Annual Report 2010
Year ended December 31, 2010

Engineering Excellence and ProminenceYamaha Motor Co., Ltd. is a multinational enterprise with 140 consolidated subsidiaries and equity-method afﬁliatesin 30 countries, and about 90% of our consolidated net sales are derived from overseas markets. We operate global
development, production and sales networks, and our products are sold in more than 200 countries and regions.
We have successfully diversiﬁed our business by capitalizing on our world-leading small engine, ﬁberglassreinforced plastics and electronic control technologies. Today, our proprietary technologies extend to a wide
variety of products, including motorcycles, marine products, power products and surface mounters.
Beginning in ﬁscal 2010, we have initiated a new three-year Medium-Term Management Plan, designed 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 the creativity 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 Guideline
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

CONTENTS
Activity Highlights at Yamaha Motor

2

Financial Highlights

4

Fiscal Year in Review

8

Message from the Management

10■ Interview with the President

14

SPECIAL FEATURE 1
Growth Continues in Emerging Markets

24

SPECIAL FEATURE 2
Developing and Launching Smart Power Technologies

28

Overview of Operations

30■ Motorcycles

30■ Power Products38■ Marine Products

36■ Other Products

40■ Racing Activities

42

Corporate Social Responsibility

44■ Customers

44■ The Community

46■ Employees

45■ The Environment46■ Business Partners

45

Corporate Information■ Corporate Governance48
48■ Directors, Corporate Auditors andExecutive Officers■ Organization

Notice regarding forwardlooking statements

56■ Risk Factors

59■ History of the Yamaha Motor Group62■ Principal Subsidiaries and Affiliates

64

58

Financial Section

67

Investor Information

115

Statements in this annual report, except for historical facts, are forward-looking statements about the future performance of the Company 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.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 20101

Activity Highlights at Yamaha Motor
Yamaha Motor began operating under a three-year Medium-Term Management Plan in 2010, and we achieved our initial-year target of achieving
profitability on a consolidated operating income basis. Going forward, we will lay the groundwork for future growth through ongoing structuralreforms and by addressing issues including the establishment of a solid earnings structure through reforms to the management foundation todeal with the yen’s appreciation, with the goal of achieving a consolidated operating income margin of 5% in 2012.

2010
Consolidated operating income: returned to profitability

Laying the groundwork for future growth
Inventory reductions in U.S.
motorcycle business

Strengthening competitivenesswith next-generation products

To 49,000 units in 2010
from 90,000 units in 2009

Launching next-generation
environmentally friendly engines

Growth in motorcycle unit sales

Steadily enhancing motorcycle
production capacity

To 6.96 million units in 2010
from 5.84 million units in 2009

F300B

Reaching 3.60 million units in Indonesia,
1.00 million units in Vietnam

Management foundation reform(Establishing profitable structure at ¥80 = US$ / ¥105 = €)Completing structural reforms and establishingprofitable structure (¥88 = US$ / ¥128 = € ¥88 = US$ / ¥116 = €)2

Progress in business restructuring

Cost reduction target 90% achieved

To 11 from 12 factories in Japan;
932 headquarters staff applied for voluntary
retirement

Having already achieved 90% of ¥60 billion
target for 2012, raising target to ¥75 billion

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Operating Performance

2012

201X

Message from the Management

2011

Consolidated operating
income margin: 5%

Special Feature

Developed nations:prepare for recovery of demand

Overview of Operations

Emerging nations:motorcycle + marine + power products businesses

New growth category:marketing/personal mobility/new technology

CSR
Corporate Information

Dealing with appreciation of the yen:short-term, medium-term, long-term policy

Financial Section

Reforming manufacturing layout (Japan):headquarters + group companies

Additional cost reduction targets:¥60 billion¥75 billion

Details
P10: Message from the Management
P24: Special Feature

YAMAHA Motor Co., Ltd. ⎜ Annual Report 20103

Financial Highlights
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance

Millions of yen

Special Feature

Message from the Management

For the year:
Net sales
Gross profit
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Net cash provided by operating activities
Net cash 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 (%)

2010

2010

¥ 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$ 15,880,857
3,627,009
629,623
811,658
224,567
1,282,746(461,799)
820,947
64,990416,481449,061

12.2%
46.1
—
—
—
41.1
(16.9)
132.2—(26.3)(31.9)¥ 987,077
249,266
399,942¥ 978,343
310,809322,441$ 12,005,682
3,814,075
3,956,817(0.9)%
24.7(19.4)(5.4)(71.2)
21.5
—
188.3

4.0
7.5
28.0
23.8
117.6

Overview of Operations¥(755.92)—743.04
0.00

U.S. dollars

¥

55.50
55.50
785.61
0.00

CSR

¥

1,166
333,300¥$% change

0.68
0.68
9.64
0.00

1,323
461,855$

Corporate Information% change

16.24
5,667,628

Persons

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

—%
—
5.7
—

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

2010/2009

2009

Yen

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

Thousands of
U.S. dollars

13.5%
38.6

% change

30,01349,99430,01752,1840.0%
4.4

Financial Section

Notes • U.S. dollar amounts are translated solely for convenience at ¥81.49 = U.S.$1.00, the rate of exchange prevailing at December 31, 2010. (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 of the year indicated for the ﬁscal years ended December 31, 2009 and 2010.
• With regard to amounts stated in million yen units, amounts less than ¥1 million are rounded down. For amounts stated in 0.1 billion or billion yen units, amounts less than ¥0.1 billion or ¥1 billion,
respectively, are rounded off.

Cash dividends per share

Market capitalization(¥)(Billion ¥)(Persons)

1,200

60,00041

4036

Number of employees

1,070
46,85030

90049,761 49,994

52,18445,000 41,958
775

25.50
20

600

30,000
462
333

10

0
2006

4

267

300

2007

2008

0

0

2009

2010

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

15,000

0

0
2006

2007

2008

2009

2010

2006

2007

2008

2009

2010

Operating income and operating income margin

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

(%)

2,000

150

9

90

6.0

7.8

1,757
123.5

1,604

1,582
1,500

Operating Performance

Net sales

77.2
4.9 71.2

127.0
7.2

100

6

60

3

30

4.1

4.0

1,294
4.0

1,154
3.0

50

51.3

48.4

Message from the Management

1,000

2.0

1.4
18.3

500

0

0

1.9

0

0.1

-5.4
0

-62.6

-80
2006

2007

2008

2009

2010

2006

2007

2008

2006

Operating income margin (%)

Net income

Corporate Information

(%)

(¥)

600

60

300

7.4

569

270

501
6.0

428

450
41.7

1,163
987

978

42.1
33.9

3

249
21.5

1.9
0.2

500

311

300

0

150

-25

0

28.0

45

200

30

100

249

56
15

0

0

-800

6

-20.1
0
2006

2007

Total assets

2008

2009

2010

Return on assets (%)

2006
Net assets

2007

2008

2009

2010

Financial Section(Billion ¥)1,129

Net income margin (%)

Net income per share

9

1,000

-20.0

2010

Net assets and equity ratio

(%)

6

2009

Net income
With the return to proﬁtability on bothan operating income and ordinary
income basis, and the absence of theprevious year’s ¥103.7 billion in
restructuring expenses, net income
improved by ¥234.4 billion ($2,877.0
million), to an ¥18.3 billion ($224.6
million) net profit. The net income
margin improved to 1.4%.

2,000

1,258

2008

Operating income
We achieved our Phase 1 target under
the Medium-Term Management Plan of
proﬁtability on an operating income basis,
with a ¥113.9 billion ($1,397.6 million)
improvement to a ¥51.3 billion ($629.6
million) operating proﬁt. This reﬂected an
improvement in marginal profit fromsales growth combined with reductions
in depreciation and personnel expenses
as a result of restructuring, which offset
the negative impact of the stronger yen
and higher prices for raw materials. The
operating income margin improved to
4.0%.

(Billion ¥)

1,500

2007

CSR

Total assets and return on assets-250

Overview of Operations

Net sales
With an uncertain outlook in Europe andNorth America because of the sluggish
economic recovery and in Japanbecause of the yen’s appreciation,
motorcycle sales declined in developed
markets, but sales of outboard motors
and surface mounters recovered. On
the other hand, motorcycle markets in
Asia and other emerging markets grewin line with economic expansion, and as
a result, net sales totaled ¥1,294.1
billion ($15,880.9 million), for a 12.2%
increase from the previous ﬁscal year.

-10
2010

Special Feature

Operating income

2009

0

-18.7
-216.1

-756
2006

2007

2008

2009

2010

Equity ratio (%)

YAMAHA Motor Co., Ltd. ⎜ Annual Report 20105

Financial Highlights
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Message from the Management

Operating Performance

Motorcycle unit sales by market
Thousand units

Thousand units% change

2009

2010

2010/2009

Japan

108

99

(8.3)%

North America

9253(42.6)

Europe275

227(17.5)

Asia Note

4,993

6,084

21.8

372

497

33.6

5,841

6,960

19.2%

Other areas
Special Feature

Total
Note Excluding Japan

Overview of Operations

Motorcycle unit sales
Years ended December 31

Europe(Thousand units)
CSR

500

400

407

410
366

300

Asia

275

Corporate Information

227(Thousand units)

200

7,500
100

6,084

6,000
4,717

0
2007

2008

2009

2010

Financial Section

2006

4,500

4,993

3,770

Japan

3,272
3,000

(Thousand units)

200
1,500
160

161

163

0
2006

2007

2008

2009

2010

122

120

108

99

80

40

0
2006

6

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

2007

2008

2009

2010

Sales by market
Marine products business% change

Millions of yen% change

Power products businessMillions of yen

Other products business% change

Millions of yen% change

2010/2009

2009

2010

2010/2009

2009

2010

2010/2009

2009

2010

2010/2009¥ 38,015¥ 32,423(14.7)%¥ 23,701¥ 22,085(6.8)%¥ 8,880¥ 10,880

22.5%¥59,839¥ 76,989

28.7%

North America

57,97934,052(41.3)

55,27967,67222.4

52,38953,843

2.8

680

1,108

62.9

Europe143,723

111,964(22.1)

33,77634,2501.4

20,553

19,239

(6.4)

3,895

4,916

26.2

Asia Note

478,966

607,861

26.9

6,637

9,708

46.3

4,321

6,288

45.5

10,51721,022

99.9

Other areas

98,371

119,675

21.7

30,71633,4248.8

14,432

12,717(11.9)

10,96014,00727.8¥817,058¥905,977

10.9%¥150,113¥167,14111.3%¥100,577¥102,968

2.4%¥85,893¥118,043

37.4%

Total

Special Feature

2010

Message from the Management

2009
Japan

Operating Performance

Motorcycle businessMillions of yen

Note Excluding Japan

Overview of Operations

North America(Thousand units)

250
CSR

207
200

197
167

150
Corporate Information

92

100

53

50

0
2006

2007

2008

2009

2010
Financial Section

Other areas(Thousand units)

497

493

500
457
400

373

372

300

200

100

0
2006

2007

2008

2009

2010

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

7

Fiscal Year in Review
Year ended December 31, 2010

Operating Performance

Motorcycles

Major products:% of net sales

Sales by market(Billion ¥)Motorcycles and knockdown

32 (3.6%)
34 (3.8%)120 (13.1%)

parts for overseas production

Message from the Management

112 (12.4%)

70.0%

608 (67.1%)

Japan

XT1200Z Super Ténéré

Special Feature

Marine Products

Major products:

EuropeNorth America% of net sales

Other areas
Asia

Sales by market(Billion ¥)Outboard motors, personal

22 (13.2%)

watercraft, pleasure-use boats,fiberglass-reinforced plastic

33 (20.0%)

pools, fishing boats, utility
Overview of Operations

boats and diesel engines

12.9%

10 (5.8%)
68 (40.5%)

34 (20.5%)

Japan

VX Cruiser

CSR

Power Products

Major products:% of net sales

13 (12.3%)

golf cars, generators, smallCorporate Information

Sales by market
11 (10.6%)

side vehicles, snowmobiles,

multi-purpose engines

Other areas
Asia(Billion ¥)All-terrain vehicles, side-by-

sized snow throwers andEuropeNorth America

6 (6.1%)

8.0%
19 (18.7%)
54 (52.3%)

Japan
Financial Section

Other Products

Major products:

EuropeNorth America

Grizzly 350% of net sales

Other areas
Asia

Sales by market(Billion ¥)Surface mounters, industrial
robots, automobile engines,

14 (11.9%)

automobile components,
electrically power assisted
bicycles, unmanned industrial

9.1%

21 (17.8%)

helicopters, electrically powered
wheelchairs and intermediateparts for products in all business segments
PAS Raffini

8

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

77 (65.2%)
5 (4.2%)1 (0.9%)Japan

EuropeNorth America

Other areas
Asia

Operating results
(%)

1,200

9.0

1,056 1,029
915

800

6.0

6.0

906

817

6.0
4.7

3.3

400

43

34

0

0

-4
-0.5

-3.0

-400
2006

2007

2008

2009

2010

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

Operating results
300

Business review:
The outboard motor business recovered on a rebound in sales in North
America and other developed markets from the introduction of new, large,
next-generation 4-stroke outboard motors, and a contribution from solid
results in Brazil, Russia, Asia and other emerging markets.
As a result, net sales of marine products rose ¥17.0 billion ($209.0

(%)

290

267

12.0
9.7 239

8.7
200

8.0

167

150
2.5
28

23

0.4
1

6

0

-24
-16.2

-100
2006

2007

2008

2009

0

-20.0

2010

Sales

(%)

300

12.0

11.0
266
250

Business review:
U.S. retail sales of all-terrain vehicles (ATVs) declined, but wholesale shipments
rose, reflecting the previous year’s inventory adjustments.

8.4 213

As a result, net sales rose ¥2.4 billion ($29.3 million), or 2.4%, to ¥103.0
8.0

200

billion ($1,263.6 million), and the operating loss narrowed by ¥22.5 billion ($276.3
million), to ¥11.3 billion ($1,448.6 million).

4.0

1.7

28

22

4

0

-34

-11

0

-10.9
-33.6

-100
2007

2008

2009

-40.0
2010

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

16.2

150

Business review:
Sales in the intelligent machinery (IM) business doubled as demand recovered,

(%)

16.0

200

12.0

4.2
14

0
2007

4.0

2008

0
-0.4
2009 2010

Sales
Operating income

195

improvement in operating income, to a ¥19.1 billion ($234.1 million) profit.

8.0

86

50

sales, to ¥118.0 billion ($1,448.6 million), with a ¥19.5 billion ($238.8 million)

118

100

2006

and the PAS business recorded solid sales growth as well.
This resulted in a ¥32.2 billion ($394.5 million), or 37.4%, increase in net

145
123
9.3

18

Reference Information
Pages 38 to 39

Financial Section

Operating results

150 12.1

Corporate Information

103

101

100

2006

Reference Information
Pages 36 to 37

CSR(Billion ¥)million), or 11.3%, to ¥167.1 billion ($2,051.1 million), and operating income
improved by ¥25.0 billion ($307.1 million), to a ¥0.7 billion ($9.2 million) profit.

Operating income(loss)
Operating income
margin (%)

Operating results

Overview of Operations

4.0

100

Special Feature(Billion ¥)Message from the Management

63

55

3.0

Business review:
During the fiscal year ended December 31, 2010 (“fiscal 2010”), unit sales in thedeveloped markets of Japan, North America and Europe declined on lower-thananticipated demand, and this combined with a stronger yen led to a decline in net
sales. The ASEAN region saw an increase in the number of units sold, and net
sales grew, as a result of closely targeted regional marketing and the aggressive
introduction of new models. Sales also recovered in Central and South America, led
by Brazil, on employment growth and increased retail consumption.
As a result, net sales rose ¥88.9 billion, or 10.9%, to ¥906.0 billion, andoperating income improved by ¥46.9 billion ($575.4
Reference Information
million), to a ¥42.7 billion ($524.5 million) profit.
Pages 30 to 35

Operating Performance(Billion ¥)0

Operating income
margin (%)

Reference Information
Pages 40 to 41

YAMAHA Motor Co., Ltd. ⎜ Annual Report 20109

Message from the Management

Operating Performance

Message from the Management

Special Feature

Hiroyuki Yanagi
President, Chief Executive Officer and Representative Director

Takaaki Kimura

Financial Section

Corporate Information

CSR

Overview of Operations

Senior Managing Executive Officer and Representative Director

Hiroyuki Yanagi
President, Chief Executive Officer
and Representative Director

10

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Takaaki Kimura
Senior Managing Executive Officer
and Representative Director

Operating Performance

To Our Stakeholders
We will continue to offer new excitement and a more fulfilling life forpeople all over the world, as an excellent engineering, manufacturing and

Message from the Management

marketing enterprise with a prominent presence in the global market.

Special Feature

The fiscal year ended December 31, 2010 saw the Yamaha Motor group shift to a new management
structure. This was also our first year under our new Medium-Term Management Plan for the threeyear period from 2010 to 2012, and we would like to take this opportunity to provide stakeholders

Overview of Operations

with a summary of the year’s developments, and our outlook for the future.

Looking Back at Fiscal 2010
The Yamaha Motor group achieved a turnaround in its operating results in fiscal 2010, with consolidated
net sales of ¥1,294.1 billion, operating income of ¥51.3 billion, ordinary income of ¥66.1 billion and net
income of ¥18.3 billion.

CSR

Looking back at the performance of our business segments during the year, motorcycle unit sales
increased beyond expectations in growing emerging markets. Although motorcycle unit sales fell short ofestimates in developed markets, progress was made in bringing market inventories to appropriate levels

Corporate Informationin the United States. The markets for outboard motors and the Intelligent Machinery business recovered
as well. Steady progress was made with regard to the reorganization issues of our manufacturing layout
in Japan, reforming the structure, cost reductions and restructuring of business segments. We also
addressed the issues of strengthening competitiveness in motorcycles in emerging markets, next-

we strengthened our financial base with a turnaround to profitability, inventory reductions and a capitalincrease via public offering.

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

Financial Section

generation environmentally friendly engines and Smart Power* under our growth strategy. In addition,

These results were achieved by focusing on shared goals for management restructuring, working
toward those goals comprehensively as a group, and with the support of our vendors.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201011

Message from the Management

Operating Performance

Medium-Term Management Plan—Continuing Structural and Foundation
Reforms and Shifting the Footing Towards Growth
The Medium-Term Management Plan aims to transform the management structure to achieve sustainablegrowth by 2012, with interim targets of achieving profitability on an operating income basis (2010);

Message from the Management

stabilizing earnings to offset factors like the yen’s appreciation (2011); and achieving a consolidated
operating income margin of 5% (2012). Nevertheless, given the increased importance of addressing aneven stronger yen, we are also working to reform the management foundation with the aim of being able
to maintain profitability at exchange rates of ¥80/U.S. dollar and ¥105/euro.
In terms of our growth strategy, we are working aggressively to expand the scope of our businessSpecial Featurein emerging markets. In addition, we are working to expand existing fields of business and pursue new
business along the three vectors of “creating fulfilling lifestyles,” “creating enjoyment in personal mobility”
and “creating innovative technologies that harmonize with people, the Earth and society.”

Overview of Operations

The basic direction of the Medium-Term Management Plan has three components. The first is theexisting issue of carrying out structural reforms, and the second is our continuing to address short-term,
medium-term and long-term issues to reform our management foundation. At the same time, there is athird component of shifting the footing towards growth.

CSR

Evolving as a Corporate Group into an Excellent Engineering, Manufacturingand Marketing Enterprise, with a Prominent Presence in the Global Market
As we pursue this Medium-Term Management Plan with a view to the future, we would like the entire
Company to share a common and clear vision of the company Yamaha Motor should be. That identity

Corporate Information

can be summarized as:

Pride in the Company’s strengths
Yamaha Motor has succeeded in returning to profitability from a record loss. Going forward, we wantFinancial Section

Yamaha Motor to be a company that is strong in the face of adversity, using the strength of the entire
group, with pride in our corporate strengths.

Acting with speed, a spirit of challenge and persistence
Yamaha Motor will strive to change the way we work and keep the Company moving forward. Individuals
who understand the importance of speed; are willing to take on challenges; and work persistently will
have important roles to play. Bringing together this type of individual creates a strong corporate climate.
We will work to make Yamaha Motor a company in which every employee shares the values that thesethree action guidelines embody.

12

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Operating Performance

Being “an excellent engineering, manufacturing and marketing enterprise with aprominent presence in the global market”
Throughout its 55-year history, Yamaha Motor has manufactured excellent products and brought
Kando* to customers all over the world. The key to this success has been excellence in engineeringand marketing. We must continue to exceed the expectations of our customers by pursuing the next
breakthroughs in engine technology, creating enjoyment in personal mobility and branching out into new

Message from the Management

and manufacturing, backed by combined strengths in planning, development, production, procurement*Kando is a Japanese word forthe simultaneous feelings ofdeep satisfaction and intense
excitement that we experience
when we encounter somethingof exceptional value.

technological fields. By working toward these goals, Yamaha Motor aims to be an excellent enterprisethat takes on engineering, manufacturing and marketing challenges, and has a prominent presence inSpecial Feature

the global market.

To Our Stakeholders
Although our consolidated business performance is showing a recovery in earnings, we were not able

Overview of Operations

to eliminate our cumulative loss on a non-consolidated basis in fiscal 2010. As a result, we regret to
inform shareholders that we feel it is necessary to forgo a dividend payment for the year, and kindly ask
for your understanding. We are putting all of our efforts into being able to resume dividend payments at
an early date.
The general operating environment in 2011 remains basically unchanged, with weakness in

CSR

developed markets and growth in emerging markets. In addition to the possibility of an even stronger
yen, we are concerned about the impact from the unprecedented earthquake that struck northeasternJapan and the resulting problems at the nuclear power plant in Fukushima Prefecture.

Corporate Information

We extend our sincerest condolences to the many victims of this disaster and will continue to do
our utmost to extend whatever assistance we can to provide relief. We will also closely follow the statusof recovery at our materials and parts manufacturers that suffered damage, and adjust our operatingplans accordingly. In the event we anticipate any major impact to Yamaha Motor’s earnings going
forward, we will report on that development in a timely manner.

Financial Section

These events are seen presenting the greatest difficulties and hardships that the Japanese
economy has experienced in the postwar period. Nevertheless, management and the entire Yamaha
Motor group will work together and put every effort into meeting the expectations of stakeholders andbuilding toward the future, and we ask for your ongoing support.

April 2011

Hiroyuki Yanagi

Takaaki Kimura

President, Chief Executive Officer
and Representative Director

Senior Managing Executive Officer
and Representative Director

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201013

Interview with the President

Operating Performance

We are continuing structural and foundation reforms,

Message from the Management

while shifting the footing towards growth

BUSINESS RESULTSFOR FISCAL 2010

Q1

Please give us a recap of Yamaha Motor’s business results
for fiscal 2010 when the Company returned to profitability on
an operating income basis.

The significant rebound in performance was the result of an increase in motorcycle
Special Featureunit sales in emerging markets and a recovery in sales of outboard motors andintelligent machinery, combined with structural reforms.
The economic environment saw a sluggish recovery in Europe and the United States.
Despite signs of improvement in consumer spending in the United States, an improvement inOverview of Operations

employment conditions lagged, and Europe experienced financial crises in countries bordering
the euro zone. On the other hand, the trend of economic growth continued in emerging
markets, especially in Asia.
Against this backdrop, even though Yamaha Motor’s consolidated net sales suffered
due to the yen’s appreciation, growth in motorcycle sales in emerging markets and a recovery

CSR

in sales of outboard motors and surface
Net sales

Operating income (loss) and net income (loss)(Billion ¥)2,000(Billion ¥)150

In terms of profit, despite the negative
impact from a stronger yen and higher prices

1,604

1,582

Corporate Information¥1,294.1 billion.

123.5 127.0

1,757

1,500

100
1,294

77.2

1,154

1,000

for raw materials, increased sales led to a
71.2

higher gross profit, and with decreased

51.3

48.4

50

depreciation and personnel expenses from
18.3

Financial Section

500

mounters resulted in consolidated net sales of

1.9

0

structural reforms and other cost reductions,
we achieved an operating income of ¥51.3

-62.6

0

-216.1

-250
2006

2007

2008

2009

2010

2006

2007 2008

Operating income(loss)

2009

Net income(loss)

2010

billion (a ¥113.9 billion improvement fromfiscal 2009) and ordinary income of ¥66.1
billion(a¥134.5billionimprovement).

Reflecting ¥103.7 billion in restructuring
expenses recorded in the previous year, net income improved by ¥234.4 billion to ¥18.3
billion.
Recovery in operating performance was the result of focusing on shared goals for
management restructuring, and working toward those goals comprehensively as a group.
This led to achieving our fiscal 2010 target under the Medium-Term Management Plan ofreturning to profitability on a consolidated operating income basis.

14

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

What strategies did you implement in emerging anddeveloped markets?

Operating Performance

Q2

In emerging markets, we increased production capacity in line with growth inmotorcycle unit sales.

Message from the Management

In developed markets, we saw a recovery in the marine products business.
Yamaha Motor’s motorcycle unit sales in emerging markets grew 22.8% from fiscal
2009, to 6.56 million units, by actively introducing new products and strengthening our sales
network. In anticipation of further growth, we also increased our production capacity to 3.60
million units in Indonesia, and to 1.00 million units in Vietnam.

Special Feature

In developed markets, demand for motorcycles was lower than anticipated, and withthe additional impact of a stronger yen, sales declined from the previous year. At the sametime, we optimized our market inventory in the United States, bringing it in line with current
demand. The marine engine business recorded sales growth as both retail sales andOverview of Operations

wholesale shipments exceeded the previous year. This was the result of inventory adjustments
carried out in 2009 and the introduction of newly developed next-generation environmentallyfriendly engines (four models). We also signed a joint development agreement with AB Volvo
Penta, the Swedish marine engine manufacturer for the development of electronic control
systems for boats powered by outboard motors. We will utilize the strengths of bothcompanies to further enhance our market competitiveness, and provide high-quality, highly

CSR

dependable products to the global marine market.

The markets in emerging nations

6.56
millionunits

Increasing production capacity

Vietnam
Production capacityof 1.00 million units

Financial Section

5.34
millionunits

Corporate Information

Expanding motorcycle unit sales

Indonesia
Production capacityof 3.60 million units
2009

2010

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201015

Operating Performance

Interview with the President

STRUCTURALREFORMS

Q3

What progress was made in reorganizing the manufacturinglayout in Japan?

We are shifting our focus from “market size-dependent” to “break-even-point”

Message from the Management

operations.
We are shifting the focus to “break-even-point” operations, and reorganizing ourmanufacturing layout in Japan. This aims to reform our earnings structure for developed
markets so that profitability can be maintained even with domestic production of 200
thousand units for motorcycles, 230 thousand units for outboard motors and 100 thousand
units for ATVs.
Special Feature

Our manufacturing layout in Japan will be reorganized from 12 factories/25 units to 7
factories/14 units. During 2010, we reduced the number to 11 factories/21 units.
We are also striving to extend companywide activities such as “theoretical-value-

Overview of Operations*Zensuu Ryouhin Process Activities:
Activities pertaining to the Zensuu
Ryouhin Process, a process thatallows for the logical designing andsustenance of consistently high-quality
products

based production” and “Zensuu Ryouhin Process Activities*” to our group companies.

Q4

What cost-cutting measures were taken?

CSR

We have reached 90% of our initial target in cost reductions, and we are now
working towards an even higher target.
To reduce the cost of procured parts, we are carrying out PRO-10 (cost reduction)
activities with the aim of reducing costs by ¥60 billion over the three years to 2012, and as ofCorporate Information

the end of 2010 we had already achieved 90% of this target. We are now building on these
PRO-10 activities, and have raised our target for 2012 from ¥60 billion to ¥75 billion.

Financial Section

Saving targets from parts procurement costs (2010–2012)¥75 billion¥60 billion

Targetin 2010

16

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Adjusted target
in 2011In Japan, we have established the Cost Innovation Section to reform the cost structure
Operating Performanceby integrating design, manufacturing technologies, and procurement functions, and through“concurrent” and “theoretical-value-based production” activities with our suppliers, we aremaking steady progress in cost reductions. In Asia, which accounts for 60% of our total
procurement in terms of value, we are cultivating local manufacturers in China and India andMessage from the Management

rolling out domestic activities like the promotion of “concurrent activities in ASEAN.” We arealso building a structure for global concurrent activities, and promoting interchangeableparts among overseas group companies.

Special Feature

Q5

What other progress has been made in structural reforms?

We are proceeding on schedule under the Medium-Term Management Plan.
Overview of Operations

With regard to structural reforms, 932 staff at our headquarters applied for the voluntary
retirement scheme in October 2010, and we also reduced the number of our employees by
350 in Europe and the U.S. Decisions were also made to sell our domestic water purifierbusiness and withdraw from the life science business to concentrate on our core businesses.

How is the “affordably priced motorcycle” strategy
progressing?

CSR

Q6

GROWTHSTRATEGY
Corporate Information

Volume segment models introduced in China and India are showing solid
sales. We intend to launch affordably priced models in other markets aroundthe world.
During 2010, we launched the affordably priced YB125-Z in China and the affordable
150cc SZ series in India, and both have been well received. Yamaha Motor is leveraging its

Financial Section

brand image established in emerging markets with high-quality, high-value-added models toaccelerate the introduction of new products in the affordably priced motorcycle zone, thelargest volume segment in the Chinese and Indian markets.
Going forward, we intend to introduce affordably priced models globally, while focusing
on China and India.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201017

Interview with the President

Operating Performance

Q8
Q7

How about the strategy of “Promoting FI* in ASEAN”?

We are aiming to increase the percentage of FI models in the ASEAN market,

Message from the Management

and have established a local fuel injection production system capable ofproducing one million units.
In cooperation with parts manufacturers, in 2010 we established a local FI production
system capable of producing one million units in order to proactively launch models with FI
systems like the YM-JET-FI for scooters and commuter vehicles. Fuel efficiency is a highpriority in the ASEAN market, and we are addressing the needs of customers by increasing
Special Feature

the percentage of FI models.
In addition to enhancing the strength of our products, we are also working to make FImodels at the same cost as carburetor models, and aim to increase profitability throughOverview of Operations

economies of scale.

*FI: Fuel injection

CSR

Q8

Tell us about the development of “next-generation
environmentally friendly engines.”

We are strengthening our product competitiveness in commuter vehicles in the
ASEAN market through better fuel efficiency.
Corporate Information

Outboard motors have experienced a recovery in sales driven by the launchof four next-generation models.
In the motorcycle business, we are working to further refine our proprietary FI systemwith the aim of improving fuel efficiency in 2012 models by 30% compared with our 2008
models, and by 50% in 2015 models. This improved fuel efficiency will enhance our product

Financial Section

competitiveness in commuter vehicles in the ASEAN market, and lead to increased sales.
The outboard motor business saw sales recover, driven by the introduction of four newmodels of next-generation, 4-stroke large outboard motors that combine speed with fuelefficiency. Steady progress is also being seen in the development of next-generation,
environmentally friendly engines that significantly improve fuel efficiency. We are accelerating
our development of cutting-edge environmental technologies, with the aim of improving fuelefficiency by 30% in 2015 models compared with our 2007 models.

