Yamaha 2013 Annual Report Download - page 9

Please give us an overview of Yamaha Motor’s business results for fiscal
2013, the first year under the Medium-Term Management Plan.
We achieved sales growth in all businesses.
Looking at the global economy in 2013, the United States posted a significant recovery and there were major
expectations for a recovery in Japan as well. However, European economies remained sluggish and growth appeared to
stall in emerging markets in Asia and Central and South America. Against this backdrop, the Yamaha Motor Group made
a comprehensive effort to achieve sustainable growth in terms of business scale, financial strength, and corporate
strength as outlined in the Medium-Term Management Plan (MTP), which sets fiscal 2015 Group targets of ¥1,600.0
billion in net sales and ¥80.0 billion in operating income (for an operating income margin of 5%).
In fiscal 2013, the Group recorded a 16.8% increase in net sales, to ¥1,410.5 billion. Net sales rose in all business
segments, on increased unit sales of motorcycles in Indonesia and India and outboard motors in North America, coupled
with the impact of yen depreciation.
Operating income totaled ¥55.1 billion, a ¥36.5 billion increase from fiscal 2012. This reflected improved earnings
in the marine products business and cost reductions in the motorcycle business in emerging markets, as well as yen
depreciation. Ordinary income and net income rose significantly, with a ¥32.8 billion increase in ordinary income, to
¥60.1 billion, and a ¥36.6 billion increase in net income, to ¥44.1 billion, which included the additional recording of
deferred tax assets at overseas subsidiaries.
Our financial position remained stable, with a net debt-equity (D/E) ratio of 0.7 times, unchanged from the end of
the previous year, and a 1.5 percentage point improvement in the shareholders’ equity ratio, to 33.5%.
What initiatives are the motorcycle business pursuing in developed
markets?
We are working to further enhance our product lineup.
Yamaha’s motorcycle shipments in developed markets had been declining
since the global financial crisis, but turned around in 2013 to a 6% increase
from the previous year, to 370 thousand units. New product launches included
the new 950cc BOLT cruiser in North America, the new 850cc, three-cylinder
MT-09 sports bike in Europe, and the Majesty S, our first 155cc sports
commuter in Japan, and all three of these models recorded solid sales.
In addition to this solid progress under the MTP, which emphasizes new
product development and enhanced product strength, there was a positive
effect from yen depreciation, and I am pleased with our improved earnings.
Looking ahead to 2014, we expect the size of the market to be flat with
2013 in Europe, and to grow in Japan and North America, and are forecasting
an 11% increase in Yamaha Motor’s shipments, to 410 thousand units.
We will strengthen our product lineup in 2014 by continuing to
proactively release new models like the MT-07 from 2013, highlighting their
high performance, light weight, low fuel consumption, and superior design.
INTERVIEW WITH THE PRESIDENT
Q1 Q2
Net Sales
2012
($80/€103) ($98/€130) ($100/€135)
2014
Forecast
2013
(Billion ¥) (Billion ¥)
Operating Income
Motorcycles
Marine products
Power products
Other
2013: Operating income: motorcycles bottoming out, large improvements in marine products
2014: Increases in sales and income for all business segments
798.7
196.3
103.6
109.1
1,207.7
928.2
243.4
126.7
112.2
1,410.5
995.0
250.0
140.0
115.0
1,500.0
18.6
55.1
75.0
2012
($80/€103) ($98/€130) ($100/€135)
2014
Forecast
2013
10.8
7.4
0.5
-0.2
8.4
31.8
5.3
9.7
20.0
36.0
8.0
11.0
Unit Sales
2012 2014
Forecast
2013
(Thousand units)
Japan
North
America
Europe
Oceania
2013: Yamaha sales at 370,000 units/106%. Decline bottoms out, recovery in progress
Japan: 115%; North America: 99% (first half); 118% (second half)
Europe: 89% (first half); 113% (second half)
2014: Overall demand increases in Japan and North America. In Europe, figures are similar
to last year. Yamaha forecasts sales of 410,000 units/111%
Main Initiatives (2014)
 High-performance, lightweight, fuel-efficient
+ design concept
 Expansion of MT and other categories
94
71
165
17
347
109
76
162
19
366
108
82
198
20
20
408
Sales and Operating Income by Business Segment Motorcycle Business: Developed Markets
MT-07 MT-09
Yamaha Motor Co., Ltd. ⎢ Annual Report 2013 Yamaha Motor Co., Ltd. ⎢ Annual Report 2013
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