Annual Report 2009
Year ended December 31, 2009Engineering Excellence and ProminenceYamaha Motor Co., Ltd. is a multinational corporation creating high quality products
at 60 factories in 35 countries. About 90% of our consolidated net sales are derived

from overseas markets.
We have successfully diversiﬁed our business by capitalizing on our world-leading
small engine, ﬁberglass-reinforced 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 and manufacturing
enterprise, with a prominent presence in the global market.

Corporate Philosophy
Corporate Mission
Kando* Creating Company
Yamaha, a company offering new excitement and a more
fulﬁlling life for people all over the world*Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitementthat people experience when they encounter something of exceptional value.

Management Principles
1. Creating value that surpasses customers’ expectations
2. Establishing a corporate environment that fosters self-esteem
3. Fulﬁlling social responsibilities globally

Action Guidelines
Our Yamaha Value 21 policy provides clear guidelines and a
direction for our daily business activities in 21 speciﬁc actionplans and four chapters: “Awareness of the Issues,” “Judgment,
Challenge, Accomplishment,” “Thorough Evaluation” and“Focused on the Way We Should Be”

2

On the cover:
1,000cc supersport, the new YZF-R1
Photographs on page 8, 13, 14, 17, 18 and 21
by Rowland Kirishima

Annual Report 2009

CONTENTS

2 Operating Performance
2 Financial Highlights
6 Fiscal Year in Review

34 Overview of Operations
34 Motorcycles

8 Message from the Management
We envision ourselves evolving into an excellent
engineering and manufacturing enterprise with aprominent presence in the global market.

8 To Our Stakeholders

40 Marine Products
42 Power Products
44 Other Products
47 Racing Activities

48 Corporate Social Responsibility
11 Interview with the President

48 Environmental Preservation
49 Working to Maximize Customer Satisfaction
50 Social Action Programs

22 Special Report 1

New Medium-term Management Plan:
Key Business Strategies

28 Special Report 2 The LEXAM Development Story
Innovative Technology Drives Demandfor Automatic Mopeds
The LEXAM is poised to tap strong growth potential in
the ASEAN region, delivering a new chapter in ASEAN
motorcycle history.

52 Corporate Information
52 Corporate Governance
58 Directors, Corporate Auditors andExecutive Ofﬁcers
60 Organization
61 Risk Factors
64 History of the Yamaha Motor Group66 Principal Subsidiaries and Afﬁliates

69 Financial Section
32 Special Report 3

Yamaha Next-generation Vehicles Shape
Future Dreams

116 Investor Information

We pursue Kando in every area to motorcycle technology
and design.

1Operating Performance

Financial Highlights
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

Millions of yen

Thousands of U.S.
dollars% change

2009/2008

2008

2009

2009

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,603,881¥1,153,642$12,525,972(28.1)%

Gross proﬁt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

377,105

202,292

2,196,439(46.4)

Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . .

48,382(62,580)(679,479)—

Ordinary income (loss) . . . . . . . . . . . . . . . . . . . . . . . .

58,872(68,340)(742,020)—

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,851(216,148)(2,346,884)—

For the year:

Net cash (used in) provided by operating activities . . .

(6,446)74,096

804,517—

Net cash used in investing activities . . . . . . . . . . . . . .

(99,543)(45,285)(491,694)(54.5)

Free cash ﬂows . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(105,989)

28,810312,812—Net cash provided by (used in) ﬁnancing activities . . .

163,179(32,022)(347,687)—

Capital expenditures. . . . . . . . . . . . . . . . . . . . . . . . . .

94,391

46,035499,837(51.2)

Depreciation expenses . . . . . . . . . . . . . . . . . . . . . . . .

59,60653,701

583,073(9.9)

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,163,173¥ 987,077$10,717,448(15.1)%Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

428,483

249,266

2,706,471(41.8)

Interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . .

349,203399,942

4,342,476

14.5

U.S. dollars% change

At the year end:

Ratios:Operating income margin (%) . . . . . . . . . . . . . . . . . . .

3.0

(5.4)

Return on equity (%). . . . . . . . . . . . . . . . . . . . . . . . . .

0.4(71.2)

Equity ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33.9

21.5

Price/earnings ratio (times) . . . . . . . . . . . . . . . . . . . . .

144.0

—

Debt/equity ratio (%). . . . . . . . . . . . . . . . . . . . . . . . . .

88.5

188.3
Yen

Per share amounts:(8.21)—%Net income — diluted . . . . . . . . . . . . . . . . . . . . . . . .

6.47

—

—

—

Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,377.81

743.048.07(46.1)Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25.50

0.00

0.00

(100.0)Net income — basic. . . . . . . . . . . . . . . . . . . . . . . . . .

¥

6.47

¥

(755.92)

Millions of yen, except per share data$

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

% change

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

¥

932

¥

266,899

1,166
333,300

Persons

$

12.66

25.1%

3,618,893

24.9% change

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

35,15630,013(14.6)%

Number of employees . . . . . . . . . . . . . . . . . . . . . . . .

49,761

49,994

0.5

Notes • U.S. dollar amounts are translated solely for convenience at ¥92.10 = U.S.$1.00, the rate of exchange prevailing at December 31, 2009 (See Note 9 in the Notes toConsolidated 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,
2008 and 2009.
• 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.

2

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Net sales

Operating income and operating income margin

Net income and net income margin(Billion ¥)(Billion ¥)125

123.5 127.0

10(Billion ¥)80

100 103.3

7.8

8

2,000

(%)

(%)

71.2

1,757
1,604

1,582

1,500

7.5

1,375

50

3.0
2

0
06

07

08

09

09

05

06

07

(Billion ¥)
1,500

0

9

40

3.0

20

1.5

0
05

7.4

(%)

(¥)

600

60

300

1,258

1,000 958

987

6.0

6

40.1

400

0

0.2
05

06

07

08

3

200

0

0

09

Total assets
Return on assets (%)

05
-20.1

-18.7
(216.1)

249
224

428
42.1

41.7

384

500

0

270

501

1,163

1,129

07

Net income per share(Billion ¥)
569

7.4

06

1.9
0.1 0908

Net income
Net income
margin (%)-5.4(62.6)Net assets and equity ratio
(%)

4.1

08

Operating income
Operating income
margin (%)

Total assets and return on assets

4.5

4

48.4

25

0

60

4.9

6

1,000

500

64.0
4.7

7.2

75

1,154

05

6.0

77.2

40

200

249
21.5
20

100

0

0

33.9

06

07

08

09

6
05

06

07

09

08

Net assets
Equity ratio (%)(756)

Cash dividends per share

Market capitalization(¥)(Billion ¥)

41

40

1,200
1,070

41,95840,000 39,381

900 88028

49,761 49,994
46,85050,00036
30

Number of employees

775

25.50

30,000600

2020,000
300

10

0

0
05

06

07

08

09

267

333
10,000

0

0
05

06

07

08

09

05

06

07

08

09

Notice regarding forward-looking statements:
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, andcurrency exchange rate ﬂuctuations.

3Financial Highlights
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

Motorcycle unit sales by market
Thousand units

Thousand units% change

2008

2009

2009/2008

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

122

108

(11.5)%

North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

167

92

(44.9)

Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

366

275

(24.9)

Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,717

4,993

5.9

Other areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

493

372

(24.5)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,865

5,841

(0.4)%

Motorcycle unit sales (Thousand units)
Years ended December 31

Europe
500

400

421

Asia
407

410

5,000

366

4,993
4,717

300
275
200

4,000

3,770
3,272

3,000
2,727

100

2,000

0
05

06

07

08

09

1,000

Japan

0
05

06

07

08

09

200
167

161

163

150
122
108

100

50

0
05

4

06

07

08

09

Operating
Performance

Message from theManagement

Sales by market

Special Report

Motorcycle businessMillions of yen

2009

2008

Overview ofOperations

Marine product business% change

Millions of yen

2009/2008

2008

2009

(12.5)% ¥ 30,971 ¥ 23,701

CSR

Corporate
Information

Power product business% change

Millions of yen

2009/2008

2008

2009

Other products business% change

Millions of yen

2009/20082008% change

2009 2009/2008

Japan . . . . . . . . . ¥43,423 ¥ 38,015

North America . . .

107,123

57,979(45.9)

98,70655,279(44.0)

141,027

52,389(62.9)

1,120

680(39.3)

Europe . . . . . . . .

215,012

143,723(33.2)

54,10033,776(37.6)

32,03920,553(35.9)

11,724

3,895(66.8)

Asia . . . . . . . . . . .

520,143

478,966

(7.9)

9,262

6,637

(28.3)

6,120

4,321

(29.4)

13,695

10,517(23.2)

Other areas . . . . .

143,105

98,371(31.3)

45,77330,716(32.9)

24,06014,432(40.0)

10,654

10,9602.9

Total . . . . . . . . . . ¥1,028,809 ¥817,058(20.6)% ¥238,814 ¥150,113(23.5)% ¥ 10,011 ¥ 8,880

Financial Section(37.1)% ¥213,259 ¥100,577(11.3)% ¥ 85,802 ¥59,839(52.8)% ¥122,997 ¥85,893(30.3)%(30.2)%

North America
300

223
207

200

197
167

100

92

0
05

06

07

08

09

Other areas
500

493
457

400
372

373
300

311

200

100

0
05

06

07

08

09

5

Fiscal Year in Review
Year ended December 31, 2009

Motorcycles

Major products:
Motorcycles and knockdown parts foroverseas production% of net sales

Sales by market(Billion ¥)98(12.0%)

38(4.7%) 58(7.1%)

144(17.6%)

70.8%

479(58.6%)

Japan
North America
EuropeAsia
Other areas

Marine Products

Major products:
Outboard motors, personal watercraft,pleasure-use boats, ﬁberglassreinforced plastic pools, ﬁshing boats,utility boats and diesel engines% of net sales

Sales by market(Billion ¥)

13.0%

31
(20.5%)

24(15.8%)

7(4.4%)
34(22.5%)

55(36.8%)

Japan
North America
EuropeAsia
Other areas

Power Products

Major products:
All-terrain vehicles, side-by-side
vehicles, snowmobiles, golf cars,
generators, small-sized snow
throwers and multi-purpose engines% of net sales

Sales by market(Billion ¥)8.7%

9(8.8%)

14(14.4%)
4(4.3%)
21(20.4%)

52(52.1%)

Japan
North America
EuropeAsia
Other areas

Other Products

Major products:
Surface mounters, industrial robots,
automobile engines, automobile
components, electrically power
assisted bicycles, unmanned
industrial helicopters, electricallypowered wheelchairs and theintermediate parts for products in all
business segments% of net sales

Sales by market(Billion ¥)

7.5%

11
(12.8%)
11(12.2%)
4(4.5%)

60(69.7%)

1(0.8%)
Japan
North America
EuropeAsia
Other areas

6

Operating
Performance

Message from theManagement

Special Report

Operating results(Billion ¥)
1,000

1,056
915

750 760

500

6.0

817

6.0

3.3

250

0

6.0

4.0

4.4

2.0
33

55

63

34

05

06

07

08

(4) 0
09
-0.5

Sales
Operating income
Operating income
margin (%)

Operating results(Billion ¥)
300
250
200

267
9.9
8.7

239
9.7

8.0
150
4.0

100
2.5
25

23

05

06

28

6

0
07

08
-16.2

0
09
(24)

Sales
Operating income
Operating income
margin (%)

0

Operating results
(%)
15.0

(Billion ¥)
300
266
250
11.8
11.0
227
213
200
8.4

10

101 5.0

100

27

28

0
05

06

1.7

22
07

4
08
-33.6

0
09
(34)

5

Sales
Operating income
Operating income
margin (%)

Operating results
(%)
15.0

(Billion ¥)150 138 150 145
13.4
12.1
123

10.0

100
86

9.3

5.0

50
4.2
19

18

14

05

06

07

0

5
08

(0) 0
09
-0.4

Sales
Operating income
Operating income
margin (%)

Financial Section

Reference Information Pages 40 to 41

Business review:
In the United States, sales of leisure-oriented sport all-terrain vehicles and side-byside vehicles decreased. This was primarily due to slow demand as consumption forrecreational and leisure activities contracted amid the recession.
Decreased sales in the United States, the stronger yen, and production cutbacks
designed to curtail market stocks, coupled with a provision for product liabilities, among
other negative factors, reduced power product sales for ﬁscal 2009 by ¥112.7 billion($1,223.5 million), or 52.8%, from ﬁscal 2008, to ¥100.6 billion ($1,092.0 million), andoperating income fell by ¥37.3 billion ($405.4 million), resulting in an operating loss of¥33.8 billion ($366.6 million).

15

10.0

Corporate
Information

Business review:
In the United States, sales of large outboard motors and personal watercraft fell fromﬁscal 2008. This was attributable to slow demand as consumption for recreational and12leisure activities contracted amid the recession. Outboard motor sales also dropped inEurope and Russia.
These declines, coupled with the negative impact of the stronger yen and production
8
cutbacks — designed to curtail market stocks — sent marine product sales for ﬁscal
2009 down ¥88.7 billion ($963.1 million), or 37.1%, from ﬁscal 2008, to ¥150.1 billion($1,629.9 million), and operating income declined by ¥30.4 billion ($329.5 million),4
resulting in an operating loss of ¥24.3 billion ($263.6 million).

(%)
12.0

290

CSR

Business review:
In developed nations such as Japan, the United States and Europe, motorcycle sales forﬁscal 2009 decreased from ﬁscal 2008, due to reduced demand amid the recession. In
8
the ASEAN region, unit sales of the Vega-ZR, Mio and other Yamaha models increased
in Indonesia, thanks to customer-oriented marketing, although total motorcycle demand6
declinedin the region. In Vietnam, India and other nations in Asia (excluding Japan) where
demand recovered early, aggressive new product releases spurred steady sales. However,thenegative impact of the stronger yen caused a drop in motorcycle sales in Asia from ﬁscal
42008. Sales also declined in Latin America, particularly in Brazil, reﬂecting sluggish demand.
Consequently, total motorcycle sales for ﬁscal 2009 decreased by ¥211.8 billion
2($2,299.1 million), or 20.6%, from ﬁscal 2008, to ¥817.1 billion ($8,871.4 million), andoperating income declined by ¥37.8 billion ($409.9 million), resulting in an operating loss of
0¥4.2
billion ($45.1 million).
Reference Information Pages 34 to 39

(%)
8.0

1,029

Overview ofOperations

Reference Information Pages 42 to 43
0

Business review:
Demand for electrically power assisted bicycles increased in Japan, reﬂecting growing
heath and the environmental awareness. Thanks to the introduction of models that15comply with new standards, as well as the release of models designed to accommodate
two small children, sales of electrically power assisted bicycles expanded steadily.
However, sales of automobile engines and surface mounters decreased, due to falling10
demand amid the recession.
In total, sales of other products for ﬁscal 2009 dropped by ¥37.1 billion ($402.9
million), or 30.2%, from ﬁscal 2008, to ¥85.9 billion ($932.6 million), and operating
5
income declined by ¥5.5 billion ($59.9 million), resulting in an operating loss of ¥0.4
billion ($4.2 million).
0

Reference Information Pages 44 to 46

7

Message from the Management

To Our Stakeholders
We are determined to rapidly return to proﬁtability, paving the way forsustainable growth into the future. Ultimately, we envision ourselves
evolving into an excellent engineering and manufacturing enterprise witha prominent presence in the global market.

Hiroyuki Yanagi (left)
President, Chief Executive Ofﬁcer andRepresentative Director
Takaaki Kimura
Senior Managing Executive Ofﬁcer andRepresentative Director

The EC-f electric commuter vehicle
displayed as a reference vehicle atthe 41st Tokyo Motor Show 20098

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

New Management, New Initiatives
As of March 25, 2010, our new team of Representative Directors has taken charge. Under
the leadership of newly-appointed President and Chief Executive Ofﬁcer Hiroyuki Yanagi and
Senior Managing Executive Ofﬁcer Takaaki Kimura, the Yamaha Motor Group is embarking
on a far-reaching revitalization plan.
We registered very disappointing business results in the ﬁscal year ended December 31,
2009. As the global ﬁnancial crisis took its toll on the economy, our businesses were also
seriously impacted — by sharply shrinking demand for leisure products in Europe and theUnited States, coupled with the stronger yen against major currencies.
However, in the face of this challenging environment, we are determined to take initiatives
to better implement Group management strategy and meet our stakeholders’ expectations.
Engineering Excellence and Prominence
In pursuit of our corporate mission — becoming a KandoNote Creating Company — we arecommitted to surprising, exciting and satisfying, delivering enjoyment and a more fulﬁlling
life to people all over the world through our products and services. At the same time, we
seek harmony with the communities we serve and the natural environment. In line withthese guiding principles, we are dedicated to becoming an excellent engineering andmanufacturing enterprise with a prominent presence in the global market.
Creating customer-oriented products is at the root of successful manufacturing. With
this in mind, we must get back to basics and focus on maximizing value for our customers,
optimizing our product appeal, reliability and pricing. In addition, we will redouble our efforts
to hone our competitive edge by creating value that surpasses customers’ expectations. We
are certain our drive for excellence can also raise our corporate value. One key to achieving
this is our commitment to focus on real needs — both in the workplace and the market —characterized by a bottom-up approach to management. This involves stepping back fromthe limited perspective of our own theories, ofﬁces or policies and looking at the big picture:what is actually going on. The philosophy encourages us to see things from the customer
viewpoint, and to deliver what customers really want, where they will really enjoy them.
Note
Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that people experience when theyencounter something of exceptional value.

9

To Our Stakeholders

New Medium-term Management Plan
We expect business conditions to remain harsh for quite some time. However, we are taking
an aggressive approach to overcoming these circumstances, by accelerating the structuralreforms we initiated last year and striving to regain proﬁtability. Furthermore, we intend to lay
the groundwork for future growth. To achieve these objectives, we formulated a new threeyear medium-term management plan for the period starting in 2010. Speciﬁcally, the plancalls for a return to proﬁtability on a consolidated operating income basis in ﬁscal 2010
and a consolidated operating income margin of 5% in ﬁscal 2012. Success will see us
become an excellent engineering and manufacturing enterprise with a prominent presencein the global market.
Meeting Challenges, Growing Stronger
All of us across the Group — executives and employees alike — are resolved to combine
efforts to achieve the new plan’s targets. At the same time, we are committed to fulﬁlling oursocial responsibilities by strictly observing laws, regulations, and corporate ethics. We arealso vigorously pursuing an array of environmental preservation and social action programs.
Steady implementation of all these policies and initiatives will no doubt quickly restore ourbusiness performance, returning us to a sustainable growth track, and earning greater trustfrom our stakeholders.
We will grow stronger as we meet and overcome the challenges ahead. As we embark on
the journey to a brighter, more powerful future, we thank you for the ongoing understanding
and support that make it possible.
April 201010

Hiroyuki Yanagi

Takaaki Kimura

President, Chief Executive Ofﬁcer
and Representative Director

Senior Managing Executive Ofﬁcer
and Representative Director

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Interview with the President
We are implementing thorough structural reforms, working to build a
proﬁtable structure, and laying the groundwork for future growth.
Business Results for Fiscal 2009

Q1

Yamaha Motor’s performance in ﬁscal 2009 fell
sharply. How do you assess these results?

Our ﬁscal 2009 business results were disappointing,reﬂecting a far more rapid decline in demand than was
forecast, and the persistent strength of the yen against othermajor currencies.
In ﬁscal 2009, sales of our mainstay products including motorcycles, outboard
motors and all-terrain vehicles (ATVs), decreased signiﬁcantly. This was mainly

Net sales(Billion ¥)
1,800

1,757
1,604

1,582
1,375
1,200

1,154

attributable to a sharp decline in demand in the leisure markets of Europe andthe United States amid the global recession, as well as the yen’s continuing

600

strength against other major currencies.
Demand fell at a rate beyond our projections. In response, we adjusted
product shipments and substantially reduced production at Japanese factories

005

for export to developed nations. This, in turn, curtailed market stocks (distributors’

06

07

08

09

stocks and Group inventories) in Europe and the United States.
We also took urgent countermeasures to maintain sustainable growth underthese challenging conditions. We implemented extensive cost reduction, rolledback remuneration for Directors, Executive Ofﬁcers, Corporate Auditors, andmanagers, cut capital expenditures and reduced surplus workforce. Together,

Operating income (loss)/net income (loss)

these measures reduced total consolidated expenses by 10% from the previous(Billion ¥)year. Also, in the motorcycle, outboard motor and ATV businesses, we initiated150
123.5 127.0

an Urgent Cost Reduction Project in the second half of ﬁscal 2009, and thenworked to build on the program’s savings.
Along these lines, we have implemented aggressive cost reforms to cope

100

77.2

with rapidly shrinking business volume. Nevertheless, in ﬁscal 2009, sales
decreased 28.1% from the previous year, to ¥1,153.6 billion, while operating

103.3

64.0

71.2
48.4

50

loss and ordinary loss amounted to ¥62.6 billion and ¥68.3 billion, respectively.
During the ﬁscal year under review, we took measures to accelerate
structural reform at businesses in developed nations. Speciﬁcally, we registeredbusiness structure improvement expenses as extraordinary losses, including

1.9

0
05

06

07

09

08

impairment losses on ﬁxed assets in Japan, Europe and the United States, andexpenses incurred for early retirement of employees in Japan. However, these(62.6)

extraordinary losses, coupled with negative factors including the reversal ofdeferred tax assets, led to net loss totaling ¥216.1 billion.
Overall, the ﬁscal 2009 results were disappointing. As the President of

Operating income (loss)
Net income (loss)(216.1)

the Company, I deeply regret that we were unable to meet our stakeholders’11Interview with the President
expectations. However, along with the rest of the management team, I am

Capital expenditures

resolved to embark on group-wide reforms to rapidly regain proﬁtability.

(Billion ¥)100

I believe that our discouraging performance was primarily attributable tomanagement practices premised on continuing growth, which left us unable
to respond ﬂexibly to rapidly falling demand. We had to reduce our market

94
83
75

85

77

stocks signiﬁcantly and operate on ﬁxed costs that had been established toaccommodate peak demand. All of this, coupled with our susceptibility to

50

46

exchange rate ﬂuctuations, severely impacted our performance.
Despite the harsh climate, there were some positive signs during ﬁscal

25

2009. The market in Asia (excluding Japan) was a relative bright spot, as
demand for motorcycles fell only slightly there. Against this backdrop, we

0
05

moved to expand sales in Asia by introducing new products and implementing

06

07

08

09

aggressive promotions. This marketing approach enabled steady sales inIndonesia, Vietnam and other nations in the region.
We also focused on environmental technologies with future growthpotential. In ﬁscal 2009, we launched PAS electrically power assisted bicycles
that comply with recently introduced standards in Japan — enabling steadyFree cash flows(Billion ¥)30

29

PAS sales in the Japanese market — and enhanced the research anddevelopment system for next-generation mobility technologies, including

20

electric motorcycles. These environmental technology initiatives paved the17

way for future business development.
On the ﬁnancial front, we reduced capital expenditures by nearly half from1410

the previous year. Combined with a considerable decrease in working capitalthrough the curtailment of market stocks, this produced positive free cash
ﬂows in the second half of ﬁscal 2009.

005

Although we anticipate that current harsh business conditions will remain
for some time, my highest-priority duties as the President of the Company

08
06

07

09

(6)

are to further accelerate the structural reforms initiated last year and return to
proﬁtability, while laying the groundwork for future growth.
(106)

Q2

Please summarize the results you achieved withthe urgent measures and structural reforms you
implemented in ﬁscal 2009.
I believe that these programs helped us exceed the targets
speciﬁed in the plan and prevent any further deteriorationin proﬁtability.
Urgent expense reduction measures improved operating income by ¥14billion more than the targeted improvement.Note Another ¥1.8 billion operating
income improvement beyond the targetNote was generated by the Urgent

12

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Cost Reduction Project. Meanwhile, the positive effecton operating income from structural reforms — including
rollbacks in remuneration and other personnel expenses,
and a decrease in depreciation expenses due to impairment
losses on production facilities and equipment — amounted
to ¥10.2 billion over the target.Note In total, these measures
improved operating income by ¥26 billion beyond thetarget.Note Consequently, the ﬁgure for overall operating
income was ¥24.4 billion more than the target.Note
While these urgent measures and structural reforms
produced results exceeding the targets on the operating
income front, net income for ﬁscal 2009 was ¥34.1 billon
less than the target.Note This reﬂects additional impairment losses on production
facilities and equipment, and expenses for additional workforce downsizing,
all designed to generate proﬁts even at a lower break-even point, based on
forecasts for seriously decreasing demand in developed nations.
Note
Target ﬁgures were announced in August 2009 when the Company disclosed its
consolidated ﬁnancial results for the ﬁrst six months ended June 30, 2009.

Q3

Demand for motorcycles, outboard motors and
ATVs in the United States and Europe has been
shrinking sharply. How are you doing on your response,
reducing market stocks of these products?
We adjusted market stocks to appropriate levels in ﬁscal
2009, except for motorcycles in the United States.
In ﬁscal 2009, we reduced production volume and wholesale shipments
below retail unit sales, bringing outboard motor and ATV Note market stocks in
the United States to appropriate levels. We also adjusted motorcycle market
stocks in Europe to an appropriate level in ﬁscal 2009.
We anticipate demand for outboard motors and ATVs in the United Statesand demand for motorcycles in Europe will continue to decline in ﬁscal 2010.
However, we plan to increase the production volume for these products fromﬁscal 2009, in order to return wholesale shipments to levels commensuratewith retail unit sales.
Nevertheless, we believe that motorcycle market stocks in the UnitedStates are still excessive; thus, we will continue to adjust production tonormalize them in 2010.
Note
ATV is the abbreviation for All-Terrain Vehicle

13

Interview with the President

Q4

Please describe your shareholder return policy.

We will determine dividends from a long-term perspectivein light of consolidated business results and other factors.
This is a comprehensive approach designed to fulﬁll the
expectations of our shareholders.
Recognizing that shareholders’ interests represent one of Yamaha Motor’shighest management priorities, we have been working to maximize ourcorporate value through a diversity of business operations worldwide. Ourpolicy centers on paying cash dividends based on a long-term perspective,
reﬂecting our consolidated ﬁnancial performance and other factors in acomprehensive manner, using the payout ratio as an indicator.
However, in light of considerations such as the decline in performance inﬁscal 2009 and the harsh business environment projected to continue into the
future, we must unfortunately suspend the dividend payout for ﬁscal 2009 andﬁscal 2010. We ask for the understanding of shareholders in this regard.
We are resolved to fulfill our shareholders’ expectations by swiftly
overcoming the present challenges, returning to proﬁtability, and getting on a
growth track for steady expansion into the future.

Goals of the New Medium-term Management Plan

Q5

What are the key targets in the three-year mediumterm management plan that starts in 2010?

We are focusing on returning to proﬁtability on aconsolidated operating income basis in ﬁscal 2010 andachieving a consolidated operating income margin of 5%
in ﬁscal 2012. Ultimately, we aim to become an excellent
engineering and manufacturing enterprise with a prominent
presence in the global market.
We reviewed the three-year medium-term management plan initiated in ﬁscal
2008, seeking to more accurately reﬂect current business conditions andfuture forecasts. Based on the review, we formulated a new medium-term
management plan that enables an effective response to the harsh environment.
With the new plan, we get back to basics with customer-focused
manufacturing, thorough product development and a bottom-up approach. It
is a roadmap to excellence as an engineering and manufacturing enterprise,
and a prominent presence in the global market.

14

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

The new plan is designed to attain these objectives in two phases. The

Corporate
Information

Financial Section

2009 Results vs. New Targets

ﬁrst phase calls for completing structural reforms and building a proﬁtable

2009
results

2010
forecasts

2012
targets

1,153.6

1,250

1,400

Operatingincome (loss)(62.6)

1070

Operatingincome margin

-5.4

0.8

5.0

structure, enabling a return to proﬁtability on a consolidated operating income
Net sales

basis in ﬁscal 2010. In the second phase, from ﬁscal 2011 through 2012, we(Billion ¥)will embark on laying the groundwork for future growth. In the effort, we planto achieve a consolidated operating income margin of 5% in ﬁscal 2012.

(Billion ¥)By swiftly and surely achieving the plan’s objectives, we are committed torestoring proﬁtability and getting back on a growth track into the future.

(%)

To this end, we have set numerical targets for consolidated businessperformance, summarized in the table on the right-hand side of this page.
The ﬁgures are premised on exchange rates of ¥88 against the U.S. dollar
and ¥128 against the euro.
Investing in our future growth, we plan to use a total of ¥120 billion incapital expenditures over the plan’s three-year period. We will also strive togenerate free cash ﬂows of ¥150 billion, while reducing interest-bearing debt
by the same ¥150 billion over the period.
For details on the forecast, please refer to “Forecast for ﬁscal 2010” in the“Management Discussion and Analysis of Operations” section on page 80.

2008

2009

2010

2011

Returning to
profitability

on a consolidated
basis

2012

2020

Achievingconsolidated
operatingincome marginofWorldwide
recession•••

5%

Phase I
Completing structural reforms
and establishingproﬁtable structure

Phase II
Laying the groundworkfor future growthEngineering
Excellence andProminence

15

Interview with the President

Q6

What initiatives are you pursuing to achieve
the goals?

We have implemented three key strategies: reforming the
proﬁtability structure of businesses in developed nations;quantitative and qualitative expansion of businesses inemerging nations; and laying the groundwork for future growth.
In developed nations,Note we aim to reform the proﬁtability structure by
reorganizing our worldwide manufacturing layout, downsizing the workforce,and taking other measures to reduce ﬁxed costs. Meanwhile, in emerging
nations, we are looking for quantitative and qualitative expansion byenhancing product competitiveness, reducing costs, and expanding sales
networks. Finally, in laying the groundwork for future growth, we will launch
strategic affordably-priced motorcycles in the global markets; simultaneously
increase the appeal and proﬁtability of commuter vehicles in the ASEAN
market; and accelerate the development of super-fuel-efﬁcient engines andSmart Power Note technologies.
For details, please refer to the “New Medium-term Structural Reforms”

Note
Smart Power: New power sources, primarily for electricvehicles, designed to create a new paradigm of mobilityand “New Medium-term Growth Strategy” sections on the following pages.

Q7

Please explain your plan for mainstay businesses.

For businesses in developed nations, we are shifting ourmanagement focus from “market size-dependent” to “breakeven-point” operations. For the motorcycle business inemerging nations, we aim to achieve aggressive quantitativeand qualitative expansion.
Total demand and Yamaha unit sales in developed nationsNote
Motorcycles

Outboard motors

ATVs(1,000 units)(1,000 units)(1,000 units)
1,030
840

4,460

4,220

3,130 2,950

770

880 840

370

660
480

620 640

260

330

210

240 260430

600 520

90

07

08 09
Results

10 11 12
Forecasts

07

08 09
Results

10 11 12
Forecasts

07

08 09
Results

100

10 11 12
Forecasts

Total demand
Yamaha unit sales
Notes•Developed nations: Japan and the nations of North America and Europe•Demand ﬁgures stated herein are based on Yamaha Motor’s surveys.

16

Message from theManagement

Operating
Performance

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

We anticipate that it will take some time for total demand to recover in the
motorcycle, outboard motor and ATV/SSV Note markets in developed nations.
Therefore, we must transform our management system by shifting the focus
from conventional “market size-dependent” to “break-even-point” operations.
The shift enables us to achieve proﬁtability premised on zero market growth.
We are reforming the structure of our motorcycle business to enableproﬁtability and accommodate a market recovery, even at exchange ratesof ¥85 against the U.S. dollar and ¥120 against the euro. In the outboard
motor business, we aim to attain far and away the top share in the global
market, by enhancing proﬁtability and speeding development of leading-edge
environmental technologies. We are restructuring the foundation of our ATV/SSV business to enable proﬁtability even at an exchange rate of ¥85 against
the U.S. dollar, with unit sales at the 100 thousand level.
Meanwhile, for the motorcycle business in emerging nations — where
demand is expected to grow in the future — we are aggressively pursuingquantitative and qualitative expansion toward business volume of 8 million
units with a 10% operating income margin.
Especially in the thriving ASEAN market, we will aggressively release fuelefﬁcient motorcycles and bolster manufacturing cost-cutting, in order tosimultaneously increase the appeal and proﬁtability of our products. In China
and India, the largest and second-largest motorcycle markets in the world,
respectively, we will launch a series of affordably-priced models, and expand
our sales networks, in order to enhance the Yamaha presence. At the same

Note
ATV and SSV are the abbreviations for All-Terrain Vehicle
and Side-by-Side Vehicle, respectively.

time, we will increase exports from China and India.

Total motorcycle demand and Yamaha unit sales in emerging nations
ASEANNote

China

India

(1,000 units)(1,000 units)(1,000 units)

12,11012,16010,450
11,2003,680

17,42016,120 16,220
15,800

4,490
3,980

2,880

480

570 6107,300 7,330 8,640 9,400

700
220

270

120 14007

08 09
Results

10 11 12
Forecasts

07

08 09
Results

10 11 12
Forecasts

07

08 09
Results

10 11 12
Forecasts

Total demand
Yamaha unit sales
Notes•ASEAN: Indonesia, Thailand, Vietnam, the Philippines, and Malaysia•Demand ﬁgures stated herein are based on Yamaha Motor’s surveys.

17

Interview with the President
New Medium-term Structural Reforms

Q8

Which speciﬁc programs do you have in place toreform the proﬁtability structure of businesses indeveloped nationsNote ?
We have plans to expand the scale of structural reforms
such as reorganizing the manufacturing layout, downsizing
the workforce and cutting costs. By signiﬁcantly rolling backﬁxed costs, we intend to improve proﬁtability.
With a management plan premised on further declines in demand, we havelowered the target break-even point for annual motorcycle production from 250
thousand units to 200 thousand and for annual ATV/SSV Note production from
140 thousand units to 100 thousand. The target break-even point for outboard
motor production remains the same as before, at 230 thousand units.
At the same time, we will expand our structural reform initiatives:
reorganizing the manufacturing layout, downsizing the workforce and cutting
costs. By signiﬁcantly reducing ﬁxed costs in this way, we will improve proﬁtability.

Q9

How do you plan to reorganize the manufacturinglayout?

