Ladies and gentlemen, thank you all for taking time out of your busy schedules to attend Yamaha Motor Company's briefing on the first half earnings for the fiscal year ending December 2025. I am Kura Bett from the Corporate Communications Department, and I'm honored to serve as your emcee today. Before starting the presentation, allow me to introduce today's participants: Motofumi Shitara, President, CEO, and Representative Director of Yamaha Motor , and Mitsuru Hashimoto, Executive Officer of Yamaha Motor Company. Today, an overview of our financial results will be presented, followed by details of each business segment. After this session, a separate Q&A session will be held via Zoom for the press, analysts, and investors. Presentation material is also available on Yamaha Motor Company's corporate site. Without further ado, let's start the program.
This is Shitada of Yamaha Motor Company.
Thank you very much for your attendance today, despite your very busy schedule. I would also like to express our sincere gratitude for your continued understanding and generous support of our business activities. Now, let me start my presentation, beginning with an outline of the business results. First, some key points of our earnings under review. Please return to page 4. During the first half, the impact of additional U.S. tariffs was limited, but our first-half results showed decreases in both revenue and profit due to lower unit sales and increases in R&D, as well as SG&A expenses. While motorcycle sales were slightly lower than last year, they grew in our key Southeast Asia markets. Our outboard motor market share in the U.S. also expanded, strengthening the presence of our core business despite challenging market conditions.
We will continue to select and focus on key areas, promoting strategic investments for mid-to-long-term growth. While there was some impact on profitability during the period under review, we view this as a critical challenge to sharpen our competitiveness and achieve sustainable growth going forward. Against this backdrop, we are revising our full-year earnings forecast downward. Sales will remain on par with last year, but operating income is projected to decrease due to anticipated risk factors, including additional U.S. tariffs. Given the prolonged impact of tariffs and other risk factors, we will review our conventional approach to cost management. By upgrading our company-wide management framework and further selecting and focusing our activities, we will work to quickly improve our profit structure. In the medium to long term, we aim to evolve into a more robust company and maximize corporate value.
Regarding shareholder returns, the dividend planned at the beginning of the fiscal year will remain unchanged. Next, on the unit sales and inventory levels, please turn to page 5. The table on the left compares total demand and unit sales by major product with last year's results. Our motorcycles performed well in key markets such as the Philippines and Indonesia. In the first quarter, production and shipments were temporarily suspended in Vietnam but recovered from the second quarter onward. In Brazil, sales volume fell below last year's levels as a reaction to the lifting of supply constraints caused by last year's low water levels in the Amazon River. Our sales are progressing in line with initial expectations. Market demand for outboard motors remains sluggish, but last-minute demand ahead of U.S. price provisions significantly boosted our shipments from last year, particularly for small and medium horsepower models.
The graph on the right compares our market inventory with the desired level. While inventory levels vary across different regions and products, they have now generally settled at appropriate levels. In Brazil, inventory remained low until the first quarter, but is now at sufficient levels, and we have a system in place to respond to strong demand. Meanwhile, in regions with strong demand, such as Vietnam and Thailand, inventory levels remain below the appropriate level. We will continue to monitor supply and demand trends in each region, striving to maintain appropriate inventory levels and ensure a stable supply system. Let's turn to business results during the first half. Please turn to page 6. For the first half, revenue was JPY 1,277.8 billion, 95% of the previous year. Operating income was JPY 84.1 billion, 55% of the previous year. Operating income ratio was 6.6%, down 4.8 points from the previous year.
Profit for the period attributable to owners of the parent was JPY 53.1 billion, 47% of the previous year, and EPS was JPY 54.61, 48% of the previous year. The prevailing exchange rates were JPY 148 to the U.S. dollar and JPY 162 to the euro.
