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Summary of Business Results for the First Half of the Fiscal Year Ending December 31, 2007 Record High Interim Results Achieved, Full-year Forecast Revised Upward

July 31, 2007

Consolidated Interim Business Results

Yamaha Motor broke all interim records for net sales, operating income, ordinary income and net income

Consolidated business results for Yamaha Motor (the "Company") for the first half-year ended June 30, 2007 were: 930.3 billion yen in net sales, 72.1 billion yen in operating income, 76.4 billion yen in ordinary income and 49.6 billion yen in net income. With this performance, the Company registered record highs for both sales and profits on a half-year basis.


Compared with the results for the first half-year ended December 31, 2006 (the "previous first half-year"), net sales, operating income, ordinary income and net income for the first half-year ended June 30, 2007 all rose significantly: by 14.4 percent, 9.5 percent, 13.1 percent and 12.1 percent, respectively. On the foreign exchange front, the average purchasing value of the yen against the U.S. dollar during the period under review depreciated by two yen from the value in the previous first half-year, to 116 yen, and dropped by 14 yen against the euro from the previous same period, to 152 yen.

Broken down by business segment, motorcycle sales totaled 567.9 billion yen -- up 17.2 percent from the previous first half-year -- due mainly to robust sales in Indonesia, Vietnam, China and Brazil. Marine product sales amounted to 164.9 billion yen -- up 11.4 percent -- reflecting favorable sales of personal watercraft in the United States and outboard motors in Europe. Power product sales were 124.2 billion yen -- up 19.1 percent -- 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. However, sales in the "other products" segment were 73.4 billion yen -- down 3.5 percent -- resulting from a sales decline in the IM (Intelligent Machinery) business, which consists primarily of surface mounters and other industrial robots.


Meanwhile, in terms of profit, operating income from the motorcycle business totaled 34.2 billion yen, up 17.2 percent from the previous first half-year. Operating income from the marine product business amounted to 20.3 billion yen, up 13.5 percent. In the power product business, operating income reached 10.8 billion yen -- up 16.2 percent -- while operating income from the "other products" business was 6.9 billion yen, down 28.2 percent. Major factors affecting operating income include an increase in selling, general and administrative expenses totaling 23.8 billion yen more than the previous first half-year; the negative impact resulting from a change in the product mix and related factors totaling 10.7 billion yen more than the previous first half-year; hikes in raw material prices of 1.9 billion yen above the previous first half-year; depreciation expenses amounting to 1.8 billion yen more than the previous same period; and research and development expenses totaling 1.2 billion yen more than the previous first half-year. There was also a positive impact on exchange translation amounting to 22.5 billion yen; an increase in gross profit due to sales expansion amounting to 17.6 billion yen; and cost reductions in procurement operations totaling 5.5 billion yen, representing improvements from the previous first half-year. All these factors combined to send consolidated operating income during the period under review to a record high on a half-year basis.


In the period under review, the Company acquired the former Yamaha Motor Marketing Japan Co., Ltd. Accordingly, the number of consolidated subsidiaries stood at 107 on June 30, 2007, a decrease of one from December 31, 2006, while the number of companies accounted for by the equity method was 40, a decrease of three from December 31, 2006.

Forecast business results for the full fiscal year

Upward revision of the forecast consolidated business results for the full fiscal year ending December 31, 2007 (originally announced February 6, 2007)

Worldwide motorcycle unit sales are expected to exceed five million, with total sales of over one trillion yen, both firsts in Company history

Results are expected to exceed the numerical targets for sales and profits specified for 2007 -- the final year of the NEXT50-Phase II medium-term management plan

The Company has revised its forecast consolidated business results for the full fiscal year ending December 31, 2007 upward, and now projects net sales of 1,700.0 billion yen (a 3.0 percent increase from the planned target, announced February 6, 2007; a 7.5 percent increase from the fiscal year ended December 31, 2006 ("2006")); operating income of 129.0 billion yen (a 0.8 percent increase from the planned target; a 4.4 percent increase from 2006); ordinary income of 136.0 billion yen (a 2.3 percent increase from the planned target; an 8.5 percent increase from 2006); and net income of 79.5 billion yen (a 1.9 percent increase from the planned target; a 2.9 percent increase from 2006).

In the Company's mainstay motorcycle business, worldwide unit sales are expected to exceed five million, with total sales of over one trillion yen, both firsts in Company history.

The upward revisions are due to updated expectations for higher sales than predicted in the forecasts announced February 6, 2007 in the motorcycle, marine product and power product business segments, and for higher operating income than the forecasts in the motorcycle and marine product business segments. The upwardly revised consolidated business forecasts for the full fiscal year ending December 31, 2007 exceed the numerical targets for sales and profits (net sales: 1,450.0 billion yen; operating income: 120.0 billion yen; and ordinary income: 120.0 billion yen) specified for the fiscal year ending December 31, 2007 -- the final year of the NEXT50-Phase II medium-term management plan.

The forecasts are based on the assumption that the U.S. dollar will trade at 118 yen during the period (a depreciation of four yen from the planned figure, announced February 6, 2007; a depreciation of four yen from 2006), and the euro at 155 yen (a depreciation of seven yen from the planned figure; a depreciation of 14 yen from 2006).

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