Blue = CurrentRed = N/Current

‘00 Total Market STD Retail

Kids

Utilit

y

Trail

Comfort

Trail Luxury

Tourin

g

Trail

Perform

ance

Mountain

Top

Perfo

rman

c

e

40% averageN/Current Sales 19% average N/C Sales

40% averageN/C Sales 19% average N/C Sales

45%of Targeted

areais 700cc

Yamaha’s Targeted Retail Area

Target Trail Performance, Mountain & Top Performance Areas

• Serious, active customers• Healthiest product segments• Covers 70% of current sales quantity

Kids

Utilit

y

Trail

Comfort

Trail Luxury

Tourin

g

Trail

Perform

ance

Mountain

Top

Perfo

rman

c

e

40% averageN/C Sales 19% average N/C Sales

‘00 Yamaha Retail Sales Results

Yamaha Results

• Retail Sales UPUP• Market Share UPUP• Sales position UPUP

Kids

Utilit

y

Trail

Comfort

Trail Luxury

Tourin

g

Trail

Perform

ance

Mountain

Top

Perfo

rman

c

e

INDUSTRY

Industry current sales are down

Industry Current Model Retail

YAMAHA

Current Sales: Up 20%Up 20%

We haveWe havemomentum!!!momentum!!!

1999 2000

ISMA CURR YAM CURR

Ending Inventory

6,692

2,8512,082

'98 '99 '00 prj '01 prj

???

• 2000 Industry STD Retail Situation

• 2000 Yamaha STD Retail Situation

• 2001 Business Direction & Strategy

2001 Snowmobile Sales Meeting

2001 Yamaha Direction

40% averageN/C Sales 19% average N/C Sales

Target Trail Performance, Mountain & Top Performance Areas

• Serious, active customers• Healthiest product segments• Covers 70% of current sales quantity

PotentialGrowth

Kids

Utilit

y

Trail

Comfort

Trail Luxury

Tourin

g

Trail

Perform

ance

Mountain

Top

Perfo

rman

c

e

2001 Yamaha Direction

1) Focus on currentcurrent model business

2) Lower ending inventory

3) High performance image improvement

4) Improve Dealer Network

2001 Yamaha SnowmobileStrategy

- Continue to focus on our target customers needs

• Continue #1 position in product satisfaction

• Improve our already HOTHOT product

• Give the customer a strong reason to buy in the spring

- Continue to stress SX-R, Mountain Max & SRX

- Expand product focus into Trail Luxury area

Product SatisfactionCustomer Survey

Survey Sample

CategoryTrail Performance (9 Models)

500cc600cc700cc

Trail Comfort (6 Models)Fan-Cooled

600cc

Mountain (4 Models)700cc Powd. SP 700MM 700 700 RMK

ZL 600

ZR 500 EFI

ZR 700

Form. 583 DLX

MxZ 600MxZ 670 H.O.

Summit 670 X

PhazerVmax 600 DLX

Super Sport 550XLT Classic

Indy 500 XC

Indy 700 XC

SX 500SX600SX700

Model Sample by Category, Brand & ModelYamaha Polaris Arctic Cat Ski-Doo

Overall Product Satisfaction

% of Owners Very Satisfied with their Snowmobile

76%

74%

59%

54%

50% 55% 60% 65% 70% 75% 80%

Yamaha

Ski-Doo

Polaris

Arctic Cat

700cc Trail Performance Percent of Owners Very Satisfied

81%

67%

59%

32%

0% 25% 50% 75% 100%

SX 700

MxZ670H.O

700 XC

ZR 700

Yamaha’s Market Summary

Current SituationHighest in product satisfactionHighest in dealership satisfactionHighest in gaining customers from other brands

2001 Model Line Introduction

2001 Model Line-UpTop Performance:

Trail Performance:

Mountain:

Trail Luxury/Sport:

Touring:

Work:

SRX

SX 700RSX 600RSX 500R

Mountain Max 700Mountain Max 600Phazer Mountain Lite

Vmax 700 DeluxeVmax700Vmax 600 DeluxeVmax 500 DeluxeVmax 500Phazer 500 DeluxePhazer 500

Venture 700Venture 600Venture 500Venture XL

VK 540 IIIVTTF, ET, BR

Improved

Improved

Improved

Improved

ImprovedImprovedImprovedImprovedImprovedNew ModelImproved

ImprovedImprovedImprovedImproved

Improved

SRX

SRX Awards

Snowmobile of the Year

Best High PerformanceTriple-Triple

- SnowTech

Best of Class - Snowmobile

- SnowGoer

Strengths

• State-Of-The-Art engine technology

• Highest HP-to-Weight ratio

• Superior acceleration -- top speed

• Class-leading handling

SRX

2001 Improvements

•New color & graphic design

•New brake disc design

•New grip & thumb warmer temperature control

•Improved steering idler arm design

SRX

New Brake Disc Design

01 Model 00 Model

Design Advantages• Exclusive Yamaha design• Inner rotor pumps air between disc plates for increased cooling• Outer plates made of stainless steel to prevent corrosion for long pad life

