ANNUAL REPORT 2017
Year ended December 31, 2017

Information Disclosure

INCREASING CORPORATE VALUE
THROUGH SUSTAINABLE GROWTH

Financial information

Detailed

Yamaha Motor Co., Ltd. is a multinational enterprise with around 140 consolidated subsidiaries and equity-method affiliates in approximately
30 countries and regions, and about 90% of our consolidated net sales are derived from overseas markets. We operate global development,
production and sales networks, and our products are sold in more than 180 countries and regions.
We have successfully diversified our business by capitalizing on our world-leading powertrain, chassis and hull and electronic control

Securities Report (Japanese only)
Information for Investors
https://global.yamaha-motor.com/ir/
Fact Book
Annual Report 2017

(This report)

This report provides financial andnon-financial information in a balancedmanner to give readers an overall
understanding of the Yamaha Motor
Group’s business activities.

technologies. Today, our proprietary technologies extend to a wide variety of products, including motorcycles, marine products, power products
and surface mounters.
We will move forward with restructuring and the transformation of our management base for continuous growth, to evolve Yamaha Motor

Summary

into a unique company that continues to achieve dynamic milestones.

Non-financial information

Corporate Website
https://global.yamaha-motor.com/
Technical Review
https://global.yamaha-motor.
com/about/technical_review/
Information Related to Corporate
Social Responsibility (CSR)
https://global.yamaha-motor.com/
about/csr/
Corporate Governance Report
Detailed

Corporate Mission

Kando * Creating Company

CONTENTS

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

Introduction
To Our Stakeholders.....................................................2
A Track Record of Creating Value ..................................4
Company Overview ......................................................6
Yamaha Motor’s Process for Creating Global Value ........8
Financial and Non-Financial Highlights ........................10
Yamaha Motor’s Management Team ...........................12

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 orconcept 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

Action Guidelines

1. Creating value that surpasses customer expectations

Acting with Speed

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

Meeting change with swift and informed action

2. Establishing a corporate environment that fosters self-esteem

Persistence

We must build a corporate culture that encourages enterprise andWorking with tenacity to achieve desired results, and then evaluating

enhances corporate vitality. The focus will be on nurturing the creativity

themInterview with the President ........................................14

Spirit of Challenge

Special Feature
Advanced technologies expanding possibilities
for mobility and robotics ..........................................24

Courage to set higher goals without fear of failure

Overview of Operations
Motorcycles ...............................................................28
Marine Products ........................................................30
Solutions ...................................................................32

and ability of our employees, with an equitable system of evaluation andrewards.

The Basis of Creating Value
Global Brand Strategy.................................................34
Human Resources ......................................................36
Research and Development ........................................38

3. Fulfilling social responsibilities globally
As a good corporate citizen, we act from a worldwide perspective and inaccordance with global standards. We must conduct our corporate

Governance Information
Special Feature on Corporate Governance ...................40
Corporate Governance ................................................44
Composition of Directors ............................................49
Directors and Audit & Supervisory Board Members.......50
Executive Officers ......................................................52

activities with concern for the environment and communities and fulfill
our social responsibility with honesty and sincerity.

Corporate Philosophy

Stakeholders
Customers
Communication

CSR
Yamaha Motor Group’s Initiatives to AddressSocial Issues...........................................................53
The Environment ........................................................54
Society ......................................................................58

Shareholders and Investors
Employees
Business Partners
The Community

Basic Policies
of Internal Control

Business Activity

Basic Policies
of CSRThe Environment

Notice Regarding Forward-Looking Statements
Statements in this annual report, except for historical facts, are forward-looking statements about the future performance of
the Company and its Group companies, which 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.

Financial and Corporate Information
Financial Highlights ....................................................60
Five-Year Summary ....................................................62
Management Discussion and Analysis of Operations ....63
Organization ..............................................................69
Investor Information ...................................................70
Yamaha Motor Co., Ltd. ⎜ Annual Report 20171

To Our Stakeholders

Working in harmony with society and the environment
to evolve Yamaha Motor into a unique company that
continues to achieve dynamic milestones
Yamaha Motor’s goal is to be a “Kando Creating Company.” To achieve this, we are working in harmony withsociety and the environment to provide people around the world with products and services that give joy andunexpected exhilaration that enrich their lives with new fulfillment.
The global economic environment continued to show a gradual trend of recovery during the fiscal year
ended December 2017, despite an uncertain future clouded by geopolitical risk. In developed markets,
economic recoveries continued in Europe and the United States against a backdrop of growth in personal
consumption and exports, while emerging markets benefited from a recovery in resource prices and growthin domestic demand. Exchange rates were generally stable during the year as well. Given this businessenvironment, Yamaha Motor recorded sales and profit growth, led by increased sales of outboard motors in
the United States, of motorcycles in the ASEAN region and of industrial machinery.
Yamaha Motor is operating under a Medium-Term Management Plan covering the period from 2016
through 2018, under the long-term vision of being a unique company that continues to achieve dynamic
milestones. During 2018, the final year under the Plan, we aim to continue to secure stable profit andmaintain ample shareholder returns and investment for future growth, while also formulating a new long-term
vision and the next Medium-Term Management Plan.
I ask for your continued guidance and support as we move forward together.

May 2018

Yoshihiro Hidaka
President, Chief Executive Officer
and Representative Director

2

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 20173

Continuing to pursue challenges
as a Kando Creating Company

A Track Record of Creating Value
Over the more than 60 years since its establishment, Yamaha Motor has constantly pursued the creation of newvalue in a variety of fields including mobility. Going forward, we will address changing times as opportunities for
growth, while aiming to be a unique company that continues to achieve dynamic milestones.

Net sales¥1,670.1 billion
1987
Contributed to labor-saving and increased
creas
cr
eased
ed
efficiency in agricultural operationss
R-50 (L09) industrial-use unmanned
helicopter

1,500

1975
Created new demand by
expanding our product lineup
YG-292 golf car

1955
Took up the challenge of the motorcycle business
YA-1, Yamaha’s first motorcycle

1978

2002
220
02

Developed snow thrower specificallyfor Japanese snow
YT665, Yamaha’s six-hp snow thrower

Introduced an environmentally friendlyInurban commuter scooter
ur
Passol electric commuter
Pa

1,000

1993
Released commuter vehicle that is
comfortable and environmentally friendly
Yamaha PAS electrically power-assisted
bicycle19967
1967
Offered new excitement with a sports
car that incorporated the latest, mostadvanced technologies
Toyota 2000GT

1959
Developed the marine market withboats made of new, strong andlightweight materials
CAT-2111977
19
77
Established “soft bikes” that allow
women to ride with peace of mind
Passol2017
The cell picking & imaging system
CELL HANDLERTM

500

2010
Made lives more secure with safe water
Yamaha Clean Water Supply System, asmall-scale water purification system

1968
19
68
D li
Deliveredd greatert accessibility
ibilit on snow
SL350 snowmobile

1960
19
60

1995

Delivered lightweight outboard motor withgood engine starts for efficient fishing andenjoyable marine leisureP-7 outboard motor

1955

1960

Took up the challenge of the motorcycle
business with the recovery of Japan’s
economy4

1987
Entered new field of surface mounters forprinted circuit boards
YM4600S surface mounter

1970
Modernized management and developed
proprietary technologies to keep up with rapid
economic growth

Yamaha Motor Co., Ltd. ⎜ Annual Report 20171980
Enhanced the corporate structure and expanded thebusiness under the global economic recession

2014

Offered wheelchair electric power unit
with light weight and long range foreasier mobility
JW-I wheelchair electric power unit

1990
Created new markets by entering the industrial machinery
business and expanding the product lineup

Achieved a new riding style withthe stability of twin front wheels
Tricity LMW*

2000
Promoted globalization and structuralreform during a prolonged recession*Leaning Multi-Wheel: Yamaha’s designationfor vehicles with three or more wheels thatlean like a motorcycle when making turns.

2010

2017

Pursued sensibility and rationality for a period
of intense competition

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

5

Company Overview

Motorcycles

Industrial
Machinery andRobots4.0%

Net Sales¥1,045.2

Other Products

4.9%

billionMajor products:
Motorcycles, knockdown parts for overseas production andintermediate parts for products

Power Products

9.1%

Motorcycles

Marine Products¥323.8

62.6%

Marine Products

billionMajor products:

2017 Net Sales

19.4%

Net Sales¥1,670.1

Outboard motors, personal watercraft, boats, FRP pools, fishing boats
and utility boats

Power Products

Net Sales¥151.6billionvs. 2016 level
Up 11.1%(Increased ¥167.3 billion)

billionMajor products:
All-terrain vehicles, recreational off-highway vehicles, snowmobiles,
golf cars, generators, small-sized snow throwers and multi-purpose
enginesIndustrial Machinery andRobotsNet Sales¥67.6

billionMajor products:
Surface mounters and industrial robots

Japan

10.2%

Overseas Sales Ratio

89.8

Others

11.7%

Asia

43.9%

North America

%

21.4%
12.8%

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Net Sales¥81.8

billionMajor products:

Europe6

Other Products

Automobile engines, automobile components, electrically power-assisted
bicycles, industrial-use unmanned helicopters and wheelchair electric
power units

Yamaha Motor Co., Ltd. ⎜ Annual Report 20177

Yamaha Motor’s Process for Creating Global Value
Social Value
Customers
External factors
affectingcorporate value

Businesses

Yamaha Motor’s Strengths

Value Provided

Joy and unexpected exhilaration thatenriches lives with new fulfillment
Enjoyment and convenience of mobility
Mobility systems helping communities(1) Powertrains (2) Chassis and hulls(3) Electronic control

Cutting-edge
technologies

Image recognition technologies and robot technologies
developed through business activities

R&D bases

Developing products tailored to markets at R&D basesin Japan and six countries around the world

Motorcycles

Exchange rate
movements

Development

Yamaha Motor’s Values
Corporate Mission

Changes inresource prices

Core technicalcompetencies

Kando Creating Company
DesignYamaha Motor Innovation Center integrates
design development and technologies

Manufacturing
technologies

Advanced machining and casting technologies

QCD

Theoretical-value-based production and procurement
for engineering, manufacturing and marketing

Competitiveenvironment

The Unique Style of Yamaha

発

悦

信

Innovation Excitement Confidence

Geopolitical risk

魅結EmotionTies

Manufacturing

Brand Slogan

Pursuing Innovation

Building Confidence
Captivating Emotion

Tightening ofenvironmental
regulations

Creating Ties

Human resources

Trends in theeconomic
environment

Highly efficient production with manufacturing centers
optimally located at global level

Business
partners

Maintaining relationships of trust throughpositive communication

Sales network

Sales network covering more than 180 countries andregions around the world

Sales

Creating Excitement

Overseas
manufacturing

Specialization

Diversity

High-quality human resources with expertise in
specialized fields

The majority of management positions
at overseas locations locally hired

Fulfilling
lifestyles

MarineProducts

Shareholders andInvestors
Increasing corporate value throughlong-term growth (ROE, EPS)

Power
Products

Employees
Workplace environments that

Enjoyment inpersonal mobility

respect diversity and a global
perspective, increasing
opportunities to hire nonJapanese and female managers

Industrial
Machinery
and Robots

The Community/Business Partners
Improving traffic safety
Using Yamaha Motor’s products, human resources,

Other
Products

Innovativetechnologies that
harmonize withpeople, society andthe Earthand know-how to support communities
Procurement for engineering, manufacturing andmarketing that incorporates both cost and quality

The Environment
Reducing CO2 emissions andTechnologicalinnovation andchanges inindustrial
structure

8

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

water consumption

Technological development andhuman resources development

Corporate Governance
SystemBasic Policies
of CSR

Yamaha Motor Co., Ltd. ⎜ Annual Report 20179

Financial and Non-Financial Highlights

Operating income andoperating income margin

Net sales

Profit attributable to owners ofparent and ratio of profit attributableto owners of parent to net sales¥1,670.1 ¥149.8 9.0 ¥101.6 6.1
bil.

bil.

bil.

%

In addition to sales growth, improved profitability
from cost reductions absorbed expense
increases for a 37.9% increase from theprevious year.

A 60.9% increase from the previous year to arecord high.

(Billion ¥)(Billion ¥)(Billion ¥)1,521.2

1,670.1

1,631.2

8.0%

7.2%

87.2
3.9%

68.5
4.5%

5.7%

44.1

55.1

2013

2014

2015

2016

2017

2013

2014

2015

2016

2017

291

1,310.0 1,305.2 1,318.8
1,146.6
196
172

181

(1,000t-CO2)(Million m3)

6.1%

76.1

2017

2013

91.3

94.9

99.2

5.56

597

561

552

553

2015

2016

2017

4.74

4.98
4.45

63.2
4.2%

4.6%

2015

2016

2015

2016

2017

2014

Achievement of
unified certification

17.6

¥56.5

100

%

ROE rose 5.3 percentage points from previous
year-end due to higher profit attributable toowners of parent and higher equity ratio, withasset turnover emphasizing asset efficiency.

bil.

Sowing seeds for next stage of growth throughefficient development of existing businesses.

(Billion ¥)

65.9

7.4%

64.1

56.8

2015

2016

2017

61.3

56.5

Local managers atoverseas locations%

2018 target

We have been working toward global environmental
ISO 14001 unified certification at Group companies
in Japan and overseas since 2012. The program
has been expanded to 44 companies, mainly
manufacturing companies in Japan, Asia, Europe,
the United States, and South America, and as ofthe end of 2017, unified certification had beenobtained by all companies.

60%

We will recruit superior management personnel
regardless of their nationality or place of birth,and aim to have local managers fill 60% ofmanagement positions at overseas subsidiaries
by 2018. Surpassed 50% in 2017.

17.6%

16.2%
12.7%

2014

Ratio of profit attributable toowners of parent to net sales (%)

1,415.8

4.8%

2014

Capital expenditures

5.6%
4.2%

126

million m3(Billion ¥)Return on equity
(ROE)

%

Increased ¥97.1 billion from the previous year
due to an increase in cash and deposits.

(Billion ¥)2014

Profit attributable toowners of parent

Total assets andreturn on assets

bil.

(¥)

2013

Operating income margin (%)¥290.93 ¥1,415.8 7.4
Rose from the previous year due to the increasein profit attributable to owners of parent.

4.45

3.1%

Operating income

Net income per share

60.0
3.7%

thousand t-CO2

We will continue to strive to measure our global
use of water resources and reduce the amount ofwater intake through promoting the reuse of
coolant water and water collection (rainwater andother sources) at factories.

84.5

108.6

553

We are targeting an annual 1% reduction in CO2emissions per unit of sales as a common goal forthe entire Group, and are working to reduce
emissions in all of our business activities including
product development and manufacturing.

9.0%

130.3

bil.

Water intake

Increased 4.5% from the previous year for
30.4% growth over past five years.

101.6

149.8

1,502.8¥99.2

CO2 emissions%

Rose 11.1% from the previous year due tostrong sales of motorcycles in ASEAN andoutboard motors in North America, combinedwith the yen depreciation.

1,410.5

R&D expenses(Companies)

12.6% 12.3%

41

44

33
26
13
5
2013

2014

2015

2016

2017

2013

2014
Total assets

10

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

2015

2016

2017

Return on assets (%)

2013

2014

2015

2016

2017

2013

2014

2015

2016

2017

2012

2013

2014
Overseas

2015

2016

2017

Japan

Yamaha Motor Co., Ltd. ⎜ Annual Report 201711

Yamaha Motor’s Management TeamAs of April 1, 201812

Director(Outside)

Director(Outside)

Director

Director

Representative
Director

Chairman and
Representative Director

President andRepresentative Director

Director

Director

Director(Outside)

Director(Outside)

Takehiro Kamigama

Atsushi Niimi

Tatsumi Okawa

Katsuhito Yamaji

Katsuaki Watanabe

Hiroyuki Yanagi

Yoshihiro Hidaka

Toshizumi Kato

Makoto Shimamoto

Takuya Nakata

Genichi Tamatsuka

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201713

Interview with the President

CREATING

BREAKTHROUGHS
EXPANDING

Yoshihiro Hidaka
President, Chief Executive Officer
and Representative Director

OPPORTUNITIESCorrectly ascertaining changes in social values and pursuing thechallenge of creating uniquely Yamaha value to become an evenlarger and more unique company.

In the following interview, the President addresses these key issues:
On takingoffice14

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

In a timeof change

Looking backat 2017

Initiatives
in 2018

Yamaha’spotential

Foundation
for creating
the futureTo
stakeholders

Yamaha Motor Co., Ltd. ⎜ Annual Report 201715

Interview with the President

On taking office

Increasing the speed of growth with no change to the general
direction of becoming “a unique company that continues toachieve dynamic milestones.”
My name is Yoshihiro Hidaka and I took office as Yamaha Motor’s President and Representative
Director this year.
I joined Yamaha Motor in 1987. I enjoyed motorcycles when I was a university student andparticularly liked Yamaha motorcycles, which impressed me with their refinement. When I was looking
for a job, I remember well how Yamaha employees talked to me in a frank and friendly way as if wewere equals, and I was impressed by the Company’s flat organization and open-minded atmosphere.
After joining the Company, my first position was in procurement, where I was involved in reducing
costs, and since then I have gained experience in various operations, including an overseas postingand involvement in numerous projects in Japan and overseas as general manager of the motorcycle
business. Through these positions, I learned many things from my seniors, who placed great
importance on Yamaha’s uniqueness and were brimming with a spirit of challenge. I consider thisexperience to be my greatest asset.
Looking back to 2010 when Hiroyuki Yanagi became President, I believe that our 2017 results
show that we have improved our profitability and strengthened our financial position to a significant
degree. My aim as President is to increase the speed of growth while maintaining a sense of crisis, byincreasing our real strength as a company through exceptional engineering, manufacturing andmarketing, and reinforcing our marketing and planning, without changing our general direction of
becoming “a unique company that continues to achieve dynamic milestones.”

