Yamaha Summary of Business Results for the First Nine Months of the Fiscal Year Ending December 31, 2009

– November 4, 2009 – (Motor Sports Newswire) – Yamaha Motor Co., Ltd. (the “Company”) has released its consolidated business results for the first nine months of the fiscal year ending December 31, 2009 (fiscal 2009). Net sales for the nine months decreased 33.1 percent from the same period of the previous fiscal year, to 858.5 billion yen. This was mainly attributable to reduced sales, particularly in Europe and the United States, coupled with the stronger yen against the euro and U.S. dollar, amid the continued global recession. Other major factors include production cutbacks and adjustments to product shipments, both designed to curtail inventories. In terms of profits, the Company recorded an operating loss of 45.0 billion yen, representing a decrease in operating income of 109.1 billion yen from the same period of the previous fiscal year; and an ordinary loss of 43.9 billion yen, a decrease in ordinary income of 117.8 billion yen. Negative factors – including reduced sales, and decreased marginal profit arising from a series of production cutbacks – exceeded the positive effects of expense cuts, the Urgent Cost Reduction Program and the curtailment of capital expenditures, resulting in these profit losses.

Net loss amounted to 158.8 billion yen, a decrease in net income of 201.9 billion yen, due mainly to business structure improvement expenses.

On the foreign exchange front, the average exchange rate of the yen during the period under review appreciated by 11 yen from the same period of the previous fiscal year against the U.S. dollar, to 95 yen, and by 31 yen against the euro, to 130 yen.

Broken down by business segment, motorcycle sales fell 26.6 percent from the same period of the previous fiscal year, to 607.8 billion yen, due to reduced sales in Europe, the United States and Brazil, coupled with the negative impact of the stronger yen, although sales in Asia (excluding Japan) grew steadily.

Marine product sales declined 40.3 percent, to 118.0 billion yen, due mainly to reduced outboard motor sales in North America and Europe including Russia, as well as the negative impact of the stronger yen.

Power product sales dropped 55.0 percent, to 71.6 billion yen. This was mainly attributable to decreased sales of all-terrain vehicles in the United States, along with the negative impact of the stronger yen.

Sales in the “other products” segment fell 37.6 percent, to 61.1 billion yen, due mainly to sluggish sales of automobile engines and surface mounters, although sales of electro-hybrid bicycles rose substantially.

Due to the stronger yen – coupled with the continuing negative impact of production cutbacks that began in early 2009, designed to reduce market stocks (distributors’ stocks and Group inventories) – the Company registered an operating loss of 3.2 billion yen in the motorcycle segment, representing a decrease in operating income of 45.4 billion yen from the same period of the previous fiscal year; an operating loss of 15.9 billion yen in the marine product segment, a decrease of 27.0 billion yen; an operating loss of 23.6 billion yen in the power product segment, a decrease of 28.6 billion yen; and an operating loss of 2.2 billion yen in the “other products” segment, a decrease of 8.0 billion yen.

During the period under review, the number of consolidated subsidiaries decreased by five from December 31, 2008, to 108 on September 30, 2009, while the number of companies accounted for by the equity method remained the same, at 33.

The Company has not changed its forecast consolidated business results for the full fiscal year ending December 31, 2009 from the figures officially announced August 4, 2009 with the release of the “Consolidated Financial Results for the Second Quarter Ended June 30, 2009.” The forecast is 1,100 billion yen in net sales, down 31.4 percent from the previous fiscal year; 87 billion yen in operating loss, a decrease of 135.4 billion yen in operating income; 86 billion yen in ordinary loss, a decrease of 144.9 billion yen in ordinary income; and 182 billion yen in net loss, a decrease of 183.9 billion yen in net income.

The forecast figures are based on the assumption that the U.S. dollar will trade at 93 yen during the period (an appreciation of ten yen from the previous fiscal year), and the euro at 129 yen (an appreciation of 24 yen).

* Consolidated total expenses: Selling, general and administrative expenses + Cost of sales excluding raw material costs

**Effective from the fiscal year ending December 31, 2009, the Company’s quarterly consolidated financial statements are prepared in accordance with the Rules for Quarterly Financial Reporting. Therefore, the percentage figures used in comparing results for the first nine months of the current and previous periods are presented for reference purposes only.

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