Improvements• Weight reduction achieved by new ventilated inner disc design

- 0.35 pound weight reduction• New balancing method reduces disc vibration

Benefits• Reduced rotating weight for quicker acceleration• Brake design continues to provide excellent stopping power & best brake lever “feel”

Design Advantages • Industry exclusive Yamaha design• High output DC magneto design provides exceptionally high power• New Warmer improvements offers highest grip/thumb level adjustability

Benefits • Better feel from knob function• More adjustability for comfort

00Model01Model

Improvements

• ON/OFF switch for each knob

• 10-step warmer control levels

• Independently adjustable

Hand & thumb warmer levels

• New knob shape

New Independent Grip/Thumb Warmer Design

Improved Steering Idler Arm

01 Model 00 Model

Benefits • Grease fitting added to the steering idler arm bearing area increases ease of service• Longer life of steering arm

SX 700R

SX 600R

SX 500R

SX700R, SX600R, SX500R

• New color & graphic design• New high output ignition system• New headlight• New handgrip design• New grip & thumb warmer control• Improved steering idler arm design

2001 Improvements

Yamaha Rear Suspension Strength

Rear Suspension Comparison

This comparison shows the control rod action on our ProAction Plus R/S design

• Rear suspension shown at full extension, load is applied at the rear of the track•

Rear Suspension Comparison

This comparison shows the control rod action on our ProAction Plus R/S design

• Rear suspension shown at full extension, load is applied at the rear of the track•

•The control rod has coupled & both springs/shocks are working against the load

Rear Suspension Comparison

This comparison shows the control rod action on our ProAction Plus R/S design

• Rear suspension shown at full extension, load is applied at the rear of the track•

•The control rod has coupled & both springs/shocks are working against the load

•Yamaha R/S compresses completely into the tunnel, compare the amount of travel

Competition

Yamaha

New High Output Magneto System

SX700R ONLY

18 Pole DC-CDI 12 Pole CDIDesign Advantages

• 18 pole Stator design delivers 300W magneto output (vs 175W)

• DC type system, with 3600 spark

plug firing, increases spark energy at start-up by over 75%

Benefits

• Improved E/G starting• Cleaner combustion• Smoother running • Reduced E/G mis-fire at idle• Stronger output

Note: Flywheel magnet material remains Ferrite on all 700cc 3-1 engines

Design Advantages• Twin halogen bulb design with multi-faceted reflectors

- 30% brighter than competitors best headlamp design- Twin bulbs remain light even on low beam- 300W magneto power allows consistent headlight output even at idle

Benefits• Brighter, wider & longer headlight coverage

- Greater visibility- Broad headlight beam, top to bottom, increases H/L coverage on rough trail

New Dual Headlight

SX700R ONLY

New Dual HeadlightAll L/C 700cc ONLY

<--- Ours

Theirs --->

Design Advantages • Industry Exclusive Yamaha design• High output DC magneto design provides exceptionally high power• New warmer improvements offers highest grip/thumb level adjustability

Benefits • Better feel from knob function• More adjustability for comfort

00Model01Model

Improvements

• ON/OFF switch for each knob

• 10 step warmer control levels

• Independently adjustable

hand & thumb warmer levels

• New knob shape

New Independent Grip/Thumb Warmer Design

01 Model

Increased Support

Grip Space Increased .5 inch

00 Model

Design Advantages

• Longer grip area• Rubber based grip material• Heater resistance matched to magneto output• Handlebar extends to end of grip

Benefits

• Greater driver comfort - Optimum hand space - Softer grip material - Easy to reach throttle lever - Easy-on-the-hands grip pattern• Improved durability

New Grip Design

SX700R ONLY

Water temperature lamp now also used for Self Diagnostic function.

New Self Diagnostic Feature

SX700R ONLY

Design Advantages

- Warning bulb check - E/G overheat status - Water temp sensor function- Grip warmer function - Grip switch function - Thumb warmer function- Thumb switch function - Power supply voltage

Benefits • Increased ease of maintenance

01 Model 00 Model

Benefits• Grease fitting added to the steering idler arm bearing area increases ease of service• Longer life of steering arm

Improved Steering Idler Arm

All SXRs