Integrated Report 2023
Fiscal year ended December 31, 2022

Corporate Philosophy

Introduction

Medium- to Long-Term Strategies

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

Kando* Creating Company
Offering new excitement and a more fulfilling life forpeople all over the world

Corporate
MissionYamaha Motor strives to realize peoples’ dreams with ingenuity and passion, and to always be a company people look
to for the next exciting product or concept that provides exceptional value and deep satisfaction.
* Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that we experience when we
encounter something of exceptional value.

Management
Principles

ActionGuidelines

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

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

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

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Yamaha Motor Co., Ltd. Integrated Report 2023

Acting with Speed

Spirit of Challenge

Meeting change withswift and informed action

Courage to set higher goals
without fear of failure

Persistence
Working with tenacity toachieve desired results, andthen evaluating themManagement Platforms

Facts and DataIntroduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Yoshihiro Hidaka
President, Chief Executive Officer
and Representative Director

Delivering You Integrated Report 2023
Yamaha Motor has been publishing integrated reports since 2019 to help our shareholders, investors, and awide range of other stakeholders better understand our value creation from a medium- to long-term
perspective.
2022 was a milestone year for Yamaha Motor, as we surpassed our long-standing goal of ¥2 trillion in
net sales and are taking the next steps for growth. However, our corporate mission to be a Kando Creating
Company will remain unchanged. In Integrated Report 2023, we endeavored to provide our readers with abetter understanding of our growth strategy—centered on our Medium-Term Management Plan and thefoundation for value creation that supports it—to convey how and what kind of excitement Yamaha Motor
will continue to deliver in the future.
We will continue striving to create sustainable social and environmental value and enhance our corporate
value through constructive dialogue with our stakeholders. In compiling Integrated Report 2023, I declarethat each of our departments has cooperated in consolidating our policies and prepared the contents ingood faith, and that the processes used in preparing the report as well as the information it contains to beaccurate and legitimate.

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Yamaha Motor Co., Ltd. Integrated Report 2023

Introduction

Contents

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Editorial Policy
This report sets forth Yamaha Motor’s corporate philosophy and vision, and explains how
they interconnect with the strategies and strengths employed in their realization, for theunderstanding of shareholders, investors, and other diverse stakeholders with regard to

Introduction
1 Corporate Philosophy

Activities for Greater
Functional Competitivenessthe Company’s value creation in the medium to long term. In compiling this report, wehave referred to the IFRS Foundation’s International Integrated Reporting Framework andthe Ministry of Economy, Trade and Industry’s Guidance for Collaborative Value Creation.
Financial, sustainability-related, product, and other information not contained in

2 Delivering You Integrated Report 2023

52 Creative Branding & Design

4 Pursuing the Unique Style of Yamaha Motor

55 Research and Development

5 Our Challenge to Create Kando

57 Intellectual Properties

6 A Look at Yamaha Motor's Unique Style

59 Procurement

Scope

7 At a Glance

61 Manufacturing and Production (Monozukuri)

This report covers Yamaha Motor Co., Ltd., its 137 subsidiaries, and its 26 affiliates (as63 Marketing

Medium- to Long-Term Strategies
10 From the President
15 Maximizing Our Environmental and Social Value
16 Important Societal Issues (Materiality Issues)
20	Progress of Medium-Term Management Plan (2022–2024)
23	From the Director in Charge ofCorporate Planning and Financial Affairs
25 Business Overview
25 Data by Business Segment
26 Land Mobility
29 Marine ProductsManagement Platforms
66 From the Chairman of the Board of Directors

this report is available on Yamaha Motor’s official website. Please note that the“2023” in the title refers to the year this report was published.

of December 31, 2022). Notification is given when the scope used in calculating thedata provided in this report differs from this.
Reporting Period
This report covers the period from January 1 to December 31, 2022. Information on some
activities taking place after January 1, 2023 is also provided.

68 From the Outside Director
69 Outside Director Dialogue
72	Directors and Audit &Supervisory Board Members
73 Executive Officers
74 Corporate Governance

Structure for Information Disclosure
Financial Information

Non-Financial Information

Integrated Report 2023

82 Risk Management
83 Compliance

31 Robotics
33 Financial Services
34 New Businesses
36	Climate Change Initiatives(Disclosure Based on TCFD Recommendations)

Facts and Data
85 Financial and Non-Financial Highlights
87 Eleven-Year Summary

42 Digital Transformation

88 Environmental and Social Data

45 Human Resource Development

89	Management’s Discussion and Analysis of
Fiscal 2022 Business Results

49 Sustainability

93 Design Awards
94 Corporate Information / Stock Information

Notice Regarding Forward-Looking Statements
The statements in this report, except for historical facts, are forward-looking statements about
the future performance of the Company and its Group companies. These statements are basedon management’s assumptions and beliefs in light of the information currently available andinvolve risks and uncertainties. Please be advised that actual results may differ significantly fromthose 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.

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Yamaha Motor Co., Ltd. Integrated Report 2023

Pursuing the Unique Style of Yamaha Motor

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Since our founding, we have consistently manufactured products with the desire to bring joy and Kando to our customers. During the downturn after the 2008 financial crisis, we redefinedand pursued the unique style of Yamaha Motor along with introducing structural reforms. What lies at the root of our record-breaking performance in 2022 is our brand, enhanced by constantly honing what makes the Company unique in our corporate activities, and the foundations built by the consistent reinforcement of our organizational strengths.
Business Performance
Net sales

2013
Creation of theRevs your Heart brand slogan

Operating income margin

2017
Unique style of
Yamaha Motorredefined

Nov. 2008
Global financial crisis

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Feb. 2020
COVID-19
pandemic strikes

2019

2020

2021

2022

2025

2030
(FY)

2008 Financial Crisis Impacts Earnings

Clarifying Our Stance As a Kando Creating Company
As We Achieve a V-Shaped Recovery

Record-Setting Performance
Amid the COVID-19 Pandemic

With the global financial crisis in 2008, global demand receded and per-One of our structural reform measures was to reduce costs through the

Similar to the financial crisis in 2008, the COVID-19 pandemic temporar-

formance fell sharply, and the Company faced its first serious crisis sincecreation of product platforms that could address the mix of demands inily dented earnings due to a lull in global demand and supply chain

its founding. The slow response to the rapid decline in demand indifferent markets. To solve this dilemma, previously separate divisions

fragmentation. In response to the drastic changes in the businessdeveloped markets, overstocked inventories, fixed costs inflated by anwere integrated and the Design Center (today’s Creative Center) was

environment, the entire Company came together to confront the crisis,

excessive growth trajectory, and a strong yen triggered by exchange rate

created. This was an opportunity to discuss and verbalize the image ofdrawing on lessons learned in 2008 and other past experiences. On thefluctuations all contributed to poor performance. Under thesewhat makes Yamaha Motor unique, which had been vague up to that

other hand, the COVID-19 crisis brought about changes in people's life-

circumstances, our first priority was to promote break-even-point

point, as well as to discuss the creation of new product platforms. As

styles and values. We saw this as an opportunity for growth andmanagement with an emphasis on implementing structural reforms and

we recovered from the crisis, we reevaluated Yamaha Motor’s raison

achieved a strong recovery with products and services that met thestrengthening our earnings structure. Since fiscal 2010, the year we suc-d'être, established a brand slogan for realizing our corporate mission,needs of those who sought after Kando even in such a drastically chang-

cessfully achieved positive operating income, we have accelerated efforts

and designated five elements comprising the unique style of Yamaha toing business environment. In fiscal 2022, we surpassed ¥2 trillion in net

with continued demonstration of our presence through Monozukuri as

convey the Company’s values at any time. Today, these are used as asales for the first time in our history. Our early recovery is the result of

the second phase of our commitment toward sustainable growth, alongcommon guideline for all Yamaha Motor employees worldwide.

our efforts to strengthen our corporate structure as well as our unwaver-with structural reforms and reforms of our management platforms.
4

Yamaha Motor Co., Ltd. Integrated Report 2023

ing pursuit and creation of Kando unique to Yamaha Motor.

Our Challenge to Create Kando

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Yamaha Motor Co., Ltd. was founded in July 1955, when the motorcycle division of Nippon Gakki Co., Ltd. (today’s Yamaha Corporation) was spun off to form an independent company.
Since then, with our powertrain and other core competencies as a starting point, Yamaha Motor has been continuously working to create new Kando by consistently taking on challenges
for more than 60 years.
Founded 
Entry into the Motorcycle Industry Amid Japan’s Post-War Economic Recovery
Genichi Kawakami, the fourth president of Nippon Gakki and later founding president of Yamaha
Motor, decided to enter the motorcycle business with the goal of building a foothold for growthoutside the realm of musical instruments. Although a latecomer to the market, the Company
generated a great deal of attention with its first product’s innovative coloring and design, light weightand maneuverability, and easy engine starts—an incredibly important factor at the time. This is where
we find the origins of Yamaha Motor's unique style.

Japanese Economic Miracle (1955–) Customer-Oriented Development for Creating Kando
Yamaha Motor entered the marine recreation field believing that enjoying daily life would eventuallylead to more fulfilling lifestyles. The Company succeeded in expanding its business domain to include
marine products by adapting the engine technologies it developed with motorcycles to develop
outboard motors and fiber-reinforced plastic (FRP) fishing boats, incorporating market input in theprocess. Meanwhile, in our core business of motorcycles, we did not restrict ourselves to preconceived
norms and ideas, and analyzed customer needs with a market-oriented approach to create the new“soft bike” market segment in Japan.

Equal Concern for Kando and the Environment (1990–) 
Creation of User- and Eco-Friendly Mobility
In 1993, Yamaha Motor launched the PAS as the world’s first electrically power-assisted bicycle, a newform of mobility intended to be closely linked to user lifestyles. Promoted as a user- and eco-friendly
personal commuter model placing top priority on performance in tune with human sensibilities, thePAS gained popularity as a form of mobility “assisting” the various lifestyles people lead. Later, weapplied the electronic control technologies developed through PAS bicycles and the latest humaninterface technologies to successfully practicalize an eco-friendly electric commuter vehicle that
produced no emissions and little noise. These technologies are contributing to today’s development
work on new forms of mobility.

To the Future (2010–) Uniquely Yamaha Approaches to Solve Social Issues
Yamaha Motor is working to evolve and diversify its existing product lines by combining its corecompetencies with new cutting-edge technologies. At the same time, the Company is adapting its
expertise in unmanned technologies to contribute to labor-saving efforts and raising efficiency in avariety of fields, from industry and farming to forestry. In addition, as part of its efforts to achievecarbon neutrality, Yamaha Motor is bringing electric motorcycles and scooters such as the NEO’s andthe HARMO next-generation electric boat control system to the market while also moving forwardwith the development of internal combustion engines that do not emit CO2. Through efforts such as
electrification among our wide-ranging product lineup, we are expanding the possibilities of mobility
for a better society and a more fulfilling life.
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Yamaha Motor Co., Ltd. Integrated Report 2023

Expanding the Field

A Look at Yamaha Motor's Unique Style

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Our Revs your Heart brand slogan represents our desire and passion to deliver exceptional value and experiences that enrich the lives of people around theworld who encounter our company. We will continue to do our utmost to exemplify the five elements of “Innovation,” “Excitement,” “Confidence,” “Emotion,”and “Ties,” and will strive to follow them every day so that customers can clearly feel the values behind the unique style of Yamaha.

Excitement
Creating Excitement
F450A
Excitement (etsu) is an emotion that rises from the bottom of one’s heart andbrings joy and delight to those who feel it. It is a visceral sensation, whereby

Confidence

momentarily one’s heart races and one’s emotions run high. Our Monozukuri
is always centered on human sensibilities.

Ensuring Confidence

Our outboard motors bring joy to their users on the premise of reliability

Innovationand durability. The F450A that went on sale in 2023 is our largest and most

YAMALUBE

powerful model yet at 450 hp, but is at the same time a more complete andIn order for customers to truly enjoy our products, it is essential thatrefined package, with even more user-friendly features than before.

reliability must be unquestionable. All Kando is built on a customer’s

Challenging for Innovation

sense of Confidence (shin), trust, and peace of mind.
Engine oil plays many roles, such as lubrication, sealing, cooling,

Green Slow Mobility projectcorrosion prevention, and serving as a buffer for meshing engine

Innovation (hatsu) means to always create value with new ideas and perspec-components. We view Yamalube as a “liquid engine component” astives without being bound by conventional wisdom.

we conduct engine oil R&D. Yamalube is now a trusted name for

The Green Slow Mobility project is a small-scale mobility service that uti-

customers in a variety of fields, from motorcycles and outboard

lizes our golf car technology. These vehicles are easier to drive than a conven-motors to snowmobiles.

tional car and can pass through narrow alleys. Useful for tourist excursions
and as a means of transportation for the elderly, these vehicles are a good fit
for a low-carbon society, and we are conducting real-world trials around
Japan aimed at eventual deployment.

EmotionCaptivating Emotional Feelings

Yamaha Riding Academy

Emotion (mi) is the magic-like force that draws you in, the strong feel-

The connections and bonds we have with customers from theings that tug at one’s heartstrings. We provide products and services

very beginning to the end of their journey are the Ties (ketsu)

that fascinate people’s artistic mind. No matter how unprecedented athat form the foundation of Yamaha Motor's Monozukuri.

visually pleasing.

Yamaha Motor Co., Ltd. Integrated Report 2023

Building Ties with Customers for Life

Ténéré

pursuit, it is the Yamaha Motor way to ensure a product is always

6

Ties

We conduct a variety of activities around the world to ensure
our products are used safely and properly, such as courses on

Since its launch in 1983, the Ténéré line of adventure motorcycles

safe riding practices. The Yamaha Riding Academy (YRA) is a

has inspired the thrill-seeking spirit of riders around the world for 40

core program among our various safety promotion initiatives

years. Packing the performance and features that make your grandest

and aims to help make our products fun, convenient, and useful

dreams a reality, today’s Ténéré whispers to the spirit hidden withinfor our customers for many years to come. Over 100,000 riders

every rider to simply head for the horizon.

worldwide take YRA courses for various products every year.

