Integrated Report 2022
Fiscal year ended December 31, 2021

Corporate Mission 

Kando* Creating Company
Offering new excitement and a more fulfilling life forpeople all over the world
Yamaha Motor strives to realize peoples’ dreams with ingenuity and passion, and to always be a company people look to
for the next exciting product or concept that provides exceptional value and deep satisfaction.
* Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that we experience when we encounter something of
exceptional value.

Management Principles 
1. Creating value that surpasses customer expectations
To continue to produce value that moves people, we must remain keenly aware of customers’ evolving needs. We muststrive to find success by always surpassing customer expectations with safe, high-quality products and services.

Empowered by a passion
for innovation, we create
exceptional value andexperiences that enrich thelives of our customers.

2. Establishing a corporate environment that fosters self-esteem
We must build a corporate culture that encourages enterprise and enhances corporate vitality. The focus will be on
nurturing the creativity and ability of our employees, with an equitable system of evaluation and rewards.

3. Fulfilling social responsibilities globally
As a good corporate citizen, we act from a worldwide perspective and in accordance with global standards. We must
conduct our corporate activities with concern for the environment and communities and fulfill our social responsibility
with honesty and sincerity.

Action Guidelines 
Acting with Speed

Spirit of Challenge

Persistence

Meeting change with swift andinformed action

Courage to set higher goals
without fear of failure

Working with tenacity to achieve
desired results, and thenevaluating them

Corporate Mission

Kando

Creating Company

Corporate
Philosophy
Management
Principles

ActionGuidelines

We have worked based on three ideas which constitute our “Corporate Philosophy”.
One is our “Corporate Mission”, that is our core identity, values, purpose, and visionary goals.
The second is “Management Principles”—the guiding management principles for achieving ourcorporate mission. The third is “Action Guidelines”, the guidelines each individual
should follow to realize our corporate mission.

Yamaha Motor Co., Ltd. Integrated Report 2022

1

Contents

About Integrated Report 2022

Yoshihiro Hidaka
President,
Chief Executive Officer andRepresentative Director

Editorial Policy
This report was prepared and edited to give shareholders,investors, and other stakeholders a multifaceted understandingof Yamaha Motor’s sustainable growth.
Financial, sustainability-related, product, and other information not contained in this report is available on Yamaha Motor’s
official website. Please note that the “2022” in the title refers
to the year this report was published.
Scope
This report covers Yamaha Motor Co., Ltd., its 140 subsidiaries,
and its 28 affiliates (as of December 31, 2021). Notification is
given when the scope used in calculating the data provided inthis report differs from this.
Reporting Period
This report covers the period from January 1 to December 31,
2021. Information on some activities taking place after January
1, 2022 is also provided.

Yamaha Motor began publishing integrated reports in fiscal 2019 to help
shareholders, investors, and various other stakeholders develop a better
understanding of the Company’s efforts to create value from a medium- tolong-term perspective. In 2022, we have endeavored to provide an evenbetter understanding of the growth strategies in the new Medium-Term
Management Plan, the second phase of promoting the achievement of ourLong-Term Vision for 2030, and the value creation that underpins this.
This report was created referencing the International Integrated Reporting
Council (IIRC)’s International Integrated Reporting Framework and the
Guidance for Integrated Corporate Disclosure and Company–Investor
Dialogues for Collaborative Value Creation (Guidance for Collaborative Value
Creation) released by Japan’s Ministry of Economy, Trade and Industry. Aftercompiling the policies of the Company, each department was asked for theirearnest cooperation in creating this report, and I declare the process of preparing it to be appropriate and the information contained herein to be accurate.
Going forward, Yamaha Motor will continue striving to create sustainable
environmental and social value as well as raise corporate value throughconstructive interactions with its stakeholders. Thank you for your ongoingsupport of Yamaha Motor.

Financial Information

Yamaha Motor Co., Ltd. Integrated Report 2022

From the President

Yamaha Motor Today
10 A History of Expanding Our Portfolio in
Pursuit of Kando
12 A Globe-Spanning Business Featuring a
Diverse Range of Products
14 Maximizing Our Environmental andSocial Value
16 Financial and Non-Financial Highlights
Medium- to Long-Term Strategies
18 Yamaha Motor’s System of Strategic Policies
19 Important Societal Issues (Materiality Issues)
22 Medium-Term Management Plan
(2022–2024)
28 Land Mobility
30 Marine Products
32 Robotics
33 Financial Services
34 From the Director in Charge of Corporate
Planning and Financial Affairs
36 Initiatives to Achieve Carbon Neutrality(Disclosure Based on TCFD Recommendations)
40 Digital Transformation Strategy
42 Human Resource Development

Structure for Information Disclosure
Non-Financial Information

Activities for Greater Functional
Competitiveness46 Creative Branding & Design
50 Research and Development
52 Intellectual Properties
54 Procurement
56 Manufacturing and Production (Monozukuri)
58 Sales (Marketing)Management Platforms
60 From the Chairman of the Board of Directors
62 Outside Officer Roundtable
66 Directors and Audit &Supervisory Board Members
69 Corporate Governance
76 Risk Management
78 Compliance
Facts and Data
81 Environmental and Social Data
82 Eleven-Year Summary
84 Management’s Discussion and Analysis of
Fiscal 2021 Business Results
88 Global Group Network
90 Corporate Information / Stock Information

44 Sustainability

Integrated Report 2022

• Information for Investors
https://global.yamaha-motor.com/ir/• Corporate Website
https://global.yamaha-motor.com/

Key Points of Integrated Report 2022

• Securities Report (in Japanese only)
https://global.yamaha-motor.com/jp/ir/library/
security/• Technical Review
https://global.yamaha-motor.com/about/technical_review/

Based on the Long-Term Vision for 2030 of “ART for Human Possibilities: Let’s strive for greater happiness,” Integrated Report 2022 provides
details on specific initiatives for medium- to long-term strategies and measures focused on driving the new Medium-Term Management Planannounced in February 2022. The following key points will help develop an even deeper understanding of Yamaha Motor’s value creation story.

• Fact Book
https://global.yamaha-motor.com/ir/library/factbook/• Sustainability-Related Information
https://global.yamaha-motor.com/about/csr/• Corporate Governance Reporthttps://global.yamaha-motor.com/ir/
governance/pdf/corporate_governance-e.pdf

Notice Regarding Forward-Looking Statements
The statements in this report, except for historical facts, are forward-looking statements about the future performance of the Company and its Group companies. These statements are based on management’s assumptions and beliefs in light of the information currently available and involve risks and uncertainties. Please be advised that actual results
may differ significantly from those discussed in the forward-looking statements.
Potential risks and uncertainties include, but are not limited to, general economic conditions in Yamaha Motor’s major markets, changing consumer preferences, and currency
exchange rate fluctuations.

2

4

1

New Medium-Term Management Plan
Aimed at Enhancing Our Social,
Environmental, and Economic Value

2

Reinforcement of Sustainability Initiatives
Aimed at Achieving Carbon Neutrality

Under the banner of the Long-Term Vision, Yamaha Motor formulated the
new Medium-Term Management Plan—beginning in fiscal 2022—based ona review of the previous Medium-Term Management Plan. This report also
provides information on the Company’s direction regarding the implementation of a portfolio strategy to maximize its social, environmental, andeconomic value.

Yamaha Motor is reinforcing its sustainability initiatives, such as its
response to climate change, and has revised its targets for reducing CO2
emissions under the Yamaha Motor Group Environmental Plan 2050 inorder to accelerate progress toward carbon neutrality. These initiatives
have been incorporated into the new Medium-Term Management Plan
and also introduced as metrics in the Company’s executive remuneration system.

Relevant Pages 

Relevant Pages 

P.4–9
From the President
P.14–15
Maximizing Our Environmental and Social Value
P.22–27	Medium-Term Management Plan (2022–2024)
P.34–35
F rom the Director in Charge of Corporate Planning and
Financial Affairs

P.36–39	
Initiatives to Achieve Carbon Neutrality(Disclosure Based on TCFD Recommendations)P.69–75
Corporate GovernanceYamaha Motor Co., Ltd. Integrated Report 2022

3

From the President

Yamaha Motor will practice diligent portfolio management witha focus on growth areas and our strengths to create
new value contributing to a more sustainable world.

Overview of Fiscal 2021

Yoshihiro Hidaka
President, Chief Executive Officer
and Representative Director

In fiscal 2021, the final year of the previous Medium-Term
Management Plan, Yamaha Motor posted record-breaking
net sales and operating income together with a massive
improvement in our operating income margin.
Fiscal 2021 saw a phased lifting of the restrictions
imposed on economic activity in response to the COVID-19
pandemic centered on developed countries. In addition,
people’s bank accounts received boosts from the relief
payments issued by some governments around the worldin the wake of the pandemic’s effects. These factors drove
increases in demand for outdoor family recreation, which inturn created a favorable operating environment for Yamaha
Motor. Another major contributor to our strong performance was our ability to limit the impacts of reduced
production volumes from global supply chain disruptions
and the ensuing difficulties in procuring parts. These disruptions were a result of global semiconductor shortages,
delays in logistics, and the higher demand seen in responseto the resumption of economic activities. It is impossible todeliver a swift response to developments that simultaneously
impact operations across the globe, such as the aforementioned supply chain disruptions, if frontline organizations
simply wait for specific orders from above before acting.
Yamaha Motor, therefore, took a different approach. In
response to the disruptions, senior management put forthbroad policies while information on supply chain issues wasshared among our procurement, production, and sales
operations. Frontline organizations then exercised autonomy
in addressing the issues based on the information they hadreceived, and I believe this approach was highly effective. I
also want to express my appreciation for the diligent effortsof our employees on the front lines. When faced with parts
shortages, securing sufficient capacity to produce and supply
products is of utmost importance. Given our success in thisregard, fiscal 2021 truly was a year in which we were able towitness the resilience of Yamaha Motor’s foundations thatare rooted in our frontline operations.

Direction and Vision of the New Medium-Term Management Plan
The COVID-19 pandemic, climate change, and other contemporary issues are fundamentally altering people’s values
and substantially increasing the interest in and concern forsustainability around the world. Against this backdrop, wechose to add bolstering sustainability initiatives as a new
guiding theme of the new Medium-Term Management Plan,
which covers fiscal 2022 to fiscal 2024. This will complement ongoing themes from the previous Medium-Term
Management Plan, including the creation of new businesses
and the reinforcement of management foundations for
improving profitability. Guided by the new plan, we will seek
to strengthen the earnings power of our core businesses
while investing in new businesses and growth businesses
that contribute to the realization of a more sustainable
4

Yamaha Motor Co., Ltd. Integrated Report 2022

world. We will also look to accelerate growth through digitaltransformation and co-creation initiatives.
Yamaha Motor handles a vast and global lineup of products,
and the processes spanning the production to the sale of theseproducts are becoming more diverse and multifaceted. This
inherent diversity in its operations has allowed the Company tocontinue growing overall, even as the circumstances individual
businesses face may fluctuate. However, we also recognizethat creating new value that contributes to the resolution ofsocietal issues will require us to identify fields in which we cananticipate growth and to then focus the allocation of management resources on such fields. It is for this reason that we havepositioned diligent portfolio management as a core strategy ofthe new Medium-Term Management Plan.
Yamaha Motor Co., Ltd. Integrated Report 2022

5

From the President

More specifically, we have defined markets expecting
future growth and markets in which Yamaha Motor can
exercise its strengths. We have also identified fields to which
we should allocate management resources in order to stimulate growth, and fields where we will focus on raising profitability while maintaining our position. Further, we haveadded fields in which we can create new businesses with anemphasis on sustainability. We then clarified the position ofeach business based on anticipated net sales growth rates
and return on invested capital, and divided our businesses
into four categories: new businesses, growth businesses,
core businesses, and businesses requiring structural reforms.

Based on these classifications, we will seek to generatecash while maintaining or improving the profitability of ourcore businesses. At the same time, we will proactively allocate management resources to new businesses and growthbusinesses, which have been positioned as strategic businessfields. We thereby aim to grow said businesses into future
core businesses. Development and growth strategy expenses
to be incurred in our strategic business fields during thethree-year period of the new Medium-Term Management
Plan are projected to be ¥115.0 billion, a 60% increase fromthe period of the prior plan, while planned capital investments in these fields should total ¥45.0 billion, an
80% increase.

We will be working to gradually grow new businesses inthese areas through steadfast efforts going forward. The
Robotics business, which has now become a third pillar of
our operations, and the e-Bike business, which is now classified as a growth business, both went years without turninga profit. Regardless, we remained committed to developing
these businesses based on the strong belief that they would
one day bring joy to our customers and clients, and it was

this commitment that helped us grow them into what they
are today. This recognition will empower us to develop new
businesses with a sense of conviction, realizing that thesenew pursuits will be imperative to achieving sustainability
and to resolving societal issues. This conviction will propel us
forward in creating value unique to Yamaha by capitalizingon the technologies and insight we have developed thus far
and by engaging in co-creation activities with partners.

Utilization of Smaller Forms of Mobility

Strategic Business Fields: New Business Initiatives
New business initiatives will include efforts to develop new
businesses as well as operations in new mobility fields.
Previously, we sought to develop new businesses in themobility service, low-speed automated vehicle, medical &healthcare, and agricultural automation fields while also
exploring other new fields. However, we recognize thatsignificant resources will be required to commercialize businesses in just these four fields, and it has also been necessary
to account for the restrictions on our activities amid the
COVID-19 pandemic. Accordingly, we have chosen to concentrate management resources on the aforementioned
four fields over the period of the new Medium-Term
Management Plan, and we will therefore not be exploringother new fields during this period. By moving forward withcommercialization in the four fields, we hope to generate net
sales of ¥30.0 billion from these businesses by fiscal 2024.
In the mobility services field, we have established newcompanies and are working together with local players inIndia and Nigeria, looking to develop asset managementbusinesses that will provide financing schemes for people
who do not have the financial means to purchase motorcycles on their own. These businesses are anticipated tocreate local employment opportunities while also contributing to raising the standards of living as well as providing
stable incomes for people in these countries.
As for low-speed automated vehicles, we are in the process of commercializing goods transportation systems
together with a joint venture company while also moving
forward with conducting feasibility studies for public transit
systems alongside municipal and national government agencies. By developing technologies that allow for automated6

Yamaha Motor Co., Ltd. Integrated Report 2022

transportation under specific conditions, Yamaha Motoraims to reduce the labor requirements of the logistics field
and help resolve mobility issues in regions lacking adequate
access to public transportation.
In the medical & healthcare field, meanwhile, our CELL
HANDLER™ cell picking and imaging system can be used toautomate cell handling procedures that were previously
performed by hand. We are continuing R&D of the systemlooking toward use in immunotherapy applications as well
as for aiding the discovery of drugs for cancer treatments.
In the agricultural automation field, Yamaha Motor
teamed up with an agriculture venture company in the
United States with the aim of providing automation andlaborsaving solutions for crop harvesting and packing.
Furthermore, in March 2022 we invested in a Brazilian
startup that supplies comprehensive agricultural automation
solutions, from agricultural drone development to the provision of related services.
Moving on, efforts in new mobility fields have been
focused on low-carbon personal mobility options. If we areto create a carbon-neutral society, it will be crucial for
people to seek out lighter and more compact mobility
options. For example, if one were to commute with a singlerider vehicle that provides protection from wind and rain, as
opposed to using a large vehicle, it would result in significant energy savings. Yamaha Motor therefore looks to help
address the needs of society by developing new types ofmobility offerings that exist between electrically powerassisted bicycles (e-Bikes) and motorcycles or between
motorcycles and cars.

CO2 emissions per person

Marineproducts
New market area 1

Cars

Motorcycles

PAS

New market area 2
Vehicle size

Strategic Business Fields: Growth Business Initiatives
Yamaha Motor’s growth businesses are composed of the
Robotics business and the Smart Power Vehicle (SPV) business, which offers complete electrically power-assisted bicycles, e-Bike system kits, and electric wheelchairs. Our goal inthese businesses is to generate a compound average growthrate (CAGR) of 19% over the period from fiscal 2021 to
fiscal 2024.
Initiatives in the Robotics business include further building
upon the technical, sales, and service systems that we havetailored to client needs and which have thus come to represent a strength. In addition, we are investing in upping the
production capacity of the Hamamatsu Robotics Office,which conducts the development, manufacture, and sale ofsurface mounters and industrial robots, with the aim ofachieving an 80% increase in production floor area by fiscal
2024. Yamaha Motor has also been bolstering the facilitiesof this production site by expanding its development area
and installing assessment and testing facilities. Other initiatives will include the pursuit of growth by capitalizing on

higher demand for items such as semiconductors for CASE
(connected, autonomous, shared & service, and electric)
systems for the automotive industry, 5G base stations andterminals, data centers, cameras and other sensors, andfactory automation equipment for producing electricvehicle (EV) batteries.
Meanwhile, our SPV business is enjoying a rapid growth indemand for e-Bikes in Europe and the United States as aresult of changes in behavioral patterns and rising environmental awareness. In Europe, roadside parking lots for cars
are being increasingly repurposed as lots for parking bicycles,
making it easier to find such sites in cities. This trend is
expected to continue going forward. We therefore project a
CAGR of 18% in the e-Bike markets of Japan, the UnitedStates, and Europe leading up to fiscal 2030. Yamaha Motor
will pursue growth in its SPV business that outpaces that of
the market by expanding its product lineup, developing
high-value-added products, and reinforcing its production
systems.

Yamaha Motor Co., Ltd. Integrated Report 2022

7

From the President

Sustainability Initiatives
Sustainability has been introduced as an additional main
theme for the new Medium-Term Management Plan. Overthe years, Yamaha Motor has been engaged in various
initiatives for contributing to society. Going forward, we will
be seeking to contribute further based on a concrete action
plan formulated with a focus on issues we consider ofutmost importance and in areas Yamaha Motor most needs
to address. I would now like to take some time to talk about
what areas will be given particular priority under this plan.
The first is carbon-neutrality initiatives. In the Yamaha
Motor Group Environmental Plan 2050, we define both ourtarget of achieving carbon neutrality across the entirety ofour business activities and supply chain*1 by 2050 as well as
our basic policy of reducing per-person CO2 emissions
from transportation.
To reduce Scope 3 emissions, we bolstered our R&D
capabilities with a new facility at the headquarters
completed in fiscal 2021 with the aim of ramping up
powertrain technology development. The building’s new
equipment includes test benches for assessing and testing
the performance of electric motors, hydrogen supply
equipment, and carbon-neutral fuel storage tanks. This new
equipment will be used to develop various powertraintechnologies primarily targeting battery-powered EVs, fuelcells, and hydrogen and synthetic fuel systems.
At the same time, we are accelerating the developmentof EVs through our platform strategy, with the goal of
introducing at least 10 battery-powered electric mobility
models by 2024. On this front, we launched the NEO’selectric scooter with a removable battery in Europe in June
2022, and we plan to begin releasing the E01 electricscooter, which employs a fixed battery design, as a model
for proof-of-concept testing*2 in Japan, Europe, Taiwan,
Indonesia, Thailand, and Malaysia starting in July.
I would now like to talk about our digital transformation
strategies, another of our sustainability initiatives. Digitaltransformation will enable us to connect directly withcustomers to provide services that cater even more to
their needs. I remember around when I had just becomepresident, some four years ago, a woman rider told me that
she had not even put Yamaha among her purchase options
because she felt that the seats on our models were too highand that her feet could not reach the ground. This was
something the Company was, of course, aware of and wetake steps to ensure the ride is comfortable even with a highseat height. However, customers often make their decisions

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Yamaha Motor Co., Ltd. Integrated Report 2022

based on the figures for seat height in the brochure, so ifthat number does not become smaller, customers such asthat woman will be unwilling to ride a Yamaha. This is arather simple issue when you think about it, and myencounter with this woman made me realize that we had
perhaps been neglectful in our response to the purchasing
patterns of some customers.
Digital transformation will allow us to connect directlywith and receive input from customers around the world.
We will also be able to track statistics like where and how
our products are being used and the current state of said
products. Currently, Yamaha Motor is aggressively rolling out
connected products, such as motorcycles with smartphone
connectivity, in order to transform our business through aneven greater emphasis on customers while also delivering
new experiences by connecting with them. Moreover, wehave defined the number of registered Yamaha Motor IDs as
a key performance indicator (KPI) for the development ofcustomer touchpoints and the creation of lifelong customers
through both digital and physical means. We look to growthe number of such users to 4.7 million by 2024, which will
represent a sixfold increase from 2021.
Another area of our sustainability push is human resource
strategies. Our employees are the drivers of our growth.
In order to better energize our employees, we have madeemployee engagement a KPI and we are promoting diversity,
inclusion, and human resource development to achieve
improvements in that regard. For example, I personally sat
down to hold discussions with groups of 20 new employees
on 50 occasions over the past year, thereby meeting 1,000
employees myself. Our viewpoints and the breadths ofour perspectives are as diverse as our people, and thesemeetings exposed me to various outlooks and opinions.
I was also reminded of the diverse capabilities of ouremployees. At the same time, around 70% of the issues
raised during these discussions were those that were close
to home for employees. Specifically, many cited that theirworkplace leaders were often too busy with their own work
to talk with or provide support to their subordinates, leading
to a lack of training. I therefore think that there is a needto reform our target management and human resource
frameworks in order to allow leaders to spend more time on
their more managerial duties.
The last of our sustainability initiatives that I would like tohighlight is our efforts for ensuring the safety and peace ofmind of riders. More than ever, we must focus on this if wewant to reduce the number of motorcycle accidents.
To this end, we are expanding our lineup of models withconnectivity. A large portion of motorcycle accidents arecollisions with cars when turning across traffic, and toprevent such accidents, Yamaha Motor is pursuing thepractical application of technologies for inter-vehiclecommunication. At the same time, the Yamaha Riding

Academy (YRA) works to help riders improve their skills withthe aim of raising rider awareness of safety on the road andgiving them instruction for riding safely.
*1 Including emissions from Company business activities (Scope 1 and Scope 2) andother emissions (Scope 3)*2 M
 odels designed to track customer needs and help the Company explore thepotential for new peripheral businesses and markets

Path toward Long-Term Vision Paved by Unending Ambition
Russia’s invasion of Ukraine has fractured the global community, resulting in a reversal in the prior trend of economic
globalization and a return to an economy separated into
multiple blocks. In response to this, Yamaha Motor will strive
to ensure that its supply chains can function properly under
any circumstances while keeping a close eye on global
trends. Concurrently, we are reviewing our production andR&D networks from the perspective of risk management andtaking quick action to rectify any issues identified. The operating environment remains opaque. Nonetheless, we arefirmly committed to achieving the targets in the new
Medium-Term Management Plan and will move forwardwith certainty in our ability to do so.
The corporate culture of Yamaha Motor is one of taking
on challenges. When I first became a manager, I proposed tomy supervisor that we transfer all scooter production, which
was conducted in Japan at the time, to Taiwan. He told me

to do it myself, entrusting the entire project to me. I mademany other proposals in the years that followed, and for themost part, I was allowed to chase my ambitions as I desired.
I think that this culture is one in which any employee with
passion and drive is encouraged to chase their ambitions,regardless of their position or gender. I hope that everyone
at Yamaha Motor will continue to tackle challenges in ways
true to our unique style, so that we can not only makeheadway toward realizing our Long-Term Vision for 2030 of“ART for Human Possibilities: Let’s strive for greater happiness,” but also deliver even greater Kando to our customers.

President, Chief Executive Officer
and Representative Director

We are firmly committed to achieving thetargets in the new Medium-Term Management
Plan and will make headway toward realizing
our Long-Term Vision for 2030.

Yamaha Motor Co., Ltd. Integrated Report 2022

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Yamaha Motor Today

A History of Expanding Our Portfolio in Pursuit of Kando

Expanding the Field

Yamaha Motor Co., Ltd. (Yamaha Motor) was founded in July 1955, when the motorcycle division of Nippon Gakki Co., Ltd.
(today’s Yamaha Corporation) was spun off to form an independent company. Since then, with our powertrain and othercore competencies as a starting point, Yamaha Motor has been continuously working to create new Kando by consistently
taking on challenges in new and existing fields for more than 60 years, creating products in a multitude of different
businesses and categories. And our mission to enrich peoples’ lives into the future remains our guiding beacon today.

Founded in 1955 

Japanese Economic Miracle Equal Concern for Kando and the Environment 

To the Future 

Entry into the Motorcycle Industry amid
Japan’s Post-War Economic Recovery

Customer-Oriented Development for
Creating Kando

Creation of User- andEco-Friendly Mobility

Uniquely Yamaha Approaches toSolve Societal Issues

Genichi Kawakami, the fourth president of Nippon Gakki and later
founding president of Yamaha Motor, decided to enter the motorcycle
business with the goal of building a foothold for growth outside therealm of musical instruments. At a time when less competitive motorcycle companies were already failing, the company made a bold lateentry into the market, generating a great deal of attention with its first
product’s innovative coloring and design, light weight and maneuverability, and easy engine starts—an incredibly important factor at thetime. Furthermore, motorcycle races were where makers could demonstrate their product’s superiority, and Yamaha’s early entry and consistently strong results created a reputation for technological excellence
that spread domestically and internationally.

During Japan’s economic miracle, Yamaha Motor entered the marine
recreation field believing that enjoying daily life would eventually leadto more fulfilling lifestyles. Our first target was commercial demand,
specifically with fishing boats where the signs of motorization could beseen. The Company succeeded in expanding its business domain to
include marine products by adapting the engine technologies it developed with motorcycles to develop outboard motors and fiber-reinforced
plastic (FRP) fishing boats, incorporating market input in the process.
Meanwhile, in our core business of motorcycles, we did not restrict
ourselves to preconceived norms and ideas, and analyzed customer
needs with a market-oriented approach to release the Passol. This
step-through scooter was well-suited to women riders and createdthe new “soft bike” market segment in Japan.

In 1993, Yamaha Motor launched the PAS as the world’s first electrically power-assisted bicycle, a new form of mobility intended to beclosely linked to user lifestyles. Promoted as a user- and eco-friendly
personal commuter model placing top priority on performance in tune
with human sensibilities, the PAS gained popularity as a form of mobility “assisting” the various lifestyles people lead. Later, we applied theelectronic control technologies developed through PAS bicycles andthe latest human-interface technologies to successfully practicalize an
eco-friendly electric commuter vehicle that produced no emissions andlittle noise. These technologies are contributing to today’s development work on new forms of mobility.

Yamaha Motor is working to evolve and diversify its existing product lines
by combining its core competencies with new cutting-edge technologies.
At the same time, the Company is adapting its expertise in unmanned
technologies and systems, such as industrial robots and industrial-use
unmanned helicopters, to contribute to laborsaving efforts and raising
efficiency in a variety of fields, from industry and farming to forestry. In
addition, as part of its efforts to achieve carbon neutrality, Yamaha Motoris bringing electric motorcycles and scooters such as the NEO’s and the
HARMO next-generation electric boat control system to the market while
also moving forward with the development of internal combustion
engines that do not emit CO2. Through efforts such as electrification
among our wide-ranging product lineup, we are expanding the possibilities of mobility for a better society and a more fulfilling life.

Adapting Core Competencies to
Expand Our Product Portfolio

2020
Unmannedindustrial-use
helicopter
FAZER R G2

1987
Industrial-use unmanned helicopter
R50 (L09)
2017
Cell picking &imaging system
CELL HANDLER™

Powertrains

1974
FRP pools created using
boat manufacturing technologies

Electronic
Control

2022
Electric
scooter withremovable battery
NEO’s

1960
Our first outboard motor
P-7
1955
The first Yamaha motorcycle
YA-1

Chassisand Hulls

1977“Soft bike” allowing women to
ride with peace of mind
PassolCorporate Mission

Kando Creating
Company

Yamaha Motor Co., Ltd. Integrated Report 2022

2002
Electric commuter vehicle
Passol2022
Electricallypower-assisted
mountain bike
Wabash RT

1995
Wheelchair
electric power unit
JW-I

Manufacturing
1960
Our first catamaran FRP boat
CAT-211968
Our first snowmobile
SL350

10

1993
World’s first electrically power-assisted bicycle
PAS

1978
Golf car
G1-A

2020
Next-generation electric boat
control system
HARMO

Yamaha Motor Co., Ltd. Integrated Report 2022

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Yamaha Motor Today

A Globe-Spanning Business Featuring a Diverse Range of Products

The powertrain, chassis and hull, electronic control, and manufacturing technologies and expertise we have accumulated since our founding serve as our core competencies, and as we continue refining them, we offer a myriad of products around the world that create Kando by leveraging our technologies and keen sensibilities based on the Company’s
unique Jin-Ki Kanno development ideal.
Fiscal 2021 Consolidated
Financial Results
Net sales¥

1,812.5billionOperating income

¥

182.3

Marine Products

Land Mobility

billionNet sales (% of total)

1,179.7¥

Net sales (% of total)billion (65.1%)

Operating income (% of total)

68.7

Distribution of
net sales andoperating income
by businesssegment¥

billion (37.7%)

¥

391.1

billion (21.6%)

Operating income (% of total)

76.8

¥

billion (42.1%)

Operating income (% of total)

19.1

¥

billion (4.0%)

Operating income (% of total)billion (10.5%)¥42

million (0%)

Main products Sales finance and leases related to the Company’s
products

Golf cars, generators, multipurpose engines, andsnow blowers

51,243

Ratio of overseas production 

41.0%

90

%

equipment, industrial robots, and industrial-use
unmanned helicopters

Number of Consolidated Subsidiaries: 132
Total number of bases(primary roles) 
Development

19

Manufacturing

24
Sales

Yamaha Motor Co., Ltd. Integrated Report 2022

billion (9.7%)¥

Main services 

Over

12

17.6

¥

72.7

billion (2.7%)

Surface mounters, semiconductor manufacturing

Asia(excl. Japan)

23.7%

Operating income (% of total)

48.6

¥

Main products 

12.0%North America

billion (6.6%)

Net sales (% of total)

Outboard motors (marine engines), personal watercraft, boats, FRP pools, fishing boats, and utility boats

Number of employees(consolidated) 

14.6%

120.3

¥

Net sales (% of total)

Main products 

8.7%

EuropeNet sales (% of total)

Other Products

Motorcycles, Leaning Multi-Wheel (LMW) models,intermediate parts for products, knockdown parts foroverseas production, all-terrain vehicles (ATVs),
recreational off-highway vehicles (ROVs), snowmobiles,
electrically power-assisted bicycles, electric wheelchairs,
automobile engines, and automobile components

Japan

Net sales by region¥1,812.5 billion

Financial Services

Main products 

Global Organization Creating Value as a Team

OthersRobotics

46

North America
Europe

10

Japan

22

23

Asia (excl. Japan)

50
Oceania

9Central andSouth America

18

Yamaha Motor Co., Ltd. Integrated Report 2022

13

Yamaha Motor Today

Maximizing Our Environmental and Social Value
Outcomes to Achieve
Yamaha Motor’s business model is to provide unique, high-quality products and services that accurately reflect societal andcustomer needs by applying its Spirit of Challenge, which has been handed down as the Company’s DNA, and the technologies it has created and refined to date. The very reason for the Company’s existence as a Kando Creating Company is to givesociety and customers experiences of Kando unique to Yamaha Motor that intertwine technologies and human sensitivities.
By expanding human possibilities and through our products and services that create Kando, we are aiming toachieve sustainable growth as well as create a better society and more fulfilling lives.

Important Societal Issues

Foundations for Creating Competitiveness• Consumer-oriented development ideal• Global R&D structure• Global sales network• Strong teamwork of dealerships, regional sales bases, andYamaha Motor• Marketing methods that connect withcustomers over a lifetime• Original and innovative ability toconceive new technologies• Creative, advanced technologicalcapabilities and core technologicalcompetencies• Proprietary product development
methods

Environmental Value
Reduction of greenhouse gas
emissions from ourbusiness activities• Offer eco-friendly means of
personal transportation

Land Mobility

Environment andresources

R&D

Innovation

P.58

P.50

Create new value for people’s time,
mobility, and self-expression

Motorcycles

Electricallypower-assisted
bicycles

ATVs / ROVs

P.30

Three Focus Areas

Reliable and rich marine life
Toward further increasing the value of the ocean

Branding

Ties

P.46

Boats

Outboard motors

Pools

Excitement

Robotics

P.32

Promote automation and laborsavings
to free up valuable time for people

Social Value

Leverage and evolve intelligent
technologies and robotics as a foundation

Provision of safe anddependable mobility
and lifestyles

Rethinking
Solution

Propose uniquely Yamaha solutions

Transportation andindustry
EmotionProcurement /Manufacturing and
Production

P.46
P.34

• Design that contributes to management
and branding• Design capabilities that express
individuality

Industrial
machinery androbotsConfidence

DesignHuman capitalmanagement

Advancing

Robotics

Corporate Mission

Kando
Creating
Company• Lower electric power consumption in production and otheractivities

P.28

Marine Products
Sales• Reduce greenhouse gas
emissions

Growth Strategy Directions

Business Operations

Financial Services• Global production system and inter-regional
product distribution system• Leading manufacturing technologies andstrong on-site capabilities

Utilizing Our Intellectual Properties• Maintain and improve safety
and reliability through highquality products and services• Ensure safe water and resources

Transforming
Mobility

Promote innovations in mobility

Financial services

Other Products
Become a close part of customers’ lives andoffer unique technology to support them

P.52
Golf cars

Human Resources Development Strategy

P.33

Offer services that strengthen relationships
with customers and dealerships

P.54, 56

• Abundant plant management
expertise and technology

Industrial-use
unmannedhelicopters and drones• Offer mobility services that aresafe and comfortable for all

Generators

Economic Value
Redistribution of economic
added value to stakeholders• Strengthen earnings structure
and maintain stable financial
foundations• Provide employee remuneration

P.42• Pay stable dividends to investors• Talented

global personnel who embody the brand•D iverse specialist skills and management ability•D iversity in terms of specialization, nationality and culture, and gender

14

Yamaha Motor Co., Ltd. Integrated Report 2022

Yamaha Motor Co., Ltd. Integrated Report 2022

15

Yamaha Motor Today

Financial and Non-Financial Highlights

Net Sales

Operating Income / Operating Income Margin(¥ billion)(¥ billion)

2,000

200

1,812.5

1,500
1,654.2

1,000
500

158.3

0
2017
Japan

2018

2019

2020

(%)

182.3
10.1

155.6

160
120

8.6

12

60

9

100

6

60

6

40

6

50

3

30

3

20

3

0

0

0

0

2018

2019

2020

2017

2021

2018

2019

2020

2019

2020

2021

CO2 Emissions (Scope 1 and Scope 2)*

Water Intake(1,000 t-CO2)(Million m3)(%)

1,832.9

1,600

800

15
12

9.0

6

400

3

0
Total assets

2018

2019

2020

6.0

9

4.5

400

6

3.0

6

200

3

1.5

3

0

0

600

0
2017

12

501

9

800

2021

Net income attributable to owners of parent
Ratio of net income attributable to owners of parent to net sales

0
2017

2021

2018

2019

2020

2021

12

0
2017

2018

2019

2020

2021

ROA

Total assets increased ¥192.0 billion year on year to ¥1,832.9 billion due to factors suchas an increase in inventories caused by production delays, logistics delays resulting froma shortage of parts, and an increase in long-term sales finance receivables in association
with an increase in retail financing.

As a Groupwide goal, the Company has set medium- to long-term targets for reducing the CO2 emissions generated over product life cycles and is also working to reduce
the greenhouse gas emissions produced in manufacturing.
* Scope 1 and Scope 2: Direct and indirect emissions produced by the Company’s
operations

The Company will continue to measure its global use of water resources and reduce
the amount of water intake by promoting the reuse of coolant water and watercollection (rainwater and other sources) at its factories.

Return on Equity (ROE)Net Income per Share (Basic)

Number of Group Companies Joining Unified Certification Program

Brand Ranking*

20

2014
(No. of companies)(¥)

15,328
12

480

15

9

10
5

12

60

360

9

45

6

240

6

30

3

120

3

15

0

0

0

0

445.67

19.8

0
2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

Yamaha Motor Co., Ltd. Integrated Report 2022

The increase in net income attributable to owners of parent led to a significant
year-on-year increase and net income per share (basic) rose to ¥445.67.

2015

2016

2017

2018

2019

46

2017
Japan

The recovery in business performance and improvements to operational efficiency andstability led to a substantial recovery of ROE, with a 12.3 percentage point increase
compared with the previous fiscal year-end.

9

4.03

Net income attributable to owners of parent rose ¥102.5 billion year on year to ¥155.6
billion and the ratio of net income attributable to owners of parent to net sales rose by
5 percentage points year on year to 8.6%.

(%)

16

2018

Total Assets / Return on Assets (ROA)

0
2017

0
2017

2021

Capital expenditures targeting sustainable growth and greater efficiency in existing
businesses rose ¥13.2 billion year on year to ¥67.0 billion.