In addition to electric power, the world of mobility can also be expected to move toward automateddriving through Internet connectivity and the integration of AI. I consider electric power to be a risk on
one hand, but see automated driving as an opportunity. To address the risk, we are making the

In a time of change

The trend toward electric vehicles will certainly engulf the
motorcycle industry as well. We will provide new, uniquely
Yamaha products that excite customers.

expansion of our electric product lineup a top priority. We are also strengthening our ability to offer
solutions in automated driving based on our image recognition and control technologies we haveaccumulated, and I intend to pursue this as a growth strategy.
Yamaha Motor’s corporate culture is to pursue new challenges, and by offering new value that
did not previously exist, we have pursued the challenge of creating entirely new markets. We will lookclosely at “what creates value” and “what does society want” based on our principles, as we provide

We are approaching a major turning point. With the adoption of the Paris Agreement in 2015,
expectations for companies to address climate change have increased. The move toward electricunique, new products that excite customers, and in doing so, revitalize markets and contribute to theachievement of a sustainable society.

vehicles in the automobile industry is steadily picking up speed and we need to pay attention to thistrend. I expect engines to continue to be used in products built for particular interests like large
motorcycle models, marine products, and ROVs, but smaller forms of mobility are certain to adopt
electric power. Yamaha Motor released the world’s first electrically power-assisted bicycles, and wewere an early entrant in the area of electric scooters. By further refining the technologies we havedeveloped in this segment, we are increasing our competitiveness as a leading company in the areaof small-sized electric mobility.

16

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201717

Interview with the President

point improvement in the ratio of profit attributable to owners of parent to net sales to 6.1%, a 0.08

Record operating income in 2017 on success of improving

Looking back at 2017

increase in total asset turnover to 1.22 times, and an ¥88.6 billion increase in shareholders’ equity to

profitability and strengthening financial position.

¥622.8 billion, resulting in an equity ratio of 44.0%, surpassing the target of 42.5%. Free cash flow
grew significantly for the second consecutive year, reaching a positive ¥73.1 billion, with an increase

With economies gradually improving in both developed and emerging markets and stable exchange rates,

in working capital (inventories, accounts receivable – trade) from increased sales by holding supply

we recorded sales and profit growth in a variety of regions and businesses in 2017, led by the motorcycle

chain management initiatives to an appropriate level and restrained regular investment. As a result,business in ASEAN and Brazil, marine products, robotics, and Smart Power Vehicle businesses.

net loans payable were reduced to ¥197.9 billion, and excluding the ¥248.7 billion of borrowings

Net sales for the fiscal year ended December 31, 2017 rose ¥167.3 billion, or 11.1%, from therelated to financing business, our financial position improved to the point of having essentially no

previous year, to ¥1,670.1 billion, and as a result of efforts to improve profitability including platform

borrowings. With regard to the dividend for 2017, we paid a full-year dividend of ¥88 per share. We

development, cost reductions, and pricing, operating income grew ¥41.2 billion, or 37.9%, to a record

will continue to pursue efficiency in working capital while making flexible investments for growth and¥149.8 billion. And at 9.0%, the operating income margin met the target set in the Medium-Termproactive returns to shareholders.

Management Plan.
In terms of key performance indicators to comprehensively evaluate our financial position andNumerical Targets of the Medium-Term Management Plan

profitability, Yamaha Motor focuses on return on equity (ROE). The Medium-Term Management Plan
targets ROE at the 15% level, and in 2017, ROE showed a significant improvement from the previous
year, rising 5.3 percentage points to 17.6%. The three elements of this ROE were a 1.9 percentage
ROE

Ratio of profit attributable to owners of parent to net sales

(%)

(%)

20

8

Net Sales

Operating Income

Operating Income Margin¥2 trillion¥180.0 billion

9.0%

Equity Ratio

ROE (three-year average)

Cost Reductions (for three years)

42.5%

Approx.

15%¥60.0 billion

17.6%
15.6%
15

12.6%

10

4

5

2

0

2015

6.1%

6

6.1%

Net sales/Operating income/Operating income margin

12.3%

2016

2017

2018

3.7%

(Billion ¥)

4.2%

9.0%

8.0%

0

2015

2016

2017

(Forecast)

1,521.2

2018

Shareholders’ equity/Equity ratio(Billion ¥)

(%)

2.0

800

80

700.0

600
1.22

490.8

1.19
400

1.0

37.6%

149.8

130.3

150.0

108.6
87.2
60

534.2
40.5%

1,502.8

5.7%

622.8
1.15

1,700.0

1,670.1

7.2%(Times)1.25

1,631.2(Forecast)

Total asset turnover

1.5

8.8%

44.0%

48.3%
40

2014

2015

2016

2017

2018

$106/€140$121/€134$109/€120$112/€127$105/€130(Forecast)

200

0.5

0

2015

2016

2017

2018

0

20

2015

2016

(Forecast)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

2018

16.2%

12.6%

12.3%

17.6%

15.6%

35.1%

37.6%

40.5%

44.0%

48.3%

Net income per share¥196.06¥171.89¥180.84¥290.93¥295

Net sales

Operating income margin(Forecast)
Shareholders’ equity

18

2017

0

ROE
Equity ratio

Equity ratio

Operating income

Yamaha Motor Co., Ltd. ⎜ Annual Report 201719

Profit attributable to owners of parent/Total dividend for the year
(Billion ¥/¥)

103.0

101.6

Profit attributable to owners of parent

63.2

¥88

¥90

¥60
Total dividend for the year

2016

2017

2018
(Forecast)

EPS

¥181

¥291

¥295

33%

30%

31%

（予想）

Dividend payout ratio

Initiatives in 2018

In 2018, the final year under the Medium-Term Management
Plan, we are aiming to meet the targets set in the fiscal year

Creating new value based on core technicalplan and will chart our future direction.

competencies, we will deliver Kando that says,

Yamaha’s potential“Yamaha did this.”
Yamaha Motor aims to become a company that “achieves dynamic milestones” with net sales of ¥2
trillion within the next few years by accelerating the growth of our existing mobility and marine

Yamaha Motor’s core technical competencies in powertrains, chassis and hulls, andproducts businesses. During 2018, we will formulate a new Medium-Term Management Plan that will

electronic control combine with manufacturing technology. We have grown by developing

commence from 2019 and a long-term vision extending to 2030.

new businesses that create new value through the pursuit of the unique style of

In terms of business results for 2018, with further progress in the use of platform models, cost

Yamaha: Innovation, Excitement, Confidence, Emotion, and Ties. For example, over the

reductions, and improvements in supply chain management, we are forecasting net sales of ¥1,700

25 years since the launch in 1993, our sales of electrically power-assisted bicycles

billion with ¥150 billion of operating income. These forecasts take into account the risk of the yen’s

have totaled roughly ¥30 billion, and sales in the Intelligent Machinery business, which

appreciation against the U.S. dollar and a build-up in expenses for our growth strategies, and specificallybegan by selling robots for manufacturing lines to outside companies, have grown to

we are using exchange rate assumptions of ¥105 to the U.S. dollar and ¥130 to the euro. If the dollar-

roughly ¥60 billion. We have also made a number of innovations under the concept ofyen rate were to stay at the 2017 level of ¥110/$, that would boost operating income by ¥6.5 billion“the growing world of personal mobility,” including the introduction of the Leaning

and achieve the medium-term target for profitability.

Multi-Wheel (LMW)* commuter bike with two front wheels in 2014. This began as a

We view increasing shareholder value as an important management issue, and strive to enhancecompact commuter vehicle and this year we will release a large LMW motorcycle.

corporate value. With regard to the dividend, we seek to “create a stable financial foundation andGoing forward, I want to offer new products that excite customers, so they continue toincrease new growth investment and stock dividends,” and have set a benchmark for the dividendsay, “Yamaha did this.”payout ratio at 30% of profit attributable to owners of parent. Based on our forecast for 2018 business

Tricity*LMW refers to a vehicle with three or more wheels that leans like a motorcycle when making turns.

results, we plan to increase the dividend for the sixth consecutive year in 2018 to a full-year dividendof ¥90 (¥45 interim dividend and ¥45 year-end dividend).

NIKEN

20

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201721

Interview with the President

Foundation for creating the future

We are pursuing growth strategies in technology, organization,and human resources, to become a “Yamaha that continues
to achieve dynamic milestones.”
To become a “Yamaha that continues to achieve dynamic milestones,” we are deploying our strengths
developed over the years in image recognition technologies, robot technologies, manufacturing
technologies, and other areas in addition to the mobility technologies that have driven our growth todate. In 2017, the seeds we have sown are gradually beginning to grow. For example, our proprietary
technology in robotics has enabled us to offer solutions in the medical field such as the CELL
HANDLERTM, our golf car-based low-speed automated driving system, which is undergoing
implementation testing in various locations in Japan, and the E-Vino electric scooter, which is being
used in a rental program in Saitama City. In 2018, we exhibited for the first time at CES in Las Vegas,
where we demonstrated our unique technologies in robotics, automated driving systems, and drones,
and this also gave us an opportunity to interact with more outside companies.
To accelerate the commercialization of the new businesses that were created as a result of the

Yamaha Motor will fulfill its social responsibility as a

To stakeholders

company and grow while sharing Kando with society.

seeds we have sown, we introduced a new organizational structure in January 2018. The newly
established Mobility Technology Center will be responsible for the mobility segment, the new Advanced

A United Nations summit in September 2015 adopted a set of Sustainable Development Goals (SDGs)

Technology Center will integrate new business planning with digital strategy promotion and theas international objectives for the realization of a sustainable world. In addition, with companies

development of advanced technologies, and Solution Business Operations will accelerate our new

increasingly being valued and investment decisions taking into account environmental, social, andbusiness strategy by combining our technologies developed in industrial robots with our expertise ingovernance (ESG) principles, the role that society expects companies to play is changing. Yamaha

unmanned operation.

Motor considers its corporate social responsibility to be to contribute to the resolution of social issues

We are also placing a priority on cultivating global human resources and promoting diversity.
A total of 132 people have already completed our training program to develop a next generation of
global senior management. We have also hired 86 new graduates outside Japan, which corresponds

through our business activities. In the area of mobility, we are addressing climate change with electricvehicles, and by promoting robotics we are addressing shortages of workers.
We aim to be a company that grows while placing importance on communication with stakeholders

to 10% of our total new hires for general positions. In addition, two of the Company’s Executive

and operating in harmony with local communities, society in general, and the global environment. For

Officers are non-Japanese. This diversity leads to a corporate culture that creates new value. In

this reason, we signed the United Nations Global Compact in 2017 to signal our determination internallyaddition, women are playing a greater role in the Company’s management. In 2018, a woman became

and externally to pursue business activities that will achieve sustainable growth within internationalpresident of an overseas Group company and a general manager of a division at headquarters for thesociety through meeting fundamental responsibilities in the areas of human rights, labor, thefirst time. We have also increased the number of women posted overseas—including trainees—to 10,

environment and anti-corruption. For example, our marine products business is deeply involved inwhich is double the previous year’s number, and we will continue“water,” and we have dispatched a technician to Team KUROSHIO, which is working in the area of

to work to create workplaces that make it easy for women tomarine resource development, and supported Team Tyura Sango, a project that is working to protect

work.

the natural environment in the waters around Okinawa. We have also installed water purification
systems in Africa, giving villagers access to safe water.
We will work to refine “the unique style of Yamaha,” and by creating new value we will seek tobecome a unique company that continues to achieve dynamic milestones, while making every effort toachieve continuous, long-term growth with attention to the supply chain and meeting the expectationsof stakeholders.

Golf car-based low-speed automated driving system

22

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

CELL HANDLERTM
Providing medical solutions by applying industrial robot (surface mounter) technologies

I ask for your continued support and understanding from a medium- to long-term perspective.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201723

SPECIAL FEATURE

Advanced technologies expanding possibilities
for mobility and robotics
Personal mobility in which the rider resonatesharmoniously with the machine

Image Recognition AI: A facial recognition system gives MOTOROiD the ability
to respond only to its owner. It is also able to recognize
gestures, making it possible for MOTOROiD to respond tohand movements as well, like using a beckoning wave ora raised palm to instruct it to start or stop moving.

MOTOROiD is a proof-of-concept experimental electricmodel that aims for “personal mobility in which the rider
resonates harmoniously with the machine.” With highprecision balance control that uses an optimal combinationof artificial intelligence and autonomous technology, themachine itself senses shifts in its own center of gravity to
become upright and maintain that position without falling
over, creating a new form of mobility that goes beyond
being simply a “tool for movement.”

AI and autonomous structure give the rider an exciting riding experience

Next-generation products co-developed with designers and engineers working together
in the same studio

MOTOROiD was developed as an “Unleashed Prototype” that creates aremain upright and move forward on its own. By pursuing thisYamaha Motor’s new design base, the Yamaha Motor Innovation Center,new sense of excitement based on Yamaha Motor’s Jin-Ki Kanno

challenge, Yamaha Motor hopes to acquire technologies that will create

was completed in December 2016. Using an unprecedented

concept. Using AI to recognize faces and hand motions, the vehicle can

new value.

arrangement, designers and engineers work together in the same studio

make itself upright and come to the rider. By simply getting on the bikeand gripping the handles, the rider can experience exciting, sporty riding
regardless of their skill level or riding ability.
MOTOROiD is equipped with AMCES,* an electronic control system*AMCES: Active Mass CEnter control System. This technology works to stabilize two-wheeled vehicles byusing electronics to actively control the chassis itself and constantly optimize the vehicle’s position.

to develop next-generation products. MOTOROiD is an autonomous
motorcycle that was born in a new collaborative endeavor between
designers and engineers. Working together across traditional lines of
responsibility, at times designers think about the frame andfor motorcycle chassis that uses proprietary Yamaha technologies tomechanisms, while at other times engineers think about attractiveness,achieve stability. With active control, the chassis always maintains an

triggering sparks that bring about significant innovation.

optimal position, making it possible for the vehicle to make itself upright,

24

Yamaha Motor Co., Ltd. ⎢ Annual Report 2017

Yamaha Motor Co., Ltd. ⎢ Annual Report 201725

SPECIAL FEATURE

Advanced technologies expanding possibilities
for mobility and robotics
Autonomous motorcycle-riding humanoid robot

MOTOBOT is an autonomous motorcycle-riding robotthat is opening new worlds. Unlike the methods
being employed in recent efforts in self-driving
automobiles, MOTOBOT is unique as it is a humanoid
robot that operates an unmodified vehicle in an
approach to self-driving from the perspective of
vehicle operations. We expect to be able to create
new value in areas of mobility like personal
watercraft and snowmobiles by applying theadvanced technologies and expertise gained bydeveloping the MOTOBOT in those areas.

MOTOBOT technologies
Based on data including vehicle speed, engine rpm, and machine

performance. By being able to visualize data about human motorcycle

MOTOBOT is an open innovation project, and development is moving

After introducing Version 1 at the 44th Tokyo Motor Show, held in 2015,

position, MOTOBOT controls six actuators* to operate the vehicle

operation and deducing the relationship between rider input andforward in collaboration with SRI International, a world-leading research

we continued to incorporate new autonomous motorcycle riding

autonomously. Going forward, technology for machine position

machine behavior, we aim to create new value with higher performanceand technological development institute that is ideally positioned totechnologies including upgraded hardware and improved software torecognition (high-precision GPS, various sensors, etc.) and machineand safer mobility.

partner in this project.

develop Version 2. This new version marked a milestone in September

learning will enable MOTOBOT to make its own decisions regarding thebest lines to take around a racetrack and the limits of the motorcycle’s

26

Open innovation

Autonomous operation at speeds
over 200km/h

Yamaha Motor Co., Ltd. ⎢ Annual Report 2017*For operating the steering, throttle, front brake, rear brake, clutch, and gearshift pedal.

2017, when it achieved a speed in excess of 200 kilometers per hourwhile operating autonomously.

Yamaha Motor Co., Ltd. ⎢ Annual Report 201727

Overview of Operations

Net sales and operating income

Motorcycles(Billion ¥)FY2017 worldwide demand(Billion ¥)

1,200

900

60

600

40

300

Executive Officer
Chief General Manager
of Motorcycle Business
Operations

Note: Yamaha Motor surveys

80

1,070.0
67.0

Takuya Kinoshita

Rest-of-world
7,315 (13.5%)

Japan 384 (0.7%)
North America 535 (1.0%)
Europe 1,501(2.8%)

Rest-of-world
461 (8.5%)

Japan 103 (1.9%)
North America 70 (1.3%)
Europe 199(3.7%)

53,995

5,390

Unit: thousands(%): share ofdemandUnit: thousands(%): share ofunit sales

Asia (excluding Japan)
44,260 (82.0%)

Asia (excluding Japan)
4,558 (84.6%)

20

0

0

2014

2015

2016

2017

2018
(Forecast)

Net sales

Operating income

We will provide Yamaha’s unique value in a distinctively Yamaha way to our

Appraisal of 2017 results and initiatives for 2018global customers.

