Yamaha Motor Earnings Strong in First 3Qs — Net Sales Up 10.4%, Operating Income Surges 35.9%, Income Forecasts Raised

November 2, 2017

IWATA, November 2, 2017—Yamaha Motor Co., Ltd. (Tokyo: 7272) announces consolidated business results for the first nine months. Net sales for Yamaha Motor Co., Ltd.'s consolidated accounting period for the first nine months of the fiscal year ending December 31, 2017 were 1,250.7 billion yen, (an increase of 117.9 billion yen or 10.4% compared with the same period the previous fiscal year), and operating income was 120.8 billion yen (an increase of 31.9 billion yen or 35.9%).
In the emerging markets motorcycle business segment, net sales increased thanks to higher unit sales in the Philippines, Vietnam, and Thailand, and operating income increased thanks to the effects of product mix improvements and cost reductions such as promotion of the platform transition. In developed markets, all businesses apart from power products saw increased sales and income.
Ordinary income was 124.1 billion yen (an increase of 46.5 billion yen or 59.8% against the same period the previous fiscal year), and net income for the period attributable to parent company shareholders was 89.2 billion yen (an increase of 40.9 billion yen or 84.9%).
For the first nine months consolidated accounting period, the U.S. dollar traded at 112 yen (a depreciation of 3 yen from the same period the previous fiscal year), and the euro at 125 yen (a depreciation of 4 yen).

Results by Business Segment

Motorcycles:

Net sales of motorcycle products overall were 782.0 billion yen (an increase of 82.8 billion yen or 11.8% compared with the same period the previous fiscal year), and operating income was 54.5 billion yen (an increase of 25.8 billion yen or 90.3%).
Unit sales in emerging markets such as the Philippines, Vietnam, and Thailand increased, and despite decreasing in Indonesia due to the market slump there, unit sales and net sales of motorcycle products increased overall.
Operating income increased in emerging markets - principally the ASEAN region - thanks to the effects of product mix improvements and cost reductions such as promotion of the platform transition, and increased in developed markets as well thanks to the effects of yen depreciation, leading to increased income overall.

Marine:

Net sales in the marine business segment were 250.8 billion yen (an increase of 20.3 billion yen or 8.8% compared with the same period the previous fiscal year), and operating income was 48.7 billion yen (an increase of 2.7 billion yen or 5.9%).
Net sales increased thanks to healthy unit sales in North America, and model mix improvements continued thanks to increased sales of large outboard motors, leading to increased operating income.

Power Products:

Net sales for the entire power products segment were 106.5 billion yen (a decrease of 4.8 billion yen or 4.3% compared with the same period the previous fiscal year), and operating income was 1.3 billion yen (a decrease of 3.7 billion yen or 74.7%).
Sales and income decreased due to the impact of inventory adjustment in recreational off-highway vehicle (ROV) products.

Industrial Machinery & Robot Products:

Net sales for the entire industrial machinery and robots business segment were 49.5 billion yen (an increase of 15.3 billion yen or 44.6% compared with the same period in the previous fiscal year), and operating income was 11.5 billion yen (an increase of 5.9 billion yen or 106.0%).

Increases in sales and income were achieved thanks to a significant increase in both surface mounter and industrial robot unit sales.

Other Products:

Net sales of the other products business overall were 61.8 billion yen (an increase of 4.3 billion yen or 7.5%), and operating income was 4.9 billion yen (an increase of 1.2 billion yen or 30.9%).
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.

Forecast of Consolidated Business Results:

The various income figures are revised as follows regarding the anticipated consolidated business results for the fiscal year ending December 31, 2017.
There is no change to the net sales forecast from that announced with the second quarter business results on August 8, 2017. Income is anticipated to exceed the previous forecast and reach its highest level ever thanks to factors such as foreign exchange effects and profitability improvements in the emerging markets motorcycle business.

The exchange rates for the fourth quarter of the fiscal year are based on the U.S. dollar at 110 yen (no change from the previous forecast, and a depreciation of 1 yen compared with the previous fiscal year), and the euro at 130 yen (a depreciation of 15 yen from the previous forecast, and a depreciation of 12 yen compared with the previous fiscal year). The exchange rates for the entire fiscal year are based on the U.S. dollar at 111 yen (no change from the previous forecast, and a depreciation of 2 yen compared with the previous fiscal year), and the euro at 126 yen (a depreciation of 8 yen from the previous forecast, and a depreciation of 6 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 is aiming towards a payout ratio of 30% of net income attributable to parent company shareholders, and focusing on continuing to maintain and increase a stable financial platform while and increasing new growth investment and stock dividends. With the improvement over the previous forecasts in the new anticipated consolidated business results for the fiscal year ending December 31, 2017 announced today, and based on a target payout ratio (consolidated) of 30%, the forecast final dividend was revised to 43 yen per share. In combination with the interim dividend of 39 yen, the yearly dividend is planned to be 82 yen per share, representing an increase of 4 yen compared with the previous forecast and 22 yen compared with the previous fiscal year.