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Revision of the Non-consolidated and Consolidated Business Forecasts and measures toward the shift to current value accounting

April 24, 2000

1. Revision of the Non-consolidated and Consolidated Business Forecasts

Based on recent trends in business results and other factors, Yamaha Motor would like to announce the revision of the previous non-consolidated and consolidated business forecasts released on Jan. 11, 2000 as follows.

 

(1) Revision of the Non-consolidated Business Forecast for FY ending Mar., 2000 (Apr. 1, 1999~ Mar. 31, 2000)

(Unit: Millions of yen, %)

 

Net Sales

Ordinary Income

Net Profit

Previous Forecast (A)
(Released Jan. 11, 2000)

585,000 

12,000 

1,000 

Revised Forecast (B)

592,000 

12,000 

2,600 

Variance (B - A)

7,000 

1,600 

Variance(%)

1.2 

0.0 

160.0 

(Ref.) Results for FY 1999 ending Mar., 1999

583,277 

11,183 

 6,461 


(2) Revision of the Consolidated Business Forecast for FY ending Mar., 2000 (Apr. 1, 1999~ Mar. 31, 2000)

(Unit: Millions of yen, %)

 

Net Sales

Ordinary Income

Net Profit

Previous Forecastt (A)
(Released Jan. 11, 2000)

850,000

27,000 

7,000 

Revised Forecast (B)

875,000

30,500 

10,500 

Variance (B - A)

25,000

3,500 

3,500 

Variance(%)

2.9

13.0 

50.0 

(Ref.) Results for FY 1999 ending Mar., 1999

808,183

25,284 

9,740 

 

(3) Reasons
The revision in the non-consolidated business forecast has been made on the basis of a predicted increase in current net profit compared to the previous forecast due to a reduction in YMC's corporate taxes allowance as a result of deduction of foreign tax credit on dividends from the overseas subsidiaries.
Furthermore, an revision in the consolidated business forecast has been made on the basis of a predicted increase in income figures compared to the previous forecast due to the expected increase in current net profit for YMC independently for the FY ending Mar., 2000 combined with continued improvements in business results for the consolidated subsidiaries.



2. Measures toward the shift to current value accounting

Based on the judgment that the adoption of a current value accounting method at YMC will made more appropriate management decisions possible and also make it possible to report corporate financial information with a higher level of transparency, it has been decided to implement the following two measures as the first step toward a full-scale shift to current value accounting.

 

1) Advance adoption of changes in the display of Foreign currency translation adjustment on the consolidated financial statements
Based on Article 2 of the amendments to the consolidated financial statement rules revised on March 13, 2000, changes in the display of Foreign currency translation adjustment on the consolidated financial statements will be adopted in advance, beginning with statements for the fiscal year ending March 2000. This change in the method of display is expected to result in decreases of approx. 54 billion yen in Total Assets (currency exchange adjustment evaluation forecast for FY ending Mar. 2000), approx. 49 billion yen in Capital and approx. 5 billion in Shareholder's Equity. Note that this will not effect the company's profit and loss balance.


2) Implementation of reassessment of business-use land values
At the Board of Directors meeting held on April 24, 2000, a resolution was passed to implement a reassessment of the company's business-use land values based on revisions to the laws governing land value reassessment put into effect by a new bill (1999 Act # 24).


(1) Date of reassessment

Mar. 31, 2000

(2) Accounting book value of business-use land before reassessment

36,428 million yen

(3) Accounting book value of business-use land after reassessment

72,758 million yen

(4) Variance in value after reassessment

The accounting book value after reassessment exceeds the accounting book value before reassessment by 36,330 million yen and, of this, 14,931 million yen of this will be listed as a fixed liability defined as a "deferred tax liability related to reassessment," and the remaining 21,398 million yen will be accounted in the company's Capital as a "reassessment value variance."

(5) Effect on the company's profit and loss balance

There will be no effect on the company's profit and loss balance.


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