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Next, on the factors behind operating income fluctuations, please turn to page 7. The sales effect had a negative impact of JPY 14.5 billion. The breakdown is JPY - 11.1 billion from changes in scale, JPY - 1.2 billion from financial services, JPY +2 4.7 billion from pricing, which is the sum of the price increase effect and rebates, and JPY - 26.8 billion from other factors. The cost impact was JPY - 6.7 billion, consisting of a JPY + 10.2 billion from cost reductions and a JPY - 16.9 billion from cost increases. Increased R&D expenses was JPY - 17.1 billion, SG&A expenses JPY - 16.9 billion, and other items, including equity method investment gains and losses, JPY - 4.1 billion. Foreign exchange impact was JPY - 10.2 billion and tariffs JPY - 0.6 billion. Next, on our revised full-year forecast for FY 2025, please turn to page 8.
Taking into account the current business environment and the full-scale impact of additional U.S. tariffs expected after the second half, we have revised our earnings forecast downward. While revenue is expected to remain on par with the previous year, operating income is projected to decline due to the negative impact of additional tariffs on marginal profit and increased R&D expenses. Net income has been forecast to reflect these factors, as well as the risk of partial reversal of deferred tax assets due to additional U.S. tariffs. Revenue is expected to be JPY 2,570 billion, the same as the previous year. Operating income is forecast at JPY 120 billion, 66% of the previous year. Operating income ratio is expected to be 4.7%, down 2.3 points from the previous year.
Net income attributable to owners of the parent is projected at JPY 45 billion, 42% of the previous year, and EPS is expected to be JPY 46.34, 42% of the previous year. The assumed exchange rates are JPY 147 to the U.S. dollar and JPY 161 to the euro. Let's turn to the factors impacting operating income. Please turn to page 9. As shown, compared to the last fiscal year, the sales effect is projected to be plus ¥16.7 billion, the net cost impact JPY - 11.3 billion, increased R&D expenses JPY - 27.0 billion, increased SG&A expenses JPY - 6.3 billion, foreign exchange impact JPY - 21.1 billion, and tariff impact, including mitigation from price revisions, JPY - 12.6 billion. Next, on returns to shareholders, please turn to page 10. While we have revised our earnings forecast, we will maintain our initial plan for shareholder returns, keeping the annual dividend at JPY 50 per share.
Yamaha places importance on a management policy of stable and continuous shareholder returns. Our decision also reflects our current financial situation. For us to do so, we will continue to aim for a total payout ratio of over 40%, striving to balance improving corporate value with providing returns to shareholders. Next, I'd like to explain by business segment. For our big by business segment, the first half revenue and operating income, please refer to page 12. For motorcycles, marine, OLV, financial services, and other products businesses all saw a decrease in revenue and operating income. SPV revenue remained flat. Operating loss was down from the previous year. Robotics business saw an increase in revenue. Operating loss was down from the previous year. Next is the full-year revised forecast. Please refer to page 13.
Motorcycle, marine, robotics, financial services, if you look at the revenue, we expect to be at the same level as last year. Operating income will go down. OLV, both revenue and operating income, we expect this to go down. SPV, we expect a drop in revenue, however, the operating loss is expected to become smaller than the previous year. Looking at the details by business segment, please refer to page 14. First, core business. We look at the motorcycles business. The left-hand graph, the top, is the first half total demand in major regions and our shipped amount compared with the previous year. The bottom shows the full-year revised forecast versus the previous year. The right-hand graph looks at the revenue by region. In the first half, in developed countries, Indonesia and the Philippines, we have achieved shipments above demand.
In Vietnam and India, the unit sales went down, and thus revenue was down. Operating income, as sales units decreased and with the weaker emerging countries' currencies, which pushed up procurement costs, and also an increase in R&D, personnel expenses, and other SG&A, we have seen a drop in operating income. Second half, with the recovery in Vietnam and sound demand continuing in the Philippines and Brazil, we expect that the full-year sales will be on par with the previous year. Operating income, with the U.S. Additional tariffs and the weaker emerging country currencies pushing up procurement costs, and also with increased R&D expenses, we are expecting a drop in operating income. I'd like to introduce a new motorcycle product. Please refer to page 15. In August, in the Philippines, in the scooter premium category, our new model, Aerox, has been launched.