3

0

2020

The Company implemented development efforts in new business areas aimed atfuture growth and for strengthening core businesses while carrying out selection andconcentration, recording ¥95.3 billion in R&D expenses.

6

40

2019

Operating income had a significant rise of ¥100.7 billion year on year to ¥182.3
billion, in part due to the increase in net sales but also due to the curbing of fixed
costs through the implementation of remote work and other digital methods, foreignexchange impacts, and other factors working to absorb the effects of soaring logistics
costs and raw material prices.

1,200
80

2018

Operating income margin

2,000

9

12
67.0

9

(¥ billion)

(%)

80

90

Operating income(¥ billion)

12
95.3

9

2017

Net Income Attributable to Owners of Parent / Ratio of Net
Income Attributable to Owners of Parent to Net Sales(¥ billion)

120

12

0

Despite the impacts of lower production, labor shortages, and other factors broughton by the supply shortage of semiconductors and other parts, higher unit sales and anincrease in unit purchase prices led to a year-on-year increase of ¥341.2 billion to¥1,812.5 billion.

Capital Expenditures(¥ billion)

150

2021

Overseas

R&D Expenses

2018

2019

2020

2021

28

th

* Brand value ranking of Japan-based brands carried out by Interbrand Japan (BestJapan Brands 2022)

Overseas

The Company has been working toward receiving ISO 14001 certification for environmental management systems at Group companies in Japan and overseas since fiscal
2012. A total of 46 companies (12 in Japan and 34 overseas) have joined the unified
certification program, mainly manufacturing companies in Asia (including Japan),
Europe, the United States, and South America.

The Yamaha brand, calculated by combining the brand value of both Yamaha Motorand Yamaha Corporation, was valued at US$1,801 million (compared with US$1,480
million in fiscal 2021 and US$1,369 million in fiscal 2020).

Yamaha Motor Co., Ltd. Integrated Report 2022

17

Medium- to Long-Term Strategies

Yamaha Motor’s System of Strategic Policies

Important Societal Issues (Materiality Issues)

Yamaha Motor identified important societal issues (materiality issues) to address in light of significant changes in thebusiness environment as well as in terms of risks and opportunities. In order to resolve these societal issues, theCompany formulated its Long-Term Vision for 2030 to indicate the directions we will take. In 2022, the Company revised
its materiality issues and is implementing a new Medium-Term Management Plan aimed at realizing the Long-Term
Vision. For details on important societal issues identified by the Company, the Long-Term Vision, and our various­measures, please see the relevant pages.

Yamaha Motor defines materiality issues as major issues considered important by both our stakeholders and society atlarge, which not only have a major impact on our operations but are also ones we believe we can solve through our­business. By addressing these issues, we aim to achieve sustainable growth of corporate value as well as the sustainable
development of society and the environment.

Kando Creating Company

Corporate Mission

Offering new excitement and a more fulfilling life for people all over the world

External environmental factors of particular importance for Yamaha Motor• The shift to recycling-oriented economies
and the decarbonization of society• Population growth in emerging markets
and the aging of society in developed
markets• The global economic power shift fromdeveloped markets to emerging markets

Important Societal Issues(Materiality Issues)• The progress of rapid urbanization andincrease in urban/rural disparities• The progress of technological innovations(IoT/AI)• More traffic accidents and traffic
congestion (particularly in emerging
markets)

Environment and resources• Responses to first/last-mile mobility needs• The diversification of people’s values andconsumer behaviors• The transition from vehicle ownership tosharing and from material goods toexperiences

Transportation and industry

Human capital management

Process for Identifying Important Societal Issues
Sort

STEP 1

We look at the wide range of societal issues referenced in the United Nations’ Sustainable Development Goals (SDGs)
and the Global Risks Report, and select those that will have the greatest impact on Yamaha Motor’s use and procurement of management resources, and for which the resolution will make the greatest contribution to the enhancementof corporate value. We also evaluate the importance of societal issues from the perspective of stakeholders, referencing the valuations of ESG rating institutions.

Environment
andresources

Categorize

STEP 2

Transportationand industry

Through consultation with operating divisions, functional divisions, and corporate divisions, the divisions clarify the
relationships between the issues selected in Step 1 and each division’s policies and activities, and those that should be
addressed Companywide are aggregated and categorized.

Human
capitalmanagement

Designate

STEP 3All of the Company’s officers deliberate societal issues aggregated and categorized in Step 2 at Management
Committee and Board of Directors meetings and designate “important societal issues” that should be addressed
Companywide using the Company’s strengths, corporate philosophy, and unique capabilities.

Incorporate

STEP 4

Environmental Plan 2050

Medium- andLong-Term Strategy(Corporate Strategy)

Human resources
development strategy

Portfolio strategy

Initiatives to resolve the identified important societal issues have been incorporated into the current Medium-Term
Management Plan. The rigorous implementation of these initiatives will be monitored going forward.

Digital transformation (DX) strategy

Selected societal issues
Invest in new andg­ rowing businesses

Accelerate digital­initiatives and co-creation

Long-Term Vision for 2030 (Growth Strategy Directions)Three Focus Areas

Rethinking Solution

Transforming Mobility

Leverage and evolve intelligent technologies
and robotics as a foundation

Propose uniquely Yamaha solutions

Promote innovations in mobility• Financial crisis in important economic zones• Unmanageable inflation• Failure of national governance• Failure of regional or global governance• Inter-government conflict over regional problems• Deepened social uncertainty• Abuse of technological progress• Introduction of industrial processes taking into accountclean technologies and efficient use of resources•H eightened awareness of sustainability• P romotion of economic growth based on fair work
environments•R eduction of waste materials•C urtailment of corruption and bribery• Improved energy efficiency(including promotion of use of renewable energy)• P romotion of use of inexpensive, reliable energy• P romotion of safe and secure work environments•A dvancement of diversity and inclusion• E ffective use of water resources andprevention of pollution• S ecuring of clean water resources• Abolition of inequality• Responses to multistakeholders• Promotion of innovation(active use of global partnerships)• Implementation of fair taxation• Promotion of sustainable industrialization• E limination of discrimination against women andprotection of human rights•U se of women’s skills• S trengthened disaster prevention and response• E radication of forced labor, human trafficking,and child labor• Increased employment for socially vulnerable people• P revention of pollution and damage fromharmful chemical substances• S trengthened measures to address climate change• S ustainable use of natural resources• P romotion of innovation(promotion of sustainable industrialization)• P romotion of innovation(promotion of sustainable forms of consumption andproduction in d
­ eveloping countries)• P romotion of protection and recovery ofland ecosystems• P rovision of a stable living environment•H alting of deforestation• P rotection and recovery of marine ecosystems• E xpansion of educational systems(including vocational training)• E nhanced educational environment indeveloping countries• P romotion of social infrastructure development• P revention of traffic accidents• P rotection of small-scale agricultural andfishing industries•A dvancement of sustainable fishing industry• Improved access to fishing areas and markets
in least developed countries• Strengthened support for emerging anddeveloping economies

Low

Advancing Robotics

Important issue areas

High

Strengthen the earning
power of our corebusinesses

Importance to stakeholders

Medium-Term
Management Plan
Measures

Low

18

Materiality issues identified by
Yamaha Motor

Yamaha Motor Co., Ltd. Integrated Report 2022

Importance to Yamaha MotorHigh

Yamaha Motor Co., Ltd. Integrated Report 2022

19Medium- to Long-Term Strategies

Important Societal Issues (Materiality Issues)

Review of 2022 Materiality Issues 
From 2021 to 2022, we reexamined the changes seen in theexternal environment and their impact on our businesses andsociety in general, reviewing the relevance of our previously identified important societal issues. As a result, we narrowed themdown to three: “environment and resources,” “transportation andindustry,” and “human capital management.” To arrive at these,
we changed “transportation, education, and industry” toEnvironment and resources

ImportantSocietalIssues“transportation and industry,” and moved issues concerning“innovation” into “environment and resources” and “transportation and industry,” since major elements of it are already includedin those issues. Furthermore, we reviewed the themes of ourefforts according to both the internal and external environment tofurther focus these efforts.

Risks and Opportunities

Risks• Tightening of regulations and declining net sales due toglobal warming• Declining profits due to rising costs• Negative impact on corporate image• Delays in the economic independence of developing
countries because of marine pollution• Impact of marine pollution on the fishing industry andmarine leisureOpportunities• Growing trend of EVs replacing existing forms of mobility• Heightening demand for smaller forms of mobility

ThemesYamaha Motor’s Approach

Achieving carbon
neutrality

A

R

T

Reduce the environmental burden of coreproducts that emit CO2, such as motorcycles and outboard motors

Transportation and industry

Please visit our corporate website for more information onmateriality issues, such as the figures for progress maderegarding materiality issues during the previous MediumTerm Management Plan.
https://global.yamaha-motor.com/about/csr/materiality-kpi/

Medium-term targets (2022 to 2024)• Reduce CO2 emissions from production by 52% (compared with 2010)• Deploy energy-saving and renewable energy facilities in at least 10 countries• Introduce carbon-free power generation at Yamaha Motor domestic offices and worksites•C onduct field testing of internal combustion engines that do not emit CO2 by utilizing carbon-neutral fuels*

Promoting product development and sales withlow environmental impact, such as electrification, to find uniquely Yamaha solutions• Release at least eight new electric motorcycles/scooters on the global market• Complete field testing evaluations for a new electric marine propulsion concept model by 2024
• Release at least six new electrically power-assisted bicycles on the global market* Hydrogen, synthetic liquid fuel, biofuel, etc.

Conservation ofmarine resources

R

T

Reduce the risk of damage to the marine
ecosystem and depletion of fisheryresources as a marine product industry
leaderPromote initiatives contributing to theelimination of fatal traffic accidents
involving motorcycles

Opportunities•G rowing demand for motorcycles due to rising populations
and incomes in developing countries•G reater need for smaller forms of automated mobility•A ddressing and supplementing the aging workforce andlabor shortages in the agriculture, fishing, and manufacturing industries• Increased automation with the development of AI
technologies•N ew demand for mobility such as CASE-equipped vehicles
and MaaS•O ffering solutions for the agricultural sector using robotics• Increased competitiveness due to the spurringof innovation

Vision for 2030
Reduced CO2 emissions (carbon intensity per
sales) from production activities by 80%(compared with 2010) and net zero by 2035

A

Risks
•R
 ising number of traffic accidents•R ise in traffic accidents caused by elderly people in developed nations• F ewer means of transportation in underpopulated areas•R educed competitiveness in the market and businessenvironment

SDGs

Furthermore, performance regarding materiality KPIs, which areindicators of ESG management, is part of the non-financial evaluation component of the Company’s executive remuneration
system, and overall progress is considered when determining
Companywide performance-based compensation for all officers,
including the president.

Safe and user-friendly
mobility for everyone

A

R

T

Utilize mobility technologies to provide
transportation infrastructure usable
by vulnerable groups, such as elderly
people, children, and those living in
depopulated areas

Improve convenience and aid in thecreation of employment opportunities by
providing assets for mobility services

Robotics for improved
work ease, comfort,
and precision

A

R

T

Create work environments where people
can dedicate their talents to work requiring the human hand, eye, and mind by
securing more available time via automation and laborsaving

Improved recyclability of boats• P rogress with R&D for FRP waste material recycling and achieve technical feasibility by 2024
• T ransition from FRP materials to naturally-derived materials and introduce sequentially with mass-production models
from 2024

Establishment of solutions contributing tosustainable fishery•C onduct field testing of fishery management solutions and launch a pilot project in 2024

Introduction of low-speed automated driving
systems has reduced the number of people withlittle or no access to public transportation

Expertise• Increase the number of YRA participants by 60% compared to the previous three years (220,000 people)
Technology•R &D of airbag technologies•D evelop a proximity risk warning system (front, rear, blind spot, lane deviation) to help avoid accidents and launchon the market within 2024

Reduced restrictions on movement throughlow-speed automated driving systems• F inalize automated driving technology for mobility service vehicles on select public roads and aim for implementation
in at least three locations by 2024

Offering new mobility options that make people
happy• Introduce a personal mobility product to the market in 2023 that offers an all-new mobility experience

Improved standard of living for people who
cannot afford a motorcycle and providing
services that enable them to earn a stable living• S tart Mobility as a Service businesses in India and Nigeria• S upport startups that provide safe transportation and logistics services and contribute to the access of fundamental
services
Manufacturing•C ommercialize automated transport between factories in 2022 with the aim of expanding the business overseas
by 2024•A
 chieve global sales of collaborative robots for automating tasks that require repetitive or heavy human laborby 2023

Successful commercialization of new technologies in the manufacturing, agriculture, andmedical sectors that are driving efficiency gains

Agriculture• S ell a system linking aircraft to smart agriculture as a project for the Ministry of Agriculture, Forestry and Fisheries• E stablish laborsaving technologies and businesses for cultivating and monitoring orchard crops in the United States,
Australia, and other countries

Human capitalmanagement

Medical• S ell new cell handling devices featuring even higher accuracy
 ffer antibody detection services to determine treatments appropriate for the patient
•O

20

Risks
• L oss of human resources due to reduced opportunities fordiverse human resources to play active roles• Increased competition for human resources
Opportunities•C reation of new opportunities by promoting diversity andinclusion• Improving vitality through the hire of diverse and talented
people from around the world

Yamaha Motor Co., Ltd. Integrated Report 2022

Diverse humanresources for increased
corporate strength

A

R

T

Maximize engagement and performanceby allocating talent in a timely and appropriate manner from a global perspective

Assigning the right person to the right assignment, regardless of gender, nationality, or
ethnicity, and moving the business forward while
respecting diverse views• Increase the ratio of local talent in executive positions at overseas subsidiaries to at least 55%• Implement around 10 global inter-subsidiary transfers by the end of 2024•R
 aise the ratio of women managers Groupwide to at least 13% by 2024
• Increase the ratio of a headquarters employee engagement score to at least 70%

Yamaha Motor Co., Ltd. Integrated Report 2022

21

Medium- to Long-Term Strategies

Medium-Term Management Plan (2022–2024)

Growth Strategies 

Review of Previous Medium-Term Management Plan (2019–2021) 
In setting out to realize the Long-Term Vision we proclaimed in 2018, the first three-year Medium-Term Management Plan from 2019 to
2021 comprised two main pillars: growth strategies aimed at achieving net sales of ¥2 trillion and an ROS of 9%, and the reinforcement ofmanagement foundations. While the management environment changed dramatically due to the COVID-19 pandemic and led to us
lowering the ¥2 trillion numerical target, we did achieve record-high net sales and operating income.
Growth Strategies 

Reinforcement of Management Foundations Despite differences in the growth of existing business fields by businessand area, there was a general surge in the recovery of demand from thesummer of 2020 onward from the environment shifting to one of “livingwith COVID-19.” The pandemic created an adverse business environment
fraught with lockdowns and difficulties in procurement, production, andlogistics operations. However, all our major subsidiaries and departments
made self-driven efforts to adapt under a management ethos of focusing
on the break-even point, engaging in flexible production, enacting various
cost reduction measures to offset rising costs, curtailing expenses, and soforth. These efforts ultimately increased our corporate resilience.
We have narrowed our development of new businesses down to four
fields: mobility services, low-speed automated vehicles, medical & healthcare, and agricultural automation; and have developed each business fromthe seed-sowing stage through to commercialization. Despite being unable
to take actions as planned due to restrictions on travel, in the fields ofmobility services and low-speed automated vehicles, we were able toprogress from the seed-sowing stage through to sales generation.

We have been working on our digital transformation (DX) and carrying out
structural reforms for our global production scheme. On the DX front, we
worked to overhaul our sales, development, and manufacturing departments
as well as our global enterprise resource planning (ERP) system, making
progress in each area. In overhauling the ERP system, we found it moredifficult than expected to transition our current methods and systems to the
new system, and are working to address the issues that emerged. Moreover,
our sales departments staged a rapid response to the lockdowns brought onby the pandemic by speedily launching e-commerce sites. They have also
introduced connected models and apps and begun analyzing the dataacquired. The development departments have endeavored to raise productivity via digital technologies, such as driving greater use of NX modelingsoftware for product development and utilizing model-based systems engineering (MBSE). Our manufacturing arm put forth its Smart Factory initiativeand is implementing AI-based data analysis methods, shifting to automation,and striving to save on labor.
Regarding the global structural reforms to our production system, we
made progress in consolidating or closing factories in Europe, Taiwan, andIndia, and took the first steps to optimize our production scheme in Japan.
With production demands changing day by day and production fluctuations
to respond to, things remain difficult, but we have still made steady progresswith our forward-looking reforms.

The main growth driver over the period of the new Medium-Term Management
Plan is our existing businesses. However, with societal demands and thebusiness environment pushing things like CASE and carbon neutrality, theexpected figures for future growth can greatly differ by business. We will
clarify and stratify the positioning of our businesses based on demand trends,
where we have competitive advantages, our strategies, and other factors,
and then strategically allocate management resources among them in ameasured way.

Reinforcement of Management Foundations 
We will continue promoting our DX initiatives and the structural reforms to
our production system. Our DX is employing digital technologies to bolster
productivity and efficiency and this has started to produce results, but wehave yet to reach the realm DX is originally about: transforming businessmodels and how we work by using digital technologies. As we build upon
the foundations that we successfully constructed under the previous
Medium-Term Management Plan, we will also spark a transformation in theways we work, the way we sell our products as the relationship with ourcustomers changes, and more.
In terms of structural reforms to our production system, we will continue
steering the optimization of our factories in Japan and at those comprising
our ASEAN production operations while carrying out reforms at our factories
in the United States. At the same time, we will incorporate measures to

Net Salesbusiness environment, the rising awareness of sustainability, and the needfor transformation, we will continue with the growth strategies and reinforcement of management foundations that we have pursued until now
under the new Medium-Term Management Plan, but while also strengthening our response to sustainability.

GrowthIn fiscal 2024

2,200 billion

Profitability(Three-year average)(¥ billion)
Towards achieving the Long-Term Vision

20

2,000

16

1,500

12

1,000

8

500

Previous Medium-Term
Management Plan

New Medium-Term
Management Plan

0

New Medium-Term
Management Plan

7.5%

Over

Efficiency(Three-year average)–8
Net sales

22

2010

2011

Operating income margin

Yamaha Motor Co., Ltd. Integrated Report 2022

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022
(Forecast)2024(Target)

ROE

ROIC

ROA*2

15% range

9% range

10% range

Financial and Non-Financial Indicators We are committed to growth, profitability, efficiency, and shareholder returns
as financial indicators, and have set aiming to create value in a new mobility
society as a non-financial indicator. Through our initiatives to achieve these,
we will simultaneously enhance our environmental, social, and economic
value, thereby ultimately raising our corporate value and making the
Yamaha brand shine.

Convert to
Carbon-Neutral
Powertrains• Develop a wide varietyof powertrains• L aunch 10+ BEV
models• P owertrains compatible
with alternative fuels

Shareholder
Returns

Cumulative total for thethree-year Medium-Term
Management Plan period

40% range*1 Average compound annual growth rate for FY2021–FY2024*2 ROA is calculated based on operating income

Shift toEnergy-Saving /Carbon-Neutral
Facilities

Accelerate
Co-Creation• Exploratory
development in new
mobility fields• Accelerate
exploration efforts(¥10 billion environmental tech fund)• Accelerate launch of
new businesses
contributing to a moresustainable world• Introduce energysaving and carbonneutral equipment to10+ countries• Begin using carbonfree electricity in Japan

Connecting with People andThriving as a Company

Safety Riding andPeace of Mind•B
 olster safety riding

Total Payout Ratio(Three-year average)–4

Initiatives to reduce greenhouse gas (GHG) emissions to counter climatechange are an unavoidable issue for the Company as a manufacturer andseller of vehicles for personal mobility. Our measures include developing not
only all-electric vehicles but also fuel-cell vehicles driven by hydrogen, andinternal combustion engines powered by carbon-neutral fuels. Technologicalinnovations from here onward are also expected to accelerate the practicalapplication of these technologies and give birth to new methods for reducing
GHGs. Meanwhile, we are pressing forward with our work to develop practical applications for what we see on the horizon right now—electric powertrains, fuel cells, and carbon-neutral fuels—while simultaneously exploringnew possibilities as we proceed step by step towards our target of carbon
neutrality by 2050.

9%

Capital Efficiency (approx. 7% WACC)

4
0

2009

7%

Previous Medium-Term
Management Plan

(%)

2,500

2008

Over

Operating Income Margin

Net Sales / Operating Income Margin

2007

CAGR*1

Over ¥

Basic Policies
We will strengthen the earning power of our core businesses,
invest in new and growing businesses that contribute to the creation of a sustainable world, andaccelerate digital initiatives and co-creation to boost our growth potential.

Initiatives for Sustainability Contributing to aMore Sustainable World

Financial Indicators

Overview of the New Medium-Term Management Plan 
Under our corporate mission to be a Kando Creating Company, we will
work to realize our Long-Term Vision of ART for Human Possibilities bycarrying out our new Medium-Term Management Plan from 2022, as phasetwo of the Company’s ongoing transformation. In recognition of thenumerous challenges that must be addressed, including changes in theaddress immediate business continuity plan (BCP) issues and thereby raise theoverall level of our BCP in the fields of production and procurement.

support features•E xpand support andactivities for improving user riding skills(1.6x more YRA
participants)*3

Accelerate Digital
Transformation•C onnect withcustomers worldwide• 4.7 million Yamaha
Motor ID registrants)• Creation of DX
promotion personnel(1,200 people by2024)

Increase Global
Workforce Agility• Foster employee
engagement globally• Introduce global
engagement indicators(improve by 10% at
headquarters)*3 Yamaha Riding Academy participants (three-year cumulative)

Yamaha Motor Co., Ltd. Integrated Report 2022

23

Medium- to Long-Term Strategies

Medium-Term Management Plan (2022–2024)

Direction of Our Business Portfolio Strategic Business Fields 

For 2022 onward, we have clarified and stratified the positioning of ourbusinesses based on sales growth rate and ROIC, and will manage ourbusiness portfolio to appropriately allocate management resources.
The new business and growth businesses are positioned as “strategic
business fields,” to which we will strategically allocate management
resources to grow them into future core businesses. Our core businesses are
the motorcycle business, recreational vehicle (RV) business, marine products

business, and golf car business. We aim to increase their profitability as ourcurrent sources of cash generation. Our KPI for these is operating income
margin, for which we are targeting a three-year average of 11%. We
intend to identify the businesses that require structural reforms from aperspective of scale and profitability over the period of the new MediumTerm Management Plan.

Strategic Business Fields
New Businesses

P.26–27High

New Business Fields

Generate net sales through commercialization¥30 billion by FY2024

Sales growth rate

New Mobility Fields

P.25

Robotics Business*1
SPV Business

Mobility services / Low-speed automated vehicles /Medical & healthcare / Agriculture

Strengthen our
structure to
generate
net sales

Growth Businesses

Increase
investments andexpand scale

Expand scale (Sales growth rate)
CAGR FY2018–2020 14%

FY2021–2024 19%

Low

High
ROIC

Structural Reforms

Determinebusiness
direction

Core Businesses

P.29, 31, 33

Motorcycles / Marine Products
Recreational Vehicles / Golf Cars
Generate stable cash flows
ROS FY2019–2021 9.6%

Generator and Multipurpose Engine Business
Determine the direction of thebusiness from the perspective of
scale and profitability

Generate cash flows
Scale × profitability(Sales) (ROIC)

Maintain /improve
profitability

FY2022–2024 11%*2
Low

Expansion of Resource Investments in Strategic Business Fields 
Based on this portfolio management, we will expand investment of resources in our strategic business fields, aiming to increase development and growth strategy expenses by 1.6 times and capital investment by 1.8 times, compared with the period of the previous Medium-Term Management Plan.

Capital Investment Plan(Three-Year Total)¥280.0 billion¥400.0 billion¥323.4 billion
73.6

1.6x

115.0

Strategic
business fields

45.0¥178.9 billion

181.1

1.2x

225.0

Core businesses

Strategic
business fields

1.8x

24.4

Robotics BusinessSupporting the Foundations of a Digital World, Further Expanding Business Scale as a Growth Business, andStrengthening Profitability
The markets for surface mount technology (SMT) systems, small industrial
robots, and semiconductor back-end processing equipment are projected to
grow at an average rate of 7% per annum. In these growing markets that
support the infrastructure of an increasingly digital society, we will further
expand our business scale and fields of operation to strengthen our earnings capability.
Yamaha Robotics Holdings Co., Ltd. (YRH) was acquired during theprevious Medium-Term Management Plan and we have completed thepost-merger integration. During the three years starting from 2022, we aretargeting an increase in overall earnings capability with a CAGR of 16% fornet sales through synergies with YRH, and an operating income contribution rate of 25% from YRH as well.
One of the first major steps we will take is maximizing synergies as a
total supplier. On the product front, we will strengthen product competitiveness by driving our platform strategy. Furthermore, we will focus on
introducing new models in the high-speed SMT model domain while in thefield of small industrial robots, we will enter the market for cobots. On thesales front, we will enhance the appeal of our One-stop Smart Solution,
while working to capture major accounts through a dedicated client-based
sales team that covers multiple regions and offerings.
Our second initiative is to strengthen manufacturing, sales, technology,
and service structures. We will make investments to raise production

capacity with an eye on expanding the business by increasing our factory’s
production area by 1.8 times by 2024. We will also further improve on ourstrengths in technologies, sales, and services carefully tailored to client
worksites and operations.
Through these two initiatives, we will raise the number of businessnegotiations, increase the unit price per project, and raise the rate of placedorders, aiming to expand our business and strengthen profitability.

Robotics Business Contributions
Net Sales

Operating Income
YRH profit
contribution

CAGR 16%

25%
YRH
2021

2024

10%

YRH

2021

2024

SPV Business
Capturing Market Expansion and Achieving Growth through Synergies between e-Kit Customization and New Models

Financial Services business acting tosupport core businesses

Note:	The reportable segment classification of existing businesses under business portfolio management is as follows:
Land Mobility: Motorcycle business, Recreational Vehicles business, Smart Power Vehicles business
Other Products: Golf car business, generator and multipurpose engine business*1 Including surface mounters, semiconductor manufacturing equipment, industrial robots, and industrial-use unmanned helicopters*2 ROS is calculated using figures that do not include corporate expenses

Development and Growth Strategy Expenses Plan(Three-Year Total)

Growth Businesses

140.0Core businesses

The global COVID-19 pandemic caused a significant shift in human mobility
patterns, towards focusing on closer destinations and avoiding crowded
situations. This has led to a sharp increase in demand for compact personal
mobility. In addition, rising environmental awareness has driven 18%
annual growth in the e-Bike market in Japan, the United States, and Europe
and this market growth is expected to continue towards 2030. In Japan,
the United States and Europe, market scale in 2024 is expected to surpass
10 million units, and the Company will focus on the top three e-Bike
categories: E-CITY, E-TREK, and E-MTB models.
We will respond to this market expansion by harnessing synergies
between e-Kit customization and the launch of new models, aiming forscale expansion outpacing market growth in order to double net sales. We
are projecting an annual unit sales growth rate of 22%. In order to stage
this business scale expansion faster than the market’s growth, we will begin
customizing our e-Kits, conducting co-development of e-Kits with the
e-bike manufacturers that use them, start local production of drive units in
Europe where the market is the largest, and aim to acquire new overseas
e-Kit customers by providing direct services via our own dealer network in
Europe. In addition, we will aim to double net sales by developing newcompact, lightweight, quiet, high-value-added drive units and expanding
our lineup with mid- to high-range Yamaha-brand e-bikes.

Market Potential

Total demand in Japan, the United States, and Europe(Yamaha Motor forecast)

CAGR
18%

2020

2021

Consistent market
growth toward 2030

2022

2023

2024

2030

Key Themes

Scale Expansion Exceeding Market Growth (CAGR 22%)
• Acquire new overseas e-Kit* customers

Double Net Sales• High-value-added e-Kits that are compact, lightweight, and quiet• Expansion of mid-range and high-end Yamaha-brand model lineup

1.4x
97.3
95.0

24

68.7

60.0

2019–2021

2022–2024

Yamaha Motor Co., Ltd. Integrated Report 2022

Others

57.2
18.5
2019–2021

Platform reforms

3.2x

Others* e-Kit: e-Bike Systems (e-bike drive units and peripheral components)

60.0
2022–2024

Yamaha Motor Co., Ltd. Integrated Report 2022

25

Medium- to Long-Term Strategies

Medium-Term Management Plan (2022–2024)

New Businesses

Low-Speed Automated Vehicles

Co-creation

Aiming to create added value through mobility and enrich people’s lifestyles

Background of and Policy for New Businesses
Yamaha Motor began the manufacture and sale of motorcycles in 1955,
then using its small-engine technology to diversify into offering products forthe water, snow, and in the air as it expanded its business. With the diversification of its products and business expansion, the Company’s employees
have always been motivated by a desire to create new dimensions of fun
and a desire to solve customers’ issues. By moving out onto the front lines
around the world and interacting with local colleagues and customers, wehave developed better products. Our outboard motors are a good exampleof this approach. While we are a market leader today, our products were at
one time subject to endless complaints and had a terrible reputation as
machines leading to financial losses for the company. So we went out onto
the waters of Japan and overseas, recording the different sights, sounds,
and smells picked up by our senses, and then working with onsite colleagues to make repeated improvements in order to achieve the market
position we enjoy today. This kind of thinking is deeply embedded in how
we search for and invest in external partners through Yamaha Motor
Ventures, Inc., which works on developing new businesses for theCompany. Through joint ventures with partners that share our aspirations,
we are working to create new value by leveraging each other’s strengths
toward our corporate mission of “Offering new excitement and a more
fulfilling life for people all over the world.”

The new businesses we are working on are in fields that contribute to
the resolution of our materiality issues: “environment and resources,”“transportation and industry,” and “human capital management.” Ourinitiatives contribute to the three focus areas under the Long-Term Vision:
Advancing Robotics, Rethinking Solution, and Transforming Mobility.
Furthermore, under the new Medium-Term Management Plan, we havepositioned new businesses under our strategic business fields, aiming tostrengthen our systems for creating future core businesses and to generatesales. Specifically, we are working towards commercialization aiming for net
sales of ¥30.0 billion for mobility services and low-speed automated vehicles by 2024 and a contribution to our sales from the medical & healthcare
and agricultural automation fields by 2030.
The Company has a strong tradition of exploring and understanding
issues that it should solve through dialogue with numerous partners atwork in the field around the world. It is personnel who have this experiencethat are the source of new value creation. The four fields in our new businesses are also areas where we aim to create value through dialogue withexternal partners, and in doing so, we will develop human resources aroundthe globe who are able to continuously create future businesses in a sustainable manner. This is another reason why we have positioned our new
businesses as strategic business fields and are actively allocating management resources to them as we aim to achieve the aforementioned targets.

Transition to sales acquisition stage

Accelerate business development

Mobility services / Low-speed automated vehicles

Aim for ¥30.0 billion in
net sales by fiscal 2024

Push initiatives toward commercialization
Medical & healthcare / Agricultural automation

Mobility Services
Creating employment opportunities through business and contributing to a better quality of life for people

Co-creation

Local platform operators

Societal Issues

Core Technologies

Focus Areas

Job creation

Asset management expertise cultivated in the
Financial Services business andconnected technologies

Emerging markets

Societal Issues

Mobility needs

Local governmentsCore Technologies

Focus Areas

Chassis development expertise garneredthrough golf cars

Automation of indoor/outdoor transport at plants
Mobility for people with little to no access topublic transportation, such as seniors, children, andresidents of depopulated areas

Commercializing Transport of Goods via Joint Ventures andConducting Feasibility Studies for Public Transit Options
By establishing automated driving technologies under certain conditions, we aim to save labor in logistics and solve mobility
issues, such as in areas with no access to public transportation. In transporting goods, we have been conducting real-world
testing at several Yamaha Motor plants through eve autonomy, Inc., a joint venture we have with Tier IV, Inc. And in the first caseof implementation outside our own plants, we have begun field testing at the Anesaki Works factory of Prime Polymer Co., Ltd.
We plan to start providing services officially around autumn of 2022. In transporting people, we have been promoting community building employing “slow mobility” and creating uniquely Yamaha value in mobility by providing compact, low-speed formsof mobility such as our electric carts for first/last-mile mobility solutions. In doing so, we aim to solve important societal issues
such as transportation, health, and industrial development, as well as introduce fun to the value of mobility itself. In 2021 we
provided vehicles for field tests in 16 locations across Japan.

Medical & Healthcare

Co-creation

Reducing the burden on researchers with reliable technology and contributing to advances in the medical field

Industry–academia
collaborations

Societal Issues

Core Technologies

Focus Areas

Preventive medical andhealthcare

Ultra-high-speed, high-precision picking andimaging technology forsurface mounting systems

Medical and research equipment
Research and drug discovery automation

Creating Synergies with the Medical Device Business in the Field of Laboratory Automation
The impact of the COVID-19 pandemic on the cellular research and diagnostic fields has propelled individualized treatments suchas cellular medicine and gene therapy forward. Moreover, with the aging of populations in developed economies, the market forcontracted pharmaceutical development and contracted pharmaceutical manufacturing is expanding. Yamaha Motor aims todevelop and expand the market by launching services that target both transmissible diseases and aging. In the field of healthcare
and research equipment, the CELL HANDLER™ combines picking and imaging technologies to realize cell handling that was notpossible with conventional methods. In addition to greater market penetration of the CELL HANDLER™ and enhancement of the
product, we will also launch services in the research and drug discovery automation fields, and work towards commercializingthem. Furthermore, in addition to sales of the unit itself, we will also collaborate with medical institutions to start an antibody
profiling service that can be used to detect antibodies and use them in diagnosis and drug selection.

Agricultural Automation
Achieve increased productivity, laborsaving, and automation in industrial fields

Co-creation

Producers

Societal Issues

Core Technologies

Focus Areas

Labor shortage in
agriculture

Chassis development expertise
Robotics expertise

High-value-added crop industry
Advanced countries with high labor costs

Expanding Asset Management Business with Local Partners and Collaborators in India and Nigeria
Among our customers in emerging markets who work with motorcycles, a certain number of them borrow motorcycles fromtheir employer and provide labor. We have established an environment that enables the use of motorcycles without purchasing
them as a business, and we are working in collaboration with startups to build an ecosystem that creates jobs. In 2021, weestablished new companies in India and Nigeria, and started an asset management business as a local joint venture. This scheme
enables customers to boost their standard of living while securing a stable income by acquiring mobility. At the same time, theCompany can increase its sales as a service-based business for customers who have previously been unable to purchase a motorcycle with their own funds.

26

Yamaha Motor Co., Ltd. Integrated Report 2022

Collaborate with Agri-Startups and Adopt a Strategic Approach for the Value Chain
In saving labor in the agriculture field, we aim to provide solutions that combine our chassis development and robotics
expertise with AI, and maximize value through the cultivation, storage, and distribution chain. Through the activities of
Yamaha Motor Ventures, Inc., which deals in corporate venture capital, we have invested in startups in the field of smart
agriculture and have fostered joint development. In the United States, we will strengthen our collaboration with investee
companies and build supply and service systems with an eye on expanding the business during the current Medium-Term
Management Plan period.

Yamaha Motor Co., Ltd. Integrated Report 2022

27

Medium- to Long-Term Strategies

Land Mobility

Future Measures 

Creating New Kando through Synergy between Motorcycles,
Recreational Vehicles, and Smart Power Vehicles•W orldwide customer base that trusts Yamaha technology and products•D iverse and global product lineup combining both high performance and quality throughour cultivated core technologies

Strengths•E stablished global brand position for motorcycles•P edigree of constantly pioneering new markets by creating new forms of mobility•E xpansion of middle-income markets in ASEAN and other emerging economies•G lobal rollout of models compliant with emissions regulations

Opportunities•E volution of marketing through digital technologies• Surge in outdoor family recreation

For fiscal 2022, we expect to see continued strong demand in Europe
for motorcycles for developed markets, and an ongoing recovery indemand in emerging markets. The Company plans to increase production and sales, but there are risks, such as high raw material prices andsupply shortages of semiconductors and other components. We will
therefore continue working to build stable supply systems, pass on
price increases, and improve cost efficiency. Moreover, in the recreational vehicles business, we plan to increase our brand strength andexpand market share in the recreational segment, our main focus.
There are risks in the form of component shortages and logistics issues
in North America where our production facilities are located, but wewill strive to minimize missed sales opportunities as we did last year. In
the SPV business, despite the same risk of component supply shortages as the motorcycle business, demand is projected to continue
expanding and we are forecasting sales growth through an expansionof sales of both OEM and Yamaha-brand products.
From a medium-term perspective, one of our themes is to generatesynergies between the three businesses of motorcycles, RVs, and SPVs.
Our goal is to deliver solid profits with our core business of motorcycles and double the sales of SPVs, a growth business for us. By
generating synergies, we will deliver new Kando in mobility.

