Consolidated Business Results Summary — Fiscal Year 2015 Ending December 31 —

February 9, 2016

Consolidated business results

IWATA, February 9, 2016 –Yamaha Motor Co., Ltd. (Tokyo: 7272) announces results for the current consolidated accounting year.Net sales were 1,615.4 billion yen, an increase of 94.1 billion yen (6.2%) compared with the same period the previous fiscal year. Operating income was 120.4 billion yen, an increase of 33.2 billion yen (38.0%) compared with the same period the previous fiscal year.
Developed markets delivered sales and income increases thanks to sales increases of global models and products in the higher price range in the motorcycle business segment, increased sales of large models and the effect of yen depreciation in the marine business segment, and increased sales of recreational off-highway vehicles (ROV) models in the power product segment. For the motorcycle business in emerging markets, increased sales in Vietnam, the Philippines, and Taiwan, as well as increased sales of products in the higher price range - and the effect of cost reductions in each region - absorbed the reduction in unit sales and currency depreciation effects in Indonesia, Brazil, and China etc. meaning that income was in line with the previous period.
Ordinary income was 125.2 billion yen (an increase of 28.0 billion yen/28.7% against the same period the previous fiscal year). Net income for the period was 60.0 billion yen (a decrease of 8.4 billion yen/12.3% against the same period the previous fiscal year). Net income was affected including one-off factors such as the additional recognition of 14.4 billion yen of deferred tax assets, and the recognition of an estimated expected taxation payment amount of 35.6 billion yen in U.S. subsidiaries due to an income distribution adjustment between Japan and the U.S.A. based on the progress of U.S.-Japan bilateral discussions regarding the 'Advance Pricing Agreement' (APA).
For the fiscal year, the U.S. dollar traded at 121 yen (a depreciation of 15 yen against the same period the previous fiscal year), and the euro at 134 yen (an appreciation of 6 yen against the same period the previous fiscal year).

Results by business segment

Motorcycles

Global net sales of motorcycle products were 1,016 billion yen (an increase of 38.4 billion yen/3.9% compared with the same period in the previous fiscal year), and operating income was 31.9 billion yen (an increase of 9.0 billion yen/39.1% compared with the same period in the previous fiscal year).
Unit sales increased in developed markets such as North America, Europe, and in Japan, sales of large motorcycle products increased while scooter sales decreased. Unit sales in emerging markets such as Vietnam, the Philippines, and Taiwan increased, but decreased in Indonesia, Brazil, and China etc.
Net sales increased thanks to the effects of new products such as the MT series etc. and increased sales of products in the higher price range. Operating income also increased, with factors generating increased income, such as the effects of scale, product mix, and cost reductions, absorbing negative factors such as increases in development costs and currency depreciation in emerging markets.

Marine

Net sales in the marine segment were 303.4 billion yen (an increase overall of 27.1 billion yen/9.8% compared with the same period in the previous fiscal year), and operating income was 60.2 billion yen (an increase of 14.4 billion yen/31.5% compared with the same period in the previous fiscal year).
Increases in sales and income were achieved thanks to increased unit sales in North America of large outboard motors, water vehicles, and the effects of yen depreciation.

Power Products

Net sales of power products were 161.5 billion yen (an increase of 19.2 billion yen/13.5% compared with the same period the previous fiscal year), and operating income was 13.2 billion yen (an increase of 6.7 billion yen/102.5% compared with the same period the previous fiscal year).
Sales and income increased thanks to the increase in sales due to the expansion of the recreational off-highway vehicle (ROV) product line-up etc.

Industrial Machinery & Robot Products

Net sales in the industrial machinery and robot’s business segment were 48.7 billion yen (an increase of 9.8 billion yen/25.1% compared with the same period in the previous fiscal year), and operating income was 7.8 billion yen (an increase of 2.7 billion yen/54.2% compared with the same period the previous fiscal year). Unit sales of surface mounters increased mainly in Asia and Japan. Progress in business absorption by the asset acquisition of the Hitachi High-Technologies Corporation contributed to an increase in net sales.

Other Products

Net sales of the other products business overall were 85.8 billion yen (a decrease of 0.3 billion yen/0.4% compared with the same period the previous fiscal year), and operating income was 7.4 billion yen (an increase of 0.4 billion yen/5.6% compared with the same period the previous fiscal year).
Unit sales of electrically power assisted bicycles increased both domestically and overseas due to the effect of new products, and the development of new customers.

Forecast of business results for the fiscal year ending December 31, 2016

Forecasts for demand in the next fiscal year for our major businesses are for a solid business climate to continue in developed markets, and for the unstable situation to continue in emerging markets due to factors such as low resource prices and weak currencies in Indonesia, Brazil etc.
Based on such estimations, we expect to roll out further platform models in the market for the motorcycle business segment, high profitability will be maintained thanks to high brand power in the marine business segment, and earning power in the recreational off-highway vehicle (ROV) sports field and other businesses of the power product segment will increase. The income generated from these areas will help us further our growth investment and continue to achieve sustainable growth towards our aim of becoming "a unique company that continues to achieve dynamic milestones."
The following details our forecast consolidated business results for the next fiscal year based on the above.

These forecast figures are based on the U.S. dollar trading at 117 yen during the fiscal year (an appreciation of 4 yen from the previous fiscal year), and the euro at 127 yen (an appreciation of 7 yen compared with the previous fiscal year).

Basic policy concerning profit distribution and dividends for the current and subsequent fiscal year

In FY2015, the Company aims to maintain a "minimum dividend payout ratio of 20% of consolidated net income" in line with its basic dividend policy, and, as outlined in the 3rd Quarter Business Results, enact a final dividend of 22 yen per share. This dividend is planned to be placed on the agenda of the 81st Ordinary General Meeting of Shareholders, scheduled for March 25, 2016. With the interim dividend of 22 yen per share, this gives a total dividend for the year of 44 yen per share based on the above.
With regards to FY2016 and beyond, the Company is aiming towards a dividend policy of 30% of consolidated net income, and focusing on increasing the earning power of our existing business, maintaining and increasing a stable financial platform, and increasing new growth investment and stock dividends.

The Company is working on the principle of two dividends from surplus per year, being an interim dividend and a final dividend. Decisions with regard to the dividends will be made by the Board of Directors for the interim dividend, and the Ordinary General Meeting of Shareholders for the final dividend. Additionally, as stated in the Articles of Incorporation, an interim dividend can be carried with an annual record date of June 30.

In accordance with the above-mentioned new policy, the December FY2016 dividend will be a total of 70 yen (intermediate dividend of 35 yen and final of 35 yen) based on a dividend payout ratio (consolidated) of 30%.