We intend to consolidate our factories worldwide.
To reorganize the manufacturing layout in Japan, we are consolidating facilities
based on their product segment and function. Concentrating these formerly
dispersed manufacturing facilities in this way will help overall productivity, whilestrengthening our production technologies. Speciﬁcally, we plan to reduce thecurrent 12 factories in Japan, including those of group companies, to seven.
Overseas, the reorganization program will reduce the number of factories
from nine (four in Europe and ﬁve in the United States) in 2009 to seven (threein Europe and four in the United States). We will terminate the motorcycle
factory in Italy and one of four boat-related factories in the United States. We
also plan to consolidate the production of ATVs — currently manufactured
in both Japan (Kakegawa) and the United States (Atlanta) — into the U.S.
factory sometime in 2013. This will help offer protection from the yen
strengthening against the U.S. dollar and improve production efﬁciency.

Notes•Developed nations: Japan and the nations of North America and Europe•ATV and SSV are the abbreviations for All-Terrain Vehicle and Side-bySide Vehicle, respectively.

18

Message from theManagement

Operating
Performance

Q10

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Do you intend to take further measures todownsize the workforce?

We plan to initiate additional workforce downsizing
programs worldwide.
We will also initiate additional workforce downsizing programs beyond the
1,620 surplus positions we reduced in ﬁscal 2009. Speciﬁcally, we plan tostreamline a total of 1,000 positions in ﬁscal 2010 — 200 in Europe and theUnited States, and 800 in Japan — through voluntary retirement.

Q11

Speciﬁcally, what cost-cutting measures are you
planning to take?

We will aggressively promote cost reduction programs forparts procurement — mainly in Asia — aiming to save ¥60
billion over the three-year period.

Saving targets from parts procurement costs¥60 billion¥35 billion

On the cost reduction front, we have a ¥60 billion savings target from parts

51(Overseas)procurement costs over the three-year medium term. To this end, we arefocusing on procurement in Asia (excluding Japan), which accounts for about
60% of the Yamaha Motor Group’s total procurement costs. Speciﬁcally, we
9(Japan)seek to develop local manufacturers in China and India, promote concurrent
global operations in the ASEAN region, and operate a supplementary parts
supply system worldwide. In January 2009, we took an important step
toward cost reduction by integrating design, manufacturing technology andprocurement functions into a new Cost Innovation Section. This will help makeglobal operations more effective. Along these lines, we are also aggressively
pursuing concurrent development, value analysis, theoretical-value-based
production,Note 2 and other advanced engineering methods in conjunction withcore suppliers, thus strengthening these key collaborations.

Target in 2011Note 1(Announced in Aug. 09)

Target in 2012Note 1

Note 1
Target in 2011; Forecast savings from ’09 through’11 activities (compared with ’08)
Target in 2012; Forecast savings from ’10 through’12 activities (compared with ’09)
Note 2
Theoretical-value-based production is a technique forminimizing unnecessary processes in a production line. It
aims to achieve highly efﬁcient production by classifying
manufacturing and assembly processes into “value-adding
work,” “quasi-value-adding work” and “non-value-addingwork” and then focusing on eliminating from the production
line any work or process that does not add value.

New Medium-term Growth Strategy

Q12

Please describe the new plan’s growth strategy.

The plan calls for us to move faster in four high-priority domains.
In the new medium term, we will concentrate our management resourcesin two domains — personal mobility and engines — of the four speciﬁed in
the Frontier 2020 long-term vision we announced in February 2008. (Theother domains are the Yamaha brand and new technologies.) We will pursue
programs in support of the new plan’s four-part growth strategy: introducing
affordably-priced motorcycles in emerging nations; simultaneously increasing
the appeal and proﬁtability of motorcycles in the ASEAN region; developing
next-generation, environmentally friendly engines; and developing andmarketing Smart Power

Notetechnology and products.

Note
Smart Power: New power sources, primarily for electricvehicles, designed to create a new paradigm of mobility

19

Interview with the President

Q13

Can you discuss your strategy for introducing
affordably-priced motorcycles in emerging nations?

Ratio of affordably-priced motorcycles tototal unit sales in emerging nationsNote

We plan to increase the ratio of unit sales of affordablypriced models to total annual motorcycle sales in thesenations from 20% in ﬁscal 2009 to 60% in ﬁscal 2012.
In introducing affordably-priced motorcycles in emerging nationsNote, we willdraw on Yamaha’s solid brand image in these markets for quality, high-valueadded models. We will leverage this brand image to aggressively advance into
the volume consumer segments of India and China with a series of affordably-60%

priced models. The goal is to increase the ratio of unit sales of affordablypriced models to total annual motorcycle sales in these nations, from 20% in
ﬁscal 2009 to 60% in ﬁscal 2012. In addition, we will enhance the proﬁtability ofthe motorcycle business in emerging nations by sharing model platforms andpromoting the complementary parts supply system. Our future plans call for

20%
12 Target

09 Result

Note
Emerging nations: All nations outside Japan,
North America, and Europe

global expansion of these models, by, for example, exporting them from China
and India to Turkey and Africa. At the same time, we will introduce productswith the same speciﬁcations to the ASEAN and Latin American markets.

Q14

How can you simultaneously increase the appeal andproﬁtability of motorcycles in the ASEAN region?

Ratio of FI-equipped motorcycles to total
unit sales in the ASEANNote region
00

We can signiﬁcantly raise the ratio of FI model unit sales tototal annual motorcycle sales.
Simultaneously increasing our motorcycle product appeal and proﬁtability
in the ASEAN market means further honing our competitive edge. Sincefuel efﬁciency is increasingly crucial to product success in the region, weare switching from conventional carburetors to a fuel-injection (FI) system

80%

incorporating our proprietary technology. We plan to increase the ratio of FI
model unit sales to total annual sales in the ASEAN region, from 3% in 2009
to 50% in 2012, and then to 80% in 2015. At the same time, we will work to
produce FI models at the same cost as carburetor-equipped products, taking
advantage of scale economy to maximize proﬁtability.

Q15

Which issue do you consider crucial indeveloping next-generation, environmentallyfriendly engines?
Dramatically improving fuel efﬁciency in two areas:
commuter vehicles marketed in the ASEAN region, andoutboard motors.
In the area of next-generation environmentally friendly engines, we are rapidly
developing technologies that enable dramatic improvement of fuel efﬁciency.
We will continue developing our proprietary FI system, targeting a 30%
improvement in the fuel efﬁciency of 2012 motorcycle models, compared with

20

50%
3%
09
Result12

Targets15

Note
ASEAN: Indonesia, Thailand, Vietnam,
the Philippines, and Malaysia

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

conventional 2008 Yamaha models, jumping to a 50% improvement in 2015.
This is part of the drive to hone the competitive edge of our commuter vehicles
in the ASEAN region. In terms of developing fuel efﬁciency for outboard
motors, our target calls for complying with the U.S. emissions regulations inadvance of their implementation, and achieving a 30% improvement in the fuelefﬁciency of 2015 models, compared with 2007 Yamaha models. By creating
lightweight, compact, highly fuel-efﬁcient products, we will further solidify thesuperiority of our outboard motors in the global market.

Q16

How extensive is your plan for developing andmarketing Smart Power technology and products?

We are working to popularize Smart Power products andexpand the business worldwide.
Our strategy for developing and marketing Smart Power Note technology andproducts starts with re-introducing electric motorcycles in Japan in 2010. In
the medium term, we will increase model variety and develop demand, while
promoting these products in Taiwan, Europe and other overseas markets. Overthe longer term, we will work to popularize Smart Power products and expand
the business by advancing the technology to enable greater cruising distanceand speed at lower product cost. We have begun the drive to bolster Smart
Power operations by establishing the Smart Power Business Development
Managing Unit. The Unit is dedicated to accelerating development of battery,
motor, electronic control and other core technologies.
With its strong growth potential, the PAS electrically power assisted bicycle
sector is a key part of our Smart Power business. Demand for these products

Note
Smart Power: New power sources, primarily for electricvehicles, designed to create a new paradigm of mobility

has been growing at a steady annual rate of 10% in Japan, raising total
demand in the nation to 370 thousand units in 2009. We plan to expand thesales network and strengthen product features with an eye toward increasing
our share in the Japanese market from 22% in ﬁscal 2009 to 30%. Meanwhile,in the European market — where demand is growing at an explosive 50%
annual rate — we will supply more power assist units and study the future
feasibility of marketing completed products.
2015 target

50%

Fuel consumption (km/L)

30% improvement in fuel efficiency bydevelopng FI technologies (2012)2015 target

30%

Releasing environmentally friendly engines
Complying with U.S. emission regulations ahead of schedule
09

12

15

Year

21

Special Report 1

New Medium-term Management Plan:
Key Business Strategies
Motorcycle Business in Developed Nations (Japan, North America and Europe)
Reforming the Structure to Enable Proﬁtability

exchange rates of ¥85 against the U.S. dollar and ¥120

and Accommodate the Market Recovery

against the euro.

In view of the forecast that motorcycle demand indeveloped nations is unlikely to recover in the short term,
we are promoting further structural reforms to enable

Total demand and Yamaha unit sales(1,000 units)
2,706

2,683

proﬁtability premised on zero market expansion. To thisend, we have lowered the break-even-point for annual

1,031

production volume in Japan to 200 thousand units,

723
567

while striving to reduce ﬁxed costs. Speciﬁcally, we areworking to reorganize the manufacturing layout at factories

970

2,116

2,002

585

540

434

404

410
366

worldwide, downsize the workforce, and cut costs on a
global scale. We aim to reduce consolidated procurement
costs by 10% by procuring overseas parts.

275
197
163

167
122

On the sales front, we are strengthening our marketing
networks and aggressively implementing retail promotions,among other measures, to accommodate demand.

08
Results

92

110

09

We will continue reforming our business structure in

Total demand

Yamaha unit sales

this way in anticipation of a market recovery. At the same

EuropeEuropetime, these measures will enable proﬁtability even at

North America

North America

Japan

Japan

1,000cc YZF-R1 supersport

22

07

108

262

56
10

11
Forecasts

12

Note
Demand figures statedherein are based on
Yamaha Motor’s surveys.

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Motorcycle Business in Emerging Nations
Aggressive Quantitative and Qualitative Expansion
Note 1In the ASEAN region,

we plan to increase motorcycle

8.0 million units in the future.
In terms of proﬁtability in emerging nations, we intend

unit sales from about four million in ﬁscal 2009 to about 5.2

to increase the operating income margin to 10% in ﬁscal

million in ﬁscal 2012 by introducing competitive products2012 with more aggressive cost-cutting measures. Thesewith proprietary technologies onboard. These include theinclude developing local parts manufacturers in China and

YM-JET-FI fuel injection (FI) system, designed to enable

India, implementing concurrent engineeringNote 3 activities inhigher fuel efﬁciency for small-displacement scooters andthe ASEAN region, and promoting the supplementary partscommuter vehicles; and the compact, continuously variablesupply system.

Note 2transmission for mopeds,

known as Y.C.A.T. For details

For details on FI-incorporated models in the ASEAN

on the Y.C.A.T. system, please refer to “ Special Report 2:

region, cost-cutting and growth strategies in emerging

The LEXAM Development Story” on pages 28 to 31.

nations’ motorcycle markets, please refer to the “Interview

In China and India, we will aggressively releasewith the President” section (Q14 on page 20, Q11 on pageaffordably-priced models in the volume consumer segment,leveraging our already solid brand reputation in the highvalue-added segment. Thus, we aim to expand our unit
sales by approximately 80% (a roughly 60% increase in
China and about a 130% increase in India) in ﬁscal 2012,
from approximately 830 thousand units in ﬁscal 2009.
We will strive to increase total unit sales in all emerging

19, and Q13 on page 20, respectively).
Notes
1 ASEAN: Indonesia, Thailand, Vietnam, the Philippines, and Malaysia
2 A moped is a small motorcycle characterized by an easy-to-mount downward
curving mainframe and large-diameter (often 17 inch) tires on the front and rear. It
is also called an underbone-type motorcycle.
3 Concurrent engineering is a work methodology based on the parallelizationof tasks. It refers to an approach used in product development in which design
engineering, manufacturing engineering and other functions are integrated toreduce the elapsed time required to bring a new product to the market.

nations, from about 5.3 million units in ﬁscal 2009 to about
Total demand and Yamaha unit sales(1,000 units)

23,54023,41912,107

10,452

26,05825,20011,196

12,164

1,602

1,660

1,913

1,690

4,494
3,683

3,983

2,880

597
230

709
250

07

08
Results

827
193

970
226

09

Total demand

Yamaha unit sales

ASEAN

ASEAN

India+China

India+China

BrazilBrazil1011Forecasts

12

Note
Demand figures statedherein are based on
Yamaha Motor’s surveys.

Yamaha Bike Day 2009 — an event for Yamaha
motorcycle users — in Bali, Indonesia

23New Medium-term Management Plan:
Key Business Strategies
Outboard Motor Business
Attaining Far and Away the Top Share in thecollaboration with boat builders in the United States as well

Global Market

as our partners in Europe.

To maintain proﬁtability in the face of falling demand, we

These activities will enhance proﬁtability and accelerate

are building a business foundation that enables proﬁt at adevelopment of leading-edge environmental technologies,

break-even-point for annual production of 230 thousand

enabling us to attain far and away the top share in theunits in Japan.

global market.

On the product front, we have introduced environmentallyfriendly four-stoke outboard motors in some markets, aheadof the competition. To further solidify this advantage, weplan to launch a series of four-stroke medium and large
outboard motors in the rest of the world’s markets. We are

Total demand and Yamaha unit sales(1,000 units)
883

841

368

623

642

240

257

09

10

334

also targeting a 30% improvement in fuel efﬁciency in 2015
compared with 2007 Yamaha outboard motor models.
Meanwhile, we are promoting shared engine platforms to
improve proﬁtability for our next-generation line of fourstroke outboard motors. All the new products are compact,
lightweight, and highly fuel-efﬁcient.
In a bid to boost sales by expanding boat-andoutboard-motor package deals, we will strengthen ourWorking to expand boat-and-outboard-motor package deals

24

07

08
Results

Total demand

11
Forecasts

Yamaha unit sales

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

12

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

ATV BusinessRestructuring the Business Foundation

Total demand and Yamaha unit sales

As with motorcycles in developed nations and outboard(1,000 units)

motors, we are focused on reducing the break-even-point

1,028

in annual ATV

Note

837

production volume — from 140 thousand

604

units to 100 thousand — to maintain proﬁtability amid

518

decreased demand. In the effort, we are consolidating
ATV production, formerly split between Japan (Kakegawa)and the United States (Atlanta), to the factory in the

209
170

United States. The move brings production to the siteof consumption, the largest market in the world, which82

accounts for about 50% of total ATV demand. Together,

94

these restructuring measures seek to improve productivity
and proﬁtability. By building a foundation capable ofwithstanding the appreciation of the yen, and sales of just
100 thousand units, we aim to remain proﬁtable even at an
exchange rate of ¥85 against the U.S. dollar.

07

08
Results

Total demand

09

10

11
Forecasts

12

Yamaha unit sales

Notes•Demand figures stated herein are based on Yamaha Motor’s surveys.
•ATV is the abbreviation for All-Terrain Vehicle

700cc Grizzly 700 utility ATV

25

New Medium-term Management Plan:
Key Business Strategies
IM Business
Recovering Proﬁtability by Strengthening ProductCompetitivenessSurface mounters account for the majority of sales in
the Intelligent Machinery (IM) business. With demand for
IM products quickly recovering in China and other Asian
nations (excluding Japan), we are taking measures to

All of these measures aim to return the IM business to
proﬁtability by strengthening product competitiveness.
Total demand and Yamaha unit sales (Surface mounters only)(Units)
16,64011,000accommodate this growth.
First, we are expanding the product lineup. To win
greater satisfaction from existing customers and develop

5,750

7,500

2,640

new market demand, we are adding models to our
1,775

compact, high-speed modular surface mounter series, and1,240

introducing new products to the electric parts feeder series.

960

In addition, we will reduce business costs signiﬁcantly,
in a bid to improve proﬁtability. Meanwhile, we will
strengthen the marketing system in support of our sales
and service activities worldwide, differentiating the Yamaha
brand in global markets.

Total mounter solutions combine high performance machines
and superior peripheral equipment

26

07

08
Results

Total demand

09

10

11
Forecasts

Yamaha unit sales

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

12

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

PAS Business
Building on Yamaha’s Pioneer Image in Growing
Markets
In the electrically power assisted bicycle business, demandis increasing at a 10% annual rate in Japan. We have
responded with enhanced product development focused

For details on the growth strategy, please refer to “Q6”of the “Interview with the President” section on page 16.
Total demand in Japan and Yamaha unit sales(1,000 units)

on customer-oriented features, such as longer battery
life. We also intend to create new demand by expanding
the product lineup. On the marketing front, we will work

277

310

365

400

to strengthen our sales network and service capabilities,
toward making the Yamaha brand a prominent presence inthe market.
In the rapidly growing market in Europe, we will expand

100
69

68

07

08
Results80

the supply of power assist units and study the future
feasibility of marketing completed products.
These measures are designed to build on the Yamaha
image as the pioneer in growing markets.

Demand in Japan

09

10

11
Forecasts

12

Yamaha unit sales

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

Enhanced product development withthe focus on the customer

27

Special Report 2 The LEXAM Development Story

Innovative Technology Drives Demand forAutomatic Mopeds
We have introduced the LEXAM next-generation automatic moped in Vietnam.
Equipped with our exclusive, cutting-edge technologies, the LEXAM is poised
to tap the strong growth potential in the ASEAN region, delivering a newchapter in ASEAN motorcycle history.
Behind the LEXAM Launchfeaturing an air-cooled four-stroke 115cc engine, ﬁrst went

As with other products and markets, the global economic

on sale in Vietnam. Strategically, the LEXAM is designed

slowdown also had a negative impact on the motorcycle

to solidify the superior position of the Yamaha brand in

business in emerging nations. However, demand has

ASEAN markets and improve proﬁtability.

been steadily rebounding. In the ASEAN region, Yamaha
launched a series of automatic commuter vehicles aheadof its competitors, in 2002. These have been particularly
popular in the ﬁve ASEAN nationsNote where Yamaha Motor
operates, spearheading the steady proﬁtability of ourmotorcycle business — which accounts for about 70% ofconsolidated net sales.
Mopeds, in turn, comprise about 60% of motorcycle
demand in the ﬁve
ASEAN nations, a
hot market segment
for Yamaha Motor tolaunch the LEXAM.
This automatic model,

Note
Five ASEAN nations:
Indonesia, Thailand, Vietnam,
the Philippines, and Malaysia

The LEXAM next-generation automatic moped28

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Comparison of distance between sheaves
Mio vs. LEXAM

Mio commuter vehicle: 283.15mm

Financial Section

LEXAM’s engine is ascompact as a moped’s,
thanks to Y.C.A.T.

LEXAM moped: 119mm

Overcoming Development Obstacles

Therefore, manufacturers had considered it impossible toUnderbone-type motorcycles with 17 inch front and rearequip an automatic transmission unit to a moped without

tires, called mopeds, are an everyday transportation

making major external changes.

mainstay for people in the ASEAN region. Their large-

To meet this challenge, the project team envisioned

diameter tires offer stable performance. Coupled with higha completely new and innovative belt construction, withmobility, versatility, straightforward design, and affordable

special sheaves suitable for the belt, and a highly efﬁcient

price, this makes the moped a popular choice across all

cooling system. From the inception of the LEXAM project,

age groups.

the team focused on developing a breakthrough CVT

We were looking to develop a next-generation moped

system. It ﬁnally succeeded in 2009 — seven years after thewith a user-friendly automatic transmission, capable ofdevelopment project was initiated — with a compact CVT

delivering premium riding performance, while remaining

suitable for mopeds, known as Y.C.A.T. (Yamaha Compact

true to the classic moped mission of dependable basic

Automatic Transmission). Without this compact automatictransportation. The LEXAM development project was borntransmission, the project team could never have developed

from the belief that we could produce a high-quality ﬁt for

the next-generation LEXAM premium moped while still

the market, based on our superb technology. Although theretaining the basic performance of standard mopeds.

core concept is relatively simple — shrinking an automatictransmission mechanism to the size of a conventional
moped manual transmission — in practice it was a major
hurdle for the development team to overcome in bringing
the LEXAM to market.
Revolutionary Y.C.A.T.
The Continuously Variable Transmission (CVT) —an automatic transmission system — connects
the engine-side and rear wheel-side sheaves
with a V-belt. Because it provides a steplesstransmission ratio variation, the CVT represents
an ideal, smooth-running drive system for acommuter vehicle. However, a CVT is structurally
difﬁcult to mount on moped-type motorcycles.
The LEXAM cruising Vietnamese streets

29

Innovative Technology Drives Demand forAutomatic Mopeds
Four Key Factors

possible by using different materials for the engine-side and

There are four key factors behind the successful

rear wheel-side sheaves.

development of the exclusive Y.C.A.T.

The third factor is the all-new cooling system, developed

First, the Y.C.A.T. uses a newly developed “highly

to resolve the issue of heat created by friction between theelastic heat-resistant plastic resin drive belt” which provides

belt and sheaves and improve durability. This cooling system

excellent heat resistance and durability. This plastic resin

offers excellent water resistance and dust removal capability

belt is about twice as durable as the belts in our previous

to cope with the frequent ﬂood conditions motorcycles

commuter vehicles. It was reduced to about 60% theencounter in the ASEAN region. In addition, soundprooﬁng

length of conventional belts, allowing the Y.C.A.T. to ﬁt intomaterial is used throughout the cooling system anda crankcase roughly the size of those on traditional moped

elsewhere to reduce noise in air intake and outﬂow.

crankcase. Furthermore, the proprietary construction has

The last factor is a weight roller for more responsive

improved drive force transmission efﬁciency, enabling lower

gear shifting, with a direct, linear feel in power transmission.

fuel consumption.

The development team fully exploited the unique highThe second factor is the special design of the Y.C.A.T.’s

elasticity of the plastic resin belt, re-examined the weightsheaves. Factoring in the dissipation of friction heatroller for its effects on shifting characteristics, then worked

accumulated in the belt, among other considerations, theto optimize these characteristics in each stage of thesheaves are designed for optimal efﬁciency in transmitting

development process.

driving force and minimizing resin belt wear. All this is madeProject Team Members Talk about the LEXAM

L

EXAM has a true moped silhouette, but we strove toincorporate novelty into its design. We envisioned

a futuristic, uncluttered look that creates a clean feel forA

lot of work went into developing the Y.C.A.T. forcommercial production. Developing completely

unique technology is a time-consuming process, but

the viewer.

we ﬁnally got it done. We managed to combine all the

Mr. Jun Tamura
Chief Designer, Dynamic Design Dept.
GK Dynamics Inc.

beneﬁts of conventional mopeds with the unprecedented
smooth operation of automatic transmission. On top of
that, we met the demand for agile performance.
Mr. Tetsuro Ohnishi
LEXAM project leader
Yamaha Motor Co., Ltd.

30

Operating
Performance

Special Report

Message from theManagement

Overview ofOperations

CSR

Corporate
Information

Financial Section

Comments about the LEXAM

T

C

attention to detail that Yamaha builds into every bike.

Y.C.A.T.-equipped automatic moped. In addition to new

he LEXAM accelerates smoothly and is easy to ride,
thanks to the Y.C.A.T. I brag about its world-leading

technology, but I also like the sophisticated design and

Mr. Nguyen Anh Quan
LEXAM owner
Bank employee (Hanoi, Vietnam)

Power to Change Moped History

ustomers seem overwhelmingly positive aboutthe LEXAM. Many of them tell us they want

to experience the feel of the world’s ﬁrst advanced
technology, the LEXAM offers customers a sporty, stylish,
innovative, high-quality — yet affordable — product.
Mr. Tran Van Nghia (right)
Dealership sales manager
Yamaha Town Hanoi (Hanoi, Vietnam)

LEXAM look is clean and classy.

In addition to the convenience of automatic transmission,

In support of the LEXAM release, we are taking thethe Y.C.A.T.-equipped LEXAM offers many other beneﬁts

initiative in providing customers test-riding opportunities,

unique to the moped among commuter vehicles.

allowing them to experience the superiority of this new

With the center of gravity in the middle of the vehicle,

moped for themselves. Customers who look for Yamaha to

the LEXAM handles better than its conventional automatic

continuously offer something new will be pleased with thecounterparts, for providing more stability. Its compact

added dimension of riding pleasure the LEXAM provides —construction has reduced the unsprung weight around

all in a sporty, fashion-forward package.

the engine. This allows the suspension to function more

The next-generation LEXAM moped is about to write

effectively, offering both rider and passenger a morea new chapter in the history of the ASEAN motorcycle

comfortable ride. Meanwhile, large-diameter tires common

market, the culmination of user-friendly operation, superior

to mopeds improve performance on rough road surfaces.

driving performance and riding comfort, unparalleled

Another key to developing the LEXAM was the bold

convenience and captivating design.

and forward-looking design, complementing the machine’s
Y.C.A.T. cutting-edge technology. The LEXAM designconcept marries emotion and technology in a “sprintermoped.” With its sporty DNA and striking personality, the31Special Report 3

Yamaha Next-generation Vehicles Shape Future Dreams
At Yamaha Motor Company, we believe that creatinga smile on your face? Whether born of surprise, excitement

motorcycles is as much an art as a science. And as

or discovery, those moments of Kando are what we strive

Note

artwork, we want our creations to generate Kando.

Who

can explain exactly why leaning a motorcycle into a curve
makes you feel so good? What is it about the pulse of a
motorcycle’s engine that stirs Kando? Why does opening
up the throttle and feeling the rear tire bite into the road put

to create. We pursue Kando in every area to motorcycle
technology and design.
Note
Kando is a Japanese word for the simultaneous feelings of deep
satisfaction and intense excitement that people experience when
they encounter something of exceptional value.

EC-03*1
The EC-03 is a 100% electric commuter vehicle
mounting a slim electric power unit and lithium-ion
battery on a lightweight aluminum frame, embodying
the “Light, Smart, Clean and Silent” ideal. The charger
is built into the vehicle for easy recharging from a homeelectric outlet.

EC-f*1EC-fs*1

The EC-f and EC-fs are electric commuter vehicles designed to makemotorcycle riding comfortable for people of all ages, regardless of how
much or how little riding experience they may have. They feature simplicity
of operation that only an electric vehicle can provide, plus futuristic styling.
Ease of use and a smooth, quiet ride make these vehicles a joy.

32

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

PAS er*2
The PAS er is a prototype concept model pioneering amore advanced hybrid relationship between the rider andthe motor. It adopts a two-wheel-drive mechanism thatapplies the electric motor “assist” to both the front andrear wheels, and an automatic electronic transmission.
Together they make for a smooth, enjoyable ride — nomatter how road surface conditions change.

HV-X*3
HV-X is a compact hybrid system sized to ﬁt a
motorcycle. Like other hybrids, it is eco-conscious,with low emissions and improved fuel efﬁciency, but it
provides quality acceleration that riders can feel andcruising performance that they can enjoy.

Super Ténéré*4
Its development team calls the new Super Ténéré the“Ultimate Machine for Intercontinental Adventure.” It
inherits the design and development spirit of the original
Ténéré — the model that ran up a string of victories in the
Dakar Rally, one of the world’s toughest endurance races,
to win a strong following in Europe in the ’80s and ’90s.
The Super Ténéré achieves a ﬁne balance of the qualities
riders look for in an intercontinental long-distance touringmachine, including superior performance on unpaved
roads and light, agile cornering.

Note
Models denoted by *1, *2, and *3 are a reference vehicle, special exhibition vehicle, and special display,respectively, presented at the 41st Tokyo Motor Show 2009. The model denoted by *4 is a production
vehicle scheduled for 2010 release in Europe.

33

Overview of Operations

Motorcycles

Notes•Demand stated herein includes motorcycles made in China, India and Taiwan.
•Demand ﬁgures stated herein are based on Yamaha Motor’s surveys.

Motorcycle sales for ﬁscal 2009 decreased by ¥211.8 billion ($2,299.1 million),or 20.6%, from ﬁscal 2008, to ¥817.1 billion ($8,871.4 million), and accounted
for 70.8% of net sales. Operating income declined by ¥37.8 billion ($409.9
million), generating an operating loss of ¥4.2 billion ($45.1 million).
% of net sales in 2009

Sales by market in 2009

Unit sales(Billion ¥)(Thousand units)
6,000

98
(12.0%)

70.8%

38(4.7%) 58(7.1%)

144(17.6%)
479(58.6%)

Operating results
5,865 5,841
493 372

4,997
457
4,419
4,000 3,849
373
311
2,000

2,727 3,272

3,770North America

EuropeAsia

4,717 4,993

(%)
8.0

1,029

915

500

6.0

817

6.0

Other areas

0

6.0

4.0

4.4

3.3

250

2.0
33

55

63

34

05

06

07

08

(4) 0
09
-0.5

Sales
Operating income
Operating income margin (%)

Japan — Increased Market Share Despite

In view of this downward trend, we are putting marketing

Sluggish Demandemphasis on models such as the 1,680cc sport bike VMAX,

In Japan, motorcycle demand in ﬁscal 2009 decreased

1,000cc supersport YZF-R1, and 125cc Axis Treet scooter,

23.5% from ﬁscal 2008, to 434 thousand units, reﬂecting

hoping to expand their already robust sales. Meanwhile,the severe economic downturn. Demand fell signiﬁcantly in

we are strengthening the quality of the Yamaha exclusive

all motorcycle categories, with especially sharp declines indealer network, promoting sales of large scooters, andthe mini-sized category (engine displacement of 126cc toexpanding the lineup of 50cc standard scooter models.

250cc) and the Class-2 category (51cc to 125cc).

We also remain active in industry-wide efforts to resolve

Despite these harsh market conditions, the 50cc Jog

motorcycle parking problems and reduce high expressway

and new Jog ZR scooters sold well, which kept unit sales

tolls for motorcycles. All of these actions aim to maintainvirtually unchanged from ﬁscal 2008 in the Class-1 category

our unit sales for ﬁscal 2010 near the ﬁscal 2009 level, at(50cc and under). In the Class-2 category, the new 125cc

110 thousand units.

Axis Treet scooter enjoyed robust sales; however, overallunit sales in this category fell from ﬁscal 2008. In the minisized category, unit sales decreased, due mainly to a sharp
decline for scooters. Sales were also down in the smallsized category (251cc and over). Amid these challenging
business conditions, ﬁscal 2009 unit sales in Japan fell
11.5%, to 108 thousand. However, this decline was lesssevere than the rate at which overall market demand fell.
Meanwhile, the motorcycle sales amount also dropped, by
12.5%, to ¥38.0 billion ($412.8 million).
In ﬁscal 2010, motorcycle demand in Japan is forecast
to decrease 6.9% from ﬁscal 2009, to 404 thousand units.
34

1,056

750 760

421
407 410 366 275
207 197 167 92
0 223
167
161 163 122 108
05
06
07
08
09
Japan

(Billion ¥)1,000

125cc Axis Treet scooter

Sales
Operating inco
Operating inco
margin (%)

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Europe — Reducing Market Stocks in a

thousand units. Major reasons for this negative forecast

Challenging Business Climate

include continuing high unemployment rates, uncertainty

Motorcycle demand in Europe

Note 1for ﬁscal 2009

decreased 21.1% from ﬁscal 2008, to 2,116 thousand
units. Although the “scrap incentive”Note 2 initiated in Italy

about relaxing loan application screening, and terminationof Italy’s “scrap incentive” at the end of 2009.
Against this backdrop, we will strive to expand sales
by launching new models suchas the 125/250cc XMAX scooter,
800cc FZ8 sport bike and 1,200cc
XT1200Z (Ténéré) sport bike. We
will also strengthen the dealershipsthat offer advantages in marketing
commuter vehicles, and those thatcarry a full Yamaha model lineup,backed by high quality services.
These will be the core dealerships
for each territory. Furthermore, wewill aggressively promote a retailsales stimulus package, designed
to drive customer trafﬁc to Yamaha
dealerships and provide more
opportunities to test-ride Yamaha
motorcycles. However, these

800cc FZ8 sport bikeefforts notwithstanding, we expect

mitigated the fall in demand, buyer motivation remained

our shipping units to decrease by 4.7% in ﬁscal 2010, tolow, reﬂecting uncertainty about future economic

262 thousand.

conditions, and stricter screening of loan applications inFrance and Spain, where loan purchases make up a highpercentage of total transactions.
In ﬁscal 2009, Yamaha motorcycle unit shipments in
Europe decreased 24.9%, to 275 thousand. This wasNote 1
Demand in Europe includes both Western and Eastern Europe, as well as Turkey
and Russia.
Note 2
Scrap incentive: A government program offering consumers incentives to scrap theirold vehicles for new purchases, in order to stimulate sales and improve the economy.

attributable to demand plunging far beyond the predicted
decline, coupled with expanded sales of Chinese andTaiwanese models in a segment which has been enjoying
growth: low-priced scooters. Overall, the sales amountfell 33.2%, to ¥143.7 billion ($1,560.5 million). Production
cutbacks and selling out previous models successfully
reduced market stocks from 122 thousand units at theend of 2008 to 44 thousand at the end of 2009, a level webelieve is appropriate.
Europe’s economy is expected to recover gradually inthe second half of 2010. However, motorcycle demand forﬁscal 2010 will decrease 5.4% from ﬁscal 2009, to 2,002

250cc XMAX scooter

35

Motorcycles
North America — Stimulating Retail Sales andunits at the end of ﬁscal 2008 to 90 thousand at the end

Further Reducing Market Stocks

of ﬁscal 2009. Despite this improvement, market stocks

In ﬁscal 2009, motorcycle demand in North America

remain high in the United States. Therefore, we will continue

decreased 39.7% from ﬁscal 2008, to 585 thousand units.

reducing production volume and shipments, while working toThis reﬂects several factors: declining buying power as

stimulate retail sales, in order to roll back market stocks to 40

unemployment worsened amid the continuing recession;

thousand units at the end of ﬁscal 2010. At the same time,and a drop in loan purchases due to stricter screening of

we will work hard to enhance customer satisfaction throughloan applications.

initiatives such as the Pro-YAMAHA program, designed todevelop excellent dealerships. However,
we anticipate unit sales for ﬁscal 2010
will nevertheless decrease 39.1% fromﬁscal 2009, to 56 thousand.
ASIA (excluding Japan) —Spearheading Sales and Proﬁts in
Our Motorcycle BusinessIn ﬁscal 2009, motorcycle demand in
Asia (excluding Japan) increased 4.6%
from ﬁscal 2008, to 39,440 thousand
units. Demand decreases in Indonesia
and Thailand were more than offset bysteady gains in China and India, resulting
in an overall increase in the region.
Against this backdrop, ﬁscal 2009

1,680cc VMAX sport bikeIn response to plunging demand, we focused onin Asia (excluding Japan) increased
5.9%, to 4,993 thousand units, led by favorable sales inmarketing new models such as the 1,680cc VMAX

Indonesia, Vietnam and India. However, the sales amount

sport bike, 950cc XVS950 cruiser, and 1,000cc YZF-R1

fell 7.9%, to ¥479.0 billion ($5,200.5 million), reﬂecting thesupersport, while reducing market stocks by signiﬁcantly

negative impact of the stronger yen.

rolling back production. Despite these efforts, our unit sales

In ﬁscal 2010, motorcycle demand in Asia (excluding

in ﬁscal 2009 plummeted 44.9%, to 92 thousand, affected

Japan) is forecast to increase 0.5%, to 39,644 thousand

mainly by the slumping demand, coupled with the negative

units, almost on a par with ﬁscal 2009. The increase isimpact of the stronger yen. Thus, the sales amount also

attributable to demand recovery in Indonesia and Thailand

declined, by 45.9%, to ¥58.0 billion ($629.5 million).

combined with strong demand growth in India, although

In ﬁscal 2010, motorcycle demand in North America
is forecast to decrease 7.7% from ﬁscal 2009, to 540
thousand units, as unemployment rates remain stubbornly
high, and there is no sign of recovery in loan purchasing.
We reduced our market stock in the United States —the mainstay market in this segment — from 124 thousand

36

unit sales of Yamaha motorcycles

environmental regulations are likely to drive demand downin China temporarily.
We project that our ﬁscal 2010 unit sales will grow in all
markets in Asia (excluding Japan), increasing 13.9% fromﬁscal 2009, to 5,689 thousand units.

