Increasing Corporate Value through Sustainable Growth

Annual Report 2011
Year ended December 31, 2011

Yamaha Motor Co., Ltd. is a multinational enterprise with 140 consolidated subsidiaries and equity-method afﬁliates in 30 countries, and about
90% of our consolidated net sales are derived from overseas markets. We operate global development, production and sales networks, andour products are sold in more than 200 countries and regions.
We have successfully diversiﬁed our business by capitalizing on our world-leading small engine, ﬁberglass-reinforced plastics andelectronic control technologies. Today, our proprietary technologies extend to a wide variety of products, including motorcycles, marine
products, power products and surface mounters.
We will move forward with restructuring and the transformation of our management base for continuous growth, to evolve Yamaha
Motor into an excellent engineering, manufacturing and marketing enterprise, with a prominent presence in the global market.

Corporate Mission
Kando* Creating Company
Offering new excitement and a more fulﬁlling life for people all over the world
Yamaha Motor strives to realize peoples’ dreams with ingenuity and passion, and to always be a company people look to for the next
exciting product or concept that provides exceptional value and deep satisfaction.
*Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that we experience when we encounter something of exceptional value.

Management Principles
1. Creating value that surpasses customer expectations
To continue to produce value that moves people, we must remain keenly aware of customer’s evolving needs.
We must strive to ﬁnd success by always surpassing customer expectations with safe, high-quality products and services.

2. Establishing a corporate environment that fosters self-esteem
We must build a corporate culture that encourages enterprise and enhances corporate vitality. The focus will be on nurturing thecreativity and ability of our employees, with an equitable system of evaluation and rewards.

3. Fulﬁlling social responsibilities globally
As a good corporate citizen, we act from a worldwide perspective and in accordance with global standards. We must conduct our corporate
activities with concern for the environment and communities and fulﬁll our corporate social responsibility with honesty and sincerity.

Action Guidelines
Acting with Speed
Meeting change with swift and informed action

Spirit of Challenge
Courage to set higher goals without fear of failure

Persistence
Working with tenacity to achieve desired results, and then evaluating them

Notice regarding forward-looking statements
Statements in this annual report, except for historical facts, areforward-looking statements about the future performance of theCompany and its group companies, which are based on management’s
assumptions and beliefs in light of the information currently available,
and involve risks and uncertainties. Please be advised that actual results
may differ signiﬁcantly from those discussed in the forward-looking
statements.
Potential risks and uncertainties include, but are not limited to,
general economic conditions in Yamaha Motor’s major markets, changing
consumer preferences and currency exchange rate ﬂuctuations.

CONTENTS
Yamaha Motor pursues the challenge of new creations

2

Operating Performance
Financial Highlights
Fiscal Year in Review

48

Message from the Management
To Our Stakeholders
Interview with the President

10
12

SPECIAL FEATURES
Enhancing Presence in Emerging Markets
through Engineering, Manufacturingand Marketing

26“Feel the Future in the Wind” from
Yamaha Motor30

Topics32

Overview of Operations
Motorcycles
Marine Products
Power Products
Industrial Machinery and Robots
Other ProductsSports Activities

36
42
44
46
47
48

Corporate Information
Corporate GovernanceDirectors, Corporate Auditors and Executive Officers
Corporate Governance and Outside Directors
Corporate Social Responsibility
Organization
Risk Factors
History of the Yamaha Motor Group
Principal Subsidiaries and Affiliates

52
62
65
66
70
71
74
76

Financial Section
Management Discussion and Analysis of Operations
Five-Year Summary
Quarterly Financial Information
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

80
91
91
92
94
94
95
98
99

Investor Information

133

Yamaha Motor pursues
the challenge of new creations
Since our founding, Yamaha Motor has constantly looked ahead with a spirit ofchallenge, striving to create new value for the next generation.
We will continue on this path in the future, as a Kando Creating Company
with excellent engineering, manufacturing and marketing, and a prominent
presence in the global market.

1955

1960

1965

1970

1975

1980

1960
Released ﬁrst FRP boat, the CAT-21

1955

1960

Released ﬁrst motorcycle, the YA1Released ﬁrst outboard motor, the P-7

1967

1973

1974

Commenced mass production of the TOYOTA 2000GT

Released ﬁrst portable generator, the ET1250

Commenced manufacturing and sales of FRP pools

1976
Released ﬁrst industrial robot, an “arc welding robot”

2

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

1976

1977

Released ﬁrst marine diesel engine, theMD35

Released the Passol

Net sales¥1,276.2 billion

1985

1990

1995

2000

2005

2011

1978
Released ﬁrst snow thrower, the YT665

1979
1986

Released ﬁrst ATV (all-terrain vehicle) in the
United States, the YT125

Released ﬁrst personal watercraft, the MJ-500T

1987

1993

1995

Limited release of ﬁrst industrial-use unmanned
helicopter, the R-50

Regional release of the PAS,an electric-hybrid bicycle

Released the JW-1 electric power unit for wheelchairs

2002

2007

Regional release of the
Passol electric commuter

Released world’s
most powerfuloutboard motor, the350-horsepower
F350

2002
Released ﬁrst 4-stroke snowmobile, the RX-1

Yamaha Motor Co., Ltd. ⎜ Annual Report 20113

Operating Performance

Financial Highlights
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31

Operating Performance

Net sales declined 1.4% from 2010, owing to yen appreciation and the impact on production from the flooding in
Thailand.

POINT

In terms of profit, cost reductions from structural reforms and a reversal of accrual for product liability absorbed

Financial Section

Corporate Information

Overview of Operations

Special Features

Message from the Management

the negative impact on revenue resulting from yen appreciation, the flooding in Thailand and the Great East
Japan Earthquake. As a result, operating income rose 4.1% from the previous year, and net income grew 47.3%.

Millions of yen

For the year:
Net sales
Gross profit
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Free cash flows
Net cash provided by (used in) financing activities
Capital expenditures
Depreciation expenses
At the year end:
Total assets
Net assets
Interest-bearing debt
Ratios:Operating income margin (%)
Return on equity (%)
Equity ratio (%)
Price/earnings ratio (times)
Debt/equity ratio (%)

Thousands of
U.S. dollars% change

2011/2010

2007

2008

2009

2010

2011

2011

¥1,756,707
476,090
126,998
140,338
71,222
122,730(105,807)
16,923
11,16684,78954,578¥1,603,881
377,105
48,38258,872
1,851(6,446)(99,543)(105,989)
163,179
94,391
59,606¥1,153,642
202,292(62,580)(68,340)(216,148)
74,096(45,285)
28,810(32,022)46,03553,701¥ 1,294,131
295,565
51,30866,142
18,300104,531(37,632)
66,8995,296
33,93936,594¥ 1,276,159
276,046
53,40563,49526,96033,328(46,517)(13,189)(51,927)45,04933,578$ 16,415,732
3,550,888
686,969
816,761
346,797428,711(598,366)(169,655)(667,957)
579,483
431,927(1.4)%
(6.6)
4.1
(4.0)
47.3
(68.1)
23.6
—
—
32.7
(8.2)

¥1,258,430
569,221229,755¥1,163,173
428,483
349,203¥ 987,077
249,266
399,942¥ 978,343
310,809322,443¥ 900,420
309,914274,721$ 11,582,454
3,986,545
3,533,844(8.0)%(0.3)(14.8)

7.2
14.2
42.1
10.9
43.3

3.0
0.4
33.9
144.0
88.5

(5.4)
(71.2)
21.5
—
188.3

4.0
7.5
28.0
23.8
117.6

4.2
9.7
31.2
12.6
97.8

Yen

Per share amounts:
Net income — basic
Net income — diluted
Net assets
Cash dividends¥

248.81248.73
1,851.81
41.00

¥

6.47
6.47
1,377.81
25.50¥ (755.92)—
743.04
0.00

U.S. dollars

¥

55.50
55.50
785.61
0.00

¥

77.23
77.23
804.26
15.50

¥

2,705
774,516¥932
266,899¥

1,166
333,300¥

1,323
461,855¥974
340,018

Persons

Other data (at the year end):
Number of shareholders
Number of employees

26,94846,85035,15649,76130,01349,994

0.99
0.99
10.35
0.20

Thousands of U.S.
dollars, except per
share data

Millions of yen, except
per share data

Share performance (at the year end):
Price per share (yen and U.S. dollars)Market capitalization$% change

$

39.2%
39.2
2.4
—

% change

12.53
4,373,784(26.4)%(26.4)% change

31,61552,18432,25954,6772.0%
4.8

Notes • U.S. dollar amounts are translated solely for convenience at ¥77.74 = U.S.$1.00, the rate of exchange prevailing at December 31, 2011. (See Note 6 in the Notes to Consolidated Financial Statements.)• References to ﬁscal years are to 12-month periods commencing on January 1 and ending on December 31.
• With regard to amounts stated in million yen units, amounts less than ¥1 million are truncated. For amounts stated in 0.1 billion or billion yen units, amounts less than ¥0.1 billion or ¥1 billion,
respectively, are rounded off.

4

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Operating income and operating income margin

Net income and net income margin(Billion ¥)(Billion ¥)(Billion ¥)

2,000

150

（%）

9

6.0

127.0
7.2

1,757
1,604
1,500

71.2

100
1,294 1,276
3.0

60

3

30

4.1

4.0

51.3

2.1

53.4

48.4

1.4

2.0

27.0

18.3
500

0

0

1.9

0

0.1

-5.4
0

-62.6

-80
2007

2008

2009

2010

2007

2011

2008

2009

Operating income

-10
2010

-250

2011

2007

Operating income margin (%)

Total assets and return on assets(¥)(Billion ¥)

300

2,000

2008

2009

Net income

-20.0

2010

2011

Net income margin (%)
Special Features

Net income per share

0

-18.7
-216.1

Net assets and equity ratio（%）(Billion ¥)

9

600

6

450

3

300

Message from the Management

50

6
4.2

4.0

1,154
1,000

（%）

90

Operating Performance

Net sales

（%）

60

569

249
1,500
1,258
100

77

1,163
987

1,000

0

1.9

2008

2009

311
28.0

249
21.5
0

150

-25

0

31.2
310 30

15

0
2010

2011

2007

2008

2009

Total assets

2010

0
2007

2011

Return on assets (%)

2008

Net assets

2009

2010

Equity ratio (%)

Market capitalization

Number of employees(¥)(Billion ¥)(Persons)

41.00

800

60,000775

46,85030

600

49,761 49,994

52,184

Financial Section

Cash dividends per share

40

2011

54,67745,000

25.50
462
20

400

340

333

15.50

30,000

267
10

200

0
2007

2008

0

0

2009

2010

15,000

0
2011

0
2007

2008

2009

2010

2011

2007

2008

2009

2010

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Corporate Information

2007

45

-20.1

-756

-800

2.9
900

0.2

500

428
33.9

978

56
6

42.1

Overview of Operations

6.0
200

2011

5

Operating Performance

Financial Highlights

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Message from the Management

Operating Performance

Motorcycle unit sales by market
Thousand units

Thousand units% change

2010

2011

2011/2010

Japan

99

101

2.4%

North America

53

64

20.8

Europe227

185(18.5)

Asia Note

6,084

6,059

(0.4)

497

573

15.2

6,960

6,982

0.3%

Other areas
Total

Special Features

Note Excluding Japan

Sales by market
Motorcycle business

Marine products business% change

2010

2011

¥ 37,752¥ 37,047

North America

34,062Europe(1.9)%¥ 22,085¥ 23,483

35,602

4.5

67,672

112,782

91,150(19.2)

Asia Note609,254594,147

Other areas

120,358

Total¥914,211

6.3%¥ 10,880¥ 13,261

21.9 %

74,972

10.8

53,84349,298(8.4)

34,25036,031

5.2

19,23919,866

3.3

(2.5)

9,708

11,583

19.3

6,288

5,777

(8.1)

129,607

7.7

33,42432,858(1.7)

12,717

12,053(5.2)¥887,556(2.9)%¥167,141¥178,929

7.1%¥102,968¥100,257(2.6)%% change

2010

2011

¥13,958¥15,779

13.0 %

North America

1,058

1,458

Europe2,448

Asia Note
Other areas
Total

2011/2010

Other products businessMillions of yen% change

2010

2011

¥ 57,701¥ 56,931(1.3)%

37.7

38

27

(29.2)

3,060

25.0

1,650

637

(61.4)

16,983

13,819(18.6)

2,645

2,893

9.4

309

208

(32.5)

13,014

14,60012.2¥34,758¥34,326(1.2)%¥75,051¥75,0890.1%

Note Excluding Japan6% change

2011

Millions of yen

2011/2010

Millions of yen

2010

Industrial machinery and robots businessJapan

Power products business% change

2011

Japan

2011/2010

Millions of yen

2010

Financial Section

Corporate Information

Overview of Operations

Millions of yen

Yamaha Motor Co., Ltd. ⎜ Annual Report 20112011/20102011/2010

Motorcycle unit sales
Operating PerformanceYears ended December 31

Asia

Japan

(Thousand units)(Thousand units)

7,500

200

4,717
4,500

163

160

Message from the Management

6,084 6,059

6,000
4,993

122

120

3,770

3,000

80

1,500

40

99

101

2010

2011

Special Features

0

108

0
2007

2008

2009

2010

2007

2011

2008

2009

North America
Overview of Operations(Thousand units)

250
197

200

167
150

53

50

Corporate Information

92

100

64

0
2007

2010

2011

Europe(Thousand units)(Thousand units)

600

573

500

497

493
480

2009

Financial Section

Other areas

2008

400

457
372

360

410
366

300

275
227

240

200

120

100

185

0

0
2007

2008

2009

2010

2011

2007

2008

2009

2010

2011

Yamaha Motor Co., Ltd. ⎜ Annual Report 20117

Operating Performance

Fiscal Year in Review
Year ended December 31, 2011

Major products:

Motorcycles% of net sales

Sales by market (Billion ¥)Operating Performance

Motorcycles, knockdown parts

37 (4.2%)
36 (4.0%)130 (14.6%)

for overseas production and

91 (10.3%)

intermediate parts for products

Message from the Management

69.5%

594 (66.9%)

Japan

Major products:

Marine Products

EuropeNorth America

YZF-R1% of net sales

Other areas
Asia (excluding Japan)

Sales by market (Billion ¥)Outboard motors, personal
watercraft, boats, FRP pools,

23 (13.1%)
33 (18.4%)

fishing boats, utility boats anddiesel engines

12 (6.5%)

14.0%

Special Features

36 (20.1%)

Japan

SR310
Major products:

Power Products

EuropeNorth America% of net sales

Other areas
Asia (excluding Japan)

Sales by market (Billion ¥)All-terrain vehicles, side-by-

Overview of Operations

75 (41.9%)

12 (12.0%)

side vehicles, snowmobiles,

13 (13.2%)

6 (5.8%)golf cars, generators, smallsized snow throwers and7.9%
20 (19.8%)

multi-purpose engines

49 (49.2%)

Japan
Corporate Information

YFZ450R
Major products:
Surface mounters, industrial

Industrial Machinery and Robots

EuropeNorth America% of net sales

Other areas
Asia (excluding Japan)

Sales by market (Billion ¥)0 (0.6%)

robots and electrically powered
wheelchairs

2.7%

Financial Section

14 (40.3%)

16 (46.0%)

3 (8.9%)Japan

North America

YS24
Major products:

Other Products

1 (4.2%)Europe% of net sales

Other areas
Asia (excluding Japan)

Sales by market (Billion ¥)Automobile engines, automobile
components, electrically power
assisted bicycles and industrial-use
unmanned helicopters

15 (19.5%)5.9%
3 (3.9%)1 (0.8%)0 (0.0%)57 (75.8%)

Japan

PAS

8

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

EuropeNorth America

Other areas
Asia (excluding Japan)

Operating results
（%）

1,200

9.0

1,056

1,029
6.0

800

914

817

888
5.3

3.3

400
63

3.1
49

34

0

28

-4

Sales
Operating income(loss)

3.0

Operating income
margin (%)

0

Figures for the fiscal year
ended December 31, 2009and previous fiscal years
are as per the previous
segment classifications.

-0.5
-400

-3.0
2007

2008

2009

2010

2011

Operating results（%）(Billion ¥)

290

300

12.0
9.7 239

200

8.0

179

167

150
100

4.0

4.0

2.5

0.4
1

7

2010

2011

6

0

-24
-16.2

-100
2007

2008

2009

0

Sales
Operating income(loss)-20.0

Operating income
margin (%)

Operating results
12.0

266
8.4 213

200

7.5
103

101

100

100

8.0
4.0

1.7
22
0

4

-34

7

-11
-10.9

-33.6

-100

2008

2009

-40.0
2010

2011

Sales
Operating income(loss)
Operating income
margin (%)

Business review:
The industrial machinery and robots business experienced a decline in sales of surface
mounters, as concerns of a slowdown in the European and North American economies led tocurtailed demand for capital investment in China from the third quarter.
As a result, fiscal 2011 net sales declined ¥0.4 billion, or 1.2%, to ¥34.3 billion, witha ¥0.7 billion, or 9.9%, decrease in operating income, to ¥6.3 billion.

Operating results(Billion ¥)

40
30
20

Surface mounters, industrial
robots and wheelchairs, whichwere previously included in the
Others segment, are being
separately reported as theIndustrial Machinery andRobots segment from fiscal
2011. Results for fiscal 2010
have been reclassified to reflect
this change.

18.2

35

20

34
15
10

7

6

2010

2011

0

5

Sales
Operating income

0

Operating income
margin (%)

Operating results(Billion ¥)

（%）

200

16.0

150
100
50
0
2007

2008

2009

8.4
6.7

8.0

75

75

Reference Information
Page 46
Business review:
Sales of automobile engines declined from the impact of the earthquake, but sales ofelectrically power assisted bicycles grew on increased product competitiveness.
As a result, fiscal 2011 net sales were roughly flat with the previous fiscal year,
growing 0.1%, to ¥75.1 billion, while operating income declined ¥1.3 billion, or 20.6%, to¥5.0 billion.

12.0
Figures for fiscal 2009 andprevious years are notcomparable because of
segment reclassifications,and are therefore not shown.

Financial Section

10

（%）

20.0

Reference Information
Pages 44 to 45

4.0
6

5

2010

2011

0

Sales
Operating income
Operating income
margin (%)

Reference Information
Page 47

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Corporate Information

2007

0

Overview of Operations

300

Business review:
Although unit sales of ATVs declined in North America from a continued decrease in demand,
unit sales of generators rose.
As a result, fiscal 2011 net sales declined ¥2.7 billion, or 2.6%, to ¥100.3 billion,
while operating income improved by ¥18.7 billion, to a ¥7.5 billion operating profit,
compared with the previous fiscal year’s ¥11.3 billion operating loss.

（%）(Billion ¥)Special Features

28

Business review:
The outboard motor business saw business results in developed markets recover on an
increase in unit sales, as demand bottomed out in North America, and on demand forearthquake recovery efforts in Japan. The Russian, Central and South American, and Asianmarkets remained strong as well.
As a result, net sales in fiscal 2011 rose ¥11.8 billion, or 7.1%, to ¥178.9 billion, andoperating income grew ¥6.3 billion, or 846.1%, to ¥7.1
billion.
Reference Information
Pages 42 to 43

Message from the Management

6.0

Business review:
In developed markets, unit sales for the ﬁscal year ended December 31, 2011 (“ﬁscal 2011”) rose
in Japan and North America, but net sales declined as a result of the yen’s appreciation. In the
ASEAN market, sales grew in line with increased unit sales in Vietnam and India, but both unit sales
and net sales declined in Indonesia and Thailand because of production disruptions caused by theﬂooding in Thailand.
As a result, net sales for ﬁscal 2011 declined ¥26.7
billion, or 2.9%, from ﬁscal 2010, to ¥887.6 billion, and operating
Reference Information
income declined ¥21.0 billion, or 43.2%, to ¥27.6 billion.
Pages 36 to 41

Operating Performance(Billion ¥)9

Operating Performance

Hiroyuki Yanagi
Message from the Management

President, Chief Executive Officer
and Representative Director

Takaaki Kimura

Financial Section

Corporate Information

Overview of Operations

Special Features

Senior Managing Executive Officer
and Representative Director

10

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

To Our Stakeholders
Moving forward with structural reforms and management foundation reform
Operating Performance

to strive for continuous growth, the Yamaha Motor group is a “Kando*
Creating Company” and an excellent engineering, manufacturing andmarketing enterprise with a prominent presence in the global market.

Message from the Management

Consolidated results for the fiscal year ended December 31, 2011 (fiscal 2011) showed profit growth on lower sales, with
net sales of ¥1,276.2 billion, operating income of ¥53.4 billion and net income of ¥27.0 billion. These results illustrate that
we were able to post a solid recovery despite the negative effects of the European economic crisis, an extremely strong yen,
the Great East Japan Earthquake and flooding in Thailand. In addition to increased sales of motorcycles and marine
products in emerging markets, these efforts also demonstrate the success of our acceleration in laying a foundation for a
V-shaped recovery in results and stabilization of a profitable structure, by focusing on and jointly addressing a number ofSpecial Features

issues, and using our comprehensive group strength for structural reforms and management foundation reform, with theaim of management reorganization.
As an expression of thanks to our stakeholders for their support, and based on the judgment that progress in structuralreforms made during the year is leading to improved earnings and a stronger financial position, we are pleased to announce

Overview of Operations

that we are reinstating the dividend in the amount of ¥15.5 per share.
The fiscal year ending December 31, 2012 is the final year under our medium-term management plan. Along withmanaging the Company in an operating environment in which the yen’s extreme appreciation is expected to continue, we
are formulating the next medium-term management plan with a view toward expanding our global business scale, building abalanced financial structure, and augmenting our corporate strength through functional innovation and globalization. ThroughCorporate Information

further structural reforms and by accelerating the investment of management resources for future growth, we have made afirm decision to move from a management phase of “a V-shaped recovery in results and stabilization of a profitable structure”
to “increasing corporate value through sustainable growth.”
By approaching our challenges looking forward, outward and upward as a group, the Yamaha Motor group ismaking every effort to meet the expectations of all of our stakeholders. We would like to sincerely thank you for yourFinancial Section

guidance and support.

April 2012

Hiroyuki Yanagi

Takaaki Kimura

President, Chief Executive Officer
and Representative Director

Senior Managing Executive Officer
and Representative Director*Kando is a Japanese word for the simultaneous
feelings of deep satisfaction and intense
excitement that we experience when we
encounter something of exceptional value.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201111

INTERVIEW WITH THE PRESIDENT

12

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Striving to increase corporate value by expanding ourbusiness scale, improving our financial strength andaugmenting our corporate strength as a global engineering,
manufacturing and marketing enterprise

The following is an interview with President Hiroyuki Yanagi on the following topics:
Fiscal 2011 Results

Overview of operating environment and business results
Progress in Structural Reforms

Progress in structural reforms in fiscal 2011
Main business activities in fiscal 2011
Activities in new growth categories
Next Medium-Term Management Plan

Position in fiscal 2012, and issues to be carried over to the next medium-term
management plan
“Looking forward, outward and upward”
Measures to expand business scale
Management issues for improving financial strength and augmenting corporate strength
Other measures pertaining to management issues in fiscal 2012
Financial measures to address the yen’s prolonged appreciation
Measures to strengthen the Company in terms of human resource development
Countermeasures to address risks from earthquakes, flooding and other natural
disasters
Aspirations for “increasing corporate value through sustainable growth”

Yamaha Motor Co., Ltd. ⎜ Annual Report 201113

INTERVIEW WITH THE PRESIDENT

Message from the Management

Operating Performance

Fiscal 2011 Results

Q1

Business results recovered, supported by increased sales of

Please give us an overview of the

progress in structural reforms.

operating environment andOverall, the global economy presented a difficult operating environment for Yamaha Motor’sbusiness results for fiscal 2011.

developed market business in 2011. Although the United States showed signs of a recovery in the

motorcycles and outboard motors in emerging markets, andsecond half of 2011, the Greek debt crisis had a major negative impact on the overall real
economy in Europe; and as Japan was rebuilding from the Great East Japan Earthquake, theeconomy was also adversely affected by further appreciation of the yen.

Special Features

In our emerging market business, however, although the damage from the flooding in
Thailand had a negative effect in Thailand and Indonesia, demand for motorcycles and outboard
motors continued to grow in markets such as Vietnam, India, and Central and South America. Thisdevelopment absorbed the negative impact of the yen’s appreciation, higher prices for raw

Overview of Operations

materials and the earthquake, and, as a result, the Yamaha Motor group’s consolidated net sales
in 2011 totaled ¥1,276.2 billion, for a 1.4% decline from 2010.
In terms of profit, the positive effect of sales growth and cost reductions from structuralreforms more than offset the negative impact from the stronger yen and higher material prices,

Corporate Information

resulting in operating income of ¥53.4 billion, for a 4.1% increase from 2010, ordinary income of¥63.5 billion, a 4.0% decline, and a 47.3% increase in net income, to ¥27.0 billion.

point, to 1.0, and the equity ratio rose 3.2 percentage points, to 31.2%. With the aim ofEquity ratio (%)
Debt/equity ratio (Times)

moving from a V-shaped recovery in results to the stabilization of a profitable structure,

31.2

the medium-term management plan sets targets of an equity ratio of 30% and debt/(Target: 30)（%）

Financial Section

Looking at our financial position, our debt/equity ratio improved by 0.2 percentage

Fiscal 2012 targets achieved one year ahead of schedule

30（Times）

1.9

2.0

28.0

equity ratio of 1.0, and we were able to achieve these targets one year ahead of our originalschedule. Based on this performance, we have determined that our financial position

25

1.5
1.2
21.5

1.0

has been strengthened, and we have restored the dividend in the amount of ¥15.5 pershare.

(Target: 1.0)

20

1.0

At the same time, with the continued appreciation of the yen during 2011
resulting in actual exchange rates of ¥80/U.S. dollar and ¥111/euro, the operating

0

0
2009

2010

income margin was held to 4.2%, falling short of our earnings target of an operating

2011

income margin of 5%. As we transition to our next medium-term management plan,
we recognize that this extremely strong yen situation appears set to continue, and that addressing
this is an important issue for our businesses. In 2012, therefore, we will improve our financial
position by strengthening our market competitiveness in emerging markets to expand ourbusiness scale, and carrying out further structural reforms in developed markets.

14

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Progress in Restructuring

Please tell us about the progress

reorganization of the domestic manufacturing layout.
The medium-term management plan outlines a management shift from being “market sizedependent” to “break-even point” operations. To achieve this, we are consolidating our manufacturinglayout in Japan from 12 factories/25 units in 2009 to seven factories/14 units by 2014, with thefiscal 2011.

aim of restructuring our developed market operations to be profitable even with domestic
manufacturing of 200 thousand motorcycles, 230 thousand outboard motors and 100 thousand

Message from the Management

made in structural reforms during

Operating Performance

Q2

Further cost reductions are being pursued through measures including the

ATVs. During 2011, we completed the integration of motorcycle engine and body assembly, andtransferred production of the two main ATV models to the United States, thereby consolidating theWith a focus on PRO-10 (cost reduction) activities, we have reviewed the scope of potential

Special Features

domestic manufacturing layout to 10 factories/18 units.

cost reductions and raised our target through 2012 to ¥75 billion from ¥60 billion, and as of 2011
our achievement of this target reached 86%.

Consolidating to 10 factories/18 units
Targets for fiscal 2014: 7 factories/14 units

As a step toward globalizing our engineering, manufacturing and marketing functions, theIndia Procurement Center was established in India in January 2012. With integrated procurement
centers in four regions—Japan, ASEAN, China and India—and maintaining an integrated parts

Overview of Operations

Progress in structural reforms

procurement function based on technology, procurement, manufacturing and working with vendors,

Cost reduction target: 86% achievedthat is competitive in markets around the world.

Corporate Information

Raising target through 2012 to ¥75 billion(Having already achieved 86% of target as of2011)

we have created a global parts supply structure for engineering, manufacturing and marketing

Financial Section

Yamaha Motor Co., Ltd. ⎜ Annual Report 201115

Operating Performance

INTERVIEW WITH THE PRESIDENT

Q3
What were Yamaha Motor’s main
business activities in fiscal 2011?

Against a backdrop of solid demand in emerging markets,
we expanded our business on a global scale.
Our motorcycle unit sales in developed markets declined 7.3% in 2011, to 370 thousand units,
owing to a decline in Europe as a result of the economic crisis, and despite a recovery in the

Message from the Management

United States following the previous year’s correction of market inventory levels and growth inJapan on earthquake reconstruction demand. The outboard motor business saw the decline indemand in the United States bottom out; and in Japan, reconstruction demand following theearthquake led to increased demand for fishing and utility boats, generators and electrically power
assisted bicycles.
In emerging markets, our motorcycle unit sales rose 0.8%, to 6.61 million units. Although
Special Features

production in Indonesia and Thailand declined from the effects of the flooding in Thailand, unit
sales grew in Vietnam, India, and Central and South America. In India, the Yamaha brand gained
popularity, particularly in the deluxe segment, and unit sales grew significantly, to 340 thousand
units delivered domestically and 170 thousand units exported. Sales at the outboard motor

Overview of Operations

business grew on robust demand in Asia, Russia, and Central and South America.
As a result, despite the adverse operating environment caused by the European economiccrisis and the flooding in Thailand, the Yamaha Motor group’s total motorcycle unit sales reacheda record 6.98 million units, and total unit sales including marine products and power products
grew slightly, by 0.8%, to 7.42 million units. I believe this expansion of the global scale of our
Corporate Information

business, despite a difficult operating environment, represents solid progress on the issue ofstructural reform under the medium-term management plan.

Global volume (Yamaha wholesale business)

Financial Section

Emerging markets
Developed markets(Million units)

10
8.7
8

7.4

7.4

2010

2011

6
4
2
0

16

Yamaha Motor Co., Ltd. ⎜ Annual Report 20112012
Forecast

Next MTP
TargetOperating Performance

Please tell us about Yamaha

marketing are showing steady growth.
The Yamaha Motor group has identified the three facets of “creating fulfilling lifestyles,” “creating
enjoyment in personal mobility” and “creating innovative technologies that harmonize with people,

Special Features

Motor’s activities in new growth

Our businesses that anticipate the future of engineering, manufacturing andthe Earth and society” in our engineering, manufacturing and marketing as a vision for futurecategories in fiscal 2011.

Message from the Management

Q4

growth from 2010 to 2020—and we are accelerating our development and investment toward
the achievement of this scenario.
During 2011 we worked aggressively to expand our businesses in new growth categories.

United States to strengthen our marketing of surface mounters. The generator businessestablished an integrated production layout for generators and multipurpose engines in China, andgoing forward we will enter the Indonesian market utilizing our motorcycle sales network.
I would especially like to mention the Smart Power* business, which is “creating enjoyment
in personal mobility.” Domestic unit sales of completed PAS Electrically Power Assisted Bicycles
grew by double digits in 2011, to 110 thousand units, and total unit sales of the EC-03 ElectricCommuter Vehicle, released in September 2010, reached 2,000 units in December 2011. We also

Corporate Information*Smart Power: New powersources, primarily for electricvehicles, designed to create a
new paradigm of mobility

Overview of Operations

In the industrial machinery and robot business, we established sales companies in Europe and theintend to enter the Australian pest control market with our industrial-use unmanned helicopters.
These are some of the ways in which we continue to expand in a variety of new growth categories
Financial Section

related to control electronic technologies and electric power drives.

For more information
please refer to page 32

Yamaha Motor Co., Ltd. ⎜ Annual Report 201117

INTERVIEW WITH THE PRESIDENT

Message from the Management

Operating Performance

Next Medium-Term Management Plan

Q5

We will work to expand our business scale, improve our financial

Where are you positioned in fiscal

During 2012 we plan to aggressively introduce new motorcycle models and increase sales of2012, and what issues will beoutboard motors and other marine products in emerging markets, and we are forecasting a 9.7%

carried over to the next medium-increase in net sales from 2011, to ¥1,400 billion. In terms of profit, however, in addition tostrength and augment our corporate strength.

increased research and development expenses for future growth, we expect continued impact

term management plan?

from the strong yen, and are forecasting a 15.7% decline in operating income, to ¥45 billion.
Since recording a large loss in 2009, we are at a stage of moving from a V-shaped recovery

Special Featuresin results to the stabilization of a profitable structure under the current medium-term management
plan. We have made steady a progress in structural reforms to build a sound management baseand have successfully returned to profitability on a consolidated basis and have restored thedividend. We have also achieved the financial targets of an equity ratio of 30% and debt/equity

Overview of Operations

ratio of 1.0 one year ahead of our original schedule. That said, with the yen remaining extremely
strong, we have not been able to achieve the target of an operating income margin of 5%, and wewill carry this over as an issue in the next medium-term management plan.
Under the next medium-term management plan, which will cover the three-year period from2013 to 2015, we will aim to “increase corporate value through sustainable growth.” By increasing
Corporate Information

new model launches in 2014 by 50% compared with 2011, under the next medium-term
management plan we will address the issue of moving forward in our corporate management byworking to expand our business scale to “net sales of ¥2 trillion”; improve our financial strength
through management that balances investments, earnings and returns to shareholders; and further
augment our corporate strength through innovation and globalization in business functions.

Financial Section

Targeting ¥2 trillion in net sales(Billion ¥)From this foundation, we will approach our work from 2012 by promoting a
2,000

2,000

mindset of “looking forward, outward and upward,” and begin to shift from managing
on a daily operational level to expanding our business scale, improving our financial
strength and augmenting our corporate strength.

1,500

1,294

1,276

2010

2011

1,154
1,000

500

0
2009

18

Next MTP
TargetYamaha Motor Co., Ltd. ⎜ Annual Report 2011

This expresses our determination to ensure sustainable growth

Please tell us more aboutmarketing enterprise.

“looking forward, outward“Looking forward” expresses an increased awareness of the vector in our corporate activities ofand upward.”

moving from “a V-shaped recovery in results to the stabilization of a profitable structure” toand to increase our value as an engineering, manufacturing andtheir daily activities with a mindset of expanding our business scale, improving our financial
strength and augmenting our corporate strength, we will secure the strong potential that will bringabout sustainable growth, and that in itself will increase Yamaha Motor’s corporate value.

Message from the Management“increasing corporate value through sustainable growth.” With each group employee approaching

Operating Performance

Q6“Looking outward” means placing the ultimate priority on the customer (market) as theon creating value for customers. This will lead to increased value as a global company.
“Looking upward” refers to an attitude of not being content with past achievements, andSpecial Features

source of our engineering, manufacturing and marketing, and concentrating the focus of our work

continuously taking up the challenge of even higher goals. The success we achieved in 2011 inmoving from a V-shaped recovery in results to the stabilization of a profitable structure is only acore of the group since its founding, and work toward increasing corporate value throughsustainable growth.

Overview of Operationstransitory point. The Yamaha Motor group will take up the spirit of challenge that has been at the

Corporate Information
Financial Section

Yamaha Motor Co., Ltd. ⎜ Annual Report 201119

Message from the Management

Operating Performance

INTERVIEW WITH THE PRESIDENT

Q7

We are outlining growth scenarios for each respective business,

What measures are being taken to

As we aim for a scale of ¥2 trillion in net sales, it is first necessary to achieve our budgets. In

expand the scale of Yamaha

addition, as we transition to the next medium-term management plan, we are classifying ourMotor’s business?

current businesses into five categories: (1) expansion in scale and higher earnings in motorcycles

with the aim of growing in scale to net sales of ¥2 trillion.

in emerging markets, marine engines and parts; (2) expansion in scale and development in theintelligent machinery, the Smart Power vehicle, the unmanned aerial vehicle, the pool and theautomotive businesses; (3) expansion in scale and market development in power products,
SSV: side-by-side vehicle
ATV: all-terrain vehicle

motorcycles in Africa, among other products; (4) business improvement to achieve profitability insnowmobiles, personal watercraft, golf cars and boats; and (5) vitalization for profitability in

Corporate Information

Overview of Operations

Special Features

motorcycles in developed markets and SSVs/ATVs. Each business has begun to work toward theachievement of these goals by outlining scenarios based on “why and how.”Q8

We are improving our financial strength through management

What management issues areto support sustainable growth. We are augmenting our corporate

being addressed to improvestrength through the innovation of corporate functions from eight

Yamaha Motor’s financial strength

perspectives in pursuit of the Yamaha spirit.

and augment its corporate

I see three issues with regard to improving our financial strength.

strength?

that balances investments, earnings and returns to shareholders

First, we will continue with the structural reforms begun under the current medium-term
management plan and move forward to a next stage of cost reductions and reorganization of ourdomestic manufacturing layout.
Next, we will transform management by reorganizing our management in India, achieving
profitability on a non-consolidated basis, and restructuring our developed market operations.

Financial Section

And finally, we will address such financial indicators as ROA and ROE.
Through these activities, we will strengthen our financial position through balanced
management of investments, earnings and returns to shareholders to support sustainable growth.
At the same time, we will work to increase corporate value through innovation in the eightfunctions of technology, procurement, manufacturing, marketing, administration, human resources,
design, and quality and safety, while placing a primary emphasis on strengthening our global
competitiveness as we pursue further globalization.

20

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

We are also addressing “technology management” and “design.”
In terms of “technology management,” we will establish a new Technology Management

What do you see as otherCommittee to set a companywide technology policy and strategy, and determine what resourcesmanagement issues for 2012?

(human resources, physical assets, capital) to invest. Next, we will establish a Technology

Operating Performance

Q9

Committee as a forum for sharing development progress and information on individual themes likefrom this foundation we will work to create a structure that is highly motivating and encourages
superior performance.
In addition, the newly established Design Center will pursue an integrated brand identity

Message from the Management

next-generation engines, Smart Power, controls, materials and manufacturing technologies, andincorporating product creation, interaction with customers and public relations, so that the concept
of Yamaha design is consistent throughout the group’s activities.
Special Features

Q10

We continue to pursue an earnings structure that can achieve

What financial measures are you

We expect the situation of an extremely strong yen to continue, and are forecasting net sales oftaking to address the yen’s¥1,400 billion with ¥45 billion in operating income in fiscal 2012, based on exchange rate

prolonged appreciation?

assumptions of ¥77/dollar (an appreciation of ¥3 compared with 2011) and ¥100/euro (anprofitability at ¥77/dollar and ¥100/euro.
Overview of Operations

appreciation of ¥11 compared with 2011).
As business responses to the extremely strong yen, we intend to increase new model

investment, and strengthen our product competitiveness. We will also work to thoroughly reduce
costs by increasing the percentage of parts procured overseas for domestic production to 30%,

Corporate Information

launches by 50% in 2014 compared with 2011, accelerate research and development and capitaland expanding the lineup of global models produced overseas. Our third response will be todevelop technology strategies and develop basic technologies at the Headbusiness functions and strengthening our market competitiveness, which will
include shifting some product development functions to the ASEAN Integrated
Development Center that will be commencing operations this spring. Finally, we
will explore ways to further streamline our business in developed markets toimprove profitability as this unprecedented environment of an extremely strong
yen continues.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

21

Financial Section

Office while shifting management closer to overseas markets, globalizing

Q11

We are developing human resources that will form the basis for

What measures are being taken to

Human resources are the most important management resource for supporting the expansion ofaugment corporate strength in terms

our global business scale. Currently we have 77 overseas bases with local staff accounting forof human resource development?

approximately 50% of management, and in the future I would like to increase this figure to 80%.

Message from the Management

Operating Performance

INTERVIEW WITH THE PRESIDENT

the creation of a global management framework.

We have established a Global Executive Committee to ensure that Japanese and local
managers share common management policies and actively address global issues, and we aresetting up a Global Executive Program to cultivate global managers among both Japanese andoverseas local staff. We are also proactively working to develop human resources who can operate
globally by expanding our training programs for Japanese staff at various levels in the Company.

Special Features

This will include overseas business trips for all staff within four years of their joining the Company,
programs including overseas postings to gain international experience, and strengthening ourprogram of overseas study and training.

