[Company analysis] Yamaha Corporation (ヤマハ)

「Yamaha Corporation (ヤマハ)」is famous for its musical instruments business including pianos, but in fact, it is a comprehensive manufacturing company that manufactures and sells not only musical instruments but also semiconductors, audio equipment, sports equipment, and automobile parts. 「Yamaha Motor Corporation(ヤマハ発動機)」, which is known for its motorcycles and outboard motors, was originally an independent company of Yamaha's motorcycle division. The number of consolidated employees is approximately 20,375.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Yamaha Corp.
Company name (Japanese)	ヤマハ
Date of establishment	October 12, 1897
Headquarters location	〒430-8650 静岡県浜松市中区中沢町10番1号
Capital	28,534
Consolidated sales	437,416
Consolidated operating profit	56,030
Consolidated total assets	514,762
Consolidated capital	382,771
Capital adequacy ratio	74.4%
Consolidated number of employees	20,375

 

 

 

2. Summary and Features

 
The beginning of「Yamaha」goes back to 1887. When the founder, Yamaha Torakusu(山葉寅楠), started the organ repair business. Soon after its founding, they succeeded in Japan's first organ production. Then, he established 「Nippon Gakki Co. Ltd.(日本楽器製造株式会社)」, the direct predecessor of「Yamaha」in 1897. From 1900, this company started piano manufacturing  as well as organs.

In 1935, they released the first electronic musical instrument "Magna Organ", and grew into a comprehensive musical instrument manufacturer. During World War II, at the request of the military, they worked on the production of wood and metal propellers for military aircraft. The technical capabilities that they earned by this experience came back to them when they established「Yamaha Motor Corporation」.

In 1969, this company became the world's largest piano manufacturer, and even now, they are maintaining the position in terms of sales. In addition to pianos, they are also the world's largest comprehensive musical instrument manufacturer. 「Yamaha」handles not only musical instruments often used in schools such as harmonica and recorders, but also more than 100 types of musical instruments ranging from electric guitars, violins, cellos and trumpets.

Besides,「Yamaha」is a company that is extremely active in business diversification. With electronic musical instruments such as Electone and electronic pianos, they are expanding into various departments from electronic components such as semiconductors, network equipment such as routers, to audio equipment. In addition, based on the woodworking processing technology that they have accumulated in the manufacturing of musical instruments, they have also started manufacturing automobile parts such as wood panels for high-end cars. Nowadays, they also carry out music classes, music-related publications, recreation businesses, and sports businesses such as golf.

Still, the most famous business of「Yamaha」is piano manufacturing. In the piano field, they established the top share in the world owing to the overwhelming quality and brand power. However, price competitiveness is lower than their competitors. In addition, with all efforts that they invested in business diversification, still their sales heavily rely on music instruments business.

 

 

 

3. Major Business

 

■ Musical instrument business
They handle pianos, electronic musical instruments, wind / string / percussion instruments, educational instruments, music classes, English classes, music software, etc.

■ Audio equipment business
They handle AV equipment, professional audio equipment, network equipment, voice communication equipment, music production software, etc.

■ Parts / equipment / Others
They are engaged in various businesses such as electronic equipment, automobile interior parts, factory automation equipment, golf equipment business, and resort business.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		408,248	432,967	437,416
Consolidated operating profit		44,302	48,833	56,030
Consolidated total assets		522,362	560,184	514,762
Consolidated net assets		367,437	388,345	382,771
Breakdown of sales	Musical instrument business	257,664	274,486	281,993
	Audio equipment business	115,484	121,788	120,710
	Others	35,099	36,692	34,713