18

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Next-generation environmentally friendly engines
Operating Performance

Fuel consumption (km/L)

Motorcycles
2015 target

30% improvement in fuel efﬁciency bydeveloping FI technologies (2012)50%(vs our 2008 models)

Message from the Management

Marine Engines
2015 target

Lexam

30%
(vs our 2007 models)Releasing environmentally friendly engines
Special FeatureComplying with U.S. emission regulations
ahead of schedule

2009

2012

2015

Year
Overview of Operations

F300B

Q9

How is the development of “Smart Power” progressing?

We have launched the EC-03 electric motorcycle in Japan, and the PAS
CSR

business has experienced solid growth.
We are striving to meet expectations for next-generation personal mobility.
“Smart Power” will play a key role in next-generation transport infrastructure, and as

Corporate Information

part of this movement Yamaha launched the EC-03 electric motorcycle in Japan in
September 2010. Our initial sales target called for 1,000 vehicles in the first full year fromthe launch date, and as of the end of December 2010 wholesale sales had already reachedapproximately 1,000 units, prompting us to raise our sales target to 2,000 units.
We also plan to introduce the EC-03 in Europe and Taiwan in 2011. At the same time,

Financial Section

the PAS electrically power assisted bicycle business recorded a 17% increase in 2010 unit
sales, to 93 thousand complete units, as a result of our proprietary S.P.E.C.3* system.
By promoting Smart Power, both businesses are working to meet expectations for
personal mobility that conforms to a low-carbon society.

*S.P.E.C.3: Shift Position Electric Control and in-hub 3-speed gear mechanism

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201019

Interview with the President

Operating Performanceis your stance on investing in research andQ10 Whatdevelopment?
We are strengthening our investment in research and development to “lay the

Message from the Management

groundwork for future growth.”
During 2010, we proactively worked to cultivate new markets, with the developmentof new, cost-competitive motorcycles for emerging markets, the development of nextgeneration environmentally friendly engines and the introduction of the EC-03 electricmotorcycle.
We also procured ¥74.6 billion in capital through a public offering in April 2010, toSpecial Featureaccelerate development investment to lay the groundwork for future growth and strengthen
our financial foundation. Of this amount, ¥19.3 billion is slated for development of affordably
priced commuter vehicles in emerging markets, ¥34.7 billion is being used to promote FI
vehicles in ASEAN and develop next-generation environmentally friendly engines, and ¥8.0

Overview of Operations

billion is being allocated to Smart Power. Having secured stable, long-term capital, we are
well on our way to laying the groundwork for future growth.

CSR

STRENGTHENING
THE FINANCIAL
FOUNDATION

Q11 What is the status of strengthening the financial foundation?
We are aiming to achieve our Medium-Term Management Plan targets, originallyset for 2012, one year ahead of schedule.

Corporate Information

Inventory reductions and the return to profitability generated ¥66.9 billion of free cash
flow in 2010, and we reduced gross interest-bearing debt by ¥77.5 billion, to ¥322.4 billion
from ¥399.9 billion. In addition, with the ¥74.6 billion public offering we secured funds forresearch and development and bolstered shareholders’ equity. This increased cash anddeposits to ¥205.3 billion as of the end of 2010 from ¥137.3 billion at the end of 2009 (aFinancial Section¥68.0 billion increase), and net assets grew to ¥310.8 billion from ¥249.3 billion (a ¥61.5
billion increase).
As a result, net interest-bearing debt was reduced by ¥145.5 billion, to¥117.1 billion as of the end of 2010 from ¥262.6 billion at the end of 2009;
the debt-equity ratio improved to 1.2 from 1.9; and the equity ratio roseto 28% from 22%, for a significantly stronger financial foundation.

20

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Operating Performancethe recovery in business results, what is your thinking
Q12 Given
with regard to shareholder returns?
We will strive to stabilize the management foundation in order to resume dividend
payments at an early date.

Message from the Management

Although 2010 showed a steady recovery in Yamaha Motor’s business results, we were
not able to eliminate our cumulative loss on a non-consolidated basis, and felt it necessary toforgo dividend payments for the year. I kindly ask our shareholders for their understanding.
In order to prepare for future dividend payments, we have eliminated the nonconsolidated-basis cumulative loss in 2011 through reductions of additional paid-in capitalSpecial Featureand legal reserve and the appropriation of surplus, to apply retained earnings brought forward
to the disposition of the deficit as approved at the Ordinary General Meeting of Shareholders
held in March 2011.
Going forward, we will make every effort to generate profit to make it possible toOverview of Operations

resume dividend payments at an early date.

do you see as issues to be addressed in the
Q13 Whatforeseeable future?

CSR

We will continue to work on the issues currently being addressed under the
Medium-Term Management Plan, while repositioning to lay the groundwork for
future growth.

Corporate Information

Our basic outlook for the economic environment—a gradual recovery in developed
markets and growth in emerging markets—remains unchanged. Nevertheless, in addition to
the unchanging trends of higher prices for crude oil and raw materials and a stronger yen,coupled with the earthquake and tsunami that struck northeastern Japan and the resulting
problems at the nuclear power plant in Fukushima, we recognize that the operating

Financial Section

environment will be extremely difficult.
In order to continuously generate growth in this environment, we will continue to work
on issues including ongoing structural and management foundation reforms to be able tomaintain profitability at exchange rates of ¥80/U.S. dollar and ¥105/euro, cultivating newmarkets and entering new business fields. We will also accelerate our efforts under the
Medium-Term Management Plan announced in February 2010, to stabilize earnings in 2011
despite the negative impact of factors including a stronger yen, and aim to achieve a
consolidated operating income margin of 5% in 2012.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201021

Interview with the President

Operating Performance

Management foundation reforms, growth scenario
MEDIUM-TERM
MANAGEMENTTARGETS FOR 2012

are you transforming the management foundation
Q14 How(to address the appreciation of the yen)?

Message from the Management

We are transforming the management foundation to be able to maintainprofitability at exchange rates of ¥80/U.S. dollar and ¥105/euro.
Based on the assumption that the yen will continue to appreciate, we are transforming
our management foundation from a short-term, medium-term and long-term perspective toachieve an earnings structure that is able to maintain profitability at exchange rates of¥80/U.S. dollar and ¥105/euro.
Special Feature

For the short term, we are further reducing business costs. Over the medium term, we
will eliminate our excessive dependence on scale, maintain production volumes in Japan thatare clear of the break-even point and generate marginal profit.

Overview of Operations

headquarters is specializing in the development of cutting-edge technologies, while promoting

CSR

Looking to the long term, we are striving to add value to headquarters functions. The

Future growth scenario

the localization of product development. In terms of production, we will diversify our production
line while maintaining low production volume, and will further consolidate and streamline
administrative functions.

Corporate Information

Q15 Please tell us about developments in emerging markets.
We are strengthening our local production capacity and accelerating thediversification of our product lineup in line with growth in motorcycle unit sales
in emerging markets.

Financial Section

Along with continuing to proactively invest in growing markets for the motorcycle
business, we will accelerate our growth in emerging markets by promoting the developmentof various products in promising markets for products like marine products and generators.
In the motorcycle business, total demand in emerging markets is expected to grow to
58 million units in 2012, for a 12 million-unit increase from 46 million units in 2009.
Yamaha Motor’s 22.8% growth in 2010, to 6.56 million units, outpaced that of the total
market. We are aiming for annual growth in the one million-unit range, and are forecasting
an increase to 8.40 million units in 2012.
To achieve this, we will increase our production capacity in Indonesia to 4.00 million
units, introduce affordably priced models in China and India, incorporate FI in ASEAN
models, increase sales in Central and South America, and cultivate markets in Africa.

22

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Furthermore, we expect robust growth in demand for various products handled by our other
Operating Performancebusinesses, including marine products and power products in emerging markets witheconomic growth potential. Our marine products business has begun to provide boat builders
with technological assistance for pleasure boats aimed at the high net worth individual sectors
in Brazil and Russia. In China, we are strengthening our cost competitiveness with an

Message from the Management

integrated production structure for generators, and are aiming for full-scale global sales.
We will develop a variety of products for promising markets, by building on the superiorreliability of the Yamaha brand and the sales network that we have built in emerging markets.

Special Feature

Q16 What do you see as new growth areas?
By creating new values, we aim to become an excellent engineering, manufacturing

Overview of Operations

and marketing enterprise with a prominent presence in the global market.
The Yamaha Motor group has announced three directions for its engineering,
manufacturing and marketing as a future growth scenario for the years from 2010 to 2020—“creating fulfilling lifestyles,” “creating enjoyment in personal mobility” and “creating innovativetechnologies that harmonize with people, the Earth and society.” By pursuing this scenario,
we aim to become an excellent engineering, manufacturing and marketing enterprise with aCSR

prominent presence in the global market. The Yamaha Motor group is shifting the footing
towards growth and expanding its business scope by developing marine products, power
products and a range of other products in emerging markets. Under the Medium-Term

Corporate Information

Management Plan, we are aiming for consolidated net sales of ¥1,500 billion with an operating
income margin of 5% in 2012, the final year of the plan, and looking further into the future, we
are working toward a goal of consolidated net sales of ¥2,000 billion.

Financial Section

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201023

SPECIAL FEATURE 1

Growth Continues in
Emerging Markets
Trends in five ASEAN countries
The Yamaha Motor group views the ASEAN market as a strategic region
where solid growth continues, and is working to achieve “quantitative andqualitative expansion in emerging markets” by establishing both productcompetitiveness and profitability.
Note: ASEAN = Indonesia, Thailand, Vietnam, the Philippines and Malaysia

Yamaha Motor’s unit sales in five ASEAN countries (2010)

4,919,000 units(3,983,000 units in 2009)
Vietnam:

776,000
Thailand:

units

units
Malaysia:

191,000
units

Indonesia:

3,326,000
units

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

120,000
units

506,000

24

Philippines:

Activities in the ASEAN market
Increase in unit sales outpaces
overall demand growth

Yamaha Motor motorcycle unit sales
by country in main ASEAN markets(Growth rate: +21%)(Thousand units)

five ASEAN countries in which Yamaha Motor operates (Indonesia,
Thailand, Vietnam, the Philippines and Malaysia) grew 20.6%

improvements and rising consumer sentiment. The Yamaha

101
156
432

777
447

Philippines
Malaysia
Thailand

862
491

120 (+18%)
191 (+22%)

1,846
506 (+17%)

1,536
3,070

Motor group bolstered its lineup with the introduction of new

Vietnam

776 (+21%)

2,745

products and carried out proactive sales activities in each market.
As a result, our unit sales in these five major ASEAN markets grew

(Growth rate: +24%)

Message from the Managementfrom the previous year, to 13.51 million units, on infrastructure

Total demand
11,196
Yamaha Motor
3,983

Operating Performance

Yamaha Motor
4,919

Emerging market economies continued to grow in 2010, andmotorcycle sales were solid. Overall motorcycle demand in the

Total demand
13,505643

Special Feature

23.5%, to 4,919 thousand units, far outpacing the increase in
7,236

overall demand.

5,692

Indonesia
3,326(+25%)

2,651

FY2009 Results

FY2010 Results
Overview of Operations

New models (Market launch dates)

Note: Demand figures stated herein are based on Yamaha Motor’s surveys.

Mio 125(Thai: Feb. 2010)

New model launches lead to increased
confidence in Yamaha Motor
Since launching the first commuter vehicle with automatic

CSR

transmission in Thailand in 2002, the Yamaha Motor group has

Xeon(Indonesia: May 2010)

introduced a variety of mainline automatic transmission models
as well as manual transmission models for the ASEAN market.

Lexam(Vietnam: Nov. 2009)

Corporate Information

We have established brand loyalty based on a high level ofcustomer confidence by addressing local needs through finetuned marketing and a rich product lineup, and by creatingsynergies across our solid sales networks in each market.

The Medium-Term Management Plan sets a target of increasing

Financial Section

Increasing production capacity tosupport sales growth
Vietnam
Production capacityof 1.00 million units

our unit sales in the ASEAN market to roughly six million units byfiscal 2012, from roughly four million units in 2009, in line with theremarkable growth in demand in these five markets.
During 2010, we reorganized our manufacturing structureand now have completed vehicle production capacity of 3.60
million units in Indonesia and 1.00 million units in Vietnam. We haveIndonesia
Production capacityof 3.60 million units

also begun to further increase our production capacity inIndonesia, to establish a structure that will be able to produce
4.00 million units in fiscal 2012.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201025

Promoting FI-equipped models
Faced with sharply higher fuel costs, improved fuel efficiency isa major factor in the ASEAN markets. The Yamaha Motor groupis accelerating the shift from conventional models that use
Operating Performance

carburetors to a highly fuel-efficient fuel injection system thatincorporates our proprietary technology, while at the same time
aggressively introducing models equipped with our YM-JET-FI
fuel injection system for scooters and commuter vehicles. We are

Message from the Management

also working to establish an even stronger presence in the
ASEAN market by developing
technologies that aim to improve fuel efficiency by 30%
in fiscal 2012 models, andLexam

by 50% in 2015 models

Special Featurecompared with 2008 models.

Establishing both product competitivenessand profitability in motorcycles

Overview of Operations

We are reorganizing our production structure for our five ASEAN

YM-JET-FI

Ratio of FI-equipped models

markets to produce models equipped with fuel injection (FI)systems at the same cost as conventional carburetor-equipped

80%

models, and to increase profitability through economies of scale.
This will allow us to establish a high reputation within the market
for Yamaha Motor products while at the same time securing

CSR

earnings strength as a business. Working with our core50%

suppliers, we established an FI production structure in 2010that can locally produce one million units.

Corporate Information

We are also pursuing PRO-10 (cost reduction) activities
through concurrent engineering and by making motorcycle
parts interchangeable across Asia, to establish both productcompetitiveness and profitability in our ASEAN motorcycle

Financial Section

business.

LOCAL REPORT

3%2010 Result2012 Target

2015 Target

Striving to provide even better products and services

Yamaha Motor’s commuter vehicles and other products provide the people of the ASEAN market with fulfilling
lives as an important means of everyday transportation. Because people purchase products that they needand that have value, we must continuously strive to provide customers with better products and services at a
price they will accept.
The ASEAN region continues to show remarkable growth, but competition is intensifying as othercompanies strengthen their products and promotional activities. Yamaha Motor is aiming for even higher
growth by further enhancing its customer service, qualitatively and quantitatively reinforcing its sales network,
and working to continuously strengthen the Yamaha brand.
Eiji Tada, General Manager
Asia Marketing & Sales Division, 1st Business Unit, Motorcycle Business Operations

26

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Activities in Chinese andIndian markets

China:

700,000
units
Operating Performance

India:

259,000

Yamaha
Yamah
amaha
ha M
Motor’s sales
les in China
inina and India (2010)

959

units

Message from the Managementunits((827,000
000 units
00
nits iinn 20009)

Special Feature

Accelerating launches in affordably priced
segment
Using Yamaha Motor’s brand image to increase sales
In China and India—the world’s largest and second-largest motorcycle

Overview of Operations

markets—we are aggressively introducing affordably priced models utilizing
the Yamaha brand image and market presence developed in high-quality,
high-value-added models in the ASEAN market, under our unified strategy
of “quantitative and qualitative expansion in emerging markets.” Our aim is
to increase the affordably priced models to 60% of emerging markets by

CSR

fiscal 2012.
As a first step, we launched the affordably priced YB125-Z in August
2010, and in India we introduced the SZ series as a lower-priced version of the
popular FZ series. Both models recorded strong sales, and contributed to the

Corporate Information

motorcycle business’s return to profitability in fiscal 2010. We plan to continue
to introduce very affordably priced models in both markets from 2011.

HIGHLI GHTYB125-Z

Efforts to achieve low prices
Financial Section

Underlying the launches of affordably priced models in the highly competitive
Chinese and Indian markets is the Yamaha Motor group’s proprietary partsprocurement and manufacturing system, which was established as part of thebusiness restructuring under the Medium-Term Management Plan.
As one part of the PRO-10 (cost reduction) activities to maintain“product competitiveness and profitability” under the plan, a framework is
being established across Asia for low-cost production and procurement byaccelerating parts procurement in China and India, the use of common platforms
and making motorcycle parts interchangeable.
Going forward, we plan to export these affordably priced models producedin China and India to markets in Turkey and Africa, introduce models with
common specifications in the ASEAN and Central and South American markets,and roll out affordably priced Asian models globally.

SZ-X

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201027

SPECIAL FEATURE 2

Developing andLaunching Smart
Power Technologies
Smart Power is a general term for Yamaha Motor’s
new power sources, which were primarily developedfor electric vehicles and designed to create a newparadigm of mobility. By developing and introducing
Smart Power vehicles that “provide enjoyable andsustainable mobility,” Yamaha Motor aims to becomea world leader in next-generation personal mobility.

EC-03

Motorcycle business
Launching the EC-03 electric motorcycle in Japan
In 2002, Yamaha Motor became the first manufacturer to market a production-model
electric commuter, the Passol, as a “Smart Minimal Commuter” designed to play a role innext-generation urban transportation. The EC-03 electric motorcycle for the Japan market
was announced in September 2010, marking Yamaha Motor’s return to the electricmotorcycle business. With a smooth ride from an electric motor with zero exhaust emissions,
the EC-03 sports a slim body that is distinct from conventional Class-1 category scooters.

EC-03

Expectations are high for the EC-03’s role as a new-age “Smart Minimal Commuter” fortraveling short distances in cities striving to achieve a “low-carbon society” status.
Sales target achieved in just three months(Units)
1,000

Actual result

Sales
targetOrders outpacing annual sales plan
In addition to its slim design and comfortable ride, the highly functional EC-03 can berecharged from an ordinary grounded 100-volt residential outlet. Sales have been strong,

Achieved in justthree months

with orders during the first three months after the release already reaching the initialsales target of 1,000 units within the first year from the date of launch. Going forward,
we plan to roll out the EC-03 in overseas markets including Taiwan and Europe in 2011.
Along with developing variations and a commercial model, we are making technologicaladvances in terms of batteries, motors, core control technologies and production costs,

028

Three months

One year

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

with the aim of achieving the top share in the global electric motorcycle market.

PAS electrically power assisted bicycle business
Expecting growth in the PAS electrically power assisted
bicycle business

Increase in volume of actual unit sales

cally power assisted bicycle business continues to record steady growth in Japan as well

Operating Performance

100 thousandunits

As part of our development of Smart Power, the Yamaha Motor group’s PAS electri80 thousandunits

as the European markets. We have improved our products and expanded our lineup tocomply with regulations allowing two infant passengers, and by developing products from68 thousand
units

Message from the Management

the perspective of customer convenience we are enhancing our image as a pioneering
manufacturer. During fiscal 2010, we announced new models that incorporate our proprietary S.P.E.C.3* system with a highly durable in-hub 3-speed gear mechanism for a
powerful assisted ride.
*S.P.E.C.3: Shift Position Electric Control and in-hub 3-speed gear mechanism

2008

2009

2010

Special Feature

Activities in the Japanese market, rapidly growing
European market

Overview of Operations

Accelerating sales network expansion and strengthening services tomaintain high growth rates
Sales in Japan of electrically power assisted bicycles maintained high growth in 2010,
totaling 384 thousand units. We are working to raise market recognition of the Yamaha

PAS Raffini

name, expanding our sales network and strengthening services, and conducting sales
promotions including test-ride events, with the aim of securing a 30% share of the
CSR

Japanese market. The European market is also showing a rapid 50% annual growthrate. In addition to increasing our supply of power assisted units to local bicycle
manufacturers, we are considering the introduction of completed vehicles in this market
going forward.

Corporate Information

PAS Brace-L

Yamaha Motor’s proprietary Shift Position Electric
Financial Section

Control (S.P.E.C.3) mechanism provides optimal
power assistance at each shift (gear) position fora wider range of power assistance. Yamaha Motoris using its superior Smart Power technology
in the rapidly growing segment of electricallypower assisted bicycles to raise its presence as apioneering manufacturer.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201029

Overview of Operations

Motorcycle sales rose ¥88.9 billion in 2010, or 10.9%, fromOperating Performance

Motorcycles

2009 to ¥906.0 billion, and accounted for 70.0% of net sales.

Message from the Management

Operating income grew ¥46.9 billion, to ¥42.7 billion.

% of net sales

Sales by market

Unit sales(Billion ¥)(Thousand units)(Billion ¥)

(%)

8,000

1,200

9.0

32 (3.6%)
120 (13.1%)
34 (3.8%)

Operating results
1,056 1,029

6,960
%

112 (12.4%)

Special Feature%

5,865 5,841

6,000

493

4,997
%

4,419

%

70.0%

800

608 (67.1%)

457

3,272

4,993

4,717

3,770

6,084

Overview of Operations

Europe

55

407
207
161

410
197
163

366
167
122

275
92
108

227
53
99

2006

2007

2008

2009

2010

Asia (excluding Japan)

Japan

817

906
6.0

3.3

400
63

0

0

North America

6.0

4.7

2,000

Japan

6.0

372

373

4,000

915

497

Other areas

3.0
43

34
-4

0

-0.5
-3.0

-400
2006
Sales

2007

2008

Operating income(loss)

2009

2010
Operating income
margin (%)

Creating a new market with the EC-03

Cooling consumer sentiment from the weak economy led to large sales declines in the
CSR

mini-sized category (126cc to 250cc) and the Class-1 category (50cc or less) segment,
resulting in a 2.0% decline in total demand in 2010, to 424 thousand units.
Yamaha Motor recorded solid sales in the mini-sized category with the Tricker

Corporate Informationand the XT250X, but sales of Class-2 category (51cc to 125cc)
scooters declined significantly because of new model launches bycompetitors.
As part of our Smart Power activities for “laying the
groundwork for future growth” under the Medium-Term
Management Plan, we launched the EC-03 electric
Financial Section

motorcycle in October 2010. As of the end of December
2010, wholesale sales of the EC-03 had already reached1,000 units, the sales target for the first year from thedate of launch. As a result, Yamaha Motor’s fiscal 2010
motorcycle unit sales declined 8.0% from fiscal 2009,
to 99 thousand units, and net sales declined 14.7%, to¥32.4 billion.

EC-03

30

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Looking ahead to 2011, with no indications of an improvement in consumer
Operating Performancesentiment, overall motorcycle demand in Japan is seen coming in at approximately
369 thousand units. At Yamaha Motor, we have strengthened our sales activities
using exhibitions and our retail support to dealers in all categories. We have also
taken proactive steps to bolster the overall market, including the promotion of a rental
efforts, in view of the market and economic environment, we are bracing for an 11.0%
decline in Yamaha Motor’s fiscal 2011 unit sales, to 88 thousand units.

XT1200Z Super Ténéré

EuropeSpecial Feature

Strengthening initiatives in thecommuter market

Message from the Managementbusiness and licensing programs, and working to resolve parking problems. Despite ourEurope’s economy struggled in 2010 as a result of turmoil in
the financial markets triggered by the Greek financial crisis inMay. European demand for motorcycles, which is driven by
the leisure segment, contracted 3.6% from fiscal 2009 to 2,040

Overview of Operations

thousand units.
Yamaha Motor aggressively worked to expand sales
during the year, with launches of two new models—theFZ8 and XT1200Z Super Ténéré—and model changes in
the XMAX (125/250cc scooter) series, but given the intensecompetition from other companies, unit sales for the year

CSR

declined 17.5%, to 227 thousand units, and net sales fell
22.1% from fiscal 2009, to ¥112.0 billion. Such sluggish
sales also led to an inventory buildup, from a suitablelevel of 44 thousand units at the end of fiscal 2009 to 66

Corporate Information

thousand units at the end of fiscal 2010.
An environment for weak consumption is
expected to continue in the European economy
in 2011, and motorcycle demand is forecast to
decline 2.6%, to 1,987 thousand units.

Financial Section

At Yamaha Motor, we are realigning our
production, distribution and sales structure tocreate business models for the growing segmentof commuter vehicles. As part of this process,we will continue to work to reduce inventories in
Europe, and plan to reduce production in 2011, tothe 46 thousand unit level. We will also endeavor
to increase sales of models introduced in 2010,
and are forecasting a 4.0% decline in 2011 unit
sales, to 218 thousand units, with an 8.0% decline
in net sales, to ¥103.0 billion.

FZ8

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201031

Operating Performance
Message from the Management
Special Feature
Overview of Operations

Stryker

North America Bringing inventories to appropriate levels
With a weak economy leading to a higher unemployment rate, North American
motorcycle demand in 2010 was lower than initially forecast, declining 15.0%, to497,000 vehicles.
Against this backdrop, the focus of attention at Yamaha Motor was on the
introduction of the Stryker (1300cc cruiser) in the cruiser category—the largest volume

CSR

zone in the United States. The YZ450F also recorded solid sales following a full modelchange in fiscal 2009, with enhanced performance from a new engine layout andthe adoption of fuel injection. In Canada, we aggressively emphasized various retail
and wholesale promotional campaigns, but net sales declined as a result of the yen’s
Corporate Information

appreciation, and North American unit sales in 2010 declined 42.6%, to 53 thousand
units, with a 41.3% drop in net sales, to ¥34.1 billion. At the same time, we strove to

YZ450F

bring inventories to appropriate levels and reduced inventories to 49 thousand units at
the end of 2010, from 90 thousand units at the end of
2009.

Financial Section

Although the North American market has bottomedout and latent demand exists, a continuing highunemployment rate is seen dampening purchasing
sentiment and overall demand of 494,000 units is
forecast for 2011—roughly flat with 2010.
We intend to expand our peripheral businesses(such as accessories and used-bike sales), and bolster
sales initiatives like the PRO-YAMAHA program tocultivate quality dealerships in preparation for a recovery
on this robust underlying demand. As a result, we areforecasting a 30.3% increase in North American unit
sales for 2011, to 69 thousand units, with 23.3% net
sales growth, to ¥42.0 billion.

32

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Contributing to motorcycle earnings growth

Operating Performance

Asia

Demand grew in all regions in Asia (except Japan) in 2010, for an overall increase of
10.2%, to 43,455 thousand units, driven by high growth in Indonesia and a boost in China.
Yamaha Motor’s unit sales grew in all countries, resulting in a 21.8% overall
increase, to 6,084 thousand units, and 26.9% net sales growth, to ¥607.9 billion,

Message from the Management

making a large contribution to fiscal 2010 earnings.
Economic growth, social infrastructure development and increased consumption
are expected to continue throughout the Asian region in 2011, and strong demand for
motorcycles is seen to continue, with 2.6% growth, to 44,589 thousand units.
We will strive to achieve quantitative and qualitative expansion under the MediumTerm Management Plan and are planning for a 12.4% increase in unit sales, to 6,841

Special Feature

thousand units, and a 9.4% increase in net sales, to ¥665.0 billion.

Quantitative and qualitative expansion
in three major markets

Overview of Operations

ASEAN

Indonesia is Yamaha Motor’s largest market for motorcycle sales in the ASEAN
region. In addition to an economic environment that is generating stable growth,
the country’s underdeveloped traffic infrastructure suggests the existence of solid,
untapped potential demand. During 2010, the Indonesian economy recovered at afaster pace than initially anticipated and the number of applications for credit sales,

CSR

which account for roughly 70% of total demand, recovered to the levels seen prior
to the global financial crisis. Reflecting this recovery, total motorcycle unit sales grew
27.1%, to 7,236 thousand units.

Mio Soul

Corporate Information

Yamaha Motor’s strategy is to differentiate itself throughcustomer and community satisfaction based on confidence in(Indonesia)

the Yamaha brand, primarily in the automatic transmission(AT) category, which accounts for more than 40% of total
demand. We are striving to qualitatively increase sales
without getting caught up in price competition. Fiscal 2010

Financial Section

sales were solid in all segments, led by the Jupiter Z and
Mio Soul in particular, and as a result, total unit sales rose
25.5%, to 3,326 thousand units from the previous year.
Net sales grew 35.8%, to ¥352.0 billion, contributing tototal earnings in 2010.
Given Indonesia’s stable economic environment,
motorcycle demand is expected to grow by 11.9%, to 8,100
thousand units, in 2011. Yamaha Motor has invested ¥10.0
billion to increase its local production capacity in Indonesia
to further increase sales, and we are aiming for 9.7% sales
growth, to 3,650 thousand units.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201033

Overview of Operations

Operating Performance

Thailand recorded 8% GDP growth in 2010, driven by
an increase in exports associated with the global economic
recovery. Underpinned by this strong economy, demand for
motorcycles rose 20.2%, to 1,846 thousand units.
In addition to solid customer support for our main AT model

Message from the Management

Fino, the 110cc manual transmission (MT) model Spark Nano,
introduced in fiscal 2009, recorded solid sales, leading to a 17.1%
increase in Yamaha Motor’s 2010 unit sales, to 506 thousand
units.
For 2011, 5.6% growth in total demand to 1,950 thousand

Special Featureunits is forecast. Yamaha Motor will continue to focus on the
AT category, and we are planning for 8.7% sales growth to 550

Finothousand units.

(Thailand)

Vietnam is showing rapid growth on both a stable recovery
in agricultural exports and accelerated investment from developed nations. Motorcycle

Overview of Operations

demand in 2010 grew 11.8% to 3,070 thousand units.
Yamaha Motor introduced affordably priced models including the Sirius in the
MT category where demand is solid, and two new models in the AT category where
demand is expected to increase. The models in the AT category were the 125cc Luvias
and the stylish Cuxi, as we strove to cultivate new customers, particularly among
women. Existing models like the Nouvo also performed well, and Yamaha Motor’s 2010
unit sales rose 20.7%, to 776 thousand units.
CSR

A 6.2% increase in demand is forecast in Vietnam for 2011, to 3,260 thousand
units, supported by stable economic growth. Yamaha Motor will continue to focus on
the MT category while also strengthening sales in the AT category, and we are aiming

Corporate Informationfor 16.4% net sales growth, to 903 thousand units from the previous year.

Cuxi(Vietnam)

China—Launching affordably priced motorcycles
With the implementation of new emission standards in July 2010, 2010 unit sales in the

Financial Section

Chinese motorcycle market were concentrated in models conforming to the previous
standard during the first half of the year. Given the large inventory buildup, secondhalf unit sales were sluggish, and as a result, the market contracted 7.6%, to 16,090
thousand units.
Along with accelerated production and unit sales of models conforming to newemission standards, Yamaha Motor launched the YB125-Z in August and the Future(XA100) in November as affordably priced motorcycles for the Chinese market, andaggressively carried out promotional campaigns, to achieve a future growth scenario.
As a result, Yamaha Motor’s fiscal 2010 unit sales grew 15.1%, to 700 thousand.
The changeover to products complying to the new emission standards is seen

YB125-Z(China)34

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

having a full effect in fiscal 2011, and demand in the Chinese market is expected tocontract 11.5%, to 14,240 thousand units. Focusing on the affordably priced YB125-Z
Operating Performanceand the 100cc scooter Future (XA100), we will strive to strengthen sales in rural regions,where our presence to date has been weak. Through these efforts, we are planning for2011 unit sales of 850 thousand units, a 21.4% increase from 2010.