In 2017, unit sales rose in ASEAN markets (excluding Indonesia) andprofitability. In particular, major themes will be further reinforcement

Brazil, remained flat in India, and declined in Indonesia, developedof earnings capabilities in the ASEAN region and expansion of sales

markets, and China. In that environment, net sales increased ¥115.1

in India. At the same time, we will engage in agile management andbillion (12.4%) from the previous year to ¥1,045.2 billion. Operatingpromote new value creation to address future changes in customers,

Opportunities

Risks• Expansion of middle-income market in ASEAN and emerging nations• Tighter environmental regulations in each country

income increased ¥32.9 billion (91.4%) to ¥68.8 billion due to factors

markets, and technologies with a view to our next Medium-Term• Evolution of marketing through digital technology• Shift in industrial structure due to innovative technologies and newcompetition

including the effect of cost reductions through use of platform models

Management Plan. We have always offered distinctive new products

and the shift to a high-value-added model mix. The operating income

unique to Yamaha in the motorcycle category. We will take on themargin increased by 2.7 percentage points to 6.6%.

challenges of a new era by further expanding the value of motorcycles

During 2018, as the final year of the current Medium-Term

Areas of focus under the Medium-Term Management Plan
variations of uniquely Yamaha platform models” and “cross-regionalout improvement of earnings capabilities and generation of free cash

globalization” since our previous Medium-Term Management Plan toflow as overall themes. In addition, looking at key themes for eachaddress diversifying customer needs while achieving cost reductions.

market, the plan focuses on bolstering efforts to capture the growing

Thanks to tackling each of these initiatives with speed, we are

middle-income ASEAN market, reforming the business structure in

seeing results on the profit front ahead of our target timeline. We plan to

Brazil and China, and maintaining and strengthening sport-oriented

expand these effects to the whole value chain while also reforming ourbranding and winning customers in the scooter category in India.

management style. We will continue to provide Yamaha’s unique value
in a distinctively Yamaha way to our global customers.

LEXi, new 125cc scooter for the growing Indonesian market

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

within the mobility framework.

Management Plan, we will work to generate results from increased

The motorcycle business current Medium-Term Management Plan sets

As one of those measures, we have been working on “expanding

28

FY2017 Yamaha Motor unit sales

FZ25, popular model in India with a total of 1.5 million units sold since the series’ release

Yamaha Motor Co., Ltd. ⎜ Annual Report 201729

Overview of Operations

Net sales and operating income

Marine Products(Billion ¥)(Billion ¥)400

FY2017 worldwide demand foroutboard motors
Note: Yamaha Motor surveys

100

327.0
300

75

FY2017 Yamaha Motor unit sales ofoutboard motors

North America
298 (36.3%)

Rest-of-world
265 (32.3%)

North America
109 (36.4%)

Rest-of-world
138 (46.0%)

61.0
200

Hirofumi Usui
Senior Executive Officer
Chief General Manager
of Marine Business
Operations

100

25

0

0

2014

2015

We will steadily promote our comprehensive marine business strategy to movefrom being an engine supplier to a system supplier.
Opportunities

Risks• Growing demand for large outboard motors mainly in developed• Creation of production/supply system to meet demand for large• Expansion of peripheral equipment business due to enhancement ofintegrated control technology

301
Unit: thousands(%): share ofunit sales

2016

2017

Europe 53(17.6%)

Europe258 (31.4%)

2018(Forecast)

Net sales

markets

820
Unit: thousands(%): share ofdemand50

Operating income

demand for large outboard motors has surpassed previous peaks. The

We will offer value that exceeds customer expectations byincreasing size of boats combined with a trend toward multiple outboard

expanding our peripheral equipment business through speedy

motors requires more complex technology for operation. In this context,

development of integrated control systems that enable ease of handlingthere are ever-increasing demands from customers for multi-function

for boats, while creating a supply system that can flexibly address

systems like those available for automobiles that would make boats

increased demand for large outboard motors.

easier to operate.

outboard motors• Achieving speedy development in integrated control field

Appraisal of 2017 results and initiatives for 2018

• Creation of business structure unaffected by changes in exchange

In 2017, we introduced large models and medium-sized lightweight

began the development of highly reliable boat control systems thatmodels in response to rising demand for outboard motors in markets inenable easier operation. The business overall recorded increases in

Europe and the U.S. For personal watercraft, we introduced newsales and profit, with net sales increasing ¥26.6 billion (9.0%) from theperformance models and entry models, and for boats, we shifted ourprevious year to ¥323.8 billion, and operating income up ¥4.1 billion

lineup toward high-value-added models and moved ahead with

(7.4%) to ¥59.5 billion.

rates and regulations

Areas of focus under the Medium-Term Management Plan
The system supplier that Yamaha aims to be

To continue contributing to a richer marine life for people around thestrategies including the acquisition of a boat builder in Europe. Sales

The year 2018 is the final year of our current Medium-Termincreased for all these products. In addition, with a view to making aManagement Plan. We will steadily pursue our comprehensive marine

supplier to a system supplier. By doing so, we will create new value

full-fledged transition to being a system supplier, we acquired twobusiness strategy aimed at further growth of our high-profitability

beyond customers’ expectations and firmly establish our position as the

manufacturers of peripheral equipment in the summer of 2017 andbusiness model.

world, the marine products business aims to grow from being an engine

Control systems

Engines + Peripheral equipment + Hulls

No. 1 marine brand based on our overall business strength, reliability,and network strength.
Under the slogan of competing in the 3-trillion-yen marine market
set out in the current Medium-Term Management Plan, we are pursuing

EEngines

Boats

our comprehensive marine business strategy integrating the establishmentof a system supplier business model, a strategy of alliances with boat

Easy-to-operate large boats with multiple engines

builders, and hull strategy.
Robust economic growth in Europe and the U.S., our largest
markets, is providing a tailwind for the marine leisure industry, andLarge multi-engine boat

242 Limited S E-Series

GP1800 WaveRunnerConcept image of integrated control system

30

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201731

Overview of Operations

Net sales and operating income

Solutions(Billion ¥)Net sales of industrial machinery and robots business(Billion ¥)

400

40

Net sales of PAS business(Billion ¥)(Billion ¥)

80

48

68.0
303.0

300

30

60

36

200

20

40

24

100

10

20

12

0

0

22.0

Hiroaki Fujita
Senior Executive Officer
Chief General Manager
of Solution Business
Operations

0

2014

2015

2016

2017

2018

0

2014

2015

(Forecast)
Net sales

Appraisal of 2017 results and initiatives for 2018industry, self-driving vehicles, nursing care and home automation.

In 2017, net sales in the solution business increased ¥25.5 billion• Expansion of electrically power-assisted bicycle market

2015

2016

2017

2018
(Forecast)(9.3%) from the previous year to ¥301.0 billion, and operating income

As a result, sales and profit were up in the solution business as a whole.
In 2018, as the final year of the current Medium-Term Management• Deterioration of demand due to changes in global situation

inventory in North America and an increase in expenses for measures toas personal mobility, agriculture, and medicine, by combining the factory• Intensifying competition resulting from new forces enteringenhance the market quality of golf cars in the power products business,

automation technology we have built up in the industrial robot businessnet sales and operating income both grew thanks to factors including awith the unmanned technologies for land, sea, and air developed by thesignificant increase in sales for surface mounters and industrial robots

UMS business.

on the back of a worldwide trend toward labor-saving and intelligent*The solution business includes the power products, industrial machinery and robots, and other products

the market

and electric automobiles, and continued robust performance bybusiness is pursuing the following initiatives based on the current

sales channels of businesses acquired in 2017.

businesses.

electrically power-assisted bicycles in Japanese and European markets.

The UMS (Unmanned Systems) business, which focuses on
industrial-use unmanned helicopters, is striving to contribute to theperformance of individual products while offering customers solutions

modernization of agriculture and to expand measurement andfor the entire manufacturing line using IoT.

observation services, while also working to promote use of its products
in agricultural markets overseas.

complete Yamaha-brand bicycle business in Japan and the U.S., we are

In the RV (Recreational Vehicle) business, we will broaden our market

cultivating new markets and new customers for the drive unit system kit

domain by promoting a new product strategy for ROVs (recreational off-business mainly in Europe.

highway vehicles).

In the multi-purpose engine and generator business, along with2014

In particular, we will strive to expand our business into new fields such

existing product sales, we aim to expand sales by using products andIn the electrically power-assisted bicycle business, in addition to the(Forecast)contributing to a decline in profit such as efforts to reduce ROVWith the goal of creating a unique business model, the solution

In industrial robots and surface mounters, we are improving the

2018

Plan, each business will continue efforts aimed at achieving our targets.

Risks

Areas of focus under the Medium-Term Management Plan

Medium-Term Management Plan.

2017

increased ¥4.3 billion (25.0%) to ¥21.5 billion. Despite factors

Opportunities

rising labor costs in emerging nations

2016

Operating income

We aim to create a unique business model in areas such as unmanned operations in• Growing need for automation due to labor shortages in Japan and

39.0

Mounter line centered on high-end, highly efficient modular Z:LEX YSM20R

JW Swing electric assist wheelchair

32

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201733

The Basis of Creating Value

Global Brand
Strategy

Global Brand Strategy aims to enhance corporate value and strengthen the brandKando Cycle• Kando Cycle describes how we, Yamaha Motor, conduct our business from a brand perspective.

The Yamaha Motor Group views the further enhancement of Yamaha’s

services, and sharing those activities on a Global Brand Site. In 2018,

brand value as an important management issue, and is pursuing aawareness surveys will be carried out and brand workshops will be held

Global Brand Strategy to enhance corporate value and brand strength.

for employees in Japan and overseas, and activities will seek to instill

In January 2017, senior managers at headquarters and overseas• As a “Kando Creating Company,” we continuously generate new Kando by expanding the linkage of Kando experiences and increase both our brandvalue and our corporate value.

the unique style of Yamaha using booklets, videos, and other tools.

promote a Global Brand Strategy, measure and analyze brand value,

Y4

and provide feedback to senior management. In addition, July 1, theUnderstand &experience the uniquestyle of Yamaha

Build the excitement forhaving products with theunique style of Yamaha

Communicate the uniquestyle of Yamaha and its
experiences to customers

anniversary of the Company’s founding, was designated as Brand Day
to strengthen internal branding. This internal branding involves

B1

Build customer’s
emotional attachment toYamahaC2

C1

subsidiaries met to form a Brand Committee that would propose andSpreading theunique style of Yamaha
continuously

C4
Strengthening customer’sbond and loyalty to Yamaha
through service

Kando for employees
and partners

B2
Increase potential fans

Y1

promoting activities to increase the understanding of and affection

Y3

toward the brand by all Group employees around the world, leading to
the demonstration of the unique style of Yamaha in our products andRedefining “The Unique Style of Yamaha” in Five Words

C3
Kando
for customers

Develop partners’
loyalty to the uniquestyle of Yamaha

B3

Foster employees’pride
Embody the unique styleof Yamaha

Increase newcustomers/applicants

C5

When Brand Day was designated in 2017, five words were chosen

The “Revs your Heart” brand slogan was formulated in 2013 to express

as a definition to embody the unique style of Yamaha: Innovation,

Yamaha Motor’s corporate mission of being a “Kando* Creating

Excitement, Confidence, Emotion, and Ties. By sharing the three layers

Company.” The term “Revs” has two meanings—increasing the speedof the corporate mission, brand slogan, and the unique style of Yamahaof an engine and causing excitement—and “Revs your Heart” expresses

across the entire Group, we will continue to work to enhance corporate

our desire to excite customers with a sense of Kando through various

value and strengthen the brand.

innovations and products, similar to giving power to an engine.

*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.

Corporate Mission

Kando Creating Company

Y2

Develop technology,
products & services
with the unique style of
YamahaC6

Increase profit perunit, number of sales,
profit, stock price

Y: Yamaha
C: Customer
B: Business

Expand investment

Examples of Global Brand Strategy Promotion
VietnamThailand

Brand training for employees

Placed in Top 3 for “Best Brand Performance 2017”

Yamaha Motor Vietnam (YMVN) held brand training sessions for

For the second year in a row, Thai Yamaha Motor (TYM) was one of theemployees at a Hilton hotel in Hanoi and a Pullman hotel in Ho Chi Minh

three finalists for the Automobile division of the Best Brand Performance

City in July 2017. More than 100 people participated in each event andawards at the Thailand Zocial Awards 2017. This award recognizes

gained a better understanding of the unique style of Yamaha. Frombrands in various segments for their social contribution, and being a

August, these events were expanded to include roughly 5,000

finalist for two consecutive years is an acknowledgment of TYM as aemployees of our factories in Hanoi.

company that has created a sustainable economic model.

Employees who participated in YMVN’s brand training

TYM employees who accepted the award

Brand Slogan

The Unique Style of Yamaha

発
Innovation

34

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

悦信

Excitement Confidence

魅結EmotionTies

Yamaha Motor Co., Ltd. ⎜ Annual Report 201735

The Basis of Creating Value

Human
Resources

Global perspective and respect for diversity

mental and physical health, we established the Rules Regarding Overtime

The Yamaha Motor Group strives to create workplaces that respect diversity, with the aim of achieving an organizational structure that is based on the
sharing of ideas, equally high ambitions and spirit, cooperation, and joy in our work among the Company and its employees from a global perspective.

Work, which are stricter than the legal requirements and based on

and regulations, we offer ongoing health guidance to employees wholabor-management consultations. In addition, the Labor-Management

are at risk of lifestyle-related diseases and incentives to encourageCommittee on Working Hours, comprised of participants from both theemployees to quit smoking, among other programs. For employee familylabor union and the Company, meets every month to confirm themembers, we provide subsidies through our health insurance

present state of working hours.

association for those receiving regular health checks, cancer screening,

Organization Thriving on Diversity

Multifaceted Human Resources Development

Based on our fundamental belief that “all corporate activity originates firstAs our business becomes increasingly global in scale, we believe we needof all with and for people,” we have clearly defined our stance on humanto step up our efforts in the area of human resources development, foremployees to take time away from work by setting targets for bothrights in the Basic Policies of CSR and the Code of Ethics. Moreover, towhich we are expanding our human resources development programs

employees and management, and sending special notices to those eligible

prior to posting on infectious diseases such as viral hepatitis andmaintain continuous growth, we believe it is important that our workforce

each year to address employees in a variety of positions.

for five consecutive days of paid leave.

general health management, provide education on preventing infection

incorporates diverse viewpoints and values, reflecting different

Regarding the use of paid leave, we make efforts to encourage ourSpecifically, our programs include stratified training, training to refine

and complete physical examinations.
For employees scheduled to be stationed overseas, we hold training

as well as prophylactic medications for employees who are traveling—

specific functional skills, and training systems that develop humanWorkplace Safety and Healthincluding on business trips—to areas where there is a risk of

To achieve this, we have developed and implemented common

resources who are able to work at the global level through fourth-year-

Under the leadership of the Central Safety and Health Committee, with

contracting endemic diseases such as malaria. In addition, themanagement development programs around the world and introduced

employee overseas experience, working as an overseas trainee andauthority delegated by the President and Chief Executive Officer,

occupational health physician in charge conducts regular tours of the

global human resources systems to train and hire talented staff as westudying at a university abroad, as well as coaching to enhance

Yamaha Motor is promoting the establishment of a safe and healthy

overseas posting areas and monitors the health levels and living

work to build an organization that utilizes global experience andperformance as an organization with cohesive teamwork.

working environment around the world.

environments of employees stationed abroad. Furthermore, to handle

experiences, skills, and attributes.

knowledge. We will recruit superior management personnel regardless ofThis coaching was implemented in 2016 as an effective tool to makeFor example, we strive to prevent occupational accidents by

unexpected circumstances such as sudden illness, we have contracts

their nationality, place of birth or any attributes, and aim to have local

managers fully function as the middle management in the organization,

performing risk assessments in accordance with the Occupationalwith private medical service operators who provide both consultations

managers fill 60% of management positions at overseas subsidiaries by

and was completely rolled out from 2017 in more workplaces.

Safety and Health Management System (OSHMS) to detect potentialand emergency transportation services.

2018. In terms of hiring new graduates, we are using global hiring for adangers and harmful conditions in the workplace. In addition, we are

Moreover, to promote health through recreation, we organize events

Supporting Work-Life Balance

focused on developing human resources who can support workplacesuch as the “Walk, Walk Campaign” led by the Health Promotion Center.

We support career planning that is based on the assumption of mutualsafety and a healthy occupational environment through job-specific

In terms of facilities, there is a gymnasium near headquarters that canpursuing targets of doubling the number of women hired for

confirmation by both the employee and the Company, and aim to create

education and training to improve the skills of safety managers,

be used free of charge by Group employees, their families, and by

managerial positions in 2014 by 2020, and to hire three times theworkplaces that promote a healthy work-life balance.

supervisors, and operations chiefs, and by holding occupational safety

former employees, and some workplaces have gyms with training

and health meetings.

machines on their premises.

certain percentage of general entry-level positions.
To promote active participation by women, we have set and are2014 number by 2025.
For people with disabilities, in October 2015, we establishedWe are enhancing our systems so that employees can work in waysthat suit their individual circumstances, by providing childcare leave,

Starting in 2008, our headquarters introduced a system for

Yamaha Motor MIRAI Co., Ltd. to provide a place where they cannursing care leave, and family illness leave, as well as systems such as

inspecting Yamaha’s main manufacturing centers to determine if they

TOPICS 1st Yamaha Motor Woman Forum

participate actively in accordance with their capabilities and to promote

flexible work time, short working hours, and the rehiring of employees

are meeting OSHMS standards, with group certification granted to

The 1st Yamaha Motor Woman Forum was held at headquarters intheir social independence. The company began full-scale operations in

who resigned to accompany their spouse on overseas postings. We are

centers that have achieved the required level and follow-ups conducted

October 2017. Employees were invited to form teams to present

2016, and in addition to expanding its areas of operations to include

also working to support employees raising children through Wai-Wai

on a regular basis.

proposals for new mobility or new businesses for women in Japan,

parts packaging and office cleaning, it has been holding various events

Land, an in-house childcare facility providing broad-based support forincluding company tours and the President’s Awards (a skills contest) as

both work and family. In 2016, we expanded the size of this facility and

Employee Healtha way to increase job satisfaction and motivation.

increased the number of children that can be accepted.

