Outline of the New Medium-term Management Plan

Yamaha Motor Co., Ltd. (the "Company") has formulated its new medium-term management plan, encompassing management policies and goals, structural reforms, growth strategies, and the numerical targets the Company seeks to attain during the three-year period from 2010 through 2012.

The new plan envisions the Yamaha Motor Group as an excellent engineering and manufacturing enterprise with a prominent presence in the global market. It calls for the Company to get back to basics, redoubling its commitment to product development and a bottom-up approach. During the new medium term, the Company will make all-out efforts to implement structural reforms, build a foundation to enable profitability, and lay the groundwork for future growth.

In terms of its targets for the period, the Company seeks to return to profitability on a consolidated income basis in fiscal 2010, and achieve a consolidated operating income margin of 5% in fiscal 2012 -- the final year of the new plan.

Management Policies and Goals

The plan is designed to attain its objectives in two phases. Phase I (through 2010) puts an emphasis on accelerating the Company's structural reforms, reducing the break-even-point production volume, and working to build a profitable structure. In Phase II (2011 through 2012), the Company will lay the groundwork for future growth and take action toward realizing it.

In its roadmap toward these objectives, the Company has developed three management policies, centered on promoting businesses in developed and emerging nations, and laying the groundwork for future growth. The Company also identified goals for its mainstay businesses, including reforming the profitability structure. This means creating a management foundation that enables the Company to earn profits from motorcycle, outboard motor, and ATV/SSV businesses in developed nations -- regardless of the size of the nations' markets. In addition, the Company is seeking to aggressively expand the motorcycle business in emerging nations that show growth potential, on both a qualitative and quantitative basis.

1.

Reforming the profitability structure of businesses in developed nations (Phase I)

2.

Quantitative and qualitative expansion of the motorcycle businesses in emerging nations (Phase I)

3.

Laying the groundwork for future growth (Phase II)

< Motorcycle business in developed nations >

< Outboard motor business >

< ATV/SSV business >

< Motorcycle business in emerging nations >

Structural Reforms (Phase I)

In formulating the management plan discussed above, the Company assumed that demand in developed nations will fall below the levels it officially announced on August 4, 2009 in its consolidated financial results for the first six months of the fiscal year ended December 31, 2009.

Based on these assumptions, the Company has lowered the annual production volume required to reach the break-even point for some mainstay products. For outboard motors, the break-even point remains at 230,000 units, unchanged from the August announcement. However, for motorcycles, the number has been reduced from 250,000 to 200,000, while for ATVs and SSVs, it has been lowered from 140,000 to 100,000. At the same time, the Company is expanding the scope of three structural reforms -- reorganizing the manufacturing layout, streamlining the workforce, and reducing costs -- beyond the level envisioned in the previous announcement. The moves are designed to significantly reduce fixed costs and improve profitability.

1.

Reorganizing the manufacturing layout

2.

Downsizing the workforce

3.

Reducing costs

Growth Strategy (Phase II)

The new plan lays the groundwork for future performance by concentrating on growth in emerging nations and the ASEAN region, and accelerating the development of environmentally friendly engines and electric drive technology. Once the stage is set, the Company will work steadily to realize growth moving forward.

The Company's growth strategy builds on the Frontier 2020 long-term vision, announced in 2008. Of the high-priority domains in Frontier 2020 -- the Yamaha brand, personal mobility, engines, and new technologies -- the strategy puts the strongest emphasis and concentrates resources on personal mobility and engines.

1.

Low-priced motorcycles for emerging nations

2.

Motorcycles for the ASEAN region

3.

Next-generation environmentally friendly engines

4.

Smart Power

Numerical targets

As stated earlier, the new management plan envisions a return to profitability on a consolidated basis in fiscal 2010 and a consolidated operating income margin of 5% in its final year, fiscal 2012. To attain these objectives, the Company intends to reform the profitability structure so that it is not dependent on market size in developed nations, while achieving quantitative and qualitative expansion of the motorcycle business in emerging nations.

The Company has specified the numerical targets highlighted in the table below for the plan's consolidated financial results. The targets are premised on exchange rates of 88 yen against the U.S. dollar and 128 yen against the euro

The Company plans to use 120 billion yen as capital expenditures during the period, primarily in support of new motorcycle releases in emerging nations and the ASEAN region, cost reduction programs, and environmentally friendly engine and electric-drive technology development. The investments are targeted toward achieving future growth.

The Company also aims to generate free cash flows of 150 billion yen, while reducing 150 billion yen in interest-bearing debt in the new three-year period.