Revision of Business Forecasts and Cash Dividends for Fiscal 2011 and Reversal of Accrual for Product Liability

August 3, 2011

Yamaha Motor Co., Ltd. (the "Company") has made the revisions detailed below to the consolidated financial results for the first half-year and full year for fiscal 2011 (January 1, 2011 through December 31, 2011) and cash dividends forecast for fiscal 2011. Initial forecasts were originally released on February 15, 2011. The Company has also reversed the accrual for product liability.

1.	Revised business forecasts for the fiscal year ending December 31, 2011

Revised consolidated financial forecasts for first half-year (January 1, 2011 through June 30, 2011)

Millions of yen

	Net sales	Operating income	Ordinary income	Net income for quarter	Net income per share for quarter
Original forecast (A)	670,000	25,000	26,000	8,500	(Yen) 24.35^*
Revised forecast (B)	663,132	41,543	48,784	28,960	82.96
Amount of change (B-A)	-6,868	16,543	22,784	20,460
Percentage change [(B-A)/A]	-1.0%	66.2%	87.6%	240.7%
Reference: Results for first half of fiscal 2010	676,166	35,030	43,808	23,776	76.68

*Revised on April 28, 2011.

Revised consolidated financial forecasts for full year (January 1, 2011 through December 31, 2011)

Millions of yen

	Net sales	Operating income	Ordinary income	Net income for quarter	Net income per share for quarter
Previous forecasts (A)	1,350,000	53,000	55,000	20,000	(Yen) 57.29^*
Revised forecast (B)	1,350,000	68,000	78,000	35,000	100.26
Amount of change (B-A)	－	15,000	23,000	15,000
Percentage change [(B-A)/A]	－	28.3	41.8	75.0
Reference: Results for fiscal 2010	1,294,131	51,308	66,142	18,300	55.50

*Revised on April 28, 2011.

Main reasons for the revision

		(i)	Revision of consolidated financial forecasts for the first half-year
			Although net sales for the first half-year were roughly in line with of the initial forecast, improvements in profits for the motorcycle business in Central and South America and the marine business overall as well as factors like cost reductions including the reversal of accrual for product liabilities, profits for the first half-year exceeded the initial forecast.

		(ii)	Revision of consolidated financial forecasts for the full year
			The consistently high exchange rate of the yen, further increases in the price of raw materials, the effects of the Great Eastern Japan Earthquake, as well as accelerated research and development aimed at shifting to a growth-oriented footing, the business conditions facing the Company continue to be very challenging. Nonetheless, the Company predicts that consolidated financial results for the full year will exceed the initial forecast, due to the improvement in profits for the first half-year and the fact that continued growth in sales for the motorcycle business in Central and South America and the marine business overall are expected as well as further cost reductions achieved through structural reform. Forecasts are based on the following assumed exchange rates: Second half of the fiscal year: U.S. dollar = 80 yen (two yen higher than initial forecast, four yen higher year on year); euro = 110 yen (as per initial forecast, one yen higher than previous period). Full year: U.S. dollar = 81 yen (one yen higher than initial forecast, seven yen higher year on year); euro = 113 yen (three yen lower than initial forecast, three yen higher year on year).

2.	Revised forecast for cash dividends

Details

Yen

	Annual dividends
	End of the 1^st quarter	End of 1^st half	End of 1^st nine months	Fiscal year end	Total
Previous forecasts (released February 15, 2011)	－	0.00	－	Undecided	Undecided
Revised forecasts			－	20.00	20.00
Results for the fiscal year ending December 31, 2011	－	0.00
Results for the fiscal year ended December 31, 2010	－	0.00	－	0.00	0.00

2)		Reason for revision of forecast for cash dividends

		The Company regards improved benefits for shareholders as management's top priority, and as such, we are assuming a global perspective and pursuing business worldwide to increase corporate value In deciding its dividend, the Company's basic approach is to adopt a long-term perspective that takes overall account of consolidated business results and other factors, using payout ratio as the index, in such a way as to consistently meet shareholder expectations. A decision regarding the forecast of year-end cash dividends for fiscal 2011 was originally left pending. However, with the steady implementation of structural reform yielding improved business results and with improvement expected in the financial resilience, the Company is now in a position to resume dividend payment. Based on consolidated financial forecasts for the full year, a year-end dividend of 20 yen per share is planned.

3)		Reversal of accrual for product liability

		The Company's accrual for product liability includes an accrual for product liability relating to the side-by-side vehicle manufactured by the U.S. manufacturing subsidiary Yamaha Motor Manufacturing Corporation of America. However, in light of progress with the settlement of liability claims, an optimistic estimate was made in the consolidated financial statement for the second quarter of fiscal 2011. As a result, it was decided to make a reversal of the accrual for product liability for the second quarter amounting to 6,762 million yen, which was recorded under selling, general and administrative expenses.