• Prolonged pressure on product supply networks due to pandemic and geopolitical risks• Rapid global advance of carbon neutral regulations

Risks

Core Business (Medium-Term Strategy of Our Business Portfolio)• Tighter emissions regulations in each country• Structural shift in the industry from new technologies and competitors

Motorcycle Business: Increasing Earnings Power in Emerging Markets with the Premium Segment Strategy

Results for Fiscal 2021 
Net sales for fiscal 2021 were ¥1,179.7 billion and operating income
was ¥68.7 billion. The motorcycle business in developed markets
experienced continued solid demand, while progress on structuralreforms steadily reduced losses. Furthermore, in the motorcycle business in emerging markets, although demand has yet to recover to2019 levels in Southeast Asia and India, the implementation of our
premium segment strategy led to the average price per unit increasing.

In the RV business, operations returned to profitability due to thegrowth in demand for outdoor recreation and the flagship Wolverine
RMAX Series models for the recreational segment. In the SPV business,
we have steadily increased sales amid market expansion mainly inEurope—the largest market—where there has been a reevaluation of
the advantages of bicycles.

Net Sales / Operating Income / Operating Income Margin

Net Sales Breakdown by
Main Product Category(Fiscal 2021)(¥ billion)

(¥ billion)

1,500

90

5.8%

5.1%

1,000

60

Recreational
vehicles

9.6%

Smart Power Vehicles

4.3%

One of the themes in our new Medium-Term Management Plan is to“Leverage the recovery in demand and our premium segment strategy
to improve profitability.”
Overall demand in Asia has yet to recover to pre-pandemic 2019
levels. Our first step over the next three years will be to accelerate
initiatives in anticipation of a recovery in demand. In ASEAN markets
and in India, we will target the upper-middle class, which is expected
to grow rapidly over the next 10 years, and ramp up our premium
segment strategy even more than before to solidify our advantages. As
we aim for higher unit sales growth, we will carefully map out strategic segments in each country and not only offer attractive products
but also launch stronger brand marketing initiatives to create firm ties
with customers.

For customers in this segment who, through digital media, value
individuality, and self-actualization, we will combine the digital andreal worlds to implement our One-to-One Marketing approach, targeting each individual customer in order to expand our range of touchpoints and to strengthen the relationship with our customers. To
accomplish this, we want to expand sales of connected motorcycles to
2.5 million units by 2024. We also plan to roughly double the numberof premium dealerships in India, which serve as real points of contact
with our customers.
As we aim to improve profitability by forging ties between customers and the Yamaha brand by using digital technologies, we will accelerate the implementation of our premium segment strategy targetingthe upper-middle class in India and ASEAN markets.

Market Potential

Premium Segment Strategy

Developed market
motorcycle business

21.1%

Post-COVID demand recovery
Total demand in Asia (million units)

500

40

30

2.0%

–20%

30
0
Net sales

2020

2021

Operating income (right axis)

2022 (Forecast)0

Operating income margin

Philippines: Premium AT models0

Honda, Suzuki, Kawasaki,
Harley-Davidson, BMW, Ducati, Triumph,
KTM, Aprilia, Piaggio, KYMCO

28

Motorcycles for
emerging markets

Despite the effects of a resurgence in COVID-19 infections, increased unit sales of premium
segment models helped improve the model mix.

Honda, Suzuki, Kawasaki, Hero, Bajaj

ATVs / ROVs

The North American market accounts for the majority of demand. Despite the resurgence of COVID-19 infections, the strong outdoor recreation demand continued.

Polaris, BRP, Honda, Kawasaki

Yamaha Motor is the pioneer of e-Bikes, and the current reevaluation of the advantages
bicycles have for getting to and from nurseries, schools, and offices helped keep sales ofcomplete Yamaha-brand bicycles for Japan and e-Kits (electrically power-assisted bicycle
drive units and peripheral components) for Europe strong.

Panasonic, Bosch, Shimano

Yamaha Motor Co., Ltd. Integrated Report 2022

2021

2024

Strengthen customer touchpoints with digital tools（India / Indonesia / Philippines）
100

Upper class80

Approx.
1.8xUpper-middle class60

Middle classRealize One-to-One Marketing
Expand sales of connected motorcycles*2
Fiscal 2021 500K units Fiscal 2024 2.5M units
Promote store visits and aftersales support using smartphone apps

Strengthen premium brand shops

40
20

2.0x
1.3x
1.5x

Integrated Marketing (Digital × Real World)
2020

Expansion of the upper-middle class*1 in Asia

Main competitors

Electrically power-assisted
bicycles and OEM drive units

India: Premium sport models

+37%

10

Overview of Primary Products and Main Competitors
Market and conditions at Yamaha Motor

Unit sales growth in strategic segments (compared with fiscal 2021)

Indonesia: Premium AT models2019

Growth in overall demand amid reevaluation of the advantages of motorcycles. Demandin the second half of 2021 recovered from the impacts of lockdowns imposed in the firsthalf and unit sales increased overall. On the other hand, securing adequate supply waschallenging due to the shortages of semiconductors and shipping containers.

Focus on strategic segments in major Asian markets

20

Emerging market
motorcycle business

65.0%

Motorcycles fordeveloped markets(India / ASEAN / Taiwan)

India: Open more Blue Square stores

Low-income class

Number of dealerships: approx. 2x (compared with 2021)

0

2000

2021

2030

*1 Annual household disposable income of US$15,000–30,000 *2 In Indian, ASEAN, and Taiwanese markets
Note: Upper-middle class data from Euromonitor International

Yamaha Motor Co., Ltd. Integrated Report 2022

29

Medium- to Long-Term Strategies

Marine Products

Future Measures 

Reliable and Rich Marine Life—A Business that Further Increases the Value of the Ocean•U nquestioned product reliability centered on integrated control technologies•O verall business strength supported by wide-ranging business domains and an
expansive product lineup

Strengths•S ales and service capabilities spanning the global market•G rowing demand for large outboard motors centered on developed markets•E xpansion of peripheral equipment business due to advances with integrated
control technologies

Opportunities•C hanging sense of value pertaining to marine recreation spurred by staycation demand

Under the business policies of our new Medium-Term Management
Plan, in 2022, we aim to strengthen both the competitiveness of our
products and the earnings power of our businesses, while expanding
the range of value we offer customers.
In our growth fields, we aim to quickly bring CASE-related products
to market by accelerating development of integrated control technologies for boats. We will do this by strengthening the role of R&D in the
United States to supplement our existing development functions andclosely coordinate with Siren Marine, which we recently acquired. With
regard to our existing offerings for outboard motors and personal
watercraft—core assets of the Marine Products business—we will

expand our lineup by proceeding with development of attractive
products that meet customer needs. Moreover, we will continue toincrease production capacity in order to meet the strong market
demand, operating at maximum capacity and ensuring reliable productsupply. In 2022, we expect to surpass last year’s record-high performance with net sales of ¥432.0 billion and an operating income of¥90.0 billion.
Despite the continuing rapid changes in our business environment,
the Marine Long-Term Vision remains the same. We will follow thecoordinates set out by the Vision to carry out our growth strategies
and aim to realize a “reliable and rich marine life.”• Dramatic market changes against the backdrop of climate change, rapid technologicalinnovation, etc.

Risks

• Supply chain disruptions and high costs for raw materials and logistics

Core Business (Medium-Term Strategy of Our Business Portfolio)• Rapid changes in exchange rates, regulations, etc.

Marine Products: Implement our Marine CASE strategy to expand the range of value we offer and to maintain/
strengthen our high-profit structure

Results for Fiscal 2021 
In 2021, the final year of the previous Medium-Term Management
Plan, we worked to strengthen the high-profit business structure andbuild platforms for sustainable growth.
Under the system supplier strategy, which we positioned as a
growth strategy, we started full-scale introduction of the Helm
Master™ EX and expanded sales of peripheral equipment. In addition,
we acquired smart boat technology company Siren Marine, Inc. in the
United States to further expand our business. In the outboard motor
business, the bedrock of our high-profit structure, we have continued

working to increase production capacity to meet the high demand forlarge outboards, driven by staycations. In addition, as a first step indeveloping new products related to the future target of carbon neutrality, we launched our HARMO next-generation electric boat control
system in Europe.
By steadily carrying out these activities, we achieved our annual
business targets with net sales of ¥391.1 billion and an operating
income of ¥76.8 billion, despite supply chain disruptions such as
shipping container shortages and component provision delays.

Net Sales / Operating Income / Operating Income Margin

Net Sales Breakdown by
Main Product Category(Fiscal 2021)(¥ billion)

(¥ billion)

600
450

20.8%
19.6%

15.4%

50

150

2020

2021

Operating income (right axis)

2022 (Forecast)Outboard motors

45.6%

54.4%

0

Operating income margin

Maintain and strengthen our
high-profit structureMarket and conditions at Yamaha Motor

Main competitors

Outboard motors

Outdoor and family recreation demand surged after lockdowns, mainly in developed
markets. We will increase production capacity to meet the increase in demand.

Mercury Marine, Suzuki, Honda, Tohatsu

Boats

The domestic boat market is relatively stable and we will offer higher-value-added pleasure-use boats. With Sea-Style and our other service-based businesses, we will strengthen
our development of services in line with customer preferences.

Yanmar, Toyota, Suzuki

Personal watercraft

The North American market accounts for the majority of demand and is growing in scale
yearly as uses for personal watercraft broaden. We will strengthen development ofhigh-value-added products.

BRP, Kawasaki

Yamaha Motor Co., Ltd. Integrated Report 2022

Transform our customers’ marine
lifestyles into experiences withgreater comfort and peace of mind

Connected

Autonomous

SharedElectric

Comfort

Comfort / Easy

Experiences

ComfortEnhancing Our Business CompetitivenessOverview of Primary Products and Main Competitors

30

Marine CASE

Expand the range of value we offer

Personal watercraft,boats, etc.

250Second, is enhancing our business competitiveness. In this area, wewill maintain and strengthen our high-profit structure, and by bolstering
our lineup of large outboards with new models, we will further expand
our product lineup and increase the sales ratio of large outboard models
to 30%. In addition to this, we will continue increasing our production
capacity for these large outboards as well as personal watercraft.
Finally, we will reinforce our business foundations by strengthening
the R&D role of the United States and further enhancing our productdevelopment arrangement in order to be flexible and thrive in this era of
rapid change.
We will evolve into a business that further increases the value of theocean by maintaining and expanding our strengths while also achieving
future growth.

Growth Strategies
75

300

Net sales

100

By implementing the Marine CASE strategy, the Long-Term Vision for
the Marine Products business is to expand the range of value it offers
and maintain/strengthen its high profit structure while also allocating
resources for business growth at the same time. To achieve this, we will
introduce the following three measures over the next three years.
For our growth strategies, we will carry out the Marine CASE strategy
to transform our customers’ marine lifestyles into experiences withgreater comfort and peace of mind. In particular, for the “C” or“Connected” part of CASE, we will work together with Siren Marine, acompany in the United States we acquired last year, to develop systems
allowing customers to remotely monitor and operate their boats fromtheir smartphones. This will provide them with greater peace of mind
and help expand the value we offer.

Bolster large outboard lineups
Increase the sales ratio of large outboard models to 30%
Increase production capacity
Large outboard motors
Personal watercraft

+20%
+27%

Reinforce Our Business Foundations

MarineLong-Term Vision
Reliable andrich marine life:
Toward further
increasing thevalue of the ocean

Organizational culture that connects change to growth
Strengthen R&D role in the United States

Maintain our high-profit structure and allocate resources for growth at the same time

Yamaha Motor Co., Ltd. Integrated Report 202231Medium- to Long-Term Strategies

Robotics

Financial Services

Results for Fiscal 2021 

Putting Kando into the Hands of Clients with Robotics—Delivering Optimal Solutions•H igh-quality, low-cost, and timely provision of products and services throughunified production, sales, and technology operations•A mixture of technologies via business integration with YRH and provision of complete
solutions for clients•C o-creative capacities founded on strong relationships with business partners

Strengths•G rowing need for automation due to labor shortages in Japan andrising labor costs in emerging markets•P rogression of digitalization accompanying the development of new fields such as IoT, 5G,
and CASE vehicles, and advances in automation

Opportunities• Difficulty in procuring semiconductors and other components as well as soaring prices• Deterioration of demand due to changes in world affairs• Intensifying competition resulting from new players entering the market

Risks

Results for Fiscal 2021 

Future Measures 

Net sales in fiscal 2021 increased 44.9% year on year to ¥120.3 billion
and operating income was ¥17.6 billion. During the first half, capital
investment became more active as the effects of COVID-19 subsided,
particularly in China. Unit sales of surface mounters and industrial robots
increased due to strong sales in Japan, Europe, and the United States inthe second half of the fiscal year. In addition, Yamaha Robotics Holdings
Co., Ltd. also returned to profitability due to strong sales and structuralreform effects. Sales of industrial-use unmanned helicopters and drones
increased due to broader applications and the acquisition of a
distributor business.

Future Measures 

Demand in China and other developed markets is expected to recover.
To promote further business growth, we will make proactive resource
investments—including the expansion of our production capabilities—andaccelerate the creation of business integration synergies, such as the development of new products based on the platform strategy and cross-selling.
In the unmanned systems field, we will proceed with the development of new unmanned industrial-use helicopter and agricultural drone
models. We will also kick off the manufacturing of small, jointly developed drones for aerial photography and filming. In addition, we will
promote further technological development through collaborations withoutside partners.
Growth Businesses (Measures in the Medium-Term Management Plan)

Net Sales / Operating Income / Operating Income Margin(¥ billion)

14.3%

150

14.7%

(¥ billion)

20

120

16

90

12

60
30

8
4.0%

YamahaRobotics Holdings
Co., Ltd.

SMT-related
equipment,
industrial robots,
unmanned
systems

27.2%

72.8%

0
2020

2021

Operating income (right axis)

Operating income margin

Market and conditions at Yamaha Motor

Main competitors

Surface mounting technology(SMT)-related equipment

Demand continues to grow for printed circuit boards, including those for IoT, 5G, and CASE applications. We are pursuing both product and service commonalities under our platform strategy to expand
our business scale and reinforce our profitability.

Fuji Machine, Panasonic,
ASM Pacific Technology,
JUKI, Hanwha Techwin

Industrial robots(factory automation)

Automation needs are rising rapidly amid soaring personnel expenses and labor shortages. We arestrengthening model variations while pursuing both product and service commonalities to expand ourbusiness scale and reinforce our profitability.

Epson, Mitsubishi, Denso,
IAI, Inovance

Unmanned industrial-use
helicopters and drones

We are launching multirotor drones in addition to our proven unmanned helicopters and willcontribute to laborsavings in agriculture. We will also promote expanded applications for unmanned
vehicles in fields outside of agriculture, such as logistics and field surveys.

DJI

Semiconductor
post-processing equipment

Semiconductors are becoming increasingly scarce. We are working to further build our customer baseby building a seamless collaborative system that offers one-stop proposals that cover the entire
semiconductor manufacturing process.

ASM, Besi, K&S, Towa

Yamaha Motor Co., Ltd. Integrated Report 2022(¥ billion)

(¥ billion)

60

30
39.4%

40

25.5%
16.4%

20

0
Net sales

2020

20

10

2021

Operating income (right axis)

2022 (Forecast)0

Operating income margin

Financial Services: Building the frameworks for supporting existing businesses

2022 (Forecast)

Overview of Primary Products and Main Competitors

32

Net Sales / Operating Income / Operating Income Margin

Core Business (Medium-Term Strategy of Our Business Portfolio)

40
Net sales

Net Sales Breakdown by
Main Product Category(Fiscal 2021)

P.25

In 2022, an improvement in market inventories is expected to see arecovery in the scale of receivables from wholesale financing, and we
aim to expand the outstanding receivables balance by 14.3% year on
year to ¥430.0 billion. Meanwhile, operating income will decrease
relative to the previous year in the absence of a one-time increase
factor, but the operating income margin is expected to maintain ahigh level at 25.5%. With this, we are aiming to reach the target ROA
of 3% in the new Medium-Term Management Plan covering2022 to 2024.
We are working to further strengthen systems for collaboration withproduct-selling businesses in every region in order to capture newcustomers and encourage them to continue using our products andfinancial services. Furthermore, we will also aim to establish financing
businesses in new markets and engage in new development by
expanding the range of products eligible for financing, as well as
strengthen cooperation between major subsidiaries in order to establish a global business management system.

The consolidated outstanding receivables balance rose to ¥376.2
billion, as an increase in receivables from retailers absorbed a decrease
in receivables from wholesalers due to shrinking market inventories. In
terms of profit, operating income was ¥19.1 billion, partly reflecting
the one-time impact of a reversal of allowance for doubtful accounts.
The significant increase in profitability reflected factors such as theenhancement of financial services business foundations in each region,
centered on the expansion in scale of the outstanding receivables
balance via a provision of a full line of services in the United States
starting in 2020.
With the emergence of new trends in sales financing services,
including the shift to online sales due to COVID-19, we worked tostrengthen the ties between dealerships and customers while steadily
promoting the sharing of business strategies and management
approaches as well as standardizing and enhancing them in regions
worldwide. The Financial Services business also became independent ofother sections and began to disclose its business results information.

Building upon the expansion of business domains and regions carriedout under the previous Medium-Term Management Plan, such as thelaunch of full-line services in the United States and the launch ofservices in France, under the new Medium-Term Management Plan, we
will focus on strengthening our global business management foundations and securing profitability based on this move. We will ramp up
the roles and management systems in each region, while promoting
the development of business in new regions and expanding the rangeof eligible products. At the same time, we will proceed with establishing functions and systems for the management and development of
the business globally, such as sharing the use of resources between
Group companies, from knowledge and expertise to human resources.
Through initiatives such as these, by 2024, the final year of the new
Medium-Term Management Plan, we aim to grow the outstanding

receivables balance to a scale of ¥500.0 billion and maintain ROA in
the 3.0% range. Moreover, we will disclose our business results so that
more stakeholders can better understand our business.

Build a System for Global Business andAim for ROA in the 3% Range• Regional expansion in South America, Europe, etc.
• Business domain expansion to marine products• Build a global business management system• Independent disclosure of Financial Services business results

Yamaha Motor Co., Ltd. Integrated Report 2022

33

Medium- to Long-Term Strategies

From the Director in Charge of Corporate Planning and Financial Affairs

The new Medium-Term Management Plan calls for allocating ¥480
billion in resources for building business foundations, core businesses,
and strategic business fields, leveraging these to accelerate future
growth initiatives and our work toward carbon neutrality. Furthermore,
our shareholder return policy will still emphasize making consistentand ongoing dividend payments but while also taking into consideration the outlook for business performance and investments for future
growth. We will also distribute returns to shareholders in a flexible way
based on the scale of our cash flows, with a target total payout ratio in
the 40% range for the cumulative three-year period of the new MediumTerm Management Plan. The acquisition of treasury stock announced
following the Ordinary General Meeting of Shareholders
in March 2022 was a show of management’s firm commitment togenerating shareholder returns.

Based on our business portfolio
management, we will push with our growthinvestments and further our progress towardachieving our Long-Term Vision.

Motofumi Shitara
Director and Senior Executive Officer

Cash Flows
Cash-In

Cash-Out
Shareholder returns¥160 billion –Growth investments¥100 billion
Working capital¥100 billion

Net income¥400 billion –Depreciation expenses¥170 billion –Capital expenditures¥280 billion

Invest ¥480 billion into building business foundations
and our core and strategic businesses

Review of the Previous Medium-Term Management Plan
Fiscal 2021 was the final year of the previous Medium-Term
Management Plan (2019–2021) and the Company posted the highest
performance figures in its history, with net sales of ¥1,812.5 billion, an
operating income of ¥182.3 billion, and a net income attributable toowners of parent of ¥155.6 billion. In terms of the financial indicators
we set as KPIs, the Company in fiscal 2021 achieved an operating
income ratio of 10.1%, a three-year average ROE of 12.8%, and an
equity ratio of 46.9%.
However, Yamaha Motor’s corporate mission is not to maximize
profits but to be a Kando Creating Company, and it can be said thatthe new Medium-Term Management Plan dutifully points us in theright direction for achieving our Long-Term Vision for 2030 of “ARTfor Human Possibilities: Let’s strive for greater happiness.” I believethat we must not allow ourselves to be content solely with our business results and instead ask whether or not we made clear forward
steps toward our Long-Term Vision over the last three years.
Keeping that in mind, I will go over our business performance infiscal 2021. Like in fiscal 2020, the COVID-19 pandemic continued tocast a dark shadow on the global economy, but demand for our main
products, such as motorcycles and outboard motors, remained robust.
With these and other external factors serving as a tailwind, the selfdriven and on-target decision-making done by each of our major
subsidiaries and various departments led to successfully capturing

demand, while the Company as a whole also worked to improve on
our break-even-point management style. Additionally, the expenses
saved due to the travel restrictions put in place helped effectively raise
the figures for both net sales and profits well above those from theprevious fiscal year. In terms of improving profitability and putting ourfinancial foundations on surer footing, the higher efficiency and productivity levels yielded through digitalization as well as the structuralreforms made to the Company’s global production scheme were major
contributors.
With the effects of the pandemic shrouding the world in a sense of
seclusion, Yamaha Motor’s products drew attention not only as tools
for personal mobility but also as items for leading a more fulfilling
lifestyle. It was a year in which we were able to realize anew that our
products do indeed contribute to the happiness of people worldwide,
and this truth was shown in our business performance. However, theshortage of semiconductors, the rising cost of raw materials, logisticalissues, and other developments were significant factors in us being
unable to meet the full expectations of our customers. Under the new
Medium-Term Management Plan (2022–2024), we will unfurl our sails
to catch the current gusting tailwind of demand and further our
progress toward achieving our Long-Term Vision.

Direction of Our Financial Strategy
In the new Medium-Term Management Plan, we set the targets for
our financial indicators from the three perspectives of growth, profitability, and efficiency. With growth, the goal is to record over ¥2,200
billion in net sales and a CAGR of over 7%. For profitability, our target
is a three-year average operating income margin of over 9%, and for
efficiency, we set a goal to continuously generate returns exceeding anassumed WACC in the 7% range on average over a three-year period.
In addition, we aim to construct a corporate structure for sustainably
delivering an ROE in the 15% range, an ROIC in the 9% range, and an
ROA in the 10% range.

34

Yamaha Motor Co., Ltd. Integrated Report 2022

Next, regarding our balance sheet management, our policy in theprevious Medium-Term Management Plan was to strike a balance
between investments for growth and returns to shareholders within
the range of our cash flows while maintaining the earnings power ofexisting businesses. Based on this policy, we emphasized making
consistent and ongoing dividend payments, particularly in step withimprovements to our financial health. As a result, our financial foundations were significantly reinforced, but at the same time, a factor inthis achievement was our inability to make investments for future
growth exactly as we had planned.

Growth Investments Based on Business Portfolio Management
At the heart of the new Medium-Term Management Plan is theapproach to managing our business portfolio (details on page 24).
Allocation of our management resources will be conducted basedon this portfolio management and we will proactively expand ourresource investments in strategic business fields. Compared to theprevious Medium-Term Management Plan, we will bolster development expenses and growth strategy expenses by 1.6 times (¥41.4
billion more) to ¥115 billion, and raise capital investment by 1.8 times(up ¥10.6 billion) to ¥45 billion. This move represents how we will put
lessons from the previous Medium-Term Management Plan to workand raise the effectiveness of measures.
Additionally, the standards for making growth investments willprioritize whether or not they are in line with the Long-Term Vision.
There are three pillars to the new Medium-Term Management Plan:

the first is to strengthen the earnings power of our core businesses;
the second is to accelerate our investments in new and growing businesses that contribute to the creation of a sustainable world; and thethird is to employ digital technologies and expedite co-creation with
our partners to boost our growth potential. Further, we added“Sustainability” alongside the themes of “Growth strategies” and“Reinforcement of management foundations” that have guided
previous Medium-Term Management Plans, and this decision wasmade because we believe the Company will be unable to continue
existing as one willingly chosen by customers should we not give due
concern to the environment and sustainability. To that end, we willprioritize our decision-making for growth investments around whether
they have the potential for making meaningful contributions to society
at large.

Forecasts for Fiscal 2022 and Future Outlook
To briefly summarize the Company’s outlook for fiscal 2022, we expect
the demand environment to remain favorable and forecast sales acrossall our businesses to surpass those recorded in fiscal 2021. In terms of
expected costs, we have accounted for the impacts of the shortage ofsemiconductor components and the effects of soaring costs for raw
materials, logistics, and more, both which have persisted since fiscal
2021. To successfully weather this environment, our capacity to carryon with and fully institute our break-even-point management style
while at the same time enhancing product competitiveness and driving
our premium segment strategy forward will be called into question.
But through such initiatives, we will aim to post record-high net sales
and operating income numbers for the second consecutive year.
The COVID-19 pandemic has drastically altered people’s values, while
the increased pace of digitalization is heavily influencing customer
purchasing behaviors. With people now able to obtain the same information worldwide regardless of time zones, marketing methods haveclearly changed as well. The Company intends to accurately gauge
these various changes in order to update our business practices andincrease efficiency, and this is an area where establishing our break-evenpoint management style can demonstrate the fruits of our labor—in
terms of financial health and success—to everyone. But it is also criticalthat we contribute to the creation of a more sustainable world at thesame time. My role is to cultivate the seeds of growth we have sownand to orient our work around the financial foundations further
strengthened through the previous Medium-Term Management Plan.
It is vital that we ask ourselves if our products and services truly
make our customers feel they gain greater happiness with a Yamaha.
I believe that doing this should naturally result in the Company achieving sustainable financial growth. As such, we will endeavor to bringourselves closer in line and in sync with the values our customers
hold—especially as COVID-19 becomes more endemic—and properly
communicating that fact to all of our stakeholders is how we will
share the progress we make toward achieving our Long-Term Vision.

Yamaha Motor Co., Ltd. Integrated Report 2022

35

Medium- to Long-Term Strategies

Initiatives to Achieve Carbon Neutrality

Climate Change Risk and Opportunity Assessment and Financial Impacts (Disclosure Based on TCFD Recommendations)

In May 2019, Yamaha Motor announced its support for the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD). Since then, we have been taking steps to track and manage climate change-related opportunities andrisks that could affect our business in order to incorporate adaptive and mitigative climate change measures into our­business strategies. As environmental regulations tighten and the move to decarbonization accelerates around theworld, the Company revised the CO2 emissions targets in the Yamaha Motor Group Environmental Plan 2050 (hereinafter,“Environmental Plan 2050”) in fiscal 2021. We are now continuing to move forward with initiatives to achieve carbon­­neutrality while offering new excitement and a more fulfilling life for people all over the world.

In developing its strategy to achieve carbon neutrality by 2050, Yamaha Motor refers to the SSP1-1.9, SSP1-2.6, and SSP3 scenarios of theIntergovernmental Panel on Climate Change’s (IPCC) 6th Assessment Report and Nationally Determined Contribution (NDC) scenarios in order toaddress uncertainty (risk) factors. We have identified and assessed short-, medium-, and long-term risks and opportunities as well as their impact
on our businesses, strategies, and finances. Based on the results, we have developed specific numerical targets for 2030 (and 2035) and havedecided to strengthen our climate change efforts and accelerate our 2035 reduction targets for Scope 1 and Scope 2 emissions.
Short-term: Impacts our immediate financial performance (including the potential to emerge over a timeframe of 0–3 years)
Medium-term: Requires significant adjustments to our strategy (including the potential to emerge over a timeframe of 3–6 years)
Long-term: Fundamentally affects the viability of our long-term strategy and business model (including the potential to emerge over a
timeframe of 6 or more years)Type

The Board of Directors formulates policies on dealing with issues
concerning sustainability and regularly reviews their implementation
status. With regard to issues concerning sustainability, the Board of
Directors oversees the Sustainability Committee, which meets threetimes a year and is chaired by the president and chief executive officer
and comprises executive officers appointed by the Board of Directors.
For these issues, we positioned the environmental field in particular
as an important area to be tackled by management and establishedthe Environment Committee, chaired by an executive officer in chargeof environmental activities. The Environment Committee meets threetimes a year to discuss policies concerning the environment and vision
for the future, assess Environmental Plan 2050, and conduct annual

reviews of each operating division’s progress against its targets. The
committee reports its findings to the Board of Directors at least twicea year.
Based on the 2021 review of Environmental Plan 2050, the convening of the Sustainability Committee was changed from twice a year to
three times a year in order to bolster efforts toward carbon neutrality,
and the Environment Promotion Meeting was newly established as
an organization under the Environment Committee. In addition, KPI
performance for materiality issues, including climate change, and ESG
external evaluations are linked to the remuneration of executives andother senior managers to encourage effective initiatives.

Transition Risks

Climate Change-Related Governance 

Subject of Assessment

Policy and
legal
SSP1

Increase in development costs to comply withexhaust emission and CO2 emission standards
in each country and territory

Policy and
legal
SSP1

Increase in operating costs due tointroduction of carbon tax
The Company manufactures motorcycles, itscore business, at 27 bases in 16 countries,
mainly in the ASEAN region. Energy fromfossil fuels is used in processes such as
casting and painting.

Technology
SSP1

Board of Directors

Sustainability Committee (three times/year)
Chair: President and chief executive officer
Members: Executive officers with specific posts

Stipulation of basic policy on climate change response
Stipulation of important matters related to climate change

Environment Committee (three times/year)
Chair: Executive officer in charge of promoting environmental activities
Members: Seventeen persons responsible for promoting activities in each business anddepartment (progress reports by three chief general managers of business operations)

Environment Promotion Meeting (monthly)
Persons responsible for Companywide promotion

Information management

Companywide policy

Environmental investment

Deliberation and review of basic policies and important matters related toclimate change• Scenario analysis and assessment of climate change risks and opportunities• Setting greenhouse gas reduction targets and managing progress

Opportunities

Each business department
Procurement Center
Manufacturing Center
Manufacturing
Technology Center

Technical Research &Development Center
Corporate Planning &Finance Center

Bases andsubsidiaries

Promotion managers

Promotion managers

Promotion managers

Promotion managers

Execution

Execution

Execution

Execution

Carbon Neutral Technology Review Subcommittee

36

Yamaha Motor Co., Ltd. Integrated Report 2022

Short
term

Manufacturing Center and the environmental facility division:
Collect information on regulatory trends concerning energy ineach country and territory
Environment Committee: Deliberates and discusses energyrelated investment plans, how to procure renewable energy,
and other matters
Board of Directors: Receives a report following a review by theManagement Committee

Fossil fuel energy costs in fiscal 2021:¥3.8 billion
Tax burden increase assuming a ¥13,400/
metric ton carbon tax on CO2 emissions
from business activities, calculated based on
fiscal 2021 CO2 emissions: ¥6.7 billion/year*

Since the procurement and cost of small batteries is an issue,
a consortium has been established in cooperation with othercompanies in the industry to develop common battery standards and infrastructure with a view to mutual-use batteries,
and activities to promote the wide adoption of electric models
have been launched.

Group R&D expenses in fiscal 2021:¥95.3 billion

Environment Committee: Receives reports from each operating
division on regulatory trends in each country and territory
Board of Directors: Receives reports on specific sales strategies
after each operating and functional division discusses anddetermines how to respond

Net sales from motorcycle business infiscal 2021: ¥1,016.5 billion

Corporate Communication Division’s Investor & Shareholder
Relations Group: Holds company information sessions for private investors as well as consultations for institutional investors

Market capitalization at the end of
fiscal 2021: ¥954.2 billion

Mediumterm

Risk of decreased sales of motorcycles withinternal combustion engines (ICE) due to aban on fossil fuel vehicles in cities
Risk of lost sales opportunities for electricmotorcycles due to delays in thedevelopment of charging infrastructure

Long
term

Reputation
SSP1

Risk of being assessed by investors and otherstakeholders as providing inadequate
information disclosure

Medium
term

Acute
SSP3

Risk of extreme weather events affecting
operations

Mediumterm

Chronic
SSP3

Risk of long-term extreme weather conditions affecting operations and sales

Long
term

Type

Companywide information integration and overall promotion• Companywide information integration and review of Companywide policies• Review of environment-related budget allocation• Review of environment-related resource allocation• Review of credit trading policy• Collection and sharing of external information• Progress management of environmental measures, etc.

Execution

Land Mobility
Marine Products
Solution BusinessPhysical Risks

Supervisory

Net sales of ICE models in fiscal 2021:¥1,643.5 billion

Short
term

Markets
SSP1

Supervision of climate change response

Status of Response

Regulations and certification division: Collects information
about regulatory trends in each country and territory
Environmental Regulation Management Committee: Works toaccelerate decision-making on the advance development oftechnology to address the tightening of regulations and on thedevelopment of powertrains

Increase in cost of technology to support
electrification of compact mobility vehicles

Process for Managing Climate Change Risks 
Climate change-related risk management is integrated into the Group’s overall risk management framework. Each year, the Environment
Committee manages the progress of goals and targets for specific initiatives as business strategies to address the risks and opportunities
identified by each business and functional sector. It reports the results to the Sustainability Committee, which is composed of the same members as the Management Committee, and to the Board of Directors.

PeriodSubject of Assessment

PeriodResource
efficiency

Improvement of energy efficiency inproduction processes

EnergysourcesUse of renewable energy at
manufacturing plants

Products/
services

Expansion of development of
low-carbon products
Expansion and promotion of
BEV product lineup

Mediumterm

Markets

Expansion of demand for our product lines in
response to energy mixes and government
policies in each country and territory

Short
term

Execution framework to achieve each department’s targets• Establishment of a promotion manager in each department• Setting targets for each department• Incorporation into each department’s medium-term environmental plan
• Carbon Neutral Technology Review Subcommittee duties• Review of business risks and sales strategies, etc.

Resilience

Financial Impacts

Assess impacts on operating facilities based on the frequency
and intensity of extreme high temperatures or heavy rainfall on
land as assessed in the IPCC’s 6th Assessment Report

Status of Response

Expansion of opportunities to provide
solutions that meet the needs of eachcountry and territory

Short
term

Access to new markets and territories with afocus on the environmental field

Mediumterm

Increase in earnings from products and services that are compatible with each country
and territory’s energy policies and diverse
energy sources

Long
term

—

Financial Impacts

Implement theoretical-value-based production globally

Energy efficiency budget for
fiscal 2021: ¥1.5 billion* Setting the internal carbon pricing at¥60,000 /metric ton

Utilize solar power globally
Utilize CO2-free electricity at the headquarters

Solar power investment budget for
fiscal 2022: ¥900 million
CO2-free electricity at headquarters:¥400 million/year

Launch 10 BEV models by 2024
Expand R&D facilities for electrification and carbon-neutral
fuels by 2024

Increased earnings due to demand for
low-carbon products

Short
term

Short
term

* Based on carbon tax price projections for2030 in a report by the Carbon Pricing
Leadership Coalition (CPLC)

Launch NEO’s electric scooter and HARMO next-generationelectric boat control system for Europe—

Start mobility service business in India through collaboration
with MaaS operators

Moto Business Service India Pvt. Ltd.
established: ¥1.1 billion in capitalMarket forecast for motorcycle sharing
services in India in 2025: ¥11.7 billion

Establish an investment fund specializing in the environment
and natural resources field

Total amount under management:¥10 billion (investment period: 15 years)

Expand R&D facilities for powertrains compatible withelectrification and carbon-neutral fuels by 2024

Medium-term (2022–2024) investment
budget: ¥2.4 billion

Yamaha Motor Co., Ltd. Integrated Report 2022

37

Medium- to Long-Term Strategies

Initiatives to Achieve Carbon Neutrality

Reduction Performance(Disclosure Based on TCFD Recommendations)

Scopes 1 and 2
FY2010 (base year)

Emissions (metric tons)

 iming for Supply Chain Carbon Neutrality: Achieving Scope 1 and Scope 2
A
Reduction Targets Ahead of Schedule Breakdown of CO2 Emissions for the Entire Supply Chain

Scope 1 and Scope 2 Targets

Scope 3 Targets

Generators /OthersSnow blowers
9%/ Multipurpose
engines7%

Rawmaterials
15.9%
2021 life cycle
CO2 emissions

Outboard
motors19%

28.9
million t-CO2–15%

FY2021

635,071553,923

529,513

540,105

442,533

500,903

51.2

33.2

31.6

32.4

30.1

27.6

—

35.2%

38.3%

36.7%

41.2%

46.1%

Reduction rate(compared to FY2010)

Scope 3

* Category 11:
Use of sold products

FY2010 (base year)

FY2017FY2018FY2019FY2020

FY2021

Emissions (metric tons)

34,046,049

25,753,328

25,963,326

23,859,974

19,624,372

23,237,944

Emissions per unit
(metric tons/unit sales)

4.36

4.00

3.76

3.57

3.67

3.71

Reduction rate(compared to FY2010)

—

8.3%

13.8%

18.1%

15.8%

14.9%

Yamaha Motor’s commitment to achieve carbon neutrality by 2050 isalso incorporated into its Medium-Term Management Plan, the firstyear of which is fiscal 2022.
To reduce CO2 emissions in our corporate activities, we will introduce
energy-saving and renewable energy equipment in more than 10
countries and, in 2022, adopt CO2-free electricity, starting with businesssites in Japan. With regard to Scope 3 emissions, i.e., emissions generated from product use, raw materials, transportation, disposal, etc., bycustomers and employees, we will accelerate electrification through ourplatform strategy and also promote development for compatibility witha variety of powertrains (power sources). Moreover, we intend to gradually enhance our R&D facilities to realize these goals.
Furthermore, to accelerate the carbon offsetting efforts needed toachieve our goals, we have established an investment fund specializingin the environment and natural resources field. The fund is planned tooperate for a period of 15 years and will fast-track ventures into
technologies and business models that contribute to sustainability.

