Summary of Consolidated Business Results for the First Nine Months of the Fiscal Year Ending December 31, 2014

IWATA, November 6, 2014 – Yamaha Motor Co., Ltd. (Tokyo: 7272) announces Consolidated business results for the first nine months of the fiscal year. Net sales in the consolidated accounting period for the first nine months of the fiscal year ending December 31, 2014 were 1,124.6 billion yen – an increase of 76.7 billion yen (+7.3%) compared with the same period the previous fiscal year – showing an increase across all business segments.

Operating income increased in all business segments to 71.0 billion yen, an increase of 28.8 billion yen (+68.4%) against the same period the previous fiscal year. In the motorcycle business, income improved in developed markets thanks to sales increase through new product launches; income also increased in emerging markets.  In the marine business, income increased thanks to the increase in product sales as well as a higher proportion of sales of larger outboard models. In the other business segments, income increased thanks to the effect of new product launches of recreational off-highway vehicles and electronically power assisted bicycles, as well as an increase in sales of surface mounters aided by the recovery in capital expenditure demand. In terms of the impact of foreign exchange on income, the increase in income caused by currency appreciation in developed countries (U.S. Dollar, Euro) is being offset by currency appreciation in emerging countries (Indonesian Rupiah, Brazilian Real, etc.). Measures are being undertaken to absorb the currency depreciation in emerging countries through cost reduction and model mix, etc.

In addition, non-operating income and expenses improved as the yen has been depreciating towards the end of this third quarter, creating a foreign exchange profit through the revaluation of accounts receivable-trade. As a result, the Company recorded an ordinary income of 75.5 billion yen (an increase of 32.6 billion yen or 76.1% against the same period the previous year) and quarterly net income of 52.5 billion yen (an increase of 26.1 billion yen/99.2%).

For the third-quarter consolidated accounting period, the U.S. dollar traded at 103 yen (a depreciation of 6 yen from the same period the previous fiscal year), and the euro at 140 yen (a depreciation of 13 yen).

Results by business segment

Motorcycles:

Global net sales of motorcycle products were 723.9 billion yen (an increase of 28.4 billion yen/4.1% compared with the same period in the previous fiscal year), and operating income was 17.7 billion yen (an increase of 11.5 billion yen/188.4%).

Unit sales in developed markets increased from the same period in the previous year (+14%) thanks to the effects of new product launches such as the MT-09 and the MT-07, and market share also increased. In addition, sales of TRICITY commenced in Europe and Japan.

Regarding unit sales in emerging markets such as ASEAN, despite the increase in Indonesia, sales decreased due in part to the decline in overall demand in Thailand and Vietnam. The Company will revamp its brand image and product competitiveness by introducing models with the next-generation platform engine (BLUE CORE) as well as global models, with the rollout to various countries to take place from fourth quarter onwards. Unit sales in the Indian market have increased from the same period in the previous year (+28%) thanks to the effects of new product launches. Sales in the Brazilian market have also increased thanks to the effects of new products.

As a result, net sales have increased overall thanks to aspects such as sales increase in developed markets as well as the model mix in emerging markets. Operating income has increased as net sales increases, cost reductions and model mix measures have led to improvements in income that outweigh the increase in procurement and development costs due to weak currencies in emerging markets.

Marine:

Net sales of the marine segment were 209.2 billion yen (an increase overall of 23.9 billion yen/12.9% compared with the same period in the previous fiscal year), and operating income was 37.7 billion yen (an increase of 13.1 billion yen/53.5%).

Net sales of outboard motors increased thanks to an increase in sales proportion of larger outboards in North America as well as sales increases for models intended for emerging markets. Net sales of sports boats and water vehicles also increased thanks to the effects of new product launches, resulting in increases in sales and income.

Power Products:

Net sales of power products were 97.0 billion yen (an increase of 12.8 billion yen/15.3% compared with the same period the previous fiscal year), and operating income was 5.5 billion yen (an increase of 1.3 billion yen/30.3%) compared with the same period the previous fiscal year).

Sales have increased from the same period in the previous year (+101%) thanks to the launch of a new recreational off-highway vehicle in the VIKING lineup, which led to an overall increase in sales and income.

Industrial Machinery & Robot Products:

Net sales of the industrial machinery and robots business were 29.5 billion yen (an increase of 5.8 billion yen/24.3%), and operating income was 4.7 billion yen (an increase of 2.1 billion yen/81.3%).

Increases in sales and income were achieved thanks to a significant increase in surface mounter sales from the same period in the previous year (+24%), aided by the recovery in capital expenditure demand.

Other Products:

Net sales of other products business overall were 65.0 billion yen (an increase of 5.9 billion yen/9.9%), and operating income was 5.5 billion yen (an increase of 0.8 billion yen/16.8%).

Unit sales of electrically power-assisted bicycles have increased overall from the same period in the previous year (+32%), thanks to sales growth in Japan aided by the launch of PAS SION (a new model aimed at senior users), as well as the positive product feedback of the E-Kit drive system that is being exported to Europe.

Forecast of consolidated business results:

No change has been made to the net sales forecast for the fiscal year that was presented with the second quarter report on August 5, 2014. Income is expected to exceed our previous forecast thanks in part to improved income ratio in the marine business caused by an increase in sales proportion of larger outboard models.

Note: The previous forecast refers to the business forecast released on August 5, 2014.

The exchange rates for the fourth quarter are based on the U.S. dollar at 105 yen (a depreciation of 5 yen compared with the previous forecast, and a depreciation of 5 yen compared with the same period the previous fiscal year), and the euro at 135 yen (no change from the previous forecast, and an appreciation of 2 yen compared with the same period the previous fiscal year). The exchange rates for the whole fiscal year are based on the U.S. dollar at 103 yen (a depreciation of 2 yen compared with the previous forecast, and a depreciation of 5 yen compared with the previous fiscal year), and the euro at 138 yen (no change from the previous forecast, and a depreciation of 8 yen compared with the previous fiscal year).

Dividends

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 through a diversity of business operations worldwide. The Company shall maintain a balance between proactive investment for growth, and returns to shareholders and the repayment of borrowings, and provide dividends that reflect comprehensive consideration of the business environment, including trends in business performance and retained earnings, while maintaining a minimum payout ratio of 20% of consolidated net income.

With the improvement over the previous forecasts in the anticipated consolidated business results for the fiscal year ending December 31, 2014 announced today, and based on a payout ratio (consolidated) of 20%, the forecast final dividend was revised to 20.5 yen per share. In combination with an interim dividend of 14.5 yen, the yearly dividend is expected to be 35 yen per share. This is an increase of 9 yen from the previous (yearly) term.