Yamaha Motor earnings continue to rise in second quarter — Strong growth in net sales of major product categories —

August 8, 2018

IWATA, August 8, 2018—Yamaha Motor Co., Ltd. (Tokyo: 7272) announces consolidated business results for the first half.
Net sales for Yamaha Motor Co., Ltd.'s consolidated accounting period for the first half of the fiscal year ending December 31, 2018 were 851.3 billion yen, an increase of 23.3 billion yen (2.8%) compared with the same period the previous fiscal year.
Operating income was 82.2 billion yen, an increase of 0.1 billion yen (0.1%), ordinary income was 79.3 billion yen, a decrease of 4.2 billion yen (5.0%), and net income for the period attributable to parent company shareholders was 57.0 billion yen, a decrease of 3.8 billion yen (6.3%) compared with the previous fiscal year. For the first half consolidated accounting period, the U.S. dollar traded at 109 yen (an appreciation of 3 yen from the same period the previous fiscal year), and the euro at 132 yen (a depreciation of 10 yen).
Net sales increased thanks to healthy sales in the emerging markets motorcycle business, the marine business, and the industrial machinery and robots business. In addition to higher net sales, operating income increased thanks to product mix improvements in the emerging markets motorcycle business and the industrial machinery and robots business absorbing decreased income in the developed markets motorcycle business, leading to a result at the same level as the previous year.

Results by Business Segment

Motorcycles:

Net sales were 515.4 billion yen (an increase of 6.2 billion yen or 1.2% compared with the same period the previous fiscal year), and operating income was 31.2 billion yen (a decrease of 2.5 billion yen or 7.5%).
In emerging markets such as Indonesia, India, and the Philippines, increased unit sales, product mix improvements, etc. led to increased sales and income. In developed markets, the decrease in unit sales in Europe etc. led to decreased sales and income.

Marine:

Net sales were 188.7 billion yen (an increase of 9.0 billion yen or 5.0% compared with the same period the previous fiscal year), and operating income was 38.2 billion yen (an increase of 1.3 billion yen or 3.5%).
Increases in sales and income were achieved thanks to an increase in water vehicle and sports boat unit sales in North America.

Power Products:

Net sales were 71.3 billion yen (an increase of 4.3 billion yen or 6.5% compared with the same period the previous fiscal year), and operating income was 1.1 billion yen (an increase of 0.2 billion yen or 18.6%).
Increases in unit sales of all-terrain vehicles and golf cars led to increased sales and income.

Industrial Machinery & Robot Products:

Net sales were 35.3 billion yen (an increase of 4.5 billion yen or 14.6% compared with the same period the previous fiscal year), and operating income was 8.8 billion yen (an increase of 2.5 billion yen or 40.3%).
Increases in sales and income were achieved thanks to surface mounter product mix improvements etc.

Other Products:

Net sales were 40.6 billion yen (a decrease of 0.8 billion yen or 1.8% compared with the same period the previous fiscal year), and operating income was 2.9 billion yen (a decrease of 1.4 billion yen or 32.6%).
Sales and income decreased due to the deterioration of the electrically power assisted bicycles product mix etc.

Forecast of Consolidated Business Results:

Regarding the anticipated consolidated business results for the fiscal year ending December 31, 2018, it is forecast that factors generating increased sales and income such as the marine business, emerging markets motorcycle business, and the industrial machinery and robots business will absorb factors in the developed markets motorcycle business causing decreased sales and income. Therefore, the anticipated consolidated business results for the fiscal year have not changed from the initial forecast, namely 1,700.0 billion yen in net sales, 150.0 billion yen in operating income, 155.0 billion yen in ordinary income, and 103.0 billion yen in net income for the fiscal year attributable to parent company shareholders.

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

Recognizing that shareholders' interests represent one of the Company's highest management priorities, the Company has been striving to meet shareholder expectations by working to maximize its corporate value.
With regards to dividends, the Company is aiming toward a payout ratio of 30% of net income attributable to parent company shareholders and focusing on maintaining and increasing a stable financial platform and increasing new growth investment and stock dividends.
Regarding dividends for the period, based on there being no changes in the anticipated consolidated business results for the fiscal year ending December 31, 2018 from the initial forecast, and based on a payout ratio of 30%, the forecast dividend for the year is 90 yen per share, unchanged from the initial forecast, and the interim dividend has been determined at 45 yen per share.