–38%

2035:
Carbonneutrality
achieved
early

–90%

Scope 1 andScope 252% reduction in CO2 emissions in fiscal 2024*1 (compared to fiscal 2010)• Deploy energy-saving and renewable energy equipment in more than 10 countries by 2024
• Adopt CO2-free electricity in 2022, starting with business sites in Japan cceleration of electrification through aA­platform strategy
2010

2021

2030

2035

2050

Employ internationallyrecognized carbon
offset methods

Base
year

2010

Increased focus on ESG factors in investing
Transition to cleaner energy mixes

2030

2035

Platform Strategy

2050

Note: Reduction targets for the combined emissionsof our major product categories (motorcycles,
outboard motors, industrial robots, etc.)

Greater efforts for nationally determined
contributions among countries / territories

External
Environment

2021

Improve Monozukuri efficiency and ensure compatibility with a wide
range of power outputs*2 by narrowing down major component types

Employ internationallyrecognized carbon
offset methods

Motor

Institution of carbon taxes and stricter
environmental regulations

Expanded regulations for vehicle electrification

Scope 3

Other powertrains

Transition to cleaner energy mixes

Greater
expansion

Wider use of carbon-neutral fuels(biofuel, hydrogen, synthetic liquid fuel, etc.)–2024

Specific
Measures

Application of theoretical-value-based energy approach(energy-saving activities)

Improvement of ICE fuel efficiency

Utilization of renewable energy sources (solar power, etc.)

Expansion of
BEV product lineup

Equipment upgrades andproduction process reforms
Use of electricity and non-fossil-fuel sources tomeet equipment heat demand
Carbon offsets

38

Yamaha Motor Co., Ltd. Integrated Report 2022

Specific
Measures

Battery

Launch 10+ BEV models by 2024

Tightening of regulations for
ICE fuel efficiency

External
Environment

MCU*3

Promotion of BEV models

Responding to the diversification of energy sources

BEVs
FCVs
HEVs
Hydrogen

ICE

Base
year

 romote development across a variety ofP­powertrains (Expanding R&D facilities for carbonneutral technologies)

Electric

–24%
–92%

FY2020Priority Initiatives in the Medium-Term Management Plan Note: Calculations have been made using the Emissions Unit Value Database (Ver. 3.2)
based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions
Throughout the Supply Chain (Ver. 2.4, issued Mar. 2022) issued by Japan’s
Ministry of the Environment.

–46%
–80%

Motorcycles
65%

Category 11
Use of sold products
80.2%

CO2 emissions per unit

Carbon neutrality
achieved

Category 11
Breakdown by
Product

Scope 3
98.3%

Other
2.2%

FY2019Powertrain

CO2 emissions per unit

Electricity used
Scope 2
1.2%

FY2018Emissions per unit
(metric tons/sales:¥100 million)

Looking at CO2 emissions throughout Yamaha Motor’s supply chain, we
see that Scope 1 and Scope 2 emissions—those emitted as a direct resultof the Company’s business activities—only account for 1.7% of total
emissions, whereas Scope 3 emissions—those from the Company’s value
chain—constitute 98.3% of emissions. The largest component of our
Scope 3 emissions is Category 11 (Use of sold products), which represents
80.2% of total emissions. Of Category 11 emissions, motorcycles comprise 65% of total emissions while outboard motors account for 19%.
At the same time, 80% of Yamaha Motor’s motorcycle sales are in Asia,and by supplying this market with compact, convenient, and affordable
mobility options, we aim to contribute to sustainable growth in accordancewith the United Nations’ Sustainable Development Goals by addressing thedemand for the transportation of goods and services, helping expand thespheres of daily life, and bringing more options and opportunities for
employment and education. Moreover, we look to develop and popularize
more fuel-efficient products to help combat climate change.
With the goal of achieving carbon neutrality on a global scale,
Yamaha Motor aspires to offer products (next-generation mobility
powered by electricity or renewable energy) presenting the most effective means for cutting CO2 emissions based on the government energy
policies and energy mixes of each country.

Fuels used
Scope 1
0.5%

FY2017

Petroleum

BEVs

2025–

e-fuels
2010

2030

2050

 stablish a ¥10 billion environmental technology fund at our venture capital firm in Silicon Valley and explore technologies and businessEmodels that contribute to sustainability
Collaborate with suppliers to promote measures for carbon neutrality and quantifying CO2 emissions with purchased goods

Development of carbon-neutral
fuel-compatible powertrains
Carbon offsets*1 Revised from the 44% target announced in February 2022
*2 Rated 2.5–35 kW and over 350 kW*3 Motor Control Unit

Yamaha Motor Co., Ltd. Integrated Report 2022

39

Medium- to Long-Term Strategies

Digital Transformation Strategy

Initiatives Under the New Medium-Term Management Plan

The Company is advancing its digital transformation (DX) strategy under the “Yamaha Motor to the Next Stage” bannerin order to achieve its corporate mission to be a Kando Creating Company. The Long-Term Vision for 2030 of “ART for
Human Possibilities: Let’s strive for greater happiness” specifies the directions we will take to that end, and our DX
strategy seeks to connect with our customers in order to create more fans of Yamaha Motor and raise our brand value.

Medium- to Long-Term Plan: Yamaha Motor to the Next Stage 
Action Themes
Y-DX3

2019–2021

2022–2024

2025–2027

Search and trial

Building and implementation

Expansion

A Globally Linked Database
As we continue to utilize our management dashboard, we are buildingon the functions of our management database platform, such as
deeper drilldown analysis, expanding the range of products with
forecast demand and refining the units for demand forecast metrics,
as well as adding budget management functions to enhance its utility
as a tool for predictive management.

Global ERP Introduction
The Iwata headquarters is preparing to introduce an SAP accounting
module and will also begin preparations for introducing a sales
distribution module. At the same time, we will also complete theconstruction of a global template for standardizing business practices
at Group companies, and as we utilize it, we will incrementally
introduce SAP to our subsidiaries in Europe and the Americas.

Y-DX2: Strengthen the Present 

Create the
FutureY-DX2

Four core domains and DAP*

Application in four core domains andglobal rollout

Advance and update

Global consolidated database andJapanese accounting ERP

Principal base / distributor ERP

ERP at all bases / distributors

Strengthen the
Present

Y-DX1
Reform Management
Platforms

Short- to Medium-Term (2019–2021) Initiative Progress
Y-DX3: Create the Future

Y-DX2: Strengthen the Present

Y-DX1: Reform Management Platforms

We used a crowdfunding platform to widely promoteawareness of how motorcycles can contribute tosociety, and have started trying to connect andco-create with new customers. Additionally, we
advanced plans for R&D roles and departments
specializing in digital technologies for continuous
innovation.

In light of the COVID-19 pandemic, we accelerated
efforts to strengthen customer touchpoints throughdigital marketing, e-commerce, and other means. We
also introduced more connected outboard motors andmotorcycles to the market, with a particular focus on
global rollouts for motorcycles (approximately 800,000
units as of the end of 2021). We continue to progress
on internal processes, advancing the automation ofmonitoring, transport, work processes, and inspections
at manufacturing sites, as well as internalizing digitaltechnology practices through these processes andbuilding the foundations for digital development.

Operation of our consolidated global database,consolidated accounting, and management dashboard
began in 2022. We also started utilizing a demand
forecast model for predictive management. In terms ofintroducing a new enterprise resource planning system,
we proceeded with the construction of a template thatincorporates standard business processes centered on
accounting and implemented a new accounting systemat the Iwata headquarters. Because this requiredconnecting peripheral systems, the project entailed
more steps than anticipated and plans have been
updated accordingly.

Digital Transformation Strategy Under the New Medium-Term Management Plan 

Y-DX3:Create the Future

Y-DX2:
Strengthen the Present

Y-DX1:
Reform Management
Platforms

DX Human Resource
Development

Yamaha Motor Co., Ltd. Integrated Report 2022

Connected
Working toward “Connected Vision 2030,” we will expand our lineup
of products equipped with connectivity features and accelerate thedevelopment of mobile apps. We will also utilize the data acquired to
improve customer experiences, services, product development, andproduct quality.

Digital Marketing* DAP: Yamaha Motor’s digital data platform

40

Y-DX1: Reform Management Platforms 

Preparations for Next-Generation Value Creation
Construct an R&D framework specializing in digital technology and processes forco-creation with customers and society at large

Connect with Customers and Offer New Experiences
Proactively launch connected products, conduct digital marketing, andtransform into a more customer-centric businessAccelerate Decision-Making and Standardize Processes
Achieve quick decision-making via a globally global consolidated database andmanagement dashboards

Promote Companywide Use of Digital Technologies
Implement practical training programs for producing DX talents and make proactive
personnel shifts to become a company where all employees can utilize digital tools

We will further enhance and expand the development of customer
data infrastructure, data acquisition, and e-commerce websites. At thesame time, we will utilize customer data to provide new experiences
along the customer journey through a combination of physical anddigital world measures.

Smart Factories
By utilizing digital technologies, we will actively promote activities that
improve the quality of theoretical-value-based production under asite’s own direction and expand the ability to internalize such measures. At the same time, we will also boost coordination with the
supply chain and conduct development to promote the transformationof value delivered to our customers.

Additional Business Strengthening
We are also using digital technology to promote the development ofdigital means and demand chain innovation.

Data Analysis
In an effort to propel on-site data analysis, we will strengthen data
security and governance while promoting easy-to-use data management. Furthermore, we will continue to implement data analysis
training courses (over 600 people in 2021) tailored to the purpose andlevel of individual businesses and functional sectors to develop inhouse data scientists who can utilize data in the field.

Y-DX3: Create the Future 
Linking Data
By internally circulating and utilizing the data we acquire, we arereshaping the supply chain, engineering chain, and marketing
methods.

Collaboration with External Ecosystems
We are continuing with preparations to link connected Yamaha
products to other services and IoT devices. By collaborating with otherindustries and co-creating with customers via APIs,*1 we arechallenging ourselves to solve societal issues and create new customer
value in ways unachievable by a company on its own.
*1 API: Application programming interface*2 SDK: Software Development Kit

 onstruct an R&D Framework Specializing in
C
Digital Technology
We will build an R&D framework that specializes in digital technology
and promotes adaptation to new digital technologies andcollaborations with external services.

External
services

Yamaha Motor apps
API /
SDK

API /
SDK*2

YamahaMotor service
gateways

YamahaMotor
products

Other companies’ apps

DX Human Resource Development 
Aiming to be a company where all employees can utilize data, we
actively provide practical education and on-the-job training, shift
human resources, and hire personnel with specialized knowledge.
Through these activities, we are increasing the number of personnel
capable of utilizing, adapting, and applying data, such as tech leads,
programmers, engineers, and data scientists. Increasing this number to

1,200 personnel by 2024 (550 people as of 2022) is a key performanceindicator in our New Medium-Term Management Plan. At the sametime, we will promote various site-led Y-DX2 activities to provide
experience and strengthen IT literacy Companywide so that managers
are able to appropriately judge and promote digital business andin-house activities, as well as further internalize such initiatives.
Yamaha Motor Co., Ltd. Integrated Report 2022

41

Medium- to Long-Term Strategies

Human Resource Development

GET-HR: Global Diversity Promotion 

The energy in a company’s workforce is a critical factor in its growth and that is why we will make employee engagement an important indicator. We will promote diversity and inclusion as well as human resource development as initiatives for improving engagement.

Our Fundamental Beliefs As part of our global business operations, the Company is striving
to create an organizational structure with the agility required torespond to changing and evolving market needs. We believe that
if individual workers and their companies share ambitious goals
and work together to bring about not just business growth but
also personal growth, we can offer Yamaha Kando to customers
without fail. Premised on our fundamental belief that all corporate
activities begin with people, it is essential that our employees
work in harmony and incorporate differing viewpoints and values.
Working to hone individual skills, securing specialists in numerous
technical fields, and applying our expertise in both developed andemerging markets are the types of efforts we believe will lead tofulfilling the Company’s Long-Term Vision for 2030 of “ART for
Human Possibilities: Let’s strive for greater happiness.”
Our new Medium-Term Management Plan is in line with thesefundamental beliefs and designates the employee engagementscore as a KPI, thus we will monitor and conduct ongoing followup on the level of engagement seen among the Company’s
employees. Furthermore, as part of raising employee engagement
and promoting diversity and inclusion, we will increase theMitsuru Hashimoto
Executive Officer
Chief General Manager
Human Resources & General
Affairs Center

number of available options of working styles and strive to be acompany where our diverse workforce plays an active role. To
create an environment where people of diverse backgrounds
gather and excel, we will expand our training programs for leaders in each country, revamp the personnel systems at our headquarters, enhance mid-career professional recruitment, and more.
With human resource development, we will establish frameworks
that provide equal opportunities for personal growth to ouremployees and work to implement new workstyles that takebetter work–life balance into account as part of encouraging
employees to increase their Rev Up time, which aims to enhance
work efficiency as well as enrich their time off.

KPIs in the New Medium-Term Management Plan
Diversity & Inclusion

Human Resource Development

Strive to be a company with an agile and diverse
workforce by increasing the available options forworking styles

Establish frameworks that provide equal opportunities for personal growth to all employees

Local hiring forcore positions*1

55% by 2024

Women in management positions*2

Number of participants in
self-development courses

13

Approx. 5x% by 2024• E xpand global and regional leadership programs•R eform HR management system at headquarters• E nhance mid-career professional recruitment*3• E nhance online and on-demand learning platforms• E ncourage employees to increase their Rev Up time*4

Ratio of Local Hires inCore Positions
From the 50.8% achieved in 2021, we
will continue to bolster management of
successors to core positions and pursue
the KPIs in the new Medium-Term
Management Plan.
70

60

50

Improvement of Employee Engagement

t

re
tu
Fu

Ne
x

24

23

20

22

20

20

Increase the agility of the diverse
global workforce that represents the Yamaha Brand

20

21

40

Next: Planned successors for the next
periodFuture: Planned successors for the future

Introduce common global engagement indicators andconduct periodic follow-up on employee engagement(Ref.) Engagement score*5 at headquarters
FY2021 59% FY2024 70%

42

Yamaha Motor Co., Ltd. Integrated Report 2022

*1 Ratio of local personnel in core positions at overseas subsidiaries*2 Ratio of women among managers at headquarters and overseas subsidiaries*3 Compared with 2019
*4 Aimed at enhancing work efficiency and enriching time off*5 Ratio of employees who responded favorably to engagement indicators

The Global Execution Transformation for Human Resources (GETHR) AXEL initiative was launched in 2021 and continues to focus onempowering women and addressing the issue of gender equality at
Yamaha Motor through its task force member groups. This activity
seeks to establish a shared culture and, through education andglobal engagement, foster practices which give rise to a workforce
representative of the communities in which we operate.

GET-HR Chairperson:
Mitsuru Hashimoto,Chief General Manager
Human Resources & General Affairs Center
Co-Chairperson:
Melanie Tups,
Director YMENV** Yamaha Motor Europe N.V.: Import and salesof Yamaha Motor products in the Netherlands,
marketing of Yamaha Motor products in
Europe, product development, financing, andother businesses

Whilst the initial focus of the committee relates to gender equality, it is positioned within the broader framework of diversity, equity,and inclusion, and the Global Human Resources Development
Division at the headquarters has been tasked with leading therelevant reforms across the global Yamaha Motor Group, including
Japan. The approach is a collaborative one where we will actively
engage with all Group companies to establish a culture of change
and one of embracing our unique diversity.

Diversity and Inclusion Framework
Organizational
mindsetOrganizational culture(Learned behaviors)

Kando Creating Company

Examples ofdiversity types

Gender

Key themes

Accountability

RacialLGBTQ+

Commonlanguage

CulturalRecruitment

Shares experiences(Yamaha DNA)Disability

Religious

Talentmanagement

Age

PDCA

Renewal of Self-Development Support System For employees to continue taking on challenges with vitality andpassion, it is necessary to provide flexible workstyle choices andcareer options. Prospering in the VUCA (volatility, uncertainty,
complexity, and ambiguity) era requires employees to reflect on
and design their own career paths. In support of this approach,
we are developing training structures that further facilitate
employees enhancing their own skills and developing their careerswith greater independence.

This is achieved by increasing the education and training methods available and developing on-demand programs that enable
employees to customize their learning experience in line with theirindividual career orientations and aspirations. To that end, we haveintroduced online programs and lectures for learning the English
language, advanced technologies such as DX and IT, and businessskills. We will continue to expand the curriculum according to thedevelopment needs of employees.

Message from Global HR Development
By applying the many perspectives gained by diversity
to strengthen our foundations, we aim to be acompany that always offers Kando without fail
The Global HR Development Division comprises a team of committed
members reflecting diverse backgrounds, cultures, and professions.
We believe that this approach is fundamental in enabling us tobetter support the needs of our employees and those of the diverse
range of Yamaha Motor’s businesses globally by harnessing themany benefits that our unique diversity offers.
We are focused on the development and implementation of a
Global HR Framework that serves to support and nurture talent tofulfill the mission of facilitating the placement of the right person, at
the right place, at the right time, regardless of nationality and/or
background. Working as One Yamaha together with our colleagues
in Japan and at Group companies all over the world, we both experience and embrace the unity in diversity. The Global HR Development
Division is committed to the development of future leaders that will
be representative of the diversity that is such an integral part of ourculture and our DNA.

Roper Ashley​

Revati​ Upasani​

Yury ​Panteleev​

Yamaha Motor Co., Ltd. Integrated Report 2022

43

Medium- to Long-Term Strategies

Sustainability

We believe that contributing to the sustainable development of society through business activities in line with our­corporate mission to be a Kando Creating Company represents the kind of sustainability initiatives expected of Yamaha
Motor. The Company has positioned sustainability as a key pillar of its management and is kickstarting efforts aimed atbuilding a more sustainable world.

Yamaha Motor Group Sustainability Basic Policy Yamaha Motor Group’s corporate mission is to be a Kando
Creating Company. We aim to offer people all over the world joy,amazement, elation, fulfillment, and happiness through our products and services while maintaining harmony with society and theglobal environment. To achieve this, we will leverage the empathy
arising from connections between people as an engine for creating new value. As a company trusted by society, we will, underappropriate corporate governance, contribute to the resolution ofsocietal issues and sustainable development through innovativeand diverse products and services, in ways that embody theunique style of Yamaha. We ask our business partners to uphold
this policy and act on its basis.
•W e will comply with international rules, laws, and ordinances,
and at the same time, we will work to prevent corruption, andexecute our operations with fairness and integrity.
•W e will respect human rights, will not discriminate, and will notuse child labor or carry out forced labor under any form.
•W e will value our relationships with our stakeholders and disclose information in a timely and appropriate manner.

Customers

We will provide high-quality products and services that can beused safely and with peace of mind by anyone, and will beworking to educate people on the proper ways to use our
products, and spreading this knowledge to create good environments for their use.

Employees

We think that the health and safety of our employees is a foundation of the Company’s growth. We will improve working environments, respect and promote diversity and inclusion, and engage
proactively in talent management. We will also respect the
freedom of association and the right to collective bargaining.

Business Partners

We will have our doors wide open to all partners, regardless ofnationality or size, and with a long-term perspective be engaged
in the achievement of mutual prosperity.

The Environment

We will develop technologies in ways that prevent global warming, and work to minimize environmental loads. Furthermore, wewill undertake the conservation of biodiversity and sustainable useof natural resources.

The Community

We will respect the cultures and customs of each country andregion, and work to achieve harmony with communities.

Shareholders andInvestors

We will aim to enhance corporate value through long-term stable
growth based on mutual dialogue.

Sustainability Promotion Structure 
The Sustainability Committee, chaired by the president and chief
executive officer, and comprising members of the Management
Committee, was established as part of the sustainability promotion structure. The Sustainability Committee deliberates on anddetermines the response to issues related to sustainability andrisk compliance.
The Environment Committee, chaired by the executive officer
assigned to the environment, was established as the subordinate
committee to deliberate on and review, from specialist perspectives, policies and visions for the future concerning environmental
initiatives, medium- and long-term environmental plans, investment, and monitoring.
In regard to sustainability issues other than those related to theenvironment, the Sustainability Promotion Meeting has been
established as the subordinate council of the Sustainability
Committee. Issues are addressed by organizing the Risk
Compliance Secondary Meeting, the Sustainability Secondary
Meeting, and the Global Compact Secondary Meeting for eachissue, with members consisting respectively of persons from
related divisions.

Board of Directors

President, Chief Executive Officer and Representative Director
Seeking of advice /Making of recommendations
Sustainability Committee
Chair: President and chief executive officer
Members: Executive officers with specific posts
Instructions /Submittal for deliberation
Instructions /Submittal for
deliberation

Environment Committee
Chair: Executive officer assigned to the promotion ofenvironmental activities
Members: Business and division activity promoters

Sustainability Promotion Meeting
Chair: General manager, Sustainability Division
Risk Compliance Secondary Meeting
Members: Division managers of divisions in charge of risk management
Sustainability Secondary Meeting
Members: Division managers of sustainability-related divisions
Global Compact Secondary Meeting
Members: Division managers of human rights, labor, and anti-corruption related divisions

44

Yamaha Motor Co., Ltd. Integrated Report 2022

Human Rights Initiatives 
Signing the United Nations Global Compact
In 2017, the Yamaha Motor Group signed the UN Global
Compact, a series of principles proposed by the United Nations.
The UN Global Compact contains principles regarding humanrights and labor, and the signing enables the Company to not only
express the Group’s approach to human rights both internally andexternally but also carry out various activities in order to increase
the effectiveness of compliance with these principles. One ofthese activities was to establish the Global Compact Secondary
Meeting under the jurisdiction of the Sustainability Promotion

Meeting. Those responsible for human resources, procurement,
and other areas related to human rights and labor gather in one
place across divisional boundaries to eliminate issues, consider
new activities, and confirm progress made. Furthermore, Yamaha
Motor actively participates in subcommittees organized by the
Global Compact Network Japan—the Japanese branch of the
UN Global Compact—and are working to improve our in-house
activities through study sessions related to human rights, such as
inviting a human rights special interest group for lectures.

Employee and Group Company Initiatives
Under the Sustainability Basic Policy formulated by the Yamaha
Motor Group in June 2021, we have positioned human rights
as a top priority issue common to all stakeholders. To promote
Groupwide awareness and understanding of this basic policy,
we have prepared versions in 17 different languages andhave received written confirmation of agreement from the
management of each Group company. Additionally, we havecreated explanations for each item to increase transparency forGroup employees.
The Code of Ethics, a set of guidelines for the ethics of Group
employees, specifies that they must not carry out acts that abuseor deny a person’s character according to factors such as race,
nationality, ideals, principles in life, physical characteristics, personality, or relatives, and must not carry out any form of harassment,

including sexual harassment. We are also striving to enhance
employee awareness of human rights through e-learningand training.
Our risk management system, which covers all business units
and subsidiaries under the Group umbrella, has a human rightsrelated component addressing associated risk in our own operations and across the supply chain. We monitor, assess, andformulate measures to mitigate such risk. We also conduct aGroupwide compliance awareness survey each year to gauge howaware employees are about their human rights. We also have areporting line established to enable employees to report a problem right away in the event a situation arises, and we maintainand operate a whistleblowing system.

Supplier Initiatives
We ask our business partners to support the Yamaha Motor
Group Sustainability Basic Policy and request that they act on thebasis of this policy. Additionally, under the Sustainability Guideline
for Suppliers, we created a section on human rights and theworking environment, which specifies respect for human rights,
the prohibition of child labor, the prohibition of forced and compulsory labor, the provision of decent wages, dialogue and consultation with employees, and other issues. To enhance the efficiencyof these requests, we have received written confirmation of agreement from each of our business partners and have distributed andcollected self-assessment questionnaires.
Furthermore, in Yamaha Motor’s biggest market of Indonesia,
we commissioned a third party to conduct trial assessments ofworking environments, including aspects of human rights violations in 2019. In 2021, the assessment was focused on foreigntechnical intern trainees at Yamaha Motor headquarters in Japan,
since the abuse of such workers has gained attention domesticallyin recent years. We conducted a two-stage survey of domestic
suppliers and interviewed three companies regarding their foreigntechnical intern trainees in collaboration with a third-party institution. We were able to confirm that these companies had

established favorable employment and personal relationships withno major issues; however, we also provided feedback and proposals based on the report provided by the third-party institution as areference for making further improvements.

Yamaha Motor Co., Ltd. Integrated Report 2022

45

Activities for Greater Functional Competitiveness

Creative Branding & Design
The Company believes that a vital objective of management is to further raise the value of the Yamaha brand and make itshine. The efforts for accomplishing this will be guided by Takuya Kinoshita, who was appointed Chief General Managerof the Creative Center in January 2022, and will take on the responsibilities of leading the Company’s branding and design
activities. The following pages explain the history of Yamaha Motor’s branding activities and ambitions for the future.

Global Branding PDCA Cycle Yamaha Motor periodically conducts surveys to assess its brand strength using uniform tools at principal bases around the world in order torelay and reflect the results of brand value analyses in its corporate activities. To facilitate these efforts, we hold workshops on our global
branding PDCA (plan–do–check–act) cycle, examine any issues identified, and prepare relevant action plans.

Kando Cycle

Growing Importance of Brands as aManagement Resource Summating
the Company’s Thoughts and Actions

Takuya Kinoshita
Senior Executive Officer,
Chief General Manager ofCreative Center,
Brand Committee Chairman

Yamaha Motor recognizes that its brand is among its most important management resources. As the economic growth of capitalist societies slows, the purposeof companies is being questioned even more and this additional scrutiny isincreasing the role and the scope of influence of brands, which are largely synonymous with the company itself, its values, and its ethics. The growing importance of brands is also being driven by people’s deepening connection with theworld around them and changes in their aspirations and values, as seen in therising interest in environment issues.
The elements that form a brand’s value structure are incredibly intertwined. It
is important that the economic value of a company, e.g., the products and services it offers, the processes that create said products and services, the purposes
and philosophies embodied by these processes, and the values and ethics
espoused all be interconnected with the desires of people and society. In otherwords, brands are an amalgamation of all of the thinking and actions that takeplace within an organization, and it is this amalgamation that gives form to thebrands of the Company as well as those in its businesses and product lines.

• The Kando Cycle describes how we conduct our business from a branding perspective.
• As a Kando Creating Company, we continuously generate new Kando by expanding the linkage of Kando experiences and thereby increase
both our brand and corporate value.
C3

C2

Kando for customers
C1
Build the excitement for
products with the unique styleof Yamaha

Encourage a lastingemotional attachment toYamahaUnderstand andexperience the uniquestyle of Yamaha

B1

Become an
advocate of the unique style of
Yamaha and constantly explain it
to others

Grow potential fans

C4
Y4Communicate theunique style of Yamaha and its
experiences to customers

Strengthen customer ties
and loyalty to Yamaha
through services

Kando for employees
and partners
Y1
Foster employees’ pride
Embody the unique styleof Yamaha

Y3

Y2

Happiness is not something that can be achieved through physicalpossessions alone. Whether it is a motorcycle or a piano, one’s own
desire to improve in ability with such items makes physical possessions
partners for deriving greater levels of joy. By combining such items thatserve as outlets for passion with activities for demand creation andpopularization—part of our traditional approach—we aim to foster abrand that elevates self-improvement into a form of recreation. This is
the desire encapsulated in our “Revs your Heart” brand slogan.
At the same time, we recognize that the value of a brand is constantly reassessed from a social perspective. Accordingly, communication and engagement are imperative for portraying to as many people
as possible our efforts to help resolve important societal issues. We are
therefore promoting communication that defines the principal formsof societal value Yamaha Motor creates as mobility value, time value,and environmental value.

Increase profits per unit, sales volume,
profits, and stock price

C6

Develop technologies,
products, and services with theunique style of Yamaha

Expand investments

Y: Yamaha
C: Customer
B: Business

Branding Activities 
Yamaha Motor has been promoting the decentralization and autonomization of its global brand management. At the same time, we havemade strides in internal branding activities (indicated by the pink square in the Kando Cycle illustrated above) by holding internal Yamaha
Day events each year in July, the month of the Company’s founding, and advancing branding initiatives focused on production, development,
and other functions.

1. Autonomization and Decentralization of
Global Brand Management
Substantial progress has been made in decentralizing global brandmanagement at Yamaha Motor bases across the world. These efforts
have been spurred by online PDCA workshops and the Brand
Ambassador Development Interaction Program supporting theseworkshops.

Emphasizing Media at the Creative Center under the Medium-Term Management Plan
Given the breadth of Yamaha Motor’s businesses and the markets they
serve, a sophisticated management approach is indispensable toensuring the functionality of corporate and business brands on both aCompanywide and individual business basis. We are therefore advancing the following initiatives based on the frameworks of the New
Medium-Term Management Plan, which include the field of design(detailed on the following page).
Our first step will be to stress the role of media at the Creative
Center. Through this approach, we will develop the Creative Center to46

Yamaha Motor Co., Ltd. Integrated Report 2022

provide media functions targeting management and other internal
stakeholders; functions aimed at customers, partners, and othermembers of society; and media venues linking these functions. We arealso moving ahead with the construction of frameworks for effective
incorporation of insight and advice from experts in fields that include
branding and media. Moreover, we aim to support these functions
with a foundation formed by redefining our core value, establishingand following unique indicators, and fostering communication skills.

B3
Increase new customers /interested employee
candidates

C5

Develop partners’ loyalty to theunique style of Yamaha

Communicating the Real Value Delivered to People and Society
Let me first explain the framework of the Yamaha Motor brand. To dothis, we must first understand that Yamaha Motor was establishedby spinning off the motorcycle division from Nippon Gakki Co., Ltd.
(today’s Yamaha Corporation) in 1955. As a result, the Yamaha Motorbrand falls under a larger Yamaha brand that is shared with Yamaha
Corporation. The Yamaha Motor brand is thus a result forged by thesynergies between the traditional assets of the shared Yamaha brandand the individual value Yamaha Motor has generated to date via its
business. To magnify the assets of the Yamaha brand that form thefoundation for the Yamaha Motor brand, we have conducted joint
branding efforts with Yamaha Corporation under the “Two Yamahas,
One Passion” slogan.
With this dual-faceted structure, we hope to grow the Yamaha
Motor brand into one that brings happiness, anticipation, and achievements to all it touches.

B2

2. Internal Branding
For 2021, Yamaha Day was repositioned as an event for promoting
understanding regarding our brand, a departure from its prior function
as a celebration of the Company’s founding anniversary. This change
in emphasis was meant to help every employee better understand ourLong-Term Vision and examine their own relationship to it. Unique
videos were produced in regions around the world to help underscore
this purpose, and at the same time, we have been forging ahead withbranding initiatives focused on production, development, and otherfunctions. The results of these efforts have manifested with positivechanges indicated in employee brand awareness surveys.

Online branding PDCA workshop conducted via web conference between Mexican
subsidiary and Yamaha Motor headquarters in Japan

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Activities for Greater Functional Competitiveness

Creative Branding & Design

Coordinating Four Design Functions, from Value Creation to Communication and Engagement

Design Creation Emphasizing and Broadening Possibilities for People

The Creative Center possesses four design functions: businessdesign, product design, innovation design, and branding design.
These functions are supported by proactive recruitment drives toposition our design teams as a source of creativity along withefforts to broaden the areas in which designers can contribute toinclude new business planning and more.
Looking at each of the four functions, business design involves
sharing and collaborating on the strategies and business models
of business divisions for the purpose of designing projects forundertaking. Product design, meanwhile, entails working together

The processes of design creation are becoming increasingly
diverse. One such process is co-creation, which entails close coordination with stakeholders from the development phase for new
products, services, and businesses. This process of creating andcultivating designs together with stakeholders is expected tofoster understanding and build bonds while also transforming
both B2C and B2B models.
In creating designs, there is nothing that Yamaha Motoremphasizes more than people. Our constant focus on expanding
human possibilities through design is delineated in the Company’swith businesses to shape design strategies and maximize relevant
capabilities. Innovation design employs co-creation functions
to generate value with the aim of developing new businessapproaches. Lastly, branding design is the process of increasing
the number of people with an intimate understanding of the
Yamaha Motor brand through communication and engagement.
This function is used to communicate our raison d’être to customers and society, and to inspire such stakeholders to develop afavorable opinion of the Company. These functions are coordinated to form an intrinsic link between design and functions.

Innovation Design

Product Design

Town eMotion Value Co-Creation

Co-Creation with Research Institutions

Communicating the Unique Style of Yamaha through Our Businesses

The Company is engaged in uniquely Yamaha value creation, verification,and real-world implementation activities that go beyond vehicles to also
contribute to the well-being of people and society through an approachencompassing community development. Having defined themes related
to the state of mobility, extended stays, and the like, we are engaged inco-creation ventures for verifying the effectiveness of our activities together
with local communities, municipal governments, companies, universities,
and other stakeholders.

It is people that feel Kando and judge value. For this reason, we are convinced that research on the essence of value with a focus on people will
help us generate innovation that is truly meaningful for customers. By
combining the experience and sensibilities fostered within Yamaha Motorwith the insight of domestic and overseas research institutions, we areadvancing co-creation activities aimed at realizing such true innovation.
For example, Yamaha Motor’s technology divisions teamed up with the
California Institute of Technology in a joint research venture examining themechanisms through which people perceive the physical world. This project
led to the development of a new technology—now patented in the UnitedStates—that allows drivers to perceive their surroundings more naturally
and without undue burden. In this manner, deep research into people has
the potential to help us design innovations that draw out previously unseen
human possibilities. This is the approach we are taking to propose valuethat exceeds customer expectations.

Product design at Yamaha Motor entails heightening its appeal by utilizing assets in our core business fields while creating value by applying the insight gained inthese core fields to a wide range of growth businesses. Below are some examples of products that embody these approaches.

State ofmobility

Verification

Process of Defining and Verifying Themes

State ofextendedstays

Aozora Library using Green Slow Mobility electricvehicles that operate at speeds under 20 km/h
(Setagaya-ku, Tokyo, 2021)

Moving Object

Verification

Moving Object

ICE

SPV
Fair and vehicle test-ride event encouraging visitors tothink about diverse mobility options and road environments together as a set (Setagaya-ku, Tokyo, 2021;
Kamakura City, 2021)

Mobile parklet integrating the pedestrian walkway withthe road to energize the community (Setagaya-ku,
Tokyo, 2022)

Yamaha Motor Co., Ltd. Integrated Report 2022

Core Business (Motorcycles)

EV

XSR900NEO’s

The XSR900 proposes new motorcycling value while utilizing an engine
and chassis shared with othermodels. With a unique, stylishdesign embodying Yamaha Motor’s
racing heritage, this motorcycle
offers a riding experience thatallows users to have equal amountsof fun whether they are pushing
their limits or taking it easy.

The NEO’s is an electric scooter withan interchangeable battery and isavailable in the European market.
With a chassis alluding to its mobility and a design employing curves toemphasize smooth and comfortableriding, this vehicle exudes Yamaha
Motor’s unique electric vehicle sensibilities and features while presenting
the distinctive look of an electriccommuter vehicle.

Moving Object

Front (0°)

Side (90°)
Improvementof well-being forpeople andsociety48

Long-Term Vision for 2030 of “ART for Human Possibilities: Let’s
strive for greater happiness.” Today, the world is plagued byadversity, from the global pandemic to international conflicts. Thissituation is creating a greater need for feelings of self-affirmationand mutual appreciation. Yamaha Motor is inspired by an aesthetic sense that propels it in its never-ending examination ofwhat constitutes beauty. This quest has seen us create designs forbusinesses, products, innovations, and brands that connect withpeople and society on a fundamental level.

Growth Businesses
Wabash RT
This sport-focused electricallypower-assisted bicycle (e-Bike)
allows riders to hit both the road or
the trail. The Wabash RT’s form also
evokes our motorcycle design philosophy while expressing our status
as a manufacturer of complete
Yamaha-brand e-Bikes with its
design that integrates the framewith the battery and power unit
into one cohesive package.