Operating
Performance

Message from theManagement

Special Report

ASEAN

Overview ofOperations

CSR

Corporate
Information

Financial Section

In Thailand, motorcycle demand for ﬁscal 2009

In Indonesia, the largest motorcycle market in the ASEAN

decreased 9.8%, to 1,536 thousand units, due to theregion, ﬁscal 2009 motorcycle demand decreased 11.7%

economic slowdown. Despite the unfavorable market

from ﬁscal 2008, to 5,692 thousand units, amid theconditions, our unit sales declined only slightly — byeconomic slowdown. However, our unit sales expanded

4.8% — to 432 thousand. This was mainly attributablesteadily — by 7.5% — to 2,651 thousand. This favorable

to the popularity of our mainstay 115cc Fino automatic

performance was attributable to two main factors. Sales

transmission commuter vehicle and the introduction of thewere robust for the new 115cc Vega-ZR, introduced in the

new 110cc Spark Nano manual transmission model.

low-priced mopedNote segment, which makes up about

In ﬁscal 2010, motorcycle demand in Thailand ishalf of the motorcycle demand in the market. We also

projected to increase 6.1% from ﬁscal 2009, to 1,630

enjoyed a signiﬁcant increase in unit sales of our automaticthousand units, thanks to the nation’s stable economic

commuter vehicles, a segment Yamaha pioneered, andgrowth. We anticipate an increase of 4.2% in our unit sales,

one in which we maintain a prominent presence. We areto 450 thousand, driven by aggressive new model releases,

convinced that the solid customer trust in the Yamaha

along with measures to enhance the sales network and thebrand we have built was also a major contributor to these

Yamaha brand image.

excellent results. Indonesian customers have trust in our
products, pricing and dealerships.

In Vietnam, motorcycle demand plummeted during
the second half of ﬁscal 2008, but recovered as signs ofMotorcycle demand in Indonesia in ﬁscal 2010 isan overall economic recovery began to appear in 2009.

forecast to increase 12.4% from ﬁscal 2009, to 6,400

Overall, ﬁscal 2009 motorcycle demand in Vietnam

thousand units. Demand will recover due to a combination

increased 1.3%, to 2,745 thousand units, remainingof factors — the nation’s demographic composition,nearly unchanged from ﬁscal 2008. Unit sales of Yamaha

its underdeveloped transportation infrastructure, andmotorcycles in ﬁscal 2009 climbed steadily — at arelaxation of loan application screening — all against asigniﬁcantly higher rate than overall market growth — rising

backdrop of a general economic recovery. We aim to take

34.2%, to 643 thousand.

advantage of these market conditions to increase unit

In ﬁscal 2010, motorcycle demand in Vietnam issales by 13.2%, to 3.0 million in ﬁscal 2010. Speciﬁcally,

projected to increase 2.4% from ﬁscal 2009, to 2,810

we intend to enhance the product lineup, run far-reaching

thousand units, due to factors including the nation’s

promotions, improve the sales network, ensure priceunderdeveloped transportation infrastructure and a growing

control, and build a stronger foundation for loan sales.

youth population, the strongest motorcycle purchasing
demographic. Meanwhile, Vietnamese consumers show
a strong desire for brand products that will translate
to demand for Japanese motorcycles. Against thisbackdrop, we plan to increase our unit sales by 12.8%,
to 725 thousand, by pursuing an intensive area marketingstrategy, strengthening sales capabilities, and enhancing
the Yamaha brand image among Vietnamese youth.
Note
A moped is a small motorcycle characterized by an easy-to-mount downward curving
mainframe and large-diameter (often 17 inch) tires on the front and rear. It is also called
an underbone-type motorcycle.

115cc Mio Soul automatic commutervehicle selling well in Indonesia

37Motorcycles
Promoting Safe and Proper Motorcycle Riding
the Yamaha Riding Academy (YRA) in 2008, to increaseawareness of safe and proper motorcycle riding skills.
YRA offers riding safety lectures and practical training
to people with motorcycle licenses, and runs programs totrain safe-riding instructors. In addition, YRA also operates
a motorcycle licensing program and gives the governmentadministered test to issue motorcycle operating licenses.
With motorcycle penetration increasing in ASEAN
markets, YRA is now training instructors for Yamaha
dealerships beyond Thailand, promoting safe riding andsafety awareness throughout the region.
We have long delivered high-quality motorcycles.
With our programs to promote safe and proper riding, weYamaha Riding Academy held by TYM

are also striving to show people how fun and convenient

Thai Yamaha Motor Co., Ltd. (TYM), our motorcycle

motorcycles can be.

manufacturing and marketing subsidiary in Thailand, started

Comment of YRA participantComment of YRA staff memberIBriding enjoyment. It was a perfect ﬁt

and safety consciousness for all riders.

for my lifestyle.

In this way, I can make a great social

love riding my big bike out of

Bangkok. The YRA program not

only increased my safety, but my bike-eing a YRA instructor and a TYM
representative is an honor. I have a

key role to play in promoting safe riding

contribution — better trafﬁc safety and thecreation of a zero-accident environment.
Mr. Nimibutra SakuludomthamBusiness Owner (Bangkok, Thailand)
Program: Large motorcycle riding safety

Mr. Chainarong Prasertsud
Head of Riding Activity Division (Bangkok, Thailand)

China — Rapid Response to Emission Regulations
In ﬁscal 2009, motorcycle demand in China rose 7.4%
from ﬁscal 2008, to 17.4 million units, reﬂecting the
economic recovery that began during the second half ofthe year. Against the backdrop of a recovering market,
we expanded our sales networks nationwide andimplemented aggressive promotions. These efforts paid
off with signiﬁcantly increased sales in both the scooter
and underbone product segments. Consequently, ouroverall ﬁscal 2009 unit sales in China increased 6.3%, to608 thousand.

38

Chongqing Jianshe·Yamaha Motor Co., Ltd. — the Company’s
motorcycle manufacturing afﬁliate in China

Operating
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In ﬁscal 2010, we anticipate a temporary dip in sales,demand growth supported by the economic recovery. We

primarily due to two negative factors. Market stocks have

have been marketing high-value-added models focused onincreased in the wake of surging product shipments inyounger consumers. We also plan to initiate a strategy to

the domestic market in ﬁscal 2009. Meanwhile, emission

expand the product lineup with a focus on versatility. With

regulations scheduled to take effect in July will increase

the new strategy, combined with a drive to enhance theretail prices. Fiscal 2010 motorcycle demand in China

sales network, we expect to achieve a 23.3% increase inis therefore forecast to decrease 9.3% from ﬁscal 2009,

unit sales, amounting to 270 thousand, in ﬁscal 2010.

to 15.8 million units. However, we plan to increase ourunit sales by 15.1%, to 700 thousand, in ﬁscal 2010, by

Latin America — Meeting Regional Requirements

expanding the lineup of products that comply with the new

In Latin America, total motorcycle demand in ﬁscal 2009

emission regulations.

decreased 22.6% from ﬁscal 2008, to 3.4 million units.
In Brazil, our mainstay market in the region, demandIndia — Aggressive Expansion Strategy

decreased 16.3%, to 1.6 million units, due primarily to

In ﬁscal 2009, motorcycle demand in India increased

the economic slowdown and stricter screening of loansigniﬁcantly — by 17.9% — from ﬁscal 2008, to 8.6

applications. Demand in Argentina, Colombia and Mexico
also declined substantially.
Amid these harsh market conditions,
our ﬁscal 2009 unit sales in Latin America
decreased 24.2%, to 322 thousand. The
regional decrease was attributable to a
22.8% drop in unit sales in our mainstay
market in Brazil, to 193 thousand, as
well as signiﬁcant declines in Argentina
and Mexico. However, our unit sales inColombia were only slightly lower thanﬁscal 2008.
Motorcycle demand in Latin America
for ﬁscal 2010 is forecast to remain almost
on a par with ﬁscal 2009, standing at 3.4
million units. In Brazil, motorcycle demand

A Yamaha dealership in India

is expected to increase 3.6%, to 1.7 million
units, reﬂecting steady economic growth,million units, as loan application screening was relaxed, thewhile other nations in the region are also likely to achieve

industry worked to stimulate demand, and the economy

gradual economic recovery. Anticipating a recovery inrecovered. Spurred by the strong demand growth, Yamaha

demand, we will implement sales strategies designed to

motorcycle sales climbed substantially, particularly formeet regional requirements with pinpoint precision. At

150cc sport bikes such as the FZ16 and the new Fazer.

the same time, we will aggressively launch new products,

Overall, unit sales of Yamaha motorcycles in ﬁscal 2009

aiming to increase our unit sales by 18.9% from ﬁscal

rose 61.0%, to 219 thousand.

2009, to 383 thousand in ﬁscal 2010.

In ﬁscal 2010, motorcycle demand in India is expected
to increase 8.8%, to 9.4 million units, owing to solid

39

Marine Products

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

Marine product sales for ﬁscal 2009 fell by ¥88.7 billion ($963.1 million), or
37.1%, from ﬁscal 2008, to ¥150.1 billion ($1,629.9 million), and represented
13.0% of net sales. Operating income decreased by ¥30.4 billion ($329.5
million), resulting in an operating loss of ¥24.3 billion ($263.6 million).
% of net sales in 2009

13.0%

Sales by market in 2009

Operating results(Billion ¥)(Billion ¥)300

31(20.5%)

24(15.8%)

7(4.4%)
34(22.5%)

55(36.8%)

250
200

(%)
12.0

290

267
9.9
8.7

12

239
9.7

8.0

100
Japan
North America
EuropeAsia
Other areas

8

150
4.0
2.5
25

23

05

06

28

0
07

6
08
-16.2

0
09
(24)

Sales
Operating income
Operating income
margin (%)

40

Outboard Motor Business — Demand Headed

markets by aggressively introducing lightweight four-stroke,

Toward Recovery

medium- and large-displacement models offering superior

In ﬁscal 2009, outboard motor demand decreased inperformance. We will also initiate area-speciﬁc marketing

emerging and developed nations alike amid the global

designed to maintain and enhance our market position.

recession. Total worldwide demand fell 25.9% from ﬁscal

Through these efforts, we plan to increase our unit sales

2008, to 623 thousand units. In these harsh businessfor ﬁscal 2010 by 7.1%, to 257 thousand.

conditions, we quickly reduced production volume andadjusted shipments in order to optimize the market stocklevel. We successfully completed the optimization in the
United States and Europe — mainstay markets for ouroutboard motors — in ﬁscal 2009. However, these readjustments, coupled with the negative impact of thestronger yen, decreased our unit sales in ﬁscal 2009 by
28.1% from ﬁscal 2008, to 240 thousand, and the sales
amount by 36.5%, to ¥82.2 billion ($892.5 million).
In ﬁscal 2010, total demand is forecast to increaseslightly from ﬁscal 2009, reﬂecting industry-wide market
stock optimization in the United States and Europe, as
well as the bottoming out of demand in Asia (excluding
Japan) and other nations. Nevertheless, a full-scale,worldwide recovery of demand is not yet on the horizon.
In this environment, we will work to expand sales in global

40

World’s most powerful 350-horsepower outboard motor, the F350A

Operating
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1,050cc VX cruiser

Personal Watercraft Business — Harsh Market

unit sales of our boats in ﬁscal 2009 fell 20.0%, to 690

Conditions to Continue

units, and the sales amount decreased 33.9%, to ¥7.8

In ﬁscal 2009, total demand for personal watercraft fellbillion ($84.7 million). The declines reﬂect the serious fall in

32.4% from ﬁscal 2008, to 73 thousand units, amid thedemand, although sales of our small, low-priced pleasure-recession. Unit sales of our personal watercraft in ﬁscal

use boats grew steadily.

2009 dropped 39.5%, to 26 thousand, while the sales

For ﬁscal 2010, demand for pleasure-use boats inamount plummeted 47.4%, to ¥25.5 billion ($276.9 million),

Japan is expected to recover. However, demand forreﬂecting a substantial decrease in sales in the Unitedutility boats and commercial ﬁshing boats is projectedStates — our mainstay market.

to continue declining. Consequently, total boat demand

In ﬁscal 2010, we project worldwide demand forin Japan is forecast to decrease 1.6% from ﬁscal 2009,

personal watercraft will decrease 4.1% from ﬁscal 2009,

to 2,473 units. We plan to increase our unit sales forto 70 thousand units, as the harsh business conditions are

ﬁscal 2010 by 3.9%, to 717 units, by introducing new,expected to continue. Against this backdrop, we intend to

low-priced, small- and medium-sized models into theincrease unit sales for ﬁscal 2010 by 3.8%, to 27 thousand,pleasure-use boat market, where demand is expected toby strengthening our marketing approach with a focus on

increase despite the generally harsh market conditions.

models such as the small, affordable VX Series cruisers.
Boat Business in Japan — Expanding Small
Pleasure-use Boat Sales
In ﬁscal 2009, demand for pleasure-use boats, utility boats
and commercial ﬁshing boats in Japan decreased, resulting
in a 22.3% decline from ﬁscal 2008, to 2,513 units, amid
the recession. Under these harsh business conditions,
EXULT 36 Sport Saloon cruiser

41

Power Products

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

Power product sales for ﬁscal 2009 dropped by ¥112.7 billion ($1,223.5
million), or 52.8%, from ﬁscal 2008, to ¥100.6 billion ($1,092.0 million), andcomprised 8.7% of net sales. Operating income plunged by ¥37.3 billion ($405.4
million), resulting in an operating loss of ¥33.8 billion ($366.6 million).
% of net sales in 2009

Sales by market in 2009

Operating results(Billion ¥)(Billion ¥)
300

8.7%

9
(8.8%)

14(14.4%)

4(4.3%)

21(20.4%)

52(52.1%)

(%)
15.0

266
250
11.8
11.0
227
213
200
8.4

10

27

28

0
05

06

22
07

1.7
4
08
-33.6

0
09
(34)

5

Sales
Operating income
Operating income
margin (%)

0

ATV/SSV Business — Fall in Demand Moderating

sales of ATVs and SSVs in ﬁscal 2009 by 66.4%, to ¥45.8

In ﬁscal 2009, total demand for all terrain vehicles (ATVs)

billion ($497.3 million).

decreased 27.8% from ﬁscal 2008, to 604 thousand units,amid the recession.

Although worldwide demand for ATVs is likely tocontinue declining, it is expected to bottom out in 2010

Unit sales of our ATVs in ﬁscal 2009 plunged 51.8%,

and then begin recovering. Before the turnaround begins,to 82 thousand. This decrease was mainly attributable tohowever, demand in ﬁscal 2010 is forecast to decrease

continued sales declines in the
United States — our mainstay
market — as well as Europe,
combined with the reductionof production volume andthe adjustment of shipments,
designed to optimize ourmarket stocks. Unit sales of ourside-by-side vehicles (SSVs) in
ﬁscal 2009 plummeted 89.5%,
to four thousand units, due tothe sluggish retail market. The
declines in demand, coupledwith the negative impact of
the stronger yen, decreased

700cc Rapter 700 sport ATV

42

10.0

101 5.0

100
Japan
North America
EuropeAsia
Other areas

15

Operating
Performance

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14.2%, to 518 thousand units. We will strive to increase

Golf Car Business — Worsening Business

unit sales of ATVs for ﬁscal 2010 by 14.6% from ﬁscal

Environment

2009, to 94 thousand, by strengthening our sales networks
to improve customer service, and implementing farreaching localized promotions in each region. We anticipate
SSV unit sales will decrease 25.0% in ﬁscal 2010, to three
thousand. This reﬂects the ongoing retail sales slump.
Snowmobile Business — Business Environment
Remains Challenging

The Drive electric golf cars

Worldwide golf car demand in ﬁscal 2009 decreased
22.8% from ﬁscal 2008, to 230 thousand units, amid
the recession. In this harsh business climate, we strove
to increase sales of electric golf cars that offer superb
environmental performance and high cost-performance.
Nevertheless, the unfavorable environment, coupled with
the negative impact of the stronger yen, sent unit sales ofour golf cars down 24.6% in ﬁscal 2009, to 43 thousand.
The sales amount also fell — by 28.3% — to ¥19.5 billion($211.7 million).
Generators and Other Power Products — Sluggish
Demand and Difﬁcult Climate
In ﬁscal 2009, sales of generators — our mainstay products
1,050cc Phazer M-TX snowmobile

in this segment — fell 15% from ﬁscal 2008, reﬂecting

Worldwide snowmobile demand in ﬁscal 2009 decreasedsluggish sales in North America and Japan, although sales

14.0% from ﬁscal 2008, to 117 thousand units, due

in China and Latin America steadily increased. Sales ofto the recession and reduced snowfall. We counteredother products in this segment dropped 23% from ﬁscal

this adversity by developing and promoting products

2008, due to sluggish sales

with superb environmental performance. Nevertheless,of multi-purpose engines insnowmobile sales in ﬁscal 2009 fell 37.9%, to 18 thousand

North America and slow sales

units, and the sales amount plunged 36.2%, to ¥13.9

of small-sized snow throwers

billion ($150.9 million). The decreases reﬂect stagnant salesarising from a late onset of thein the United States, our mainstay market, coupled withsnow season.

the negative impact of the stronger yen.
EF1600iS inverter-type generator

43

Other Products

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

Sales of other products for ﬁscal 2009 plunged by ¥37.1 billion ($402.9 million),or 30.2% from ﬁscal 2008, to ¥85.9 billion ($932.6 million), and made up 7.5%of net sales. Operating income fell by ¥5.5 billion ($59.9 million), resulting in an
operating loss of ¥0.4 billion ($4.2 million).
% of net sales in 2009

Sales by market in 2009

Operating results(Billion ¥)(Billion ¥)150 138 150 145
13.4
12.1
123

7.5%

11
(12.8%)
11(12.2%)
4(4.5%)

60(69.7%)

(%)
15.0

10.0

100

Japan
North America
EuropeAsia
Other areas

10

86

9.3

5.0

50

1
(0.8%)

15

4.2
19

18

14

05

06

07

0

5
08

(0) 0
09

5

Sales
Operating income
Operating income
margin (%)

0

-0.4

equipment and facilities. Against this backdrop,
unit sales of our surface mounters in ﬁscal 2009
fell 45.9%, to 960 units, negatively impacted bycorporate capital expenditure rollbacks amid
the recession. However, signs of sales recovery
emerged in the latter half of ﬁscal 2009 with therelease of the YS series product lineup — nextgeneration, modular surface mounters. Overall,sales in the IM business in ﬁscal 2009 declined
51.5%, to ¥15.1 billion ($164.0 million).
The decline in demand bottomed out in 2009,and surface mounter demand is expected toincrease steadily as corporate capital expenditures
High-performance, ultra-high-speed compact YS24 modular surface mounter44

recover moving forward. Accordingly, total demandin ﬁscal 2010 is forecast to climb some 30% fromIM Business — Sales Shift from Recovery toﬁscal 2009. In response to space- and cost-saving trends

Expansionin the market, we plan to introduce high-performance

Sales of surface mounters account for about 80% of themounting solutions featuring more productive, ultra-high-total sales in our Intelligent Machinery (IM) business. In ﬁscal

speed and compact YS24 and versatile, high-speed and2009, total demand for surface mounters fell by half fromcompact YS24X modular surface mounters, together withﬁscal 2008. However, there were some signs of demanda wide range of testers and other peripheral equipment, allrecovery in the second half of the year, mainly in Asia

while strengthening our overseas sales network. Through(excluding Japan), due to positive factors such as increased

these efforts, we intend to increase unit sales of our surface

investment in mobile phone and LCD TV production

mounters for ﬁscal 2010 by 29.2%, to 1,240 units.

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Automotive Engine Business — Signiﬁcant Decline
in Demand
We supply high-performance automobile engines —developed from technologies gained in our motorcycle
business — to automakers worldwide. We also sell
the Relative Absorber System (REAS), an automobile
suspension that delivers higher-quality driving comfort
and stability in passenger vehicles, and the Performance
Damper, an anti-vibration damper for automobiles, mainly
to automakers in Japan.
In ﬁscal 2009, automobile engine sales plunged
38.4% from ﬁscal 2008, to ¥24.1 billion ($261.7 million),as engine orders from automakers decreased dramatically

PAS Rafﬁni electrically power assisted bicycle

amid the recession.
awareness and health concerns. In addition, use of thesebicycles as commuter vehicles is also growing. We willcontinue proactively improving the products to meet
emerging user needs, and promoting these vehicles
aggressively, aiming to increase sales units in ﬁscal 2010by 20.4%, to 195 thousand units.
Other Products — Business Conditions Remain
4,800cc V10 automobile engine

Harsh
Other products in this business segment include unmanned

PAS Business — Maintaining Steady Sales

industrial helicopters, the intermediate parts that are

In ﬁscal 2009, total demand for electrically power assisted

supplied to each business segment within Yamaha Motor,

bicycles in Japan increased 17.7% from ﬁscal 2008, to 365

and astaxanthin — manufactured and sold as an ingredient

thousand units, favorably impacted when local governments

in health supplements in the Life Science business. Sales

lifted their ban on the release of models designed tofrom these products in ﬁscal 2009 decreased 19.1%

accommodate two infants. We expanded the lineup of

from ﬁscal 2008, to ¥34.7 billion ($376.8 million), due to amodels that comply with the revised law, and strengthened

continuing fall in demand.

promotions, for example offering more frequent events with
test-riding opportunities. As a result, our unit sales in ﬁscal
2009 increased 18.2%, to 162 thousand, while the sales
amount rose 21.2%, to ¥12 billion ($130.3 million). Bothﬁgures include OEM-supply units.
Total demand in ﬁscal 2010 is forecast to increase 9.6%
from ﬁscal 2009, to 400 thousand units, as the number ofcustomers purchasing their ﬁrst electrically power assisted
bicycles grows rapidly, in tandem with rising environmental

45

Other Products
Backdrop of the Robust PAS Business

Offering Optimal Products and Services to Meet Diverse Needs
In Japan, the law regulating the assist rate of electricallyNote 1

power assisted bicycles was revised

All of these moves aim to develop optimal products

in December

for diverse customer needs and applications. At the same2008. In response, we developed the new S.P.E.C.Note 2time, we are focused on enhancing customer service, by,mechanism, designed to supply the optimum power assist

for example, integrating product maintenance, inspection

over a wider speed range for gear setting. The systemand other services, and improving our corporate lease andprovides a stronger, smoother, more effective power assist

rental capabilities.

across the entire operating range, from starting throughacceleration and cruising. We are now expanding thelineup of S.P.E.C.-equipped models.
We have introduced new models that comply withJapan’s recently adopted safety standard for bicycles with
two infant seats, which took effect in July 2009. Our design

Note 1
The maximum ratio of pedaling force to assist power at speeds lower than 15 km/hour was 1 to 1 in the previous version of the law. The recent revision changed thismaximum assist ratio to 1 to 2 or less at speeds under 10 km/hour.
Note 2
S.P.E.C. is the abbreviation for Shift Position Electric Control.

complies with the revision and enforcement of the rule ineach prefecture, as implemented under the auspices of theprefecture’s public safety commissioner.

Comments about the PAS

M

ore and more of today’s customers emphasize
design features such as color and style in theirpurchasing decisions. Against this backdrop, I believe
Yamaha brand products rate highly among customers
seeking more stylish, sporty models.
Mr. Masayori Iizumi (right)
Owner of ASSIST — electrically power assisted bicycle
specialty shop (Tokyo, Japan)Ichose the PAS Brace because I liked its stylishdesign. When I learned Yamaha Motor built theworld’s ﬁrst electrically power assisted bicycles, I grew
still more conﬁdent in Yamaha Motor’s engineeringsuperiority and track record. It was a major factor in
selecting the PAS Brace.
Mr. Yuta Seto
Company employee (Tokyo, Japan)

46

Operating
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Racing Activities

Fiat Yamaha Team rider Valentino Rossi
won the championship at the 17th Valencia
round of the 2009 MotoGP.

The 17th Valencia round of
the 2009 MotoGP

Yamaha — a Big Winner in 2009 World Motor Races
Racing is a venue where Yamaha sets itself apart andmakes its presence known around the world. We have longtaken advantage of the opportunity by entering various
competitions worldwide, but 2009 was a particularly
memorable year, crowned with victory in motorcycle races
around the globe.
In the world’s premier motorcycle road race, the
MotoGP, we won the triple crown — Rider, Manufacturer
and Team titles — for the second consecutive year. Also, inthe greatest of all motocross competitions — the MotocrossWorld Championship MX1 — we took home the Rider and

The second Bulgaria round of the 2009
World Motocross Championship MX1

Manufacturer titles. Meanwhile in the World Superbike,Championship for the second straight year — the ﬁrst time

World Supersports, AMA Supercross and World Endurance

this has been accomplished in Japan.

Championships, we won the rider championships.
Back home, we captured triple victories in the roadrace, motocross and trial categories of the All Japan

In the ASEAN region, we have been promoting
motorsports with our sponsorship of the annual Yamaha
ASEAN Cup Race since 2003.
Our “spirit of challenge” has been fostered by racing,but it has also been at the core of our technologicaldevelopment and manufacturing activities since ourfounding. We consider racing a key to advancing
technology. Experience and expertise gained throughracing activities are fed back into all Company processes
to upgrade quality. Thus, achieving growth through racing

The seventh Yamaha AEAN Cup Race in Indonesia

is an integral part of our corporate culture.

47

Corporate Social Responsibility

Environmental Preservation

Participants in the ﬁfth Yamaha Forest
tree-planting project, 2009

During the ﬁve-year period, we planted approximately

Five-year Yamaha Forest Tree-planting Project

112,000 seedlings on about 120 hectares in total.

Completed
The Yamaha Forest Tree-planting Project, a joint effort

Beyond tree-planting, participants held special classes

by Yamaha Motor Co., Ltd. and Yamaha Corporation

at local elementary, middle and high schools, designed toin Indonesia, began in 2005. It reached completion inraise the awareness of the natural environment. The project

March 2010.

also donated school supplies such as writing materials,

The project sought to contribute to the local
community, support education, and preserve the regional

desks and sports equipment; and helped build watersupply facilities.

environment through tree-planting events. It was organizedwith support from OISCA international, a Japanese NGO
with an extensive record of achievement in environmental
preservation, agricultural assistance and other developmentin the Asia-Paciﬁc region.

Tree-planting in the United StatesIn April 2009, employees at the Yamaha Motor
Corporation, U.S.A. (YMUS), our North American

regional headquarters, were joined by their families in avolunteer effort to plant trees and clear forest roads for offroad vehicles in the San Bernardino National Forest. This,in turn, was part of the larger Off-road Protection Program.
More than 100 participants planted 1,200 seedlings.

Employees of YMUS and their families volunteered
to plant trees in the forest.

48

Operating
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Working to Maximize Customer Satisfaction
Promoting YTA

YTA in Brazil

Yamaha Motor believes that meeting customer needs

Our subsidiary, Yamaha Motor do Brasil Ltda. (YMDB), hasmeans giving them a sense of conﬁdence by improving thejust introduced the YTA program in its marine business.

quality of “frontline” response and services that dealer staff

Committed to raising the level of service in Brazil byprovide. In the effort, we are promoting our Yamaha Technicalcertifying more dealerships and staff, YMDB launched theAcademy (YTA) at dealerships worldwide. YTA is a systematic

program in cooperation with the Brazilian public sector

approach to providing dealers with the knowledge, customer

organization Servigo Nacional de Aprendizagem Industrial

and service skills they need at every stage — from the initial(National Industrial Training Service). YTA operates at a Sãopurchase and after-sales maintenance all the way through toPaulo training center established to accommodate dealers

the customer’s next purchase.

throughout Brazil, but the training program has also been

The YTA program offers wide-ranging lectures, supported
by practical training and certiﬁcation examinations in a variety

expanded beyond São Paulo by sending instructors who
have mastered the YTA curriculum to other regions.

of areas, including product handling and maintenance underConsidering that the vast nation stretches roughly

different conditions. Manuals and training materials are also

4,000 km north to south, and the same distance east

prepared in several languages.

to west, and is characterized by a signiﬁcant economic

As of the end of December 2009, YTA was active

disparity between urban and rural areas, a key to the YTA

in 22 nations, with 5,673 service staff having acquired

mission is providing training opportunities to as many

program certiﬁcation.

people as possible.
YMDB is working to increase the synergy between
the developing motorcycle business and its YTA
program, hoping to leverage the program’s energy toprovide employment opportunities in support of the local
communities it serves.

Hands-on training and lectures at theSão Paulo training center

49

Social Action Programs

The Japan women’s rafting team “The River Face”— second-year winners of a YMFS grant — won
the silver medal at the World Rafting Champs
Banja Luka 2009 in Bosnia and Herzegovina.

Furthering Sports and Physical Education

Prize publicly honored the achievements of individuals inestablished in Japan to promote sports and encourage

the sports community. Its Distinguished Service Award

physical education. It helps people realize their sport andrecognized the work of people who have pioneered andlife aspirations.

helped promote sports for years, while the Encouragement

In the 2009 period (April 2009 through March 2010),

Award was given to an individual whose spirit of challenge

the Foundation awarded grants totaling ¥28 million to 26

powered great achievement and suggests an inﬂuential

individuals and groups through the YMFS Sports Challenge

sports career ahead.

Experience and Research Assistance Program. The
Foundation also granted one-year scholarships totaling¥6 million to 5 students and researchers in the YMFSInternational Sports Scholarship program. The scholarshiptargets domestic and overseas exchange students pursuingﬁelds that popularize sports around the world.

50

This year, the Foundation’s YMFS-Sports Challenge

The Yamaha Motor Foundation for Sports (YMFS) was

Each winner received a medal, a certiﬁcate, andprize money.

Operating
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Support for Guide Dog Training
Yamaha makes annual donations to the Japan Guide
Dog Association through the “Yamaha Nice Ride” charity
program. Funds go toward raising and training guide dogs.
In the 20 years since the program began in 1989, it has
raised a total of approximately ¥74 million.

Donations from the “Yamaha Nice Ride” program presented
in a ceremony held in July 2009

Family Bike Classes
In a bid to help people enjoy motorcycling more safely,
we conduct various motorcycle promotional and safety
awareness activities worldwide. One such event, theFamily Bike Class, employs specially trained instructors
to help children learn the way motorcycles work as theyexperience the fun of motorcycling. Family Bike Classes
enable children and their parents to share the enjoymentthat motorcycles offer.
Family Bike Classes held in Moscow in June 2009 drew
29 parent-and-children pairs.
Family Bike Classes in Moscow

Thai Subsidiary Boasts Award-Winning Employee
Training Programs
Since 2005, Thai Yamaha Motor Co., Ltd. (TYM), ourmotorcycle manufacturing and marketing subsidiary inThailand, has been offering training programs for staff andmanagers, aimed at developing work skills and proﬁciency.
Five aspects of the program, including contribution to thecompany management, won the Excellence in Practiceaward from the American Society for Training & Development(ASTD) in June 2009. YTM became the ﬁrst ASTD award
winner in the ASEAN region.
TYM’s management team received the ASTD award.

51

Corporate Information

Corporate Governance
Basic Corporate Governance Policies

formed to deliberate matters of business execution, speeding

Yamaha Motor Co., Ltd. (the “Company”) recognizes thatup the Company’s decision-making process.

corporate governance is an important tool to ensure disciplined
management and maximize long-term corporate value. Based

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

on this realization, the Company has been striving to speed
up management decision-making; make the accountability2) Executive Personnel Committee

system clearer; develop a transparent system of director

In August 2001, the Company established the Executive

selection and remuneration; and establish an internal control

Personnel Committee as an advisory body of the Board ofsystem. Because it is one of its most important management

Directors, in order to improve transparency in nominating

issues, the Company also plans to implement other measures

candidates for Director and Executive Ofﬁcer, and toto strengthen and solidify corporate governance. At the same

determine the remuneration for these officers. The

time, the Company is enhancing Investor Relations services, in

Committee is comprised of several full-time Directors andorder to build on the relationship of trust with its shareholders

several Outside Directors of the Company, in addition toand investors.

the President and Chief Executive Ofﬁcer. It deliberates
on candidates for Director and Executive Ofﬁcer, theOrganizations and Systems for Management

remuneration and bonus system, and the overall direction

Decision-Making, Business Execution andof governance.

Supervision
3) Corporate Auditors and the Board of Corporate Auditors
1) Directors and the Board of Directors

As of March 25, 2010, the number of Corporate Auditors

The Company introduced an Executive Ofﬁcer system

stood at ﬁve (5), of whom three (3) are Outside Corporate

to expedite business execution. It then strengthened

Auditors. Corporate Auditors attend Board of Directors,

management supervision by clarifying the respective roles

Management Committee and other important meetings, inof Executive Ofﬁcers and the Board of Directors. Executive

addition to executing audits, receiving business execution

Ofﬁcers are responsible for “business execution” itself, while

reports from Directors, perusing important documents in

the Board of Directors is charged with “approving the basic

the decision-making process, and conducting audits at thepolicies of the Yamaha Motor Group and supervising theCompany’s subsidiaries. In terms of their relationship withGroup’s business execution.”

accounting auditors, they review accounting audit reports

The Company’s Articles of Incorporation stipulate that theto conﬁrm their appropriateness pursuant to laws andnumber of Directors shall not be more than ﬁfteen (15). As of

ordinances, and coordinate exchanges of information andMarch 25, 2010, there were eleven (11) Directors, four (4) ofopinions with the accounting auditors whenever necessary.

whom are Outside Directors. The Board of Directors will in

Corporate Auditors also work with the Internal Auditing

principle meet once every month, and whenever else it may

Division, receiving reports on internal audit planning andbe necessary.

the results of the internal audits, in order to enhance the

The Articles also stipulate that resolutions for the election

effectiveness of their auditing.

