August 23, 2021

For Immediate Release

Company Name: YAMAHA CORPORATION

President and Representative Executive Officer: Takuya Nakata

Code Number: 7951 (First Section of Tokyo Stock Exchange)

Notice Concerning the Sale of a Portion of Yamaha Corporation's Holdings of

the Shares of Yamaha Motor Co., Ltd.

Yamaha Corporation (hereinafter, the Company) announces that it has decided today to sell a portion of its holdings of the shares of Yamaha Motor Co., Ltd. (hereinafter, Yamaha Motor). The details are as follows.

1. Details of the Sale

*Representing the percentage of outstanding shares in parentheses

  1. Number of shares to be sold: 19,000,000 shares (5.43%)
  2. Number of shares held prior to the sale: 34,642,790 shares (9.89%)
  3. Number of shares held after the sale: 15,642,790 shares (4.47%)
  4. Trade date: August 24, 2021 (Scheduled)
  5. Date of transfer: August 26, 2021 (Scheduled)
  6. Recipients of the shares: Securities companies (Shares to be sold in block trades by the securities companies) Note: The percentage of outstanding shares was calculated based on the figures (with a base date of June 30, 2021)
    contained in the Quarterly Report of Yamaha Motor.

2. Company Policy Regarding Shareholdings and Reasons for Sale

It is the Company's basic policy to have cross-holdings only to the extent that this is reasonable because it contributes to the Company's sustainable growth and the enhancement of enterprise value over the medium-to- longer term.

Yamaha Motor uses the same "Yamaha" brand as the Company, and the two companies have formed a "Joint Brand Committee," prepared a "YAMAHA Brand Charter" and "Joint Brand Regulations." Along with carrying out various initiatives together, initiatives in furtherance of each other's sustainable growth are monitored appropriately through shareholdings and the assignment of directors. By building this kind of relationship of monitoring and cooperation with Yamaha Motor, the Company aims to maintain and enhance the value of the "Yamaha" brand, thereby contributing to the enhancement of the Company's enterprise value over the medium-to-longer term.

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The Company will maintain cooperative relationships with Yamaha Motor. However, on the other hand, as a result of consideration on the holding level of the company's shares from various points of view, including asset efficiency, the Company has decided to reduce its holding ratio of Yamaha Motor shares, to a level below 5% of outstanding shares, keeping in mind the standards of the possession of large-volume reporting system.

3. Overview of the Company to Sell shares

(1) Company Name

Yamaha Motor Co., Ltd.

(2)

Location

2500 Shingai, Iwata-shi,Shizuoka-ken, Japan

(3)

Representative

Yoshihiro Hidaka, President and Representative Director

(4)

Businesses

Land mobility, marine products, robotics, financial services, and others

(5)

Capital

¥86,100 million (as of June 30, 2021)

4. Use of Proceeds from the Sale of the Shares

The proceeds from the sale of these shares, less taxes etc, will be used to repurchase treasury stock.

For details, please refer to the "Notice Concerning the Decision of the Acquisition of Treasury Stock" released today.

5. Impact on Company Performance

The Yamaha Group applies International Financial Reporting Standards (IFRS) and classifies these shares as financial assets measured at fair value through other comprehensive income, and since there will be no gain on sales of investment securities from the sale of these shares in the consolidated income statements, the impact on profit for the period will be minimal.

Of note, in the non-consolidated financial statements, the Company plans to record the gain on sales of investment securities from the sale of the shares as extraordinary income. The Company will promptly disclose the gain on sales of investment securities as soon as it is confirmed.

For further information, please contact:

Yamaha Corporation

Corporate Communications Division, Media Relations Group

Contact form: https://inquiry.yamaha.com/contact/?act=55&lcl=en_WW

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Yamaha Corporation published this content on 23 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 August 2021 07:03:05 UTC.