Business Results for First Nine Months Fiscal Year Ended December 31, 2018 Business Information Session New LMW: NIKEN Yamaha Motor Co., Ltd. October 31, 2018 (Ticker symbol: 7272)
Agenda FY2018 Business Results for First Nine Months Director - Tatsumi Okawa Forecast Consolidated Results Forecast consolidated results stated herein are based on the management's assumptions and beliefs in light of information currently available and involve risks and uncertainties. Please be advised that actual results may differ significantly from those discussed in the Forecast Consolidated Results. Potential risks and uncertainties include, but are not limited to, general economic conditions in Yamaha Motor s major markets, changing consumer preferences and currency exchange rate fluctuations. 2
Business Results: 2018 () Net sales: Increased thanks to strong performance in the marine business, the power products business, and the emerging markets motorcycle business. Operating income: Decreased due to the struggling developed markets motorcycle business, foreign exchange effects, and increased raw material costs. 2017 2018 Vs. Previous Year Net Sales 1,250.7 1,262.0 101% Operating Income 120.8 115.5 96% Operating Income Ratio 9.7% 9.2% -0.5pts. Ordinary Income 124.1 113.4 91% Net Income* 89.2 81.8 92% ($ ) 112 / 125 110 / 131 ($/IDR BR$) 13,167 / 3.2 14,213 / 3.6 *Net Income Attributed to Owners of Parents 3
Factors Impacting Operating Income () Operating Income Effect of Sales Increase 120.8 7.8 Profitability Improvements 7.7 Raw Material Price Fluctuations Increase in SG&A Expenses -4.4-9.3 Development Cost Increases including Growth Strategy Expenses -2.9 Exchange Effects -4.2 115.5 89.2 81.8 Net Income Attributed to Owners of Parents 2017 ($/ : 112/125) 2018 (110/131) 4
Business Results: 2018 (Annual Forecast) Forecast business results have been revised to include the recent sales situation and foreign exchange environment. The forecast dividend is unchanged. 2017 Results 2018 Previous Forecast 2018 New Forecast Vs. Previous Year Net Sales 1,670.1 1,700.0 1,650.0 99% Operating Income 149.8 150.0 143.0 95% Operating Income Ratio 9.0% 8.8% 8.7% -0.3pts. Ordinary Income 154.8 155.0 140.0 90% Net Income * 101.6 103.0 95.0 94% Cash Dividend 88 90 90 ($ ) 112 / 127 105 / 130 ($/IDR BR$) 13,400 / 3.2 13,300 / 3.3 (Annual) 110 / 131 (4Q) 110 / 130 (Annual) 14,300 / 3.7 (4Q) 15,200 / 3.7 *Net Income Attributed to Owners of Parents 5
Factors Impacting Operating Income (Annual Forecast) Effect of Sales Increase 149.8 9.6 Profitability Improvements 11.2 Raw Material Price Fluctuations Increase in SG&A Expenses -7.5-10.3 Development Cost Increases including Growth Strategy Expenses -4.4 Exchange Effects -5.4 143.0 101.6 95.0 Net Income Attributed to Owners of Parents 2017 ($/ : 112/127) 2018 (110/131) 6
Business Results: Details of Net Sales and Operating Income () 16,000 Net Sales Operating Income 14,000 1,250.7 1,262.0 12,000 1,132.8 111.3 111.4 Other 91.8 106.5 1,121 10,000 111.3 250.8 268.3 8,000 Marine 230.5 Power Products 7.8% 9.7% 9.2% 120.8 115.5 16.5 16.3 1.3 88.9 9.4 5.0 48.7 53.1 1600 1400 1200 0.8 1000 800 6,000 Emerging Markets Motorcycle Business 4,000 2,000 Developed Markets Motorcycle Business 501.8 581.2 585.5 197.5 200.9 184.7 0 2016 2017 2018 ($/ : 109/121) (112/125) (110/131) (IDR/BR$: 13,273/3.5) (13,167/3.2) (14,213/3.6) 600 45.9 400 54.0 55.9 200 32.5 0.5 0-3.9-10.6 2016 2017 2018 * Other Products: Includes industrial machinery & robot products 7