At a Glance

Introduction

The powertrain, chassis and hull, electronic control, andmanufacturing technologies and expertise we haveaccumulated since our founding serve as our core competencies, and as we continue refining them, we offer amyriad of products around the world that create Kando
by leveraging our technologies and keen sensibilities
based on the Company’s unique Jin-Ki Kanno development ideal.

Net sales

Fiscal 2022
Consolidated
Financial Results

Activities for Greater
Functional CompetitivenessMedium- to Long-Term Strategies

Management Platforms

Distribution of
net sales (outer circle)
and operating income(inner circle) bybusiness segment

Operating income

2,248.5 billion

224.9 billion¥

Facts and Data¥

Land Mobility

Marine Products

The Land Mobility segment primarily comprises the motorcycle, recreational vehicle (RV), and smart power vehicle(SPV) businesses, and offers a wide range of products tailored to the characteristics of each market, including products for practical daily transportation, as well as for leisure, commercial, and sports use.

The marine products business offers a lineup that includes outboard motors, personal watercraft, and fiber-reinforced plastic (FRP) pools, and has established a world-leading presence inthe marine market.

Net sales (% of total)

Operating income (% of total)

Net sales (% of total)

Operating income (% of total)

1,468.2

¥

87.4

¥

517.0

¥

¥

Motorcycles

billion (65.3%)

billion (38.9%)

Electrically power- All-terrain vehicles (ATVs) /Leaning
assisted bicycles
Recreational off-highway Multi-Wheel (LMW)
vehicles (ROVs)
modelsSnowmobiles

Electric
wheelchairs

Boatsbillion (23.0%)

Outboard
motors

109.2

Pools

billion (48.6%)

Personal
watercraft

Fishing boats andutility boats

Intermediate parts for products, knockdown parts for overseas production, automobile engines, and automobile components, etc.

Robotics

Financial Services

Other Products

The robotics business develops products such as industrial robots for factory
automation, surface mounting technology (SMT)-related equipment used for
manufacturing printed circuit boards, semiconductor manufacturing equipment, and unmanned industrial-use helicopters and drones that utilize our coreelectronic control technology.

As part of our efforts to reinforce business management foundations, we
provide retail financing, wholesale financing, leases, insurance, and otherfinancial services related to our products to customers and dealerships.

The other products business manufactures and sells golf cars and landcars for golf courses and leisure facilities, generators and multipurpose
engines based on small engine technology, and snow blowers forsnowy regions.

Net sales (% of total)

Operating income (% of total)

Net sales (% of total)

115.9

¥

11.9

¥

¥

Surfacemounters

7billion (5.2%)

Semiconductor
manufacturing
equipment

Industrial
robotsYamaha Motor Co., Ltd. Integrated Report 2023

billion (5.3%)

Industrial useunmanned
helicopters

62.2

billion (2.8%)

Financialservices

Operating income (% of total)

Net sales (% of total)

17.5

¥

¥

billion (7.8%)

85.1

billion (3.8%)

Golf cars /Land cars

Generators

Operating loss (% of total)¥

1.2

billion (-0.5%)

Snow blowers

Automobile
engines

At a Glance

Introduction

Medium- to Long-Term Strategies

Global Organization Creating Value as a TeamJapan
Others

7.3%

Net salesby region¥2,248.5 billion

Total number of bases(primary roles) 

Number of employees(consolidated) 

13.4%
Asia
(excl. Japan)

41.0%

Europe52,554
Ratio of overseas
production 

Over

13.9%

90

Development

Sales

19
23

47

Manufacturing%

North America

25.3%

Number of Consolidated Subsidiaries:

127
North America

Europe

8

Japan

21

Asia (excl. Japan)

48
Oceania

9

8

Yamaha Motor Co., Ltd. Integrated Report 2023

26

Central andSouth America

15

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Medium- to
Long-Term Strategies
10 From the President
15 Maximizing Our Environmental and Social Value
16 Important Societal Issues (Materiality Issues)
20 Progress of Medium-Term Management Plan (2022–2024)
23	From the Director in Charge of Corporate Planning and Financial Affairs
25 Business Overview
25 Data by Business Segment
26 Land Mobility
29 Marine Products
31 Robotics
33 Financial Services
34 New Businesses
36 Climate Change Initiatives(Disclosure Based on TCFD Recommendations)
42 Digital Transformation
45 Human Resource Development
49 Sustainability

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Yamaha Motor Co., Ltd. Integrated Report 2023

From the President

Introduction

Medium- to Long-Term Strategies

We will continue to pursue Kando creation with an eye to ournext stage of growth while staying attuned to the forms of
Kando sought by people in these ever-changing times.
Our Long-Term Vision for 2030 is “ART for Human Possibilities: Let’s strive for greater happiness.”
By building on our unique Jin-Ki Kanno development ideal, we will pursue products and services thatfurther expand the potential of people while creating Kando through empathy with society. In 2023,“transformation” and “speed” will be the key words on each of our minds as we enter the next stage,
forging ahead with growth strategies and reinforced management foundations.

Yoshihiro Hidaka
President, Chief Executive Officer
and Representative Director

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Yamaha Motor Co., Ltd. Integrated Report 2023

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

From the President

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Overview of Fiscal 2022
Further Strengthening Our Resilience Following Record-High Net Sales and Operating Income
After making record-breaking net sales and operating
income in fiscal 2021, Yamaha Motor exceeded even thatyear’s performance in fiscal 2022 by posting new recordhigh figures with net sales of ¥2,248.5 billion and operating
income of ¥224.9 billion. Personally, I have mixed feelings
about these results. On the one hand, there is a great senseof achievement in finally breaking the ¥2 trillion barrier—agoal we have fallen short of for many years. On the other
hand, I feel that this achievement is long overdue. Despiteparts shortages and other ongoing issues, our development,
manufacturing, and sales teams rallied to ensure that the
impact of such issues was minimized, and that products
were delivered to our customers. Our record-breaking performance in fiscal 2022 is the result of the combined effortsof each of our employees, and I am sincerely proud of these
efforts. These results were tremendously influenced by thedepreciation of the yen; our actual performance whenexcluding the effect of exchange rates would have beenaround ¥2 trillion in net sales. As such, although the needremains to ramp up efforts to exceed this target in bothname and reality, I believe that we have successfully
stepped to the starting line toward achieving our next milestone of ¥3 trillion.
However, there are points we must reflect on. Aroundwhen the COVID-19 pandemic began, we were quick to put
the brakes on production. This decision was made assumingthat economic activity would slow and that demand would
decrease, but contrary to our expectations, we saw anincrease in demand for outdoor recreation along with socalled “revenge spending.” We responded by immediately
stepping up production but faced disruptions in the supply

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Yamaha Motor Co., Ltd. Integrated Report 2023

chain caused by the semiconductor shortage and other factors. This led to insufficient inventory and caused delays forour customers, the impacts of which we are still feelingtoday. It is possible that with better judgment on the slowing
down and speeding up of production, we may have moreaccurately met customer expectations. This experience was apainful reminder for me of the importance of building
resilience in order for us to grow further even amid an unpredictable business environment. I believe we need to keep aclose eye on the world and on the Company as a whole, andto build the corporate structures enabling all relevant departments to come together quickly when events occur, makedecisions, and then immediately put them into action.
Mastering the art of when to hit the brakes and when to
step on the accelerator for our operations is difficult with abusiness model like ours, where the supply chain is long andthe base of business partners expansive. That said, we wantto hone this ability so that when we next face another major
development, even if we have to slam on the brakes first, wewant our engine to smoothly build revs as soon as our foot isback on the gas.
Meanwhile, I commend the high level of resilience thathas been built at Yamaha Motor over the experiences of thepast few years. Despite being battered by various problems,such as ongoing supply chain disruptions, urban shutdowns
as part of COVID-19 countermeasures, natural disasters,
and soaring material and logistics costs, the fact we wereable to respond quickly and tenaciously to deliver our products to customers to the greatest extent possible is proof ofthe hard, self-driven work done by all our employees. I
believe that strengthening this ability to act with indepen-

dence will be what takes our resilience to the next level.
There is one more important matter to mention. We mustensure that the new customers that entered the market due
to the pandemic—and triggered an unexpected increase indemand for outdoor recreation—will be able to continue
enjoying their life with Yamaha products for years to come.
To that end, we will also focus on grassroots activities by
proposing products that new customers can easily familiarize themselves with and providing opportunities for customers to discover new ways of recreation.

From the President

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Initiatives under the Current Medium-Term Management Plan (2022–2024)
Aiming to Be a Kando Creating Company with “Transformation” and “Speed” as Our Key Words
As previously mentioned, we have already achieved the net
sales and operating income targets set in our Medium-Term
Management Plan, owing in part to the tailwind from theweak yen. However, as these figures do not fully reflect ouractual performance, we will continue to implement measures based on the Medium-Term Management Plan so that
we can grow into a company that continuously exceeds¥2 trillion in net sales.
Managing our business portfolio is one of the pillars forachieving that goal, and the Marine Products business andour other core businesses have built up resilience and havebeen reliably generating cash, even during the COVID-19
pandemic. However, that cash is not yet linked to the creation and expansion of new businesses—the seeds of ournext stage of growth—and I acknowledge that there is stillquite some way to go to reach our ideal portfolio.
When creating and expanding new businesses, I feel it isimportant for all involved to come up with and share ideas,
and to then breathe life into and grow new businesses fromamong said ideas. This has been our approach until now
when proposing new mobility options and other products
to the world, but I sense that the quality and quantity of
the communication necessary for that declined with the
COVID-19 pandemic, since opportunities for face-to-face
discussions became scarce. To generate innovation, people’s
minds need to be open to the outside world. I truly believethat Yamaha Motor cannot achieve innovations unique toour brand by looking inward.
From that sense of crisis, we have made “transformation”
and “speed” key words for 2023. We have also laid out
four high-priority themes and launched four corresponding
Companywide projects, such as the Motorcycle Electrification
Project and the New Mobility Project. Through theseprojects, we will bring various divisions together—from
production and sales to procurement and technology—toform unified entities working to resolve issues under sharedobjectives, turning the inward gaze of the pandemic backoutward to foster an environment that encourages

innovation. On a personal level, I will take every opportunity
to proactively share messages while working to encourage
more creative means of communication. At the same time,
pushing our digital transformation (DX) initiatives forward is
how I want to produce more available time for each
employee to spend on more creative endeavors.
In addition, we now have a more concrete outlook forthe commercialization of the mobility services and lowspeed automated vehicles that fall under our new businesses, so we hope to rapidly upscale during the current
Medium-Term Management Plan. The resources we needfor that are people, goods, and money, but of particularurgency is securing the right number and quality of humanresources. What becomes important with this is not solely
relying on the resources we have internally but also leveraging external resources for co-creation. Engaging in thisco-creation with like-minded business partners will lead tospeedier implementation of our initiatives.

activities—including the entire supply chain*1—by 2050, as
well as keeping to a basic policy of further reducing perperson CO2 emissions from transportation. As a milestone,
we have revised upward the targets for Scope 1 and 2
emissions, which are emissions created by the Company

itself, and will aim for a collective reduction of 58% from2010 during the period of the Medium-Term Management
Plan. Our action plans are centered on the installation ofrenewable energy equipment in at least 10 countries andregions, and the use of CO2-free electricity providers.

Working Toward a Carbon-Neutral Future
In our current Medium-Term Management Plan, we arestrengthening our sustainability initiatives with carbon neutrality as a major theme. We established the Yamaha Motor
Group Environmental Plan 2050 and are aiming to achievecarbon neutrality throughout all of our business

12

Yamaha Motor Co., Ltd. Integrated Report 2023

From the President

Introduction

Medium- to Long-Term Strategies

In 2022, in recognition of its energy-saving initiatives, theHamakita Factory received the Energy Conservation Grand
Prize: the ECCJ Chairman’s Award in the Best Practices
Category. The Hamakita Factory achieved a 32% year-onyear reduction in energy consumption, equivalent to 82,000liters of crude oil. Based on these approaches unique to
Yamaha Motor to analyze the value of energy as well as
their steady implementation at other factories will lead tofurther energy conservation going forward. Furthermore,
for the Scope 3 emissions generated by customers andemployees through product usage, raw materials, transportation, disposal, and more, our platform strategy will accelerate the shift to electric vehicles (EVs) and thereby reduce

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

the CO2 emitted. However, a key consideration in driving
the shift to EVs is to not only offer products with performance that meets anticipated needs but also at price points
acceptable to customers. We will use proof-of-concept
models*2 to better gauge the performance needs of themarket, account for costs, and other factors to accelerate
the development process.
*1 Including emissions from company business activities (Scope 1 and Scope 2) andother emissions (Scope 3)*2 Models designed to track customer needs and examine the potential for peripheralbusinesses and new markets

Our Long-Term Vision: ART for Human Possibilities
Creating New Value That Garners Empathy from Society
Under our Corporate Mission to be a Kando Creating
Company, we have set the slogan for our Long-Term Vision
for 2030 as “ART for Human Possibilities: Let’s strive forgreater happiness.” This slogan encapsulates our desire to
respond to the needs of society in uniquely Yamaha ways,
applying the technology and sensibilities we have cultivated
to date to the concepts of being “closer to people” and“expanding human possibilities” more than ever before.
What do we mean by being “closer to people”? Creating
Kando remains at the core of our product development, but

13

Yamaha Motor Co., Ltd. Integrated Report 2023

the definition of Kando today has changed since myyounger days. In the past, Kando was primarily associatedwith excitement when talking about motorcycles, like whenrevving an engine. Today, consumers also seek social empathy through measures for user safety and consideration for
the environment, for example. Whether we can successfully
develop products that respond to this need for empathy will
be key to the further growth of the Company. Our Leaning
Multi-Wheelers (LMW)*3 are products that truly cover boththe excitement and the empathy described here, andproducts we can say were made a reality because we are
Yamaha Motor. If we can grow closer to people than everbefore and inspire empathy when creating Kando in various
business domains while meeting the demands of society, I
believe that we are entirely capable of achieving ¥3 trillion
in net sales.
*3 Leaning Multi-Wheeler: Yamaha’s designation for vehicles with three or more
wheels that can lean like a motorcycle through turns

