plant and equipment, net of accumulated depreciation:

Total property, plant and equipment, net of accumulated depreciation

Investments and other assets:

Excess of cost over net assets acquired
Other assets

18Millions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

2002/3

2003/3

2003/347,871

27,078225.27

Current portion of convertible bonds—

24,317202.30Current portion of long-term debt

4,363

10,09083.94

Notes and accounts payable

36,88039,462328.30Accrued expenses

41,98742,501353.59

Income taxes payable

1,224

3,101

25.80

Advances received

3,742

3,428

28.52

Deferred income taxes

65

92

0.77

Other current liabilities

8,360

8,074

67.17

144,498

158,148

1,315.71

Convertible bonds

24,317——Long-term debt

19,61528,951240.86

316

266

2.21

Deferred income taxes on land revaluation

14,638

13,577112.95

Accrued employees’ retirement benefits

59,07453,988449.15

LIABILITIESCurrent liabilities:
Short-term loans

Total current liabilities
Long-term liabilities:

Deferred income taxes

Directors’ retirement benefits

859

965

8.03

Long-term deposits received

38,472

36,848306.56

Other long-term liabilities

1,191

1,572

13.08

Total long-term liabilities

158,486

136,171

1,132.87

MINORITY INTERESTS

4,712

3,925

32.65

Common stock

28,53328,533237.38Additional paid-in capital

26,924——

Reserve for land revaluation

16,482——Retained earnings

157,589——

SHAREHOLDERS’ EQUITY

Capital surplus—

40,052333.21

Earned surplus—

162,344

1,350.62

Reserve for land revaluation—

16,152134.38Net unrealized holding gains/losses on other securities

766

378

3.14

Translation adjustments(28,280)(32,753)(272.49)

Total shareholders’ equity

202,014214,707

1,786.25

(49)

(236)

(1.96)

Total shareholders’ equity

201,965

214,471

1,784.28

Total Liabilities, Minority Interests and Shareholders’ Equity

509,663

512,716

4,265.52

Treasury stock, at cost

19

STATEMENTS OF OPERATIONSMillions of
U.S. Dollars

Millions of Yen

Fiscal Year Ended:

2002/3

2003/3

2003/3

Net sales

504,406

524,763

4,365.75

Cost of sales

340,412338,3072,814.53

Gross profit

163,994

186,456

1,551.21

Selling, general and administrative expenses

152,951

154,413

1,284.63

Operating income

11,04332,043266.58

735

582

4.84

Interest expense(2,911)(2,015)(16.76)

Sales rebates(4,477)(4,347)(36.16)

Loss on foreign exchange(352)(1,015)(8.44)

Gain on sale of marketable and investment securities

3,694

—

—

Loss from revaluation of investment securities(14,857)(7,746)(64.44)

Loss on sale or disposal of properties, net(1,672)(974)(8.10)

Equity in earnings of unconsolidated subsidiaries and affiliates

2,993

7,608

63.29

Structural reform expenses—(2,271)(18.89)Other, net

18

749

6.23

Total other income (expenses)(16,829)(9,429)(78.44)

Income (loss) before income taxes and minority interests(5,784)

22,612

188.12Current

1,507

3,962

32.96

Deferred

2,429

65

0.54

Total income taxes

3,936

4,027

33.50

Income (loss) before minority interests(9,723)

18,583154.60Minority interests

551

636

5.29

Net Income (Loss)(10,274)

17,947149.31Other income (expenses):
Interest and dividend income

Income taxes:

20

STATEMENTS OF CASH FLOWSMillions of Yen

Millions of
U.S. Dollars

Fiscal Year Ended:

2002/3

2003/3

2003/3

Cash flows from operating activities:
Income (loss) before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Loss from revaluation of investment securities
Decrease in employees’ retirement benefits, net of payments
Interest and dividend income
Interest expense
Equity in earnings of unconsolidated subsidiaries and affiliates
Gain on sale of investment securities
Loss on sale or disposal of properties, net
Net loss on foreign exchange
Structural reform expenses
Decrease (increase) in accounts and notes receivable—trade
Decrease in inventories
Increase (decrease) in accounts and notes payable—trade
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid, net of payment
Net cash provided by operating activities(5,784)
18,919(507)
14,857(8,210)(736)
2,911(2,993)(3,667)
1,672
63—
18,794
18,532(15,715)(4,775)33,360746(2,918)(2,171)29,016

