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Yamaha Motor Co., Ltd. (the "Company") has allocated an additional business structure improvement expense in its financial settlement for the fiscal year ended December 31, 2009 (fiscal 2009). In line with this addition, the Company has also revised the consolidated and non-consolidated forecast financial results for fiscal 2009, originally released August 4, 2009.
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| 1. |
Allocation of business structure improvement expenses |
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The Company allocated business structure improvement expenses totaling 103,729 million yen (79,377 million yen on a non-consolidated basis) as extraordinary losses in the consolidated statement of income for fiscal 2009. These expenses primarily resulted from the impairment loss on fixed assets at consolidated subsidiaries in Japan, Europe and the United States, and from the early and/or voluntary retirement of employees.
The Company had to provide the additional allowance for business structure improvement expenses in response to projected declines in developed nations' fiscal 2010 demand, which will be worse than originally forecast. In total, the business structure improvement expenses for fiscal 2009 now consist of 73,466 million yen (59,935 million yen on a non-consolidated basis) allocated in the consolidated statement of income for the first nine months of fiscal 2009, together with the additional allocation of 30,262 million yen (19,442 million yen on a non-consolidated basis).
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| 2. |
Revised forecast financial results for fiscal 2009 |
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| 1) |
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Revised forecast consolidated/non-consolidated financial results (January 1 through December 31, 2009) |
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| ① |
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Consolidated |
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| (Millions of yen ; %) |
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Net sales |
Operating
income(loss) |
Ordinary
income(loss) |
Net income
(loss) |
Previous forecasts (A)
(Released August 4, 2009) |
1,100,000 |
(87,000) |
(86,000) |
(182,000) |
| Revised forecasts (B) |
1,153,600 |
(62,600) |
(68,400) |
(216,200) |
| Amount of change (B-A) |
53,600 |
24,400 |
17,600 |
-34,200 |
| Percentage change [(B-A)/A] |
4.9% |
- |
- |
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Results for the fiscal year
ended December 31, 2008 |
1,603,881 |
48,382 |
58,872 |
1,851 |
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| (Millions of yen ; %) |
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Net sales |
Operating
income(loss) |
Ordinary
income(loss) |
Net income
(loss) |
Previous forecasts (A)
(Released August 4, 2009) |
400,000 |
(68,000) |
(74,000) |
(120,000) |
| Revised forecasts (B) |
401,800 |
(55,300) |
(61,400) |
(158,500) |
| Amount of change (B-A) |
1,800 |
12,700 |
12,600 |
-38,500 |
| Percentage change [(B-A)/A] |
0.5% |
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- |
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Results for the fiscal year
ended December 31, 2008 |
740,177 |
(24,119) |
20,785 |
(3,022) |
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| 2) |
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Main reasons for the revision |
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The revised forecast consolidated financial results for fiscal 2009 are: 1,153.6 billion yen in net sales, an increase of 53.6 billion yen from the previous forecast; 62.6 billion yen in operating loss, an increase of 24.4 billion yen in operating income; and 68.4 billion yen in ordinary loss, an increase of 17.6 billion yen in ordinary income. These changes from the forecast consolidated financial results released August 4, 2009 are mainly attributable to robust motorcycle sales in Asia (excluding Japan) and implementation of an emergency plan including expense- and cost-cutting measures.
Reflecting business conditions in developed nations -- where no short-term business recovery is anticipated -- the Company has determined that it must further reduce fixed costs. Therefore, the impairment loss on fixed assets, as well as the expenses incurred by the retirement of employees (including those in the voluntary retirement program), were allocated as additions in the non-consolidated financial statement of income for fiscal 2009. As a result, the business structure improvement expenses exceeded the amount originally projected by approximately 50 billion yen.
Consequent to these developments, non-consolidated net loss is projected to increase 38.5 billion yen from the previous forecast, to 158.5 billion yen, while consolidated net loss is expected to rise 34.2 billion yen, to 216.2 billion yen.
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| 3) |
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On February 12, 2010, the Company will officially disclose key information related to its performance: financial results for fiscal 2009; forecast financial results for fiscal 2010; and the new three-year medium-term management plan. Launched in 2010, the plan addresses structural reform designed to regain profitability, and strategies toward realizing further growth.
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