From the President

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Staying Attuned to What Kando Means in a Changing WorldI have been into motorcycles since I was a university student
and currently have two of my own. One is a sportbike that I
ride to feel a rush and I have all my senses sharpened whenon it. The other is a touring motorcycle more suited to
day-to-day use and I ride it to enjoy the scenery as it goesby. I expressed the concept of Kando by using the words“excitement” and “empathy” earlier, but just as there aremany different types of motorcycles, Kando also has many
forms. And as times change, the type of Kando people seek
is likely to continue changing as well. I believe it is criticalthat we not assume our own interpretation of Kando is the“correct” one, but to instead strive to clearly recognize thechanges occurring around the world and achieve further
Kando creation through this understanding.
Yamaha Motor was quick to take its operations overseas
after its founding. This winds back the clock quite a bit, but
in Africa back in the 1960s, it was common for fishing to
be done in wooden boats without any motorized propulsion. This constantly led to accidents and the loss of lives.
The Company’s early pioneers put themselves in the field to
get closer to the problem and introduced outboard motors
and boats made of fiber-reinforced plastic to these markets.
They also took advantage of the Company’s knowledge andexpertise as a comprehensive marine manufacturer to provide instruction in Japanese fishing methods as well as
proper catch preservation and processing, helping to modernize local fishing industries and improve safety while out
on the water. Today, fishing areas are bigger, the variety offish caught more diverse, and catches can be quickly
brought to market.
In the 1970s, when durable outboard motors that could
withstand harsh conditions had become more commonplace,

14

Yamaha Motor Co., Ltd. Integrated Report 2023

it is said an elderly Indonesian woman once expressed her
gratitude to Yamaha for such work: “Long ago, people whowent out to sea often did not return and the graves of fishermen lined the beach. But thanks to Yamaha Motor, not only
do we catch more fish, but most importantly, everyone
makes it back.” This is a clear sign that we have been able todeliver truly meaningful Kando to those people. The origin of
Yamaha Motor Kando lies not only in the excitement felt
when pursuing a hobby or interest, but also in theempathy and joy that comes from delivering somethingrooted in the voices of those in the market and being truly
close to our customers.
From here, we will aim to be a Company posting net
sales of ¥3 trillion, but this is a target, not a purpose. Our
mission is to be a Kando Creating Company, and in doing
so, we must continue to question our raison d’être. To
continue to exist well into the future and to gain the
support of our stakeholders, we must stay attuned to what
Kando means to people and continue asking ourselves
what kind of new value it is that we need to create. I hope
we can look forward to the ongoing support and understanding from all our stakeholders regarding Yamaha
Motor’s determination and actions henceforth in thiscontinued pursuit.

Yoshihiro Hidaka
President, Chief Executive Officer
and Representative Director

Maximizing Our Environmental and Social Value

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessThe very reason for the Company’s existence as a Kando Creating Company is to give society and customers experiences ofKando unique to Yamaha Motor that intertwine technologies and human sensitivities.

Management Platforms

Facts and Data

Outcomes to Achieve

Corporate Mission

Environmental Value

Kando Creating Company

Reduction of greenhouse gas
emissions from ourbusiness activities

Foundations for Creating

Marketing

R&D

P.63

P.55

Long-Term Vision 2030

Important Societal Issues(Materiality Issues)
P.16

Social Value

Branding

Environment andresources

P.52

Medium-Term
Management
Plan

Transportation andindustry

P.20

Business Operations

Land Mobility
P.26

Provision of safe anddependable mobility andlifestyles

Marine Products

Human capitalmanagement

P.29

Robotics
Procurement /Manufacturing and
Production
P.59, 61

Design
P.52
P.34

P.31

Financial Services
P.33

Other Products
New Businesses
P.57

Digital Transformation

P.42

Human Resource Development

P.45

Sustainability

15

Yamaha Motor Co., Ltd. Integrated Report 2023

P.34

Intellectual Properties

P.36, 49

Economic Value
Redistribution of
economic added value tostakeholders

Important Societal Issues (Materiality Issues)

Introduction

Activities for Greater
Functional CompetitivenessMedium- to Long-Term Strategies

Management Platforms

Facts and Data

Yamaha Motor defines materiality issues as major issues considered important by both our stakeholders and society at large, which not only have a major impact on our operations but arealso ones we believe we can solve through our business. By addressing these issues, we aim to achieve the sustainable growth of corporate value as well as the sustainable development ofsociety and the environment. Furthermore, performance regarding materiality KPIs, which are indicators of ESG management, is part of the non-financial evaluation component of theCompany’s executive remuneration system, and overall progress is considered when determining Companywide performance-based compensation for officers, including the president.

Process for Identifying Important Societal Issues

STEP 1

Materiality issues identified by Yamaha Motor

Sort

Environment
andresources

We look at the wide range of societal issues referenced in the United Nations Sustainable Development
Goals (SDGs) and the Global Risks Report, and select those that will have the greatest impact on

Transportationandindustry

Human ­capitalmanagement

Yamaha Motor’s use and procurement of management resources, and for which the resolution will
make the greatest contribution to the enhancement of corporate value. We also evaluate the importance of societal issues from the perspective of stakeholders, referencing the valuations of ESG rating
institutions and the content of our dialogues with major shareholders and institutional investors.

STEP 2Categorize

Selected societal issues

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

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

STEP 4• Financial crisis in important economic zones• Unmanageable inflation• Failure of national governance• Failure of regional or global governance• Inter-government conflict over regional problems• Deepened social uncertainty• Abuse of technological progress• Introduction of industrial processes taking into
account clean technologies and efficient use ofresources• Heightened awareness of sustainability• Promotion of economic growth based on fairwork environments• Reduction of waste materials• Curtailment of corruption and bribery• Improved energy efficiency(including promotion of use of renewableenergy)• Promotion of use of inexpensive, reliable energy• Promotion of safe and secure work
environments• Advancement of diversity and inclusion• Effective use of water resources andprevention of pollution• Securing of clean water resources• Abolition of inequality• Responses to multi-stakeholders• Promotion of innovation(active use of global partnerships)• Implementation of fair taxation• Promotion of sustainable industrialization• Elimination of discrimination against womenand protection of human rights• Use of women’s skills• Strengthened disaster prevention and response• Eradication of forced labor, human trafficking,and child labor• Increased employment for socially vulnerable
people• Prevention of pollution and damage fromharmful chemical substances• Strengthened measures to address climatechange• Sustainable use of natural resources• Promotion of innovation(promotion of sustainable industrialization)• Promotion of innovation(promotion of sustainable forms of consumption and production in ­developing countries)• Promotion of protection and recovery ofland ecosystems• Provision of a stable living environment• Halting of deforestation• Protection and recovery of marine ecosystems• Expansion of educational systems(including vocational training)• Enhanced educational environment indeveloping countries• Promotion of social infrastructure development• Prevention of traffic accidents• Protection of small-scale agricultural andfishing industries• Advancement of sustainable fishing industry• Improved access to fishing areas and markets
in emerging markets

Designate

Incorporate

Importance to stakeholders

STEP 3

Important issue areas

High

Initiatives to resolve the identified important societal issues have been incorporated into the current• Strengthened support for emerging anddeveloping economies

Medium-Term Management Plan. The rigorous implementation of these initiatives will be monitored
going forward.
Low

From 2021 to 2022, we reexamined these issues in light of the changes seen in the external environment and their impact on our businesses and society in general and reorganized them into threeissues. We also reviewed and refined the themes of our initiatives in line with the changes in internal and external environments.
16

Yamaha Motor Co., Ltd. Integrated Report 2023

Low

Importance to Yamaha MotorHigh

Please visit our corporate website for more information on materiality issues.

Important Societal Issues (Materiality Issues)

Environment
andresources

ThemesRisks

Introduction• Tightening of regulations and declining net sales due to global warming• Declining profits due to rising costs• Negative impact on corporate image• Delays in the economic independence of developing countries because ofmarine pollution• Impact of marine pollution on the fishing industry and marine leisureYamaha Motor’s Approach

Vision for 2030

Medium- to Long-Term Strategies

Opportunities

Activities for Greater
Functional CompetitivenessManagement Platforms• Growing trend of EVs replacing existing forms of mobility• Heightening demand for smaller forms of mobility

Medium-term targets (2022–2024)

Results in 2022

Reduce CO2 emissions from production by 58% compared to 2010
Reduced
CO2 emissions fromproduction
operations by 80%(per unit sale)compared to 2010
and achieving net
zero by 2035
Achieving carbon
neutrality
A

R

T

Reduce the environmental
impact of key productsthat emit CO2, such as
motorcycles andoutboard motors

Note:T arget revised upward to 58% in 2024 in line with expediting our carbon neutrality
goal to 2035

Deploy renewable energy facilities in at least 10 countries and regions

Begin using carbon-free electricity at Yamaha Motor domestic offices andPromote R&D activities for internal combustion engines that use carbon-neutral
fuels* and do not emit CO2*Hydrogen, synthetic liquid fuels, biofuels, etc.

Conservation ofmarine resources
A

R

T

Improved recyclabilityof boats

Release at least eight new electric motorcycles/scooters to the global market

Introduced Shizuoka Green Denki (hydroelectric
power generation) in July 2022 for major domestic locations
17% reduction in Groupwide Scope 1 CO2 emissions
Installed testing equipment and began research anddevelopment
Note: Operation of testing equipment began in May 2023.

Despite delays of several months due to the COVID-19 pandemic and other factors, the project is progressing as planned(Eight new models will be introduced by mid-2025)
HARMO compact electric propulsion system launched in Europe

Testing and evaluation of a new electric marine concept model completed

Progress with R&D for FRP waste material recycling and achieve technicalfeasibility by 2024

Transition from FRP materials to naturally derived materials and gradually introduce
them into mass-produced models by 2024
Established solutions
that contribute tosustainable fishery

Ten countries and regions using renewable energy- Percentage of renewable energy used: 18%- Japan, Indonesia,* India, Vietnam,* Thailand, Taiwan, U.S.A.,
Pakistan,* Philippines,* and Colombia*

Introduction of two new models

Release at least six new electrically power-assisted bicycles to the global market

Reduce the risk of damage
to the marine ecosystemand the depletion of fishery resources as a marine
product industry leader

60% reduction (compared with fiscal 2010)*Newly introduced in 2022

worksites

Promoting the development and sale ofproducts with low
environmental impact
through electrification and othermethods

Introduce a fishery management solution pilot project in 2024 after completing
field tests

Testing and evaluation of a new prototype electric propulsion
system in the mid-size range underway
Announced and exhibited three models for the market, withsales beginning in 2023
Continued research through industry–academia
collaborations
Progress in evaluating the functionality of raw materials
extracted from scrap wood
Introduced resin material for boat parts containing 25% biomass materials
Decided to employ plant-derived cellulose nanofiber reinforced resin
Launched a proof of concept (PoC) project for fishery management solutions in Hokkaido (in its second phase)
Started considering overseas PoC project based on domestic
PoC findings

Note: A R T refers to Advancing Robotics, Rethinking Solution, and Transforming Mobility, the three focus areas of our Long-Term Vision for 2030. We strive to contribute to the resolution of key social issues through the initiatives of these focus areas.

17

Yamaha Motor Co., Ltd. Integrated Report 2023

Facts and Data

SDGs

Important Societal Issues (Materiality Issues)

Transportationandindustry

ThemesRisks• Rising number of traffic accidents• Rise in traffic accidents caused by elderly people indeveloped nations• Fewer means of transportation inunderpopulated areas• Reduced competitiveness in the market andbusiness environment

Yamaha Motor’s Approach

Promote initiatives
to eliminate traffic
fatalities involving
motorcycles

Safe anduser-friendly mobility
for everyone
AR

T

Introduction

Utilize mobility technologies to provide transportation infrastructure
for the elderly, children,
depopulated areas, andother vulnerable
populations

Improve convenienceand create employment
opportunities by providing assets for mobility
services

Vision for 2030

Reduced percentage ofmotorcyclists in all traffic
fatalities

Opportunities

Medium- to Long-Term Strategies• Growing demand for motorcycles due to rising populations
and incomes in developing countries• Greater need for smaller forms of automated mobility• Addressing and supplementing the aging workforce andlabor shortages in the agriculture, fishing, andmanufacturing industries

SkillsTechnology

A

R

T

Yamaha Riding Academy participants: increase by 160% to 352,000 (compared to 220,000 over the three years of the previous Medium-Term
Management Plan)

Note: Reinforced face-to-face activities in each country with an eye on
post-COVID-19 regulations and reached first-year target

Drive technological R&D into rider airbags

Development progressing as planned toward a market launch

Develop peripheral warning systems (forward, backward, blind spots, andlane deviations) and launch on the market within FY2024

Development progressing as planned toward a market launch

Yamaha Motor Co., Ltd. Integrated Report 2023

Events: 1,817 in 25 countries

Participants: 130,000

Establish automated driving technology for service vehicles on select public roads
and aim for implementation in at least three locations by 2024

Offering new mobility
options that makepeople happier

Launch a personal mobility product to the market in 2023 that offers an all-new
mobility experience

Reached decision not to sell based on the results of market testing, and reconsidered improvements

Launch Mobility as a Service businesses in two or three emerging markets

Established companies in India and Nigeria and commenced
operations
Currently looking into establishing operations in other markets

Support startups that provide safe transportation and logistics services throughmeasures such as asset leasing (between ¥10 billion and ¥15 billion in 2024) tohelp improve people’s access to basic services

Total assets of operations in India and Nigeria amount toapproximately ¥4.7 billion

Improved standard ofliving for people who
cannot afford a motorcycle and providing services
that enable them to earna stable living

Successfulcommercialization of
new technologies in
the manufacturing,
agriculture, and medical
sectors that are driving
efficiency gains

Developed Level 4 automated driving technology for a service
vehicle on select public roads in the government-led RoAD to
L4 project,* with services running in Eiheiji Town, Fukui in May
2023*A project for R&D and deployment of advanced mobility services at
Level 4 automation

Agriculture

Medicine

18

Results in 2022

Reduced population
without access to public
transportation thanks tointroducing low-speed
automated driving
systems

Manufacturing

Robotics for
improved
work ease, comfort,
and precision

Management Platforms

Facts and Data

• Increased automation with the development ofAI technologies• New demand for mobility such as CASE-equipped
vehicles and MaaS• Offering solutions for the agricultural sector using robotics• Increased competitiveness due to the spurring of innovation

Medium-term targets (2022–2024)

Commercialize automated transport between factories in 2022 withthe aim of expanding the business overseas by 2024
Create work environments where people candedicate their talents towork requiring thehuman hand, eye,and mind by securing
more available time
via automation andlabor-saving measures

Activities for Greater
Functional Competitiveness

Commercialized automated transport between factories andbegan services at the end of November 2022
Note: Overseas business development is experiencing delays.