Last year in Indonesia, the same model was launched and has become very popular. In the Philippines also, we are expecting this will be favored by many customers. The launch of this popular model we believe will drive motorcycle business in the second half. Next, another core business, marine business. Please refer to page 16. First half, outboard motors major market, the U.S., demand decreased. However, our unit sales in the small and mid-horsepower size, we have seen a last-minute demand before price revisions and was above last year. For 300 horsepower and above, our shipment was below last year. However, in retail, just like demand, was flat. Water vehicles, demand dropped, and also the market inventory increased with that. The unit sales went down, and the overall marine business also has seen a decline.
Operating income, water vehicle unit sales was down, and with the increase in R&D expenses, as well as a review of procurement prices, where we responded flexibly, the cost was increased, and therefore we have seen a decrease in operating income. From the second half and onward, the F-350B sales increased, and also with an expansion of our outboard motor lineup, we are expecting that revenue will be maintained on the previous year's level. Operating income, with the U.S. additional tariffs causing a worsening in marginal profit rate and also an increase in R&D expense for future growth, we are expecting a reduction in operating income. The strength and current status of our core businesses, please refer to page 17. The business environment is changing drastically, we are seeing a temporary adjustment period. Our core business is increasing its market presence.
In motorcycle business, the sales volume and profitability are growing and improving from the past, and the premium strategy is showing steady effects. In the current MTP, in our focus markets, we will be steadily raising the ratio of our premium product. In the marine business, the market environment is challenging, our main market, which is the U.S., we will enhance our shares of outboard motors and water vehicles.
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In our mid-term management plan, we will strengthen competitiveness of our core business. This will be our top priority in our motorcycle business. We will advance our premium strategy in marine business. We will promote maximizing customer value, and we will aim to further enhance our presence in the market. Next, SPV and robotics businesses. Please refer to page 18. On the left is our SPV business. First half, domestic power-assisted bicycle unit sales due to demand recovery have increased. For e-kit, in the first half, we have received a significant order, and therefore the unit sales went up. However, because of the impact of model mix, revenue was flat. Operating loss shrunk from the previous year. For the full-year forecast, revenue, e-kit, reduction in sales, and overseas completed vehicles, where we had a withdrawal from the North American market, we expect a decline.
Also, because of the certain fixed asset impairment impact, which were recorded last year, we are expecting a decline in operating loss. On the right-hand side, robotics business, the semiconductor backend process, manufacturing equipment for generative AI and advanced packaging, we will see an increase in revenue, and also an operating loss has decreased. Second half, a steady demand in generative AI will support us, and for the full-year revenue, we believe this will remain flat. For operating income, the mounted unit sales will go down, and regional sales structure, as well as model mix, will worsen, and we are expecting a decrease in operating income. Lastly, OLV business and financial services business. Please refer to page 19. Left-hand side, OLV business. First half, unit sales were down, marginal profit ratio worsened, R&D expenses and SG&A expenses went up, and therefore we have seen a drop in revenue and profit.
In the second half onwards, with the U.S. additional tariff impacts and with the continuing challenging business environment, we are expecting a drop in both revenue and profit. OLV, to maintain our competitiveness, we will strengthen our R&D investment, and we will review our cost structure and also improve our asset efficiency. Through such efforts, which are carried out in phases, it may take some time, but we will convert towards a sustainable business foundation. Next, right-hand side, financial services business. In the first half, outstanding foreign currency denominated receivables increased, but with the yen's appreciation, we have seen a drop in revenue. Also, last year, the valuation losses on interest rate swaps, last year's interest rate drops, valuation losses have converted into appraisal loss, and therefore we have seen a drop in revenue and income.
For the full-year outlook, outstanding balances will remain flat, and the first-year losses from interest rate swap valuation will have an impact in a drop in operating income. We will continue to watch. Without the interest rate swap valuation effect, we are seeing steady operation activities, and we will continue to look at the credit risk and interest rate fluctuation for a sound business operation. Thank you very much for your attention. With that, Yamaha Motor Company's briefing on the first half earnings for the fiscal year ending December 2025 is complete. Thank you very much for watching this program. For the press, we'll be having a separate Q&A session, so please remain tuned in.