Robotics

Autonomous Mobile
Robot AFVThis autonomous mobile robot concept model was exhibited at the2022 International Robot Exhibition.
We are designing the ideal form oftransport key to linking productionlines of the factories of the future by
combining robotics with mobility
technologies in order to propose
comprehensive automation
solutions.

Technology allowing people to naturally perceive moving objects approachingfrom behind (the United States patent No. 11,276,182)

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Activities for Greater Functional CompetitivenessResearch and Development
In addition to enacting long-term measures to achieve goals such as carbon neutrality and the introduction of CASEcompatible models, the Company must also respond to manifesting short-term risks that include raw material shortages
and geopolitical incidents. Amidst the precipitous changes that are occurring, it is critical that the Company accurately
grasp its position, strategically allocate resources, and conduct research and development both swiftly and flexibly.
The Company will accelerate its R&D efforts to solve various societal issues as well as trigger change, and byachieving our Long-Term Vision of “ART for Human Possibilities: Let’s strive for greater happiness,” Yamaha Motor willcontinue to offer new excitement and a more fulfilling life for people all over the world.

Companywide Technology Strategies to Create Unprecedented Value 
The present day has been described for some time as the era of
VUCA (Volatility, Uncertainty, Complexity, and Ambiguity), and thebusiness environment around us continues to become increasingly
complex and difficult, with the seemingly never-ending pandemic,
the shortage of semiconductors, and geopolitical issues causing asurge in raw material prices. In such circumstances, we believe that
it is important to respond to various issues with flexibility and agility,
and to rapidly develop and provide hardware and software thatbrings new value. This is in line with our Long-Term Vision of “ARTfor Human Possibilities: Let’s strive for greater happiness.”
Yamaha Motor’s three main domains are the Land Mobility,
Marine Product, and Robotics businesses. The role of the TechnicalResearch & Development Center—which operates as a hub fortechnologies Companywide—is to promote growth by linking coretechnologies from each of these domains and to create technologies
and businesses with the aim of developing new business domains.
In terms of new businesses, we are identifying and advancing
areas that may provide solutions relating to the important societal
issues (materiality) we have identified: environment and resources,
transportation and industry, and human capital management.
It is plain for all to see that technological development today isincredibly complex, and we must use a combination of various technologies in order to create solutions and value unlike anything before.

We are developing Companywide
technology strategies in order toderive optimal solutions from thesecomplex combinations of different
technologies. The first step is toanalyze and recognize our position intechnological fields, ascertaining ourstrengths and weaknesses. Next, bydetermining what added value will
be needed in the future and backHeiji Maruyama
casting from there, we can envision
Senior Executive Officer
the necessary constituent technoloand Director
gies, extrapolate areas that require
Chief General Manager ofTechnical Research &particular focus from the overall
Development Center
map, assign degrees of priority, andallocate management resources
accordingly. To implement this, we will supplement our in-housedevelopment by collaborating with external parties such as othercompanies and universities in order to achieve efficient development,
extend the applicable scope of technologies, and realize rapid deployment. This methodology is described in more detail later in this section, together with some case studies.

Case Study 2: Technology White Paper
Once a year, the items listed below are compiled in a technology white paper as a means of confirming the current and future position of theCompany. The results from this document are used to review research and development and to create new value.
1.	Changes in the external business environment: Ascertaining the current situation with regards to business and technological trends andpresenting outlooks for the future
2.	Intellectual property analysis: Multifaceted evaluation of aspects relating to intellectual property, such as intellectual property landscapes,
patent positions, and new technological areas
3.	Comparative analysis of competitors: Tracking trends among other companies in the same industry and ascertaining levels of influence indifferent industries

External EnvironmentIntellectual Property Viewpoints

Competitor Comparison

Keyword map generated throughtext mining (example)*

Score map for
patent rights holders (example)*

PEST (political, economic, social, and technological) analysis is conducted on fields related to
the Company’s business, such as carbon
neutrality, in order to ascertain trends.

Trends in patent positioning and technologicalfields in new business domains and otherspecific domains are analyzed to ascertain areasof opportunity available to the Company.

Analysis is performed on factors such as businessand technological trends at competitors in order
to ascertain our present and future strengths andweaknesses relative to other companies.

Gauging trends connected to
Yamaha Motor

Gauging opportunity areas
based on patent analysis

Gauging trends
among competitors

Applying Technology White Paper Info and Analysis to New Value Creation
E01

eve auto

Electric Motors for Hyper-EVs

Yamaha Motor will progressively introduce the E01,
an 8.1 kW class electric scooter using a fixed(non-removable) battery design, to Japan, Europe,
Taiwan, Indonesia, Thailand, and Malaysia forreal-world proof-of-concept testing from July 2022.
We have set a goal of reducing Scope 3 CO2emissions by 90% by 2050 compared to 2010, andthe E01 is a strategic electric vehicle in order to help
achieve this goal.

The eve auto transport service employs electricvehicles and was developed to meet the needs forautomated transport. The service has started afull-scale trial operation at Prime Polymer Co.,
Ltd.’s Anesaki Works plant, the first time it has
been deployed outside Yamaha Motor factories.
In low-speed automated driving—one of the new
businesses in our new Medium-Term Management
Plan—we are establishing automated driving
technologies for use under specific conditions tocontinue the commercialization goods transportation and achieve laborsaving in logistics.

Yamaha Motor is supplying Subaru Tecnica
International Inc. (STI) with electric motor units for
the STI E-RA hyper-EV it is developing for future
motorsport. Through the adoption of highefficiency segment conductors, the casting andmachining technologies Yamaha Motor has
accrued through engine development, and more,these motors achieve high output while retaining
compactness.

Case Study 1: Theme and Resource Management
Theme and resource management activities are carried out each year to make decisions on promoting and reviewing projects, and management
resources for research and development are allocated accordingly. These activities involve an evaluation process based on a “project appeal score.”This is used to evaluate projects based on the added value they may bring to the Company in the future and to assess the level of priority.

Search Area for New Themes

Business Development

Business Promotion

New Areas
Business Development
Product Development

Existing Business Areas
Advanced Development
Development Support

General Core Technology Areas

R&D
Management
Resources

Evaluation Criteria
1. Percentage allocated toeach area
2. Decision of priority levelwithin areas

Evaluation Process
Project Appeal Score =Value of Theme + Significance for Yamaha Motor
Initiatives + Probability of Success* Item added in fiscal 2022:
Additional points awarded to environmental projects

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Yamaha Motor Co., Ltd. Integrated Report 2022

* Created by Yamaha Motor using the Patent Result Co., Ltd. Biz Cruncher

Yamaha Motor Co., Ltd. Integrated Report 2022

51

Activities for Greater Functional CompetitivenessIntellectual Properties
Yamaha Motor promotes its global intellectual property strategies to create, protect, and utilize its intellectual property
rights, and in doing so not only raise both corporate and brand value but also fulfill our corporate mission to be a
Kando Creating Company.

IP for Business 
Under the banner of “IP for Business,” Yamaha Motor carries out
its intellectual property tasks based on its Four Policy Pillars ofIntellectual Property Activities.
The Company is actively making use of intellectual property
analysis through collaborative initiatives with the divisions incharge of various areas of technology. Reporting on intellectual
property activities, such as analyses of intellectual properties
present in growth areas, is one of the duties of the Technology
Business Committee, which discusses technical strategies from along-term business perspective.
Company executives and management receive an annually
published Technology White Paper, which provides visualizations
and suggestions about trends in technology based on intellectual
property analysis, along with suggestions about the layout andcontents of white papers from an intellectual property perspective.
This serves as a guide for creating value according to the Four
Policy Pillars of Intellectual Property Activities.
Four Policy Pillars of Intellectual Property Activities(1) M ove one step ahead of conventional intellectual property activities thatconsist primarily of intellectual property creation linked to product andtechnology development in existing businesses(2) Pursue intellectual property activities that preempt technological developments and the expansion of business areas by looking beyond our existing
technologies and markets(3) Indicate advanced fields that target further preemption and business area
expansion through analysis of the intellectual property landscape(4) Contribute to management decisions and strategy formulation from theperspectives of intellectual property analysis and market and technological
growth analysis

Intellectual Property Activities Underpinning Business Strategies 
Our intellectual property departments are actively involved in ourbusiness activities from an early stage. By carrying out various
forms of intellectual property analysis to visualize growth areas
beyond each of our business strategies and making active use of
intellectual property mixes—a combination of patents, copyrights,
trademarks, and other intellectual properties—that fit each business strategy, we create unique value through a multifaceted
protection of intellectual properties associated with the
Example 1: Marine CASE Strategy
Growth Strategy for Marine Products Business: Marine CASE Strategy

Intellectual
Property
LandscapeConnected Comfort
Trademark

TrademarkDesignrightsWe are helping accelerate the shift to EVs through our platform strategies, which
include targeted patent applications for components critical to electric powertrains.

Growth Business (SPV): A Unique Model with High Added ValuePatents

Marine Long-Term
VisionComprehensive boat control system

SWOT analysis*

Shared Experiences

Through our work to realize our Long-Term Vision for 2030 of “ART for Human Possibilities: Let’s strive for greater happiness,” we are aiming to
not only solve critical societal issues and achieve sustainable growth but also to enhance our corporate value. Our intellectual property departments
are involved in our business activities from the earliest discussions and create the core intellectual properties needed for reaching these goals.
SDGs: Building the Technological Platforms for Electrification

Autonomous Comfort/easy

Aiding differentiation*

Marine ICT method (patent-pending)Intellectual Property Activities to Achieve ART for Human Possibilities Company’s products and services. If any of the intellectual properties buoying our businesses are violated, we work together withintellectual property authorities and other relevant bodies in the
countries involved to take firm action against the violation.
Furthermore, the Yamaha brand is trademarked in almost every
corner of the world, and various activities are carried out to create
value in the intellectual property space in line with our businessstrategies in each country and region.

Electric Comfort
DesignrightsTrademark

Trademark

Vessel sharing system (patent-pending)Patents High-efficiency electric marine propulsion unit

Reliable and richmarine life:
Toward further
increasing thevalue of theoceanHelping projecttechnical advancesThis electrically power-assisted bicycle employs a unique Dual Twin® frame design
providing the optimal battery layout while still achieving the required rigidity. We will use
our mix of intellectual properties to expedite progress in this growth business.

* Created by Yamaha Motor using the Patent Result Co., Ltd. Biz Cruncher

Example 2: Motorcycle Business Premium Model Segment Strategy (NMAX)
Overall

Patents
Starter Generator Control Unit layout

Design rights

Trademark2015 N MAX / Ocito>>Caution

product Logotype Reference data

SDGs: Visualization of Forest Composition

SMG (Smart Motor Generator)>>This is not a block copy.

TrademarkGrowth Business (Robotics): Real-Time Production Analysis

TrademarkWe have successfully used unmanned industrial-use helicopters to digitally visualize
forest layers. This enables efficient gathering of point cloud data and is contributing tolaborsavings and the development of new smart forestry methods

The business is examining entire production lines and analyzing drops in productivity andquality issues in real time in order to raise both line efficiency and workpiece quality.

EngineTrademarkPatents
Variable Valve Actuation
installation scheme

52

Yamaha Motor Co., Ltd. Integrated Report 2022

Y-Connect

Y-Connect

Trademark

Unit for connecting
mobile devices
to vehicles(patent-pending)

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53

Activities for Greater Functional CompetitivenessProcurement
To offer new excitement and a more fulfilling life for people all over the world by continuing to deliver our unique, high-performance, high-quality products around the globe, procuring a diverse variety of quality parts and materials with a global perspective becomes crucial. By proactively communicating with our suppliers and business partners, we develop trusting relationships
and engage in Monozukuri based on a spirit of co-creation with uniquely Yamaha efforts that not only raise global competitiveness but also earn the respect and appreciation of society and mutually raise the corporate value of all parties.

 ollaborating with Business Partners to Raise Our Respective Corporate ValueC
and Competitiveness Increasing Growth, Profitability, and Robustness Together
We have devised a global procurement policy to guide our activities
over the three years of the new Medium-Term Management Plan
beginning in 2022. With our long-standing collaborative relationships with our business partners as a foundation, we aim to create
new value while strengthening our respective corporate value andcompetitiveness. To that end, we have established three key areasof focus: growth, profitability, and robustness.
In terms of growth, to achieve our Long-Term Vision for 2030 of“ART for Human Possibilities: Let’s strive for greater happiness,” wewill work towards tackling a new field of growth by supporting
Monozukuri through our procurement operations. We believe that
it is important to cooperate with business partners in various fields
of expertise in order to develop new technologies for CASE andother areas as well as create attractive new products. We share our
medium- to long-term technical strategies with our business partners at an early stage so that we are both on the same page andcan work together to carry out those strategies. We are continuing
to tackle pursuits in new fields and collaborating with our business
partners to strengthen competitiveness.
In terms of profitability, in order to reinforce existing businesses,
we are carrying out activities in a collaborative style unique to
Yamaha Motor. First, we visualize and share the strengths, weaknesses, and issues our business partners face. Next, we carry out
improvements to our business partners’ manufacturing sites andfacilities according to our theoretical-value-based approach, andmake use of our DX and Smart Factory technologies to create newvalue. These practices do not only cover cost reduction and value
improvement; we also work with our business partners to contribute toward achieving carbon neutrality and other initiatives. The
ideas generated through these practices are incorporated into the
upstream stages of new model development to improve existingproducts. By following this cycle, we are working to create newvalue and increase the corporate value of both Yamaha Motor andour business partners.

We shared policies with business partners from 260 companies located in 14
countries at the previous Global Suppliers Conference, which was streamed online.

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Yamaha Motor Co., Ltd. Integrated Report 2022

To ensure stable profits, we are carrying out measures to address
various risks within our procurement operations. Since the COVID19 pandemic began in 2020, there has been an ongoing risk ofglobal supply networks becoming fragmented. Cases in whichbusiness partners are affected by disasters such as fires or floods, orbeing targeted in cyberattacks, constitute grave risks to the state of
our operations. Our Procurement Center advises our business partners to put preventive measures in place before they are neededand visualizes supply chain information so that we are able toascertain our business partners’ situation early on in an emergency.
Additionally, having only a small number of suppliers can pose asignificant risk, as we saw with the shortage of semiconductors andsome other raw materials, so we are working to secure sufficientcomponent stock for the long term. These efforts allow us to
improve our resilience and ensure that we remain profitable.
In terms of robustness, we are conducting retrospective investigations into various elements of the manufacturing process of thecomponents and raw materials we purchase, including safety,
quality, human rights, and environmental impact. For these activities, it is important that we work with the entire supply chain andan essential undertaking for continuing our corporate activities
in future.
Initiatives with our business partners have always been founded
on a Quality First mindset. Safety and peace of mind are the top
priority and we place these above all else to ensure that we neverlose the trust of our clients.
The environment surrounding our procurement operations is
experiencing drastic change. To meet various societal expectations
and support safe production practices, we share our policies with
our major business partners around the world at the Global
Suppliers Conference (GSC) and carry out collaborative activities tomutually raise our corporate value.

 esponding to Procurement Risks and Working with Business Partners
Rfor Sustainable Growth Transitioning to a Sustainable Supply Chain
The Yamaha Motor Group Sustainability Basic Policy requires business partners to understand the purpose of the policy and act
accordingly. In order to appropriately implement sustainable practices that meet societal requirements and expectations, we havesummarized the types of behaviors we want business partners tomaintain in our Sustainability Guideline for Suppliers, and are working to promote sustainability throughout our entire supply chain.
For a Sustainable Supply Chain
To address the risks accompanying parts supply, we require business
partners to provide information on the raw materials used and to
submit a Certificate of Non-use of Prohibited/Restricted Substances,which confirms that substances hazardous to the environment are
not present in the parts used in our products.
Recently, human rights violations in supply chain operations havebeen highlighted as an important issue and potential risk in theparts production process. Since 2013, Yamaha Motor has been
conducting investigations into issues that include child labor, forcedlabor, and the use of conflict minerals. An investigation on working
conditions in Indonesia in 2019 found that there were no violations.
Furthermore, we conducted an assessment in 2021 with a thirdparty institution that focused on foreign technical intern trainees atthree of our suppliers in Japan. The investigation did not find any
incidents of forced labor, overwork, or health and safety issues, andwe were able to confirm that the employment and personal relationships were good. By sharing feedback from the investigation
with the suppliers themselves, we are facilitating actions towardfurther improvement.
We are working on various activities to build a stable and sustainable parts supply network with our business partners, and throughthese efforts, we aim to reduce potential risks in our supply chain andpromote stable and sustainable growth together with our partners.

Initiatives for a Decarbonized Society with Our Business Partners We are promoting decarbonization initiatives throughout our
supply chain to achieve our goal of carbon neutrality by 2050.
Firstly, from 2019 we started energy conservation initiatives at the
production sites of our business partners in Japan. We assess the
manufacturing sites of suppliers and implement measures forwork process improvements that cut losses and reduce CO2

emissions. From 2022, we are conducting investigations into CO2emissions from our suppliers, confirming each company’s initiatives and issues and promoting concrete practices for reducing
CO2 emissions. Additionally, we are rolling out these activities on
a global scale by sharing information at the GSC.

Message from Management
Co-Creation in a Post-COVID World
Our procurement operations and supply chain have faced a multitude of problems since thepandemic began, such as restrictions on operations due to the fragmentation of our supply
chain, unreliable distribution of materials, part shortages, and an increase in prices in the end.
These are now daily issues that we must navigate in order to stay in business.
We have thought about how Yamaha Motor’s procurement teams can prepare for the futureamid these difficult conditions and the conclusion we reached—and I cannot stress thisenough—is that co-creation is vital. We have changed the definitions in the Yamaha Motor
Group’s medium- to long-term procurement policy. Since 2020, through the GET* procurement
program, Yamaha Motor has worked to ensure that the diversity of region-specific procurement
operations overseen by local managers is reflected in our policies.
Our relationship with our suppliers is changing as well. Over the past two years, one
approach we have taken to deal with issues is to strengthen communication and collaboration
with our suppliers. It is important to build win-win relationships in order to overcome difficulties, and better communication and the forging of strong relationships with suppliers is our
new foundation for creating mutual value in the long term.
With all this in mind, we have made co-creation a high priority in our medium-term procurement policy.

Olivier Prevost
Deputy Executive Officer, Director,
PTW Manufacturing & Engineering,
Yamaha Motor Europe N.V. (YMENV)* Global Execution Transformation (GET): An
internal program in which an executive officer
and international personnel with specialized
expertise are jointly charged in implementing
activities related to management roles andbusiness functions on a global scale.

Creating a functional part for a product with business partners

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Activities for Greater Functional Competitiveness

Manufacturing and Production (Monozukuri)
As we strive to be a Kando Creating Company through our businesses, we believe carbon neutrality initiatives present
new opportunities for growth, and by combining them with production processes that eliminate waste, we are working
to both further improve productivity and reduce the environmental impact of our production sites. Additionally, utilizing technology to enhance the efficiency of theoretical-value-based production is how we connect manufacturing andproduction to the pursuit of customer value.

Garnering Affinity via Carbon-Zero Plants and New Growth Opportunities 
Initiatives for Carbon-Neutral Monozukuri
To aid in creating a decarbonized society, we are promoting initiatives
to minimize energy consumption and are switching to renewableenergy sources to make Yamaha Motor factories carbon-neutral.
The minimization of energy consumption hinges on ourtheoretical-value-based energy approach and innovations to production processes. Under the theoretical-value-based energy concept, we aim to apply a theoretical value to the energy used in allprocesses. This method treats only energy that is truly essential as
having “value” and allows us to bridge the gap between this ideal
and our current situation. The focus on the ultimate achievement of
the theoretical targets with this method differentiates it from theprevious loss-reduction approach. Through this initiative, we willachieve the highest level of energy conservation to date.
Furthermore, to bring innovations to our production processes, we
aim to achieve significant energy conservation in line with thetiming of equipment updates and replacements. The introductionof a new aluminum die-casting machine last year resulted in a 44%
decrease in energy consumption compared with previous models
thanks to new advances, such as a heat recovery system, better
thermal insulation, electrification of hydraulics, and lower cycle
times. Other new technologies being considered for the future of
the casting process include ultra-high thermal insulation, emissionsfree inorganic cores, and high-speed low-pressure die casting.

Meanwhile, switching to cleaner energy relies on the utilizationof renewable energy sources and electrification. During the threeyear duration of the new Medium-Term Management Plan, we
will increase the use ratio of renewable energy by 2.5 times byaccelerating the introduction of solar energy power generation.
Additionally, we will shift to using CO2 emission-free energy generated by hydroelectric powerplants at key domestic business sites
within 2022, and this is expected to reduce domestic CO2 emissions
by 70%. Under electrification, we are making progress with switching from fossil-fuel based energy to electricity, such as vaporless air
conditioning and the complete electrification of equipment.
We will move forward viewing carbon neutrality initiatives as
new opportunities for growth with the hope that they lead to thecreation of new value, including the creation of a highly productive
and comfortable work environment, the achievement of carbon
neutrality for our business
partners, and the garneringof widespread affinity for
the Yamaha brand.

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Yamaha Motor Co., Ltd. Integrated Report 2022

From Smart Factory to Value Innovation Factory
The logic behind Yamaha Motor’s approach to Monozukuri is that it
is not enough to solely focus on reducing costs and move forward;
excessively pursuing cost reductions should not compromise ourgoal to deliver satisfaction exceeding customer expectations.
Meanwhile, in order to focus resources on the Yamaha Motor
Craftsmanship theme that conveys our Monozukuri commitment toour customers, we will thoroughly engage in reducing processes
that do not lead to customer value. Theoretical-value-based production is the method for classifying processes with and without value
and applying that thinking to production operations. This is thefoundation of what the manufacturing departments do.
While the terms “Smart Factory” and “manufacturing DX” areheard more frequently recently, we have been enhancing ourtheoretical-value-based production approach through digital methods since 2019. These initiatives enhance technological capabilities
to enable a flexible response to on-site environments and targets
through classification of the four manufacturing DX—automatedtransportation, automated inspection, automated operations, andsurveillance of conditions and traceability (hereinafter, the four key
technologies)—and internalization of development.

This internalization contributes significantly to the DX of humanresource development at manufacturing sites. Specifically, we havedecided on digital methods to achieve targets formulated throughtheoretical-value-based production activities and created many newvalue processes, such as the following two that cannot be seen atother companies when combined with our on-site experience:
1. Reduce defects in casting through real-time monitoring of quality
2. Introduce low-cost, general-purpose, custom combination AGVs
We will pursue customer value by adding on-site theoreticalvalue-based thinking to the smart factory approach, which is newly
defined as the value innovation factory (VIF) and is for creating newvalue through on-site guidance.

Utilization of digital technology at manufacturing sites

Message from Management
Launch of Global Management

Solar power generation at Chennai Plant (India)

Initiatives for Recycling
As general policy for mitigating climate change, the reduction of
CO2 emissions in corporate activities has become an importantsocietal issue. Since the Japanese government announced its goalof achieving carbon neutrality by 2050, there has been increasing
concern and effort by companies regarding initiatives for
decarbonization.
In conjunction with the achievement of carbon neutrality, there
has been a shift toward a circular economy, particularly in areas
such as the European Union. In a circular economy, services aredesigned under the premise of resource recovery and reuse, withthe aim of creating a society with no waste.
Amid such an external environment, the Company has been
engaging in reducing the waste from Group plants from the perspective of carbon neutrality and a circular economy. We have beenable to manufacture engine components and exterior parts madefrom recycled materials by working to expand the range of recycledmaterials used when developing products.
Additionally, we made enhancing the quality of recycling, namely
increasing the number of recycled raw materials, and achieving zero

 ompetitiveness from Theoretical-Value-Based Production andC
Manufacturing DX Technology—New Value Creation Generated On-Site 

landfill waste by increasing the recycling rate new global targets forachieving carbon neutrality. We are planning to create a raw material recycling system with the aim of recycling all waste.
Different approaches to purchasing raw materials are being
considered for different materials. While the majority of the ingots
used for aluminum casting—a Yamaha Motor field of expertise—already contain recycled materials as of the end of 2021, we arefurther promoting this switch with the aim of achieving 100%
recycled materials. We are undertaking thermal recycling by changing the materials that make up the FRP used in boat hulls and otherproducts. For other resin materials, we are developing recycledmaterials that do notinclude substances hazardous to the environment.

Under the Global Manufacturing Committee (GMC) launched in 2020, improvements havebeen made to the Monozukuri Conference and global promotion of activities for DCI,*1
VIF,*2 and carbon neutrality. In 2021, we formulated a medium-term plan for manufacturing from global discussions initiated by the GMC and rolled it out to manufacturing plants
around the world at the Monozukuri Conference.
Based on experience from the following activities, we hope to shift from the previous
Japan-focused management of manufacturing divisions to global management helmed by
the GMC in 2022. The activities include inviting manufacturing leaders from each region
to join the GMC; expanding the system to allow for management decision-making on aregional level; developing policies at the Monozukuri Conference; developing methods andmeasures at technology and theme meetings; sharing progress, results, and issues atregional meetings; and cycling through the individual result reports from management
reviews and factory visits.
Additionally, we will promote human resource development of leadership focused oncontinuous management of GMC teams. With even greater integration of the global
Group, we will make this once-in-a-century period of significant change one of opportunity, aiming for further development while contributing to the enhancement of the trust,satisfaction, and loyalty of our customers around the world.

Teddy Cahyadi Yacob
Director, PT. Yamaha
Indonesia Motor
Manufacturing (YIMM)*1 Demand chain innovation: An initiative aiming to maximize sales by adapting production to changes in the market
while maintaining appropriate inventory levels*2 Value innovation factory: Creation of new value that combines theoretical-value-based thinking and DX
Recycled resin

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Activities for Greater Functional Competitiveness

Sales (Marketing)
In marketing, we position customer needs as the starting point of all our corporate endeavors, and our endless pursuitof greater customer satisfaction is how we seek to achieve our corporate mission to be a Kando Creating Company
offering new excitement and a more fulfilling life for people all over the world.

Marketing That Showcases and Augments Yamaha Motor’s Strengths 
The Company established “The Global Yamaha Way in Marketingin Sales” to clarify our shared values for conducting marketing in
the realm of sales. The overarching vision of this manifesto is“Continuing to Create Lifetime Yamaha Customers,” and theprogram itself brings Yamaha sales bases around the world
together to globally share, teach, and learn from one another theknowledge they have cultivated individually while spurring eachother to greater heights.
Yamaha Motor divides the customer journey into its own sevensteps and conducts customer-centric activities for each. This provides a common framework for deliberation among our basesaround the world in order to define the objectives, identify thetarget customers, and thoroughly determine aims and actionsaligned with said customers. In sharing successful marketingcases, we employ a “teach and learn” approach that examines
why the case was successful, what difficulties were faced, andwhat is needed for continued success. Doing so leads to in-depth
study and discerning of the key factors of the case, and theknowledge born of the discussions is then formulated, accumulated, and shared globally, leading to new successes. Having
members from around the world who share the same values
gather in the same location for meaningful, customer-centric
discussion not only enhances teamwork but also enables theapplication of knowledge from other countries and will propel us
to the front of global competition.

Experience

A New Style of Work in Overseas Market Development Operations 
The Overseas Market Development Operations (OMDO) business
unit celebrated its 30th anniversary in 2021. OMDO’s policy is toalways have a finger on the pulse of the local people and theirissues, and works in over 140 countries and regions throughout
Africa and other continents to forge close ties with local communities in order to fulfill its mission to bringing greater happinessand fulfillment to people around the world.
With COVID-19 making it more difficult to go into the field, we
have begun using digital technologies to communicate with local
distributors and provide training on aftersales service. This hasheralded a new style of work for OMDO, a two-pronged approachcombining activities on-site and the use of digital technologies. By
communicating and conducting training via digital means, OMDO
has effectively streamlined its marketing operations and fostered
even closer ties with local communities with its grassroots approach.
Going forward, OMDO will continue to function as a body dedicated to understanding the issues present in the field and working
together with local communities to solve them, as well as developing new sources of demand and then contributing to thebetterment of society through the resulting business.

Portal site for dealerships with OMDO agreements

E-learning system page for mechanic training

Psychological
Share

Awareness

Experience

Interest

Customer
SearchPurchase

Decision
During the COVID-19 pandemic, we held the Online Yamaha Way Day 2022 withmembers from 19 countries who are promoting activities

Message from Management

Visit
ActionFrom Indonesia to Australia
Seven Steps of the Customer Journey as defined by Yamaha Motor

Marketing in Sales Activities and Rapid Progress in Brazil 
In 2021, Yamaha’s motorcycle business in Brazil grew 42%, vastly
outpacing the market’s average growth of 26.3% and significantly
outperforming even other major motorcycle manufacturers. Our
share of the market reached 17.4% in 2021, up 5.4 points fromfive years ago. This was in part due to strategies such as the reorganization of the authorized dealer network and the establishment of a certification system for specialist staff, but anothercontributing factor was our Marketing in Sales (MiS) activities.
The sales divisions and aftersales service divisions in Brazil
formed cohesive teams to conduct MiS activities. One team
expanded the bottom line through initiatives in areas where
Yamaha Motor had had little involvement before, such as maintenance of motorcycle taxis and riding safety lessons. A different
team opened mobile stores in service trucks to increase user
touchpoints in local areas. Successful initiatives were propagatedto other areas of Brazil through our “teach and learn”

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Yamaha Motor Co., Ltd. Integrated Report 2022

methodology, and this not only improved the strength of the
Yamaha brand and the experience and value we provide to customers, but our Brazilian subsidiary’s bottom line as well.

Coming to a completely new environment always presents mixed feelings of excitement
and uncertainty. As of January 2022, I was assigned from my home country of Indonesia to
Yamaha Motor Australia (YMA) as a Senior General Manager of Sales & Marketing. It is adaunting challenge simply from the stark differences between Australia and Indonesia,
from the products and dealers to the people and culture.
However, there are many opportunities for me to add new value based on my own
experience. By introducing the “3S Concept” we implemented in Indonesia, we haveupgraded YMA’s own Customer for Life Strategy to connect and make seamless the company’s functions for sales, service, spare parts, accessories, financing, insurance, and customer training. The customer relationship management (CRM) project we implemented inIndonesia has also helped make YMA’s CRM vision blueprint better match the market, andwill get underway with proof-of-concept
CRM leads before putting a three-year
expansion plan in motion.
It is important to act as One Team whenfacing dealerships and external stakeholders. I held many roundtable sessions withmy team to establish a good rapport
where we can all be humble and enjoy
open and effective communication.

Hendri Wijaya
Senior General Manager of Sales &Marketing, Yamaha Motor Australia(YMA)

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59

Management Platforms

From the Chairman of the Board of Directors

At the same time, we recognize that increasing the ratio ofoutside directors with a diverse range of expertise and broad
perspectives is crucial to incorporating a wider breadth of opinions
into Board discussions. It was for this reason that we appointed Jin
Song Montesano as a new outside director, who is also Yamaha
Motor’s first non-Japanese director. This appointment has raised
the number of women on the Board of Directors to three, increasing the diversity of its membership. I hope that the outside directors will offer to the greatest extent possible their input andI will dedicate my focus to ensuring theproceedings at our Board of
Director meetings are of high quality.
Katsuaki Watanabe
Chairman and
Representative Director

advice, and point out issues based on perspectives that differ fromthe ones we hold predicated on our backgrounds mainly in B2C
manufacturing. This type of input and advice should also be avaluable asset for enhancing discussions regarding sustainability.
Furthermore, the Company has begun arranging forums foroutside directors and the president to discuss and evaluate
non-financial issues. These forums are being used to examine
succession plans for the president and other issues.

Reinforcement of Global GovernancePursuit of High-Quality Proceedings at Board of Directors Meetings
The June 2021 revision of Japan’s Corporate Governance Codeplaced more rigorous requirements on the boards of directors ofcompanies. I believe that this revision was instituted with theaim of increasing the quality of proceedings at board of directors
meetings, and in response to the new requirements, Yamaha
Motor is rolling out a range of measures for enhancing discussions regarding management issues. One is the prior distributionof information pertinent to agenda items. To fulfill this requirement, the Company has presenters prepare 15-minute videos
describing their proposals, and these videos are distributed to
Board members ahead of meetings. This approach has allowed
members to prepare and organize their thoughts for meetings
ahead of time, thereby contributing to increased quality andefficiency in meeting proceedings. These benefits also extend to
the newly commenced Management Study Group, which has
seen more beneficial discussions.
Our efforts to improve the efficiency of proceedings at Board
meetings are shaped by our desire to engage in more in-depth
discussions regarding the growth areas and new businesses
defined in the new Medium-Term Management Plan as well as
by the need to address the high-priority issue of sustainability.
The new Medium-Term Management Plan was established infiscal 2021, and from the efforts thus far, the Board of Directors
was able to focus on discussion of the core elements of the plan
throughout said period. The topics included portfolio strategies,
carbon-neutrality initiatives for pursuing sustainability, digitaltransformation methods to strengthen our management platforms, and measures for responding to the ongoing COVID-19
pandemic.
Measures for ensuring more effective discussions have included
evaluations and assessments based on self-evaluations by Board
members by employing seven evaluation criteria as well as objective evaluations by external institutions. The Board of Directors
undergoes evaluations by external institutions once every three
years and the latest such evaluation took place in fiscal 2021,
meaning that the Board was able to receive an objective assessment. It found that the Board was sufficiently functional but
required improvements in five areas, among which were discussions of portfolio strategies and carbon-neutrality initiatives. We
intend to pursue these improvements in fiscal 2022.
Other forward steps included the revision of the executive
remuneration system by the Executive Personnel Committee infiscal 2021, which entailed identifying 25 companies to serve as
benchmarks and compiling remuneration tables using the 60th
percentile of these global manufacturing companies as a standard. Any increases to executive remuneration as a result of thisrevision were allocated to performance-based compensation toheighten the ratio of such compensation to total compensation.
Based on the same thinking, we linked share-based compensation to assessments of total shareholder returns in order tobetter connect remuneration to the interests of shareholders.

Diversification of the Board of Directors
Previously, the Board of Directors comprised six internal directors
and four outside directors. However, we received approval at theOrdinary General Meeting of Shareholders held in March 2022
to change this membership to five internal directors and fiveoutside directors.
Yamaha Motor’s functions can largely be divided into four
categories: management, sales, manufacturing, and technologies.
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Yamaha Motor Co., Ltd. Integrated Report 2022

I therefore feel that the new membership arrangement is quitebalanced, with one of the five internal directors being an executive officer with a background in each of these four categories in
addition to one serving as the chairman. I look forward to seeing
these members deliver more refined and cross-organizational
management decisions while also executing duties in the businessareas that reflect their respective backgrounds.

Around 90% of Yamaha Motor’s sales originate from overseas andour global network includes more than 100 bases of operation
around the world. It goes without saying that the legal requirements can vary by country and region, and the Company has thus
maintained a global perspective when it comes to reinforcing
corporate governance. It would not be an overstatement to saythat the reinforcement of frameworks for governance within bases,
between bases and the headquarters, as well as the enhancementof the related training systems, is an important mission.
I feel confident saying that our efforts in that mission have led
to the entrenchment within bases of training programs designed
to heighten employee knowledge and awareness regarding risks.
There has also been noteworthy progress in developing frameworks for swiftly communicating the information gained throughthe resulting higher awareness to management at global bases.
Meanwhile, compliance-related matters have been adopted as

essential agenda items at all Global Executive Committee (GEC)
meetings, which serve as the forum for discussions between
leaders at our principal bases. In these meetings, base leaders
deliberate and discuss these matters amongst themselves basedon relevant case studies. Moreover, the proceedings at Board of
Directors meetings have been rearranged so that the president’s
presentation of pertinent topics at the beginning of meetings
starts with less favorable reports to instill the stating of unwelcome news first as a shared value.
In this manner, we are implementing various initiatives forreinforcing governance that encompass everyone, from frontline
employees to management at the headquarters. However, noamount of diligent effort can erase all risk factors. There is also no
end goal for governance reinforcement measures, and based on
this recognition, Yamaha Motor will maintain its commitment tofortifying its corporate governance systems going forward.

Cultivation of Human Resources for the Future
In fiscal 2022, Yamaha Motor appointed its first woman executive
officer. The Company has some 430 core positions around theworld and about half are held by local hires today, meaning that
locally hired employees are active in important roles at our bases.
In addition, base managers are being appointed to key positions
at the headquarters and the use of inter-base job rotations andother systems is brisk. Given the current condition of theCompany, I believe that there is a need to reform remunerationand other systems if we hope to allocate our human resources
more ideally and without undue consideration paid to nationality
or gender.
Personally, I am dedicated to using the Management
Committee as a venue for empowering newer employees. To thisend, I look to increase the range of opportunities for younger
employees to gain experience by giving presentations at
Management Committee meetings, as they will likely be candidates for future manager and executive officer positions someday.
I also want to facilitate a deeper understanding of our approachto human resources among outside directors through thisapproach.
Yamaha Motor is committed to always delivering new Kando
and new value as a Kando Creating Company, and in my capacity
as chairman, I aim to ensure high-quality proceedings take placeat meetings of the Board of Directors. I hope we can look forward
to the ongoing support and understanding of our stakeholders.