Message from the Management

India—Adding affordably priced models to mainstay products
The Indian market grew significantly in 2010, against the backdrop of growth in personal
incomes and women taking on a more prominent role in society. Total demand,
underpinned by the scooter category, grew 30.5% to 11,270 thousand units.
At Yamaha Motor, we launched the SZ (160cc motorcycle) series, an affordably
YBR110 in the standard segment and the YZF-R15 (150cc sport) in the premium segment
recorded robust sales. Yamaha Motor’s 2010 sales on a unit sales basis rose 18.3%, toSpecial Feature

priced version of the FZ series that was introduced in 2008 and remains popular. The

SZ-X(India)259 thousand units.
Overview of Operations

Despite concerns of inflation and higher gasoline prices, solid growth is forecast
for the Indian market in 2011, with 15.4% growth to 13,000 thousand units. We intend
to introduce a model based on the SZ and will also work to strengthen exports. We areplanning for 19.7% growth, to 310,000 units.

The Brazilian motorcycle market grew 12.4% to 1,801 thousand units in 2010. Thislarger-than-anticipated growth was the result of increased domestic demand from

CSR

Latin America— Accelerating quantitative and qualitative
expansion
FZ16

Corporate Information(India)stable economic growth and increased retail consumption. Neighboring emerging
markets driven by the Brazilian economy expanded as well, and in total the Latin
American market grew 17.6%, to 3,967 thousand units.
Yamaha Motor’s efforts in Brazil focused on promoting sales in the affordably
priced segment, including the new Crypton (100cc moped) in the moped category

Financial Section

and our mainstay YBR125. Unit sales rose 17.6% to 227 thousand units. Results inneighboring countries were strong as well, including record sales in Colombia, and forthe region overall unit sales grew 28.9% to 415 thousand units.
Gradual growth is expected to continue in the region in 2011, with 2.7% growth to
1,850 thousand units forecast for Brazil and a 4.6% increase to 4,148 thousand units
for the region overall. Yamaha Motor will work to strengthen its sales channels, primarilyin Brazil, and accelerate the introduction of affordably priced models. We are aimingfor 15.4% sales growth to 262 thousand units in Brazil, and an 11.3% increase to 462
thousand units for the region as a whole.

Crypton(Brazil)

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201035

Overview of Operations

Marine product sales for 2010 rose ¥17.0 billion, or 11.3% from fiscal

Message from the Management

Operating Performance

MarineProducts% of net sales

2009 to ¥167.1 billion and accounted for 12.9% of net sales. Operating
income improved ¥25.0 billion to an operating profit of ¥0.7 billion.

Sales by market

Operating results(Billion ¥)(Billion ¥)300

33 (20.0%)

(%)

290

267

12.0
9.7

8.7

22 (13.2%)

239

200

12.9%

8.0

167

150

Special Feature

10 (5.8%)
4.0

100
34 (20.5%)

68 (40.5%)

2.5
28

23
0

0.4
1

6

0

-24
-16.2

-100
Overview of Operations

2006
Japan

North America

EuropeAsia (excluding Japan)

Other areas

Sales

2007

2009

Operating income(loss)Outboard Motor Business
CSR

2008

-20.0

2010
Operating income
margin (%)

Introduction of new products
results in increased sales

At the beginning of 2010, the previous year’s weak overall demand for outboard motors
had been expected to continue, but with a significant upward trend during the second
half of the year, demand in 2010 rose 7.5% to 670 thousand units.

Corporate Information

At Yamaha Motor, inventory adjustments were completed in North America, andOEM* sales to boat builders were solid. We also accelerated development of nextgeneration products to comply with environmental regulations and introduced three
new next-generation 4-stroke large-displacement models—the F225F, the F250D and
the F300B. As a result, North American unit sales rose 33.3% to 56 thousand units,

Financial Section

F300B

as developed market sales recovered. Emerging markets also had solid business withthe high net worth individual sectors in Brazil, Russia and Asia, and Yamaha Motor’sunit sales grew 13.3%, to 272 thousand units. Net sales rose 24.6%, to ¥102.4 billion,
contributing to the 2010 earnings recovery.
The marine leisure market is expected to remain stable going forward. Growth of
0.7% to 675 thousand units is forecast for outboard motor demand in 2011. Yamaha
Motor is planning for 4.0% unit sales growth to 283 thousand units through anenhanced product lineup from the introduction of products with superior environmental
performance. We are also strengthening our cooperation with boat builders, and haveconcluded a joint development agreement with AB Volvo Penta, the Swedish marine
engine manufacturer for the development of electronic control systems for boats
powered by outboard motors, attaining far and away the top share in the global market.
*OEM: Original equipment manufacturer

36

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Operating Performance

Personal Watercraft Business Inventory adjustments progressing
Reflecting weak economies, fiscal 2010 demand for personal watercraft declined 8.2%,
to 67 thousand units.
Yamaha Motor worked to bringinventories to levels corresponding

Message from the Management

to this weak demand, while keeping
manufacturing and sales according toplan. As a result, unit sales declined 3.8%
to 25 thousand units, and sales were
6.1% lower at ¥23.9 billion.
The marine leisure market overall is

Special Feature

seen having the strength to recover, andtotal demand in 2011 is expected to grow
1.5% to 68 thousand units. At Yamaha
Motor, we plan to proactively increase

Overview of Operations

sales of the new VXR and VXS around theworld, and are targeting 36.0% unit sales
growth to 34 thousand units. We will also
continue to keep manufacturing volumes inline with demand and plan manufacturing
to match seasonal trends, and transform

CSR

the business to one that generates highprofitability.

VXR

Commercial ﬁshing boat market
picking up

Corporate Information

Boat Business in Japan

Demand for commercial fishing boats in Japan during 2010 was strong in certain
regions because of special circumstances, but demand for pleasure-use boats andutility boats remained sluggish, and overall boat demand in Japan contracted 7.5% toFinancial Section

2,325 units.
Yamaha Motor introduced new and affordably priced models in the pleasure-use
boat market, and sales growth outpaced the increase in overall demand. Commercial
fishing boat sales were also solid, growing by more than 60%. As a result, the business’s
unit sales rose 3.8% to 716 units, while net sales declined 15.4% to ¥6.6 billion.
Although a recovery is forecast in 2011 for small-sized boats led by fishing
demand, utility and commercial fishing boats remain areas of concern, and overall
demand is expected to be roughly flat with the previous year, declining 0.9% to 2,305
units. Yamaha Motor intends to make inroads by launching strategic models in thepleasure-use boat market, and we are projecting a 5.9% increase in unit sales to 758
units in fiscal 2011.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201037

Overview of Operations

Sales of power products in 2010 grew ¥2.4 billion, or 2.4% compared

Message from the Management

Operating PerformancePower
Products% of net sales

with 2009 to ¥103.0 billion and accounted for 8.0% of net sales. The
operating loss improved by ¥22.5 billion to a loss of ¥11.3 billion.

Sales by market

Operating results(Billion ¥)(Billion ¥)11 (10.6%)
13 (12.3%)

300

(%)

11.0
266
250

12.0
8.4 2136 (6.1%)

8.0

200

8.0%
Special Feature

19 (18.7%)

103

101

100
54 (52.3%)

4.0

1.7
28

22

0

4

-34

-11

0

-10.9
-33.6

Overview of Operations

-100
2006
Japan

North America

EuropeAsia (excluding Japan)

Other areas

Sales

2007

2008

2009

Operating income(loss)-40.0
2010
Operating income
margin (%)

ATV/SSV Business U.S. inventory adjustments successful
Total demand for all-terrain vehicles (ATVs) declined 13.6% in 2010 to 522 thousand
CSR

units, due to the delayed economic recovery.
Sales in the sports category, Yamaha Motor’s area of strength, were sluggish inpart because of the weak economy, and our unit sales of ATVs declined 1.2% to 81

Corporate Information

thousand units. Unit sales, however, increased 19.0% on the success of inventory
adjustments carried out in the United States in 2009.
Sales of side-by-side vehicles (SSVs) declined 25%, to three thousand units on
sluggish retail sales. As a result, fiscal 2010 net sales in the ATV/SSV business declined

Raptor 700R

1.1% to ¥45.3 billion.
Total demand for ATVs is expected to

Financial Section

decline 1.3% in 2011 to 515 thousand units,
due to the delayed economic recovery andan uncertain exchange rate environment.
With an economic recovery continuing to lookunlikely, we expect sluggish retail sales and areplanning roughly flat ATV and SSV sales of 82
thousand units for ATVs, and three thousand
units for SSVs.

38

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Operating Performance

Snowmobile Business Growing demand inEuropean market

Total demand for snowmobiles in 2010 rose 6.0% to 124
thousand units on increased demand in Russia and the restof Europe, and despite the weak economic recovery in North

Message from the Management

America.
Although Yamaha Motor cut back production to reduce
market inventories, the market recovered and our unit salesrose 22.2% to 22 thousand units, and net sales grew 13.7% to¥15.8 billion.

Special Feature

Apex SE

Golf Car Business

Steady growth notably in Asia
Overview of Operations

Total demand for golf cars in 2010 declined 2.2% to 225 thousand units, owing to theglobal recession followed by the continued curtailment of capital expenditures and theintroduction of affordably priced products.
Yamaha Motor saw increased unit sales in Korea and Japan, where demand has
grown. As a result, unit sales grew 5.0% to 45 thousand units, while net sales declined
2.8% to ¥19.0 billion.

CSR

Generators and Other Power Products

G30 · 31 Series
Corporate Information

Accelerating realignment of production structure in China
Global demand for generators reached 9.60 million units in 2010, and is expected to
grow to 10.00 million units in 2012. Yamaha Motor’s generator sales rose 18.3% in2010 to 136 thousand units.
Yamaha Motor is developing a variety of products for markets with attractive

Financial Section

prospects as part of its “future growth scenario,” and has begun to establish an
integrated production structure for engines and generators in China in preparation forreforming its manufacturing layout.

EF1600iS

YAMAHA Motor Co., Ltd. ⎢ Annual Report 201039

Overview of Operations

Sales of other power products in 2010 rose ¥32.2 billion, or 37.4% from

Message from the Management

Operating Performance

Other
Products% of net sales

2009, to ¥118.0 billion and accounted for 9.1% of net sales. Operating
income improved ¥19.5 billion to an operating profit of ¥19.1 billion.

Sales by market

Operating results(Billion ¥)(Billion ¥)

16.2

(%)

16.0

200
14 (11.9%)
150

Special Feature

9.1%

150

12.1
145

12.0
9.3 123

21 (17.8%)
77 (65.2%)

100
4.2

50
1 (0.9%)18

14

Overview of Operations

0
2006
North America

EuropeAsia (excluding Japan)

Other areas

IM Business

8.0

86

5 (4.2%)

Japan

118

Sales

2007

5
2008

4.0
19
0
-0.4
2009 2010

Operating income

0

Operating income
margin (%)

Sales double on recovery in demand

The Intelligent Machinery (IM) business primarily manufactures and sells industrial robots
CSR

for use in a variety of industries, and surface mounters account for roughly 80% of sales.
Total 2010 demand in the surface mounter market recovered to pre-financial-crisis levels,with 145.2% growth to 14 thousand units, on increased demand for home electronics

Corporate Information

against the backdrop of increased domestic demand in China, and strength in mobile

Compact high-speed flexible
modular mounter YS24X

devices.
Yamaha Motor’s strength is in automotive-related products, which were affectedby the delayed economic recovery in Japan. However, supported
by concentrated investment in the mobile device market by
Korean manufacturers and demand from China, the YS series ofFinancial Section

next-generation modular surface mounters and the YG series for
China’s low-end market registered solid sales. As a result, unit
sales in 2010 rose 125.0% to 2,160 units, and net sales for the
IM business grew 118.0% to ¥32.9 billion, contributing to theyear’s earnings recovery.
The surface mounter market is expected to remain strong in
2011, boosted by mobile devices, FDPs and digital household
appliances, and total demand is forecast to grow 7.1% to 15
thousand units. Yamaha Motor intends to launch new products
using integrated platforms and to increase sales in China’s lowend market, and we are planning for a 6.5% increase in unit
sales to 2,300 units.

40

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Shipment volume grows on
government programs

Operating Performance

Automotive Engine BusinessYamaha Motor supplies both domestic and overseas automakers with highperformance engines that incorporate technologies we have developed in motorcycles.
We also supply domestic and overseas automakers with the Relative Absorber System

Message from the Management(REAS) automotive suspension and the Performance Damper anti-vibration damper for
automobiles.
Supported by government programs including tax reductions for “eco” vehicles,
automobile engine unit sales grew in 2010 and net sales rose 29.4% to ¥31.2 billion.

Solid sales growth

Special Feature

PAS Business

Automobile engine

Reflecting heightened interest in health and the environment,
demand in Japan for electrically power assisted bicycles rose
5.2% in 2010 to 384 thousand units.
Yamaha Motor has established a leading market position,

Overview of Operations

with continued strength in models for two infant passengers
that were introduced in 2009, following the revision ofregulations in 2008, while sales of the PAS Lithium T modelwith a highly durable battery launched in May 2010 significantly
exceeded the sales target. We have also developed the
S.P.E.C.3 system, with a highly durable in-hub 3-speed gear

CSR

mechanism for a powerful assisted ride, and a new model using
this system introduced in 2010 is recording solid sales. As aresult, our unit sales of complete PAS bicycles in Japan grew
16.3% to 93 thousand units, and the PAS business’s net sales

Corporate Informationrose 20.4% to ¥14.5 billion.

PAS Raffini

Total demand in Japan in fiscal 2011 is forecast to grow 6.8% from the previous
year, to 410 thousand units. Yamaha Motor intends to install highly durable batteries
in all models, and create a service network with cooperating stores. By strengthening
these measures from the perspective of customers, we are aiming for a 15.1% increase

Other Products

Financial Sectionin units sold in 2011 to 107 thousand units.

Withdrawal from life science business

Other businesses in this segment include unmanned industrial helicopters and

PAS Brace-Lintermediate business parts supplied to other business segments within Yamaha Motor.
Net sales rose 13.5% in 2010, to ¥39.4 billion.
In order to concentrate on core businesses, decisions were made to sell thedomestic water purifier business and to withdraw from the life science business.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201041

Overview of Operations

Operating Performance

The Yamaha Motor group aims to give people the wisdom andRacingenthusiasm to realize their dreams as a company that is constantly being
Activities looked to for the “next inspiration,” to provide people around the world

Message from the Managementwith a new sense of excitement and a fulfilling lifestyle. Yamaha Motor’sheart and soul is on display in races around the globe, as we continue tomake our presence known to the entire world.

Special Feature

2010: First ever winner of three consecutive triple
crowns at MotoGPAt MotoGP, the premier motorcycle racing world championship, we showed our
unrivaled position by becoming the first team in history to win the triple crown—Rider,

Overview of Operations

Manufacturer and Team—for three years in a row. We also demonstrated our strength
in the production model races at the WSB (World Superbike Championship), and at the
top motocross event, the MX1 Motocross World Championship.
In addition, Yamaha finished in the top tier of the road race, motocross and trial
categories of the All Japan Championship, again showing our passion for engineering,
manufacturing and marketing along with the “spirit of challenge” that is part of the

Financial Section

Corporate Information

CSR

Yamaha DNA.

42

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Operating Performance
Message from the Management
Special Feature

2011: Marking 50 years of competing in the road racing
world championship grand prixThe year 2011 will mark the 50th anniversary of the Yamaha Motor group’s participationin the road racing world championship grand prix. During our half-century of activities,
we have achieved spectacular successes including being the first team in history to

Overview of Operations

win the triple crown—Rider, Manufacturer and Team—for three consecutive years
at MotoGP, while also continuing to foster a spirit of constantly pursuing the limitsof technologies and expertise, and the possibilities they hold. This all boils down to
Yamaha Motor’s original engineering, manufacturing and marketing, and plays a majorrole in increasing corporate value.
The Yamaha Motor group aims to be a company that is constantly being looked
to for the next kando*, and during 2011 we will again display our “spirit of challenge” by
to share a sense of kando with people all around the globe.

Corporate Information

Web site commemorating 50th anniversary of WGP competition

CSR

participating in MotoGP and other motor sports events in Japan and around the world,*Kando is a Japanese word forthe simultaneous feelings ofdeep satisfaction and intense
excitement that we experience
when we encounter somethingof exceptional value.

Yamaha has created a special Web site to commemorate its 50
years of competition in the Road Racing World Championship Grand
Prix. In addition to priceless photographs and an information archive,
the site shows the spectacular history of the Grand Prix, displaying

Financial Section

details regarding the year, rider and machine. Going forward, weplan to add features including video messages from key Yamaha
team riders and recent news and information, to make this a “mustsee” site for racing fans.
http://www.yamaha-motor.co.jp/global/race/wgp-50th/

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201043

Corporate Social Responsibility

Operating Performance

Customers
Providing Value that Surpasses Customer Expectations
The Yamaha Motor group is the picture of an excellent engineering, manufacturing and marketing
enterprise with a prominent presence in the global market, and as such, the products the group offers

Message from the Management

must first and foremost deliver value and satisfaction from a customer perspective. We aim to createnext-generation modes of mobility and lifestyles that are safer and more comfortable. It is our enduring
goal to provide safe, high-quality products and services that exceed customer expectations.

Special Feature

Business Activities that Address Social Issues
At Yamaha Motor, we believe we play a significant role in

Affordability is another factor that makes this mode ofpromoting the kind of personal mobility that underpins thetransportation well-suited to local conditions and therefore arealization of a sustainable society. Part of our strategy to lay

popular choice.

Overview of Operations

the groundwork for future growth, as outlined in the Medium-

CSR

large tires and exceptional durability ideal for getting around.

Yamaha Motor actively incorporates proprietary technologies,

Term Management Plan, is to emphasize the development ofsuch as highly fuel-efficient fuel injection systems into its

next-generation environmentally friendly engines with lower fuelmotorcycles (including mopeds), and strives to fulfill its role inconsumption—while promoting the development of Smart

supporting mobility and continued economic growth in thePower (new power sources). Our efforts have yielded good

ASEAN region by providing localized products. A prime

results, exemplified by the September 2010 announcement of

example of our response to local needs (specifically thethe EC-03 electric motorcycle for the Japanese market. Thisrising number of women in the workforce) is the Mio, a moped

product, which features a plug-in charger for easy recharging

designed with the slimmer physique of women in mind. Thesefrom a home electric outlet, has won high praise from theefforts to tailor products to market requirements underscore amarket as a new form of mobility with a low-carbon footprint.

stellar reputation for reliability and an unshakable position in the

In 1993, we ventured into the electrically power assisted

ASEAN market.

Corporate Information

bicycle PAS business. This business is also in a spotlight,
drawing attention for providing energy-saving short travel-

Financial Section

distance solutions, addressing issues of particular concern toPromoting Safe Driving Appropriate to Local
Social and Traffic Environments

an aging society, and contributing to regional revitalization

The most important criterion for mobility products is safety. But

through environmentally friendly modes of transportation. We

safety is actually a two-way street, requiring us, as a manufacturer,

tackle various social issues through the pursuit of business,to seek maximum safety in the products we provide and requiringconstantly applying wisdom and a passion for excellence tousers, the people who operate our products, to operate theseproducts that enable people to fulfill their dreams. We are also

products safely. Toward this end, we hold Yamaha Riding

directing concerted efforts into our electric wheelchair businessAcademy courses all over the world with a focus on

to meet diverse customer needs.

motorcycles but also covering other products such as all-terrain
vehicles and snowmobiles to promote riding safety that reflects

Motorcycle Business Supports ASEAN Growth
In the member states of the Association of Southeast Asian
Nations (ASEAN), transport infrastructure is not being built as
fast as the rapidly growing regional economies require, leaving
many roads unpaved. These roads are prone to flooding during
the rainy season, making moped-type motorcycles with their

44

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010social, transportation and user conditions in each region.

Operating Performance

Employees
A Workforce Bursting with Creativity Promotes Shared Values and Job Satisfaction
An underlying objective within the Yamaha Motor group is to create an atmosphere in which employees andmanagement share their perspectives and brainstorming and cooperate to reach stated goals, and in the end

Message from the Management

experience together the satisfaction of a job well done. Traveling the corporate road together fosters respectand harmony between employees and management who appreciate diversity.

Diversity-Reinforced Workplace Nurtures
Creativity

Cultivating Human Resources with a Global
Perspective
As a corporate ensemble pursuing business on the world

employees and management is seen as a partnership, and it isstage, the Yamaha Motor group maintains several training

the responsibility of each company to promote an appealingly

programs designed to enhance the ability of human resources

challenging environment for self-motivated individuals.

in Japan to work overseas.

Employees and their supervisors evaluate work roles, and theSpecial FeatureWithin the Yamaha Motor group, the relationship between

We offer self-directed language courses that provide
employees with the opportunity to learn languages, such as

employee. In addition, a variety of programs have been

English, Spanish and Indonesian, that are spoken in theimplemented to support a healthy work/life balance. These

countries where the Yamaha Motor group has a presence.

programs include flexible work hours, leaves to care for children

These courses attract a growing number of participants every

or a sick or aged family member, and shortened work days.

year. To enable employees posted abroad to acquire thenecessary business skills as well as vital insight into local
culture and social mores, we are enriching our overseasthat support this effort are a rehiring program for retired employees

residents with essential personnel development training andwho wish to continue working and stable employment for theoverseas study exchange programs.

CSR

We endeavor to maintain a diversity-reinforced workplacethat fosters greater creativity among employees. Key programs

Overview of Operations

results are used to pinpoint the right career plan for eachdisabled.
Corporate Information

Business Partners
Collaborating with Suppliers Promotes Sustainable Growth
Driven by a spirit of mutual trust and mutual benefit, the Yamaha Motor group works with a variety of

Financial Section

suppliers at home and abroad and is working to realize continuous growth.

Promoting Green Procurement

Emphasizing Fairness in Business Relationships

The Yamaha Motor group maintains Green Procurement

In Japan, we observe laws and regulations, including the Act

Guidelines, formulated from a perspective of reducing

against Delay in Payment of Subcontract Proceeds, Etc. toenvironmental impact and utilizing resources as efficiently as

Subcontractors, based on Fair Trade Guidelines for the

possible. The group shares information as well as value-based

Automotive Industry, issued by the Ministry of Economy, Tradestandards with its various suppliers and encourages adherence

and Industry. The group adheres to a code of conduct andto green procurement processes.

strives to maintain business relationships built on fair practices.

In fiscal 2010, with a view to promoting CSR, we drafted
CSR Guidelines for Suppliers.

In addition, in our business continuity plan, which outlines
measures to respond to risks, such as disasters, we describe
support for suppliers.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201045

Corporate Social Responsibility

Operating Performance

The Community
Contributing to Society in the Creation of Affluent Communities
The Yamaha Motor group has made “offering new excitement and a more fulfilling life to people all over
the world” a corporate mission. As a group, we effectively utilize the products, technology, facilities andMessage from the Managementhuman resources we have under our corporate umbrella and maintain open lines of communication withall local interests to help build affluent, energetic communities.

Electrically Power Assisted Bicycles Benefit thePrefecture. The PAS is a wonderful contribution to local efforts

Community

aimed at making mobility more convenient for residents andSpecial Feature

Since 2009, Yamaha Motorcycle Sales Japan Co., Ltd., has

tourists alike.

Overview of Operations

been promoting PASCRU, a leasing system that offers PAS
electrically power assisted bicycles to public agencies andCompanywide Approach to Community Activities

private enterprises in a packaged service complete withThe Yamaha Motor and Yamaha Motor Sales Co., Ltd. support

maintenance and insurance. In recent years, local governments

the Japan Guide Dog Association through donations collectedhave actively implemented trials using this system as a way tounder the Yamaha Nice Ride charity program. Another community-

create destinations that attract visitors by maximizing

oriented program is the 40,000 People’s V Campaign, which

respective tourism resources.

utilizes the corporate intranet to share information on volunteer

Corporate Information

CSR

In October 2009, Atami, a city in Shizuoka Prefecture that

activities to employees throughout the group. The program,is one of Japan’s top tourist destinations, launched a

introduced in 2004, was initiated to instill greater awareness ofcommunity project that encourages visitors to travel between

volunteering and encourage group employees to participate inurban areas and sightseeing spots, particularly those scatteredvolunteer activities. The number of people who volunteered

along the coast, by PAS electrically power assisted bicycles

their time in 2010 hit 42,834, marking the third consecutive

and boat. In 2010, similar projects were initiated in Fuji-

year that we achieved our goal of at least 40,000 employees

Kawaguchiko, Yamanashi Prefecture, and Mino, Gifu

getting involved.

The Environment
Coexisting with the Environment to Achieve Sustainable Development

Financial Section

Through its personal mobility segment, the core business hinging on motorcycles and electrically power
assisted bicycles, the Yamaha Motor group seeks to contribute to the realization of a society with a lowcarbon footprint. We seek a harmonious balance between the environment and all our business pursuitsand earnestly promote activities that underpin a sustainable society.

Efforts to Reduce CO2 Emissions
To the Yamaha Motor group, greenhouse gas emissions areof-use disposal. In addition, we take an active role in realizing

the most critical environmental issue for the corporate world.

solid results from group companies. Toward this end, we seek

As a maker of transportation machines, most notably,

to verify the progress achieved by subsidiaries at home andmotorcycles, Yamaha Motor has made the reduction of

abroad in their pursuit of lower energy consumption and offer

greenhouse gases a priority and is directing efforts to curb

support to those companies facing difficulties in this task.

emissions in all aspects of operations, particularly the lifecycle

46

of products, from development to manufacturing, use and end-

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Steps to Cut the Use of Substances withOperating Performance

Negative Environmental Impact

Initiatives to Protect Biodiversity
The Yamaha Motor group is dedicated to protecting the naturalenvironment and sustaining biodiversity. In Kikugawa, Shizuoka

the Yamaha Motor group operates, reports are submitted toPrefecture, where we intend to build a test course, we havethe relevant authorities regarding the release of chemicalalready completed an environmental assessment of the site

substances that are detrimental to human health or theand surrounding area. Based on the findings of this in-depth

environment as well as the chemical content of wasteassessment, we prepared a plan that will help to protect thegenerated at group facilities.

environment and the creatures that inhabit the area. Officiallyreferred to as the “Natural Environment Conservation Agreement,”
this plan was submitted to the Shizuoka Prefecture Environmental

Pollutant Release and Transfer Register system are volatile

Protection Division’s Department of Community Affairs fororganic compounds (VOCs). Nearly all of these VOCs areapproval. It will guide us in the construction of a facility thatgenerated during painting processes. We will continue working

takes the surrounding environment well into consideration.

Special Feature

More than 99% of the substances released from theCompany’s facilities and subject to reporting under the

Message from the Management

In compliance with prevailing regulations in each country where

to reduce our environmental impact through wider use of lowVOC paints, improved painting efficiency and less waste.

Efforts to Foster an Eco-Minded Perspective
Overview of Operations

The Yamaha Motor group subscribes to the belief that cooperation

Resource- and Energy-Saving Activities

among all stakeholders is essential for business activities to

The 3Rs—reduce, reuse, recycle—form the foundation of acoexist in harmony with the environment. Everyone must

recycling-oriented society, and the need to embrace the 3Rs at

recognize the importance of communication. We promoteeach stage of the lifecycle of products, from development tovarious in-house activities, such as eco-commuting*, and strive

production and use and end-of-use disposal, is continuallyto spur greater discussion about environmental issues throughattracting greater attention.

our CSR Report and other information sources.
CSR

In fiscal 2010, the Yamaha Motor group pursued two goals:*A system that encourages employees to take an environment-

product life. Toward this end, we heightened efforts to improvefriendly way to work—whether it be on foot, by bicycle, public

our 3R status by trimming the number of parts in our products

transit or electric scooter

Corporate Information

100% recycling for products and factories, and ensuring longand decreasing size, emphasizing greater use of parts madeout of reusable materials and expanding the application of asystem that collects data on parts recyclability.

Financial Section

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201047

Corporate Information

Corporate Governance

Message from the Management

Operating Performance

Basic Corporate Governance Policies
Yamaha Motor Co., Ltd. (the “Company”) recognizes thatheld by the shareholders present at the General Meeting ofcorporate governance is an important tool to ensure disciplined

Shareholders. These voting shareholders must hold shares

management and maximize long-term corporate value. Based

representing, in the aggregate, not less than one-third (1/3) ofon this realization, the Company has been striving to speed up

the voting rights of all shareholders entitled to exercise themanagement decision-making; make the accountability systemrights and not using cumulative votes.

Special Featureclearer; develop a transparent system of Director selection andremuneration; and establish an internal control system.
Because it is one of its most important management issues,

as Executive Officers. A Management Committee comprising

the Company also plans to implement other measures to

Executive Officers with specific posts has been formed tostrengthen and solidify corporate governance. At the same

deliberate matters of business execution, speeding up thetime, the Company is enhancing Investor Relations services, inCompany’s decision-making process.

and investors.

Overview of Operations

As of March 24, 2011, there were twenty-four (24)
Executive Officers, and eight (8) Directors concurrently serving

order to build on the relationship of trust with its shareholders

CSR

Directors shall be adopted by a majority of the voting rights

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

Summary of Corporate Governance and Reasons

Executive Personnel Committee

for Adopting the System

In August 2001, the Company established the Executive

1) Reasons for adopting current system

Personnel Committee as an advisory body of the Board of

The Company maintains a corporate auditor system, and most

Directors, in order to improve transparency in nominatingof the Company’s Directors are full-time Directors withcandidates for Director and Executive Officer, and to determine

considerable knowledge of business matters. The Company

the remuneration for these officers. The Committee comprises

draws on the supervisory function of outside executives

several full-time Directors and several Outside Directors of thethrough the appointment of two (2) Outside Auditors and threeCompany, in addition to the President and Chief Executive(3) Outside Directors. The Company also emphasizes efforts to

Officer. It deliberates on candidates for Director and Executive

strengthen corporate governance, underpinned by an Executive

Officer, the remuneration and bonus system, and the overall

Officer system, the Executive Personnel Committee and an

direction of governance.

Corporate Informationinternal auditing system.

Financial Section

Corporate Auditors and the Board of Corporate Auditors
2) Summary of current system

As of March 24, 2011, the number of Corporate Auditors stood

Directors and the Board of Directors and Executive Officers

at four (4), of whom two (2) are Outside Corporate Auditors.

The Company introduced an Executive Officer system toCorporate Auditors attend Board of Directors, Management

expedite business execution. It then strengthened management

Committee and other important meetings, in addition tosupervision by clarifying the respective roles of Executive Officers

executing audits, receiving business execution reports fromand the Board of Directors. Executive Officers are responsible

Directors, perusing important documents in the decision-for “business execution” itself, while the Board of Directors ismaking process, and conducting audits at the Company’s

charged with “approving the basic policies of the Yamaha

subsidiaries.

Motor group and supervising the group’s business execution.”

In support of these audit services performed by Corporate

The Company’s Articles of Incorporation stipulate that the

Auditors, the Company has established the Corporate Auditors’

number of Directors shall not be more than fifteen (15). As of

Office, with staff exclusively dedicated to assisting auditors.

March 24, 2011, there were eleven (11) Directors, three (3) ofwhom are Outside Directors. The Board of Directors will inInternal auditing

principle meet once every month, and whenever else it may be

The Integrated Auditing Division established an Internal Control

necessary.