Business Results: 2018 () ASEAN Motorcycle Business Indonesian market recovery is becoming clear. Favorable sales continue in the Philippines. Operating Income Ratio 8.3% 9.2% 8.4% Developed Markets Motorcycle Business Structural reform are being progressed. Concentrating development of more competitive model. Operating Income Ratio -2.0% 0.2% -5.7% Net Sales The Philippines Thailand Vietnam 345.1 31.9 46.3 78.0 413.3 436.5 41.2 58.5 65.5 66.7 91.4 73.3 Net Sales Oceania Japan North America 197.5 200.9 10.7 36.4 35.9 43.0 39.5 9.9 184.7 31.1 37.4 9.4 Indonesia 188.9 215.0 238.1 Europe 107.4 115.6 106.8 2016 2017 2018 2016 2017 2018 ($/IDR: 16 13,273) 年 17 (13,167) 年 18 (14,213) 年 ($/ : 109/121) 16 年 (112/125) 17 年 18 (110/131) 年 8
Business Results: 2018 () Marine Outboard motor production increase well under way. Favorable sales of water vehicles and boats continue. Power Products Sales of golf cars and multi-purpose engines are healthy. ROV competition is intensifying. Operating Income Ratio Net Sales 19.9% 19.4% 19.8% 250.8 268.3 230.5 Operating Income Ratio Net Sales 4.5% 1.2% 0.7% 111.3 106.5 112.1 Boats/ WV etc. 98.1 113.6 125.3 Others 47.9 51.4 59.1 Outboard Motors 132.4 137.2 143.0 RV 63.4 55.1 53.0 2016 2017 2018 年年年 ($/ : 109/121) (112/125) (110/131) 2016 年 2017 年 2018 年 ($/ : 109/121) (112/125) (110/131) 9
Business Results: 2018 () Industrial Machinery & Robot Products Favorable sales of products such as surface mounters for automotive applications continue. Closely monitoring trends in the robot market. Other Products Electrically power assisted bicycles: Market competition is intensifying. Aiming to expand sales with the YPJ Series. Operating Income Ratio 16.4% 23.5% 24.6% Net Sales Operating Income Ratio Net Sales 6.5% 8.0% 5.9% 34.2 49.5 51.8 57.5 61.8 59.6 2016 2017 2018 16 年 17 年 18 年 2016 2017 2018 年年年 10
Motorcycle Sales Units/Net Sales () Unit Sales (Thousand units) 782.0 Net Sales 770.3 399.5 401.5 98.3 98.2 Others 32.6 34.8 492.8 496.8 Asia 336.6 340.3 Europe North America Japan 17.0 14.5 5.2 4.9 8.1 7.1 2017 2018 115.6 106.8 39.5 37.4 35.9 31.1 2017 2018 ($/ ) (112/125) (110/131) 12
Net Sales of Marine/Power Products () Others Asia Europe 250.8 28.3 13.0 35.9 Marine 268.3 29.1 14.3 42.4 Power Products 112.1 106.5 7.7 8.2 3.6 9.9 9.7 5.2 North America 152.5 160.7 74.9 78.0 Japan 21.1 21.7 2017 2018 10.0 11.3 2017 2018 ($/ ) (112/125) (110/131) 13
Net Sales of IM/Others () Others Asia 49.5 25.2 0.8 IM 51.8 23.3 1.6 61.8 3.5 4.0 8.4 Others 0.8 59.6 3.5 4.9 6.9 1.3 Europe North America 4.2 2.7 5.8 2.6 45.0 42.9 Japan 16.7 18.4 2017 2018 2017 2018 ($/ ) (112/125) (110/131) 14
Capital Expenditure / Depreciation and Amortization Expenses / Research and Development Expenses / Interest-bearing Debt 2017 Results 2018 Results Capital Expenditure 35.8 31.6 Depreciation and Amortization Expenses 33.1 34.4 Research and Development Expenses 71.8 74.6 Interest-bearing Debt 328.0 304.8 (Includes Sales Financing) 230.3 255.8 15
Effects of Foreign Exchange (Compared to Previous Year) 2018 Results (9 months) US$ Euro Others Total Foreign Exchange Effects on HQ Imports and Exports Foreign Exchange Effects on Purchases (Overseas Subsidiaries) Conversion Effects on Gross Income (Overseas Subsidiaries) Conversion Effects on SG&A Expenses (Overseas Subsidiaries) Foreign Exchange Effects on Operating Income -2.6 3.7-1.0 0.1 0 0-1.3-1.3-1.2 1.8-7.1-6.5 0.8-1.2 3.8 3.5-3.0 4.3-5.5-4.2 Foreign Exchange Sensitivity Amount of effect on operating income per yen of foreign exchange fluctuations US$ 1.2 Bil. Euro 0.5 Bil. 16