YAMAHA CORPORATION Interim Flash Report Non-Consolidated Basis Results for the FY March 2006 interim period ended September 30, 2005 October 31, 2005 YAMAHA CORPORATION (URL http://www.global.yamaha.com/ir/report/) Code number: 7951 Address of headquarters: 10-1, Nakazawa-cho, Hamamatsu, Shizuoka 430-8650, Japan Representative director: Shuji Ito, President and Representative Director For further information, please contact: Fumio Umeda, Accounting and Finance Manager Telephone: +81 53 460 2141 Date of the interim meeting of the Board of Directors: October 31, 2005 Interim dividend: YES Start date of interim dividend payout: December 12, 2005 Application of share unit system: Applicable (1 unit=100 shares) Company name: The accounting methods used in this report are not consistent with U.S. standard accounting methods. 1. RESULTS FOR THE FY MARCH 2006 INTERIM PERIOD (April 1, 2005 to September 30, 2005) Figures of less than ¥1 million have been omitted. (1) Non-Consolidated Operating Results Net sales Millions of yen FY March 2006 interim period (Ended September 30, 2005) FY March 2005 interim period (Ended September 30, 2004) FY March 2005 (Ended March 31, 2005) Operating income (% change from the previous interim period) ¥170,183 187,605 341,546 (9.3)% 4.3) (% change from the previous interim period) Millions of yen ¥09,437 21,359 22,638 (55.8)% 13.8 Millions of yen Notes: 1. Average number of outstanding shares during the period: FY March 2006 interim period ended September 30, 2005 FY March 2005 interim period ended September 30, 3004 FY March 2005 ended March 31, 2005 2. Changes in method of accounting: NO ¥09,150 (13,617) 264 206,327,578 shares 206,344,960 shares 206,339,798 shares 1 Millions of yen (% change from the previous interim period) ¥12,861 22,574 25,145 (43.0)% 14.2 Net income (loss) per share Net income (loss) FY March 2006 interim period (Ended September 30, 2005) FY March 2005 interim period (Ended September 30, 2004) FY March 2005 (Ended March 31, 2005) Recurring profit (% change from the previous interim period) — — Yen ¥44.35 (65.99) 0.80 YAMAHA CORPORATION—Non-Consolidated Basis (2) Dividends Interim dividends per share Dividends paid for the year Yen Yen ¥10.00 7.50 — FY March 2006 interim period (ended September 30, 2005) FY March 2005 interim period (ended September 30, 2004) FY March 2005 (ended March 31, 2005) ¥ — — 20.00 (3) Non-Consolidated Financial Data Total assets Shareholders’ equity Millions of yen Millions of yen % ¥303,065 324,895 318,071 ¥183,009 161,984 172,791 60.4 49.9 54.3 FY March 2006 interim period (as of September 30, 2005) FY March 2005 interim period (as of September 30, 2004) FY March 2005 (as of March 31, 2005) Notes: 1. Number of outstanding shares at the end of the period: FY March 2006 interim period as of September 30, 2005 FY March 2005 interim period as of September 30, 2004 FY March 2005 as of March 31, 2005 2. Number of shares of treasury stock at the end of the period: FY March 2005 interim period as of September 30, 2005 FY March 2004 interim period as of September 30, 2004 FY March 2004 as of March 31, 2005 Shareholders’ equity ratio Shareholders’ equity per share Yen ¥887.00 785.03 836.97 206,323,569 shares 206,341,215 shares 206,330,276 shares 201,057 shares 183,411 shares 194,350 shares 2. FORECAST OF RESULTS FOR FY MARCH 2006 (April 1, 2005 to March 31, 2006) FY March 2006 Year-end dividends per share Dividends per share for the year Net sales Recurring profit Net income Millions of yen Millions of yen Millions of yen Yen Yen ¥325,000 ¥19,500 ¥13,000 ¥10.00 ¥20.00 Reference: Net income per share for the fiscal year is forecast to be ¥(63.01) on a non-consolidated basis. Forecast performance is predicted by the Company based on the information available at the time of the forecast. Actual performance may differ from forecasts. For further information, please see “Forecast for FY March 2006” under “BUSINESS RESULTS AND FINANCIAL CONDITION.” 