Auditing Division (consisting of twenty-nine (29) staff members

The Articles also stipulate that resolutions for the election of48

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

as of March 24, 2011) under the direct control of the President

Auditors, including Outside Corporate Auditors, receive anannual audit plans, the appropriateness, reasonableness, andauditor’s report, in accordance with prevailing laws, and review

efficiency of business execution at the Company and eachthe fairness of the report. Both sides pursue communicationgroup company, and submits evaluations and makes proposals.

through the exchange of information and opinions wheneverOperating Performanceand Chief Executive Officer. The Division audits, based onnecessary. In their association with the Internal Auditing

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

Message from the Management

Division, Corporate Auditors, including Outside Corporate
Auditors, seek to improve the effectiveness and efficiency ofauditors’ audits through access to internal audit plans andreports on the results of audits.

Outside Directors assess the current status of the group and

The internal control division offers reports, when necessary,to the Internal Auditing Division, Corporate Auditors and theaudit reports from the Integrated Auditing Division. Opinions

Accounting Auditor on the status of internal control measures,are voiced at Board of Directors’ meetings when necessary.

specifically their establishment and application.

Special Feature

identify issues of interest through regular receipt of internal

In their association with the Accounting Auditor, Corporate

Yamaha Motor’s Corporate Governance System and Internal Control System (As of March 24, 2011)
Overview of Operations

General Meeting of Shareholders
Appointment/
Dismissal

Appointment/
Dismissal

Seeking advice

Board of Directors
Makingrecommendations

11 Directors(including 3 Outside Directors)

Audit

Corporate Auditors
Board of Corporate Auditors Agreement to appointments
4 Corporate Auditors(including 2 Outside Auditors)

Seeking advice
Makingrecommendations

Management Committee

Report

Audit

Reporting businessexecution situations

External Auditor

Corporate Auditor’s Ofﬁce
Accounting audit

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

Making recommendations(Examination of important
issues, etc.)

Seeking advice

Corporate Information

Business
Execution

Judgment of accounting audit authenticity

CSR

Executive Personnel
Committee
Appointment/
Dismissal
Supervision

Appointment/
Dismissal

ReportInstruction

Risk Management andCompliance Committee

Instruction

ReportFinancial Section

Instruction

Integrated Auditing
Division

ReportLogistics and Security
Trade Division of Corporate
Planning & Finance Section

Internal audit

Business sectors, Functional sectors, Corporate sectors, Subsidiaries

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201049

Corporate Information

Message from the Management

Operating Performance

Corporate GovernanceOutside Directors and Outside Corporate

The Company has three (3) Outside Directors and two (2)Auditors

Outside Corporate Auditors. These executives offer advice and1) Function and role of Outside Directors and Outsidesupervision from an independent and objective perspective

Corporate Auditors in achieving proper corporate

regarding management policies and strategies and decisions

governanceon executive personnel and their remuneration.

2) Appointment of Outside Directors and Outside Corporate Auditors

Special Feature

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.

Overview of Operations

Outside Directors

Corporate Information

CSR

Outside Corporate Auditors

3) Vested Interests of the Outside Directors and Outside
Corporate Auditors at Yamaha Motor Co., Ltd.
Outside Director Mitsuru Umemura is President and

Financial Section

Representative Director of Yamaha Corporation, which holds

Paragraph 1 of Article 423 of the Company Law) for damages.
The upper limit of liability for damages in the agreements is theamount as specified in the Law.
The Company limits liabilities for damages charged to the

12.1% of the Company’s shares, as of December 31, 2010.

Outside Directors and the Outside Corporate Auditors only

The Company has a trade relationship with this company,

when they acted with good will and the liability did not arise

buying and selling such items as products and merchandise.

because they committed serious negligence in executing

Outside Directors Yuko Kawamoto and Masamitsu Sakurai

their duties.

and Outside Corporate Auditors Norihiko Shimizu and Tetsuo
Kawawa have no special interests in the Company other thanRemuneration and Other Compensation for

Company shareholdings.

Directors and Corporate Auditors
1) Policies on determining the amounts of remuneration

Overview of Agreements that Limit Liabilities for
Damages50or the calculation method thereof
The Company’s Directors’ Remuneration Plan comprises basic

The Company has entered into agreements with Outsidecompensation (monthly salary) in a fixed amount, Directors’

Directors and Outside Corporate Auditors, in accordance withbonuses, reflecting the short-term performance of thethe provisions of Paragraph 1 of Article 427 of the Company

Company overall, compensation linked to each Director’sLaw, which limit these executive’s liabilities (as specified inindividual performance, a stock compensation plan reflecting

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

the medium- to long-term performance of the Company

Retirement benefits for Directors were abolished at theconclusion of the 70th Ordinary General Meeting ofstock options are integrated into a stock compensation plan from

Shareholders held on March 29, 2005. However, retirement

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

benefits for Directors during their terms in office up to that

The stock compensation plan allows Directors to acquire

Operating Performanceoverall, and share warrants offered as stock options. Note thatdate will be paid when each Director resigns, in accordancewith the resolution for payment approved at the 73rd Ordinary

the Company’s Director Shareholding Association, and toGeneral Meeting of Shareholders held on March 26, 2008.

Message from the Managementa certain number of the Company’s shares monthly throughhold the shares while in office, thus further pegging Director
remuneration to shareholder value. However, the performance-2) Directors’ remuneration

based remuneration system and stock compensation plan do

Remuneration and other compensation for the Company’s

not apply to compensation for Outside Directors andDirectors and Corporate Auditors in fiscal 2010 are as follows.

Corporate Auditors.
Special Feature(Millions of yen)Compensation linked to performance
Classiﬁcation

Basic
compensation

Compensation linked toeach Director’s individual
performanceStockcompensation
plan

Total

Directors (15)

188

—

—

48

236

Outside Directors (4)

(29)

*5

*5

*5

(29)

Corporate Auditors (5)

70

*5

*5

*5

70

Outside Corporate Auditors (3)

(22)

*5

*5

*5

(22)

Total

258

—

—

48

306

Overview of Operations

Directors’
bonusesof the Company Law, the Company may, by a resolution of

Auditor received more than ¥100 million in aggregate

the Board of Directors, exempt its Directors (including former

remuneration and other compensation.

Directors) and Corporate Auditors (including former Corporate

Corporate Information

3) No names are listed because no Director or Corporate

CSR

Notes 1 The numbers above include amounts for four Directors who retired, effective from the closing of the 75th Ordinary General Meeting of Shareholders held on March 25, 2010.
2 In addition to the remuneration presented above, ¥38 million—equivalent to employee salaries—was paid to three Directors concurrently serving as employees.
3 The Company did not pay Directors’ bonuses or compensation linked to individual performance because of a cut in remuneration reﬂecting unfavorable results in the ﬁscal year under review.
4 Remuneration related to stock options is included in the stock compensation plan.
*5 No related items.

Auditors) from liabilities for damages arising from negligenceof their duties, within the limits prescribed by laws andof Shareholders that Can Be Adopted at theBoard of Directors’ Meeting

ordinances. This is to ensure that Directors and Corporate

Financial Section

Matters to Be Resolved at the General Meeting

Auditors can successfully fulfill their expected roles.

1. The Company’s Articles of Incorporation stipulate that theCompany may, by a resolution of the Board of Directors,

3. The Company’s Articles of Incorporation stipulate that theacquire its own shares, in accordance with the provisions ofCompany may, by a resolution of the Board of Directors,

Paragraph 2 of Article 165 of the Company Law. This is to

pay interim dividends, with June 30 of each year designatedensure that the Company can acquire its own sharesas the record date, in accordance with the provisions ofthrough market transactions or other methods andParagraph 5 of Article 454 of the Company Law. This allows

implement a flexible capital policy response to changes in

the Company flexibility in returning profits to shareholders.

the management environment.

Special Resolution Requirement for General
2. The Company’s Articles of Incorporation stipulate that inaccordance with the provisions of Paragraph 1 of Article 426

Meeting of Shareholders
The Company has stipulated a special resolution requirement

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201051

Corporate Information

Corporate GovernanceOperating Performanceat General Meeting of Shareholders in the Articles ofMessage from the Management

Incorporation, in accordance with the provision of Paragraph 2

Basic Policy Regarding the Internal Control
System and the State of Its Developmentof Article 309 of the Company Law, as follows: The resolution

The Company, in accordance with the Company Law, passed

shall be authorized by a two-thirds (2/3) majority of the voting

a resolution at a Board of Directors meeting regarding

rights held by the holders of shares present at the Generaldevelopment of a system to ensure the conduct of its businessMeeting of Shareholders. These voting shareholders must holdis appropriate. The Company considers risk management andshares representing, in the aggregate, not less than one-third

compliance its most important issues, and is therefore(1/3) of the voting rights of all shareholders entitled to exercise

continuing to develop the internal control system.

the rights.
This relaxes the number of required votes for special
resolutions at any General Meeting of Shareholders, enablingSpecial Feature

shareholder meetings to progress smoothly.

1) Systems to ensure Director compliance with laws,
regulations and the Company’s Articles of Incorporation
1. The Board of Directors shall supervise Directors in theexecution of their responsibilities, to ensure that the

Improving Investor Relations (IR)Overview of Operations

The Company has been aggressively pursuing IR activities

Directors exercise the duty of care and duty of loyalty to thestandard of good administrators. The Board is also charged

worldwide, designed to ensure accountability by providing

with ensuring that all Directors’ activities are lawful.

shareholders and investors with appropriate, accurate and2. Corporate Auditors, in accordance with the criteria andtimely information regarding the Company’s management

methodology established by the Board of Corporate

performance and business operations. They include quarterly

Auditors, shall audit the performance of the Directors’ duties.

financial results briefings, an “IR road show” for overseas
investors, efforts to improve information disclosure on the IR
homepage, and interviews in response to requests from

CSR

analysts and media.

3. The Company shall maintain a robust posture against antisocial
forces that threaten the order and safety of civil society. It
shall reinforce this commitment in its Code of Ethics.
4. The Company shall form such organizations and develop
such rules as necessary to ensure that the Company and its

State of Audit
The Company has designated Ernst & Young ShinNihon LLC

subsidiaries maintain appropriate financial information, andprepare and release reliable financial statements.

Corporate Information

as the independent auditing company with review
responsibilities for Company audits. Certified Public Accountants
who engaged in the certification of audit are as follows.
Kazuhiro Fujita

concerning the performance of Directors’ duties
1. Documents and other forms of information storage that

Designated Limited Liability and Engagement Partner

detail the execution of duties by Directors are properly

Shinji Tamiya

produced, stored and managed through the establishment

Designated Limited Liability and Engagement Partner

Financial Section

2) Disposition of documentation and other information

Masahiko Tsukahara
Designated Limited Liability and Engagement Partner

and application of required in-house rules.
2. The Company ensures correct handling of classified
information, including the content of documents and otherforms of information storage that detail the execution of

The number of continuous years the Certified Public
Accountants have served the Company is omitted because it isunder seven (7) years for all of them.
Ernst & Young ShinNihon LLC has introduced a voluntary
system for rotating engagement partners in its employ so that

duties by Directors, through the establishment andapplication of required in-house rules.
3. The Company has the necessary structures and internal
rules in place to facilitate timely and accurate disclosure ofimportant corporate information.

none exceeds a certain number of years in continuous service.
Support staff for the audit includes six (6) certified public
accountants and twenty-four (24) other assistants.

3) Rules relating to risk control against loss
1. A Risk Management and Compliance Committee shall beestablished to formulate and promote measures for
integrated risk control.

52

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

2. Control of each serious risk factor shall be assigned to a
for which it is responsible.
3. The necessary in-house rules are in place and are carefully

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

departmental risk management activities.

subsidiaries maintain appropriate financial information, andMessage from the Management

observed to ensure integrated control of individual
4. If a serious crisis arises, an Emergency Countermeasures

Operating Performance

specific section, which shall work to mitigate the risk factor

prepare and release reliable financial statements.

Headquarters shall be established as provided in the
Emergency Response Manual, with the President and Chief
Executive Officer as its head, in order to minimize damage
and negative impact from the event.

6) 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,

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

internal policies shall be established, defining the controlling
sectors in charge of each subsidiary, responsibilities, authority,
management methods of subsidiaries, and other rules.

the system for transferring authority between them, shall beCompany and its subsidiaries, an internal auditing sector

better defined by strengthening the Board of Directors

shall be established under the direct control of the President

This will allow these officers to execute their responsibilities
more efficiently.
2. Resolutions to be proposed at the Board of Directors’Meetings shall first be subject to deliberation by theensure they are appropriate and meet procedural criteria forsubsequent deliberation by the Board of Directors.
3. After the Medium-Term Management Plan and the budget
systems such as “management by objectives” shall beestablished to achieve the plan’s goals and targets.

Directors and a Corporate Auditor; overseas subsidiaries
shall design their organizations in accordance with local law.
4. At least one Director of each subsidiary shall concurrently
serve as a Director, Executive Officer or employee of anothercompany in the group.
5. The section with oversight for financial information offers
guidance and training to subsidiaries to ensure that they
Corporate Information

for the fiscal year are formulated, management control

and Chief Executive Officer.
3. Each Japanese subsidiary, in principle, shall have a Board of

CSRManagement Committee and other relevant committees to

Overview of Operations

President and Chief Executive Officer and sector heads, and

2. In order to audit the appropriateness of operations of theRules, Decision-making Rules and other important rules.

Special Feature4) Systems to ensure efficient execution of Directors’

handle financial information appropriately.
6. The section with oversight for risk management provides
subsidiaries with guidance and training on risk management
practices.

5) Systems to ensure employee compliance with laws,

subsidiaries with guidance and education on compliance.

Financial Section

regulations and the Company’s Articles of

7. The section supervising compliance shall provide

Incorporation
1. A Risk Management and Compliance Committee shall be7) Employee to assist Corporate Auditors

established to deliberate and offer opinions concerning

A Corporate Auditors’ Office shall be established with a full-timecompliance measures.

employee dedicated to assisting the Corporate Auditors in the

2. The Company shall enhance its Code of Ethics, and provide

execution of their duties.

ethics and compliance training appropriate to each positionin the Company.
3. An internal reporting system shall be established to directly
inform top executive management concerning any unlawful8) Employee assisting Corporate Auditors independence
from Directors
1. Any dismissal or personnel changes concerning theact, or the possibility of illegal or improper activity that could

employee assisting Corporate Auditors in the execution ofdamage trust and confidence in the Company.

their duties shall be approved by the Board of Corporate
Auditors in advance.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201053

Corporate Information

Corporate GovernanceOperating Performance

2. No employee assisting Corporate Auditors in the executionof their duties shall concurrently hold a post involving other

5. Incidents that could cause the Company considerable
damagebusiness 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 the

Corporate Auditors
1. The Representative Directors shall meet with the Corporate

employee.

Message from the Management10) Other systems to ensure effective auditing by

Auditors periodically to exchange opinions.
9) Rules concerning Directors and employees reportingto the Board of Corporate Auditors

bodies including the Management Committee, the Risk

Directors and employees shall report on the following matters

Management and Compliance Committee, and theto the Board of Corporate Auditors periodically, or, when

Expanded Executive Committee.

Special Featurenecessary, at its request.

3. The internal audit section shall explain its internal audit plan

1. Establishment and operation of internal control systems, andrelated subjects

any other meetings that the Board of Corporate Auditors

sectionmay specify, and Decision-making Forms shall be made3. Operation of the internal reporting system, and receipt of

Overview of Operations

to Corporate Auditors in advance.
4. The minutes of the Management Committee meetings and2. Results of internal audits conducted by the internal audit

available for Corporate Auditors’ perusal.

reports

5. Auditing assistance from outside experts shall be secured

4. Director malpractice and/or acts conducted in violation of
the law or the Company’s Articles of Incorporation

when deemed necessary by the Board of Corporate
Auditors.

2) Companies, number of shares, balance sheet amounts

Equity Holdings

and purpose of holding for equity holdings that are not1) Total number of companies and amounts on the

CSR

2. Corporate Auditors shall attend important meetings ofbalance sheet for equity holdings that are not held forfor pure investment

the purpose of pure investment
Corporate Information

65 companies¥17,172 million
Number ofshares(shares)

Balance sheet
amounts(Millions of yen)

10,326,701

10,409To perpetuate a business relationship as companies utilizing a common brandToyota 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 with which theCompany has transactions

825,706618

To maintain a stable business relationship as a ﬁnancial institution with which theCompany has transactions

6,457,395542

To maintain a stable business relationship

Stanley Electric Co., Ltd.

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 with which theCompany has transactions

Ahresty Corporation

134,722116

To maintain a stable business relationship

Companies

Financial Section

Yamaha Corporation

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

3) Pure investment equity holdings
No related items.

54

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Purpose ofholding

Takeover Defense Measures Against Attempts of

3. The Corporate Value Committee is required to issue an
Operating Performance

Advisory Resolution if a Takeover Proposal satisfies all of theMass Acquisition of the Company’s Sharesrequirements 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 Study

Proposal does not satisfy some of the requirements, in cases

Group of the Ministry of Economy, Trade and Industry and dated

where it is found reasonable in light of the protection andJune 30, 2008, and other considerations. The following were theincrease of the Company’s corporate value and thepoints reviewed to further protect the interests of the shareholders

shareholders’ common interests, an Advisory Resolution shallsuch as by securing the swift operation of the Plan. As part of thebe issued.

Message from the Management

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

Plan, the Corporate Value Committee is composed of four
Outside Directors and Outside Corporate Auditors whose

4. By withdrawing reference to “interests of stakeholders” and“fundamental value” in the judgment guidelines for ascertaining

operation of the Plan.

whether or not to issue an Advisory Resolution for the Takeover

Special Feature

independence is secured, and arbitrariness is excluded from the

Proposal, and other measures, the amended provisions wereset forth to prevent a broad interpretation of what interestsof the period for the Company to respond to the Takeover

should be protected, rather than determining whether the

Proposal beyond a reasonable time period, in addition to clearlyTakeover Proposal serves to protect and increase thespecifying the provisions that enable the Company to request

Company’s corporate value and the shareholders’ common

to the party making the Takeover Proposal the provision ofinterests, by referring to interests of stakeholders other thaninformation, the maximum limit of the Information Provision

shareholders.

Overview of Operations

1. To swiftly operate the Plan and avoid unnecessary prolonging

Request Period was basically set at 60 business days
calculated from the day the Board of Directors made the first

5. Provisions clearly specifying that when an Advisory Resolution

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

by the Corporate Value Committee shall start upon theunless there are no special grounds to rule that adopting such

expiration of the Information Provision Request Period even ina Confirmation Resolution obviously violates the Director’s dutycases where necessary information has not been adequatelyof care, were set forth.

Corporate Information

has been issued by the Corporate Value Committee, the Board

CSR

information provision request to the proposer and it was madeprovided.
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 not bemade” to a Specific Acquirer and Related Parties as the priceof forcible acquisition of stock acquisition rights, were set forth.

Financial Section

extended without reasonable cause, were set forth.

Please refer to the following URL for more information.
http://www.yamaha-motor.co.jp/global/news/2010/0212/pdf/prevent.pdf

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201055

Corporate Information

Directors, Corporate Auditors and Executive Officers
As of March 24, 2011

President and Representative Director

Representative Director

Hiroyuki Yanagi

Takaaki Kimura

Director

Director

Director

Director

Director

Toyoo Ohtsubo

Yoshiteru Takahashi

Hiroyuki Suzuki

Kozo Shinozaki

Nobuya Hideshima

Director

Director

Director

Director

Masahiro Takizawa

Yuko Kawamoto*

Masamitsu Sakurai*

Mitsuru Umemura*

Shigeki Hirasawa

Norihiko Shimizu**

Financial Section

Corporate Information

CSR

Overview of Operations

Special Feature

Message from the Management

Operating Performance

Board of Directors*Outside Director

Corporate Auditors
Yutaka Kume**Outside Corporate Auditor

56

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Tetsuo Kawawa**

Executive Officers
Operating Performance

President andChief Executive Officer
Hiroyuki Yanagi

Managing Executive Officer

Toyoo Ohtsubo

Yoshiteru Takahashi

Chief General Manager of Marine
Business Operations, Chief General
Manager in charge of Product
Assurance & Safety Promotion
Center, and Chief General Manager incharge of Automotive Business Unit

Chief General Manager of Technology
CenterChief General Manager of Motorcycle
Business Operations, and Chief General
Manager in charge of Overseas Market
Development Operation 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 in chargeof Parts Business Unit

Chief General Manager of Business
Development Operations

Senior Executive Officer
Yoshiaki Hashimoto

Senior Executive Officer
Kunihiko Miwa

Senior Executive Officer

Senior General Manager of Human
Resources & General Affairs Section, and Chief
General Manager in charge of Business
Development Managing Unit

Senior General Manager of Engineering
Section, Motorcycle Business Operations

Chief General Manager of Manufacturing Center

Executive Officer
Nobuaki Shiraishi

Executive Officer
Tadakazu Ishibashi

Executive Officer

Executive Officer

Souichi Sasagawa

Hajime Yamaji

Executive General Manager of Recreational
Vehicle Business Unit, Motorcycle Business
Operations

Executive General Manager of Product Assurance& Safety Promotion Center, General Manager of
Safety Promotion & Traffic System Division,
Product Assurance & Safety Promotion Center,and Executive General Manager of Business
Development Managing Unit

President of Yamaha Motor Powered Products
Co., Ltd.

President of Yamaha Motor Europe N. V.

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Toshizumi Kato

Hiroshi Yoshii

Takahiko Goan

Masato Adachi

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

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

Yoichiro Kojima

Tsuneji Suzuki

Ryouichi Sumioka

Executive General Manager of Smart Power
Vehicle Business Unit, Business Development
Operations, and General Manager of PAS
Development Division, Smart Power Vehicle
Business Unit, Business Development
Operations

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

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

Executive General Manager of 1st Business
Unit, Motorcycle Business Operations

Special FeatureManaging Executive Officer

Message from the Management

Senior Managing Executive
Officer
Takaaki Kimura

Katsuaki Watanabe
Overview of Operations
CSR
Corporate Information
Financial Section

Executive Officer
Hiroaki Fujita
Executive General Manager of IM Business Unit,
Business Development Operations and General
Manager of Quality Assurance Division, IM Business
Unit, Business Development Operations and President
and Reppresentative Director of i-Pulse Co., Ltd.”*Abbreviations:
PAS: Electrically Power Assisted Bicycle
IM: Intelligent Machinery

YAMAHA Motor Co., Ltd. ⎢ Annual Report 201057

Corporate Information

Organization
Yamaha Motor Co., Ltd., as of January 1, 2011

Integrated Auditing Division

Operating Performance

General Meeting of Shareholders
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

Message from the Management

President & CEO*

Legal & Intellectual Property Division

Management Committee

Public Relations & Advertising Division

Risk Management and Compliance Committee

Tokyo Ofﬁce
Corporate Planning & Finance Section
Corporate Planning Division
Finance & Accounting Division
Business Management Division

Special Feature

Logistics and Security Trade Division
Process & IT* Division
CGM*

Product Assurance & Safety Promotion Center

Technology Center
Research & Development Section
Overview of Operations

Manufacturing Technology Section
Technology Infrastructure Section
Manufacturing Center
Manufacturing Planning Section
Body Manufacturing Section
Engine Manufacturing Section
Procurement Center

CSR

Procurement Section
Cost Innovation Section
Motorcycle Business Operations
1st Business Unit

Corporate Information

2nd Business Unit
Recreational Vehicle Business Unit
Product Planning Section
Engineering Section
Quality Assurance Section
Marine Business Operations

Financial Section

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
IM* Business Unit

CGM: Chief General Manager

Smart Power Vehicle Business Unit
IT: Information Technology

Unmanned Aerial Vehicle Business Development Section

IM: Intelligent Machinery

Pool Business Development Section
CGM*

58

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Business Development Managing Unit

Risk Factors

Japan and exported as completed products. Therefore,

the potential to significantly affect investor judgments about thefluctuations in the exchange rates of the Japanese yen againstgroup. These are discussed below. Forward-looking

major currencies, such as the U.S. dollar and the euro,

statements in this section are based on the information

significantly impact not only the group’s sales, but also profits

available to the group as of March 25, 2011.

and other results. Generally, the appreciation of the yen against

Operating Performance

The Yamaha Motor group faces a variety of risks which have

Message from the Management

other currencies has a negative impact, while the yen’s

Risks Related to Business Operations

depreciation positively affects the group’s businessperformance. Although the group uses hedging instruments in

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

an effort to minimize the negative effects of the Japanese yen’s

hedging policies in its business plans, and takes hedging

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

measures in its Medium-Term Management Plan and budgets.

currencies, dramatic exchange rate fluctuations may impact

The group also closely monitors conditions and developments,

planned procurement, production and marketing activities.

and promptly responds to changes. Nevertheless, if risks

Furthermore, by utilizing hedging instruments, the group

emerge that exceed the scope for which means of control havepotentially loses profits that would result from the exchange

been prepared, the group’s business results and financial

rates moving in the direction opposite the hedge forecast.

standing could be adversely impacted.

The group’s business results and financial standing are statedSpecial Feature

For risks discussed below, to which our business is normallytranslating local-currency-denominated business results of the

The group conducts businesses in nations and regions around

Company’s overseas subsidiaries into yen. Thus, fluctuations

the globe, including Japan, North America, Europe and Asia. In

in the exchange rates of the yen against these currencies maythese markets, purchasing our products may not be essential

have a significant impact on their results, and, in turn, theor imperative for consumers. If demand in these markets wereCompany’s consolidated financial statements.

Overview of Operations

based on the consolidated financial statements, prepared byEconomic Conditions

to shrink more than it has already due to such developments
Business Operations in Overseas Markets

rising interest rates to curb inflation in emerging markets, theThe group does business in many nations and regions aroundgroup’s business development may be negatively impacted.

the globe. On a consolidated basis, the ratio of overseas sales

CSR

as financial instability in countries bordering the euro zone andto net sales for the fiscal year ended December 31, 2010 stood

The group is exposed to intense competition in many of thesales in developed nations make the group increasingly

markets in which it does business, and such competition may

dependent on sales and profits in Asian and other emerging

prevent the group from advantageous product pricing. Intense

markets. In the more strategically important of these markets,

market competition increases pressure on group profits, andthe group may forecast growth in demand or anticipate

this profit squeeze can become especially pronounced whendevelopments that will strongly impact neighboring nations andmarket demand slackens. Although the group must continue

regions. In these situations, the group may need to make large

introducing attractive new products in order to maintain or gain

strategic investments long before any profit can be expected. If

an advantage amid tough competition, there is no assurance

factors that could not be anticipated when the investmentthat the group can in fact allocate sufficient resources todecisions were made should subsequently materialize in thosedevelop such new products. Furthermore, there is no way tonations and regions, such as changes in governments’assure that the group can successfully market the products it

currency exchange policies, foreign investment policies, anddoes develop with the resources invested.

tax systems, demand may decrease substantially, possibly

Financial Section

at 89.0%. Particularly in the motorcycle business, sluggish

Corporate Information

Market Competition

delaying or entirely preventing recovery of the investment.
Currency Fluctuations
Most of the motorcycles and outboard motors sold in volume
by the group in North America and Europe are manufactured in

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201059

Corporate Information

Operating Performance

Risk Factors

Joint Venturesmaterialize when the land is sold, thus negatively impacting the

In some nations and regions, the group operates businesses

business performance of the group.

Message from the Management

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 used

operations. Furthermore, if group manufacturing plants or otherfacilities are directly damaged, substantial expenditure may berequired to repair or replace the damaged facilities.

Special Feature

to manufacture products from many suppliers outside thegroup, and relies heavily on several key suppliers for certain
items. Whether the group can continue procuring these raw
materials and parts efficiently at low cost depends on manyfactors, some of which, such as market conditions and natural
Overview of Operations

disasters, are not within the group’s control.

Great Tohoku Earthquake
The Great Tohoku Earthquake, which rattled Japan on March 11,
2011, caused damage at some affiliated companies, such as
marina facilities, under the Yamaha Motor group umbrella, but
did not seriously damage the factories or facilities of theCompany or its consolidated subsidiaries.

Dependence on Corporate Customers
The group not only supplies consumer products such as
motorcycles and outboard motors to consumer markets, butalso automobile engines to automakers and surface mounters
as OEM products to corporate customers. Sales of automobile

CSR

engines and surface mounters through the OEM business may
be affected by factors outside the group’s control, such as the
management and procurement policies of the client companies.

However, widespread devastation in the disaster zone andworrisome developments at the nuclear power plant in Fukushima
Prefecture have impacted the group’s operations. A shortageof parts, beginning March 16, 2011, has forced many production
sites to suspend operations. A decision to resume production
at the affected factories will be based on the availability ofnecessary parts. If the stoppage in production drags on, thebusiness results and financial standing of the group could be

Corporate Information

eroded.
Retirement Benefit Obligation
The group’s employees’ retirement benefits and the obligation
thereto are computed by applying actuarial assumptions to thediscount rate and the expected rate of return on the pension
asset fund. Should the actual results differ from the assumptions,
Financial Section

or should the assumptions change, the effects generated bythese events are calculated cumulatively, thus repeatedly
impacting results—and, generally, expenses and obligations—in the future. Therefore, decreases in discount rates, and/or
lower-than-expected returns from pension asset management,
may have a negative impact on the group.

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 andimplements the countermeasures. As for individual risks
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, in order

Unrealized Loss on Land
Pursuant to the “Law Concerning the Revaluation of Land,” thefair value of land at December 31, 2010 was lower than thebook value after the revaluation by ¥6.3 billion, resulting in
unrealized loss. Consequently, the unrealized loss on land may

60

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

to establish a system for minimizing the damage and negative
effects. Main risks of this nature are described below. If an
incident more severe than assumed in contingency planningoccurs, it may negatively affect business results of the group.

The group protects its many patent rights, trademark rights

products of high quality, the group manufactures motorcycles

and other intellectual properties, which help differentiate theand other products at its factories worldwide under a strict

group’s products from others, through legal measures andquality assurance system, based on the group’s Quality

procedures. However, in some nations and regions where the

Assurance Standards. However, it is practically impossible togroup operates, complete protection of intellectual property

ensure zero defects for all products or eliminate the possibility

rights may not be possible, or intellectual property rights mayof recalls in the future. Consequently, the group is covered with

only be protected on a limited basis. In such nations andproduct liability insurance, but there is no assurance that theregions, the group may not be able to exercise its intellectual

maximum amount of compensation provided by the insurance

property rights to effectively prohibit the production of similar

policy can provide the total amount required. Furthermore,products.

Message from the Management

Protection of Intellectual Properties

Recognizing that it is our social responsibility to provide

Operating Performance

Product Liability

situations may arise in which the group is unable to continue
for the group. Should a large-scale recall or a product defecttrigger a product liability case, the group could incur major
expenses, and its credibility could be damaged. Such a
results of the group. In order to provide for the payment ofliabilities that may not be covered by product liability insurance,
the group allocates an accrual for product liabilities at an
estimated amount of payment, based on the actual results inpast years. Such provision notwithstanding, however, thedevelopment of product liability lawsuits—particularly cases
adversely effect the group’s business performance.

