fy2015 1st quarter business results - yamaha motor company · philippines indonesia 88 72...

FY2015 1st Quarter Business Results

Yamaha Motor Co., Ltd.May 12, 2015

● Forecast Consolidated Results

Forecast consolidated results stated herein are based on the management’s assumptions and beliefs in light ofinformation currently available, and involve risks and uncertainties. Please be advised that actual results may differsignificantly from those discussed in the forecast consolidated results. Potential risks and uncertainties include, butare not limited to, general economic conditions in Yamaha Motor’s major markets, changing consumerpreferences and currency exchange rate fluctuations.

Agenda

FY2015 1st Quarter Business Results

Ryoichi SumiokaSenior Executive Officer

Overall: Sales increases (108%) and income increases (158%)Progress in profit structure improvements targeted to achieving the annual target.

Outline:Developed Markets: Significant increases in sales and income.

Motorcycle business - return to profit through an increase of products in the higher price range Marine business - operating income ratio exceeds 20%.

Emerging Markets: Similar to previous year’s levelsintroduction of new products /cost reductions absorbed decrease in units.

All Businesses:Improvements in sales/income will continue to gain momentum from 2Q through introduction of new products.

FY2015 1st Quarter Business Results Overview

3

FY2015 1st Quarter Business Results Summary

Sales increases (108%) and income increases (158%) compared with the previous fiscal yearProgress in profit structure improvements targeted to achieving the annual target.

358.7

386.2

2014 2015(103/141) (119/134)

1,521.21,700.0

87.2

120.0

($/€)

Sales figures/ Operating

income(¥ Bil.)

2014 2015 forecast(106/140) (115/130)

1QYearlyOperating

Income Ratio9.0%6.1%5.7% 7.1%

22.1

34.9

4

225.5 243.5

71.180.7

29.929.532.132.5

3.810.0

13.4

20.31.2

0.6

3.7

3.9

0

50

100

150

200

250

300

350

400

450

500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Net Sales Operating Income

(¥ Bil.)2014 1Q(103/141)

2014 1Q(103/141)

Others

Marine

Power Products

Motorcycles

2015 1Q(119/134)

2015 1Q(119/134)($/€)

*Other: Including industrial machinery & robot products

358.7

22.1

386.234.9

Details of Net Sales and Operating Income(1Q) Motorcycles: Increases in sales and income. Developed markets returned to profit. Marine: Increases in sales and income. Operating income ratio exceeded 20%. Power Products/Others: Similar to levels the previous year for the short term

due to the result of the 2014 consumption tax increase.

5

10 11

128 108

Unit Sales(10,000 units)

139

EmergingMarkets

DevelopedMarkets 52.8 68.4

172.7175.1

Net Sales(¥ Bil.)

225.5

20141Q

20151Q

20141Q

20151Q

243.5

120

-4.1

2.7

7.9

7.3

20141Q

20151Q

Operating Income(¥ Bil.)

3.8

10.0

Developed Markets: Significant increases in sales and income (return to profitability) thanks to an increase in products in the higher price range.

Emerging Markets: Similar to levels the previous year with cost reductions/results from introduction of new products absorbing the decrease in units.

Motorcycle Business: Overall Status

6

38 27

19 24

43 57

45

Europe

NorthAmerica

Oceania

Japan

104

Unit Sales(Thousand units)

20141Q

20151Q

112

YZF-R1(March 2015)

Motorcycle Business: Developed Markets U.S./Europe: Sales increases continue thanks to recovery in total demand and the results of

introduction of new products. Japan: Increases in sales of large models continue, scooter sales in a short-term decline

(after-effect of consumption tax increase)

7

61 44

7

7

15

15

4

6

Unit Sales(10,000 units)

Thailand

VietnamMalaysia -

Philippines

Indonesia

88

72

Indonesia, Thailand, Vietnam

Platform model introduction status in major countries (2015 1st quarter unit sales results)

32%

20141Q

20151Q

Motorcycle Business: ASEAN Market Sales decreased in Indonesia due to effects of a drop in total demand. Introduction of platform models and profit structure improvements to continue

from 2Q onward.

8

121 119

41 41 Exports

Domestic

162

Unit Sales(Thousand units)

160

Total demand and Yamaha Motor sales are at similar levels to the same quarter of the previous year.

Introduction of new products to continue from 2Q (April, mass market) targeting sales increases

Saluto(April 2015)

(Mass Market)Executive/Standard

20141Q

20151Q

Motorcycle Business: Indian Market

India Product Category

9

20%

30%

40%

50%

60%

市場 ヤマハYamaha Motor

42.3 48.3

10.111.49.912.28.8

8.9

OutboardMotors

Boat

Water Vehicles

Parts etc.71.1

Net Sales(¥ Bil.)

