Consolidated Business Results Summary — First Quarter of Fiscal Year Ending December 31, 2016 —

IWATA, May 11, 2016—Yamaha Motor Co., Ltd. (Tokyo: 7272) announces consolidated business results for the first quarter.

Net sales for Yamaha Motor Co., Ltd.'s consolidated accounting period for the first quarter of the fiscal year ending December 31, 2016 were 382.9 billion yen, (a decrease of 6.8 billion yen or 1.7% compared with the same period the previous fiscal year), and operating income was 32.3 billion yen (a decrease of 4.3 billion yen or 11.8%).

For developed markets, although the motorcycle business segment has returned to profitability, it has experienced a decrease in sales and income due to unit sales decreasing and the appreciating yen. In the Marine Products Business, increased sales of large outboard motors in North America led to an increase in overall sales, but a decrease in income due to the appreciating yen etc. The Power Products Business sales and income increased thanks to the increase in sales of the recreational off-highway vehicle (ROV) product line-up in North America.

In the emerging markets motorcycle business segment, despite an increase in unit sales there was a decrease in the sales amount due to the effects of emerging markets currency depreciation. Regarding operating income, due to the effect of increased sales of products in the higher price range and cost reductions etc. in each region, the effect of currency depreciation was absorbed.

Ordinary income was 28.1 billion yen (a decrease of 8.0 billion yen or 22.1% against the same period the previous fiscal year), and net income for the quarter attributable to parent company shareholders was 20.7 billion yen (a decrease of 5.1 billion yen or 19.7%).

For the first three months consolidated accounting period, the U.S. dollar traded at 115 yen (an appreciation of 4 yen from the same period the previous fiscal year), and the euro at 127 yen (an appreciation of 7 yen).

Results by Business Segment
Motorcycles:
Net sales of motorcycle products overall were 229.8 billion yen (a decrease of 18.1 billion yen or 7.3% compared with the same period the previous fiscal year), and operating income was 7.6 billion yen (a decrease of 4.0 billion yen or 34.6%).
For unit sales in developed markets, North America and Europe saw a decrease due to the effect of the launch timing of new products and planned reductions in distribution inventories. Unit sales in emerging markets such as India, Vietnam, and the Philippines increased, but decreased in markets such as Indonesia and Brazil.
For net sales, there was a decrease in sales in developed markets due to the decrease in unit sales and the appreciating yen. In emerging markets, despite an increase in unit sales there was a decrease in sales due to the effects of local currency depreciation.
For operating income, although developed markets have returned to profitability, there was a decrease in income due to a decrease in net sales and the appreciating yen. Regarding emerging markets, due to the effect of the product mix and cost reductions etc., the effect of currency depreciation etc. was absorbed.

Marine:
Net sales in the entire marine business segment were 84.4 billion yen (an increase of 2.4 billion yen or 2.9% compared with the same period in the previous fiscal year), and operating income was 20.0 billion yen (a decrease of 1.1 billion yen or 5.4%).
Although there was an increase in net sales due to increased unit sales of large outboard motors and water vehicles in North America, there was a decrease in income due to the effects of the appreciating yen etc.

Power Products:
Net sales for the entire power products segment were 38.3 billion yen (an increase of 6.9 billion yen or 21.8% compared with the same period in the previous fiscal year), and operating income was 1.9 billion yen (an increase of 0.5 billion yen or 37.4%).
The considerable increase in unit sales of recreational off-highway vehicle (ROV) products in North America led to increases in sales and income.

Industrial Machinery & Robot Products:
Net sales in the entire industrial machinery and robots business segment were 10.9 billion yen (an increase of 0.7 billion yen or 7.2% compared with the same period in the previous fiscal year), and operating income was 1.6 billion yen (a decrease of 0.2 billion yen or 11.6%).
Despite an increase in surface mounter unit sales in Europe, there was a decrease in Asia. Unit sales for robots increased. For operating income, the effect of changes in the sales mix of surface mounters and robots led to a decrease in income.

Other Products:
Net sales of the other products business overall were 19.5 billion yen (an increase of 1.4 billion yen or 7.5%), and operating income was 1.2 billion yen (an increase of 0.5 billion yen or 79.9%).
For electrically power assisted bicycles, exports of E-kits (drive units for electrically power assisted bicycles) to Europe grew, and the rest of the business overall saw increased sales and income.

Forecast of consolidated business results:
Regarding the anticipated consolidated business results for the fiscal year ending December 31, 2016, no updates have been made to the current forecasts that were announced with the previous fiscal year business results on February 9, 2016, namely 1,700.0 billion yen in net sales, 120.0 billion yen in operating income, 125.0 billion yen in ordinary income, and 80.0 billion yen in net income for the fiscal year attributable to parent company shareholders.

(Note) From the first quarter of the fiscal year ending December 31, 2016, the presentation of sales finance-related income and expenses has changed from recording under “Selling, general and administrative expenses,” “Non-operating income,” and “Non-operating expenses” to recording under “Net sales,” “Cost of sales,” and “Selling, general and administrative expenses.”
To reflect this change in presentation method, the consolidated financial statements for the three months ended March 31, 2015 have been reclassified.