Consolidated Business Results Summary — First Half of Fiscal Year Ending December 31, 2021 —

August 5, 2021

Consolidated Business Results

IWATA, August 5, 2021—Yamaha Motor Co., Ltd. (Tokyo: 7272) announces its consolidated business results for the first half of fiscal 2021.
Net sales for the consolidated accounting period for the first six months of the fiscal year ending December 31, 2021 were 920.1 billion yen (an increase of 234.6 billion yen or 34.2% compared with the same period of the previous fiscal year) and operating income was 109.2 billion yen (an increase of 90.1 billion yen or 471.9%).
Ordinary income was 115.1 billion yen (an increase of 94.3 billion yen or 454.8%) and net income for the period attributable to owners of parent was 93.1 billion yen (compared to a quarterly net loss of 2.8 billion yen in the same period of the previous fiscal year).
For net sales, the worldwide spread of COVID-19 infections since March last year led to lower unit sales and production numbers, but the impacts have diminished over this first half of the fiscal year and demand has recovered in all business segments, resulting in higher sales overall.
Operating income increased significantly not only due to the rise in net sales but also from higher purchase prices, cutting fixed costs by using digital technologies for remote access and the like, a decrease in the allowance for doubtful accounts, and other factors, serving to absorb the effects of soaring logistics and raw material costs.
For the first half-year consolidated accounting period, the U.S. dollar traded at 108 yen (unchanged from the same period of the previous fiscal year) and the euro at 130 yen (a depreciation of 11 yen).

Results by Business Segment

Land Mobility Business

Net sales were 595.9 billion yen (an increase of 166.9 billion yen or 38.9% compared with the same period of the previous fiscal year) and operating income was 44.8 billion yen (compared to an operating loss of 6.7 billion yen in the same period of the previous fiscal year).
Motorcycles in developed markets were affected by supply delays due to a shortage of shipping containers, but unit sales increased thanks to a recovery in demand in Europe and the effects of launching new products. In North America, the boom in outdoor and family recreation demand has continued from last year and strong sales of off-road models brought higher unit sales. As a result, both sales and profits increased overall.
Unit sales of motorcycles in emerging markets exceeded figures from last year in all regions, resulting in higher sales and profits. In addition, higher sales of premium segment models helped improve the model mix and sales and profits surpassed even 2019’s figures, despite the Indonesian market still not being fully recovered.
Strong demand continued for recreational vehicles (all-terrain vehicles, recreational off-highway vehicles, and snowmobiles). While production delays remain due to part shortages and other issues, sales and profits increased thanks to higher unit sales.
As for electrically power-assisted bicycles, the trend to avoid using public transportation led to greater recognition of the merits of bicycles, resulting in continued healthy sales of complete Yamaha-brand bicycles in Japan and E-kits for Europe, resulting in higher sales and income.

Marine Products Business

Net sales were 205.9 billion yen (an increase of 39.0 billion yen or 23.3% compared with the same period of the previous fiscal year) and operating income was 44.0 billion yen (an increase of 18.6 billion yen or 73.2%).
In the first half of the previous fiscal year, the COVID-19 pandemic forced the temporary suspension of operations at our North American boatbuilders and at the Iwata Main Factory and the effects were pronounced, but outdoor recreation demand remained robust and demand for outboard motors and boats rose, mainly in developed markets. For outboard motors, the impacts of shipping delays from the global shortage of containers remain, but product supply volume rose due to boosting production numbers, leading to higher outboard motor unit sales. Personal watercraft unit sales fell due to production delays owning to a shortage of parts and other issues, but sales of sport boats and overseas boats increased. As a result, sales and profits grew for the Marine Products business as a whole.

Robotics Business

Net sales were 59.2 billion yen (an increase of 21.8 billion yen or 58.2% compared with the same period of the previous fiscal year) and operating income was 9.0 billion yen (the same period of the previous fiscal year recorded an operating income of 0.6 billion yen).
In addition to ongoing strong sales in Asia (including China, Taiwan, and South Korea), sales in Europe, the United States, and Japan also recovered and surface mounter unit sales grew significantly. Yamaha Robotics Holdings Co., Ltd. also returned to profitability thanks not only to strong sales but also the effects of structural reforms materializing, and sales and profits grew accordingly.

Financial Services Business

Net sales were 23.6 billion yen (an increase of 1.0 billion yen or 4.3% compared with the same period of the previous fiscal year) and operating income was 9.9 billion yen (the same period of the previous fiscal year recorded an operating income of 0.3 billion yen).
Wholesale receivables decreased as a result of less market inventory, but sales and profits both grew due to an increase in retail financing, decreases in the allowance for doubtful accounts, and other factors.

Other Products Business

Net sales were 35.4 billion yen (an increase of 5.9 billion yen or 20.2% compared with the same period of the previous fiscal year) and operating income was 1.4 billion yen (the same period of the previous fiscal year recorded an operating loss of 0.5 billion yen).
Due to an increase in the number of golf rounds, demand for golf cars grew and unit sales rose. In addition, increased sales of multi-purpose engines contributed to higher sales and profits for the business overall.

Forecast of Consolidated Business Results

For the remainder of the fiscal year ending December 31, 2021, the favorable business environment is expected to continue, despite the impacts from the shortage of semiconductors and other parts, soaring raw material prices, and the resurgence of COVID-19 infections in Indonesia and other countries.
Also, the Company has revised its forecasts for net sales and various incomes as follows in light of the higher-than-expected recovery in sales, continued cost reductions, and the depreciation of the yen. Note that this revised forecast does not reflect the effects of global lockdowns due to the rising spread of new coronavirus variants.

These forecast figures are based on the U.S. dollar trading at 109 yen during the fiscal year (a depreciation of 3 yen from the previous forecast and a depreciation of 2 yen from the same period of the previous fiscal year) and the euro at 130 yen (a depreciation of 2 yen from the previous forecast and a depreciation of 6 yen from the same period of the previous fiscal year).

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

Recognizing that improvement of shareholder benefits represents 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 owners of parent and focusing on achieving a balance of growth investment and shareholder returns within the scope of cash flows while maintaining earnings power.
Based on the revised business results forecast, the Company has decided to change the forecast for this fiscal year’s annual dividend to 100 yen at a payout ratio of 31.2% (an increase of 10 yen from the year’s initial forecast and an increase of 40 yen from the previous fiscal year), with an interim dividend of 50 yen (an increase of 5 yen from the year’s initial forecast and an increase of 50 yen from the previous fiscal year).