Effects of the Flooding in Thailand

November 4, 2011

We wish to begin by expressing our sincere condolences to the victims of the recent flooding in Thailand.

The following is a report of the information we have at this point concerning the extent of damage, the measures being taken and the effects on production resulting from the continued flooding in Thailand.

Extent of Damage

There has been no direct injury or material damage sustained by motorcycle manufacturing and marketing company Thai Yamaha Motor Co. (TYM), Ltd. or the three other Yamaha Motor group companies in Thailand. However, damage suffered by some suppliers has caused delays in supply of some parts to TYM and other group factories.

Countermeasures

While placing top priority on employee safety, we are providing support to affiliated suppliers that have suffered flooding damage and implemented measures to minimize the negative effects on production. Specifically, the procurement, manufacturing and engineering divisions have organized a “Prioritized Parts Action Project” that is working to make alternative purchases for affected parts while also making preparations for production re-scheduling.

Effects on Production and Measures Taken

-	The effects are occurring primarily with motorcycle operations centered in Thailand with some effects in other Asian countries and Japan as well.

-	In Thailand, the decision was already made to halt operations on the afternoon of October 11 with suspension of operations to continue until November 15. Decision concerning the resumption of manufacturing after November 15 will be made on the basis of parts supply status at that time.

-	Regarding measures for other Yamaha Motor group manufacturing bases in Asia and Japan (Iwata Main Factory), we plan to make adjustments in production schedules due to the limitations of parts supply from Thailand. The period affected will be mid-November through December and the scale of production cut-backs will be decided while continuing to take measures with procurement, re-directing orders and finding alternatives.

-	Going forward, we and our suppliers will be devoting our fullest efforts to minimizing the effects on production during the current fiscal year ending December 31, 2011.

Forecast of Effects on Business Performance

Efforts are presently underway to identify in detail the expected effects on business performance for Yamaha Motor Co., Ltd. and the Yamaha Motor group. If it becomes clear that there will be a considerable effect on business performance, we will notify all involved as quickly as possible.

Others

It has been decided to donate the equivalent of 30 million yen in relief aid to the stricken areas in Thailand, including life jackets, water pumps and boat engines with deliveries already underway.