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61

Management Platforms

Outside Officer Roundtable

I am sure that some companies only present a
medium-term management plan to their outside directors at astage of near completion, after which they receive opinionsfrom said outside directors in response to its content. But at
Yamaha Motor, the plan was presented to us when the frameworks were in place but not yet concrete, as if the ingredientsfor a delicious dish were still being decided on. From there,
the new Medium-Term Management Plan was evolved andtaken to completion through repeated discussions and our
feedback reflected throughout. In the process, I understandthat Yamaha Motor’s executives were occasionally inspired byour opinions, and the sense of solidarity and collaborative
spirit we had to build this plan together brought a high levelof enthusiasm to the discussions.
Kamigama

Takehiro Kamigama
Outside Director

Yuko Tashiro

Eriko Kawai

Outside Director

Outside Audit &Supervisory Board Member

Yamaha Motor’s corporate governance is making
sure-footed strides toward its goal to bea Kando Creating Company.
Outside directors Takehiro Kamigama and Yuko Tashiro, and outside Audit & Supervisory Board member Eriko Kawaishared and discussed their individual assessments of Yamaha Motor’s corporate governance systems, issues that needaddressing, as well as the duties they feel they must fulfill as members of the Board.
Kamigama Tashiro-san and I previously spoke together in
Integrated Report 2020 and this time we have outside Audit &Supervisory Board member Kawai-san joining us. Kawai-san,having served as an outside auditor with Yamaha Motor for ayear now, I would first like to hear your thoughts and impressions on your experience so far.

Kawai The discussions we have at Board meetings are very
spirited. You, Tashiro-san, and the other outside directors all
have a wealth of management experience as leaders at global
companies, so the input and comments made are extremely
practical. You all express your opinions without sugarcoating
anything or for the sake of ingratiation—and they are sometimes harsh opinions at that—but this is precisely why I feelthat the role expected of independent outside directors is
being fulfilled. Yamaha Motor’s executives are also gaining
new knowledge from the outside directors and I feel thisprovides good stimulus for them as well.

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Yamaha Motor Co., Ltd. Integrated Report 2022

Tashiro It is often the case that things considered obvious tothose in the company can be difficult for those outside it tounderstand. I think it is important for us as outside directors to
ask the kind of questions that make people at Yamaha Motor
more aware of this. As transparency with company management becomes increasingly crucial going forward, it will bethat much more vital to communicate information in waysthat investors and other outsiders can understand, so I do nothesitate to ask questions regarding things I am unsure about.
Yamaha Motor’s Medium-Term Management Plan announced
earlier this year implements portfolio management and clarifies the positioning of each business. When I began serving asan outside director, I wondered how the Company manages
such a diverse range of businesses operating in so many countries around the world, and I did not fully understand thepositioning of each business. But we outside directors participated in the process for formulating the new Medium-Term
Management Plan and were involved in the numerous discussions held at Board meetings. I believe it is a significant markof progress that the positioning of each business has been
well organized and is now easier for outsiders to understand.

Kawai On your point regarding a sense of solidarity, shortly
after I was first appointed as an outside director, the COVID19 pandemic led to all meetings of the Audit & Supervisory
Board as well as the Board of Directors being conducted
online, including any prior communications pertinent to them.
I was new to the position and because my areas of expertiseare finance and education, at the time, I felt that it would be
difficult to make up for my lack of knowledge about Yamaha
Motor’s businesses and the industry in general through web
conferencing alone. When I expressed these concerns, theCompany arranged for me to take a tour of the factoryaround when COVID-19 cases had somewhat subsided, andthey set aside time to explain Yamaha Motor’s businesses andstrategies to me. Thanks to that level of attentive support in
the beginning, I carry out my work today with a strong senseof solidarity with Yamaha Motor.

I agree with you. We now have an arrangementthat actively incorporates the opinions of outside directors.
Compared to when I first joined the Board of Directors, thesubstance of our discussions has become much richer.
Whenever I ask for an explanation of certain topics to prepare
for a discussion, I get a response in full and the materials
provided in advance are very complete. This is why I feel thatthe involvement of outside directors has grown deeper andthat our Board meetings have made big forward strides.
TashiroI serve as an outside director on the boards of several companies, and in that capacity, I have noticed that allcompanies are changing and discussions at board meetings
have become much livelier. What is expected of outside directors is naturally rising in step with that and the workload is
growing as well, but it makes me happy to see that governance at Japanese companies—Yamaha Motor included—ismoving in the right direction.
Kamigama

Tashiro Yamaha Motor has provided various opportunities for
us outside directors and actively implements our opinions.
One example is the Executive Personnel Committee. Outside
directors comprise the majority of the committee and its roles
and merits have grown every year. As Kamigama-san mentioned earlier, our workload is rising, yes, but at the sametime, we are able to confidently take on our tasks because
Yamaha Motor always responds to our suggestions withsincerity.

You all express your opinions without sugarcoating
anything or for the sake of ingratiation—and they
are sometimes harsh opinions at that—but this isprecisely why I feel that the role expected ofindependent outside directors is being fulfilled.

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63

Management Platforms

Outside Officer Roundtable

With the new Medium-Term Management Plan,
the Company’s response to sustainability wasbolstered by including non-financial KPIs alongside financial ones, among other measures.

Kawai Yamaha Motor also has another unique format for
taking in the opinions of outside directors with the CEO roundtable conference. When I first attended one, I was honestly
shocked to see how the two of you and the other outside
directors so directly expressed various opinions from such a
broad range of perspectives to Yamaha Motor CEO, Hidakasan. I think the CEO roundtable serves as an important forum
for raising the effectiveness of corporate governance at
Yamaha Motor.

We began the CEO roundtable conference in 2020
to decide whether or not the CEO will be reappointed basedon performance reviews and evaluations. It is a setting inwhich we confirm management’s execution of business duties
and the like by speaking with the CEO in person. I believe theprocess is quite effective and ensures both objectivity andfairness. We also have a meeting separate from the CEOroundtable in which only outside directors get together todiscuss issues and share opinions amongst ourselves. However,in the course of these discussions, questions or concerns manyof us shared would arise, ones we wanted to ask and confirm
directly with the CEO. So, we decided it would be a good idea
to invite Hidaka-san himself and speak with him in person, so
now he attends these meetings with us outside directors as
well. Thereafter, this has remained our approach for setting
the stage for having candid conversations.
Kamigama

The CEO roundtable conference, meetings for outside
directors to share their opinions, and similar forums undoubtedly play a vital role. We must focus on and limit our comments to discussion items at Board meetings, but these otheropportunities allow us to speak freely without worrying about
the agenda. For example, at one CEO roundtable, I asked theoutside directors to share any bad news they had first, which

has taken root as a practice. Hidaka-san now reports any bad
news at the beginning of every Board meeting. When compliance and other issues arise, the more time passes the moredifficult it becomes to address them, so by hearing the badnews first, I believe we can minimize the adverse impacts such
issues may bring.
I agree completely. Yamaha Motor has a diverse range ofbusinesses in more than 180 locations around the world
as well as numerous subsidiaries and joint ventures, so as
an auditor, that fact presents difficulties in managing risks.
However, the internal audit departments and the Company’s
permanent auditors work very hard, calling on well-­establishednetworks to gather information and endeavoring to find out
bad news as soon as possible. They immediately alert us outside auditors of the news as well, so that we can fulfill our own
roles. I hope that Yamaha Motor will continue to not only
maintain but also strengthen these key networks.
Kawai

Kamigama With the new Medium-Term Management Plan, theCompany’s response to sustainability was bolstered by including non-financial KPIs alongside financial ones, among othermeasures. We outside directors made various proposals during
the discussions concerning this, but I believe Tashiro-san’s
feedback at the time put a lot of emphasis on the diversity ofhuman resources in particular. Can you share your thoughtson this point?

customers are women and the majority of its customer base
lives outside Japan. In today’s world where unprecedented
events are occurring one after another, from the COVID-19
pandemic and Russia’s invasion of Ukraine to the escalation ofclimate change issues, I believe securing a diverse workforce
and including more people with a variety of opinions andworld views in the management team is essential for Yamaha
Motor’s sustainable growth. In recent years, the Company has
appointed more and more non-Japanese executive officers,
and in addition to Kawai-san becoming an outside Audit &Supervisory Board member, our most recently appointed outside director, Jin Song Montesano, is both non-Japanese and awoman. Hidaka-san has always been welcoming to the opinions of outside directors and takes our input very seriously.
This has helped expedite improvements to the Company’s
corporate governance and I feel that what we had hoped forhas been achieved much faster than we expected.
Kawai Regarding the promotion of women, Kyoto University,where I serve as a professor, is also struggling to hire women
professors due to the small number of women entering engineering and other science departments. I think Yamaha Motorand other manufacturing companies in Japan are facing similar problems, but it is important to not simply hire more
women, but to have everyone also experience firsthand thepositive effects hiring and promoting women brings. Tashirosan herself is helping propagate those effects through hermeetings and interviews with women employees, and I also
have high praise for the Company’s efforts in this regard. Of
course, I also have a responsibility and role to play, so throughmy expertise in human resource development, I also want tosupport and contribute to greater successes for women at
Yamaha Motor.

As you mentioned, I try to spend as much time as I canspeaking with the women that work at Yamaha Motor. I hope tobe a force for promoting the success of women at the Company
by sharing my own experiences with them, and by putting ourheads together to examine avenues for helping women excel
and for changing mindsets in the workplace, we can better
clarify the career direction each woman wants to go in.
TashiroThank you both very much for your insights. I myself
am aware of areas in which I did not put in enough effort asa leader to promote the advancement of women, so I verymuch look forward to seeing the changes both of you willbring to the Company. To bring things to a close, I would liketo share my own thoughts on Yamaha Motor. Amid the globespanning shift to electrification in the vehicle industry, I hopethat Yamaha Motor will be the first to pioneer technologies
fusing the traits of internal combustion engines and electricmotors. I feel that this is something that Yamaha Motor is
uniquely positioned to accomplish and is a personal dream ofmine. To this end, calling on my own experiences in managing
a manufacturing company, I want to act as a set of brakes bypointing out anything I am not comfortable with or feel is too
risky without hesitation, but also as a throttle to push things
forward quickly when I feel the matter is largely settled.
Adeptly using both the “throttle” and the “brakes” to accelerate the Company’s pace of progress, I would very much liketo see Yamaha Motor make my dream a reality. And as bothof you said, Yamaha Motor’s corporate governance is making
sure-footed strides, so let us continue to carry out our respective roles and contribute to fulfilling the corporate mission to
be a Kando Creating Company. Thank you very much for yourtime today.
Kamigama

This has helped expedite improvements to theCompany’s corporate governance and I feel thatwhat we had hoped for has been achieved much
faster than we expected.

Tashiro64

Yamaha Motor Co., Ltd. Integrated Report 2022

Tashiro Since early on in my tenure and at the CEO roundtableconferences as well, I have been making proposals to bringgreater diversity to the Company’s human resources, such as
the hiring and promotion of women and non-Japaneseemployees. The bulk of Yamaha Motor’s business and productportfolio is aimed at general consumers, so half of its

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Management Platforms

Directors and Audit & Supervisory Board Members (As of March 24, 2022)

Directors
Chairman and
Representative Director

Katsuaki Watanabe

Attendance at meetingsof the Board of Directors
14 out of 14

President andRepresentative Director

Attendance at meetingsof the Board of Directors
14 out of 14

Yoshihiro Hidaka

April 1987:
Joined the Company
July 2010:	Vice President of Yamaha Motor Corporation,
U.S.A.
March 2017:	Senior Executive Officer and Director, Executive
General Manager of Corporate Planning &Finance Center
January 2018:	President, Chief Executive Officer andRepresentative Director (to present)
June 2018:
Outside Director of Yamaha Corporation (to present)

Director

Director

Attendance at meetingsof the Board of Directors
11 out of 11(After appointment on
March 24, 2021)

April 1986:
Joined the Company
March 2019:	Senior Executive Officer, Chief General Manager ofPowertrain Unit, and Senior General Manager ofPowertrain Planning Section, Powertrain Unit
March 2021:	Senior Executive Officer and Director, Chief
General Manager of Technical Research &Development Center (to present)

Attendance at meetingsof the Board of Directors
14 out of 14

Joined Nippon Gakki Co., Ltd.
(currently Yamaha Corporation)
October 2005: 	General Manager of PA/DMI Division of Yamaha
Corporation
June 2006:
Executive Officer of Yamaha Corporation
June 2009:
Director & Executive Officer of Yamaha Corporation
April 2010:
President of Yamaha Corporation of America
June 2010:
Senior Executive Officer of Yamaha Corporation
June 2013: 	President and Representative Directorof Yamaha Corporation
March 2014:
Outside Director (to present)
June 2015:
President of Yamaha Music Foundation (to present)
June 2017: 	Director, President and Representative Executive
Officer of Yamaha Corporation (to present)

Outside Director

Satohiko Matsuyama

Newly appointed

April 1986:
Joined the Company
March 2019:	Senior Executive Officer, Chief General Manager
of Manufacturing Center
March 2022:
Senior Executive Officer and Director (to present)
Responsible for Manufacturing, Manufacturing Technology,
Procurement, Power Products

Responsible for Creative, Research & Development, Powertrain Unit,
Vehicle Development

Director

Motofumi Shitara

Takuya Nakata
April 1981:

April 1982:
Joined the Company
March 2011:	Senior Executive Officer and Chief General
Manager of Manufacturing Center
March 2014:	Senior Executive Officer and Director, Chief
General Manager of Manufacturing Center andExecutive General Manager of 1st Business Unit,
MC Business Operations
March 2016:	Managing Executive Officer and Director, Chief
General Manager of MC Business Operations
January 2018:	Executive Vice President and Representative
Director
January 2022:
Chairman and Representative Director (to present)

Heiji Maruyama

Outside Director

Takehiro Kamigama

Attendance at meetingsof the Board of Directors
14 out of 14

April 1981:	Joined Tokyo Denki Kagaku Kogyo K.K.
(currently TDK Corporation)
June 2002:
Corporate Officer of TDK Corporation
June 2003:
Senior Vice President of TDK Corporation
June 2004:	Director & Executive Vice President of
TDK Corporation
June 2006:	President & Representative Director of
TDK Corporation
June 2016:	Chairman & Representative Director of
TDK Corporation
June 2017:	Outside Director of OMRON Corporation(to present)
March 2018:
Outside Director of the Company (to present)
June 2018:
Outside Director of SoftBank Corp. (to present)
June 2018:
Mission Executive of TDK Corporation
March 2021:
Outside Director of KOKUYO Co., Ltd. (to present)
August 2021:	Representative Director of Gama Expert, Inc.
(to present)

Newly appointed

Outside Director

Tetsuji Ohashi

April 1986:
Joined the Company
January 2018:	Director and President of Yamaha Motor India Pvt.
Ltd. and Director and President of Yamaha Motor
India Sales Pvt. Ltd.
January 2022:
In charge of Corporate Affairs
March 2022:
Senior Executive Officer and Director (to present)

Attendance at meetingsof the Board of Directors
14 out of 14

April 1977:
Joined Komatsu Ltd.
January 2004:	President and Chief Operating Officer (COO)of Komatsu America Corp.
April 2007:
Executive Officer of Komatsu Ltd.
April 2008:
Senior Executive Officer of Komatsu Ltd.
June 2009:
Director and Senior Executive Officer of Komatsu
April 2012:
Director and Senior Executive Officer of Komatsu
April 2013:	President and Representative Director,
and CEO of Komatsu Ltd.
April 2019:	Chairperson of the Board and Representative
Director of Komatsu Ltd. (to present)
May 2019:
Vice Chair of KEIDANREN (to present)
March 2020:
Outside Director of the Company (to present)
June 2021:	Outside Director of Nomura Research Institute, Ltd.
(to present)

Responsible for Human Resources & General Affairs,
Corporate Planning & Finance Center, IT, Market Development,
Customer Experience

Outside Director

Yuko Tashiro

Attendance at meetingsof the Board of Directors
14 out of 14

June 1986:
Joined KPMG LLPJuly 1995:
Partner of KPMG LLP
November 2000:	Sourcing Leader of GE Corporate Japan of General
Electric International Inc.
July 2003:
Chief Financial Officer of PHOENIX RESORT CO., LTD.
April 2005:	Director, Chief Operating Officer and Chief
Financial Officer of Aon Holdings Japan, Ltd.
April 2010:
Representative Director of TS Associates, Ltd.
June 2012:
Outside Director of Accordia Golf co., Ltd.
March 2016:	Auditor (External) of McDonald’s Holdings
Company (Japan), Ltd. (to present)
June 2016:	Representative Director, President and Chief
Executive Officer of Accordia Golf co., Ltd.
January 2018:	Director and Chairman of the board of Accordia
Golf co., Ltd.
April 2018:	Representative Director, Chairman of the board
and President, CEO of Accordia Golf co., Ltd.
March 2019:
Outside Director of the Company (to present)
March 2019:	Representative Director, Chairman of the boardof NEXT GOLF MANAGMENT Co., Ltd.
April 2021:	Representative Director and Chairman of the boardof Accordia Golf co., Ltd. (to present)
April 2021:	Chairman and Representative Director of NEXTGOLF MANAGEMENT CORPORATION (to present)

Outside Director

Jin Song Montesano

Newly appointed

September 1995:	Congressional Affairs Director of Korea Economic
Institute of America (KEI)
July 2001:	Corporate & Government Affairs Director,
Asia Pacific of GlaxoSmithKline plc.
July 2005:	Vice President, Communications, Asia Regionof GE Money
March 2009:	Vice President, Corporate & Government Affairs,
Asia Pacific of Kraft Foods, Inc.
July 2012:
Vice President, Global Public Affairs of GSK Vaccines
November 2014:	Executive Officer and Managing Director in chargeof Public Affairs, CSR, and Environmental Strategyof LIXIL Group Corporation
November 2014:	Senior Managing Executive Officer and Chief
Public Affairs Officer of LIXIL Corporation
February 2015:	Director, Senior Managing Executive Officer andChief Public Affairs Officer of LIXIL Corporation
September 2017:	Director, Senior Managing Director and Chief
Public Affairs Officer of LIXIL Corporation
June 2020:	Director and Executive Vice President in charge of
Human Resources, General Affairs, Public Affairs,
IR, External Affairs and Corporate Responsibility,
and Chief People Officer of LIXIL Group Corporation
December 2020:	Director and Executive Vice President in charge of
Human Resources, General Affairs, Public Affairs,
IR, External Affairs and Corporate Responsibility,
and Chief People Officer of LIXIL Corporation(to present)
March 2022:
Outside Director of the Company (to present)
Note: As of December 1, 2020, LIXIL Group Corporation and
LIXIL Corporation formed a merger (New company name:
LIXIL Corporation)

Audit & Supervisory Board Members
Audit & Supervisory Board
Member (Full-Time)

Kenji Hironaga

Attendance at meetingsof the Board of Directors
14 out of 14
Attendance at meetings of
the Audit & Supervisory Board
16 out of 16

April 1982:
Joined the Company
February 2010: 	General Manager of Human Resources
Development Division, Human Resources &General Affairs Section
September 2014:	Chief General Manager in charge of planning,
Audit & Supervisory Board Members’ Office
March 2015:
Audit & Supervisory Board Member (to present)

66

Yamaha Motor Co., Ltd. Integrated Report 2022

Audit & Supervisory Board
Member (Full-Time)

Junzo Saito

Attendance at meetings ofthe Board of Directors
14 out of 14
Attendance at meetings of
the Audit & Supervisory Board
16 out of 16

November 1985: Joined the Company
February 2008:	General Manager of Legal & Intellectual Property
Division
April 2011: 	Representative Director and Presidentof Yamaha Motor Espana S.A.
May 2012:
Vice President of Yamaha Motor Europe N.V.
March 2017:
Senior Executive Officer
March 2019:
Audit & Supervisory Board Member (to present)

Audit & Supervisory Board
Member (Outside)

Masatake Yone

Attendance at meetings ofthe Board of Directors
14 out of 14
Attendance at meetings of
the Audit & Supervisory Board
16 out of 16

April 1981:
Registered as an Attorney
March 1987:
Registered as a New York State Attorney
July 1987:	Joined Mori Sogo (currently Mori Hamada &Matsumoto)January 1989:
Partner Attorney of Mori Hamada & Matsumoto
April 2000:	Lecturer at Graduate School of International
Corporate Strategy, Hitotsubashi University
September 2005: Outside Corporate Auditor of BANDAI NAMCO
Holdings Inc.
March 2008:	Outside Director of GCA Savvian Group
Corporation (currently GCA Corporation)
April 2011:
Vice President of Daini Tokyo Bar Association
June 2011:	Outside Corporate Auditor of BANDAI NAMCO
Games Inc. (currently BANDAI NAMCOEntertainment Inc.) (to present)
June 2013:	Audit and Supervisory Board Member (External)of Terumo Corporation
June 2015:	Independent Director (Audit/Supervisory
Committee Member) of Terumo Corporation
March 2016:	Outside Director (Audit & Supervisory Committee
Member) of GCA Corporation (to present)
March 2019:	Outside Audit & Supervisory Board Member of theCompany (to present)
December 2019:	Outside Director of Skymark Airlines Inc. (to present)
January 2020:	Senior Counsel at Mori Hamada & Matsumoto(to present)

Audit & Supervisory Board
Member (Outside)

Eriko Kawai

Attendance at meetings of theBoard of Directors
11 out of 11
Attendance at meetings of the
Audit & Supervisory Board
13 out of 13(After appointment on March24, 2021)

October 1981: Joined Nomura Research Institute, Ltd.
September 1985: Management Consultant of McKinsey & Company, Inc.
October 1986:	Fund Manager of Mercury Asset Management/SG
Warburg plc
November 1995:	Director and Chief Investment Officer (CIO) of
Yamaichi Regent ABC Polska
July 1998:	Senior Pension Funds Administrator of Bank forInternational Settlements
October 2004:	Senior Pension Funds Administrator of Organization
for Economic Co-operation and Development (OECD)
March 2008:
Representative of Kawai Global Intelligence
April 2012:	Professor of Institute for the Promotion of
Excellence in Higher Education of Kyoto University
April 2013:	Professor of Institute for Liberal Arts and Sciencesof Kyoto University
April 2014:	Professor of Graduate School of Advanced Integrated
Studies in Human Survivability of Kyoto University
December 2017:	External Audit and Supervisory Board Member of
CMIC HOLDINGS Co., Ltd.
June 2018:	Outside Director of Daiwa Securities Group Inc.
(to present)
December 2019:	Outside Director of CMIC HOLDINGS Co., Ltd.
(to present)
March 2021:	Outside Audit & Supervisory Board Member of theCompany (to present)
April 2021:
Professor Emeritus of Kyoto University (to present)
June 2021:	Outside Director of Mitsui Fudosan Co., Ltd.
(to present)

Yamaha Motor Co., Ltd. Integrated Report 2022

67

Management Platforms

Corporate GovernanceDirectors and Audit & Supervisory Board Members (As of April 1, 2022)

As a Kando Creating Company, our corporate mission is to offer new excitement and a more fulfilling life for people allover the world. To achieve this mission, Yamaha Motor aims to enhance corporate value through sustained growth
attained via its medium- and long-term strategies and measures. To this end, the Company has put into place systems
and frameworks that enable rapid decision-making and the proper supervision and monitoring of business execution.

Executive Officers 
President and Chief Executive Officer

Yoshihiro Hidaka

Basic Views on Corporate Governance 
Senior Executive Officers

Heiji Maruyama

Satohiko Matsuyama

Motofumi Shitara

Chief General Manager ofTechnical Research &Development Center

Hirofumi Usui

Minoru Morimoto

Chief General Manager ofMarine Business Operations

President of PT. Yamaha
Indonesia Motor Manufacturing

Eric de Seynes

Hiroyuki Ota

Itaru Otani

Takuya Kinoshita

Dyonisius Beti

President of Yamaha Motor
Europe N.V.

Chief General Manager of
Solution Business Operations

Chief General Manager of Land
Mobility Business Operations,and Executive General Manager
of Motorcycle Business Unit,
Land Mobility Business Operations

Chief General Manager ofCreative Center

COO of PT. Yamaha Indonesia
Motor Manufacturing

Executive Officers

To ensure the implementation of the Company’s growth strategies for the
future, Yamaha Motor’s Board of Directors establishes an environment that
supports appropriate risk-taking and decisive decision-making by management, and it multilaterally understands and appropriately oversees issues andrisks associated with the implementation of the Company’s management
strategies from the viewpoint of fulfilling responsibilities to various stakeholders, including shareholders and investors.

This structure is designed to implement speedy and decisive decisionmaking as well as appropriate, transparent, and fair supervision and monitoring as the Company’s corporate governance. Accordingly, we haveformulated Corporate Governance Guidelines and put them into practice inan appropriate manner.

For more details, please see the Corporate Governance Guidelines.
https://global.yamaha-motor.com/ir/governance/pdf/corporate_governance_guidelines-e.pdf

History of Strengthening the Corporate Governance System

Toshihiro Nozue

Satoshi Hirose

Takeo Noda

Toshiaki Ibata

Toyoshi Nishida

Chief General Manager ofPowertrain Unit

Chief General Manager of Quality
Assurance Center and Executive
General Manager of Customer
Experience Business Unit

Chief General Manager ofCorporate Planning &Finance Center

Senior General Manager ofDevelopment Section, Marine
Business Operations

Chief General Manager of PF Model
Unit and Senior General Manager ofMotor Sports Section, PF Model Unit

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2001: Introduction of Executive Personnel Committee (Nomination / Remuneration Committee)
Operation of Board of Directors + Management Discussion meeting
Improvementof operating
structure

Establishment of Corporate Governance Guidelines
Implementation of the Board evaluation

Norio Yamada

Tatsuya Masuda

Kenichi Muraki

Koutarou Ueda

Eishin Chihana

Chief General Manager
of IT Center

Chief General Manager ofProcurement Center

Chief General Manager of
Manufacturing Technology
CenterChief General Manager of
Manufacturing Center

Shin Yokomizo

Yasutaka Suzuki

Michael Chrzanowski

Managing Director of Yamaha
Motor India Pvt. Ltd., Managing
Director of India Yamaha Motor
Pvt. Ltd., and Managing Director of
Yamaha Motor India Sales Pvt. Ltd.

Deputy Chief General Manager of Land Mobility Business Operations,
Senior General Manager of Global Branding Section, Motorcycle
Business Unit, Land Mobility Business Operations

General Director of Yamaha
Motor Vietnam Co., Ltd.

President of Yamaha Motor
Corporation, U.S.A.

Jeffrey Young

Kenji Komatsu

Ayako EgashiraMitsuru Hashimoto

Number of
directors

11

11

10

10

12

11

11

13

11

11

10

10

10

Chairman of Yamaha Motor
Finance Corporation U.S.A.

Deputy Chief General Manager
of Technical Research &Development Center

Executive General Manager ofRobotics Business Unit, Solution
Business Operations

Chief General Manager of
Human Resources & General
Affairs Center

Number ofinternal
directors

7

8

7

7

9

8

8

10

7

7

6

6

5

Number ofoutsidedirectors

4

3

3

3

3

3

3

4

4

4

4

4

5

Independent
outsidedirectors

3

2

2

2

2

2

2

3

4

4

4

4

5

Of whom,
women
directors

1

1

1

0

0

0

0

0

0

1

1

1

2

Abolition of takeover defense measures
2001: Introduction of executive officer system2007: Appointment of outside directors
Executive
structure

Delegation agreement with executive officers
Appointment of women directors and Audit & Supervisory Board members
Appointment of non-Japanese executive officers
Separation of chairman of the Board of Directors andchief executive officer (CEO)Deputy Executive Officers

Ben Speciale

Olivier Prevost

President of Marine
Business Unit, Yamaha Motor
Corporation, U.S.A.

Director of PTW Manufacturing & Engineering,
Yamaha Motor Europe N.V.

Integration of stock options into stock compensation plan
Executive
remuneration
systemMedium-Term
Management
Plan

Overall revision of the system(compensation further linked toperformance and for long-term incentives)

Stabilization of a
profitable structure(V-shaped recovery in results)

Toward sustainable growth(expansion of businessscale and enhancement of
profitability)

A unique company that
continues to achieve
dynamic milestones(management emphasizing
ROE and cash flows)

Taking on the renewed
challenge of achieving
net sales of ¥2 trillion

Strengtheningof sustainability
measures

PF: Platform

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69

Management Platforms

Corporate GovernanceDirectors and the Board of Directors 

Corporate Governance Structure 
Corporate Governance System Overview

Yamaha Motor supplies various kinds of products and services to markets
around the world, including personal mobility solutions, marine products,
industrial robots, vehicle engines, and unmanned helicopters. Overseas
sales account for approximately 90% of the Company’s consolidated net
sales. Starting with the principal concept of developing and producing
locally where the products are consumed, we engage in development,
procurement, production, sales, and other activities on the global stage.
To sustainably advance our business activities, we believe it is effective
to structure a corporate governance system consisting of the Board of
Directors, made up of internal directors who are familiar with theCompany’s customer characteristics, products, business operations, andfunctions and of outside directors who have a wealth of knowledge inglobal corporate management, as well as the Audit & Supervisory Board
whose members include outside Audit & Supervisory Board members withprofessional knowledge in areas including accounting, legal affairs, andmanagement administration. Under this corporate governance system,
executive officers are appointed to execute operational duties in a timely
manner, and the Board of Directors delegates matters related to the execution of business operations to executive officers.

Organizational design

Company with Audit& Supervisory Board

Number of directors(number of outside directors)

10 (5)

Number of Board of Directors meetings infiscal 2021 (average attendance rate bydirectors)

14 (100%)

Number of Audit & Supervisory
Board members(number of outside Audit & Supervisory
Board members)

4 (2)Number of Audit & Supervisory Board
meetings in fiscal 2021
(average attendance rate by Audit &Supervisory Board members)

16 (100%)

Directors’ term of office

One year

Use of executive officer system

Yes

Optional committees of Board of Directors

Executive Personnel
Committee

AuditorErnst & Young
ShinNihon LLC

General Meeting of Shareholders
Appointment /Dismissal

Board of Directors
10 directors(including
5 outside directors)

Executive Personnel
Committee

Appointment /Dismissal
Supervision

Appointment /Dismissal

Audit

Appointment /Dismissal

Audit & Supervisory Board Members
Audit & Supervisory Board
4 Audit & Supervisory Board members(including 2 outside Audit & Supervisory
Board members)

Reporting businessexecution situations

Audit

Coordination

Coordination

External Auditor

Accounting audit

Coordination

Business Execution

President, Chief Executive Officer and Representative Director
Seeking advice /Makingrecommendations

Seeking advice /Making recommendations

Management Committee

Sustainability Committee

Instruction / Report

Yamaha Motor’s Standards for Independence
In addition to the required standards for independence established by Tokyo
Stock Exchange, Inc., the Company has stipulated its own Standards for
Selecting Independent Outside Directors / Outside Audit & Supervisory
Board Members to objectively assess the independence of its outside
directors and outside Audit & Supervisory Board members.
For the full text of the Standards for Selecting Independent
Outside Directors / Outside Audit & Supervisory Board
Members, please refer to our website.
https://global.yamaha-motor.com/ir/governance/pdf/independent_en.pdf

Board Effectiveness Evaluation 

Corporate Governance System (As of March 24, 2022)

Seeking advice /Makingrecommendations

On the basis of fiduciary responsibilities to shareholders, directors collectadequate information, understand relevant laws and regulations and othernecessary rules, actively express opinions, and discuss and make decisions at
Board of Directors meetings, Management Discussion meetings, and otherimportant meetings in order to obtain sufficient knowledge on viewpoints
and standpoints of various stakeholders, including shareholders, and toachieve sustainable growth and medium- to long-term enhancement ofcorporate value. The chairman of the Board of Directors does not hold any
specific authority and is not involved in the execution of business matters.
As a general rule, Board meetings are held monthly but may also be held if
deemed necessary.

Instruction /ReportIntegrated Auditing Division

The Board of Directors analyzes and evaluates the effectiveness of the roles
and responsibilities of the Board as a whole on a yearly basis with the
Corporate Planning Division acting as the administrative office.

The analysis and evaluation are carried out from the following perspectives and a summary of the results is disclosed appropriately.

Evaluation Process•C onduct a self-evaluation by questionnaire updated with the help of athird-party institution based on the seven evaluation perspectives for theaims of the Board of Directors• E nlist a third-party institution to conduct an investigation of the Board of
Directors, analyze the results, and hold interviews from an objective
perspective•C onduct evaluations and analyses from the perspective of the amended June
2021 version of the Corporate Governance Code• S hare the analysis-based results of the effectiveness evaluation and deliberate the issues to be addressed at Board meetings

Progress on Issues Flagged in the Previous
Fiscal Year’s Effectiveness Evaluation
Issues that were flagged in the previous fiscal year’s evaluation were “greater
deliberation of risk management by the Board,” “improvement of diversity ofBoard membership and examination of successor plans,” “greater deliberationof responses to changes in the management environment and for appropriate
risk-taking,” and “strengthened supervision of the operational status of thewhistleblowing system.”Ensuring that “bad news comes first” at Board meetings was at theforefront as the members addressed these points. In addition to creating more
opportunities for reporting on and discussing responses to changes and risks
in our business environment, including revising our medium- to long-term
strategies in response to the situation with COVID-19, the Board discussed
matters such as the diversity of our senior management, personnel training,and employee engagement.
This work led to satisfactory evaluation results in all of these areas from theperspective of what the Board of Directors is seeking to become going forward, but points for further improvement were found and it was determinedthat more work is needed.

Evaluation Perspectives
1. Roles and responsibilities of directors and the Board of Directors
2. Relationships between the Board of Directors and senior management(executive officers)
3. Organizational design and composition of the Board of Directors, etc.
4. Qualifications held and knowledge of directors and the Board of Directors
5. Deliberation at meetings of the Board of Directors
6. Relationships and dialogue with shareholders
7. Dealings with stakeholders other than shareholders
Evaluation Results from Fiscal 2021
The evaluation confirmed that our Board of Directors has actively and continuously carried out effective discussions, refined our initiatives to improve ourcorporate value in the medium to long term and achieve sustainable growthamid the dramatic changes in our business environment, and is effective
enough to achieve our Long-Term Vision for 2030.
A particularly praiseworthy point is the way in which the Board of Directors
has continued to respect the feedback of outside directors and outside Audit& Supervisory Board members, and fostered a culture of open, constructive
discussions and exchanges of opinion, as they did in fiscal 2020.
Our third-party evaluation also confirmed that there were no major discrepancies between the Board’s self-evaluation and the third-party institution’s
evaluation of the Board’s effectiveness.

Points for Further Improvement of EffectivenessBased on the above analysis results, the Board of Directors is aware that work
is needed in the following areas and will address these issues in order tofunction more effectively.
Issue 1. Deepen discussions on the business portfolio
Issue 2. Implement comprehensive discussions on sustainability
Issue 3.	Strengthen the supervision of the Board of Directors with regard to thestatus of the prevalence of risk sensitivity on the ground
Issue 4.	Continue initiatives to ensure diversity, including among the Board of
Directors and company management
Issue 5.	Issues related to the operation of the Board of Directors (further
enhancement of communication opportunities between outside
directors and internal directors, hybrid meetings involving face-to-facemeetings and online meetings, ideal communication opportunities, etc.)
In addition to making ongoing improvements in the areas flagged in thisevaluation, we will incorporate the advice of the third-party institution—whichplays a regular role in our evaluation process—to further improve the effectiveness of our Board of Directors.