22,612
17,699395
7,746(5,150)(583)
2,015(7,608)
—
974
242
1,509
(8,509)3,233
2,894(1,413)36,061
1,181(2,067)(2,123)33,052

188.12147.253.29
64.44(42.85)(4.85)
16.76(63.29)
—
8.10
2.01
12.55
(70.79)26.90
24.08(11.76)300.01
9.83(17.20)(17.66)274.98Cash flows from investing activities:
Purchases of properties
Proceeds from sale of properties
Purchases of investment securities
Proceeds from sale of investment securities
Other, net
Net cash used in investing activities(14,876)
888
(858)
4,074
336
(10,437)(15,730)
2,674(6,541)187(2,235)(21,645)(130.87)22.25(54.42)
1.56(18.59)(180.07)

Cash flows from financing activities:
Decrease in short-term loans
Proceeds from long-term debt
Repayments of long-term debt
Cash dividends paid
Cash dividends paid to minority shareholders
Repayments of resort member deposits
Purchases of treasury stock
Other, net
Net cash used in financing activities(13,241)
8,178(5,665)(1,652)
(468)
—
—
(31)
(12,880)(20,887)
18,908(3,065)(1,857)(268)(1,297)(133)
19(8,582)(173.77)
157.30(25.50)(15.45)(2.23)(10.79)(1.11)
0.16(71.40)

1,122
6,821
32,725(504)
2,319
40,571(4.19)
19.29
337.53

1,025
40,571

85
42,9760.71
357.54

Effect of exchange rate changes
on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents arising from
inclusion of subsidiaries in consolidation
Cash and Cash Equivalents at End of Year21

SHAREHOLDER INFORMATION

Share Price at the End
of Fiscal Year

Trading Volume(Million Shares)

(Yen)

250

2,500

148
1,335

1,318
1,254

122
114
107
912

88

832

0

0

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

Yen

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

Share price at the end of fiscal year

1,254

832

1,318

912

1,335

Share price—high

1,429

1,609

1,475

1,390

1,399

Share price—low

1,010

620

710

745

857

88

114

122

107

148

Trading volume (Million shares)

22

Dividend Yield

Price to Earnings Ratio

Price to Book Value Ratio(%)(Times)(Times)

3

50

2

1.38
1.28
1.21

20.4
0.93
15.4

0.88

0.77

0.75
0.53

0.48
0.36

0

1999/3 2000/3 2001/3 2002/3 2003/3

00

1999/3 2000/3 2001/3 2002/3 2003/3

1999/3 2000/3 2001/3 2002/3 2003/3

Fiscal Year Ended:

1999/3

2000/3

2001/3

2002/3

2003/3

Dividend yield (%)

0.48

0.36

0.53

0.88

0.75

Price to earnings ratio (Times)

—

—

20.4

—

15.4

Price to book value ratio (Times)

1.21

0.77

1.38

0.93

1.28

Number of shares issued (Thousand shares)

206,523

206,523

206,523

206,523

206,523

Market capitalization
at the end of fiscal year (Millions of Yen)

258,980

171,827

272,198

188,349

275,709

14.8

18.9

22.5

25.2

20.5

Percentage of shares owned
by foreign investors (%)