We engage in a wide range of initiatives to help employees maintain

With the aim of reducing overtime and in consideration of maintaining

36

For example, in addition to health checks in accordance with laws

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

and the presentations of successful examples of productdevelopment from the perspective of women, speeches by outside
female lecturers and workshops made the event a success.

and improve their health.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201737

The Basis of Creating Value

Research andDevelopment

Core technical competencies for realizing “Revs your Heart” and Jin-Ki Kanno ideal

Strengthening and Developing the Core Technical Competencies at the Heart of the Jin-Ki Kanno Ideal
The world of personal mobility is experiencing major changes, including the use of AI and automated driving for safe mobility with peace of mind, andYamaha Motor operates businesses with highly unique products in 16 areas, including motorcycles, marine engines, ROVs, electrically power-assisted

the introduction of electric vehicles to address climate change. This is the backdrop against which Yamaha Motor is strengthening and developing thebicycles, electric wheelchairs, and robotics through the fusion of three core technical competencies: powertrain technologies developed through ourcore technical competencies at the heart of the Jin-Ki Kanno ideal.

main motorcycle business, chassis and hull technologies, and electronic control technologies. All of these products and businesses embody the “Revs
your Heart” slogan by incorporating Yamaha Motor’s exclusive development ideal of Jin-Ki Kanno.

New Business Model
Promoting the use of information, telecommunications, and IoT technologies amid expanding sharing services

Leaning Multi-Wheelers(LMW)

Yamaha Motor’s Core Technical Competencies

Electrically PowerAssisted Bicycles

that go beyond owning something to providing an experience

Electric
Wheelchairs

Low-speed automated driving system• Powertrains• Chassis and hulls

Snowmobiles
ATVs and ROVs

Industrial Machinery
and Robots

Automobile
Engines• Electronic control

public implementation testing of automated driving. We are adapting
the electromagnetic guidance self-driving technology developed overIndustrial-use
Unmanned Helicopters

Snow Throwers

Personal Watercraft

Generators

Motorcycles

Exclusive Development Ideal—Jin-Ki Kanno

We are providing compact vehicles based on a golf car design formany years in golf cars and equipping the vehicles with our proprietarystereo vision obstacle detection system. Attention is being placed on
this technology as a people- and environment-friendly sustainable

Swimming Pools

Technology born from Jin-Ki Kanno seeks to deliver to users theGolf Cars
Boats

Marine Enginestransport system for rural areas with contracting, aging populations.

seductive exhilaration felt when they truly become one with theirmachine. This is a solid part of our Yamaha Monozukuri framework; thedevelopment style that permeates all our workplaces is to quantify andfine-tune this kind of exciting performance, which we call Kanno Seino,Powertrain
Technologies

Electronic
ControlTechnologies

Chassisand HullTechnologies

New Concept in Mobility

and then build it into our products.

Aiming to realize enjoyable movement and prosperous society with personal mobility

Jin-Ki Kanno makes it possible for machines and mechanisms tobecome familiar with a person’s intentions and movements, and achieve

Reference vehicle exhibited at the Tokyo Motor Show 2017a natural responsiveness. In the area of personal mobility, for example,
being able to feel as one with the machine creates an operability thatenables the user to achieve performance that exceeds expectations. In

Expanding LMW* possibilities
Mobility that allows more people to experience the

Jin-Ki Kanno

sensations of a motorcycle. Small, leaning mobility aims

in active human operation

to give an enjoyable ride with the true pleasure of driveraddition, supporting a person’s life and work provides a sense ofand machine as one for a sensuous feeling and stability

excitement that makes it possible to operate the machine comfortably

while addressing social issues.

and naturally.

*Leaning Multi-Wheel: Yamaha’s designation for vehicles with three or more wheelsthat lean like a motorcycle when making turns.

Jin-Ki Kanno
supporting people’s lives and work

38

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

TRITOWN

MWC-4

Yamaha Motor Co., Ltd. ⎜ Annual Report 201739

Special Feature on Corporate GovernanceTwo companies with the same DNA are enhancing brand value to makethe Yamaha brand shine even more brightly around the world and in new business areas.

Q What is the significance and what are the benefits of the joint use of
the Yamaha brand?
Yanagi Yamaha Motor and Yamaha Corporation are both companies

Yanagi The Yamaha brand overall provides unique products in a widewith the Yamaha brand. Based on the concept of protecting the brandrange of fields, from vehicles to musical instruments. Our companies

and enhancing brand value, the two companies have established theare also very unique in that we provide value throughout our customers’

Yamaha Brand Charter and Joint Brand Regulations. At the core of the

lifetimes, from childhood to adulthood. For example, traffic safety

charter is “delivering exceptional value and experiences that enrichprograms we offer for children in various places in India havethe lives of everyone who comes into contact with Yamaha.” A Joint

educational events that involve music. And in the ASEAN region, we

Brand Committee serves as a venue where top management of thehold musical events together with motorcycle races for young people.

two companies can meet and discuss whether both companies are

These activities, which effectively combine the two companies’

carrying out their work in accordance with the charter, and see whatbusinesses, meaningfully convey the appeal of the Yamaha brandmore can be done in terms of cooperation to enhance the Yamaha

across generations. By pursuing joint businesses that address thebrand even further.

various stages of our customers’ life cycles, I hope to make the

The continuous growth of Yamaha’s brand value is the primary

Yamaha brand even more valuable.

objective of the two companies’ cooperation. We are constantly
thinking about how to remove negative factors that could damage

Nakata At a global exhibition of musical instruments in North America,

brand value and how to maximize positive factors.

we also used part of the space to exhibit motorcycles, and customers
who saw this reacted favorably, saying, “Just like Yamaha.” Yamaha

Takuya Nakata
Outside Director,
Yamaha Motor Co., Ltd.
(President and Representative
Executive Officer, Yamaha Corporation)

Hiroyuki Yanagi
Dialogue

Chairman and Representative Director,
Yamaha Motor Co., Ltd.
(Outside Director, Yamaha Corporation)

Nakata There are other examples of two companies using the same

Motor is ahead of Yamaha Corporation in terms of international expansion,brand, but I don’t know of any other cases where the companies

and is providing important infrastructure with products like motorcycles

involved share a common sense of purpose so closely. Because bothand outboard motors. The brand recognition and trust of these attractive,

companies share the same origin, it is in our common DNA to pursue

high-quality products create very significant synergies that we are ablehighly distinctive products as a matter of course. Based on theto use as we expand globally. In addition, the two companies’ designconcept of lifetime value, I am certain that we will be able to work

divisions have worked together on concept models, which have beeneven more closely together to form a long, deep relationship withrecognized by the global design world as products that express eachcustomers and enhance Yamaha’s brand value even further.

company’s uniqueness with a natural, subtle beauty.

Q Please tell us about the most important aspects of your serving as
Outside Directors of each other’s companies and cross-shareholding.
Yanagi Serving concurrently as Outside Directors and cross-thinking about whether they are maintaining an environment thatshareholding make both companies more influential in a positive way.

creates truly Yamaha experiences, and providing appropriate advice.

Yamaha Motor is working to strengthen its corporate governance as the foundation for continuous

I consider the important thing about the two companies’ relationshipenhancement of corporate value. Chairman Hiroyuki Yanagi and Outside Director Takuya Nakata discuss

to be, more than functioning as a mutual check on each other,

Nakata I believe the true significance of cross-shareholding is thepromoting a sense of challenge for both companies to grow while

mutual commitment to the two businesses in a healthy way. If theremaining healthy and dynamic. The Yamaha Brand Charter also uses

other business grows, our own business gets a corresponding boost,the phrases “determination to pursue continuous evolution” andand this makes the brand shine even more brightly.

their thinking about the two companies’ joint use of the Yamaha brand and cross-shareholding, andwhat needs to be done to make the companies’ corporate governance even stronger.

“challenge and creative ingenuity,” and both companies are constantly

40

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201741

A change is occurring in employee

The mission of both companies is tomotivation regarding brand value

embody the common brand, and theenhancement at both companies, andmonthly meetings of the Board of

I see this as a major synergy from the

Directors are where we confirm thisjoint use of the Yamaha brand.

mission together.

Q What roles do you play and what do you bear in mind as Outside Directors ofeach other’s companies?
Yanagi The Yamaha brand expresses our passion for enabling customers

I consider it important that I calmly look at the activities being

to experience Kando. When I listen to various reports as a member ofundertaken and give advice accordingly.

Yamaha Corporation’s Board of Directors, I consider my role to be to

I find it very stimulating personally when I see individual members

examine whether products are being made with passion, whetherof Yamaha Motor’s Board of Directors communicate to outside thequality is being pursued to its utmost, and whether innovation isCompany in various aspects, and I strive to instill this passion in our

occurring. I also express my opinions without reservation. The mission

employees at Yamaha Corporation.

of both companies is to embody the common brand, and the monthly

In addition, the commitment and close communication between

meetings of the Board of Directors are where we confirm this mission

the senior management of the two companies through venues liketogether.

the Board of Directors and the Joint Brand Committee have led toself-initiated communication among employees at all levels. A change

Nakata Yamaha Motor’s Board of Directors discusses how to enable

is occurring in employee motivation regarding brand value enhancement

customers to understand the Yamaha brand and what else can beat both companies, and I see this as a major synergy from the joint

done in this area. I feel that the bar for passion is set very high at

use of the Yamaha brand.

Yamaha Motor. From my position as an Outside Director, therefore,

Q What issues exist with regard to corporate governance at the two companies,
and what is your vision going forward?

42

The enthusiasm and imagination of Yamaha Motor’s employees
are superb, and the Company pushes into new areas without

begin to see concrete results in these areas under the next Medium-

reservations. It is also important, however, to closely examine theTerm Management Plan. This will also make it important to have a

associated risks from an objective perspective, without impeding thisstructure in which management and employees feel that they are

forward momentum. I believe that we as Directors need to understandworking closely together, to be able to lay the groundwork for andboth sides of this equation.

cultivate successive businesses while keeping a close eye on thosebusinesses’ prospects for the future.

Yanagi I think that the direction and depth of passion are vectorsof emotion and logic. Balanced, strong passion is not possible if

Nakata Yamaha Corporation has also outlined a growth strategy inmanagement leans too far toward emotion or toward logic. As Mr.

its current NEXT STAGE 12 Medium-Term Management Plan, which

Nakata has pointed out, Yamaha Motor employees tend to be inclined

focuses on increasing profitability. I believe we still have room totoward emotion, but there is no question that a management culture

increase our brand value in the musical instrument and musicthat encourages the pursuit of new challenges and free and open-

markets. Musical instruments and audio equipment are rooted in theminded deliberation has been the driving force behind the creation

senses, and a price cannot be put on sensitivity. Our objective is toof a variety of original products over the past 60 years.

compress the brand to create a premium brand image. Yamaha

In addition, going forward, I want Yamaha Motor to be a company

Motor’s direction is a bit different, but we are the same in terms

in which management and employees feel close to each other. Byof aiming even higher. To achieve this, we both need to do things

stressing the importance of management and employees being as one

differently than other companies. My challenge is to create new value

in the Company systems, structures and management’s mindset, I

in areas based on music and sound.

hope to maintain an organizational culture that supports swift
decision-making and high product quality.
The main issue facing the Company over the next 10 years is

Nakata I view corporate governance as how a person in a top position

before the Board of Directors, which has allowed the Board to have

how to generate the next ¥1 trillion. Under the current Medium-Term

at a company thinks, and how people in management positions andmore active, in-depth deliberations. Since this change, I feel evenManagement Plan, various measures are being implemented as theexecutive positions commit to that way of thinking. In 2017, Yamaha

more strongly that the important thing for management is to look very

Corporation became a “Company with Committees.” One of theclosely at what is essential for growth, and to act quickly to movebenefits of this has been a reduction in the number of items broughtin that direction.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

groundwork for new business fields, and I hope to accelerate andYanagi It looks like there are many things we can still do together.
I look forward to that.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201743

Corporate Governance

Basic Corporate Governance Policies

Corporate Governance Guidelines

Yamaha Motor’s Corporate Governance System and Internal Control System (As of March 26, 2018)https://global.yamaha-motor.com/ir/governance/pdf/corporate_

The Company’s Management Principles and Management
Strategies

governance_guidelines-e.pdf

Yamaha Motor’s corporate objective is to be a “Kando* Creating

Corporate Governance System Overview

Appointment/Dismissal

Company.” We aspire to offer new excitement and a more fulfilling life

Main items

for people all over the world. To this end, we provide unique andhigh-quality products and services made available through our technology

Organizational design

to interweave human logic with sensibility by continuously striving to

Number of Directors (number of Outside Directors)

achieve “the unique style of Yamaha Motor’s engineering, manufacturing

Number of Audit & Supervisory Board Members(number of Outside Audit & Supervisory Board
Members)

and marketing,” aiming at creating “new, original and innovative ideas
and messages,” “technology that creates joy and trust amongcustomers,” “attractive designs to express Refined Dynamism,” and“power to build up a lifetime relationship with customers.”
We make ongoing efforts to gain recognition from our various
stakeholders that “the unique style of Yamaha Motor” constitutes the“Yamaha” brand, and to make our products and services the lifelong
preferred choice for stakeholders. We believe that these efforts will
enable us to achieve sustainable growth and enhance our medium- tolong-term corporate value.
Under the Medium-Term Management Plan (2016–2018), we will
carry out specific measures to achieve sustainable growth andenhancement of corporate value. While maintaining and strengthening
a stable financial base, we proactively make strategic investments forValue

11 (4)

Number of meetings of Audit & Supervisory Board(Fiscal 2017)(Average attendance by Outside Audit & Supervisory
Board Members)

13(96.1%)

Board of Directors
11 Directors

Audit

Executive Personnel
Committee

Appointment/Dismissal
Supervision

Reporting businessexecution situations

Appointment/Dismissal

Audit & Supervisory Board
Members
Audit & Supervisory Board

Coordination

Yes

Optional committees of Board of Directors

Executive Personnel
Committee

External Auditor

4 Audit & Supervisory Board Members(including 2 Outside Audit & Supervisory Board Members)

Audit

Coordination

Accounting audit

Coordination

Business Execution
Seeking advice/
Making recommendations

Management Committee

President, Chief
Executive Officer andRepresentative Director

Instruction/Report

Seeking advice/
Making recommendations

Instruction/Report

Risk Management andCompliance Committee

One year

Employment of Executive Officer system

AuditorAppointment/Dismissal(including 4 Outside Directors)

4 (2)
13
(95.8%)(87.8%)(96.2%)

Directors’ terms of office

Seeking advice/
Making recommendations

Company with Audit &Supervisory Board

Number of meetings of Board of Directors (Fiscal 2017)(Average attendance by all members)(Average attendance by Outside Directors)(Average attendance by Outside Audit & Supervisory
Board Members)

growth in the following three domains: “fulfilling lifestyles,” “enjoyment

Integrated Auditing
DivisionInternal audit

Business sectors, Functional sectors, Corporate sectors, Subsidiaries

Ernst & Young
ShinNihon LLC

deliberated upon at the Executive Personnel Committee are reported

in personal mobility,” and “innovative technologies that harmonize with

To ensure the transparency and effectiveness of the deliberation

people, society and the Earth,” to provide our shareholders with

Directors and the Board of Directors

enhanced returns.

The Board of Directors consists of eleven (11) Directors (including four

*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.

(4) Outside Directors). In principle, the Board of Directors meets

Committee deliberates upon the appointments and dismissals of theBoard of Directors’ meetings, the majority of the members of themonthly, and additionally from time to time as necessary.

Chief Executive Officer, Directors, Audit & Supervisory Board Members

Executive Personnel Committee consists of Outside Directors, and theand Executive Officers, as well as the selection of candidates for suchmeeting of the Executive Personnel Committee is held more than six

Basic Views on Corporate Governancecollect adequate information, understand relevant laws and regulations

senior management positions and their development plans, whiletimes a year, in principle. The current members are as follows:

To ensure the implementation of the Company’s growth strategies forand other necessary rules, actively express opinions, discuss and makeconfirming future management strategies and personnel requirements

Chairman: Chairman and Representative Director

the future, Yamaha Motor’s Board of Directors establishes andecisions at Board of Directors’ meetings, Management Discussion

for putting them into practice, among other things.