Test implementation of our proprietary collaborative robots for automating tasks that require repetitive or heavy human labor in 2023, followed
by full-scale business expansion in 2024

Promoted enhanced functionality, usability, and safety of cobots

Sell smart agriculture system that increases yields by 10% and reduceuse of pesticides and fertilizers as a project for the Ministry ofAgriculture, Forestry and FisheriesContinued development of smart agricultural drones for launch
in 2023 that will lead to labor savings, less use of pesticides andfertilizers, and higher crop yields

Established labor-saving technologies and businesses for cultivating
and monitoring orchard crops in the United States, Australia, and othercountries

Strengthening cooperation with investee companies and moving
forward with development as planned

Sell new cell handling devices featuring even higher accuracy

Development of image analysis technology progressed as planned

Offer antibody detection services to determine treatments appropriate
for the patient

Progressed as planned

Preparation for operational assessments at plants will begin in
December 2022

SDGs

Important Societal Issues (Materiality Issues)

Human ­capitalmanagement

ThemesRisks

Introduction• Loss of human resources due to reduced opportunities fordiverse human resources to play active roles• Increased competition for human resources

Yamaha Motor’s Approach

Vision for 2030

Medium- to Long-Term Strategies

Opportunities

Activities for Greater
Functional CompetitivenessManagement Platforms• Creation of new opportunities by promoting diversity andinclusion• Improving vitality through the hiring of diverse and talented
people from around the world

Medium-term targets (2022–2024)
Increase the ratio of local talent in executive positions at overseas subsidiaries to at least 55%

Results in 2022
52%

Began implementing international transfers after introducing the Yamaha Assignment Policy (YAP) in 2020
Diverse humanresources forincreased corporate
strength
A

R

T

Maximize engagement andperformance by allocating
talent in a timely andappropriate manner from a
global perspective

Assigning the right person to theright assignment, regardless ofgender, nationality, or ethnicity,and moving the business forward
while respecting diverse views andvalues

Implement around 10 global inter-subsidiary transfers by the end of 2024

Raise the ratio of women managers Groupwide to at least 13% by 2024

- Completed assignment and returned home: 2 cases- Currently away on assignment: 6 cases- Preparing for assignment: 2 cases
11% (455 out of 4,071)
Number of women in management positions by location- YMC alone: 42 (3.8%)
Note: Transferees are counted at the destination location.

- Domestic locations: 40 (5.9%)- Overseas locations: 373 (16.4%)
Increase the headquarters employee engagement score to at least 70%

Up 3 points (59% in 2021 to 62% in 2022)

Establish a human rights policy that is adopted by all Group companies
To fulfill our
corporate
responsibility torespect human rights
A

R

T

Eliminating the risk ofhuman rights violations
throughout the entire
supply chain

Ensuring that the Company maintains a systematic approach toresponding to human rights matters and effectively implements
mechanisms to minimize humanrights risks

Increase the percentage of agreement on human rights policies with dealerships and suppliers* in the supply chain (80% by 2024, and 100% by 2027)

Added new materiality issues in 2023

* Tier 1 suppliers involved with dealerships and Yamaha Motor products and with whom
the Company or its subsidiaries have entered into a basic direct transaction agreement

Established the Yamaha Group Human Rights Policy inMarch 2023

Launch operation of global relief mechanisms and respond
appropriately to risks

19

Yamaha Motor Co., Ltd. Integrated Report 2023

Facts and Data

SDGs

Progress of Medium-Term Management Plan (2022–2024)

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Positioning of the Medium-Term Management Plan 
Under our corporate mission to be a Kando Creating Company, we will work to realize our Long-Term Vision for 2030 of ART for Human Possibilities by carrying out our Medium-Term Management Plan from 2022 as phase two of the Company’s ongoing transformation. In recognition of the numerous challenges that must be addressed, including changes in the business environment, the rising awareness of sustainability, and the need for transformation, we will continue with the growth strategies
and reinforcement of management foundations that we have pursued over the last three years, but while also strengthening our resolve for sustainability. In the rapidly changing business environment, we will once again return to the essentials in fiscal
2023, especially growth strategies and reinforcement of our management foundations, to accelerate the pace of our transformation.

Corporate Mission

Kando Creating Company

Long-Term Vision for 2030

Focus Areas

Advancing Robotics

Rethinking Solution

Transforming Mobility

Leverage and evolve intelligent
technologies and robotics as a foundation

Propose uniquely Yamaha solutions

Promote innovations in mobility

Basic Policies of the Medium-Term Management Plan (2022–2024)

We will strengthen the earning power of our core businesses,
invest in new and growing businesses that contribute to ­the­creation of a sustainable world, and accelerate digital initiatives
and co-creation to boost our growth potential.
2019–2021

Growth Strategies

Growth Strategies• Portfolio management

Sustainability
Reinforcement ofManagement
Foundations

Business environment• Environmental changes—pandemic• Rising awareness of sustainability—carbon neutrality• Need for transformation—DX business model

20

Yamaha Motor Co., Ltd. Integrated Report 2023

Reinforcement ofManagement
Foundations• DX and structural reforms to
our production scheme• Carbon neutrality efforts• Safety riding and peace of mind
• Accelerate digital transformation• Increase global workforce agility

2025–
2027

2028–
2030

Progress of Medium-Term Management Plan (2022–2024)

Introduction

 ummary of Progress withS
the Medium-Term Management Plan
New Businesses

menting portfolio management to allocate management resources to each

efficiency. While core businesses made steady progress, the growth rate of
growth businesses was stunted due to the Shanghai lockdown and theFacts and Data

Strengthen our
structure to
generate
net sales

Growth BusinessesHigh

New Business Fields

Robotics Business*1
SPV Business

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

New Mobility Fields
Generate net sales through commercialization

short-term slowdown in demand. Our new businesses are also making¥30 billion by FY2024

steady progress, including the official launch of new services and real-

Sales growth rateachieved the targets for the financial indicators of growth, profitability, andManagement Platforms

Strategic Business Fields

With the current Medium-Term Management Plan, we have been implebusiness for the future appropriately. From our first year’s performance, we

Activities for Greater
Functional CompetitivenessMedium- to Long-Term Strategies

Increase
investments andexpand scale

Expand scale (Sales growth rate)
CAGR FY2018–2021 14%

FY2021–2024 19%

world automation trials in new fields.
For shareholder returns, our basic policy will be to emphasize making
consistent and ongoing dividend payments while taking into consideration

Low

High
ROIC

the outlook for business performance and investments for future growth,
distributing returns to shareholders in a flexible way based on the scale of

Structural Reforms

Core Businesses

Generator and Multipurpose Engine Business

Motorcycles / Marine Products
Recreational Vehicles / Golf Cars

our cash flows. In 2022, the Company repurchased ¥20.0 billion of its own
shares during the second quarter, and is projected to repurchase ¥30.0 billion
in 2023.

Determinebusiness
direction

Forecast for FY2023
In 2022, the world experienced continued destabilizing socioeconomic

Determine the direction of thebusiness from the perspective of
scale and profitability

Maintain /improve
profitability

Generate stable cash flows
ROS FY2019–2021 9.6%

FY2022–2024 11%*2

As of May 2023,
discussions are underway regarding the transfer of the multipurpose

occurrences as well as rising costs for raw materials, logistics, and more.

engine, generator, and snow blower businesses

Low

But amid all that, demand either quickly bounced back or remained strong

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

Financial Services business acting tosupport core businesses

in almost all segments (except for capital investment demand in China for
Note: The reportable segment classification of existing businesses under business portfolio management is as follows:
Land Mobility: Motorcycle business, Recreational Vehicles business, Smart Power Vehicles business
Other Products: Golf Car business, Generator and Multipurpose Engine business*1 Including surface mounters, semiconductor manufacturing equipment, industrial robots, and industrial-use unmanned helicopters*2 ROS is calculated using figures that do not include corporate expenses.

the Robotics business). In 2023, we expect demand to remain particularlyhigh for large outboard motor models and motorcycles in emerging markets, so we will look to make progress with parts procurement, production, and shipments as we aim to optimize our market inventory levels for
products in short supply. Furthermore, the Company expects the effects ofthe cost pass-throughs implemented in 2022 to manifest even more clearlyin 2023, and for ocean freight rates to be lower than the previous year.
However, the risks anticipated include price hikes accompanying a
recovery in automobile production for materials like aluminum, precious
metals, and steel, as well as further rises in labor and energy costs.
Additionally, global economic trends, exchange rate fluctuations, and otherfactors make the situation quite uncertain. To address these risks, we will
move forward with core structural reforms and measures to reinforce ourfoundations, such as lowering costs and raising productivity. At the sametime, the marketing and technology departments will come together towork on upping the pace of such reforms, create new value for adapting
to changes in our business environment, and make headway with initiatives for sustainable growth.

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Yamaha Motor Co., Ltd. Integrated Report 2023

Financial Indicators
FY2021 (Results)

FY2022 (Results)

FY2023 (Forecast)

FY2024 (Target)¥1,812.5 billion¥2,248.5 billion¥24,500 billion

Over ¥2,200 billion (CAGR*4 over 7%)

10.1%

10.0%

9.4%

Over 9% (Three-year average)
15% range (Three-year average)

Growth:Net Sales
Profitability:
Operating Income Margin

Efficiency: Capital Efficiency (approx. 7% WACC)
ROE

19.8%

18.7%

15.3%

ROIC

12.4%

11.9%

9.9%

9% range (Three-year average)

ROA*3

10.5%

11.2%

10.4%

10% range (Three-year average)

32.8%

35.7%

46.2%

40% range(Cumulative total for the three-year Medium-Term
Management Plan period)

Shareholder Returns:
Total Payout Ratio*3 ROA is calculated based on operating income*4 Average compound annual growth rate for FY2021–FY2024

Progress of Medium-Term Management Plan (2022–2024)

Sustainability Initiatives 
Carbon Neutrality
In the Yamaha Motor Group Environmental Plan 2050, which sets a goalof carbon neutrality by 2050, we have moved up the target achievement

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Non-Financial Indicators

Contributing to a

Connecting with People andMore Sustainable World

Thriving as a Company

date for our factories—including those overseas—to 2035. To date, wehave installed energy-saving and renewable energy facilities in more than
10 countries and regions, and have begun utilizing CO2-free electricity at
our domestic business sites. In addition, as a new initiative that enables

Convert to
Carbon-Neutral
Powertrains

Accelerate
Co-Creation

carbon offsetting, we established the Yamaha Motor Sustainability Fund toinvest in companies working to solve issues in the environmental field andmade investments in several startups. We will bolster partnerships withmore companies taking on the challenge of addressing environmental
issues in order to contribute to making a better world.

Safety Vision
Our goal is to eliminate traffic fatalities by 2050. In the Transforming
Mobility focus area of our Long-Term Vision, we are working to deliver the
fun inherent to personal mobility as we work to transform the space and• Develop a wide variety of powertrains• Launch 10+ BEV*1
models• Powertrains
compatible withalternative fuels• Exploratory development in new mobility fields• Accelerate exploration efforts (¥10 billion environmentaltech fund)• Accelerate launch of
new businesses contributing to a moresustainable world

Shift toEnergy-Saving /Carbon-Neutral
Facilities• Introduce energy
saving and carbonneutral equipment
to 10+ countries
and regions

Accelerate
Co-Creation• Bolster safety riding
support features• Connect with customers worldwide(4.7 million
Yamaha Motor ID
registrants by 2024)• Expand support andactivities for improving user riding skills(1.6x more YRA*2
participants/3-year
cumulative total)• Begin using carbonfree electricity inJapan

Shift toEnergy-Saving /Carbon-Neutral
Facilities

Safety Riding andPeace of Mind

• Creation of DX promotion personnel(1,200 people by2024)• Foster employee
engagement
globally• Introduce global
engagement­indicators(improve by 10% at
headquarters)solve various societal issues connected to mobility.
We believe that it is essential not only to have technology aid riders but*1 Battery Electric Vihicle: a vehicle in which motors are battery powered*2 Yamaha Riding Academy participantsalso to improve user skills and to connect people to their machines. To that
end, we aim to create a world free of accidents together with our custom-

Progress Made in Fiscal 2022 Toward Realizing Zero Traffic Fatalities by 2050

ers based on our Jin-Ki Kanno × Jin-Ki Anzen Safety Vision centered on

Jin-Ki Kanno × Jin-Ki Anzen Safety Vision

Technology, Skills, and Connectivity. Specifically, we will work on helping
customers identify potential dangers, make sound judgments, skillfully
operate the motorcycle to avoid said dangers, and mitigate damage if sus-Creating a World Free of Traffic Fatalities with Our Customers by 2050

tained; assist in improving riding skills; and collect data on vehicle use andoperating conditions to help prevent human error and environment-related

Technology

SkillsConnectivity• Announced motorcycle model equippedwith the world’s first*3 millimeter wave
radar-linked Unified Brake System andother safety-related features• Implemented safety training and promotional activities*2 worldwide for 130,000
people• T otal of 920,000 connected vehicles sold

accidents. By steadily moving forward along these three axes, users canexperience the joy and Kando that comes from progressing their own skills
and abilities while having fun at the same time.

