Notification regarding the Recognition of Investment Appraisal Losses etc.

February 9, 2016

Consolidated business results

IWATA, February 9, 2016—Yamaha Motor Co., Ltd. (Tokyo: 7272) has recognized investment appraisal losses at related companies of 14.572 billion yen and share appraisal losses at related companies of 711 million yen as non-operating expenses in the separate accounts for the fiscal year ending December 2015, and includes them together in this announcement. This is with regard to investments etc. at related companies where it is acknowledged that the net asset value has significantly decreased compared to the book value in the fiscal year ending December 2015.
(In addition to the share appraisal losses at related companies in the separate accounts for the first nine months of the fiscal year ending December 31, 2015, the share appraisal losses at related companies for the fiscal year is 1.175 billion yen.)

The investment appraisal losses etc. at related companies concerned are related to the investment and shares of consolidated subsidiaries of Yamaha Motor’s Brazilian sales subsidiary Yamaha Motor do Brasil Ltda. etc. As they are removed from consolidation, there is no effect on the consolidated business results.

Reference: Yamaha Motor’s policy regarding securities impairment is that, if the actual value at the end of the fiscal year has decreased to 50% or more lower than the book value, then in principle impairment shall be carried out. If the actual value has decreased approximately 30-50%, impairment shall be carried out to the value deemed necessary bearing in mind the possibility of the value recovering.