2 YAMAHA CORPORATION—Non-Consolidated Basis (References) (1) Non-Consolidated Balance Sheets Millions of yen FY March 2006 interim period FY March 2005 interim period (as of Sept. 30, 2005) (as of Sept. 30, 2004) FY March 2005 (as of Mar. 31, 2005) ASSETS Current assets: Cash and bank deposits ¥008,744 ¥ 23,476 4,866 7,696 5,645 Accounts receivable 34,917 39,483 33,314 Inventories 25,118 25,252 26,396 Deferred income taxes 11,484 10,735 11,045 2,976 2,627 3,912 (1,020) (1,036) Notes receivable Other current assets Allowance for doubtful accounts (765) Total current assets ¥024,839 87,343 108,251 104,118 22,552 22,446 23,211 7,163 7,368 7,565 50,865 51,415 51,464 8,626 8,541 8,713 89,208 89,772 90,955 103 103 103 Investment securities 34,261 32,778 27,407 Shares of affiliated companies 58,468 55,226 58,321 Investments in affiliated companies 17,441 14,946 17,441 Deferred income taxes 12,858 20,464 15,402 Fixed assets: Tangible assets Buildings Machinery and equipment Land Other tangible assets Total tangible assets Intangible assets Investments and other assets: Other assets Allowance for doubtful accounts Allowance for possible investment losses 5,150 4,427 5,486 (1,065) (1,075) (1,009) (706) — (154) Total investments and other assets 126,409 126,768 122,894 Total fixed assets 215,721 216,643 213,952 ¥303,065 ¥324,895 ¥318,071 Total assets Note: Figures of less than ¥1 million have been omitted. 3 YAMAHA CORPORATION—Non-Consolidated Basis Millions of yen FY March 2006 interim period FY March 2005 interim period (as of Sept. 30, 2005) (as of Sept. 30, 2004) FY March 2005 (as of Mar. 31, 2005) LIABILITIES Current liabilities: Notes payable 883 ¥00,728 Accounts payable 23,614 28,770 20,422 Short-term loans 2,384 1,991 1,908 300 17,038 17,038 ¥00,753 Current portion of long-term debt Accrued expenses ¥ 20,273 20,858 26,216 Corporate taxes payable 6,005 6,584 10,004 Various reserves 1,221 1,612 1,782 Other current liabilities 1,167 1,716 1,778 Total current liabilities 55,721 79,456 79,877 Long-term liabilities: Long-term debt — 300 300 Deferred income taxes on land revaluation 11,656 11,848 11,842 Accrued employees’ retirement benefits 23,106 40,069 22,697 Accrued Directors’ retirement benefits 619 648 677 28,131 29,701 29,036 821 885 848 64,335 83,453 65,402 120,056 162,910 145,279 28,534 28,534 28,534 Capital reserve 40,054 40,054 40,054 Total capital surplus 40,054 40,054 40,054 4,169 4,159 4,159 Long-term deposits received Other liabilities Total long-term liabilities Total liabilities SHAREHOLDERS’ EQUITY Common stock Capital surplus: Earned surplus: Legal reserve Retained earnings 71,620 87,212 87,212 Unappropriated earnings 14,227 (20,020) (8,116) Total earned surplus 90,007 71,351 83,255 Reserve for land revaluation difference 13,974 13,824 14,255 Net unrealized holding gains on other securities 10,684 8,437 6,926 Treasury stock, at cost (246) Total shareholders’ equity Total liabilities and shareholders’ equity Note: Figures of less than ¥1 million have been omitted. 4 (218) (235) 183,009 161,984 172,791 ¥303,065 ¥324,895 ¥318,071 YAMAHA CORPORATION—Non-Consolidated Basis (2) Non-Consolidated Statement of Operations FY March 2006 interim period (April 1, 2005– Sept. 30, 2005) FY March 2005 interim period (April 1, 2004– Sept. 30, 2004) FY March 2005 (April 1, 2004– Mar. 31, 2005) Millions of yen % Millions of yen % Millions of yen % ¥170,183 100.0 ¥187,605 100.0 ¥341,546 100.0 Cost of sales: 127,047 74.7 131,508 70.1 247,455 72.5 Gross profit 43,136 25.3 56,097 29.9 94,091 27.5 Net sales Unrealized profit 47 Total gross profit 43,183 25.3 56,226 30.0 94,309 27.6 33,746 19.8 34,867 18.6 71,670 21.0 Selling, general and administrative expenses: 129 218 Operating income 9,437 5.5 21,359 11.4 22,638 6.6 Non-operating income 3,695 2.2 1,400 0.7 3,079 0.9 270 0.1 184 0.1 573 0.1 12,861 7.6 22,574 12.0 25,145 7.4 1,463 0.8 548 0.3 23,973 7.0 843 0.5 33,044 17.6 36,094 10.6 13,482 7.9 (9,921) (5.3) 13,024 3.8 4,871 2.8 6,322 3.4 9,651 2.8 (0.3) (2,625) (1.4) 3,108 0.9 5.4 (13,617) (7.3) 264 0.1 Non-operating expenses Recurring profit Other profit Other loss Income (loss) before income taxes and minority interests Current income taxes (benefit) Deferred income taxes (benefit) (538) Net income (loss) 9,150 Retained earnings at beginning of period 4,796 Reversal of reserve for land revaluation difference 280 Interim dividends — Retained earnings (loss) at end of period ¥014,227 5 3,774 3,774 (10,176) (10,607) — ¥ (20,020) 1,547 ¥ (8,116)