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Relocation of Business Unit Bases in Shizuoka Prefecture

July 24, 2012

Yamaha Motor Co., Ltd. will be aggregating and relocating the bases dedicated mainly to its Marine and Smart Power Vehicle businesses in Shizuoka Prefecture to its Iwata Headquarters. This relocation is a part of Yamaha Motor's efforts to increase its corporate value through sustainable growth as outlined in the next medium-term management plan (2013-2015). The units will be relocated to the office and factory facilities acquired in 2011 that border Yamaha Motor's Iwata Headquarters.

This initiative is aimed at reorganizing the manufacturing layout in Japan in order to improve the efficiency of business operations for the developed countries as well as implementing growth strategies for the Marine and Smart Power Vehicle businesses.

Overview of the relocation
1.

Reorganizing the manufacturing layout in Japan

(1)Transfer of the Marine Engine business' parts manufacturing from the Hamamatsu Marine Site to the Iwata Main Factory.

(2)Transfer of the Water Vehicle business' engine assembly and parts manufacturing from the Kuramatsu Factory to the Iwata South Factory and Iwata Main Factory.

2.

Implementing growth strategies

 

(1)Aggregation of the marketing, development and management departments of the three business units (Marine Engine, Water Vehicle and Boat) of Yamaha Motor's Marine Business Operations and the Overseas Market Development Operation Business Unit (all currently dispersed between Kosai City and Hamamatsu City) into the Iwata Headquarters.

 

(2)Transfer of the Smart Power Vehicle business' development and quality assurance departments currently at Yamaha Motor Electronics Co., Ltd. (Mori-machi, Shuchi-gun) to the Iwata Headquarters.

Anticipated effects of the relocation
1.

Improved business efficiency through aggregating parts manufacturing for the Marine Engine and Water Vehicle businesses into the Iwata Main Factory, aggregating engine assembly for ATVs and Water Vehicle into the Iwata South Factory and more as part of reorganizing the manufacturing layout in Japan.
Also, the initial goal for consolidating the manufacturing layout in Japan (12 factories/25 units into 7 factories/14 units) will be further consolidated to 6 factories/13 units to advance reorganization efforts.

2.

As an initiative in line with the corporate growth strategy, the aim of aggregating the three business units of Yamaha Motor's Marine Business Operations is to achieve further advances in expanding business scale, maximizing synergy for more effective area marketing and developing new demand, all from a comprehensive marine business perspective. With this reorganization, Marine Business Operations will pursue a target of achieving net sales of 300 billion yen.
Also, the aggregation will enable additional strengthening of the development department of the Smart Power Vehicle business unit, which is categorized as one of Yamaha Motor's new growth categories, amid efforts to expand its business scale.

3.

Furthermore, with the aggregation of facilities at the Iwata Headquarters, we will aim for improved efficiency and synergy between the marketing, procurement, manufacturing, technical and logistical aspects of each business unit.

This relocation and the transfers that accompany it will begin in stages from 2013 with expenses estimated at around seven billion yen.

<Reference: Business Units to be Relocate>

Business Unit Facility Current Location New Location
Marine Engine Business Unit Office, Factory Hamamatsu Marine Site
(Minami-ku, Hamamatsu City)
Kuramatsu Factory
(Minami-ku, Hamamatsu City)
Iwata Headquarters (Shingai, Iwata City)

*Excluding the Water Vehicle engine assembly line at the Kuramatsu Factory that will be transferred to the Iwata South Factory
Water Vehicle Business Unit Office, Factory
Boat Business Unit Office Arai Site (Arai-cho, Kosai City)
Overseas Market Development Operation Business Unit Office
Smart Power Vehicle Business Unit
(Development and quality assurance departments)
Office Yamaha Motor Electronics Co., Ltd.
(Mori-machi, Shuchi-gun)

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