Corporate Information

Overview of Operations

Global Executive Committee holding its firstmeeting, April 2012

Q12

We are reviewing our damage scenarios and formulating

What countermeasures are being

Looking back at the Great East Japan Earthquake and the flooding in Thailand in 2011, we realize

taken to address risks fromthat damage from natural disasters is unavoidable. Therefore, we have identified priority

earthquakes, flooding and otherbusinesses and urgently formulated Business Continuity Plans (BCPs) for the early restoration ofdisasters?

Business Continuity Plans.

operations at these businesses. Our next step going forward will be to formulate BCPs forbusiness partners.

Financial Section

The BCPs include both a reorganization of our manufacturing layout based on simulationsof damage from natural disasters and ¥2 billion of investments for the establishment andimplementation of a backup structure for parts supplies. These plans will therefore also contributeto “increasing corporate value through sustainable growth.”

22

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Operating Performance
Message from the Management
Special Featuresin the global market.”“increasing corporate value

Under our current medium-term management plan, the Yamaha Motor group has been pursuingthrough sustainable growth”?

structural reforms and management foundation reform to establish a base from which to movefrom “a V-shaped recovery in results to the stabilization of a profitable structure.” Nevertheless,I firmly believe that fulfilling our Corporate Mission of “offering new excitement and a more
fulfilling life for people all over the world” to achieve sustainable growth embodies the corporate

Corporate Information

What are your aspirations for

manufacturing and marketing enterprise with a prominent presence

Overview of Operations

Q13

We are striving to increase our value as an “excellent engineering,value that Yamaha Motor presents to its stakeholders as a “Kando Creating Company.”
The Yamaha Motor group is built on a strong organization of individuals who carry out tasks

and through transparent management we will maintain a relationship of trust with our
stakeholders. We will strive to increase corporate value through global expansion of scale andsustainable growth, as a group organized around an “excellent engineering, manufacturing andmarketing enterprise with a prominent presence in the global market.”

Yamaha Motor Co., Ltd. ⎜ Annual Report 201123

Financial Section

based on the action guidelines of “Acting with Speed,” a “Spirit of Challenge” and “Persistence,”

SPECIAL FEATURES
Enhancing Presence in Emerging Markets throughEngineering, Manufacturing and Marketing

26“Feel the Future in the Wind” from Yamaha Motor30

Topics32

24

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Yamaha Motor Co., Ltd. ⎜ Annual Report 201125

SPECIAL FEATURE 1

Message from the Management

Operating Performance

Enhancing Presence in Emerging Markets throughEngineering, Manufacturing and Marketing

Accelerating strategy for quantitativee andqualitative growth in emerging markets
kets
The Yamaha Motor group views the ASEAN* market, with its

Special Featurescontinued solid growth, and India, where demand is showing
steady growth, as important strategic zones for the growth of ouremerging markets business, and we are pursuing a strategy forr
quantitative and qualitative growth focusing on these twomarkets. As an engineering, manufacturing and marketing

Overview of Operations

enterprise, Yamaha Motor is pursuing original product, sales,development and procurement strategies to establish a
predominant presence in emerging markets as a “Kando**
Creating Company.”** Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense
nse
excitement that we experience when we encounter something of exceptional value.

Mio J

Financial Section

Corporate Information* Yamaha Motor’s ASEAN market comprises Indonesia, Thailand, Vietnam, the Philippines
nesand Malaysia.

JKT48 is the celebrity face of the Yamaha Motor brandin Indonesia (and is the Jakarta-based sister group of
the Akihabara-based female idol group AKB48).

YZF-R15

26

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

ASEAN
Operating Performance

Creating confidence as an engineering, manufacturing andmarketing enterprise
Shifting to FI in all ASEAN market models

Message from the Management

High gasoline prices make improving fuel economy a major key to gaining the
support of customers in the ASEAN market. The Yamaha Motor group is accelerating
the shift from conventional carburetor models to models equipped with our highly
fuel-efficient fuel injection (FI: electronically controlled fuel injection) system. In
particular, we are targeting the market’s popular scooter category with the introductionof models equipped with the YMJET-FI* system for scooters and commuter vehicles,in the market. Under the next medium-term management plan, we will work toenhance our competitiveness by shifting to FI in all models in the ASEAN market tobuild further confidence in the Yamaha brand.

Unit sales of Yamaha motorcycles
in Indonesia, Thailand and Vietnam
Fuel injection
Carburetor

The Yamaha Motor Group is developing sales channels in the ASEAN market
through a “3S” policy of (motorcycle) Sales, (after-sale) Service and (sales of) Spare(Million units)6
4.6

the market’s regional differences in culture, tastes, infrastructure and traffic
environment, we are posting local sales staff and positioning products for specific

5.5
4.6

Corporate Information

parts to comprehensively raise the level of customer satisfaction. In addition, given

Overview of Operations

Fostering confidence in Yamaha through area marketing andthe “3S” policy* YMJET-FI = Yamaha Mixture Jet-Fuel Injection. A fuel injection
system employing an auxiliary air intake passage in addition to themain passage, to provide an “air assist” for more efficient mixingof the air and fuel that helps improve fuel economy in the practicaluse range.

38%

10%

4

100%

areas, to develop a unique structure of area marketing that shares points of appeal
and always takes a customer
Dealership strategy

2

perspective through highlySales

feedback that leads to optimalengineering, manufacturing and

0
2010

2011

2012
Forecast

Next MTP
Targetmarketing based on market needs,
and is the source of the market’s
confidence in the Yamaha brand.

“3S” policy
Spare parts

Yamaha Motor Co., Ltd. ⎜ Annual Report 201127

Financial Section

localized activities. This results in

ServiceSpecial Featuresand in 2012 we expect to have FI models account for roughly 40% of unit sales

Operating Performance

Localizing development functions at ASEAN
Integrated Development Center
The ASEAN Integrated Development Center commenced operations in February
2012 to promote the globalization of engineering, manufacturing and marketing
functions, in order to enhance our business competitiveness and increase earnings.

Message from the Management

While Yamaha Motor in Japan will retain responsibility for developing core
ASEAN Integrated
Development Centerand advanced technologies for future growth, this center will carry out on-site
product development as an integrated development center for manufacturing,purchasing and technologies that address the needs of customers in the local
market. The center will reinforce the technological development and procurement
functions being performed by Yamaha Motor Asian Center Co., Ltd. (YMAC) in

Special Features

Thailand for motorcycle development and parts procurement. Going forward, therole of this center will be expanded to cover the entire ASEAN region, and similarcenters will be built in Taiwan and China to carry out optimal global productOverview of Operations

development.

PRODUCTS
Indonesia

Mio J

Corporate Information

Achieving superior fuel economy and cost performance at
highest level in its class
AT models account for roughly 50% of the Indonesian market, a development thathas been driven by Yamaha Motor’s Mio series. The Mio J represents anapproximately 30% improvement in fuel efficiency compared with the previous Mio

Financial Section

model, and was launched to meet the market’s need for fuel efficiency.
By incorporating YMJET-FI in a newly developed 115cc engine, the Mio J
achieves superior fuel economy and cost performance at the highest level in its class,and is winning over the market with its stylish design and generous storage capacity.

Vietnam

Nozza

Comfortable, stylish new product targeting womenWith women taking an increasingly active role in society, the Nozza was launched in
Vietnam in the autumn of 2011 as a product targeting women. Combining a sleek
design with a 115cc air-cooled, 4-stroke engine that uses YMJET-FI for superior fuelefficiency, this comfortable vehicle is stylish and convenient, and has provenespecially popular among female students and office workers in urban areas.

28

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

INDIA
Market growth accelerating on both domestic and overseas
demandSales of Yamaha Motor motorcycles in India
Unit sales (Thousand units)
Sales (Billion ¥)39.7

procurement center for models for overseas export, but the domestic market is
growing as well, with total annual motorcycle demand exceeding 12 million units. In

640

2011, Yamaha Motor introduced new models in the deluxe segment and our market

32.3

share increased to 13.4% from 9.7%, as domestic unit sales grew to 340 thousand

380

units and exports rose to 170 thousand units.

Exports

120

Domestic

260

520

190

170
450
340

Special Features

In 2012, we intend to expand our domestic sales network, and along with

51.3
Message from the Management

The Indian business has been developed as a low-cost manufacturing andOperating Performance

Accelerating growth as an engineering, manufacturing and marketing center

increasing our market share in the deluxe segment, to enter the volume zone ofscooters. We also plan to invest ¥12 billion for facilities and equipment to increase

2010

2011

2012 Target

our production capacity to the one million unit level, and are targeting domestic unit
sales of 450 thousand units and exports of 190 thousand units.
Overview of Operations

India

YZF-R15 (150cc sport model)
Corporate Information

Full-fledged supersport model revolutionizing the market
While India is the world’s second-largest market in terms of potential demand,
motorcycles are still viewed primarily as a means of commuting. Launched as amodel “bred for riding enjoyment,” the YZF-R15 has introduced a new concept ofmotorcycle value to the Indian market. With a 150cc liquid-cooled, 4-stroke engine
with FI, and continuing with the popular design of the YZF-R series, this model has

Financial Section

become popular among younger
customers for its sporty drive andcomfortable ride, and has increased
Yamaha Motor’s share of the deluxe
segment.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201129

29

SPECIAL FEATURE 2

Operating Performance“Feel the Future in the Wind”
from Yamaha Motor

Message from the Management

Yamaha Motor’s message for 2012 is “Feel the
Future in the Wind.” We pursue the possibilities of“vehicles that move you” in a variety of fields allaround the world through our engineering,
manufacturing and marketing, which is the first

PAS WITH

Special Features

step toward achieving new breakthroughs.
Y125 MOEGI

Overview of Operations“Feel the Future in the Wind” at the Tokyo Motor Show
Yamaha Motor displayed 20 motorcycles including concept models, and a
special exhibit of five models showing the diversity of personal mobility, atthe 42nd Tokyo Motor Show (November 30–December 11, 2011, held at
Tokyo Big Site). Yamaha Motor’s booth at the 2011 show conveyed aCorporate Information

message of “Feel the Future in the Wind.” This theme expresses a sense of
anticipation for “vehicles that move you,” which includes the fun andexhilaration, as well as the usefulness and convenience, that motorcycles
and other personal mobility vehicles offer, plus the wealth of possibilities the
future has in store. Based on this theme, the world premier models of the
EC-Miu electric scooter and the PAS WITH Electrically Power Assisted
Financial Section

Bicycle were displayed for the very first time, and along with these novel
designs, services using Communications-linked, Next-generation Vehicles
had wide appeal, stemming from the expectations they raise for nextgeneration mobility. As a joint exhibit with Toyota Motor Corporation, ourpartner in this venture, the booth received a great deal of attention.
PAS WITH

Visitors showed much interest in the Y125 MOEGI, which combines the Yamaha design philosophy with thefamiliar look and feel of a bicycle, and the XTW250 RYOKU, an SUV motorcycle that offers superior mobility andconvenience. Our presence was further enhanced by a novel sound demonstration using the latest in speakersystems with the help of Yamaha Corporation, with which we share a common brand. More than 840,000 people
were moved by Yamaha Motor’s message of “Feel the Future in the Wind,” as they experienced new possibilities
for motorcycles.

30

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Operating Performance
Message from the Management

EC-MiuOverview of Operations

Strengthening cooperation with Toyota Motor Corporation

Special Features

XTW250 RYOKU

Beginning with the joint development of the Toyota 2000GT, which
was released in 1967, Yamaha Motor has had a cooperative
relationship with Toyota Motor Corporation. In November 2011, thetwo companies agreed to further strengthen this cooperation byworking together in the new field of building social infrastructure

Corporate Information

with next-generation mobility, including the development ofservices using Communications-linked, Next-generation Vehicles.
Communications-linked, Next-generation Vehicles are atangible step in the new areas of “creating fulfilling lifestyles” and“creating enjoyment in personal mobility” included in Yamaha

Financial Section

Motor’s vision for future growth. Under this agreement, automobiles
and motorcycles will share recharging infrastructure, and by linking to Toyota Motor’s TOYOTA Smart Center
energy management system, we aim to build a comprehensive information infrastructure and establish new
traffic systems like vehicle sharing at an early date. Verification testing is about to begin, with the aim ofcommercializing vehicles and services that use communications-linked functionality.
Vehicle navigation and telematics services that use smartphones and Wi-Fi communications will bemade available for certain Yamaha Motor motorcycles to provide communications-linked services including information
on charging-station locations and availability, charging-completion notification, and, in the future, vehicle sharing
information such as reservations, recharging confirmation, billing, and so on. The two companies will also work
together to expand charging infrastructure, like the “G-Station” charging station to be provided by Toyota Media
Service Corporation for use with EVs and PHVs, that can service both motorcycles and automobiles.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

31

TOPICS
Operating Performance

Smart Power

EC-03 Zero-Emission Electric Commuter Vehicle

Message from the Management

Aiming to create enjoyment in personal mobility, the Yamaha Motor group launched theEC-03 Electric Commuter Vehicle in the Japanese market in September 2010. In addition toa quiet, smooth ride driven by a clean electric motor that emits no exhaust, the design andcompact operability distinguish the vehicle from a Class 1 scooter, making it increasingly
popular in tourist areas and at resort facilities, as well as being a convenient means oftransportation for short distances in urban areas. A total of 2,000 units were delivered fromthe September 2010 launch through December 2011.

Special Features

PAS VIENTA Electrically Power Assisted Bicycle
Sporty, casual bicycle mainly targeting women

Overview of Operations

As an expression of Smart Power that is based on a philosophy of placing “priority on humansensations,” the functionality and specifications of Yamaha Motor’s PAS units for electricallypower assisted bicycles have developed over the years, leading to smaller and lighter units
with improved battery performance. Launched in September 2011, the PAS VIENTA uses
Yamaha Motor’s unique S.P.E.C.8 (Shift Position Electric Control and in-hub 8-speed gear)
mechanism for a sporty, responsive ride. The stylish appearance and comfortable build has
made the PAS VIENTA popular among women.

Industrial-Use Unmanned Helicopter

Corporate Information

RMAX Type G
Contributing to increased efﬁciency and labor savings inagricultural operations

Financial Section

Yamaha Motor released the world’s first industrial-use unmanned helicopter in 1987. These
helicopters have established a solid position in pest control systems, primarily for spraying
agricultural chemicals over rice paddies and soy and wheat fields, and the surface area
covered by these systems continues to show rapid growth. With small engine and electronic
control technologies developed in motorcycles and outboard motors as the coretechnologies, these helicopters can maintain a stable flight and contribute to improved
efficiency and energy conservation in agricultural operations. As the agricultural workforce
contracts and ages, these products are indispensable in today’s agriculture for addressing
such issues as reducing the cost of agricultural products.
We have also developed the RMAX Auto-Navigating Aerial Vehicle, based on the
RMAX line and equipped with an automated control system, and it has earned a solid
reputation in the field of agriculture. With a programmable radius of three kilometers, theseunmanned helicopters are able to collect information and conduct surveys andmeasurements in dangerous areas that people or manned helicopters cannot enter. The
scope of aerial operations has spread in recent years to a variety of fields involving
measuring, monitoring and surveying.

32

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Industrial Machinery and Robots
Operating Performance

Z:TA YSM40 Surface Mounter
Achieving industry’s top levels of mounting speed andproductivity

Message from the Management

The industrial machinery and robot business is a source of increasing expectations for the
future. Demand is being driven by mobile information devices like smartphones and tablet
computers, and Yamaha Motor will be releasing the Z:TA YSM40 surface mounter, whichboasts one of the industry’s highest component mounting speeds, for this market.
With a 4-stage, 4-head layout and conveyors that allow for a variety of conveyancepatterns, this product can mount more than 100,000 components per hour, putting it at the
top end of the industry in terms of component mounting capacity. The YSM40 can also be
used together with Yamaha Motor’s newly developed ZS Feeder electric-powered tapefeeder for continuous, nonstop production. The interchangeable heads provide a high degreeof versatility, accommodating a wide range of components from super-small chips to large,
odd-shaped components. We expect this product to lead to the growth of the high-speed
machinery market, as such production equipment is optimally suited for the small andmedium-sized boards contained in the digital electronic machinery equipment that is driving
the growth of the surface mounter market.

Special Features
Overview of Operations

Generators and Multipurpose Engines

Corporate Information

EF1600iS Inverter Generator
Lightweight, compact, retro-modern design

Financial Section

Portable generators sold in Japan are primarily used as a commercial power source, butthey received renewed attention as an emergency power source for homes and companies
following the Great East Japan Earthquake and the subsequent rolling blackouts. Demandhas risen for inverter generators, which provide quality electricity that can be used as a
power source for personal computers and precision instruments. Following the March 2011
earthquake, Yamaha Motor provided 500 of its inverter generators to the stricken area.
The EF1600iS uses a very lightweight, small engine and resin parts for a compact
design. Although providing a high output of 1.6kVA, this lightweight generator weighs only
20 kilograms. The use of an inverter system provides quality electricity at the same level asa residential power source, making it possible to use the EF1600iS with confidence to run
products containing built-in microcomputers or microcomputer-controlled electric tools. In
addition to complying with emission standards and running with low noise, this generator
boasts 90% recyclability, indicative of Yamaha Motor’s engineering, manufacturing andmarketing standards.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

33

OVERVIEW OF OPERATIONS
Motorcycles

36

Marine Products

42Power Products

44

Industrial Machinery and Robots

46

Other Products

47

Sports Activities

48

34

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Yamaha Motor Co., Ltd. ⎜ Annual Report 201135

Motorcycles¥887.6 billion, and accounted for 69.5% of net sales. Operating income
declined ¥21.0 billion, or 43.2%, to ¥27.6 billion.

Message from the Management

Operating Performance

Motorcycle sales in 2011 declined ¥26.7 billion, or 2.9%, from 2010, to% of net sales

Sales by market (Billion ¥)130 (14.6%)

37 (4.2%)
36 (4.0%)

Unit sales

Operating results(Thousand units)(Billion ¥)

(%)

8,000

1,200

9.0

6,960 6,982
91 (10.3%)497

5,865 5,841

6,000
4,997

493

1,056 1,029

573

6.0

800

817

457

594 (66.9%)

3,770

6,084

4,993

4,717

6,059

Special Features

0
410
197
163

366
167
122

275
92
108

227
53
99

185
64
101

2007

2008

2009

2010

2011

0

Japan

North America

EuropeAsia (excluding Japan)

Other areas

6.0

3.3

400
63

2,000

888
5.3

372

4,000

69.5%

914

3.1 3.0

34

49

28

2010

2011

0

-4
-0.5

-3.0

-400
2007
Sales

2008

2009

Operating income(loss)

Operating income
margin (%)

Overview of Operations

Figures for the fiscal year ended December 31, 2009 and previous fiscal
years are as per the previous segment classifications.

Japan

Class-1 category scooters driving
earthquake reconstruction demand

Despite a cooling of consumer sentiment from the effects of the Great East Japan Earthquake and the yen’s
Corporate Information

appreciation, total domestic motorcycle demand in 2011 rose 5.0% from 2010, to 445 thousand units, driven
by the Class-1 (50cc and under) scooter category, which received renewed attention for its maneuverability andfuel efficiency in connection with reconstruction demand in the wake of the disaster.
Yamaha recorded solid sales, with growth in demand for the main JOG/JOG Deluxe series in the Class-1
category exceeding demand, and strong sales of customized versions of the standardized AXIS Treet in theClass-2 (51cc–125cc) category. In addition, with increased recognition from heightened
Financial Section

environmental awareness, total unit sales of the EC-03 Electric Commuter Vehicle, which
Yamaha Motor released in September 2010 as a Smart Power vehicle, totaled 2,000 units in

JOG

December 2011. As a result, Yamaha Motor’s fiscal 2011 domestic sales rose 2.4% fromfiscal 2010, to 101 thousand units, and net sales declined 1.9%, to ¥37.0 billion.
With little indication of an improvement in the domestic economy in 2012, thelong-term trend of decline in the scooter category is seen continuing, and total domestic
motorcycle demand is expected to be 433 thousand units.
Yamaha Motor will work to vitalize the market by introducing limited- and specialedition versions of our main models in each category, such as the YZF-R1 to commemorate
the 50th anniversary of our participation in the WGP. We are planning for a 6.0% decline inunit sales, to 95 thousand units.

36

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Operating Performance
Message from the Management

X enter 125
Special Features

EuropeAddressing economic weakness by
expanding market territory

Europe experienced a major impact in the real economy in 2011, as the Greek debt crisis spread to neighboring
countries. Declines in motorcycle demand continued, especially in Italy and Spain, on weak retail consumption,
Overview of Operations

and total motorcycle demand in Europe contracted 3.2%, to 1,976 thousand units.
Yamaha Motor strove to stimulate demand with the release of 2012 models of the TMAX and “X enter150” in November 2011. Despite such efforts, dealers held back on their stock procurement due to weak retailconsumption coupled with tighter lending standards by European financial institutions. As a result, Yamaha
Motor’s unit sales in 2011 declined 18.5%, to 185 thousand units, and net sales were down 19.2%, at ¥91.2
billion. Meanwhile, production adjustments to reduce inventories continued, resulting in inventories being

Corporate Information

reduced to 57 thousand units as of the end of 2011, from 66 thousand units at the end of 2010.
With the European economic crisis seen continuing for some time and a rapid economic recovery
appearing unlikely, the decline in overall motorcycle demand is expected to continue in 2012 with a 4.1%
decrease, to 1,896 thousand units.
Yamaha Motor will expand the scooter category to release new 2012 models of the TMAX, primarily to
Italy and France, while at the same time entering the HighWheel

Financial Section

model segment with the introduction of the “X enter 125.” We
are therefore projecting a 3.3% increase in unit sales, to 191
thousand units.

TMAX

Yamaha Motor Co., Ltd. ⎜ Annual Report 201137

37

Operating Performance

North America

Successfully bringing inventories toappropriate levels

The North American market saw a lackluster economic recovery in 2011 on delayed improvements in
employment and retail consumption, but signs of improvement in such key economic indicators as theunemployment rate were seen in the second half of the year. Nevertheless, overall demand was roughly flat

Message from the Managementwith the previous year, at 490 thousand units.
The market continues to polarize. On the one hand, sales of higher-priced models to active, older
consumers are strong. At the same time, the competitiveness of Japanese motorcycles, which are primarily inthe off-road category, lagged among younger consumers, who felt the effects of a decline in purchasing power,
the strong yen and higher crude oil prices. The Yamaha Motor group struggled in the cruiser category, withmany non current models still in stock, but sales of models like the TW200 and XT250 in the dual purpose
category were strong. In addition, our efforts to bring market inventories to appropriate levels were successful,Special Features

and Yamaha Motor’s unit sales rose 20.8% from the previous year, to 64 thousand units, and net sales grew
4.5%, to ¥35.6 billion.
With signs of a bottoming out in 2011, a gradual rebound in overall North American demand is forecast
for 2012, with a 3.1% increase, to 505 thousand units. Yamaha Motor will introduce a 50th anniversary color
model of the YZF-R1 and YZF-R6, which have competed in the World Grand Prix, while at the same time
also strengthen dealer networks and implement more thorough area marketing, and are forecasting a 12.5%

Strykerincrease in unit sales, to 72 thousand units.

Financial Section

Corporate Information

Overview of Operations

strengthening sales of the Stryker (1,300cc) in the cruiser category, a model that drives overall demand. We will

38

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Asia

Growth able to overcome impact of Thai flooding
Operating Performance

Asian (excluding Japanese) motorcycle demand in 2011 grew 4.8%, to 45,529 thousand units, as the benefitsof generally stable economic growth more than offset the negative effects of slower growth in China stemmingfrom the European economic crisis, and damage from the flooding in Thailand.
Although Yamaha Motor’s 2011 sales declined in Indonesia, Thailand and China from the effects of theflooding in Thailand, growth in Vietnam and India held the overall decline in volume to 0.4%, to 6,059 thousand

Message from the Management

units, while net sales declined 2.5%, to ¥594.1 billion.
Total demand in 2012 is expected to rise 7.1%, to 48,756 thousand units, against a backdrop of stableeconomic growth and insufficient social infrastructure.
Yamaha Motor will aggressively introduce new models and work to increase sales, both quantitatively andqualitatively, and we are forecasting an 18.8% increase in unit sales, to 7,197 thousand units.

Special Features

ASEAN

Preparations for full introduction of FI accelerating

Total motorcycle demand in Indonesia grew 10.6% in 2011, to 8,001 thousand units, reflecting an environmentof stable economic growth, the region’s population demographic and underdeveloped transportation
infrastructure.

Overview of Operations

Yamaha Motor is implementing a strategy to differentiate itself in this highly competitive market using a“3S” policy—(motorcycle) Sales, (after-sale) Service and (sales of) Spare parts—to comprehensively raise thelevel of customer satisfaction. In 2011, we achieved solid sales in the Mio series in the automatic transmission(AT) segment, which represents the market’s volume zone. Production of some models was affected by theflooding in Thailand in September 2011, however, and our 2011 unit sales declined 5.7%, to 3,136 thousand
units, with a 6.8% decline in sales, to ¥328.0 billion.

Corporate Information

The Indonesian market is expected to continue to expand in 2012, with a forecast of 8.7% growth, to
8,700 thousand vehicles. Along with our differentiation strategy to increase confidence in Yamaha Motor basedon CCS (Customer and Community Satisfaction), we are accelerating the introduction of new models including
the Mio J with fuel injection (FI) after a full model change, and the Mio Fino that has proven popular in Thailand,
and are forecasting an 18.0% increase in 2012 unit sales, to 3,700 thousand units.
Total 2011 motorcycle demand in the Thai market grew 8.7% from the previous
evious year, to 2,007

Financial Section

thousand units, as a strong economy boosted by solid exports absorbed the economic
mic
damage caused by the flooding.

Mio J

Yamaha Motor Co., Ltd. ⎜ Annual Report 201139

Yamaha Motor’s mainstay product, Fino, an automatic transmission (AT) model, has
Operating Performance

established strong customer support in the volume-zone AT category. However, with the floods
limiting the number of models produced, we were unable to meet the expectations of the market,
and our 2011 unit sales declined 6.5%, to 473 thousand units, and net sales declined 9.4%, to¥71.6 billion.

Message from the Management

The Thai motorcycle market is expected to trend flat in 2012, at 2,000 thousand units,
and with our own production recovering, we introduced the Mio115i, which is popular in

Nozza

Indonesia, in January 2012. By introducing new models including FI models, and building sales channels,
we are aiming for a 26.8% increase in 2012 unit sales, to 600 thousand units.
Growth in the Vietnamese market in 2011 was weakened by the government’s anti-inflation policies, butnevertheless total motorcycle demand grew 16.0% from the previous year, to 3,562 thousand units.
Yamaha Motor introduced the 135cc Exciter in the sports moped category, which is represented by
Yamaha Motor alone, and our first model targeting women in Vietnam, the Nozza with FI in the AT category.

Special Features

These models have proven popular with younger customers, especially in urban areas. Affordably priced models
like the Sirius also posted solid sales, based on engine performance and confidence in the brand achieved overmany years. As a result, Yamaha Motor’s 2011 unit sales in Thailand rose 27.3%, to 988 thousand units, with a
14.5% increase in net sales, to ¥81.1 billion.
Despite a slowing economy, total motorcycle demand in Vietnam in 2012 is seen being supported by a

Overview of Operations

stable economic environment, including sufficient financing—and 10.7% market growth, to 3,943 thousand
units, is forecast. At Yamaha Motor, we will work to make market inroads with products that were popular in2011 and are aiming for a 21.5% increase in unit sales, to 1,200 thousand units.

India

Increasing share in deluxe segment

Corporate Information

The Indian market experienced an economic slowdown in 2011, but solid retail consumption continued toincrease amid rising interest rates and inflation. As a result, total demand for motorcycles grew 16.0%, to13,078 thousand units.
Yamaha Motor continued to record robust sales, especially sales of the FZ series. We also introduced amodel change for the YZF-R15 150cc motorcycle in the deluxe segment, and with strong interest in this model,

Financial Section

we were able to increase our market share in this segment to 13.4% from 9.7%. Consequently, Yamaha Motor’s
2011 unit sales in India grew 32.4%, to 343 thousand units, with a 22.9% increase in net sales, to ¥39.7 billion.
With a growing population and stable consumer base, the Indian market is expected to

FZshow solid growth in 2012 with a 15.0% increase in total motorcycle demand, to 15,040
thousand units.
In addition to introducing a new scooter targeting women, in the autumn of 2012, ourfirst product in the scooter category, Yamaha Motor will continue to expand its sales network toreach the target of 2,000 dealerships under our next medium-term management plan (covering
2013–2015). We are also building a production layout that can produce more than one million
units annually, with a view toward increasing exports. Against this backdrop, we are forecasting
31.2% growth in unit sales, to 450 thousand units.

40

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Operating Performance

China

Strength in affordably priced motorcycles

The Chinese market saw a slowdown in spending for durable goods during 2011, reflecting slower economic

Message from the Management

YZF-R15

growth and rising prices. Motorcycle demand was also affected by low-priced, electrically powered bicycles,
and as a result, total demand declined 12.8% from the previous year, to 14,034 thousand units.
Special Features

Yamaha Motor recorded strong sales of the affordably priced YB125-Z and Future 100 (100cc scooter)models introduced in 2010, but this was unable to offset the impact of product changeovers to comply withemission standards. As a result, our 2011 unit sales declined 13.1%, to 608 thousand units.
The disruption caused by the new emission standards appears to be abating, and we expect total
motorcycle demand in 2012 to be roughly flat with 2011, at 14,000 thousand units (a 0.2% decline). Yamaha

Overview of Operations

Motor will continue to strengthen its sales network in rural areas and will also aggressively promote the 10th
anniversary of the release of its mainstay model, the YB125. We are therefore projecting a 16.1% increase inunit sales, to 706 thousand units.

Central and South America

Strong business focusing on mainstay models
Corporate Information

Supported by stable economic growth, Brazil’s total motorcycle demand grew 7.6% in 2011, to 1,938 thousand
units. Neighboring emerging markets also grew in tandem, for a 12.5% increase in total demand in Central andSouth America, to 4,461 thousand units.
Yamaha Motor conducted nationwide sales promotions in Brazil, focusing on its mainstay YBR125 model,
but unit sales growth was held to 6.6%, to 242 thousand units, in the absence of an improvement in financing
approval rates and delays in cultivating sales networks. In neighboring countries, however, the sporty FZ16
gained support among Argentine customers for its stylish design, and the “BW’S” (125cc scooter) posted strong

Financial Section

sales in Colombia. As a result, our overall unit sales in Central and South America rose 17.3%, to 487 thousand
units.
Overall solid growth is expected in Central and South America again in 2012, with Brazil’s total
motorcycle demand seen growing 4.1%, to 2,018 thousand units, and 6.1% growth, to 4,734 thousand units,
is forecast for the entire region. Yamaha Motor is projecting 20.2% unit sales growth, to 291 thousand units, inBrazil, and a 27.5% increase, to 621 thousand units, for all of Central and South America, as we launch newmodels and accelerate the expansion of our sales network with a strategic focus on the rapidly growing
northeast area of the region.

BW’S

Yamaha Motor Co., Ltd. ⎜ Annual Report 201141

Marine Products¥178.9 billion, and accounted for 14.0% of Yamaha Motor’s total net sales.
Operating income grew ¥6.3 billion, or 846.1%, to ¥7.1 billion.

Message from the Management

Operating Performance

Sales of marine products in 2011 rose ¥11.8 billion, or 7.1%, from 2010, to% of net sales

Sales by market (Billion ¥)Operating results(Billion ¥)

(%)

290

12.0

300

9.7
23 (13.1%)
33 (18.4%)

239

200

14.0%

8.0

179

167

150
12 (6.5%)

4.0 4.0100
36 (20.1%)

2.5

75 (41.9%)

28

Special Features

0

0.4
1

7

2010

2011

6

0

-24
-16.2

-100
2007
North America

Overview of Operations

Japan

EuropeAsia (excluding Japan)

Other areas

Sales

Outboard Motor Business

2008

2009

Operating income(loss)-20.0

Operating income
margin (%)

Sales growth led by emerging markets

The overall trend of decline for outboard motors ended in 2011, primarily in emerging markets including
Russia, Central and South America, and Asia, and total demand rose 4.0% from the previous year, to 718
thousand units.

Corporate Information

Yamaha Motor continued to build on the previous year’s efforts to enhance its product strength, andstrove to proactively increase sales by pursuing a strategy of tie-ups with boat builders in developing markets
and focusing on affluent customers in emerging markets. As a result, sales of entry-level and family boats
rebounded, and lightweight, high-powered models like the F115 and F150 recorded strong sales. Solid growthin unit sales was supported by growing demand from Central and South America, Russia and Asia, a recovery
in North American demand, and reconstruction demand in Japan. As a result, Yamaha Motor’s unit sales grew

Financial Section

11.4% in 2011, to 303 thousand units, and net sales increased 7.3%, to ¥109.9 billion.
Total demand for outboard motors in 2012 is expected to grow 3.1%, to 740 thousand units, led byemerging markets—in particular, Russia and Central and South America. Utilizing our products’ strengths interms of being lightweight, compact, fuel-efficient and clean, we are further strengthening our productcompetitiveness through a technological tie-up with the Swedish manufacturer AB Volvo Penta. We are alsobolstering our cooperation with boat builders to increase our sales of related parts such as riggings andpropellers. We are therefore planning for a 6.0% increase in 2012 sales, to 321 thousand units. We will work toincrease sales in all regions with the exceptions of Europe, where the economic outlook is uncertain, andJapan, where reconstruction demand is leveling off, as we work to establish a firm position with a view to

F150

42

“attaining far and away the top share in the global market.”

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Personal Watercraft Business

Inventory adjustments successful
Operating Performance

Despite weak markets in Japan and Europe, total demand for personal watercraft in 2011 rose 9.0%, to 73
thousand units, primarily on demand from Central and South America.
Although Yamaha Motor’s production was affected by the Great East Japan Earthquake, the success ofefforts initiated in 2010 to bring inventories to appropriate
levels, a recovery in demand in the United States andMessage from the Management

increased sales of the VX700 model for emerging markets led
to solid sales in all of our markets. As a result, 2011 unit sales
grew 19.0%, to 29 thousand units, with a 20.5% increase in
net sales, to ¥28.8 billion.
Total demand in 2012 is seen growing 9.6%, to 80
thousand units, as emerging markets continue to develop andSpecial Features

demand continues to grow. Yamaha Motor will proactively
work to increase sales, focusing on the new VXR and VXSmodels and the SJ700, a “stand-up riding” model
representing a class from which competitors havewithdrawn. We are projecting 2012 unit sales of 39 thousand
units, for a 33.3% increase in 2011.

Boat Business in Japan

Large growth in utility boats on reconstruction demand

Overview of Operations

VXR

Japanese domestic boat demand in 2011 showed large growth in demand
Corporate Information

for utility boats and fishing boats in response to the Great East Japan
Earthquake, and total domestic demand including pleasure boats rose
48.2%, to 3,446 units.
Yamaha Motor responded to the earthquake by providing boats
to support early reconstruction, which resulted in a large increase inunit sales of utility boats, for 669.4% growth from the previous year, toFinancial Section

1,308 units. We also sought to stimulate demand in the pleasure-use
boat market with the introduction of the strategic SR-X model, andcombined with strong sales of the YF-24, the successor model to thehighly popular YF-23, domestic boat unit sales in 2011 rose 160.5%,
to 1,865 units, with a 14.3% increase in net sales, to ¥7.6 billion.
Central government-led demand related to reconstruction is seencontinuing in 2012 and utility boat unit sales are seen peaking, and total domestic boat demand is expected to

YF-24

grow 52.9%, to 5,268 units. Yamaha Motor has set up a structure to increase production for the restoration of
the fishing industry in areas damaged by the earthquake, and we are planning for a 93.6% increase in utility
boat unit sales, to 2,532 units. We will also be launching the global NYTRO model in the pleasure-use boat
segment in May, and are targeting a 71.8% increase in total boat sales in Japan, to 3,205 units.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201143

Power Products

Operating Performance

Sales of power products in 2011 declined ¥2.7 billion, or 2.6%, from 2010, to ¥100.3 billion, andaccounted for 7.9% of net sales. Operating income improved ¥18.7 billion, to a ¥7.5 billion operating
proﬁt (compared with an ¥11.3 billion operating loss in 2010), from the reversal of accrual for productMessage from the Management

liability and reconstruction demand for generators.

% of net sales

Sales by market (Billion ¥)12 (12.0%)
6 (5.8%)Operating results(Billion ¥)

(%)

300

12.0

266

13 (13.2%)

8.4 213

7.5

8.0

100

4.0

200

7.9%
Special Features

103

101

100

20 (19.8%)

1.7

49 (49.2%)
22
0

4

-34

7

-11

0

-10.9
-33.6

-100
2007
Overview of Operations

Japan

North America

EuropeAsia (excluding Japan)

Other areas

Sales

ATV/SSV Business

2008

2009

-40.0
2010

Operating income(loss)

2011

Operating income
margin (%)

Market polarization accelerating

Total demand for all-terrain vehicles (ATVs) declined 0.7% in 2011, to 519 thousand units. In the United States,
Corporate Information

our main market, the uncertain economic outlook led to weak demand, while consumer sentiment in Europe
cooled resulting from the economic crisis. The market is showing a trend of polarization between utility
products, primarily four-wheel drive models, and restrained purchasing of sports products.
In the sports category, Yamaha Motor’s area of strength, we had no choice but to reduce production, andwith a delayed launch of the new Grizzly 300 model, our ATV unit sales declined 6.9% in 2011, to 75 thousand
vehicles. On the other hand, our unit sales of side-by-side vehicles (SSVs) grew 21.3% from 2010, to fourFinancial Section

thousand units, on strong interest from dealers that led to increased production in the second half of the year.
As a result, the ATV/SSV business recorded a 7.5% decline in 2011 net sales, to ¥41.9 billion.

Grizzly 700

Total demand for ATVs in 2012 is seen declining 2.6%, to 505 thousand units, on
sluggish demand from a weaker global economy. Yamaha Motor is forecasting a 6.3%
decline in our ATV unit sales, to 71 thousand units in 2012. In the United States, we willcontinue to carry out area marketing and the PRO-YAMAHA sales network strategy with theGrizzly 550/700 as our top-of-the-line models. We are also forecasting a 62.5% increase
in SSV unit sales, to six thousand units.

44

44

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Operating Performance
Message from the Management

Grizzly 700

Snowmobile Business

Lower sales from insufficient snowfall

Total demand for snowmobiles recovered in 2011, growing 12.0% from 2010, to 139 thousand units, onSpecial Features

growth in the Russian market and a halt to the decline in North American demand. Nevertheless, increased
uncertainty regarding snowfall and the slowing of the global economy raise concerns of a decline in demand
going forward.
Yamaha Motor proactively held test drive events to promote our new models with power steering—anindustry first—but with insufficient snowfall and competition from new models introduced by otherunits, with a 4.3% drop in net sales, to ¥15.1 billion.

Golf Car Business

FX Nytro RTX

Exchange rates adversely impacting sales

Overview of Operations

manufacturers, North American sales declined. As a result, total unit sales in 2011 fell 1.6%, to 21 thousand

Demand for golf cars declined in Japan as a result of the earthquake, but grew in emerging markets, for a total
Corporate Information

increase in 2011 of 5.8%, to 164 thousand units.
Yamaha Motor worked to aggressively expand sales, especially in North America, and our unit sales grew
6.4%, to 48 thousand units, as a result. With the impact of movements in exchange rates, however, net sales
declined 4.7%, to ¥18.1 billion.
Note: As demand requirements were changed in fiscal 2011, unit sales for the previous fiscal year were revised from 225
thousand to 155 thousand units.

G30A
Financial Section

Generators and Other Power Products Growing demand for electricity

conservation
Total demand for generators in 2011 outpaced initial estimates, growing 5.0% from 2010, to 10.06 million
units, on renewed popularity in Japan as a means of reducing electricity consumption in the face of rolling
blackouts.
Yamaha Motor recorded higher unit sales reflecting this demand for reconstruction and electricity
conservation, with unit sales growing 9.8% from 2010, to 160 thousand units, and a 9.6% increase in net
sales, to ¥25.1 billion.
To address the generator market’s growing demand, primarily in emerging markets, in 2011 Yamaha
Motor set up a new factory in Jiangsu, China, with an annual production capacity of 200,000 units, andestablished an integrated production structure for engines and generators. This facility will commence
operations in 2012, and we also plan to enter the Indonesian market utilizing our motorcycle sales network.