Internal audit

Business sectors, Functional sectors, Corporate sectors, and Subsidiaries

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Management Platforms

Corporate Governance

Executive Personnel Committee 

Audit & Supervisory Board Members and the Audit & Supervisory Board Yamaha Motor established the Executive Personnel Committee as a voluntary advisory body concerning the nomination and remuneration of members of the Board of Directors in order to improve the transparency andobjectivity of executive appointments and dismissals and the determinationof their remuneration, among other objectives. To ensure the transparencyof the deliberation process, as well as the objectivity and appropriateness ofreports to the Board of Directors, the Executive Personnel Committee iscomposed of a majority of outside directors and meets at least six times a
year, in principle.
In its role related to nominations, the committee deliberates on theappointment and dismissal of the CEO, directors, Audit & Supervisory Board
members, and executive officers, as well as on the selection of candidates
for senior management positions and their development plans, all while
confirming future management strategies and personnel requirements fortheir implementation, among other tasks. As part of its efforts to improve
corporate governance, the Company established a system for determining
executive officer appointments or dismissals based on a review and evaluation of the CEO’s own performance. Specifically, through strategic dialogue
with the CEO, the attendees of a roundtable conference (seven outside
directors and Audit & Supervisory Board members, chaired by Outside

Director Takehiro Kamigama) carry out a non-financial evaluation that
includes the CEO’s operational performance as a member of managementfrom the perspective of whether he possesses the qualities required to serveas the CEO and if he properly demonstrates those qualities. The outcome of
the conference was reported to the Board of Directors by the Executive
Personnel Committee, at which the appointment of executive officers—
including the CEO—was finalized. In this way, through a process whereby
objectivity and fairness are ensured, we will continue building up our
corporate governance in which the best and most suitable members ofmanagement execute business operations.
In its role related to remuneration, the committee deliberates on anddecides the evaluation standards and remuneration system for the CEO,directors, and executive officers. The committee also evaluates the performance of the Company overall and individuals based on their contributions
to medium- to long-term corporate growth and business performance forthe fiscal year in question. In addition, the committee deliberates on compensation linked to performance for the abovementioned senior management personnel within the limits of the total remuneration amount resolved
at the Ordinary General Meeting of Shareholders.

Identifying the Expertise and Experience Directors and Audit & Supervisory Board Members Must Possess In order for Yamaha Motor’s directors and Audit & Supervisory Board members
to fulfill their roles and responsibilities effectively, the members comprising
the Board of Directors and Audit & Supervisory Board—including outside
members—must possess sufficient knowledge and experience concerningcompany management in their respective fields. Below are areas of expertiseand experience considered vital to the Company from a management perspective, and in selecting candidate members for the Board of Directors andAudit & Supervisory Board, they must not only possess sufficient knowledge inall of these areas but also in areas where the Company expects particularly
strong performance.

Professional Qualifications and Experience of Directors and Auditors
Name

Classification

Katsuaki Watanabe

Chairman of Executive
Personnel Committee

Yoshihiro Hidaka

Members of Executive
Personnel Committee

Corporate
Management /Expertise

Audit & Supervisory Board Members

Directors

Heiji Maruyama

72

Satohiko Matsuyama

Newly appointed

Motofumi Shitara

Newly appointed

Takuya Nakata

Outside / Independent
Members of Executive
Personnel Committee

Takehiro Kamigama

Outside / Independent
Members of Executive
Personnel Committee

Yuko Tashiro

Outside / Independent
Members of Executive
Personnel Committee

Tetsuji Ohashi

Outside / Independent
Members of Executive
Personnel Committee

Jin Song Montesano

Newly appointed
Outside / Independent
Members of Executive
Personnel Committee

Manufacturing /Technology / R&D

Sales /
MarketingAccounting /Finance / M&A

IT /Digital Technology

Human Resources /Labor / Personnel
Development

Legal /
Compliance

ESG /Sustainability

RiskManagement

GlobalExperience

On the basis of fiduciary responsibilities to shareholders, Audit &Supervisory Board members and the Audit & Supervisory Board, as abody independent of the Board of Directors, request the Company andits subsidiaries to submit reports on their business activities in accordance with laws and regulations, survey the status of business operations and properties, exercise rights in respect of appointing or
dismissing an external auditor and audit compensation, attend meetingsof the Board of Directors and other important meetings, and provide
opinions as needed. Through these tasks, Audit & Supervisory Board
members and the Audit & Supervisory Board audit the legality andappropriateness of directors’ execution of duties, internal control systems, and the performance and financial position of the Company andits subsidiaries. The Audit & Supervisory Board Members’ Office, with adedicated staff of two people, has been established to assist Audit &Supervisory Board members with their audit and supervisory operations.
Collaboration between Audit & Supervisory Board Members,
Outside Auditors, and Internal Audit Section
Audit & Supervisory Board members (including outside Audit & Supervisory
Board members) work with the external auditor to facilitate audits based on
appropriateness and receive accounting audit reports in accordance withlaws and regulations. Through collaboration that includes the mutual
exchange of information as needed and related opinions with the internal
audit section, Audit & Supervisory Board members receive reports about
internal audit plans and their outcomes, with the ultimate aim of improving
the effectiveness and efficiency of audits.

Executive Officers and Management Committee, etc. 
The Company has 30 executive officers, of whom four serve concurrently as directors. The Management Committee, comprising eightexecutive officers with specific posts, has been established to deliberate
on matters of business execution, speeding up the Company’s decisionmaking process. In principle, the Management Committee meets at least
monthly, and additionally from time to time as necessary. In fiscal 2021,
24 meetings of the Management Committee were held.

Sustainability Committee Yamaha Motor has established the Sustainability Committee, comprisingeight executive officers with specific posts, as an entity to deliberatemeasures related to risk management and compliance as well as toaddress issues concerning sustainability. In principle, the Sustainability
Committee meets three times a year, and also holds additional
meetings if necessary.

In addition, the Global Executive Committee has been established todeliberate on important management policies and issues related to theGroup’s management. The Global Executive Committee includes theCompany’s representative director, all executive officers with specificposts, and senior local managers of major Group companies, and has 44
members, of whom 26 are Japanese and 18 are non-Japanese. In principle, the committee meets at least once annually. In fiscal 2021, twomeetings of the Global Executive Committee were held.

Internal Auditing 
The Integrated Auditing Division, with 25 members and which reports
directly to the president and chief executive officer, has been established
as an internal auditing body to audit the appropriateness of operational
activities by the Company and its subsidiaries. In addition, internal audit
functions have been installed at major subsidiaries, working together with
the Company’s internal auditing body to audit divisions and subsidiaries

Cross-Shareholdings 
Yamaha Motor holds cross-shareholdings only when it is deemed necessary and appropriate in order to achieve growth and enhance corporate
value from a medium- to long-term perspective. For this reason, we do
not hold investment shares for net investment purposes, where the aim
is solely to derive profit from share price fluctuations and dividends. Allof the investment shares we hold are for purposes other than net investment. The Board of Directors examines each cross-shareholding annually
to determine whether the rationale of the shareholdings is appropriate,
among other points. The Board of Directors then appropriately discloses
a summary of the results. In addition, Yamaha Motor upholds a policy to
reduce cross-shareholdings if the shareholdings cannot be justified.
Based on this policy, in fiscal 2021 the Board of Directors verified theappropriateness of holding certain individual stocks and the Company
sold a portion of its cross-shareholdings.

Shareholdings of Yamaha Corporation
Yamaha Motor was established by spinning off the motorcycle divisionfrom Nippon Gakki Co., Ltd. (currently Yamaha Corporation). Today, thetwo companies’ management is conducted separately, with both using
the same Yamaha brand. We are undertaking various measures in collaboration with Yamaha Corporation through the Joint Brand Committee
and under the Yamaha Brand Charter and Joint Brand Regulations. Bothcompanies appropriately monitor measures for mutual sustainablegrowth through shareholdings and by dispatching directors. We believethat maintaining and improving the shared value of the Yamaha brandby building a relationship of monitoring and collaboration with Yamaha
Corporation will contribute to the medium- to long-term enhancementof Yamaha Motor’s corporate value.

Kenji Hironaga

Junzo Saito

Masatake Yone

Outside / Independent

Eriko Kawai

Outside / Independent

Yamaha Motor Co., Ltd. Integrated Report 2022

Yamaha Motor Co., Ltd. Integrated Report 2022

73

Management Platforms

Corporate GovernanceIndicators Related to the ROA Evaluation CoefficientRemuneration System for Executives 
In order to ensure the appropriateness as well as the transparency andfeasibility of the deliberation process regarding items relating to executive
remuneration, the Executive Personnel Committee voluntarily established by
the Company conducts pertinent examinations and reports its findings to
the Board of Directors. Decisions on remuneration amounts for each individual director are made at Board of Directors meetings according to ourbasic policy after discussions with and/or reports from the Executive
Personnel Committee. In addition, Audit & Supervisory Board members
discuss and determine the specific amounts of their base compensation.

Coinciding with the beginning of our new Medium-Term Management
Plan in fiscal 2022, we have revised the executive remuneration system in a
number of ways, including expanding performance-based compensationand introducing evaluations of materiality (important societal issues) andtotal shareholder return (TSR), and have also changed our policy for deciding the individual remuneration, etc., of directors, Audit & Supervisory
Board members, and executive officers at Yamaha Motor.

Outside directors and Audit & Supervisory Board members receive only fixedbase compensation as their roles require them to supervise and audit
Company management from an objective, independent perspective.

6.5%

12%

ROA

TSR Evaluation CoefficientCompany TSR =150%

Average closing share price in the final
month of the final year of the TSR
evaluation period (December)
100%

Performance-Based Bonuses
The representative director shall only be paid the Companywide performancebased bonus. Performance-based bonuses for other directors and executive
officers shall comprise a Companywide performance-based bonus and an
individual performance-based bonus.
Performance-Based Share Compensation
As part of ongoing reviews of the remuneration system for directors, we haveswitched from the previous system of remuneration of restricted shares—with
no attached performance conditions—to a system of performance-based
remuneration of restricted shares in which the number of shares awarded isdetermined in conjunction with the Company’s TSR. This is in order to provide
suitable incentive for further value sharing between Yamaha Motor directors
and shareholders and for the ongoing improvement of our corporate value inthe medium to long term.

Breakdown of President and Representative Director Renumeration

Compensation linked to performance
Companywide performancebased bonus (30%)

Base compensation (50%)

Share remuneration (20%)

Compensation linked to performanceNewsystem2.5%

Base Compensation
An annual base compensation is set for each executive position, one-twelfthof which is paid in cash on a monthly basis.

Remuneration Structure
Remuneration for directors at Yamaha Motor is composed of base compensation (fixed compensation), performance-based bonuses, and performancebased share compensation, and from fiscal 2022, the proportion of
performance-based compensation was raised. Renumeration for the president
and representative director is generally 40% base compensation, 30% performance-based bonuses, and 30% performance-based share compensation, andremuneration for other executive officers is set based on this precedent.

Previous
system1.0

0

Basic Policy• To be a Kando Creating Company, Yamaha Motor encourages its executives
to the maximum extent possible to perform their duties in accordance with
its Management Principles and Action Guidelines.
• Toward realizing the Company’s Long-Term Vision for 2030, executive
remuneration shall offer strong motivation for achieving managementtargets in the Medium-Term Management Plan and other plans.
• Remuneration shall function as an incentive for achieving sustainable growthof our corporate value and be shared as company profit by management
and shareholders.
• Remuneration amounts shall be set at a level capable of securing andretaining diverse, outstanding human resources suitable for the roles andresponsibilities to be carried out by our management.
• Yamaha Motor shall carry out initiatives befitting the Company to thegreatest extent possible to address important societal issues (materiality).

The Company stipulates the three-year average of ROA as indicated in thegraph.
Adjustments are made according to each indicator after deliberations by the
Executive Personnel Committee.
• Level of achievement for consolidated net sales and consolidated operating income targets• Level of progress with the Medium-Term Management Plan aimed atrealizing the Long-Term Vision for 2030
• Other events affecting corporate value and brand value• Overall progress on addressing materiality initiatives• External ESG evaluation

2.0

Companywide performancebased bonus (30%)

Base compensation (40%)

Total dividends during the
TSR evaluation period

Average closing share price in the monthprior to the start of the
TSR evaluation period (December)

Dividend-inclusive TOPIX growth rate =50%

Average dividend-inclusive TOPIX closing price in the final month of the final year of the
TSR evaluation period (December)

0%

50%

150%

100%

Average dividend-inclusive TOPIX closing price in the month prior to the start of the
TSR evaluation period (December)

200%

Company TSR ÷ growth rate of TOPIX including dividends

Executive Compensation in Fiscal 2021
In fiscal 2021, the Company’s three-year ROA average was 8.1%. However,the long-term loans payable urgently raised to address the impacts of the
COVID-19 pandemic have been excluded from the calculation. In accordance with remuneration rules, the ROA evaluation coefficient was set at1.75 after carrying out a comprehensive assessment of business performance, due to record profits following a rebound in the market triggeredby the impacts of the COVID-19 pandemic the previous fiscal year. Under
officer remuneration rules, if consolidated net income exceeds ¥150 billion,¥150 billion is used when calculating the total amount for Companywide
performance-based bonuses. As a result, the pool of funds for

Companywide performance-based bonuses for directors came to ¥499
million (consolidated net income of ¥150 billion × 0.19% × ROA evaluation
coefficient of 1.75). The pool of funds was distributed among executives inaccordance with the coefficients determined for each position.
For executive officers who do not serve concurrently as directors, thesame calculation method (consolidated net income × 0.08% × ROA evaluation coefficient) is used to calculate the pool of funds, which is then distributed among executives in accordance with the coefficients determined foreach position.

Performance-based
share compensation (30%)


Evaluation indicators: net income attributable to owners of parent, ROA (in the ROAbased evaluation, the amount is adjusted according to factors that include figures for net
sales and operating income, progress with the Medium-Term Management Plan andother directives, materiality initiatives, and an external ESG evaluation)

Relative TSR evaluation over three-year period(relative to TOPIX growth rate including dividends)* The ratio of performance-based compensation is calculated based on the base compensation.

Breakdown of Compensation Linked to Consolidated Performance
Compensation Linked to Individual Performance
Compensation Linked to Consolidated Performance
Pool of funds
Net income attributable to owners of parent
x Preset percentage of 0.14%(0.09% for executive officers who do not serve concurrently as directors)*x Evaluation coefficient based on ROA 0–2x(including adjustments based on other business performance metrics)

0–2x of base amount relative to achievement of and progress toward predetermined indicators

Financial Evaluation

Non-Financial Evaluation

Takes into account year-on-year comparisons and degreeof target achievement for net sales, operating income,and ROA in the division for which they are responsible

Takes into account degree of progress on initiatives in theMedium-Term Management Plan, grooming of future
executive officers and candidates for senior management
positions, and contributions to corporate value andbrand value

Ratio of financial and non-financial evaluation• Directors: 1 to 1 (Executive officers: 1 to 1)
Ratio of compensation linked to consolidated performance and compensation linked to individual performance• Representative director: 1 to 0 • Directors: 2 to 1 (Executive officers: 1 to 3)* Percentage of net income attributable to the owners of the parent has been revised from fiscal 2022, taking into account increases in the Company’s profit levels, changes to the
executive structure, and other factors.

74

Yamaha Motor Co., Ltd. Integrated Report 2022(¥ million)
Number ofapplicable
executives(persons)

Basic
compensation

Directors(excluding outside directors)

8

Outside directors
Audit & Supervisory Board members(excluding outside Audit &Supervisory Board members)

Officer classification

Compensation linked to performance

Remuneration of shareswith restriction ontransfer

Total

44

110

945

—

—

—

66

72

—

—

—

72

3

33

—

—

—

33

17

479

483

44

110

1,116

Companywide performance-based bonus

Individual performancebased bonus

308

483

4

66

2

Outside Audit & Supervisory Board
members
Total

Notes 1. The amount of base compensation mentioned above is the total compensation, etc., paid (monetary compensation) in fiscal 2021.
2. Figures include three directors and one Audit & Supervisory Board member who left their positions during this fiscal year.
3. T he amount of Companywide performance-based bonuses mentioned above is the amount paid (monetary compensation) in April 2022 based on performance, etc.,
in fiscal 2021.
4. T he amount of performance-based share compensation mentioned above is the pool of funds posted as an expense in fiscal 2021. Common stock (restricted stock) in Yamaha
Motor has been awarded as share-based compensation to directors (except outside directors) and executive officers with some conditions (for example, the stocks cannot betransferred until the director or executive officer leaves his/her position).

Yamaha Motor Co., Ltd. Integrated Report 2022

75

Management Platforms

Risk Management

Please visit our corporate website for more information on risk management.
https://global.yamaha-motor.com/about/csr/risk/

The Yamaha Motor Group is working on risk management, crisis management, and business continuity as follows.

Fundamental Approach to Risk Management 
To carry out risk management, Yamaha Motor has established andoperates an appropriate organizational structure and set of rules, aswell as engages in risk-reduction activities. As part of regular prevention efforts, divisions responsible for risk prevention and mitigation areclarified, countermeasures for risks the Group should respond todeveloped, and activities therein conducted on a Groupwide basis.
If a major crisis situation occurs, the Emergency Countermeasure
Headquarters is established based on internal regulations and otherfactors and led by the president and chief executive officer to minimize
the damage and aftereffects.

Crisis Management Structure and Activities 
The Yamaha Motor Group works to minimize the damage from andquickly resolve crisis situations as per the Rules for Initial Response to an
Emergency.
In the event of a disaster, accident, or compliance-related incident at theGroup, the division involved will report to the risk management supervisory
section or the divisions in charge of risk management as per standards fordetermining the level of reporting, which are set in advance. If the reported

event is of a scale significant enough to warrant the involvement of Groupmanagement or multiple divisions and/or companies, the risk management
supervisory section will refer the matter to a response team designated inadvance, and an Emergency Countermeasure Headquarters, chaired by thepresident, will be established. The headquarters will work to understandthe situation and formulate a provisional response and, if necessary, willpromptly report on the matter to customers and related parties.

Risk Management Structure 
Based on the Rules of Risk Management, the Company’s risk management structure is led by the Sustainability Committee and its subordinate council, the Sustainability Promotion Meeting, which comprises
the risk management supervisory sections and divisions charged withrisk management. The Sustainability Committee, chaired by the president and chief executive officer, monitors risks on a Groupwide basis.
The risks that need to be actively prevented and addressed as special
priorities are designated as significant risks at the Group level. In
addition to Groupwide risk assessments, these are comprehensively
judged and selected based on the Group’s business strategies, legal
and regulatory changes inside or outside the Group, information
concerning changes in the operating environment or the likelihood ofa risk event, or other developments. Accordingly, activities to addressrisks are checked and other measures taken to reduced risk on aGroupwide basis.

Risk Management Activity Cycle Risk management activities are promoted through the repetition of the
PDCA cycle as detailed on the right. The Yamaha Motor Group has
prepared a risk management ledger of all risks that need to be covered. Each risk is evaluated while judging the level of impact andpossibility of occurrence, and risk response action plans are developed
for risks that need to be addressed. The progress of these responses ismonitored over a six-month period and an annual summary of activities to address risks is compiled at the end of the fiscal year in an effort
to reduce risks.

President and chief executive officer
Seeking of advice

Business Continuity Planning 

Making of recommendations

Sustainability Committee

Sustainability Promotion Meeting(a subordinate council of the Sustainability Committee)• Thorough implementation of policies• Reporting of important matters• Management based on rules• Reporting of urgent matters• Monitoring of activities• Consultation on individual issues

Headquarters’ divisions and Group companies• Analysis of information frominside and outside the Company• Designation of significant
risks at the Group level• Assessment of risk
management ledger• Formulation of activity
policies and plans• Review of risk management ledger• Incorporation of changes into
activity plan for the next fiscal year
• Review of activity results• Implementation ofactivities toaddress risks

Plan

Do

Act

Check
• Monitoring of activities

Background

Measures

Pandemics

This risk was selected because the Group has experienced a pandemic with
COVID-19. In order to ensure business continuity while safeguarding the healthof employees, there is a need to reexamine the effectiveness of internal rules byreviewing the activities carried out thus far.

The Group will continue to alter its countermeasures in response to risks of the pandemic’s
spread, review the definitions of various items, revise level-based pandemic countermeasures, andotherwise improve the effectiveness of its internal rules to ensure a uniform level of countermeasures for both domestic and overseas Group companies.

Cybersecurity

The degree of reliance on and the importance of information systems within theGroup’s business activities are increasing. Measures are needed to prevent leaksof personal or confidential information, information system failures, etc., causedby cyberattacks and computer virus infections.

The Group has established a Cybersecurity Policy and is taking measures covering both thetangible and intangible aspects of cybersecurity to increase its defenses against external attacks,
to detect attacks at an early stage, and to minimize damage in the event of an attack.

Products
containing
environmentallyhazardous
substancesCountries around the world have been steadily tightening regulations onenvironmentally hazardous substances, and the Group must strengthen control
structures to prevent violations of laws by the products it manufactures.

The Group takes steps for early prevention of violations of laws, regulations, and ordinances bymaintaining an accurate understanding of legal information in relevant countries, by communicating accurate information internally and externally to relevant departments, by conducting
rank-based training, by promoting the proper management systems as well as standardizing thesteps for handling increasingly complex laws and regulations, and by efficiently utilizing IT
systems.

Improperimport/export
procedures

In light of the growing number of bilateral and multilateral free trade agreements and the increasing need for import/export procedures for global logistics
among Group companies, the Group must further enhance its system forpreventing violations of agreements, regulations, ordinances, and laws.

Groupwide structures are being developed to prevent violations of laws, regulations, andordinances by tracking information pertaining to the enactment and revision of free trade
agreements, by standardizing work processes and properly educating relevant personnel in linewith the management frameworks stipulated in the Group rules, and by monitoring the implementation status of these measures on a daily and regular basis.

Violation of
copyright laws
regardingsoftwarelicensesComputer software is protected as copyrighted work and requires proper
management. However, due to the diversification of workstyles and changes in
the operating environment, such as cloud computing, licensing systems are
becoming more complicated and the risk of violating laws and regulations, even
without intention, is increasing.

For the early prevention of software license violations, the Group is raising its levels of internal
awareness by educating managers and employees. Additionally, the Group is strengthening andestablishing IT asset management systems and their operating practices.

BriberyAnti-corruption initiatives are being ramped up in every country and region, andas the Group conducts business activities on a global scale, there is a need to
implement an effective system for early prevention of regulatory violations and tostrengthen anti-bribery measures.

Based on the Yamaha Motor Group Anti-Bribery Policy, the Group is adhering to its anti-bribery
commitment and implementing related management systems on a global basis. It also conducts
training, monitoring, and risk assessments to address anti-bribery more effectively and systematically. From 2021, the Group has been reinforcing measures in areas with a high risk of corruption
and promoting the application and establishment of activities to achieve this.

Yamaha Motor Co., Ltd. Integrated Report 2022

tangible and intangible effects are carried out comprehensively andcontinuously.
Another concern is the potential outbreak of pandemics. To prepare
for such events, Group companies have developed infection prevention
measures and identified issues that could affect the continuity of theiroperations in order to formulate response plans. In regard to the COVID-19
pandemic that has wrought havoc from fiscal 2020, we took measures inaccordance with our Business Continuity Guidelines (Novel Influenza
Version) and set up a COVID-19 Task Force headed by the president, whichcollected information, set response policies, and disseminated directives
and information. We instructed Yamaha Motor employees and theirfamilies stationed overseas in certain countries to return to Japan based on
the spread of COVID-19 infections and local medical risks. For employees
working at the headquarters, we adopted teleworking and staggered
office hours. We are implementing a thorough range of measures toprevent infections while continuing to monitor infection trends around theworld, such as the preparation of an intranet site for sharing information
between the headquarters and Group companies.

Cybersecurity Efforts 

Significant Risks at the Group Level in 2021 

76

To prepare against envisioned risks that could impact the continuity of its
business, Yamaha Motor has formulated the Rules of Business Continuity
and responds as per those rules.
Yamaha Motor’s primary operations are concentrated in Shizuoka
Prefecture and could be affected if a major earthquake were to occur
in the Nankai Trough. To prepare for this, the Group enacts disasterprevention and mitigation initiatives based on the damage projected bygovernment bodies. These include making buildings and equipment
earthquake- and tsunami-resistant; maintaining emergency stockpiles offood, water, and other essentials; putting emergency methods for telecommunications in place; and regularly carrying out Companywide evacuation
drills, night drills (for some departments), and safety confirmation drills at
both the headquarters and Group companies located nearby. In addition tothese measures, we have formulated a business continuity plan (BCP) to
maintain our operations while placing foremost priority on the lives andsafety of our employees. Points of obstruction to restoration efforts wereidentified and addressed, procedures to restore operations clarified withsupport personnel selected in advance, and a system for gathering supply
chain information is in place. These and other measures addressing both

Cyberattacks have become increasingly advanced and sophisticated inrecent years, and businesses are faced with a heightened risk of infection
by computer viruses, leakage of personal and confidential information, andinformation system failures. The Yamaha Motor Group has thus established a Cybersecurity Policy with the aim of protecting the products andservices used by its customers as well as its information assets.
In addition to the basic defensive measures already in place, such as amonthly vulnerability analysis that includes anti-malware measures, theGroup has a Security Operation Center (SOC) that monitors for irregularities to enable early detection and response and a Computer Security
Incident Response Team (CSIRT) that responds to incidents to prepare forcontingencies. The Group also provides training to increase employees’cybersecurity literacy, conducts assessments to ascertain the situation ateach Group company and to develop improvement plans, and makesother ongoing efforts to reduce cybersecurity risks. In fiscal 2021, there
were no information security or cybersecurity violations.

Information Management Initiatives 
In fiscal 2013, the Yamaha Motor Group established its Group Operational
Guidelines that stipulate Groupwide policies related to all areas of information management, including confidentiality management, document
control, protection of personal information, and management of disclosed
information. We have been carrying out activities in line with these guidelines since. The development of communications technologies and greateruse of big data as well as the enactment of new personal information
protection laws in Europe in fiscal 2018 triggered the gradual ratification ofstrict personal information laws and ordinances in various countries. In
response, Yamaha Motor revised its Information Management GroupOperations Guidelines in fiscal 2020, laying out provisions on the handlingof personal information and designating organizational roles, in particular.
Furthermore, the Group has established a structure for protecting personal
information and set rules for handling personal information (including

notification of acquisition and gaining of consent before acquisition, safety
management measures, response to inquiries into individual rights regarding personal information, and response to information leaks). Yamaha
Motor and its Group companies in countries around the world are working
together to achieve global compliance with the new guidelines.
The Yamaha Motor Group Global Privacy Policy was also revised in fiscal
2020 to promote compliance with personal information protection laws in
the countries we operate in. In relation to information management, eachyear, we monitor how information is handled among Group companies
and make recommendations based on the results. At the same time, we
conduct group training sessions, e-learning seminars, and other educational and awareness-building activities to ensure the appropriate handlingof information. In fiscal 2021, there were no allegations recognized byregulatory authorities as being violations of our customers’ privacy.

Yamaha Motor Co., Ltd. Integrated Report 2022

77

Management Platforms

Compliance

Please visit our website for more information on compliance initiatives.
https://global.yamaha-motor.com/about/csr/compliance/

This section explains the Company’s compliance-related initiatives.

Compliance Structure 
The Yamaha Motor Group has established a Sustainability
Committee, chaired by the president and chief executive officer,
to create a structure to ensure legal and regulatory compliancethroughout the entire Group. The Committee deliberates plans toensure compliance, and monitors the implementation of thoseplans and the corporate culture with regard to compliance. The
outcomes of these deliberations and monitoring are reported, as
appropriate, to the Board of Directors as items deliberated by the
Sustainability Committee, together with ESG risks, and a structure
has been established to ensure their effectiveness.

Specific activities are carried out as per the ComplianceManagement Rules, and the compliance supervising section manages the Group’s overall activities.
As a way to ensure that compliance is incorporated into thecorporate culture, Groupwide compliance awareness surveys arecarried out each year to confirm the effectiveness of compliancemeasures, including the degree of understanding and scope of
implementation of the Code of Ethics, the extent to which reporting lines and hotlines are used, and the effectiveness of training
programs. Based on the results of these surveys and social trends,
the Code of Ethics Guidebook is updated annually, and the Codeof Ethics is reviewed regularly.

“import/export controls,” “Subcontracting Act related topics,”“prevention of insider trading,” “intellectual property rights,”“IT risk,” “substances of concern controls,” “harassment,” and“cybersecurity.” In addition to online training programs,
e-learning is used to provide training in a wide range of fields.
Other than the examples above, this training includes “security
trade control” and “protection of personal information.”In the 2021 compliance awareness survey, in response to thequestion, “Do you consider the Company’s compliance training to
be meaningful?” 82% of respondents answered “Yes” and 4%
answered “No.”Training in the Code of Ethics and legal and regulatory trainingis also carried out for new employees of overseas Group companies, and the results are monitored at the head office.

Compliance Training in Japan - No. of Attendees(Aggregate Attendees)
131

Executive officer training

229

Division manager training
Workplace training

18,766

Laws and regulations training

19,876E-learning

107,617

Level-specific stratified training (division manager,
manager, floor manager, new hires, mid-career hires, andtemporary staff, etc.)

2,366Compliance Training at Overseas Group Companies- No. of Attendees (Aggregate Attendees)
North
America,
Europe,Australia

Central andSouthAmericaAsia(excl. China)

China

Total

17,212

9,472

26,4001,981

55,065

Code of Ethics 
The Yamaha Motor Group has formulated and disseminatedthroughout the Group its Code of Ethics, which stipulates standards of behavior to be observed based on the Company Pledge,
passed down since the Company’s foundation, and theManagement Principles. The Code has been translated into local
languages at overseas Group companies, and an educational
video has been prepared in 11 languages for use in training at
Group companies to further familiarize all employees with theCode of Ethics. Group companies also holdtraining sessions on the Code of Ethics for
new employees.
In the 2021 compliance awareness survey,
in response to the question “Do you have afull understanding of the contents of theCode of Ethics?” 87% of respondents
answered “Yes” while 4% answered “No.”

Compliance Risk Assessment 
Our Group companies operate all over the world and there aremany laws that must be followed. A Groupwide risk assessment iscarried out each year to identify the common compliance risks
that need to be recognized, including bribery and corruption,

cartels, and security-related export controls. These risks are thenassessed at individual operating divisions and Group companies,
appropriate countermeasures are implemented, and their implementation status is monitored.

Compliance and Legal and Regulatory Training 
A compliance activity plan is formulated each year, and various opportunities are used to conduct compliance training based on this plan.
a. Compliance training as part of level-specific training
All new employees—both new graduates as well as mid-careerhires—and temporary staff take compliance training that focuseson the Code of Ethics when they join the Company. In addition,
when an employee is newly promoted to a managerial or supervisory position, division manager, or head of a business site, theytake compliance training focused on that position or function
each year or as required. This training includes examples of harassment, and how to respond when cases are brought to their attention for consultation. Thanks to activities like these, in the 2021
compliance awareness survey, in response to the question, “Whenyou are unsure of something in the course of your work, do you
place top priority on compliance?” 92% of respondents answered“Yes” and 1% answered “No.”78

Yamaha Motor Co., Ltd. Integrated Report 2022

b. Compliance training for all employees
All persons who work for Yamaha Motor take compliance training, with the aim of each employee creating a model that will
earn the trust of society for the Company as a whole by practicing
compliance. This compliance training is carried out each year(including for temporary staff), and records of attendance areretained. In addition, division managers and executive officers
who are primarily engaged in operating activities take annualcompliance training on given topics in an effort for top management themselves to implement compliance.
c. Specialized training on laws and regulations
Group training programs covering laws and regulations deemed
to entail significant risk in the execution of the Company’s business activities are carried out annually on select topics. Our legal
and regulatory training in 2021 included such topics as the“Antimonopoly Act,” “bribery of foreign public officials,”

Whistleblowing Systems (Compliance Hotlines) 
The Yamaha Motor Group has a whistleblowing system for reporting any acts that may be in violation of the Code of Ethics. The
Yamaha Motor Group Compliance Hotline for Yamaha Motor anddomestic Group companies has been carrying out integrated
management of our harassment and compliance hotlines since2020. In 2018, the Global Compliance Hotline was introduced foroverseas Group companies and since 2021, the system has beenstrengthened by broadening the scope of eligibility to use thehotline and offering the service in more languages. To make iteasy to report issues, both hotlines are established at specialized
outside institutions and accept anonymous reports. Reports that
we receive through the hotline are managed strictly as confidential information based on our internal rules. In carrying out investigations, we give consideration to protection of the personal
information of the person making the report as well as that of theperson who is the target of the report, while ensuring the confidentiality of matters related to the case in question. In the casethat misconduct is revealed through investigations, strict punishments are carried out. At the same time, we promptly executecorrective action as well as take measures to prevent recurrence.
Whistleblowing Systems (Compliance Hotlines)

Reports
made

2017

2018

2019

2020

2021

108

120

159

186

182

Through such responses, we work to prevent the occurrence ofillegal acts and misconduct and enable their early discovery.
To protect whistleblowers, internal rules clearly state that no
directors/officers/employees of the Company and the Company’sgroup companies shall treat the person making a report disadvantageously in any manner because the person made the report. We
are striving to create a system and culture of compliance by ensuring employees have a deep understanding of the whistleblowing
system, and enabling rapid and proper functioning of the system.
Yamaha Motor established a Fair Business Hotline in 2017 as acontact point for suppliers, and since 2019, its use has been
expanded to include all business partners with which we haveongoing transactions.
The number of hotlines (including consultations) received in
2021 was 182, and below is the breakdown of the hotlines.
Whistleblowing systems have also been established and operated
individually at major Group companies, based on the local laws
and regulations and other circumstances specific to each respective company.

