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Consolidated Business Results Summary -- Full Fiscal Year Ended December 31, 2021 --

February 10, 2022

Consolidated Business Results

IWATA, February 10, 2022--Yamaha Motor Co., Ltd. (Tokyo: 7272) announces its consolidated business results for the full 2021 fiscal year.
Net sales were 1,812.5 billion yen (an increase of 341.2 billion yen or 23.2% compared with the previous fiscal year) and operating income was 182.3 billion yen (an increase of 100.7 billion yen or 123.3%). Ordinary income was 189.4 billion yen (an increase of 101.7 billion yen or 116.0%) and net income attributable to owners of parent was 155.6 billion yen (an increase of 102.5 billion yen or 193.1%). These represent the Company's highest figures ever for net sales and income. For the fiscal year, the U.S. dollar traded at 110 yen (a depreciation of 3 yen from the previous fiscal year) and the euro at 130 yen (a depreciation of 8 yen).
Thanks to higher unit sales as well as the increase in unit purchase prices, net sales increased despite the impacts of lower production, labor shortages, and more brought on by the supply shortage of semiconductors and other parts. Operating income rose significantly in part due to the increase in sales but also due to the curbing of fixed costs through the implementation of remote work and other digital methods, foreign exchange impacts, and other factors working to absorb the effects of soaring logistics costs and raw material prices.

Results by Business Segment

Land Mobility Business

Net sales were 1,179.7 billion yen (an increase of 233.3 billion yen or 24.6% compared with the previous fiscal year) and operating income was 68.7 billion yen (an increase of 50.3 billion yen or 272.4%).
For motorcycles in developed markets, the current boom in outdoor and family recreation led to correspondingly higher unit sales than last year in all regions, which drove up both net sales and profits. On the other hand, the market inventory shortage remains ongoing due to an insufficient supply of semiconductors and other components as well as logistics delays caused by a lack of shipping containers. Although profitability remained out of reach, the deficit gap was significantly reduced.
With motorcycles in emerging markets, demand rose year on year in the Philippines, Indonesia, Thailand, and other countries as governments shifted strategies to balance implementing COVID-19 countermeasures with allowing economic activity. For the Company, further waves of COVID-19 cases led to a decrease in factory and dealership utilization rates, but higher sales of premium segment models led to an improved model mix, resulting in higher sales and profits.
With recreational vehicles (all-terrain vehicles, ROVs, and snowmobiles), the strong demand for outdoor recreation continued undeterred by the resurgence of COVID-19 cases. Despite the impact of production delays brought on by the parts supply shortage and other factors, the solid sales performance of the Wolverine RMAX series led to higher unit sales overall, bringing the business higher net sales and profits that landed it successfully in the black for the year.
For electrically power-assisted bicycles, the current reevaluation of the advantages bicycles have for getting to and from nurseries, schools, and offices helped keep sales of complete Yamaha-brand bicycles in Japan and e-Kits for Europe strong, resulting in increased sales and profits for the business overall.

Marine Products Business

Net sales were 391.1 billion yen (an increase of 62.8 billion yen or 19.1% compared with the previous fiscal year) and operating income was 76.8 billion yen (an increase of 26.2 billion yen or 51.7%).
Demand for large outboard motors remained firm in developed markets while outboard demand recovered in emerging markets. The global shipping container shortage is still causing delays in loading ships with product, but boosting our production numbers has improved our product supply and this increased unit sales. Also, boat and personal watercraft unit sales increased due to progress with measures to counter part procurement delays. As a result, sales and profits increased for the Marine Products business as a whole.