EF1600iS

Yamaha Motor Co., Ltd. ⎜ Annual Report 201145

Industrial Machinery and Robots
Note: Previously included in Other Products, the Industrial Machinery and Robots business was made a reporting segment from fiscal 2011
because of the business’s increased quantitative significance.

billion, or 1.2%, from 2010, to ¥34.3 billion, accounting for 2.7% of Yamaha Motor’s
total net sales. Operating income declined ¥0.7 billion, or 9.9%, to ¥6.3 billion.

Message from the Management

Operating Performance

Net sales in 2011 in the industrial machinery and robots business declined ¥0.4

% of net sales

Sales by market (Billion ¥)Operating results(Billion ¥)0 (0.6%)30

2.7%
14 (40.3%)

16 (46.0%)

20

Special Features10
3 (8.9%)20

1 (4.2%)

Surface mounters, industrial
robots and wheelchairs,
which were previously
included in the Others
segment, are being
separately reported as theIndustrial Machinery andRobots segment from fiscal
2011. Results for fiscal 2010
have been reclassified toreflect this change.

35

Overview of Operations

North America

EuropeAsia (excluding Japan)

15

10

5

7

6
5

0

Other areas

IM Business

18.2

34

2010
Japan

(%)

20.0

40

Sales

Operating income

0

2011

Operating income
margin (%)

Establishing sales companies in Europe
and the United States

The Intelligent Machinery (IM) business manufactures and sells various types of industrial robots, primarily
surface mounters.
The surface mounter market in 2011 recorded 15.0% growth in total demand, to 16 thousand units, as

Corporate Informationstrong markets for mobile information devices like smartphones and tablet computers more than offset
restrained capital investment demand in China stemming from concerns of an economic slowdown in Europe.
Yamaha Motor recorded strong sales of device-related and automotive-related products, but withstagnant sales in China because of restrained capital investment, unit sales of surface mounters in 2011
declined 6.0% from the previous year, to two thousand units, and total net sales in the IM business declined
1.2%, to ¥34.3 billion. As surface mounters are a global product with high growth potential, Yamaha Motor

Financial Section

established sales companies in Europe and the United States in July 2011, to develop a comprehensive
business that will not be impacted by developments in individual countries.
Despite elements of uncertainty including the situation in Europe, the market for mobile information
devices is expected to continue to drive growth in total demand for surface mounters, and an 8.3% increase, to18 thousand units, is forecast for 2012. A recovery in capital investment in China is expected as a result of theeasing of tight monetary policies, and we have introduced the Z:TA surface mounter, an industry leader in termsof component mounting speed, for the growing market in China, primarily for mobile information devices. We
will also develop relationships with Taiwanese EMS* customers. In addition, we are aiming to increase sales bystrengthening our sales network through the sales companies established in Europe and the United States.

Z:TA

46

*Electronics Manufacturing Service: Manufacturers that carry out subcontracted production of electronic devices

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Other Products
Sales of other power products were basically ﬂat year on year with a
Operating Performance

0.1% increase, to ¥75.1 billion, and accounted for 5.9% of net sales.
Operating income declined ¥1.3 billion, or 20.6%, to ¥5.0 billion.

5.9%

Sales by market (Billion ¥)15 (19.5%)

Operating results(Billion ¥)

(%)

200

16.0

150

12.0

3 (3.9%)1 (0.8%)Figures for fiscal 2009 and

8.4
8.0

100 previous years are not

0 (0.0%)57 (75.8%)

comparable because of
segment reclassifications,and are therefore not shown.

75

75

4.0
6

5

2010

2011

0
2007
North America

EuropeOther areas

Sales

2009

Operating income

0

Operating income
margin (%)

Solid sales of models with large-capacity batteries

Total demand for electrically power assisted bicycles in Japan rose temporarily in 2011 from demand related to reconstruction following the earthquake, but
the impact of the weak economy held the increase to 9.9%, to 422 thousand units.

Overview of Operations

PAS Business

Asia (excluding Japan)

2008

6.7
Special Features

50

Japan

Message from the Management% of net sales

To enhance product competitiveness, Yamaha Motor carried out its first full model change in eight years in 2011. As a result, the PAS business recorded
strong sales, with domestic unit sales of complete PAS Electrically Power Assisted Bicycles growing 12.6%, to 105 thousand units, and a 7.4% increase in
Total demand in Japan for electrically power assisted bicycles is seen growing 6.1% in 2012, to 448 thousand units. Yamaha Motor will work toincrease sales by adding new models that meet the diverse needs of customers for enhanced features, and we are planning for a 6.9% increase in domestic
unit sales of complete PAS bicycles in 2012, to 112 thousand units.

Automotive Business

Negatively impacted by earthquake

and Relative Absorber System (REAS) automotive suspensions to automakers in Japan and around the world. Automakers significantly curtailed manufacturing
during 2011 because of the effects of the earthquake and flooding in Thailand, resulting in a large decrease in Yamaha Motor’s unit sales. Net sales in the
Automotive business declined 13.4% from 2010, to ¥27.0 billion.

Aggressively developing new growth categories

The industrial-use unmanned helicopter business plans to enter Australia’s pest control market in 2012. The business is also addressing demand in Japan formonitoring and measuring the areas around volcanoes and in disaster-stricken areas, and we are strengthening our exports to Korea in the agricultural field.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201147

Financial Section

Utilizing our engine technologies developed for motorcycles, Yamaha Motor provides high-performance engines, Performance Damper anti-vibration dampers,

Other Products

Corporate Information

net sales, to ¥15.6 billion.

Sports Activities

Operating Performance

The Yamaha Motor group aims to be a Kando Creating Company that uses ingenuity and passion
to offer new excitement and a more fulﬁlling life for people all over the world. By boldly taking
up the spirit of challenge through our participation and promotion of racing and a variety of otherMessage from the Management

sports activities, we contribute to the development of a healthy society.
Racing Activities

Sharing a sense of excitement withpeople around the world

Yamaha Motor first participated in a motorcycle racing event only 10 days after the Company was founded, on
July 10, 1955, at the Mount Fuji Ascent Race, one of Japan’s largest. By winning the event with our newly
released YA-1, Yamaha Motor moved people by demonstrating its spirit of challenge.

Special Features

Since then, Yamaha Motor has positioned racing events as a venue for offering excitement to people
around the world, and continues to engage in this important corporate activity that develops and tests advanced
technologies, and also cultivates the spirit of challenge contained in our founding philosophy.
In 2011, the 50th anniversary of our participation in world-class motorcycle road racing, Yamaha Motoragain demonstrated its strength with Jorge Lorenzo of the Yamaha Factory Racing team ranking No. 2 for the

Overview of Operations

year in the MotoGP class, and in the World Motocross Championship MX1 class, Monster Energy Yamaha’s

Financial Section

Corporate Information

Gautier Paulin participating for the first time—and winning—the final race of the season.

48

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Operating Performance
Message from the Management
Special Features

Rugby

Pursuing dreams as one with players

Players and fans join together in sharing passion and excitement. Sports activities embody Yamaha’s ideal ofbeing a Kando Creating Company.
Overview of Operations

The Yamaha Jubilo rugby football club, which belongs to Japan’s Top League, symbolizes this ideal withthe fresh excitement that the club constantly provides. The Yamaha Stadium Manpai (Filled to Capacity) Project
was launched with the aim of having at least 10,000 people attending home matches to cheer on the players,
including Ayumu Goromaru, who in 2011 was the league’s top point scorer and best kicker, and was selected
as a member of the league’s best 15 at the fullback position. Yamaha Motor employees’ proactive efforts to
support the club through PR activities in their communities and the organization of fan clubs come together in a

Sports Promotion

Corporate Information

moment of shared excitement that can be seen as the ultimate expression of the Yamaha spirit.

Passing on the spirit of challenge to thenext generation

The Yamaha Motor Foundation for Sports (YMFS) was established in November 2006 to commemorate the 50th
anniversary of Yamaha Motor’s founding. The foundation operates globally in the field of sports to convey the
Financial Section

joy of having dreams and the value of pursuing those dreams, through “sports challenge” subsidy programs
designed to develop confident individuals, sports promotion programs to encouragechildren to be healthy in mind and body, and sports culture and education programs toenrich society.

Recipients of YMFS subsidies andscholarships during 2011

Yamaha Motor Co., Ltd. ⎜ Annual Report 201149

CORPORATE INFORMATION
Corporate Governance52

Directors, Corporate Auditors and Executive Officers

62

Corporate Governance and Outside Directors

65

Corporate Social Responsibility

66

Organization

70

Risk Factors

71

History of the Yamaha Motor Group74

Principal Subsidiaries and Affiliates

76

50

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Yamaha Motor Co., Ltd. ⎜ Annual Report 201151

Corporate Information

Corporate Governance

Message from the Management

Operating Performance

Basic Corporate Governance Policies

of Directors shall be adopted by a majority of the voting rights

corporate governance is an important tool to ensure disciplined

held by the shareholders present at the General Meeting ofmanagement and maximize long-term corporate value. Based

Shareholders. These voting shareholders must hold shareson this realization, the Company has been striving to speed

representing, in the aggregate, not less than one-third (1/3) ofup management decision-making; make the accountability

the voting rights of all shareholders entitled to exercise thesystem clearer; develop a transparent system of Director

rights and not using cumulative votes.

selection and remuneration; and establish an internal control

As of March 26, 2012, there were twenty-three (23)system. Because it is one of its most important management

Executive Officers, and seven (7) Directors concurrently

issues, the Company also plans to implement other measuresserving as Executive Officers. A Management Committee

to strengthen and solidify corporate governance. At the same

comprising Executive Officers with specific posts has beentime, the Company is enhancing Investor Relations services,formed to deliberate matters of business execution, speedingin order to build on the relationship of trust with its shareholders

up the Company’s decision-making process.

Corporate Information

Overview of Operations

Special Featuresand investors.

Financial Section

The Articles also stipulate that resolutions for the election

Yamaha Motor Co., Ltd. (the “Company”) recognizes that

Directors and Executive Officers will serve a one-year
term, a period limited to assure accountability.

Summary of Corporate Governance and Reasonsfor Adopting the System

Executive Personnel Committee

1) Reasons for adopting current system

In August 2001, the Company established the Executive

The Company maintains a corporate auditor system, andPersonnel Committee as an advisory body of the Board of

most of the Company’s Directors are full-time Directors with

Directors, in order to improve transparency in nominating

considerable knowledge of business matters. The Company

candidates for Director and Executive Officer, and to determine

draws on the supervisory function of outside executives

the remuneration for these officers. The Committee comprises

through appointment and had three (3) Outside Directors inseveral full-time Directors and several Outside Directors of theaddition to two (2) Outside Auditors as of March 26, 2012.

Company, in addition to the President and Chief Executive

The Company also emphasizes efforts to strengthen corporate

Officer. It deliberates on candidates for Director and Executive

governance, underpinned by an Executive Officer system, theOfficer, the remuneration and bonus system, and the overall

Executive Personnel Committee and an internal auditing system.

direction of governance.

2) Summary of current system

Corporate Auditors and the Board of Corporate Auditors

Directors and the Board of Directors and Executive Officers

As of March 26, 2012, the number of Corporate Auditors

The Company introduced an Executive Officer system tostood at four (4), of whom two (2) are Outside Corporate

expedite business execution. It then strengthened

Auditors. Corporate Auditors attend Board of Directors,

management supervision by clarifying the respective roles ofManagement Committee and other important meetings, in

Executive Officers and the Board of Directors. Executive

addition to executing audits, receiving business execution

Officers are responsible for “business execution” itself, while

reports from Directors, perusing important documents in thethe Board of Directors is charged with “approving the basic

decision-making process, and conducting audits at thepolicies of the Yamaha Motor group and supervising theCompany’s subsidiaries.

group’s business execution.”
The Company’s Articles of Incorporation stipulate that the
number of Directors shall not be more than fifteen (15). As of

In support of these audit services performed by Corporate
Auditors, the Company has established the Corporate Auditors’
Office, with staff exclusively dedicated to assisting auditors.

March 26, 2012, there were ten (10) Directors, three (3) ofwhom are Outside Directors. The Board of Directors will inInternal Auditing

principle meet once every month, and whenever else it may

The Integrated Auditing Division established an Internalbe necessary.

Control Auditing Division (consisting of twenty-seven (27) staff

52

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

members as of March 26, 2012) under the direct control ofIn their association with the Accounting Auditor, Corporate
Auditors, including Outside Corporate Auditors, receive an

based on annual audit plans, the appropriateness,

auditor’s report, in accordance with prevailing laws, andreasonableness, and efficiency of business execution at thereview the fairness of the report. Both sides pursue

Company and each group company, and submits evaluations

communication through the exchange of information andand makes proposals.

opinions whenever necessary. In their association with the

Operating Performancethe President and Chief Executive Officer. The Division audits,

Outside Corporate Auditors, seek to improve the effectivenessOutside Directors assess the current status of the group andnecessary, to the Internal Auditing Division, Corporate

identify issues of interest through regular receipt of internal

Auditors and the Accounting Auditor on the status of internal

audit reports from the Integrated Auditing Division. Opinions

control measures, specifically their establishment andare voiced at Board of Directors’ meetings when necessary.

application.

and efficiency of auditors’ audits through access to internal
audit plans and reports on the results of audits.
The internal control division offers reports, when

Message from the Management

Internal Auditing Division, Corporate Auditors, including

Communication among Outside Directors,
Corporate Auditors (including Outside Corporate
Auditors), Accounting Auditor, Internal Auditing
Division and Internal Control Division

Special Features

Yamaha Motor’s Corporate Governance System and Internal Control System (As of March 26, 2012)
General Meeting of Shareholders
Appointment/
Dismissal

Seeking advice

Board of Directors
Makingrecommendations

10 Directors(including 3 Outside Directors)

Audit

4 Corporate Auditors(including 2 Outside Auditors)

Makingrecommendations

Management Committee

External Auditor

Corporate Auditor’s Ofﬁce
Report

Audit

Reporting businessexecution situations

Seeking advice

Judgment of accounting audit authenticity

Accounting audit

Exchanges of information and opinions
ReportReportPresident, Chief
Executive Ofﬁcer andRepresentative Director

Making recommendations(Examination of important
issues, etc.)

Seeking advice

Instruction

Instruction

Financial Section

Risk Management andCompliance Committee
Instruction

ReportIntegrated Auditing
Division

ReportLogistics and Security
Trade Division of Corporate
Planning & Finance Section

Corporate Information

Business
Execution

Appointment/
Dismissal

ReportCorporate Auditors
Board of Corporate Auditors Agreement to appointments

Executive Personnel
Committee
Appointment/
Dismissal
Supervision

Overview of Operations

Appointment/
Dismissal

Internal audit

Business sectors, Functional sectors, Corporate sectors, Subsidiaries

Yamaha Motor Co., Ltd. ⎜ Annual Report 201153

Operating Performance

Corporate Information

Corporate GovernanceOutside Directors and Outside Corporate Auditors

executives offer advice and supervision from an independent

1) Function and role of Outside Directors and Outside

and objective perspective regarding management policies andCorporate Auditors in achieving proper corporate

strategies and decisions on executive personnel and theirgovernanceremuneration.

The Company had three (3) Outside Directors and two (2)2) Appointment of Outside Directors and Outside Corporate Auditors
Positions

Names

Reasons for Appointment

Yuko Kawamoto

With wide-ranging experience as a management consultant and considerable expertise in ﬁnance-oriented research
activities, Ms. Kawamoto brings high-level know-how valuable to the Company in its management efforts. Ms. Kawamoto
has no special interests in the Company and will, in her capacity as an Outside Director, provide advice and supervisionfrom an independent perspective. The Company registered Ms. Kawamoto as an Independent Director since she does nothave any attributes that would require additional disclosure as deﬁned by the Tokyo Stock Exchange.

Masamitsu Sakurai

Having acquired ample experience and broad-based insights through the management of global corporations, Mr. Sakurai
will utilize this background to provide advice and supervision from an independent perspective. He has no special interestsin the Company. The Company registered Mr. Sakurai as an Independent Director since he does not have any attributes
that would require additional disclosure as deﬁned by the Tokyo Stock Exchange.

Mitsuru Umemura

As President and Representative Director of Yamaha Corporation, a major shareholder of the Company, Mr. Umemura
brings the viewpoint of a company executive to the Company and provides valuable advice and supervision that ensureseffective corporate management functions underpinning efforts to maximize corporate value for shareholders.

Norihiko Shimizu

Formerly a management consultant and currently a scholar, Mr. Shimizu has acquired in-depth experience and expertisein management strategy and corporate governance, which will reinforce the Company’s auditing capabilities. He has no
special interests in the Company and provides advice and supervision from an independent perspective. The Company
registered Mr. Sakurai as an Independent Corporate Auditor since he does not have any attributes that would require
additional disclosure as deﬁned by the Tokyo Stock Exchange.

Tetsuo Kawawa

As a lawyer, Mr. Kawawa has ample specialized knowledge in corporate law that can be applied to the Company’s
auditing activities. He has no special interests in the Company and provides advice and supervision from an independent
perspective. The Company registered Mr. Kawawa as an Independent Corporate Auditor since he does not have any
attributes that would require additional disclosure as deﬁned by the Tokyo Stock Exchange.

Special Features

Message from the Management

Outside Corporate Auditors as of March 26, 2012. These

Corporate Information

Overview of Operations

Outside Directors

Financial Section

Outside Corporate
Auditors

3) Vested interests of the Outside Directors and Outside
Corporate Auditors at Yamaha Motor Co., Ltd.

Outside Directors Yuko Kawamoto and Masamitsu
Sakurai and Outside Corporate Auditors Norihiko Shimizu andOutside Director Mitsuru Umemura is President andTetsuo Kawawa have no special interests in the Company

Representative Director of Yamaha Corporation, which holds

other than Company shareholdings.

12.09% of the Company’s shares, as of December 31, 2011.

54

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Remuneration and Other Compensation for
Directors and Corporate Auditors

The Company has entered into agreements with Outside

1) Policies on determining the amounts of remuneration

Directors and Outside Corporate Auditors, in accordance withor the calculation method thereof
The Company’s Directors’ Remuneration Plan comprises

Law, which limit these executive’s liabilities (as specified inbasic compensation (monthly salary) in a fixed amount,

Paragraph 1 of Article 423 of the Company Law) for damages.

Directors’ bonuses, reflecting the short-term performance of

The upper limit of liability for damages in the agreements is

the Company overall, compensation linked to each Director’s

the amount as specified in the Law.

individual performance, a stock compensation plan reflecting

The Company limits liabilities for damages charged to thethe medium- to long-term performance of the Company

Outside Directors and the Outside Corporate Auditors only

overall, and share warrants offered as stock options. Note thatwhen they acted with good will and the liability did not arise

stock options are integrated into a stock compensation plan frombecause they committed serious negligence in executing

the Company’s 77th fiscal year (fiscal 2011).

their duties.

Message from the Management

the provisions of Paragraph 1 of Article 427 of the Company

Operating Performance

Overview of Agreements that Limit Liabilities for
Damages

The stock compensation plan allows Directors to acquire
the Company’s Director Shareholding Association, and to
hold the shares while in office, thus further pegging Director

Special Featuresa certain number of the Company’s shares monthly throughremuneration to shareholder value. However, theperformance-based remuneration system and stock
Directors and Corporate Auditors.

Overview of Operations

compensation plan do not apply to compensation for Outside2) Directors’ remuneration
Remuneration and other compensation for the Company’s(Millions of yen)Compensation linked to performance
Classiﬁcation

Basic
compensation

Directors’
bonusesCompensation linked toeach Director’s individual
performanceStockcompensation
plan

Total

218

65

2

44

330

Outside Directors (6)

(28)

—

—

—

(28)

Corporate Auditors (7)

68

—

—

—

68

Outside Corporate Auditors (3)

(19)

—

—

—

(19)

Total

287

65

2

44

399

Financial Section

Directors (15)Notes 1. The directors’ bonuses under “Compensation linked to performance” represent the amount posted as accrued bonuses for Directors for the ﬁscal year under review. It was resolved by the 77th
Ordinary General Meeting of Shareholders held on March 23, 2012, that the total amount of the directors’ bonuses be ¥52 million within the range of the accrued bonuses for Directors.
2. The numbers above include amounts for four Directors and three Corporate Auditors who retired, effective from the closing of the 76th Ordinary General Meeting of Shareholders held on
March 24, 2011.
3. In addition to the remuneration presented above, ¥61 million—equivalent to employee salaries—was paid to four Directors concurrently serving as employees.

3) No names are listed because no Director or Corporate Auditor received more than ¥100 million in aggregate
remuneration and other compensation.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Corporate Information

Directors and Corporate Auditors in fiscal 2011 are as follows.

55

Message from the Management

Operating Performance

Corporate Information

Corporate GovernanceMatters to Be Resolved at the General Meeting of
Shareholders that Can Be Adopted at the Board of
Directors’ Meeting

Improving Investor Relations (IR)

1. The Company’s Articles of Incorporation stipulate that the

The Company has been aggressively pursuing IR activities

Company may, by a resolution of the Board of Directors,

worldwide, designed to ensure accountability by providing

acquire its own shares, in accordance with the provisions ofshareholders and investors with appropriate, accurate andParagraph 2 of Article 165 of the Company Law. This is totimely information regarding the Company’s management

ensure that the Company can acquire its own shares

performance and business operations. They include quarterly

through market transactions or other methods andfinancial results briefings, an “IR road show” for overseas

implement a flexible capital policy response to changes ininvestors, efforts to improve information disclosure on the IR

the management environment.

homepage, and interviews in response to requests fromshareholder meetings to progress smoothly.

analysts and media.

Overview of Operations

Special Features

2. The Company’s Articles of Incorporation stipulate that inaccordance with the provisions of Paragraph 1 of Article

State of Audit

426 of the Company Law, the Company may, by a

The Company has designated Ernst & Young ShinNihon LLC

resolution of the Board of Directors, exempt its Directors

as the independent auditing company with review(including former Directors) and Corporate Auditors (including

responsibilities for Company audits. Certified Public

former Corporate Auditors) from liabilities for damages

Accountants who engaged in the certification of audit are as

arising from negligence of their duties, within the limits

follows.

prescribed by laws and ordinances. This is to ensure that

Kazuhiro Fujita

Directors and Corporate Auditors can successfully fulfill their

Designated Limited Liability and Engagement Partner

expected roles.

Takahiro Takiguchi
Designated Limited Liability and Engagement Partner

3. The Company’s Articles of Incorporation stipulate that the

Corporate Information

Company may, by a resolution of the Board of Directors,

Masahiko Tsukahara
Designated Limited Liability and Engagement Partner

pay interim dividends, with June 30 of each year designatedas the record date, in accordance with the provisions of

The number of continuous years the Certified Public

Paragraph 5 of Article 454 of the Company Law. This allows

Accountants have served the Company is omitted because it

the Company flexibility in returning profits to shareholders.

is under seven (7) years for all of them.

Financial Section

Ernst & Young ShinNihon LLC has introduced a voluntarySpecial Resolution Requirement for General
Meeting of Shareholders

system for rotating engagement partners in its employ so that

The Company has stipulated a special resolution requirement

service.

at General Meeting of Shareholders in the Articles ofIncorporation, in accordance with the provision of Paragraphnone exceeds a certain number of years in continuous
Support staff for the audit includes seven (7) certified
public accountants and twenty-six (26) other assistants.

2 of Article 309 of the Company Law, as follows: The
the voting rights held by the holders of shares present at the

Basic Policy Regarding the Internal Control
System and the State of Its Development

General Meeting of Shareholders. These voting shareholders

The Company, in accordance with the Company Law, passed

must hold shares representing, in the aggregate, not less thana resolution at a Board of Directors meeting regarding

one-third (1/3) of the voting rights of all shareholders entitleddevelopment of a system to ensure the conduct of its

to exercise the rights.

business is appropriate. The Company considers risk

resolution shall be authorized by a two-thirds (2/3) majority ofThis relaxes the number of required votes for special

management and compliance its most important issues, andresolutions at any General Meeting of Shareholders, enablingis therefore continuing to develop the internal control system.

56

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

1) Systems to ensure Director compliance with laws,
Incorporation

departmental risk management activities.
4. If a serious crisis arises, an Emergency Countermeasures
Headquarters shall be established as provided in the

1. The Board of Directors shall supervise Directors in the

Emergency Response Manual, with the President and Chief

execution of their responsibilities, to ensure that the

Executive Officer as its head, in order to minimize damage

Directors exercise the duty of care and duty of loyalty to theand negative impact from the event.

with ensuring that all Directors’ activities are lawful.
2. Corporate Auditors, in accordance with the criteria and

4) Systems to ensure efficient execution of Directors’
dutiesmethodology established by the Board of Corporate

1. The authority and responsibilities of the Board of Directors,

Auditors, shall audit the performance of the Directors’

President and Chief Executive Officer and sector heads,

duties.

and the system for transferring authority between them,

3. The Company shall maintain a robust posture against

shall be better defined by strengthening the Board of
Directors Rules, Decision-making Rules and other importantsociety. It shall reinforce this commitment in its Code ofrules. This will allow these officers to execute their

Ethics.

responsibilities more efficiently.

Special Features

antisocial forces that threaten the order and safety of civil

4. The Company shall form such organizations and develop

2. Resolutions to be proposed at the Board of Directors’Meetings shall first be subject to deliberation by thesubsidiaries maintain appropriate financial information, andManagement Committee and other relevant committees toprepare and release reliable financial statements.

ensure they are appropriate and meet procedural criteria forsubsequent deliberation by the Board of Directors.

2) Disposition of documentation and other information

3. After the Medium-Term Management Plan and the budget

concerning the performance of Directors’ duties

for the fiscal year are formulated, management control

1. Documents and other forms of information storage thatsystems such as “management by objectives” shall be

detail the execution of duties by Directors are properly

established to achieve the plan’s goals and targets.

and application of required in-house rules.

5) Systems to ensure employee compliance with laws,
regulations and the Company’s Articles of Incorporation

information, including the content of documents and other

1. A Risk Management and Compliance Committee shall beforms of information storage that detail the execution of

established to deliberate and offer opinions concerning

duties by Directors, through the establishment andapplication of required in-house rules.
rules in place to facilitate timely and accurate disclosure ofimportant corporate information.

compliance measures.
2. The Company shall enhance its Code of Ethics, andprovide ethics and compliance training appropriate to eachposition in the Company.
3. An internal reporting system shall be established to directly
inform top executive management concerning any unlawful3) Rules relating to risk control against loss

act, or the possibility of illegal or improper activity that could

1. A Risk Management and Compliance Committee shall bedamage trust and confidence in the Company.

established to formulate and promote measures for
integrated risk control.
2. Control of each serious risk factor shall be assigned to a
specific section, which shall work to mitigate the risk factor
for which it is responsible.
3. The necessary in-house rules are in place and are carefully
observed to ensure integrated control of individual

4. The Company shall maintain a robust posture against
antisocial forces that threaten the order and safety of civilsociety. It shall reinforce this commitment in its Code of Ethics.
5. The Company shall form such organizations and develop
such rules as necessary to ensure that the Company and its
subsidiaries maintain appropriate financial information, andprepare and release reliable financial statements.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201157

Financial Section

3. The Company has the necessary structures and internal

Corporate Information

produced, stored and managed through the establishment

Overview of Operations

such rules as necessary to ensure that the Company and its

2. The Company ensures correct handling of classified

Message from the Management

standard of good administrators. The Board is also charged

Operating Performance

regulations and the Company’s Articles ofCorporate Information

Corporate GovernanceSpecial Features

Message from the Management

Operating Performance6) Systems to ensure the Yamaha Motor group(composed of the Company and its subsidiaries)
conducts business appropriately
1. In order to assure proper business conduct by the group,

Directors and employees shall report on the following mattersto the Board of Corporate Auditors periodically, or, whennecessary, at its request.

sectors in charge of each subsidiary, responsibilities, authority,

1. Establishment and operation of internal control systems,

management methods of subsidiaries, and other rules.
2. In order to audit the appropriateness of operations of theCompany and its subsidiaries, an internal auditing sector
shall be established under the direct control of the President
and Chief Executive Officer.
3. Each Japanese subsidiary, in principle, shall have a Boardand related subjects
2. Results of internal audits conducted by the internal audit
section
3. Operation of the internal reporting system, and receipt ofreports
4. Director malpractice and/or acts conducted in violation ofof Directors and a Corporate Auditor; overseas subsidiaries

the law or the Company’s Articles of Incorporation

shall design their organizations in accordance with local law.

5. Incidents that could cause the Company considerable

4. At least one Director of each subsidiary shall concurrently

damageserve as a Director, Executive Officer or employee ofanother company in the group.
guidance and training to subsidiaries to ensure that they

Overview of Operations

to the Board of Corporate Auditors

internal policies shall be established, defining the controlling

5. The section with oversight for financial information offers
handle financial information appropriately.
6. The section with oversight for risk management provides

10) Other systems to ensure effective auditing by
Corporate Auditors
1. The Representative Directors shall meet with the Corporate
Auditors periodically to exchange opinions.
2. Corporate Auditors shall attend important meetings ofsubsidiaries with guidance and training on risk management

bodies including the Management Committee, the Risk

practices.

Management and Compliance Committee, and the7. The section supervising compliance shall provide
subsidiaries with guidance and education on compliance.
Corporate Information

9) Rules concerning Directors and employees reporting

Expanded Executive Committee.
3. The internal audit section shall explain its internal audit plan
to Corporate Auditors in advance.

7) Employee to assist Corporate Auditors

4. The minutes of the Management Committee meetings and

A Corporate Auditors’ Office shall be established with a full-time

any other meetings that the Board of Corporate Auditors

employee dedicated to assisting the Corporate Auditors in the

may specify, and Decision-making Forms shall be madeexecution of their duties.

available for Corporate Auditors’ perusal.
5. Auditing assistance from outside experts shall be secured

Financial Section8) Employee assisting Corporate Auditors’ independence
from Directors
1. Any dismissal or personnel changes concerning theemployee assisting Corporate Auditors in the execution of
their duties shall be approved by the Board of Corporate
Auditors in advance.
2. No employee assisting Corporate Auditors in the executionof their duties shall concurrently hold a post involving otherbusiness operations. The employee shall perform his or her
duties under the direction of the Corporate Auditors, whose
opinions shall be taken into consideration in evaluating theemployee.

58

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

when deemed necessary by the Board of Corporate
Auditors.

Equity Holdings
Operating Performance1) Total number of companies and amounts on thebalance sheet for equity holdings that are not held forthe purpose of pure investment
68 companies¥16,154 million

2) Companies, number of shares, balance sheet
Message from the Management

amounts and purpose of holding for equity holdingsthat are not for pure investment

Fiscal 2010
Purpose ofholding

10,326,701

10,409To perpetuate a business relationship as companies utilizing a common
brand

Toyota Motor Corporation

501,210

1,613

To maintain a stable business relationship

Nippon Seiki Co., Ltd.

1,217,502

1,184

To maintain a stable business relationship613,750750

To maintain a stable business relationship

2,288,340734

To maintain a stable business relationship as a ﬁnancial institution withwhich the Company has transactions

825,706618

To maintain a stable business relationship as a ﬁnancial institution withwhich the Company has transactions

Yamaha Corporation

Imasen Electric Industrial Co., Ltd.
Mizuho Financial Group, Inc.
The Shizuoka Bank, Ltd.

542

To maintain a stable business relationship

100,000

151

To maintain a stable business relationship

Sumitomo Mitsui Financial Group, Inc.

46,355134

To maintain a stable business relationship as a ﬁnancial institution withwhich the Company has transactions

Ahresty Corporation

134,722116

To maintain a stable business relationship

Corporate Information

6,457,395

Stanley Electric Co., Ltd.

Enshu Limited

Overview of Operations

Balance sheet
amounts(Millions of yen)

Special Features

Number ofshares(shares)Companies

Financial Section

Yamaha Motor Co., Ltd. ⎜ Annual Report 201159

Corporate Information

Corporate GovernanceOperating Performance

Fiscal 2011

Companies
Yamaha Corporation

Number ofshares(shares)
10,326,701

Message from the Management

Toyota Motor Corporation

Special Features
Overview of Operations
Corporate Information

Purpose ofholding

7,290 To perpetuate a business relationship as companies utilizing a common brand
1,285 To maintain a stable business relationship

Sumitomo Metal Industries, Ltd.

8,400,000

1,176 To maintain a stable business relationship

Nippon Seiki Co., Ltd.

1,217,502

1,016 To maintain a stable business relationship

KOITO MANUFACTURING CO., LTD.
Mizuho Financial Group, Inc.
The Shizuoka Bank, Ltd.
Enshu Limited

913,000
2,288,340
825,706
6,457,395

986 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the671
Company has transactions
To maintain a stable business relationship as a financial institution with which the
669
Company has transactions
574 To maintain a stable business relationship

Imasen Electric Industrial Co., Ltd.

613,750

528 To maintain a stable business relationship

Akebono Brake Industry Co., Ltd.

1,347,800

447 To maintain a stable business relationship

EXEDY Corporation

105,000

233 To maintain a stable business relationship

JTEKT CORPORATION

236,000

178 To maintain a stable business relationship

STANLEY ELECTRIC CO., LTD.

100,000

Sumitomo Mitsui Financial Group, Inc.

46,355Ahresty Corporation

134,722

113 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the99Company has transactions
49 To maintain a stable business relationship

MIKUNI CORPORATION

300,794

Mitsubishi UFJ Financial Group, Inc.

113,200

Sumitomo Mitsui Trust Holdings, Inc.

149,000

TOBA, INC.

10,000Nomura Holdings, Inc.

20,600JEUGIA Corporation

33,00043 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the37
Company has transactions
To maintain a stable business relationship as a financial institution with which the33
Company has transactions
15 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the4Company has transactions
3 To maintain a stable business relationshipFuji Heavy Industries Ltd.

1,000

0 To collect information such as the method of providing information to shareholders

Canon Inc.

100

0 To collect information such as the method of providing information to shareholders

Eisai Co., Ltd.

100

0 To collect information such as the method of providing information to shareholders

Hamamatsu Photonics K.K.

100

0 To collect information such as the method of providing information to shareholders

Honda Motor Co., Ltd.

100

0 To collect information such as the method of providing information to shareholders

Kawasaki Heavy Industries, Ltd.
Financial Section

501,210

Balance sheet
amounts(Millions of yen)

1,000

0 To collect information such as the method of providing information to shareholders

Bridgestone Corporation

100

0 To collect information such as the method of providing information to shareholders

SUZUKI MOTOR CORPORATION

100

MITSUI & CO., LTD.

100

0 To collect information such as the method of providing information to shareholders
To collect information such as the method of providing information to0
shareholders

60

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

3) Pure investment equity holdings

Takeover Defense Measures Against Attempts ofMass Acquisition of the Company’s Shares

Operating Performance

No related items.

3. The Corporate Value Committee is required to issue an
Advisory Resolution if a Takeover Proposal satisfies all of therequirements listed in items 1) to 7) of main clause II-2. In theof opinions offered in “Takeover Defense Measures in Light ofPlan, moreover, it was set forth that, even if a Takeover

Recent Environmental Changes” made by Corporate Value

Proposal does not satisfy some of the requirements, in cases

Study Group of the Ministry of Economy, Trade and Industry andwhere it is found reasonable in light of the protection anddated June 30, 2008, and other considerations. The following

increase of the Company’s corporate value and thewere the points reviewed to further protect the interests of theshareholders’ common interests, an Advisory Resolution shallshareholders such as by securing the swift operation of the Plan.

be issued.

of four Outside Directors and Outside Corporate Auditors whose

4. By withdrawing reference to “interests of stakeholders” andindependence is secured, and arbitrariness is excluded from the“fundamental value” in the judgment guidelines for ascertaining

operation of the Plan.

whether or not to issue an Advisory Resolution for theSpecial Features

As part of the Plan, the Corporate Value Committee is composed

Message from the Management

The revisions this fiscal year of the Plan are based on the content

Takeover Proposal, and other measures, the amended
provisions were set forth to prevent a broad interpretation ofof the period for the Company to respond to the Takeover

what interests should be protected, rather than determining

Proposal beyond a reasonable time period, in addition towhether the Takeover Proposal serves to protect and increase

clearly specifying the provisions that enable the Company to

the Company’s corporate value and the shareholders’request to the party making the Takeover Proposal thecommon interests, by referring to interests of stakeholders

provision of information, the maximum limit of the Information

other than shareholders.

Overview of Operations

1. To swiftly operate the Plan and avoid unnecessary prolonging

Provision Request Period was basically set at 60 business5. Provisions clearly specifying that when an Advisory Resolution

first information provision request to the proposer and it washas been issued by the Corporate Value Committee, the Board

made our Basic Policy that the period of examination andof Directors must “promptly” adopt a Confirmation Resolution

discussion by the Corporate Value Committee shall start uponunless there are no special grounds to rule that adopting suchthe expiration of the Information Provision Request Period evena Confirmation Resolution obviously violates the Director’s duty

in cases where necessary information has not been adequatelyof care, were set forth.
6. Provisions clearly mentioning that “delivery of cash shall not be

2. Provisions clearly specifying that the Corporate Value
Committee’s period for examination and discussion shall notmade” to a Specific Acquirer and Related Parties as the priceof forcible acquisition of stock acquisition rights, were set forth.

be extended without reasonable cause, were set forth.

Please refer to the following URL for more information.
http://www.yamaha-motor.co.jp/global/news/2012/0323/prevent.html

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

61

Financial Section

provided.

