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Summary of Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2004

July 29, 2004

Consolidated business results for the first quarter ended June 30, 2004

Net sales, operating income, recurring profit and net income far exceeded both the figures for the same period of the previous year and the planned targets.

Yamaha Motor's consolidated net sales for the first quarter of the fiscal year ending December 31, 2004 increased 14.8 percent from the same period of the previous year, to 295.6 billion yen. Consolidated operating income soared 67.8 percent, to 22.5 billion yen. Consolidated recurring profit rose 41.5 percent, to 23.4 billion yen. Consolidated net income climbed 32.7 percent, to 11.6 billion yen. Thus, the Company achieved significant gains in both sales and profits from the same period of the previous year.
Compared with the targets established at the beginning of the fiscal year, consolidated net sales rose by 12.8 percent, consolidated operating income by 40.6 percent, consolidated recurring profit by 46.3 percent, and consolidated net income by 36.5 percent, also far exceeding the planned targets. On the foreign exchange rate front, the average purchasing value of the yen during the period stood at 108 yen against the U.S. dollar (higher by 11 yen from the same period of the previous year, and lower by 3 yen than the projected figure at the beginning of the fiscal year); and 132 yen against the euro (lower by 5 yen from the previous first quarter, and 4 yen less than the forecast value at the beginning of the fiscal year).

The sales growth was attributable to increased sales in all business segments, including the motorcycle, marine product, power product, and IM (industrial robot) businesses. In terms of region, sales grew mainly in Japan, Europe and Asia.
Broken down by business segment, motorcycle sales rose 14.5 percent from the same period of the previous year, to 161.2 billion yen. This gain principally resulted from sales expansion in Europe, where big bikes such as the YZF-R1 and FZ6 sold well, and in Asia, where small four-stroke models enjoyed brisk demand, although sales declined in Japan and North America. Sales of marine products climbed 7.9 percent from the same period of the previous year, to 57.2 billion yen, reflecting increased sales of mainstay outboard motors in North America and Europe. Power product sales rose 7.0 percent, to 45.8 billion yen, led by sales growth for mainstay all-terrain vehicles in Europe. Sales in the "other products" segment increased 50.7 percent, to 31.4 billion yen, due to a substantial sales expansion of surface mounters in the mainstay IM business, centering in China. Compared with the planned targets, sales rose 11.5 percent for motorcycles, 13.0 percent for marine products, 16.5 percent for power products, and 14.0 percent for other products. Thus, sales in all business segments exceeded the targets planned at the beginning of the fiscal year by more than 10 percent.

By market, sales in Japan climbed 5 percent from the same period of the previous year, to 40.7 billion yen; sales in Europe rose 30.4 percent, to 87.9 billion yen; and sales in Asia increased 40 percent, to 59.5 billion yen. However, sales in North America remained about the same as the previous first quarter, at 86.4 billion yen, and sales in other areas declined 5.7 percent, to 21.1 billion yen.

In terms of profits, all three key components - operating income, recurring profit, and net income - were much higher than the figures in the same period of the previous year. The gains were mainly attributable to increased profit amounting to17.9 billion yen achieved through sales expansion for products with higher profit margins, and cost reductions totaling 2 billion yen, among other positive factors.
During the period, the Company changed the status of Yamaha Motor Vietnam Co., Ltd., from a company accounted for by the equity method to a consolidated subsidiary. Due to this and other factors, the number of consolidated subsidiaries stood at 97, remaining the same as at the previous fiscal year-end, while the number of affiliates accounted for by the equity method was 45, an increase of four from the previous fiscal year-end.

Forecast business results

No revisions in either interim period or full-year forecast business results.

The fiscal year ending December 31, 2004 has an irregular nine-month accounting period, due to a change in the closing date from March 31 to December 31. Accordingly, targets for consolidated net sales, consolidated operating income, consolidated recurring profit, and consolidated net income for the interim period are 551 billion yen, 34 billion yen, 34 billion yen, and 18 billion yen, respectively, and, for the full year, 920 billion yen, 57 billion yen, 57 billion yen, and 30 billion yen, respectively. By accomplishing the targets specified in the "NEXT 50" medium-term management plan, Yamaha Motor plans to achieve record highs for net sales, operating income and recurring profit, and there is no revision in the announced target figures.
These business performance forecasts are based on the assumption that the yen will remain at 105 yen against the U.S. dollar (higher by 9 yen from the previous fiscal year), and at 128 yen against the euro (the same as in the previous fiscal year).


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