The group’s main Japanese factories are concentrated in anarea subject to “intensified measures against earthquake
disasters” in anticipation of a potentially severe predictedearthquake, referred to as the Tokai Earthquake. The grouphas been promoting seismic retrofitting for its main buildings
and structures, establishing systems that will facilitate earlypost-earthquake restoration, and regularly reviewing thesesystems and measures with the aim of minimizing damage andachieving early restoration in the event of an earthquake.
However, an earthquake exceeding the group’s predicted
magnitude could occur. The buildings and inventories owned

CSR

involving side-by-side vehicles in the United States—could

Tokai Earthquake

Overview of Operations

development may decrease sales and negatively affect businessSpecial Featurepurchasing the insurance policy under acceptable conditions

by the group are covered by earthquake insurance policies, but
earthquake damage may exceed the maximum collateral limits

Environmental and Other Regulations

for such assets and properties.
Corporate Information

In many countries and regions where the group operates,
Information Management

environmental and other regulations, encompassing productProtection of personal and/or confidential information, including

safety, fuel economy, exhaust emission levels and the levels

customer information, is essential for maintaining a company’sof pollutants generated from manufacturing facilities. Thesecredibility and ensuring smooth business operations. The

regulations may be revised and made stricter in the future.

group takes extensive measures to protect information assets,

The group has been promoting environmental preservationsuch as establishing corporate regulations, conducting

activities, in accordance with the “CSR Policy” and the “Yearin-house education, and constructing information security

2010 Yamaha Motor Group Environmental Plan,” such assystems. However, there is no guarantee that leaks or unauthorized

formulating green procurement guidelines to reducetransfers of information will not occur. Should such an incident

environmentally hazardous emissions from products andoccur in the group, the reputation of the group would befactories, and establishing dedicated teams. Nevertheless,damaged considerably, and the group could be held liable formajor changes in the regulations or laws in the countries anddamage caused to customers. Dependence on information

regions where the group does business may necessitate

systems, as well as their importance in the group’s businesssignificant further expenditure.

activities, continue to grow. Therefore, if an information system

Financial Section

the group and its products are subject to a wide range ofshould fail to function properly, the group’s operations, businessperformance and financial conditions may be negatively impacted.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201061

Corporate Information

History of the Yamaha Motor GroupOperating Performance

1955

Message from the Management•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 in the
125cc class at the 1st Asama Highlands Race

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

Special Feature
Overview of Operations•Took 125cc class manufacturer and rider titles at
the road race World GP

1968

1969

•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

1960

1970

•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 in round4, the Isle of Man TT Race in Britain•CAT-21 won 1st Pacific 1,000km Motorboat
Marathon

CSR

1967

1958

1961

1962

Corporate Information•Yamaha-built Toyota 2000GT set world records
in 13 categories at speed trials•Technical assistance agreement made formotorcycle production in Taiwan•Won both the 125cc and 250cc classes at the
2nd Asama Highlands Race

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

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

1963•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

Financial Section

1966•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

1957

1964

•Yamaha Motor do Brasil (YMDB) founded•Took 250cc class manufacturer and rider titles at
the road race World GP (TD2)1971•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 World GP•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

1975

1965

1977

•Won 125cc class at the Isle of Man TT Race in
the World GP for first time

62

•Captured manufacturer and rider titles for thesecond consecutive year in the 250cc class of
the road race World GP

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

•Representative office in Nigeria opened•Wing of Yamaha won 1st Single-Handed
Transpacific Yacht Race1976
•YZR750 finished 1-2 in the 13th All Japan GrandPrix Road Race

•Yamaha Motor Corporation, U.S.A. (YMUS)
founded•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
•R&D California opened in the U.S.
•Joint venture with Benemoto Co. to produce
motorcycles in Venezuela

1981•Service center opened in Guangzhou and Beijing,
China•Took rider title in the 250cc class of theMotocross WGP

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
•Yamaha Motor Taiwan (YMT) founded•Motorcycle production begun in Italy•Yamaha automobile racing engine OX66 won firstplace in the All Japan F2 Championship Series•Yamaha Motor Manufacturing Corporation ofAmerica (YMMC) founded1987•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•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•West Zakspeed Yamaha team formed in
Yamaha’s first F1 challenge

1990

1991

1992
•Established CCS (Customer Community
Satisfaction) Committee•Established Yamaha Football Club Co., Ltd.
•Chongqing-Jianshe Yamaha Motorcycle Co.,
Ltd. (CJYM) established in China

2007•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)•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

2000

2008

•Corporate ties with Toyota Motor Co.
strengthened•IM Division reorganized as an in-house company•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 2005

1999

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

2009

1995

2005

2010

•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 the 2003
success•OOO Yamaha Motor CIS (YMCIS) established in
Russia•Completed the Life Science Laboratory, an R&D
center for the biotechnology business•Yamaha Motor withdrew from life sciencebusiness•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

2004

Financial Section•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)

1994

Corporate Information•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

•European distribution center began operations in
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

CSR•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•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,” inview 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 Automatic Transmission), a
continuously variable transmission for mopedtype motorcycles•Won the manufacturer, team and rider titles at
the MotoGP, claiming the triple crown for thesecond consecutive year

1993

Overview of Operations•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•Yamaha Motor Asia Pte. Ltd. (YMAP) establishedin Singapore•Yamaha Motor Marketing Japan Co., Ltd.
establishedSpecial Feature•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

1998•Global Parts Center (Fukuroi City) began fullscale operation•Established the Compliance Special Committee•Plant for astaxanthin raw material completed;mass production begun•Yamaha Motor Foundation for Sports establishedMessage from the Management

1989•Second-place finish at the Hungary F1 GP world
championships

Operating Performance

1988

2006
•PT. Yamaha Motor Manufacturing West Java(YMMWJ) began operation (Indonesia)

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201063

Corporate Information

Principal Subsidiaries and Affiliates
As of December 31, 2010

Operating Performance

Consolidated Subsidiaries
Company

Location

Principal business lines

Message from the ManagementJapan❶ 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 of motorcycle electric parts

Los Angeles, California

Special Feature

U.S.A.
❺ Yamaha Motor Corporation, U.S.A. (YMUS)❻ Yamaha Motor Manufacturing Corporation of America(YMMC)❼C entury Boat Company, Inc.

Panama City, Florida

Regional headquarters for North America
Manufacture and marketing of golf cars, and manufacture of personal watercraft
and all-terrain vehicles
Manufacture and marketing of FRP boats❽ Skeeter Products, Inc.

Dallas, Texas

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

Indianapolis, Indiana

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

Knoxville, Tennessee

Manufacture and marketing of FRP boats⓫ Yamaha Golf-Car Company（YGC）

Atlanta, Georgia

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

Marketing of golf cars
Distribution of spare parts and accessories

CanadaTorontoMarketing of motorcycles, all-terrain vehicles, outboard motors, personal
watercraft and snowmobiles⓮ 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
Marketing of motorcycles, all-terrain vehicles, outboard motors, personal
watercraft and power productsManagement of group companies in Germany and UK

Overview of Operations⓭ Yamaha Motor Canada Limited（YMCA）

The Netherlands

CSR

France⓱ Yamaha Motor France S.A.（YMF）

Paris⓲ MBK Industrie（MBK）

Saint Quentin

Marketing of motorcycles, outboard motors, personal watercraft, all-terrain
vehicles and power products
Manufacture and marketing of scooters, outboard motors and bicycles

Corporate Information

Italy⓳ Yamaha Motor Italia S.p.A.（YMIT）

Milan⓴ Motori Minarelli S.p.A.

Bologna㉑ Yamaha Motor Research & Development Europe S.r.l.（YMRE） Milan

Manufacture of motorcycles; marketing of motorcycles, all-terrain vehicles,
outboard motors and power products
Manufacture and marketing of motorcycle engines
Procurement of components and partsSpain㉒ Yamaha Motor España S.A.（YMES）

Barcelona

Manufacture and marketing of motorcycles; marketing of all-terrain vehicles,
outboard motors and power products

LisbonMarketing of motorcycles, all-terrain vehicles and golf cars

LondonMarketing of motorcycles, outboard motors, personal watercraft, all-terrain
vehicles, golf cars and power products

Düsseldorf

Marketing of motorcycles, outboard motors, personal watercraft, all-terrain
vehicles and power products

Stockholm

Marketing and distribution of all products for Scandinavian nations

Moscow

Marketing of motorcycles, outboard motors, all-terrain vehicles, snowmobiles and parts

SydneyMarketing of motorcycles, all-terrain vehicles, golf cars, boats, outboard motors,
personal watercraft and power products

AucklandMarketing of motorcycles, all-terrain vehicles, golf cars, boats, outboard motors,
personal watercraft and power products

Portugal㉓ Yamaha Motor Portugal S.A.（YMP）

Financial Section

United Kingdom㉔ Yamaha Motor（UK）Limited（YMUK）

Germany㉕ Yamaha Motor Deutschland GmbH.（YMG）

Sweden㉖ Yamaha Motor Scandinavia AB（YMS）

Russia㉗ OOO Yamaha Motor CIS（YMCIS）

Australia㉘ Yamaha Motor Australia Pty Limited（YMA）

New Zealand㉙ Yamaha Motor New Zealand Limited（YMNZ）

64

YAMAHA Motor Co., Ltd. ⎢ Annual Report 2010

Location

Operating Performance

Company

Principal business lines

BrazilYamaha Motor do Brasil Ltda.（YMDB）

São Paulo

Manufacture and marketing of motorcycle parts; marketing of motorcycles,
outboard motors, all-terrain vehicles and generators

Yamaha Motor da Amazonia Ltda.（YMDA）

ManausManufacture and marketing of motorcycles and outboard motors

Medellin

Manufacture and marketing of motorcycles and motorcycle parts

Buenos Aires

Marketing of motorcycles, outboard motors and personal watercraft

Mexico City

Manufacture and marketing of motorcycles; marketing of all-terrain vehicles
and golf cars

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

Distribution of spare parts and accessories

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

LagunaManufacture 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

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

TaipeiResearch and development of motorcycles

India Yamaha Motor Pvt. Ltd.（IYM）

Delhi

Manufacture of motorcycles

Yamaha Motor India Sales Pvt. Ltd.（YMIS）

Delhi

Marketing of motorcycles

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

Message from the Management

Colombia

Argentina
Yamaha Motor Argentina S.A.（YMARG）

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

Special FeatureIndonesia

Overview of Operations

Singapore

Vietnam
CSR

ThailandCorporate Information

The Philippines
Yamaha Motor Philippines, Inc.（YMPH）

TaiwanFinancial Section

India

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

Procurement of parts and raw materials from within China and supply tooverseas Yamaha production bases, etc.

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

Marketing of Yamaha-brand motorcycles made in China, and after-sales
service and marketing of parts for those products

Shanghai

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

Manufacture and marketing of motorcycle suspensions

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

Planning and development of motorcycles

Shanghai

Other consolidated subsidiaries: 49 companies
Total consolidated subsidiaries: 104 companies

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201065

Corporate Information

Principal Subsidiaries and Affiliates
As of December 31, 2010

Operating Performance

Subsidiaries and Affiliates Accounted for by the Equity Method
Company

Location

Principal business lines

Message from the Management

Japan
Yokohama Bay Side Marina Co., Ltd.

Yokohama, Kanagawa

Yamaha Football Club Co., Ltd.

Iwata, Shizuoka

Management of a marina and related business
Management of a professional soccer teamMikasa Unyu Co., Ltd.

Kakegawa, Shizuoka

Distribution

Milan

Contract coordination, management and related activities for MotoGP andmachine development testing

BrusselsMarketing of motorcycles, outboard motors, personal watercraft, all-terrain
vehicles and power products

Mexico City

Manufacture and marketing of FRP boats; marketing of outboard motors,
generators, personal watercraft and parts

Lima

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

Kuala Lumpur

Manufacture of motorcycles

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

Chongqing, Sichuan

Manufacture of motorcycles

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

Italy
Yamaha Motor Racing S.r.l.（YMR）

Belgium
D’Ieteren Sport S.A.

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

Peru
Yamaha Motor del Perú S.A.（YMDP）

Malaysia
Overview of Operations

Hong Leong Yamaha Motor Sdn. Bhd.（HLYM）

China

CSR

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 engine 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: 19 companies
Total subsidiaries and affiliates accounted for by the equity method: 33 companies

14
15 16

Financial Section

24

23

60
17
18

26

27

25
13

22

9
19 20
21 59
50 51

67

64 68

66 69 52 53
55
65 54

42 43
44
45

10

5

1 2 3 456 57 58

8

6 11
7
12

47 48 49
34 61

46

32

63
40 41

31

35 36 37 38 39

62

30

28
29

66

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201033

Financial Section
Management Discussion and Analysis of Operations

68

Five-Year Summary

79

Quarterly Financial Information

79

Consolidated Balance Sheets

80

Consolidated Statements of Income

82

Consolidated Statements of Changes in Net Assets

83

Consolidated Statements of Cash Flows86

Notes to Consolidated Financial Statements

87

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201067

Management Discussion and Analysis of Operations

Message from the Management

Operating Performance

Overview

burdensome extraordinary loss—largely due to the booking

The global economic environment during fiscal 2010—theof business structure improvement expenses of ¥103.7 billion

consolidated fiscal year ended December 31, 2010—was ain fiscal 2009 and the absence of such an amount in fiscal

mix of challenges and opportunities, weighted slightly perhaps

2010—propelled the group out of last year’s net loss position

more toward the challenging side. In the United States, con-to net income of ¥18.3 billion ($224.6 million), a ¥234.4 billion

sumer spending seemed to rally but unemployment remained($2,877.0 million) turnaround.

a concern, and in Europe, financial crises befell countries on

Special Feature

the edge of the euro zone. These developments dampened

Scope of Consolidation

economic recovery in the West. A similar positive-negative

The number of consolidated subsidiaries at the end of fiscal

air hung over Japan, with signs of improvement in export

2010 decreased by three from fiscal 2009, to 104, and theactivity overshadowed by obstacles, especially persistent yen

number of companies accounted for by the equity method

appreciation, which created uncertainty over the direction thatremained the same, at 33.

recovery might take. Meanwhile, emerging markets, primarily in
Asia, were for all intents and purposes impervious to slowdown

Overview of Operations

and continued to expand.

CSR
Corporate Information

Fluctuating exchange rates had a negative effect on net sales

Looking at key markets for the Yamaha Motor group, inand gross profit, causing year-on-year reductions of ¥8.7 billion

the United States and Europe demand for motorcycles and($106.8 million) to net sales and ¥18.4 billion ($225.8 million) to

all-terrain vehicles retreated year on year, but the downward

gross profit.

trend in outboard motors appeared to have bottomed out. In

The impact of exchange rate fluctuations on net sales is

emerging markets, demand for motorcycles remained brisk.

defined as the difference between yen-translated amounts of

Of note, year-on-year sales rose significantly in Indonesia.

foreign currency-denominated sales generated at overseas

Against this operating backdrop, consolidated net sales for

subsidiaries in fiscal 2010 calculated at exchange rates that

fiscal 2010 increased 12.2% from a year earlier to ¥1,294.1

prevailed at the end of fiscal 2010 and respective exchangebillion ($15,880.9 million), buoyed by higher sales of motor-

rates applied in fiscal 2009. Similarly, the impact of exchange

cycles in emerging markets on a unit basis, which offset a

rate fluctuations on gross profit is defined as the difference

value drop caused by yen appreciation. A turnaround in

between yen-translated amounts of foreign currency-

demand for outboard motors and surface mounters also

denominated gross profit generated at overseas subsidiaries

contributed to better net sales.

in fiscal 2010 calculated at exchange rates that prevailed at

On the income front, the group welcomed a return to the

Financial Section

Impact of Exchange Rate Fluctuations

the end of fiscal 2010 and respective exchange rates applied

black. Consolidated operating income rebounded ¥113.9

in fiscal 2009. The impact of exchange rate fluctuations does

billion ($1,397.6 million) from last year’s loss position to ¥51.3

not take into account changes in the selling prices of groupbillion ($629.6 million), and consolidated ordinary income

products.

bounced back ¥134.5 billion ($1,650.3 million) to ¥66.1 billion

The exchange rates used in converting foreign currency-($811.7 million). This achievement reflects several factors,

denominated amounts into yen on the financial statements

including higher sales despite the revenue-squeezing impact ofwere ¥88 to the U.S. dollar, appreciating ¥6 from fiscal 2009,

adverse exchange rates between the yen and major currenciesand ¥116 to the euro, appreciating ¥14 from fiscal 2009.

and rising prices for raw materials, as well as structural reforms
that streamlined depreciation expenses and personnel costs,

68

Sales and Operating Income

successful cost-cutting measures, and enhanced marginal

Net sales for fiscal 2010 increased ¥140.5 billion ($1,724.0

profit supported by a recovery in domestic output of motor-

million), or 12.2%, from fiscal 2009 to ¥1,294.1 billion

cycles and outboard motors. These results, plus a much less($15,880.9 million). In Japan, sales increased ¥11.9 billion

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Factors Impacting Operating Income
Operating Performance(Billion ¥)150

Decrease indepreciation
expenses

50

+27.0

0

Decrease in
SG&A expenses+4.3

Impact of raw
material prices–7.1

Impact ofexchange rate
(gross profit)+15.2

Changes in
the product mix;
other factors–18.4

Operatingincome+3.3+11.0
Structural reform effect+12.8
Reducing capital expenditures +2.4

+20.6

Structural reform effect
Personnel expenses: +6.7

51.3

Foreign exchange effect +4.2
Structural reform effect +7.1

FY10

Depreciation expenses +2.6
Personnel expenses +4.5

–62.6

Special Feature

OperatingincomeIncrease in grossprofit due tosales expansion

Increase in
marginal profit
in Japanese
factories

Cost reductionin procurement

Decrease in
R&D expenses(cost of sales)

Message from the Management

100

+57.9

to ¥51.3 billion ($629.6 million). This result was attributable

representing 11.0% of net sales. Meanwhile, overseas sales

to the increase in sales, reduced depreciation and personnel

increased ¥128.5 billion ($1,577.5 million), or 12.6%, toexpenses due to structural reforms, cost reductions, an¥1,151.8 billion ($14,133.7 million), accounting for 89.0% of

improvement in marginal profit owing to a recovery in domestic

net sales.

production volumes of motorcycles and outboard motors, andIn terms of profit, operating income for fiscal 2010

other factors, despite the negative impact of yen appreciation

increased ¥113.9 billion ($1,397.6 million) from fiscal 2009

(Year ended December 31, 2010)
Other products
Power
9.1%
products

Sales by product segment

Sales by market(Billion ¥)(Billion ¥)

2,000

2,000
1,757

1,757
1,500

12.9%

150
250

Motorcycles
70.0%

290

1,000

239

267

1,604

1,582
1,500
1,294
1,154
86
101

1,294

118
103
167

1,154
1,000
1,575

150

1,434

1,393

1,023

Percentage of sales by market

1,056

500

1,029

915

(Year ended December 31, 2010)

Financial Section

145 1,604
123
266
213

1,582

8.0%
Marineproducts

and higher raw material prices.
Corporate Information

Percentage of sales byproduct segment

CSR($146.5 million), or 9.2%, to ¥142.4 billion ($1,747.2 million),

Overview of Operations

FY09

817

906

1,152

500

Japan

11.0%

189

0
2006
Overseas
89.0%

182

170

0
2007

2008

2009

Motorcycles

Marine products

Power products

Other products

2010

2006
Japan

2007

2008

130

2009

142

2010

Overseas

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201069

Management Discussion and Analysis of Operations

Message from the Management

Operating Performance

Sales Performance by Business Segment

Marine Products

Motorcycles

Retail sales and wholesale shipments of outboard motors in

Unit sales in emerging markets rose 22.8% from the previous

developed markets increased from the previous year, owing toyear to 6.56 million units. Overall unit sales, including those to

the introduction of newly developed, next-generation environ-developed markets, rose 19.2% to 6.96 million units. Production

mentally friendly outboard motors and the implementation of

capacity was expanded to 3.60 million units in Indonesia andmarket stock adjustments in the previous year and a recovery

1 million units in Vietnam, markets where growth is expected

in retail sales in the United States in the current year. Further-to continue.

more, sales also rose in emerging markets, including Russia
and Brazil.

In emerging markets, motorcycle sales increased from theConsequently, marine product sales for fiscal 2010

Special Featureprevious year on higher sales volume. In developed markets,
however, motorcycle sales decreased from the previous year

increased 11.3% to ¥167.1 billion ($2,051.1 million).

as a result of a decline in sales volume due to lower-than-

Operating income was ¥0.7 billion ($9.2 million), representing

expected demand and yen appreciation. In the United States,

an improvement of ¥25.0 billion ($307.1 million) from themarket stock adjustments were implemented to bring stock inprevious year.

line with current demand.
Power Products

Overview of Operations

As a result of these developments, motorcycle sales for the
fiscal year ended December 31, 2010 (fiscal 2010) rose 10.9%

Although retail sales of ATVs in the United States decreased

from the previous year to ¥906.0 billion ($11,117.6 million),from the previous year, wholesale shipments increased due towhile operating income improved by ¥46.9 billion ($575.4

market stock adjustments implemented in the previous year.
As a result, total sales of power products rose 2.4% tomillion) to ¥42.7 billion ($524.5 million).

¥103.0 billion ($1,263.6 million). Operating loss was ¥11.3
CSR

billion ($138.1 million), representing an improvement of ¥22.5

Corporate Information

billion ($276.3 million) from the previous year.

Motorcycle unit sales

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

8,000

150
7.8
6,960

Financial Section

497

5,865

6,000

493

5,841

123.5

4,000

3.0
50

6

60

3

30

4.1

51.3

48.4

2007

366
167
122

2008

275
92
108

2009
Europe

2

1.4
18.3

4,993

0
410
197
163

4

1.9

Japan
North America
Other areas

70

6

3,770

2,000

2006

(%)

4.0

457

4,717

0

90

372

6,084

407
207
161

(Billion ¥)9

77.2
4.9 71.2

100

373

3,272

(%)

7.2
127.0

4,997
4,419

Net income (loss) andnet income margin

227
53
99

2010
Asia

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

–5.4
–62.6

–80
2006

2007

2008

Operating income (loss)
Operating income margin (%)

2009

2010

0

0

–10

–250

0.1

0
–18.7
–216.1

2006

2007

2008

Net income (loss)
Net income margin (%)

2009

2010

–20

Sales in North America for fiscal 2010 decreased 6.4% fromprevious year to ¥118.0 billion ($1,448.6 million), due to factors

the previous year to ¥171.4 billion ($2,103.1 million). Although

including a recovery in demand for surface mounters in China,

sales of outboard motors and ATVs increased, motorcycle

an increase in the sales of automobile engines and higher

sales fell due to continued demand contraction. Operating loss

demand for electrically power assisted bicycles in Japan.

improved by ¥27.5 billion ($338.0 million) to ¥14.7 billion

Operating income improved by ¥19.5 billion ($238.8 million)
from the previous year to ¥19.1 billion ($234.1 million).

Message from the Management

North America

Sales in this segment for fiscal 2010 increased 37.4% from theOperating Performance

Other Products($180.7 million), owing to the impact of fixed expense
reductions realized from structural reform.

Sales Performance by Geographical Segment Note 1

EuropeSales in Japan for the fiscal year ended December 31, 2010previous year to ¥168.7 billion ($2,070.1 million), as sales of(fiscal 2010) rose 17.1% from the previous year to ¥527.2

motorcycles and ATVs fell. Operating income improved bybillion ($6,469.9 million), reflecting sales increases for surface¥11.1 billion ($136.4 million) to ¥2.0 billion ($24.2 million), due

mounters, automobile engines and electrically power assisted

to factors including fixed cost reductions realized frombicycles. Operating loss was ¥2.5 billion ($30.9 million), an

structural reform.

Overview of Operations

Sales in Europe for fiscal 2010 decreased 16.1% from theSpecial FeatureJapan

improvement of ¥53.1 billion ($651.2 million) from the previous
Asia

resulting from a recovery in production volumes of motorcycles

Sales in Asia (excluding Japan) for fiscal 2010 increased 26.7%

for developed markets and outboard motors, coupled withfrom the previous year to ¥658.2 billion ($8,077.0 million). This

fixed expense cutbacks, despite the negative impact ofis attributable to favorable motorcycle sales in Indonesia,

exchange rates due to yen appreciation.

Vietnam and other markets. Operating income rose 64.6% to

CSR

year. This is attributable to an improvement in marginal profit¥55.2 billion ($678.0 million).

Sales by geographical segment Note 1—North America

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

1,000

600

400

848

857

750

500

372
326

Financial Section

481

799

Corporate Information

Sales by geographical segment Note 1—Japan

308
300

450
383
527

500

183
250

100

0

0
2006

2007

2008

2009

2010

169

171

150

0

201

200

300

450

2006

2007

2008

2009

2010

2006

2007

2008

2009

2010

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201071

Management Discussion and Analysis of Operations

Message from the Management

Operating Performance

Other Areas

In addition, selling, general and administrative expenses

Sales in other areas for fiscal 2010 rose 19.7% from thedropped ¥20.6 billion ($253.0 million) to ¥244.3 billion

previous year to ¥144.6 billion ($1,774.4 million), thanks to($2,997.4 million), thanks to a decrease in contingency

increased motorcycle sales in Brazil. Operating income

expenses. Selling, general and administrative expenses as a

improved by ¥12.3 billion ($150.9 million) to ¥10.3 billion

percentage of net sales reached 18.9%, which is 4.1 percent-($125.9 million).

age points less than the fiscal 2009 result.

Note 1
Sales amounts by geographical segment include intersegment sales.

R&D Expenses
Capitalizing on its core small engine technology, and otherSpecial Feature

Income and Expenses

technologies centering on frame, hull and electronic control,

Cost of Sales, Gross Profit and SG&A Expenses

the group is engaged in research and development (R&D)

Cost of sales for fiscal 2010 increased ¥47.2 billion ($579.4

activities for a diversity of products, including motorcycles,

million), or 5.0%, from fiscal 2009 to ¥998.6 billion ($12,253.8

marine products, power products, surface mounters, industrial

million), representing 77.2% of net sales.

robots, and automobile engines.

Corporate Information

CSR

Overview of Operations

Gross profit increased ¥93.3 billion ($1,144.6 million), or
46.1%, to ¥295.6 billion ($3,627.0 million), which accounted

million), or 11.1%, from fiscal 2009 to ¥55.2 billion ($677.2

for 22.8% of net sales. This change is largely due to a ¥57.9

million), which was equivalent to 4.3% of net sales. Broken

billion ($710.5 million) increase arising from higher sales and an

down by business segment, R&D expenses stood at ¥34.9¥11.0 billion ($135.0 million) increase attributed to the positive

billion ($428.7 million) in the motorcycle business; ¥6.9 billion

impact of efforts to cut the costs of procurement. The gross($84.6 million) in the marine products business; ¥5.9 billion

profit margin rose to 22.8%, a 5.3 percentage point improve-($72.7 million) in the power products business; and ¥7.4 billion

ment over fiscal 2009.

($91.2 million) in the other products business.

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
166

658

Financial Section

R&D expenses for fiscal 2010 decreased ¥6.9 billion ($84.5

527

86

171
145

150
519

125

75
5.3

400

100

50

200

50

25

0
2009

2010

4.9

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

4.3
55

2006

2007

2008

2009

2010

4

2

0
2006

2007

R&D expenses

72

62

0

0
2008

6

5.4
4.9

2007

85

121

437

2006

8

77

585

600

(%)

2008

2009

2010

% of R&D expenses to net salesUnder the new Medium-Term Management Plan in place

By key operating segments, the motorcycle business deliv-

developing affordably priced motorcycles to be marketed inbillion ($575.4 million) turnaround from a year earlier, thanks to

China, India and other emerging nations. The Company willmore units sold in emerging markets and efforts to adjust tradealso work to simultaneously increase the appeal and profitabil-inventories to a level commensurate with prevailing demand

ity of motorcycles in Indonesia, Vietnam, and other ASEAN

conditions in developed nations.

nations by incorporating Yamaha’s exclusive fuel injection

The marine products business also moved into the blacksystem, while reducing the costs of these products.

through higher sales in emerging markets, particularly Russia

Furthermore, it will develop next-generation, environmentallyand Brazil, with operating income of ¥0.7 billion ($9.2 million), a

friendly engines for motorcycles and outboard motors, as well¥25.0 billion ($307.1 million) improvement from a year earlier.

as Smart Power

Note 2Message from the Management

ered operating income of ¥42.7 billion ($524.5 million), a ¥46.9

Operating Performancefrom fiscal 2010 through 2012, the Company will focus ontechnology for electric motorcycles and

The power products business remained in the red, at ¥11.3
Special Featureelectrically power assisted bicycles.

billion ($138.1 million) in operating loss, but improved by ¥22.5
billion ($276.3 million) through the implementation of trade

Note 2
Smart Power: New power sources, primarily for electric vehicles, designed tocreate a new paradigm of mobility

inventory adjustments in the United States in the previous year.
The other products business reversed the operating loss

Operating Income (Loss)($234.1 million), a ¥19.5 billion ($238.8 million) upward change.

The Company posted operating income in fiscal 2010,

This was mainly attributed to rallying demand for surface

marking a ¥113.9 billion ($1,397.6 million) rebound from lastmounters in China as well as an increase in shipments of auto-year’s loss position to ¥51.3 billion ($629.6 million). As a result,mobile engines in that market, which was complemented by

the operating income ratio jumped 9.4 percentage points,

growing demand for power assisted bicycles in Japan.

Overview of Operations

recorded in fiscal 2009 with operating income of ¥19.1 billion

CSR

to 4.0%.

Net income (loss) per share

Net assets and % of net income toshareholders’ equity(Billion ¥)(¥)(Billion ¥)

100

300

600

94

270 270

(%)

30

569
501

249 249

85

Financial Section

83

Corporate Information

Capital expenditures and depreciation

428
75

400

200

20

18.1
14.2

60
55
50

200

100

46
34

6

0

0

6

Capital expenditures2009
Depreciation

2010

0.4

0

2006

2007

2008

2009

0

–71.2

–756

–800
2008

10
7.5

56 56

37

25

2007

249

54

47

2006

311

2010

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.

2006

2007

Net assets

2008

2009

–80

2010

% of net income to shareholders’ equity

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201073

Operating Performance

Management Discussion and Analysis of Operations

Non-Operating Income and Expenses

Income Taxes

The Company posted non-operating income of ¥14.8 billion

In fiscal 2010, income taxes decreased ¥7.5 billion ($91.5($182.0 million), or ¥20.6 billion ($252.7 million) more than inmillion), or 19.0%, from fiscal 2009 to ¥31.8 billion ($390.2

fiscal 2009, largely due to the impact of exchange rates and amillion).

decrease in valuation loss on available-for-sale financial assets.

Special Feature

Message from the Management

Minority Interests
Extraordinary Profits and Losses

Minority interests—including interests owned by minority

Extraordinary profits for fiscal 2010 amounted to ¥0.7 billion

shareholders in PT. Yamaha Indonesia Motor Manufacturing($8.4 million), largely due to ¥0.5 billion ($6.7 million) in a gain

and its consolidated subsidiaries; Yamaha Motor Vietnam Co.,on sale of fixed assets. In fiscal 2010, the Company showed

Ltd.; Industria Colombiana de Motocicletas Yamaha S.A.;

extraordinary losses of ¥7.9 billion ($96.7 million), down ¥97.8

and Yamaha Motor Taiwan Co., Ltd.—increased ¥5.6 billion

billion ($1,200.4 million) from the previous fiscal year. In fiscal($69.1 million), or 174.8%, from fiscal 2009 to ¥8.8 billion

2009, the Company recorded ¥103.7 billion in business struc-($108.6 million).