Committee member: President and Representative Director Yoshihiro Hidaka

environment that supports management’s appropriate risk-taking andmeetings and other important meetings in order to obtain sufficient

In the role related to “remuneration,” the Executive Personnel

Committee member: Representative Director

Katsuaki Watanabe

decisive decision-making activities, and multilaterally understands andknowledge on viewpoints and standpoints of various stakeholders

Committee deliberates upon and determines the evaluation standards

Committee member: Outside Director (Independent)

Takuya Nakata

appropriately oversees issues and risks associated with theincluding shareholders, and to achieve sustainable growth and medium-and remuneration system for the Chief Executive Officer, Directors andCommittee member: Outside Director (Independent)

Atsushi Niimi

implementation of the Company’s management strategies from theto long-term enhancement of corporate value.

Executive Officers. The Executive Personnel Committee also evaluates

Committee member: Outside Director (Independent)

Genichi Tamatsuka

the performance of the Company and individuals based on

Committee member: Outside Director (Independent)

Takehiro Kamigama

On the basis of fiduciary responsibilities to shareholders, Directors

viewpoint of fulfilling responsibilities to various stakeholders including
shareholders and investors.

44

General Meeting of Shareholders

to the Board of Directors.
In the role related to “nominations,” the Executive Personnel

Executive Personnel Committee

contributions to medium- to long-term corporate growth and businessprocess, which is the purpose for establishing the Executive Personnel
Committee, as well as to ensure the validity of matters reported to the

Hiroyuki Yanagi

This structure is designed to implement speedy and decisive

Yamaha Motor has established an Executive Personnel Committee,

performance for the said fiscal year, in order to deliberate upon thedecision-making, and appropriate, transparent and fair supervision andwhich is involved in nominations and remuneration, as a voluntarycompensation linked to performance for such senior management

Audit & Supervisory Board Members and the Audit &Supervisory Board

monitoring as the Company’s corporate governance. Accordingly, we

advisory body of the Board of Directors, to improve transparency andwithin the limits of total remuneration resolved at the General Meeting

The Audit & Supervisory Board Members are made up of two (2)formulate corporate governance guidelines and put them into practice invalidity in nominating candidates for executive positions andof Shareholders.

Standing Audit & Supervisory Board Members and two (2) Independent

an appropriate manner.

determining their remuneration, among other objectives. Matters

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201745

Outside Audit & Supervisory Board Members. In principle, the Audit &Executive Officers and Management Committee, etc.

Supervisory Board meets monthly, and additionally from time to time as

Risk Management and Compliance Committee

The Company has twenty-nine (29) Executive Officers, of whom six (6)Independent Outside Directors and Outside Audit &Supervisory Board Members

necessary. On the basis of fiduciary responsibilities to shareholders,

serve concurrently as Directors. A Management Committee, comprising

Yamaha Motor appoints Independent Outside Directors in accordance

Executive Officers with specific posts, has been established to

Audit & Supervisory Board Members and the Audit & Supervisory Board,ten (10) Executive Officers with specific posts, has been established towith its “Standards for Selecting Independent Outside Officers,” which

deliberate measures related to risk management and compliance. In

as a body independent from the Board of Directors, request thedeliberate on matters of business execution, speeding up theare disclosed to the public.

principle, the Risk Management and Compliance Committee meets at

Company and its subsidiaries to submit reports on their businessCompany’s decision-making process. In principle, the Management

activities in accordance with laws and regulations, survey the status ofCommittee meets at least monthly, and additionally from time to time as

objectively oversee conflicts of interest between the Company’sbusiness operations and property, exercise rights in respect ofnecessary.

management and shareholders from social perspectives and from theInternal Auditing

standpoints of various stakeholders including shareholders and

The Integrated Auditing Division, with twenty-six (26) members andleast twice annually, and additionally from time to time as necessary.

appointing or dismissing an External Accounting Auditor and audit

In addition, a Global Executive Committee has been established tocompensation, attend meetings of the Board of Directors and otherdeliberate on important management policies and issues related to theinvestors. They are also expected to actively provide the Company with

reporting directly to the President and Chief Executive Officer, has been

important meetings, and provide opinions as needed. Through theseGroup’s management. The Global Executive Committee includes theadvice on management policies and improvements.

established as an internal auditing sector to audit the appropriatenesstasks, Audit & Supervisory Board Members and the Audit & Supervisory

Company’s President and Chief Executive Officer, all Executive Officers

Board audit the legality and appropriateness of Directors’ execution ofwith specific posts, and senior local managers of major Group

Board Members endeavor to understand a complete view of Yamahainternal audit functions have been installed at major subsidiaries,

duties, internal control systems, and the performance and financial

companies, and has thirty-eight (38) members, of whom twenty-eight

Motor’s business operations by inspecting the minutes and reference

working together with the Company’s internal auditing sector to audit

position of the Company and its subsidiaries. An Audit & Supervisory(28) are Japanese and ten (10) are non-Japanese. In principle, thematerials of Management Committee meetings and other important

divisions and subsidiaries.

Board Members’ Office, with a dedicated staff of two (2) persons, has

Global Executive Committee meets at least once annually, andmeetings, and by visiting its worldwide development, procurement,

been established to assist the Audit & Supervisory Board Members withadditionally from time to time as necessary.

production and sales locations, and markets. They attend the Management

Remuneration System for Directors and Executive Officers

Discussion meeting held after the Board of Directors’ meetings on a

The remuneration plan for Directors and Executive Officers consists ofregular basis, and the Executive Discussion meeting held more thanbasic compensation (a monthly compensation), compensation linked toonce a year to openly exchange opinions on the Company’s medium- to

the individual performance, a stock compensation plan reflecting thelong-term management strategies and important management matters.

Company’s medium- to long-term consolidated performance, andSummary of “Standards for Selecting Independent Outside
Officers”

bonuses of Directors and Executive Officers reflecting short-term

I. Independent Outside Officers may not be:

and Executive Officers to acquire the Company’s shares monthly at atheir audit and supervisory operations.

Appointment of Outside Directors and Outside Audit & Supervisory Board Members
Position

Name

Reasons for appointment

Takuya Nakata

The Company nominated Takuya Nakata as an Outside Director in the belief that he will provide the Company’s
management with valuable advice and supervision based on his wide range of insights and his ample experience inmanagement as Director, President and Representative Executive Officer of Yamaha Corporation, by which the Company
aims to increase the value of the Yamaha brand commonly used by both companies. He meets the requirements forindependence stipulated by the Tokyo Stock Exchange and the “Standards for Selecting Independent Outside Officers,”
and the Tokyo Stock Exchange has been duly notified of his designation as an Outside Officer.

Atsushi Niimi

Outside Directors

Genichi Tamatsuka

The Company nominated Atsushi Niimi as an Outside Director in the belief that he will provide the Company’s
management with valuable advice and supervision based on his ample experience managing global companies andhis wide range of insights. He meets the requirements for independence stipulated by the Tokyo Stock Exchange andthe “Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has been duly notified ofhis designation as an Outside Officer.
The Company nominated Genichi Tamatsuka as an Outside Director in the belief that he will provide the Company’s
management with valuable advice and supervision based on his wide range of insights and his ample experiencein management, through his experiences in various managerial positions, including as a representative director forseveral companies. He meets the requirements for independence stipulated by the Tokyo Stock Exchange and the“Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has been duly notified of his
designation as an Outside Officer.

The Company nominated Takehiro Kamigama as an Outside Director in the belief that he will provide the Company’s
management with valuable advice and supervision based on his wide range of insights and his ample experience inmanagement and technology, through his experiences in various managerial positions, including as a representative
Takehiro Kamigama
director at a global company. He meets the requirements for independence stipulated by the Tokyo Stock Exchange
and the “Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has been duly
notified of his designation as an Outside Officer.

Tomomi Yatsu
Outside Audit &Supervisory Board
Members

Masahiko Ikaga

46

Independent Outside Directors are expected to independently and

A Risk Management and Compliance Committee, comprising ten (10)Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

The Company nominated Tomomi Yatsu as an Outside Audit & Supervisory Board Member in the belief that she will
utilize her significant expertise as an attorney and a certified public accountant, as well as her ample knowledge andexperience as an outside officer for a corporation in performing her duties as one of the Company’s Audit & Supervisory
Board Members (Outside). She meets the requirements for independence stipulated by the Tokyo Stock Exchange andthe “Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has been duly notified of her
designation as an Outside Officer.
The Company nominated Masahiko Ikaga as an Outside Audit & Supervisory Board Member in the belief that he will
utilize his significant expertise as a certified public accountant, as well as his ample knowledge and experience as acompany executive and an outside officer for a corporation, in performing his duties as one of the Company’s Audit& Supervisory Board Members (Outside). He meets the requirements for independence stipulated by the Tokyo Stock
Exchange and the “Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has been
duly notified of his designation as an Outside Officer.

Independent Outside Directors and Outside Audit & Supervisoryof operational activities at the Company and its subsidiaries. In addition,

consolidated performance. A stock compensation plan allows Directors

1. Employees or former employees of the company

certain amount (via the Director Shareholding Association) and to hold

2. Major shareholders

them during their term of office. This stock compensation plan is

3. Individuals in a “major customer” relationship with our corporate

intended to be linked to shareholder value. Directors’ bonuses aregroup
4. Individuals from companies that have accepted a director from
Yamaha Motor Groupcalculated, up to a maximum of 0.5% of consolidated net income, in
correlation with consolidated net income and return on assets for theprevious fiscal year, as well as taking into account factors including

5. Individuals with some other type of vested interest in the Groupdividends to shareholders and the level of consolidated performance

6. Individuals who might have a conflict of interest with our general

against the budget.

shareholders

Based on the policies outlined above, the Executive Personnel

7. In office more than 8 years

Committee deliberates on the level, structure and allocation of basic

Moreover, individuals who are second-degree relatives, or cohabiting

compensation, compensation linked to individual performance, and therelatives, of any of those mentioned above in 1 through 5 may not be

stock compensation plan for Directors and Executive Officers, as well as

officers.

Directors’ and Executive Officers’ bonuses. The process and results areproposed to the Board of Directors. The Board of Directors discusses

II. Individuals, despite being applicable to any of the 2 to 5 above, may
be elected as independent outside officers of the company if they, inthe proposals from the Executive Personnel Committee and makes
decisions.

view of their personality and insight, are believed suitable as
independent outside officers of the company on the condition that the

The Board Evaluationindividuals meet the requirements of an outside director as required

Pursuant to Yamaha Motor’s Corporate Governance Guidelines, theunder the Companies Act, and that a public disclosure is made to

Board of Directors analyzes and evaluates the effectiveness of roles andexplain the reasons for electing them as independent outside officers

responsibilities of the Board as a whole on a yearly basis. The analysisof the company.

and evaluation are carried out from the following perspectives and a

For the full text of the “Standards for Selecting Independentsummary of the results is appropriately disclosed.

Outside Officers,” please visit our website.
http://global.yamaha-motor.com/ir/governance/pdf/independent_en.pdf

Yamaha Motor Co., Ltd. ⎜ Annual Report 201747

(Evaluation perspectives)• Share the results of the evaluation of effectiveness and deliberate the

1. Roles and responsibilities of Directors and the Board of Directors

issues to be addressed at the Board of Directors’ meetings based on

2. Relationships between the Board of Directors and senior

the results of the analysis.

Composition of Directors
As of April 1, 2018

management (Executive Officers)
3. Organizational design and composition of the Board of Directors, etc.

(Evaluation results)

4. Qualifications held and knowledge of Directors and the Board of

It was confirmed that the Board of Directors continued to proactively
hold effective discussions and implement creative initiatives to realize

Directors
5. Deliberation at the meetings of the Board of Directors

the medium- to long-term enhancement of corporate value and6. Relationships and dialogue with shareholders

sustainable growth, and the effectiveness was sufficiently assured.

Directors

Field in charge

Corporate
Management/
Expertise

Manufacturing/Technology/
R&D

Sales/
MarketingAccounting/
Finance/
M&A/IT

Governance/Risk
Management/
Human Resources

GlobalExperience

In particular, it was highly evaluated that the Directors proactively

7. Dealing with stakeholders other than shareholders

commented about matters outside their responsibility to fulfill the roles(Evaluation process)and responsibilities of supervision among Directors and management,

The effectiveness of the Board of Directors was evaluated using theand the comments made by Outside Directors and Audit & Supervisory

following process with the Corporate Planning Division acting as theBoard Members were fully respected. It was also confirmed that key

secretariat.

issues regarding Yamaha Motor’s management strategy have been

• Survey all the members of the Board of Directors, including Outside

appropriately discussed.

Directors and Outside Audit & Supervisory Board Members by

We will continue to push ahead with improvement measures toquestionnaire, based on seven evaluation perspectives regarding theaddress the issues highlighted based on the evaluation. Meanwhile, foraims of the Board of Directors.

the purpose of further enhancing effectiveness, we will establish rules• Analyze the survey results and confirm the status of improvement,

Hiroyuki Yanagi

Yoshihiro Hidaka

Marine/Human
Resources

Katsuaki Watanabe

Motorcycle/
Advanced
Technology

Toshizumi Kato

Solution

Katsuhito Yamaji

Manufacturing/
Procurement

Makoto Shimamoto

VehicleDevelopment

Tatsumi Okawa(New)

Planning/
Financeon how a third party is to be involved in the evaluation process andcompared with the previous year’s evaluation.

implement the evaluation on a regular basis.

Remuneration for Directors and Audit & Supervisory Board Members
Remuneration for Directors and Audit & Supervisory Board Members for fiscal 2017 is as follows:(Millions of yen)Compensation linked to performanceBasiccompensation

Stockcompensation
plan

Total

Directors’
bonusesCompensation linked toeach Director’s individual
performance

326

335

32

54

749

Of which, Outside Directors (4)

(33)

—

—

—

(33)

Audit & Supervisory Board Members (5)

77

—

—

—

77

Of which, Audit & Supervisory Board
Members (Outside) (3)

(18)

—

—

—

(18)

404

335

32

54

827

Officer classification

Directors (15)

Total

Notes: 1. The annual amount of remuneration for Directors excluding Directors’ bonuses shall be ¥540 million or less (including ¥50 million or less for Outside Directors), and the annual amount of
remuneration for Audit & Supervisory Board Members shall be ¥90 million or less.
2. The above Directors’ bonuses in Compensation linked to performance are the amount scheduled to be paid.
3. The above figures include 2 Directors and 1 Audit & Supervisory Board Member who retired at the conclusion of the 82nd Ordinary General Meeting of Shareholders held on March 23, 2017.
4. In addition to the remuneration listed above, ¥85 million was paid as salaries to Directors who serve concurrently as employees.

48

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Takuya Nakata
OutsideAtsushi Niimi
Outside

Genichi Tamatsuka
OutsideTakehiro Kamigama
Outside (New)Yamaha Motor Co., Ltd. ⎜ Annual Report 201749

Directors and Audit & Supervisory Board Members
As of April 1, 2018

Chairman and Representative Director

Hiroyuki Yanagi

April 1978:
Joined the Company
March 2009:
Senior Executive Officer, Chief General Manager of Manufacturing Center
November 2009: Senior Executive Officer, Senior General Manager of MC Business Section,
MC Business Operations
March 2010:
President, Chief Executive Officer and Representative Director
June 2011:
Director of Yamaha Corporation (to present)
January 2012: President, Chief Executive Officer and Representative Director,
Chief General Manager of MC Business Operations
January 2015: President, Chief Executive Officer and Representative Director
January 2018: Chairman and Representative Director (to present)

President, Chief Executive Officer
and Representative Director

Executive Vice President
and Representative Director

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 ofCorporate Planning & Finance Center
January 2018: President, Chief Executive Officer and Representative Director(to present)

April 1982: Joined the Company
March 2011: Senior Executive Officer and Chief General Manager of
Manufacturing Center
April 2013: Senior Executive Officer, Executive General Manager of 1st
Business Unit, MC Business Operations and Chief General
Manager of Manufacturing Center
January 2015: Senior Executive Officer and Director, Chief General Manager of
MC Business Operations and Executive General Manager of 1st
Business Unit, MC Business Operations
March 2016: Managing Executive Officer and Director, Chief General Manager
of MC Business Operations (to present)

Yoshihiro Hidaka

Director
Managing Executive Officer

Director
Senior Executive Officer

June 1986: Joined the Company
January 2011: Director and President of Yamaha Motor Corporation, U.S.A.
March 2012: Senior Executive Officer
March 2014: Senior Executive Officer and Director
January 2016: Senior Executive Officer and Director, Chief General Manager of Vehicle &Solution Business Operations
March 2016: Managing Executive Officer and Director, Chief General Manager of Vehicle &Solution Business Operations (to present)

April 1982: Joined the Company
April 2003: Director of Yamaha Motor da Amazonia Ltda.
March 2015: Senior Executive Officer, Chief General Manager of Manufacturing Center
March 2017: Senior Executive Officer and Director, Chief General Manager of
Manufacturing Center (to present)

Toshizumi Kato

Director (Outside)

Director (Outside)

Director (Outside)

Director (Outside)

April 1981:

April 1971: Joined Toyota Motor Co., Ltd.
(currently Toyota Motor Corporation)
June 2000: Director of Toyota Motor Corporation
June 2003: Managing Officer of Toyota Motor Corporation
June 2004: Director of Toyota Motor Corporation
June 2005: Senior Managing Director of Toyota Motor
Corporation
June 2009: Executive Vice President, Member of the Board of
Toyota Motor Corporation
Outside Member of the Audit & Supervisory Board of
JTEKT Corporation
June 2013: Chairman & Representative Director of JTEKTCorporation
March 2015: Outside Director (to present)
June 2016: Advisor of JTEKT Corporation (to present)
June 2016: Outside Director of NIPPON SHARYO, LTD.
(to present)