• 2 .6 million registered Yamaha Motor IDs*3 As of Nov. 8, 2022 per Yamaha Motor research

22

Yamaha Motor Co., Ltd. Integrated Report 2023

From the Director in Charge of Corporate Planningand Financial Affairs

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

We will carry out sure-footed business portfolio management to achieve sustainable growth, establish
stable and sustainable financial foundations, and further improve the profitability of our businesses.
Contributing to Kando Creation ThroughOur Financial Strategy
In the first half of fiscal 2020, the impacts of the COVID-19 pandemic
led to a downturn in demand for our products. We saw a remarkable
reversal of this trend in the subsequent period and through fiscal
2022, with demand surging and remaining strong. One of the reasons behind this shift is that consumer values have changed dramatically worldwide. Amid the rising need to prevent the spread of
COVID-19, there was a marked uptick in interest for our products,
not only as important means of personal mobility but also as items
enhancing leisure pursuits. This development was a real reaffirmation
for me that, even in this extremely harsh social climate, it is Yamaha
Motor’s duty to create Kando for its customers. It is also our mission
to ensure that our Long-Term Vision for 2030 of “ART for Human
Possibilities: Let’s strive for greater happiness” resonates with customers through the products and services we offer. Furthermore, for us tokeep on creating Kando, it is essential that we pave the way for the
next generation of businesses that will contribute to our sustainability
efforts. In line with the portfolio management outlined in our
Medium-Term Management Plan, we must allocate resources appropriately while maintaining our financial health. Doing that to ensure thenext generation of businesses grow steadily is one of my key missions
as the director in charge of Corporate Planning and Financial Affairs.

Resetting Profit Records in the First Year of theMedium-Term Management Plan

Motofumi Shitara
Director and Senior Executive Officer

23

Yamaha Motor Co., Ltd. Integrated Report 2023

In fiscal 2022, costs for raw materials, logistics, personnel, and energy
soared to unprecedented levels. In addition, the semiconductor
shortage continued to have a significant impact on production,
making for a less-than-desirable business environment. Despite suchconditions, we made Companywide efforts to reduce costs andcontrol prices based on our break-even-point management ethos. In
addition, the weak yen provided a noteworthy boost to our earnings,
enabling us to post record highs for net sales and profits for thesecond consecutive year.
Our financial strategy puts emphasis on our cash flows and balance
sheet. In fiscal 2022, we set global cash conversion cycle as one of

our KPIs and conducted appropriate inventory management.
Meanwhile, management and monitoring of return on invested
capital (ROIC) on a business-by-business basis is steadily taking root,
and we have been able to actively allocate investments to our strategic business fields and core businesses. Free cash flow for fiscal 2022
was -¥3.2 billion due to a temporary buildup of stock to restore
supply capacity and an increase in sales finance receivables due tobusiness expansion.
Our ROE of 18.7%, ROIC of 11.9%, and ROA of 11.2% allexceeded the target levels we set for fiscal 2022, which were 15%,9%, and 10%, respectively. The Company also maintained its financial robustness with an equity ratio of 45.9%. In fiscal 2023, we will
work on further inventory management and the curbing of sales
promotion expenses. In addition, we plan to stage a shift to positive
cash flow as the Company selects and concentrates its R&D investments for the future.

Promoting Business Portfolio Management
The basic policy of the current Medium-Term Management Plan is tostrengthen the earning power of our core businesses, invest in new
and growing businesses that contribute to the creation of a sustainable world, and accelerate digital initiatives and co-creation to boost
our growth potential. We have clarified the positioning of our businesses based on anticipated net sales growth rates and ROIC, and areallocating resources in a balanced manner. I will outline our future
policy for strengthening our businesses in line with the three pillars of
our Medium-Term Management Plan.
First is strengthening the earning power of our core businesses.
With the Marine Products business, we will raise investments above
fiscal 2022 levels in order to bolster our production capacity for large
outboard motors and personal watercraft. In the motorcycle business,
we will focus our resources on the premium segment, and in the RV
business, we will concentrate resources on our principal products toimprove profitability.
Second is accelerating investment in new and growing businesses
that contribute to the creation of a sustainable world. In the SPV

From the Director in Charge of Corporate Planning and Financial Affairs

business, we introduced three new e-Bike models in Europe, theworld’s largest market, and are also moving ahead with plans toestablish Europe-based production facilities. For the Robotics business, an investment of some ¥10 billion in scale is how we will seek
to increase production capacity. As for new businesses, the asset
management businesses (mobility services) we established in India
and Nigeria and our automated transport service (low-speed automated vehicles) are entering the sales expansion phase. In the medical& healthcare and agricultural automation fields, we are engaging in
co-creation activities with business partners and promoting efforts
geared toward commercialization.
The final pillar is accelerating digital initiatives and co-creation to
boost our growth potential. This will be tackled across three levels. The
first is Y-DX1: Reform Management Platforms. With an eye on the next
two decades, we are currently revamping mission-critical processes toensure we conduct quick decision-making on a global level. The second
is Y-DX2: Strengthen the Present. Here, we will proactively roll out IoT
at our factories, reform engineering processes, launch products andservices that connect us with our customers, and engage in e-commerce. The final level is Y-DX3: Create the Future. By acquiring dataand promoting collaboration with external services, we will maximize
the experiential value provided to each and every one of our customers.
We have also established R&D roles to make this possible.

Projecting Higher Earnings and Profits for theThird Consecutive Fiscal Year
Our basic shareholder return policy will still continue to emphasize
making consistent and ongoing dividend payments in line with thesize of our cash flows while making investments for future growth.
Taking into account our favorable performance in fiscal 2022, theCompany has decided to pay an annual dividend of ¥125 per share, a
year-on-year increase of ¥10. In fiscal 2023, the Company will also
allocate ¥100.0 billion in resources to our core businesses, strategic
business fields, and platform reforms as investments for growth. We
also plan to pay an annual dividend this year of ¥130 per share, andto purchase ¥30.0 billion in treasury stock. Through these measures,
we anticipate our total payout ratio to be 46.2%, compared with35.7% in fiscal 2022. We hope to achieve our target for the cumulative total payout ratio for the three-year Medium-Term Management
Plan period, which is set at the 40% range.
We expect strong demand for our products to continue in fiscal
2023 and are setting our sights on a year-on-year increase in sales
across all our businesses. We will continue to operate under our
24

Yamaha Motor Co., Ltd. Integrated Report 2023

Introduction

Medium- to Long-Term Strategies

Shareholder Returns(¥)(¥)

600

200
511.5

450

150
46.2％

32.8％
151.9

130

125

115

39.5％
300

150

473.1

445.7

100
35.7％

60
50

0

0
2020

2021

Net income per share (left axis)

2022

2023 (Forecast)

Annual dividend per share (right axis)

Total payout ratio
2020
Total sharebuybacks

—

2021

2022

¥11.0 billion ¥20.0 billion

2023 (Forecast)¥30.0 billion

break-even-point management style after taking into account the
impacts of the ongoing semiconductor shortage and soaring raw
material and personnel costs. In doing so, we anticipate an increase insales and profits for the third consecutive year.

To Our Stakeholders
We are performing well in regard to our Medium-Term Management
Plan KPIs. However, if we exclude the impacts of exchange rates on
our business performance, there is still much more room to build on
with our fundamental strength. Moreover, as I stated earlier, we must
remember our mission to ensure that the “strive for greater happiness” part of our Long-Term Vision for 2030 resonates with ourcustomers through our products and services. It is also imperative that
we allocate resources appropriately while maintaining our financial
health. We will continue to diligently carry out business portfolio
management and prioritize targeted investments in growth fields
from which we can expect high returns in the future. In doing so, wewill look to increase profitability in each of our businesses and further
strengthen our financial footing. In addition, we will allocate management resources accounting for ESG and other non-financial factors inour decisions with a view to achieving carbon neutrality.

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Business Overview

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Data by Business Segment(¥ billion)

Reportable business segments
Other Products
Land Mobility

Net sales

Marine Products

Robotics

Company Total

Financial Services

1,468.2

517.0

115.9

62.2

85.1

2,248.5

87.4

109.2

11.9

17.5

(1.2)

224.9

1,029.7

282.3

139.6

600.9

130.7

2,183.3

Depreciation expenses

40.0

10.8

2.5

3.4

2.7

59.4

Amount invested in equity-method affiliates

22.4

1.8

0.2

2.1

7.9

34.5

Increase in amount attributable to property, plant and equipment
and intangible assets

59.4

20.8

8.0

8.7

5.8

102.6

R&D expenses

77.8

15.7

9.1

—

2.7

105.2

Capital expenditures

56.8

18.3

7.9

—

5.2

88.2

84.8

32.7

26.5

—

20.0

164.1

1,383.4

484.4

89.3

62.2

65.1

2,084.4

North America

159.4

321.6

3.9

38.5

45.2

568.5

Europe

220.4

76.4

11.0

0.9

3.5

312.2

Asia

792.7

25.3

73.8

—

9.4

901.2

Other

210.9

61.1

0.6

22.8

7.0

302.5

Number of employees

39,470

6,356

2,578

724

3,426

52,554

Segment income (loss)
Segment assets

Net sales by region:
Japan
Overseas• The Other Products segment is not included in reportable segments and includes businesses pertaining to golf cars, generators, multipurpose engines, and snow blowers.
• The total for “Segment income (loss)” corresponds to operating income in the consolidated statements of income.
• “Depreciation expenses” do not include amortization of goodwill.
• “Segment assets” and “Increase in amount attributable to property, plant and equipment and intangible assets” include the effect of adopting ASC No.842, “Leases,” from the fiscal year ended December 31, 2022 at North American subsidiaries that apply U.S. GAAP.
• “Number of employees” is the number of full-time employees, and excludes employees seconded from the Company and its consolidated subsidiaries to non-consolidated companies.

25

Yamaha Motor Co., Ltd. Integrated Report 2023

Business Overview

Land Mobility

Introduction

Medium- to Long-Term Strategies

Bringing Joy into Mobility and Fun into
Holidays Together with Our Stakeholders

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Net Sales
Breakdown by Main Product Category (Fiscal 2022)
SPV

Toward 2030, we aim to achieve stable operations and continuous growth

3.6%

RV

under the slogan of Bringing Joy into Mobility and Fun into Holidays

8.4%

Together with Our Stakeholders. Even amid the changing external environ-

Developed market
motorcycle business

22.0%

ment, we will deliver new excitement in mobility based on the theme ofcreating new synergies between the motorcycle, recreational vehicle, andSmart Power Vehicle (SPV) businesses.

Results and Challenges in Fiscal 2022
Net sales were ¥1,468.2 billion (up ¥288.5 billion, or 24.5%, from the previ-

Emerging market
motorcycle businessous year) and operating income was ¥87.4 billion (up ¥18.7 billion, or 27.2%).

66.0%

In the motorcycle business, the value of motorcycles as vehicles for outdoor recreation has been reaffirmed in developed markets, with demand
for motorcycles remaining strong. Unit sales rose in Europe and the U.S.
and the Company achieved profitability in these regions, which has been

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

challenging for the past 10 years. Demand also increased in emerging markets due to the recovery of economic activity, with unit sales increasing in

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

120
5.8%

India, Indonesia, Vietnam, and other countries. On the other hand, ourstock of premium segment models was insufficient due to semiconductor(¥ billion)

1,800
6.0%
4.8%

1,200

80

600

40

component shortages, but the development, manufacturing, and sales

Strengths

divisions worked in unison to minimize the impacts, resulting in an overall• Worldwide customer base that trusts Yamaha technology andproducts• Diverse and global product lineup combining both high performance and quality through our cultivated core technologies• Established global brand position for motorcycles• Pedigree of constantly pioneering new markets by creating new
forms of mobility

increase in sales and profits.
The recreational vehicle (RV) business reported lower earnings due to lower
factory utilization rates at our main U.S. production facility brought on byparts shortages and higher manufacturing costs.
In the SPV business, sales volume fell slightly from the previous year due to

0

0
2021

Net sales

2022

Operating income (right axis)

2023 (Forecast)
Operating income margin

significant production delays also caused by parts shortages stemming from

Risks

Opportunities

the Shanghai lockdown.

26• Expansion of middle-income markets in ASEAN and other emerging economies• Increasing the value of motorcycles as an outdoor leisure activity
in developed markets• Global rollout of models compliant with emissions regulations• Evolution of marketing through digital technologies• Prolonged pressure on product supply networks due to pandemic
and geopolitical risks• Rapid global advance of carbon-neutral regulations• Tighter emissions regulations in each country• Structural shift in the industry from new technologies andcompetitors

Yamaha Motor Co., Ltd. Integrated Report 2023

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

Main competitors

Motorcycles fordeveloped markets

Total demand remained strong amid the reevaluation of the value of motorcycles, and unit sales
increased mainly in Europe and the U.S. in 2022. On the other hand, the shortage of semiconductors andthe impact of the Shanghai lockdown resulted in production constraints with premium segment models.

Honda, Suzuki, Kawasaki, HarleyDavidson, BMW, Ducati, Triumph,
KTM, Aprilia, Piaggio, Kymco

Motorcycles for
emerging markets

Demand increased thanks to the recovery of economic activity, and unit sales increased in India,
Indonesia, Vietnam, and other countries. Still, sales volume in our major markets has yet to return to prepandemic levels. Product supply issues also remain a challenge due to production constraints.

Honda, Suzuki, Kawasaki, Hero, Bajaj

ATVs / ROVs

The North American market accounts for the majority of demand. The Company will continue to face
product delivery challenges due to supply chain disruptions and will work to restore production levels in
response to continued strong recreational demand.