Overview of Operations

ture improvement costs under extraordinary losses, while theprimary component of extraordinary losses in fiscal 2010 was

Net Income (Loss)¥6.6 billion ($81.3 million) in impairment loss on fixed assets.

Net income for fiscal 2010 increased ¥234.4 billion ($2,877.0
million), from a net loss of ¥216.1 billion for fiscal 2009 to net

Income (Loss) before Income Taxes and Minority Interests

income of ¥18.3 billion ($224.6 million) for fiscal 2010. Basic

Income (loss) before income taxes and minority interests

net income per share rose ¥811.42 ($10.0), from a basic net

increased ¥232.6 billion ($2,854.5 million) from a loss ofloss per share of ¥755.92 for fiscal 2009 to basic net income¥173.7 billion for fiscal 2009, resulting in income of ¥58.9

per share of ¥55.50 ($0.7) for fiscal 2010.

Corporate Information

CSR

billion ($723.4 million) for fiscal 2010.

Net assets per share andequity ratio Note 3
41.7

(¥)

2,000

42.1
1,852

(Billion ¥)

(%)

(%)

40

1,500

9

200

1,129

1,500

28.0

1,378

21.5

1,000
743

Current ratio

(%)

33.9

1,645

Financial Section

Total assets and return on assets

30

20

7.4 1,258

175
987

6.0

1,000

163

1,163
978

6

3

100

0

50

–25

0

500

786

150
129

131

126

2006

2007

2008

1.9

500

10

0

0

0.2

0

–20.1
2006

2007

2008

Net assets per share

74

2009

2010

Equity ratio (%)

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

2006

2007

Total assets

2008

2009

Return on assets (%)

2010

2009

2010

million), and shareholders’ equity ratio rose 6.5 percentage

Assets, Liabilities and Shareholders’ Equity

points from the end of the previous fiscal year to 28.0%.

Free cash flow amounted to ¥66.9 billion ($820.9 million) at theend of the fiscal year ended December 31, 2010, owing to theachievement of returning to profitability, cutbacks in working

Operating Performance

Capital Resources and Liquidity

Note 3Equity ratio: (Shareholders’ equity + Valuation and translation adjustments)/
Total assets x 100 (%)

Message from the Management

capital through market stock adjustment and curtailment ofCapital Expenditures

flows to repay borrowings, interest-bearing debt declined

Capital expenditures for fiscal 2010 decreased ¥12.1 billion¥77.5 billion ($951.0 million) from the end of the previous fiscal($148.4 million), or 26.3%, from fiscal 2009 to ¥33.9 billion

year. Meanwhile, cash and deposits in banks increased ¥68.0($416.5 million). These were mainly investments in manufactur-

billion ($834.9 million) and capital and additional paid-in capitaling equipment and facilities for new products, and productionrose ¥37.3 billion ($458.0 million), owing to such factors as acapacity enhancements—primarily for the motorcycle andpublic offering conducted to fund research and development inmarine products business—as well as investments in researchorder to achieve the Company’s growth strategy.

and development operations.

Special Feature

capital investment. As a result of the appropriation of free cash

Broken down by business segment, capital expenditures

Consequently, total assets at the end of the fiscal year

for the motorcycle business totaled ¥23.8 billion ($291.9

from the end of the previous fiscal year to ¥978.3 billion

million). In Asia (excluding Japan), investments were under-($12,005.7 million), while total liabilities fell ¥70.3 billion

taken mainly in equipment and facilities. This included the($862.4 million) to ¥667.5 billion ($8,191.6 million). Net assets

equipment, facilities and molds for manufacturing new models,rose ¥61.5 billion ($755.2 million) to ¥310.8 billion ($3,814.1

and the maintenance of existing equipment and facilities. In

Overview of Operations

ended December 31, 2010 fell ¥8.7 billion ($107.2 million)

Japan, investments were mainly to acquire research andTangible fixed asset turnover

Inventory turnover(Times)(Times)(Times)

2.0

6.0

6.0

4.6

1.5

4.6

4.3

4.5
1.3

4.9

4.7

1.3

4.5

4.2

4.1
3.8

3.7

1.1
1.0

3.0

3.0

0.5

1.5

1.5

0.0

0.0
2006

2007

2008

2009

2010

Financial Section

1.5

1.5

Corporate Information

Total asset turnover

CSR

development equipment and facilities.

3.5

0.0
2006

2007

2008

2009

2010

2006

2007

2008

2009

2010

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201075

Management Discussion and Analysis of Operations

Operating Performance

Capital expenditures for the marine products businesstotaling ¥36.6 billion ($449.1 million), and an increase in notes

amounted to ¥3.6 billion ($44.6 million), invested mainly inand accounts payable totaling ¥22.4 billion ($274.6 million).

equipment, facilities and molds to manufacture new outboard

Net cash used in investing activities amounted to ¥37.6

Message from the Management

motor and personal watercraft models.

billion ($461.8 million), ¥7.7 billion ($93.9 million) lower than the

Capital expenditures for the power products businessprevious fiscal year, due mainly to payments for purchase of

totaled ¥2.5 billion ($30.2 million), invested mainly in manufac-

fixed assets totaling ¥31.9 billion ($391.1 million) as a result of

turing equipment and facilities for new recreational vehicle

holding capital investment of fixed assets below the level ofmodels. Capital expenditures for the other products business

depreciation expenses. Consequently, free cash flows totaled

stood at ¥4.1 billion ($49.8 million), invested mainly in research¥66.9 billion ($820.9 million).

and development operations in the automobile engine

Net cash provided by financing activities was ¥5.3 billion

Special Featurebusiness.

($65.0 million). The figure mainly reflects ¥74.6 billion ($916.0

The entire amount of the expenditures discussed above

million) raised in a public offering to fund research and develop-

was funded by internal resources.

ment of low-priced motorcycles for emerging countries and

The Company registered an impairment loss on fixed

next-generation environmentally friendly engines and theassets of ¥6.6 billion ($81.3 million) in fiscal 2010.

appropriation of free cash flows to repay short-term borrowing

Overview of Operations

During fiscal 2010, there was no disposal or sale ofand long-term debt.

important facilities or similar assets.

Consequent to the developments discussed above,

Corporate Information

CSR

interest-bearing debt at the end of the fiscal year decreased
Cash Flows¥77.5 billion ($951.0 million) from the end of the previous fiscal

Net cash provided by operating activities during the fiscal year

year to ¥322.4 billion ($3,956.8 million), while cash and cash

under review stood at ¥104.5 billion ($1,282.7 million), due

equivalents rose ¥66.7 billion ($818.0 million) to ¥203.9 billion

mainly to income before income taxes and minority interests($2,501.9 million). Interest-bearing debt includes ¥114.2 billion

totaling ¥58.9 billion ($723.4 million), depreciation expenses($1,401.6 million) in borrowings for sales financing.

Account receivable turnover

Cash provided by (used in)operating activities

Cash used in investing activities(Times)(Billion ¥)(Billion ¥)

8

150

120

Financial Section

7.6

7.8

106

123

7.5

100

7.0
6

105
100

90

94

6.0

80
74

4

50

2

60

0

45

38

2009

2010

30
–6

0

–50
2006

76

2007

2008

2009

2010

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

0
2006

2007

2008

2009

2010

2006

2007

2008

Demand for Funds

On the green technology front, the Company will develop
next-generation, environmentally friendly engines for motorcy-

of procuring materials and parts used in product manufacturing

cles and outboard motors; and enhance research and devel-

and costs incurred in the manufacturing process, as well as

opment toward marketing Smart Power technology andpurchasing costs, selling, general and administrative expenses,

products.

Operating Performance

Within the group, funds are primarily required to cover the cost

Message from the Management

working capital and capital expenditures.

Cash Dividends

Capital expenditures in fiscal 2010 amounted to ¥33.9

Recognizing that shareholders’ interests represent one ofresearch and development activities in the motorcycles andYamaha Motor’s highest management priorities, the Company

marine products segments. Overseas, funds were applied

has been striving to meet shareholder expectations by working

mainly to the introduction of new equipment and expanded

to maximize its corporate value through a diversity of businessproduction capacity, especially in Indonesia.

operations worldwide. The Company’s policy centers on

Special Featurebillion ($416.5 million). In Japan, funds were allocated mainly to

paying cash dividends based on a long-term perspective,reflecting its consolidated financial performance and otherthe management resources in two domains—personal mobility

factors in a comprehensive manner, using the payout ratio asand engines—of the four defined in the Frontier 2020 long-an indicator.

Overview of Operations

Under the new Medium-Term Management Plan in placefrom fiscal 2010 through 2012, the Company will concentrate

However, in light of considerations such as the decline interm vision the Company announced in February 2008.
Specifically, the Company plans to invest in developing

performance in fiscal 2009 and the harsh businessaffordably priced motorcycles to be marketed in emerging

environment—projected to continue into the future—thenations and simultaneously increasing the appeal and profit-

Company regrets to announce it has suspended its dividend

ability of motorcycles in the ASEAN region by incorporating

payout for fiscal 2009 and fiscal 2010.
CSR

Yamaha’s exclusive fuel injection system.

Cash and cash equivalents at
the end of the year

Interest-bearing debt anddebt/equity ratio(Billion ¥)(Billion ¥)(Billion ¥)

240

400

90

134
30
14

188.3

349

322
150

300

180

29

200

120

230

137
200

102

17

Financial Section

60

(%)

400

204

67

Corporate Information

Free cash flows

117.6

195

100
88.5

74
0

100

60

41.5
–106

–150
2006

2007

2008

2010

0

0

0
2009

50

43.3

2006

2007

2008

2009

2010

2006

2007

2008

Interest-bearing debt

2009

2010

Debt/equity ratio (%)

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201077

Management Discussion and Analysis of Operations

Operating Performance

Fund Procurement Conditions

December 31, 2009 to ¥461.9 billion ($5,667.6 million) at
December 31, 2010.

Group companies acquire short-term loans denominated inlocal currencies to use as working capital. Meanwhile, funds

Forecast for Fiscal 2011

Special Feature

Message from the Management

for plant and equipment investment come primarily from internal reserves, including paid-in capital and retained earnings.

In fiscal 2011, although demand in emerging markets is

To promote aggressive investment in R&D and realize its plans

expected to grow, primarily in Asia (excluding Japan), demand

for long-term growth, the Company procured a total of ¥74.6

in Europe and the United States is not expected to recover forbillion ($916.0 million) by issuing new shares through a public

some time. The business environment is expected to remainoffering in April 2010 and by executing an offering-linked third-

severe due to factors including the continuing trend of yen

party allocation of shares due to over-allotment in May 2010.

appreciation and increases in raw material prices.

These moves were approved for implementation by the Board

To cope with these adverse conditions, the Yamaha Motorof Directors at Yamaha Motor at its meeting on April 2, 2010.

group will continue to steadily implement structural reform and(Billion ¥)Overview of Operations

1 year 1 to 2 2 to 3 3 to 4 4 to 5 More than
Total or less years years years years 5 years

pursue further reductions in business costs through reform of
its operational infrastructure.

Short-term borrowing

35.5

35.5

—

—

—

—

—

Factoring in all these elements, the Company forecasts its

Long-term debt

287.0

57.6

98.0

61.4

48.8

11.2

10.0

consolidated business results for fiscal 2011 as follows: ¥1,350
billion in net sales, an increase of ¥55.9 billion from fiscal 2010;

Share Performance¥53.0 billion in operating income, an increase of ¥1.7 billion;

Price per share increased from ¥1,166 at December 31, 2009

¥55.0 billion in ordinary income, a decrease of ¥11.1 billion;to ¥1,323 ($16.24 ) at December 31, 2010. The number ofand ¥20.0 billion in net income, an increase of ¥1.7 billion.

Corporate Information

CSR

shares outstanding, excluding treasury stock, increased fromAll of the business performance forecasts highlighted above

285,849,635 shares at December 31, 2009 to 349,097,035

are based on the assumption that one U.S. dollar will trade atshares at December 31, 2010. As a result, the market capital-¥82 (appreciating ¥6 from fiscal 2010) over the period, whileization of the Company increased from ¥333.3 billion at

one euro will equal ¥110 (appreciating ¥6 from fiscal 2010).

Interest coverage

Cash dividends per share andpayout ratio(Times)

(¥)

20

40

Price/earnings ratio

394.3
(%)

(Times)

20

200

15

150

20

10

100

10

5

50

41

Financial Section

36

15

16.5

14.6

30

13.2
12.1

10

144.0

25.50

13.3

6.7
5

23.8
13.8
0

0
2006

2007

2008

2009

2010

Note
Interest coverage for fiscal 2008 is not listed, due tothe negative status of cash flows from operating activities
during the period.

78

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

2006

2007

2008

Cash dividends per share

0

0

2009

2010

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.

10.9
0

0
2006

2007

2008

2009

2010

Note
The price/earnings ratio for fiscal 2009 is not listed,since the Company registered a net loss for the period.

Five-Year Summary
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2006, 2007, 2008, 2009 and 2010

Millions of yen

2009

2010

¥1,582,046¥1,756,707¥1,603,881¥1,153,642¥1,294,131

188,650
1,393,395

181,586
1,575,120

170,208
1,433,672

130,437
1,023,205

142,378
1,151,752

914,810
266,529
250,418
150,288
1,162,255
123,534
125,371
77,233
83,01447,4481,056,212
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

905,977
167,141
102,968
118,043998,565
51,30866,142
18,30033,93936,594¥1,128,688
501,054¥1,258,430
569,221¥1,163,173
428,483¥ 987,077
249,266¥ 978,343
310,809

6.47
6.47
25.50

¥ (755.92)
—
0.00

¥

49,761

49,994

Overview of Operations

2008

Special Feature

2007

Message from the Management

At the year end
Total assets
Net assets

2006

Operating Performance

For the year
Net sales
Sales by market:
Japan
Overseas
Sales by product:
Motorcycles
Marine products
Power products
Other products
Cost of sales
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Capital expenditures
Depreciation expenses

Yen

Per share amounts
Net income (loss)—basic
Net income—diluted
Cash dividends
Number of employees¥

270.09269.82
36.00¥

41,958248.81248.7341.00¥

46,850

55.50
55.50
0.00
52,184

CSR
Corporate Information

Quarterly Financial Information
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Year ended December 31, 2010

2nd Quarter

3rd Quarter

Financial Section

Millions of yen
1st Quarter

4th Quarter

For the period
Net sales
Operating income
Net income¥ 309,898
9,611
7,511

¥ 676,166
35,03023,776¥ 987,402
48,77331,067¥1,294,131
51,30818,300At the end of period
Total assets
Net assets¥1,033,310
259,031¥1,017,130
324,386¥1,007,521
331,005¥ 978,343
310,809¥¥Yen

Per share amounts
Net income—basic
Net income—diluted

¥

26.28
26.28

¥

76.68
76.68

96.12
96.12

55.50
55.50

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201079

Consolidated Balance Sheets
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
December 31, 2009 and 2010

Thousands of
U.S. dollars (Note 9)

Operating Performance

Millions of yen

2009

2010

2010

ASSETS

Overview of Operations

Special Feature

Message from the Management

Current assets:
Cash and deposits in banks¥137,328¥205,362$ 2,520,088

Trade notes and accounts receivable (Notes 9 (2) and 9 (7))

201,684

183,7112,254,399

Merchandise and finished goods (Note 9 (2))

147,380

136,308

1,672,696

Work-in-process (Note 9 (2))

42,74637,423459,234

Raw materials and supplies (Note 9 (2))

33,401

39,903

489,667

Deferred tax assets

3,276

—

—

Others (Note 9 (2))

63,273

43,822537,759

Less: Allowance for doubtful receivables(8,291)(7,503)(92,073)

620,800

639,028

7,841,797

Buildings and structures (net) (Notes 9 (1) and 9 (2))

94,743

83,6301,026,261

Machinery and transportation equipment (net) (Notes 9 (1) and 9 (2))

76,11465,610805,129

Land (Notes 9 (2) and 9 (3))

73,82972,486

889,508

Construction in progress (Note 9 (2))

13,444

12,658155,332

Others (net) (Notes 9 (1) and 9 (2))

17,424

15,935

195,545

Total tangible fixed assets

275,556

250,320

3,071,788

4,802

4,247

52,117

Investment securities (Notes 9 (2) and 9 (6))

38,13735,316433,378

Long-term loans receivable (Note 9 (2))

32,39037,034454,461

Deferred tax assets

5,707

—

—

Others (Notes 9 (2) and 9 (6))

10,987

13,868170,180

Less: Allowance for doubtful receivables(1,305)(1,473)(18,076)

Total investments and other assets

85,91784,745

1,039,944

366,276

339,314

4,163,873¥987,077¥978,343$12,005,682

Total current assets
Fixed assets:

Corporate Information

CSR

Tangible fixed assets:

Intangible fixed assets

Financial Section

Investments and other assets:

Total fixed assets
Total assets
See accompanying notes to consolidated financial statements.

80

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

2009

2010

Operating Performance

Thousands of
U.S. dollars (Note 9)

Millions of yen

2010

LIABILITIESCurrent liabilities:
Short-term loans (Note 9 (2))
Current portion of long-term debt
Accrued expenses
Income taxes payable
Accrued bonuses
Accrued warranty costs
OthersTotal current liabilities¥ 125,809
35,45557,576
—
8,282
8,800
28,356
1,083
99,765365,131$ 1,543,858
435,084
706,541—
101,632
107,989
347,969
13,2901,224,261
4,480,685

281,898
7,024
34,748156
24,715
1,183
407
7,978
358,111
737,810229,410
7,009
35,423—
20,882
—
1,529
8,147
302,401
667,533

2,815,192
86,011
434,691—
256,252—
18,763
99,9753,710,897
8,191,594

48,34260,824
180,880(677)
289,369

85,666
98,147
199,190(681)
382,323

1,051,246
1,204,405
2,444,349(8,357)
4,691,655

4,039
10,208(91,220)(76,971)2,719
10,186(120,977)(108,070)

33,366
124,997(1,484,563)(1,326,175)

72
36,796249,266¥987,077102
36,454
310,809¥ 978,343

1,252
447,3433,814,075$12,005,682

Special Feature

Other provisions¥110,147
87,57430,47049,3282,480
8,052
22,403926
68,313379,698

Message from the Management

Notes and accounts payable (Note 9 (7))

Long-term liabilities:
Deferred tax liabilities on unrealized revaluation gain on land (Note 9 (3))
Accrued employees’ retirement benefits
Accrued retirement benefits for Directors and Corporate Auditors
Accrual for product liabilities
Accrual for motorcycle recycling costs
Other provisions
Others (Note 9 (2))
Total liabilities

CSR

Total long-term liabilities

Overview of Operations

Long-term debt (Note 9 (2))

NET ASSETS
Corporate Information

Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

Financial Section

Valuation and translation adjustments:
Unrealized holding gain on other securities
Unrealized revaluation gain on land (Note 9 (3))
Foreign currency translation adjustments
Total valuation and translation adjustments
Share warrants
Minority interests
Total net assets
Total liabilities and net assets
See accompanying notes to consolidated financial statements.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201081

Consolidated Statements of Income
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Thousands of
U.S. dollars (Note 9)

Operating Performance

Millions of yen

2009

2010

2010

¥1,153,642¥1,294,131$15,880,857

951,350

998,565

12,253,835

202,292

295,565

3,627,009

264,872

244,256

2,997,374(62,580)

51,308629,623

Interest income

8,367

8,734

107,179

Dividend income

532

676

8,295

1,911

2,516

30,875Net sales
Cost of sales (Notes 10 (1) and 10 (3))

Message from the Management

Gross profit
Selling, general and administrative expenses (Notes 10 (2) and 10 (3))
Operating income (loss)
Non-operating income:Equity in earnings of affiliates

—

4,072

49,96912,443

13,071

160,400

23,25529,071

356,743

9,984

8,023

98,454

Early retirement benefit expenses

35

—

—

Sales finance-related expenses

1,378

—

—

Loss on revaluation of sales finance assets

3,056

321

3,939

Foreign exchange loss

2,559

—

—

Others

12,001

5,892

72,303Special Feature

Foreign exchange gain
OthersTotal non-operating income
Non-operating expenses:

Overview of Operations

Interest expense

Total non-operating expenses
CSR

Ordinary income (loss)

29,015

14,238

174,721(68,340)

66,142

811,658

367

544

6,676

4

34

417

—

106

1,301

372

685

8,406

Extraordinary profits:
Gain on sale of fixed assets (Note 10 (4))
Gain on sale of investment securities

Corporate Information

Gain on transfer of businessTotal extraordinary profits
Extraordinary losses:

531

175

2,148

Loss on disposal of fixed assets (Note 10 (6))

1,186

1,038

12,738

Impairment loss on fixed assets (Note 10 (7))

239

6,628

81,335

Loss on sale of investment securities

15

3

37

Loss on cancellation of lease contracts

—

34

417

Financial Section

Loss on sale of fixed assets (Note 10 (5))

103,729——

105,701

7,879

96,687(173,669)

58,947723,365

Current

14,114

31,671

388,649

Refund(13,553)——

Deferred

38,697126

1,546
390,207

Business structure improvement expenses (Note 10 (7))
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes:

39,25831,798

Minority interests

3,220

8,849

Net income (loss)¥ (216,148)

Total income taxes

See accompanying notes to consolidated financial statements.

82

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010¥

18,300108,590$

224,567

Consolidated Statements of Changes in Net Assets
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

2009

2010

Operating Performance

Thousands of
U.S. dollars (Note 9)

Millions of yen

2010

Shareholders’ equity
Common stock:¥ 48,342$ 593,226—

37,323458,007—37,323458,007

48,34285,666

1,051,246

60,82460,824746,398

Issuance of new stocks—

37,323458,007

Disposal of treasury stock

(0)

0

0

(0)

37,323458,00760,824

98,1471,204,405

392,025

180,880

2,219,659

(609)

—

—

7,045

21

258

Message from the Management¥ 48,342

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

Total of changes in items during the period
Balance at the end of current period

Special Feature

Changes in items during the period:

Overview of Operations

Retained earnings:
Balance at the end of previous period
Effect of changes in accounting policies applied to foreign subsidiaries
Changes in items during the period:
Reversal of revaluation reserve on land

(1,432)——(216,148)

18,300224,567

Dividends from surplus
Net income (loss)

(12)

(147)

18,309224,678

180,880

199,1902,444,349

(181)

(677)

(8,308)Acquisition of treasury stock

(497)

(3)

(37)

Disposal of treasury stock

0

0

0

Total of changes in items during the period
Balance at the end of current period

CSR—(210,535)

Increase in consolidated subsidiaries

Treasury stock:
Corporate Information

Balance at the end of previous period
Changes in items during the period:(496)

Total of changes in items during the period

¥

(677)

(3)
¥

(681)

(37)
$

(8,357)

Financial Section

Balance at the end of current period
See accompanying notes to consolidated financial statements.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201083

Consolidated Statements of Changes in Net Assets
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Thousands of
U.S. dollars (Note 9)

Operating Performance

Millions of yen

2009

2010

2010

Total shareholders’ equity:
Balance at the end of previous period

Message from the Management

Effect of changes in accounting policies applied to foreign subsidiaries¥ 501,011¥ 289,369$ 3,550,976

(609)

—

—

—

74,647916,027

7,045

21

258

Changes in items during the period:
Issuance of new stocks
Reversal of revaluation reserve on land

(1,432)——(216,148)

18,300224,567

—

(12)

(147)

Acquisition of treasury stock

(497)

(3)

(37)

Disposal of treasury stock

0

0

0

Dividends from surplus
Net income (loss)

Special Feature

Increase in consolidated subsidiaries(211,032)

92,9531,140,668

289,369

382,323

4,691,655

100

4,039

49,564

Net changes in items other than shareholders’ equity

3,939(1,320)(16,198)

Total of changes in items during the period

3,939(1,320)(16,198)

4,039

2,719

33,366

1,992

—

—

Net changes in items other than shareholders’ equity(1,992)——

Total of changes in items during the period(1,992)

—

—

—

—

—

17,254

10,208125,267

Net changes in items other than shareholders’ equity(7,045)

(21)

(258)

Total of changes in items during the period(7,045)
10,208(21)
10,186(258)(124,997)(125,791)(91,220)(1,119,401)

34,57034,570(29,757)(29,757)¥(120,977)(365,161)(365,161)$(1,484,563)

Total of changes in items during the period
Balance at the end of current period

Overview of Operations

Valuation and translation adjustments
Unrealized holding gain on other securities:
Balance at the end of previous period
Changes in items during the period:

Balance at the end of current period
CSR

Deferred gains or losses on hedges:
Balance at the end of previous period

Corporate Information

Changes in items during the period:

Balance at the end of current period
Unrealized revaluation gain on land:
Balance at the end of previous period

Financial Section

Changes in items during the period:

Balance at the end of current period
Foreign currency translation adjustments:
Balance at the end of previous period
Changes in items during the period:
Net changes in items other than shareholders’ equity
Total of changes in items during the period
Balance at the end of current period
See accompanying notes to consolidated financial statements.

84

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

¥ (91,220)

2009

2010

2010

¥(106,443)¥ (76,971)$ (944,545)

29,471(31,099)(381,630)

Operating Performance

Thousands of
U.S. dollars (Note 9)

Millions of yen

Total valuation and translation adjustments:
Balance at the end of previous period
Changes in items during the period:

29,471(31,099)(381,630)(76,971)(108,070)(1,326,175)

30

72

884

Net changes in items other than shareholders’ equity

42

30

368

Total of changes in items during the period

42

30

368

72

102

1,252

33,88536,796

451,540

(57)

—

—

Net changes in items other than shareholders’ equity

2,969

(342)

(4,197)

Total of changes in items during the period

2,969

(342)

(4,197)36,79636,454447,343

428,483

249,266

3,058,854

(667)

—

—

—

74,647916,027

Total of changes in items during the period
Balance at the end of current period

Message from the Management

Net changes in items other than shareholders’ equity

Share warrants
Balance at the end of previous period
Changes in items during the period:

Special Feature

Balance at the end of current period
Minority interests
Balance at the end of previous period

Overview of Operations

Effect of changes in accounting policies applied to foreign subsidiaries
Changes in items during the period:

Balance at the end of current period
Total net assets
Balance at the end of previous period

CSR

Effect of changes in accounting policies applied to foreign subsidiaries
Changes in items during the period:
Issuance of new stocks

7,045

21

258

Dividends from surplus(1,432)——(216,148)

18,300224,567

—

(12)

(147)

(497)

(3)

(37)

Net income (loss)
Increase in consolidated subsidiaries
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

32,483(178,549)(31,410)61,543¥ 310,809(385,446)
755,221$ 3,814,075¥ 249,266

Financial Section

Net changes in items other than shareholders’ equity

Corporate Information

Reversal of revaluation reserve on land

See accompanying notes to consolidated financial statements.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201085

Consolidated Statements of Cash Flows
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Thousands of
U.S. dollars (Note 9)

Operating Performance

Millions of yen

2009

Financial Section

Corporate Information

CSR

Overview of Operations

Special Feature

Message from the Management

Cash flows from operating activities:
Income (loss) before income taxes and minority interests
Depreciation expenses
Impairment loss on fixed assets
Business structure improvement expenses (Note 12 (2))
Gain on transfer of business
Increase in allowance for doubtful receivables
Increase in accrued employees’ retirement benefits
Increase (decrease) in accrual for product liabilities
Interest and dividend income
Interest expense
Foreign exchange loss
Equity in earnings of affiliates
Loss (gain) on sale of fixed assets
Loss on disposal of fixed assets
Loss (gain) on sale of investment securities
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in inventories(Decrease) increase in notes and accounts payable
OthersSubtotalInterest and dividends received
Interest paid
Income taxes paid (Note 12 (3))
Net cash provided by operating activities
Cash flows from investing activities:
Increase in time deposits
Decrease in time deposits
Payments for purchase of fixed assets
Proceeds from sales of fixed assets
Payments for purchase of investment securities
Proceeds from sales of investment securities
Payments for long-term loans receivable
Proceeds from collections of long-term loans receivable
Proceeds from transfer of business
OthersNet cash used in investing activities
Cash flows from financing activities:
Decrease in short-term borrowing
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from stock issuance to minority shareholders
Redemption of bonds
Proceeds from issuance of common stock
Cash dividends paid
Cash dividends paid to minority shareholders
Purchase of treasury stock
OthersNet cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of the period (Note 12 (1))
See accompanying notes to consolidated financial statements.

86

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

2010

2010

¥(173,669)
53,701
239
82,819
—
2,407
2,799
8,271
(8,900)9,984
153(1,911)
163
1,186
10
61,028116,810(55,858)(18,617)80,618
9,955(11,125)(5,351)
74,096¥ 58,947
36,594
6,628
—
(106)
263
1,513
(2,165)(9,410)8,023—(2,516)
(369)
1,038
(30)
(6,774)(8,394)
22,377
6,160
111,779
11,213(8,613)(9,848)104,531$ 723,365
449,061
81,335—(1,301)
3,227
18,567(26,568)(115,474)
98,454—(30,875)(4,528)12,738(368)(83,127)(103,007)
274,598
75,592
1,371,690
137,600(105,694)(120,849)
1,282,746(1,042)484(47,786)
7,187
(0)
60
(3,972)204—(421)(45,285)(3,252)
1,959(31,867)
2,048
(3)
51
(4,437)971
250(3,352)(37,632)(39,907)
24,040(391,054)
25,132(37)
626(54,448)
11,916
3,068(41,134)(461,799)(215,013)
209,343(21,807)16(3)—(1,432)(2,011)(496)(617)(32,022)
6,066
2,854
134,364—¥ 137,219(45,711)21,719(38,473)——
74,647—(6,355)
(3)
(526)
5,296
(5,605)66,590137,219
68¥203,878(560,940)
266,523(472,119)——
916,027—(77,985)(37)(6,455)64,990(68,781)817,155
1,683,875
834$2,501,878

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

1. Basis of Presentation
Operating Performance

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 Exchange Act,
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.

Message from the Management

Yamaha Motor Co., Ltd. (The “Company”) and its domestic subsidiaries maintain their accounting records and prepare their financial statements in accordance with accounting principles generally
accepted in Japan, and its foreign subsidiaries maintain theirbooks of account in conformity with those of their countries of
domicile.
The accompanying consolidated financial statements havebeen prepared in accordance with accounting principles generally
accepted in Japan, which are different in certain respects from the
2. Scope of Consolidation

Domestic subsidiaries T.C. Co., Ltd., Yamaha Boating System Co.,
Ltd., and Yamaha Boating Create Co., Ltd., were liquidated andexcluded from consolidation. Yamaha Motor Sanayi ve Ticaret
Limited Sirketi, an overseas subsidiary, acquired greater significance and is now included in the 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., wereindividually insignificant to the Company’s consolidated financial
statements, and were not significant in the aggregate.
All shares, including those held by the Company, in overseas
subsidiary TYM Marketing Co., Ltd., were sold and the company
was removed from the scope of consolidation.

Special Feature
Overview of Operations

Number of consolidated subsidiaries: 104
Number of non-consolidated subsidiaries: 11
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 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., and Yamaha Motor do Brasil Ltda.