Corporate Information

days calculated from the day the Board of Directors made theCorporate Information

Directors, Corporate Auditors and Executive Officers
As of March 23, 2012

Financial Section

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance

Board of Directors

A President and Representative Director

Hiroyuki Yanagi

B Representative Director

April 1978: Joined the Company
April 2000: General Manager of Soude Factory, Production Control Division, MC Operations andGeneral Manager of Morimachi Factory, Production Control Division, MC Operationsof the Company
April 2003: President of MBK IndustrieFebruary 2004: Managing Director of Yamaha Motor India Pvt. Ltd.
(presently India Yamaha Motor Pvt. Ltd.)
January 2006: Senior General Manager of China Business Operation of the Company
January 2007: Senior General Manager of SyS Operations, MC Headquarters
March 2007: Executive Officer of the Company and Senior General Manager of SyS Operations,
MC Headquarters
January 2009: Executive Officer of the Company and Executive General Manager of
Manufacturing Center
March 2009: Senior Executive Officer of the Company and Chief General Manager of
Manufacturing Center
November 2009: Senior Executive Officer of the Company and Senior General Manager of MC
Business Section, MC Business Operations
March 2010: President, Chief Executive Officer and Representative Director
June 2011: Director of Yamaha Corporation (to present)
January 2012: President, Chief Executive Officer and Representative Director of the Company
and Chief General Manager of Motorcycle Business Operations (to present)

April 1976: Joined the Company
June 1999: General Manager of R&D Division, AM Operations of the Company
April 2002: Senior General Manager of AM Operations
June 2003: Executive Officer of the Company, Senior General Manager of AM Operations
March 2005: Director of the Company, Senior General Manager of AM Operations
March 2007: Senior Executive Officer and Director of the Company, Senior General
Manager of AM Operations
January 2009: Senior Executive Officer and Director of the Company, Chief General
Manager of Marine Business Operations and Executive General Manager
of WV Business Unit, Marine Business Operations
November 2009: Managing Executive Officer and Representative Director of theCompany, Chief General Manager of Marine Business Operations andExecutive General Manager of WV Business Unit, Marine Business
Operations
March 2010: Senior Managing Executive Officer and Representative Director of theCompany, Chief General Manager of Marine Business Operations andExecutive General Manager of WV Business Unit, Marine Business
Operations
January 2011: Senior Managing Executive Officer and Representative Director of theCompany, Chief General Manager of Marine Business Operations
January 2012: Senior Managing Executive Officer and Representative Director of theCompany, Chief General Manager of Technology Center and Chief General
Manager of Marine Business Operations (to present)

C Director

D Director

Hiroyuki Suzuki
April 1978: Joined the Company
May 1997: Director of PT. Yamaha Indonesia Motor Manufacturing
September 2003: Vice President of PT. Yamaha Indonesia Motor Manufacturing
January 2006: General Manager of 2nd SyS, SyS Operations, MC Headquarters of theCompany
January 2008: Senior General Manager of Quality Assurance Operations, MC Headquarters
March 2008: Executive Officer of the Company, Senior General Manager of Quality
Assurance Operations, MC Headquarters
November 2009: Executive Officer of the Company, Executive General Manager of
Manufacturing Center
March 2010: Senior Executive Officer and Director of the Company, Chief General Manager
of Manufacturing Center
November 2010: Senior Executive Officer and Director of the Company, Managing Director ofIndia Yamaha Motor Pvt. Ltd. (to present)

62

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

G

E

F

D

Takaaki Kimura

Kozo Shinozaki
April 1978: Joined the Company
April 1999: Vice President of Siam Yamaha Co., Ltd. (presently Thai Yamaha Motor Co., Ltd.)
April 2007: General Manager of Finance & Accounting Division of the Company
January 2009: Senior General Manager of Finance & Accounting Control, Global Corporate
Administrative Center and General Manager of Finance & Accounting
Division, Global Corporate Administrative Center
January 2010: Senior General Manager of Finance & Accounting Section and General
Manager of Finance & Accounting Division, Finance & Accounting Section
February 2010: Senior General Manager of Finance & Accounting Section
March 2010: Senior Executive Officer and Director of the Company, Senior General
Manager of Finance & Accounting Section
January 2011: Senior Executive Officer and Director of the Company, Senior General
Manager of Corporate Planning & Finance Section and General Manager ofFinance & Accounting Division, Corporate Planning & Finance Section
February 2011: Senior Executive Officer and Director of the Company, Senior General
Manager of Corporate Planning & Finance Section (to present)

B

A

I

C

J

H

E Director

Nobuya Hideshima
April 1978: Joined the Company
May 1999: General Manager of Production Control Department, Production Control Division, MC
Operations of the Company
May 2001: General Manager of GSyS Planning Department, GSyS Management Division, GEM Center,
MC Operations and General Manager of GSyS Production Control Department, GSySManagement Division, GEM Center, MC Operations
April 2003: President of Yamaha Motor Manufacturing Corporation of America
January 2006: General Manager of 3rd SyS, SyS Operations, MC Headquarters
January 2008: Senior General Manager of Procurement Operations, MC Headquarters
January 2009: Executive General Manager of Procurement Center
March 2009: Executive Officer of the Company, Executive General Manager of Procurement Center
March 2010: Senior Executive Officer of the Company, Chief General Manager of Procurement Center
March 2011: Senior Executive Officer and Director of Yamaha Motor Co., Ltd., Chief General Manager
of Procurement Center (to present)

*Outside Director
G Director

Masahiro Takizawa

Yoshiaki Hashimoto

H Director

I

Yuko Kawamoto*Director
Masamitsu Sakurai*

J Director

Mitsuru Umemura*

April 1966: Joined the Ricoh Company, Ltd.
June 1992: Director of Ricoh Company, Ltd.
June 1994: Managing Director of Ricoh Company, Ltd.
April 1996: President and Representative Director of Ricoh Company, Ltd.
June 2005: Chairman of the Board, President and Chief Executive Officer of Ricoh Company, Ltd.
July 2006: Director of Coca-Cola West Holdings Co., Ltd. (presently Coca-Cola West Co., Ltd.)(to present)
April 2007: Chairman of the Board and Representative Director of Ricoh Company, Ltd.
April 2007: Chairman of KEIZAI DOYUKAI (Japan Association of Corporate Executives)
April 2008: Chairman of the Board of Directors of The New Technology Development Foundation(to present)
June 2008: Director of OMRON Corporation (to present)
March 2011: Director of the Company (to present)
April 2011: Chairman of the Board and Director, Chairman of Ricoh Company, Ltd. (to present)

April 1975: Joined Nippon Gakki Co., Ltd. (presently Yamaha Corporation)
April 2000: President and Director of Yamaha Corporation of America
February 2001: Executive Officer of Yamaha Corporation
May 2003: Executive Officer of Yamaha Corporation and General Manager of MusicalInstruments Group of Yamaha Corporation
June 2003: Senior Executive Officer of Yamaha Corporation
June 2006: Managing Director of Yamaha Corporation
June 2007: President and Representative Director of Yamaha Corporation (to present)
March 2011: Director of Yamaha Motor Co., Ltd. (to present)

Overview of Operations

April 1982: Joined the Bank of Tokyo, Ltd. (presently The Bank of Tokyo-Mitsubishi UFJ, Ltd.)
June 1988: Graduated from Oxford Graduate School, Master’s Programme in Economics
September 1988: Joined Tokyo Office of McKinsey & Company
June 2001: Senior Expert, Tokyo Office of McKinsey & Company
April 2004: Professor, Graduate School of Finance, Accounting and Law, Waseda University (to present)
June 2004: Director of Osaka Securities Exchange Co., Ltd. (to present)
June 2006: Director of Monex Beans, Inc. (presently Monex Group, Inc.) (to present)
June 2006: Director of Resona Holdings, Inc.
June 2006: Corporate Auditor of Millea Holdings, Inc. (presently Tokio Marine Holdings, Inc.) (to present)
March 2009: Director of the Company (to present)
June 2011: Director of ITOCHU Corporation (to present)

Special Features

April 1977: Joined the Company
November 2001: General Manager of North American Business Division, SCM Center, MC Operationsof the Company
April 2004: General Manager of Sales & Marketing Division, RV Division, MC Operations
July 2006: General Manager of RV Sales & Marketing Division, RV Company
January 2007: General Manager of Human Resources Development Division
January 2009: Senior General Manager of General Affairs Control, Global Corporate Administrative
Center and General Manager of Human Resources Development Division, Global
Corporate Administrative Center
March 2009: Executive Officer of the Company, Senior General Manager of General Affairs Control,
Global Corporate Administrative Center and General Manager of Human Resources
Development Division, Global Corporate Administrative Center
January 2010: Executive Officer of the Company, Senior General Manager of General Affairs Section
and General Manager of Human Resources Development Division, General Affairs
SectionFebruary 2010: Executive Officer of the Company, Senior General Manager of Human Resources &General Affairs Section
March 2010: Senior Executive Officer of the Company, Senior General Manager of Human Resources& General Affairs Section
March 2012: Senior Executive Officer and Director of the Company, Senior General Manager of
Human Resources & General Affairs Section (to present)

MC: Motorcycle
SyS: System Supplier
AM: Automotive
WV: Water Vehicle
GEM: Global Engineering & Manufacturing
GSyS: Global System Supplier
CV: Commuter Vehicle
SCM: Supply Chain Management
RV: Recreational Vehicle

Message from the Management

April 1978: Joined the Company
June 1985: Graduated from the University of Pittsburgh Graduate School of Engineering,
Department of Management Science and Engineering
April 2000: General Manager of Business Planning Department, CV Operations of the Company
October 2002: Senior General Manager of China Business Operations, General Manager ofBusiness Planning Department, MC Operations and General Manager of China
Business Strategy Department, China Business Operations, MC Operations
February 2004: President of MBK Industrie
July 2007: General Manager of Corporate Planning Division of the Company
January 2009: Senior General Manager of Corporate Planning Control, Global Corporate
Administrative Center and General Manager of Corporate Planning Division,
Global Corporate Administrative Center
March 2009: Executive Officer of the Company, Senior General Manager of Corporate Planning
Control, Global Corporate Administrative Center and General Manager of Corporate
Planning Division, Global Corporate Administrative Center
December 2009: Executive Officer of the Company, General Manager of Corporate Planning
Division
March 2010: Senior Executive Officer of the Company, Senior General Manager of Corporate
Planning Section and General Manager of Corporate Planning Division, Corporate
Planning Section
January 2011: Senior Executive Officer of the Company, Chief General Manager of Business
Development Operations
March 2011: Senior Executive Officer and Director of the Company, Chief General Manager ofBusiness Development Operations (to present)

Operating Performance

F Director

Corporate Information

Corporate Auditors**Outside Corporate Auditor

Shigeki Hirasawa

April 1978: Joined the Company
April 2000: General Manager of Finance & Accounting Division, Administrative Operations of theCompany
July 2006: General Manager of Finance & Accounting Division of the Company
May 2007: President of Yamaha Motor do Brasil Ltda.
June 2010: Corporate Auditor of Yamaha Corporation
March 2011: Standing Corporate Auditor of the Company(to present)

December 1981: Joined the Company
July 2006: General Manager of Legal & Intellectual Property Division of the Company
February 2008: Senior Vice President of Yamaha Motor Europe N.V.
March 2011: Standing Corporate Auditor of the Company(to present)

Norihiko Shimizu**

Tetsuo Kawawa**

April 1963: Joined Tokio Marine & Fire Insurance Co., Ltd. (presently Tokio Marine & Nichido Fire
Insurance Co., Ltd.)
June 1967: Graduated from Graduate School of Business, Stanford University
September 1967: Joined Boston Consulting Group, Inc.
December 1970: Vice President of Boston Consulting Group, Inc.
July 1987: President of Shimizu & Co., Inc.
June 1994: Corporate Auditor of Nissin Sugar Manufacturing Co., Ltd.
April 1998: Professor, Graduate School of Asia-Pacific Studies, Waseda University
October 2000: Professor, Graduate School of International Corporate Strategy, Hitotsubashi University
April 2003: Visiting Professor, Graduate School of International Corporate Strategy, Hitotsubashi University(to present)
November 2004: Statutory Auditor of Fast Retailing Co., Ltd.
(to present)
November 2005: Statutory Auditor of Uniqlo Co., Ltd.
March 2007: Corporate Auditor of the Company(to present)

April 1975: Registered as an attorney (Tokyo Bar Association: to present)
August 2002: Member of the Corporation Law (Modernization) Subcommittee, Legislative
Council of the Ministry of Justice
September 2002: Member of the Chief of the Special Commission of the Judicial Advisory
Committee of the Japan Federation of Bar Associations(to present)
June 2007: Corporate Auditor of Nisshin Seifun Group Inc.
(to present)
March 2009: Corporate Auditor of the Company(to present)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Financial Section

Yutaka Kume

63

Corporate Information

Directors, Corporate Auditors and Executive Officers

Financial Section

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance

Executive Officers
President andChief Executive Officer
Hiroyuki Yanagi

Senior Managing Executive
Officer
Takaaki Kimura

Chief General Manager of Motorcycle Business
Operations

Chief General Manager of Technology Center,
Chief General Manager of Marine Business
Operations, Chief General Manager of Design
Center and Chief General Manager ofAutomotive Business Unit

Senior Executive Officer
Hiroyuki Suzuki

Senior Executive Officer
Kozo Shinozaki

Senior Executive Officer
Nobuya Hideshima

Senior Executive Officer
Masahiro Takizawa

Managing Director of India Yamaha Motor
Pvt. Ltd.

Senior General Manager of Corporate Planning& Finance Section

Chief General Manager of Procurement
Center and Chief General Manager of Parts
Business Unit

Chief General Manager of Business
Development Operations

Senior Executive Officer
Yoshiaki Hashimoto

Senior Executive Officer
Kunihiko Miwa

Senior Executive Officer

Senior Executive Officer

Katsuaki Watanabe

Hajime Yamaji

Senior General Manager of Human
Resources & General Affairs Section, and Chief
General Manager of Product Assurance &Safety Promotion Center

Executive General Manager of 2nd Business
Unit, Motorcycle Business Operations

Chief General Manager of Manufacturing Center

President of Yamaha Motor Europe N. V.

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Ryouichi Sumioka

Toshizumi Kato

Yoichiro Kojima

Executive General Manager of 3rd Business
Unit, Motorcycle Business Operations and Chief
General Manager of Overseas Market
Development Operation Business Unit

President of Yamaha Motor Corporation, U.S.A.

Executive General Manager of Marine Engine
Business Unit, Marine Business Operations

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Souichi Sasagawa

Hiroshi Yoshii

Takahiko Goan

Masato Adachi

President and Representative Director of
Yamaha Motor Powered Products Co., Ltd.

Senior General Manager of Manufacturing
Technology Section, Technology Center

Executive General Manager of Overseas Market
Development Operation Business Unit

Executive General Manager of Boat Business
Unit, Marine Business Operations

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Masanori Kobayashi

Tsuneji Suzuki

Hiroaki Fujita

Masaru Ono

Executive General Manager of Product Assurance& Safety Promotion Center, General Manager of
Safety Promotion & Traffic System Division,
Product Assurance & Safety Promotion Center
and General Manager of Communications-Linked
BIKEs Promotion Division, Technology Center

President of PT. Yamaha Indonesia Motor
Manufacturing and President of PT. Yamaha
Motor Manufacturing West Java

Executive General Manager of IM Business
Unit, Business Development Operations andGeneral Manager of Quality Assurance Division,
IM* Business Unit, Business Development
Operations and President and Representative
Director of i-Pulse Co., Ltd.

Executive General Manager of Parts
Business Unit

Executive Officer

Executive Officer

Katsuhito Yamaji

Toshinori Kuromoto

Senior General Manager of Engine Manufacturing
Section, Manufacturing Center and General
Manager of Engine SyS Engineering Division,
Engine Manufacturing Section, Manufacturing
CenterExecutive General Manager of 1st Business Unit,
Motorcycle Business Operations and Executive
General Manager of Design Center

64

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

*IM: Intelligent MachineryCorporate Information

Corporate Governance and Outside Directors

In corporate management, governance refers to a structure and rules for achieving

has become important because in the age of global competition and constant technologicalinnovation, having a good “compass” is the key to the company’s successful performance.
This compass—governance—provides disciplines on which a company is managed.

Operating Performancesustainable growth for the company while coordinating its diverse stakeholders. GovernanceIn an uncertain operating environment, effective checks and balances is a crucial
Message from the Management

element for executive leadership. Because company leaders need to address incessantchanges in customers’ needs, their thinking must be objective and incorporate a diverse
range of viewpoints in decision making.
Outside Director
Yuko Kawamoto

Governance is the framework for successfully managing this process, with external
governance supplementing internal governance. Internal governance is a structure within thecompany’s organization, while the capital markets and outside directors perform the role ofSpecial Features

external governance.
Human errors cannot be eradicated. Corporate governance, while aiming to increase
corporate value, is to establish the system that can quickly identify and rectify those errors
within organizations on a daily basis. For this purpose, it is important for both managers andorganizations to have objective self-awareness and the ability to correct mistakes on their

It is corporate managers who have a detailed understanding of the company’sbusiness, and manage daily operations in order to increase corporate value. Outside directors

Overview of Operations

own, and for top management to take the initiative in this process.

share the goal of increasing corporate value with managers, but their role is to oversee
management with “outside eyes.” At Board of Directors’ meetings, outside directors seek

important role by asking questions to make managers “aware,” so that as they seek solutions
to difficult issues they do not become overly subjective in their thinking or try to resolve theissues in terms of only short-term solutions. In conducting this task outside directors need to

Corporate Information

clarification regarding what are the bases of their decision making. They also play an

maintain close communication with managers. To this end, I strive to understand Yamaha
Motor’s products and customers, markets and competitors, and factories and dealerships.

levels and irreplaceable human resources. Under strong leadership, management works as aunited team, and is noteworthy for its openness as it constantly seeks the views ofshareholders, customers and employees. As a Japan-based manufacturer, the Company
must of course continue to work to adapt quickly to changes in markets and customers’
needs around the world. Using my experience, I hope to contribute to Yamaha Motor byworking hard to continuously ensure that management makes the right decisions.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

65

Financial Section

Yamaha Motor is a robust and vibrant company that possesses technologies of global

Corporate Information

Corporate Social Responsibility

Operating Performance

Please refer to the following URL for more information:
http://www.yamaha-motor.co.jp/global/about/csr/

Customers
Aiming to be an engineering, manufacturing and marketing enterprise that gives
customers a sense of Kando

Overview of Operations

Special Features

Message from the Management

Engineering, manufacturing and marketing creates the value that is provided to customers. Yamaha Motor
always takes a customer perspective as we plan, develop, manufacture, sell and service products for mobility,
without forgetting the importance of “looking outward.” By enhancing the quality, safety and originality ofmobility products, we continue to provide value that exceeds customers’ expectations.

Smart Power creating dreams for the next
generation

renovating showrooms and facilities, staff training to teachYamaha Motor released the Passol, the first mass-produced

skills in explaining our products, and building supply structureselectric motorcycle, in 2002, and with next-generation,

for customers who do not live near dealers.

environmentally friendly engines that reduce fuel consumption,

appropriate manners for dealing with customers and develop

In 2011, in particular, we made progress in strengthening

we have been aggressively developing new power sources

our “3S” policy—(motorcycle) Sales, (after-sale) Service andthat we call Smart Power.

(sales of) Spare parts—to comprehensively raise the level of

The EC-03 Electric Commuter Vehicle, released incustomer satisfaction in the ASEAN market. Customers’

September 2010, incorporates a plug-in system that allows

satisfaction with the sales services they experience increases

for recharging from a residential power source, and by

confidence in the Yamaha brand, and in this way we are

December 2011, domestic unit sales had reached 2,000

establishing strong loyalty in the ASEAN market.

units. Support for the PAS Electrically Power Assisted Bicycle
office workers for commuting, as well as among government

Globally promoting and developing activities forsafe driving

offices and companies for their operating activities, against a

The Yamaha Motor Group holds Yamaha Riding Academy

backdrop of increased health consciousness and(YRA) courses around the world to improve customers’ safe

environmental awareness.

driving skills. These courses integrate and organize the three

Financial Section

Corporate Information

has been growing among housewives, seniors, students and

In November 2011, we strengthened our partnership withelements of promoting safe driving, promoting motor sports

Toyota Motor Corporation and announced the Tsunagaru Bikeand promoting products in product areas including motorcycles,(Communications-linked, Next-generation Vehicles) Service,

ATVs, personal watercraft and snowmobiles.

which will pave the way for new traffic systems through the

In March 2011, Yamaha boat license schools added a

joint use of recharging and information infrastructures, andnew “Class 2 Practical Test Exemption Course,” which allows

vehicle sharing. Smart Power will play a role in next-generation

boat enthusiasts to obtain a small boat operator license (atraffic infrastructures that open up even greater possibilities forClass 2 license) without taking the practical test. This course

mobility.

is being steadily rolled out at licensing centers in the Kanto
region, and is contributing to an increase in the number of

Building confidence in ASEAN through the “3S”
policyThe Yamaha Motor Group is striving to bolster its
comprehensive sales services in ASEAN, Central and SouthAmerica, and other regions around the world. This includes

66

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

people obtaining boat licenses.

Operating Performance

Employees
Creating an organization to facilitate co-ownership of value from a global perspective
The Yamaha Motor group strives to create workplaces that respect diversity, with the aim of achieving anorganizational structure based on sharing ideas and the same high ambitions and spirit, cooperation, and joy in

Message from the Management

our work among the company and its employees from a global perspective.

Aiming for a workplace environment that fosters
autonomous creativity

Developing global human resources

The Yamaha Motor group defines its relationship with employees

around the world, Yamaha Motor is aggressively working to

as a business partnership, and the company’s role as providing

cultivate human resources that are increasingly able to operate

an attractive workplace for autonomous individuals. We aim

globally.

In line with the growth in the size of the group’s businesses

January 2012 to expand management training and promotion

advancement plans based on mutual assumptions, providing

opportunities for locally hired overseas staff. A Global Executive

programs for child and nursing care leave and post-retirement

Committee (GEC) was also established to promote a shared

reemployment, and promoting employment opportunities forunderstanding of Yamaha Motor’s management principles andpersons with disabilities.

corporate DNA. We are also working to provide greater overseas

We are also promoting the creation of safe workplaceenvironments globally through programs including OSHMS*.

experience for Japanese staff, and to promote communication
between staff within and outside Japan.

*OSHMS: Occupational Safety & Health Management System

Corporate Information

Business Partners

Overview of Operations

A Global Executive Program (GEP) was launched instyles and a positive work–life balance by supporting careerSpecial Featuresto create workplaces that maintain a diversity of working

A global procurement and sales network based on a spirit of cooperation and fairness
As our procurement and sales structures become increasingly global, the Yamaha Motor group is establishingcooperative relationships with suppliers and dealers in Japan and around the world based on a spirit of mutual

Financial Section

trust and mutual benefit. We strive to maintain fairness in our dealings through compliance with the Ministry of
Economy, Trade and Industry’s Fair Trade Guidelines for the Automotive Industry in Japan, and with laws to protectcompetitiveness in other countries and regions, to establish partnerships that aim for mutual, sustainable growth.

Activities in supply chains

Activities at dealerships

We have established Green Procurement Guidelines with a

As our contact point with customers around the world, dealerships

view toward reducing environmental impact and efficiently

play an important role in conveying Yamaha’s “next sense ofusing resources and energy as a manufacturer of mobility

excitement.” By strengthening relationships with dealers throughproducts, and in July 2010 we formulated CSR Guidelines forregularly held dealer meetings, and activities to promote safe

Suppliers covering the areas of safety, quality and compliance.

driving and support local communities, the Yamaha Group is

By sharing information with suppliers, we are promoting fairbuilding a sales network that provides common value.

and clean procurement.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201167

Operating Performance

Corporate Information

Corporate Social Responsibility

The Community
Creating and sharing a sense of Kando through bonds with local communities
With a Corporate Mission of “offering new excitement and a more fulfilling life to people all over the world,”

Corporate Information

Overview of Operations

Special Features

Message from the Management

the Yamaha Motor group contributes to local communities and builds solid relationships of trust by making
maximum use of our products, technologies, human resources and facilities.

Smart Power assisting local governments andvitalizing tourist areas

Activities supporting earthquake-affected areas

The Yamaha Motor Group has been operating the PASCRU

struck on March 11, 2011, Yamaha Motor quickly provided

business since 2009, leasing vehicles to government offices

emergency goods including Yamaha inverter-type generators,

and companies to promote Smart Power as a means of next-

drinking water and emergency food supplies, with ¥100

generation mobility.

million worth of goods sent by March 15. We also provided

Kawaguchi City in Saitama Prefecture has been taking

139 PAS Electrically Power Assisted Bicycles to local

proactive steps to address global warming, and made effective

governments and emergency response teams in stricken

use of the PASCRU system in 2011 as part of a verification

areas as a means of communication and movement among

business for the introduction of next-generation vehicles.

evacuation centers and regional government offices. In

We have also made a major contribution to the vitalization

addition, a ¥20 million contribution, consisting of a corporateof tourist areas and regional cities by providing EC-03 Electric

donation and employee donations through employee labor

Commuter Vehicles to the Guru-Toku Cycle business inunions, was quickly provided via the Japan Red Cross Society.

Tokushima City, Tokushima Prefecture, and to the Tajimi City

When Thailand experienced severe flooding in OctoberElectric Commuter Vehicle Leasing Organization in Gifu

2011, Yamaha Motor, together with local group companies

Prefecture, which uses a solar power generation system toincluding Thai Yamaha Motor Co., Ltd., provided a total ofrecharge the commuter vehicles, and also by providing PAS¥30 million in relief goods including life jackets, water pumps

Electrically Power Assisted Bicycles to Rokkosan Pastureand boat engines.

and to Hoshino Station on the Maya Ropeway in Kobe.

Supporting employees’ voluntary social
contributions
Financial Section

Immediately following the Great East Japan Earthquake that

In addition to corporate social contribution activities, we havedeveloped a “40,000 People’s V Campaign,” using our intranet
to provide information to foster a sense of volunteerism amongour 40,000 group employees, as a means of supporting
employees’ voluntary social contribution activities. The system
was used by 40,294 people in 2011, achieving our target for
the fourth consecutive year.

68

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Operating Performance

The Environment
Existing in harmony with the global environment to achieve sustainable growthBased on our newly formulated Environmental Plan 2020, the Yamaha Motor group is striving to raise corporate
value through sustainable growth, by carrying out all of our corporate activities in harmony with the global

Message from the Management

environment and coexisting with a diversity of life and values.

Activities to conserve resources and energy

With our electrically power assisted bicycles and electric

The Yamaha Motor Group has set goals of 100% recycling for

motorcycles, Yamaha Motor is leading the way toward the

products and factories and ensuring long product life. We

achievement of a low-carbon society. We consider theendeavor to thoroughly incorporate the 3Rs—reduce, reuse,

reduction of greenhouse gas emissions to be the most critical

recycle—in each stage of our operations, from productenvironmental issue we face, and are striving to reduce

development and manufacturing to use and disposal, bygreenhouse gas emissions over the entire life cycle of our

reducing the number of parts in our products and reducing

products—from product development and manufacturing totheir size, using parts made for reusable materials, anduse and disposal. We have also installed solar and windexpanding the application of a system that collects data on

power generation systems at our Nakase Plant (Hamamatsu

parts recyclability.

Special Features

Activities to reduce CO2 emissions

Overview of Operations

City, Shizuoka Prefecture), as we accelerate our efforts to
reduce greenhouse gas emissions across all of our business

Activities to protect biodiversity

activities.

Prior to starting construction of our motorcycle test course in
Kikugawa City, Shizuoka Prefecture in June 2011, Yamaha

Activities to reduce the use of substances thathave a negative environmental impact

Motor conducted an environmental assessment on the site

The Yamaha Motor group identifies and reports on emissions

Shizuoka prefectural government in the form of a Naturaland waste generated that includes chemical substances thatEnvironment Conservation Agreement. We are working toare harmful to humans and the environment, in compliance

protect the natural environment and maintain the biodiversity

with the regulations of each country in which we operate.

of the surrounding area by preserving existing vegetation

More than 99% of the substances released from our facilities,

within a fixed distance from the outer perimeter of the facility,

subject to reporting under the Pollutant Release and Transfer

and ensuring that no damage is done to the current plant

Register (PRTR) system, are volatile organic compounds (VOC).

environment in the forests beyond that area.

and in surrounding areas, and presented the results to the
Corporate Information
Financial Section

Almost all of these are generated during painting processes,
and we are working to address this through the use of low-

Raising environmental awareness groupwide

VOC paints, improved painting efficiency and waste reduction.

The Yamaha Motor Group is striving to raise the level of

We are also strengthening our management of chemical

environmental protection activities across the entire group

substances in products sold in Europe as per the European

through the development of our original Global Environmental

Community’s regulations for the Registration, Evaluation,

Information Network System (G-YECOS) and the use of our

Authorisation and Restriction of Chemicals (REACH).

intranet to foster an eco-minded perspective.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

69

69

Corporate Information

Organization
Yamaha Motor Co., Ltd., as of January 1, 2012

Integrated Auditing Division

General Meeting of Shareholders
Operating Performance

Board of Corporate Auditors

Human Resources & General Affairs Section

Corporate Auditors’ Ofﬁce

Human Resources Development Division
General Affairs Division

Board of Directors

Group Administration Division
President & CEO*Management Committee

Legal & Intellectual Property Division

Risk Management and Compliance Committee

Public Relations & Advertising Division

Message from the Management

Tokyo Ofﬁce
Corporate Planning & Finance Section
Corporate Planning Division
Finance & Accounting Division
Business Management Division
Logistics and Security Trade Division

Special Features

Process & IT* Division
CGM*

Product Assurance & Safety Promotion Center

CGM*

Design Center

Technology Center
Research & Development Section
Manufacturing Technology Section
Technology Infrastructure Section
Advanced Development Section

Overview of Operations

Manufacturing Center
Manufacturing Planning Section
Body Manufacturing Section
Engine Manufacturing Section
Procurement Center
Procurement Section

Corporate Information

Cost Innovation Section
Motorcycle Business Operations
1st Business Unit
2nd Business Unit
3rd Business Unit
Engineering Section
Quality Assurance Section
Financial Section

Marine Business Operations
Marine Engine Business Unit
Engineering Section
Water Vehicle Business Unit
Boat Business Unit
CGM*

Automotive Business Unit

CGM*

Overseas Market Development Operation Business Unit

*Abbreviations:

CGM*

Parts Business Unit

CEO: Chief Executive Ofﬁcer

Business Development Operations

CGM: Chief General Manager

IM* Business Unit

IT: Information Technology

RV* Business Unit

RV: Recreational Vehicles

Smart Power Vehicle Business Unit

IM: Intelligent Machinery

Unmanned Aerial Vehicle Business Development Section
Pool Business Development Section

70

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Corporate Information

Risk Factors

Most of the motorcycles and outboard motors sold in volumerisks are considered to have the potential to significantly affectby the group in North America and Europe are manufactured

investor judgments about the group. Forward-looking statements

in Japan and exported as completed products. Therefore,

in this section are based on the information available to thefluctuations in the exchange rates of the Japanese yen againstgroup as of the submission date of the securities reportmajor currencies, such as the U.S. dollar and the euro,(March 26, 2012).

significantly impact not only the group’s sales, but also profits
and other results. Generally, the appreciation of the yen
against other currencies has a negative impact, while the yen’s

For risks discussed below, to which our business is normallydepreciation positively affects the group’s business performance.

exposed, the Yamaha Motor group (the “group”) incorporates

Although the group uses hedging instruments in an effort tohedging policies in its business plans, and takes hedging

minimize the negative effects of the Japanese yen’s fluctuations

measures in its Medium-Term Management Plan and budgets.

against the U.S. dollar, the euro and other major currencies,

The group also closely monitors conditions and developments,

dramatic exchange rate fluctuations may impact plannedand promptly responds to changes. Nevertheless, if risks

procurement, production and marketing activities.

emerge that exceed the scope for which means of control

Furthermore, by utilizing hedging instruments, the group

have been prepared, the group’s business results and financial

potentially loses profits that would result from the exchange

standing could be adversely impacted.

rates moving in the direction opposite the hedge forecast.

Special Features

Risks Related to Business Operations

Message from the Management

Currency Fluctuationsetc., which are stated in the securities report, the following

Operating Performance

Of the matters related to business and accounting conditions,

The group’s business results and financial standing are statedbased on the consolidated financial statements, prepared by

The group conducts businesses in nations and regions aroundtranslating local-currency-denominated business results of thethe globe, including Japan, North America, Europe and Asia.

Company’s overseas subsidiaries into yen. Thus, fluctuations

In these markets, purchasing our products may not bein the exchange rates of the yen against these currencies may

essential or imperative for consumers. If demand in thesehave a significant impact on their results, and, in turn, themarkets were to shrink more than it has already due to such

Company’s consolidated financial statements.

euro zone and rising interest rates to curb inflation in emerging
markets, the group’s business development may be negatively
impacted.

Business Operations in Overseas Markets
The group does business in many nations and regions aroundthe globe. On a consolidated basis, the ratio of overseas sales
to net sales for the fiscal year ended December 31, 2011 stoodMarket Competition
The group is exposed to intense competition in many of theprevent the group from advantageous product pricing. Intense
market competition increases pressure on group profits, andthis profit squeeze can become especially pronounced whenmarket demand slackens. Although the group must continue
introducing attractive new products in order to maintain or
gain an advantage amid tough competition, there is no assurance
that the group can in fact allocate sufficient resources todevelop such new products. Furthermore, there is no way toassure that the group can successfully market the products it
does develop with the resources invested.

at 88.5%. Particularly in the motorcycle business, sluggish
sales in developed nations make the group increasingly
dependent on sales and profits in Asian and other emerging
markets. In the more strategically important of these markets,
the group may forecast growth in demand or anticipate
developments that will strongly impact neighboring nations
and regions. In these situations, the group may need to makelarge strategic investments long before any profit can be
expected. If factors that could not be anticipated when theinvestment decisions were made should subsequently
materialize in those nations and regions, such as changes ingovernments’ currency exchange policies, foreign investment
policies, and tax systems, demand may decrease
substantially, possibly delaying or entirely preventing recoveryof the investment.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

71

Financial Section

markets in which it does business, and such competition may

Corporate Information

developments as financial instability in countries bordering theOverview of Operations

Economic Conditions

Message from the Management

Operating Performance

Corporate Information

Risk Factors

Joint Ventures

may materialize when the land is sold, thus negatively

In some nations and regions, the group operates businesses

impacting the business performance of the group.

through joint ventures with local enterprises, due to legal andother requirements in those nations and regions. These joint-

Natural Disasters and Others Factors

venture businesses may be affected by factors involving the

Natural disasters, diseases, wars, terrorism and othergroup’s business partners, such as the policies or conditions

unforeseen events may affect the operations of the group,of their management.

directly or indirectly. Specifically, the occurrence of any ofthese incidents or events could delay or disrupt group

Dependence on Suppliers for Procurement of Certain
Raw Materials and Parts
The group procures raw materials, parts and other goods

other facilities are directly damaged, substantial expenditure
may be required to repair or replace the damaged facilities.

used to manufacture products from many suppliers outside
the group, and relies heavily on several key suppliers forcertain items. Whether the group can continue procuring

Special Features

operations. Furthermore, if group manufacturing plants orthese raw materials and parts efficiently at low cost depends
on many factors, some of which, such as market conditions
and natural disasters, are not within the group’s control.

Significant Risks Related to the Business Foundation
The group has identified significant risks which may negatively
impact its business foundation, and which require priority
countermeasures. The Risk Management and Compliance
Committee conducts integrated management of such risks
and implements the countermeasures. As for individual risks

Dependence on Corporate Customers
Overview of Operations

The group not only supplies consumer products such as
motorcycles and outboard motors to consumer markets, butalso automobile engines to automakers. The group’s sales
could be affected by factors outside the group’s control, suchas the management and procurement policies of the client

Financial Section

Corporate Informationcompanies.

considered significant, the Company is to clarify the department
in charge, whereupon that department works to decrease therisk. Should even more serious risks than these materialize,
an Emergency Countermeasures Headquarters headed by
the President and Chief Executive Officer will be organized, inorder to establish a system for minimizing the damage andnegative effects. Main risks of this nature are described below.
If an incident more severe than assumed in contingency

Retirement Benefit Obligation
The group’s employees’ retirement benefits and the obligation

planning occurs, it may negatively affect business results ofthe group.

thereto are computed by applying actuarial assumptions to
the discount rate and the expected rate of return on the

Product Liability

pension asset fund. Should the actual results differ from the

Recognizing that it is our social responsibility to provide

assumptions, or should the assumptions change, the effects

products of high quality, the group manufactures motorcycles

generated by these events are calculated cumulatively, thus

and other products at its factories worldwide under a strict

repeatedly impacting results—and, generally, expenses andquality assurance system, based on the group’s Quality

obligations—in the future. Therefore, decreases in discount

Assurance Standards. However, it is practically impossible torates, and/or lower-than-expected returns from pension asset

ensure zero defects for all products or eliminate the possibility

management, may have a negative impact on the group.

of recalls in the future. Consequently, the group is covered
with product liability insurance, but there is no assurance that

Unrealized Loss on Landthe maximum amount of compensation provided by the

Pursuant to the “Law Concerning the Revaluation of Land,”insurance policy can provide the total amount required.

the fair value of land at December 31, 2011 was lower than

Furthermore, situations may arise in which the group is unable

the book value after the revaluation by ¥6.8 billion, resulting into continue purchasing the insurance policy under acceptableunrealized loss. Consequently, the unrealized loss on land

conditions for the group. Should a large-scale recall or a72

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

The group’s main Japanese factories are concentrated in an

Such a development may decrease sales and negatively affectarea subject to “intensified measures against earthquake

business results of the group. In order to provide for thedisasters” in anticipation of a potentially severe predicted

payment of liabilities that may not be covered by productearthquake, referred to as the Tokai Earthquake. The groupliability insurance, the group allocates an accrual for producthas been promoting seismic retrofitting for its main buildings

liabilities at an estimated amount of payment, based on theand structures, establishing systems that will facilitate early

actual results in past years. Such provision notwithstanding,post-earthquake restoration, and regularly reviewing thesehowever, the development of product liability lawsuits—systems and measures with the aim of minimizing damage

particularly cases involving side-by-side vehicles in the United

and achieving early restoration in the event of an earthquake.

States—could adversely effect the group’s business

However, an earthquake exceeding the group’s predictedperformance.

magnitude could occur. The buildings and inventories owned

Message from the Management

Tokai Earthquake

incur major expenses, and its credibility could be damaged.

Operating Performance

product defect trigger a product liability case, the group couldby the group are covered by earthquake insurance policies,
but earthquake damage may exceed the maximum compensation

In many countries and regions where the group operates,

limits for such assets and properties.

Special Features

Environmental and Other Regulations
the group and its products are subject to a wide range ofProtection of personal and/or confidential information,of pollutants generated from manufacturing facilities. These

including customer information, is essential for maintaining a

regulations may be revised and made stricter in the future.

company’s credibility and ensuring smooth business operations.

The group has been promoting environmental preservation

The group takes extensive measures to protect information

activities, in accordance with the “CSR Policy” and the “Yearassets, such as establishing corporate regulations, conducting

2010 Yamaha Motor Group Environmental Plan,” such as

in-house education, and constructing information security

formulating green procurement guidelines to reduce

systems. However, there is no guarantee that leaks orenvironmentally hazardous emissions from products andunauthorized transfers of information will not occur. Should

factories, and establishing dedicated teams. Nevertheless,such an incident occur in the group, the reputation of the

major changes in the regulations or laws in the countries andgroup would be damaged considerably, and the group could

regions where the group does business may necessitate

be held liable for damage caused to customers. Dependence

significant further expenditure.

on information systems, as well as their importance in the

Corporate Information

Information Management

safety, fuel economy, exhaust emission levels and the levels

Overview of Operations

environmental and other regulations, encompassing productgroup’s business activities, continue to grow. Therefore, if an
information system should fail to function properly, the group’s

The group protects its many patent rights, trademark rights

operations, business performance and financial conditions may

and other intellectual properties, which help differentiate thebe negatively impacted.

Financial Section

Protection of Intellectual Properties

group’s products from others, through legal measures andprocedures. However, in some nations and regions where thegroup operates, complete protection of intellectual property
rights may not be possible, or intellectual property rights may
only be protected on a limited basis. In such nations andregions, the group may not be able to exercise its intellectual
property rights to effectively prohibit the production of similar
products.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201173

Corporate Information

History of the Yamaha Motor Group

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance

1955•Motorcycle operations spun off from Nippon
Gakki Co., Ltd. (presently Yamaha Corporation)and made independent in Hamakita City as
Yamaha Motor Co., Ltd.
•Production of our first product, the 125cc
Yamaha motorcycle YA-1, began•YA-1 won the 125cc class at the 3rd Mount Fuji
Ascent Race
•YA-1 captured first, second and third place inthe 125cc class at the 1st Asama Highlands Race

1956
•Won both the 125cc and 250cc classes at the
4th Mount Fuji Ascent Race

1966
•Yamaha-built Toyota 2000GT set world records
in 13 categories at speed trials•Technical assistance agreement made formotorcycle production in Taiwan

1967•Took 125cc class manufacturer and rider titlesat the road race World GP

1968•KD production of motorcycles begun in Peru

1978
•R&D Minnesota opened in the U.S.
•Yamaha-built Magician 5 won the quarter-ton
world championship sailboat competition

1979•Sino-Japanese friendship “Guangzhou Yamaha
Exhibition” held in China•R&D Amsterdam opened in the Netherlands•XT500 won the 1st Paris-Dakar Rally•Won Formula 750 class road race of the WorldGP for the sixth straight year

1980

•Won both the 125cc and 250cc classes at the
2nd Asama Highlands Race

•Joint venture established with Wei-Ming Co. forlocal production for motorcycles in Malaysia•First overseas subsidiary, Yamaha Motor Europe
N.V. (YMENV), founded in the Netherlands

1958

1957

•R&D California opened in the U.S.
•Joint venture with Benemoto Co. to produce
motorcycles in Venezuela

1969

1981

•Took 6th place in first attempt at the Catalina
Grand Prix in the U.S. (International racing
debut)•Yamaha de Mexico established•Yamaha Motor Malaysia began local productionof motorcycles•Completion of Yamaha test course at Fukuroi City

•Service center opened in Guangzhou andBeijing, China•Took rider title in the 250cc class of theMotocross WGP

1960•Yamaha International Corporation (YIC) foundedin the U.S.

