Consolidated Business Results Summary - Full Fiscal Year Ending December 31, 2024 -
February 12, 2025
IWATA, February 12, 2025 - Yamaha Motor Co., Ltd. (Tokyo: 7272) announces its consolidated business results for the full 2024 fiscal year.
From WATANABE, Katsuaki
President, Chief Executive Officer and Representative Director
Our consolidated results for fiscal 2024 set new records for revenue, but operating income declined for the first time in four years. Supply of semiconductors improved and helped our supply of premium segment models recover, but at the same time, the demand for outdoor recreation that boomed during the COVID-19 pandemic has largely settled down in developed markets, so we worked to adjust to suit supply and demand in the Marine Product, Recreational Vehicle (RV), and Smart Power Vehicle (SPV) businesses.
2024 was the last year of our Medium-Term Management Plan and we worked to move forward with the strategies for each business based on the plan while striving to reel in costs with our break-even-point management style in mind. As a result, we were able to meet our companywide targets for each financial indicator of growth and profitability. Briefly covering each segment, our core businesses were able to generate stable profits, but our growth businesses were impacted by adverse market conditions and their growth rate suffered. Further, with new businesses, we made progress by launching new businesses and companies, but unfortunately did not reach our revenue targets. As for structural reforms, we successfully carried out all of the measures we originally planned, including a reshuffling of the power products, pool, and snowmobile businesses, and merging by absorption our consolidated subsidiary Yamaha Motor Electronics Co., Ltd.
Our new Medium-Term Management Plan (2025-2027) further evolves our portfolio management and revises our business segments into "Core Businesses," "Strategic Businesses," and "New Businesses." In the future, we aim to have all of our businesses surpassing the 12.5% hurdle rate for ROIC.
Consolidated Business Results
Revenues were 2,576.2 billion yen (an increase of 161.4 billion yen or 6.7% compared with the previous fiscal year) due to more unit sales and higher prices per unit for models sold in Brazil and India in our core business of motorcycles.
As for operating income, after recording the effects soaring prices had on raising labor costs and other SG&A expenses; expenses linked to conducting reviews of our business structure, such as inventory valuation reductions; and impairment losses on certain fixed assets in the SPV and RV businesses; the final figure for 2024 was 181.5 billion yen (a decrease of 62.4 billion yen or 25.6%).
With the decrease in operating income, net income attributable to owners of parent was 108.1 billion yen (a decrease of 50.4 billion yen or 31.8%).
For the full consolidated fiscal year, the U.S. dollar traded at 152 yen (a depreciation of 11 yen from the previous fiscal year) and the euro at 164 yen (a depreciation of 12 yen).
Regarding the Company's financial standings, ROE was 9.7% (down 5.9 points), ROIC was 5.4% (down 3.7 points), and ROA was 6.8% (down 3.5 points). However, all of the targets for the cumulative three-year period of the Medium-Term Management Plan were met. Shareholders' equity was 1,161.6 billion yen (an increase of 85.8 billion yen) and the shareholders' equity ratio was 41.7% (down 0.2 points). In addition, free cash flow (including sales financing) was a positive 48.1 billion yen (an increase of 78.2 billion yen).
Results by Business Segment
Land Mobility Business
Revenues were 1,715.4 billion yen (an increase of 130.1 billion yen or 8.2% compared with the previous fiscal year) and operating income was 85.5 billion yen (a decrease of 42.0 billion yen or 33.0%).
For the motorcycle business in developed markets, demand grew in Europe's major markets and unit sales increased there as well as in the United States, resulting in higher numbers overall than 2023. Unit sales in emerging markets went up, primarily driven by higher demand in India and Brazil, and the increased unit sales exceeded 2023's performance. As a result, the entire motorcycle business recorded higher unit sales. Revenues for the motorcycle business went up thanks to the higher unit sales and higher prices per unit in Brazil and India. For operating income, while improved supply of premium segment models in emerging markets led to higher unit sales, soaring prices elevating labor costs, and higher SG&A expenses from provisions for product warranties and other payments all resulted in profits roughly on par with last year.
With recreational vehicles (all-terrain vehicles and ROVs), market demand as well as our shipments fell below 2023's numbers, resulting in lower revenues. With operating income, lower unit sales, a worsening model mix, higher marketing and promotional expenses accompanying the intensifying competition, impairment losses on fixed assets and other recorded expenses resulted in lower profits.