Subjects of Reports in 2021

Percent of total

Human resources and labor relations

64%

Financial / accounting

6%

Information management

3%

Other regulatory violations

14%

Human rights violation

0%

Corruption prevention

0%

Other

13%

Yamaha Motor Co., Ltd. Integrated Report 2022

79

Environmental and Social Data

Climate Change Mitigation Measures
Item

Unit

Number of fuel-injected motorcycles sold
Sales oflow-carbon
products

Number of motorcycles featuring a “BLUE CORE” engine soldNumber of electrically power-assisted bicycles sold (including
number of drive units)

Thousandsof vehicles

2017

2018

2019

2020

2021

3,524

3,564

3,554

3,363

3,993

2,538

2,800

2,901

2,245

3,184

489

569

648

670

821

SASB Requirements
SASB Index*

Item

Unit

2021
4,375

TR-AU-000.A

Number of vehicles manufactured

Thousandsof vehicles

TR-AU-000.B

Number of vehicles soldThousandsof vehicles

4,490

TR-AU-250a.2

Number of safety-related defect complaints,
percentage investigated%100* Investigated all complaints that the Ministry of Land, Infrastructure,
Transport and Tourism of Japan had requested to investigate

TR-AU-250a.3

Number of motorcycles recalled (in Japan)

Number

39,872

TR-AU-310a.1

Percentage of active workforce covered undercollective bargaining agreements%

61

Number of work stoppages due to strikes andlockouts

Number0

Number of workers involved in work stoppages,
multiplied by number of days idle

Man-days

0

Asia

km/L

49

EuropegCO2/km

77

North America

mpg

70

Japan

km/L

36

Oceania

km/L

26

Central andSouth America

km/L

44

Other

km/L

52

NumberNot applicable

Activity Metric

Product Safety

Facts and Data

Labor Practices
TR-AU-310a.2

81 Environmental and Social Data
82 Eleven-Year Summary
84 Management’s Discussion and Analysis of
Fiscal 2021 Business Results
88 Global Group Network
90 Corporate Information / Stock Information

TR-AU-410a.1

Sales-weighted average
passenger fleet fueleconomy, by region

Fuel Economy &Use Phase
Emissions

Number of (1) zero emission vehicles (ZEVs) sold,TR-AU-410a.2(2) hybrid vehicles (HEVs) sold, and(3) plug-in hybrid vehicles (PHEVs) soldMaterials
Sourcing

TR-AU-410a.3

Strategy for managing model-year fuel economy
and emissions risks and opportunities• Evaluation of risks and opportunities• Yamaha carbon neutrality strategies
https://global.yamaha-motor.com/about/csr/the_environment/plan-2050/

TR-AU-440a.1

Management of risks associated with theuse of critical materials• Response to supplier human rights issues• Response to procurement risks
https://global.yamaha-motor.com/about/csr/stakeholder/business-partners/

Weight of end-of-life products recoveredt

49,557

Percentage of above waste recycled

%

66.0

Weight of end-of-life products recoveredt—

Percentage of materials recycled fromend-of-life products%

97.6 (on a weight basis)* FY2022 domestic recycling results

Recyclability of products%

Target value: Set at 90%

TR-AU-440b.1

Materials
Efficiency &Recycling

TR-AU-440b.2

TR-AU-440b.3* A disclosure index for the automotive industry required by the Sustainability Accounting Standards Board (SASB)

80

Yamaha Motor Co., Ltd. Integrated Report 2022

TR: Transportation; AU: Automobiles

Yamaha Motor Co., Ltd. Integrated Report 2022

81Facts and Data

Eleven-Year Summary
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries (Years Ended December 31)

Millions of yen

For the year:
Net sales
Sales by product:
Motorcycles
Marine Products
Power Products
Industrial Machinery and Robots
Other Products
Gross profit
Operating income (loss)
Ordinary income (loss)
Net income (loss) attributable to ownersof parent
Net cash provided by (used in)operating activities
Net cash used in investing activities
Free cash flow
Net cash provided by (used in)financing activities
Capital expenditures
Depreciation expenses
At year-end:
Total assets
Net assets
Interest-bearing debt
Ratios:Operating income margin (%)
Return on shareholder’s equity (ROE) (%)
Equity ratio (%)
Price/earnings ratio (times)
Debt/equity ratio (%)

2011

2012

2013

2014

2015

2016

2017

2018

¥1,276,159¥1,207,675¥1,410,472¥1,521,207¥1,631,158¥1,502,834¥1,670,090¥1,673,137

887,556
178,929
100,257
34,32675,089276,046
53,40563,49526,960798,676
196,320
103,588
30,81378,276
235,068
18,59827,267
7,489

928,203
243,362
126,722
32,261
79,922
318,765
55,13760,09244,057

977,580
276,367
142,204
38,942
86,113372,849
87,24997,27968,452

1,032,560
309,337
169,495
46,501
73,262436,525
130,329
125,23160,023930,112297,216
152,310
46,871
76,322402,660
108,594
102,073
63,153

1,045,211
323,838
151,622
67,571
81,845
458,629
149,782
154,826
101,603

1,022,174
344,658
153,778
69,891
82,634455,173
140,787
137,969
93,36633,328(2,385)66,976

93,61828,475

143,163

126,342

58,858(46,517)(13,189)(51,927)(51,081)(53,466)
15,761(62,679)
4,296
3,620

(72,470)
21,148(8,908)(68,475)(40,000)
6,845(46,541)
96,622(67,627)(53,194)
73,147(52,830)(48,274)
10,584(26,423)

45,04933,57848,78834,27856,80036,40765,871
37,66764,06444,324

61,33042,43456,53245,45755,06846,405¥900,420
309,914274,721¥962,329
341,561
326,976¥1,146,591
422,792
382,929¥1,310,040
503,224
403,652¥1,305,236
531,700
410,148¥1,318,776
575,404
364,381¥1,415,845
665,232
353,490¥1,420,854
695,743356,688

4.2
9.7
31.2
12.6
97.8

1.5
2.5
32.0
44.2
106.2

3.9
12.7
33.5
12.5
99.7

5.7
16.2
35.1
12.5
87.8

8.0
12.6
37.6
16.0
83.6

7.2
12.3
40.5
14.2
68.2

9.0
17.6
44.0
12.7
56.8

8.4
14.6
46.3
8.1
54.3

For the year:
Net sales
Sales by segment:
Land Mobility
Marine Products
Robotics
Financial Services
Other Products
Gross profit
Operating income (loss)
Ordinary income (loss)
Net income (loss) attributable to ownersof parent
Net cash provided by (used in)operating activities
Net cash used in investing activities
Free cash flow
Net cash provided by (used in)financing activities
Capital expenditures
Depreciation expenses
At year-end:
Total assets
Net assets
Interest-bearing debt
Ratios:Operating income margin (%)
Return on shareholder’s equity (ROE) (%)
Equity ratio (%)
Price/earnings ratio (times)
Debt/equity ratio (%)% change

2019

2020

2021

2021/2020¥1,664,764¥1,471,298¥1,812,496

23.2

1,119,840
350,059
75,64440,92878,292442,331
115,364
119,479
75,736

946,476
328,344
83,00546,05867,412371,812
81,672
87,66853,072

1,179,736
391,130
120,280
48,64372,704
506,840
182,342
189,407
155,578

24.6
19.1
44.9
5.6
7.8
36.3
123.3
116.0
193.1

99,127

110,487

141,336

27.9(79,662)
19,465(36,760)(43,950)
66,537
83,668(51,026)
90,309(93,488)16.1
35.7(211.7)58,05349,68953,75648,241

66,96351,12924.6
6.0¥1,532,810
751,828
364,951¥1,640,913
749,158
466,935¥1,832,917
900,670
458,514

11.7
20.2
(1.8)

6.9
11.1
46.0
10.2
51.8

5.6
7.5
43.6
13.9
65.3

10.1
19.8
46.9
6.2
53.4

80.4
164.0
7.6
(55.0)Yen

Per share amounts:
Net income (loss)—basic
Net income—diluted
Net assets
Cash dividends

Per share amounts:¥ 77.2377.23804.2615.50¥ 21.45—881.8810.00¥ 126.20
126.201,099.84
26.00¥ 196.06
196.04
1,316.58
40.00¥ 171.89
171.88
1,405.35
44.00¥ 180.84
180.83
1,529.53
60.00¥ 290.93—
1,783.35
88.00¥  267.35—
1,882.64
90.00

Net income (loss)—basic
Net income—diluted
Net assets
Cash dividends¥  216.83—
2,018.84
90.00¥   151.89—
2,045.15
60.00¥   445.67—
2,484.31
115.00

193.4
—
21.5
91.7

Millions of yen,
except per share data

Share performance (at year-end):
Price per share (yen)Market capitalization
Other data (at year-end):
Number of shareholders
Number of employees¥    974
340,018¥    949
331,288¥  1,577
550,585¥  2,442
852,683¥  2,744
958,264¥  2,574
898,931¥    3,695
1,290,413¥  2,159
753,989

32,25954,67732,873
53,95829,47453,38230,416
52,662

34,21453,30642,031
53,15034,56653,57951,11353,977

Share performance (at year-end):
Price per share (yen)Market capitalization
Other data (at year-end):
Number of shareholders
Number of employees¥  2,203
771,079¥  2,104
735,207¥  2,759
954,22931.1
29.8

67,741
55,25582,73052,437

79,112
51,243

(4.4)
(2.3)

• The fiscal year for each business is the 12-month period commencing on January 1 and ending on December 31. References to years other than fiscal years refer to calendar years.
• With regard to amounts stated in million yen units, amounts less than ¥1 million are truncated. For amounts stated in 0.1 billion or billion yen units, amounts less than ¥0.1 billion or¥1 billion, respectively, are rounded off.
• From the fiscal year ended December 31, 2016, the presentation of sales finance-related income and expenses has changed from recording under “Selling, general and administrative
expenses,” “Non-operating income,” and “Non-operating expenses” to recording under “Net sales,” “Cost of sales,” and “Selling, general and administrative expenses.” To reflect thischange in the presentation method, the consolidated financial statements for the fiscal year ended December 31, 2015 have been adjusted.
• From the fiscal year ended December 31, 2019, reporting segments have changed from “Motorcycles,” “Marine products,” “Power products,” and “Industrial machinery and robots” to“Land Mobility,” “Marine Products,” “Robotics,” and “Financial Services.”• From the fiscal year ended December 31, 2020, the automobile engine and components business previously included in the Other Products segment is now included in the Land Mobility
segment, thus figures for the fiscal year ended December 31, 2019 have been adjusted to reflect this change.

82

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Yamaha Motor Co., Ltd. Integrated Report 2022

83

Facts and DataManagement’s Discussion and Analysis of Fiscal 2021 Business Results

Overview 
During the fiscal year ended December 31, 2021, the pace of recovery
in the global economy slowed as COVID-19 case numbers once again
began to rise due to the emergence of new variants, disruptions that
hit distribution and supply chains as heightened demand accompanied
the resumption of economic activities, labor shortages, and more. At
the same time, COVID-19 vaccination rollouts moved forward in many
countries, and restrictions on economic activities were gradually easedin Europe and North America, resulting in a steady economic recovery
as consumer spending picked up and capital investment rose. Yamaha
Motor’s businesses, meanwhile, felt the impacts of ongoing shortagesof semiconductors and other parts; however, demand in businesssegments began to recover in conjunction with the lifting of lockdowns in various countries and the enactment of economic policies
based on the premise of living with COVID-19.
In this economic environment, the Company implemented management policies focusing on breaking even and exercising responsiveness. These policies guided us in pursuing our premium model
segment strategy in the motorcycle markets of emerging economies
and in advancing structural reforms at factories. In addition, theCompany was able to minimize the negative impacts of decreased

production volumes and other factors by constantly sharing information on logistics issues and shortages in the supply of parts on a global
basis and by responding according to the situation each factory faced.
As a result, Yamaha Motor posted record-high sales and income infiscal 2021. Consolidated net sales increased ¥341.2 billion (23.2%)
year on year, to ¥1,812.5 billion; operating income rose by ¥100.7
billion (123.3%) to ¥182.3 billion; ordinary income grew ¥101.7 billion(116.0%) to ¥189.4 billion; and net income attributable to owners ofparent rose ¥102.5 billion (193.1%) to ¥155.6 billion. Exchange rates
for the fiscal year were ¥110 to the U.S. dollar (up ¥3 year on year)and ¥130 to the euro (up ¥8 year on year).
Despite reduced production volumes due to supply shortages ofsemiconductors and other parts as well as personnel shortages, net
sales increased as a result of higher unit sales and unit prices.
Operating income also increased substantially owing to expanded
sales, the benefits of efforts to lower the fixed cost ratio through thegrowing prevalence of teleworking and use of digital technologies
facilitating such workstyles, and more favorable foreign exchange
rates. These factors helped absorb the impacts of soaring logistics andraw material costs.

Factors Impacting Operating Income(¥ billion)

Excluding growth strategy expenses andforeign exchange effects

Land Mobility
Business

Marine Products
Business+18.5

Robotics
Business

Financial Services
Business

+11.1

+14.1

Other Products
Business

Growth Strategy
Expense Decreases+1.7

Exchange
Effects

+11.2

182.3

–0.9

Emerging Markets
Motorcycle Business

+37.2
RV

Developed Markets
Motorcycle Business

+7.1

SPV

+0.3

+0.4

から )

2020

Net sales in the Land Mobility segment increased ¥233.3 billion(24.6%) year on year, to ¥1,179.7 billion, and operating income rose
¥50.3 billion (272.4%) year on year, to ¥68.7 billion.
Sales of motorcycles in developed markets were up due to higher
unit sales in all regions driven by a boom in outdoor and family recreから )ation. This increase resulted in a reduction in losses. Conversely, inventory shortages continued, attributable to insufficient supplies of parts
otorcycle Businesssuch as semiconductors and to logistics delays caused by a lack ofshipping containers. While these operations were unable to turn aprofit, a reduction in losses was achieved.
As for sales of motorcycles in emerging markets, demand in countries such as the Philippines, Indonesia, and Thailand increased year on
year as these countries shifted their strategies to adopt an approach
84

Yamaha Motor Co., Ltd. Integrated Report 2022

Robotics Segment
Net sales in the Robotics segment grew ¥37.3 billion (44.9%) year on
year, to ¥120.3 billion, and operating income was ¥17.6 billion, compared with ¥3.3 billion in fiscal 2020.
In the first half of fiscal 2021, capital investment was galvanized as
the effects of COVID-19 subsided, particularly in Asian markets such asemphasizing both COVID-19 countermeasures and a measured
resumption of economic activities. Although the utilization rates offactories and dealerships were down as COVID-19 case numbers once
again began to increase, the model mix improved due to the growth insales of premium segment models, resulting in higher sales and profits.
In the recreational vehicle category—all-terrain vehicles (ATVs),
recreational off-highway vehicles (ROVs), and snowmobiles—strong
leisure demand continued, even amid the resurgence of COVID-19
cases. Despite the impact of production delays due to parts supply
shortages and other factors, the segment returned to profitability as aresult of higher sales and profits thanks to increased unit sales following the strong performance of the Wolverine RMAX series.
Regarding electrically power-assisted bicycles, both sales and profits
increased due to continued strong sales of complete bicycles in Japan

China, Taiwan, and South Korea. Unit sales of surface mounters andindustrial robots increased due to the strong sales to Japan, Europe,and North America seen in the second half of the fiscal year. In addition, Yamaha Robotics Holdings Co., Ltd. returned to profitability due
to strong sales and the benefits of structural reforms. As a result, theRobotics segment achieved higher sales and profits.

Financial Services Segment
Net sales in the Financial Services segment were up ¥2.6 billion (5.6%)
year on year, to ¥48.6 billion, and operating income rose ¥11.6 billion(153.1%) to ¥19.1 billion.
Although receivables from wholesalers decreased as a result of
shrinking inventories, sales and profits grew due to a rise in retailfinancing and a decrease in the allowance for doubtful accounts
recorded on a one-time basis.

Other Products Segment
Net sales in the Other Products segment grew ¥5.3 billion (7.8%) year
on year, to ¥72.7 billion, but operating income declined ¥1.7 billion(97.6%) to less than ¥1.0 billion.
Net sales increased due to an upturn in unit sales of golf cars andmulti-purpose engines, but operating income decreased from fiscal
2020 due to higher expenses and the absence of one-time factors
seen the previous fiscal year.

R&D Expenses 

2021

Performance by Business Segment Land Mobility Segment

Marine Products Segment
Net sales in the Marine Products segment increased ¥62.8 billion(19.1%) year on year, to ¥391.1 billion, and operating income
was up ¥26.2 billion (51.7%) to ¥76.8 billion.
Demand for large outboard motor models remained strong indeveloped markets, while outboard demand in emerging markets
also recovered. Despite the impact of shipping delays due to theglobal shortage of shipping containers, unit sales rose as a resultof an improvement in supply volumes stemming from increased
production. Unit sales of personal watercraft also grew because ofefforts to respond to delays in raw material procurement. As aresult, the Marine Products segment achieved higher sales andprofits overall.

Overall R&D expenses for the Yamaha Motor Group amounted to¥95.3 billion in fiscal 2021.
The Yamaha Motor Group’s corporate mission is to be a Kando
Creating Company and offer new excitement and more fulfilling lives
for people all over the world. To that end, we continuously take on
new challenges with our uniquely Yamaha Monozukuri approach—engineering, manufacturing, and marketing products with an emphasis on craftsmanship and excellence—which aims to create new,original, and innovative ideas and messages; technologies that bring
joy and foster trust among our customers; attractive designs that
express Refined Dynamism; and the power to forge lifelong ties with

+45.0

81.7

and e-Kits in Europe thanks to the reevaluation of the viability ofbicycles for commuting to preschools, schools, and work.

our customers. Through our technologies that interweave human logic
with human sensibilities, we offer unique, high-quality products andservices with the goals of achieving sustainable growth and improving
medium- to long-term corporate value. Moreover, we are ramping up
R&D investments targeting new and growing businesses that contribute to a more sustainable world while advancing the development of
powertrains compatible with a diverse range of energy sources. We
thereby aim to create value in a manner that is unique to Yamaha
Motor through the use of digital technologies and the acceleration ofco-creation activities.

R&D Expenses and R&D Expenses to Net Sales Ratio
Robotics Business¥8.8 billion(9.2%)

Marine Products
Business¥13.8 billion(14.5%)

Other Products Business¥2.3 billion (2.4%)(¥ billion)

9.0

100

8.0

R&D Expenses
by Segment

95

95.3 billion

90

¥

(%)

105

95

6.0
5.3

85

Land Mobility Business¥70.4 billion (73.9%)

7.0

0

5.0

0
2017

R&D expenses

2018

2019

2020

2021

R&D expenses to net sales ratio

Yamaha Motor Co., Ltd. Integrated Report 2022

85

Facts and DataManagement’s Discussion and Analysis of Fiscal 2021 Business Results

Analysis of Financial Position 

Capital Resources and Liquidity 

Total assets as of the end of fiscal 2021 amounted to ¥1,832.9 billion,
an increase of ¥192.0 billion from December 31, 2020. Current assets
were up ¥123.1 billion largely due to an increase in inventories following production and logistics delays owing to a shortage of parts aswell as to an increase in notes and accounts receivable–trade becauseof higher sales around the world. Fixed assets rose ¥68.9 billion mainly
attributable to an increase in long-term sales finance receivables inassociation with higher retail financing.
Total liabilities increased by ¥40.5 billion to ¥932.2 billion, mainly
due to a rise in notes and accounts payable–trade.
Total net assets were up ¥151.5 billion to ¥900.7 billion, despite
having recorded ¥38.4 billion in cash dividends paid, as a result of

having posted ¥155.6 billion in net income attributable to owners ofparent and of a ¥37.7 billion increase stemming from foreign currency
conversion adjustments.

In addition, the Company acquired treasury shares worth ¥11.0
billion to heighten shareholder returns and capital efficiency.
As a result, the shareholders’ equity ratio was 46.9%, comparedwith 43.6% at the end of the previous fiscal year. The net debt/equity
ratio was 0.21 times, compared with 0. 27 times at the end of theprevious fiscal year.

Cash Flows 

The Yamaha Motor Group’s primary capital needs are covering thecosts of procuring the materials, parts, and other articles used in
product manufacturing; costs incurred in the manufacturing process;the purchasing costs for products and merchandise; selling, generaland administrative expenses; working capital; and capital
expenditures.
Group companies acquire short-term loans requiring payment
within one year denominated in local currencies to use as working
capital. Meanwhile, funds for capital expenditures come primarily, inprinciple, from internal reserves, including paid-in capital and retained
earnings.

In managing capital liquidity, Yamaha Motor secures the necessary
liquidity by creating and updating cash flow schedules on a timely
basis and properly maintaining cash and cash equivalents on hand.
In fiscal 2021, the Company was able to secure a year-on-yearincrease in free cash flow, despite a rise in working capital stemmingfrom higher inventories, through favorable sales driven by robust
demand in countries around the world and proceeds from the sale ofshares held in Yamaha Corporation. In addition, treasury shares wereacquired to heighten shareholder returns and capital efficiency.
Yamaha Motor remains committed to improving corporate value
based on the recognition that increasing returns to shareholders is an
important management priority.

Capital Expenditures 

Operating Cash Flow

Investing Cash Flow

Capital expenditures in fiscal 2021 totaled ¥67.0 billion.

Overall, net cash provided by operations in fiscal 2021 was ¥141.3
billion, compared with ¥110.5 billion the previous fiscal year. Thisoutcome mainly reflected cash provided from ¥199.7 billion in income
before taxes, etc., compared with ¥85.0 billion in the previous fiscal
year; ¥51.1 billion in depreciation, compared with ¥48.2 billion; anincrease in notes and accounts payable–trade of ¥14.5 billion, compared with an increase of ¥11.5 billion; a ¥5.0 billion decrease in sales
finance receivables, compared with an increase of ¥68.3 billion; andother factors. These factors outweighed cash outflows including an
increase in inventories of ¥76.2 billion, compared with a decrease of¥32.7 billion in the previous fiscal year, and an increase in notes andaccounts receivable–trade of ¥8.6 billion, compared with a decrease of¥17.3 billion.

Net cash used for investing in fiscal 2021 was ¥51.0 billion, comparedwith ¥44.0 billion the previous fiscal year, primarily reflecting ¥66.8
billion used for the purchase of fixed assets, compared with ¥51.4
billion in the previous fiscal year.

In the Land Mobility segment, capital expenditures amounted to¥45.8 billion and included outlays for reallocating production rolesat headquarters, upgrading production equipment, launching new
motorcycle models for overseas markets, and consolidating factories in
Taiwan. In the Marine Products segment, capital expenditures totaling¥13.0 billion were conducted for the purposes of launching new

Net Assets per Share and Equity Ratio(¥)(%)

Financing Cash Flow
Net cash used in financing activities during the fiscal year under review
was ¥93.5 billion, compared with ¥83.7 billion the previous fiscal year,
mainly as a result of cash dividends paid, repayment of loans payable,
and acquisition of treasury shares.

outboard motors and other products and upgrading production equipment. In the Robotics segment, the Company spent ¥3.6 billion on
research and development for surface mounters and industrial robots
and on the launch of new products, such as unmanned helicopters. In
the Other Products segment, ¥4.5 billion was invested in upgrading
equipment related to golf cars.

Cash Dividends 
The Company considers increasing returns to shareholders an important management issue as it endeavors to improve corporate value.
With a focus on striking a balance between investments for new
growth and returns to shareholders within the range of its cash flows
while maintaining and reinforcing the earnings power of its existing
businesses, Yamaha Motor seeks to pay dividends in a stable andsustainable manner, setting 30% of net income attributable to ownersof parent as a benchmark for its dividend payout ratio.

The Company has a basic policy of paying an interim dividend and a
year-end dividend. The decision-making body for the interim dividend
is the Board of Directors, while the General Meeting of Shareholders
decides the year-end dividend. The Company’s Articles of Incorporation
provide that the record date shall be June 30 for the interim dividendand December 31 for the year-end dividend.
The Company decided to pay a full-year dividend of ¥115 per share(including an interim dividend of ¥50 per share) for fiscal 2021.

Total Asset Turnover

Interest-Bearing Debt and Debt/Equity Ratio

Cash Dividends per Share and Payout Ratio(Times)(¥ billion)

50

1.3

500

2,000

40

1.2

1,500

30

1.1

2,484

2,500

As a result of the above activities, free cash flow for fiscal 2021 wasa positive ¥90.3 billion, compared with a positive ¥66.5 billion in theprevious fiscal year. Cash and cash equivalents totaled ¥274.9 billion,
an increase of ¥7.8 billion from the end of the previous fiscal year.
Meanwhile, interest-bearing debt on March 31, 2022 was ¥458.5
billion, a decrease of ¥8.4 billion from the end of the previous fiscal year.

(%)(¥)(%)

100

120

450

75

90

45

400

53.4 50

60

32.8*
30

350

25

30

15

0

0

60

115

46.9
459

1.04
1,000

20

1.0

500

10

0.9

0

0

0
2017
Net assets per share

2018

2019

Equity ratio

2020

2021

0
2017

2018

2019

2020

2021

2017
Interest-bearing debt

2018

2019

Debt/equity ratio

2020

2021

0
2017

Cash dividends per share

2018

2019

2020

2021

Payout ratio* Total Payout Ratio (includes acquisition of treasure shares)

86

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Yamaha Motor Co., Ltd. Integrated Report 2022

87

Facts and Data

Global Group Network (As of January 1, 2022)

Yamaha Motor’s diverse range of products, offered by its consolidated subsidiaries and equity-method affiliates in
30 countries and regions, are sold in over 180 countries and regions around the world. The Company’s main subsidiaries
and affiliates engaged in global operations are listed below.

Europe (Abbreviations) 
The Netherlands
Yamaha Motor Europe N.V. (YMENV)
Germany
Yamaha Motor Deutschland GmbH (YMG)
Italy
Yamaha Motor Research &Development Europe S.r.l. (YMRE)Yamaha Motor Racing S.r.l. (YMR)

FranceMBK Industrie
YAMAHA MOTOR FINANCE FRANCE SAS (YMFF)
Spain
Motor Center BCN S.A.

FinlandInhan Tehtaat Oy Ab
Russia
LLC Yamaha Motor CIS (YMCIS)

North America (Abbreviations) 
United States
Yamaha Motor Corporation, U.S.A. (YMUS)
Yamaha Motor Manufacturing Corporation ofAmerica (YMMC)
Yamaha Marine Systems Company Inc.
Siren Marine, Inc.
Skeeter Products, Inc.
Yamaha Jet Boat Manufacturing U.S.A., Inc. (YJBM)
Yamaha Golf-Car Company (YGC)
INDUSTRIAL POWER PRODUCTS OF AMERICA, INC.

TurkeyYamaha Motor Sanayi ve Ticaret Limited Sirketi

Africa (Abbreviation) Nigeria
CFAO Yamaha Motor Nigeria Ltd. (CYMNG)

Japan Yamaha Motor Finance Corporation, U.S.A. (YMFUS)
Yamaha Motor Ventures & Laboratory Silicon Valley,
Inc. (YMVSV)Yamaha Motor Exploratory Fund GP, L.L.C.
Yamaha Motor Distribution Latin America, Inc. (YDLA)Yamaha Motor Installment Receivables Corporation
Shinkawa U.S.A., Inc.
CanadaYamaha Motor Canada Ltd. (YMCA)
Yamaha Motor Finance Canada Ltd.

Yamaha Motorcycle Sales Japan Co., Ltd.
YAMAHA MOTOR ENGINEERING CO., LTD.
SUGO CO., LTD.
YAMAHA KUMAMOTO PRODUCTS CO., LTD.
Yamaha Marine Hokkaido Manufacturing Co., Ltd.
Yamaha Amakusa Manufacturing Co., Ltd.
Yamaha Marina CO., LTD.
Y’S GEAR Co., Ltd.
YAMAHA MOTOR POWERED PRODUCTS Co., Ltd.
Nishi Nippon Skytech Co., Ltd.
YAMAHA MOTOR ELECTRONICS CO., LTD.
YAMAHA MOTOR PRECISION PARTS
MANUFACTURING CO., LTD.
HAMAKITA INDUSTRY CO., LTD.
YAMAHA MOTOR HYDRAULIC SYSTEM Co., Ltd.
Yamaha Motor Biz Partner Co., Ltd.
YAMAHA MOTOR MIRAI CO., LTD.
YAMAHA MOTOR SOLUTIONS Co., Ltd.
YAMAHA ROBOTICS HOLDINGS CO., LTD.
SHINKAWA LTD.
APIC YAMADA CORPORATIONPFA Corporation
Shizuoka Blue Revs Co., Ltd.
Ecole Toyohashi
Amagasaki kenkonomori
Sakura Kogyo Co., Ltd.
A.I.S Corporation
JUBILO Co., LTD.
KYB Motorcycle Suspension Co., Ltd.
EVEC, Inc.
eve autonomy, Inc.
Copal Yamada Corporation
North Sails Japan
Izumisano Waterfront Co., Ltd.
Marine Wave Otaru, Co., Ltd.
Choshi Marina, Inc.
Marina Akita, Co., Ltd.
Hayama Marina, Co., Ltd.
Yokohama Bayside Marina Co., Ltd.

Asia (Abbreviations) Indonesia
PT. Yamaha Indonesia Motor Manufacturing (YIMM)
PT. Yamaha Motor Parts Manufacturing Indonesia(YPMI)
PT. Yamaha Motor Nuansa Indonesia (YMNI)PT. Yamaha Motor Electronics Indonesia (YEID)
PT. Yamaha Motor Mold Indonesia (YMMID)
PT. Yamaha Motor R&D Indonesia (YMRID)
PT. Sakura Java Indonesia
PT. Kyowa Indonesia
PT. Bussan Auto Finance (BAF Indonesia)

Yamaha Motor Solutions India Pvt. Ltd. (YMSLI)
MOTO BUSINESS SERVICE INDIA PRIVATE LIMITEDKYB Motorcycle Suspension India Pvt. Ltd. (KMSI)
Bussan Auto Finance India Pvt. Ltd. (BAF India)

The Philippines
Yamaha Motor Philippines, Inc. (YMPH)
LIYAM Property, Inc.
Yamaha Robotics Philippines, Inc.

TaiwanYamaha Motor Taiwan Co., Ltd. (YMT)
Topmost Consulting Co., Ltd. (TCC)
Yamaha Motor R&D Taiwan Co., Ltd. (YMRT)Yamaha Motor Taiwan Trading Co., Ltd. (YMTT)Yamaha Motor Electronics Taiwan Co., Ltd. (YETW)
Yamaha Robotics Taiwan Co., Ltd.

ThailandThai Yamaha Motor Co., Ltd. (TYM)
Yamaha Motor Parts Manufacturing(Thailand) Co., Ltd. (YPMT)TYMA Co., Ltd.
Yamaha Motor Electronics Thailand Co., Ltd. (YETH)
Yamaha Motor Asian Center Co., Ltd. (YMAC)
Siam Yamaha Motor Robotics Co., Ltd.
Yamaha Robotics (Thailand) Co., Ltd.
Yamaha Robotics Manufacturing Asia Co., Ltd.
Apic Yamada Precision (Thailand) Co., Ltd.
Malaysia
HL Yamaha Motor Research Centre Sdn. Bhd. (HLYR)
Yamaha Robotics (Malaysia) Sdn. Bhd.
Hong Leong Yamaha Motor Sdn. Bhd. (HLYM)
Vietnam
Yamaha Motor Vietnam Co., Ltd. (YMVN)
Yamaha Motor Parts Manufacturing Vietnam Co., Ltd.
(YPMV)
Yamaha Motor Electronics Vietnam Co., Ltd. (YEVN)
Yamaha Robotics Engineering Asia Co., Ltd.
India
Yamaha Motor India Pvt. Ltd. (YMI)
India Yamaha Motor Pvt. Ltd. (IYM)
Yamaha Motor India Sales Pvt. Ltd. (YMIS)Yamaha Motor Electronics India PVT. Ltd. (YEIN)
Yamaha Motor Research andDevelopment India Pvt. Ltd. (YMRI)

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Pakistan
Yamaha Motor Pakistan (Private) Limited (YMPK)Singapore
Yamaha Motor Asia Pte. Ltd. (YMAP)
Yamaha Motor Distribution Singapore Pte. Ltd. (YDS)
Yamaha Robotics Asia Pte. Ltd.

China
Yamaha Motor (China) Co., Ltd. (YMCN)
Shanghai Yamaha Jianshe Motor Marketing Co., Ltd.
(YMSM)
Zhuzhou Yamaha Motor Shock-absorber Co., Ltd.
(ZYS)
Yamaha Motor R&D Shanghai Co., Ltd. (YMRS)Yamaha Motor Powered Products Jiangsu Co., Ltd.
(YMPJ)
Yamaha Motor Electronics Suzhou Co., Ltd. (YESZ)
Yamaha Motor Solutions Co., Ltd. Xiamen (YMSLX)
Yamaha Motor IM (Suzhou) Co., Ltd. (YIMS)
Shinkawa (Shanghai) Co., Ltd.
Apic Yamada Technology (Shanghai) Co., Ltd.
Shanghai Yamada Machinery Manufacturing Co., Ltd.
Shanghai Apic Yamada Co., Ltd.
Chongqing Jianshe Yamaha Motor Co., Ltd. (CJYM)
Zhuzhou Jianshe Yamaha Motor Co., Ltd. (ZJYM)
Jiangsu Linhai Yamaha Motor Co., Ltd. (LYM)
Sichuan Huachuan Yamaha Motor Parts
Manufacturing Co., Ltd. (SHY)
Tongling Sanjia Yamada Technology Co., Ltd.
South Korea
Yamaha Robotics Korea Co., Ltd.

Central andSouth America (Abbreviations) Australia
Yamaha Motor Australia Pty Limited (YMA)
Ficeda Pty Limited
Yamaha Motor Finance Australia Pty Limited (YMFA)
Australian Motorcycle and Marine Finance Pty Ltd.
Yamaha Motor Insurance Australia Pty. Ltd.

BrazilYamaha Motor do Brasil Ltda. (YMDB)Yamaha Motor da Amazonia Ltda. (YMDA)
Yamaha Motor Componentes da Amazonia Ltda.
(YMCDA)
Yamaha Motor Electronics do Brasil Ltda. (YEBR)
Yamaha Administradora de Consorcio Ltda. (YAC)
Yamaha Motor do Brasil Servicos Financeiros
Participacoes Ltda.
Banco Yamaha Motor do Brasil S.A. (BYMD)
Yamaha Motor do Brasil Corretora de Seguros Ltda.
(YMDCS)
Yamaha Motor do Brasil Logistica Ltda. (YMBL)

New Zealand
Yamaha Motor New Zealand Limited (YMNZ)
Yamaha Motor Finance New Zealand Limited (YMFNZ)
Yamaha Motor Insurance New Zealand Limited

Argentina
Yamaha Motor Argentina S.A. (YMARG)
Yamaha Motor Plan Argentina S.A. de Ahorro para
Fines Determinados

Micronesia
TriFork Reinsurance Corporation

Uruguay
Yamaha Motor Uruguay S.A. (YMUY)

Oceania (Abbreviations) PeruYamaha Motor del Peru S.A. (YMDP)
Yamaha Motor Selva del Peru S.A. (YMSP)Colombia
Industria Colombiana de Motocicletas Yamaha S.A.
(Incolmotos Yamaha)
MexicoYamaha Motor de Mexico, S.A. de C.V. (YMMEX)
Yamaha Motor Consorcio Mexico, S.A. de C.V.

Yamaha Motor Co., Ltd. Integrated Report 2022

89

Facts and Data

Corporate Information / Stock Information (As of December 31, 2021)

Company nameYamaha Motor Co., Ltd.

Headquarters

2500 Shingai, Iwata, Shizuoka 438-8501, Japan

Date of establishment

July 1, 1955

Capital¥86,100 million

Number of employees

Consolidated: 51,243
Non-consolidated: 10,154
Tokyo Stock Exchange

Stock code

7272

Transfer agent forcapital stock

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233,
Japan
Ernst & Young ShinNihon LLC

Inclusion in major
indices

Nikkei 225, JPX-Nikkei 400

Major consolidated
subsidiaries

Yamaha Motorcycle Sales Japan Co., Ltd.

Capital Stock

Principal Shareholders

Authorized

900,000,000 shares (common stock)

Shareholder

Issued350,217,467 shares

The Master Trust Bank of Japan, Ltd. (trust account)

16.21

Number of shareholders

79,112Custody Bank of Japan, Ltd. (trust account)

5.14

Yamaha Corporation

4.52

MSCI ESG RATINGS (AAA rating)*1

Toyota Motor Corporation

3.61

MSCI ESG Leaders Indexes /MSCI Japan ESG Select Leaders Index*2

SSBTC CLIENT OMNIBUS ACCOUNT

2.84

SMBC Nikko Securities Inc.

2.79

Mizuho Bank, Ltd.

2.39

JPMorgan Securities Japan Co., Ltd.

1.88

The Shizuoka Bank, Ltd.

1.63

State Street Bank West Client Treaty 505234

1.57

FTSE Blossom Japan Index

Stock listing

AuditorExternal Recognition 
FTSE4Good Index Series
FTSE Blossom Japan Sector Relative Index

Securities companies

CDP (B grade in the climate change report category)

7.3%

S&P Japan 500 ESG

Japanese individuals and others

11.5%

SNAM Sustainability Index 2022
Foreign investors

Certified in 2022 Health & Productivity Management
Organization Recognition Program(Large Enterprise Category)

Note: Percentage of ownership is calculated excluding treasury shares.

33.7%

Shareholder
Composition

Japanese financial
institutions

Shareholder Notes

35.9%

Yamaha Motor Electronics Co., Ltd.
Yamaha Motor Corporation, U.S.A.
Yamaha Motor Manufacturing Corporation of America
Other Japanese corporations

Yamaha Motor Europe N.V.
PT. Yamaha Indonesia Motor Manufacturing
India Yamaha Motor Pvt. Ltd.
Thai Yamaha Motor Co., Ltd.
Yamaha Motor Philippines, Inc.
Yamaha Motor Vietnam Co., Ltd
Yamaha Motor Taiwan Co., Ltd.
Yamaha Motor do Brasil Ltda.

11.6%*1 THE USE BY YAMAHA MOTOR OFANY MSCI ESGRESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND
THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKSOR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR
PROMOTION OF YAMAHA MOTOR BY MSCI. MSCISERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITSINFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’
AND WITHOUT WARRANTY. MSCI NAMES AND LOGOSARE TRADEMARKS OR SERVICE MARKS OF MSCI.
*2 THE INCLUSION OF YAMAHA MOTOR IN ANY MSCI INDEX,AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICEMARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF
YAMAHA MOTOR BY MSCI OR ANY OF ITS AFFILIATES. THE
MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE
TRADEMARKS OR SERVICE MARKS OF MSCI OR ITSAFFILIATES.

Design Awards Won in 2021 
Tricity 300
Motorcycle

LCMR200
Industrial robot

YDX-MORO Pro (YPJ-MT Pro in Japan)
Electrically power-assisted mountain bike• Red Dot Award 2021 |Winner• iF Design Award 2021

• Red Dot Award 2021 | Winner• iF Design Award 2021

• International Design ExcellenceAwards 2021 | Finalist• Good Design Award 2021

Ownership (%)

Fiscal year

January 1 to December 31

Reference date for­allocation of surplus for
dividends

Year-end dividends: December 31
Interim dividends: June 30

General Meeting of
Shareholders

March

Share unit number

100 shares

Method of public notice

Public notices are given by electronic notice.
In unforeseen circumstances where electronic
notices are impossible, public notice is madein the Nihon Keizai Shimbun.

Yamaha Motor’s Share Price and Trading Volume on the Tokyo Stock Exchange(¥)(Million shares)

4,000

400

3,000

300

2,000

200

1,000

100

0

0

2017
YZF-R7
Motorcycle

Aerial forest survey
Unmanned System

Yamaha Marina Hamanako
Marina Clubhouse• Good Design Award 2021

• Good Design Award 2021

• Good Design Award 2021

Share price

2018

2019

2020

2021

(FY)

Trading volume

For further information, please contact:
Yamaha Motor Co., Ltd.
Corporate Communication Division
2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-32-1145
Fax: +81-538-37-4250
https://global.yamaha-motor.com/ir/
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YAMAHA MOTOR CO., LTD.
2500 SHINGAI, IWATA, SHIZUOKA, JAPANhttps://global.yamaha-motor.com/