Consolidated Business Results Summary — First Nine Months of Fiscal Year Ending December 31, 2021 —

Consolidated Business Results

IWATA, November 8, 2021 - Yamaha Motor Co., Ltd. (Tokyo: 7272) announces its consolidated business results for the first nine months of the fiscal year ending December 31, 2021.
Net sales for the period were 1,362.6 billion yen (an increase of 295.5 billion yen or 27.7% compared with the same period of the previous fiscal year) and operating income was 154.6 billion yen (an increase of 98.3 billion yen or 174.4%). Ordinary income was 160.6 billion yen (an increase of 100.9 billion yen or 168.9%) and net income attributable to owners of parent was 137.0 billion yen (an increase of 97.0 billion yen or 242.0%). These represent the Company’s highest figures ever for the first nine months of a consolidated accounting period.
Thanks to higher unit sales as well as the increase in unit purchase prices, net sales increased companywide despite the impacts of lower production and more brought on by the supply shortage of semiconductors and other parts. Operating income rose significantly in part due to the increase in sales but also due to the curbing of fixed costs and manufacturing expenses through the implementation of remote work and other digital methods, a decrease in the allowance for doubtful accounts, and other factors working to absorb the effects of soaring logistics costs and raw material prices. The 12.8 billion yen gain on the sale of Yamaha Corporation shares carried out in August has been included as an extraordinary gain.
For the first nine months of this consolidated accounting period, the U.S. dollar traded at 109 yen (a depreciation of 1 yen from the same period of the previous fiscal year) and the euro at 130 yen (a depreciation of 9 yen).

Results by Business Segment

Land Mobility Business

Net sales were 882.0 billion yen (an increase of 199.7 billion yen or 29.3% compared with the same period of the previous fiscal year) and operating income was 60.4 billion yen (compared to an operating income of 8.9 billion yen in the same period of the previous fiscal year).
With motorcycles in developed markets, demand increased mainly for off-road models due to the boom in outdoor and family recreation triggered by the COVID-19 pandemic. This drove up unit sales, resulting in higher net sales and profits. On the other hand, market inventory deficiencies continue due to the shortage of semiconductors and other parts as well as distribution delays from the shortage of shipping containers.
For motorcycles in emerging markets, the utilization rate of factories and dealerships declined due to new waves of COVID-19 infections in Southeast Asia, but activity restrictions have been relaxed in Indonesia and other markets, bringing about a recovery trend. In addition, increased unit sales of premium segment models led to an improved model mix, and sales and profits both rose.
The strong recreational demand continued for RVs (all-terrain vehicles, recreational off-highway vehicles, and snowmobiles). Despite the impact of production delays from insufficient parts supply and other factors, greater unit sales led to higher net sales and profits.
For electrically power-assisted bicycles, the current reevaluation of the advantages bicycles have for getting to and from nurseries, schools, and offices among other factors helped keep sales of complete Yamaha-brand bicycles in Japan and e-Bike system kits (electrically power-assisted bicycle drive units) for Europe strong, resulting in higher sales and profits.

Marine Products Business

Net sales were 302.6 billion yen (an increase of 55.2 billion yen or 22.3% compared with the same period of the previous fiscal year) and operating income was 64.5 billion yen (an increase of 23.9 billion yen or 58.7%).
For outboard motors, demand for large models in developed markets remained strong and demand in emerging markets also recovered. The global shipping container shortage is still causing delays in loading ships with product, but boosting our production numbers has improved our product supply and this increased unit sales. Also, boat and personal watercraft unit sales increased due to progress with measures to counter raw material procurement delays triggered by the severe cold wave that hit the U.S. in February. As a result, sales and profits increased for the Marine Products business as a whole.

Robotics Business

Net sales were 88.6 billion yen (an increase of 33.9 billion yen or 62.0% compared with the same period of the previous fiscal year) and operating income was 13.8 billion yen (compared to an operating income of 1.0 billion yen in the same period of the previous fiscal year).
In addition to continued strong sales in Asia (including China, Taiwan, and South Korea), sales in Japan, Europe, and the United States were also strong and surface mounter unit sales grew. Yamaha Robotics Holdings Co., Ltd. also continued posting strong sales and has returned to profitability since the second quarter of the current consolidated fiscal year. As a result, sales and profits increased accordingly.

Financial Services Business

Net sales were 35.9 billion yen (an increase of 1.6 billion yen or 4.6% compared with the same period of the previous fiscal year) and operating income was 15.0 billion yen (an increase of 9.2 billion yen or 158.3%).
The decrease in market inventories led to a decrease in wholesale receivables, but an increase in retail financing and a reversal of allowance for doubtful accounts as a one-time factor brought in higher sales and profits.

Other Products Business

Net sales were 53.6 billion yen (an increase of 5.2 billion yen or 10.7% compared with the same period of the previous fiscal year) and operating income was 0.9 billion yen (operating income for the same period of the previous fiscal year: 0.02 billion yen).
Unit sales of golf cars increased thanks to steady demand, which resulted in greater sales and profits for the business.

Forecast of Consolidated Business Results

For the remainder of the fiscal year ending December 31, 2021, net sales are expected to be lower than the previous forecast due to the impact of lost sales opportunities from the shortage of semiconductors and other parts, and the effects of COVID-19 cases resurging in Southeast Asia and other regions.
Operating income is expected to exceed the previous forecast despite the effects of the abovementioned net sales decrease by implementing even further cost reductions.

These forecast figures are based on the U.S. dollar trading at 109 yen during the fiscal year (unchanged from the previous forecast and a depreciation of 3 yen from the same period of the previous fiscal year) and the euro at 130 yen (unchanged from the previous forecast and a depreciation of 8 yen from the same period of the previous fiscal year).

Basic policy concerning profit distribution and dividends for the current fiscal year

Recognizing that improvement of shareholder benefits represents one of the Company's highest management priorities, the Company has been striving to meet shareholder expectations by working to maximize its corporate value. At the Board of Directors meeting held today, a resolution was made for the acquisition of treasury stock with the aim of securing shareholder returns and improving capital efficiency. In line with the annual dividend forecast of 100 yen for this fiscal year, the total return ratio is expected to be 31.7%.

• Total number of acquirable shares (max.): 4.4 million shares (common shares)

• Total monetary value of shares to be acquired (max.): 11.0 billion yen

• Period of acquisition: November 9, 2021 through December 23, 2021