Consolidated Business Results Summary　- Fiscal Year 2016 Ending December 31 -

Consolidated business results
IWATA, February 9, 2017 - Yamaha Motor Co., Ltd. (Tokyo:7272) announces results for the current consolidated accounting year. Net sales were 1,502.8 billion yen, a decrease of 128.3 billion yen (7.9%) compared with the previous fiscal year. Operating income was 108.6 billion yen, a decrease of 21.7 billion yen (16.7%), ordinary income was 102.1 billion yen, a decrease of 23.2 billion yen (18.5%), and net income attributable to parent company shareholders was 63.2 billion yen, an increase of 3.1 billion yen (5.2%) compared with the previous fiscal year.
The fluctuation in operating income compared to the previous fiscal year was caused by profitability improvements of 36.5 billion yen thanks to increased sales of products in the higher price range, and cost reductions through development methods such as for platform and global models and manufacturing methods such as for theoretical-value-based production, being overshadowed by negative foreign exchange effects of 43.8 billion yen and increased expenses etc., resulting in decreased income of 14.4 billion yen. In addition to the continued appreciation of the yen against the U.S. dollar and the euro, the foreign exchange effects were driven by the yen continuing to appreciate against the currencies of emerging markets such as Indonesia, Brazil, and India. Excluding foreign exchange effects, consolidated net sales increased (by 29.3 billion yen or 1.8%) and consolidated operating income increased (by 22.1 billion yen or 16.9%) compared with the previous fiscal year.
For the fiscal year, the U.S. dollar traded at 109 yen (an appreciation of 12 yen against the previous fiscal year), and the euro at 120 yen (an appreciation of 14 yen against the previous fiscal year).

Results by Business Segment
Motorcycles:
Net sales were 930.1 billion yen (a decrease of 102.4 billion yen or 9.9% compared with the previous fiscal year), and operating income was 36.0 billion yen (a decrease of 3.2 billion yen or 8.1%).
Unit sales increased in markets such as India, Vietnam, and the Philippines, were on a similar level to the previous year in developed markets, but decreased in markets such as Indonesia, China, and Brazil. Global net sales decreased due to foreign exchange effects. Operating income increased in emerging markets thanks to greater sales of products in the higher price range and the effect of cost reductions, but decreased in developed markets due to foreign exchange effects, leading to an overall decrease.
In developed markets, we are progressing initiatives regarding reductions in distribution inventories, the finance business, and further structural reforms. In addition, active work continues to expand sales and reduce the break-even point in the healthy Indian market, and structural reforms are progressing amidst the Brazilian and Chinese market slumps.

Marine:
Net sales were 297.2 billion yen (a decrease of 12.1 billion yen or 3.9% compared with the previous fiscal year), and operating income was 55.4 billion yen (a decrease of 8.6 billion yen or 13.4%).
Outboard motor unit sales increased, particularly of large models in North America and Europe. Although sales and income overall decreased due to foreign exchange effects, the high-profit structure was retained with the operating income ratio at 19%. Initiatives are progressing toward the future creation of a business model as a system supplier.

Power Products:
Net sales were 152.3 billion yen (a decrease of 17.2 billion yen or 10.1% compared with the previous fiscal year), and operating income was 4.5 billion yen (a decrease of 11.5 billion yen or 71.8%).
Retail unit sales of recreational off-highway vehicles (ROV) grew, but as production adjustment was carried out for inventory optimization, a decrease in unit sales resulted. The consequent increased expenses and foreign exchange effects led to decreased sales and income overall. In the next fiscal year, new platform models will be launched onto the market while urgently returning the business to normal.

Industrial Machinery & Robot Products:
Net sales were 46.9 billion yen (an increase of 0.4 billion yen or 0.8% compared with the previous fiscal year), and operating income was 7.5 billion yen (an increase of 0.3 billion yen or 4.2%).
Unit sales of surface mounters decreased due to the market slump in China, but sales and income increased thanks to increased sales of high value-added products etc. Creation of a high-profit structure progressed, with the operating income ratio reaching 16%. A next-generation solution business to broaden the customer base is being built through high-speed multi-function surface mounters and integrated control robot systems etc.

Other Products:
Net sales were 76.3 billion yen (an increase of 3.1 billion yen or 4.2% compared with the previous fiscal year), and operating income was 5.2 billion yen (an increase of 1.2 billion yen or 30.1%).
For electrically power assisted bicycles, exports of E-kits (drive units for electrically power assisted bicycles) to Europe and sales of completed vehicles in the domestic market grew, and the other products business overall saw increased sales and income. The customer base is being further broadened in global markets.

Forecast of business results for the fiscal year ending December 31, 2017
Overall, similar markets and business environments to the previous fiscal year are forecast to continue in the next fiscal year. Given such environments, stable income will be maintained while solidly progressing medium- to long-term initiatives. The forecast consolidated business results are as follows.

NB: Figures in brackets are the rate of increase or decrease compared to the previous fiscal year.

These forecast figures are based on the U.S. dollar trading at 110 yen during the fiscal year (a depreciation of 1 yen from the previous fiscal year), and the euro at 115 yen (an appreciation of 5 yen compared with the previous fiscal year).

Basic policy concerning profit distribution and dividends for the current and subsequent fiscal year
In the current Medium-Term Management Plan, the Company is aiming towards a payout ratio of 30% of net income attributable to parent company shareholders, and focusing on maintaining and increasing a stable financial platform while and increasing new growth investment and stock dividends.
The Company works on the principle of paying an interim dividend and a final dividend. Decisions with regard to the dividends are made by the Board of Directors for the interim dividend, and the Ordinary General Meeting of Shareholders for the final dividend. The dividend record dates are stated in the Articles of Incorporation as June 30 for the interim dividend and December 31 for the final dividend.
Regarding the final dividend for the current fiscal year, a dividend of 30 yen per share is planned to be placed on the agenda of the 82nd Ordinary General Meeting of Shareholders, scheduled for March 23, 2017. With the interim dividend of 30 yen per share, this gives a total dividend for the year of 60 yen per share based on the above. With regard to the dividend payment for the next fiscal year, a total of 65 yen (interim dividend of 32.5 yen and final dividend of 32.5 yen) is planned based on the forecast consolidated business results.

(Note)
From the consolidated accounting period 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 consolidated financial statements for the previous consolidated financial year will be reclassified in order to reflect these changes in reporting.