April 1985:
Joined ASAHI GLASS CO., LTD.
July 1998:
Joined IBM Japan, Ltd.
December 1998: Joined FAST RETAILING CO., LTD.
November 2002: President and Representative Director, and COO of
FAST RETAILING CO., LTD.
September 2005: Founder and Representative Director and COO of
Revamp Corporation
November 2010: Advisor of Lawson, Inc.
March 2011:
Senior Executive Vice President and COO of
Lawson, Inc.
May 2012:
Member of the Board, Senior Executive Vice
President and COO of Lawson, Inc.
May 2013:
Member of the Board, Representative Executive
Officer and COO of Lawson, Inc.
May 2014:
President and CEO, Representative Director of
Lawson, Inc.
June 2015:
Outside Director of AIG Japan Holdings KK(to present)
June 2016:
Chairman and CEO, Representative Director of
Lawson, Inc.
March 2017:
Chairman of the Board, Representative Director of
Lawson, Inc.
March 2017:
Outside Director (to present)
June 2017:
President and CEO of Hearts United Group Co., Ltd.
(to present)
September 2017: Outside Director of a dot co., ltd (to present)
October 2017: Outside Director of Raksul, Inc. (to present)

April 1981:

Standing Audit & Supervisory
Board Member

Standing Audit & Supervisory
Board Member

Audit & Supervisory Board
Member (Outside)

Audit & Supervisory Board
Member (Outside)

April 1980: Joined the Company
January 2011: Director and President of Yamaha Motor
Manufacturing Corporation of America
January 2015: Chief General Manager in charge ofplanning, Corporate Planning Division,
Corporate Planning & Finance Center
March 2015: Audit & Supervisory Board Member(to present)

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 ofplanning, Audit & Supervisory Board
Member’s Office
March 2015:
Audit & Supervisory Board Member(to present)

April 1983:
October 1986:

October 1979:

Takuya Nakata

Katsuaki Watanabe

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 Director of
Yamaha Corporation (to present)
March 2014: Outside Director (to present)

50

Director
Senior Executive Officer

Director
Senior Executive Officer

April 1983: Joined the Company
March 2015: Senior Executive Officer, Chief General Manager of PF Model Unit and Senior
General Manager of PF Model Development Section, PF Model Unit
January 2017: Senior Executive Officer, Chief General Manager of Technology Center and Chief
General Manager of PF Model Unit
March 2017: Senior Executive Officer and Director, Chief General Manager of Technology
Center and Chief General Manager of PF Model Unit (to present)

April 1986: Joined the Company
January 2015: Director and President of Yamaha Motor Corporation, U.S.A.
March 2018: Senior Executive Officer and Director, Chief General Manager
of Corporate Planning & Finance Center (to present)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Genichi Tamatsuka

Takehiro Kamigama
June 2002:
June 2003:
June 2004:
June 2006:
June 2016:
June 2017:
March 2018:

Joined Tokyo Denki Kagaku Kogyo K.K.
(currently TDK Corporation)
Corporate Officer of TDK Corporation
Senior Vice President of TDK Corporation
Director & Executive Vice President of TDK
Corporation
President & Representative Director of TDK
Corporation
Chairman & Representative Director of TDK
Corporation (to present)
Outside Director of OMRON Corporation(to present)
Outside Director (to present)

Katsuhito Yamaji

Hiroshi Ito

Makoto Shimamoto

Atsushi Niimi

Tatsumi Okawa

Kenji Hironaga

Tomomi Yatsu

Masahiko Ikaga

Joined Tokyo Electron Limited
Joined Tohmatsu Awoki & Sanwa(currently Deloitte Touche Tohmatsu LLC)
September 1990: Registered as a certified public accountant
November 2001: Registered as an attorney
Joined New Tokyo Law Office (currently Bingham
Sakai Mimura Aizawa-Foreign Law Joint Enterprise)
April 2007:
Partner of Bingham Sakai Mimura Aizawa-Foreign
Law Joint EnterpriseJune 2009:
Outside Audit & Supervisory Board Member of
CALBEE, Inc.
June 2010:
Outside Audit & Supervisory Board Member of
Taiko Pharmaceutical Co., Ltd.
March 2012:
Outside Statutory Auditor of Kokuyo Co., Ltd.
March 2015:
Outside Audit & Supervisory Board Member(to present)
April 2015:
Partner of TMI Associates (to present)
June 2016:
Outside Executive Director of SMBC Nikko
Securities Inc. (to present)
June 2017:
Outside Auditor of IHI Corporation (to present)

Joined Tohmatsu Awoki & Co.
(currently Deloitte Touche Tohmatsu LLC)
Registered as a certified public accountant
Director of Tohmatsu Touche Ross Consulting Co., Ltd.
(currently ABeam Consulting Ltd.)May 1990:
Partner of Tohmatsu Awoki & Co.
April 1993:
Director of Tohmatsu Consulting Co., Ltd.
(currently Deloitte Tohmatsu Consulting LLC)
March 2000:
Representative Director and President ofTohmatsu Consulting Co., Ltd.
October 2010: Chairman and Director of Tohmatsu Consulting Co., Ltd.
November 2013: CSO of Deloitte Touche Tohmatsu LLC
April 2016:
Established Masahiko Ikaga Certified Public
Accounting Office
May 2016:
Representative Director of PrajnaLink Co., Ltd.
(to present)
June 2016:
External Audit & Supervisory Board Member ofMorinaga Milk Industry Co., Ltd. (to present)
March 2017:
Outside Director (to present)
June 2017:
Outside Director of RYOBI LIMITED (to present)
March 1988:
May 1988:

MC: Motorcycle
PF: PlatformYamaha Motor Co., Ltd. ⎜ Annual Report 201751

Executive Officers

Yamaha Motor Group’s Initiatives to Address Social Issues

As of April 1, 2018

Executive Officers

Based on our corporate mission of being a Kando Creating Company,

President and Chief Executive Officer

Yoshihiro Hidaka

Executive Vice President

Katsuaki Watanabe

Managing Executive Officer

Toshizumi Kato

Senior Executive Officer

Katsuhito Yamaji

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Chief General Manager of Mobility

Chief General Manager of Corporate

Technology Center

Planning & Finance Center

Chairman of Yamaha Motor
Europe N.V.

Chief General Manager of Advanced
Technology Center, Senior General
Manager of New Venture Business
Development Section, Advanced
Technology Center, and Chief General
Manager of Solution Business
Operations

Makoto Shimamoto

Tatsumi Okawa

Yoichiro Kojima

Hiroaki Fujita

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Chief General Manager ofProcurement Center

Chief General Manager of Human
Resources & General Affairs Center

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

Chief General Manager of Marine Business
Operations, and Executive General Manager ofMarine Business Unit, Marine Business Operations

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Chief General Manager ofPowertrain Unit

Chief General Manager of
Design Center

Deputy Chief General Manager ofPowertrain Unit, Chief General
Manager in charge of Automotive
Business, and Chief General
Manager in charge of NLV Business
Development

Chief General Manager of
Manufacturing Center

President of PT. Yamaha Indonesia
Motor Manufacturing

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Chief General Manager of
CS Center

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

President of Yamaha Motor
Europe N.V.

COO of PT. Yamaha Indonesia
Motor Manufacturing

Executive General Manager of Marine
Engine Business Unit, Marine Business
Operations

Masahiro Inoue

Yoshitaka Noda

Yasuo Tanaka

Junzo Saitoh

Akihiro Nagaya

Motofumi Shitara

Kazuhiro Kuwata

Heiji Maruyama

Eric de Seynes

the Yamaha Motor Group aims to contribute to sustainable social

December 2017, we registered as a participating company in the United

development through our business activities while carrying out thoseNations Global Compact, which sets 10 principles for voluntary action in

activities in harmony with society and the environment.

the areas of human rights, labor, the environment, and anti-corruption.

We are experiencing a time of major transformation. Two notable

Along with our environmental, social, and governance (ESG)

events that occurred in 2015 were the signing of the Paris Agreement

initiatives, we will focus on global social issues, and in particular thethat seeks to stop global warming, and a United Nations summit that

SDGs that are closely tied to our wide-ranging business activities, andadopted the 2030 Agenda for Sustainable Development, which includes

demonstrate our strengths to solve these issues. To this end, we are

Sustainable Development Goals (SDGs) that set common international

designating these as important issues for priority action (materiality).

objectives for sustainable development to be achieved by 2030.

Hirofumi Usui

Satohiko Matsuyama

Dyonisius Beti

Minoru Morimoto

Basic Policies of CSR

Toshihiro Nozue
The Yamaha Motor Group strives to contribute to the sustainable
development of society through our business activities based on ourCustomers

corporate philosophy and to always abide by the letter and spirit ofdomestic and international laws and regulations. We are dedicated to

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Takeo Noda

earning the trust of the global community, and we place great value on

Deputy Chief General Manager of
Manufacturing Center, and Senior
General Manager of Engine
Manufacturing Section,
Manufacturing Center

Executive General Manager of Robotics Business Unit, Solution Business
Operations, Senior General Manager of Surface Mount Technology
Section, Robotics Business Unit, Solution Business Operations, andGeneral Manager of Quality Assurance Division, Robotics Business Unit,
Solution Business Operations

President of Yamaha Motor do Brasil
Ltda., and President of Yamaha
Motor da Amazonia Ltda.

Deputy Chief General Manager ofCorporate Planning & FinanceCentercommunicating with all stakeholders.

Satoshi Hirose

As part of our effort to address these important social issues, inHiroyuki Ota

Itaru Otani

We expect all of our business partners to share our principles andShareholders and Investors

Employees

to act in accordance.
Business Partners

Executive Officer

Executive Officer

Executive Officer

Executive General Manager of BoatBusiness Unit, Marine Business
Operations

Chief General Manager of PF Model
Unit and Senior General Manager of
PF Model Development Section, PF
Model Unit

Chief General Manager of Motorcycle
Business Operations, and General
Manager of New Value Business
Development Division, Motorcycle
Business Operations

Toshiaki Ibata

52

Toyoshi Nishida

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Takuya Kinoshita
The Community

NLV: New Land Vehicle
CS: Customer Service
PF: Platform

The Environment

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

53

The Environment

Striving to harmonize with the environment for sustainable social development
Based on the Yamaha Motor Group Environmental Plan 2020, formulated in 2010, the Yamaha Motor Group aims to be a company

The Yamaha Motor Group Organizational Structure forEnvironmental Planning and Promotion

participating companies received certification in 2017. We have also
updated our certification to the 2015 standards for ISO 14001.
At the same time, we are carrying out risk-based environmental

that fulfills its corporate social responsibilities by striving to maintain harmony with the environment, which serves as the stage formanagement for companies with relatively little environmental risk by

our products.

introducing in-house certification systems used by third-party

Yamaha Motor Group Environmental Plan 2020

Board of Directors
President
Environment Committee

institutions. These initiatives, together with the construction of our
proprietary G-YECOS information network system, will lead to thoroughAction Areas

Eco Products

Eco Operations

Eco Management

Eco Mind

Raise environmental attractivenessthrough product development fromthe perspectives of the environmentand customers

Environmental preservation throughglobal business activities that aim tominimize environmental impact

Priority Actions

In the Eco Products area, implement the Frontier 2020 Groupwide long-term vision• Reduce risks from environmentally hazardous substances• Implement green procurement

Identify environmentally hazardous substances andsupport the use of alternatives

Reduce emissions of greenhouse gases

Reduce CO2 emissions per unit of sales by 1%(annual average)• Implement the 3 R’s through the 3 E’s• Reduce water consumption(3 E’s: Easy to make, Easy to repair, Easy to disassemble)(3 R’s: Reduce, Reuse, Recycle)

Environmental management throughreinforcement of Group environmental
governance systems

Environmental contributions throughdiverse initiatives that seek to createa sustainable environment

2020 Targets

Create and operate Groupwide environmental
management systems
Change attitudes through continuous
environmental education

Have all Group employees actively undertake environmental
measures with a high awareness of targets• Improve sensory environments (odors, noise, etc.)• Communicate with local communities• Preserve ecosystems

Be trusted and respected as a corporate citizen
by local communities

Proactively disclose information from anenvironmental perspective

Well received by the community as anenvironmentally advanced company

Secretariat for Eco-lifeand our environmental governance even stronger by sharing issues at
Group companies with the entire Group.

Consolidated Subsidiaries

Activities to Identify and Reduce Greenhouse Gas Emissions
gas emissions associated with our corporate activities at three levels:
direct greenhouse gas emissions from the combustion of fuel used at

Link Groupwide operations with local activities

Secretariat for Group EMS

We are also working to make our management systems more efficient

The Yamaha Motor Group is working to identify and reduce greenhouse
Support the effective use and recyclingof limited resources

Yamaha Motor Function Section

legal and regulatory compliance and improved environmental performance.

factories (Scope 1); indirect emissions including electrical power usedby factories and offices (Scope 2); and other emissions (Scope 3).

Working group on reduction of CO2
from product logistics

Japan

Companies

Working group on reduction of CO2
from R&D activities

North America

Companies

EuropeCompanies

Oceania

Companies

Asia

Companies

Central & South America

Companies

China

Companies

Working group on reduction of CO2
from inter-factory logistics operations
Working group on energy saving
Working group on waste reduction

We will also work to more precisely measure direct and indirectemissions in each location, and to further reduce emissions at all

Working group on reduction of paintVOCsfactories and offices.

Greenhouse Gas Emission Volumes

Organizational Structure for Promoting Environmental

Strengthening Environmental Governance Through Unified

Management

Certification

The Yamaha Motor Group has established an Environment Committee,

In accordance with our Basic Policies of CSR, the Yamaha Motor Group isbusinesses’ use of electricity, heat, and steam

chaired by the Director, as the central organization responsible for the

pursuing global environmental ISO 14001 unified certification, primarily at

401 thousand t-CO

2

Group’s environmental activities in Japan and overseas. The committee

manufacturing companies in Japan, Asia, Europe, the United States, andScope 1deliberates on policies and visions for the future concerning

South America, through “eco management,” which is one of the areas ofGreenhouse gases emitted directly by businesses

environmental initiatives, medium- and long-term environmental

focus of the Yamaha Motor Group Environmental Plan 2020. All the 44

Scope 2
Greenhouse gases emitted fromPurchased products and services
3,556 thousand t-CO2
Capital goods 89 thousand t-CO2
Energy-related activities 59 thousand t-CO2
Transport and delivery (upstream) 262 thousand t-CO2
Waste materials emitted by businesses 16 thousand t-CO2
Business trips 28 thousand t-CO2
Employees’ commuting 8 thousand t-CO2
Processing of products sold 6 thousand t-CO2
Disposal of products sold 58 thousand t-CO2

151 thousand t-CO

2

policies, strategic investment proposals relating to environmental
preservation, environmental monitoring topics and responses to issues,
Scope 3and other key issues relating to environmental management. The

Greenhouse gas emissions other thanpolicies and activities discussed are reported to the Board of Directors

Use of products sold
25,753 thousand t-CO2

Scope 1 or Scope 2

as necessary.

29,835 thousand t-CO

2

ISO14001 certificate award ceremony and activity report for Yamaha Motor Philippines, Inc. at Yamaha
Motor headquarters

54

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

55

The Environment

CO2 Emissions at the Yamaha Motor Group

Measures to Reduce Waste and Conserve Resources at the

Yamaha Motor Group CO2 Emissions

As a manufacturer of motorcycles and other transportation machinery, theYamaha Motor Group considers the reduction of greenhouse gas emissions to be
the most critical environmental issue facing the world today. We are targeting an

Per unit of sales(From 2012 level)(%)

CO2 emissions(1,000t-CO2) 100%
1,200

100

85%

annual 1% reduction in CO2 emissions per unit of sales as a common goal for

74%

900

the entire Group, and are working to reduce emissions in all of our business
638

activities including product development and manufacturing.

70%

65%
634

597

600

80

63%
60

561

552

553
40

300

20

a balance between economic and environmental considerations (CO2 reductions).
0
2012
2013
(Base year)

technologies developed in Japan to Group companies at home and overseas.

553 thousand

2014

2015

2016

0

2017

CO2 emissions The curve shows values based on 100 for2012 results (per unit of sales).

t-CO2

100%

100%

Natural gas

24

24
20

20

80
60

roadbeds. As a result, we have maintained our direct and indirect landfill record

40
10of “zero tons” (a 100% recycling rate).

20
0

from 2016. Domestic and overseas Group companies have been working to2014

reduce their volumes of waste by thoroughly separating types of waste materials,
introducing returnable packaging materials, and using longer-lasting cutting

2015

Waste generation (1,000t)

2016

2017

0

Recycling ratio (%)*Aggregate industrial waste:
Yamaha Motor’s aggregate volume of industrial waste emitted(Including both waste and materials with value).

TOPICS Improved packaging for outboard motor repair parts wins WorldStar award
WorldStar Competition 2017, held by the World Packaging Organization. The award was given for

introducing equipment that can “visualize” electric power and using this toCity gas 13A

5.55%

analyze and reduce our use of electricity. Other measures being systematicallyintroduced include the installation of equipment to conserve electric power at

improvements made to increase the stability of the product and to reduce operational and material costs.

