Yamaha Corp

I am Yamaura. Thank you very much for joining. I'd like to present the financial results of the second quarter for the fiscal year ending in March of 2025. I'd like to start by presenting the highlights of the first half of fiscal year ending in March of 2025. Despite the strong performance of B2B sales of audio equipment and the impact of yen depreciation, revenue decreased year-over-year in real terms due to weak sales of musical instruments caused by a prolonged sluggish market in China. Core operating profit increased due to a major rise in audio equipment and the impact of foreign exchange rates, more than offsetting the profit decrease of musical instruments. Given the further deceleration in the Chinese piano market, we have recognized an impairment loss of 7.8 billion yen for piano production facilities in China and Indonesia. The full-year revenue and profit forecasts were revised downward due to the further deceleration of the Chinese market. Our forecast for the year-end dividend per share remains unchanged at 13 yen. As you can see in the footnotes, this translates to a year-end dividend of 39 yen and an annual dividend of 76 yen before the stock split.

Next, let's look at our financial results in more detail.

Revenue for the first half of this fiscal year stood at 228.1 billion yen, up 8.5 billion yen, or an increase of 3.9%. As you can see in the footnotes, if the impact of foreign exchange rates is excluded, revenue actually decreased by 1.8%. Core operating profit came to 20.4 billion yen, up 5.1 billion yen year-over-year, or an increase of 33%. Net profit came to 5.3 billion yen, down 9.7 billion yen year-over-year. This significant decrease is due to the downward adjustment of our long-term sales outlook from the Chinese market and the write-down of our piano factories in Hanzhou, China, and Jakarta.