Robotics Business

Net sales were 120.3 billion yen (an increase of 37.3 billion yen or 44.9% compared with the previous fiscal year) and operating income was 17.6 billion yen (compared to an operating income of 3.3 billion yen the previous fiscal year).
In the first half of fiscal 2021, the effects of COVID-19 settled down particularly in Asian countries (including China, Taiwan, and South Korea) and capital investment gained steam. From the second half of the fiscal year, sales grew stronger in Japan, Europe, and North America, and unit sales of both surface mounters and industrial robots increased. Further, continued strong sales by Yamaha Robotics Holdings Co., Ltd. and the effects of structural reforms led to it successfully achieving profitability. As a result, sales and profits for the business both increased overall.

Financial Services Business

Net sales were 48.6 billion yen (an increase of 2.6 billion yen or 5.6% compared with the previous fiscal year) and operating income was 19.1 billion yen (an increase of 11.6 billion yen or 153.1%).
The significant decrease in market inventories led to a decrease in wholesale receivables, but an increase in retail financing and a decrease in the allowance for doubtful accounts as a one-time factor brought in higher sales and profits.

Other Products

Net sales were 72.7 billion yen (an increase of 5.3 billion yen or 7.8% compared with the previous fiscal year) and operating income was less than 1 billion yen (a decrease of 1.7 billion yen or 97.6%).
Sales rose due to an increase in golf car and multipurpose engine unit sales, but operating income declined year on year due to one-time costs incurred by other product categories in the business.

Forecast of Consolidated Business Results for the Fiscal Year Ending December 31, 2022

In 2021, despite the impact of new waves in the COVID-19 pandemic, demand in all segments recovered in step with countries lifting lockdowns. As demand is expected to remain strong in 2022, the Company will ramp up its efforts in parts procurement, production, and shipping, and further raise market inventory to more appropriate levels.
On the other hand, in terms of risks, prices for various materials such as aluminum, steel, and precious metals are soaring to unprecedented levels and logistics costs are also expected to rise significantly. In response, we will strive to improve profitability by reducing costs, raising productivity, and increasing the sales ratio of premium segment products, while further controlling expenses by promoting digital marketing for advertising, events, and other approaches. Additionally, by implementing a variety of measures, we believe it will be possible to recover within the year from the adverse effects on production from the still-ongoing shortage of semiconductors and other components. The forecast consolidated business results are as follows.

Net Sales 2,000 billion yen
(an increase of 187.5 billion yen
or 10.3% from FY2021)
Operating Income 190.0 billion yen
(an increase of 7.7 billion yen
or 4.2% from FY2021)
Ordinary Income 190.0 billion yen
(an increase of 0.6 billion yen
or 0.3% from FY2021)
Net Income Attributable to Owners of Parent 130.0 billion yen
(a decrease of 25.6 billion yen
or down 16.4% compared with FY2021)

These forecast figures are based on the U.S. dollar trading at 113 yen during the fiscal year (a depreciation of 3 yen from FY2021) and the euro at 128 yen (an appreciation of 2 yen).

Basic Policy Concerning Profit Distribution and Dividends for the Current and Subsequent Fiscal Years

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.
The Company works on the principle of paying an interim dividend and a final dividend. Decisions with regard to the dividends are made by the Board of Directors for the interim dividend, and the Ordinary General Meeting of Shareholders for the final dividend. The dividend record dates are stated in the Articles of Incorporation as June 30 for the interim dividend and December 31 for the final dividend.
Regarding the final dividend for the current fiscal year, a dividend of 65 yen per share is planned to be placed on the agenda of the 87th Ordinary General Meeting of Shareholders, scheduled for March 23, 2022. With the interim dividend of 50 yen per share, this gives a total dividend for the year of 115 yen per share.
In addition, as a new shareholder policy in the new Medium-Term Management Plan starting in 2022, we will emphasize making consistent and ongoing dividend payments while taking into consideration the outlook for business performance and investments for future growth, distributing returns to shareholders in a flexible way based on the scale of our cash flows with the total payout ratio set at the 40% range for the cumulative total of the plan's period. With regard to the dividend payment for the next fiscal year, a total of 115 yen (interim dividend of 57.5 yen and final dividend of 57.5 yen) is planned.

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