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Press release -

Yamaha Motor Marks Record Annual Profit in 2017 - All Business Sectors Strong -

Consolidated business results

IWATA, February 13, 2018 - Yamaha Motor Co., Ltd. (Tokyo: 7272) announces results for the current consolidated accounting year. Net sales were 1,670.1 billion yen (an increase of 167.3 billion yen or 11.1% compared with the previous fiscal year), with each segment reaching the highest level to date. Operating income was 149.8 billion yen (an increase of 41.2 billion yen or 37.9% against the same period the previous fiscal year), ordinary income was 154.8 billion yen (an increase of 52.8 billion yen or 51.7% against the same period the previous fiscal year), and net income for the period attributable to parent company shareholders was 101.6 billion yen (an increase of 38.5 billion yen or 60.9%). For the fiscal year, the U.S. dollar traded at 112 yen (a depreciation of 3 yen against the previous fiscal year), and the euro at 127 yen (a depreciation of 7 yen against the previous fiscal year).

Net sales increased thanks to the effects of yen depreciation and strong sales of motorcycles in the ASEAN region, outboard motors in the US and surface mounters and industrial robots.
Operating income has increased thanks to increases in net sales and sales of products in the higher price range, along with improvements in profitability such as cost reductions through manufacturing methods of theoretical-value-based production, and development methods for platform and global models in the motorcycle business, which prevented rising expenses.

Results by Business Segment

Motorcycles:
Net sales were 1,045.2 billion yen (an increase of 115.1 billion yen or 12.4% compared with the previous fiscal year), and operating income was 68.8 billion yen (an increase of 32.9 billion yen or 91.4%).
Unit sales increased in the Philippines, Thailand, Taiwan, Vietnam, etc., but decreased in developed markets and Indonesia, etc. Unit sales across the entire business were approx. 5.4 million units, the highest year on year increase achieved since 2011. As a result, net sales increased, and operating income increased substantially thanks to increased sales of products in the higher price range and the effects of cost reductions in emerging markets such as Brazil and the ASEAN region.
In the ASEAN region, we are continuing our product launches in order to demonstrate a strong presence in each market while maintaining increased profitability through platform models. In developed markets, we will create new demand by launching products that demonstrate the brand's distinctiveness and implementing marketing in the unique style of Yamaha.

Marine:
Net sales were 323.8 billion yen (an increase of 26.6 billion yen or 9.0% compared with the previous fiscal year), and operating income was 59.5 billion yen (an increase of 4.1 billion yen or 7.4%).
Outboard motor and water vehicle unit sales increased compared to the previous fiscal year. Boat production volume also increased thanks to acquisition of boat builders in Europe following on from the United States. As a result, net sales increased, and operating income also increased thanks to improvements in the model mix due to increased sales of large outboard motors in North America and Europe.
Yamaha Motor is developing a system supplier business model through initiatives such as the acquisition of boat peripheral equipment manufacturers in North America.

Power Products:
Net sales were 151.6 billion yen (a decrease of 0.7 billion yen or 0.5% compared to the previous fiscal year), with an operating loss of 1.5 billion yen (the previous fiscal year showed an operating income of 4.5 billion yen).
Although the inventory adjustment situation for recreational off-highway vehicles (ROV) has been completed; however, sales and income both decreased due to the ongoing impact.
We will continue to promote new product strategies in order to broaden the market.

Industrial Machinery & Robot Products:
Net sales were 67.6 billion yen (an increase of 20.7 billion yen or 44.2% compared with the previous fiscal year), and operating income was 15.6 billion yen (an increase of 8.1 billion yen or 107.0%).
Increases in sales and income were both achieved thanks to a new factory which started operation in March, enabling significant increases in both surface mounter and industrial robot unit sales.
Yamaha Motor surface mounters now feature a product lineup that covers from ultra-high-speed areas to larger-markets in the high-speed areas; and we will continue to offer even higher-efficiency solutions.

Other Products:
Net sales were 81.8 billion yen (an increase of 5.5 billion yen or 7.2% compared with the previous fiscal year), and operating income was 7.3 billion yen (an increase of 2.1 billion yen or 41.0%).
For electrically power assisted bicycles, unit sales in Japan increased, and exports of E-kits (drive units for electrically power assisted bicycles) to Europe grew significantly, leading to increased sales and income.
While we work towards increasing the numbers of customers in the senior citizen, parenting housewives, and student brackets, we will also continue to work on the development of new sports markets in order to expand our customer base further.

Forecast of Consolidated Business Results

Although we expect that the business environment for the next fiscal year will be uncertain, we will maintain stable profits while steadily progressing mid- to long-term efforts while assessing the trends of the economies and demands of each market. The forecast consolidated business results are as follows.

These forecast figures are based on the U.S. dollar trading at 105 yen during the fiscal year (an appreciation of 7 yen from the previous fiscal year), and the euro at 130 yen (a depreciation of 3 yen compared with the previous fiscal year).

Basic policy concerning profit distribution and dividends for the current and subsequent 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 towards 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.

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 49 yen per share is planned to be placed on the agenda of the 83rd Ordinary General Meeting of Shareholders, scheduled for March 23, 2018. With the interim dividend of 39 yen per share, this gives a total dividend for the year of 88 yen per share based on the above.
With regard to the dividend payment for the next fiscal year, a total of 90 yen (interim dividend of 45 yen and final dividend of 45 yen) is planned based on the forecast consolidated business results.

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Yamaha Motor (TOKYO:7272) is a world-leading producer of motorcycles, marine products, power products and robotics.

Yamaha Motor (TOKYO: 7272) is a world-leading enterprise manufacturing land-mobility such as motorcycles, all-terrain vehicles, and electrically power assisted bicycles, marine products such as boats and outboard motors, robotics products such as surface mounters and drones, as well as engagement in the finance business. The company's diverse businesses and wide variety of products are built around its proprietary technologies focused on powertrain, chassis and hull, electronic control, and manufacturing technologies. Yamaha Motor operates global development, production and sales networks through 140 subsidiaries and equity-method affiliates in 30 countries and regions, working to realize our Corporate Mission of being s "Kando* Creating Company."
About 90% of consolidated net sales are generated in more than 180 countries and regions outside of Japan.
Please visit http://global.yamaha-motor.com.

*This is a dedicated website providing Yamaha Motor PR materials for viewing by media journalists.
We request that you refrain from using the materials and photographs on this website for purposes other than media reporting.