Announcement of Organizational Reforms and Personnel Changes

At today's Board of Directors Meeting, Yamaha Motor Co., Ltd. ("the Company") resolved to implement the following organizational changes and personnel changes, effective January 1, 2012. The changes will be for the purposes of sustainable growth with goals to strengthen our engineering, manufacturing and marketing functions and increase the competitiveness of product operations.

1.

Design Center newly established

In order to increase YMC's corporate value, consolidated efforts will be made to heighten design functions and overall design strength throughout the company in ways that will strengthen products, the brand image and design personnel, etc.

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The Design Center will be newly established as an organizational center dedicated to strengthening design functions companywide.

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Comprising the new Design Center will be the new 3D Design Division, the Coloring Design Division primarily involved in product design and the Design Promotion Division mainly involved in corporate design, with all three taking over managerial responsibility for the existing Design Division, Product Planning Section in Motorcycle Business Operations and the Corporate Design Division in the Technical Center.

2.

Reorganization of the Technology Center

Technology development and technology strategy functions will be strengthened companywide.

<Strengthening advanced development capabilities>

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An Advanced Development Section will be newly established in the Technology Center.

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The new Advanced Development Section will house the Advanced Development Division currently in Motorcycle Business Operations and a new Project Development Division in charge of strategy projects companywide.

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The Technology Center will also now house the Motor Sports Development Division currently in Motorcycle Business Operations.

<Strengthening technology development capabilities for the future>

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In order to strengthen technology development for the future, a new Communications-Linked BIKEs Promotion Division will be placed under the direct supervision of the Technology Center, and an Innovation Technology Research Division and Advanced System & Safety Technology Research Division will be newly established within the Research & Development Section.

<Promoting the advancement of manufacturing technology strategy>

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A Manufacturing Technology Strategy & Planning Division will be newly established within the Technology Center's Manufacturing Technology Section.

The aim is to promote integrated operations in the areas of manufacturing technology and product and core technology development and to pursue the proposal and implementation of short and medium term manufacturing technology strategies.

3.

Manufacturing Center Organizational Changes

In order to advance SyS functions and consolidate other functions in line with the existing structural reform plans, the roles of the manufacturing and engineering functions will be clarified, production costs reduced and technology and administration functions strengthened.

<Manufacturing functions>

1)Body Manufacturing Section

The manufacturing functions of the Morimachi Factory and Iwata Main Factory will be consolidated into a newly established "Chassis & Tank Manufacturing Division."

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The manufacturing functions of the Nakaze Factory will be reorganized into a newly established "Nakaze Manufacturing Division."

2)Engine Manufacturing Section

Aluminum manufacturing functions: The manufacturing functions of the Iwata Main Factory and Iwata South Factory will be reorganized into a newly established "Iwata Manufacturing Division."

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Steel manufacturing functions: The manufacturing functions at the Hamamatsu Marine Site and Hamakita Factory will be consolidated into a newly established "Hamamatsu Manufacturing Division."

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Automobile engine manufacturing functions: To be consolidated into a newly established "Engine Manufacturing Division."

<Engineering functions>

The SyS staffs (engineering and administrative) existing separately until now in the Body Manufacturing Section and Engine Manufacturing Section will be consolidated in newly established technology divisions within each of the two Sections.

Within the Body Manufacturing Section, a Body SyS Engineering Division will be newly established.

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Within the Engine Manufacturing Section, an Engine SyS Engineering Division will be newly established.

Strengthening competitiveness of the business divisions

4.

Reorganization of Motorcycle Business Operations

Regional business responsibilities will be further clarified and improvements made to improve problem-solving speed and impetus.

1)Clarifying regional business responsibilities

The existing 1st Business Unit will be divided into a new 1st Business Unit responsible for the ASEAN region and Taiwan and a 3rd Business Unit (to be newly established) responsible for South Asia, China and Latin America.

The result will be three regional business units with the 2nd Business Unit responsible for Japan, North America, Europe and Oceania.

2)Business Unit system integrating Planning, Business and Engineering functions

A Business Unit system integrating product planning, model development and engineering functions will be created in each of the three regional business units (1st, 2nd, and 3rd).

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Each of the three regional business units will have separate product planning functions to be included in a newly established Business Promotion Division comprising business planning, cost planning and product planning functions.

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The model development functions of the Engineering Section will be separated for each of the three regional business units as a Motorcycle Development Division to be newly established.

3)Strengthening technology capabilities in testing

The testing management and test technology development functions formerly performed by the Product Engine Testing Division, the Product Vehicle Testing Division and the Engineering Strategy Division will be consolidated into a Testing Division to be newly established in Motorcycle Business Operations.

5.

Recreational Vehicle Business Unit to be absorbed into Business Development Operations

In order to increase the speed of development and growth of new businesses (products/markets) in cooperation with the operations under supervision of the Business Development Operations, Recreational Vehicle Business Unit will be absorbed into the Business Development Operations.

6.

Reorganization of Smart Power Vehicle Business Unit

In order to improve development quality and efficiency synergistic benefits between product/parts lines, the formerly separate development systems of the EV Development Division and PAS Development Division will be reorganized into a Vehicle Development Division and Component Development Division.

Abbreviation;

SyS: System Supplier

Abbreviations;

SyS: System Supplier
EV: Electric Vehicle
PAS: Power Assist System

Main businesses of the group companies referenced above;

Yamaha Motor Taiwan Co., Ltd.: Manufacture and sales of motorcycles in Taiwan
Yamaha Motor Deutschland GmbH.: Marketing of motorcycles, outboard motors, personal watercraft, all-terrain vehicles and power products in Germany
Yamaha Motor Manufacturing Corporation of America: Manufacture and development of golf cars, personal watercraft, all-terrain vehicles, side-by-side vehicles and other products in the U.S.
Yamaha Motor Asian Center Co., Ltd.: Development of motorcycles and other products, and promotion of cross-trade and other businesses in Thailand
Yamaha Motor France S.A.: Marketing of motorcycles, outboard motors, personal watercraft, all-terrain vehicles and power products in France
Shanghai Yamaha Jianshe Motor Marketing Co., Ltd.: Marketing of Yamaha-brand motorcycles made in China, and after-sales service and marketing of parts for those products in China