For the Smart Power Vehicles business, i.e., electric wheelchairs, electrically power-assisted bicycles (eBikes), and their drive units (e-Kits), unit sales of eBikes in Japan surpassed 2023's numbers. However, in Europe, the main market for Yamaha Motor e-Kits, sluggish demand has led to prolonged market inventory adjustments and this brought a decline in unit sales, which resulted in lower sales overall. In terms of operating income, the lower unit sales of e-Kits, increase in sales promotion expenses for complete Yamaha-brand models overseas, and impairment losses on fixed assets and other expenses recorded when conducting reviews of the business' structure led to the SPV business posting lower profits.
Marine Products Business
Revenues were 537.7 billion yen (a decrease of 9.8 billion yen or 1.8% compared with the previous fiscal year) and operating income was 87.8 billion yen (a decrease of 16.4 billion yen or 15.7%).
Regarding outboard motor demand, while the United States-our main market-lowered its policy interest rate in September 2024, the still-high level of interest rates in general as well as ongoing price raises led to decreased demand. Unit sales of new Yamaha outboard models were positive, but sales were lower for the outboard business overall. For personal watercraft, customers remained hesitant to purchase due to concern for those rising interest rates and demand decreased, but unit sales still went up thanks to improvements addressing 2023's lack of parts and supply chain disruptions, which had forced us to place limits on product supply. As a result, sales and profits fell for the Marine Products business overall. Also, Yamaha Motor's consolidated business results for the fiscal year include the performance recorded by German electric marine propulsion manufacturer Torqeedo GmbH during the period of April to December 2024.
Robotics Business
Revenues were 113.3 billion yen (an increase of 11.5 billion yen or 11.4% compared with the previous fiscal year) with an operating loss of 3.0 billion yen (down from an operating income of 0.7 billion yen).
In the surface mounter market, unit sales decreased in developed markets, but increased overall thanks to higher numbers recorded in China and other Asian markets. With industrial robots, the Company posted higher unit sales, but the model mix suffered. Also, higher demand for generative AI applications and advanced packaging yielded higher sales of Yamaha semiconductor back-end process manufacturing equipment. As a result of all these developments, the Robotics business as a whole took in higher sales. As for operating income, the decrease was due to higher manufacturing expenses, development costs, and other SG&A spending.
Financial Services Business
Revenues were 112.2 billion yen (an increase of 25.7 billion yen or 29.7% compared with the previous fiscal year) and operating income was 22.7 billion yen (an increase of 5.6 billion yen or 32.6%).
The increase in financial receivables pushed revenues up for the period. As for operating income, in addition to higher income from interest payments, the appraised losses derived from interest rate swaps last fiscal year were converted to appraisal gains this fiscal year. This upped profits for the period.
Other Products
Revenues were 97.6 billion yen (an increase of 3.9 billion yen or 4.1% compared with the previous fiscal year) with an operating loss of 11.5 billion yen (compared to an operating loss of 5.6 billion yen).
The higher revenues were due to higher demand for golf cars in North America that led to increased unit sales, while operating income fell due to the effect of inventory devaluations of models in the power products business and other factors.
Forecast of Consolidated Business Results for the Fiscal Year Ending December 31, 2025
We expect the environment surrounding the Yamaha Motor group in fiscal 2025 to remain uncertain due to the aforementioned situation in the Middle East and other geopolitical risks, but also due to the sluggish Chinese economy and the impacts various economic policies will have on the global economy, such as the additional tariffs being put in place by the new U.S. presidential administration, along with exchange rate fluctuations.
With this being the case, we expect emerging market motorcycle demand in the Land Mobility business to remain robust and for outboard motor demand in the Marine Products business to make a gradual recovery.
In terms of risks, we anticipate price hikes for aluminum and other raw materials as well as for labor and energy costs to continue going up. In response to these potential risks, we will work to reduce costs and improve productivity.
Furthermore, we will also be conducting structural reforms for the SPV and RV businesses in order to improve profitability, while with our core businesses, our efforts will be towards achieving sustainable growth by focusing on R&D, new product development, and upgrading our production equipment.
The forecast consolidated business results for FY2025 are as follows:
These forecast figures are based on the U.S. dollar trading at 145 yen during the fiscal year (an appreciation of 7 yen from FY2024) and the euro at 155 yen (an appreciation of 9 yen).