Polaris, BRP, Honda, Kawasaki

SPVs

Supply chain disruptions began to stabilize. On the other hand, the lull in demand has necessitated plansfor production adjustments.

e-Kits: Bosch, Shimano, Brose, Bafang
Complete bicycles: Specialized, Trek,
Giant, Panasonic, BridgestoneBusiness Overview

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional Competitiveness

Facts and Data

Net Sales (FY2022) ¥1,291.7 billion

Motorcycle Business Core Business Progress in Our Medium-Term Management Plan

Management Platforms

Premium Segment Strategy in India and ASEAN Markets to Improve Profitability

The current Medium-Term Management Plan aims to accelerate the pre-In fiscal 2023, we expect demand for motorcycles in developed markets

mium segment strategy and improve profitability by targeting the upper-

to remain firm, especially in Europe, and for motorcycles in emerging mar-middle class in ASEAN markets and India, which is expected to expand

kets such as Indonesia and India to gradually recover. Although we plan torapidly over the next decade.

increase our production and sales, we expect the risks and impacts of

In Indonesia and the Philippines, premium models are low on supply

rising raw material prices and shortages of semiconductors and other com-due to a shortage of semiconductor components, while in India, premium

ponents to continue in 2023. To this end, we expect net sales to increasesportbikes are seeing steady growth. In light of the demand situation into ¥1,391.0 billion, with an operating income margin of 4.8% due to the

ASEAN markets, we believe we will be able to catch up well if the supply

effects of soaring raw material prices and increased SG&A expenses result-of semiconductor components stabilizes. Marketing that integrates theing from the increase in scale.

digital and real worlds is the key to getting customers to purchase pre-In the motorcycle business, we will work together with suppliers tomium offerings. Through digital technology, we will realize our One-to-build a stable supply framework, as well as to pass on price increases andOne Marketing ideal by tailoring communication to each customer

improve cost efficiency.

Medium-Term Priority Themes
Premium Segment Strategy
Focus on strategic segments in major Asian markets
Unit sales growth in strategic segments (compared to fiscal 2021)

2.0 X
1.3 X
1.5 X

India: Premium sport modelsIndonesia: Premium AT modelsPhilippines: Premium AT models 

Integrated Marketing (Digital × Real World)
Strengthen customer touchpoints with digital tools
Realize One-to-One Marketing
Expand sales of connected motorcycles*

according to their values and purchasing trends, expanding customer

Fiscal 2021 500K units

touchpoints, and strengthening our relationships with them. With One-to-

Fiscal 2024

2.5M units

Promote store visits and after-sales support using smartphone apps

One Marketing, sales of connected vehicles are targeted to grow to 2.5

Strengthen premium brand shops

million units by fiscal 2024. In addition, while we initially planned to

India: Open more Blue Square stores

double the number of premium brand stores in India, which act as our

Number of dealerships: approx.

actual points of contact with customers, we were able to triple the number

2x (compared with 2021)* In Indian, ASEAN, and Taiwanese markets

of stores (compared to 2023), exceeding our plans.

Topics27

Yamaha Motor Co., Ltd. Integrated Report 2023

The XMAX 300
Sport Scooter

The TY-E 2.0
Electric Trials Bike

The E01
Electric Scooter

Upgraded for the first timesince its 2017 launch, the
XMAX 300 is a global model
equipped with BLUE CORE
engine and enhanced connected features.

The TY-E 2.0 was developed
as one uniquely Yamaha
approach to achieving carbon
neutrality. Under its FUN x EV
development concept, theTY-E 2.0 aims to provide more
fun than internal combustion
engines by taking advantageof the traits unique to electricvehicles, such as powerful
low-down torque and strong
acceleration.

The E01 is an electric scooter
featuring usability equal to a
50-125cc gasoline-powered
scooter and performancesuitable for interurban
mobility. Demos are being
conducted at various locations in Japan to test market
reception to electric scootersof its class with fast-charging
capabilities.

Business Overview

Introduction

Medium- to Long-Term Strategies

Net Sales (FY2022) ¥123.3 billion

Recreational Vehicle (RV) Business Core Business 

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Message from Management

Progress in Our Medium-Term Management Plan Enhancing Brand Strength in the Recreational Segment andEstablishing a Sustainable and Profitable Business Structure
The current Medium-Term Management Plan calls for enhancing our brandmake as many customers as possible experience the appeal of Yamaha

strength in the recreational segment and establishing a business structure that

Motor products firsthand. Rallies and other events centered on our main-

generates sustainable profits. We will aim to take the Company to its next stage

stay RMAX model are being held to provide opportunities for current fansof growth while strengthening its foundations.

as well as those yet to experience the fun offered by Yamaha Motor. By

The COVID-19 pandemic reaffirmed the value of not only motorcycles but
also recreational vehicles in developed markets. However, while demand contin-

improve brand value and strengthen profitability.
In fiscal 2023, we will work to quickly resolve the disorder at our U.S.

in lower factory utilization rates. Companywide countermeasures are underway,

production bases and aim to achieve net sales of ¥141.0 billion and anwith the recovery of current production capacity taking top priority. In 2023, we

operating income margin of 2.8%. In addition, we launched the New

will achieve a recovery of our production levels and simultaneously tackle the

Mobility Project in fiscal 2022, in which we aim to leverage our strengths

supply issues brought into the foreground by COVID-19 from a long-term per-in the RV and golf car businesses to cultivate new mobility demand andspective and in a cross-functional manner to build adaptability to future demand

develop applications outside the scope of our existing product lines in step

fluctuations.

with growing demand for convenient everyday use on both public andprivate roads.

our brand by using diversified digital technologies and practical activities to

Net Sales (FY2022) ¥ 55.3 billion

SPV Growth Business Progress in Our Medium-Term Management Plan Capturing Market Expansion and Achieving Growth
Through Synergies between Customized e-Kits and New Yamaha-Brand Models
The SPV business’ product portfolio centers on electric drive units, but also

In addition, we introduced mid- to high-end complete bicycle models inincludes Yamaha-brand electrically power-assisted bicycles and wheelchairs.

the full-suspension e-MTB, gravel (tubed), and trekking segments in JapanThe business is designated as a growth business in the Medium-Termand the United States. We will promote global expansion in the future. As

Management Plan with the goal of business growth and scale expansion.

for electric wheelchairs (the JW brand in Japan), we intend to increase the

The global COVID-19 pandemic caused a significant shift in human mobility

rate of sales expansion by introducing self-propelled wheelchairs, which

patterns toward focusing on closer destinations and avoiding crowded situa-

account for the majority of demand in Japan, to overseas markets, wheretions. This has led to a sharp increase in demand for compact personal

power-assisted wheelchairs have traditionally been the mainstay.

mobility. In addition, rising environmental awareness has driven growth in
the e-Bike market in Japan, a trend expected to continue.
As for progress in fiscal 2022, one of our priority themes with our electri-

In fiscal 2023, we expect the market to continue to grow moderatelyfrom a medium- to long-term perspective as the issues of parts shortages
and logistics delays improve. However, since inventories are slightly over-cally power-assisted bicycles has been to supply new e-kit customers withstocked, we will manage inventory levels appropriately through manufac-

customized models, something we began successfully. Following the launchturing adjustments.

of our flagship e-MTB models, we have also started supplying a compact
and lightweight mid-range drive unit suitable for various categories.

28

Yamaha Motor Co., Ltd. Integrated Report 2023

Executive General Manager ofSmart Power Vehicle Business Unit,
Land Mobility Business Operations

sharing the fun of recreational vehicles with more customers, we aim toued to grow in 2022, supply chain disruptions at U.S. production sites resulted

In marketing, we are working to increase the number of core fans ofNobuharu Takahashi

Preparing for the Next Breakthrough and Adapting toChanges in the Environment While Fulfilling Our
Medium-Term Goals
Fiscal 2022 was our first year as a growth business under our MediumTerm Management Plan, and there were significant disruptions in manufacturing throughout the industry due to a combination of global
semiconductor supply shortages, supply chain disruptions caused by
COVID-19, and supply delays for bicycle-specific components. As outlined in our strategy in the Medium-Term Management Plan, we havebeen doing our utmost to address these challenges while acquiring
new customers, launching complete Yamaha-brand bicycles globally,and developing new drive units and bicycle models. We have also
made steady progress in increasing manufacturing capacity, beginning
global manufacturing of drive units, and expanding new sales channels
for our JW (Joy Wheel) line of electric wheelchairs.
In fiscal 2023, we will move from preparation to execution to
produce results that will last into fiscal 2024, the final year of our
Medium-Term Management Plan. Due in part to the reactionary effectof manufacturing disruptions in fiscal 2022, market inventories haverecently seen a sharp increase, necessitating adjustments to manufacturing plans. Despite this environment, the market for electricallypower-assisted bicycles continues to grow steadily. We will adapt flexibly
and quickly to the various changes in the environment within growthmarkets and fulfill our medium-term goals while making preparations
to make a great leap forward after overcoming our current challenges.
From fiscal 2023, we will launch the PAS Drive Unit CompetitivenessProject, a Companywide effort transcending business unit boundaries
to further accelerate the strengthening and growth of the SPV businessas a whole. We have pride in our responsibility as Yamaha’s department that stands at the forefront of our electric products for consumers, and are confident that we can double or even triple our overallcapabilities as we move forward by having every member of our operation “assist” one another toward our goals.

Business Overview

Marine Products

Introduction

Medium- to Long-Term Strategies

Reliable and Rich Marine Life—A Business
Further Increasing the Value of the Ocean

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Net Sales
Breakdown by Main Product Category (Fiscal 2022)

The Marine Products business has built a world-class presence in themarket with its marine engines, boats, personal watercraft, and swimming
pools. Under our Long-Term Marine Vision to become a business further
increasing the value of the ocean, we aim to strengthen our high-profit
structure and establish foundations for sustainable growth.

Personal watercraft,boats, etc.

Outboard motors

43.7%

56.3%

Results for Fiscal 2022
Net sales were ¥517.0 billion (up ¥125.9 billion, or 32.2%, from the previous year) and operating income was ¥109.2 billion (up ¥32.4 billion, or
42.2%). With outboard motors, the outdoor recreation boom in developed markets continues, and demand for large outboard motors—especially those with 200 horsepower or more—remained strong. Despite theeffects of shipping container shortages and disruptions at U.S. ports, thesituation gradually improved and sales volume increased. Demand from

Toshiaki Ibata
Chief General Manager of Marine Business Operations

the tourism sector also recovered in emerging markets.
For personal watercraft, strong demand continued, but supply constraints due to parts shortages and supply chain disruptions persisted,

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

600

19.6%

21.8%

21.1%

(¥ billion)

120

450

90

300

60

150

30

resulting in a decline in unit sales. Overall, the Marine Products businessposted higher sales and profits thanks to the positive effects of the weak
yen and progress in passing on price increases after the third quarter of theStrengths

fiscal year.
• Unquestioned product reliability centered on integrated control
technologies• Overall business strength supported by wide-ranging businessdomains and an expansive product lineup• Sales and service capabilities spanning the global market

02021
Net sales

2022

Operating income (right axis)

2023 (Forecast)
Operating income margin

Risks

Opportunities

Overview of Primary Products and Main Competitors29• Growing demand for large outboard motors centered on developed markets• Expansion of peripheral equipment business due to advanceswith integrated control technologies• Changing sense of value pertaining to marine recreation spurredby staycation demand• Dramatic market changes against the backdrop of climatechange, rapid technological innovation, etc.
• High labor and raw material costs• Rapid changes in the global economy, exchange rates, regulations, etc.

Yamaha Motor Co., Ltd. Integrated Report 2023

Market and conditions at Yamaha Motor

Main competitors

Outboard motors

High demand for sport fishing and family recreation continues, especially for large models in developed markets. We will increase production capacity to meet the increased demand.

Mercury, Suzuki, Honda, Tohatsu

Boats

The domestic boat market is stable and we are offering pleasure-use
with more added value. With Sea-Style, our membership-based rental
boat club, and other service-based businesses, we will strengthen ourdevelopment of services in line with customer preferences.

Yanmar, Toyota, Suzuki

Personal watercraft

The North American market accounts for the majority of demand andis growing in scale yearly as uses for personal watercraft broaden.
We will strengthen development of more versatile products.

BRP, Kawasaki

0Business Overview

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Net Sales (FY2022) ¥517.0 billion

Marine Products Core Business Progress and Challenges in Our Medium-Term Management Plan
For the duration of the current Medium-Term Management Plan, our busi-

Growth Strategies: In promoting our Marine CASE strategy, we began

Enhancing Our Business Competitiveness: Production of the F450A

ness policy is to expand the value we offer as well as maintain andselling a remote monitoring system to track boat conditions from custom-flagship model was started to bolster our lineup of large outboard motors.

strengthen our high profit structure through the execution of our Marine

ers’ mobile devices for Connected; for Electric, we launched the HARMO

Furthermore, to meet the high demand, we are continuing to increase pro-

CASE strategy. The Marine Products business is working according to threeelectric boat control system in Europe, and are conducting various real-

duction capacity for outboard motors, personal watercraft, and boats.

strategic pillars: Growth Strategies, Enhancing Our Businessworld trials to grow awareness of the system both domestically and inter-

Competitiveness, and Reinforcing Our Business Foundations.

nationally. In the areas of Autonomous and Shared, we are also developing
products and services to provide our customers with even greater comfort

Reinforcing Our Business Foundations: To accelerate development andstrengthen R&D roles, we expanded our development bases in Japan andthe U.S.

and peace of mind.

Future Measuresenhance the Yamaha brand’s position as a maritime industry leader by

Furthermore, in areas targeted for growth, we will develop new digital

Demand for large outboard motors, personal watercraft, and otherproducts—especially in developed markets—is expected to remain high inplatforms in the boat-sharing domain in response to the globally expand-leveraging its full strength with the technological capabilities and intellec-

2023. We will maintain production at full capacity and implement a large-

ing market for vehicle-sharing businesses by collaborating with Skipperi, atual properties acquired through its various operations as it aims to realize

scale expansion to augment production capabilities over the next several

Finnish IT startup in which Yamaha Motor invested this year.

the “reliable and rich marine life” outlined in the Marine Long-Term Vision.