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

In support of these audit services performed by Corporate

held by the shareholders present at the General Meeting ofAuditors, the Company has established the Corporate Auditor’s

Shareholders. These voting shareholders must hold shares

Ofﬁce, with staff exclusively dedicated to assisting auditors.

representing, in the aggregate, not less than one-third (1/3) of thevoting rights of all shareholders entitled to exercise the rights and4) Internal auditing

not using cumulative votes.

The Company established an Internal Control Auditing Division

As of March 25, 2010, there were twenty-four (24)52(consisting of twenty-one (21) staff members as of March 25,

Executive Ofﬁcers, and seven (7) Directors concurrently

2010), under the direct control of the President and Chief

serving as Executive Ofﬁcers. A Management Committee

Executive Ofﬁcer. The Division audits, based on annual audit

comprised of Executive Ofﬁcers with speciﬁc posts has beenplans, the appropriateness, reasonableness, and efﬁciency

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

Corporate
Information

CSR

Financial Sectionof business execution at the Company and each Groupaudited 19 matters in Japan and nine matters overseas. In thecompany, and submits evaluations and makes proposals.

ﬁscal year ending December 31, 2010, it plans 18 audits inIn the ﬁscal year ended December 31, 2009, the Division

Japan and four overseas.

5) Yamaha Motor’s corporate governance system and internal control system
General Meeting of Shareholders
Appointment/
Dismissal

Appointment/
Dismissal

ReportSeeking advice
Makingrecommendations

Executive Personnel
Committee
Business Execution
Seeking advice
Makingrecommendations

Management Committee

Appointment/
Dismissal

Board of Directors

Corporate Auditors
Board of Corporate Auditors

Audit

5 Corporate Auditors(including three Outside Auditors)

11 Directors(including four Outside Directors)

Accounting Auditor

Corporate Auditor’s Office
Audit

Appointment/
Dismissal
Supervision

Agreement to appointments
Judgment of accounting audit authenticity

Excanges of information and opinions

ReportAccounting audit

Reporting businessexecution situations
ReportPresident, Chief
Executive Officer andRepresentative Director

Making recommendations(Examination of important issues,
etc.)

Seeking advice

Instruction

ReportRisk Management andCompliance Committee
Instruction

ReportInternal Control Auditing
Division
Instruction

ReportLogistics and Security
Trade Division of Finance& Accounting SectionNote

Internal audit

Business sectors, Functional sectors, Corporate sectors, Subsidiaries
Note
The Security Trade Control Center was integrated into the Logistics and Security Trade Division as of January 1, 2010, in order to synergistically strengthen trade control.

Matters to Be Resolved at the General Meeting of

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

Shareholders that Can Be Adopted at the Board ofresolution of the Board of Directors, exempt its Directors

Directors Meeting(including former Directors) and Corporate Auditors(including former Corporate Auditors) from liabilities for

1) The Company’s Articles of Incorporation stipulate that thedamages arising from negligence of their duties, within the

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

limits prescribed by laws and ordinances. This is to ensureacquire its own shares, in accordance with the provisions

that Directors and Corporate Auditors can successfully fulﬁllof Paragraph 2 of Article 165 of the Company Law.

their expected roles.

This is to ensure that the Company can acquire its own
shares through market transactions or other methods and3) The Company’s Articles of Incorporation stipulate that theimplement a ﬂexible capital policy response to changes in

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

the management environment.

pay interim dividends, with June 30 of each year designatedas the record date, in accordance with the provisions of2) The Company’s Articles of Incorporation stipulate that

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

in accordance with the provisions of Paragraph 1 of

the Company ﬂexibility in returning proﬁts to shareholders.

53Corporate Governance
Remuneration and Other Compensation for Directors

remuneration to shareholder value. However, the performanceand Corporate Auditors

based remuneration system does not apply to compensation

The Company’s Directors’ Remuneration Plan is comprisedfor Outside Directors and Corporate Auditors.

of basic compensation (monthly salary) in a ﬁxed amount,

Retirement beneﬁts for Directors were abolished at

Directors’ bonuses, reﬂecting the short-term performance ofthe conclusion of the 70th Ordinary General Meeting of

the Company overall, compensation linked to each Director’s

Shareholders held on March 29, 2005. However, retirement

individual performance, a stock compensation plan reﬂecting

beneﬁts for Directors during their terms in ofﬁce up to thatthe medium- to long-term performance of the Company

date will be paid when each Director resigns, in accordance

overall, and share warrants offered as stock options.

with the resolution for payment approved at the 73rd Ordinary

The stock compensation plan allows Directors to acquire

General Meeting of Shareholders held on March 26, 2008.

a certain number of the Company’s shares monthly throughthe Company’s Director Shareholding Association, and to

The amount of remuneration for the Company’s Directors
and Corporate Auditors in ﬁscal 2009 is as follows:

hold the shares while in ofﬁce, thus further pegging Director(Million ¥)Classiﬁcation
Remuneration based on Articles of Incorporation or resolutions approvedat the General Meeting of Shareholders(Outside Directors or Corporate Auditors)
Bonuses to Directors and Corporate Auditors as an appropriation of
earnings(Outside Directors or Corporate Auditors)

Directors
AmountNumberpaid

Corporate Auditors
AmountNumberpaid

Total
AmountNumber
paid

13
(4)

273
(27)

6
(3)

72
(20)

19
(7)

345
(48)

—
(—)

—
(—)

—

—

—
(—)

—
(—)

Notes
1 In addition to the remuneration listed above, ¥55 million salaries are paid to Directors and concurrent employees, as the equivalent of salary to employees.
2 The above amounts include remuneration from stock options.

Improving Investor Relations (IR)Outside Directors and the Outside Corporate Auditors only

The Company has been aggressively pursuing IR activities

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

worldwide, designed to ensure accountability by providing

because they committed serious negligence in executing

shareholders and investors with appropriate, accurate andtheir duties.

timely information regarding the Company’s management
performance and business operations. They include quarterly

Vested Interests of the Outside Directors and Outside

ﬁnancial results brieﬁngs, an “IR road show” for overseas

Corporate Auditors at Yamaha Motor Co., Ltd.

investors, efforts to improve information disclosure on theOutside Director Shuji Ito holds shares of the Company. In

IR homepage, and interviews in response to requests fromaddition, he is concurrently serving as Corporate Special

analysts and media.

Advisor of Yamaha Corporation, which holds 14.8% (as ofDecember 31, 2009) of the Company’s shares, and with which

Overview of Agreements that Limit Liabilities for

the Company has business transactions, including products

Damagesand merchandise. In addition, Mr. Ito is concurrently serving

The Company has entered into agreements with Outside

as President of the Yamaha Music Foundation, with which the

Directors and Outside Corporate Auditors, in accordance with

Company has transactions, including paying sponsorship andthe provisions of Paragraph 1 of Article 427 of the Company

other fees.

Law, which limit these executive’s liabilities (as speciﬁed in
Paragraph 1 of Article 423 of the Company Law) for damages.

and Yuko Kawamoto, and Outside Corporate Auditors

The upper limit of liability for damages in the agreements is the

Naomoto Ohta, Norihiko Shimizu and Tetsuo Kawawa have noamount as speciﬁed in the Law.

special interests in the Company, other than holding shares of

The Company limits liabilities for damages charged to the54

Outside Directors Masayoshi Furuhata, Eizo Kobayashi

the Company.

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

State of Audit

Basic Policy Regarding the Internal Control System

The Company has designated Ernst & Young ShinNihon LLC as

and the State of Its Development

the independent auditing company with review responsibilities

The Company, in accordance with the Company Law,

for Company audits. Certiﬁed Public Accountants who engaged

passed a resolution at a Board of Directors meeting regarding

in the certiﬁcation of audit are as follows.

development of a system to ensure the conduct of its business

Kazuhiro Fujita
Designated Limited Liability and Engagement Partner

is appropriate. The Company considers risk management

Shinji Tamiya
Designated Limited Liability and Engagement Partner

continuing to develop the internal control system.

Masahiko Tsukahara
Designated Limited Liability and Engagement Partner

1) Systems to ensure Director compliance with

The number of continuous years the Certiﬁed Public

1. The Board of Directors shall supervise Directors in the

Accountants have served the Company is omitted because it

execution of their responsibilities, to ensure that theis under seven (7) years for all of them.

Directors exercise the duty of care and duty of loyalty to theand compliance its most important issues, and is therefore

laws, regulations and the Company’s Articles ofIncorporation

Ernst & Young ShinNihon LLC has introduced a voluntarystandard of good administrators. The Board is also charged

system for rotating engagement partners in its employ so thatwith ensuring that all Directors’ activities are lawful.

none exceeds a certain number of years in continuous service.

2. Corporate Auditors, in accordance with the criteria andSupport staff for the audit includes six (6) certiﬁed public

methodology established by the Board of Corporate

accountants and twenty-nine (29) other assistants.

Auditors, shall audit the performance of the Directors’ duties.
3. The Company shall maintain a robust posture against

Special Resolution Requirement for General Meeting

antisocial forces that threaten the order and safety of civilof Shareholders

society. It shall reinforce this commitment in its Code of Ethics.

The Company has stipulated a special resolution requirement

4. The Company shall form such organizations and develop

at General Meeting of Shareholders in the Articles ofsuch rules as necessary to ensure that the Company andIncorporation, in accordance with the provision of Paragraph 2

its subsidiaries maintain appropriate ﬁnancial information,of Article 309 of the Company Law, as follows: The resolution

and prepare and release reliable ﬁnancial statements.

shall be authorized by a two-thirds (2/3) majority of the voting
rights held by the holders of shares present at the General

2) Disposition of documentation and other information

Meeting of Shareholders. These voting shareholders must holdconcerning the performance of Directors’ duties

shares representing, in the aggregate, not less than one-third

Documents and other forms of information on the(1/3) of the voting rights of all shareholders entitled to exercise

performance of Directors’ duties shall be properly

the rights.

maintained and administered in accordance with bylaws.

This relaxes the number of required votes for special
resolutions at any General Meeting of Shareholders, enabling
shareholder meetings to progress smoothly.

55

Corporate Governance3) Rules relating to risk control against loss

3. An internal reporting system shall be established to directly

1. A Risk Management and Compliance Committee shallinform top executive management concerning any unlawful

be established to formulate and promote measures foract, or the possibility of illegal or improper activity that could

integrated risk control.
2. Control of each serious risk factor shall be assigned to adamage trust and conﬁdence in the Company.
4. The Company shall maintain a robust posture against

speciﬁc section, which shall work to mitigate the risk factor

antisocial forces that threaten the order and safety offor which it is responsible.

civil society. It shall reinforce this commitment in its

3. A risk management manual shall be developed and utilized
to ensure integrated control of individual departmental risk
management activities.
4. If a serious crisis arises, an Emergency Countermeasures
Headquarters shall be established as provided in the

Code of Ethics.
5. The Company shall form such organizations and develop
such rules as necessary to ensure that the Company andits subsidiaries maintain appropriate ﬁnancial information,and prepare and release reliable ﬁnancial statements.

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

4) Systems to ensure efﬁcient execution of Directors’
duties

1. In order to assure proper business conduct by theGroup, internal policies shall be established, deﬁning

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

the controlling sectors in charge of each subsidiary,

President and Chief Executive Ofﬁcer and sector heads, andresponsibilities, authority, management methods ofthe system for transferring authority between them, shallsubsidiaries, and other rules.

be better deﬁned by strengthening the Board of Directors

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

Company and its subsidiaries, an internal auditing sector

This will allow these ofﬁcers to execute their responsibilities

shall be established under the direct control of the President

more efﬁciently.

and Chief Executive Ofﬁcer.

2. Resolutions to be proposed at the Board of Directors’Meetings shall ﬁrst be subject to deliberation by theManagement Committee and other relevant committees toensure they are appropriate and meet procedural criteria forsubsequent deliberation by the Board of Directors.
3. After the medium-term management plan and the budget
for the ﬁscal year are formulated, management control
systems such as “management by objectives” shall be

3. Each Japanese subsidiary, in principle, shall have a Boardof 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 ofanother company in the Group.
5. The section supervising compliance shall provide
subsidiaries with guidance and education on compliance.

established to achieve the plan’s goals and targets.
7) Employee to assist Corporate Auditors
5) Systems to ensure employee compliance withfull-time employee dedicated to assisting the Corporate

Incorporation

Auditors in the execution of their duties.

1. A Risk Management and Compliance Committee shall beestablished to deliberate and offer opinions concerningcompliance measures.
2. The Company shall enhance its Code of Ethics, and provide
ethics and compliance training appropriate to each positionin the Company.

56

A Corporate Auditors’ Ofﬁce shall be established with alaws, regulations and the Company’s Articles ofOperating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section8) Employee assisting Corporate Auditors independence
from Directors
1. Any dismissal or personnel changes concerning theemployee assisting Corporate Auditors in the execution of
their duties shall be approved by the Board of Corporate
Auditors in advance.
2. No employee assisting Corporate Auditors in the executionof their duties shall concurrently hold a post involving
other business operations. The employee shall perform
his or her duties under the direction of the Corporate
Auditors, whose opinions shall be taken into considerationin evaluating the employee.
9) Rules concerning Directors and employees reportingto the Board of Corporate Auditors
Directors and employees shall report on the following
matters to the Board of Corporate Auditors periodically, or,when necessary, at its request.
1. Establishment and operation of internal control systems,
and related subjects
2. Results of internal audits conducted by the internal
audit section
3. Operation of the internal reporting system, and receipt
of reports
4. Director malpractice and/or acts conducted in violation of
the law or the Company’s Articles of Incorporation

Takeover Defense Measures Against Attemptsof Mass Acquisition of the Company’s Shares
Yamaha Motor Co., Ltd. (the “Company”) resolved
at the Board of Directors Meeting held on February
12, 2010 to continue the takeover defense measuresagainst attempts of mass acquisition of the Company’s
shares originally adopted at the 72nd Ordinary General
Meeting of Shareholders and the Board of Directors
Meeting on March 27, 2007. The extension wasconditioned on approval of partial revisions protecting
shareholders and investors (the measure so revised
hereinafter the “Plan”) at the 75th Ordinary General
Meeting of Shareholders on March 25, 2010 (hereinafter
the “2010 Ordinary General Meeting”).
The 2010 Ordinary General Meeting was held
according to schedule, and the Plan was duly adopted.
For details concerning the Plan, please refer tothe February 12, 2010 press release “Announcement
Concerning the Renewal of Takeover Defense Measures
Against Attempts of Mass Acquisition of the Company’s
Shares” (http://www.yamaha-motor.co.jp/global/
news/2010/0212/prevent.html)
The Company intends to observe the provisions of
the Plan in the ongoing effort to protect and increase
the common interests of its shareholders.

5. Incidents that could cause the Company considerable damage10) Other systems to ensure effective auditing by
Corporate Auditors
1. The Representative Directors shall meet with the
Corporate Auditors periodically to exchange opinions.
2. Corporate Auditors shall attend important meetingsof bodies including the Management Committee, theRisk Management and Compliance Committee, and the
Expanded Executive Committee.
3. The internal audit section shall explain its internal audit plan
to Corporate Auditors in advance.
4. The minutes of the Management Committee meetings andany other meetings that the Board of Corporate Auditors may
specify, and Decision-making Forms shall be made available
for Corporate Auditors’ perusal.
5. Auditing assistance from outside experts shall be secured
when deemed necessary by the Board of Corporate Auditors.

57

Directors, Corporate Auditors and Executive Ofﬁcers(As of March 25, 2010)

Board of Directors
President andRepresentative Director

Representative Director

Hiroyuki Yanagi

Takaaki Kimura

Director

Director

Director

Director

Director

Toyoo Ohtsubo

Yoshiteru Takahashi

Masahito Suzuki

Hiroyuki Suzuki

Kozo Shinozaki

Director

Director

Director

Director

Shuji Ito*

Masayoshi Furuhata**

Eizo Kobayashi**

Yuko Kawamoto*** Mr. Shuji Ito is an Outside Director, and Corporate Special Advisor of Yamaha Corporation** Outside Director

Corporate Auditors
Haruhiko Wakuda

Tsutomu Mabuchi

Naomoto Ohta***

Norihiko Shimizu***

Tetsuo Kawawa******Outside Corporate Auditor

58

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Executive Ofﬁcers
President andChief Exective Ofﬁcer

Senior Managing Executive
OfﬁcerManaging Executive Ofﬁcer

Managing Executive Ofﬁcer

Hiroyuki Yanagi

Takaaki Kimura

Toyoo Ohtsubo

Yoshiteru Takahashi

Senior Executive Ofﬁcer

Senior Executive Ofﬁcer

Senior Executive Ofﬁcer

Senior Executive Ofﬁcer

Masahito Suzuki

Hiroyuki Suzuki

Kozo Shinozaki

Nobuya Hideshima

Senior Executive Ofﬁcer

Senior Executive Ofﬁcer

Senior Executive Ofﬁcer

Yoshiaki Hashimoto

Kunihiko Miwa

Masahiro Takizawa

Executive Ofﬁcer

Executive Ofﬁcer

Executive Ofﬁcer

Executive Ofﬁcer

Toshimitsu Iio

Masao Furusawa

Nobuaki Shiraishi

Tadakazu Ishibashi

Executive Ofﬁcer

Executive Ofﬁcer

Executive Ofﬁcer

Executive Ofﬁcer

Souichi Sasagawa

Hajime Yamaji

Toshizumi Kato

Hiroshi Yoshii

Executive Ofﬁcer

Executive Ofﬁcer

Executive Ofﬁcer

Executive Ofﬁcer

Takahiko Goan

Masato Adachi

Masanori Kobayashi

Yoichiro Kojima

Chief General Manager of Product
Assurance Center, Chief General
Manager of Business Development
Managing Unit, and Chief General
Manager of Smart Power Business
Development Managing Unit

Senior General Manager of Human
Resources & General Affairs Section

President of Yamaha Motor
Manufacturing Corporation of America

Executive General Manager of BoatBusiness Unit, Marine Business
Operations

Executive General Manager ofOverseas Market Development
Operation Business Unit

Chief General Manager of Marine
Business Operations, Executive
General Manager of Water Vehicle
Business Unit, Marine Business
Operations, and Chief General
Manager of Automotive Business Unit

Chief General Manager of
Manufacturing Center, and Chief
General Manager in charge of power
product business

Senior General Manager of Engineering
Section, Motorcycle Business
Operations, and Executive General
Manager of Commuter Vehicle
Business Control, Motorcycle Business
Operations

Senior General Manager of Technology
Infrastructure Section, Technology
Center, and General Manager in chargeof MS* development for Engineering
Section, Motorcycle Business
Operations

President of Yamaha Motor Europe N.V.

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

Chief General Manager of Technology
Center, and Chief General Manager of
IM* Business Unit

Senior General Manager of Finance &Accounting Section

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

Chief General Manager of Procurement
CenterSenior General Manager of Corporate
Planning Section, General Manager ofCorporate Planning Division, Corporate
Planning Section, and Chief General
Manager of Parts Business Unit

Executive General Manager ofRecreational Vehicle Business Control,
Motorcycle Business Operations

Senior General Manager of Sales
Section, Motorcycle Business
Operations

Executive General Manager ofSmart Power Business Development
Managing Unit, Executive General
Manager of Electric Vehicle
Business Control, Motorcycle
Business Operations, and Senior
General Manager of PAS* Business
Development Section, Smart PowerBusiness Development Managing Unit

Executive General Manager ofBusiness Development Managing
Unit, and Senior General Manager of
New Business Development Section,
Business Development Managing Unit

Senior General Manager of Engine
Manufacturing Section, Manufacturing
CenterExecutive General Manager of Marine
Engine Business Unit, Marine Business
Operations, and General Manager ofOverseas Marketing Division, Marine
Engine Business Unit, Marine Business
Operations

Executive Ofﬁcer

Katsuaki Watanabe

Senior General Manager of Body
Manufacturing Section, Manufacturing
Center*Abbreviations:
IM: Intelligent Machinery
MS: Motor Sports
PAS: Electrically Power Assisted Bicycle

59Organization(Yamaha Motor Co., Ltd., as of February 1, 2010)

General Meeting of Shareholders
Board of Corporate Auditors

Internal Control Auditing DivisionCorporate Auditor’s Office

Human Resources & General Affairs Section
Human Resources Development Division

Board of Directors

General Affairs Division
President & CEO*Group Administration Division

Management Committee

CSR* Planning Division

Risk Management and Compliance Committee

Finance & Accounting Section
Finance & Accounting Division
Logistics and Security Trade Division
Process & IT* Division
Business Management DivisionCorporate Planning Section
Corporate Planning DivisionTokyo Office
Legal & Intellectual Property Division
Advertising Division
Product Assurance Center
Technology Center
Research & Development Section
Manufacturing Technology Section
Technology Infrastructure Section
Manufacturing Center
Manufacturing Planning Section
Body Manufacturing Section
Engine Manufacturing Section
Procurement Center
Cost Innovation Section
Motorcycle Business Operations
MC* Business Control
CV* Business Control
RV* Business Control
EV* Business Control
Business Strategy Section
Product Planning Section
Sales Section
Engineering Section
Quality Assurance Section
Marine Business Operations
Marine Engine Business Unit
Cost Development Section
Engineering Section
Manufacturing Section*Abbreviations:
CEO: Chief Executive Officer
CGM: Chief General Manager
CSR: Corporate Social Responsibility
IT: Information Technology
MC: Motorcycle
CV: Commuter Vehicle
RV: Recreational Vehicle
EV: Electric Vehicle
IM: Intelligent Machinery
PAS: Electrically Power Assisted Bicycle

Water Vehicle Business Unit
Boat Business Unit
CGM*

Automotive Business Unit

CGM*

Overseas Market Development Operation Business Unit

CGM*

Parts Business UnitCGM*

IM* Business Unit

CGM*

Business Development Managing Unit
Pool Business Development Section
Aeronautic Business Development Section
New Business Development Section

CGM*

Smart Power Business Development Managing Unit
PAS* Business Development Section
EV* Business Development Section

CGM* in charge of power products business

60

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Risk Factors
The Yamaha Motor Group faces a variety of risks which have

Market Competition

the potential to signiﬁcantly affect investor judgments about

The Group is exposed to intense competition in many of thethe Group. These are discussed below. Forward-looking

markets in which it does business, and such competition may

statements in this section are based on the information

prevent the Group from advantageous product pricing. Intense

available to the Group as of March 26, 2010.

market competition increases pressure on Group proﬁts, andthis proﬁt squeeze can become especially pronounced when

Risks Related to Business Operations

market demand slackens. Although the Group must continue

For risks discussed below, to which our business isintroducing attractive new products in order to maintain or gain

normally exposed, the Yamaha Motor Group (“the Group”)

an advantage amid tough competition, there is no assurance

incorporates hedging policies in its business plans, and takesthat the Group can in fact allocate sufﬁcient resources tohedging measures in its medium-term management plandevelop such new products. Furthermore, there is no way toand budgets. The Group also closely monitors conditions

assure that the Group can successfully market the products it

and developments, and promptly responds to changes.

does develop with the resources invested.

Meanwhile, the Group is currently addressing important issues
as it works to accelerate business structural reforms. These

Currency Fluctuations

are intended to swiftly build a proﬁtable structure and lay the

Most of the motorcycles and outboard motors sold in volume

groundwork for future growth.

by the Group in North America and Europe are manufactured

However, uncertainties in the business environment

in Japan and exported as completed products. Therefore,surrounding the Group may negatively impact these efforts.

ﬂuctuations in the exchange rates of the Japanese yen

For example, the planned reorganization of the global

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

manufacturing layout may be delayed beyond the period

euro, signiﬁcantly impact not only the Group’s sales, but also

speciﬁed in the new (ﬁscal 2010-2012) medium-term

proﬁts and other results. Generally, the appreciation of the

management plan. Likewise, it may take longer than originally

yen against other currencies has a negative impact, whileplanned to return Group businesses to a proﬁtability track

the yen’s depreciation positively affects the Group’s businessafter structural reforms are implemented. The Group may

performance. Although the Group uses hedging instruments in

not realize the degree of savings from cost reductions it had

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

expected. Serious risks may occur, beyond the capability of

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

these measures to accurately respond. Such risks, in turn,currencies, dramatic exchange rate ﬂuctuations may impact

may prevent the Group from achieving the medium-termplanned procurement, production and marketing activities.

management plan targets, and may adversely impact the

Furthermore, by utilizing hedging instruments, the Group

Group’s business performance, by, for example, necessitating

potentially loses proﬁts that would result from the exchange

an additional impairment loss on ﬁxed assets.

rates moving in the direction opposite the hedge forecast.
The Group’s business results and ﬁnancial standing are stated

Economic Conditions

based on the consolidated ﬁnancial statements, prepared by

The Group conducts businesses in nations and regionstranslating local-currency-denominated business results of thearound the globe, including Japan, North America, Europe,

Company’s overseas subsidiaries into yen. Thus, ﬂuctuations

and Asia. In these markets, purchasing our products may notin the exchange rates of the yen against these currencies may

be essential or imperative for consumers. Moving forward, thehave a signiﬁcant impact on their results, and, in turn, theGroup’s business performance may be negatively impacted

Company’s consolidated ﬁnancial statements.

if recovery is delayed in the wake of the ﬁnancial crisis andeconomic slowdown triggered by the subprime debacle in theBusiness Operations in Overseas Markets

United States. In this case, leisure spending may continue to

The Group does business in many nations and regions arounddecline in developed nations, further diminishing demand in

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

markets where the Group does business.

sales to net sales for the ﬁscal year ended December 31,
2009 stood at 88.7%. Particularly in the motorcycle business,

61

Risk Factors
sluggish sales in developed nations make the Group

Retirement Beneﬁt Obligation

increasingly dependent on sales and proﬁts in Asian and

The Group’s employees’ retirement beneﬁts and the obligation

other emerging markets. In the more strategically important of

thereto are computed by applying actuarial assumptions

these markets, the Group may forecast growth in demand or

to the discount rate and the expected rate of return on the

anticipate developments that will strongly impact neighboring

pension asset fund. Should the actual results differ from thenations and regions. In these situations, the Group may needassumptions, or should the assumptions change, the effects

to make large strategic investments long before any proﬁt cangenerated by these events are calculated cumulatively, thus

be expected. If factors that could not be anticipated when

repeatedly impacting results — and, generally, expenses andthe investment decisions were made should subsequently

obligations — in the future. Therefore, decreases in discountmaterialize in those nations and regions, such as changes

rates, and/or lower than expected returns from pension asset

in governments’ currency exchange policies, foreign

management, may have a negative impact on the Group.

investment policies, and tax systems, demand may decrease
substantially, possibly delaying or entirely preventing recovery

Unrealized Loss on Landof the investment.

Pursuant to the “Law Concerning the Revaluation of Land,”the fair value of land at December 31, 2009 was lower than

Joint Ventures

the book value after the revaluation by ¥5.3 billion, resulting in

In some nations and regions, the Group operates businesses

unrealized loss. Consequently, the unrealized loss on land may

through joint ventures with local enterprises, due to legal andmaterialize when the land is sold, thus negatively impacting

other requirements in those nations and regions. These joint-

the business performance of the Group.

venture businesses may be affected by factors involving theGroup’s business partners, such as the policies or conditions

Natural Disasters and Others Factorsof their management.

Natural disasters, diseases, wars, terrorism, and other
unforeseen events may affect the operations of the Group,

Dependence on Suppliers for Procurement of Certain

directly or indirectly. Speciﬁcally, the occurrence of any of theseRaw Materials and Parts

incidents or events could delay or disrupt Group operations.

The Group procures raw materials, parts, and other goods

Furthermore, if Group manufacturing plants or other facilities

used to manufacture products from many suppliers outside

are directly damaged, substantial expenditure may be required

the Group, and relies heavily on several key suppliers forto repair or replace the damaged facilities.

certain items. Whether the Group can continue procuring
these raw materials and parts efﬁciently at low cost depends

Signiﬁcant Risks Related to the Business Foundation

on many factors, some of which, such as market conditions

The Group has identiﬁed signiﬁcant risks which may negatively

and natural disasters, are not within the Group’s control.

impact its business foundation, and which require priority
countermeasures. The Risk Management and Compliance

Dependence on Corporate Customers

Committee conducts integrated management of such risks

The Group not only supplies consumer products such as

and implements the countermeasures. As for individual

motorcycles and outboard motors to consumer markets,risks considered signiﬁcant, the Company is to clarify the

but also automobile engines to automakers and surface

department in charge, whereupon that department works tomounters as OEM products to corporate customers. Sales ofdecrease the risk. Should even more serious risks than these

automobile engines and surface mounters through the OEMmaterialize, an Emergency Countermeasures Headquarters

business may be affected by factors outside the Group’s

headed by the President and Chief Executive Ofﬁcer will becontrol, such as the management and procurement policies oforganized, in order to establish a system for minimizing thethe client companies.

damage and negative effects. Main risks of this nature aredescribed below. If an incident more severe than assumed incontingency planning occurs, it may negatively affect businessresults of the Group.

62

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Product Liability

Protection of Intellectual Properties

Recognizing that it is our social responsibility to provide

The Group protects its many patent rights, trademark rights, andproducts of high quality, the Group manufactures motorcycles

other intellectual properties, which help differentiate the Group’s

and other products at its factories worldwide under a strictproducts from others, through legal measures and procedures.

quality assurance system, based on the Group’s Quality

However, in some nations and regions where the Group

Assurance Standards. However, it is practically impossible tooperates, complete protection of intellectual property rights

ensure zero defects for all products or eliminate the possibility

may not be possible, or intellectual property rights may only beof recalls in the future. Consequently, the Group is covered withprotected on a limited basis. In such nations and regions, theproduct liability insurance, but there is no assurance that theGroup may not be able to exercise its intellectual property rights

maximum amount of compensation provided by the insurance

to effectively prohibit the production of similar products.

policy can provide the total amount required. Furthermore,situations may arise in which the Group is unable to continue

Tokai Earthquake

purchasing the insurance policy under acceptable conditions

The Group’s main Japanese factories are concentrated infor the Group. Should a large-scale recall or a product defectan area subject to “intensiﬁed measures against earthquake

trigger a product liability case, the Group could incur majordisasters” in anticipation of a potentially severe predicted

expenses, and its credibility could be damaged. Such aearthquake, referred to as the Tokai Earthquake. The Groupdevelopment may decrease sales and negatively affect businesshas been promoting seismic retroﬁtting for its main buildings

results of the Group. In order to provide for the payment ofand structures, establishing systems that will facilitate early

liabilities that may not be covered by product liability insurance,

post-earthquake restoration, and regularly reviewing these

the Group allocates an accrual for product liabilities at ansystems and measures with the aim of minimizing damage

estimated amount of payment, based on the actual results

and achieving early restoration in the event of an earthquake.

in past years. Such provision notwithstanding, however, theHowever, an earthquake exceeding the Group’s predicted

development of product liability lawsuits — particularly cases

magnitude could occur. The buildings and inventories owned

involving side-by-side vehicles in the United States — couldby the Group are covered by earthquake insurance policies,

adversely effect the Group’s business performance.

but earthquake damage may exceed the maximum collaterallimits for such assets and properties.

Environmental and Other Regulations
In many countries and regions where the Group operates,

Information Management

the Group and its products are subject to a wide range ofProtection of personal and/or conﬁdential information,

environmental and other regulations, encompassing productincluding customer information, is essential for maintaining

safety, fuel economy, exhaust emission levels, and the

a company’s credibility and ensuring smooth businesslevels of pollutants generated from manufacturing facilities.

operations. The Group takes extensive measures to protect

These regulations may be revised and made stricter in

information assets, such as establishing corporate regulations,the future. The Group has been promoting environmental

conducting in-house education, and constructing information

preservation activities, in accordance with the “Yamaha

security systems. However, there is no guarantee that leaks

Motor Group Global Environmental Policy” and the “Yearor unauthorized transfers of information will not occur. Should

2010 Yamaha Motor Group Environmental Action Plan,”such an incident occur in the Group, the reputation of thesuch as formulating green procurement guidelines to reduceGroup would be damaged considerably, and the Group could

environmentally hazardous emissions from products andbe held liable for damage caused to customers. Dependence

factories, and establishing dedicated teams. Nevertheless,on information systems, as well as their importance in the

major changes in the regulations or laws in the countries andGroup’s business activities, continue to grow. Therefore, if anregions where the Group does business may necessitate

information system should fail to function properly, the Group’s

signiﬁcant further expenditure.

operations, business performance, and ﬁnancial conditions
may be negatively impacted.

63

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

1956

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

1957

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

1958

•Took 6th place in ﬁrst attempt at the Catalina
Grand Prix in the U.S. (International racing
debut)•Yamaha de Mexico established1960•Yamaha International Corporation (YIC) foundedin the U.S.

