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Summary of Business Results for the Third Quarter of the Fiscal Year Ending December 31, 2008

October 30, 2008

Yamaha Motor Co., Ltd. (the "Company") announced its consolidated business results for the third quarter (January 1 through September 30, 2008) of the fiscal year ending December 31, 2008. Net sales decreased 3.9 percent from the same period of the previous year, to 1,282.6 billion yen, operating income fell 34.5 percent, to 64.1 billion yen, ordinary income declined 31.1%, to 74.0 billion yen, and net income dropped 36.1%, to 43.2 billion yen.

On the foreign exchange front, the average purchasing value of the yen against the U.S. dollar during the period under review appreciated by twelve yen from the same period of the previous year, to 106 yen, and depreciated by seven yen against the euro, to 160 yen.

Broken down by business segment, motorcycle sales increased 2.6 percent from the same period of the previous year, to 828.0 billion yen, due to reduced sales in Europe, the United States and Japan, although sales in Indonesia, Thailand, Brazil, and other countries were favorable. Marine product sales declined 12.7 percent, to 197.7 billion yen, reflecting sluggish outboard motor and personal watercraft sales in the United States. Nevertheless, outboard motor sales in Russia and Latin America expanded substantially. Power product sales fell 17.0 percent, to 158.9 billion yen, due to a sales decline for all-terrain vehicles and other products in the United States. Sales in the "other products" segment dropped 10.9 percent, to 97.9 billion yen, in line with lower sales for surface mounters, among other products in the segment.

Meanwhile, operating income decreased 3.5 percent, to 42.2 billion yen in the motorcycle segment; 55.7 percent, to 11.1 billion yen in the marine product segment; 73.5 percent, to 5.0 billion yen in the power product segment; and 42.9 percent, to 5.8 billion yen in the "other products" segment.

Positive factors affecting operating income include cost reductions in purchasing operations totaling 7.5 billion yen; an increase in gross profit due to sales expansion totaling 6.9 billion yen; and a decrease in selling, general and administrative expenses totaling 4.2 billion yen. However, these positive factors were more than offset by the negative impact of fluctuations in foreign currency translation rates totaling 27.8 billion yen; hikes in raw material prices totaling 9.4 billion yen; an increase in depreciation expenses totaling 4.2 billion yen; and the impact of a change in the product mix and related factors totaling 10.9 billion yen. As a result, operating income for the third quarter under review decreased from the same period of the previous year.

During the period under review, the number of consolidated subsidiaries increased by three from December 31, 2007, to 114 on September 30, 2008, while the number of companies accounted for by the equity method decreased by four, to 34.

The Company has not changed its forecast consolidated business results for the full fiscal year ending December 31, 2008 from the figures officially announced July 31, 2008 with the release of the consolidated financial results for the first half of the fiscal year. The forecast is 1,720 billion yen in net sales, down 2.1 percent from the previous year; 78 billion yen in operating income, down 38.6 percent; 92 billion yen in ordinary income, down 34.4 percent; and 45 billion yen in net income, down 36.8 percent.

The forecast figures are based on the assumption that the U.S. dollar will trade at 105 yen during the period (an appreciation of 12 yen from fiscal 2007), and the euro at 158 yen (a depreciation of two yen from fiscal 2007).


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