I am Motofumi Shitara of Yamaha Motor Corporation. Thank you very much for attending our company's presentation.

I would also like to thank you for your understanding and cooperation to our daily business operations. I would now like to go into the presentation of our business results.

First, starting with some key points, please refer to page 4. The 2025 results was down in terms of revenue and profit against the previous year.

Against the revised forecast, which we released in the second quarter announcement, it was a reduction in revenue, but increase in profit. Operating income is moving as scheduled, but as a result of reviewing our recoverability of deferred tax assets, our net income resulted lower than the revised forecast.

Looking at the environment surrounding our company, the tariffs has pushed up costs, and especially the U.S. business environment has changed drastically, and therefore in 2025 and onward, we have started our company-wide cost structure reform.

2026, we believe that the tariffs will impact throughout the year, therefore, through cost structure reform and price strategy, we will boost profitability. In addition to this, in our core business, we will increase our sales unit, and also with the improvement of profitability in strategic businesses, we are looking at a revenue of ¥2.7 trillion, operating income of ¥180 billion, an increase in revenue and profit.

In terms of shareholders' return, 2025 result was, we had a reduction in net income, therefore we have an annual dividend of ¥35 in our plans. 2026, we are expecting an increase in profit, therefore we are looking at an annual dividend of ¥50 per share, and with improved cash flow, we are hoping to have flexible acquisition of treasury stocks as well.

Looking at the unit sales and inventory, please refer to page 5. Left side, major product and total demand and unit sales is being compared against the previous year results.

Motorcycle: throughout the year in Indonesia, Philippines, and Thailand, we have seen sound shipments. In Vietnam, Hanoi City announced ICE regulations, and because of that, demand was slightly down from last year.

In October, we were hit by a flood, the factory was inundated, and therefore shipment was down. However, we are working toward recovery, and now, except for some products, production has normalized.

Outboard motors: continuing onward from the third quarter in North America, small and mid-range models are moving steadily, and shipments have gone up against the previous year. The right-hand graph looks at the market inventory versus the appropriate level.

In India, last year in October, because the GST rates were lowered, retail has increased, and temporarily the inventory level has gone down. By spring, we are preparing so that production will normalize by then.

Indonesia, Vietnam, Philippines: we are below the appropriate level of inventory. However, we will be closely monitoring the supply and demand situation so that the inventory could be at an appropriate level.

Looking at the business results, please refer to page 6. 2025 results: revenue, 98% against the previous year at ¥2,534.2 billion; operating income, 70% versus the previous year, ¥126.4 billion; operating income ratio, -2 points from the previous year at 5%; net income attributable to owner of parent, 15% against the previous year at ¥16.1 billion; EPS, 15% versus the previous year, ¥16.59.

The exchange rates used were ¥150 against the dollar, ¥169 against the euro. Looking at some factors impacting our operating income, please refer to page 7.

As you can see, sales effects -¥3.5 billion. Looking at the breakdown: scale effects -¥7.3 billion, financial services +¥1.6 billion, price increase and rebate which comprises pricing +¥43.3 billion, others -¥41.1 billion.

Net cost impact -¥9.2 billion. Looking at the breakdown: cost reduction +¥20.9 billion, cost increases -¥30.1 billion.

R&D expenses have increased, -¥24.7 billion. SG&A increase -¥18.6 billion.

Equity in earnings or losses of affiliates and land sale of Taiwan subsidiary +¥20.3 billion. Forex impact -¥6.1 billion.

Tariff effects -¥13.4 billion. Next, the environmental changes in 2025 and initiatives to be taken in 2026.

Please refer to page 8. The U.S.

tax-related cost increase, as well as the stagnating market, has caused major changes in U.S. business profitability structure from assumptions used for the mid-term plan.

U.S. tariffs in 2025 had an impact of ¥17.1 billion.

