Consolidated Business Results Summary - First Half of Fiscal Year Ending December 31, 2016 -

IWATA, August 4, 2016 -Yamaha Motor Co., Ltd. (Tokyo:7272) announces consolidated business results for the first half.
Net sales for Yamaha Motor Co., Ltd.'s consolidated accounting period for the second half of the fiscal year ending December 31, 2016 were 778.3 billion yen, (a decrease of 50.4 billion yen or 6.1% compared with the same period the previous fiscal year), and operating income was 65.4 billion yen (a decrease of 8.0 billion yen or 10.9%). Due to foreign exchange losses etc., ordinary income was 55.3 billion yen (a decrease of 19.1 billion yen or 25.7% against the same period the previous fiscal year), and net income for the half year attributable to parent company shareholders was 32.4 billion yen (a decrease of 19.7 billion yen or 37.8%).
Developed markets experienced a decrease in sales and income compared with the same period the previous fiscal year due to the appreciating yen. In the emerging markets motorcycle business segment, while net sales decreased due to lower unit sales in Indonesia, Brazil, etc., operating income was on a similar level to the previous year thanks to the effects of cost reductions such as product mix improvements and promotion of the platform transition absorbing the effects of local currency depreciation. In addition, development costs related to future growth were systematically invested across the entire company.
For the first half consolidated accounting period, the U.S. dollar traded at 112 yen (an appreciation of 8 yen from the same period the previous fiscal year), and the euro at 125 yen (an appreciation of 9 yen).

Results by Business Segment
Motorcycles:
Net sales of motorcycle products overall were 477.5 billion yen (a decrease of 49.5 billion yen or 9.4% compared with the same period the previous fiscal year), and operating income was 18.1 billion yen (a decrease of 4.0 billion yen or 18.0%).
For unit sales in developed markets, while Europe experienced an increase due to the effect of the launch of new products such as the MT-10 and XSR900, North America saw a decrease due to the planned reductions in distribution inventories, leading to overall unit sales on a similar level to the previous year. Although net sales and operating income both decreased due to the appreciating yen, they both remained in the black.
Unit sales in the emerging markets of India, the Philippines, Vietnam, and Thailand increased, but decreased in Indonesia and Brazil due to market slumps etc., leading to overall unit sales on a similar level to the previous year. While net sales decreased, operating income was on a similar level to the previous year thanks to the effects of product mix improvements and cost reductions etc. absorbing the effects of local currency depreciation.

Marine:
Net sales across the entire marine business segment were 170.3 billion yen (a decrease of 1.4 billion yen or 0.8% compared with the same period the previous fiscal year), and operating income was 38.3 billion yen (a decrease of 2.4 billion yen or 5.9%).
For unit sales, while products such as outboard motors increased in the main North American market, overall unit sales were on a similar level to the previous year. Although the appreciating yen led to a decrease in sales and income, the operating income ratio remained over 20%.

Power Products:
Net sales for the entire power products segment were 69.8 billion yen (a decrease of 0.9 billion yen or 1.2% compared with the same period the previous fiscal year), and operating income was 2.7 billion yen (a decrease of 2.6 billion yen or 49.7%).
Unit sales of products such as snowmobiles and golf cars etc. decreased, leading to a decrease in sales and income.

Industrial Machinery & Robot Products:
Net sales for the entire industrial machinery and robots business segment were 23.6 billion yen (an increase of 0.2 billion yen or 0.7% compared with the same period in the previous fiscal year), and operating income was 4.1 billion yen (an increase of 0.3 billion yen or 6.8%).
Increases in sales and income were achieved thanks to an increase in robot unit sales.

Other Products:
Net sales of the other products business overall were 37.1 billion yen (an increase of 1.3 billion yen or 3.5%), and operating income was 2.3 billion yen (an increase of 0.8 billion yen or 51.6%).
For electrically power assisted bicycles, unit sales in Japan increased, and exports of E-kits (drive units for electrically power assisted bicycles) to Europe grew significantly, leading to increased sales and income.

Forecast of consolidated business results:
Regarding the anticipated consolidated business results for the fiscal year ending December 31, 2016, in the emerging markets motorcycle business segment, continued favorable sales are expected in Vietnam, the Philippines, Taiwan, etc., and increases in income are expected through product mix improvements, cost reductions, etc. However, developed markets are expected to experience a decrease in sales and income due to the appreciating yen. Net sales and the various income figures are therefore revised as follows.

The exchange rates for the second half of the fiscal year are based on the U.S. dollar at 100 yen (an appreciation of 17 yen from the initial forecast, and an appreciation of 22 yen compared with the same period the previous fiscal year), and the euro at 110 yen (an appreciation of 17 yen from the initial forecast, and an appreciation of 25 yen compared with the same period the previous fiscal year). The exchange rates for the entire fiscal year are based on the U.S. dollar at 106 yen (an appreciation of 11 yen from the initial forecast, and an appreciation of 15 yen compared with the same period the previous fiscal year), and the euro at 117 yen (an appreciation of 10 yen from the initial forecast, and an appreciation of 17 yen compared with the same period the previous fiscal year).

Basic policy concerning profit distribution and dividends for the current and subsequent fiscal year
Recognizing that shareholders' interests represent one of the Company's highest management priorities, the Company has been striving to meet shareholder expectations by working to maximize its corporate value.
With regards to dividends, the Company is aiming towards a dividend policy of 30% of net income attributable to parent company shareholders, and focusing on increasing the earning power of our existing business, maintaining and increasing a stable financial platform, and increasing new growth investment and stock dividends.
The Company has determined that, despite the effect of the appreciating yen, given the steady increase in earning power through improving product competitiveness, platform cost reductions, etc., based on the above dividend policy the forecast total dividend for the year per share will be changed to 60 yen at a dividend payout ratio of 34.9% (a decrease of 10 yen from the initial forecast, and an increase of 16 yen compared with the previous fiscal year), with an interim dividend of 30 yen (a decrease of 5 yen from the initial forecast, and an increase of 8 yen compared with the previous fiscal year).

(Note)
For the consolidated accounting period for the first quarter of the fiscal year ending December 31, 2016, sales finance-related sales, income, and expenses which had been previously recognized as "sales expenses and general administration costs", "non-operating income," and "non-operating expenses" have been changed to be recognized as "net sales", "cost of sales," and "sales expenses and general expenses".
Related aspects of the quarterly consolidated financial statements and consolidated financial statements of the consolidated accounting period for the first half of the previous fiscal year and the previous consolidated financial year will be reclassified in order to reflect these changes in reporting.