3. Scope of Application of Equity Method of Accounting
Four non-consolidated subsidiaries—including PT. Melco
Indonesia, and two affiliates—including Y2 Marine ManufacturingCo., Ltd.—were individually insignificant to the Company’s consolidated net income or loss, consolidated retained earnings andother consolidated financial indexes, and were not significant in theaggregate. Therefore, the Company’s investments in these companies were stated at cost, instead of being accounted for by theequity method of accounting.

CSR

Number of non-consolidated subsidiaries accounted for by
the equity method of accounting: 7
HL Yamaha Motor Research Centre Sdn. Bhd. and 6 othersubsidiaries
Number of affiliates accounted for by the equity method of
accounting: 26
Chongqing Jianshe Yamaha Motor Co., Ltd. and 25 otheraffiliates

Corporate Information

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.
5. Accounting Standards

Financial Section(1) Asset Valuation
1) Securities
Other securities
Marketable securities classified as “other” securities arecarried at fair value, based on market prices as of the balance sheet date. (Any changes in unrealized holding gainor loss, net of the applicable income taxes, are included
directly in net assets. The cost of securities sold isdetermined by the moving 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 the average method. (Values stated in the balance sheet are computed
using the write-down of book value due to lower profitability)

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201087

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Overview of Operations

Special Feature

Message from the Management

Operating Performance(2) Depreciation and Amortization of Assets
1) Tangible fixed assets (except for leased assets)
Depreciation of tangible fixed assets is computed primarily by
the declining-balance method.
2) Intangible fixed assets (except for leased assets)
Amortization of intangible fixed assets is computed by thestraight-line method.
Amortization of capitalized software for internal use is computed by the straight-line method over the software’s estimateduseful 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 was priorto December 31, 2008, are computed based on an
accounting method similar to the method for ordinary rental
transactions.

Financial Section

Corporate Information

CSR(3) Significant Accruals
1) Allowance for doubtful receivables
In order to evaluate accounts receivable, and loans and otherequivalents, an allowance for doubtful receivables is provided
at an amount determined based on the historical experience ofbad debt with respect to ordinary receivables, plus an estimateof uncollectible amounts determined by reference to specificdoubtful receivables from customers who are experiencing
financial difficulties.
2) Accrued bonuses
Accrued bonuses are stated at an estimated amount of thebonuses to be paid to employees, and to personnel working
concurrently as Directors, based on their services for the current fiscal period.
3) Accrued bonuses for Directors
Accrued bonuses are stated at an estimated amount of thebonuses to be paid to Directors, based on their services for thecurrent fiscal period.
4) Accrued warranty costs
Accrued warranty costs are provided to cover after-sale service
expenses anticipated to be incurred during the warranty periods of products sold, as well as expenses associated with thequality of products sold, at a specifically estimated 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 costs in the past years and sales
during the warranty period.

88

YAMAHA Motor Co., Ltd. ⎜ Annual Report 20105) Accrued employees’ retirement benefits
Accrued employees’ retirement benefits are provided mainly at
an amount, deemed generated on December 31, 2010, calculated based on the retirement benefit obligation and the fairvalue of the pension plan assets as of the balance sheet date,as adjusted for unrecognized actuarial gain or loss and unrecognized 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 the straightline method, over a period, 10 years, which is shorter than the
average remaining years of service of the employees.
(Changes in accounting policies)
Effective from the fiscal year ended December 31, 2010, theCompany has applied Partial Amendments to AccountingStandard for Retirement Benefits (Part 3) (ASBJ Statement
No. 19, issued on July 31, 2008).
This change has no impact on the consolidated statements
of income for the fiscal year ended December 31, 2010.
6) Accrued retirement benefits for Directors and Corporate
Auditors
Accrued retirement benefits for Directors and Corporate
Auditors are provided based on the amount payable as of thebalance sheet date, in accordance with internal regulations of
the Company.
7) Accrual for product liabilities
An accrual for product liabilities is provided, at an estimatedamount of payments based on the actual results in past years,
for liabilities that are not covered by product liability insurance.
8) Accrual for motorcycle recycling costs
An accrual for motorcycle recycling costs is provided at an
estimated amount based on actual sales.
(4) Amortization of Goodwill and Negative 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 a period of 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 be withdrawn when needed, and short-term investments with a maturityof less than three months from the date of acquisition that aremarketable 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
Operating Performance

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¥81.49 = U.S.$1.00, the approximate rate of exchange in effect at
December 31, 2010.

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.

Message from the Management

7. Changes in Accounting Principles and Procedures
December 26, 2008), Revised Accounting Standard for Business
Divestitures (ASBJ Statement No. 7; December 26, 2008),
Revised Accounting Standard for Equity Method of Accounting forInvestments (ASBJ Statement No. 16; December 26, 2008), andRevised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures (ASBJ
Statement No. 10; December 26, 2008).

Special Feature(Application of “Accounting Standards for Business Combinations
and Related Matters,” etc.)
The Company has applied the following accounting standards:
Accounting Standard for Business Combinations (ASBJ Statement No. 21; December 26, 2008), Accounting Standard forConsolidated Financial Statements (ASBJ Statement No. 22;
December 26, 2008), Partial Amendments to Accounting Standard
for Research and Development Costs (ASBJ Statement No. 23;
8. Changes in Presentation Methods

4) “Accrued retirement benefits for Directors and Corporate
Auditors” (¥76 million at the end of the fiscal year ended
December 31, 2010), which until the previous fiscal year wererecorded as a separate item under “Long-term liabilities,” have(2) Consolidated Statements of Income
1) “Early retirement benefit expenses” (¥11 million for the fiscal
year ended December 31, 2010), which until the previous fiscal
year were recorded as a separate item under “Non-operating
expenses,” have been included in “Others” under “Nonoperating expenses” since the amount is not more than 10% of
total non-operating expenses.

Corporate Information

3) “Accrued expenses” (¥34,334 million at the end of the fiscal
year ended December 31, 2010), which until the previous fiscal
year were recorded as a separate item under “Current liabilities,” have been included in “Others” under “Current liabilities”
since the amount is not more than 5% of total liabilities and net
assets.

5) “Accrual for motorcycle recycling costs” (¥1,228 million at
the end of the fiscal year ended December 31, 2010), which
until the previous fiscal year were recorded as a separate item
under “Long-term liabilities,” have been included in “Other
provisions” under “Long-term liabilities” since the amount is not
more than 1% of total liabilities and net assets.

CSR

2) “Deferred tax assets” (¥3,797 million at the end of the fiscal
year ended December 31, 2010), which until the previous fiscal
year were recorded as a separate item under “Investments
and other assets,” have been included in “Others” under“Investments and other assets” since the amount is not morethan 1% of total assets.

been included in “Other provisions” under “Long-term liabilities”
since the amount is not more than 1% of total liabilities and net
assets.

Overview of Operations(1) Consolidated Balance Sheets
1) “Deferred tax assets” (¥3,669 million at the end of the fiscal
year ended December 31, 2010), which until the previous fiscal
year were recorded as a separate item under “Current assets,”have been included in “Others” under “Current assets” since
the amount is not more than 1% of total assets.

2) “Refund” of income taxes (¥(628) million for the fiscal year
ended December 31, 2010), which until the previous fiscal
year were recorded as a separate item, have been included
in “Current” of income taxes since the amount has become
insignificant.

Financial Section

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201089

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance

9. Consolidated Balance Sheets
Information regarding consolidated balance sheets at December 31, 2009 and 2010 is as follows.
(1) Accumulated depreciation of tangible fixed assets
Thousands of
U.S. dollars

Millions of yen

Message from the Management2009¥516,4782010¥515,8762010$6,330,544(2) Pledged assets and secured liabilities
Thousands of
U.S. dollars

Millions of yen

Corporate Information

CSR

Overview of Operations

Special Feature

2009

Financial Section

2010¥ 66,815
2,152
464
2,124
9,772
182
8,758
1,528
1,130
327
27
23,994
1,050¥118,328¥ 61,144
648
783
3,473
9,842
166
9,229
44
295
309
38
21,2762,486¥109,739$ 750,325
7,952
9,609
42,619120,776
2,037
113,253
540
3,620
3,792
466
261,087
30,507$1,346,656

Secured liabilities:
Short-term borrowing
Long-term debt
Long-term liabilities—otherTotal¥ 41,837
24,0391,476¥ 67,352¥ 10,656
26,752
1,233¥ 38,643$ 130,765
328,286
15,131$ 474,205(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 on unrealized revaluation gain on land”
and the remaining balance has been presented under net
assets as “Unrealized revaluation gain on land” in theaccompanying consolidated balance sheets.
a) Date of revaluation March 31, 2000b) Method of revaluation
Under Article 2-4 of the Ordinance Implementing the Law
Concerning Land Revaluation (No. 119 of the 1998 Cabinet

90

2010

Pledged assets:
Trade notes and accounts receivable
Merchandise and finished goods
Work-in-process
Raw materials and supplies
Other current assets
Buildings and structures (net)
Machinery and transportation equipment (net)Land
Construction in progress
Tangible fixed assets—other (net)
Investment securities
Long-term loans receivable
Investments and other assets—other
Total

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Order, promulgated on March 31, 1998), the land price forthe revaluation was determined based on the official noticeprices assessed and published by the Chief Officer of 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 2009 and 2010 was below its bookvalue by ¥5,272 million and ¥6,287 million ($77,151
thousand), respectively.

Thousands of
U.S. dollars

Millions of yen

2009

2010

2010

¥316

¥293

$3,596

65
25
¥408

57
15
¥365

699
184
$4,479Message from the Management

Subsidiaries or affiliates:
Amagasaki Woodland of Health Co., Ltd.
Other companies:
Enrum Marina Muroran Inc.
Marina Kawage Co., Ltd.
Total

Operating Performance(4) Guarantee obligations
Guarantees are given for the following companies’ debt from financial institutions.

Guarantee obligations described above include amounts arising from acts resembling guarantees: ¥342 million and ¥308 million($3,780 thousand) at the end of fiscal 2009 and 2010, respectively.
(5) Discounts on trade notes receivable

2009

2010
¥1,117¥1,765Special Feature

Thousands of
U.S. dollars

Millions of yen

2010$21,659(6) Investment securities and investment in partnerships with non-consolidated subsidiaries and affiliates are as follows.

Investment securities (stock)
Investment in partnerships

2010¥17,825756

the following notes maturing on the fiscal year-end date areincluded in the balance as of the fiscal year-end.
Thousands of
U.S. dollars

Millions of yen

2009
Notes receivable-trade
Notes payable-trade2010$218,738
9,277

2010
¥326
259

CSR

(7) Notes maturing at the end of the consolidated fiscal year weresettled on the date of clearing. As the end of the current consolidated fiscal year fell on a holiday for financial institutions,2009¥18,644426

Overview of Operations

Thousands of
U.S. dollars

Millions of yen¥1,025260

2010$12,578
3,191
Corporate Information

10. Consolidated Statements of Income
Information regarding consolidated statements of income for the years ended December 31, 2009 and 2010 is as follows.
(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

2009¥10,3622010¥(4,281)

Financial Section

Thousands of
U.S. dollars

Millions of yen

2010$(52,534)

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201091

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance(2) Breakdown of major selling, general and administrative expenses
Millions of yen

2009¥21,910
18,871
29,887
6,768
2,533
13,041
62
73,5602,693
3,251

Special Feature

Message from the Management

Advertising expenses
Sales promotion expenses
Transportation expenses
Provision for accrued warranty costs
Provision for allowance for doubtful receivables
Provision for accrual for product liabilities
Provision for accrual for motorcycle recycling costs
Salaries
Provision for accrued bonuses
Provision for accrued employees’ retirement benefits

Millions of yen

2010
30,504
15,476
1,376
71,392
2,160
4,446

Overview of Operations

Transportation expenses
Provision for accrued warranty costs
Provision for allowance for doubtful receivables
Salaries
Provision for accrued bonuses
Provision for accrued employees’ retirement benefits

Thousands of
U.S. dollars

2010
374,328
189,913
16,886876,083
26,50654,559(3) Research and development expenses included in selling, general and administrative expenses and manufacturing costs
Thousands of
U.S. dollars

Millions of yen

2010¥55,1832010$677,175

CSR

2009¥62,066(4) Breakdown of gain on sale of fixed assets

Thousands of
U.S. dollars

Millions of yen

2009
Corporate Information

Buildings and structures (net)
Machinery and transportation equipment (net)Others (net)
Total

2010
¥ 11
319
36
¥367

2010
¥ 76
434
33
¥544

$ 933
5,326
405
$6,676(5) Breakdown of loss on sale of fixed assets
Millions of yen
Financial Section

2009
¥ 97
302
14
116
¥531

Buildings and structures (net)
Machinery and transportation equipment (net)Land
Others (net)
Total

Machinery and transportation equipment (net)Others (net)
Total

92

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Millions of yen

Thousands of
U.S. dollars

2010

2010
156
18
¥175

1,914
221
$2,148

(6) Breakdown of loss on disposal of fixed assets

2009

2010
¥ 300
328
408
¥1,0382010$ 3,681
4,025
5,007$12,738

Message from the Management

¥ 283
665
238
¥1,186

Buildings and structures (net)
Machinery and transportation equipment (net)Others (net)Total

Operating Performance

Thousands of
U.S. dollars

Millions of yen(7) Details concerning impairment loss included in business structure improvement expenses
Fiscal year ended December 31, 2009
1) Summary of asset groups for which impairment loss has been identified

Special Feature

Impairment loss
Millions of yen
Use

Location

Power products

Kakegawa City (Shizuoka,
Japan), U.S.A., other

Other products

Iwata City (Shizuoka, Japan),other

Idle assets

Hamamatsu City (Shizuoka,
Japan), other2) 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.
3) Background to the recognition of impairment losses
Impairment losses recognized in the motorcycle, marine,

Financial Section

Hamamatsu City (Shizuoka,
Japan), U.S.A., France, other

Corporate Information

Marine products

2009¥ 8,701
25,804
12,242
5,586
61¥52,398¥ 1,004
9,788
29
624
223
149
¥11,819¥ 1,116
5,914
4,795
1,315
944
3
¥14,091
¥ 406
3,310
54
274
6
¥ 4,052
¥ 100
408
121
21
37
6
¥ 697

CSR

Iwata City (Shizuoka, Japan),
U.S.A., Brazil, France, Italy,
Hungary, other

Buildings and structures
Machinery and transportation equipment
Land
OthersIntangible fixed assets
Total
Buildings and structures
Machinery and transportation equipment
Land
Construction in progress
OthersIntangible fixed assets
Total
Buildings and structures
Machinery and transportation equipment
Land
Construction in progress
OthersIntangible fixed assets
Total
Buildings and structures
Machinery and transportation equipment
Land
OthersIntangible fixed assets
Total
Buildings and structures
Machinery and transportation equipment
Land
Construction in progress
OthersIntangible fixed assets
Total

Overview of Operations

Motorcycles

Item

power product and other product business directly correlate to the significant deterioration of the market in thesesegments. Impairment losses were also identified amongcertain idle assets not serving business uses. Specifically,
losses were recognized for those idle assets whose market
prices have significantly declined from their book values.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201093

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance4) Computation of recoverable values
The recoverable value represents the utility value, computed using the discount rate of 4.0% (mainly based on the
future cash flows by each asset group); the estimated value

based on real-estate appraisal criteria; or the net salevalue, reasonably computed using the inheritance tax value
determined by land assessment, whichever is greater.

Fiscal year ended December 31, 2010

Message from the Management

1) Summary of asset groups for which impairment loss has been identified
Impairment loss
Millions of yen
Use

Location

2010

Item

¥1,369
4,039
134
413
¥5,957
¥ 309
6
298
56
¥ 670

Overview of Operations

Special Feature

Buildings and structures
Machinery and transportation equipment
Motorcycles India, other
OthersIntangible fixed assets
Total
Buildings and structures
Kakegawa City
Machinery and transportation equipment
Idle assets(Shizuoka, Japan), Land
Othersother
Total2) 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.

CSR3) Background to the recognition of impairment losses
Since a delay in profitability recovery is forecasted as aresult of a review of future business plans conducted in thefiscal year ended December 31, 2010, principally at theconsolidated subsidiary in India, impairment loss wasThousands of
U.S. dollars

2010$16,800
49,564
1,644
5,068$73,101$ 3,792
74
3,657
687
$ 8,222

recognized in the motorcycle business. Impairment losses
were 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.
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.

Corporate Information

11. Consolidated Statements of Changes in Net Assets
Information regarding consolidated statements of changes in net assets for the years ended December 31, 2009 and 2010 is as follows.
Fiscal year ended December 31, 2009
(1) Type and number of outstanding shares
SharesFinancial Section

Number of shares asof December 31, 2008

Common stock

286,507,784

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, 200900286,507,784

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, 2009

524,176

485

658,149(2) Type and number of treasury stocks
SharesNumber of shares asof December 31, 2008

Common stock

134,458

Note The reasons for the increase or decrease in the number of shares are as follows:• Increase due to the share purchase requested under the Article 797 (1) of the Company Law:
520,000 shares*• Increase due to the purchase of less-than-one-unit shares from shareholders:
2,713 shares• Increase due to the acquisition of subsidiaries and affiliates accounted for by the equity method:
1,463 shares• Decrease due to requests for additional purchase of less-than-one-unit shares by shareholders:
485 shares* This increase resulted from a share purchase request from shareholders dissenting against the absorption-type merger of Yamaha Marine Co., Ltd.
(YMEC) on January 1, 2009.

94

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

(3) Share warrants and own share warrants

Yamaha MotorCo., Ltd.

Share warrants as
stock options Note
Total

—
—

—
—

—
—

—
—

Balance as ofDecember 31, 2009

Millions of yen

—
—

¥72
¥72

Message from the Management

Description of share
warrants

Number of shares issued by the exercise of share warrants (shares)
Increase during Decrease during
December 31,
the fiscal year
the fiscal year
December 31,
2008
under review
under review
2009Operating Performance

Classification

Type of shares
to be issued by
the exercise ofshare warrants

Note The exercise periods of the fourth and fifth share warrants are June 13, 2010 through June 12, 2014 and June 16, 2011 through June 15, 2015, respectively.
Thus, the first day of the exercise periods has not come as of the end of the fiscal year ended December 31, 2009.

(4) Dividends• Amount of dividends paid
Resolution

Type of share

Dividend per share

Millions of yen

Yen¥1,432¥5.00

Common stock

Record date

Effective date

December 31,
2008

March 26,
2009

Special Feature

Ordinary General Meeting of Shareholders
held on March 25, 2009

Total amount of dividends• Dividends whose record date falls in FY2009 and whose effective date falls in FY2010.
No related items.
Fiscal year ended December 31, 2010

Overview of Operations(1) Type and number of outstanding shares
SharesNumber of shares asof December 31, 2009

286,507,784

Common stock

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

63,250,000

0349,757,784

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, 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 issuance of new shares through public offering:• Increase due to issuance of new shares through third-party allocation:

CSR

55,000,000 shares
8,250,000 shares(2) Type and number of treasury stocks
Shares658,149

Common stock

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:

Corporate Information

Number of shares asof December 31, 2009

1,652 shares
1,124 shares
176 sharesClassification

Yamaha MotorCo., Ltd.

Description of share
warrants

Share warrants as
stock options Note
Total

Type of shares
to be issued by
the exercise ofshare warrants——

Number of shares issued by the exercise of share warrants (shares)
Increase during Decrease during
December 31, the fiscal year
the fiscal year
December 31,
2009
under review
under review
2010

—
—

—
—

—
—

—
—

Financial Section(3) Share warrants and own share warrants
Balance as ofDecember 31, 2010
Millionsof yenThousands of
U.S. dollars

¥102
¥102

$1,252$1,252

Note The exercise periods of the fifth and sixth share warrants 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.

(4) Dividends• Amount of dividends paid
No related items.
• Dividends whose record date falls in FY2010 and whose effective date falls in FY2011.
No related items.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201095

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance

12. Consolidated Statements of Cash Flows
Information regarding consolidated statements of cash flows for the years ended December 31, 2009 and 2010 is as follows.
(1) Reconciliation of “cash and cash equivalents” as of December 31, 2009 and 2010 to amounts in the various accounts appearing in theaccompanying consolidated balance sheets
Thousands of
U.S. dollars

Message from the Management

Millions of yen

Cash and deposits in banks
Time deposits with maturity in excess of three months
Other current assets
Cash and cash equivalents

2009¥137,328(721)
612¥137,2192010¥205,362(2,016)532¥203,8782010$2,520,088(24,739)6,528$2,501,878

Special Feature(2) Business structure improvement expenses posted in the consolidated statement of cash flows for the fiscal year ended December 31,
2009 were impairment losses, which were included in the business structure improvement expenses posted in the consolidated
statement of income for fiscal 2009.
(3) Income tax payments and refunds include a ¥13,835 million ($169,775 thousand) refund on transactions in prior fiscal years at
consolidated subsidiary Yamaha Motor Corporation, U.S.A.

Overview of Operations

13. Lease Information
Information regarding leases for the years ended December 31, 2009 and 2010 is as follows.

CSR

Fiscal year ended December 31, 2009
(1) Finance lease transactions (as a lessee)
Finance lease transactions which do not transfer ownership
1) Subject leased assets
Tangible fixed assets
Mainly vehicles

Corporate Information

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 prior to
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,
2009
Acquisition cost

Other (tools, furniture and fixtures)¥6,357

Millions of yen
Accumulated
depreciation Net book value¥5,536¥821

Financial Section

Acquisition costs of leased property were computed based on the inclusion of their interest portion, due to the lower ratio of thebalance for future minimum lease payments to the balance for tangible fixed assets at the end of the fiscal year.
b) Amounts equivalent to future minimum lease payments at December 31, 2009
Millions of yen

Payable within one year
Payable after one year
Total

¥ 471
349
¥ 821

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 tangible fixed assets at the end of the fiscal year.

96

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

c) Amounts equivalent to lease payments and depreciation
Operating Performance

Millions of yen

¥655
655

Lease payments
Depreciation

Message from the Managementd) 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¥1,412
3,420¥4,832

Payable within one year
Payable after one year
Total

Special Feature
Overview of Operations

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
Tangible fixed assets
Mainly vehicles
Those finance lease transactions which do not transfer
ownership, where the transaction start date was prior to
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.”

Acquisition cost

Other (tools, furniture and fixtures)¥5,351Millions of yen
Accumulated
depreciation Net book value¥5,019¥332

CSRa) Amounts equivalent to acquisition cost, accumulated depreciation and the net book value of leased property at December 31,
2010
Thousands of U.S. dollars
Accumulated
Acquisition cost depreciation Net book value$65,664$61,590$4,074
Corporate Information

Acquisition costs of leased property were computed based on the inclusion of their interest portion, due to the lower ratio of thebalance for future minimum lease payments to the balance for tangible fixed assets at the end of the fiscal year.
b) Amounts equivalent to future minimum lease payments at December 31, 2010
Millions of yen

¥178
153
¥332

$2,184
1,878$4,074

Financial Section

Payable within one year
Payable after one year
Total

Thousands of
U.S. dollars

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 tangible fixed assets at the end of the fiscal year.
c) Amounts equivalent to lease payments and depreciation
Millions of yen

Lease payments
Depreciation

¥427
427

Thousands of
U.S. dollars$5,2405,240d) 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.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201097

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance(2) Operating lease transactions
Future minimum lease payments for noncancellable operating lease transactions
Millions of yen

Message from the Management

Payable within one year
Payable after one year
Total

¥1,0192,779¥3,799Thousands of
U.S. dollars$12,505
34,102$46,619

14. Financial Instruments and Related Disclosure
Consolidated fiscal year ended December 31, 2010

Special Feature

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 bank borrowings.
Derivative transactions are used to mitigate the risks described
below and the group has no intention to engage in speculative
trading.

Financial Section

Corporate Information

CSR

Overview of Operations

2) Details of financial instruments and related risks
Trade notes and accounts receivable, 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, which are operating payables,
are mostly due within one year. Some of them are denominatedin foreign currency, reflecting imports of raw materials, etc.,
and exposed to risk of foreign currency exchange fluctuations.
However, they are continuously below the balance of accounts
receivable denominated in the same foreign currency.
Short-term borrowing and long-term debt are intended forworking capital, and some of them with variable interest rates are
exposed to risk of interest rate fluctuations.
Derivative transactions used by the Company are mainly foreignexchange forward contracts to mitigate risk of foreign currency
exchange fluctuations in connection with foreign currencydenominated operating receivables and payables, and interest rate
swap transactions to mitigate risk of fluctuations in interest paid on
the Company’s borrowings.
3) Risk management system for financial instruments(a) Management of credit risk (risks associated with the defaultsof customers)
The Company and its consolidated subsidiaries have theiradministrative sections in individual business divisions
periodically monitor main business partners with regard tooperating receivables and keep track of the due date andthe balance for each business partner, while trying to identify
doubtful receivables due to worsened financial conditions of
the business partners at an early stage and seek to reduce
their consequences.
In engaging in derivative transactions, the Company
enters into transaction only with financial institutions with ahigh credit rating in order to mitigate counterparty risk.

98

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010(b) Management of market risk (foreign currency exchange andinterest 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 currencydenominated operating receivables and payables, which
is identified for different currencies on a monthly basis.
Foreign exchange forward contracts, etc. are also used forforeign currency-denominated operating receivables, which
are certain to be generated as a result of scheduled exporttransactions. Additionally, the Company and some of its
consolidated subsidiaries use interest rate swap transactions to reduce risk of fluctuations in interest paid on theirborrowings.
The Company periodically monitors the market prices ofinvestment securities and the financial conditions of the issuers (business partners) and reviews its holding of investment
securities on an ongoing basis, taking relationships with thebusiness 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 inwhich the Company being unable to repay within the due
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(3) Investment securities(4) Long-term loans receivable
Allowance for doubtful receivables *1¥205,362¥—

177,816
16,469(34)—

40,233439,881
125,80935,45557,576
233,762452,604
344

4,618
4,583
—
—
—
4,351
4,351
—

$2,520,088
2,254,399(71,911)2,182,476
202,098
454,461(17,413)437,047
5,341,723
1,543,858
435,084
706,541
2,815,192
5,500,699
4,221$2,520,088$—

2,182,059
202,098(417)—

493,717
5,397,975
1,543,858
435,084
706,5412,868,597
5,554,105
4,221

56,67056,240———53,39353,393—Special Feature

Assets(5) Notes and accounts payable(6) Short-term borrowing(7) Current portion of long-term debt
(8) Long-term debt
Liabilities
Derivative transactions *2¥205,362
183,711(5,860)177,850
16,46937,034(1,419)35,615435,297
125,80935,45557,576229,410448,252
344

Thousands of U.S. dollars
Carrying amount
Fair value
Differences

Differences

Message from the Management(1) Cash and deposits in banks(2) Trade notes and accounts receivable
Allowance for doubtful receivables *1

Millions of yen
Fair value

Operating Performance

2. Fair value 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.)

Overview of Operations*1 Allowance for doubtful receivables are deducted from trade notes and accounts receivable and long-term loans receivable.
*2 Receivables and payables, which were derived from derivative transactions, are presented in net amount.
Notes 1 Calculation method of fair values of financial instruments and matters concerning marketable securities and derivative transactions
Assets:(1) Cash and deposits in banks
These assets are recorded using book values as the fair values are almost equal to the book values because of their short-term maturities.

CSR(2) Trade notes and accounts receivable
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 to credit
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, andfuture cash flows in each category are discounted at a rate in accordance with appropriate indices such as government bond yields.
(3) Investment securities
Investment securities are determined using the quoted price at the stock exchange. For information on securities classed by holding purpose, please refer to thenote “Marketable Securities.”

Corporate Information(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.

Financial Section

Liabilities:(5) Notes and accounts payable, (6) Short-term borrowing, (7) Current portion of long-term debt
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 debt
For long-term debt with variable rates, fair value is calculated based on book values, as they reflect market interest rates in the short run.
For long-term debt 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
For details on derivative transactions, refer to the note “Derivative Transactions.”

YAMAHA Motor Co., Ltd. ⎜ Annual Report 201099

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance

2 Financial instruments for which determining a market price is deemed extremely difficult
Millions of yen
Carrying value

Thousands of U.S. dollars
Carrying value¥18,847

Investment securities—Unlisted equity securities$231,280

The item above has no market price and the effort to pinpoint fair value is deemed extremely difficult so the item is excluded from (3) Investment securities in thepreceding table.

Message from the Management

3 Redemption schedule for monetary claims and held-to-maturity securities with maturity dates subsequent to the consolidated fiscal year-end
Millions of yen
1 to
5 to
5 years
10 years

1 yearor less
Cash and deposits in banks¥205,362

Trade notes and accounts receivable

183,157

Long-term loans receivable
Special Feature

Total

¥

More than
10 yearsThousands of U.S. dollars
1 to
5 to
5 years
10 years

1 yearor less

—

¥—

¥ —

$2,520,088

554

—

—

2,247,601

$

—

$ —

6,798

—

More than
10 years

$

—
—

—

36,84470

119—452,129

859

1,460

¥388,520¥37,399¥70¥119$4,767,702$458,940$859$1,460

4 Redemption schedule for long-term debt subsequent to the consolidated fiscal year-end
See “Fund Procurement Conditions.”

Overview of Operations(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 Guidance No. 19
Guidance, March 10, 2008).
15. Marketable Securities
Information regarding marketable securities for the years ended December 31, 2009 and 2010 is as follows.
Fiscal year ended December 31, 2009

CSR

(1) Other securities with fair value (as of December 31, 2009)

Type

Corporate Information

Securities whosecarrying value
exceeds theiracquisition cost

Financial Section

Securities whose
acquisition costexceeds theircarrying value(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

Millions of yen
Acquisition cost Carrying value Unrealized gain

¥10,084¥15,330¥5,245————
10,084¥ 3,624————
15,330¥ 3,078

—
—
—
—
5,245
¥ (545)

—
—
—
—
3,624
¥13,709

—
—
—
—
3,078
¥18,408

—
—
—
—
(545)
¥4,699Note The Company generally posts the entire amount of impairment loss on all securities whose fair value at the end of the fiscal year is less than 50% of theacquisition cost. For securities whose fair value at the end of the fiscal year decreases by 30 to 50% from their acquisition cost, the Company posts an
impairment loss when it is judged necessary, by examining the importance and recoverability of the amount in question.

100

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

(2) Other marketable securities sold during the fiscal year (January 1, 2009 through December 31, 2009)
Millions of yen
Total gains

Total losses

¥62

¥4

¥15

Operating Performance

Amount sold(3) Carrying value of securities whose fair value is not available (as of December 31, 2009)
Message from the Management

Millions of yen
Carrying value

Other securities:
Unlisted equity securities¥1,084

Fiscal year ended December 31, 2010

Type

¥14,253¥4,092$124,678$174,905$ 50,215————
10,160¥ 3,081————
14,253¥ 2,215

—
—
—
—
4,092
¥ (865)————
124,678$ 37,808————
174,905$ 27,181————
50,215$(10,615)

—
—
—
—
3,081
¥13,241

—
—
—
—
2,215
¥16,469

—
—
—
—
(865)
¥3,227————37,808$162,486————
27,181$202,098————(10,615)$ 39,600

Corporate Information¥10,160

CSR

Securities whose
acquisition costexceeds theircarrying value(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

Thousands of U.S. dollars
Acquisition cost Carrying value Unrealized gain

Overview of Operations

Securities whosecarrying value
exceeds theiracquisition cost

Millions of yen
Acquisition cost Carrying value Unrealized gain

Special Feature(1) Other securities with fair value (as of December 31, 2010)

Note 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)
Millions of yen
Total gains

Total losses

¥51

¥34

¥3

(3) Impaired marketable securities
For the fiscal year ended December 31, 2010, the Company
recorded impairment losses of ¥511 million ($6,271 thousand)on investment securities (¥477 million ($5,853 thousand) on
listed stock under other marketable securities and ¥31 million($380 thousand) on unlisted stocks and ¥1 million ($12thousand) on equity in affiliates).