•Yamaha Motor do Brasil (YMDB) founded•Took 250cc class manufacturer and rider titlesat the road race World GP (TD2)

1961

1971

•Listed on First Section of the Tokyo Stock
Exchange (Capitalized at ¥800 million, 1.6
million shares)•First appearance in road race World GP (FrancGP)•Took 6th place in World GP 250cc class inround 4, the Isle of Man TT Race in Britain•CAT-21 won 1st Pacific 1,000km Motorboat
Marathon

1962•Won Novice 250/350cc classes at the 1st All
Japan Road Race Championship•STR-18 won 2nd Pacific 1,000km Motorboat
Marathon

1963
Financial Section•Captured manufacturer and rider titles for thesecond consecutive year in the 250cc class of
the road race World GP•Pearl Yamaha in India started production andsales of mopeds•RD56 set a new record in winning the Daytona
Grand Prix in the U.S.
•Won first 250cc class in the Belgium GP leg ofthe World GP

1964•Boat production business transferred from
Nippon Gakki•Won 1st Japan Motocross GP in the 251cc andabove class•Captured first manufacturer and rider titles in the
250cc class (RD65) of the road race World GP•Siam Yamaha founded in Thailand•Yamaha Motor acknowledged in Japan as acompany contributing to exports•Local production of motorcycles begun inIndonesia•Won snowmobile manufacturer title at the Eagle
River World Championship in the U.S.

1972
•Headquarters moved to present location in
Iwata City
•First wins in Motocross WGP at the Swedish GP(250cc class) and Luxembourg GP (500cc class)•Yamaha Motor Deutschland GmbH. (YMG)
founded in Germany

1973•Yamaha Motor Canada (YMCA) founded•Opening of Yamaha Technical Center in Iwata City
•Won first manufacturer and rider titles in the
250cc class of the Motocross WGP

1974•Joint venture PT. Yamaha Indonesia Motor
Manufacturing (YIMM) founded•Won manufacturer titles in the 125cc, 250cc,
350cc and 500cc classes of the road race WorldGP•Won 125cc class at the Isle of Man TT Race in
the World GP for first time

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

1982
•Sale of two-wheeled vehicle technology to NHW
Co. in West Germany•Two-wheeled vehicle production and marketingtie-up with Motobecane in France•Joint venture with SEMSA Co. began productionof motorcycles in Spain

1983•Local production begun in Portugal throughtechnical assistance agreement with SIS Co.
•Yamaha Motor Australia (YMA) founded in Sydney•Joint venture with Escorts to produce
motorcycles in India

1984•Commercial tie-up to supply engines to Ford
Motor in the U.S.
•Local production begun in France with technicalassistance agreement given to MBK Industrie•13th consecutive Yamaha victory at the Daytona
200 Mile Race in U.S.

1985
•Signed contract to develop, produce and supply
automobile engines to Ford Motor in the U.S.

1986

•Representative office in Nigeria opened•Wing of Yamaha won 1st Single-Handed
Transpacific Yacht Race

•Yamaha Motor Taiwan (YMT) founded•Motorcycle production begun in Italy•Yamaha automobile racing engine OX66 won
first place in the All Japan F2 ChampionshipSeries•Yamaha Motor Manufacturing Corporation ofAmerica (YMMC) founded

1976

1987

•YZR750 finished 1-2 in the 13th All Japan GrandPrix Road Race

•Yamaha Motor España S.A. (YMES) establishedin Spain•YZF750 won the Suzuka 8-Hours Endurance Race
•Cosworth Yamaha OX77 won the first All Japan
F3000 Championship race in its second
appearance

1975

1977

1965

74

1970

•Yamaha Motor Corporation, U.S.A. (YMUS)
founded

1988

1989
1990
•Corporate Mission — Kando Creating Company—
and long-term management vision announced•Yamaha constructed 1992 America’s Cup
challenge boat, Nippon•Yamaha Motor Portugal (YMP) founded

1991•Established CCS (Customer Community
Satisfaction) Committee•Established Yamaha Football Club Co., Ltd.
•Chongqing-Jianshe Yamaha Motorcycle Co.,
Ltd. (CJYM) established in China

1993

1994

1995
•Escorts Yamaha Motor Ltd. established in India•Yamaha Motor Thailand established1996•Yamaha Motor Argentina S.A. (YMARG)
founded•PT. Yamaha Motor Parts Manufacturing
Indonesia (YPMI) founded•Yamaha motorcycles, snowmobiles, ATVs
acquired ISO 9002 certification

1997•Yamaha Motor Nuansa Indonesia (YMNI)
founded•Motorcycle service skills training center openedin Colombia

2000•Corporate ties with Toyota Motor Co.
strengthened•IM Division reorganized as an in-house company

2001•Won manufacturer and rider titles in the 500cc
class of the Motocross WGP

2002•Initiated three-year Medium-Term Management
Plan, NEXT50•Yamaha branding strategy launched•Production of scooters for the Japanese market
transferred to Yamaha Motor Taiwan (YMT)

2003•Marine Engine Division reorganized as an
in-house company•Yamaha Boating Systems Co., Ltd. founded•Yamaha Motor Distribution Singapore Pte. Ltd.
(YDS) founded•Net sales topped one trillion yen for the first time•All-Yamaha ASEAN Cup Race started

2004•Won the rider title at the MotoGP•Won the MX1 class rider title of the Motocross
WGP•Sixteen bases at all nine Yamaha Motor office
and factory sites in Japan acquired international
certification for integrated Environmental
Management Systems (EMS)2005•Initiated new three-year Medium-Term
Management Plan, NEXT50-Phase II•50th anniversary•Won manufacturer, team and rider titles at the
MotoGP•Won the manufacturer and rider titles in the MXI
class of the Motocross WGP, repeating the2003 success•OOO Yamaha Motor CIS (YMCIS) established in
Russia•Completed the Life Science Laboratory, an R&D
center for the biotechnology business

2006•PT. Yamaha Motor Manufacturing West Java(YMMWJ) began operation (Indonesia)•Yamaha Motor Philippines, Inc. (YMPH) began
manufacturing and sales of motorcycles•Announced CF magnesium die casting
technology and the world’s first use of thetechnology in rear frames of mass-produced
motorcycles•Yamaha Motor’s first health supplement,“ASTIVO,” launched in the market

2008•Launched the long-term vision “Frontier 2020”
and initiated Phase I of the vision, the new
Medium-Term Management Plan
•Yamaha Motor Cambodia Co., Ltd. (YMKH), a
joint venture company for the manufacture andsale of motorcycles, founded•India Yamaha Private Limited (IYM) founded
jointly with Mitsui & Co., Ltd. for the manufactureof motorcycles•Global Training Center opened in Indonesia•Yamaha Riding Academy established in Thailand
to promote motorcycle riding safety•Won the manufacturer, team and rider titles at
the MotoGP, repeating the triple crownperformance of 20052009
•Announced policies and measures to “return toprofitability on a consolidated income basis infiscal 2010” and “achieve a consolidated
operating income margin of 5% in fiscal 2012,”
in view of the revised forecasts of businessperformance•Yamaha Motor Co., Ltd. and Yamaha Marine
Co., Ltd. merged•Announced the commercialization of the
Y.C.A.T. (Yamaha Compact AutomaticTransmission), a continuously variabletransmission for moped-type motorcycles•Won the manufacturer, team and rider titles at
the MotoGP, claiming the triple crown for thesecond consecutive year

2010
•Yamaha Motor withdrew from life sciencebusiness

2011•Consolidation of Iwata South Factory’s engine
assembly lines with Main Factory’s motorcycle
assembly plant completed•IM business established YIME in Europe and
YIMA in the United States•Commenced increased production of utility
boats to support reconstruction efforts ineastern Japan•Tie-up with Toyota Motor Corporation in
Communications-linked, Next-generation
Vehicles to build a “new mobility society”

Yamaha Motor Co., Ltd. ⎜ Annual Report 201175

Financial Section•Technical tie-up for manufacture and sale ofsurface mounters with Philips EMT•YZF750 won the 58th Bordeaux 24-Hours
Endurance Road Race
•Yamaha victorious in the 6th Whitbread Round
the World Yacht Race

•Announced 2010 Environmental Action Plan,
Eco Cite YAMAHA•Nine Yamaha Motor factory and office sites
acquired ISO 14001 certification•Production of motorcycles began at Yamaha
Motor Vietnam Co., Ltd. (YMVN)

2007

Corporate Information•European distribution center began operationsin the Netherlands•Announcement of the Action Plan forEnvironmental Conservation•Signed agreement with Brunswick Co. in the
U.S. to jointly develop 4-stroke outboard motors

1999

Overview of Operations

1992•Yamaha Motor Asia Pte. Ltd. (YMAP)
established in Singapore•Yamaha Motor Marketing Japan Co., Ltd.
establishedSpecial Features•Established the Environment Affairs Division•Functions of customer consultation offices
expanded and strengthened•Technical Training Center (TTC) completed•Yamaha Motor France S.A. (YMF) founded•Yamaha Motor de Mexico, S.A. de C.V.
(YMMEX) founded

1998•Global Parts Center (Fukuroi City) began
full-scale operation•Established the Compliance Special Committee•Plant for astaxanthin raw material completed;mass production begun•Yamaha Motor Foundation for Sports
establishedMessage from the Management•West Zakspeed Yamaha team formed in
Yamaha’s first F1 challenge•Second-place finish at the Hungary F1 GP world
championships

Operating Performance•Production of DOHC engine SHO for Ford
Motor begun•Completion of Hamaoka test course in Shizuoka
Prefecture•Cosworth Yamaha OX77 won series title in the
All Japan F3000 ChampionshipCorporate Information

Principal Subsidiaries and Affiliates
As of December 31, 2011

Special Features

Message from the Management

Operating Performance

Consolidated Subsidiaries
Company

Location

Principal business lines

Japan❶ Yamaha Motorcycle Sales Japan Co., Ltd.

Minato, Tokyo

Marketing of Yamaha Motor products❷ Yamaha Kumamoto Products Co., Ltd.

Yatsushiro, Kumamoto

Manufacture of outboard motors and other products❸ Yamaha Motor Powered Products Co., Ltd. (YMPC)

Kakegawa, Shizuoka

Manufacture of power products and motorcycle frames❹ Yamaha Motor Electronics Co., Ltd.

Mori-machi, Shizuoka

Manufacture and marketing of motorcycle electric parts

U.S.A.

Panama City, Florida

Regional headquarters for North America (importing and marketing of Yamaha
Motor products)
Manufacture and development of golf cars, personal watercraft and all-terrain
vehiclesManufacture and marketing of FRP boats❽ Skeeter Products, Inc.

Dallas, Texas

Manufacture and marketing of FRP boats and aluminum boats❾ Precision Propeller Industries, Inc.（PPI）

Indianapolis, Indiana

Manufacture and marketing of outboard motor propellers❿ Tennessee Water Craft, Inc.

Knoxville, Tennessee

Manufacture of jet boats⓫ Yamaha Golf-Car Company（YGC）

Atlanta, Georgia

Marketing of golf cars
Exporting and importing of spare parts and accessories for Central and SouthAmerica and the Caribbean❺ Yamaha Motor Corporation, U.S.A. (YMUS)❻ Yamaha Motor Manufacturing Corporation of America(YMMC)❼ Century Boat Company, Inc.

Los Angeles, California
Atlanta, Georgia⓬ Yamaha Motor Distribution Latin America Inc.（YDLA） Miami, Florida

Canada⓭ Yamaha Motor Canada Limited（YMCA）

TorontoImporting and marketing of Yamaha Motor products

The Netherlands
Overview of Operations⓮ Yamaha Motor Europe N.V.（YMENV）

Amsterdam⓯ Yamaha Motor Netherland B.V.（YMNL）

Amsterdam⓰ Yamaha Motor Middle Europe B.V.（YMME）

Amsterdam

Regional headquarters for Europe (importing and marketing of Yamaha Motor
products, and marketing, product planning, and finance within Europe)Marketing of Yamaha Motor productsManagement of sales companies and branches in Germany and the United
Kingdom

France⓱ Yamaha Motor France S.A.（YMF）

Paris⓲ MBK Industrie（MBK）

Saint Quentin

Marketing of Yamaha Motor products
Manufacture and marketing of scooters, outboard motors and MBK-brandbicycles⓳ Yamaha Motor Italia S.p.A.（YMIT）

Milan

Manufacture of Yamaha Motor products⓴ Motori Minarelli S.p.A.

Bologna

Corporate Information

Italy

Yamaha Motor Research & Development Europe S.r.l.（YMRE） Milan

Manufacture of motorcycle engines
Research and development of motorcycles

Spain
Yamaha Motor España S.A.（YMES）

Barcelona

Manufacturing of motorcycles

Yamaha Motor España Marketing S.L. (YMESM)

BarcelonaMarketing of Yamaha Motor products

LisbonMarketing of Yamaha Motor products

LondonMarketing of Yamaha Motor products

Düsseldorf

Marketing of Yamaha Motor products

Stockholm

Marketing of Yamaha Motor products

Moscow

Importing and marketing of Yamaha Motor products

SydneyImporting and marketing of Yamaha Motor products

Auckland

Importing and marketing of Yamaha Motor products

Financial Section

Portugal
Yamaha Motor Portugal S.A.（YMP）

United Kingdom
Yamaha Motor（UK）Limited（YMUK）

Germany
Yamaha Motor Deutschland GmbH.（YMG）

SwedenYamaha Motor Scandinavia AB（YMS）

RussiaOOO Yamaha Motor CIS（YMCIS）

Australia
Yamaha Motor Australia Pty Limited（YMA）

New Zealand
Yamaha Motor New Zealand Limited（YMNZ）

76

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Location

Operating Performance

Company

Principal business lines

BrazilYamaha Motor do Brasil Ltda.（YMDB）

São Paulo

Importing and marketing of Yamaha Motor products

Yamaha Motor da Amazonia Ltda.（YMDA）

ManausManufacture and marketing of motorcycles and outboard motors

Medellin

Assembly and marketing of motorcycles, and sales of spare parts

Buenos Aires

Importing and marketing of Yamaha Motor products

Mexico City

Importing and marketing of Yamaha Motor products

PT. Yamaha Indonesia Motor Manufacturing（YIMM）

Jakarta

Manufacture and marketing of motorcycles

PT. Yamaha Motor Kencana Indonesia（YMKI）

JakartaMarketing of motorcycles

PT. Yamaha Motor Manufacturing West Java（YMMWJ）

Karawang

Manufacture of motorcycles

PT. Yamaha Motor Parts Manufacturing
Indonesia（YPMI）

Jakarta

Manufacture and marketing of motorcycle parts

PT. Yamaha Motor Nuansa Indonesia（YMNI）

Jakarta

Manufacture and marketing of water purifiers

Yamaha Motor Asia Pte. Ltd.（YMAP）

Singapore

Financing center for Asia production bases

Yamaha Motor Distribution Singapore Pte. Ltd.
（YDS）

Singapore

Exporting and importing of parts and accessories for Yamaha Motor products

Yamaha Motor Vietnam Co., Ltd.（YMVN）

Hanoi

Manufacture and marketing of motorcycles

Yamaha Motor Parts Manufacturing Vietnam Co., Ltd.
（YPMV）

Hanoi

Manufacture of motorcycle parts

Thai Yamaha Motor Co., Ltd.（TYM）

Bangkok

Manufacture and marketing of motorcycles

Yamaha Motor Asian Center Co., Ltd.（YMAC）

Bangkok

Regional headquarters for ASEAN nations (development of motorcycles,
operation of ancillary businesses, and intermediation of three-country trade)

Batangas

Manufacture and marketing of motorcycles

Yamaha Motor Taiwan Co., Ltd.（YMT）

Taipei

Manufacture and marketing of motorcycles

Yamaha Motor Taiwan Trading Co., Ltd.（YMTT）

Taipei

Export of motorcycles and parts for those products

Yamaha Motor R&D Taiwan Co., Ltd.（YMRT）

TaipeiResearch and development of motorcycles

Delhi

Manufacture, marketing and export of motorcycles

Colombia
Message from the Management

Industria Colombiana de Motocicletas Yamaha S.A.
（INCOLMOTOS）

Argentina
Yamaha Motor Argentina S.A.（YMARG）

MexicoYamaha Motor de Mexico, S.A. de C.V.（YMMEX）

Indonesia

Special Features

Singapore
Overview of Operations

VietnamThailand

Yamaha Motor Philippines, Inc.（YMPH）

Corporate Information

The Philippines
TaiwanFinancial Section

India
India Yamaha Motor Pvt. Ltd.（IYM）

China
Yamaha Motor Commercial Trading (Shanghai) Co. Ltd.
Shanghai(YMCT)

Exporting, importing, and marketing of Yamaha Motor products, andexporting of parts

Shanghai Yamaha Jianshe Motor Marketing Co., Ltd.
（YMSM）

Marketing and after-sales service of Yamaha Motor products

Shanghai

Zhuzhou Yamaha Motor Shockabsorber Co., Ltd. (ZYS) Zhuzhou, Hunan

Manufacture of motorcycle suspensions

Yamaha Motor R&D Shanghai Co., Ltd. (YMRS)

Research and development of Yamaha Motor Products

Shanghai

Other consolidated subsidiaries: 52 companies
Total consolidated subsidiaries: 107 companies

Yamaha Motor Co., Ltd. ⎜ Annual Report 201177

Corporate Information

Principal Subsidiaries and Affiliates

Operating Performance

Subsidiaries and Affiliates Accounted for by the Equity Method
Company

Location

Principal business lines

Japan
Yokohama Bay Side Marina Co., Ltd.

Yokohama, Kanagawa

Management of a marina and related businessYamaha Football Club Co., Ltd.

Iwata, Shizuoka

Management of a professional soccer teamMikasa Unyu Co., Ltd.

Kakegawa, Shizuoka

Distribution

Milan

Coordination and management of operations related to MotoGP and machinedevelopment testing

BrusselsMarketing of Yamaha Motor products

Mexico City

Manufacture and marketing of FRP boats; importing and marketing of otherYamaha Motor products

Lima

Marketing of motorcycles, all-terrain vehicles, parts and other related products

Kuala Lumpur

Manufacture and marketing of motorcycles

Chongqing, Sichuan

Manufacture of motorcycles

Message from the Management

Italy
Yamaha Motor Racing S.r.l.（YMR）

Belgium
D’Ieteren Sport S.A.

MexicoIndustria Mexicana de Equipo Marino, S.A. de
C.V.（IMEMSA）

Peru
Special Features

Yamaha Motor del Perú S.A.（YMDP）

Malaysia
Hong Leong Yamaha Motor Sdn. Bhd.（HLYM）

China

Overview of Operations

Chongqing Jianshe·Yamaha Motor Co., Ltd. (CJYM)
Zhuzhou Jianshe Yamaha Motor Co., Ltd. (ZJYM)

Zhuzhou, Hunan

Manufacture of motorcycles

Jiangsu Linhai Yamaha Motor Co., Ltd. (LYM)

Taizhou, Jiangsu

Manufacture and marketing of motorcycle engines

Sichuan Huachuan Yamaha Motor Parts Manufacturing
Chengdu, SichuanCo., Ltd. (SHY)

Manufacture and marketing of electrical components for motorcycles

Chongqing Pingshan TK Carburetor Co., Ltd. (PTK)

Chongqing, Sichuan

Manufacture and marketing of motorcycle carburetors

Yamaha Motor Taizhou O.P.E. Co., Ltd. (YMTO)

Taizhou, Jiangsu

Manufacture of multi-purpose engines

Corporate Information

Other subsidiaries and affiliates accounted for by the equity method: 17 companies
Total subsidiaries and affiliates accounted for by the equity method: 31 companies

14
15 16

Financial Section

25

24

60
17
18

27

28

26
13

22 23

9
19 20
21 59
51

67

64 68

66 69 52 53
55
65 54

43 44
45
46

5

1 2 3 456 57 58

8

10
6 11
7
12

48 49 50
35 61

47

33

63
41 42

32

36 37 38 39 40

62

31

29
30

78

Yamaha Motor Co., Ltd. ⎜ Annual Report 201134

Financial Section
Management Discussion and Analysis of Operations

80

Five-Year Summary

91

Quarterly Financial Information

91

Consolidated Balance Sheets

92

Consolidated Statements of Income

94

Consolidated Statements of Comprehensive Income

94

Consolidated Statements of Changes in Net Assets

95

Consolidated Statements of Cash Flows98

Notes to Consolidated Financial Statements

99

Yamaha Motor Co., Ltd. ⎜ Annual Report 201179

Financial Section

Message from the Management

Operating Performance

Management Discussion and Analysis of Operations

Overview

foreign currency-denominated sales generated at overseas

During the fiscal year ended December 31, 2011 (fiscal 2011),

subsidiaries in fiscal 2011 calculated at exchange rates that

although economic recovery in the U.S. was sluggish due

prevailed at the end of fiscal 2011 and respective exchange

to slow improvement in the employment situation, personalrates applied in fiscal 2010. Similarly, the impact of exchange

consumption, and other areas of concern, in the second half

rate fluctuations on gross profit is defined as the differenceof the year signs of improvement in the unemployment rate

between yen-translated amounts of foreign currency-

and other indicators emerged. In Europe, economic recovery

denominated gross profit generated at overseas subsidiaries

slowed markedly as the sovereign debt crisis negatively

in fiscal 2011 calculated at exchange rates that prevailed ataffected the real economy. Although stable growth continued

the end of fiscal 2011 and respective exchange rates appliedin emerging nations in Asia, Central and South America, andin fiscal 2010. The impact of exchange rate fluctuations does

other regions, negative impact from worsening economic

not take into account changes in the selling prices of groupconditions in Europe was also in evidence. In Japan, theproducts.

Special Features

economy showed a recovery trend after temporarily slumping

The exchange rates used in converting foreign currency-

in the aftermath of the Great East Japan Earthquake (thedenominated amounts into yen on the consolidated financial

earthquake). However, the improvement trend slowed due

statements for fiscal 2011 were ¥80 to the U.S. dollar,

to factors including the global economic slowdown and yen

appreciating ¥8 from fiscal 2010, and ¥111 to the euro,

appreciation.

appreciating ¥5 from fiscal 2010.

Corporate Information

Overview of Operations

In developments in Yamaha Motor’s main markets,
although demand for motorcycles and outboard motors

Sales and Operating Income

bottomed out in the U.S., demand for all-terrain vehicles

In operating performance, consolidated net sales for fiscal(ATVs) continued to fall. In Europe, demand for motorcycles

2011 decreased 1.4% year on year to ¥1,276.2 billion

continued to contract, mainly in Italy and Spain. On the($16,415.7 million). In the first three quarters (January toother hand, demand for motorcycles and outboard motors

September), sales fell slightly year on year as higher sales ofcontinued to expand in emerging nations in Asia, Central

motorcycles and outboard motors in emerging nations wereand South America, and other regions. In Japan, demand

unable to offset the negative impact of yen appreciation andfor generators, fishing boats and utility boats, and electricallythe earthquake. In the fourth quarter (October to December),

power assisted bicycles increased year on year, underpinned

net sales fell 5.3% from the previous fourth quarter to ¥290.4

in part by the earthquake reconstruction demand.

billion ($3,735.6 million) due to further yen appreciation andthe flooding in Thailand, despite higher sales of outboard

Scope of Consolidation
Financial Section

The number of consolidated subsidiaries at the end of fiscal

motors and some other products.
Operating income increased 4.1% year on year to ¥53.4

2011 increased by three from fiscal 2010, to 107, and thebillion ($687.0 million). In cumulative results for the first threenumber of companies accounted for by the equity method

quarters (January to September), each profit measure showeddecreased by two, to 31.

a large year-on-year increase as higher unit sales, cost reductions due to structural reforms, and the impact of a reversal of

Impact of Exchange Rate Fluctuations

the provision for product liabilities enabled the absorption ofFluctuating exchange rates had a negative effect on net sales

profit-impacting factors such as yen appreciation, increases inand gross profit, causing year-on-year reductions of ¥72.2

raw material prices, and the impact of the earthquake. In thebillion ($928.8 million) to net sales and ¥32.2 billion ($414.2

fourth quarter (October to December), the Company recorded

million) to gross profit.

operating loss of ¥7.3 billion ($94.1 million) as a result of fac-

The impact of exchange rate fluctuations on net sales istors including further yen appreciation, the impact of flooding

defined as the difference between yen-translated amounts ofin Thailand, and lower demand in Europe and North America.

80

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Factors Impacting Operating Income
Operating Performance(Billion ¥)150
Decrease in
SG&A expenses
100

Operatingincome+23.3

Impact ofexchange rate

+22.0

Impact of
the floodingin Thailand andthe earthquake

–32.2

+19.9

Impact ofincreased raw
material prices–9.5

Reversal of provision for
product liabilities +13.4–7.6

Increase in
R&D expenses

Others

–9.8–4.0

Message from the Management

Increase in grossprofit due tosales expansion

Increase in
marginal profit
by restructuring

Operatingincome

50

0

+51.3

+53.4

FY10

FY11

the earthquake and in the U.S., where unit sales recovered

Motorcycles

due to market stock adjustment in the previous year.
As a result of these developments, overall unit sales rose

Although unit sales in emerging markets including Vietnam,

slightly, increasing 0.3%, to 6.98 million units. Net sales forIndonesia and Thailand decreased due to the impact of

the fiscal year ended December 31, 2011 (fiscal 2011) fell

manufacturing after the flooding in Thailand. As a result, unit

2.9% from the previous year to ¥887.6 billion ($11,417.0

sales in emerging markets edged up 0.8% from the previous

million), due to yen appreciation. Also, operating income fell

year to 6.61 million units. Unit sales in developed markets fell

43.2% to ¥27.6 billion ($354.7 million) owing to the impact of

7.3% to 0.37 million units, reflecting lower unit sales in Europe

yen appreciation, the flooding in Thailand, and an increase inowing to the impact of the economic crisis despite increases

research and development expenses.

Overview of Operations

India, and Central and South America increased, unit sales inSpecial Features

Sales Performance by Business Segmentin unit sales in Japan due to reconstruction demand following
Corporate Information

Percentage of sales by product segment Sales by product segment

Sales by market(Year ended December 31, 2011)
Industrial machinery
Other products
and robots 2.7%

(Billion ¥)5.9%

Power products(Billion ¥)

2,000

2,000
1,757

1,757

7.9%
1,500
Motorcycles
69.5%

290

239

1,000

1,604
1,500
1,294
1,154
86
101

1,294

1,276
75
34
100
179

110
103
167

1,000
1,575

(Year ended December 31, 2011)

1,434
1,023

1,056

1,029

500

817

Japan

914

888

1,276

1,154

150

Percentage of sales by market

Financial Section

Marine products 14.0%

145 1,604
123
266
213

1,152

1,130

500

11.5%
182

0

0
2007

Overseas
88.5%

2008

2009

2010

2011

Motorcycles

Marine products

Power products

Industrial machineryand robots

2007
Japan

170

2008

130

2009

142

2010

147

2011

Overseas

Other products
Note“Industrial machinery and robots,” which was previously
included in the “Other products” segment, is being
reported in a separate segment effective from fiscal 2011.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201181

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance

Financial Section

Management Discussion and Analysis of Operations

Marine Products

appreciation. Operating income was ¥7.5 billion ($96.1

Unit sales of outboard motors increased 11.4% from themillion), as a result of factors including a reversal of the provi-

previous year to 0.3 million units, attributable to expanding

sion for product liabilities and cost reductions, while operating

demand in Central and South America, and Russia. This was

loss in the previous year was ¥11.3 billion.

also due to higher unit sales in the U.S., where demand hadbottomed out. In addition, unit sales of personal watercraft

Industrial Machinery and Robots

increased, reflecting factors including a recovery in demand in

Net sales in this segment for fiscal 2011 fell 1.2% from thethe U.S.

previous year to ¥34.3 billion ($441.5 million), as a result of

As a result, net sales for fiscal 2011 rose 7.1% from thelower unit sales of surface mounters in China, where capital

previous year to ¥178.9 billion ($2,301.6 million), while operat-

investment declined due to the worldwide economic slow-

ing income rose 846.1% to ¥7.1 billion ($91.0 million), despite

down. Also, operating income fell 9.9% from the previous

the negative impact of yen appreciation.

year to ¥6.3 billion ($80.6 million).

Power Products

OthersUnit sales of ATVs declined 6.9% from the previous year to

Although unit sales of electrically power assisted bicycles rose

0.08 million units, due to a continuous drop in demand indue to favorable demand, unit sales of automobile engines

North America. Unit sales of generators increased, owing to

declined owing to the impact of the earthquake. Net sales forfactors such as reconstruction demand in Japan following the

fiscal 2011 rose slightly 0.1% from the previous year to ¥75.1

earthquake. Net sales of power products for fiscal 2011 fellbillion ($965.9 million). Operating income fell 20.6% from the

2.6% from the previous year to ¥100.3 billion ($1,289.6

previous year to ¥5.0 billion ($64.5 million).

million), due to factors including the negative impact of yen

Motorcycle unit sales

Operating income (loss) andoperating income margin(Thousand units)(Billion ¥)

8,000

150
6,960

Financial Section

497

5,865

6,000

493

573

(Billion ¥)

(%)

9

90

6
71.2

100

6

60

3

30

4.1

4.0

457

3.0
4,000

50
6,084

51.3

4.1

48.4

6,059

2.1

53.4
1.4
1.9

2,000

0

0

2007

366
167
122

2008

275
92
108

2009

Japan
North America
Other areas

82

27.0

2

18.3

4,993

3,770

410
197
163

4

372

4,997

4,717

(%)

7.2
127.0

6,982

5,841

Net income (loss) andnet income margin

227
53
99

2010
Europe

185
64
101

2011
Asia

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

–5.4
–62.6

–80
2007

2008

2009

Operating income (loss)
Operating income margin (%)

2010

2011

0

0

–10

–250

0.1

0
–18.7
–216.1

2007

2008

2009

Net income (loss)
Net income margin (%)

2010

–20
2011

EuropeJapan

previous year to ¥151.3 billion ($1,946.0 million), owing to

Net sales in Japan for fiscal 2011 decreased 1.3% from thesuch factors as a decrease in unit sales of motorcycles andprevious year to ¥520.4 billion ($6,693.7 million), reflecting

the negative impact of yen appreciation, despite an increase

factors including a decline in unit sales of automobile engines

in unit sales of outboard motors in Russia. Operating loss wasand the negative impact of yen appreciation, despite an¥3.6 billion ($46.4 million), while operating income in theincrease in unit sales of electrically power assisted bicycles

previous year was ¥2.0 billion.

Net sales in Europe for fiscal 2011 decreased 10.3% from theOperating Performance

Sales Performance and Operating Income byGeographical Segment Note 1

Message from the Management

and generators. Operating loss was ¥14.1 billion ($181.4
million), while operating loss in the previous year was ¥2.5

Asia

billion. The loss mainly resulted from the negative impact of yen

Net sales in Asia for fiscal 2011 declined 1.0% from theappreciation, despite cost reductions due to structural reforms.

previous year to ¥651.7 billion ($8,383.5 million), despite anincrease in unit sales of motorcycles in Vietnam, India, andNet sales in North America for fiscal 2011 increased 3.5% toin unit sales of motorcycles in Indonesia, Thailand, and other¥177.5 billion ($2,282.7 million), reflecting factors including anmarkets owing to the flooding in Thailand, and the negative

increase in unit sales of personal watercraft and outboard

impact of yen appreciation. Operating income fell 12.1% tomotors, despite the negative impact of yen appreciation.

¥48.6 billion ($624.9 million), reflecting factors including the

Operating income was ¥7.7 billion ($98.6 million), owing

negative impact of yen appreciation and increases in raw

mainly to a reversal of the provision for product liabilities andmaterial prices.

Overview of Operations

other markets. This was due to factors including a decrease

the impact of cost reductions due to structural reforms, while
operating loss in the previous year was ¥14.7 billion.

Sales by geographical segment Note 1—North America

Sales by geographical segment Note 1—Europe(Billion ¥)(Billion ¥)(Billion ¥)

1,000

600

400

Corporate Information

Sales by geographical segment Note 1—Japan

857

372

500

799

308
450

Financial Section

750

300
383

527
500

520
300

450

201

200

169
151

183
250

171

177

150

0

100

0
2007

2008

Special Features

North America

2009

2010

2011

0
2007

2008

2009

2010

2011

2007

2008

2009

2010

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

2011

83

Message from the Management

Operating Performance

Financial Section

Management Discussion and Analysis of Operations

Other Areas

cost reductions realized from structural reform. The gross

Net sales in other areas for fiscal 2011 increased 9.9% fromprofit margin dropped to 21.6%, a 1.2-percentage-point

the previous year to ¥158.9 billion ($2,044.3 million), due todeterioration from fiscal 2010.
Selling, general and administrative expenses decreased

factors including higher unit sales of motorcycles andoutboard motors in Central and South America including¥21.6 billion ($278.1 million) to ¥222.6 billion ($2,863.9

Brazil, and other markets, despite the negative impact of yen

million), mainly due to a reversal of the provision for productappreciation. Operating income rose 40.1% to ¥14.4 billion

liabilities. Selling, general and administrative expenses as a($184.8 million).

percentage of net sales was 17.4%, which was 1.4 percentage points less than in fiscal 2010. R&D expenses for fiscal

Note 1
Sales amounts by geographical segment include intersegment sales.

2011 increased ¥9.8 billion ($126.5 million) from fiscal 2010
to ¥65.0 billion ($836.3 million).

Corporate Information

Overview of Operations

Special Features

Income and Expenses
Cost of Sales, Gross Profit and SG&A Expenses

R&D Expenses

Cost of sales for fiscal 2011 increased 0.2% from fiscal 2010

Under the corporate philosophy of being a Kando Creatingto ¥1,000.1 billion ($12,864.8 million), representing 78.4% of

Company, the group is aggressively engaged in R&D activities

net sales.

in various technological fields, including small engine, FRP

Gross profit decreased ¥19.5 billion ($251.1 million) toprocessing, control, component, environmental and safety¥276.0 billion ($3,550.9 million). This change was largely due

technologies, in order to provide customers worldwide withto negative factors such as yen appreciation in exchange“high-quality, high-performance, lightweight and compact”

rates, the negative impact of the flooding in Thailand and the

products.

earthquake, increases in raw material prices and a rise inTo create products that precisely meet the needs ofdevelopment expenses, which could not be fully offset bycustomers around the world, we have built an R&D structure

positive factors such as a rise in profit from increased sales ofthat is organized around the headquarters, carrying out

outboard motors and motorcycles in emerging nations andresearch and development in close cooperation with groupcompanies in Japan and overseas.

Sales by geographical segment Note 1—Asia

Sales by geographical segment Note 1—Other areas

R&D expenses and % of R&D
expenses to net sales(Billion ¥)(Billion ¥)(Billion ¥)

800

200

100

Financial Section

658
585

600
527

166

652

(%)

8
86

171

85

159
145

150

75

6
5.4

519

121

5.3
4.9

400

100

50

200

50

25

0
2008

2009

2010

2011

4.3

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

4

2

2007

2008

2009

2010

2011

0
2007

2008

R&D expenses

84

5.1

55

0

0
2007

62

65

2009

2010

2011

% of R&D expenses to net sales

R&D expenses for fiscal 2011 increased 17.8% from fiscal

Operating Income
The Company posted operating income in fiscal 2011,

to 5.1% of net sales. Broken down by business segment,

increasing 4.1% from fiscal 2010 to ¥53.4 billion ($687.0

R&D expenses stood at ¥42.1 billion ($541.5 million) in the

million). As a result, the operating income ratio jumped 0.2

motorcycle business; ¥7.4 billion ($95.2 million) in the marine

percentage point, to 4.2%.

Operating Performance2010 to ¥65.0 billion ($836.3 million), which was equivalent

By key operating segments, the motorcycle businessproducts business; ¥3.9 billion ($50.2 million) in the industrial

recorded operating income of ¥27.6 billion ($354.7 million), a

machinery and robots business; and ¥5.0 billion ($64.3 million)

43.2% decline from the previous year, largely affected by suchin the other products business.

negative impacts as yen appreciation, the flooding in Thailand

Under the new medium-term management plan in place

and an increase in R&D expenses.
The marine products business had operating income ofdeveloping affordably priced motorcycles to be marketed in¥7.1 billion ($91.0 million), an 846.1% boost from the previous

China, India and other emerging nations. The Company will

year, thanks to an increase in unit sales of outboard motors

also work to simultaneously increase the appeal and profit-and personal watercraft despite the impact of yen

ability of motorcycles in Indonesia, Vietnam, and other ASEAN

appreciation.

nations by incorporating Yamaha’s exclusive fuel injection

The power products business moved into the black, withsystem, while reducing the costs of these products.

¥7.5 billion ($96.1 million) in operating income, an ¥18.7

Furthermore, it will develop next-generation, environmentallybillion ($240.9 million) improvement from an ¥11.3 billion

friendly engines for motorcycles and outboard motors, as welloperating loss a year earlier through the reversal of theprovision for product liabilities and cost reductions.

technology for electric motorcycles and

The industrial machinery and robots business posted

electrically power assisted bicycles.

operating income of ¥6.3 billion ($80.6 million), a 9.9% decline
Note 2
Smart Power: New power sources, primarily for electric vehicles, designed tocreate a new paradigm of mobility

from the previous year, mainly affected by a decline in units
sold in China.

Net income (loss) per share

Net assets and % of net income toshareholders’ equity(Billion ¥)(¥)(Billion ¥)

(%)

100

300

600

30

569

Corporate Information

Capital expenditures and depreciation

94

Overview of Operations

as Smart Power

Note 2

Special Featuresfrom fiscal 2010 through 2012, the Company will focus on

Message from the Management

products business; ¥6.6 billion ($84.9 million) in the power

249 249

85

428
400

200

14.2

60
55
46

100

45
34

37

77 77

0

6

6

Capital expenditures2010
Depreciation

2011

0.4

0

2007

2008

2009

0

–71.2

–756

–800
2009

9.7 10
7.5

34
0

2008

200

56 56

25

310

249

54

50

2007

20
311

2010

2011

Net income (loss) per share—basic
Net income per share—diluted
Note
Net income per share—diluted for fiscal 2009 is notlisted, since the Company registered a net loss per sharefor the period.

2007

2008

Net assets

2009

2010

–80
2011

% of net income to shareholders’ equity

Yamaha Motor Co., Ltd. ⎜ Annual Report 201185

Financial Section

75

Financial Section

Management Discussion and Analysis of Operations

Income before Income Taxes

Operating Performance

The other products business had operating income of¥5.0 billion ($64.5 million), a 20.6% decline from the previous

Income before income taxes for fiscal 2011 increased 3.8%

year, largely affected by a reduction in unit sales of automobile

from the previous year to ¥61.2 billion ($787.3 million).

engines due to the impact of the earthquake despite an
Income Taxes

increase in unit sales of electrically power assisted bicycles.

In fiscal 2011, income taxes decreased ¥4.9 billion ($63.4
million) from fiscal 2010 to ¥26.9 billion ($345.7 million).

Message from the Management

Non-Operating Income and Expenses
The Company posted non-operating income of ¥10.1 billion($129.8 million), or ¥4.7 billion ($61.0 million) less than in fiscal

Minority Interests in Income

2010, mainly due to the impact of exchange rates of ¥7.2

Minority interests in income—including interests owned bybillion ($92.7 million).

minority shareholders in PT. Yamaha Indonesia Motor

Corporate Information

Overview of Operations

Special Features

Manufacturing, Yamaha Motor Taiwan Co., Ltd., Yamaha
Extraordinary Income and Loss

Motor Vietnam Co., Ltd., Industria Colombiana de

Extraordinary income for fiscal 2011 amounted to ¥0.3 billion

Motocicletas Yamaha S.A. and others—decreased ¥1.5 billion($4.2 million) due to a gain on the sale of noncurrent assets.

($19.0 million) from fiscal 2010 to ¥7.4 billion ($94.8 million).