1961

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

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

1963•Pearl Yamaha in India started production andsales of mopeds•RD56 set a new record in winning the Daytona
Grand Prix in the U.S.
•Won ﬁrst 250cc class in the Belgium GP leg ofthe World GP

1964•Boat production business transferred from
Nippon Gakki•Won 1st Japan Motocross GP in the 251cc andabove class•Captured ﬁrst manufacturer and rider titles in the
250cc class (RD65) of the road race World GP•Siam Yamaha founded in Thailand•Yamaha Motor acknowledged in Japan as acompany contributing to exports

64

1965

•Won 125cc class at the Isle of Mann TT Race in
the World GP for ﬁrst time
•Captured manufacturer and rider titles for thesecond consecutive year in the 250cc class of
the road race World GP

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

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

1976•YZR750 ﬁnished 1-2 in the 13th All Japan
Grand Prix Road Race

1977

•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•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•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

1969

1980

1968

•Yamaha Motor Malaysia began local productionof motorcycles•Completion of Yamaha test course at Fukuroi
City•R&D California opened in the U.S.
•Joint venture with Benemoto Co. to produce
motorcycles in Venezuela

1970•Yamaha Motor do Brasil (YMDB) founded•Took 250cc class manufacturer and rider titlesat the road race World GP (TD2)•Service center opened in Guangzhou andBeijing, China•Took rider title in the 250cc class of theMotocross WGP

1971

1982

•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

1975

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

1981

•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 wonﬁrst place in the All Japan F2 ChampionshipSeriesOperating
Performance

Message from theManagement•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

1988•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

1989•West Zakspeed Yamaha team formed in
Yamaha’s ﬁrst F1 challenge

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

1991•Established 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

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

1993•European distribution center began operationsin the Netherlands•Announcement of the Action Plan forEnvironmental Conservation•Signed agreement with Brunswick Co. in the
U.S. to jointly develop 4-stroke outboard motors

1994•Technical tie-up for manufacture and sale ofsurface mounters with Phillips EMT•YZF750 won the 58th Bordeaux 24-Hours
Endurance Road Race
•Yamaha victorious in the 6th Whitbread Roundof the World Yacht Race

1995

•Escorts Yamaha Motor Ltd. established in India•Yamaha Motor Thailand establishedSpecial Report

Overview ofOperations

1996•Yamaha Motor Argentina S.A. (YMARG) founded•PT. Yamaha Motor Parts Manufacturing
Indonesia (YPMI) founded•Yamaha motorcycles, snowmobiles, ATVs
acquired ISO9002 certiﬁcation

1997•Yamaha Motor Nuansa Indonesia (YMNI) founded•Motorcycle service skills training center openedin Colombia•Second-place ﬁnish at the Hungary F1 GP world
championships

1998•Yamaha Motor Asia Pte. Ltd. (YMAP)
established in Singapore•Yamaha Motor Marketing Japan Co., Ltd.
established

1999•Announced 2010 Environmental Action Plan,
Eco Cite YAMAHA•Nine Yamaha Motor factory and ofﬁce sites
acquired ISO14001 certiﬁcation•Production of motorcycles began at Yamaha
Motor Vietnam Co., Ltd. (YMVN)

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

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

2002•Initiated three-year medium-term management
plan, NEXT50•Yamaha branding strategy launched•Production of scooters for the Japanese market
transferred to Yamaha Motor Taiwan (YMT)

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

2004

Corporate
Information

CSR•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)

Financial Section•Won manufacturer, team & rider titles at the
MotoGP•Won the manufacturer and rider titles in the
MXI class of the Motocross WGP, repeating the2003 success•OOO Yamaha Motor CIS (YMCIS) established in
Russia•Completed the Life Science Laboratory, an R&D
center for the biotechnology business

2006•PT. Yamaha Motor Manufacturing West Java(YMMWJ) began operation (Indonesia)•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
established2007•Yamaha Motor Philippines, Inc. (YMPH) began
manufacturing and sales of motorcycles•Announced CF magnesium die casting
technology and the world’s ﬁrst use of thetechnology in rear frames of mass-produced
motorcycles•Yamaha Motor’s ﬁrst health supplement,“ASTIVO,” launched in the market

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

2005

•Initiated new three-year medium-term
management plan, NEXT50-Phase II•50th anniversary65Principal Subsidiaries and Afﬁliates(As of December 31, 2009)

Consolidated Subsidiaries
Company

Location

Principal business lines

Japan
1

Yamaha Motorcycle Sales Japan Co., Ltd.

Minato, Tokyo

Marketing of Yamaha Motor products

2

Yamaha Kumamoto Products Co., Ltd.

Yatsushiro, Kumamoto

Manufacture of outboard motors and other products

3

Yamaha Motor Powered Products Co., Ltd. (YMPC)

Kakegawa, Shizuoka

Manufacture of power products, shock absorbers and motorcycle frames

4

Yamaha Motor Electronics Co., Ltd.

Mori-machi, Shizuoka

Manufacture of motorcycle electric parts

U.S.A.
5

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

Los Angeles, California

Regional headquarters for North America

6

Yamaha Motor Manufacturing Corporation of America(YMMC)

Atlanta, Georgia

Manufacture and marketing of golf cars, and manufacture of personal
watercraft and all-terrain vehicles

7

Century Boat Company, Inc.

Panama City, Florida

Manufacture and marketing of FRP boats

8

Skeeter Products, Inc.

Dallas, Texas

Manufacture and marketing of FRP boats

9

Precision Propeller Industries, Inc. (PPI)

Indianapolis, Indiana

Manufacture and marketing of stainless steel outboard motor propellers

10 Tennessee Water Craft, Inc.

Knoxville, Tennessee

Manufacture and marketing of FRP boats

11 Yamaha Golf-Car Company (YGC)

Atlanta, Georgia

Marketing of golf cars

12 Yamaha Motor Distribution Latin America Inc. (YDLA)

Miami, Florida

Distribution of spare parts and accessories

TorontoMarketing of motorcycles, all-terrain vehicles, outboard motors, personal
watercraft and snowmobiles

14 Yamaha Motor Europe N.V. (YMENV)

Amsterdam

Regional headquarters for Europe

15 Yamaha Motor Netherland B.V. (YMNL)

Amsterdam

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

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

Amsterdam

Management of group companies in Germany and UK

17 Yamaha Motor France S.A. (YMF)

Paris

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

18 MBK Industrie (MBK)Saint Quentin

Manufacture and marketing of scooters, outboard motors and bicycles

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

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

20 Motori Minarelli S.p.A.

Bologna

Manufacture and marketing of motorcycle engines

Milan

Procurement of components and parts

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

Canada13 Yamaha Motor Canada Limited (YMCA)

The Netherlands

FranceItaly

21 Yamaha Motor Research & Development Europe S.r.l.

(YMRE)Spain
22 Yamaha Motor España S.A. (YMES)

Portugal
23 Yamaha Motor Portugal S.A. (YMP)

United Kingdom
24 Yamaha Motor (UK) Limited (YMUK)Germany
25 Yamaha Motor Deutschland GmbH. (YMG)

Sweden26 Yamaha Motor Scandinavia AB (YMS)

Russia27 OOO Yamaha Motor CIS (YMCIS)

Australia
28 Yamaha Motor Australia Pty Limited (YMA)

New Zealand
29 Yamaha Motor New Zealand Limited (YMNZ)

66

Operating
Performance

Message from theManagement

Special ReportCompany

Overview ofOperations

Corporate
Information

CSR

Location

Financial Section

Principal business lines

Brazil30 Yamaha Motor do Brasil Ltda. (YMDB)São Paulo

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

31 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

35 PT. Yamaha Indonesia Motor Manufacturing (YIMM)

Jakarta

Manufacture and marketing of motorcycles

36 PT. Yamaha Motor Kencana Indonesia (YMKI)

JakartaMarketing of motorcycles

37 PT. Yamaha Motor Manufacturing West Java (YMMWJ)

Karawang

Manufacture of motorcycles

38 PT. Yamaha Motor Parts Manufacturing Indonesia (YPMI)

Jakarta

Manufacture and marketing of motorcycle parts

39 PT. Yamaha Motor Nuansa Indonesia (YMNI)

Jakarta

Manufacture and marketing of water puriﬁers

40 Yamaha Motor Asia Pte. Ltd. (YMAP)Singapore

Financing center for Asia production bases

41 Yamaha Motor Distribution Singapore Pte. Ltd. (YDS)

Singapore

Distribution of spare parts and accessories

Hanoi

Manufacture and marketing of motorcycles

Hanoi

Manufacture of motorcycle parts

44 Thai Yamaha Motor Co., Ltd. (TYM)

Bangkok

Manufacture and marketing of motorcycles

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

Bangkok

Regional headquarters for ASEAN nations

LagunaManufacture and marketing of motorcycles

47 Yamaha Motor Taiwan Co., Ltd. (YMT)

Taipei

Manufacture and marketing of motorcycles

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

Taipei

Export of motorcycles

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

TaipeiResearch and development of motorcycles

50 India Yamaha Motor Pvt. Ltd. (IYM)

Delhi

Manufacture of motorcycles

51 Yamaha Motor India Sales Pvt. Ltd. (YMIS)

Delhi

Marketing of motorcycles

Shanghai
Shanghai

Procurement of parts and raw materials from within China and supply tooverseas Yamaha production bases, etc.
Marketing of Yamaha-brand motorcycles made in China, and after-sales
service and marketing of parts for those products

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

Zhuzhou, Hunan

Manufacture and marketing of motorcycle suspensions

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

Shanghai

Planning and development of motorcycles

Colombia
32 Industria Colombiana de Motocicletas Yamaha S.A.

(INCOLMOTOS)

Argentina
33 Yamaha Motor Argentina S.A. (YMARG)

Mexico34 Yamaha Motor de Mexico, S.A. de C.V. (YMMEX)

Indonesia

Singapore

Vietnam
42 Yamaha Motor Vietnam Co., Ltd. (YMVN)
43 Yamaha Motor Parts Manufacturing Vietnam Co., Ltd.

(YPMV)

ThailandThe Philippines
46 Yamaha Motor Philippines, Inc. (YMPH)

Taiwan

India

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

(YMCT)

53 Shanghai Yamaha Jianshe Motor Marketing Co., Ltd.

(YMSM)

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

67

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

Principal Subsidiaries and Afﬁliates

Corporate
Information

CSR

Financial Section(As of December 31, 2009)

Subsidiaries and Afﬁliates Accounted for by the Equity Method
Company

Location

Principal business lines

Japan
56 Yokohama Bay Side Marina Co., Ltd.

Yokohama, Kanagawa

Management of a marina and related business

57 Yamaha Football Club Co., Ltd.

Iwata, Shizuoka

Management of a professional soccer team

58 Mikasa 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

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

Chongqing, Sichuan

Manufacture of motorcycles

65 Zhuzhou Jianshe Yamaha Motor Co., Ltd. (ZJYM)

Zhuzhou, Hunan

Manufacture of motorcycles

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

Taizhou, Jiangsu

Manufacture and marketing of motorcycle engines

Italy
59 Yamaha Motor Racing S.r.l. (YMR)

Belgium
60 D’Ieteren Sport S.A.

Mexico61 Industria Mexicana de Equipo Marino, S.A. de C.V.

(IMEMSA)Peru
62 Yamaha Motor del Perú S.A. (YMDP)

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

China

67 Sichuan Huachuan Yamaha Motor Parts Manufacturing

Chengdu, Sichuan

Manufacture and marketing of electrical components for motorcycles

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

Chongqing, Sichuan

Manufacture and marketing of motorcycle engine carburetors

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

Taizhou, Jiangsu

Manufacture of multi-purpose engines

Co., Ltd. (SHY)

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

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

68

33

Financial Section

CONTENTS
70 Management Discussion and Analysisof Operations

81 Five-Year Summary

81 Quarterly Financial Information

82 Consolidated Balance Sheets

84 Consolidated Statements of Income

85 Consolidated Statements of Changes in
Net Assets

88 Consolidated Statements of Cash Flows

89 Notes to Consolidated Financial
Statements

69

Management Discussion and Analysis of Operations
Overview
The world economy during the ﬁscal year ended December 31,
2009 (ﬁscal 2009) experienced a further downturn, characterized
by sluggish consumption, reduced production and higher
unemployment. These symptoms were repercussions of the credit
crunch triggered by uncertainty over the global ﬁnancial system.
In this environment, the Japanese economy also suffered aserious slump, with substantial declines in corporate earnings due
to contractions in both production and exports, coupled with the
yen’s continuing strength against major currencies.
Reﬂecting these negative factors, the Yamaha Motor Group(the “Group”) faced sharply declining demand in the leisuremarkets of Europe and the United States. In response, the Groupadjusted product shipments and signiﬁcantly reduced production
for export from Japanese factories to developed nations,thus curtailing market stocks (distributors’ stocks and Groupinventories) during the period.
To attain sustainable growth amid these harsh businessconditions, the Company focused on decreasing expenses,
targeting a reduction of more than 10% of total consolidated
expenses, while initiating the Urgent Cost Reduction Project to cut
manufacturing costs. The Company also has been implementing
structural reforms designed to build a proﬁtable foundation, evenamid rapidly shrinking business volume over the medium term.
In addition, the Company reduced capital expenditures bynearly half from the previous year. These efforts, combined with aconsiderable decrease in working capital through the curtailmentof market stocks, produced positive free cash ﬂows.
The market in Asia (excluding Japan) was a relative brightspot, as demand for motorcycles fell only slightly there. The
Company moved to expand sales in Asia by introducing newmodels and implementing aggressive promotions. This marketing
approach enabled steady sales in Indonesia, Vietnam and othernations in the region.
The Company also focused on environmental technologies
with future growth potential, launching new PAS electricallypower assisted bicycles that comply with recently introduced
standards in Japan, and enhancing the research anddevelopment system for next-generation mobility technologies,
including electric motorcycles.
Scope of Consolidation
The number of consolidated subsidiaries at the end of ﬁscal 2009
decreased by six from ﬁscal 2008, to 107, and the number ofcompanies accounted for by the equity method remained thesame, at 33.

70

Impact of Exchange Rate Fluctuations
The impact of exchange rate ﬂuctuations on sales is deﬁned
as the impact on foreign currency-denominated sales at theCompany’s overseas subsidiaries for ﬁscal 2009, due to thedifference between the average exchange rate used in ﬁscal 2009
to translate these sales into Japanese yen, versus the averagetranslation exchange rate applied in ﬁscal 2008. Meanwhile, theimpact of exchange rate ﬂuctuations on gross proﬁt is deﬁned
as the aggregation of two effects: (1) the impact on foreign
currency-denominated gross proﬁt at the Company’s overseas
subsidiaries for ﬁscal 2009, due to the difference between the
average exchange rate used in ﬁscal 2009 to translate the grossproﬁt into Japanese yen, versus the average translation exchange
rate applied in ﬁscal 2008; and (2) the impact on foreign-currency
denominated gross proﬁt at the Company for ﬁscal 2009, due tothe difference between the average exchange rate used in ﬁscal
2009 to translate the gross proﬁt into Japanese yen, versus theaverage translation exchange rate applied in ﬁscal 2008.
Note that the impact of exchange rate ﬂuctuations on changes
in selling prices for products was not included in the deﬁnition of
the exchange rate ﬂuctuation impact on sales.
Overall, the negative impact resulting from exchange rate
ﬂuctuations totaled ¥195.5 billion ($2,122.7 million) for net salesand ¥68.9 billion ($748.1 million) for gross proﬁt in ﬁscal 2009.
The exchange rates applied to translate proﬁts/losses in ﬁscal
2009 appreciated by ¥9 against the U.S. dollar, to ¥94, and by¥23 against the euro, to ¥130.
Sales and Proﬁts
Net sales for ﬁscal 2009 fell by ¥450.2 billion ($4,888.6 million), or
28.1%, from ﬁscal 2008, to ¥1,153.6 billion ($12,526.0 million).
In Japan, sales decreased by ¥39.8 billion ($431.8 million),
23.4%, to ¥130.4 billion ($1,416.3 million), representing 11.3%
of net sales. Meanwhile, overseas sales decreased by ¥410.5
billion ($4,456.8 million), or 28.6%, to ¥1,023.2 billion ($11,109.7
million), accounting for 88.7% of net sales.
In terms of proﬁts, operating income decreased by ¥111.0
billion ($1,204.8 million) from the previous year, with the Company
recording an operating loss of ¥62.6 billion ($679.5 million) inﬁscal 2009. There were some positive factors affecting operating
income, such as a decrease in selling, general and administrative
expenses totaling ¥63.9 billion ($693.3 million) from ﬁscal 2008,
cost reduction in procurement operations — including savingfrom the Urgent Cost Reduction Project — totaling ¥18.5 billion($200.9 million); decreases in raw material prices totaling ¥15.4
billion ($167.2 million); a decline in research and development
expenses totaling ¥17.3 billion ($187.8 million); and a reduction

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Factors Impacting Operating Income(Billion ¥)200

Decreasein R&D
expenses150

Cost reduction in
procurement

Decrease in
SG&A expenses

Decrease in
Decrease in marginal profit due
depreciation to production
cutbacks in Japan
expenses

Increase in
raw material
prices

+5.6

+15.4

+17.3
-90.0

+18.5

100

+63.9
50

OperatingincomeDecrease in gross profit due
to reduced net sales

Saving from the Urgent Cost
Reduction Project: +11.0

Increase in productprices: +18.2

-74.8
48.4

0

Financial Section

Corporate
Information

Including impact of
exchange rate: +31.5

Impact ofexchange rate

FY08

Impact on gross profit
U.S.$
-16.0
Euro
-20.5
Other
-32.5
Total
-68.9
Impact on SG&A expenses+31.5
Impact on operating income-37.5

Change in the
product mix;
other factors

-62.6

+2.0

OperatingincomeIn addition, the Company appropriated extraordinary losses
including an impairment loss on ﬁxed assets and the expenses
incurred by early retirement of employees in Japan, Europe
and the United States as business structure improvement
expenses, in order to accelerate structural reform at businesses
in developed nations.
Consequent to the developments discussed above, net
income declined by ¥218.0 billion ($2,367.0 million), for a net lossof ¥216.1 billion ($2,346.9 million).

in depreciation expenses totaling ¥5.6 billion ($60.8 million).
However, these were more than offset by such negative factors
as a ¥74.8 billion ($812.2 million) decrease in gross proﬁt due toreduced net sales; the impact of exchange translation totaling¥68.9 billion ($748.1 million); and the impact of change in the
product mix reﬂecting production cutbacks in Japan and related
factors totaling ¥88.0 billion ($955.5 million). These were primarily
responsible for the substantial operating loss in ﬁscal 2009,referenced above. Meanwhile, ordinary income dropped by¥127.2 billion ($1,381.2 million), resulting in an ordinary loss of¥68.3 billion ($742.0 million).

Percentage of sales by product segment

-68.9

FY 09

Sales by market

Sales by product segment(Year ended December 31, 2009)Power
products

Other
products
7.5%(Billion ¥)(Billion ¥)

2,000

2,000

8.7%

Marineproducts 13.0%

1,757
145 1,604
123
266
213
250
290 239 1,154
86
267
101

1,582
150

Motorcycles
70.8%

1,500
1,375
138
1,000

227
250

Percentage of sales by market(Year ended December 31, 2009)
Japan
11.3%

500

1,500
1,375

1,056 1,029

1,604

1,154
1,000

1,575
1,434

1,393

150
915

1,191
1,023

500
817

760

0

0
05

Overseas
88.7%

1,757
1,582

06

07

Other products
Power products
Marine products
Motorcycles

08

09

189

184
05

06

182
07

170
08

130
09

OverseasJapan

71

Management Discussion and Analysis of Operations
stronger yen against the euro. Sales in Europe comprised 17.6%of total motorcycle sales. Sales in other areas decreased by ¥44.7
billion ($485.7 million), or 31.3%, to ¥98.4 billion ($1,068.1 million),
reﬂecting sluggish sales in Latin America, particularly in Brazil,
due to decreased demand, coupled with the negative impact of
the stronger yen. Sales in other areas represented 12.0% of total
motorcycle sales.
In total, overseas sales decreased by ¥206.3 billion ($2,240.4
million), or 20.9%, to ¥779.0 billion ($8,458.7 million), accounting
for 95.3% of total motorcycle sales.

Sales Performance by Business Segment
Motorcycles
Motorcycle sales for ﬁscal 2009 fell by ¥211.8 billion ($2,299.1
million), or 20.6%, from ﬁscal 2008, to ¥817.1 billion ($8,871.4
million), due to decreased demand — mainly in the United Statesand Europe — coupled with the negative impact of the stronger
yen. Motorcycle sales comprised of 70.8% of net sales.
In Japan, sales decreased by ¥5.4 billion ($58.7 million), or
12.5%, to ¥38.0 billion ($412.8 million), making up 4.7% of total
motorcycle sales.
In Asia (excluding Japan), unit sales of the affordable
mopedNote 1 Vega-ZR, automatic transmission scooter Mio andother Yamaha models increased in Indonesia, thanks to customeroriented marketing, although total motorcycle demand declined in
the nation. In Vietnam, India and other nations in the region where
demand recovered early, aggressive new product releases spurred
steady sales. However, the negative impact of the stronger
yen caused a drop of ¥41.2 billion ($447.1 million), or 7.9%, inmotorcycle sales in Asia from ﬁscal 2008. Overall, motorcycle
sales in Asia amounted to ¥479.0 billion ($5,200.5 million),
accounting for 58.6% of total motorcycle sales. Sales in North
America fell by ¥49.1 billion ($533.6 million), or 45.9%, to ¥58.0
billion ($629.5 million), reﬂecting shrinking demand for leisureproducts amid the recession, coupled with the negative impactof the stronger yen against the U.S. dollar and the adjustments toshipping from Japan, designed to reduce market stocks. North
American sales made up 7.1% of total motorcycle sales. Sales
in Europe dropped by ¥71.3 billion ($774.0 million) or 33.2%, to¥143.7 billion ($1,560.5 million), affected by sluggish demandamid the recession, coupled with the negative impact of theMotorcycle unit sales

Marine Products
Marine product sales for ﬁscal 2009 decreased by ¥88.7 billion($963.1 million), or 37.1%, from ﬁscal 2008, to ¥150.1 billon($1,629.9 million), reﬂecting decreased demand, coupled with thenegative impact of the stronger yen. Marine product sales madeup 13.0% of net sales.
In Japan, sales fell by ¥7.3 billion ($78.9 million), or 23.5%, to¥23.7 billion ($257.3 million), representing 15.8% of total marine
product sales.
In North America, sales decreased by ¥43.4 billion ($471.5
million), or 44.0%, to ¥55.3 billion ($600.2 million). This was
attributable to sluggish sales of large outboard motors andpersonal watercraft in the United States, the mainstay market in
the region, coupled with the adjustments to shipping from Japan,
designed to reduce market stocks. Slow demand was behind the
downturn for these products, as consumption for recreational and

Net income and net income margin

Operating income and operating
income margin(Thousand units)(Billion ¥)6,000

Note 1
A moped is a small motorcycle characterized by an easy-to-mount downward curving
mainframe and large-diameter (often 17 inch) tires on the front and rear. It is also called
an underbone-type motorcycle.

5,865 5,841
493

125

123.5

127.0

(%)

(Billion ¥)

10

80

372

4,997
457

100

4,419
373

103.3

8

7.8
7.2

7.5

4,000 3,849

2,727

3,272

50

3.0

421
407 410 366 275
223
207 197 167 92
167
161 163 122 108
05
06
07
08
09

Japan
EuropeOther areas

72

North America
Asia

4.9
4.5

2

09

0
05

06

07

Operating income
Operating income
margin (%)

40

3.0

20

1.5

4

48.4

25

0

71.2

64.0
4.7

6

4,717 4,993
3,770

60

6.0

4.1

75

311

2,000

(%)
77.2

08

0

1.9
0.1 090
05-5.4(62.6)

06

Net income
Net income
margin (%)

07

0

08
-18.7
(216.1)Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Financial Section

Corporate
Information

Other Products
Sales of other products for ﬁscal 2009 decreased by ¥37.1 billion($402.9 million), or 30.2%, from ﬁscal 2008, to ¥85.9 billion ($932.6
million), comprising 7.5% of net sales. Demand for electricallypower assisted bicycles increased in Japan, reﬂecting growing
heath and environmental awareness. Thanks to the introduction ofmodels that comply with new standards, and the release of models
designed to accommodate two small children, sales of electricallypower assisted bicycles expanded steadily. However, sales ofautomobile engines and surface mounters decreased, due to a
decline in demand amid the recession.
Sales in Japan decreased by ¥26.0 billion ($281.9 million),or 30.3%, to ¥59.8 billion ($649.7 million), making up 69.7% of
total sales in this segment. Meanwhile, overseas sales droppedby ¥11.1 billion ($121.0 million), or 30.0%, to ¥26.1 billion ($282.9
million), representing 30.3% of the total sales.

leisure activities contracted amid the recession. Sales in North
America made up 36.8% of total marine product sales. Sales in
Europe dropped by ¥20.3 billion ($220.7 million), or 37.6%, to¥33.8 billion ($366.7 million), due mainly to sluggish outboard
motor sales. Sales in Europe comprised 22.5% of total marine
product sales.
Overall, overseas marine product sales fell by ¥81.4 billion($884.2 million), or 39.2%, to ¥126.4 billion ($1,372.5 million).
Overseas sales accounted for 84.2% of total marine product sales.
Power Products
Power product sales for ﬁscal 2009 decreased by ¥112.7 billion($1,223.5 million), or 52.8%, from ﬁscal 2008, to ¥100.6 billion($1,092.0 million), reﬂecting decreased demand — mainly in the
United States — coupled with the negative impact of the stronger
yen. Power product sales comprised 8.7% of net sales.
In the United States, sales of leisure-oriented sport all-terrain
vehicles (ATVs) and side-by-side vehicles decreased. This wasprimarily due to slow demand as consumption for recreational
and leisure activities contracted amid the recession. The decline
in the U.S. sent North American sales down ¥88.6 billion ($962.4
million), or 62.9%, to ¥52.4 billion ($568.8 million), making up
52.1% of total power product sales. Sales in Europe dropped by¥11.5 billion ($124.7 million), or 35.9%, to ¥20.6 billion ($223.2
million), representing 20.4% of total power product sales.
Overall, overseas power product sales decreased by ¥111.6
billion ($1,211.2 million), or 54.9%, to ¥91.7 billion ($995.6 million).
Overseas sales accounted for 91.2% of total power product sales.

Sales Performance by Geographical SegmentNote 2
Japan
Sales in Japan decreased by ¥349.2 billion ($3,791.0 million),or 43.7%, from ﬁscal 2008, to ¥450.3 billion ($4,888.7 million),
reﬂecting decreased exports of motorcycles, outboard motors,
and ATVs to Europe and the United States. Sales in Japanaccounted for 30.5% of net sales.
North America
Sales in North America decreased by ¥199.9 billion ($2,170.4
million), or 52.2%, to ¥183.2 billion ($1,989.0 million), due toshrinking demand for leisure products amid the recession,
coupled with the negative impact of the stronger yen against theSales by geographical segment Note 2— JapanSales by geographical segment Note 2— North America

Sales by geographical segment Note 2— Europe(Billion ¥)(Billion ¥)(Billion ¥)

900

500
807

848

857

799

481

500

400
372

444
400

326

383

308

300 287

600
300
201

200

450
200

183

300
100

100

0

0

0
05

06

07

08

09

05

06

07

08

09

05

06

07

08

09

73

Management Discussion and Analysis of Operations
U.S. dollar. North American sales comprised 12.4% of net sales.

billion ($977.2 million) stemming from production cutbacks inJapan; and ¥74.8 billion ($812.2 million) from decreased sales.
The decrease in gross proﬁt came about despite reductions inpurchasing costs totaling ¥18.5 billion ($200.9 million). Overall, thegross proﬁt margin dropped by 6.0 percentage points, to 17.5%.
Selling, general and administrative (SG&A) expenses forﬁscal 2009 fell by ¥63.9 billion ($693.3 million), or 19.4%,
from ﬁscal 2008, to ¥264.9 billion ($2,875.9 million). The ratioof SG&A expenses to net sales increased by 2.5 percentage
points, to 23.0%.

EuropeSales in Europe decreased by ¥106.7 billion ($1,158.3 million), or
34.7%, to ¥201.1 billion ($2,184.0 million), making up 13.6% of
net sales.
Asia
Although motorcycle unit sales in Asia (excluding Japan) grewsteadily, the sales amount decreased ¥65.3 billion ($709.5 million),or 11.2%, reﬂecting the negative impact of the stronger yen, to¥519.5 billion ($5,640.3 million). Sales in Asia represented 35.2%
of net sales.

R&D Expenses
Capitalizing on its core small engine technology, and othertechnologies centering on frame, hull and electronic control, theGroup is engaged in research and development (R&D) activities
for a diversity of products, including motorcycles, marine
products, power products, surface mounters, industrial robots,and automobile engines.
R&D expenses for ﬁscal 2009 decreased by ¥23.0 billion($250.0 million), or 27.1%, from ﬁscal 2008, to ¥62.1 billion ($673.9
million), which was equivalent to 5.4% of net sales. Broken down
by business segment, R&D expenses stood at ¥40.1 billion($435.1 million) in the motorcycle business; ¥7.2 billion ($78.1
million) in the marine product business; ¥6.8 billion ($73.9 million)in the power product business; and ¥8.0 billion ($86.8 million) in
the “other products” business.
Under the new medium-term management plan in place fromﬁscal 2010 through 2012, the Company will focus on developing
affordably-priced motorcycles to be marketed in China, India
and other emerging nations. The Company will also work to

Other Areas
Sales in other areas decreased by ¥50.4 billion ($547.6 million) or
29.5%, to ¥120.8 billion ($1,311.2 million), due mainly to reduced
motorcycle sales in Latin America. Sales in other areas accounted
for 8.2% of net sales.
Note 2
Sales amounts by geographical segment include intersegment sales.

Income and Expenses
Cost of Sales, Gross Proﬁt and SG&A Expenses
Cost of sales for ﬁscal 2009 decreased by ¥275.4 billion ($2,990.5
million), or 22.5%, from ﬁscal 2008, to ¥951.4 billion ($10,329.5
million), representing 82.5% of net sales.
Gross proﬁt fell by ¥174.8 billion ($1,898.1 million), or 46.4%,
to ¥202.3 billion ($2,196.4 million). This was attributable to thenegative impact on gross proﬁt of several factors, including: ¥90.0

R&D expenses and % of R&D expenses
to net sales

Sales by geographical segment Note 2— AsiaSales by geographical segment Note 2— Other areas(Billion ¥)(Billion ¥)(Billion ¥)

(%)

200

100

8.0

600

585
527

519

166

86

171
75

150

437
400

125
326

100

5.2

121

96

72

85

77
4.9

4.9

5.3

62 6.0
5.4

50

4.0

25

2.0

200
50

0

0

0
05

06

07

08

09

05

06

07

08

09

0
05

06

07

08

09

R&D expenses% of R&D expenses to net sales

74

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

simultaneously increase the appeal and proﬁtability of motorcycles
in Indonesia, Vietnam, and other ASEAN nations by incorporating
Yamaha’s exclusive fuel-injection system, while reducing thecosts of these products. Furthermore, it will develop nextgeneration, environmentally friendly engines for motorcycles andoutboard motors, as well as Smart Power Note 3 technology forelectric motorcycles and electrically power assisted bicycles.

Financial Section

Corporate
Information

leisure consumption in the United States; and decreased sales ofoutboard motors in Europe and Russia. Operating income margin
dropped by 18.7 percentage points, to negative 16.2%.
Operating income in the power product business fell by ¥37.3
billion ($405.4 million), resulting in an operating loss of ¥33.8
billion ($366.6 million). This arose mainly from sluggish sales in the
United States; the negative impact of the stronger yen; production
cutbacks in Japan and United States designed to curtail market
stocks; and a provision for product liabilities. Operating income
margin decreased by 35.2 percentage points, to negative 33.6%.
Operating income in the “other products” business declinedby ¥5.5 billion ($59.9 million), resulting in an operating loss of ¥0.4
billion ($4.2 million). Increased sales of electrically power assisted
bicycles reﬂecting strong demand growth were more than offset
by decreased sales for automobile engines and surface mounters
due to sluggish demand amid the recession, resulting in operating
loss in this segment. Operating income margin fell by 4.6
percentage points, to negative 0.4%.
By geographical segment, operating income in Japan
dropped by ¥32.6 billion ($354.4 million) from fiscal 2008,
resulting in an operating loss of ¥55.6 billion ($603.5 million). This
was attributable to signiﬁcant production cutbacks designed tocurtail market stocks, coupled with the negative impact of thestronger yen. Operating income in North America fell by ¥48.8
billion ($530.0 million), resulting in an operating loss of ¥42.3
billion ($458.9 million), while operating income in Europe droppedby ¥19.6 billion ($212.9 million), resulting in an operating loss of¥9.1 billion ($99.3 million). Both operating income decreases were
attributable to reduced sales, coupled with the negative impactof the stronger yen. Operating income in Asia (excluding Japan)

Note 3
Smart Power: New power sources, primarily for electric vehicles, designed to create
a new paradigm of mobility

Operating Income (Loss)
Operating income for ﬁscal 2009 decreased by ¥111.0 billion($1,204.8 million), from ﬁscal 2008, generating an operating lossof ¥62.6 billion ($679.5 million). Operating income margin declined
by 8.4 percentage points, to negative 5.4%.
Broken down by business segment, operating income in the
motorcycle business decreased by ¥37.8 billion ($409.9 million),resulting in an operating loss of ¥4.2 billion ($45.1 million). This
was attributable to a decrease in sales in the United States andEurope, coupled with the negative impact of the stronger yen,although sales increased in some emerging nations including thosein the ASEAN region. Operating income margin in the motorcycle
business fell by 3.8 percentage points, to negative 0.5%.
Operating income in the marine product business decreasedby ¥30.4 billion ($329.5 million), resulting in an operating lossof ¥24.3 billion ($263.6 million). Major reasons for this decrease
were the negative impact of the stronger yen; production
cutbacks in Japan designed to curtail market stocks; stagnant
boat demand amid recession-driven cutbacks in recreation and

Net income per share

Net assets and % of net income to
net assets(Billion ¥)(¥)(Billion ¥)

(%)

100

300

800

20

Capital expenditures and depreciation

94

75

77

270 270249 249

85

83

18.9

224 223
55

50

47

600

200

60
46

18.1

501

54

400

569
14.2

15

428

384

10

40
100

249

25

5

200

0

6 6

0
05

06

07

Capital expenditures
Depreciation

08

09

05

06

07

09

Net income per share — basic
Net income per share — diluted

0.4

0
05

08
(756)

Note
Net income per share — diluted — for fiscal
2009 is not listed, since the Company
registered a net loss per share for the period.

06

07

Net assets% of net income to
net assets

08

0
09

-71.2

75

Management Discussion and Analysis of Operations
declined by ¥1.8 billion ($19.3 million), or 5.0%, to ¥33.6 billion($364.3 million), reﬂecting the negative impact of the stronger
yen. Operating income in other areas decreased by ¥14.2 billion($154.4 million), due mainly to a decrease in sales, resulting in an
operating loss of ¥2.0 billion ($22.1 million).

Income Taxes
In ﬁscal 2009, income taxes increased by ¥7.6 billion ($82.6
million), or 24.0%, from ﬁscal 2008, to ¥39.3 billion ($426.3
million), due mainly to the reversal of deferred tax assets of theCompany and its consolidated subsidiary in the United States.

Non-operating Income and Expenses
Interest expenses and similar expenses amounted to ¥5.8
billion ($62.5 million). The ﬁgure primarily arose from increased
borrowings to secure cash on hand and to accommodate
expanded working capital in some of the Company’s subsidiaries,
although procurement costs decreased due to lowered money
market rates. With the net interest expenses, the balance between
non-operating income and non-operating expenses for ﬁscal 2009
decreased ¥16.3 billion ($176.4 million) from ﬁscal 2008.