Thousands of U.S. dollars
Amount soldTotal gains
Total losses

$626

$417

Financial Section

Amount sold

$37

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 2010101

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance

16. Derivative Transactions
Matters concerning the market value of transactions
Fiscal year ended December 31, 2009

Message from the Management

The Company changed the accounting method for derivative transactions from hedge accounting to the market value-based method since
the fiscal year ended December 31, 2009. The change was made in conjunction with a groupwide review of hedging policy and other factors.
Derivative financial instruments that do not apply for hedge accounting(1) Currency related
Transaction

Forward exchange contract
Sell:
USD
EUR
CAD
GBP
PLN
AUD
HUF
CZK
JPY
Buy:
USD
JPY
Total

Overview of Operations

Special Feature

Classification

Non-market
transactions

Contractual value

Millions of yen
Contractual value
over 1 year
Market value

Unrealized gain or loss

¥27,776
22,734
6,054
4,948
1,631
1,612
428
199
20

¥—
—
—
—
—
—
—
—
—

¥28,287
22,503
6,137
4,936
1,663
1,635
434
197
19

¥(511)
231
(83)
11
(31)
(23)
(6)
2
0

14,553863¥49,988——¥—

14,592875¥50,34639
12¥(358)

CSR

Note Market values are computed based on forward rates at the end of the fiscal year.

(2) Interest-rate related
Classification

Corporate Information

Non-market
transactions

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¥ 29,531
86,238¥115,770¥ 29,531
81,557¥111,089

Unrealized gain or loss¥(203)(662)¥(866)¥(203)(662)¥(866)

Note Market values are computed based on quotes from financial institutions, among other sources.

Financial Section(3) Other
Classification

Non-market transactions

Transaction

Other
Total

Contractual value¥183,020¥183,020

Millions of yen
Contractual value
over 1 year
Market value¥41,572¥41,572

Unrealized gain or loss

¥89
¥89

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.

102

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

¥89
¥89

Fiscal year ended December 31, 2010
Operating Performance

1. Derivative financial instruments that do not apply for hedge accounting(1) Currency related

¥—
—
—
—
—
—
—
—

¥ 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
¥1,164Contractual value

Thousands of U.S. dollars
Contractual value
over 1 year
Market value

Unrealized gain or loss

$628,310
154,362
31,05919,597
15,425
5,682
4,590
4,418

$—
—
—
—
—
—
—
—

$11,560
2,687
49
(74)
(98)
(25)
(37)
12

$11,560
2,687
49
(74)
(98)
(25)
(37)
12

133,391
92,085
13,634
2,945$621,426

—
—
—
—
$—

1,227
(1,460)442
0$14,284

1,227(1,460)442
0$14,284

Financial Section

Forward exchange contract
Sell:
USD
EUR
CAD
PLN
JPY
HUF
SGD
GBP
Buy:
USD
EUR
JPY
SEK
Total

¥51,201
12,579
2,531
1,597
1,257
463
374
360

Corporate Information

Transaction

Non-market
transactions

Unrealized gain or loss

CSR

Classification

Contractual value

Overview of Operations

Forward exchange contract
Sell:
USD
EUR
CAD
PLN
JPY
HUF
SGD
GBP
Buy:
USD
EUR
JPY
SEK
Total

Special Feature

Transaction

Non-market
transactions

Message from the Management

Classification

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
Classification

Non-market
transactions

Transaction

Interest-rate swap contract
Receipts fixed, payments floating
Receipts floating, payments fixed
Total

Contractual value¥ 35,738
92,881¥128,620

Millions of yen
Contractual value
over 1 year
Market value¥32,876
31,186¥64,042¥ (109)(1,101)¥(1,211)

Unrealized gain or loss

¥ (109)(1,101)¥(1,211)

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010103

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries

Operating PerformanceYears ended December 31, 2009 and 2010

Classification

Non-market
transactions

Transaction

Contractual value

Interest-rate swap contract
Receipts fixed, payments floating
Receipts floating, payments fixed
Total

Thousands of U.S. dollars
Contractual value
over 1 year
Market value$ 438,557
1,139,784$1,578,353$403,436
382,697$785,888

Unrealized gain or loss

$ (1,338)(13,511)$(14,861)$ (1,338)(13,511)$(14,861)

Message from the Management

Note Market values are computed based on quotes from financial institutions, among other sources.

(3) Other
Classification

Special Feature

Non-market transactions

Transaction

Classification

Non-market transactions

Contractual value¥134,760¥134,760

Other
Total

Transaction

Contractual value

Other
Total

$1,653,700$1,653,700

Millions of yen
Contractual value
over 1 year
Market value¥41,411¥41,411

Unrealized gain or loss

¥391
¥391

Thousands of U.S. dollars
Contractual value
over 1 year
Market value$508,173$508,173

¥391
¥391

Unrealized gain or loss

$4,798$4,798$4,798$4,798Overview of Operations

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 that apply for hedge accounting
No related items.
17. Retirement Benefit Plans

CSR

Information regarding retirement benefit plans for the years ended December 31, 2009 and 2010 is as follows.

Corporate Information(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 havedefinedcontribution pension plans, in addition to definedbenefit plans.

(2) Retirement benefit obligation and related items
Thousands of
U.S. dollars

Millions of yen

Financial Section

Retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Unrecognized actuarial gain or loss
Unrecognized prior service cost
Net retirement benefit obligation
Prepaid pension costAccrued retirement benefits

2009¥(149,076)
97,423(51,653)
18,644(1,512)(34,521)226¥ (34,748)

Note Certain of the Company’s subsidiaries adopt the simplified method to compute their retirement benefit obligation.

104

YAMAHA Motor Co., Ltd. ⎜ Annual Report 20102010¥(150,126)
97,130(52,996)
18,301(510)(35,204)218¥ (35,423)

2010$(1,842,263)
1,191,925(650,337)
224,580(6,258)(432,004)
2,675$ (434,691)

(3) Retirement benefit expenses and related items

2010¥ 6,552
3,558(2,964)
4,084
278¥11,5082010$ 80,403
43,662(36,373)
50,1173,411$141,220

Message from the Management2009¥ 7,014
3,630(2,671)
3,423(209)¥ 11,188

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain or loss
Amortization of prior service cost
Total

Operating Performance

Thousands of
U.S. dollars

Millions of yen

Special Feature

Notes 1 In addition to the retirement benefit expenses above, employees’ early retirement expenses amounting to ¥20,160 million as business structure improvement expenses of extraordinary losses in fiscal 2009, as well as incentives amounting to ¥35 million as early retirement benefit expenses of non-operating
expenses were registered separately in fiscal 2009. In addition to the aforementioned retirement benefit expenses, in fiscal 2010 the Company recorded¥11 million ($135 thousand) for special incentives and other payments related to the voluntary early retirement program offer presented to employees in2010 and ¥551 million ($6,762 thousand) in contributions to defined contribution pension plans.
2 In addition to the retirement benefit expenses above, contributions into defined-contribution plans amounting to ¥689 million were registered separately infiscal 2009.
3 Retirement benefit expenses of the Company’s consolidated subsidiaries, which were accounted for by the simplified method, were registered under theclassification “service cost” in the above table.

(4) Assumptions and policies adopted in the calculation of retirement benefit obligation
2010
Straight-line method
Mainly 2.0%
Mainly 3.0%
Mainly 10 years
Amortized in the year following theyear in which the gain or loss isrecognized, primarily by the straightline method, over a period which isshorter than the average remaining
years of service of the employees.
Mainly 10 years
Amortized as incurred, by the straightline method over a period which isshorter than the average remaining
years of service of the employees.

CSR

Amortization years of prior service cost

2009
Straight-line method
Mainly 2.0%
Mainly 2.5%
Mainly 10 years
Amortized in the year following theyear in which the gain or loss isrecognized, primarily by the straightline method, over a period which isshorter than the average remaining
years of service of the employees.
Mainly 10 years
Amortized as incurred, by the straightline method over a period which isshorter than the average remaining
years of service of the employees.

Overview of Operations

Attribution method for retirement benefits in the period
Discount rate
Expected rate of return on plan assets
Amortization years of actuarial gain or loss

Corporate Information

18. Stock Options
Information regarding stock options for the years ended December 31, 2009 and 2010 is as follows.
Fiscal year ended December 31, 2009

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Financial Section

1. Expenses associated with stock options during fiscal 2009 and the category in which they were classified:Selling, general and administrative expenses: ¥42 million.

105

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance

2. Outline of stock options and changes

Message from the Management(1) Outline of stock options
Title and number of grantees(Persons)

Number of stock options Note 1
Grant dateCondition for vesting Note 2(Shares)Requisite service period
Exercise period

2008 Stock options

2009 Stock options

Directors of Yamaha Motor Co., Ltd.:
9
Executive Officers of Yamaha Motor Co.,Ltd.:
15
Common shares 75,500
June 13, 2008
Persons who have received allocations ofcommon stock must serve a full term that
includes the grant date (June 13, 2008).
Same period as listed under condition forvestingJune 13, 2010 to June 12, 2014

Directors of Yamaha Motor Co., Ltd.:
7
Executive Officers of Yamaha Motor Co.,Ltd.:
18
Common shares 112,000
June 16, 2009
Persons who have received allocations ofcommon stock must serve a full term that
includes the grant date (June 16, 2009).
Same period as listed under condition forvestingJune 16, 2011 to June 15, 2015

Overview of Operations

Special Feature

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 share warrants 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 Share Warrants” concluded between the Company and the
grantee.
(2) Share warrants 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 Share Warrants”
concluded between the Company and the grantee.

(2) Stock options granted and changes
Stock options outstanding in fiscal 2009 are counted and converted into a number of shares.
a) Number of stock options
Shares2008 Stock options

Corporate Information

CSR

Before vesting:
Previous fiscal year-end
GrantedForfeited
VestedOutstanding
After vesting:
Previous fiscal year-end
VestedExercised
Forfeited
Exercisable

2009 Stock options

75,500——75,500——112,000——
112,000—
75,500——75,500—————Financial Sectionb) Price information
Yen

Exercise price
Average exercise price
Fair value at the grant date

106

YAMAHA Motor Co., Ltd. ⎜ Annual Report 20102008 Stock option

2009 Stock option¥2,205—535¥1,207—380

Operating Performance

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
2009 Stock options

Expected volatility Note 1
Average expected life Note 2
Expected dividends Note 3
Risk-free interest rate Note 4

Message from the Management

46.82%
4 years¥25.50 per share
0.71%

Notes 1 Calculated based on the actual stock prices during the four years ending on the stock option grant date (June 16, 2009).
2 The average expected life could not be reasonably estimated due to insufficient data. Therefore, it was estimated assuming that the options were exercisedat the mid-point of the exercise period.
3 The actual dividends on common stock for the fiscal year ended December 31, 2008.
4 Japanese government bond yield corresponding to the average expected life.

Special Feature

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.
Fiscal year ended December 31, 2010

Overview of Operations

1. Expenses associated with stock options during fiscal 2010 and the category in which they were classified:Selling, general and administrative expenses: ¥30 million ($368 thousand).
2. Outline of stock options and changes(1) Outline of stock options
Title and number ofgrantees(Persons)

Exercise period

2010 Stock options

Directors of Yamaha MotorCo., Ltd.:
7
Executive Officers of
Yamaha Motor Co., Ltd.:
17

Common shares 75,500
June 13, 2008
Persons who have received
allocations of common 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,
2014

Common shares 112,000
June 16, 2009
Persons who have received
allocations of common 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

Common shares 56,500
June 15, 2010
Persons who have received
allocations of common 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

Corporate Information

Requisite service period

2009 Stock options

Directors of Yamaha MotorCo., Ltd.:
7
Executive Officers of
Yamaha Motor Co., Ltd.:
18

CSR

Number of stock
options Note 1(Shares)
Grant dateCondition for vesting Note 22008 Stock options

Directors of Yamaha MotorCo., Ltd.:
9
Executive Officers of
Yamaha Motor Co., Ltd.:
15

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 share warrants 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 Share Warrants” concluded between the Company andthe grantee.
(2) Share warrants 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 Share Warrants”
concluded between the Company and the grantee.

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010107

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

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

Special Feature

Message from the Management

Before vesting:
Previous fiscal year-end
GrantedForfeited
VestedOutstanding
After vesting:
Previous fiscal year-end
VestedExercised
Forfeited
Exercisable

2010 Stock options

—
—
—
—
—

112,000——
112,000——
56,500——56,50075,500———75,500—112,000——
112,000—————

Overview of Operationsb) Price information

Exercise price
Average exercise price
Fair value at the grant date2008
Stock options

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$27.06—
6.57$14.81—
4.66$17.13—
5.71

CSR

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 model2010 Stock options

Corporate Information

Expected volatility Note 1
Average expected life Note 2
Expected dividends Note 3
Risk-free interest rate Note 4

48.41%
4 years¥0 per share
0.31%

Financial Section

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 exercisedat the mid-point of the exercise period.
3 The actual dividends on common stock for the fiscal year ended December 31, 2009.
4 Japanese government bond yield corresponding to the average expected life.

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.

108

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

19. Deferred Tax Accounting
Operating Performance

Information regarding deferred tax accounting at December 31, 2009 and 2010 is as follows.
(1) Principal deferred tax assets and liabilities
Thousands of
U.S. dollars

Millions of yen

2009¥ 56,905
30,542
11,468
9,849
9,382
6,758
6,315
2,144
1,572
971
5,995
141,906(131,828)
10,077¥ 63,275
23,247
12,030
8,842
9,838
3,441
10,280
2,236
1,410
1,711
5,285
141,598(131,463)
10,134$ 776,476
285,274
147,625
108,504
120,726
42,226
126,150
27,43917,30320,99664,8551,737,612(1,613,241)
124,359

(578)
(436)
(4,821)(5,836)

(436)
(422)
(6,383)(7,242)(5,350)(5,179)(78,329)(88,870)

8,983¥ (4,742)

7,467¥ (4,575)

Deferred tax liabilities:
Unrealized gain on other securities
Reserve for advanced depreciation
Other
Total deferred tax liabilities$

91,631(56,142)CSR

Net deferred tax assets
Net deferred tax liabilities

Overview of Operations

2010

Special Feature

2010

Message from the Management

Deferred tax assets:
Losses carried forward for tax purposes
Excess depreciation
Accrued retirement benefits
Accrual for product liabilities
Accounts payable
Inventory write-downs
Accrued warranty costAccrued bonuses
Securities write-downs
Allowance for doubtful receivables
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets(2) Principal reasons for the difference between the statutory tax rate and the rate of income taxes after application of deferred tax
accounting
Corporate Information

Fiscal year ended December 31, 2009This note is omitted because the Company recorded loss before income taxes and minority interests in fiscal 2009.
Fiscal year ended December 31, 2010
2010
39.7%

Financial Section

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 rates

15.4
11.2
(13.5)
(0.6)
1.8
53.9%

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010109

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance

20. Segment Information

Message from the Management

The Company and its consolidated subsidiaries are primarily
engaged in the manufacture and sale of products in Japan andoverseas. The operations of the Company and its consolidated
subsidiaries have been classified into four business segments:
Motorcycles, Marine Products, Power Products, and Other
Products. Major products in the Motorcycles segment include
motorcycles and knockdown parts for overseas production; in the
Marine Products segment: outboard motors, personal watercraft,pleasure-use boats, fiberglass-reinforced plastic pools, fishingboats, utility boats and diesel engines; in the Power Products segment: all-terrain vehicles, side-by-side vehicles, snowmobiles, golfcars, generators, small-sized snow throwers and multipurpose
engines; and in the Other Products segment: surface mounters,industrial robots, automobile engines, automobile components,
electrically power assisted bicycles, unmanned industrial helicopters, electrically powered wheelchairs and the intermediate partsfor products in all business segments.

(1) Business segment information

Special Feature

Business segment information for the Company and its subsidiaries for the years ended December 31, 2009 and 2010 is summarized asfollows.
Fiscal year ended December 31, 2009
Motorcycles

Overview of Operations

Net sales:
Outside customers
Intersegment
Total
Operating expenses
Operating loss
AssetsDepreciation
Impairment loss
Capital expenditures¥817,058—
817,058
821,209¥ (4,151)¥607,311
32,521
52,63329,932Marine products

Power products

Millions of yen
Other products¥150,113—
150,113
174,387¥ (24,274)¥169,122
10,052
12,077
6,660¥100,577—
100,577
134,345¥ (33,768)¥115,082
3,993
14,183
3,660¥ 85,893
77,770163,664
164,050¥ (386)¥ 95,561
7,134
4,164
5,780

Total

¥1,153,642
77,7701,231,413
1,293,993¥ (62,580)¥ 987,077
53,701
83,05846,035

Eliminations¥—(77,770)(77,770)(77,770)
¥
0
¥
—
—
—
—

Consolidated¥1,153,642—
1,153,642
1,216,222¥ (62,580)¥ 987,077
53,701
83,05846,035

Corporate Information

CSR

Notes 1 Business segments correspond to categories classified primarily by similarity of products and markets.
2 All operating expenses are assigned to individual segments, and there was no operating expense that could not be assigned.
3 Impairment losses on idle assets are included in the business to which the respective idle assets belong.
4 Depreciation and amortization of assets
As described in “Depreciation and Amortization of Assets,” of “Accounting Standards,” the Company and its consolidated subsidiaries in Japan reviewed theuseful life of certain tangible fixed assets, mainly machinery and equipment, taking advantage of the change in the Corporate Tax Law (Ministerial Ordinance toPartially Amend the Ministerial Ordinance with Regard to Useful Life of Depreciated Assets: April 30, 2008; Ordinance of the Ministry of Finance, No. 32).
Applying the new accounting method, operating expenses in fiscal 2009 increased ¥353 million in the motorcycle business, ¥560 million in the marine
product business, ¥64 million in the power product business, and ¥221 million in the other products business, while operating loss in each business segment
increased the same amount, compared with the figures derived using the previous method.

Fiscal year ended December 31, 2010
Motorcycles

Financial Section

Net sales:
Outside customers
Intersegment
Total
Operating expenses
Operating income (loss)
AssetsDepreciation
Impairment loss
Capital expenditures

110¥905,977—
905,977
863,237¥ 42,740¥609,948
24,158
6,063
23,784

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Marine products

Power products

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

¥1,294,131
81,795
1,375,926
1,324,617¥ 51,308¥ 978,343
36,594
6,628
33,939Eliminations¥—(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
33,939

$11,117,646—
11,117,646
10,593,165$ 524,482$ 7,484,943
296,454
74,402291,864

Thousands of U.S. dollars
Power products Other products$2,051,061—
2,051,061
2,041,882$
9,179$1,988,293
72,6102,405
44,607$1,263,566—
1,263,566
1,401,657$ (138,078)$1,275,420
21,954
1,792
30,188$1,448,558
1,003,743
2,452,301
2,218,248$ 234,053$1,257,001
58,0192,700
49,798

Total$15,880,857
1,003,743
16,884,599
16,254,964$ 629,623$12,005,682
449,061
81,335416,481

Eliminations

Consolidated$$15,880,857—
15,880,857
15,251,221$ 629,623$12,005,682
449,061
81,335416,481—(1,003,743)(1,003,743)(1,003,743)
$
0
$
—
—
—
—

Message from the Management

Net sales:
Outside customers
Intersegment
Total
Operating expenses
Operating income (loss)
AssetsDepreciation
Impairment loss
Capital expenditures

Marine products

Operating Performance

Motorcycles

Notes 1 Business segments: Classified in the same way as for the fiscal year ended December 31, 2009.
2 All operating expenses are assigned to individual segments, and there was no operating expense that could not be assigned.
3 Impairment losses on idle assets are included in the business to which the respective idle assets belong.

Special Feature(2) Geographical segment information
The geographical segments of the Company and its subsidiaries for the years ended December 31, 2009 and 2010 are summarized asfollows.

Japan¥188,276
261,973450,250
505,833¥ (55,582)¥455,349¥165,528
17,654
183,183
225,451¥ (42,268)¥192,638

EuropeMillions of yen
Asia
Other areas¥197,641
3,503
201,144
210,293¥ (9,148)¥119,148¥482,370
37,098519,469
485,912¥ 33,556¥273,632¥119,825
937
120,762
122,802¥ (2,039)¥133,301

Total¥1,153,642
321,167
1,474,810
1,550,292¥ (75,481)¥1,174,069

Eliminations¥—(321,167)(321,167)(334,069)¥ 12,901¥(186,991)

Consolidated¥1,153,642—
1,153,642
1,216,222¥ (62,580)¥ 987,077

CSR

Net sales:
Outside customers
Intersegment
Total
Operating expenses
Operating income (loss)
AssetsNorth America

Overview of Operations

Fiscal year ended December 31, 2009

Corporate Information

Notes 1 Geographic segments correspond to categories of geographical similarity, classified primarily by nations and regions.
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, Taiwan, Thailand, Singapore, Vietnam, China and India(4) Other areas: 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.
4 Depreciation and amortization of assets
As described in “Depreciation and Amortization of Assets,” of “Accounting Standards,” the Company and its consolidated subsidiaries in Japan reviewed theuseful life of certain tangible fixed assets, mainly machinery and equipment, taking advantage of the change in the Corporate Tax Law (Ministerial Ordinance toPartially Amend the Ministerial Ordinance with Regard to Useful Life of Depreciated Assets: April 30, 2008; Ordinance of the Ministry of Finance, No. 32).
Applying the new accounting method, operating expenses in Japan in fiscal 2009 increased ¥1,199 million, while operating loss increased the sameamount, compared with the figures derived using the previous method.

Financial Section

Fiscal year ended December 31, 2010
Japan

Net sales:
Outside customers
Intersegment
Total
Operating expenses
Operating income (loss)
Assets¥216,353
310,881
527,235
529,754¥ (2,519)¥560,568

North America¥155,336
16,043
171,379
186,102¥ (14,722)¥136,031

EuropeMillions of yen
Asia
Other areas¥165,602
3,088
168,691
166,722¥ 1,968¥105,725¥613,350
44,843
658,194602,945¥ 55,248¥277,110¥143,488
1,108
144,597
134,337¥ 10,259¥131,918

Total¥1,294,131
375,966
1,670,098
1,619,862¥ 50,235¥1,211,353

Eliminations¥—(375,966)(375,966)(377,039)¥ 1,073¥(233,010)

Consolidated¥1,294,131—
1,294,131
1,242,822¥ 51,308¥ 978,343

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010111

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries

Operating PerformanceYears ended December 31, 2009 and 2010

Message from the Management

Net sales:
Outside customers
Intersegment
Total
Operating expenses
Operating income (loss)
AssetsJapan

North America

Europe$2,654,964
3,814,959
6,469,935
6,500,847$ (30,912)$6,878,979$1,906,197
196,871
2,103,068
2,283,740$ (180,660)$1,669,297$2,032,176
37,8942,070,082
2,045,920$ 24,150$1,297,398

Thousands of U.S. dollars
Asia
Other areas$7,526,690
550,2888,076,991
7,399,006$ 677,973$3,400,540$1,760,805
13,597
1,774,414
1,648,509$ 125,893$1,618,824

Total

Eliminations$15,880,857
4,613,646
20,494,515
19,878,046$ 616,456$14,865,051

Consolidated$— $15,880,857(4,613,646)—(4,613,646) 15,880,857(4,626,813) 15,251,221$ 13,167 $ 629,623$(2,859,369) $12,005,682

Special Feature

Notes 1 Geographic segments correspond to categories of geographical similarity, classified primarily by nations and regions.
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) Other areas: 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
Overseas sales, which include export sales of the Company and its domestic consolidated subsidiaries, and sales (other than exports toJapan) of foreign consolidated subsidiaries, for the years ended December 31, 2009 and 2010 are summarized as follows.

Overview of Operations

Fiscal year ended December 31, 2009
North America

Overseas sales
Consolidated sales
Overseas sales to net sales

EuropeMillions of yen
Asia

Other areas¥166,330¥201,950¥500,442¥154,481

14.4%

17.5%

43.4%

13.4%

Total

¥1,023,205
1,153,642
88.7%

CSR

Notes 1 Overseas segments correspond to categories of geographical similarity, classified primarily by nations and regions.
2 Nations and regions included in segments outside Japan:(1) North America: U.S.A. and Canada(2) Europe:
Italy, France, Spain, Russia and Germany(3) Asia:
Indonesia, Vietnam, Thailand, China, Taiwan and India(4) Other areas: Brazil, Australia and South Africa
3 Overseas sales consist of export sales of Yamaha Motor and its domestic consolidated subsidiaries, and sales (other than exports to Japan) of its foreign
consolidated subsidiaries.

Corporate Information

Fiscal year ended December 31, 2010
North America

Financial Section

Overseas sales
Consolidated sales
Overseas sales to net sales

Millions of yen
Asia

Other areas¥156,676¥170,371¥644,881¥179,824

12.1%

13.2%

49.8%

13.9%

North America

Overseas sales
Consolidated sales
Overseas sales to net sales

EuropeEuropeThousands of U.S. dollars
Asia

Other areas$1,922,641$2,090,698$7,913,621$2,206,700

12.1%

13.2%

49.8%

13.9%

Total

¥1,151,752
1,294,131
89.0%

Total

$14,133,661
15,880,857
89.0%

Notes 1 Overseas segments correspond to categories of geographical similarity, classified primarily by nations and regions.
2 Nations and regions included in segments outside Japan:(1) North America: U.S.A. and Canada(2) Europe:
France, Italy, Germany, England and Russia(3) Asia:
Indonesia, Vietnam, Thailand, China, Taiwan and India(4) Other areas: Brazil, Australia and South Africa
3 Overseas sales consist of export sales of Yamaha Motor and its domestic consolidated subsidiaries, and sales (other than exports to Japan) of its foreign
consolidated subsidiaries.

(4) Related party transactions
No related items.

112

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

21. Per Share Information
Operating Performance

Information regarding per share for the years ended December 31, 2009 and 2010 is as follows.
Yen

2010
¥785.61
55.50
55.50

2010
$9.64
0.68
0.68

Message from the Management

Net assets per share Note 2
Net income (loss) per share—basic Note 3
Net income per share—diluted Note 3

U.S. dollars

2009¥ 743.04(755.92)— Note 1

Note 1 The Company registered a basic net loss per share in the fiscal year ended December 31, 2009 (fiscal 2009). Therefore, diluted net income per share in fiscal
2009 is not described herein, although there were dilutive securities during the period.
Note 2 Net assets per share are calculated based on the following:Thousands of
U.S. dollars

Millions of yen

2009¥249,266
36,86972
36,796
212,3972010¥310,809
36,557102
36,454274,252

2010$3,814,075
448,6071,252
447,3433,365,468

Special Feature

Total net assets
Amount excluded from total net assets
Share warrants
Minority interests
Net assets attributable to common stock at the end of the period

Thousand shares

285,849

Overview of Operations

Number of common stocks outstanding at the end of the period,
calculated under “Net assets per share”

349,097

Note 3 Basic net income (loss) per share and diluted net income per share are calculated based on the following:Thousands of
U.S. dollars

Millions of yen

2009

2010

¥(216,148)—(216,148)

Average number of shares outstanding during the period

285,9422010¥18,300—
18,300$224,567—
224,567

CSR

Net income (loss) per share—basic:
Net income (loss)
Amount not attributable to common stockholders
Net income (loss) attributable to common stockThousand shares

329,735

Corporate Information

Millions of yen

Net income per share—diluted:
Adjustment for net income—
SharesIncrease in the number of common stocks
Share warrants
Dilutive securities not calculated under “Diluted net income per share”
because they do not have dilutive effect:

Financial Section

Diluted net income
per share in fiscal
2009 is not describedherein, since theCompany registereda net loss per sharein fiscal 2009.

3,766
3,766
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)

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010113

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2009 and 2010

Operating Performance

22. Significant Subsequent Events
Information regarding significant subsequent events for the years ended December 31, 2009 and 2010 is as follows.
Fiscal year ended December 31, 2009
No related items.

Message from the Management

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 by shareholders
at the 76th Ordinary General Meeting of Shareholders on March 24, 2011, and put into effect the same day.

Special Feature

1. Purpose
Management’s goal was to promote flexible implementation of capital policies and facilitate payment of future dividends to shareholders
by reducing capital and legal reserves and appropriating the surplus to cover the deficit in retained earnings brought forward.
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.

Overview of Operationsi) Items regarding decreasing reserves and their amounts
Capital reserve¥23,814,148,434
Legal reserve¥ 3,775,736,564ii) Items regarding increasing surplus and their amounts
Other capital reserve¥23,814,148,434
Retained earnings brought forward¥ 3,775,736,564

CSRiii) 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.

Corporate Informationi) Items regarding decreasing surplus and its amounts
Other capital reserve¥23,565,474,829
ii) Items regarding increasing surplus and its amounts
Retained earnings brought forward¥23,565,474,829

Financial Section

3. Effective date
March 24, 2011114

YAMAHA Motor Co., Ltd. ⎜ Annual Report 2010

Investor Information
As of December 31, 2010

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
2006

2007

2008

2009

Trading volume

2010(Million shares)

300

Common Stock
Authorized:
900,000,000 shares
Issued:349,757,784 shares
Number of Shareholders: 30,017

200

Principal Shareholders
Yamaha Corporation
State Street Bank and Trust Company
Toyota Motor Corporation
Mizuho Bank, Ltd.
Japan Trustee Services Bank, Ltd. (trust account)
The Master Trust Bank of Japan, Ltd. (trust account)
Mitsui & Co., Ltd.
The Bank of New York, JASDEC Treaty account
The Shizuoka Bank, Ltd.
The Chase Manhattan Bank, N.A. London S.L.
Omnibus account12.09%
8.56
3.57
3.13
2.97
2.60
2.45
2.41
1.95
1.60

Annual Meeting of Shareholders
The Ordinary General Meeting of Shareholders is held in Marcheach year in Iwata, Shizuoka, Japan.

100

0
2006

2007

2008

2009

2010

Shareholder Composition
Japanesefinancial
institutions
Foreigninvestors

26.16%
45.39%
19.85%

Japanese individuals
and others 8.02%

Japanese financial
Other instruments firms
Other
Japanese
corporations

0.58%

Securities Traded
Tokyo Stock Exchange, Inc.
Transfer Agent for Common Stock
The Chuo Mitsui Trust and Banking Company, Limited
33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan
AuditorErnst & Young ShinNihon LLC

For further information, please contact:
Yamaha Motor Co., Ltd.
Investor Relations Finance & Accounting 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 2010115

YAMAHA MOTOR CO., LTD.
2500 SHINGAI, IWATA, SHIZUOKA, JAPANwww.yamaha-motor.co.jp

Printed in Japan