For the immediate future, we forecast net sales of ¥514.0 billion and anyears. In addition, based on the product development structure bolstered
last year, we will strengthen our lineup of outboard motors, personal

operating income margin of 21.8% in fiscal 2023—which, if achieved, will

watercraft, and boats. By integrating new CASE-related offerings into thisbe the third consecutive year of record-high net sales and operating

lineup, we will deliver more attractive products and services that meet theincome—as the effects of passing on price increases from the second halfneeds of our customers.

of 2022 will fully materialize. The Marine Products business will further

Growth Strategies
Expand the range of value we offer

Marine CASE

Transform our customers’ marine lifestyles intoexperiences with greater comfort andpeace of mind

Connected

Autonomous

SharedElectric

Comfort

Comfort / Easy

Experiences

ComfortReliable and rich marine life:

Enhancing Our Business Competitiveness
Maintain and strengthen
our high-profit structure

Bolster large outboard lineups

Increase the sales ratio of large outboard models to 30%

Increase production capacity

Large outboard motors+20%

Personal watercraft+27%

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

Maintain our high-profit structure and allocate resources for
growth at the same time30

Yamaha Motor Co., Ltd. Integrated Report 2023

Marine Long-Term Vision

Toward further increasing thevalue of the ocean

Business Overview

Robotics

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Putting Kando into the Hands of Clients with
Robotics—Delivering Optimal Solutions

Net Sales
Breakdown by Main Product Category (Fiscal 2022)

As one of Yamaha Motor’s businesses, we aim to contribute to solving
societal issues through value propositions tailored to our clients’ problems,

Yamaha Robotics Holdings
Co., Ltd.

including optimization of entire factories.

26.2%

SMT-related equipment,
industrial robots,
unmanned systems

Results for Fiscal 2022

73.8%

Net sales for fiscal 2022 were ¥115.9 billion (down ¥4.4 billion, or 3.7%,
from the previous year), and operating income was ¥11.9 billion (down¥5.7 billion, or 32.6%). While demand from fiscal 2021 continued in thefirst half of the year, demand slowed sharply in the second half due to economic stagnation in China, the largest market, including a prolonged lockdown. However, automotive sector investments in Europe and the U.S.,
the China Plus One strategy, and capital investments aimed at shifting todomestic production kept demand strong.
With surface mounters, sales from large investments for automotive

Hiroyuki Ota
Chief General Manager of Solution Business Operations

systems and other sectors brought steady sales growth in Japan and otherand South Korea, which resulted in an overall sales decline. It was a similar

Strengths
Opportunities

150(¥ billion)

20

14.7%
10.3%

120

10.9%

16

90

12

result, the Robotics business as a whole posted lower net sales, and profits60

8also fell due to mounting costs for parts and logistics. On the other hand,30

4

ing equipment, with sales falling in China, Taiwan, and other markets. As a

• Growing need for automation due to labor shortages in Japanand rising labor costs in emerging markets• Progression of digitalization accompanying the development of
new fields, such as IoT, 5G, and CASE vehicles, and advances in
automation• Expectations for smart agriculture and logistics efficiency throughunmanned aerial vehicles (helicopters and drones)• Accelerated expansion of manufacturing sites through supply
chain restructuring(¥ billion)

developed markets, but demand has been cooling down in China, Taiwan,
story for the Company’s industrial robots and semiconductor manufactur-• High-quality, low-cost, and timely provision of products andservices through unified production, sales, and technology
operations• A mixture of technologies and sales network via business integration with YRH and provision of complete implementation
solutions for clients• Co-creative capacities founded on strong relationships with business partners

Net Sales / Operating Income / Operating Income Margin

as we head further into China Plus One policies taking over, new markets
are emerging in Asia and elsewhere.

0
Net sales

2021

2022

Operating income (right axis)

2023 (Forecast)
Operating income margin

Risks

Overview of Primary Products and Main Competitors

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

Yamaha Motor Co., Ltd. Integrated Report 2023

Market and conditions at Yamaha Motor

Main competitors

Surface mounting
technology (SMT)related equipment

Demand continues to grow for printed circuit boards, including those for IoT, 5G, and CASE applications. While2022 was a period of stagnation, we are pursuing both product and service commonalities under our platform
strategy to expand our business scale and reinforce our profitability. Demand continues to grow for printed circuitboards, including those for IoT, 5G, and CASE applications. We are pursuing both product and service commonalities under our platform strategy to expand our business scale and reinforce our profitability.

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

Industrial robots(factory automation)

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

Epson, Mitsubishi, Denso,
IAI, Inovance

Unmannedindustrial-use­helicopters and drones

We are launching multirotor drones in addition to our proven unmanned helicopters that will contribute tolaborsavings in agriculture. We will also promote expanded applications for unmanned vehicles in fields outsideof agriculture, such as logistics and field surveys.

DJI

Semiconductor postprocessing equipment

As with SMT, demand for power and advanced logic semiconductors did see some stagnation in 2022, but is
expected to expand in the medium to long term. We are working to further build our client base by building a seamless collaborative system that offers one-stop proposals that cover the entire semiconductor manufacturing process.

ASM, Besi, K&S, Towa0

Business Overview

Introduction

Medium- to Long-Term Strategies

Progress and Challenges in Our Medium-Term
Management Plan

Future Measures

In the current Medium-Term Management Plan, we have made 1) maxi-

tion and other new fields, and accelerating market development in Asia, wemizing synergies as a total supplier and 2) strengthening manufacturing,

will expand our production area by 2024 as planned. At the same time, wesales, technology, and service structures our key themes.

will establish a sales base in Singapore to oversee Asia and strengthen our

Maximizing Synergies as a Total Supplier: We have assembled a spe-sales capabilities with a four-pillar arrangement, adding Asia to China, Europe,cialized sales team to work on a client basis to acquire major accounts andand the United States. In addition, we will strengthen our brand power as acreate synergy effects as a total supplier in terms of sales. Regarding prod-

total supplier through cross-selling, developing new products based on ouructs, we are also introducing platform models for surface mounting equip-

platform strategy, and automation solutions centered on linear conveyors.

ment and developing cobots in our industrial robots business.

Furthermore, we will launch new models of industrial-use helicopters anddrones, for which sales have been increasing due to broader applications andStructures: To expand our business, we have successfully put our plan in

the acquisition of a distributor business. New unmanned helicopter and agri-

motion to increase production area by 180% by 2024.

cultural drone models will promote smart agriculture and help reduce the useof pesticides and chemical fertilizers while contributing to higher crop yields.

Priority Medium-Term Themes

Support the Foundation of a Digital World, Further
Expand Business Scale as a Growth Business, andStrengthen Profitability
Maximizing Synergies as a Total SupplierStrengthen product competitiveness with platform strategy• Focus on introducing new models in the high-speed SMT model domain• Release innovative features for maintaining quality• Enter the cobot market

Expansion and remodeling of Hamamatsu Robotics Office to increase capacity

Acquire major accounts through cross-selling• Assemble dedicated client-based sales team and offer all-inclusive solutions

Next-generation industrial
unmanned helicopter
FAZER R AP

Strengthening Manufacturing, Sales, Technology,
and Service Structures
Expand factory production area by 1.8x
• Begin operations in new factory area in 2024
• Technologies, sales, and services tailored to client worksites

Expand thebusiness

32

Yamaha Motor Co., Ltd. Integrated Report 2023

Facts and Data

In preparation for greater automation needs, the development of digitaliza-

Strengthening Manufacturing, Sales, Technology, and Service

Increase unit priceper projectManagement Platforms

Message from Management

Robotics Growth Business Raise no. ofbusinessnegotiations

Activities for Greater
Functional Competitiveness

Raise rate ofplaced orders

YMR-II, a new model in the
YMR series of industrial
multirotor drones

Ayako EgashiraExecutive General Manager ofRobotics Business Unit,
Solution Business Operations

United under the Business’ Vision to Carry Out the
Growth Strategy
Although 2022 was our first year as a growth business under the
new Medium-Term Management Plan, it got off to a rough startagainst a backdrop of slowing global semiconductor demand and acooling Chinese market. Amid these developments, we promoted
cross-selling, in which account sales staff directly approach clients tosolve their problems, as well as began taking on the challenge of
securing new customers and entering new fields by introducing aplatform model for surface mounting equipment, all in order to lay
the foundations for business growth.
2023 will be the year we will work through our strategy toachieve sustainable growth. In addition to introducing competitivemodels and features, a Southeast Asian sales company will be established in Singapore to build a uniform global sales and service structure in the growing Southeast Asian and Indian markets, with the
China Plus One strategy in mind. Furthermore, in addition to increasing production capacity by expanding and renovating manufacturing
plants, we aim to achieve 50% automation of plants by 2030 toimprove productivity and ensure consistent quality.
We are committed to providing products and services that enable
our clients to realize the future they have envisioned in a faster andfreer way by pooling together the best technologies in the field of
robotics. We will embody that vision, commit to working together asa unified entity, and strive to achieve growth as a business.

Business Overview

Financial Services

Introduction

Medium- to Long-Term Strategies

Providing Unique Services That Strengthen Ties
with Customers and Dealers

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Finance Receivables Breakdown(Fiscal 2022)

In line with the business environment and regulations, we aim to securestable earnings while strengthening ties with markets and customers by

Wholesale credit

developing and tailoring our business to each region, such as collaborating

24.0%

with sales companies and forming alliances with local partners.

Retail bonds

Results and Challenges in Fiscal 2022

76.0%

In fiscal 2022, our balance of receivables grew to ¥504.5 billion, up 34%
from the previous year. This was due to a recovery in the size of wholesale
financing receivables resulting from improved market inventory conditions, asteady increase in retail financing receivables, as well as the impact of foreign exchange rates. On the other hand, operating income saw a relative
decline to ¥17.5 billion due to the absence of the one-time increase in revenue that was seen in the previous year. Still, our operating income margin
and ROA remained high at 28.2% and 4.0%, respectively. In the current

Jeffrey Young
Executive Officer,
President & CEO of Yamaha Motor Finance Corporation,
Chairman of Yamaha Motor Finance Corporation, U.S.A.

business environment, rising interest rates and economic uncertainties inmajor markets made it more challenging to maintain loan balances and loan(¥ billion)

that backdrop, we further strengthened coordination with the product sales(¥ billion)

600

30
5.3%

quality, as well as to address late payments and contain funding costs. Against
400

20

4.0%
2.9%

businesses in each region to attract new customers and ensure that they continue to use our financial services. In addition, we developed activities aimed at
new business development, such as launching finance businesses in new mar-Strengths

Outstanding Receivables / Operating Income / ROA

200

10

kets, expanding the range of products that can be financed, and establishing• Convenience of one-stop service from product sales throughcaptive finance and the peace of mind that comes with monobrand service

a global business structure to strengthen our foundations.

Future Measures
In fiscal 2023, we expect to expand the scale of wholesale and retail financereceivables, as well as financial service businesses. These include insurance and an

0

0
2021

Outstanding receivables

2022

2023 (Forecast)

Operating income (right axis)

ROA

ROA = Operating income ÷ {(Outstanding receivables at end of previous fiscal year +Outstanding receivables at end of current fiscal year) ÷ 2}

Opportunities

insurance consortium set up in Latin America intended to increase the balance of• Expansion of marine product financing• Strengthening of initiatives in service businesses associated withfinancing, such as insurance, extended warranties,
consortium, etc.
• New markets to develop, e.g., Europe, Latin America

receivables to ¥525 billion, a 4% increase year on year. Meanwhile, we expect
operating income to decrease from the previous year to ¥15.0 billion due to anincrease in funding, late payment costs associated with the possibility of higher
interest rates, and increased activity expenses for business expansion and DX promotion. With this in mind, we will still aim to maintain an ROA of 3%. We willcontinue to strengthen coordination with product sales businesses in each region

Risks

and expand from our mainstay of motorcycle sales financing to providing financ• Decrease in sales of key products due to economic trends, etc.,
and increase in late payments and bad debts from customers• Decrease in demand and intensified competition due to significant interest rate hikes, etc.
• Operational risks, fraud, etc.

ing for marine products and more. We will also strive to expand into insurance• Regional expansion (Latin America, Europe, etc.)• Expansion of business domains (i.e., marine products)

business management system as well as sharing the intellectual and human• Establishment of a global business operation system

resources of the entire Group, we will create an environment where customers• Utilization of fintech

sales and service usage. At the same time, we aim for the sustainable growth
Yamaha Motor Co., Ltd. Integrated Report 2023

Build a System for Global Businessand Aim for ROA in the 3% Rangeand other peripheral businesses. By establishing and strengthening our global

can easily purchase our products and services, thereby leading to higher product33

Priority Medium-Term Themes

and expansion of the Financial Services business.

