New company established to function as Asian business center

Yamaha Motor Co., Ltd. (YMC) announces the forming of a new company in Singapore in January, 1998, the main business of which will be the coordination of financing, administration, product development, etc. for Yamaha's production bases in the Asia region (excluding China), with plans for actual operations to begin in April of this year.

The new company, to be named "YAMAHA MOTOR ASIA PTE LTD. (YMAP), will be capitalized at 2 million Singapore dollars (approx. 160 million yen) invested 100% by YMC. By aiming to improve the strategic effectiveness of the development, production, sales and purchasing activities, etc., which until now have been conducted independently by each of the region's production bases and thus achieve greater scale merits, the new company will serve as a business network center to strengthen international competitiveness for Yamaha group companies in the entire Asia region.

The main business activities of the new company will be:
1) Export of completed motorcycles manufactured in the various countries of Asia on a cross-trade basis
2) Standardization and complementation of motorcycle parts between the various manufacturing bases of Asia
3) Support in the development of new models for the various manufacturing bases of Asia
4) Purchasing and supply of basic materials like resins
5) Support in financing for all aspects of business involved

At the time of founding, plans call for an initial staff of ten people, with first year sales planned at approximately 30 million Singapore dollars (approx. 2.4 billion yen) and rising to 700 million Singapore dollars (approx. 54 billion yen) after three years.

In order to realize the Yamaha corporate goal set last year of becoming "A Leading Company that Continues to Evolve in the Global Market," we are working to strengthen the international competitiveness of Yamaha group companies by building a global business network in the international marketplace.

This new company is aimed at building a firm and effective business network in the Asia region with the future goal of building the functional and administrative structures necessary to perform as an Asian headquarters that can coordinate everything from development and manufacturing to sales in the region.

As a result of last year's monetary crises in the region, it is estimated that motorcycle demand in Asia (excluding China) will decrease by approximately 15% this year to a level of about 6.2 million units. However, motorcycles have become an essential mode of travel in everyday life for the people of Asia and we are certain that demand will continue to increase as the various economies recover.