Minority Interests
Minority interests — including interests owned by minority
shareholders in Yamaha Motor Vietnam Co., Ltd.; PT.
Yamaha Indonesia Motor Manufacturing and its consolidated
subsidiaries; Yamaha Motor Taiwan Co. Ltd.; and Industria
Colombiana de Motocicletas Yamaha S.A. — decreased by¥2.1 billion ($22.7 million), or 39.4% from ﬁscal 2008 to ¥3.2
billion ($35.0 million).
Net Income
Net income for ﬁscal 2009 decreased by ¥218.0 billion ($2,367.0
million) from ¥1.9 billion for ﬁscal 2008, resulting in a net loss of¥216.1 billion ($2,346.9 million) for ﬁscal 2009. Basic net income
per share fell by ¥762.39 ($8.28) from ¥6.47 for ﬁscal 2008,
resulting in a basic net loss per share of ¥755.92 ($8.21) for
ﬁscal 2009.

Extraordinary Proﬁts and Losses
Extraordinary proﬁts for ﬁscal 2009 amounted to ¥0.4 billion($4.0 million), which includes a gain on sale of ﬁxed assets.
Extraordinary losses increased by ¥84.8 billion ($920.9
million), or 406.2%, to ¥105.7 billion ($1,147.7 million), due
mainly to ¥103.7 billion ($1,126.3 million) in business structure
improvement expenses and ¥1.7 billion ($18.6 million) in loss onsale and disposal of ﬁxed assets.

Capital Resources and Liquidity
Assets, Liabilities and Shareholders’ Equity
Total current assets at December 31, 2009 decreased by ¥96.2
billion ($1,044.7 million), or 13.4%, from December 31, 2008,
to ¥620.8 billion ($6,740.5 million), due mainly to decreases ininventories — designed to curtail market stocks — and deferred
tax assets. Tangible ﬁxed assets also fell, by ¥80.0 billion ($869.1

Income Before Income Taxes and Minority Interests
Income before income taxes and minority interests decreased by¥212.5 billion ($2,307.1 million) from ¥38.8 billion for ﬁscal 2008,
resulting in a loss of ¥173.7 billion ($1,885.7 million) for ﬁscal 2009.

Net assets per share and equity ratio Note 4(¥)

2,000 40.1

41.7

42.1

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

40

1,200

30

900

1,852
33.9

1,645
1,500

1,129
7.4
7.4

1,258

1,163

Current ratio
(%)

(%)

8

200

6

150

163

987

958

6.0

1,378

1,343

21.5

1,000

129

131

126

06

07

08

117
20

600

4

100

10

300

2

50

0

0

0

0

743
500

0
05

06

07

Net assets per share
Equity ratio (%)

76

08

09

0.2
05

06

07

Total assets
Return on assets (%)

08

05

09
-20.1

09

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

million), or 22.5%, to ¥275.6 billion ($2,991.9 million), mainly
attributable to an impairment loss on manufacturing equipment
and facilities. Investments and other assets increased by ¥1.3
billion ($14.4 million), or 1.6%, to ¥85.9 billion ($932.9 million).
This was principally attributable to increases in long-term loans
receivable and investment securities, although deferred tax assets
decreased. As a result, total assets at December 31, 2009 fell by¥176.1 billion ($1,912.0 million), or 15.1%, from December 31,
2008, to ¥987.1 billion ($10,717.4 million). Return on assets (ROA)
declined by 20.3 percentage points from ﬁscal 2008, to negative
20.1% in ﬁscal 2009.
Total current liabilities dropped by ¥187.8 billion ($2,039.0
million), or 33.1%, to ¥379.7 billion ($4,122.7 million), reﬂecting
factors including declines in short-term borrowing and notes andaccounts payable. Long-term liabilities increased by ¥190.9 billion($2,072.9 million), or 114.2%, to ¥358.1 billion ($3,888.3 million),
due mainly to long-term debt amounting to ¥209.3 billion ($2,272.5
million) borrowed from ﬁnancial institutions, in order to stabilize
fund procurement. Consequently, total liabilities at December 31,
2009 increased by ¥3.1 billion ($33.9 million), or 0.4%, to ¥737.8
billion ($8,011.0 million).
The current ratio at December 31, 2009 increased by 37.1
percentage points from December 31, 2008, to 163.5%.
Net assets at December 31, 2009 decreased by ¥179.2 billion($1,945.9 million), or 41.8%, from December 31, 2008, to ¥249.3
billion ($2,706.5 million), due to a fall of ¥211.1 billion ($2,292.6
million) in retained earnings. Accordingly, return on equity (ROE)
decreased by 71.6 percentage points from ﬁscal 2008, to
negative 71.2% in ﬁscal 2009. Meanwhile, the equity ratioNote 4 fellby 12.4 percentage points to 21.5% at December 31, 2009. Net

Financial Section

Corporate
Information

assets per share dropped from ¥1,377.81 at December 31, 2008
to ¥743.04 ($8.07) at December 31, 2009.
Note 4Equity ratio: (Shareholders’ equity + Valuation and translation adjustments)/
Total assets x 100 (%)

Capital Expenditures
Capital expenditures for ﬁscal 2009 decreased by ¥48.4 billion($525.0 million), or 51.2%, from ﬁscal 2008, to ¥46.0 billion($499.8 million). These were mainly investments in manufacturing
equipment and facilities for new products, and production
capacity enhancements — primarily for the motorcycle andmarine product business — as well as investments in researchand development operations.
Broken down by business segment, capital expenditures forthe motorcycle business totaled ¥29.9 billion ($325.0 million). In
Asia (excluding Japan), investments were undertaken mainly inequipment and facilities. This included the equipment, facilities andmolds for manufacturing new models, and the maintenance ofexisting equipment and facilities. In Japan, investments were mainly
to acquire research and development equipment and facilities.
Capital expenditures for the marine product businessamounted to ¥6.7 billion ($72.3 million), invested mainly inequipment, facilities and molds to manufacture new outboard
motor and personal watercraft models.
Capital expenditures for the power product business totaled¥3.7 billion ($39.7 million), invested mainly in manufacturing
equipment and facilities for new recreational vehicle models.
Capital expenditures for the “other products” business stoodat ¥5.8 billion ($62.8 million), invested mainly in research andTotal asset turnover

Tangible fixed asset turnover

Inventory turnover(Times)(Times)(Times)

2.0

5

5
4.5

1.6
1.5

1.5

4.6

4.7

4

1.5

4.4

4.3

4.2

4

4.1
3.8

3.7

1.3
1.1

3.5

3

3

2

2

1

1

1.0

0.5

0

0
05

06

07

08

09

0
05

06

07

08

09

05

06

07

08

09

77

Management Discussion and Analysis of Operations
development operations in the automobile engine business.
The entire amount of the expenditures discussed above wasfunded by internal resources.
The Company registered an impairment loss on ﬁxed assetsof ¥83.1 billion ($901.8 million) in ﬁscal 2009.
During ﬁscal 2009, there was no disposal or sale of importantfacilities or similar assets.

in line with a revision in a fund-raising program, involving
liquidation of receivables of Company subsidiary Yamaha Motor
Corporation, U.S.A.
Consequent to the developments discussed above, interestbearing debt at the end of ﬁscal 2009 increased by ¥50.7 billion($550.9 million) from the end of ﬁscal 2008, to ¥399.9 billion($4,342.5 million), while cash and cash equivalents increasedby ¥2.9 billion ($31.0 million) to ¥137.2 billion ($1,489.9 million).
Interest-bearing debt includes ¥133.6 billion ($1,450.6 million) inborrowings for sales ﬁnancing.

Cash FlowsNet cash provided by operating activities during ﬁscal 2009
increased by ¥80.5 billion ($874.5 million), compared withﬁscal 2008, when inventories increased signiﬁcantly. The ﬁgure
amounted to ¥74.1 billion ($804.5 million) in ﬁscal 2009, mainly
consisting of a decrease in trade notes and accounts receivableof ¥61.0 billion ($662.6 million); compared to an increase of ¥8.2
billion in ﬁscal 2008; and a reduction in inventories of ¥116.8
billion ($1,268.3 million) compared to an increase of ¥76.0 billion
in ﬁscal 2008. However, notes and accounts payable fell by ¥55.9
billion ($606.5 million), due to the effect of production cutbacks
designed to reduce market stocks; while in ﬁscal 2008, notes andaccounts payable climbed by ¥2.4 billion.
Net cash used in investing activities decreased by ¥54.3
billion ($589.1 million), to ¥45.3 billion ($491.7 million), primarily
by curtailing capital expenditures. Consequent to these operating
and investing activities, free cash ﬂows increased by ¥134.8 billion($1,463.6 million), to ¥28.8 billion ($312.8 million).
Net cash used in ﬁnancing activities increased by ¥195.2
billion ($2,119.4 million), to ¥32.0 billion ($347.7 million), mainly
reﬂecting reduced borrowings. There was no impact on cash
ﬂows, due to a change in the accounting method implemented

Demand for Funds
The major demand for Group funds arises from raw material
costs for product manufacturing; purchasing costs for parts,
products and other commodities; manufacturing costs; selling,
general and administrative expenses; working capital; andcapital expenditures.
Capital expenditures for ﬁscal 2009 amounted to ¥46.0
billion ($499.8 million), used mainly for boosting manufacturing
capacity in Indonesia. However, the Group focused on reducing
capital expenditures during ﬁscal 2009, in order to curtaildepreciation expenses.
Under the new medium-term management plan in placefrom ﬁscal 2010 through 2012, the Company will concentrate
the management resources in two domains — personal mobility
and engines — of the four deﬁned in the Frontier 2020 long-term
vision the Company announced in February 2008. Speciﬁcally,
the Company plans to invest in developing affordably-priced
motorcycles to be marketed in emerging nations and simultaneously
increasing the appeal and proﬁtability of motorcycles in the ASEAN

Account receivable turnover

Cash provided by (used in)operating activities(Times)(Billion ¥)(Billion ¥)

9

150

100

8.1

7.6

7.8

7.5

123
6.0

6

Cash used in investing activities

75
100

106

100

80
72

94
74

66

50

45

50

3

25

05

78

08

0

0
06

07

08

09

05

06

07

(6)

0
09

05

06

07

08

09

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

region by incorporating Yamaha’s exclusive fuel-injection system.
On the green technology front, the Company will develop nextgeneration, environmentally friendly engines for motorcycles andoutboard motors; and enhance research and development towardmarketing Smart Power technology and products.

CSR

Financial Section

Corporate
Information

Fund Procurement Conditions
The Group employs short-term borrowing denominated in local
currencies to procure working capital. Meanwhile, to procure
funds for plant and equipment investment, the Group primarily
uses its internal reserves, including capitalization and retained
earnings. In ﬁscal 2009, the Company took out long-term debt
amounting to ¥209.3 billion ($2,273.0 million) from ﬁnancial
institutions, in order to stabilize fund procurement.
The annual maturities of the interest-bearing debt subsequent
to December 31, 2009 are summarized as follows.

Cash Dividends
Recognizing that shareholders’ interests represent one of
Yamaha Motor’s highest management priorities, the Company
has been striving to meet shareholder expectations by working
to maximize its corporate value through a diversity of business
operations worldwide. The Company’s policy centers on paying
cash dividends based on a long-term perspective, reﬂecting
its consolidated ﬁnancial performance and other factors in acomprehensive manner, using the payout ratio as an indicator.
However, in light of considerations such as the decline inperformance in ﬁscal 2009 and the harsh business environment— projected to continue into the future, the Company regrets toannounce it has suspended its dividend payout for ﬁscal 2009
and ﬁscal 2010.

(Billion ¥)Total

1 year 1 to 2
or less years

2 to 3 3 to 4 4 to 5 More thanyears years years 5 years

Short-term borrowing

87.6

87.6

—

—

—

—

—

Long-term debt

312.4

30.5

60.2

105.5

45.0

53.7

17.5

In order to complement the liquidity on hand, the Company’s
overseas subsidiary has made commitment line contracts withmajor ﬁnancial institutions, under which they can withdraw up to
150 million euros. Cash and cash equivalents stood at ¥137.2
billion ($1,489.9 million) at December 31, 2009, nearly equal invalue to the amount of sales for 1.4 months. When the commitment
lines are taken into account, the Company has liquidity nearly equalin value to the amount of sales for 1.6 months.
Financial Policy
Interest-bearing debt at December 31, 2009 increased by ¥50.7
billion ($550.9 million), or 14.5%, from ﬁscal 2008, to ¥399.9
billion ($4,342.5 million), due to a revision in the fund-raisingprogram, promoted by the liquidation of receivables of theCompany’s U.S. subsidiary.

Free cash flows

Cash and cash equivalents at
the end of the year

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

150

400

30

29

134

188.3
(%)
400 100

349
88.5

137

75

300
102

100

20

230

17
74

14

200

40.1

50
39

0

05

08
06

43.3

154

10

07

41.5
25

100

0

0
09

50

195

05

06

07

08

09

0
05

06

07

08

09

Interest-bearing debt
Debt/equity ratio (%)

(6)

(106)

79

Management Discussion and Analysis of Operations
The debt/equity ratio (the ratio of interest-bearing debt toequity capital, which includes shareholders’ equity, along withvaluation and translation adjustments) rose from 88.5% at
December 31, 2008 to 188.3% at December 31, 2009. Whenthe debt/equity ratio at December 31, 2009 is computed basedon interest-bearing debt in real terms — the ﬁgure generated bysubtracting cash and deposits in banks from interest-bearing
debt — the ratio rises by 69.0 percentage points, from 54.6% at
December 31, 2008, to 123.6%, at December 31, 2009.

With regard to proﬁts, the Company aims to return to
proﬁtability in ﬁscal 2010 on a consolidated basis, as groupwide cost structural reforms launched in ﬁscal 2009 begin toyield results and enable management to ﬂexibly respond to thesubstantial decrease in business volume. The reform package
entails reductions in market stocks in Europe and the UnitedStates, an Urgent Expense-Cutting Program and an Urgent Cost
Reduction Project.
Factoring in all these elements, the Company forecasts its
consolidated business results for ﬁscal 2010 as follows: ¥1,250
billion in net sales, an increase of ¥96.4 billion from ﬁscal 2009;¥10.0 billion in operating income, an increase of ¥72.6 billion;¥10.0 billion in ordinary income, an increase of ¥78.3 billion; and¥0 in net income, an increase of ¥216.1 billion.
All of the business performance forecasts highlighted above
are based on the assumption that one U.S. dollar will trade at ¥88(¥6 higher than ﬁscal 2009) over the period, while one euro will
equal ¥128 (¥2 higher than ﬁscal 2009).

Share Performance
Price per share increased from ¥932 at December 31, 2008,
to ¥1,166 ($12.66) at December 31, 2009. The number ofshares outstanding, excluding treasury stock, decreased, from286,373,326 shares at December 31, 2008, to 285,849,635
shares at December 31, 2009. As a result, the market
capitalization of the Company increased from ¥266.9 billion
at December 31, 2008, to ¥333.3 billion ($3,618.9 million) at
December 31, 2009.
Forecast for Fiscal 2010
In ﬁscal 2010, motorcycle demand in Asia (excluding Japan) is
expected to increase, while demand in Europe and the UnitedStates is not expected to recover for some time. Thus, salesconditions surrounding the Yamaha Motor Group are expected toremain harsh.

Cash dividends per share and payout ratio

Interest coverage

394.3

(¥)

(Times)
15
13.4

41

40

14.6

Price/earnings ratio(%)(Times)

20

150

144.0

36

13.2

16.5
30

15

28

10

100

25.50

13.3
12.5
6.7

20

10

10

5

5

50

0

0
05

06

07

08

09

Note
Interest coverage for fiscal 2008 is not listed,
due to the negative status of cash flows fromoperating activities during the period.

80

05

06

07

08

0
09

0

Cash dividends per share
Payout ratio (%)
Note
The payout ratio for fiscal 2009 is not listed,since the Company registered a net loss forthe period.

13.7

13.8

05

06

10.9

0
07

08

09

Note
The price/earnings ratio for fiscal 2009 is notlisted, since the Company registered a net
loss for the period.

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Financial Section

Corporate
Information

Five-Year Summary
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2005, 2006, 2007, 2008 and 2009

2005

2006

2007

2008

2009

Millions of yen

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 . . . . . . . . . . . . . . . . . . . . . . .
At the year end
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,375,249¥1,582,046¥1,756,707¥1,603,881¥1,153,642

183,877
1,191,371

188,650
1,393,395

181,586
1,575,120

170,208
1,433,672

130,437
1,023,205

759,775
249,844
227,159
138,469
1,002,270
103,341
103,101
64,024
76,77439,915914,810
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¥ 958,476
383,895¥1,128,688
501,054¥1,258,430
569,221¥1,163,173
428,483¥ 987,077
249,266¥¥

Yen

Per share amounts
Net income (loss) — basic . . . . . . . . . . . . . . . . . . . . .
Net income — diluted . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of employees . . . . . . . . . . . . . . . . . . . . . . . .

¥224.42223.3928.00¥

39,381270.09269.8236.00¥

248.81248.7341.00

41,95846,850

6.47
6.47
25.50

(755.92)—
0.00
49,99449,761

Note•The Company paid a commemorative 50-year anniversary dividend of ¥5 per share to individuals registered as shareholders as of December 31, 2005.

Quarterly Financial Information
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Year ended December 31, 2009

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Millions of yen

For the period
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
At the end of period
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 266,494(15,528)(15,764)¥ 579,393(33,827)(74,712)¥ 858,509(44,967)(158,755)¥1,153,642(62,580)(216,148)¥1,293,854
431,167¥1,211,177
390,567¥1,052,964
296,075¥ 987,077
249,266¥¥

Yen

Per share amounts
Net loss — basic . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income — diluted . . . . . . . . . . . . . . . . . . . . . . . .

¥(55.09)—¥(261.21)—(555.15)—(755.92)—81

Consolidated Balance Sheets
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
December 31, 2008 and 2009
Thousands of U.S.
dollars(Note 9)Millions of yen

2008

2009

2009

Cash and deposits in banks. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 133,906¥137,328$ 1,491,075

Trade notes and accounts receivable (Notes 13(2) and 13(7)). . . .

195,481

201,684

2,189,837

Inventories (Note 13(2)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

318,897——

Merchandise and ﬁnished goods (Note 13(2)). . . . . . . . . . . . . . . .

—147,380

1,600,217

Work-in-process (Note 13(2)) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—42,746464,126

Raw materials and supplies (Note 13(2)). . . . . . . . . . . . . . . . . . . .

—33,401

362,660

Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24,957

3,276

35,570

Other (Note 13(2)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

49,28963,273687,003

Less: Allowance for doubtful receivables . . . . . . . . . . . . . . . . . . .

(5,514)(8,291)(90,022)

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

717,018

620,800

6,740,499

Buildings and structures (net) (Notes 13(1) and 13(2)) . . . . . . .

98,974

94,743

1,028,697

Machinery and transportation equipment (net)(Notes 13(1) and 13(2)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

113,603

76,114

826,428

Land (Notes 13(2) and 13(3)) . . . . . . . . . . . . . . . . . . . . . . . . .

89,41773,829801,618

Construction in progress (Note 13(2)) . . . . . . . . . . . . . . . . . . .

28,486

13,444145,972

Other (net) (Notes 13(1) and 13(2)) . . . . . . . . . . . . . . . . . . . . .

25,114

17,424

189,186

Total tangible ﬁxed assets . . . . . . . . . . . . . . . . . . . . . . . . .

355,596

275,556

2,991,922

Intangible ﬁxed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,971

4,802

52,139Investment securities (Notes 13(2) and 13(6)) . . . . . . . . . . . . .

32,13638,137414,083

Long-term loans receivable (Note 13(2)) . . . . . . . . . . . . . . . . .

22,001

32,390351,683

Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25,938

5,707

61,965

Other (Notes 13(2) and 13(6)) . . . . . . . . . . . . . . . . . . . . . . . . .

5,634

10,987

119,294

Less: Allowance for doubtful receivables . . . . . . . . . . . . . . . .

(1,122)(1,305)(14,169)

Total investments and other assets . . . . . . . . . . . . . . . . . .

84,58785,917

932,866

Total ﬁxed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

446,154366,276

3,976,938

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,163,173¥987,077$10,717,448

ASSETS
Current assets:

Fixed assets:
Tangible ﬁxed assets:

Investments and other assets:

See accompanying notes to consolidated ﬁnancial statements.

82

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Corporate
Information

Financial Section

Thousands of U.S.
dollars(Note 9)Millions of yen

2008

2009

2009

LIABILITIESCurrent liabilities:
Notes and accounts payable (Note 13(7)). . . . . . . . . . . . . . . . . . .
Short-term borrowing (Note 13(2)) . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued bonuses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued warranty costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 158,760
228,336
22,435
3
46,232
63
9,688
27,341—
74,625567,488¥110,147
87,57430,470—49,3282,480
8,052
22,403926
68,313379,698$ 1,195,950
950,858
330,836—535,592
26,92787,427
243,246
10,054
741,726
4,122,671

Long-term liabilities:
Long-term debt (Note 13(2)). . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities on unrealized revaluation gain on land (Note 13(3)). . .
Accrued employees’ retirement beneﬁts. . . . . . . . . . . . . . . . . . . .
Accrued retirement beneﬁts for Directors and Corporate Auditors . . .
Accrual for product liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrual for motorcycle recycling costs . . . . . . . . . . . . . . . . . . . . .
Other provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other (Note 13(2)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

98,428
12,63031,381
184
16,757
1,121
—
6,698
167,201
734,690

281,898
7,024
34,748156
24,715
1,183
407
7,978
358,111
737,8103,060,782
76,265377,286
1,694
268,350
12,845
4,419
86,623
3,888,284
8,010,966

NET ASSETS
Shareholders’ equity:
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity. . . . . . . . . . . . . . . . . . . . . . . . . . . .

48,34260,824
392,025(181)
501,011

48,34260,824
180,880(677)
289,369

524,886
660,413
1,963,952(7,351)3,141,900

Valuation and translation adjustments:
Unrealized gain on other securities. . . . . . . . . . . . . . . . . . . . . . . .
Deferred gains or losses on hedges . . . . . . . . . . . . . . . . . . . . . . .
Unrealized revaluation gain on land (Note 13(3)) . . . . . . . . . . . . . .
Translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total valuation and translation adjustments. . . . . . . . . . . . . . .

100
1,992
17,254(125,791)(106,443)

4,039—
10,208(91,220)(76,971)

43,855—
110,836(990,445)(835,733)

Share warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30
33,885428,483¥1,163,173

72
36,796249,266¥987,077

782
399,522
2,706,471$10,717,448

See accompanying notes to consolidated ﬁnancial statements.

83Consolidated Statements of Income
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009
Thousands of U.S.
dollars(Note 9)Millions of yen

2008

2009

2009

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,603,881¥1,153,642$12,525,972

Cost of sales (Notes 14(1) and 14(3)) . . . . . . . . . . . . . . . . . . . . . . . .

1,226,775

951,350

10,329,533

Gross proﬁt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

377,105

202,292

2,196,439

Selling, general and administrative expenses (Notes 14(2) and 14(3)) . . .

328,723

264,872

2,875,917

Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48,382(62,580)(679,479)

13,078

8,367

90,847

Non-operating income:Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

842

532

5,776

Equity in earnings of afﬁliates . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,358

1,911

20,749Gain on revaluation of sales ﬁnance assets . . . . . . . . . . . . . . . . .

1,640

—

—

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,93012,443

135,103

Total non-operating income . . . . . . . . . . . . . . . . . . . . . . . . . .

29,85023,255

252,497

8,129

9,984

108,404

Non-operating expenses:
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Early retirement beneﬁt expenses. . . . . . . . . . . . . . . . . . . . . . . . .

362

35

380

Sales ﬁnance-related expenses . . . . . . . . . . . . . . . . . . . . . . . . . .

1,357

1,378

14,962

Loss on revaluation of sales ﬁnance assets . . . . . . . . . . . . . . . . .

—

3,056

33,181

Foreign exchange loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,380

2,559

27,785

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,131

12,001

130,304

Total non-operating expenses . . . . . . . . . . . . . . . . . . . . . . . .

19,36029,015315,038

Ordinary income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

58,872(68,340)(742,020)

Extraordinary proﬁts:
Gain on sale of ﬁxed assets (Note 14(4)). . . . . . . . . . . . . . . . . . . .

828

367

3,985

Gain on sale of investment securities . . . . . . . . . . . . . . . . . . . . . .

0

4

43

Total extraordinary proﬁts . . . . . . . . . . . . . . . . . . . . . . . . . . . .

828

372

4,039

Loss on sale of ﬁxed assets(Note 14(5)) . . . . . . . . . . . . . . . . . . . .

—

531

5,765

Loss on disposal of ﬁxed assets (Note 14(6)) . . . . . . . . . . . . . . . .

3,818

1,186

12,877

Impairment loss on ﬁxed assets (Note 14(7)) . . . . . . . . . . . . . . . .

203

239

2,595

Loss on sale of investment securities (Note 14(8)) . . . . . . . . . . . .

6

15

163

Extraordinary impairment loss on securities . . . . . . . . . . . . . . . . .

16,854——

Business structure improvement expenses (Notes 14(7) and 14(9)) . . .

—103,729

1,126,265

Total extraordinary losses . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20,882

105,701

1,147,676

Income (loss) before income taxes and minority interests . . . .

38,819(173,669)(1,885,657)

24,853

14,114

153,246

Extraordinary losses:

Income taxes:
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Refund (Note 14(10)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—(13,553)(147,155)

Deferred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,799

38,697420,163

Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31,652

39,258426,254

Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,314

3,220

34,962

1,851¥ (216,148)$ (2,346,884)

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
See accompanying notes to consolidated ﬁnancial statements.

84¥

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Corporate
Information

Financial Section

Consolidated Statements of Changes in Net Assets
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009
Thousands of U.S.
dollars(Note 9)Millions of yen

2008

2009

2009

¥ 48,300¥ 48,342

Issuance of new shares . . . . . . . . . . . . . . . . . . . . . . . . . . .

42

—

—

Total of changes in items during the period . . . . . . . . . . .

42

—

—

Balance at the end of current period . . . . . . . . . . . . . . . . . . .

48,342

48,342524,886

60,78460,824660,413

Shareholders’ equity
Common stock:
Balance at the end of previous period . . . . . . . . . . . . . . . . . .

$524,886

Changes in items during the period:

Capital surplus:
Balance at the end of previous period . . . . . . . . . . . . . . . . . .
Changes in items during the period:
Issuance of new shares . . . . . . . . . . . . . . . . . . . . . . . . . . .

42

—

—

Disposal of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

(0)

(0)

Total of changes in items during the period . . . . . . . . . . .

39

(0)

(0)

Balance at the end of current period . . . . . . . . . . . . . . . . . . .

60,82460,824660,413

Balance at the end of previous period . . . . . . . . . . . . . . . . . .

401,972

392,025

4,256,515

Effect of changes in accounting policies applied to foreignsubsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—

(609)

(6,612)

Reversal of revaluation reserve on land . . . . . . . . . . . . . . . .

(56)

7,045

76,493

Dividends from surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11,741)(1,432)(15,548)

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,851(216,148)(2,346,884)

Increase in consolidated subsidiaries . . . . . . . . . . . . . . . . .

647

—

—

Decrease in consolidated subsidiaries. . . . . . . . . . . . . . . . .

(47)

—

—

Increase in subsidiaries and afﬁliates accounted for by theequity method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

160

—

—

Decrease in subsidiaries and afﬁliates accounted for by theequity method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(761)

—

—

Total of changes in items during the period . . . . . . . . . . .

(9,946)(210,535)(2,285,939)

Balance at the end of current period . . . . . . . . . . . . . . . . . . .

392,025

180,880

1,963,952

(186)

(181)

(1,965)Acquisition of treasury stock . . . . . . . . . . . . . . . . . . . . . . . .

(13)

(497)

(5,396)

Disposal of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . .

19

0

0

Total of changes in items during the period . . . . . . . . . . .

5

(496)

(5,385)Retained earnings:

Changes in items during the period:

Treasury stock:
Balance at the end of previous period . . . . . . . . . . . . . . . . . .
Changes in items during the period:

Balance at the end of current period . . . . . . . . . . . . . . . . . . .

¥

(181)

¥

(677)

$

(7,351)

See accompanying notes to consolidated ﬁnancial statements.

85

Consolidated Statements of Changes in Net Assets
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009
Thousands of U.S.
dollars(Note 9)Millions of yen

2008

2009

2009

¥ 510,870¥ 501,011$ 5,439,859

—

(609)

(6,612)

Total shareholders’ equity:
Balance at the end of previous period . . . . . . . . . . . . . . . . . .
Effect of changes in accounting policies applied to foreignsubsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in items during the period:
Issuance of new shares . . . . . . . . . . . . . . . . . . . . . . . . . . .

85

—

—

Reversal of revaluation reserve on land . . . . . . . . . . . . . . . .

(56)

7,045

76,493

Dividends from surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11,741)(1,432)(15,548)

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,851(216,148)(2,346,884)

Increase in consolidated subsidiaries . . . . . . . . . . . . . . . . .

647

—

—

Decrease in consolidated subsidiaries. . . . . . . . . . . . . . . . .
Increase in subsidiaries and afﬁliates accounted for by theequity method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in subsidiaries and afﬁliates accounted for by theequity method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(47)

—

—

160

—

—

(761)

—

—

Acquisition of treasury stock . . . . . . . . . . . . . . . . . . . . . . . .

(13)

(497)

(5,396)

Disposal of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . .

16

0

0

Total of changes in items during the period . . . . . . . . . . .

(9,858)(211,032)(2,291,336)

Balance at the end of current period . . . . . . . . . . . . . . . . . . .

501,011289,369

3,141,900

4,660

100

1,086

Net changes in items other than shareholders’ equity . . . . .

(4,559)3,939

42,769Total of changes in items during the period . . . . . . . . . . .

(4,559)3,939

42,769Balance at the end of current period . . . . . . . . . . . . . . . . . . .

100

4,039

43,855

(253)

1,992

21,629Net changes in items other than shareholders’ equity . . . . .

2,245(1,992)(21,629)

Total of changes in items during the period . . . . . . . . . . .

2,245(1,992)(21,629)

Balance at the end of current period . . . . . . . . . . . . . . . . . . .

1,992

—

—

17,19817,254

187,340

Net changes in items other than shareholders’ equity . . . . .

56(7,045)(76,493)

Total of changes in items during the period . . . . . . . . . . .

56(7,045)(76,493)

Balance at the end of current period . . . . . . . . . . . . . . . . . . .

17,254

10,208110,836(2,251)(125,791)(1,365,809)(123,539)

34,570375,353

Valuation and translation adjustments
Unrealized gain on other securities:
Balance at the end of previous period . . . . . . . . . . . . . . . . . .
Changes in items during the period:

Deferred gains or losses on hedges:
Balance at the end of previous period . . . . . . . . . . . . . . . . . .
Changes in items during the period:

Unrealized revaluation gain on land:
Balance at the end of previous period . . . . . . . . . . . . . . . . . .
Changes in items during the period:

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 . . . . . . . . . . .

(123,539)

34,570375,353

Balance at the end of current period . . . . . . . . . . . . . . . . . . .

¥(125,791)¥ (91,220)$ (990,445)

See accompanying notes to consolidated ﬁnancial statements.

86

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Corporate
Information

Financial Section

Thousands of U.S.
dollars(Note 9)Millions of yen

2008

2009

2009

¥ 19,353¥(106,443)$(1,155,733)

Net changes in items other than shareholders’ equity . . . . .

(125,797)

29,471

319,989

Total of changes in items during the period . . . . . . . . . . .

(125,797)

29,471

319,989

Balance at the end of current period . . . . . . . . . . . . . . . . . . .

(106,443)(76,971)(835,733)

—

30

326

Net changes in items other than shareholders’ equity. . . . . . .

30

42

456

Total of changes in items during the period . . . . . . . . . . .

30

42

456

Balance at the end of current period . . . . . . . . . . . . . . . . . . . . . .

30

72

782

38,99733,885367,915

—

(57)

(619)

(5,112)

2,969

32,237

Total valuation and translation adjustments:
Balance at the end of previous period . . . . . . . . . . . . . . . . . .
Changes in items during the period:

Share warrants
Balance at the end of previous period . . . . . . . . . . . . . . . . . . . . .
Changes in items during the period:

Minority interests
Balance at the end of previous period . . . . . . . . . . . . . . . . . . . . .
Effect of changes in accounting policies applied to foreignsubsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in items during the period:
Net changes in items other than shareholders’ equity. . . . . . .
Total of changes in items during the period . . . . . . . . . . .

(5,112)

2,969

32,237

Balance at the end of current period . . . . . . . . . . . . . . . . . . . . . .

33,88536,796

399,522569,221428,483

4,652,367

—

(667)

(7,242)

Total net assets
Balance at the end of previous period . . . . . . . . . . . . . . . . . . . . .
Effect of changes in accounting policies applied to foreignsubsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in items during the period:
Issuance of new shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

85

—

—

Reversal of revaluation reserve on land. . . . . . . . . . . . . . . . . .

(56)

7,045

76,493

Dividends from surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11,741)(1,432)(15,548)

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,851(216,148)(2,346,884)

Increase in consolidated subsidiaries . . . . . . . . . . . . . . . . . . .

647

—

—

Decrease in consolidated subsidiaries . . . . . . . . . . . . . . . . . .
Increase in subsidiaries and afﬁliates accounted for by theequity method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in subsidiaries and afﬁliates accounted for by theequity method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(47)

—

—

160

—

—

(761)

—

—

Acquisition of treasury stock. . . . . . . . . . . . . . . . . . . . . . . . . .

(13)

(497)

(5,396)

Disposal of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

0

0

Net changes in items other than shareholders’ equity. . . . . . .

(130,879)

32,483352,693

Total of changes in items during the period . . . . . . . . . . .

(140,738)(178,549)(1,938,643)

Balance at the end of current period . . . . . . . . . . . . . . . . . . . . . .

¥ 428,483¥ 249,266$ 2,706,471

See accompanying notes to consolidated ﬁnancial statements.