2005 2008 2011 2014

80.7Ratio of larger outboard model sales in the U.S.

(models exceeding 100HP)(12-month moving average)

OperatingIncome Ratio 18.8% 25.2%

20141Q

20151Q

Marine Products Business

Market

Operating income ratio exceeded 20%. Profitability improvements continue thanks to increases in products in the

higher price range (shift to large outboards).

10

11.8 12.6

2.4 2.014.2

ATVROV

Net Sales(¥ Bil.)

SMB

14.6

Wolverine(March 2015)2014

1Q20151Q

Recreational Vehicles Business ROV: Introduction of sports products to continue from 2Q (March, first model)

targeting sales increases. SMB: Decrease due to foreign exchange effects(Russian Ruble).

11

1Q

2014 Results 2015 Results compared with the previous year

Motorcycles 225.5 243.5 18.0Marine 71.1 80.7 9.5Power Products 29.9 29.5 -0.4Others 32.1 32.5 0.3

TOTAL 358.7 386.2 27.5

Motorcycles 3.8 10.0 6.2Marine 13.4 20.3 7.0Power Products 1.2 0.6 -0.6Others 3.7 3.9 0.2

TOTAL 22.1 34.9 12.8

Motorcycles 1.7 4.1 2.4Marine 18.8 25.2 6.4Power Products 4.0 2.1 -1.9Others 11.5 12.0 0.5

TOTAL 6.1 9.0 2.9

Net Sales (¥ Bil.)

Operating Income (¥ Bil.)

Operating Income Ratio (%)

Details of Net Sales and Operating Income (1Q)

13

38 2719 24

43 57

1,153 966

135122

1,3891,196

20141Q

20151Q

12.1 11.112.8 18.1

28.039.2

139.3142.2

33.432.9

225.5243.5

20141Q

20151Q

Net Sales(¥ Bil.)

Unit Sales(Thousand units)

Asia

EuropeNorth America

Japan

Others

(119/134)(103/141)($/€)

Motorcycle Sales Units and Net Sales (1Q)

14

19.7 19.6

0.3 0.51.6 1.8

5.5 5.2

5.1 5.4

20141Q

20151Q

7.2 6.4

37.847.3

11.4

11.93.2

3.811.5

11.2

20141Q

20151Q

4.5 2.8

16.7 18.5

4.6 4.71.8 1.42.2 2.1

20141Q

20151Q

*Other: Including industrial machinery & robot products

AsiaEurope

NorthAmerica

Japan

Others

Marine Power Products Others

(¥ Bil.)

71.1

80.7 29.9 29.5 32.1 32.5

(103/141) (119/134)($/€)

Net Sales of Marine, Power Products, and Others (1Q)

15

1Q (3-months)(¥ Bil.) US$ EURO Others Total

Currency Rate Impact on HQ Imports and Exports 6.8 -1.4 -1.0 4.4Impact on Procurement Cost(Overseas Subsidiaries)

0 0 -1.4 -1.4Impact on Gross Income(Overseas Subsidiaries)

2.2 -0.5 2.3 4.0Impact on SG&A Expenses(Overseas Subsidiaries)

-1.7 0.3 -1.9 -3.3

Impact on Operating Income 7.3 -1.6 -2.0 3.7

Foreign Exchange SensitivityAmount of impact on the operating income per yen of foreign exchange fluctuations

US$0.4 Bil.

Yen

EURO0.2 Bil.

Yen

Impact of Foreign Exchange vs. Last Year

16

2014 1QResults

2015 1QResults

Capital Expenditure 11.4 14.2

Depreciation Expenses 8.8 10.6Research and Development Expenses 20.3 21.6

Interest-bearing Debt 410.4 431.4

(of which, sales finance) 171.6 214.1

(¥ Bil.)

Capital Expenditure, Depreciation Expenses,R&D Expenses, Interest-bearing Debt

17

22.111.6

4.23.7 -0.2 -1.3

-1.9 -3.3 34.9Cost reduction

Increase inSG&A expensesEffect of

sales increase

Impact of foreign exchange

Impact ofchanges inraw materialprices

Increase in depreciation expenses

Increase in R&D expenses

2014($/€: 103/141)

2015(119/134)

(¥ Bil.)

Causes of Changes in Operating Income vs. Last Year (1Q)

18