In 2026, we are looking at ¥54.3 billion profit is being pushed down, and the economy is quite unclear, demand is weak, and the U.S. market sales is trending below our initial assumptions.

Based on this, as I said at the outset, in 2025, we have started a cross-business cost structure reform. 2026, through these reforms, we will secure profitability, and we will establish a revenue structure that, for the mid to long-term, that is not reliant on topline growth, and we will establish a strong company resilient to change.

Then on the right-hand side, you can see some of the specific measures to be taken. Just like last year, market and competitors will be closely observed so that we can have appropriate price pass-through.

In order to reduce costs, R&D, we will prioritize investment effects and postpone or halt model development appropriately. Also in the U.S., we have water vehicle, RV, and LSM assembly factories, and we will try to reduce manufacturing cost by thoroughly reviewing our procurement costs.

At the same time, the IT system introduction may be postponed to further reduce costs. Also, based on the changes in production and sales unit, we will adjust staffing level at the U.S.

sites in order to reduce fixed costs, and also we will try to improve cash flow through improved asset efficiency. With the effect of this, we are looking at ¥37 billion in 2026.

Also, OLV business in deficit, we will make a decision about making further investments or not in 2026 according to our mid-term business plan, but concerning the current situation, we will accelerate our review and we will be able to explain our direction in August. Based on these initiatives, this is our forecast for 2026.

Please refer to page 9. For core businesses, increase in sales as well as price strategy and the cost structural reform, we will see an increase year-on-year in revenue and profit.

Revenue, 107% against the previous year at ¥2,700 billion; operating income, 142% against the previous year, ¥180 billion; operating income rate, +1.7 points against the previous year, 6.7%; net profit attributable to owner of parent, 621% against the previous year at ¥100 billion; EPS, 621% versus the previous year at ¥103.05. The exchange rates used is 155 against the dollar and 175 against the euro.

Some factors affecting the operating income in 2026, please refer to page 10. Sales effects +¥108.1 billion, and that's sales effect +¥39.3 billion, financial services +¥8.4 billion, pricing which is price increase and rebate +¥24.2 billion, others ¥36.2 billion.

Net cost impact -¥14 billion. The breakdown is cost reduction +¥16.9 billion, cost increase -¥30.9 billion.

R&D expenses will increase, -¥10.5 billion. SG&A increase -¥4.1 billion.

Equity in earnings and losses of affiliates +¥1 billion. Forex impact +¥10.3 billion.

Tariffs impact -¥37.2 billion is expected. Next, looking at shareholder returns, please refer to page 11.

As announced on February 2nd, considering our business performance and financial soundness, in 2025, year-end dividend is of ¥10, annual dividend of ¥35 is in the plan. 2026 dividend: based on our plan to increase profit, the annual dividend of ¥50 per share is being planned.

Also, improvement of cash flow will be done, and we will also aim for flexible acquisition of treasury stocks. Based on stable and continuous dividend policy, we are aiming for a total payout ratio of 40%.

We will continue to increase our corporate value, and also return to shareholders. That is all from myself.

Thank you very much. Mitsuru Hashimoto (Executive Officer and Chief General Manager of Corporate Planning and Finance Center):

My name is Hashimoto. I'll be presenting information by business segment.

This is the revenue and operating income by business segment. Please see page 13.

In the motorcycle and financial services business segments, revenue was up and profit down. In SPV and robotics business segments, although revenue was down, operating losses were a lot less than prior year.

Across marine products, OLC, and other products business segments, revenue and profit were down. Next, the 2026 revenue and operating income forecast by business segment.

Please see page 14. From 2026, some segments have been changed.

Up to now, robotics had included the UMS business segment. However, this has been transferred to other products.

The FY25 numbers on this slide have been retrospectively amended in line with this change. For the 2026 forecast, motorcycle, marine, robotics, and financial services expect an increase in revenue and in income.

For SPV and OLV, revenue up and operating losses reduced. For other products, revenue down and operating losses reduced is our forecast.