87Consolidated Statements of Cash Flows
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009
Thousands of U.S.
dollars(Note 9)Millions of yen

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 16(2)) . . . . . . . .
Extraordinary impairment loss on securities . . . . . . . . . . . . . . . . .
Amortization of negative goodwill . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in allowance for doubtful receivables . . . . . . . . . . . . . . .
(Decrease) increase in accrued employees’ retirement beneﬁts . .
Increase in accrual for product liabilities . . . . . . . . . . . . . . . . . . . .
Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity in earnings of afﬁliates . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Gain) loss on sale of ﬁxed assets. . . . . . . . . . . . . . . . . . . . . . . . .
Loss on disposal of ﬁxed assets. . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on sale of investment securities . . . . . . . . . . . . . . . . . . . . . .
Decrease (increase) in trade notes and accounts receivable . . . . .
Decrease (increase) in inventories. . . . . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in notes and accounts payable . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends received . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash (used in) 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 acquisition of subsidiaries . . . . . . . . . . . . . . . . . . . .
Payments for long-term loans receivable . . . . . . . . . . . . . . . . . . .
Proceeds from collections of long-term loans receivable . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . .
Cash ﬂows from ﬁnancing activities:
Increase (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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends paid to minority shareholders . . . . . . . . . . . . . . .
Sale (purchase) of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . .
Increases in common stock and capital surplus . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) 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 due to inclusion of subsidiaries in consolidation . . . .
Decrease due to exclusion of subsidiaries in consolidation . . .
Cash and cash equivalents at end of the period (Note 16(1)) . . .
See accompanying notes to consolidated ﬁnancial statements.

88

2008

2009

2009

¥ 38,819
59,606203—
16,854(0)632(1,154)—(13,921)8,129
46(2,358)
(828)
3,818
5
(8,188)(75,961)
2,399
1,471
29,572
15,575(7,973)(43,621)(6,446)¥(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$(1,885,657)
583,073
2,595
899,229——
26,13530,39189,805(96,634)
108,404
1,661(20,749)
1,770
12,877
109662,628
1,268,295(606,493)(202,139)
875,331108,089(120,793)(58,100)
804,517(9,244)
19,663(100,428)
3,082(3,773)89(0)(3,604)78(5,407)(99,543)(1,042)484(47,786)
7,187
(0)
60
—
(3,972)204(421)(45,285)(11,314)5,255(518,849)
78,035(0)651—(43,127)
2,215(4,571)(491,694)

89,40985,180
(196)
4,357
—
(11,741)(3,918)2
85—
163,179(25,665)
31,523102,079859(98)¥134,364(215,013)
209,343(21,807)16(3)(1,432)(2,011)
(496)
—
(617)
(32,022)
6,066
2,854
134,364——¥ 137,219(2,334,560)
2,272,997(236,775)
174(33)(15,548)(21,835)(5,385)—(6,699)(347,687)
65,86330,9881,458,893——$ 1,489,891

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

1. Basis of Presentation
Yamaha Motor Co., Ltd. (The “Company”) and its domestic
subsidiaries maintain their accounting records and prepare theirﬁnancial statements in accordance with accounting principles
generally accepted in Japan, and its foreign subsidiaries maintaintheir books of account in conformity with those of their countriesof domicile.
The accompanying consolidated ﬁnancial statements havebeen prepared in accordance with accounting principles generally
accepted in Japan, which are different in certain respects fromthe application and disclosure requirements of the International
Financial Reporting Standards.
The text in the sections which follow comprise the English versionof the securities report.
As permitted by the Financial Instruments and ExchangeAct, amounts of less than one million yen have been omitted.
Consequently, the totals shown in the accompanying consolidated
ﬁnancial statements (both in yen and U.S. dollars) do notnecessarily equal the sum of the individual amounts.

2. Scope of Consolidation
Number of consolidated subsidiaries: 107
Number of non-consolidated subsidiaries: 12
Names of principal consolidated subsidiaries:
Yamaha Motorcycle Sales Japan Co., Ltd., Yamaha Motor
Powered Products Co., Ltd., Yamaha Motor Electronics Co.,
Ltd., Yamaha Motor Corporation, U.S.A., Yamaha Motor
Manufacturing Corporation of America, Yamaha Motor Europe
N.V., Yamaha Motor España S.A., PT. Yamaha Indonesia Motor
Manufacturing, Thai Yamaha Motor Co., Ltd., Yamaha Motor
Vietnam Co., Ltd., and Yamaha Motor Taiwan Co., Ltd.
Yamaha Marine Co., Ltd., one of the Company’s consolidated
subsidiaries in Japan, entered into an absorption-type merger, with
the Company as the surviving company. E&S Co., Ltd., anotherof the Company’s consolidated subsidiaries in Japan, entered into
an absorption-type merger, with YS Co., Ltd.Note as the surviving

company. Both subsidiaries were excluded from consolidation.
Total assets, net sales, net income or loss, retained earnings andother ﬁnancial indexes of non-consolidated subsidiaries, including
HL Yamaha Motor Research Centre Sdn. Bhd., were individuallyinsigniﬁcant to the Company’s consolidated ﬁnancial statements,
and were not signiﬁcant in the aggregate.
Yamaha Motor Polska Sp.z o.o., Yamaha Motor Hungary Kft.,
Yamaha Motor Austria GmbH. and Yamaha Motor Czech spol.
s r.o., which were overseas consolidated subsidiaries of theCompany, entered into an absorption-type merger, with Yamaha
Motor Middle Europe B.V. as the surviving company. They were
excluded from consolidation.
Note
YS Co., Ltd. changed its name to Yamaha Motor Support & Service Co., Ltd. on
January 1, 2009.

3. Scope of Application of Equity Method of Accounting
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

Five 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
and other consolidated ﬁnancial indexes, and were not signiﬁcantin the aggregate. Therefore, the Company’s investments in thesecompanies were stated at cost, instead of being accounted for by
the equity method of accounting.

4. Closing Date for Consolidated Subsidiaries
The ﬁnal date of the business year for all the Company’s consolidated subsidiaries is established in accordance with the Company’s annual
closing date for its consolidated ﬁnancial accounting.

89

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

5. Accounting Standards(1) Asset Valuation
1) Securities
Other securities
Marketable securities classiﬁed as “other” securities are carriedat fair value, based on market prices as of the balance sheet
date. (Any changes in unrealized holding gain or loss, netof the applicable income taxes, are included directly in net
assets. The cost of securities sold is determined by the moving
average method.)
Non-marketable securities classiﬁed as “other” securities arecarried at cost, determined by the moving-average method.
2) Derivatives
Derivatives are carried at fair value.
3) Inventories
Inventories are stated at cost, determined primarily by the averagemethod. (Values stated in the balance sheet are computed using
the write-down of book value due to lower proﬁtability)(Changes in accounting policies)
Application of accounting standard for measurement of inventories
In conjunction with the application of the Accounting Standard
for Measurement of Inventories (Accounting Standards Boardof Japan (ASBJ) Statement No.9; July 5, 2006), effective fromthe ﬁscal year ended December 31, 2009, the Company haschanged the evaluation method from the lower-of-cost-ormarket-valuation accounting method to the cost method (whichallows write-down of book value due to lower proﬁtability).
The impact of this change on the statement of income forthe ﬁscal year ended December 31, 2009 is insigniﬁcant.
(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.
(Additional Information)
Effective from the ﬁscal year ended December 31, 2009, theCompany and its consolidated subsidiaries in Japan reviewed
the useful life of certain tangible ﬁxed assets, mainly machineryand equipment, taking advantage of a change in the Corporate
Tax Law (Ministerial Ordinance to Partially 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 loss, ordinary
loss, and loss before income taxes and minority interests for theﬁscal 2009 each increased by ¥1,199 million ($13,018 thousand),compared with the ﬁgures derived using the previous method.
For the impact this change had on the segment information,refer to “Segment Information.”
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 iscomputed by the straight-line method over the software’s
estimated useful life (ﬁve years).

903) Leased assets
Leased assets involved in ﬁnance lease transactions whichtransfer ownership
Computed using the same depreciation method applicable toself-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 prior to
December 31, 2008, are computed based on an accounting
method similar to the method for ordinary rental transactions.
(3) Signiﬁcant Accruals
1) Allowance for doubtful receivables
In order to evaluate accounts receivable, 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 periodsof 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 thewarranty period by a factor (after-sales service expenses/salesof products) based on actual costs in the past years and sales
during the warranty period.
5) Accrued employees’ retirement beneﬁts
Accrued employees’ retirement beneﬁts are provided mainly at an
amount, deemed generated on December 31, 2009, calculated
based on the retirement beneﬁt obligation and the fair value ofthe pension plan assets as of the balance sheet date, as adjusted
for unrecognized actuarial gain or loss and unrecognized priorservice 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.

Operating
Performance

Message from theManagement

Special Report6) 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.

Overview ofOperations

CSR

Corporate
Information

Financial Section(4) Other Items of Signiﬁcance in Drawing up Consolidated
Financial Statements
1) Consumption taxes
Transactions subject to national and/or local consumption tax arerecorded at an amount exclusive of the consumption taxes.
2) Application of consolidated tax return system
The Company applies the Consolidated Tax Return System.

6. Valuation of Assets and Liabilities of Consolidated Subsidiaries
All assets and liabilities of consolidated subsidiaries acquired through business combination are carried at fair value.

7. 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.

8. Range of Funds in the Consolidated Statements of Cash Flows
In the consolidated statements of cash ﬂows, funds (cash and cash
equivalents) include cash on hand, deposits that can be withdrawn
when needed, and short-term investments with a maturity of lessthan three months from the date of acquisition that are marketable
and subject to minimum ﬂuctuation in value.

9. U.S. Dollar Amounts
The translation of yen amounts into U.S. dollar amounts is included
solely for the convenience of readers outside Japan and has been
made, as a matter of arithmetic computation only, at ¥92.10 =U.S.$1.00, the approximate rate of exchange in effect at December
31, 2009.

The translation should not be construed as a representation that
yen have been, could have been, or could be converted into U.S.
dollars at this or any other rate.

10. Changes in Accounting Principles and Procedures(1) Application of “Practical Solution on Uniﬁcation of
Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements”
In conjunction with applying the Practical Solution on Uniﬁcationof Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements (ASBJ Practical Issues

Task Force No.18; May 17, 2006), effective from the ﬁscal year
ended December 31, 2009, the Company has made necessary
adjustments to the consolidated ﬁnancial statements.
The impact of these changes on the statement of income forthe ﬁscal year ended December 31, 2009, and retained earnings
and minority interests at the end of ﬁscal 2009 is insigniﬁcant.

91

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

(2) Application of “Accounting Standards to Lease
Transactions,” etc.
Finance lease transactions which do not transfer ownershipwere previously computed based on an accounting method
similar to the method for ordinary rental transactions. However,effective from the ﬁscal year ended December 31, 2009, theCompany has applied the Accounting Standard for Lease
Transactions (ASBJ Statement No.13; June 17, 1993: the First
Committee of Business Accounting Council; revised March
30, 2007) and its Implementation Guidance (ASBJ Guidance
No.16; January 18, 1994: Accounting Practice Committee of
the Japanese Institute of Certiﬁed Public Accountants; revised
March 30, 2007). Thus, these transactions are computed basedon an accounting method similar to the method for ordinary saleand purchase transactions.
Regarding those ﬁnance lease transactions which do nottransfer ownership, where the lease transaction start date
was prior to the ﬁrst year of the application, the Company has
continued using the accounting method similar to the method
for ordinary rental transactions.
The impact of this change on the consolidated statementof income for the ﬁscal year ended December 31, 2009 is
insigniﬁcant.

(3) Important Change of Accounting Treatment in Respect toHedge Transactions
The Company previously applied the deferred hedge accounting
method for derivative transactions which meet hedge
accounting criteria, the deferral hedge accounting method forforeign exchange forward contracts which meet deferral hedge
accounting criteria, and the short-cut accounting method forinterest rate swaps which meet short-cut accounting criteria.
However, pursuant to a review of Group hedge policies, effectivefrom the ﬁscal year December 31, 2009, the Company haschanged to the market value method in order to properly reﬂect
the effect of derivative transactions in the consolidated ﬁnancial
statements of the Group.
In its accounting method for transactions with a ﬁxed yen
settlement amount based on foreign exchange contracts prior
to such transactions, the Company has been assigning the yen
settlement amount as is. However, in line with the change inhedge accounting methodology, the Company has switched
to a method which converts the amount using an appropriate
exchange rate (the spot rate at the time of the transaction).
The impact of this change on the statement of income for theﬁscal year ended December 31, 2009 is insigniﬁcant.

11. Changes in Presentation Methods(1) Consolidated Balance Sheets
1) In conjunction with the application of the Cabinet Ofﬁce
Ordinance to Amend the Rules for the Terminology, Form, andPreparation Method of Consolidated Financial Statements(Cabinet Ofﬁce Ordinance No. 50 of August 7, 2008), items
classiﬁed as “Inventories” in the ﬁscal year ended December 31,
2008 were reclassiﬁed as “Merchandise and ﬁnished goods,”“Work-in-process” and “Raw materials and supplies” in the ﬁscal
year ended December 31, 2009.
The amounts of the “Merchandise and ﬁnished goods,” “Workin-process” and “Raw materials and supplies” columns in thebalance sheet in the ﬁscal year ended December 31, 2008 were¥230,378 million, ¥49,119 million and ¥39,399 million, respectively.
2) “Other provisions (long-term liabilities)” included in the “Other(long-term liabilities)” column in the balance sheet in the ﬁscal
year ended December 31, 2008 have been classiﬁed separately
in the balance sheet in the ﬁscal year ended December 31, 2009,
due to the application of the Rules for the Terminology, Form,and Preparation Method of the Quarterly Consolidated Financial

Statement (Cabinet Ofﬁce Ordinance No. 64 of August 10, 2007).
The amount of “Other provisions (long-term liabilities)” includedin the “Other (long-term liabilities)” column in the balance sheet inthe ﬁscal year ended December 31, 2008 totaled ¥624 million.
(2) Consolidated Statements of Income“Loss on disposal of ﬁxed assets” in the ﬁscal year ended
December 31, 2008 included “Loss on sale of ﬁxed assets,”
which was listed in the notes to the consolidated statement ofincome. However, effective from the ﬁscal year ended December
31, 2009, “Loss on disposal of ﬁxed assets” and “Loss on saleof ﬁxed assets” have been classiﬁed separately, in order toimprove comparability of the consolidated ﬁnancial statements, inconjunction with the introduction of XBRL to EDINET.
“Loss on sale of ﬁxed assets” included in “Loss on disposal ofﬁxed assets” in the ﬁscal year ended December 31, 2008 totaled¥1,393 million.

12. Additional Information
Impact of a Revision in the Fund-raising Program,
Prompted by the Liquidation of Receivables
The Company revised its fund-raising program, prompted by theliquidation of receivables of Yamaha Motor Corporation, U.S.A.,
a consolidated subsidiary in the United States, during ﬁscal
2009. Reﬂecting this revision, the Company posted U.S.$600
millionNote in trade notes and accounts receivable, and U.S.$600
million in short-term borrowing, in the Consolidated Balance
Sheet for the second quarter of ﬁscal 2009. Those accounts

92

are subjects of the fund-raising program, which had not beenposted in the previous Consolidated Balance Sheets.
The impact arising from the revision on cash ﬂows was
insigniﬁcant. Therefore, the impact in the Consolidated
Statement of Cash Flows for ﬁscal year ended December 31,
2009 has been eliminated.
Note
The balance of foreign currency on December 31, 2009 totaled U.S.$ 301 million,
equivalent to ¥27,698 million, computed at the rate on December 31, 2009.

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

13. Consolidated Balance Sheets
Information regarding consolidated balance sheets at December 31, 2008 and 2009 is as follows.
(1) Accumulated depreciation of tangible ﬁxed assets
Thousands of
U.S. dollars

Millions of yen

2008¥481,615

2009¥516,4782009$5,607,796(2) Pledged assets and secured liabilities
Thousands of
U.S. dollars

Millions of yen

2008

2009

2009

Pledged assets:
Trade notes and accounts receivable ............................................................
Inventories ....................................................................................................
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 .................................................................................................................

¥ 5,967
4,964
—
—
—
—
1,309
5,294
1,432
2,673
183
27
—
—
¥21,852¥ 66,815
—
2,152
464
2,124
9,772
182
8,758
1,528
1,130
327
27
23,994
1,050¥118,328$ 725,461—
23,366
5,038
23,062
106,102
1,976
95,092
16,591
12,2693,550
293
260,521
11,401$1,284,777

Secured liabilities:
Short-term borrowing ...................................................................................
Long-term debt
Long-term liabilities — other .........................................................................
Total .................................................................................................................

¥ 9,694—
1,225¥10,919¥ 41,837
24,0391,476¥ 67,352$ 454,256
261,010
16,026$ 731,292

The ﬁscal 2009 amount includes pledged assets of ¥61,913
million ($672,237 thousand) registered in ﬁscal 2009, in
conjunction with a revision in the fund-raising program,
prompted by the liquidation of receivables of Yamaha Motor

Corporation, U.S.A., a consolidated subsidiary in the UnitedStates. Secured liabilities corresponding to these pledged assets
amount to ¥27,698 million ($300,738 thousand).

(3) Pursuant to the “Law Concerning the Revaluation of Land” (No.
24, enacted on March 31, 1999), land used for the Company’sbusiness operations was revalued. The income tax effect of thedifference between the book value and the revalued amount
has been presented under liabilities as “Deferred tax liabilities on
unrealized revaluation gain on land” and the remaining balancehas been presented under net assets as “Unrealized revaluation
gain on land” in the accompanying consolidated balance sheets.

revaluation was determined based on the ofﬁcial notice prices
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.

a) Date of revaluation

March 31, 2000c) 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 2008 and 2009 was below its book valueby ¥20,681 million and ¥5,272 million ($57,242 thousand),
respectively.

b) Method of revaluation
Under Article 2-4 of the Ordinance Implementing the Law
Concerning Land Revaluation (No. 119 of the 1998 Cabinet
Order, promulgated on March 31, 1998), the land price for the93Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009(4) Guarantee obligations
Guarantees are given for the following companies’ debt from ﬁnancial institutions.
Thousands of
U.S. dollars

Millions of yen

Subsidiaries or afﬁliates:
Amagasaki Woodland of Health Co., Ltd. .....................................................
Fuzhou Jiaxin Soqi Power Products Co., Ltd. ...............................................
Other companies:
Enrum Marina Muroran Inc............................................................................
Marina Kawage Co., Ltd. ..............................................................................
Total .................................................................................................................

2008

2009

2009

¥339
51

¥316
—

$3,431
—

74
36
¥501

65
25
¥408

706
271
$4,430

Guarantee obligations described above include amounts arising from acts resembling guarantees: ¥375 million and ¥342 million ($3,713
thousand) at the end of ﬁscal 2008 and 2009, respectively.
(5) Discounts on trade notes receivableThousands of
U.S. dollars

Millions of yen

2008¥1,7092009¥1,117

2009$12,128(6) Investment securities and investment in partnerships with non-consolidated subsidiaries and afﬁliates are as follows.
Thousands of
U.S. dollars

Millions of yen

Investment securities (stock) .............................................................................
Investment in partnerships ................................................................................

(7) Notes maturing at the end of the consolidated ﬁscal year
were settled on the date of clearing. As the end of the current
consolidated ﬁscal year fell on a holiday for ﬁnancial institutions,2008¥17,029415

2009¥18,644426

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

Notes receivable-trade......................................................................................
Notes payable-trade .........................................................................................

94

2009
$202,432
4,625

2008
¥1,444
906

2009
¥326
259

2009
$3,5402,812Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

14. Consolidated Statements of Income
Information regarding consolidated statements of income for the years ended December 31, 2008 and 2009 is as follows.
(1) Loss on devaluation of inventories arising from write-down of book value due to lower proﬁtability included in cost of sales
Thousands of
U.S. dollars

Millions of yen

2008
—

2009
¥10,3622009$112,508(2) Breakdown of major selling, general and administrative expenses
Thousands of
U.S. dollars

Millions of yen

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........................................
Provision for accrued retirement beneﬁts for Directors and Corporate Auditors ....

2008
¥33,541
32,10943,485
13,4181,334—
59
84,598
3,029
2,901
9

2009
¥21,910
18,871
29,887
6,768
2,533
13,041
62
73,560
2,693
3,251
—

2009
$237,894
204,897
324,506
73,48527,503
141,596673
798,697
29,24035,299—(3) Research and development expenses included in selling, general and administrative expenses and manufacturing costs
Thousands of
U.S. dollars

Millions of yen

2008¥85,0902009¥62,0662009$673,898(4) Breakdown of gain on sale of ﬁxed assets
Thousands of
U.S. dollars

Millions of yen

Buildings and structures (net)............................................................................
Machinery and transportation equipment (net) ..................................................
Land .................................................................................................................
Other (net) ........................................................................................................
Total .................................................................................................................

2008
¥ 41
366
400
19
¥828

2009
¥ 11
319
—
36
¥367

2009
$ 119
3,464
—
391
$3,985(5) Breakdown of loss on sale of ﬁxed assets
Thousands of
U.S. dollars

Millions of yen

Buildings and structures (net)............................................................................
Machinery and transportation equipment (net) ..................................................
Land .................................................................................................................
Other (net) ........................................................................................................
Total .................................................................................................................

2008
¥—
—
—
—
¥—

2009
¥ 97
302
14
116
¥531

2009
$1,053
3,279
152
1,260
$5,765(6) Breakdown of loss on disposal of ﬁxed assets
Thousands of
U.S. dollars

Millions of yen

Buildings and structures (net)............................................................................
Machinery and transportation equipment (net) ..................................................
Land .................................................................................................................
Other (net) ........................................................................................................
Total .................................................................................................................

2008
¥ 811
1,808
320
877
¥3,818

2009
¥ 283
665
—
238
¥1,1862009$ 3,073
7,220
—
2,584
$12,87795

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

(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
Impairment loss
Use

Location

Motorcycles

Iwata City (Shizuoka, Japan),
U.S.A., Brazil, France, Italy,
Hungary,otherMarine products

Hamamatsu City (Shizuoka,
Japan), U.S.A., France,
otherPower products

Kakegawa City (Shizuoka,
Japan), U.S.A.,
other

Other products

Iwata City (Shizuoka, Japan),other

Idle assets

Hamamatsu City (Shizuoka,
Japan),
other

Item

Millions of yen

Thousands of
U.S. dollars

Buildings and structures . . . . . . . . . . . . . . . . . .
Machinery and transportation equipment. . . . . .
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible ﬁxed assets . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings and structures . . . . . . . . . . . . . . . . . .
Machinery and transportation equipment. . . . . .
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible ﬁxed assets . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings and structures . . . . . . . . . . . . . . . . . .
Machinery and transportation equipment. . . . . .
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible ﬁxed assets . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings and structures . . . . . . . . . . . . . . . . . .
Machinery and transportation equipment. . . . . .
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible ﬁxed assets . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings and structures . . . . . . . . . . . . . . . . . .
Machinery and transportation equipment. . . . . .
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible ﬁxed assets . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 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

$ 94,473
280,174
132,92160,651
662$568,925$ 10,901
106,276
315
6,775
2,421
1,618
$128,328$ 12,117
64,21352,063
14,278
10,25033$152,997$ 4,408
35,939586
2,975
65$ 43,996$ 1,086
4,430
1,314
228
402
65
$ 7,568

2) Method for grouping assets
An asset group is deﬁned as the minimum unit within abusiness segment that generates cash ﬂows, generally
independent from other asset groups in that segment.
3) Background to the recognition of impairment losses
Impairment losses recognized in the motorcycle, marine,
power product and other product business directly correlate to
the signiﬁcant deterioration of the market in these segments.
Impairment losses were also identiﬁed among certain idle
assets not serving business uses. Speciﬁcally, losses wererecognized for those idle assets whose market prices havesigniﬁcantly declined from their book values.

964) 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 estimatedvalue based on real-estate appraisal criteria; or the net salevalue, reasonably computed using the inheritance tax value
determined by land assessment, whichever is greater.

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Financial Section

Corporate
Information(8) Loss on sale of investment securities includes a ¥9 million ($98 thousand) loss from the sale of shares in subsidiaries and afﬁliates.
beneﬁt expenses; and ¥749 million ($8,132 thousand) in
expenses resulting from the improvement and reorganization of
the manufacturing system.

(9) Breakdown of business structure improvement expenses
Business structure improvement expenses comprise ¥82,819
million ($899,229 thousand) in impairment losses on ﬁxed
assets; ¥20,160 million ($218,893 thousand) in early retirement(10) The refund of income taxes is estimated computed based on the refund involving past year transactions of Yamaha Motor Corporation,
U.S.A., the Company’s U.S. subsidiary.

15. Consolidated Statements of Changes in Net Assets
Information regarding consolidated statements of changes in net assets for the years ended December 31, 2008 and 2009 is as follows.
Fiscal year ended December 31, 2008
(1) Type and number of outstanding shares
SharesCommon stock

Number of shares asof December 31, 2007

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, 2008

286,457,784

50,0000286,507,784

Number of shares asof December 31, 2007

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, 2008

129,915

16,801

12,258134,458

Note The reasons for the increase in the number of shares are as follows:•Increase due to the exercise of share warrants: 50,000 shares(2) Type and number of treasury stocks
SharesCommon 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:
8,971 shares•Increase due to the acquisition of subsidiaries and afﬁliates accounted for by the equity method: 7,830 shares•Decrease due to requests for additional purchase of less-than-one-unit shares by shareholders: 12,258 shares(3) Share warrants and own share warrants
Classiﬁcation

Yamaha Motor
Co. Ltd.

Description of share
warrants
Fourth unsecured
convertible bonds Note 1
Share warrants as
stock options Note 2
Total

December 31,
2007

Increase during
the ﬁscal year
under review

Decrease during
the ﬁscal year
under review

December 31,
2008

Balance as ofDecember 31,
2008(Millions of yen)

Common stock

—

—

—

—

—

—

—

—

—

—

¥30

—

—

—

—

—

¥30

Type of shares tobe issued by theexercise of share
warrants

Number of shares issued by the exercise of share warrants (shares)

Notes 1 The number of shares to be issued by the exercise of share warrants has been omitted, because it is considered insigniﬁcant in the aggregate relative to the total
number of shares outstanding at the end of ﬁscal 2008. Also, the fourth unsecured convertible bonds had no balance at the end of ﬁscal 2008, because they were
issued in accordance with the former Commercial Code in Japan.
2 Among share warrants exercised as stock options, none had an exercise period that had begun at the end of ﬁscal 2008.

97

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

(4) Dividends•Amount of dividends paid
Resolution

Type of share

Ordinary General Meetingof Shareholders held on
March 26, 2008
Board of Directors
Meeting held on July 31,
2008

Total amount of dividends

Dividend per share

Millions of yen

Yen

Record date

Effective dateCommon stock¥5,870¥20.50December 31, 2007

March 27, 2008

Common stock¥5,870¥20.50June 30, 2008

September 10, 2008

•Dividends with an effective date during the following ﬁscal year, but with a record date during the ﬁscal year under review
Resolution

Type of share

Total amount ofdividends

Source of dividend

Dividend per share

Millions of yen

Ordinary General Meetingof Shareholders held on
March 25, 2009

Common stock

Record date

Effective date

December 31,
2008

March 26, 2009

Yen

Retainedearnings¥1,432¥5.00

Fiscal year ended December 31, 2009
(1) Type and number of outstanding shares
SharesNumber of shares asof December 31, 2008

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

286,507,784

00286,507,784

Number of shares asof December 31, 2008

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

134,458

524,176

485

658,149

Common stock(2) Type and number of treasury stocks
SharesCommon stock

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.

(3) Share warrants and own share warrants
Classiﬁcation

Description of share
warrants

Number of shares issued by the exercise of share warrants
Type of shares to(shares)
be issued by theexercise of share December 31, Increase during Decrease during December 31,
the ﬁscal year the ﬁscal year
warrants
2008
2009
under review
under review

Yamaha Motor Share warrants as
Co. Ltd.
stock options Note
Total

Balance as of December 31,
2009
Millions of yen

Thousands of
U.S. dollars

—

—

—

—

—

¥72

$782

—

—

—

—

—

¥72

$782

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

Ordinary General Meetingof Shareholders held on
March 25, 2009

Type of share

Commonstock

Total amount of dividends

Dividend per share

Millions of yen

Thousands of U.S.
dollars

Yen

U.S. dollars¥1,432$15,548

¥5.00

$0.05

•Dividends with an effective date after the ﬁscal year under review, but with a record date during the period
No related items.

98

Record date

Effective date

December 31,
2008

March 26,
2009

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

16. Consolidated Statements of Cash Flows
Information regarding consolidated statements of cash ﬂows for the years ended December 31, 2008 and 2009 is as follows.
(1) Reconciliation of “cash and cash equivalents” as of December 31, 2008 and 2009 to amounts in the various accounts appearing in theaccompanying consolidated balance sheets
Thousands of
U.S. dollars

Millions of yen

Cash and deposits in banks .............................................................................
Time deposits with maturity in excess of three months .....................................
Other current assets .........................................................................................
Cash and cash equivalents ...............................................................................

(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

2008
¥133,906(148)
606¥134,364

2009¥137,328(721)
612¥137,2192009$1,491,075(7,828)6,645$1,489,891

included in the business structure improvement expenses
posted in the consolidated statement of income for ﬁscal 2009.

17. Lease Information
Information regarding leases for the years ended December 31, 2008 and 2009 is as follows.
Fiscal year ended December 31, 2008
(1) Finance leases for which ownership does not transfer to lesseesa) Amounts equivalent to acquisition cost, accumulated depreciation and the net book value of leased property at December 31, 2008
Millions of yen

Other (tools, furniture and ﬁxtures) ...................................

Acquisition cost
¥7,578

Accumulated depreciation¥5,918Net book value¥1,660Acquisition 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, 2008
Millions of yen

Payable within one year .......................................................................................................................
Payable after one year .........................................................................................................................
Total ....................................................................................................................................................

¥ 757
903
¥1,660Future minimum lease payments of leased property were computed based on the inclusion of their interest portion, due to the lower
ratio of the balance for future minimum lease payments to the balance for tangible ﬁxed assets at the end of the ﬁscal year.
c) Amounts equivalent to lease payments and depreciation
Millions of yen

Lease payments ..................................................................................................................................
Depreciation ........................................................................................................................................

¥ 800
800

d) Computation of amounts equivalent to depreciation
The computation of amounts equivalent to depreciation is made by the straight-line method, assuming that useful life equals to thelease term and the residual value equals to zero.

99

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009(2) Operating lease transactions
Amounts equivalent to future minimum lease payments at December 31, 2008
Millions of yen

Payable within one year .......................................................................................................................
Payable after one year .........................................................................................................................
Total ....................................................................................................................................................

¥1,5593,145¥4,704

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
2) Depreciation method of leased assets
As described in sub-section (2), “Depreciation andAmortization of Assets,” of section (5) “Accounting Standards.”
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
Millions of yen

Other (tools, furniture and ﬁxtures) .............

Acquisition
cost¥6,357

Accumulated
depreciation¥5,536

Thousands of U.S. dollars

Net book value¥821

Acquisition
cost$69,023

Accumulated
depreciation$60,109

Net book value$8,914

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
Payable within one year .......................................................................................................................
Payable after one year .........................................................................................................................
Total ....................................................................................................................................................

Millions of yen

Thousands of
U.S. dollars

¥ 471
349
¥ 821

$ 5,1143,789$ 8,914

Future minimum lease payments of leased property were computed based on the inclusion of their interest portion, due to the lower
ratio of the balance for future minimum lease payments to the balance for tangible ﬁxed assets at the end of the ﬁscal year.
c) Amounts equivalent to lease payments and depreciation
Lease payments ..................................................................................................................................
Depreciation ........................................................................................................................................

Millions of yen

Thousands of
U.S. dollars

¥ 655
655

$ 7,1127,112d) 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 to thelease term and the residual value equals to zero.
(2) Operating lease transactions
Future minimum lease payments for noncancellable operating lease transactions
Payable within one year .......................................................................................................................
Payable after one year .........................................................................................................................
Total ....................................................................................................................................................

100

Millions of yen

Thousands of
U.S. dollars¥1,412
3,420¥4,832$15,331
37,134$52,465

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Financial Section

Corporate
Information

18. Marketable Securities
Information regarding marketable securities for the years ended December 31, 2008 and 2009 is as follows.
Fiscal year ended December 31, 2008
(1) Other securities with fair value (as of December 31, 2008)
Millions of yen

TypeSecurities whose carrying value
exceeds their acquisition cost

Acquisition cost

Carrying value

Unrealized gain

¥ 1,391¥ 2,689¥ 1,298

1) National and local
government bonds .................

—

—

—

2) Corporate bonds ......................

—

—

—

3) Other bonds .............................

—

—

—

(1) Equity securities ............................
(2) Bonds:(3) Other ............................................

—

—

—

Sub-total ...........................................

1,391

2,689

1,298

Securities whose acquisition cost (1) Equity securities ............................
exceeds their carrying value¥12,395¥11,354¥(1,041)

1) National and local
government bonds .................

—

—

—

2) Corporate bonds ......................

—

—

—

3) Other bonds .............................

—

—

—

(2) Bonds:(3) Other ............................................

—

—

—

Sub-total ...........................................

12,395

11,354(1,041)

Total ..................................................

¥13,787¥14,043¥256

Note 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 the acquisitioncost. 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 isjudged necessary, by examining the importance and recoverability of the amount in question.

(2) Other marketable securities sold during the ﬁscal year (January 1, 2008 through December 31, 2008)
Millions of yen

Amount soldTotal gains

Total losses

¥58

¥0

¥6

(3) Carrying value of securities whose fair value is not available (as of December 31, 2008)
Millions of yen

Carrying value

Other securities:
Unlisted equity securities ....................................................................

¥1,063101

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

Fiscal year ended December 31, 2009
(1) Other securities with fair value (as of December 31, 2009)Type

Securities whosecarrying value(1) Equity securities ..............
exceeds theiracquisition cost(2) Bonds:
1) National and local
government bonds ...
2) Corporate bonds ........
3) Other bonds ...............
(3) Other ..............................
Sub-total .............................
Securities whose
acquisition cost (1) Equity securities ..............
exceeds theircarrying value(2) Bonds:
1) National and local
government bonds ...
2) Corporate bonds ........
3) Other bonds ...............
(3) Other ..............................
Sub-total .............................
Total ....................................

Millions of yen

Thousands of U.S. dollars

Acquisition cost Carrying value Unrealized gain

Acquisition cost Carrying value Unrealized gain

¥10,084¥15,330¥5,245$109,490$166,450$56,949————
10,084————
15,330

—
—
—
—
5,245

—
—
—
—
109,490————
166,450————
56,949¥ 3,624¥ 3,078¥ (545)$ 39,349$ 33,420$ (5,917)

—
—
—
—
3,624
¥13,709

—
—
—
—
3,078
¥18,408

—
—
—
—
(545)
¥4,699————39,349$148,849————
33,420$199,870————(5,917)$51,021Note 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 the acquisitioncost. 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 isjudged necessary, by examining the importance and recoverability of the amount in question.