Basic Policy Concerning Profit Distribution and Dividends for the Current and Subsequent Fiscal Years
From WATANABE, Katsuaki
President, Chief Executive Officer and Representative Director
Our consolidated results for fiscal 2024 set new records for revenue, but operating income declined for the first time in four years. Supply of semiconductors improved and helped our supply of premium segment models recover, but at the same time, the demand for outdoor recreation that boomed during the COVID-19 pandemic has largely settled down in developed markets, so we worked to adjust to suit supply and demand in the Marine Product, Recreational Vehicle (RV), and Smart Power Vehicle (SPV) businesses.
2024 was the last year of our Medium-Term Management Plan and we worked to move forward with the strategies for each business based on the plan while striving to reel in costs with our break-even-point management style in mind. As a result, we were able to meet our companywide targets for each financial indicator of growth and profitability. Briefly covering each segment, our core businesses were able to generate stable profits, but our growth businesses were impacted by adverse market conditions and their growth rate suffered. Further, with new businesses, we made progress by launching new businesses and companies, but unfortunately did not reach our revenue targets. As for structural reforms, we successfully carried out all of the measures we originally planned, including a reshuffling of the power products, pool, and snowmobile businesses, and merging by absorption our consolidated subsidiary Yamaha Motor Electronics Co., Ltd.
Our new Medium-Term Management Plan (2025-2027) further evolves our portfolio management and revises our business segments into "Core Businesses," "Strategic Businesses," and "New Businesses." In the future, we aim to have all of our businesses surpassing the 12.5% hurdle rate for ROIC.
Consolidated Business Results
Revenues were 2,576.2 billion yen (an increase of 161.4 billion yen or 6.7% compared with the previous fiscal year) due to more unit sales and higher prices per unit for models sold in Brazil and India in our core business of motorcycles.
As for operating income, after recording the effects soaring prices had on raising labor costs and other SG&A expenses; expenses linked to conducting reviews of our business structure, such as inventory valuation reductions; and impairment losses on certain fixed assets in the SPV and RV businesses; the final figure for 2024 was 181.5 billion yen (a decrease of 62.4 billion yen or 25.6%).
With the decrease in operating income, net income attributable to owners of parent was 108.1 billion yen (a decrease of 50.4 billion yen or 31.8%).
For the full consolidated fiscal year, the U.S. dollar traded at 152 yen (a depreciation of 11 yen from the previous fiscal year) and the euro at 164 yen (a depreciation of 12 yen).
Regarding the Company's financial standings, ROE was 9.7% (down 5.9 points), ROIC was 5.4% (down 3.7 points), and ROA was 6.8% (down 3.5 points). However, all of the targets for the cumulative three-year period of the Medium-Term Management Plan were met. Shareholders' equity was 1,161.6 billion yen (an increase of 85.8 billion yen) and the shareholders' equity ratio was 41.7% (down 0.2 points). In addition, free cash flow (including sales financing) was a positive 48.1 billion yen (an increase of 78.2 billion yen).
Results by Business Segment
Land Mobility Business
Revenues were 1,715.4 billion yen (an increase of 130.1 billion yen or 8.2% compared with the previous fiscal year) and operating income was 85.5 billion yen (a decrease of 42.0 billion yen or 33.0%).
For the motorcycle business in developed markets, demand grew in Europe's major markets and unit sales increased there as well as in the United States, resulting in higher numbers overall than 2023. Unit sales in emerging markets went up, primarily driven by higher demand in India and Brazil, and the increased unit sales exceeded 2023's performance. As a result, the entire motorcycle business recorded higher unit sales. Revenues for the motorcycle business went up thanks to the higher unit sales and higher prices per unit in Brazil and India. For operating income, while improved supply of premium segment models in emerging markets led to higher unit sales, soaring prices elevating labor costs, and higher SG&A expenses from provisions for product warranties and other payments all resulted in profits roughly on par with last year.
With recreational vehicles (all-terrain vehicles and ROVs), market demand as well as our shipments fell below 2023's numbers, resulting in lower revenues. With operating income, lower unit sales, a worsening model mix, higher marketing and promotional expenses accompanying the intensifying competition, impairment losses on fixed assets and other recorded expenses resulted in lower profits.
