Yamaha Motor Achieves Record First-half Earnings　- Net Sales in Most Product Groups Up Solidly -

IWATA, August8, 2017 - 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 first half were 828.1 billion yen, an increase of 49.7 billion yen (6.4%) compared with the same period the previous fiscal year. Operating income was 82.2 billion yen, an increase of 16.8 billion yen (25.7%), ordinary income was 83.5 billion yen, an increase of 28.2 billion yen (51.1%), and net income for the period attributable to parent company shareholders was 60.8 billion yen, an increase of 28.4 billion yen (87.5%) compared with the previous fiscal year. Each of these income figures was the Company's highest ever.
In the emerging markets motorcycle business segment, net sales increased compared with the same period the previous fiscal year thanks to increased unit sales, and operating income increased significantly thanks to profitability improvements in the ASEAN region and through structural reform in Brazil. In the developed markets business, net sales increased compared with the same period the previous fiscal year thanks to increased sales of motorcycles, marine, industrial machinery, and electrically power assisted bicycles etc. In terms of operating income, the effects of increased sales and profitability improvements absorbed the impact of adjustments for unrealized income in the marine products business and recreational off-highway vehicles (ROV) inventory adjustment, leading to increased income.
As exchange rates were relatively stable, cost reductions through development methods such as for platform and global models and manufacturing methods such as for theoretical-value-based production, the provision of new product value, and product mix and pricing improvements etc. have led to progress in profitability improvements for each business.
For the first half consolidated accounting period, the U.S. dollar traded at 112 yen (no change from the same period the previous fiscal year), and the euro at 122 yen (an appreciation of 3 yen).

Results by Business Segment
Motorcycles:
Net sales of motorcycle products overall were 509.2 billion yen (an increase of 31.7 billion yen or 6.6% compared with the same period the previous fiscal year), and operating income was 33.8 billion yen (an increase of 15.7 billion yen or 86.8%).
Unit sales in emerging markets such as Vietnam, the Philippines, Thailand, and Taiwan increased, and despite decreasing in Indonesia due to the market slump there, the unit sales figure increased overall. Net sales increased, and operating income increased significantly thanks to the effects of product mix improvements and cost reductions.
Regarding unit sales in developed markets, sales in Europe were on a similar level to the previous year - despite the launch of new products such as the MAX series - due to the impact of environmental regulations. In North America, sales decreased due to weakening demand, leading to an overall decrease in sales. Net sales were on a similar level to the previous year thanks to product mix improvements, and operating income moved into the black.

Marine:
Net sales across the entire marine business segment were 179.7 billion yen (an increase of 9.4 billion yen or 5.5% compared with the same period the previous fiscal year), and operating income was 36.9 billion yen (a decrease of 1.4 billion yen or 3.5%).
Net sales increased thanks to healthy unit sales in North America, but operating income decreased due to the remaining effects of adjustments for unrealized income, increased research and development expenses for the system supplier strategy, etc. The operating income ratio remained over 20%.

Power Products:
Net sales for the entire power products segment were 67.0 billion yen (a decrease of 2.8 billion yen or 4.0% compared with the same period the previous fiscal year), and operating income was 1.0 billion yen (a decrease of 1.7 billion yen or 64.2%).
Sales and income decreased due to the impact of inventory adjustment in recreational off-highway vehicle (ROV) products.

Industrial Machinery & Robot Products:
Net sales for the entire industrial machinery and robots business segment were 30.8 billion yen (an increase of 7.2 billion yen or 30.4% compared with the same period in the previous fiscal year), and operating income was 6.3 billion yen (an increase of 2.2 billion yen or 54.8%).
Increases in sales and income were achieved thanks to an increase in both surface mounter and robot unit sales.

Other Products:
Net sales of the other products business overall were 41.3 billion yen (an increase of 4.2 billion yen or 11.3%), and operating income was 4.2 billion yen (an increase of 1.9 billion yen or 84.6%).
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:
Net sales and the various income figures are revised as follows regarding the anticipated consolidated business results for the fiscal year ending December 31, 2017. Notably, the forecast of operating income is at the highest-ever level, and net income attributable to parent company shareholders is forecast to reach its highest-ever point.

The exchange rates for the second half of the fiscal year are based on the U.S. dollar at 110 yen (no change from the initial forecast, and a depreciation of 4 yen compared with the previous fiscal year), and the euro at 115 yen (no change from the initial forecast, and an appreciation of 1 yen compared with the previous fiscal year). The exchange rates for the entire fiscal year are based on the U.S. dollar at 111 yen (a depreciation of 1 yen from the initial forecast, and a depreciation of 2 yen compared with the previous fiscal year), and the euro at 118 yen (a depreciation of 3 yen from the initial forecast, and an appreciation of 2 yen compared with 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 is aiming towards a payout ratio of 30% of net income attributable to parent company shareholders, and focusing on continuing to maintain and increase a stable financial platform while and increasing new growth investment and stock dividends.
The Company has determined that, based on the revised business results forecast, the forecast total dividend for this fiscal year will be changed to 78 yen at a payout ratio of 30.3% (an increase of 13 yen from the initial forecast, and an increase of 18 yen compared with the previous fiscal year), with an interim dividend of 39 yen (an increase of 6.5 yen from the initial forecast, and an increase of 9 yen compared with the previous fiscal year).