Summary of Business Results for the Fiscal Year Ended December 31, 2006

Consolidated Business Results

Yamaha Motor broke all records for net sales, operating income, recurring profit and net income

Consolidated business results for Yamaha Motor Co., Ltd. (the "Company") for the fiscal year ended December 31, 2006 were 1,582.0 billion yen in net sales, 123.5 billion yen in operating income, 125.4 billion yen in recurring profit and 77.2 billion yen in net income. With this performance, the Company registered record highs for both sales and profits.

Compared with the results for the previous fiscal year, net sales, operating income, recurring profit and net income rose significantly: by 15.0 percent, 19.5 percent, 21.6 percent and 20.6 percent, respectively. On the foreign exchange front, the average value of the yen against the U.S. dollar during the fiscal year under review depreciated by seven yen compared with the previous year, to 114 yen. Meanwhile, the average value of the yen against the euro dropped by five yen compared with the previous year, to 141 yen.

Reflecting these favorable results and developments, the Company will propose increasing the annual cash dividends to be paid, for the fifth consecutive year -- to 36 yen -- at the Ordinary General Meeting of Shareholders.

Broken down by business segment, motorcycle sales totaled 914.8 billion yen, up 20.4 percent from the previous year, due mainly to robust sales in ASEAN countries and Latin America. Marine product sales amounted to 266.5 billion yen, up 6.7 percent from the previous year, reflecting favorable sales of personal watercraft in the United States. Power product sales were 250.4 billion yen, up 10.2 percent from the previous year, led by a significant sales expansion for side-by-side vehicles in the United States, although sales for all-terrain vehicles in the United States decreased during the period. Sales in the "other products" segment reached 150.3 billion yen, up 8.5 percent from the previous year, driven principally by a sales increase in the IM (Intelligent Machinery) business, consisting primarily of surface mounters and other industrial robots. Due to this year-on-year sales expansion in all business segments, net sales for the fiscal year under review set a record for the eighth consecutive year.

In terms of profits, operating income from the motorcycle business totaled 54.6 billion yen, up 64.6 percent from the previous year. Operating income from the marine product business amounted to 23.2 billion yen, down 6.2 percent from the previous year. In the power product business, operating income reached 27.6 billion yen, up 2.7 percent from the previous year. Operating income from the "other products" business was 18.1 billion yen, down 2.2 percent from the previous year. Major factors affecting operating income include an increase in selling, general and administrative expenses totaling 26.7 billion yen more than the previous year; the negative impact resulting from a change in the product mix and related factors totaling 22.5 billion yen more than the previous year; hikes in raw material prices totaling 14.0 billion yen above the previous year; a rise in depreciation expenses totaling 8.0 billion yen higher than the previous year; and an increase in research and development expenses totaling 4.7 billion yen over the previous year. However, these negative factors were more than offset by a positive impact on exchange translation totaling 43.9 billion yen; an increase in gross profit due to sales expansion totaling 39.1 billion yen; and cost reductions in procurement operations totaling 13.0 billion yen, representing improvements in operating income from the previous year. As a result, total operating income for the fiscal year under review set a record for the sixth consecutive year.

Effective from the fiscal year under review, the Company changed the accounting status of Yamaha Motor CIS (Russia) and other group companies, making them consolidated subsidiaries. Consequently, the number of consolidated subsidiaries stood at 108, an increase of 10 from the previous fiscal year-end, while the number of companies accounted for by the equity method stood at 43, a decrease of eight from the previous fiscal year-end.

The Company has been implementing the NEXT50-Phase II medium-term management plan, spanning a period of three years from 2005 to 2007. With the favorable performance for the fiscal year under review, highlighted above, the Company has achieved all the numerical targets -- 1,450 billion yen in net sales, 120 billion yen in operating income and 120 billion yen in recurring profit -- specified for the third fiscal year of the plan (2007) -- one year ahead of schedule.

Forecast business results for the fiscal year ending December 31, 2007

The Company forecasts its consolidated business results for the fiscal year ending December 31, 2007 as follows: 1,650 billion yen in net sales, 128 billion yen in operating income, 133 billion yen in recurring profit, and 78 billion yen in net income. When compared to the figures for the fiscal year ended December 31, 2006, net sales and operating income are projected to increase by 4.3 percent and 3.6 percent, respectively, breaking their previous record highs, for the ninth and seventh consecutive year, respectively. These forecasts are based on the assumption that the U.S. dollar will trade at 114 yen during the period (the same as the previous year), and the euro at 148 yen (a depreciation of seven yen from the previous year). The Company plans to pay annual cash dividends of 41 yen per share.