Electricity
purchased

Compared with the conventional packing method in which materials were bonded, this packaging

73.49%

simplifies materials by fixing the center of gravity and sharp shape at one point. It also uses paper tubes

factories and the introduction of LED lighting in offices.

made of scrap wood as the material to bear the load. This has reduced operational and material costs by
10% and made it easier to package and dispose of the packaging, while contributing to reduced material

GJ (electricity: 7.58 million GJ)

weight and lower CO2 emissions.

Measuring and Reducing Water Resources

Yamaha Motor Group Water Intake and Recovered Water Used

TOPICS Yamaha engineer on Team KUROSHIO industrial, academic, and government collaboration(Million m3)
7.5

Yamaha Motor is participating in Team KUROSHIO, a collaborative project bringing

We are working to reduce our consumption of water resources and have set the
support of effective use and recycling of limited resources as our target for 2020.

6.0

We will continue to strive to measure our global use of water resources andreduce the amount of water intake through promoting the reuse of coolant water
and water collection (rainwater and other sources) at factories.
m3

21“Packaging solution for Yamaha outboard motor repair parts” received a WorldStar award at the11.58%

Japan and elsewhere in Asia. To reduce our consumption of electricity, we are

4.45 million(%)

thousand tons (aggregate for 59 locations).

Kerosene
Gasoline 0.02% Light oil 1.23%
Heavy oil A 0.98%
2.16%
LPG 4.97%
0.01%

which 7.58 million GJ or 74%, was electricity. Of this, roughly 87% was used in

Water intake:

100%

100

recycling as raw materials. We also subject oil and some plastics to a thermal
recycling process to create materials that can be used as combustion improvers.

100%

Hot water

The Yamaha Motor Group’s energy input in 2017 totaled 10.31 million GJ, of

10.31 million

waste.* We separate metal, plastic, foundry sand, and other waste for reuse and30

fluids and oils. The Yamaha Motor Group’s volume of waste in 2017 was 28

Yamaha Motor Group Energy Input

Energy Input at the Yamaha Motor Group

Total energy input:(1,000t)

In addition, the Yamaha Motor Group began tracking its volume of waste

We are also promoting the efficient use of energy by introducing energy-saving

CO2 emissions:

In 2017, Yamaha Motor generated a total of 20.8 thousand tons of industrial

In addition, we use post-combustion residue as a raw material in cement andSince 2013, we have been implementing global energy-saving activities atall of our manufacturing sites including those overseas, with the aim of achieving

Yamaha Motor’s Waste Generation andRecycling Ratio at Manufacturing Stage

Manufacturing Stage

together Japanese industry, academia, and government in pursuit of the Shell Ocean
Discovery XPRIZE, an international competition to explore the seabed at 4,000m

5.56
4.98

4.74

depths run by the XPRIZE Foundation of the United States.

4.45

4.5

Yamaha Motor has sent one engineer with the aim of contributing to the team by
3.0
1.5
0

2.48
0.62
2014

Water intake

0.85
2015

providing technical support based on its expertise in marine products and unmannedsystems. We expect this activity to raise the level of marine science technologies,

0.49
2016

contribute to resource development, and help protect the earth’s environment.
2017

Recovered water used

Team KUROSHIO has passed through the first round of competition, the Technology Readiness Test, and will advance to the second andfinal round scheduled for October 2018. The final results are scheduled to be announced in December 2018.

*The increase in the volume of recovered water used in 2017 includes the effectof locations that became able to measure recovered water.

56

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201757

Society

Coexistence and mutual prosperity of the Company and local communities

Roughly 10,000 people participated in this year’s event, with a record

operations. Generators

high number of helmets donated.

and all water pumps in

The Yamaha Motor Group operates in locations around the world and our business activities help support local communities. Our
Community Issues

to dealers in the region.

relationship through which the Company and local communities can coexist and mutually prosper, and to achieve this, we place great

Hurricane relief at Yamaha Motor Corporation, U.S.A. (YMUS)

Moreover, arrangements

importance on maintaining and enhancing a relationship of trust through daily communication with stakeholders in those communities.

In the spirit and passion of One Yamaha, YMUS collected and delivered

were made to donate

various items as emergency relief and support to people affected byhigh-pressure washers and additional pumps to areas requiring

Hurricane Harvey, which struck the state of Texas in August 2017. The

assistance. Two truckloads of food and sanitary goods were also

Local Issues

company donated aluminum boats and marine engines that were useddelivered to people in need.

to rescue people stranded on their rooftops, and asked dealers in the

Important Areas of Activities Contributing to Society
Global Issues
Key Themes

Developing Future Leaders

Activities• Promoting mental/emotional andphysical health through sports• Promoting creativity throughengineering, manufacturing, andmarketing

Environmental Conservation

Improving Traffic Safety

Community Issues• Environmental education for local
communities• Respecting biodiversity• Providing traffic safety education
to the community• Raising awareness• Supporting the community with
Yamaha Motor’s products, humanresources, and know-how

region to provide Yamaha watercraft to assist with search and rescue

Showing society the value of challenge through sports

Developing Future Leaders

environmental campaign

Yamaha Motor Taiwan (YMT) wins sports promotion award* forto reduce the damage

fifth straight year

from these disasters by

In September 2017, YMT received the silver medal in the sports

planting trees andpromotion award given by Taiwan’s Ministry of Education. This was thepreserving upstream

fifth consecutive year in which the company has received an award, andenvironments to maintainthe second in a row to win a silver medal.

the mutual relationship

Based on its social contribution policy, YMT has held a Yamaha Cup

between living things and their environment. The building of sand-control

youth soccer competition

dams as part of this campaign began in 2016 at the Kaeng Krachan

every year since 2009 to

National Park and expanded to the Tublarn National Park in 2017.

cultivate healthy young

Since its founding, Yamaha Motor has blazed new trails driven by a spirit of challenge, which is engrained in our corporate culture and is
deeply embedded in the spirit of each Group employee.
Activities promoting sports are an easy-to-understand way to convey this approach to challenges, and through these activities wehope to send a message to society conveying the joy of having dreams and the value of facing challenges.
RacingYamaha Motor Foundation for Sports

Racing competitions withThis foundation wasstrict rules and uniform

established as one of theconditions enable people toactivities to commemorate

ascertain their own levels

the 50th anniversary ofand provide venues for

Yamaha Motor’s founding,people, and in 2017,

Improving Traffic Safety

developing the latest

with a mission of supporting

roughly 5,000 youths

Yamaha Motor Vietnam (YMVN) donates over 30,000 helmets totechnologies. They also

people who are pursuingcompeted as 313

elementary school students

continue to provide excitement to people around the world as a symbol

their dreams in sport.

preliminary teams. This is

YMVN held a Kid Donation 2017 event in Quang Nam and Vung Tau in

one of Taiwan’s largest youth soccer events.

October 2017 with the participation of Vietnam’s National Traffic Safety*Sports promotion award: Presented by Taiwan’s Ministry of Education to organizations that promote sports.

Committee and other government authorities, and donated 31,300
helmets to 38 elementary

58

inventory were also sent

products also play a role in enriching the lives of people around the world. We recognize the importance of maintaining a sustainable

Environmental Conservation

schools. Since its launch

Building sand-control dam as part of United Nationsin 2003, this activity has

environmental campaign

donated 186,895 helmets

Thailand frequently experiences flooding and droughts that impact

to 2,200 elementary

people’s daily lives and the economy. Thai Yamaha Motor and Yamaha

schools with the aim ofMotor Electronics Thailand have participated in a United Nations

improving child safety.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017of challenge.

YAMAHA Sailing TeamJapan Rugby Top League

YAMAHA Sailing Team ‘Revs’

Yamaha Motor Jubilo,

is aiming to place highly in

Yamaha Motor’s rugby team,major domestic andcompetes at the highest levelinternational competitions,in Japan’s top domestic

including World Sailing’s

corporate league, the Japan

World Cup Series and other

Rugby Top League.

world championships.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201759

Financial Highlights
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31

Net sales rose 11.1% from the previous year, to ¥1,670.1 billion, due to strong motorcycle sales in ASEAN
and the effect of yen depreciation.

Motorcycle sales by market

Motorcycle unit sales by market

Marine product sales by market(Billion ¥)(Thousand units)(Billion ¥)

1,200

8,000

400

978

928

POINT

900

150

142

1,045

1,033
149

930

136

6,000

120

6,014
590

587

Record profit was achieved at all levels, including a 37.9% increase in operating income, to ¥149.8
600

billion, due to sales growth and improved profitability from cost reductions.

612

610

629

Sales by product segment

Sales by market(Year ended December 31, 2017)(Billion ¥)(Billion ¥)Industrial machinery and robots

1,800

Other products 4.9%

4.0%

1,521

Power products

1,410

9.1%

80
32
127

1,350
Marine products

19.4%

86
39
142

Motorcycles

62.6%

276

243

73
47
169

1,800

1,670

1,631

82
68
152

1,503
76
47
152

Percentage of sales by market(Year ended December 31, 2017)

1,033

2013

2014

128

139

72
46

56
47

53
46

2015

2016

2017

0

1,465

1,339

0

2013

2014

2015

2016

0

2017

Motorcycles

Marine products

Power products

Industrial machinery and robots

148

163

166

164

170

2013

2014

2015

2016

2017

Japan

191
79
123

209
89
110

208
77
110

199
70
103

2013

2014

2015

2016

2017

0

41

181

172

145

125

27

27

28

27

2015

2016

2017

North America

Japan

North America

EuropeAsia

EuropeAsia

OthersOthersCash and cash equivalents at the end of
the year

Net assets and % of net income toshareholders’ equity(%)(Billion ¥)(%)(Billion ¥)

12

800

28

200

21

150

665

1,319

1,147

9

575

600
503

532

156

17.6

137

4.6

4.2

6

108

4.8

16.2

400
12.7

400

3

200

0

0

136

120

423
5.6

196

2014

Japan

800

43

26

Asia

1,305

17

2013

North America(Billion ¥)Overseas

39

41

42

4,558

1,600

1,200

Other products

Overseas

4,307

162
76
109

7.4

10.2%

4,286

1,416

450

Japan

4,819

100

Others

1,500

43
12

39
17

Europe

1,310

1,045

930

1,358

47
16

44
19

324
297

Japan

Total assets and return on assets
1,263

978

136

1,350

900

928

116
53
46

1,410

297

452

243

461

200
5,077

89
50
37

1,503

324

309

524

5,390

2,000

1,670

1,631
1,521

900

450

0

5,154

276

37

300

Percentage of sales by product segment

5,218

300

4,000

672

580

309

5,799

12.3

14

100

7

50

0

0

12.6

89.8%
0

Operating income and operating income
marginProfit attributable to owners of parent
and ratio of profit attributable to ownersof parent to net sales

Net income per share(Billion ¥)(Billion ¥)

(%)

(¥)

8

320

(%)

200

9.0
8.0

150

7.2

149.8

130.3
5.7

100
3.9

10.0

120

90

6

5.0

87.2

60
3.1

4.5

60.0

80

0

0

0

0

0

60

2013

2014

2015

2014

Cash used in investing activities

Free cash flows(Billion ¥)

160

80

72

2015

120

120

2016

2017

97

68

73

63
60

53

60
21

47

94

2016

2017

2013

2014

2015

2016

Operating income

Profit attributable to owners of parent

Net income per share—basic

Operating income margin (%)

Ratio of profit attributable to owners ofparent to net sales (%)

Net income per share—diluted

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

2013

(Billion ¥)

67

40
2017

2017

(Billion ¥)

80
2

2016

2016

4

30

2015

2015

Cash provided by operating activities

126 126

3.7

2.5

2014

2014

160

50

2013

2013

Net assets

126

181 181

44.1

55.1

2017

143
172 172

4

2016

Return on assets (%)

240

63.2
4.2

2015

% of net income to shareholders’ equity291

196 196

68.5

108.6

2014

Total assets

101.6
6.1
7.5

2013

28

40

0

20

–60

–40

2017
0

2013

2014

2015

2016

2017

0

2013

2014

2015

2016

2017

–120

2013

2014

2015

2016

2017

Note: Net income per share—diluted for fiscal 2017 is
not listed as there were no potential shares withdilutive effect.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201761

Five-Year Summary

Management Discussion and Analysis of Operations

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2013, 2014, 2015, 2016 and 2017

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
Ordinary income
Profit attributable to owners of parent
Net cash provided by operating activities
Net cash used in investing activities
Free cash flows
Net cash provided by (used in) financing activities
Capital expenditures
Depreciation expenses
At year-end:
Total assets
Net assets
Interest-bearing debt

% change

2013

2014

2015

2016

2017

¥1,410,472¥1,521,207¥1,631,158¥1,502,834¥1,670,090

11.1 %

928,203
243,362
126,722
32,261
79,922
318,765
55,13760,09244,057
66,976(62,679)
4,296
3,620
56,80036,407

977,580
276,367
142,204
38,942
86,113372,849
87,24997,27968,452
93,618(72,470)
21,148(8,908)65,871
37,667

1,032,560
309,337
169,495
46,501
73,262436,525
130,329
125,23160,02328,475(68,475)(40,000)
6,845
64,06444,324930,112297,216
152,310
46,871
76,322402,660
108,594
102,073
63,153
143,163(46,541)
96,622(67,627)
61,33042,434

1,045,211
323,838
151,622
67,571
81,845
458,629
149,782
154,826
101,603
126,342(53,194)
73,147(52,830)
56,53245,457

12.4
9.0
(0.5)
44.2
7.2
13.9
37.9
51.7
60.9
(11.7)
14.3(24.3)(21.9)(7.8)
7.1¥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

7.4 %
15.6
(3.0)

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

Ratios:Operating income margin (%)
Return on equity (%)
Equity ratio (%)
Price/earnings ratio (times)
Debt/equity ratio (%)

2017/2016

Yen

Per share amounts:
Net income—basic
Net income—diluted
Net assets
Cash dividends¥

126.20126.201,099.84
26.00¥

196.06
196.04
1,316.58
40.00¥

171.89171.88
1,405.35
44.00

180.84180.83
1,529.53
60.00¥

290.93—
1,783.35
88.00

Millions of yen, except per share data

Share performance (at year-end):
Price per share (yen)Market capitalization

During the fiscal year ended December 31, 2017 (fiscal 2017), theMotorcycles

global economy continued to recover at a moderate pace amid a sense

Net sales rose ¥115.1 billion, or 12.4% year on year, to ¥1,045.2

of uncertainty over the future caused by geopolitical risks. In developed

billion, and operating income rose ¥32.9 billion, or 91.4% year on year,

markets, the economic recovery continued in Europe and the United

to ¥68.8 billion.

States against a backdrop of expanding personal consumption andUnit sales increased in countries such as the Philippines, Thailand,

exports, and in emerging markets, domestic demand improved due to

Taiwan and Vietnam, and declined in developed markets, Indonesia andthe recovery of prices of resources. In addition, exchange rate trends

other countries, leading to unit sales of approximately 5.4 million acrossremained stable during the year.

the business as a whole, the largest year-on-year increase since 2011.

Against this backdrop, the Company’s consolidated net sales for the

As a result, net sales increased and operating income rose significantly

fiscal year under review rose ¥167.3 billion, or 11.1% year on year, todue to expanded sales of higher-priced products in ASEAN countries,¥1,670.1 billion, and the Company achieved its highest ever operating

Brazil and other emerging markets as well as the effects of costincome, ordinary income and profit attributable to owners of parent.

reductions.

Operating income rose ¥41.2 billion, or 37.9%, to ¥149.8 billion,

While maintaining increased profitability from platform models in

ordinary income rose ¥52.8 billion, or 51.7%, to ¥154.8 billion, and

ASEAN countries, the Company shall release models that will commandprofit attributable to owners of parent rose ¥38.5 billion, or 60.9%, toa strong presence in each market. In addition, in developed markets,¥101.6 billion.

the Company shall create new demand, while introducing models thatthat embodies Yamaha’s unique style.

60.9 %—
16.6
46.7

Factors Impacting Operating Income(Billion ¥)180

Impact of exchange rate
Impact of increased
sales

135

Operatingincome+30.8

Cost reductions

+11.9

+15.4

Impact of cost of
raw materials

–6.5

–4.3

Increase in SG&A
expenses, etc.

Increase in R&D expenses
including investment ingrowth strategies–6.0% change
90

¥

1,577
550,585¥2,442
852,683¥2,744
958,264¥

2,574
898,931¥

3,695
1,290,413

Persons

Other data (at year-end):
Number of shareholders
Number of employees

Sales Performance by Business Segment

leverage the unique characteristics of the Yamaha brand and marketing% change¥

Overview

29,47453,38230,416
52,662

34,21453,30643.6 %
43.5+149.8+149.845+108.6% change

42,031
53,15034,56653,579(17.8)%
0.8

0

2016

2017

Notes: • References to fiscal years are to 12-month periods commencing on January 1 and ending on December 31.
• 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 this change inpresentation method, the consolidated financial statements for the fiscal year ended December 31, 2016 and the fiscal year ended December 31, 2015 have been reclassified.

62

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201763

Management Discussion and Analysis of Operations

Marine Products

Other Products

seek to create strong connections with customers around the world.