The Company posted an extraordinary loss of ¥2.6 billion($33.6 million), down ¥5.3 billion ($67.8 million) from the previ-

Net Income

ous year. The primary components of the extraordinary loss in

Net income for fiscal 2011 increased 47.3% from the previous

fiscal 2011 were a ¥0.7 billion ($9.5 million) loss on disposal ofyear to ¥27.0 billion ($346.8 million). Basic net income per

noncurrent assets, a ¥0.8 billion ($10.0 million) impairment loss

share rose ¥21.73 ($0.28) from ¥55.50 for fiscal 2010 toand a ¥0.6 billion ($7.1 million) loss on adjustment for changes¥77.23 ($0.99) in fiscal 2011.

of accounting standard for asset retirement obligations.

Net assets per share andequity ratio Note 3

Total assets and return on assets

42.1

(¥)

2,000

1,852

(%)

(Billion ¥)

(%)

(%)

40

1,500

9

200

30

28.0

1,378

21.5

1,000
743

1,000

20
786

163

1,163

31.2
Financial Section

175

1,258

33.9
1,500

Current ratio

987

6.0

6

900

500

804

150

3.0 3

100

0

50

–25

0

131

126

2007

2008

1.9
10

500

153

978

0.2

0

–20.1
0

0
2007

2008

2009

Net assets per share

86

2010

2011

Equity ratio (%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

2007

2008

Total assets

2009

2010

Return on assets (%)

2011

2009

2010

2011

Assets, Liabilities and Total Net Assets

Capital expenditures for fiscal 2011 totaled ¥45.0 billion

Total assets as of December 31, 2011 fell ¥77.9 billion($579.5 million), centering on investments in manufacturing($1,002.4 million) from the end of the previous fiscal year toequipment and facilities for the production of new models and¥900.4 billion ($11,582.5 million), reflecting factors including a

production capacity enhancements—primarily for thedecrease in cash and deposits and the negative impact ofmotorcycle and marine products businesses—as well as

yen appreciation.

investments in research and development operations.
Broken down by business segment, capital expenditures

Total liabilities fell ¥77.0 billion ($990.8 million) to ¥590.5
billion ($7,595.9 million), reflecting such factors as repay-

for the motorcycle business totaled ¥32.9 billion ($423.7

ments of long-term loans payable and a reversal of themillion). In Asia (excluding Japan) and Central and South

provision for product liabilities.

America, the investments focused on the equipment, facilities
and molds for manufacturing new models and production
capacity enhancements. In Japan, the investments focusedresult of net income and other factors, total net assets

on restructuring domestic production systems.

Special Features

Although shareholders’ equity increased ¥26.7 billion($343.7 million) from the end of the previous fiscal year as a

Capital expenditures for the marine products businessdecreased ¥0.9 billion ($11.5 million) to ¥309.9 billion

amounted to ¥5.4 billion ($69.1 million), invested mainly inforeign currency translation adjustment due to yen apprecia-

research and development operations, the restructuring oftion. The shareholders’ equity ratio as of December 31, 2011

domestic production systems and production capacity

was 31.2% (an improvement of 3.2 percentage points fromenhancement for pleasure-use boats.
Overview of Operations($3,986.5 million), reflecting such factors as the change in

Capital expenditures for the power products businessthe end of the previous fiscal year). The gross debt/equity
ratio was 1.0 times, compared with a gross debt/equity ratio

totaled ¥2.6 billion ($33.6 million), invested mainly inof 1.2 times at the end of the previous fiscal year.

production of all-terrain vehicles in the United States.

Message from the Management

Capital Expenditures
Operating Performance

Capital Resources and Liquidity

Note 3Equity ratio: (Shareholders’ equity + Accumulated other comprehensive
income)/Total assets x 100 (%)

Property, plant and equipment turnover Inventory turnover(Times)(Times)

2.0

6.0

6.0
4.9

1.4

4.3

4.5

1.3

1.3

5.1
4.5

3.8

1.1
3.0

3.0

0.5

1.5

1.5

2007

2008

2009

2010

2011

2010

2011

3.5

0.0

0.0

0.0

4.7

4.1

3.7

1.0

4.6

Financial Section

1.5(Times)4.7

1.5

Corporate Information

Total asset turnover

2007

2008

2009

2010

2011

2007

2008

2009

Yamaha Motor Co., Ltd. ⎜ Annual Report 201187

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance

Financial Section

Management Discussion and Analysis of Operations

Capital expenditures for the industrial machinery andnotes and accounts receivable–trade, and a decrease inrobots business totaled ¥1.3 billion ($16.6 million), invested

notes and accounts payable–trade, all occurring during themainly to acquire land and buildings toward the expansion of

fourth quarter (October 1—December 31, 2011).

business.

Net cash used in investing activities was ¥46.5 billion

Capital expenditures for the other products business($598.4 million), mainly as a result of the purchase of facilities

totaled ¥2.8 billion ($36.4 million), invested mainly in researchin Indonesia and Vietnam to increase production.

and development operations in the automobile engine field.

Consequently, free cash flows declined ¥80.1 billion fromThe entire amount of the expenditures discussed above

fiscal 2010, to a negative ¥13.2 billion ($169.7 million).

was funded by internal resources. During fiscal 2011, there

Net cash used in financing activities was ¥51.9 billion

was no disposal or sale of important facilities or similar assets.

($668.0 million) compared with ¥5.3 billion provided byfinancing activities in fiscal 2010, a difference of ¥57.2 billion

Cash Flows($736.1 million), due to factors including repayment of

Net cash provided by operating activities during the fiscal year

long-term loans payable.

under review declined ¥71.2 billion ($915.9 million) from fiscal
2010, to ¥33.3 billion ($428.7 million), compared with ¥53.4

Demand for Funds

billion ($687.1 million) during the nine months ended

Within the group, funds are primarily required to cover the

September 30, 2011, reflecting factors including income

cost of procuring materials and parts used in product manu-

before income taxes and an increase in notes and accounts

facturing and costs incurred in the manufacturing process, as

payable–trade. This was due to such factors as a loss before

well as purchasing costs of products and merchandise, sell-

income taxes of ¥5.4 billion ($69.4 million), owing to the flood-ing, general and administrative expenses, working capital anding in Thailand and the negative impact of yen appreciation,

capital expenditures.

and net cash used in operating activities of ¥20.1 billion($258.4 million) as a result of factors including an increase in

Account receivable turnover

Cash provided by (used in)operating activities

Cash used in investing activities(Times)(Billion ¥)(Billion ¥)

8

150
7.8

7.7

7.6

120
106

123

100

Financial Section

7.1
6

105
100

6.1

90
74

4

50

60
33

47

45
38

2

0

30
–6

0

–50
2007

88

2008

2009

2010

2011

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

0
2007

2008

2009

2010

2011

2007

2008

2009

2010

2011

The Company judged that improvement in its business

In Japan, funds of ¥13.2 billion ($169.8 million) were

performance and financial position had been achieved

motorcycles and marine products segments, investments inthrough the steady implementation of structural reforms. As

association with the restructuring of domestic production

such, it submitted a proposal for the declaration of a year-end

systems and the acquisition of land and buildings toward an

dividend of ¥15.5 ($0.2) per share in accordance with aexpansion of the business scale of the industrial machinerypayout ratio of 20% at the 77th Ordinary General Meeting ofand robots business.

Shareholders, held on March 23, 2012.
Message from the Management

Overseas, funds of ¥31.8 billion ($409.1 million) wereapplied mainly to the implementation of new equipment andFund Procurement Conditions

expanded production capacity in the motorcycle business,

Group companies acquire short-term loans payableespecially in Asia (excluding Japan) and Central and South

denominated in local currencies to use as working capital.

America.

Meanwhile, funds for plant and equipment investment comeAs a result, total capital expenditures in fiscal 2011

primarily from internal reserves, including paid-in capital andamounted to ¥45.0 billion ($579.5 million).

Special Features

retained earnings.
The annual amounts of interest-bearing debt to be repaid

Cash Dividends

are as follows:(Billion ¥)The Company aims to actively invest for sustained growthand provide shareholder returns that reflect comprehensive

Total

1 year 1 to 2
or less years

2 to 3years

3 to 4years

4 to 5 More thanyears
5 years

Short-termloans payable

42.9

42.9

—

—

—

—

—

business performance and retained earnings, while maintain-

Long-termloans payable

231.8

69.4

77.5

63.0

11.0

10.9

—

ing a minimum dividend payout ratio of 20% of consolidated

Note Long-term loans payable includes current portion of long-term loans
payable.

net income.

Cash and cash equivalents at
the end of the year

Interest-bearing debt anddebt/equity ratio(Billion ¥)(Billion ¥)(Billion ¥)

240

400

322

180

300
134

29

30

120

17
0

137

230

134

117.6
100
97.8

200

102

88.5

60

100

150

275

50

43.3

–13
–106

–150
2007

2008

0
2009

2010

2011

0

0
2007

2008

2009

2010

2011

2007

2008

2009

Interest-bearing debt

2010

2011

Debt/equity ratio (%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201189

Financial Section

60

200
188.3

349

204

67

(%)

400

Corporate Information

Free cash flows

Overview of Operations

consideration of the business environment, including trends in

90

Operating Performanceallocated mainly to research and development activities in theMessage from the Management

Operating Performance

Financial Section

Management Discussion and Analysis of Operations

Share Performanceappreciation and increases in raw material prices, in addition

Price per share decreased from ¥1,323 at December 31,

to increases in research and development expenses and2010 to ¥974 ($12.5) at December 31, 2011. The number ofdepreciation in preparation for future growth.
The forecast is based on the assumption that theshares outstanding, excluding treasury stock, decreased from
349,097,035 shares at December 31, 2010 to 349,095,241

exchange rates are ¥77 against the U.S. dollar (an apprecia-

shares at December 31, 2011. As a result, the market capital-tion of ¥3 from the previous year) and ¥100 against the euroization of the Company decreased from ¥461.9 billion at(an appreciation of ¥11 from the previous year).

December 31, 2010 to ¥340.0 billion ($4,373.8 million) at
December 31, 2011.

Forecast for Fiscal 2012
In fiscal 2012, demand for motorcycles in emerging nations

Special Features

is expected to grow, primarily in Asia and Central and SouthAmerica. Demand for motorcycles and outboard motors in
the U.S. is expected to recover slowly after bottoming out.
On the other hand, demand for motorcycles in Europe is
expected to decline, due to a slowdown in the economy.

Overview of Operations

Based on these assumptions, the Company forecasts
the following for its consolidated financial results for fiscal
2012: an increase in sales, owing to an aggressive launchof new motorcycle models in emerging nations and higher
sales of marine products, including outboard motors; andFinancial Section

Corporate Informationa decline in profits, due to the large impact of further yen

Interest coverage

Cash dividends per share andpayout ratio(Times)

(¥)

20

40

Price/earnings ratio

394.3

15

41

20.1

(%)

(Times)

20

200

15

150

10

100

5

50

16.5

14.6

30

144.0

25.50

12.1
20

10

15.50

6.7
5.0
10

5

23.8
12.6
0

0
2007

2008

2009

2010

2011

Note
Interest coverage for fiscal 2008 is not listed, due tothe negative status of cash flows from operating activities
during the period.

90

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

2007

2008

0

0

2009

2010

Cash dividends per share

10.9
0
2011

Payout ratio (%)

Note
The payout ratio for fiscal 2009 is not listed,since the Company registered a net loss for the period.
The payout ratio for fiscal 2010 is not listed,since the Company did not pay out any dividends.

0
2007

2008

2009

2010

2011

Note
The price/earnings ratio for fiscal 2009 is not listed,since the Company registered a net loss for the period.

Financial Section

Five-Year Summary
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2007, 2008, 2009, 2010 and 2011

Millions of yen

2010

2011

¥1,756,707¥1,603,881¥1,153,642¥1,294,131¥1,276,159

181,586
1,575,120

170,208
1,433,672

130,437
1,023,205

142,378
1,151,752

146,503
1,129,656

1,056,212
289,867
265,606—
145,021
1,280,616
126,998
140,338
71,222
84,78954,5781,028,809
238,814213,259—
122,997
1,226,775
48,38258,872
1,851
94,391
59,606

817,058
150,113
100,577—
85,893
951,350(62,580)(68,340)(216,148)
46,03553,701

914,211167,141
102,968
34,75875,051
998,565
51,30866,142
18,30033,93936,594

887,556
178,929
100,257
34,32675,0891,000,113
53,40563,49526,96045,04933,578¥1,258,430
569,221¥1,163,173
428,483¥ 987,077
249,266¥ 978,343
310,809¥ 900,420
309,914¥¥

Special Features

2009

Message from the Management

At the year end
Total assets
Net assets

2008

Operating Performance

For the year ended
Net sales
Sales by market:
Japan
Overseas
Sales by product:
Motorcycles
Marine products
Power products
Industrial machinery and robots
Other products
Cost of sales
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Capital expenditures
Depreciation expenses

2007

Yen

¥

Number of employees

248.81248.7341.00¥

46,850

6.47
6.47
25.50

¥ (755.92)—
0.00

49,761

49,994

55.50
55.50
0.00
52,184

77.23
77.23
15.50
54,677

Overview of Operations

Per share amounts
Net income (loss)—basic
Net income—diluted
Cash dividends

Note Figures for the fiscal year ended December 31, 2009 and previous fiscal years are as per the previous segment classifications.

Corporate Information

Quarterly Financial Information
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Year ended December 31, 2011

Millions of yen
2nd Quarter
3rd Quarter

4th Quarter

For the period
Net sales
Operating income
Net income¥ 318,597
20,623
13,446¥ 663,132
41,54328,960¥ 985,751
60,72339,989¥1,276,159
53,40526,960At the end of period
Total assets
Net assets¥1,035,252
331,893¥1,000,787
345,656¥ 939,487
328,406¥ 900,420
309,914¥¥Yen

Per share amounts
Net income—basic
Net income—diluted

¥

38.52
38.51

¥

82.96
82.95

114.55114.55

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

77.23
77.23

91

Financial Section

1st Quarter

Financial Section

Consolidated Balance Sheets
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
December 31, 2010 and 2011
Thousands of
U.S. dollars (Note 6)

Millions of yen

2011

Current assets:
Cash and deposits¥205,362¥133,707$ 1,719,925

Notes and accounts receivable–trade (Notes 10 (2) and 10 (7))

183,711

166,531

2,142,153

Merchandise and finished goods (Note 10 (2))

136,308

134,215

1,726,460

Work-in-process (Note 10 (2))

37,42339,971

514,163

Raw materials and supplies (Note 10 (2))

39,90339,372506,457

Other (Note 10 (2))

43,82253,705

690,828

Allowance for doubtful receivables(7,503)(6,297)(81,001)

639,028

561,205

7,218,999

Buildings and structures, net (Notes 10 (1) and 10 (2))

83,63075,072965,680

Machinery, equipment and vehicles, net (Notes 10 (1) and 10 (2))

65,61065,140837,921Land (Notes 10 (2) and 10 (3))

72,48675,726

974,093

Construction in progress (Note 10 (2))

12,65817,936

230,718

Other, net (Notes 10 (1) and 10 (2))

15,935

14,554

187,214250,320

248,430

3,195,652

4,247

3,469

44,623

Investment securities (Notes 10 (2) and 10 (6))

35,31635,549457,281Long-term loans receivable (Note 10 (2))

37,03436,017463,301

Other (Notes 10 (2) and 10 (6))

13,86817,344

223,103

Allowance for doubtful receivables(1,473)(1,596)(20,530)

84,74587,314

1,123,154

339,314339,214

4,363,442¥978,343¥900,420$11,582,454

Total current assets
Noncurrent assets:
Property, plant and equipment:

Overview of Operations

Special Features

2011

ASSETS

Message from the Management

Operating Performance

2010

Corporate Information

Total property, plant and equipment
Intangible assets

Financial Section

Investments and other assets:

Total investments and other assets
Total noncurrent assets
Total assets
See accompanying notes to consolidated financial statements.

92

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Thousands of
U.S. dollars (Note 6)

Millions of yen

2010

2011

2011

Current liabilities:
Notes and accounts payable–trade (Note 10 (7))
Short-term loans payable (Note 10 (2))
Current portion of long-term loans payable (Note 10 (2))
Income taxes payable
Provision for product warranties
Other provision
Other
Total current liabilities¥ 121,974
42,91969,3982,853
9,292
25,112
1,137
93,727366,415$ 1,568,999
552,084
892,694
36,699119,527
323,025
14,626
1,205,647
4,713,339

229,410
7,009
35,423
20,882
1,529
8,147
302,401
667,533

162,403
6,143
39,611
6,261
1,329
8,341
224,090590,505

2,089,053
79,020509,532
80,53817,095
107,294
2,882,557
7,595,897

85,666
98,147
199,190(681)
382,323

85,666
74,582
249,478(683)
409,044

1,101,955
959,377
3,209,133(8,786)
5,261,693

2,719
10,186(120,977)(108,070)(1,470)11,050(137,860)(128,280)(18,909)
142,140(1,773,347)(1,650,116)

102
36,454
310,809¥ 978,343

109
29,042309,914¥ 900,420

1,402
373,579
3,986,545$11,582,454

Message from the Management

Provision for bonuses¥ 125,809
35,45557,5768,282
8,800
28,356
1,083
99,765365,131

Operating Performance

LIABILITIES

Noncurrent liabilities:
Long-term loans payable (Note 10 (2))
Provision for retirement benefits
Provision for product liabilities
Other provision
Other (Note 10 (2))
Total noncurrent liabilities

NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Treasury stock
Total shareholders’ equity

Corporate Information

Retained earnings

Overview of Operations

Total liabilities

Special Features

Deferred tax liabilities for land revaluation (Note 10 (3))

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Revaluation reserve for land (Note 10 (3))
Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets
See accompanying notes to consolidated financial statements.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

93

Financial Section

Foreign currency translation adjustment

Financial Section

Consolidated Statements of Income
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011
Thousands of
U.S. dollars (Note 6)

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance

Millions of yen

Net sales
Cost of sales (Notes 11 (1) and 11 (3))
Gross profit
Selling, general and administrative expenses (Notes 11 (2) and 11 (3))
Operating income
Non-operating income:Interest income
Dividends income
Equity in earnings of affiliates
Gain on revaluation of sales finance assets
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on revaluation of sales finance assets
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets (Note 11 (4))
Gain on sales of investment securities
Gain on transfer of businessTotal extraordinary income
Extraordinary loss:
Loss on sales of noncurrent assets (Note 11 (5))
Loss on disposal of noncurrent assets (Note 11 (6))
Impairment loss (Note 11 (7))
Loss on sales of investment securities
Loss on cancellation of lease contracts
Loss on adjustment for changes of accounting standard for asset retirement obligations
Loss on disaster (Note 11 (8))
Total extraordinary losses
Income before income taxes
Income taxes:
Current
Deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

2010

2011

2011

¥1,294,131
998,565
295,565
244,256
51,308¥1,276,159
1,000,113
276,046
222,640
53,405$16,415,732
12,864,844
3,550,888
2,863,905
686,969

8,734
676
2,516
—
4,072
13,071
29,071

8,324
525
3,218
344
—
11,40823,821

107,075
6,753
41,394
4,425—
146,746
306,419

8,023
321
—
5,892
14,23866,142

6,814
—
3,138
3,779
13,732
63,49587,651—40,365
48,611
176,640
816,761

544
34
106
685

323
—
—
323

4,155
—
—
4,155

175
1,038
6,628
3
34
—
—
7,879
58,947

149
735
776
81
—
552
316
2,610
61,207

1,917
9,455
9,982
1,042
—
7,101
4,065
33,573
787,330

31,671
126
31,798—8,849
18,30026,477396
26,87334,333
7,372
26,960340,584
5,094
345,678441,639
94,829346,797¥¥$

See accompanying notes to consolidated financial statements.

Financial Section

Consolidated Statements of Comprehensive Income
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 20112010
Income before minority interests
Other comprehensive income:
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income (Note 12 (2))
Comprehensive income (Note 12 (1))
Attributable to:
Owners of the parent
Minority interests
See accompanying notes to consolidated financial statements.

94

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Thousands of
U.S. dollars (Note 6)

Millions of yen

2011

2011

¥—

¥ 34,333$ 441,639

—
—
—
—
—
¥—

(4,186)865(21,968)(386)(25,675)¥ 8,658(53,846)
11,127(282,583)(4,965)(330,268)$ 111,371¥——¥ 6,752
1,905$ 86,854
24,505Financial Section

Consolidated Statements of Changes in Net Assets
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011
Thousands of
U.S. dollars (Note 6)

Millions of yen

2011¥ 48,342¥ 85,666$1,101,955

37,323——37,323——85,666

85,666

1,101,955

60,824

98,147

1,262,503

Capital stock:
Balance at the end of previous period
Changes in items during the period:
Issuance of new stocks
Total of changes in items during the period
Balance at the end of current period
Capital surplus:
Balance at the end of previous period
Changes in items during the period:
Issuance of new stocks
Deficit disposition

37,323———(23,565)(303,126)00(23,565)(303,126)

98,14774,582

959,377

180,880

199,190

2,562,259—

23,565

303,126

Total of changes in items during the period
Balance at the end of current period
Retained earnings:
Balance at the end of previous period

Special Features

037,323

Disposal of treasury stock

Message from the Management

2011

Operating Performance

2010
Shareholders’ equity

Changes in items during the period:
Deficit disposition
Net income
Increase of consolidated subsidiaries

1

13

26,960346,797

(12)

(251)

(3,229)11

141

50,288646,874

199,190

249,478

3,209,133

(677)

(681)

(8,760)

(3)

(2)

(26)

Total of changes in items during the period
Treasury stock:
Balance at the end of previous period
Changes in items during the period:
Acquisition of treasury stock
Disposal of treasury stock
Total of changes in items during the period
Balance at the end of current period

¥

0

0

0

(3)

(2)

(26)

(681)

¥

(683)

$

Corporate Information—
18,309Decrease in subsidiaries and affiliates accounted for by the equity method
Balance at the end of current period

21
18,300Overview of Operations

Reversal of revaluation reserve on land

(8,786)
Financial Section

See accompanying notes to consolidated financial statements.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201195

Financial Section

Consolidated Statements of Changes in Net Assets

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Thousands of
U.S. dollars (Note 6)

Millions of yen

2010

2011

2011

¥ 289,369¥ 382,323$ 4,917,970

74,647——

Deficit disposition

—

0

0

Reversal of revaluation reserve on land

21

1

13

18,30026,960346,797

Increase of consolidated subsidiaries

(12)

(251)

(3,229)Decrease in subsidiaries and affiliates accounted for by the equity method

—

11

141

Acquisition of treasury stock

(3)

(2)

(26)

Disposal of treasury stock

0

0

0

92,953

26,720343,710382,323

409,044

5,261,693

4,039

2,719

34,976

Net changes of items other than shareholders’ equity(1,320)(4,190)(53,898)

Total of changes in items during the period(1,320)(4,190)(53,898)

2,719(1,470)(18,909)

10,208

10,186

131,026(21)

863

11,101(21)
10,186863
11,050

11,101
142,140(91,220)(120,977)(1,556,174)(29,757)(29,757)¥(120,977)(16,883)(16,883)¥(137,860)(217,173)(217,173)$(1,773,347)

Operating Performance

Total shareholders’ equity:
Balance at the end of previous period
Changes in items during the period:
Issuance of new stocks

Message from the Management

Net income

Total of changes in items during the period

Special Features

Balance at the end of current period
Total accumulated other comprehensive income
Valuation difference on available-for-sale securities:
Balance at the end of previous period

Overview of Operations

Changes in items during the period:

Balance at the end of current period
Revaluation reserve for land:
Balance at the end of previous period
Changes in items during the period:
Net changes of items other than shareholders’ equity
Total of changes in items during the period

Corporate Information

Balance at the end of current period
Foreign currency translation adjustment:
Balance at the end of previous period
Changes in items during the period:
Net changes of items other than shareholders’ equity
Total of changes in items during the period
Balance at the end of current period

Financial Section

See accompanying notes to consolidated financial statements.

96

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Thousands of
U.S. dollars (Note 6)

Millions of yen

2011

2011

Balance at the end of previous period¥ (76,971)¥(108,070)$(1,390,147)(31,099)(20,209)(259,956)

Changes in items during the period:
Net changes of items other than shareholders’ equity(20,209)(259,956)(128,280)(1,650,116)

72

102

1,312

Net changes of items other than shareholders’ equity

30

6

77

Total of changes in items during the period

30

6

77

102

109

1,402

36,79636,454

468,922Net changes of items other than shareholders’ equity(342)(7,412)(95,343)

Total of changes in items during the period(342)(7,412)(95,343)

36,45429,042

373,579

249,266

310,8093,998,058

74,647——

Subscription rights to shares
Balance at the end of previous period
Changes in items during the period:

Balance at the end of current period

Message from the Management(31,099)(108,070)

Total of changes in items during the period
Balance at the end of current period

Operating Performance2010
Total accumulated other comprehensive income:Minority interests
Changes in items during the period:

Balance at the end of current period

Special Features

Balance at the end of previous period

Total net assets
Changes in items during the period:
Issuance of new stocks

1

13

26,960346,797

Increase of consolidated subsidiaries

(12)

(251)

(3,229)Decrease in subsidiaries and affiliates accounted for by the equity method

—

11

141

Acquisition of treasury stock

(3)

(2)

(26)

Net income

Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total of changes in items during the period
Balance at the end of current period

0

0

0

(31,410)61,543¥ 310,809(27,615)(895)¥ 309,914(355,223)(11,513)$ 3,986,545

Corporate Information

21
18,300

Reversal of revaluation reserve on land

Overview of Operations

Balance at the end of previous period

See accompanying notes to consolidated financial statements.
Financial Section

Yamaha Motor Co., Ltd. ⎜ Annual Report 201197

Financial Section

Consolidated Statements of Cash Flows
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011
Thousands of
U.S. dollars (Note 6)

Millions of yen

Financial Section

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance2010
Net cash provided by (used in) operating activities:
Income before income taxes
Depreciation and amortization
Impairment loss
Loss (gain) on transfer of business
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for product liabilities
Interest and dividends income
Interest expenses
Equity in (earnings) losses of affiliates
Loss (gain) on sales of property, plant and equipment and intangible assets
Loss (gain) on disposal of property, plant and equipment and intangible assets
Loss (gain) on sales of investment securities
Loss on adjustment for changes of accounting standard for asset
retirement obligations
Decrease (increase) in notes and accounts receivable–trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable–trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refund (Note 14 (2))
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for long-term loans receivableCollections of long-term loans receivable
Proceeds from transfer of business
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities:
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of common stock
Cash dividends paid to minority shareholders
Decrease (increase) in treasury stock
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of period (Note 14 (1))
See accompanying notes to consolidated financial statements.

98

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

2011

2011

¥ 58,947
36,594
6,628
(106)
263
1,513
(2,165)(9,410)8,023(2,516)
(369)
1,038
(30)

¥ 61,207
33,578
776
—
(466)
4,840
(14,429)(8,850)6,814(3,218)
(174)
735
81

$ 787,330
431,927
9,982—(5,994)62,259(185,606)(113,841)
87,651(41,394)(2,238)
9,455
1,042

—
(6,774)(8,394)
22,377
6,160
111,779
11,213(8,613)(9,848)104,531552
958(11,229)
5,665(14,264)
62,578
10,321(6,691)(32,879)
33,328

7,101
12,323(144,443)
72,871(183,483)
804,965
132,763(86,069)(422,935)
428,711(3,252)
1,959(31,867)
2,048
(3)
51
(4,437)971
250(3,352)(37,632)(1,400)3,084(42,550)
1,234(3,628)
8(4,940)
2,646
—
(970)
(46,517)(18,009)39,671(547,337)
15,873(46,668)
103(63,545)
34,037—(12,477)(598,366)(45,711)21,719(38,473)
74,647(6,355)
(3)
(526)
5,296
(5,605)66,590137,219
68¥203,878

10,335
21,469(78,274)—(4,924)(2)(530)(51,927)(5,266)(70,382)
203,878
97¥133,593

132,943
276,164(1,006,869)—(63,339)(26)(6,818)(667,957)(67,739)(905,351)
2,622,562
1,248$ 1,718,459

Financial Section

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

1. Basis of Presentation

2. Scope of Consolidation

Total assets, net sales, net income or loss, retained earnings
and other financial indexes of non-consolidated subsidiaries,
including HL Yamaha Motor Research Centre Sdn. Bhd., were
not significant in the aggregate to the Company’s consolidated
financial statements. Therefore, these companies were excluded
from the Company’s scope of consolidation.
* Toyo Seiki Co., Ltd. changed its name to TOYOBESQ CO., LTD. on
January 1, 2011.

3. Scope of Application of Equity Method of Accounting

4. Closing Date for Consolidated Subsidiaries
The final date of the business year for all the Company’s consolidated subsidiaries is established in accordance with the Company’s
annual closing date for its consolidated financial accounting.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201199

Financial Section

Effective from the fiscal year ended December 31, 2011, Motor
Center BCN S.A., which was a non-consolidated subsidiaryaccounted for by the equity method of accounting, has beenchanged to a consolidated subsidiary in view of its increased
significance. Additionally, Onahama Marina Co., Ltd., which was
an affiliate accounted for by the equity method of accounting,was excluded from the scope of application of the equity methodof accounting due to its liquidation.
Four non-consolidated subsidiaries including Yamaha Motor
Cambodia Co., Ltd., and an affiliate, Y2 Marine ManufacturingCo., Ltd., were individually insignificant to the Company’s
consolidated net income or loss, consolidated retained earnings
and other consolidated financial indexes, and were not significant
in the aggregate. Therefore, the Company’s investments in thesecompanies were stated at cost, instead of being accounted forby the equity method of accounting.
(Changes in accounting policies)
Effective from the fiscal year ended December 31, 2011, theCompany has applied the Accounting Standard for Equity
Method of Accounting for Investments (Accounting Standards
Board of Japan (“ASBJ”) Statement No. 16; March 10, 2008)
and the Practical Solution on Unification of Accounting Policies
Applied to Associates Accounted for Using the Equity Method(ASBJ Practical Issues Task Force No. 24; March 10, 2008),
and has made necessary revisions on the consolidated
financial statements.
The application of the said accounting standard, etc. has no
significant impact on the statement of income.

Corporate Information

Number of non-consolidated subsidiaries accounted for by
the equity method of accounting: 6
HL Yamaha Motor Research Centre Sdn. Bhd. and 5 othersubsidiaries
Number of affiliates accounted for by the equity method of
accounting: 25
Chongqing Jianshe Yamaha Motor Co., Ltd. and 24 otheraffiliates

Overview of Operations

Effective from the fiscal year ended December 31, 2011, Motor
Center BCN S.A., which was a non-consolidated subsidiaryaccounted for by the equity method of accounting, and PT.
Melco Indonesia and Yamaha Motor Electronics do Brasil Ltda.,
which were non-consolidated subsidiaries, have been included in
the scope of consolidation in view of their increased significance.

Additionally, Yamaha Motor Espana Marketing, S.L., which was
newly established in the fiscal year ended December 31, 2011,
has been included in the scope of consolidation.
On the other hand, Besq. Co., Ltd., which was a consolidated subsidiary, was excluded from the scope of consolidation
due to an absorption-type merger with Toyo Seiki Co., Ltd.*,
which was also a consolidated subsidiary, as the surviving
company.

Special Features

Number of consolidated subsidiaries: 107
Number of non-consolidated subsidiaries: 10
Names of principal consolidated subsidiaries:
Yamaha Motorcycle Sales Japan Co., Ltd., Yamaha Motor
Powered Products Co., Ltd., Yamaha Motor Corporation,
U.S.A., Yamaha Motor Manufacturing Corporation ofAmerica, Yamaha Motor Europe N.V., MBK Industrie, PT.
Yamaha Indonesia Motor Manufacturing, Yamaha Motor
Vietnam Co., Ltd., Thai Yamaha Motor Co., Ltd., Yamaha
Motor Taiwan Co., Ltd., and Yamaha Motor do Brasil Ltda.

Message from the Management

the application and disclosure requirements of the International
Financial Reporting Standards.
The text in the sections which follow comprise the English
version of the securities report.
As permitted by the Financial Instruments and ExchangeAct, amounts of less than one million yen have been omitted.
Consequently, the totals shown in the accompanying consolidated financial statements (both in yen and U.S. dollars) do notnecessarily equal the sum of the individual amounts.

Operating Performance

Yamaha Motor Co., Ltd. (The “Company”) and its domestic
subsidiaries maintain their accounting records and prepare theirfinancial statements in accordance with accounting principles
generally accepted in Japan, and its foreign subsidiaries maintaintheir books of account in conformity with those of their countriesof domicile.
The accompanying consolidated financial statements havebeen prepared in accordance with accounting principles generally
accepted in Japan, which are different in certain respects from

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Financial Section

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance

5. Accounting Standards(1) Asset Valuation
1) Securities
Other securities
Marketable securities classified as other securities arecarried at fair value, based on market prices as of thebalance sheet date.
(Any changes in unrealized holding gain or loss, net ofthe applicable income taxes, are included directly in net
assets. The cost of securities sold is determined by themoving average method.)
Non-marketable securities classified as other securities
are carried at cost, determined by the moving-averagemethod.
2) Derivatives
Derivatives are carried at fair value.
3) Inventories
Inventories are stated at cost, determined primarily by theaverage method. (Values stated in the balance sheets arecomputed through the write-down of book value due to lower
profitability.)(2) Depreciation and Amortization of Assets
1) Property, plant and equipment (excluding leased assets)
Depreciation of property, plant and equipment is computed
primarily by the declining-balance method.
2) Intangible assets (excluding leased assets)
Amortization of intangible assets is computed by the straightline method.
Amortization of capitalized software for internal use iscomputed by the straight-line method over the software’s
estimated useful life (five years).
3) Leased assets
Leased assets involved in finance lease transactions whichtransfer ownership
Computed using the same depreciation method
applicable to self-owned fixed assets.
Leased assets involved in finance lease transactions which do
not transfer ownership
Computed based on the assumption that the useful life
equals the lease term, and the residual value equals zero.
Those finance lease transactions which do not transfer ownership, where the lease transaction start date wasprior to December 31, 2008, are computed based on an
accounting method similar to the method for ordinary
rental transactions.
(3) Significant Accruals
1) Allowance for doubtful receivables
In order to evaluate accounts receivable–trade, and loans
and other equivalents, an allowance for doubtful receivables
is provided at an amount determined based on the historicalexperience of bad debt with respect to ordinary receivables,
plus an estimate of uncollectible amounts determined byreference to specific doubtful receivables from customers
who are experiencing financial difficulties.
2) Provision for bonuses
Provision for bonuses are stated at an estimated amount of
the bonuses to be paid to employees, and to personnel working concurrently as Directors, based on their services for thecurrent fiscal period.

100

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

3) Provision for bonuses for Directors
Provision for bonuses for Directors are stated at an estimatedamount of the bonuses to be paid to Directors, based on theirservices for the current fiscal period.
4) Provision for product warranties
Provision for product warranties are provided to coverafter-sale service expenses anticipated to be incurred during
the warranty periods of products sold, as well as expenses
associated with the quality of products sold, at a specificallyestimated amount, plus an amount estimated by multiplying
sales during the warranty period by a factor (after-sales
service expenses/sales of products) based on actual costsin the past years and sales during the warranty period.
5) Provision for retirement benefits
Provision for retirement benefits are provided mainly at
an amount, deemed generated on December 31, 2011,
calculated based on the retirement benefit obligation and thefair value of the pension plan assets as of the balance sheet
date, as adjusted for unrecognized actuarial gain or loss andunrecognized prior service cost.
Prior service cost is being amortized as incurred by thestraight-line method over a period, 10 years, which is shorter
than the average remaining years of service of the employees.
Actuarial gain and loss are amortized in the year following
the year in which the gain or loss is recognized, by thestraight-line method, over a period, 10 years, which is shorter
than the average remaining years of service of the employees.
6) Provision for product liabilities
Provision for product liabilities are provided, at an estimatedamount of payments based on the actual results in past
years, for liabilities that are not covered by product liability
insurance.
(4) Amortization Method and Period for Amortization of
Goodwill
The difference between the cost and the underlying net equity atfair value of investments in consolidated subsidiaries (“goodwill”)
is amortized by the straight-line method over years estimated,based on substantive judgment as incurred.
(5) Range of Funds in the Consolidated Statements ofCash Flows
In the consolidated statements of cash flows, funds (cash andcash equivalents) include cash on hand, deposits that can bewithdrawn when needed, and short-term investments with amaturity of less than three months from the date of acquisition
that are marketable and subject to minimum fluctuation in value.
(6) Other Items of Significance in Drawing up Consolidated
Financial Statements
1) Consumption taxes
Transactions subject to national and/or local consumption tax
are recorded at an amount exclusive of the consumption
taxes.
2) Application of consolidated tax return system
The Company applies the Consolidated Tax Return System.

6. U.S. Dollar Amounts
The translation should not be construed as a representationthat yen have been, could have been, or could be converted into
U.S. dollars at this or any other rate.

Operating Performanceand the Guidance on Accounting Standard for Asset Retirement
Obligations (ASBJ Guidance No. 21; March 31, 2008).
The application of the said accounting standard, etc. has no
significant impact on the statement of income.

Message from the Management

The translation of yen amounts into U.S. dollar amounts is
included solely for the convenience of readers outside Japan andhas been made, as a matter of arithmetic computation only, at¥77.74 = U.S.$1.00, the approximate rate of exchange in effectat December 31, 2011.
7. Changes in Accounting Principles and Procedures(Application of “Accounting Standard for Asset Retirement
Obligations”)
Effective from the fiscal year ended December 31, 2011,
the Company has applied the Accounting Standard for Asset
Retirement Obligations (ASBJ Statement No. 18; March 31, 2008)
8. Changes in Presentation

No. 5; March 24, 2009) based on the Accounting Standard forConsolidated Financial Statements (ASBJ Statement No. 22;
December 26, 2008). As a result, an account of “Income before
minority interests” is presented in the Consolidated Statements ofIncome.

Special Features

Consolidated Statements of Income
Effective from the fiscal year ended December 31, 2011,
the Company has applied the Cabinet Office Ordinance ofPartial Amendment to Regulation for Terminology, Forms andPreparation of Financial Statements (Cabinet Office Ordinance
9. Additional Information

2010). However, the amounts of “Accumulated other comprehensive income” and “Total accumulated other comprehensive
income” in the previous fiscal year are recorded as the amountsof “Valuation and translation adjustments” and “Total valuationand translation adjustments.”

10. Consolidated Balance Sheets

Overview of Operations(Application of Accounting Standard for Presentation ofComprehensive Income)
Effective from the fiscal year ended December 31, 2011, theCompany has applied the Accounting Standard for Presentationof Comprehensive Income (ASBJ Statement No. 25, June 30,

Information regarding consolidated balance sheets at December 31, 2010 and 2011 is as follows.
(1) Accumulated depreciation of property, plant and equipment

2010¥515,8762011¥509,550

2011$6,554,541

Corporate Information

Thousands of
U.S. dollars

Millions of yen

Financial Section

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011101

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Operating Performance(2) Pledged assets and secured liabilities

Corporate Information

Overview of Operations

Special Features

Message from the Management

2010

2011

2011

Pledged assets:
Notes and accounts receivable–trade
Merchandise and finished goods
Work-in-process
Raw materials and supplies
Current assets—other
Buildings and structures
Machinery, equipment and vehicles
Land
Construction in progress
Property, plant and equipment—other
Investment securities
Long-term loans receivable
Investments and other assets—otherTotal¥ 61,144
648
783
3,473
9,842
166
9,229
44
295
309
38
21,2762,486¥109,739¥ 56,296
1,217
1,022
2,477
11,888
322
7,943
95
833
286
50
21,101
5,730¥109,265$ 724,157
15,655
13,146
31,863
152,920
4,142
102,174
1,222
10,715
3,679
643
271,430
73,707$1,405,518

Secured liabilities:
Short-term loans payable
Current portion of long-term loans payable
Long-term loans payableNoncurrent liabilities—otherTotal¥ 10,656—
26,752
1,233¥ 38,643¥ 11,794
3,256
33,558397¥ 49,006$ 151,711
41,883431,670
5,107$ 630,383(3) Pursuant to the “Law Concerning the Revaluation of Land”(No. 24, enacted on March 31, 1999), land used for theCompany’s business operations was revalued. The income
tax effect of the difference between the book value and therevalued amount has been presented under liabilities as“Deferred tax liabilities for land revaluation” and the remainingbalance has been presented under net assets as“Revaluation reserve for land” in the accompanying
consolidated balance sheets.
a) Date of revaluation March 31, 2000b) Method of revaluation
Under Item 4 of Article 2 of the Order For Enforcement on
Law on Revaluation of Land (No. 119 of the 1998 Cabinet

Financial Section

Thousands of
U.S. dollars

Millions of yen

Order, promulgated on March 31, 1998), the land price forthe revaluation was determined based on the official
notice prices assessed and published by the Chief Officerof the National Tax Administration, as provided by Article
16 of the Law Concerning Public Notification of Land
Prices. The appropriate adjustments were made to reflect
these official notice prices.
c) Fair value of the land used for business after revaluation
The fair value of the land used for business after revaluation at the end of fiscal 2010 and 2011 was below its
book value by ¥6,287 million and ¥6,787 million ($87,304
thousand), respectively.