(2) Other marketable securities sold during the ﬁscal year (January 1, 2009 through December 31, 2009)
Millions of yen

Thousands of U.S. dollars

Amount soldTotal gains

Total losses

Amount soldTotal gains

Total losses

¥62

¥4

¥15

$673

$43

$163

(3) Carrying value of securities whose fair value is not available (as of December 31, 2009)

Other securities:
Unlisted equity securities ............................

Millions of yen

Thousands of U.S. dollars

Carrying value

Carrying value¥1,084$11,770

19. Derivative Transactions
1. Matters concerning the status of transactions(1) Nature of transactions
Derivative transactions which the Yamaha Motor Group
employs are foreign exchange forward contracts, currency
option transactions, interest-rate swap transactions and othertransactions related to sales ﬁnance.
(2) Basic policy and purpose of transactions
The Yamaha Motor Group is engaged in derivative transactions
principally involving credits, debts and borrowings.
The purpose of derivative transactions is to hedge certain risks
arising from adverse ﬂuctuations in foreign currency exchange

102

rates and interest rates in business and ﬁnancing operations.
Speciﬁcally, in order to negate the effect of adverse foreignexchange rate ﬂuctuations on the collection of the Group’s
foreign currency-denominated accounts receivable, the Groupis employing foreign exchange forward contracts and currency
option transactions. Also, the Group is employing interest-rate
swap transactions in order to ﬁx a part of the interest expense
resulting from long-term debt with variable interest rates, or toconvert a part of the interest expense resulting from long-term
debt with ﬁxed interest rates into variable interest. The Group isemploying other transactions intended to promote sales while
reducing the credit risk involved in sales ﬁnance.

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations(3) Risks involved in transactions
In order to reduce credit risks, hedging transactions are
implemented with ﬁnancial institutions globally recognized forexcellence.
(4) Risk management system
Foreign exchange forward contracts and interest-rate
swaps are employed in compliance with internal rules forforward exchange contracts, in order to assure leveling of
foreign exchange contracts used to hedge foreign exchange
rate ﬂuctuation risks related to foreign currency monetary
assets. At the same time, these transactions are designed to

CSR

Financial Section

Corporate
Information

secure mobility in case of sudden foreign exchange market
ﬂuctuations. Also, the Group periodically checks forward
contract balances with ﬁnancial institutions.
For interest-rate swap transactions, the Group keeps track ofinterest receipt and payment amounts and settlement dates witheach ﬁnancial institution. Also, the Group periodically checks thecontent of these transactions with the ﬁnancial institutions.
The Group also periodically checks the contents of othertransactions with the ﬁnancial institutions.
The ﬁnance division of each company is in control of all suchderivative transactions.

2. Matters concerning the market value of transactions
Fiscal year ended December 31, 2008
No items reported.
Items to which hedge accounting is applicable are not subject to reporting.

Fiscal year ended December 31, 2009
The Company changed the accounting method for derivative transactions from hedge accounting to the market value-based method
during the ﬁscal year under review. The change was made in conjunction with a groupwide review of hedging policy and other factors.
(1) Currency related
Millions of yen

Contractual value

Contractual value
over 1 year

Market value

Unrealized gain or
loss

USD. . . . . . . . . . . . . . . .

¥27,776¥—¥28,287¥(511)

EUR. . . . . . . . . . . . . . . .

22,734—22,503231

CAD. . . . . . . . . . . . . . . .

6,054

—

6,137

(83)

GBP. . . . . . . . . . . . . . . .

4,948

—

4,936

11

PLN . . . . . . . . . . . . . . . .

1,631

—

1,663

(31)

AUD. . . . . . . . . . . . . . . .

1,612

—

1,635

(23)

HUF . . . . . . . . . . . . . . . .

428

—

434

(6)

CZK . . . . . . . . . . . . . . . .

199

—

197

2

JPY . . . . . . . . . . . . . . . .

20

—

19

0

USD. . . . . . . . . . . . . . . .

14,553—

14,59239

JPY . . . . . . . . . . . . . . . .

863

—

875

12

Total . . . . . . . . . . . . . . . . . . .

¥49,988¥—¥50,346¥(358)Classiﬁcation

Transaction
Forward exchange contract
Sell:

Non-market
transactions

Buy:

103

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009
Thousands of U.S. dollars

Classiﬁcation

Non-market
transactions

Transaction
Forward exchange contract
Sell:
USD. . . . . . . . . . . . . . . .
EUR. . . . . . . . . . . . . . . .
CAD. . . . . . . . . . . . . . . .
GBP. . . . . . . . . . . . . . . .
PLN . . . . . . . . . . . . . . . .
AUD. . . . . . . . . . . . . . . .
HUF . . . . . . . . . . . . . . . .
CZK . . . . . . . . . . . . . . . .
JPY . . . . . . . . . . . . . . . .
Buy:
USD. . . . . . . . . . . . . . . .
JPY . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . .

Contractual value

Contractual value
over 1 year

Market value

Unrealized gain or
loss$301,585
246,840
65,73353,724
17,70917,503
4,647
2,161
217

$—
—
—
—
—
—
—
—
—

$307,134
244,332
66,63453,59418,056
17,752
4,712
2,139
206

$(5,548)
2,508
(901)
119
(337)
(250)
(65)
22
0

158,0139,370$542,758——$—

158,4369,501$546,645423
130$(3,887)

Contractual value

Contractual value
over 1 year

Market value

Unrealized gain orloss¥ 29,531¥ 29,531¥(203)¥(203)

86,238¥115,770

81,557¥111,089(662)¥(866)(662)¥(866)

Contractual value

Contractual value
over 1 year

Market value

Unrealized gain orloss$ 320,641$ 320,641$(2,204)$(2,204)

936,352$1,257,003

885,527$1,206,178(7,188)$(9,403)(7,188)$(9,403)

Note Market values are computed based on forward rates at the end of the ﬁscal year.

(2) Interest-rate related
Millions of yen

Classiﬁcation

Non-market
transactions

Transaction
Interest-rate swap contract
Receipts ﬁxed,
payments ﬂoating. . . . . .
Receipts ﬂoating,payments ﬁxed . . . . . . .
Total . . . . . . . . . . . . . . . . . . .

Thousands of U.S. dollars

Classiﬁcation

Non-market
transactions

Transaction
Interest-rate swap contract
Receipts ﬁxed,
payments ﬂoating. . . . . .
Receipts ﬂoating,payments ﬁxed . . . . . . .
Total . . . . . . . . . . . . . . . . . . .

Note Market values are computed based on quotes from ﬁnancial institutions, among other sources.

(3) Other
Millions of yen

Contractual value

Contractual value
over 1 year

Market value

Unrealized gain or
loss

Other . . . . . . . . . . . . . . . . .

¥183,020¥41,572¥89¥89

Total . . . . . . . . . . . . . . . . . . .

¥183,020¥41,572¥89¥89

Contractual value

Contractual value
over 1 year

Market value

Unrealized gain or
loss

Classiﬁcation

Transaction

Non-market
transactions

Thousands of U.S. dollars

Classiﬁcation

Transaction

Non-market
transactions

Other . . . . . . . . . . . . . . . . .

$1,987,188$451,379

$966

$966

Total . . . . . . . . . . . . . . . . . . .

$1,987,188$451,379

$966

$966

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.

104

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Corporate
Information

Financial Section

20. Retirement Beneﬁt Plans
Information regarding retirement beneﬁt plans for the years ended December 31, 2008 and 2009 is as follows.
(1) Outline of retirement beneﬁt plans
The Company and certain of its domestic consolidated
subsidiaries have cash balance pension plans and lump-sum
payment plans. Certain of its other domestic consolidated
subsidiaries have deﬁned-beneﬁt plans, i.e., welfare pension

funds, tax-qualiﬁed pension plans and lump-sum payment plans.
Certain overseas consolidated subsidiaries have deﬁnedcontribution pension plans, in addition to deﬁned-beneﬁt plans.

(2) Retirement beneﬁt obligation and related items
Thousands of
U.S. dollars

Millions of yen

2008¥(147,245)
96,957(50,288)
20,521(1,362)(31,129)252¥ (31,381)

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 cost ........................................................................................
Accrued retirement beneﬁts ..............................................................................

2009¥(149,076)
97,423(51,653)
18,644(1,512)(34,521)226¥ (34,748)

2009$(1,618,632)
1,057,796(560,836)
202,432(16,417)(374,821)
2,454$ (377,286)

Note Certain of the Company’s subsidiaries adopt the simpliﬁed method to compute their retirement beneﬁt obligation.

(3) Retirement beneﬁt expenses and related items
Thousands of
U.S. dollars

Millions of yen

2008¥6,5893,676(3,059)2,164(161)¥9,209Service cost......................................................................................................
Interest cost .....................................................................................................
Expected return on plan assets ........................................................................
Amortization of actuarial gain or loss.................................................................
Amortization of prior service cost ......................................................................
Total .................................................................................................................

2009¥ 7,014
3,630(2,671)
3,423(209)¥11,1882009$ 76,156
39,414(29,001)
37,166(2,269)$121,477

Notes 1 In addition to the retirement beneﬁt expenses above, special incentives and other expenses amounting to ¥362 million at December 31, 2008, as well as
contributions into deﬁned-contribution plans amounting to ¥873 million, were registered separately in ﬁscal 2008.
2 In addition to the retirement beneﬁt expenses above, employees’ early retirement expenses amounting to ¥20,160 million ($218,893 thousand) as businessstructure improvement expenses of extraordinary losses in ﬁscal 2009, as well as incentives amounting to ¥35 million ($380 thousand) as early retirement beneﬁt
expenses of non-operating expenses were registered separately in ﬁscal 2009.
3 In addition to the retirement beneﬁt expenses above, contributions into deﬁned-contribution plans amounting to ¥689 million ($7,481 thousand) were registeredseparately in ﬁscal 2009.
4 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

Attribution method for retirement beneﬁts in the period .....................................
Discount rate ....................................................................................................
Expected rate of return on plan assets .............................................................

Amortization years of actuarial gain or loss .......................................................

Amortization years of prior service cost.............................................................

2008
Straight-line method
Mainly 2.0%
Mainly 2.5%
Mainly 10 years
Amortized in the year
following the year inwhich the gain or loss isrecognized, primarily by
the straight-line method,over a period which isshorter than the averageremaining years of serviceof the employees.
Mainly 10 years
Amortized as incurred, by
the straight-line method
over a period which isshorter than the averageremaining years of serviceof the employees.

2009
Straight-line method
Mainly 2.0%
Mainly 2.5%
Mainly 10 years
Amortized in the year
following the year inwhich the gain or loss isrecognized, primarily by
the straight-line method,over a period which isshorter than the averageremaining years of serviceof the employees.
Mainly 10 years
Amortized as incurred, by
the straight-line method
over a period which isshorter than the averageremaining years of serviceof the employees.
105Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

21. Stock Options
Information regarding stock options for the years ended December 31, 2008 and 2009 is as follows.
Fiscal year ended December 31, 2008
1. Expenses associated with stock options during ﬁscal 2008 and the category in which they were classiﬁed:
Selling, general and administrative expenses: ¥30 million.
2. Outline of stock options and changes(1) Outline of stock options
2004 Stock options

Title and number of grantees(Persons)

Directors of Yamaha Motor Co., Ltd.:

2008 Stock options

11

Directors of Yamaha Motor Co., Ltd.:

Employees of Yamaha Motor Co., Ltd.:

12

Directors of Yamaha Motor’s subsidiaries
46
and afﬁliates:
Executive Ofﬁcers of Yamaha Motor’s
subsidiaries and afﬁliates:
Number of stock options Note 1(Shares)

Grant date5

Common shares 298,000

Common shares 75,500

August 2, 2004

June 13, 2008

Condition for vesting Note 2

N.A.

Persons who have received allocationsof common stock must serve a full termthat includes the grant date (June 13,2008).

Requisite service period

N.A.

Same period as listed under condition
for vesting

Exercise period

August 2, 2006 to August 1, 2008

June 13, 2010 to June 12, 2014

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 2008 are counted and converted into a number of shares.
a) Number of stock options
Shares2004 Stock options

Before vesting:
Previous ﬁscal year-end ..........................
Granted ..................................................
Forfeited .................................................
Vested ....................................................
Outstanding ............................................
After vesting:
Previous ﬁscal year-end ..........................
Vested ....................................................
Exercised ................................................
Forfeited .................................................
Exercisable .............................................

2008 Stock options

—
—
—
—
—

—
75,500——75,50056,000—50,000
6,000
—

—
—
—
—
—

b) Price information
Yen

Exercise price .............................................
Average exercise price ...............................
Fair value at the grant date .........................
106

9

Executive Ofﬁcers of Yamaha Motor Co.,
Ltd.:
15

Executive Ofﬁcers of Yamaha Motor Co.,
Ltd.:
14

2004 Stock option

2008 Stock option¥1,7052,010—¥2,205—535

Operating
Performance

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Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

3. Technique used for valuating the fair value of stock options
Stock options granted in the ﬁscal year were valuated using the following valuation technique.
a) Valuation technique: Black-Scholes option-pricing modelb) Principal parameters used in the option-pricing model
2008 Stock option......................................................................................

34.4%

Average expected life Note 2 .................................................................................

Expected volatility

4 years

Expected dividends Note 3 ...................................................................................

¥41 per share

Note 1

Risk-free interest rate

Note 4.................................................................................

1.321%

Notes 1 Calculated based on the actual stock prices during the four years ending on the stock option grant date (June 13, 2008).
2 The average expected life could not be reasonably estimated due to insufﬁcient data. Therefore, it was estimated assuming that the options were
exercised at the mid-point of the exercise period.
3 The actual dividends on common stock for the ﬁscal year ended December 31, 2007.
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 thatwill be forfeited in the future.

Fiscal year ended December 31, 2009
1. Expenses associated with stock options during ﬁscal 2009 and the category in which they were classiﬁed:
Selling, general and administrative expenses: ¥42 million ($456 thousand).
2. Outline of stock options and changes(1) Outline of stock options
2008 Stock options

Title and number of grantees(Persons)

Directors of Yamaha Motor Co., Ltd.:2009 Stock options

9

Executive Ofﬁcers of Yamaha Motor Co.,
Ltd.:
15
Number of stock options Note 1
Grant dateCondition for vesting

Note 2Requisite service period
Exercise period(Shares)

Directors of Yamaha Motor Co., Ltd.:

7

Executive Ofﬁcers of Yamaha Motor Co.,
Ltd.:
18

Common shares 75,500

Common shares 112,000

June 13, 2008

June 16, 2009

Persons who have received allocationsof common stock must serve a full termthat includes the grant date (June 13,2008).

Persons who have received allocationsof common stock must serve a full termthat includes the grant date (June 16,2009).

Same period as listed under condition
for vesting

Same period as listed under condition
for vesting

June 13, 2010 to June 12, 2014

June 16, 2011 to June 15, 2015

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.

107Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009(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

Before vesting:
Previous ﬁscal year-end ..........................
Granted ..................................................
Forfeited .................................................
Vested ....................................................
Outstanding ............................................
After vesting:
Previous ﬁscal year-end ..........................
Vested ....................................................
Exercised ................................................
Forfeited .................................................
Exercisable .............................................

2009 Stock options

75,500——75,500——112,000——
112,000—
75,500——75,500—————b) Price information
Yen

Exercise price .............................................
Average exercise price ...............................
Fair value at the grant date .........................

U.S. dollars

2008 Stock option

2009 Stock option

2008 Stock option

2009 Stock option¥2,205—535¥1,207—380$23.94—
5.81$13.11—
4.13

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 option

Expected volatility Note 1 ......................................................................................
Average expected life

46.82%.................................................................................

4 years

Expected dividends Note 3 ...................................................................................

¥25.50 per share

Risk-free interest rate Note 4 .................................................................................

0.71%

Note 2

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
exercised at 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.

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 thatwill be forfeited in the future.

108

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

22. Deferred Tax Accounting
Information regarding deferred tax accounting at December 31, 2008 and 2009 is as follows.
(1) Principal deferred tax assets and liabilities
Thousands of
U.S. dollars

Millions of yen

2008

2009

—
8,694
11,370
2,948
9,604
3,365
8,468
3,044
7,320
725
15,411
70,955(11,010)59,944¥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

Deferred tax liabilities:
Unrealized gain on other securities ................................................................
Reserve for advanced depreciation ...............................................................
Depreciation expenses .................................................................................
Reserve for special depreciation ...................................................................
Other ............................................................................................................
Total deferred tax liabilities ................................................................................

(67)
(219)
(3,000)(26)(8,446)(11,760)

(578)
(436)
—
—
(4,821)(5,836)

Net deferred tax assets.....................................................................................
Net deferred tax liabilities ..................................................................................

50,895¥ (2,712)

8,983¥ (4,742)

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 cost ..................................................................................
Accrued bonuses .........................................................................................
Securities write-downs..................................................................................
Allowance for doubtful receivables ................................................................
Other ............................................................................................................
Gross deferred tax assets .................................................................................
Valuation allowance ..........................................................................................
Total deferred tax assets ...................................................................................

¥

2009
$

617,861
331,618
124,517106,938
101,868
73,377
68,567
23,27917,068
10,54365,092
1,540,782(1,431,357)
109,414(6,276)(4,734)——(52,345)(63,366)$

97,535(51,488)(2) Principal reasons for the difference between the statutory tax rate and the rate of income taxes after application of deferred tax accounting
Fiscal year ended December 31, 2008
Statutory tax rate ...................................................................................................................................................................
Effect of:Valuation allowance, revaluation loss on securities and impairment loss on ﬁxed assets .....................................................
Dividends received from overseas consolidated subsidiaries ..............................................................................................
Net losses at consolidated subsidiaries ..............................................................................................................................
Foreign taxes and other taxes ............................................................................................................................................
Unrecognized tax effect on unrealized gain ........................................................................................................................
Tax rate difference of overseas consolidated subsidiaries, etc. ...........................................................................................
Other, net ..........................................................................................................................................................................
Effective tax rates ..................................................................................................................................................................

2008
39.7%
22.8
19.7
13.3
11.0
8.2
(32.7)(0.5)
81.5%

Fiscal year ended December 31, 2009This note is omitted because the Company recorded loss before income taxes and minority interests in ﬁscal 2009.

109

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 200923. Segment Informationboats, utility boats and diesel engines; in the Power Products
segment: all-terrain vehicles, side-by-side vehicles, snowmobiles,
golf cars, 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 theintermediate parts for products in all business segments.

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, ﬁshing(1) Business segment information

Business segment information for the Company and its subsidiaries for the years ended December 31, 2008 and 2009 is summarized as follows.
Fiscal year ended December 31, 2008
Millions of yen

Motorcycles

Marine products Power products Other products

Total

Eliminations

Consolidated¥

Net sales:
Outside customers ...........

¥1,028,809¥238,814¥213,259¥122,997¥1,603,881—¥1,603,881

Intersegment ....................

—

—

—

122,131

122,131(122,131)—

Total .....................................

1,028,809

238,814213,259

245,128

1,726,012(122,131)

1,603,881

Operating expenses .............

995,203

232,737

33,605¥

6,077

209,694¥

1,677,630(122,131)

1,555,499¥

48,382¥0¥¥111,138¥1,163,173¥—¥1,163,173

5,090

7,888

59,606—59,606

6,702

10,243

94,391—

94,391

Operating income .................

¥

3,565

Assets ..................................

¥ 675,159¥209,836¥167,038

Depreciation .........................

36,30910,318

Capital expenditures .............

64,517

12,927

239,994¥

5,134

48,382

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 Depreciation and amortization of assets
Pursuant to an amendment to the Corporate Tax Law, the Company and its consolidated subsidiaries in Japan have applied the following accounting method fortangible ﬁxed assets acquired on and before March 31, 2007. When such assets are depreciated to 5% of their acquisition costs under the previous method, thedifference between that value (5% of the acquisition costs) and the assets’ memorandum value is depreciated by the straight-line method over ﬁve years startingfrom the following ﬁscal year, and the amount is included in depreciation expenses.
Applying the new accounting method, operating expenses in ﬁscal 2008 increased ¥775 million in the motorcycle business, ¥103 million in the marine productbusiness, ¥192 million in the power product business, and ¥249 million in the other products business, while operating income in each business segment
decreased the same amount, compared with the ﬁgures derived using the previous method.

Fiscal year ended December 31, 2009
Millions of yen

Motorcycles

Marine products Power products Other products

Total

Eliminations

Consolidated¥¥1,153,642

Net sales:
Outside customers ...........

110¥817,058¥150,113¥100,577¥ 85,893¥1,153,642—

Intersegment ....................

—

—

—

77,77077,770(77,770)—

Total .....................................

817,058

150,113

100,577

163,664

1,231,413(77,770)

1,153,642

Operating expenses .............

821,209174,387

134,345

164,050

1,293,993(77,770)

1,216,222

Operating loss ......................

¥ (4,151)¥ (24,274)¥ (33,768)¥(62,580)¥0¥Assets ..................................

¥607,311¥169,122¥115,082¥ 95,561¥ 987,077¥—¥ 987,077

Depreciation .........................

32,521

10,052

3,993

7,134

53,701—53,701

Impairment loss ....................

52,633

12,077

14,183

4,164

83,058—83,058

Capital expenditures .............

29,932

6,660

3,660

5,780

46,035—46,035(386)¥(62,580)

Operating
Performance

Message from theManagement

Special Report

CSR

Overview ofOperations

Financial Section

Corporate
Information

Thousands of U.S. dollars

Motorcycles

Marine products Power products Other products

Total

Eliminations

Consolidated

Net sales:
Outside customers ...........

$8,871,422$1,629,891$1,092,041$ 932,606$12,525,972

Intersegment ....................

—

—

—

844,408

Total .....................................

8,871,422

1,629,891

1,092,041

Operating expenses .............

8,916,493

1,893,453

1,458,686

Operating loss ......................

$(45,071)$ (263,561)$ (366,645)$

Assets ..................................

$6,594,039$1,836,287$1,249,533

Depreciation .........................

353,105

109,142

43,355

Impairment loss ....................

571,477

131,129

Capital expenditures .............

324,995

72,313—$12,525,972

844,408(844,408)—

1,777,025

13,370,391(844,408)

12,525,972

1,781,216

14,049,870(844,408)

13,205,451(4,191)$$(679,479)$

0$(679,479)$1,037,579$10,717,448$

77,459583,073—$10,717,448—

583,073

153,996

45,212

901,824—

901,824

39,73962,758499,837—

499,837

Notes 1 Business segments: Classiﬁed in the same way as for the ﬁscal year ended December 31, 2008.
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 the usefullife of certain tangible ﬁxed assets, mainly machinery and equipment, taking advantage of the change in the Corporate Tax Law (Ministerial Ordinance to Partially
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 ($3,833 thousand) in the motorcycle business, ¥560 million($6,080 thousand) in the marine product business, ¥64 million ($695 thousand) in the power product business, and ¥221 million ($2,400 thousand) in the otherproducts business, while operating loss in each business segment increased the same amount, compared with the ﬁgures derived using the previous method.

(2) Geographical segment information
The geographical segments of the Company and its subsidiaries for the years ended December 31, 2008 and 2009 are summarized as follows.
Fiscal year ended December 31, 2008
Millions of yen

Japan

North America

EuropeAsia

Other areas

Total

Eliminations

Consolidated

Outside customers .......

¥267,683¥346,506¥302,689¥519,172¥167,829¥1,603,881

Intersegment ................

531,722

36,571

5,137

65,644

3,364

642,440¥—¥1,603,881(642,440)—

Total .................................

799,405

383,077

307,827

584,816

171,194

2,246,321(642,440)

1,603,881

Operating expenses .........

822,345376,531297,365

549,483

159,0142,204,739(649,240)

1,555,499

Operating income (loss) ....

¥ (22,939)

¥

6,546

¥ 10,461¥ 35,333¥ 12,180¥

Assets ..............................

¥649,923¥225,972¥171,346¥236,688¥108,117¥1,392,047

Net sales:

41,582

¥

6,799

¥

48,382¥(228,874) ¥1,163,173

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
Pursuant to an amendment to the Corporate Tax Law, the Company and its consolidated subsidiaries in Japan have applied the following accounting method fortangible ﬁxed assets acquired on and before March 31, 2007. When such assets are depreciated to 5% of their acquisition costs under the previous method, thedifference between that value (5% of the acquisition costs) and the assets’ memorandum value is depreciated by the straight-line method over ﬁve years startingfrom the following ﬁscal year, and the amount is included in depreciation expenses.
Applying the new accounting method, operating expenses in Japan in ﬁscal 2008 increased ¥1,320 million, while operating loss increased the same amount,compared with the ﬁgures derived using the previous method.

111

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 2009

Fiscal year ended December 31, 2009
Millions of yen

Japan

North America

EuropeAsia

Other areas

Total

Outside customers .......

¥188,276¥165,528¥197,641¥482,370¥119,825¥1,153,642

Eliminations

Consolidated¥¥1,153,642

Net sales:—Intersegment ................

261,973

17,654

3,503

37,098937

321,167(321,167)—

Total .................................

450,250

183,183

201,144

519,469

120,762

1,474,810(321,167)

1,153,642

Operating expenses .........

505,833

225,451

210,293

485,912

122,8021,550,292(334,069)

1,216,222

Operating income (loss) ....

¥ (55,582)¥ (42,268)¥ (9,148)¥ 33,556¥ (2,039) ¥Assets ..............................

¥455,349¥192,638¥119,148¥273,632¥133,301(75,481)¥ 12,901¥1,174,069¥(62,580)¥(186,991) ¥ 987,077

Thousands of U.S. dollars

Japan

North America

EuropeAsia

Outside customers .......

$2,044,256$1,797,264$2,145,939$5,237,459

Other areas

Total

Eliminations

Consolidated

Net sales:$1,301,031 $12,525,972$— $12,525,972

Intersegment ................

2,844,441

191,683

38,035402,801

10,174

3,487,155(3,487,155)—

Total .................................

4,888,708

1,988,958

2,183,974

5,640,271

1,311,205

16,013,138(3,487,155)

12,525,972

Operating expenses .........

5,492,215

2,447,894

2,283,312

5,275,917

1,333,355

16,832,704(3,627,242)

13,205,451

Operating income (loss) ....

$ (603,496)$ (458,936)$(99,327)$ 364,343$

Assets ..............................

$4,944,072$2,091,618$1,293,681$2,971,031$1,447,351 $12,747,763(22,139) $(819,555)$

140,076 $(679,479)$(2,030,304) $10,717,448

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:
The same as the areas listed above for the ﬁscal year ended December 31, 2008.
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 the usefullife of certain tangible ﬁxed assets, mainly machinery and equipment, taking advantage of the change in the Corporate Tax Law (Ministerial Ordinance to Partially
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 ($13,018 thousand), while operating loss increased thesame amount, compared with the ﬁgures derived using the previous method.

(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, 2008 and 2009 are summarized as follows.
Fiscal year ended December 31, 2008
Millions of yen

North America

Overseas sales ......................................................................

¥347,977

EuropeAsia

Other areas

Total¥312,877¥549,223¥223,594¥1,433,672

Consolidated sales ................................................................
Overseas sales to net sales ...................................................

1,603,881
21.7%

19.5%

34.2%

14.0%

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:
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.

112

89.4%

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Financial Section

Corporate
Information

Fiscal year ended December 31, 2009
Millions of yen

Overseas sales .....................................................................

North America

EuropeAsia

Other areas

Total¥166,330¥201,950¥500,442¥154,481¥1,023,205
1,153,642

Consolidated sales ...............................................................
Overseas sales to net sales ..................................................

14.4%

17.5%

43.4%

13.4%

88.7%

Thousands of U.S. dollars

Overseas sales .....................................................................

North America

EuropeAsia

Other areas

Total$1,805,972$2,192,725$5,433,681$1,677,318$11,109,718
12,525,972

Consolidated sales ...............................................................
Overseas sales to net sales ..................................................

14.4%

17.5%

43,4%

13.4%

88.7%

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:
The same as the areas listed above for the ﬁscal year ended December 31, 2008.
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.

113

Notes to Consolidated Financial Statements
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2008 and 200924. Per Share Information
Information regarding per share for the years ended December 31, 2008 and 2009 is as follows.
Yen

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 12008¥1,377.81
6.47
6.47

2009
$8.07
(8.21)— 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 latent shares during the period.
Note 2 Net assets per share are calculated based on the following:Thousands of
U.S. dollars

Millions of yen

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 ...................................

2009¥249,266
36,86972
36,796
212,3972008¥428,483
33,91530
33,885394,568

2009$2,706,471
400,315
782
399,5222,306,156

Thousand shares

Number of common stocks outstanding at the end of the period, calculated
under “Net assets per share” ........................................................................................

285,849

286,373

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

2008

2009

Net income (loss) per share — basic:
Net income (loss) ........................................................................................................
Amount not attributable to common stockholders.......................................................
Net income (loss) attributable to common stock..........................................................

¥1,851—
1,851¥(216,148)—(216,148)

Average number of shares outstanding during the period............................................

286,3472009$(2,346,884)—$(2,346,884)

Thousand shares

285,942Millions of yen

Net income per share — diluted:
Adjustment for net income ..........................................................................................

—
Thousand shares

Increase in the number of common stocks .................................................................
Convertible bonds ...................................................................................................
Share warrants ........................................................................................................
Dilutive securities not calculated under “Diluted net income per share”
because they do not have dilutive effect: ......................................................................

114

3
3
0
Resolution of Board of
Directors Meeting heldon May 29, 2008: Stock
options(Total number of shares:
75.5)

Diluted net
income pershare in ﬁscal
2009 is notdescribed
herein, since
the Company
registered a net
loss per share inﬁscal 2009.

Diluted net
income pershare in ﬁscal
2009 is notdescribed
herein, since
the Company
registered a net
loss per share inﬁscal 2009.

Operating
Performance

Message from theManagement

Special Report

Overview ofOperations

CSR

Corporate
Information

Financial Section

25. Signiﬁcant Subsequent Events
Information regarding signiﬁcant subsequent events for the years ended December 31, 2008 and 2009 is as follows.
Fiscal year ended December 31, 2008
1. In order to secure long-term capital after the closing date of ﬁscal 2008, the Company signed the following borrowing contracts, withappropriate interest rate conditions based on market interest rates.
(1) Signed on March 6, 2009a) Type:Syndicated long-term debtb) Arranged by:
Mizuho Corporate Bank, Ltd.
c) Borrowed amount:¥42.3 billiond) Term:
One year and three yearse) Repayment:
Lump-sum repayment on maturityf) Security and guarantee: None
(2) Signed on March 25, 2009a) Type:Long-term debtb) Lender:
Development Bank of Japan Inc.
c) Borrowed amount:¥10.0 billiond) Term:
Five yearse) Repayment:
Seven installment repayments over ﬁve yearsf) Security and guarantee: None

2. In order to secure long-term working capital after the closing date of ﬁscal 2008, Yamaha Motor Corporation, U.S.A., the Company’s
consolidated subsidiary, signed the following borrowing contracts, with appropriate interest rate conditions based on market interest rates.
(1) Signed on March 18, 2009a) Type:Long-term debt derived from joint ﬁnancing between Japan Finance Corporation (Japan Bank forInternational Cooperation) and private ﬁnancial institutionsb) Borrowed amount:
U.S.$350 millionc) Term:Three yearsd) Repayment:
Lump-sum repayment on maturitye) Security and guarantee: None
(2) Signed on March 19, 2009a) Type:Long-term debt with insurance by Nippon Export and Investment Insurance (an Independent
Administrative Institution)b) Lender:
Sumitomo Mitsui Banking Corporationc) Borrowed amount:
U.S.$200 milliond) Term:Three yearse) Repayment:
Lump-sum repayment on maturityf) Security and guarantee: None

Fiscal year ended December 31, 2009
No related items.

115

Investor Information(As of December 31, 2009)

Yamaha Motor Co., Ltd.
Head Ofﬁce
2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-32-1103
Facsimile: +81-538-37-4252
Date of Establishment
July 1, 1955
Major Consolidated Subsidiaries
Yamaha Motorcycle Sales Japan Co., Ltd.

Yamaha Motor España S.A.

Yamaha Motor Powered Products Co., Ltd.

PT. Yamaha Indonesia Motor Manufacturing

Yamaha Motor Electronics Co., Ltd.

Thai Yamaha Motor Co., Ltd.

Yamaha Motor Corporation, U.S.A.

Yamaha Motor Vietnam Co., Ltd.

Yamaha Motor Manufacturing Corporation of America

Yamaha Motor Taiwan Co., Ltd.

Yamaha Motor Europe N.V.
Common Stock
Authorized: 900,000,000 shares
Issued: 286,507,784 shares
Number of Shareholders: 30,013
Principal Shareholders
Yamaha Corporation ............................................................................................................................... 14.75%
State Street Bank and Trust Company ..................................................................................................... 8.86
Toyota Motor Corporation ........................................................................................................................ 4.36
Mizuho Bank, Ltd. ..................................................................................................................................... 3.82
Mitsui & Co., Ltd. ...................................................................................................................................... 3.00
Japan Trustee Services Bank, Ltd. (trust account) ................................................................................... 2.45
The Shizuoka Bank, Ltd. ........................................................................................................................... 2.38
The Master Trust Bank of Japan, Ltd. (trust account) .............................................................................. 1.98
The Chase Manhattan Bank, N.A. London S.L. Omnibus account .......................................................... 1.92
The Bank of New York, JASDEC Treaty account ...................................................................................... 1.71
Annual Meeting of Shareholders
The Ordinary General Meeting of Shareholders is held in March each year in Iwata, Shizuoka, Japan.
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

116

Yamaha Motor’s Share Price and Trading Volume on the Tokyo Stock Exchange(Yen)
4,000 Share price
3,500

3500

3,000

3000

2,500

2500

2,000

2000

1,500

1500

1,000

1000

500

500

0

0

2005

150

2006

2007

2008

2009

Trading volume (million shares)
150

100

100

50

50

0
2005

2006

2007

2008

2009

0

Shareholder Composition

Foreigninvestors

40.00%

Japanesefinancial
institutions

26.62%
Other
Japanese
corporations

Japanese financial
instruments firms

0.21%

24.14%
Japanese individuals
and others

9.03%

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

117

YAMAHA MOTOR CO., LTD.
2500 SHINGAI, IWATA, SHIZUOKA, JAPANwww.yamaha-motor.co.jp

Printed in Japan on recycled paper