Extraordinary Income and Loss

Net sales rose ¥26.6 billion, or 9.0% year on year, to ¥323.8 billion,

Net sales rose ¥5.5 billion, or 7.2% year on year, to ¥81.8 billion, andOur global R&D structure is at the core of these efforts, and we are

Net extraordinary income was negative in the amount of ¥2.5 billion,

and operating income rose ¥4.1 billion, or 7.4%, to ¥59.5 billion.

operating income rose ¥2.1 billion, or 41.0%, to ¥7.3 billion.

proactively pursuing R&D activities in close cooperation with affiliatedcompared with a negative ¥2.3 billion in the previous year. This wasUnit sales of electrically power-assisted bicycles increased incompanies in Japan and overseas. Furthermore, the seeds we havemainly from an impairment loss totaling ¥2.1 billion (compared withyear on year, while in the boat business, the Company is proceeding

Japan, and exports of E-kits (drive units for electrically power-assisted

sown while pursuing our growth strategies are taking shape in the form

¥1.4 billion in the previous year) and a loss on disposal of non-current

with the acquisition of a boat builder in Europe following acquisitions inbicycles) to Europe also rose significantly, leading to an increase inof businesses that are now developing. Medical equipment and drones,

assets of ¥1.4 billion (compared with ¥1.0 billion in the previous year)

the United States, and the number of units produced increased. As asales and profits.

for example, emerged through the exploration of new areas in theat the Company and overseas subsidiaries.

Unit sales of outboard motors and personal watercraft increased

result, net sales rose and operating income also increased, partly

Looking ahead, the Company shall further broaden its customer

because the model mix improved owing to expanded sales of largebase as it increases customers among elderly people, housewives withmodels of outboard motors in North America and Europe.

children, and students, while also focusing on developing new sports

In addition, the Company is creating a business model for the future

existing domains of robotics and industrial-use helicopters.

were ¥99.2 billion.

Income taxes increased ¥9.7 billion, or 38.1% year on year, to ¥35.2
billion.

markets.

Non-Operating Income and Expenses

aimed at becoming a system supplier, including acquiring boat peripheral

Income and Expenses

Net non-operating income was positive in the amount of ¥5.0 billion,

Profit Attributable to Non-Controlling Interests

R&D Expenses

compared with a negative ¥6.5 billion in the previous year. This included

Profit attributable to non-controlling interests includes interests owned

Power Products

The Yamaha Motor Group aims to be a “Kando Creating Company,”share of profit of entities accounted for using the equity method of ¥2.8

by non-controlling shareholders in Yamaha Motor Vietnam Co., Ltd.,Net sales declined ¥0.7 billion, or 0.5% year on year, to ¥151.6 billion,

and seeks to achieve this through continuous growth as an excellent

billion (compared with ¥0.8 billion in the previous year), interest income

Yamaha Motor Taiwan Co., Ltd., PT. Yamaha Indonesia Motorand operating loss was ¥1.5 billion, against operating income of ¥4.5

engineering, manufacturing and marketing enterprise with a prominentof ¥4.6 billion (compared with ¥4.3 billion in the previous year), interest

Manufacturing, Industria Colombiana de Motocicletas Yamaha S.A., andbillion in the fiscal year ended December 31, 2016.

presence in the global market, while also pursuing customers’ changing

expenses of ¥3.9 billion (compared with ¥4.6 billion in the previous

Thai Yamaha Motor Co., Ltd., and increased ¥4.4 billion, or 39.9% fromdreams. Our technological development uses original and innovativeyear), and foreign exchange losses of ¥1.7 billion (compared with ¥8.3

the previous year, to ¥15.5 billion.

ideas to provide pure enjoyment backed by reliability, together with abillion in the previous year).

device manufacturers in North America.

Recreational off-highway vehicle (ROV) inventory adjustments werecompleted and their effects led to a decline in sales and profits.
The Company shall implement new product strategies and expand
the market sectors in which it operates.

refined uniqueness that people find attractive. From this, our mission is
to create products and technologies that embody the unique style of
Yamaha.

Industrial Machinery and Robots

We continue to take on new challenges in the three areas of

R&D expenses and % of R&D expenses
to net sales

Net sales rose ¥20.7 billion, or 44.2% year on year, to ¥67.6 billion,“fulfilling lifestyles,” “enjoyment in personal mobility” and “innovative(Billion ¥)and operating income rose ¥8.1 billion, or 107.0%, to ¥15.6 billion.

technologies that harmonize with people, society and the Earth.” Our120

A new plant began operating in March and unit sales of surface

proactive R&D activities seek to offer original, innovative solutions thatmounters and industrial robots rose significantly, which led to anbuild on our optimal control technologies for power sources, vehicle

increase in sales and profits.

bodies, boats and airframes, and to create products that incorporate

In the surface mounter business, the Company shall provide

logic and emotion through core technologies for high performance, lightcustomers with more high-efficiency solutions, as it has developed aweight, fuel efficiency and compactness, with an emphasis on original

product lineup that covers products ranging from the ultra-high-speed

styling, shapes, materials and appeal to captivate our customers.

sector to the high-speed sector, which has a large market size.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Capital expenditures and depreciation
(%)

10.0

90

84

91

76

95

5.6

5.6

(Billion ¥)

80

99

66
7.5

6.3

5.4

60

64

61

57

57

5.9

60

5.0

40

30

2.5

20

0

0

36

38

2013

2014

44

42

2015

2016

45

By delivering products that embody the unique style of Yamaha, we
064

Income Taxes

Under these circumstances, the Group’s overall R&D expenses

2013

2014

2015

2016

2017

R&D expenses

Capital expenditures% of R&D expenses to net sales

Depreciation

2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201765

Management Discussion and Analysis of Operations

Capital Resources and Liquidity

Net cash used in investing activities during fiscal 2017 was ¥53.2

Assets, Liabilities and Total Net Assets

for new products and research and development in Japan and overseas,billion (compared with ¥46.5 billion used in the previous year), which

In the current Medium-Term Management Plan, the Company seeks to

Total assets as of December 31, 2017 increased ¥97.1 billion, fromand enhancement of production capacity in India. In the marine

included ¥64.4 billion used for purchase of property, plant and“create a stable financial foundation, and increase new growth investment

December 31, 2016, to ¥1,415.8 billion. Current assets rose ¥60.1

products business, investments of ¥12.1 billion were made for new

equipment and intangible assets (¥50.4 billion).

and stock dividends,” and sets the benchmark at a dividend payout ratio

billion, due to increases in cash and deposits, accounts receivable -products and for enhancing domestic production capacity. In the power

trade and inventories, and other factors. Non-current assets increased

products business, investments of ¥9.1 billion were made mainly forbillion (compared with ¥67.6 billion used in the previous year), which¥37.0 billion as a result of factors including an increase in long-term

new ROV products and for developing new products of multi-purpose

included cash dividends paid and the repayment of loans payable.

sales finance receivables.

engines resulting from technology transfer. In the industrial machinery

As a result of the activities discussed above, free cash flows forand robots business, investments of ¥0.4 billion were made mainly forfiscal 2017 were a positive ¥73.1 billion (compared with a ¥96.6 billion

Shareholders for year-end dividends. In addition, the Company’s Articles

new products. In the other products business, investments of ¥3.6

positive free cash flow in fiscal 2016). Interest-bearing debt at the endof Incorporation provides that the record date for the interim dividend

billion were made mainly for research and development of automobileof the fiscal year was ¥353.5 billion (a ¥10.9 billion decrease), andshall be June 30, and December 31 for the year-end dividend.

engines and electrically power-assisted bicycles.

cash and cash equivalents totaled ¥155.6 billion (a ¥20.1 billion

Total liabilities increased ¥7.2 billion to ¥750.6 billion, mainly froman increase in accounts payable - trade.
Total net assets increased ¥89.8 billion to ¥665.2 billion, which
included the recording of ¥101.6 billion of profit attributable to ownersof parent and ¥24.1 billion of cash dividends paid. As a result, theNet cash used in financing activities during fiscal 2017 was ¥52.8

for fiscal 2017. Added to the interim dividend (¥39 per share), this gaveincrease) in borrowings for sales finance.

a total dividend for the year of ¥88 per share.

Net cash provided by operating activities during fiscal 2017 was ¥126.3

fiscal year). The net debt-equity ratio was 0.3 times, compared with 0.4

billion (compared with ¥143.2 billion provided in the previous year).

Demand for Funds

times at the end of the previous fiscal year.

This mainly reflected cash provided from profit before income taxes of

The Group’s fund requirements are primarily to cover the cost of

Note 1: Equity ratio: (Shareholders’ equity + Accumulated other comprehensive income) /Total assets x 100 (%)¥152.3 billion (¥99.7 billion) and depreciation of ¥45.5 billion (¥42.4

procuring materials and parts used in product manufacturing and costs

billion), against cash used for a combined increase in notes andincurred in the manufacturing process, as well as purchasing costs foraccounts receivable - trade and sales finance receivables of ¥50.3

products and merchandise, SG&A expenses, working capital and capitalbillion (compared with an increase of ¥2.2 billion in the previous year).

expenditures.

Total asset turnover

Interest-bearing debt anddebt /equity ratio

(¥)

(%)

(Times)(Billion ¥)

80

2.0

480

2,000

1,783

383

1,530
1,500

1,317
1,100

1,000

35.1

60

1,405

37.6

40.5

1.5

1.3

44.0
40

404

360
1.2

1.2

1.1

1.0

0

2013

2014

2015

2016

2017

0.5

0

0

240

2014

2015

2016

(Billion ¥)

(¥)

200

1,600

100

150

1,200

99.7

100

83.6

2017

0

2013

2014

2015

2016

25.6
50

50

400

0

0

40.00
25

2013

2014

2015

2016

2017

0

48

20

2014

14.2

15
12.5 12.5

12.7

60.00

26.00

2013

36

24

10

12

5

0

0

44.00

2015

Net assets per share

Interest-bearing debt

Cash dividends per share

Equity ratio (%)

Debt/equity ratio (%)

Payout ratio (%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

30.2

20.4

20.6

551

56.8

2017

33.2

899

800

(Times)

16.0
75

853
87.8

Price/earnings ratio
(%)

88.00

1,290
353

120

2013

(%)

958

33.5
20

Cash dividends per share andpayout ratio

1.2

68.2

500

Market capitalization

410
364

Board of Directors for interim dividends and the General Meeting ofincrease). Interest-bearing debt included ¥248.7 billion (a ¥34.1 billion

improvement of 3.5 percentage points from the end of the previous

Net assets per share and equity ratio Note 1

The Company has a basic policy of paying an interim dividend and

The Company decided to pay a year-end dividend of ¥49 per share

Cash Flows

The Group made investments of ¥56.5 billion in total during fiscal 2017.

of 30% of profit attributable to owners of parent.

a year-end dividend. The decision-making bodies for dividends are theshareholders’ equity ratio as of December 31, 2017 was 44.0% (anCapital Expenditures

66

Cash Dividends

In the motorcycle business, investments of ¥31.2 billion were made

2016

2017

2013

2014

2015

2016

2017

Yamaha Motor Co., Ltd. ⎜ Annual Report 201767

Management Discussion and Analysis of Operations

Organization
Yamaha Motor Co., Ltd., as of April 1, 2018

Fund Procurement Conditions

Forecast for Fiscal 2018

General Meeting of Shareholders
Audit & Supervisory Board

Group companies acquire short-term loans payable denominated in

In the fiscal year ending December 31, 2018, the Company expects that

local currencies to use as working capital. Meanwhile, funds for plant

the business environment will be uncertain. Still, considering market

and equipment investment come primarily from internal reserves,conditions and demand trends, the Company plans to maintain stable

Chairman

including paid-in capital and retained earnings.

profits while steadily implementing medium- to long-term initiatives. The

President & CEO*The annual amounts of interest-bearing debt to be repaid are as

1,700.0 (+29.9, 1.8%)

Total
Short-term loans 133.7
payable1 year or 1 to 2
less
years

133.7

Long-term loans 219.8
payable—57.2 122.3

2 to 3
years

—
27.2

3 to 4
years

—
12.8

4 to 5years

Operating income

150.0 (+0.2, 0.1%)

Ordinary income

155.0 (+0.2, 0.1%)—

Profit attributable to owners of parent

103.0 (+1.4, 1.4%)—

Note 3: The figures in parentheses indicate amount and percentage changes from the fiscal
year ended December 31, 2017.

More than 5
years

—
0.2

Note 2: Long-term loans payable includes current portion of long-term loans payable.

Human Resources Division
Global Human Resources Development Division
General Affairs Division
Risk Management & Compliance Division
Legal & Intellectual Property Division
Government & Industrial Affairs Division

Management Committee
Risk Management andCompliance Committee

consolidated financial results forecast is as follows:
Net sales(Billion ¥)Human Resources & General Affairs Center

Board of Directors(Billion ¥)follows:

Integrated Auditing Division
Audit & Supervisory
Board Members’ Office

Corporate Planning & Finance Center
Corporate Planning Division
Finance & Accounting Division
Business Management Division
Process & IT* DivisionCorporate Communication Division
Financial Service Development Division
Design Center
Mobility Technology Center
NPM* Business Section
EM* Development Section
Motor Sports Section
Advanced Technology Center

The forecast is based on the assumption that the exchange rates are

New Venture Business Development Section
Research & Development Section
Technology Planning Section¥105 against the U.S. dollar (an appreciation of ¥7 from the previous

Share Performancefiscal year) and ¥130 against the euro (a depreciation of ¥3 from the

Manufacturing Center

previous fiscal year).

Manufacturing Planning Section
Body Manufacturing Section
Engine Manufacturing Section

Price per share increased from ¥2,574 at December 31, 2016, toProcurement Center¥3,695 at December 31, 2017. The number of shares outstanding,

Strategy Planning Section
Procurement Section

excluding treasury stock, decreased from 349,235,122 shares at
Powertrain Unit

December 31, 2016, to 349,232,466 shares at December 31, 2017.

Powertrain Development Section
Component Section

As a result, the market capitalization of the Company increased from

PF* Model Unit
Engineering Promotion Section
PF Model Development Section
Component Section¥898.9 billion at December 31, 2016, to ¥1,290.4 billion at December
31, 2017.
CS* Center

After Sales Section
Spare Parts Section
Motorcycle Business Operations
1st Business Unit
2nd Business Unit
Total Strategy Section
Quality Assurance Section*Abbreviations:
CEO: Chief Executive Officer
IT: Information Technology
NPM: New Personal Mobility
EM: Electric Mobility
PF: Platform
CS: Customer Service

68

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

Marine Business Operations
Marine Engine Business Unit
Development Section
Boat Business Unit
Marine Business Unit
Planning Section
Marketing Section
Automotive Business Unit
Overseas Market Development Operation Business Unit
Solution Business Operations
Robotics Business Unit
Surface Mount Technology Section
Factory Automation Section
Unmanned System Section
Smart Power Vehicle Business Unit
Pool Business Development Section
Yamaha Motor Powered Products Co., Ltd. (YMPC)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201769

Investor Information
As of December 31, 2017

Yamaha Motor Co., Ltd.

Yamaha Motor’s Share Price and Trading Volume on theTokyo Stock Exchange

Headquarters

Share price2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-37-0134
Facsimile: +81-538-37-4250

(Yen)

4,500

Date of Establishment

3,000

July 1, 1955

Major Consolidated Subsidiaries
Yamaha Motorcycle Sales Japan Co., Ltd.
Yamaha Motor Powered Products Co., Ltd.
Yamaha Motor Corporation, U.S.A.
Yamaha Motor Manufacturing Corporation of America
Yamaha Motor Europe N.V.
PT. Yamaha Indonesia Motor Manufacturing
Yamaha Motor Vietnam Co., Ltd.
India Yamaha Motor Pvt. Ltd.
Yamaha Motor Taiwan Co., Ltd.
Thai Yamaha Motor Co., Ltd.
Yamaha Motor do Brasil Ltda.

1,500

0
2013

2015

(Million shares)

300

150

Principal Shareholders
9.90%
9.64
5.54
5.11
3.57
2.45
2.37
2.32
1.61
1.54

0

2013

2014

2015

The Ordinary General Meeting of Shareholders is held in March each year
in Iwata, Shizuoka, Japan.

Transfer Agent for Capital Stock
Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233, Japan

AuditorErnst & Young ShinNihon LLC

70

Yamaha Motor Co., Ltd. ⎜ Annual Report 2017

2016

2017

Shareholder Composition
Securities companies

4.9%

Japanese individuals
and others

6.5%
Foreign investors

32.1%

Annual Meeting of Shareholders

Tokyo Stock Exchange, Inc.

2017

450

Authorized: 900,000,000 shares (Common stock)
Issued: 349,914,284 shares
Number of Shareholders: 34,566

Securities Exchange

2016

Trading volume

Capital Stock

Yamaha Corporation
The Master Trust Bank of Japan, Ltd. (trust account)
Japan Trustee Services Bank, Ltd. (trust account)
State Street Bank & Trust Company
Toyota Motor Corporation
Mitsui & Co., Ltd.
Mizuho Bank, Ltd.
Japan Trustee Services Bank, Ltd. (trust account 9)
The Shizuoka Bank, Ltd.
Japan Trustee Services Bank, Ltd. (trust account 5)

2014

37.9%

Japanese financial institutions

18.6%
Other Japanese corporations

For further information, please contact:
Yamaha Motor Co., Ltd.
IR/SR Group, Corporate Communication Division
2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-37-0134
Facsimile: +81-538-37-4250
https://global.yamaha-motor.com/ir/
You are also invited to review the Fact Book and Financial Dataon Yamaha Motor’s website at https://global.yamaha-motor.com/

YAMAHA MOTOR CO., LTD.
2500 SHINGAI, IWATA, SHIZUOKA, JAPANhttps://global.yamaha-motor.com/

Printed in Japan