(4) Guarantee obligations
Guarantees are given for the following companies’ loans from financial institutions.
Thousands of
U.S. dollars

Millions of yen

2010
Subsidiaries or affiliates:
Amagasaki Woodland of Health Co., Ltd.
Other companies:
Enrum Marina Muroran Inc.
Marina Kawage Co., Ltd.
Total

2011

2011

¥293

¥268

$3,447

57
15
¥365

49
5
¥323

630
64
$4,155

Guarantee obligations described above include ¥308 million and ¥274 million ($3,525 thousand) at the end of fiscal 2010 and2011 arising from acts resembling guarantees.

102

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

(5) Discounts on notes receivable–trade

2010

2011
¥1,765¥2,414

2011$31,052(6) Investment securities and investment in partnerships with non-consolidated subsidiaries and affiliates are as follows.
Thousands of
U.S. dollars

Millions of yen

2010¥17,825756

2011¥18,637244

2011$239,735
3,139(7) Notes maturing at the end of the fiscal year were settled on the date of clearing. As the end of fiscal 2010 and 2011 fell on a holiday
for financial institutions in Japan, the following notes maturing on the fiscal year-end date are included in the balance as of the fiscal
year-end.
Thousands of
U.S. dollars

Millions of yen

2011¥1,025
260

¥942
250

2011
$12,117
3,216

Special Features

2010
Notes receivable–trade
Notes payable–trade

Message from the Management

Investment securities (stock)
Investment in partnerships

Operating Performance

Thousands of
U.S. dollars

Millions of yen

11. Consolidated Statements of Income
Information regarding consolidated statements of income for the years ended December 31, 2010 and 2011 is as follows.

Thousands of
U.S. dollars

Millions of yen

2010¥(4,281)2011¥(1,115)2011$(14,343)

Corporate Information(2) Breakdown of major selling, general and administrative expenses
Millions of yen

2010¥30,504
15,476
1,376
71,392
2,160
4,446

Millions of yen

Transportation expenses
Provision for product warranties
Provision for allowance for doubtful accounts
Salaries
Provision for bonuses
Provision for retirement benefits

2011¥30,278
11,428
1,681
69,725
3,017
4,940

Thousands of
U.S. dollars

2011$389,478
147,003
21,623896,900
38,80963,545

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

103

Financial Section

Transportation expenses
Provision for product warranties
Provision for allowance for doubtful accounts
Salaries
Provision for bonuses
Provision for retirement benefits

Overview of Operations(1) Loss on devaluation of inventories after reversal of refund by the lower of cost or market method following write-down of book value
due to lower profitability included in cost of sales

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Operating Performance(3) Research and development expenses included in selling, general and administrative expenses and manufacturing costs
Thousands of
U.S. dollars

Millions of yen

2010¥55,1832011¥65,0152011$836,313(4) Breakdown of gain on sales of noncurrent assets
Millions of yen
Message from the Management

2010
¥ 76
434
33
¥544

Buildings and structures
Machinery, equipment and vehicles
Other
Total

Millions of yen

Thousands of
U.S. dollars

2011

2011
¥290
33
¥323

Special Features

Machinery, equipment and vehicles
Other
Total

$3,730424$4,155(5) Breakdown of loss on sales of noncurrent assets
Millions of yen

2010
Overview of Operations
Corporate Information

¥156
18
¥175

Machinery, equipment and vehicles
Other
Total

Millions of yen

Thousands of
U.S. dollars

2011

2011
¥ 22
76
50
¥149

Buildings and structures
Machinery, equipment and vehicles
Other
Total

$ 283
978
643
$1,917(6) Breakdown of loss on disposal of noncurrent assets
Thousands of
U.S. dollars

Millions of yen

2010
Financial Section

Buildings and structures
Machinery, equipment and vehicles
Other
Total

104

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

2011
¥ 300
328
408
¥1,038

2011
¥281
256
196
¥735

$3,615
3,293
2,521$9,455

(7) Details concerning impairment loss
Operating Performance

Fiscal year ended December 31, 2010
1) Summary of asset groups for which impairment loss has been identified
Impairment loss
Millions of yen
Use

Location

Item

2010

4) Computation of recoverable values
The recoverable value was computed by the appraisal
value or the net sale value reasonably calculated andobtained using the disposal price.

Overview of Operations3) Background to the recognition of impairment loss
Since a delay in profitability recovery is forecasted as aresult of a review of future business plans conducted in
the fiscal year ended December 31, 2010, principally at
the consolidated subsidiary in India, impairment loss wasrecognized in the motorcycle business. Impairment loss
was also identified among idle assets not serving businessuses. Specifically, losses were recognized for those idle
assets whose market prices have significantly declined
from their book values.

Special Features

2) Method for grouping assets
An asset group is defined as the minimum unit within abusiness segment that generates cash flows, generally
independent from other asset groups in that segment.

Message from the Management¥1,369
4,039
134
413
¥5,957
¥ 309
6
298
56
¥ 670

Buildings and structures
Machinery, equipment and vehicles
Motorcycles India, other
Other
Intangible assets
Total
Buildings and structures
Kakegawa City
Machinery, equipment and vehicles
Idle assets(Shizuoka, Japan), Land
Other
other
Total

Fiscal year ended December 31, 2011
No related items.
Corporate Information(8) Details concerning loss on disasterFiscal year ended December 31, 2010
No related items.
Fiscal year ended December 31, 2011

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Financial Section

Loss on disaster accounts for the losses from the earthquake which occurred in March 2011. These losses are principally the
expenses for repair of damaged assets, relief support for business partners affected by the earthquake and relief supplies for thestricken areas.

105

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Operating Performance

12. Consolidated Statements of Comprehensive Income
Information regarding consolidated statements of comprehensive income for the years ended December 31, 2010 and 2011 is as follows.
Fiscal year ended December 31, 2010
No related items.

Message from the Management

Fiscal year ended December 31, 2011
(1) Comprehensive income in the previous fiscal year
Millions of yen

2010¥(12,777)
6,107¥ (6,669)

Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests
Total(2) Other comprehensive income in the previous fiscal year

Overview of Operations

Special Features

Millions of yen

2010¥ (1,321)(31,289)(1,208)¥(33,819)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted for using equity method
Total

13. Consolidated Statements of Changes in Net Assets
Information regarding consolidated statements of changes in net assets for the years ended December 31, 2010 and 2011 is as follows.
Fiscal year ended December 31, 2010
(1) Type and number of outstanding shares
SharesIncrease in the number ofshares during the fiscal
year under review

Decrease in the numberof shares during the fiscal
year under review

Number of shares as ofDecember 31, 2010

63,250,000

0349,757,784

Note The reasons for the increase or decrease in the number of shares are as follows:• Increase due to issuance of new shares through public offering:• Increase due to issuance of new shares through third-party allocation:

55,000,000 shares
8,250,000 shares

Corporate Information

Number of shares asof December 31, 2009

Capital stock

286,507,784(2) Type and number of treasury stocks
Financial Section

SharesNumber of shares asof December 31, 2009

Capital stock

658,149

Increase in the number ofshares during the fiscal
year under review

Decrease in the numberof shares during the fiscal
year under review

Number of shares as ofDecember 31, 2010

2,776

176

660,749

Note The reasons for the increase or decrease in the number of shares are as follows:• Increase due to the purchase of less-than-one-unit shares from shareholders:• Increase due to the acquisition of subsidiaries and affiliates accounted for by the equity method:• Decrease due to requests for additional purchase of less-than-one-unit shares by shareholders:106

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

1,652 shares
1,124 shares
176 shares(3) Subscription rights to shares and own subscription rights to shares

Yamaha MotorCo., Ltd.

Subscription rights
to shares as stock
options Note
Total

—
—

Number of shares issued by the exercise ofsubscription rights to shares (shares)
Increase during Decrease during
December 31, the fiscal year
the fiscal year
December 31,
2009
under review
under review
2010

—
—

—
—

—
—

Balance as ofDecember 31, 2010

Millions of yen——

Operating Performance

Classification

Description ofsubscription rights
to shares

Type of shares
to be issued by
the exercise ofsubscription
rights to shares

¥102
¥102

(4) Dividends• Amount of dividends paid
No related items.

Message from the Management

Note The exercise periods of the fifth and sixth subscription rights to shares are June 16, 2011 through June 15, 2015 and June 15, 2012 through June 14, 2016,
respectively. Thus, the first day of the exercise periods has not come as of the end of the fiscal year ended December 31, 2010.

• Dividends whose record date falls in fiscal 2010 and whose effective date falls in fiscal 2011.
No related items.
Special Features

Fiscal year ended December 31, 2011
(1) Type and number of outstanding shares
SharesNumber of shares asof December 31, 2010

Decrease in the numberof shares during the fiscal
year under review

Number of shares as ofDecember 31, 2011

00349,757,784

Increase in the number ofshares during the fiscal
year under review

Decrease in the numberof shares during the fiscal
year under review

Number of shares as ofDecember 31, 2011

1,918

124

662,543

349,757,784

Capital stock(2) Type and number of treasury stocks
SharesNumber of shares asof December 31, 2010

660,749

Capital stock

Corporate Information

Note The reasons for the increase or decrease in the number of shares are as follows:• Increase due to the purchase of less-than-one-unit shares from shareholders:• Increase due to the acquisition of subsidiaries and affiliates accounted for by the equity method:• Decrease due to requests for additional purchase of less-than-one-unit shares by shareholders:

795 shares
1,123 shares
124 shares(3) Subscription rights to shares and own subscription rights to shares

Yamaha MotorCo., Ltd.

Subscription rights
to shares as stock
options Note
Total

—
—

Number of shares issued by the exercise ofsubscription rights to shares (shares)
Increase during Decrease during
December 31, the fiscal year
the fiscal year
December 31,
2010
under review
under review
2011

—
—

—
—

—
—

—
—

Balance as ofDecember 31, 2011
Millionsof yenThousands of
U.S. dollars

¥109
¥109

$1,402$1,402

Note The exercise period of the sixth subscription rights to shares is June 15, 2012 through June 14, 2016. Thus, the first day of the exercise period has notcome as of the end of the fiscal year ended December 31, 2011.

(4) Dividends• Amount of dividends paid
No related items.
• Dividends whose record date falls in fiscal 2011 and whose effective date falls in fiscal 2012
Resolution

Type of share

Total amount of dividends

Resource of dividends

Millions of yen

Ordinary General Meetingof Shareholders held on
March 23, 2012

Capital stock¥5,411Dividend per share

Record date

Effective date

December 31,
2011

March 26,
2012

Yen

Retained earnings¥15.50

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

107

Financial Section

Classification

Description ofsubscription rights
to shares

Type of shares
to be issued by
the exercise ofsubscription
rights to shares

Overview of Operations

Increase in the number ofshares during the fiscal
year under review

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Message from the Management

Operating Performance

14. Consolidated Statements of Cash Flows
Information regarding consolidated statements of cash flows for the years ended December 31, 2010 and 2011 is as follows.
(1) Reconciliation of “cash and cash equivalents” as of December 31, 2010 and 2011 to amounts in the various accounts appearing in
the accompanying consolidated balance sheets
Thousands of
U.S. dollars

Millions of yen

Cash and deposits
Time deposits with maturity in excess of three months
Other current assets
Cash and cash equivalents

2010¥205,362(2,016)532¥203,8782011¥133,707(354)
240¥133,593

2011$1,719,925(4,554)
3,087$1,718,459(2) Income taxes (paid) refund includes a ¥13,835 million refund on transactions in fiscal 2010 at consolidated subsidiary Yamaha Motor
Corporation, U.S.A.

Information regarding leases for the years ended December 31, 2010 and 2011 is as follows.
Fiscal year ended December 31, 2010
(1) Finance lease transactions (as a lessee)
Finance lease transactions which do not transfer ownership
1) Subject leased assets
Property, plant and equipment
Mainly vehicles
2) Depreciation method of leased assets
As described in sub-section (2), “Depreciation andAmortization of Assets,” of section (5) “AccountingStandards.”

Those finance lease transactions which do not transfer ownership, where the transaction start date was priorto December 31, 2008, are computed based on an
accounting method similar to the method for ordinary
rental transactions, described below.

a) Amounts equivalent to acquisition cost, accumulated depreciation and the net book value of leased property at December 31,
2010

Corporate Information

Overview of Operations

Special Features

15. Lease Information

Acquisition cost

Other (tools, furniture and fixtures)¥5,351Millions of yen
Accumulated
depreciation Net book value¥5,019¥332

Acquisition costs of leased property were computed based on the inclusion of their interest portion, due to the lower ratio of
the balance for future minimum lease payments to the balance for property, plant and equipment at the end of the fiscal year.
Financial Sectionb) Amounts equivalent to future minimum lease payments at December 31, 2010
Millions of yen

Payable within one year
Payable after one year
Total

¥178
153
¥332

Future minimum lease payments of leased property were computed based on the inclusion of their interest portion, due to thelower ratio of the balance for future minimum lease payments to the balance for property, plant and equipment at the end of the
fiscal year.
c) Amounts equivalent to lease payments and depreciation
Millions of yen

Lease payments
Depreciation

¥427
427

d) Computation of amounts equivalent to depreciation
The computation of amounts equivalent to depreciation is made by the straight-line method, assuming that useful life equals tothe lease term and the residual value equals to zero.

108

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Millions of yen¥1,0192,779¥3,799

Payable within one year
Payable after one year
Total

Operating Performance(2) Operating lease transactions
Future minimum lease payments for noncancellable operating lease transactions

Fiscal year ended December 31, 2011
Message from the Management(1) Finance lease transactions (as a lessee)
Finance lease transactions which do not transfer ownership
1) Subject leased assets
Property, plant and equipment
Mainly machinery, equipment and vehiclesa) Amounts equivalent to acquisition cost, accumulated depreciation and the net book value of leased property at December 31,
2011
Acquisition cost

¥4,018830¥4,848¥3,898797¥4,696

¥119
32
¥152

Thousands of U.S. dollars
Accumulated
Acquisition cost depreciation Net book value$51,685
10,677$62,362$50,141
10,252$60,406$1,531412$1,955Acquisition costs of leased property were computed based on the inclusion of their interest portion, due to the lower ratio of
the balance for future minimum lease payments to the balance for property, plant and equipment at the end of the fiscal year.

Overview of Operations

Machinery, equipment and vehicles
Other
Total

Millions of yen
Accumulated
depreciation Net book value

Special Features

Those finance lease transactions which do not transfer ownership, where the transaction start date was priorto December 31, 2008, are computed based on an
accounting method similar to the method for ordinary
rental transactions, described below.

2) Depreciation method of leased assets
As described in sub-section (2), “Depreciation andAmortization of Assets,” of section (5) “AccountingStandards.”b) Amounts equivalent to future minimum lease payments at December 31, 2011

Payable within one year
Payable after one year
Total

¥ 89
62
¥152

Thousands of
U.S. dollars$1,145798$1,955

Corporate Information

Millions of yen

Future minimum lease payments of leased property were computed based on the inclusion of their interest portion, due to thelower ratio of the balance for future minimum lease payments to the balance for property, plant and equipment at the end of the
fiscal year.

Millions of yen

Lease payments
Depreciation

¥142
142

Thousands of
U.S. dollars$1,8271,827d) Computation of amounts equivalent to depreciation
The computation of amounts equivalent to depreciation is made by the straight-line method, assuming that useful life equals tothe lease term and the residual value equals to zero.
(2) Operating lease transactions
Future minimum lease payments for noncancellable operating lease transactions
Millions of yen

Payable within one year
Payable after one year
Total

¥ 857
2,284
¥3,141Thousands of
U.S. dollars$11,024
29,380$40,404

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

109

Financial Sectionc) Amounts equivalent to lease payments and depreciation

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Financial Section

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance

16. Financial Instruments and Related Disclosure
Information regarding financial instruments and related disclosure for the years ended December 31, 2010 and 2011 is as follows.
Fiscal year ended December 31, 2010
1. Status of financial instruments held by the group
1) Policies on financial instruments
The Group restricts its asset management to short-term
deposits, etc. in principle and raises funds mainly through bankborrowings. Derivative transactions are used to mitigate the risks
described below and the Group has no intention to engage in
speculative trading.
2) Details of financial instruments and related risks
Notes and accounts receivable–trade, which are operatingreceivables, are exposed to credit risk of customers. Foreign
currency-denominated operating receivables resulting from theGroup conducting business globally are exposed to risk of foreign
currency exchange fluctuations, which is mitigated in principle bysecuring foreign exchange forward contracts on the net position offoreign currency-denominated operating receivables and payables.
Investment securities, mainly stocks of companies with which
the Group has business relationships, are exposed to risk ofmarket price fluctuations.
Notes and accounts payable–trade, which are operating
payables, are mostly due within one year. Some of them aredenominated in foreign currency, reflecting imports of raw
materials, etc., and exposed to risk of foreign currency exchange
fluctuations. However, they are continuously below the balance ofaccounts receivable denominated in the same foreign currency.
Short-term loans payable and long-term loans payable areintended for working capital, and some of them with variableinterest rates are exposed to risk of interest rate fluctuations.
Derivative transactions used by the Company are mainly
foreign exchange forward contracts to mitigate risk of foreign
currency exchange fluctuations in connection with foreign
currency-denominated operating receivables and payables, andinterest rate swap transactions to mitigate risk of fluctuations ininterest paid on the Company’s borrowings.
3) Risk management system for financial instruments(a) Management of credit risk (risks associated with thedefaults of customers)
The Company and its consolidated subsidiaries have theiradministrative sections in individual business divisions
periodically monitor main business partners with regard
to operating receivables and keep track of the due date
and the balance for each business partner, while trying
to identify doubtful receivables due to worsened financial
conditions of the business partners at an early stage andseek to reduce their consequences.
In engaging in derivative transactions, the Company
enters into transactions only with financial institutions with ahigh credit rating in order to mitigate counterparty risk.

110

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011(b) Management of market risk (foreign currency exchange
and interest rate fluctuation risks)
The Company and some of its consolidated subsidiaries
use foreign exchange forward contracts, etc. to mitigate
foreign currency exchange fluctuation risk of foreign
currency-denominated operating receivables and payables,
which is identified for different currencies on a monthly
basis. Foreign exchange forward contracts, etc. arealso used for foreign currency-denominated operatingreceivables, which are certain to be generated as a result ofscheduled export transactions. Additionally, the Company
and some of its consolidated subsidiaries use interest rate
swap transactions to reduce risk of fluctuations in interest
paid on their borrowings.
The Company periodically monitors the market prices
of investment securities and the financial conditions of
the issuers (business partners) and reviews its holdingof investment securities on an ongoing basis, taking
relationships with the business partners into account.
The Company’s finance & accounting division carriesout derivative transactions based on the internal rules
prescribing transaction authority, the upper limit and others,
keeps records and cross-checks the balance with financial
institutions. Transactions of foreign exchange forward contracts, etc. are reported to Executive Officers in the positionof Senior Executive Officer or higher, Standing Corporate
Auditors, and heads of the finance & accounting divisionand the division responsible for managing positions at least
twice a month. The Company also monitors consolidated
subsidiaries in accordance with the internal rules.
(c) Management of liquidity risk related to financing (risks
in which the Company being unable to repay within thedue date)
The Company and each of its consolidated subsidiaries
control liquidity risk by formulating and revising a cash
position plan as needed, while maintaining liquidity on handat an appropriate level.
4) Supplementary explanation concerning fair values, etc. offinancial instruments
Fair values of financial instruments comprise values determinedbased on market prices and values determined reasonably when
there is no market price. Since variable factors are incorporated
in computing the relevant fair values, such fair values may varydepending on the different assumptions.

Carrying amount(1) Cash and deposits(2) Notes and accounts receivable–trade
Allowance for doubtful receivables *1¥—

177,816
16,469(34)—

40,233¥439,881
125,80935,45557,576
233,762¥452,604
344

4,618¥4,583———
4,351¥4,351—*1 Allowance for doubtful receivables are deducted from notes and accounts receivable–trade and long-term loans receivable.
*2 Receivables and payables, which were derived from derivative transactions, are presented in net amount.

(2) Notes and accounts receivable–trade
The fair values of these assets are measured at the present values of their future cash flows from which an allowance for doubtful receivables equivalent tocredit risk are deducted. In order to compute the present values of the future cash flows of these assets, the assets are categorized by specified time period,and future cash flows in each category are discounted at a rate in accordance with appropriate indices such as government bond yields.

(4) Long-term loans receivable
For long-term loans receivable with variable rates, fair value is calculated based on book values, as they reflect market interest rates in the short run.
For long-term loans receivable with fixed rates, the fair values are measured at their present values from which an allowance for doubtful receivables
equivalent to credit risk are deducted. The present values of these assets are computed by discounting for each collection period at a rate in accordance withappropriate indices such as government bond yields.

(8) Long-term loans payable
For long-term loans payable with variable rates, fair value is calculated based on book values, as they reflect market interest rates in the short run.
For long-term loans payable with fixed rates, the fair values are determined by computing the present values, discounted for each collection period at a
projected interest rate if a similar borrowing is taken out.
Derivative transactions
Their fair values are calculated based on the quoted price obtained from the financial institutions.
2 Financial instruments whose fair values are not readily determinable
Category
Unlisted equity securities

Millions of yen
Carrying amount¥18,847

The foregoing items are not included in “(3) Investment securities,” because there is no market price, and it is deemed difficult to measure the fair values.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

111

Financial Section

Liabilities:(5) Notes and accounts payable–trade, (6) Short-term loans payable, (7) Current portion of long-term loans payable
These liabilities are recorded using book values as the fair values are almost equal to the book values because of their short-term maturities.

Corporate Information(3) Investment securities
Investment securities are determined using the quoted price at the stock exchange.

Overview of Operations

Notes 1 Calculation method of fair values of financial instruments and matters concerning marketable securities and derivative transactions
Assets:(1) Cash and deposits
These assets are recorded using book values as the fair values are almost equal to the book values because of their short-term maturities.

Special Features

Total assets(5) Notes and accounts payable–trade(6) Short-term loans payable(7) Current portion of long-term loans payable(8) Long-term loans payable
Total liabilities
Derivative transactions *2

Differences¥205,362

Message from the Management(3) Investment securities(4) Long-term loans receivable
Allowance for doubtful receivables *1¥205,362
183,711(5,860)177,850
16,46937,034(1,419)35,615¥435,297
125,80935,45557,576229,410¥448,252
344

Millions of yen
Fair value

Operating Performance

2. Fair values of financial instruments
Carrying amount, fair value and differences of the financial instruments as of December 31, 2010 are as follows. Financial instruments
whose fair values are not readily determinable are excluded from the following table: (See Note 2.)

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Operating Performance

3 Redemption schedule for monetary claims and held-to-maturity securities with maturity dates subsequent to the fiscal year-end

1 yearor less¥205,362
183,157—¥388,520

Cash and deposits
Notes and accounts receivable–tradeLong-term loans receivable

Financial Section

Corporate Information

Overview of Operations

Special Features

Message from the Management

Total

Millions of yen
1 to
5 to
5 years
10 years¥—
554
36,844¥37,399

More than
10 years

¥—
—
70
¥70

¥ —
—
119
¥119

4 Redemption schedule for long-term loans payable subsequent to the fiscal year-end
See “Fund Procurement Conditions.”(Additional Information)
Effective from the fiscal year ended December 31, 2010, the Company has adopted “Accounting Standard for Financial Instruments”(ASBJ Statement No. 10, March 10, 2008) and “Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ GuidanceNo. 19 Guidance, March 10, 2008).
Fiscal year ended December 31, 2011
1. Status of financial instruments held by the group
1) Policies on financial instruments
The Group restricts its asset management to short-term
deposits, etc. in principle and raises funds mainly through bankborrowings. Derivative transactions are used to mitigate the risks
described below and the Group has no intention to engage in
speculative trading.
2) Details of financial instruments and related risks
Notes and accounts receivable–trade, which are operatingreceivables, are exposed to credit risk of customers. Foreign
currency-denominated operating receivables resulting from theGroup conducting business globally are exposed to risk of foreign
currency exchange fluctuations, which is mitigated in principle bysecuring foreign exchange forward contracts on the net position offoreign currency-denominated operating receivables and payables.
Investment securities, mainly stocks of companies with which
the Group has business relationships, are exposed to risk ofmarket price fluctuations.
Notes and accounts payable–trade, which are operating
payables, are mostly due within one year. Some of them aredenominated in foreign currency, reflecting imports of raw
materials, etc., and exposed to risk of foreign currency exchange
fluctuations. However, they are continuously below the balance ofaccounts receivable denominated in the same foreign currency.
Short-term loans payable and long-term loans payable areintended for working capital, and some of them with variableinterest rates are exposed to risk of interest rate fluctuations.
Derivative transactions used by the Company are mainly
foreign exchange forward contracts to mitigate risk of foreign
currency exchange fluctuations in connection with foreign
currency-denominated operating receivables and payables, andinterest rate swap transactions to mitigate risk of fluctuations ininterest paid on the Company’s borrowings.
3) Risk management system for financial instruments(a) Management of credit risk (risks associated with thedefaults of customers)
The Company and its consolidated subsidiaries have theiradministrative sections in individual business divisions

112

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

periodically monitor main business partners with regard
to operating receivables and keep track of the due date
and the balance for each business partner, while trying
to identify doubtful receivables due to worsened financial
conditions of the business partners at an early stage andseek to reduce their consequences.
In engaging in derivative transactions, the Company
enters into transactions only with financial institutions with ahigh credit rating in order to mitigate counterparty risk.
(b) Management of market risk (foreign currency exchange
and interest rate fluctuation risks)
The Company and some of its consolidated subsidiaries
use foreign exchange forward contracts, etc. to mitigate
foreign currency exchange fluctuation risk of foreign
currency-denominated operating receivables and payables,
which is identified for different currencies on a monthly
basis. Foreign exchange forward contracts, etc. arealso used for foreign currency-denominated operatingreceivables, which are certain to be generated as a result ofscheduled export transactions. Additionally, the Company
and some of its consolidated subsidiaries use interest rate
swap transactions to reduce risk of fluctuations in interest
paid on their borrowings.
The Company periodically monitors the market prices
of investment securities and the financial conditions of
the issuers (business partners) and reviews its holdingof investment securities on an ongoing basis, taking
relationships with the business partners into account.
The Company’s finance & accounting division carriesout derivative transactions based on the internal rules
prescribing transaction authority, the upper limit and others,
keeps records and cross-checks the balance with financial
institutions. Transactions of foreign exchange forward contracts, etc. are reported to Executive Officers in the positionof Senior Executive Officer or higher, Standing Corporate
Auditors, and heads of the finance & accounting divisionand the division responsible for managing positions at least
twice a month. The Company also monitors consolidated
subsidiaries in accordance with the internal rules.

4) Supplementary explanation concerning fair values, etc. offinancial instruments
Fair values of financial instruments comprise values determinedbased on market prices and values determined reasonably when
there is no market price. Since variable factors are incorporated
in computing the relevant fair values, such fair values may varydepending on the different assumptions.

Carrying amount(1) Cash and deposits(2) Notes and accounts receivable–trade
Allowance for doubtful receivables *1¥—

161,387
15,483(28)—

40,927¥351,506
121,974
42,91969,398165,022¥399,314(1,069)6,474¥6,445———2,619¥2,619—Thousands of U.S. dollars
Carrying amount
Fair value
Differences$1,719,925
2,142,153(65,783)
2,076,357
199,164
463,301(20,131)443,170$4,438,642
1,568,999
552,084
892,694
2,089,053$5,102,843(13,751)$1,719,925$—

2,075,984
199,164(360)—

526,460$4,521,559
1,568,999
552,084
892,694
2,122,742$5,136,532(13,751)

83,278$82,905———
33,689$33,689—*1 Allowance for doubtful receivables are deducted from notes and accounts receivable–trade and long-term loans receivable.
*2 Receivables and payables, which were derived from derivative transactions, are represented in net amount. The figures in parentheses indicate net payables.

(2) Notes and accounts receivable–trade
The fair values of these assets are measured at the present values of their future cash flows from which an allowance for doubtful receivables equivalent tocredit risk are deducted. In order to compute the present values of the future cash flows of these assets, the assets are categorized by specified time period,and future cash flows in each category are discounted at a rate in accordance with appropriate indices such as government bond yields.

(4) Long-term loans receivable
For long-term loans receivable with variable rates, fair value is calculated based on book values, as they reflect market interest rates in the short run.
For long-term loans receivable with fixed rates, the fair values are measured at their present values from which an allowance for doubtful receivables
equivalent to credit risk are deducted. The present values of these assets are computed by discounting for each collection period at a rate in accordance withappropriate indices such as government bond yields.
Liabilities:(5) Notes and accounts payable–trade, (6) Short-term loans payable, (7) Current portion of long-term loans payable
These liabilities are recorded using book values as the fair values are almost equal to the book values because of their short-term maturities.
(8) Long-term loans payable
For long-term loans payable with variable rates, fair value is calculated based on book values, as they reflect market interest rates in the short run.
For long-term loans payable with fixed rates, the fair values are determined by computing the present values, discounted for each repayment period at a
projected interest rate if a similar borrowing is taken out.
Derivative transactions
Their fair values are calculated based on the quoted price obtained from the financial institutions.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

113

Financial Section(3) Investment securities
Investment securities are determined using the quoted price at the stock exchange.

Corporate Information

Notes 1 Calculation method of fair values of financial instruments and matters concerning marketable securities and derivative transactions
Assets:(1) Cash and deposits
These assets are recorded using book values as the fair values are almost equal to the book values because of their short-term maturities.

Overview of Operations

Total assets(5) Notes and accounts payable–trade(6) Short-term loans payable(7) Current portion of long-term loans payable(8) Long-term loans payable
Total liabilities
Derivative transactions *2¥133,707

Differences

Special Features(3) Investment securities(4) Long-term loans receivable
Allowance for doubtful receivables *1¥133,707
166,531(5,114)
161,416
15,48336,017(1,565)34,452¥345,060
121,974
42,91969,398
162,403¥396,695(1,069)Millions of yen
Fair value

Message from the Management

2. Fair values of financial instruments
Carrying amount, fair value and differences of the financial instruments as of December 31, 2011 are as follows. Financial instruments
whose fair values are not readily determinable are excluded from the following table: (See Note 2.)

Operating Performance(c) Management of liquidity risk related to financing (risks
in which the Company being unable to repay within thedue date)
The Company and each of its consolidated subsidiaries
control liquidity risk by formulating and revising a cash
position plan as needed, while maintaining liquidity on handat an appropriate level.

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Operating Performance

2 Financial instruments whose fair values are not readily determinable
Millions of yen
Carrying amount

Category

Thousands of U.S. dollars
Carrying amount¥20,065

Unlisted equity securities$258,104

The foregoing items are not included in “(3) Investment securities,” because there is no market price, and it is deemed difficult to measure the fair values.
3 Redemption schedule for monetary claims and held-to-maturity securities with maturity dates subsequent to the fiscal year-end
Millions of yen
1 to
5 to
5 years
10 years

Message from the Management

1 yearor less
Cash and deposits¥133,707

Notes and accounts receivable–trade166,118

Thousands of U.S. dollars
1 to
5 to
5 years
10 years

1 yearor less

—

¥—

¥ —

$1,719,925

407

4

—

2,136,841

$

—

$ —

5,235

51

More than
10 years

$

—
—

—

35,83471

111—

460,947

913

1,428

¥299,826¥36,241¥76¥111$3,856,779$466,182$978$1,428Long-term loans receivable
Total

¥

More than
10 yearsSpecial Features

4 Redemption schedule for long-term loans payable subsequent to the fiscal year-end
See “Fund Procurement Conditions.”

17. Marketable Securities
Information regarding marketable securities for the years ended December 31, 2010 and 2011 is as follows.
Fiscal year ended December 31, 2010

Overview of Operations(1) Other marketable securities with fair value (as of December 31, 2010)

Type

Corporate Information

Securities whosecarrying amountexceeds theiracquisition cost

Financial Section

Securities whose
acquisition costexceeds theircarrying amount(1) Equity securities(2) Bonds:
1) National and local government bonds2) Corporate bonds3) Other bonds(3) Other
Sub-total(1) Equity securities(2) Bonds:
1) National and local government bonds2) Corporate bonds3) Other bonds(3) Other
Sub-total
Total

Carrying
amountMillions of yen
Unrealized
Acquisition cost gain or loss

¥14,253¥10,160¥4,092————
14,253¥ 2,215————
10,160¥ 3,081

—
—
—
—
4,092
¥ (865)

—
—
—
—
2,215
¥16,469

—
—
—
—
3,081
¥13,241

—
—
—
—
(865)
¥3,227Note Unlisted stocks (¥1,022 million booked on the consolidated balance sheet) have no market price and the effort to pinpoint fair value is deemed
extremely difficult so they are excluded from “Other marketable securities” in the preceding table.

(2) Other marketable securities sold during the fiscal year (January 1, 2010 through December 31, 2010)

Type(1) Equity securities(2) Bonds:
1) National and local government bonds2) Corporate bonds3) Other bonds(3) Other
Total

114

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Amount soldMillions of yen
Total gains

Total losses

¥51

¥34

¥3

—
—
—
—
¥51

—
—
—
—
¥34

—
—
—
—
¥3

The Company generally posts the entire amount of
impairment loss on all securities whose fair value at the endof the fiscal year is less than 50% of the acquisition cost.
For securities whose fair value at the end of the fiscal year
decreases by 30 to 50% from their acquisition cost, theCompany posts an impairment loss when it is judged necessary, by examining the importance and recoverability of theamount in question.

(1) Other marketable securities with fair value (as of December 31, 2011)
Millions of yen
TypeAcquisition cost

¥ 3,215¥ 1,619¥ 1,596$ 41,356$ 20,826$ 20,530

—
—
—
—
3,215
¥12,267

—
—
—
—
1,619
¥15,247

—
—
—
—
1,596
¥(2,980)————
41,356$157,795————
20,826$196,128————
20,530$(38,333)————
12,267¥15,483————
15,247¥16,867————(2,980)¥(1,383)————
157,795$199,164————
196,128$216,967————(38,333)$(17,790)(2) Other marketable securities sold during the fiscal year (January 1, 2011 through December 31, 2011)

Amount soldMillions of yen
Total gains

Total losses(1) Equity securities(2) Bonds:
1) National and local
government bonds2) Corporate bonds3) Other bonds(3) Other
Total

¥12

¥—

¥81

$154

$—

$1,042

—
—
—
—
¥12

—
—
—
—
¥—

—
—
—
—
¥81

—
—
—
—
$154

—
—
—
—
$—

—
—
—
—
$1,042(3) Impaired marketable securities
For the fiscal year ended December 31, 2011, the Company
recorded an impairment loss of ¥18 million ($232 thousand)on investment securities (¥7 million ($90 thousand) on listed
stock under other marketable securities and ¥10 million($129 thousand) on unlisted stocks).

Thousands of U.S. dollars
Amount soldTotal gains
Total losses

The Company generally posts the entire amount of
impairment loss on all securities whose fair value at the endof the fiscal year is less than 50% of the acquisition cost.
For securities whose fair value at the end of the fiscal year
decreases by 30 to 50% from their acquisition cost, theCompany posts an impairment loss when it is judged necessary, by examining the importance and recoverability of theamount in question.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

115

Financial Section

Type

Corporate Information

Note Unlisted stocks (¥905 million ($11,641 thousand) booked on the consolidated balance sheet) have no market price and the effort to pinpoint fair value
is deemed extremely difficult so they are excluded from “Other marketable securities” in the preceding table.

Overview of Operations

Securities whose
acquisition costexceeds theircarrying amount(1) Equity securities(2) Bonds:
1) National and local
government bonds2) Corporate bonds3) Other bonds(3) Other
Sub-total(1) Equity securities(2) Bonds:
1) National and local
government bonds2) Corporate bonds3) Other bonds(3) Other
Sub-total
Total

Carrying
amountThousands of U.S. dollars
Unrealized
Acquisition cost gain or loss

Unrealized
gain or loss

Special Features

Securities whosecarrying amountexceeds theiracquisition cost

Carrying
amountMessage from the Management

Fiscal year ended December 31, 2011

Operating Performance(3) Impaired marketable securities
For the fiscal year ended December 31, 2010, the Company
recorded an impairment loss of ¥511 million on investment
securities (¥477 million on listed stock under other marketable securities and ¥31 million on unlisted stocks and¥1 million on equity in affiliates).

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Operating Performance

18. Derivative Transactions
Fiscal year ended December 31, 2010
1. Derivative financial instruments for which hedge accounting is not applied(1) Currency related
Classification

Overview of Operations

Special Features

Message from the Management

Non-market
transactions

Contractual value

Unrealized gain or loss

¥51,201
12,579
2,531
1,597
1,257
463
374
360

¥—
—
—
—
—
—
—
—

¥ 942
219
4
(6)
(8)
(2)
(3)
1

¥ 942
219
4
(6)
(8)
(2)
(3)
1

10,870
7,504
1,111
240
¥50,640

—
—
—
—
¥—

100
(119)
36
0
¥1,164

100
(119)
36
0
¥1,164Note Market values are computed based on forward rates at the end of the fiscal year.

(2) Interest-rate related
Classification

Non-market
transactions
Corporate Information

Transaction

Forward exchange contract
Sell:
USD
EUR
CAD
PLN
JPY
HUF
SGD
GBP
Buy:
USD
EUR
JPY
SEK
Total

Millions of yen
Contractual value
over 1 year
Market value

Transaction

Interest-rate swap contract
Receipts fixed, payments floating
Receipts floating, payments fixed
Total

Contractual value

Millions of yen
Contractual value
over 1 year
Market value¥ 35,738
92,881¥128,620¥32,876
31,186¥64,042

Unrealized gain or loss

¥ (109)(1,101)¥(1,211)¥ (109)(1,101)¥(1,211)

Note Market values are computed based on quotes from financial institutions, among other sources.

(3) Other
Classification

Financial Section

Non-market transactions

Transaction

Other
Total

Contractual value¥134,760¥134,760

Millions of yen
Contractual value
over 1 year
Market value¥41,411¥41,411

Unrealized gain or loss

¥391
¥391

Notes 1 Derivative transactions related to sales finance.
2 Market values are generally computed by estimating the future cash flow, and discounting it with an appropriate market interest rate.