23

NETWORK
Main Domestic Group Companies
Musical Instruments
Yamaha Music Tokyo Co., Ltd.
Yamaha Music Nishi-Tokyo Co., Ltd.
Yamaha Music Yokohama Co., Ltd.
Yamaha Music Kanto Co., Ltd.
Yamaha Music Osaka Co., Ltd.
Yamaha Music Kobe Co., Ltd.
Yamaha Music Setouchi Co., Ltd.
Yamaha Music Nagoya Co., Ltd.
Yamaha Music Hamamatsu Co., Ltd.
Yamaha Music Kyushu Co., Ltd.
Yamaha Music Hokkaido Co., Ltd.
Yamaha Music Tohoku Co., Ltd.
Yamaha Music Trading Corporation
Yamaha Music Media Corporation
Yamaha Sound Technologies Inc.
Yamaha Music Craft Corporation
Yamaha Hall Co., Ltd.
Yamaha Piano Service Co., Ltd.
Yamaha Music Communications Co., Ltd.
Music Lease Corporation
MUSIC E-NET Inc.
AV/IT
YIS Corporation
D.S. Corporation
Lifestyle-Related Products
Yamaha Livingtec Corporation
Yamaha Living Products Corporation
Joywell Home Corporation
Electronic Equipment and Metal Products
Yamaha Kagoshima Semiconductor Inc.
Yamaha Metanix Corporation
Recreation
Kiroro Development Corporation
Haimurubushi Corporation
Katsuragi Corporation
Toba International Hotel Corporation
Tsumagoi Corporation
Nemunosato Corporation
Kiroro Associates Corporation
24

Others
Yamaha Fine Technologies Co., Ltd.
Yamaha Credit Corporation
Yamaha Insurance Service Co., Ltd.
Yamaha Business Support Corporation
Companies Accounted for Using the Equity Method
Yamaha Motor Co., Ltd.
KORG Inc.

YAMAHA’s Overseas Network
American Region
Yamaha Corporation of America
Yamaha Electronics Corporation, U.S.A.
Yamaha Exporting, Inc.
Yamaha Music Manufacturing, Inc.
Yamaha Musical Products, Inc.
Yamaha Music InterActive Inc.
YMH Digital Music Publishing LLC.
Yamaha Canada Music Ltd.
Yamaha de México, S.A. de C.V.
Yamaha Music Latin America, S.A.
Yamaha Musical do Brasil Ltda.

Asia/Oceania Region
Yamaha KHS Music Co., Ltd.
Taiwan Yamaha Musical Inst. Mfg. Co., Ltd.
Kaohsiung Yamaha Co., Ltd.
Yamaha Music & Electronics (China) Co., Ltd.
Tianjin Yamaha Electronic Musical Instruments, Inc.
Yamaha Trading (Shanghai) Co., Ltd.
Yamaha Electronics Trading (Shanghai) Co., Ltd.
Guangzhou Yamaha-Pearl River Piano Inc.
Xiaoshan Yamaha Musical Instruments Co., Ltd.
Yamaha Electronics (Suzhou) Co., Ltd.
Yamaha Music Korea Ltd.
Yamaha Music (Asia) Pte., Ltd.
Yamaha Electronics Asia Pte., Ltd.
Yamaha Music (Malaysia) Sdn. Bhd.
Yamaha Electronics Manufacturing Malaysia Sdn. Bhd.
PT. Yamaha Music Indonesia (Distributor)
PT. Yamaha Indonesia
PT. Yamaha Music Manufacturing Indonesia
PT. Yamaha Music Manufacturing Asia
PT. Yamaha Musical Products Indonesia
PT. Yamaha Electronics Manufacturing Indonesia
Siam Music Yamaha Co., Ltd.
Yamaha Music Australia Pty., Ltd.
Yamaha Music Gulf FZEEuropean Region
Yamaha Music Holding Europe G.m.b.H.
Yamaha Music Central Europe G.m.b.H.
Yamaha Elektronik Europa G.m.b.H.
Yamaha-Kemble Music (U.K.) Ltd.
Yamaha Electronics (U.K.) Ltd.
Kemble & Company Ltd.
Kemble Music Ltd.
Yamaha Musique France S.A.S.
Yamaha Electronique France S.A.S.
Yamaha Electronique Alsace S.A.
Yamaha Scandinavia AB
Yamaha Musica Italia S.p.A.
Yamaha-Hazen Música S.A.

25

c4