Summary of Business Results for the Fiscal Year Ended December 31, 2011

Yamaha Motor Co., Ltd. (the "Company") has released its consolidated business results for the fiscal year ended December 31, 2011 (fiscal 2011). Although there was an increase in the global shipment of motorcycles and outboard motors, the effects of the appreciation of the yen on foreign exchange and the decrease in production due to the Great East Japan Earthquake and floods in Thailand pushed net sales down slightly by 1.4% from the previous fiscal year to 1,276.2 billion yen.

On the income front, positive factors such as the increase in sales, cost reductions achieved through structural reforms and a reversal of the accrual for product liabilities absorbed negative factors, such as the continuing appreciation of the yen, the impact of the floods in Thailand and a decrease in demand in Europe and North America. As a result, operating income rose 4.1% from the previous fiscal year to 53.4 billion yen, ordinary income decreased 4.0% to 63.5 billion yen and net income increased 47.3% to 27.0 billion yen. Despite this harsh business environment, we continued moving forward from our swift V-shaped recovery towards building a strong foundation for stable profitability, and this brought about our return to making dividend payments.

In terms of the Company's financial base, the Company achieved its medium-term management targets for an equity ratio of 30% and debt/equity ratio of 1.0 (gross) ahead of schedule. On the foreign exchange front, the average exchange rate of the yen during the period under review appreciated by eight yen from the previous fiscal year against the U.S. dollar to 80 yen, and by five yen against the euro to 111 yen.

In the Motorcycles segment, shipments increased in emerging markets such as Vietnam, India and Central and South America, but decreased in markets such as Indonesia and Thailand due to the impact of the floods in Thailand. As for developed markets, there were increases in the U.S., where distribution inventories had been adjusted the previous year, and in Japan, where there was demand from post-quake reconstruction, but there was a decrease in Europe due to a drop in demand. As a result, the number of units shipped globally increased slightly by 0.3% from the previous fiscal year to a record high 6.98 million units. The impact of the appreciation of the yen pushed net sales down by 2.9% from the previous fiscal year to 887.6 billion yen. The appreciation of the yen, the impact of the floods in Thailand and the increase in research and development expenses pushed operating income down by 43.2% from the previous fiscal year to 27.6 billion yen.

In the Marine products segment, shipments of outboard motors increased in Central and South America and Russia due to an increase in demand, and despite bottomed out demand in the U.S. market, the number of units shipped globally increased 11.4% from the previous fiscal year to 300,000 units. Shipments of personal watercraft also increased thanks to a recovery in demand in the U.S. As a result, despite the impact of the appreciation of the yen, net sales increased 7.1% from the previous fiscal year to 178.9 billion yen and operating income increased 846.1% to 7.1 billion yen.

In the Power products segment, shipments of generators increased in Japan in part buoyed by the demand from post-quake reconstruction, but shipments of all-terrain vehicles (ATVs) decreased in North America where demand continues to slide. As a result, net sales decreased 2.6% from the previous fiscal year to 100.3 billion yen, although operating income improved by 18.7 billion yen to 7.5 billion yen thanks to the reversal of the accrual for product liabilities and a reduction in expenses.

In the Industrial Machinery & robots segment (*classified separately from the Other products segment from this fiscal year), shipments of surface mounters in Europe, the U.S. and Japan exceeded those of the previous fiscal year, but decreased in China where there was a slump in capital expenditure in response to the global economic slowdown. As a result, total net sales in this segment decreased 1.2% from the previous fiscal year to 34.3 billion yen and operating income decreased 9.9% to 6.3 billion yen.

In the Other products segment, although there was an increase in shipments of electrically power assisted bicycles thanks to a healthy growth in demand, shipments of automobile engines decreased in part due to the effects of the earthquake. As a result, net sales increased 0.1% from the previous fiscal year to 75.1 billion yen and operating income decreased 20.6% to 5.0 billion yen.

During fiscal 2012 (fiscal year ending December 31, 2012), it is expected that demand for motorcycles in emerging nations such as in Asia and Central and South America will continue to grow. In the U.S., demand for motorcycles and outboard motors is expected to gradually recover from all-time lows, while in Europe, it is anticipated that the business slowdown will lead to further declines in the demand for motorcycles.

As for consolidated business results in fiscal 2012, the Company expects net sales to increase 9.7% from fiscal 2011 to 1,400 billion yen on the back of aggressive, new motorcycle releases in emerging markets and an increase in sales in the Marine segment. Meanwhile, on the income front, by taking into account increases in depreciation and research and development expenses aimed at future growth, as well as the effects of the appreciation of the yen and other factors, the Company forecasts that its other consolidated business results will be as follows: 45.0 billion yen in operating income, a decrease of 15.7% from fiscal 2011; 47.0 billion yen in ordinary income, a decrease of 26.0%; and 17.0 billion yen in net income, a decrease of 36.9%.

These forecasts are based on the assumption that the U.S. dollar will trade at 77 yen during the period (appreciation of three yen from fiscal 2011) and the euro at 100 yen (appreciation of 11 yen).

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