Now, each business segment in detail. Please see page 15.

First, the core business segment of motorcycles. The graph on the left compares, in the upper half, the total demand in main regions and Yamaha Motor's prior-year shipments.

The lower half compares the 2026 forecast against prior year. The graph on the right shows the revenues by region.

In 2025, although in Vietnam the production and shipment stoppage had an impact, in Indonesia and the Philippines, the shipments increased, and revenue was the same level as prior year. In terms of operating income, rising procurement costs and increase in SG&A costs such as R&D and personnel costs and the impact of U.S.

tariffs resulted in a profit decrease. In 2026, in the Philippines and India, our pursuit of the premium strategy to expand shipments and the recovery in Vietnam means we have planned for an increase in both revenue and profit.

I'd like to introduce some new motorcycle products. Please see page 16.

In November 2025, we announced in India the Yamaha Motor's developed electric sports scooter, the AEROX E, and in a collaborative development with Indian motorcycle startup River, the EC-06. The electric sports scooter AEROX E, as part of our mid-term plan, is one of our high value-added models in line with our premium strategy for ASEAN and emerging countries.

In the field of EV, Yamaha Motor is aiming to build a premium image in the Indian market. The electronic scooter EC-06 is based on River's production model and has been developed for a broader customer range.

With these products as the core, we will achieve our environmental targets and promote the capturing of EV demand. Next, the core business segment of marine products.

Please see page 17. In 2025, in our main market, the United States, with the impact of high prices and interest rates, the total demand was sluggish.

In terms of our outboard motors, the small to medium brake horsepower mainly saw a growth in sales exceeding prior year. For outboard motors of 300 brake horsepower or more, the U.S.

boat building demand was flat and sales reduced. For water vehicles, due to total demand reduction and increase in market inventory, the sales volume reduced.

As a result, the marine products business segment as a whole saw a reduction in revenue. In terms of operating income, with the impact of U.S.

tariffs and reduced water vehicle sales volumes and cost increases through higher cost of sales and R&D cost rises, profit was reduced. For 2026, in terms of demand in the U.S., our main market, the reducing trend has bottomed out and is expected to remain flat.

Growth is expected to continue in small to medium outboard motors, and by aiming to expand sales of large outboard motors leveraging new products for improved maneuverability, our forecast is a rise in revenue and profit. Next, robotics.

Please see page 18. In 2025, although revenue was at the same level as prior year, implementation of sales measures with profitability in mind resulted in an improved marginal profitability for mounters, and in addition, reduced manufacturing expenses contributed to an increase in profit.

For 2026, as we continue a sales policy that views profit as critical, our forecast includes expanded generative AI-related demand and recovering demand for AI applications, and we expect an increase in revenue and profit. Next, financial services.

In 2025, although revenue rose with an increase in retail receivables, the interest rate swap valuation gains in the prior period translated into losses in this period with great impact, and profit was reduced. In 2026, in addition to increased retail receivables, the forecast is for a rise in profit due to improved gross profitability.

Finally, SPV and OLV business segments. Please see page 19.

First, SPV: although domestic power-assisted bicycles have sold well, we've withdrawn from the overseas completed units business, and therefore the overall sales volume was down, as was revenue. On the other hand, the inventory writedown and fixed assets impairment carried out last year have had an impact, and the operating losses have been reduced.

In 2026, sales both domestically and overseas will grow, with a forecast of increased revenue and profit. In Germany, from August last year, YMESG has been in operation, and to create synergy, we will progress with building an organization structure.

In OLV, for RV and LSM, there were reduced sales volume and increased R&D and SG&A costs, and by booking the fixed assets impairment that we had built in as a risk, revenue and profit were down. As was explained earlier, the cost structure review as well as the improved asset efficiencies will give a 2026 forecast of reduced operating losses.

That ends the FY2025 earnings presentation. Thank you for your attention.