Yamaha Motor: Summary of Business Results for the Fiscal Year Ended December 31, 2013

February 12, 2014

Consolidated business results

IWATA, February 12, 2014 –Yamaha Motor Co., Ltd (Tokyo:7272) announced that net sales in the fiscal year ending December 31, 2013 were 1,410.5 billion yen, an increase of 202.8 billion yen compared with the previous fiscal year. Increased motorcycle sales in Indonesia and India, and increased outboard motor sales in North America, in addition to the effects of the depreciating yen, led to an increase in sales in all businesses.
Regarding operating income, the marine business showed improvements in sales and income, and emerging-market motorcycle businesses achieved cost reductions, which with the effects of the depreciating yen brought in higher income, giving an overall total of 55.1 billion yen (a 36.5 billion yen increase on the previous year). Ordinary income was 60.1 billion yen (a 32.8 billion yen increase) and net income for the fiscal year (with the addition of deferred tax assets from overseas subsidiaries as well) was 44.1 billion yen (a 33.6 billion yen increase). For the fiscal year, the U.S. dollar traded at 98 yen (a depreciation of 18 yen from the previous fiscal year), and the euro at 130 yen (a depreciation of 27 yen).

Results by business segment

Motorcycles

Net sales of motorcycles overall increased by 129.5 billion yen from the previous fiscal year, to 928.2 billion yen, and operating income amounted to 8.4 billion yen (an increase of 8.6 billion yen). Unit sales in developed markets increased due to the introduction of new models in Japan and North America etc., and sales in Europe improved in the second half, leading to an overall increase. On the other hand, regarding unit sales in emerging markets, while they increased in India (where scooter demand is expanding) and Indonesia (where demand is tending to recover), they decreased in Thailand and Vietnam (where the economic slowdown is continuing), leading to a slight decrease overall. As a result, overall global unit sales decreased slightly, but net sales increased due to model mix improvements and the effects of the depreciating yen. Regarding operating income, despite active expenditure on development and sales promotional costs in developed markets and the costs associated with structural reforms in Europe, cost reductions and the effects of the depreciating yen etc. led to increased income.

Marine

Net sales of marine products overall increased by 47.0 billion yen from the previous fiscal year to 243.4 billion yen, and operating income increased by 20.9 billion yen from the previous fiscal year to 31.8 billion yen. Within the outboard motor business, sales of large-capacity models in the U.S.A. increased due to the effect of introduction of new products, and sales also increased to emerging markets in Russia etc. Sales and income improvements also continued in the water vehicle and domestic boat businesses. Together with the effects of the depreciating yen, this led to higher sales and income overall.

Power Products

Net sales of power products overall increased by 23.1 billion yen from the previous fiscal year to 126.7 billion yen, and operating income amounted to 5.3 billion yen (an increase of 4.7 billion yen). In addition to the launch of the new recreational off-highway vehicle (ROV) models, increased sales of snowmobiles and golf cars, plus the effects of the depreciating yen etc., led to increased sales and income overall.

Industrial Machinery & Robot Products

Net sales of industrial machinery and robots overall increased by 1.4 billion yen from the previous fiscal year, to 32.3 billion yen, and operating income decreased by 0.8 billion yen from the previous fiscal year, to 3.1 billion yen. Sales of surface mounters decreased in the first half of the fiscal year due to a slowdown in equipment investment, but increased in the second half, leading to an annual increase over the previous fiscal year.

Other Products

Net sales of other products overall increased by 1.6 billion yen from the previous fiscal year, to 79.9 billion yen, and operating income increased by 3.1 billion yen from the previous fiscal year, to 6.7 billion yen. Sales of electrically power-assisted bicycles and industrial-use unmanned helicopters increased due to the effect of introduction of new products etc., and while sales of automobile engines decreased, the Other Products segment overall saw increased sales and income.

Forecast of business results for the fiscal year ending December 31, 2014

While the current business environment is underpinned by the depreciating yen compared to developed-market currencies, but there are concerns regarding the slow economic recovery in Europe and the economic slowdowns and currency depreciations in emerging markets. As the second year of our Medium-term Management Plan, in 2014 we will respond to such changes in the business environment by working on the reinforcement/review of our business strategies and bringing forward our targets while anticipating the economic conditions and demand in each market.
In the next fiscal year business results, growth in sales is forecast from the motorcycle, marine, and RV businesses through proactive new-product launches. In terms of profitability, increased profitability through increased sales and cost reductions etc. should overcome increases in research and development expenses and sales costs aimed at future growth, leading to a forecast overall increase in profitability.
These forecast figures are based on the U.S. dollar trading at 100 yen during the fiscal year (a depreciation of 2 yen from fiscal 2013), and the euro at 135 yen (a depreciation of 5 yen from fiscal 2013).