For the Smart Power Vehicles business, i.e., electric wheelchairs, electrically power-assisted bicycles (eBikes), and their drive units (e-Kits), unit sales of eBikes in Japan surpassed 2023's numbers. However, in Europe, the main market for Yamaha Motor e-Kits, sluggish demand has led to prolonged market inventory adjustments and this brought a decline in unit sales, which resulted in lower sales overall. In terms of operating income, the lower unit sales of e-Kits, increase in sales promotion expenses for complete Yamaha-brand models overseas, and impairment losses on fixed assets and other expenses recorded when conducting reviews of the business' structure led to the SPV business posting lower profits.
Marine Products Business
Revenues were 537.7 billion yen (a decrease of 9.8 billion yen or 1.8% compared with the previous fiscal year) and operating income was 87.8 billion yen (a decrease of 16.4 billion yen or 15.7%).
Regarding outboard motor demand, while the United States-our main market-lowered its policy interest rate in September 2024, the still-high level of interest rates in general as well as ongoing price raises led to decreased demand. Unit sales of new Yamaha outboard models were positive, but sales were lower for the outboard business overall. For personal watercraft, customers remained hesitant to purchase due to concern for those rising interest rates and demand decreased, but unit sales still went up thanks to improvements addressing 2023's lack of parts and supply chain disruptions, which had forced us to place limits on product supply. As a result, sales and profits fell for the Marine Products business overall. Also, Yamaha Motor's consolidated business results for the fiscal year include the performance recorded by German electric marine propulsion manufacturer Torqeedo GmbH during the period of April to December 2024.
Robotics Business
Revenues were 113.3 billion yen (an increase of 11.5 billion yen or 11.4% compared with the previous fiscal year) with an operating loss of 3.0 billion yen (down from an operating income of 0.7 billion yen).
In the surface mounter market, unit sales decreased in developed markets, but increased overall thanks to higher numbers recorded in China and other Asian markets. With industrial robots, the Company posted higher unit sales, but the model mix suffered. Also, higher demand for generative AI applications and advanced packaging yielded higher sales of Yamaha semiconductor back-end process manufacturing equipment. As a result of all these developments, the Robotics business as a whole took in higher sales. As for operating income, the decrease was due to higher manufacturing expenses, development costs, and other SG&A spending.
Financial Services Business
Revenues were 112.2 billion yen (an increase of 25.7 billion yen or 29.7% compared with the previous fiscal year) and operating income was 22.7 billion yen (an increase of 5.6 billion yen or 32.6%).
The increase in financial receivables pushed revenues up for the period. As for operating income, in addition to higher income from interest payments, the appraised losses derived from interest rate swaps last fiscal year were converted to appraisal gains this fiscal year. This upped profits for the period.
Other Products
Revenues were 97.6 billion yen (an increase of 3.9 billion yen or 4.1% compared with the previous fiscal year) with an operating loss of 11.5 billion yen (compared to an operating loss of 5.6 billion yen).
The higher revenues were due to higher demand for golf cars in North America that led to increased unit sales, while operating income fell due to the effect of inventory devaluations of models in the power products business and other factors.
Forecast of Consolidated Business Results for the Fiscal Year Ending December 31, 2025
We expect the environment surrounding the Yamaha Motor group in fiscal 2025 to remain uncertain due to the aforementioned situation in the Middle East and other geopolitical risks, but also due to the sluggish Chinese economy and the impacts various economic policies will have on the global economy, such as the additional tariffs being put in place by the new U.S. presidential administration, along with exchange rate fluctuations.
With this being the case, we expect emerging market motorcycle demand in the Land Mobility business to remain robust and for outboard motor demand in the Marine Products business to make a gradual recovery.
In terms of risks, we anticipate price hikes for aluminum and other raw materials as well as for labor and energy costs to continue going up. In response to these potential risks, we will work to reduce costs and improve productivity.
Furthermore, we will also be conducting structural reforms for the SPV and RV businesses in order to improve profitability, while with our core businesses, our efforts will be towards achieving sustainable growth by focusing on R&D, new product development, and upgrading our production equipment.
The forecast consolidated business results for FY2025 are as follows:
These forecast figures are based on the U.S. dollar trading at 145 yen during the fiscal year (an appreciation of 7 yen from FY2024) and the euro at 155 yen (an appreciation of 9 yen).
Basic Policy Concerning Profit Distribution and Dividends for the Current and Subsequent Fiscal Years