2. Derivative financial instruments for which hedge accounting is applied
No related items.

116

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

¥391
¥391

Fiscal year ended December 31, 2011
Operating Performance

1. Derivative financial instruments for which hedge accounting is not applied(1) Currency related
Classification

Non-market
transactions

Transaction

Transaction

¥—
—
—
—

¥(395)
484(13)
10¥(395)
484
(13)
10

3,236
718
336
79
73
¥72,059

—
—
—
—
—
¥—

(0)
26
3
(1)
(2)
¥ 111

(0)
26
3
(1)
(2)
¥ 111

Contractual value

Thousands of U.S. dollars
Contractual value
over 1 year
Market value

Unrealized gain or loss

$773,424
167,173
27,66915,796$————$(5,081)
6,226
(167)
129

$(5,081)
6,226
(167)
129

41,626
9,236
4,322
1,016
939
$926,923

—
—
—
—
—
$—

(0)
334
39
(13)
(26)
$ 1,428

(0)
334
39
(13)
(26)
$ 1,428

Corporate Information

Forward exchange contract
Sell:
USD
EUR
CAD
JPY
Buy:
USD
JPY
SEK
THB
SGD
Total

¥60,126
12,9962,151
1,228

Overview of Operations

Non-market
transactions

Unrealized gain or loss

Special Features

Classification

Contractual value

Message from the Management

Forward exchange contract
Sell:
USD
EUR
CAD
JPY
Buy:
USD
JPY
SEK
THB
SGD
Total

Millions of yen
Contractual value
over 1 year
Market value

Note Market values are computed based on forward rates at the end of the fiscal year.

(2) Interest-rate related

Non-market
transactions

Classification

Non-market
transactions

Transaction

Interest-rate swap contract
Receipts fixed, payments floating
Receipts floating, payments fixed
Total

Transaction

Interest-rate swap contract
Receipts fixed, payments floating
Receipts floating, payments fixed
Total

Contractual value¥ 31,405
74,565¥105,971

Contractual value$ 403,975
959,159$1,363,146¥30,052
55,130¥85,183¥ (801)(1,038)¥(1,839)

Thousands of U.S. dollars
Contractual value
over 1 year
Market value$ 386,571
709,159$1,095,742$(10,304)(13,352)$(23,656)

Unrealized gain or loss

¥ (801)(1,038)¥(1,839)

Unrealized gain or loss$(10,304)(13,352)$(23,656)

Note Market values are computed based on quotes from financial institutions, among other sources.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

117

Financial Section

Classification

Millions of yen
Contractual value
over 1 year
Market value

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Overview of Operations

Special Features

Message from the Management

Operating Performance(3) Other
Classification

Non-market transactions

Transaction

Classification

Non-market transactions

Contractual value¥107,078¥107,078

Other
Total

Transaction

Contractual value

Other
Total

$1,377,386$1,377,386

Millions of yen
Contractual value
over 1 year
Market value¥50,806¥50,806

Thousands of U.S. dollars
Contractual value
over 1 year
Market value$653,537$653,537

Unrealized gain or loss

¥658
¥658

¥658
¥658

Unrealized gain or loss

$8,464$8,464$8,464$8,464

Notes 1 Derivative transactions related to sales finance.
2 Market values are generally computed by estimating the future cash flow, and discounting it with an appropriate market interest rate.

2. Derivative financial instruments for which hedge accounting is applied
No related items.
19. Retirement Benefit Plans
Information regarding retirement benefit plans for the years ended December 31, 2010 and 2011 is as follows.
Fiscal year ended December 31, 2010
(1) Outline of retirement benefit plans
The Company and certain of its domestic consolidated
subsidiaries have cash balance pension plans and lump-sum
payment plans. Certain of its other domestic consolidated subsidiaries have defined-benefit plans, i.e., welfare pension funds,
tax-qualified pension plans and lump-sum payment plans.

Certain overseas consolidated subsidiaries have defined
contribution pension plans, in addition to defined-benefit plans.

(2) Retirement benefit obligation and related items (As of December 31, 2010)
Millions of yen

Financial Section

Corporate Information(1) Retirement benefit obligation(2) Plan assets at fair value(3) Unfunded retirement benefit obligation (1) + (2)(4) Unrecognized actuarial gain or loss(5) Unrecognized prior service cost(6) Net retirement benefit obligation (3) + (4) + (5)(7) Prepaid pension cost(8) Provision for retirement benefits (6) – (7)2010¥(150,126)
97,130(52,996)
18,301(510)(35,204)218¥ (35,423)

Note Certain of the Company’s subsidiaries adopt the simplified method to compute their retirement benefit obligation.

(3) Retirement benefit expenses and related items (Fiscal year ended December 31, 2010)
Millions of yen(1) Service cost(2) Interest cost(3) Expected return on plan assets(4) Amortization of actuarial gain or loss
(5) Amortization of prior service cost(6) Total (1) + (2) + (3) + (4) + (5)2010¥ 6,552
3,558(2,964)
4,084
278¥11,508

Notes 1 In addition to the aforementioned retirement benefit expenses, in fiscal 2010, the Company recorded ¥11 million for special incentives and other payments related to the voluntary early retirement program offer presented to employees in 2010 and ¥551 million in contributions to defined contribution
pension plans.
2 Retirement benefit expenses of the Company’s consolidated subsidiaries, which were accounted for by the simplified method, were registered under
the classification “(1) Service cost” in the above table.

118

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

(4) Assumptions and policies adopted in the calculation of retirement benefit obligation (As of December 31, 2010)

Fiscal year ended December 31, 2011

Certain overseas consolidated subsidiaries have defined
contribution pension plans, in addition to defined-benefit plans.

Special Features(1) Outline of retirement benefit plans
The Company and certain of its domestic consolidated
subsidiaries have cash balance pension plans and lump-sum
payment plans. Certain of its other domestic consolidated subsidiaries have defined-benefit plans, i.e., welfare pension funds
and lump-sum payment plans.

Message from the Management(5) Amortization years of prior service cost

Straight-line method
Mainly 2.0%
Mainly 3.0%
Mainly 10 years
Amortized in the year following the year in which the gain or loss is recognized,
primarily by the straight-line method, over a period which is shorter than the
average remaining years of service of the employees.
Mainly 10 years
Amortized as incurred, by the straight-line method over a period which is shorter
than the average remaining years of service of the employees.

Operating Performance

2010(1) Attribution method for retirement benefits in the period(2) Discount rate(3) Expected rate of return on plan assets(4) Amortization years of actuarial gain or loss

(2) Retirement benefit obligation and related items (As of December 31, 2011)
Millions of yen

Note Certain of the Company’s subsidiaries adopt the simplified method to compute their retirement benefit obligation.

(3) Retirement benefit expenses and related items (Fiscal year ended December 31, 2011)
Millions of yen

2011¥ 6,541
3,821(2,413)
4,135(146)¥11,9392011$ 84,139
49,151(31,039)
53,190(1,878)$153,576

Notes 1 In addition to the aforementioned retirement benefit expenses, in fiscal 2011, the Company recorded ¥572 million ($7,358 thousand) in contributions todefined contribution pension plans.
2 Retirement benefit expenses of the Company’s consolidated subsidiaries, which were accounted for by the simplified method, were registered under
the classification “(1) Service cost” in the above table.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

119

Financial Section(1) Service cost(2) Interest cost(3) Expected return on plan assets(4) Amortization of actuarial gain or loss
(5) Amortization of prior service cost(6) Total (1) + (2) + (3) + (4) + (5)Thousands of
U.S. dollars

Corporate Information2011$(1,974,106)
1,224,891(749,202)
247,157(3,203)(505,248)
4,284$ (509,532)

Overview of Operations

2011¥(153,467)
95,223(58,243)
19,214(249)(39,278)333¥ (39,611)(1) Retirement benefit obligation(2) Plan assets at fair value(3) Unfunded retirement benefit obligation (1) + (2)(4) Unrecognized actuarial gain or loss(5) Unrecognized prior service cost(6) Net retirement benefit obligation (3) + (4) + (5)(7) Prepaid pension cost(8) Provision for retirement benefits (6) – (7)Thousands of
U.S. dollars

Message from the Management

Operating Performance(4) Assumptions and policies adopted in the calculation of retirement benefit obligation (As of December 31, 2011)
2011(1) Attribution method for retirement benefits in the period(2) Discount rate(3) Expected rate of return on plan assets(4) Amortization years of actuarial gain or loss

(5) Amortization years of prior service cost

Straight-line method
Mainly 2.0%
Mainly 2.5%
Mainly 10 years
Amortized in the year following the year in which the gain or loss isrecognized, primarily by the straight-line method, over a period which isshorter than the average remaining years of service of the employees.
Mainly 10 years
Amortized as incurred, by the straight-line method over a period which isshorter than the average remaining years of service of the employees.

20. Stock Options
Information regarding stock options for the years ended December 31, 2010 and 2011 is as follows.

Special Features

Fiscal year ended December 31, 2010
1. Expenses associated with stock options during fiscal 2010 and the category in which they were classified:Selling, general and administrative expenses: ¥30 million.
2. Outline of stock options and changes(1) Outline of stock options
Overview of Operations

2008 Stock options

Title and number ofgrantees

Directors of Yamaha Motor(Persons) Co., Ltd.:
9
Executive Officers of
Yamaha Motor Co., Ltd.:
15

Corporate Information

Number of stock
options Note 1(Shares)
Grant dateCondition for vesting Note 2

Requisite service period
Exercise period

Capital shares 75,500
June 13, 2008
Persons who have received
allocations of capital stock
must serve a full term that
includes the grant date(June 13, 2008).
Same period as listed undercondition for vesting
June 13, 2010 to June 12,20142009 Stock options

2010 Stock options

Directors of Yamaha MotorCo., Ltd.:
7
Executive Officers of
Yamaha Motor Co., Ltd.:
18

Directors of Yamaha MotorCo., Ltd.:
7
Executive Officers of
Yamaha Motor Co., Ltd.:
17

Capital shares 112,000
June 16, 2009
Persons who have received
allocations of capital stock
must serve a full term that
includes the grant date(June 16, 2009).
Same period as listed undercondition for vesting
June 16, 2011 to June 15,
2015

Capital shares 56,500
June 15, 2010
Persons who have received
allocations of capital stock
must serve a full term that
includes the grant date(June 15, 2010).
Same period as listed undercondition for vesting
June 15, 2012 to June 14,
2016

Financial Section

Notes 1 Stock options are converted into a number of shares.
2 Conditions for the exercise of stock options(1) Persons who have received allocations of subscription rights to shares may not exercise the rights when they lose their status as Director or
Executive Officer of Yamaha Motor Co., Ltd., for any reason stipulated in the “Agreement on Allocation of Subscription Rights to Shares”
concluded between the Company and the grantee.
(2) Subscription rights to shares may not be inherited.
(3) Other conditions governing the exercise of stock option rights are based on the provisions of the “Agreement on Allocation of Subscription
Rights to Shares” concluded between the Company and the grantee.

120

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Operating Performance(2) Stock options granted and changes
Stock options outstanding in fiscal 2010 are counted and converted into a number of shares.
a) Number of stock options
Shares2009 Stock options

2008 Stock options

2010 Stock options

—
—
—
—
—

112,000——
112,000——
56,500——56,50075,500———75,500—112,000——
112,000

—
—
—
—
—

Yen
2009
Stock options

2010
Stock options¥2,205—535¥1,207—380¥1,396—465

3. Technique used for valuating the fair value of stock options
Stock options granted in the fiscal year were valuated using the following technique.
a) Valuation technique: Black-Scholes option-pricing modelb) Principal parameters used in the option-pricing model

Overview of Operations

Exercise price
Average exercise price
Fair value at the grant date2008
Stock options

Special Featuresb) Price information

Message from the Management

Before vesting:
Previous fiscal year-end
GrantedForfeited
VestedOutstanding
After vesting:
Previous fiscal year-end
VestedExercised
Forfeited
Exercisable

2010 Stock options

48.41%
4 years¥0 per share
0.31%

Notes 1 Calculated based on the actual stock prices during the four years ending on the stock option grant date (June 15, 2010).
2 The average expected life could not be reasonably estimated due to insufficient data. Therefore, it was estimated assuming that the options were
exercised at the mid-point of the exercise period.
3 The actual dividends on capital stock for the fiscal year ended December 31, 2009.
4 Japanese government bond yield corresponding to the average expected life.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

121

Financial Section

4. Method of estimating number of stock options vested
Only the actual number of forfeited stock options is reflected because it is difficult to reasonably estimate the number of stock options
that will be forfeited in the future.

Corporate Information

Expected volatility Note 1
Average expected life Note 2
Expected dividends Note 3
Risk-free interest rate Note 4

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Operating Performance

Fiscal year ended December 31, 2011
1. Expenses associated with stock options during fiscal 2011 and the category in which they were classified:Selling, general and administrative expenses: ¥6 million ($77 thousand).
2. Outline of stock options and changes(1) Outline of stock options
2008 Stock options
Message from the Management

Title and number ofgrantees

Directors of Yamaha Motor(Persons) Co., Ltd.:
9
Executive Officers of
Yamaha Motor Co., Ltd.:
15

Special Features

Number of stock
options Note 1(Shares)
Grant dateCondition for vesting Note 2

Requisite service period
Exercise period

Capital shares 75,500
June 13, 2008
Persons who have received
allocations of capital stock
must serve a full term that
includes the grant date(June 13, 2008).
Same period as listed undercondition for vesting
June 13, 2010 to June 12,20142009 Stock options

2010 Stock options

Directors of Yamaha MotorCo., Ltd.:
7
Executive Officers of
Yamaha Motor Co., Ltd.:
18

Directors of Yamaha MotorCo., Ltd.:
7
Executive Officers of
Yamaha Motor Co., Ltd.:
17

Capital shares 112,000
June 16, 2009
Persons who have received
allocations of capital stock
must serve a full term that
includes the grant date(June 16, 2009).
Same period as listed undercondition for vesting
June 16, 2011 to June 15,
2015

Capital shares 56,500
June 15, 2010
Persons who have received
allocations of capital stock
must serve a full term that
includes the grant date(June 15, 2010).
Same period as listed undercondition for vesting
June 15, 2012 to June 14,
2016

Overview of Operations

Notes 1 Stock options are converted into a number of shares.
2 Conditions for the exercise of stock options(1) Persons who have received allocations of subscription rights to shares may not exercise the rights when they lose their status as Director or
Executive Officer of Yamaha Motor Co., Ltd., for any reason stipulated in the “Agreement on Allocation of Subscription Rights to Shares”
concluded between the Company and the grantee.
(2) Subscription rights to shares may not be inherited.
(3) Other conditions governing the exercise of stock option rights are based on the provisions of the “Agreement on Allocation of Subscription
Rights to Shares” concluded between the Company and the grantee.

Corporate Information(2) Stock options granted and changes
Stock options outstanding in fiscal 2011 are counted and converted into a number of shares.
a) Number of stock options
Shares2009 Stock options

2008 Stock options

Financial Section

Before vesting:
Previous fiscal year-end
GrantedForfeited
VestedOutstanding
After vesting:
Previous fiscal year-end
VestedExercised
Forfeited
Exercisable

122

Yamaha Motor Co., Ltd. ⎜ Annual Report 20112010 Stock options

—
—
—
—
—

—
—
—
—
—

56,500——56,500—75,500———75,500112,000———
112,000—
56,500——56,500b) Price information
Yen
2009
Stock options

2010
Stock options

2008
Stock options

U.S. dollars
2009
Stock options

2010
Stock options¥2,205—535¥1,207—380¥1,396—465$28.36—
6.88$15.53—
4.89$17.96—
5.98

Exercise price
Average exercise price
Fair value at the grant date

21. Deferred Tax Accounting
Information regarding deferred tax accounting at December 31, 2010 and 2011 is as follows.

Message from the Management

3. Method of estimating number of stock options vested
Only the actual number of forfeited stock options is reflected because it is difficult to reasonably estimate the number of stock options
that will be forfeited in the future.

Operating Performance

2008
Stock options

Fiscal year ended December 31, 2010

Millions of yen

2010

Deferred tax liabilities:
Valuation difference on available-for-sale securities
Reserve for advanced depreciation
Other
Total deferred tax liabilities

7,467¥ (4,575)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011123

Financial Section

Net deferred tax assets
Net deferred tax liabilities

(436)
(422)
(6,383)(7,242)

Corporate Information¥ 63,275
23,247
12,03010,280
9,838
8,842
3,441
2,236
1,711
1,410
5,285
141,598(131,463)
10,134

Overview of Operations

Deferred tax assets:
Losses carried forward for tax purposes
Excess of depreciation for noncurrent assets
Provision for retirement benefits
Provision for product warranties
Other payables and provision for expenses
Provision for product liabilities
Loss on devaluation of inventory
Provision for bonuses
Allowance for doubtful receivables
Loss on valuation of securities
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets

Special Features(1) Principal deferred tax assets and liabilities

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries(2) Principal reasons for the difference between the statutory tax rate and the rate of income taxes after application of deferred tax
accounting
2010
Statutory tax rate
Effect of:
Net losses at consolidated subsidiaries
Foreign taxes and other taxes
Tax rate difference of overseas consolidated subsidiaries, etc.
Valuation allowance, revaluation loss on securities and impairment loss on fixed assets
Other, net
Effective tax rate

39.7%
15.4
11.2
(13.5)
(0.6)
1.8
53.9%

Fiscal year ended December 31, 2011
(1) Principal deferred tax assets and liabilities

Special Features

Message from the Management

Operating PerformanceYears ended December 31, 2010 and 2011

Corporate Information

Overview of Operations

Deferred tax assets:
Losses carried forward for tax purposes
Excess of depreciation for noncurrent assets
Provision for retirement benefits
Provision for product warranties
Other payables and provision for expenses
Loss on devaluation of inventory
Provision for bonuses
Provision for product liabilities
Allowance for doubtful receivables
Loss on valuation of securities
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Depreciation and amortization
Reserve for advanced depreciation
Other
Total deferred tax liabilities

Financial Section

Net deferred tax assets
Net deferred tax liabilities

124

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Millions of yen

Thousands of
U.S. dollars

2011

2011

¥ 69,959
16,254
13,133
8,798
7,974
2,827
2,657
2,382
1,666
1,290
6,302
133,246(123,237)
10,009$ 899,910
209,082
168,935
113,172
102,573
36,36534,17830,641
21,43016,59481,065
1,713,995(1,585,246)
128,750

(987)
(362)
(6,094)(7,444)(12,696)(4,657)(78,390)(95,755)

6,603¥ (4,039)$

84,937(51,955)

39.7%
8.7
8.3
2.9(15.5)(0.2)
43.9%

Overview of Operations

22. Segment Information

Special Features(3) Adjustment of deferred tax assets and liabilities pursuant to the change in the corporate tax rates
Following the promulgation on December 2, 2011, of thestatutory tax rate, used to measure deferred tax assets and“Act for Partial Revision of the Income Tax Act, etc., for thedeferred tax liabilities, will be reduced to 37.2% from 39.7%
Purpose of Creating a Taxation System Responding tofor temporary differences that are expected to be realized
Changes in Economic and Social Structures” (Act No. 114
during the period from the fiscal year beginning on January 1,of 2011) and the “Act on Special Measures for Securing
2013, to the fiscal year beginning on January 1, 2015, andFinancial Resources Necessary to Implement Measures for
to 34.8% from 39.7% for temporary differences that are
Reconstruction following the Great East Japan Earthquake”
expected to be realized during and after the fiscal year
(Act No. 117 of 2011), effective from fiscal years beginning
beginning on January 1, 2016.
on and after April 1, 2012, corporate tax rates will be
The changes in the effective statutory tax rates above
reduced and a special temporary recovery tax will be
had a minor impact on deferred tax assets and liabilities andimposed. In accordance with this reform, the effective
other account items.

Message from the Management

Statutory tax rate
Effect of:Foreign taxes and other taxes
Net losses at consolidated subsidiaries
Valuation allowance, revaluation loss on securities and impairment loss on fixed assets
Tax rate difference of overseas consolidated subsidiaries, etc.
Other, net
Effective tax rate

Operating Performance(2) Principal reasons for the difference between the statutory tax rate and the rate of income taxes after application of deferred tax
accounting
2011

Information regarding business segments at December 31, 2010 and 2011 is as follows.
Fiscal year ended December 31, 2010
(1) Business segment information
Motorcycles

Millions of yen
Other products¥167,141—
167,141
166,393¥
748¥162,026
5,917
196
3,635

¥102,968—
102,968
114,221¥ (11,252)¥103,934
1,789
146
2,460

¥118,043
81,795
199,838
180,765¥ 19,073¥102,433
4,728
220
4,058

Total

Eliminations¥1,294,131
81,795
1,375,926
1,324,617¥ 51,308¥ 978,343
36,594
6,628
33,939¥—(81,795)(81,795)(81,795)
¥
0
¥
—
—
—
—

Consolidated¥1,294,131—
1,294,131
1,242,822¥ 51,308¥ 978,343
36,594
6,628
33,939Notes 1 Business segments correspond to categories classified by similarities of product type and target market.
2 Major products in each business segment:
Business segment
Major products
Motorcycles
Motorcycles and knockdown parts for overseas production
Marine products
Outboard motors, personal watercrafts, boats, FRP pools, fishing boats, utility boats and diesel engines
Power products
All-terrain vehicles, side-by-side vehicles, snowmobiles, golf cars, generators, small-sized snow throwers and multi-purpose engines
Other products
Surface mounters, industrial robots, automobile engines, automobile components, electrically power assisted bicycles,industrial-use unmanned helicopters, electrically powered wheelchairs and the intermediate parts for products in all business segments
3 All operating expenses are assigned to individual segments, and there was no operating expense that could not be assigned.
4 Impairment loss on idle assets is included in the business to which the respective idle assets belong.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011125

Financial Section¥905,977—
905,977
863,237¥ 42,740¥609,948
24,158
6,063
23,784

Power products

Corporate Information

Net sales:
Outside customers
Intersegment
Total
Operating expenses
Operating income (loss)
AssetsDepreciation
Impairment loss
Capital expenditures

Marine productsFinancial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Overview of Operations

Special Features

Message from the Management

Operating Performance(2) Geographical segment informationJapan

Net sales:
Outside customers
Intersegment
Total
Operating expenses
Operating income (loss)
AssetsNorth America¥216,353
310,881
527,235
529,754¥ (2,519)¥560,568¥155,336
16,043
171,379
186,102¥ (14,722)¥136,031

EuropeMillions of yen
Asia
Others¥165,602
3,088
168,691
166,722¥ 1,968¥105,725¥613,350
44,843
658,194602,945¥ 55,248¥277,110

Total¥143,488
1,108
144,597
134,337¥ 10,259¥131,918

Eliminations¥1,294,131
375,966
1,670,098
1,619,862¥ 50,235¥1,211,353¥—(375,966)(375,966)(377,039)¥ 1,073¥(233,010)

Consolidated¥1,294,131—
1,294,131
1,242,822¥ 51,308¥ 978,343

Notes 1 Geographical segments are groupings of nations and regions, primarily based on geographical proximity.
2 Nations and regions included in segments outside Japan:(1) North America: U.S.A. and Canada(2) Europe:
The Netherlands, France, Italy, Spain and Russia(3) Asia:
Indonesia, Vietnam, Thailand, Taiwan, China, Singapore and India(4) Others:
Brazil, Australia, Colombia and Mexico
3 All operating expenses are assigned to individual segments, and there was no operating expense that could not be assigned.

(3) Overseas sales
North America

Overseas sales
Consolidated sales
Overseas sales ratio

EuropeMillions of yen
Asia

OthersTotal¥156,676¥170,371¥644,881¥179,824

12.1%

13.2%

49.8%

13.9%

¥1,151,752
1,294,131
89.0%

Notes 1 Overseas segments are groupings of nations and regions, primarily based on geographical proximity.
2 Nations and regions included in segments outside Japan:(1) North America: U.S.A. and Canada(2) Europe:
France, Italy, Germany, U.K. and Russia(3) Asia:
Indonesia, Vietnam, Thailand, China, Taiwan and India(4) Others:
Brazil, Australia and South Africa
3 Overseas sales consist of export sales of the Company and its domestic consolidated subsidiaries, and sales (other than exports to Japan) of its foreign
consolidated subsidiaries.

(Additional information)
Effective from the fiscal year ended December 31, 2011, theCompany has applied “Revised Accounting Standard forDisclosures about Segments of an Enterprise and RelatedInformation” (ASBJ Statement No. 17, March 27, 2009) and“Guidance on Accounting Standard for Disclosures about
Segments of an Enterprise and Related Information” (ASBJ
Guidance No. 20, March 21, 2008).

Financial Section

Corporate Information

Fiscal year ended December 31, 2011126

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

In addition, accompanying the increase in its quantitative
importance, “Industrial machinery and robots,” which waspreviously included in the “Others” segment, is being reported
in a separate reporting segment in the fiscal year ended
December 31, 2011.

Operating Performance

1. Overview of reporting segments
The Company’s reporting segments are regularly reviewed by the Board of Directors, etc., using the segregated financial information
available within each segment of the Company to determine the allocation of management resources and evaluate business results.
Four businesses, namely “Motorcycles,” “Marine products,” “Power products” and “Industrial machinery and robots” constitute theCompany’s reporting segments based on similarities of product type and target market.
Major products in each reporting segment are as follows.
Major products

Motorcycles
Marine products

Motorcycles, knockdown parts for overseas production and intermediate parts for products
Outboard motors, personal watercrafts, boats, FRP pools, fishing boats, utility boats anddiesel engines
All-terrain vehicles, side-by-side vehicles, snowmobiles, golf cars, generators, small-sizedsnow throwers and multi-purpose engines
Surface mounters, industrial robots and electrically powered wheelchairs

Power products
Industrial machinery and robots

3. Information concerning net sales, income or loss, assets, liabilities, and other items by reporting segment

Special Features

2. Basis for calculating net sales, income or loss, assets, liabilities, and other items by reporting segment
The accounting policies for the reporting segments are the same as those described in “Notes to Consolidated Financial Statements.”
Segment income corresponds to operating income in the Consolidated Statements of Income.
Amounts for intersegment transactions or transfers are calculated based on market prices.

Message from the Management

Reporting segment

Fiscal year ended December 31, 2010
Millions of yen¥167,141—
167,141¥
748¥162,026¥102,968—
102,968¥ (11,252)¥103,934

26,524

5,893

11,11825,784

Others Note 1

Total¥34,758—
34,758¥ 6,949¥18,692¥1,219,079—
1,219,079¥ 44,989¥ 923,178¥ 75,051
28,370103,422¥ 6,319¥ 55,164¥1,294,131
28,3701,322,502¥ 51,308¥ 978,343

1,782

491

34,691

1,757

36,449—36,449

1,923

546

—

13,5883,660

17,249—17,249

3,635

2,460

327

32,208

1,731

33,939—33,939¥— ¥1,294,131(28,370)—(28,370) 1,294,131¥
0 ¥ 51,308¥— ¥ 978,343

Notes 1 “Others” is a business segment not included in the reporting segments. It includes businesses involving the manufacture and sale of automobile engines,
automobile components, electrically power assisted bicycles and industrial-use unmanned helicopters.
2 Adjustments represent intersegment transaction eliminations.
3 Segment income (loss) corresponds to operating income in the Consolidated Statements of Income.
4 Depreciation and amortization does not include amortization of goodwill.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

127

Financial Section¥914,211—
914,211¥ 48,544¥638,524

Total

Corporate Information

Motorcycles

Amounts on
consolidated
statements
Adjustments Note 2 of income

Overview of Operations

Net sales:
Outside customers
Intersegment
Total
Segment income (loss) Note 3
Segment assets
Other items
Depreciation andamortization Note 4
Investments in subsidiaries
and affiliates accounted forby the equity method
Increase in property, plantand equipment, andintangible assets

Reporting segment
Industrial
MarinePowermachinery
products
products and robots

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Financial Section

Corporate Information

Overview of Operations

Special Features

Message from the Management

Operating Performance

Fiscal year ended December 31, 2011
Millions of yen

Motorcycles

Net sales:
Outside customers
Intersegment
Total
Segment income Note 3
Segment assets
Other items
Depreciation andamortization Note 4
Investments in
subsidiaries andaffiliates accounted forby the equity method
Increase in property,
plant and equipment,
and intangible assets

Total

Others Note 1

Total

Amounts on
consolidated
statements
Adjustments Note 2 of income¥887,556—
887,556¥ 27,573¥575,631¥178,929—
178,929¥ 7,076¥154,214¥100,257—
100,257¥ 7,473¥ 96,230¥34,326—
34,326¥ 6,263¥19,969¥1,201,070—
1,201,070¥ 48,387¥ 846,046¥ 75,089
27,738102,828¥ 5,018¥ 54,374¥1,276,159
27,7381,303,898¥ 53,405¥ 900,420

24,928

4,643

1,800

449

31,821

1,629

33,451—33,451

11,808

1,816

452

—

14,0783,941

18,019—18,01932,937

5,374

2,612

1,294

42,2192,830

45,049—45,049Motorcycles

Net sales:
Outside customers
Intersegment
Total
Segment income Note 3
Segment assets
Other items
Depreciation andamortization Note 4
Investments in
subsidiaries andaffiliates accounted forby the equity method
Increase in property,
plant and equipment,
and intangible assets

Reporting segment
Industrial
MarinePowermachinery
products
products
and robots

Thousands of U.S. dollars
Reporting segment
Industrial
MarinePowermachinery
Others Note 1
products
products
and robots
Total$11,416,980 $2,301,634 $1,289,645———
11,416,980 2,301,634 1,289,645$ 354,682 $ 91,021 $ 96,128$ 7,404,567 $1,983,715 $1,237,844

Total$441,549 $15,449,833 $ 965,899 $16,415,732——
356,805
356,805
441,549 15,449,833 1,322,717 16,772,550$ 80,563 $ 622,421 $ 64,548 $ 686,969$256,869 $10,883,020 $ 699,434 $11,582,454¥— ¥1,276,159(27,738)—(27,738) 1,276,159¥
0 ¥ 53,405¥— ¥ 900,420

Amounts on
consolidated
statements
Adjustments Note 2 of income$— $16,415,732(356,805)—(356,805) 16,415,732$
0 $ 686,969$— $11,582,454

320,659

59,725

23,154

5,776

409,326

20,954430,293—430,293

151,891

23,3605,814—

181,091

50,695

231,785—

231,785423,682

69,12833,59916,645543,079

36,403

579,483—

579,483

Notes 1 “Others” is a business segment not included in the reporting segments. It includes businesses involving the manufacture and sale of automobile engines,
automobile components, electrically power assisted bicycles and industrial-use unmanned helicopters.
2 Adjustments represent intersegment transaction eliminations.
3 Segment income corresponds to operating income in the Consolidated Statements of Income.
4 Depreciation and amortization does not include amortization of goodwill.

128

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

4. Related Information(1) Information by product/service
The disclosure of relevant information is omitted as the segmentation of products and services is the same as that for the reporting
segments.

Millions of yenJapan¥146,503

North America
U.S.A.

¥161,359

Asia
Europe¥140,003¥150,747¥628,221

Indonesia

OthersTotal¥313,487¥189,328¥1,276,159

Thousands of U.S. dollars
Japan$1,884,525

North America
U.S.A.

$2,075,624

Message from the Management(2) Information by region
1) Net sales

Operating Performance

Fiscal year ended December 31, 2011

Asia
Europe$1,800,913$1,939,118$8,081,052

Indonesia

OthersTotal$4,032,506$2,435,400$16,415,732
Special Features

Note Net sales are based on categories of the locations of major customers of the group companies, classified primarily by nations and regions.

2) Property, plant and equipment
Millions of yen
Asia
Japan

North America

Europe¥111,209¥15,193¥11,229¥92,890

Indonesia

OthersTotal¥50,185¥17,906¥248,430
Overview of Operations

Thousands of U.S. dollars
Asia
Japan

North America

Europe$1,430,525$195,433$144,443$1,194,880

Indonesia

OthersTotal$645,549$230,332$3,195,652

Corporate Information(3) Information by major customer
As net sales to any specific customer within net sales to outside customers do not account for more than 10% of total net sales in the
consolidated statements of income, the disclosure of relevant information is omitted.

Financial Section

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011129

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Operating Performance

5. Information on Impairment Loss on Noncurrent Assets by Reporting Segment
Fiscal year ended December 31, 2011
Millions of yen
Reporting segment

Motorcycles

Message from the Management

Impairment loss

Marine products Power products

¥730

¥27

¥13

Industrial
machineryand robots

Total

¥—

Corporate or
eliminations

Others

¥772

¥3

Total

¥—

¥776

Thousands of U.S. dollars
Reporting segment

Motorcycles

Impairment loss

$9,390Marine products Power products

$347

$167

Industrial
machineryand robots

Total

$—

Corporate or
eliminations

Others$9,931

$39

Total

$—

$9,982

Special Features

6. Information on Amortization of Goodwill and Unamortized Balance by Reporting Segment
Fiscal year ended December 31, 2011
Millions of yen
Reporting segment

Marine products

Power products

¥81
¥64

¥27
¥22

¥8
¥9

¥—
¥—

Overview of Operations

Amortization in fiscal 2011
Unamortized balance as of December 31, 2011

Motorcycles

Industrial
machineryand robots

Motorcycles

Corporate Information

Amortization in fiscal 2011
Unamortized balance as of December 31, 2011

OthersCorporate or
eliminations

Total

¥118
¥96

¥ 9
¥23

¥—
¥—

¥127
¥119

Thousands of U.S. dollars
Reporting segment
Industrial
machinery
Marine products Power products
and robots
Total

OthersCorporate or
eliminations

Total

$347
$283

7. Information on Gain on Negative Goodwill by Reporting Segment
Fiscal year ended December 31, 2011
No related items.
8. Related Party Information

Financial Section$1,042
$ 823

Total

Fiscal year ended December 31, 2010
No related items.
Fiscal year ended December 31, 2011
No related items.

130

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

$103
$116

$— $1,518$— $1,235

$116
$296

$— $1,634$— $1,531

23. Per Share Information

Yen

Net assets per share Note 1
Net income per share—basic Note 2
Net income per share—diluted Note 2

2010¥785.61
55.50
55.50

U.S. dollars

2011¥804.26
77.23
77.23

2011
$10.350.99
0.99
Thousands of
U.S. dollars

Millions of yen

Total net assets
Amount excluded from total net assets
Subscription rights to shares
Minority interests
Net assets attributable to capital stock at the end of the period

2010¥310,809
36,557102
36,454274,252

2011¥309,914
29,151
109
29,042
280,763

2011$3,986,545
374,981
1,402
373,579
3,611,564

Message from the Management

Note 1 Net assets per share are calculated based on the following:

Operating Performance

Information regarding per share amounts for the years ended December 31, 2010 and 2011 is as follows.

Thousand shares

349,097

Special Features

Number of capital stock outstanding at the end of the period
calculated under “Net assets per share”

349,095

Note 2 Net income per share—basic and net income per share—diluted are calculated based on the following:Thousands of
U.S. dollars

Millions of yen

2010

2011
¥18,300—
18,300

Average number outstanding during the period

329,735

2011¥26,960—
26,960$346,797—
346,797

Thousand shares

Overview of Operations

Net income per share—basic:
Net income
Amount not attributable to common stockholders
Net income attributable to capital stock

349,096

Millions of yen—

Corporate Information

Net income per share—diluted:
Adjustment for net income—

SharesIncrease in the number of capital stock
Subscription rights to shares
Dilutive securities not calculated under “Net income per share—diluted”
because they do not have dilutive effect:

7,611
7,611
Resolution of Board of
Directors’ Meeting heldon May 29, 2008:
Stock options(Total number ofshares: 75,500)

Resolution of Board of
Directors’ Meeting heldon May 28, 2010:
Stock options(Total number ofshares: 56,500)

Resolution of Board of
Directors’ Meeting heldon May 28, 2010:
Stock options(Total number ofshares: 56,500)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Financial Section

3,766
3,766
Resolution of Board of
Directors’ Meeting heldon May 29, 2008:
Stock options(Total number ofshares: 75,500)

131

Financial Section

Notes to Consolidated Financial Statements

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010 and 2011

Operating Performance

Information regarding significant subsequent events for the years ended December 31, 2010 and 2011 is as follows.

Message from the Management

24. Significant Subsequent Events

1. Purpose
Management’s goal was to promote flexible implementation of capital policies and facilitate payment of future dividends toshareholders by reducing capital and legal reserves and appropriating the surplus to cover the deficit in retained earnings brought
forward.

Fiscal year ended December 31, 2010
Reduction of the Amounts of Capital Reserve and Legal Reserve and Appropriation of Surplus
A proposal to reduce the Company’s capital and legal reserves and appropriate surplus, as described below, was approved byshareholders at the 76th Ordinary General Meeting of Shareholders on March 24, 2011, and put into effect the same day.

Special Features

2. Method(1) The Company has reduced capital reserves and transferred these funds to other capital surplus, and decreased the total amount oflegal reserves and transferred these funds to retained earnings brought forward, in accordance with Paragraph 1 of Article 448 of
the Corporation Law.
i) Items regarding decreasing reserves and their amounts
Capital reserve¥23,814,148,434
Legal reserve¥ 3,775,736,564

iii) Items regarding decreased reserves and their amounts
Capital reserve¥73,941,967,288
Legal reserve¥0(2) Following the transfers of capital reserves outlined above, the Company appropriated other capital surplus to retained earnings
brought forward to cover the deficit, in accordance with the provisions of Article 452 of the Corporation Law.
i) Items regarding decreasing surplus and its amounts
Other capital reserve¥23,565,474,829

Corporate Information

Overview of Operationsii) Items regarding increasing surplus and their amounts
Other capital reserve¥23,814,148,434
Retained earnings brought forward¥ 3,775,736,564ii) Items regarding increasing surplus and its amounts
Retained earnings brought forward¥23,565,474,829

Financial Section

3. Effective date
March 24, 2011
Fiscal year ended December 31, 2011
No related items.

132

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011

Investor Information
As of December 31, 2011

Yamaha Motor Co., Ltd.

Yamaha Motor’s Share Price and Trading Volume on theTokyo Stock Exchange

Headquarters
2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-32-1103
Facsimile: +81-538-37-4252

Share price

(Yen)

4,000

Date of Establishment
July 1, 1955

3,000

Major Consolidated Subsidiaries
Yamaha Motorcycle Sales Japan Co., Ltd.
Yamaha Motor Powered Products Co., Ltd.
Yamaha Motor Corporation, U.S.A.
Yamaha Motor Manufacturing Corporation of America
Yamaha Motor Europe N.V.
MBK Industrie
PT. Yamaha Indonesia Motor Manufacturing
Thai Yamaha Motor Co., Ltd.
Yamaha Motor Vietnam Co., Ltd.
Yamaha Motor Taiwan Co., Ltd.
Yamaha Motor do Brasil Ltda.

2,000

1,000

0
2007

2008

2009

2010

Trading volume

2011(Million shares)

300

Capital Stock
Authorized:
900,000,000 shares
Issued:349,757,784 shares
Number of Shareholders: 32,259

200

Principal Shareholders
Yamaha Corporation
State Street Bank and Trust Company
Toyota Motor Corporation
Japan Trustee Services Bank, Ltd. (trust account)
Mizuho Bank, Ltd.
Mitsui & Co., Ltd.
The Master Trust Bank of Japan, Ltd. (trust account)
The Shizuoka Bank, Ltd.
The Bank of New York, Treaty JASDEC AccountNational Mutual Insurance Federation of Agricultural
Cooperatives

12.11%
8.73
3.58
3.27
3.13
2.46
2.37
1.95
1.73

100

0
2007

2008

2009

2010

2011

Shareholder Composition
Japanese financial
other instruments firms

0.6%

1.69

Japanese individuals
and others

8.1%

Annual Meeting of Shareholders
The Ordinary General Meeting of Shareholders is held in Marcheach year in Iwata, Shizuoka, Japan.

Foreign investors

43.6%

26.9%

Japanese financial institutions

20.8%

Securities Traded
Tokyo Stock Exchange, Inc.
Transfer Agent for Capital Stock
Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233, Japan
AuditorErnst & Young ShinNihon LLC

Other Japanese corporations

For further information, please contact:
Yamaha Motor Co., Ltd.
Investor Relations
Business Management Division
2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-32-1103
Facsimile: +81-538-37-4252
http://www.yamaha-motor.co.jp/global/ir/index.html
You are also invited to review the Fact Book, Financial Data,
and CSR Report on Yamaha Motor’s website at
http://www.yamaha-motor.co.jp/global/index.html

Yamaha Motor Co., Ltd. ⎜ Annual Report 2011133

YAMAHA MOTOR CO., LTD.
2500 SHINGAI, IWATA, SHIZUOKA, JAPANwww.yamaha-motor.co.jp

Printed in Japan