Business Overview

New Businesses

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

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

Co-creation

Local platform operators

Societal Issues

Core Technologies

Focus Areas

Job creation

Asset management expertise cultivated in the
Financial Services business and connected
technologies

Emerging markets

As part of our medium- to long-term growth efforts, we are developing new
businesses that have societal and economic value. These businesses contribute to the three focus areas comprising our Long-Term Vision for 2030—
Advancing Robotics, Rethinking Solution, and Transforming Mobility—andare positioned as strategic business fields in the Medium-Term Management
Plan. These new businesses are aimed at helping us resolve societal issues,
strengthen structures to create future core businesses, and generate sales.
By calling on the technologies and expertise we have garnered to date andco-creating with our partners, we will promote the creation of new value inthe unique style of Yamaha and accelerate business development that contributes to achieving the United Nations SDGs.

 sset Management Business: Aiming for Continuous Growth While Carefully Selecting and Allocating ResourcesA
to Solve Societal Problems
Our mobility services business operates by utilizing products for mobility asa service, such as for transporting goods or people. The asset managementbusiness, which began operations in India and Nigeria, has expanded to acertain degree in both countries through collaboration with leading local
platforms, confirming the need for steady business expansion. Throughthis project, we will not only create jobs in localities, a significant focus wehave long had, but also be much more conscious of addressing inadequa-

Transition to sales acquisition stage
Mobility services / Low-speed automated vehicles

Push initiatives toward commercialization
Medical & healthcare / Agricultural automation

cies in urban traffic environments. This includes reducing traffic accidents
through education and skills development for motorcycle riders, andreducing accidents and CO2 emissions through capacity building for vehicle
maintenance, mechanic training, and other measures. As we move forward, we will aim for steady growth through the accumulation of quality
assets by strengthening collaborative relationships with our partners while
carefully selecting recipients for investments, such as assets for lease orcapital from our partners.
In addition to the asset management business, we are also looking totake our last-mile delivery business in East Africa into other regions. We
also aim to grow the scale of our business to approximately ¥10 billion insales during the Medium-Term Management Plan’s three-year period. The
Company is working to create an environment for further enriching peo-

Accelerate business development

Aim for ¥30.0 billion in
net sales by fiscal 2024

34

Yamaha Motor Co., Ltd. Integrated Report 2023

ple’s lives through mobility asset management that calls on its motorcycle
business expertise, thereby helping address societal issues, such as job creation. In the last-mile delivery business as well, Yamaha Motor aims toenergize the local economy and help create jobs for professional riders byoffering motorcycle-based logistics services.

CourieMate, a Ugandan subsidiary, began real-world trials for last-mile delivery services
in Tanzania.

Business Overview

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Low-Speed Automated Vehicles
Aiming to create added value through mobility and enrich people’s lifestyles
Societal Issues

Mobility needs

Co-creation

Local governments, Producers

Core Technologies

Focus Areas

Chassis development expertise garneredthrough golf cars

Automation of indoor/outdoor transport at plants
Mobility for people with little to no access to public
transportation, such as seniors, children, and residents ofdepopulated areas

Officially Launched Service for Transporting Items in Factories | Further Promoting Low-Speed Transportation in Cooperation with National and Local Governments
By establishing automated driving technologies under specific conditions,
we aim to save labor in logistics and solve mobility issues in areas without
access to public transportation.
In goods transportation, we established automated driving technology
for the specific conditions of a factory and officially began providing
unmanned automated transport services, which had only been run in trials
up to this point, through eve autonomy, Inc., a joint venture we have with
Tier IV, Inc. This is the first commercial service in Japan for automatedtransport using self-driving EVs, and as of the end of December 2022, 18
eve auto services were in operation at 11 companies. Going forward, theCompany aims to expand its business by strengthening its sales operation
and responding to the growing need for automation in logistics.

In transporting people, the Green Slow Mobility project for using small,slow-moving vehicles is gaining recognition as a first/last-mile mobility
solution. 30 domestic municipalities participated in proof-of-concept trials
in 2022, bringing the total number of participating municipalities to 106,
and a total of 33 units were sold in 2022. To reach Level 4 vehicle autonomy on public roads, continuing these proof-of-concept tests is of utmost
importance. While continuing to cooperate with national and local governments, we will also strengthen our sales and service operations throughcollaborations with other entities, such as the Japan Automobile
Federation (JAF), with which we began a partnership in 2022.
We are also continuing our joint research into low-speed mobility’seffects on personal mobility and health (which began in 2021) with the
Chiba University Center for Preventive Medical Services, which specializes

in preventive care for seniors. We will continue to examine whether lowspeed mobility improves the quality of life of older adults and reduces
social security expenses in cities. We will also clarify the relationshipbetween low-speed mobility and preventive care and promoting healthy
lifestyles, which has already begun to show some positive effects. Alongwith solving critical societal issues in transportation, health, and industrial
development, we aim to achieve sales of ¥5.0 billion in the transportation
space for people and goods during the current three-year Medium-Term
Management Plan.

For further details on the impacts of these initiatives,
please see Initiatives to Provide Low-Speed Mobility Services.

Medical & Healthcare
Reducing the burden on researchers with reliable technology andcontributing to advances in the medical field
Societal Issues
Preventive medical andhealthcare

Co-creation

Industry–academia collaborations

Core Technologies

Focus Areas

Ultra-high-speed, high-precision picking
and imaging technology for surface
mounting systems

Medical and research equipment
Research and drug discovery automation

Entering the Antibody-Related Service Business
Protein microarrays, which have been developed at the Translational Research Center of Fukushima Medical
University (FMU), to which the first CELL HANDLERTM was delivered in 2017, are a technology that enables
comprehensive profiling of antibodies present in individuals. In a joint study conducted with FMU, we wereable to find biomarkers that lead to the early detection of cancer and neurodegenerative diseases. Preparations
are being made to develop businesses using these biomarkers.

Agricultural Automation
Achieving increased productivity, labor savings, andautomation in industrial fields
Societal Issues

Labor shortage in agriculture

35

Yamaha Motor Co., Ltd. Integrated Report 2023

Co-creation

Producers

Core Technologies

Focus Areas

Chassis development expertise
Robotics expertise

High-value-added crop industry
Advanced countries withhigh labor costs

Collaborating with Agri-Startups and Adopting a Strategic Approach for the Value Chain
In saving labor in the agriculture field, we aim to provide solutions that combine our chassis development androbotics expertise with AI, and maximize value through the cultivation, storage, and distribution chain. In
2022, we conducted development and proof-of-concept testing through collaborations, including the dispatchof engineers to companies we invested in. In the U.S., we are strengthening our collaboration with investee
companies to build supply and service systems with an eye on business expansion during the next MediumTerm Management Plan.

Climate Change Initiatives

Introduction

Medium- to Long-Term Strategies(Disclosure Based on TCFD Recommendations)

Activities for Greater
Functional CompetitivenessManagement Platforms

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

Facts and Data

Heiji Maruyama
Director and Managing
Executive Officer

Please visit our corporate website for more information on Environmental Plan 2050.

Governance System 
The Board of Directors formulates policies on dealing with issues concerning sustainability and regularly reviews their implementation status. With

Board of Directors

regard to issues concerning sustainability, the Board of Directors oversees
the Sustainability Committee, which meets five times a year and is chaired

Supervision of climate change response

Supervisoryby the president and chief executive officer and comprises executive offi-

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

cers appointed by the Board of Directors.
For these issues, we positioned the environmental field in particular as

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

an important area to be tackled by management and established theEnvironment Committee, chaired by an executive officer in charge of envi-

Environment Committee (six times/year)
Chair: Executive officer in charge of promoting environmental activities
Members: 23 persons responsible for promoting activities in each business anddivision (progress reports by three chief general managers of business operations)ronmental activities. The Environment Committee meets six times a year to
discuss policies concerning the environment and vision for the future,assess Environmental Plan 2050, and conduct annual reviews of each oper-

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

ating division’s progress against its targets. The committee reports its findings to the Board of Directors at least twice a year.
Environment Promotion Meeting (monthly)

The convening of the Sustainability Committee was changed from threetimes a year to five times a year in order to bolster efforts toward carbon

Persons responsible for Companywide promotion

neutrality. The structure of the Environment Committee has beenenhanced from 17 members responsible for promoting activities in eachbusiness and division in 2022 to 23 members, including the general managers of business divisions, and the number of meetings has been changed

Information management

Companywide policy

Environmental investment

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

Executionfrom three to six times a year. In addition, KPI performance for materiality
issues, including climate change, and ESG external evaluations are linked

Each business division

to the remuneration of executives and other senior managers to encourage effective initiatives.
Please see page 49 for details on our promotion structure forsustainability issues unrelated to the environment.

Land Mobility
Marine Products
Solution Business

Procurement Center
Manufacturing
CenterManufacturing
Technology Center

Technical Research &Development Center
Corporate Planning &Finance Center

Bases andsubsidiaries

Promotion managers

Promotion managers

Promotion managers

Promotion managers

Execution

Execution

Execution

Execution

Carbon Neutral Technology Review Subcommittee

36

Yamaha Motor Co., Ltd. Integrated Report 2023

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

Climate Change Initiatives (Disclosure Based on TCFD Recommendations)Introduction

Climate Change Risk and Opportunity Assessment and Financial Impacts In developing its strategy to achieve carbon neutrality by 2050, Yamaha Motor refers to the SSP1-1.9, SSP1-2.6, and SSP3 scenarios of
the Intergovernmental Panel on Climate Change (IPCC)’s 6th Assessment Report and Nationally Determined Contribution (NDC) scenarios
in order to address uncertainty (risk) factors. We have identified and assessed short-, medium-, and long-term risks and opportunities as

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data


Short
term: Impacts our immediate financial performance (including the potential to emerge over a timeframe of 0–3 years)
Medium term: Requires significant adjustments to our strategy (including the potential to emerge over a
timeframe of 3–6 years)
Long term: Fundamentally affects the viability of our long-term strategy and business model (including thepotential to emerge over a timeframe of 6 or more years)

well as their impact on our businesses, strategies, and finances.
Type

Opportunities

Physical Risks

Transition Risks

Policy and
legal
SSP1

Policy and
legal
SSP1

Technology
SSP1

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

PeriodShort
term

Increase in operating costs due to introductionof carbon tax
The Company manufactures motorcycles, its corebusiness, at 27 bases in 16 countries, mainly in
the ASEAN region. Energy from fossil fuels isused in processes such as casting and painting.

Mediumterm

Status of Response
To respond to the tightening of emissions regulations in each country, the Regulations and Certification Division andthe Local Sales Division obtain the latest information on regulatory tightening and report their findings to the R&D
Division.
As a countermeasure to minimize the risk of a sudden tightening of regulations in the ASEAN region, India, andother markets, the Company is developing a global model proprietary products which complies with current regulations and conforms to European standards.
To respond to the tightening of energy standards in each country and region, the Production Technology Center andthe Environmental Facilities Division collect information on regulatory trends related to energy costs in each country
and region.
Energy-related investment plans and renewable energy procurement methods are discussed and examined by theEnvironment Committee and reported to the Board of Directors upon deliberation by the Management Committee.

Financial Impacts
In promoting the growth of existing businesses and the development of new businesses, the Company plans tobudget ¥121.0 billion in 2023 for growth strategies and research and development geared toward adaptation andmitigation measures to address climate change.
Representing a major impact of climate change on the Company, use-phase emissions account for 80% of CO2 emissions for the entire supply chain, of which 58% come from motorcycles. As Yamaha Motor’s core product, motorcycles
account for 57% of total sales, and the R&D costs required to comply with emissions regulations will have asignificant impact on the Company’s business operations.

Tax burden increase assuming a ¥10,000/metric ton carbon tax on CO2 emissions from business activities, calculated
based on fiscal 2022 emissions: ¥4.7 billion/year** Carbon Pricing Leadership Coalition (CPLC) Report: from 2030 carbon tax price forecasts

Risk of difficulty in procuring raw materials due
to rising demand for rare earth elements as
manufacturers accelerate their electrification efforts

Short
term

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

–Markets
SSP1

Risk of decreased sales of motorcycles withinternal combustion engines (ICE) due to a ban
on fossil fuel vehicles in cities

Long
term

The Company has developed mobility products (including electric motorcycles, electrically power-assisted bicycles, and lowspeed electric land cars) that use next-generation power sources aimed at replacing fossil fuels, while proposing sharing services in collaboration with local governments and joining forces with business partners to integrate the abovementioned
products and services into wider social infrastructure with a focus on CASE, a recent trend in the automotive industry.

Sales of motorcycles in developed markets amounted to ¥322.9 billion in fiscal 2022. If sales of motorcycles withinternal combustion engines were to decline by 50% due to changing consumer preferences and rapid decarbonization in these markets, the impact would be a decrease of ¥90.0 billion in net sales for the Company.

Reputation
SSP1

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

Mediumterm

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

–

Acute
SSP3

Risk of extreme weather events affecting
operations

Mediumterm

Chronic
SSP3

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

Long
term

Having evaluated the frequency and intensity of extreme temperatures and heavy rainfall as assessed in the 6th Assessment
Report of the Intergovernmental Panel on Climate Change, the Environmental Management Officer ascertained the degree of
impact on the Company’s business sites and is implementing appropriate countermeasures.

Resource
efficiency

Improvement of energy efficiency inproduction processes

Short
term

Implement theoretical-value-based production globally

Carbon neutralization budget for production sites from fiscal 2022 to 2024:¥7.0 billion

EnergysourcesUse of renewable energy at manufacturing plants

Short
term

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

Renewable energy budget for production sites from fiscal 2022 to 2024: ¥4.7 billion

Products /Services

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

Mediumterm

Launch 10 BEV models by 2024
Expand R&D facilities for electrification and carbon neutrality

Increased earnings due to demand for low-carbon products

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

Short
term

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

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

Short
term

Start mobility service business in India through collaboration with MaaS operators

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

Mediumterm

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

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

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

Long
term

Develop and expand our lineup of electrified products in preparation for increasing demand for such products
worldwide

R&D expenses for fiscal 2022: ¥105.2 billion

Markets

Resilience

37

Subject of Assessment

Yamaha Motor Co., Ltd. Integrated Report 2023

Natural disasters have been identified as one of the Group’s six significant risks, and response plans are being createdfor high-risk areas and their progress managed accordingly.
In addition to ensuring appropriate inventories, the Company is working to reduce risks by establishing a highly
responsive system that enables the identification and confirmation of potential suppliers in the event of a disaster.

Sales of motorcycles in emerging markets amounted to ¥968.8 billion in fiscal 2022. If operations were to be suspended for two weeks in the ASEAN region due to flooding, a supply delay of 120,000 units would result in an
estimated 4% decrease in motorcycle sales in emerging markets and a ¥38.7 billion decrease in net sales for
the Company.
––
Established Moto Business Service India Pvt. Ltd. Capital: ¥1.1 billion
Indian motorcycle sharing service, estimated to have a market size of ¥11.7 billion in 2025

Climate Change Initiatives (Disclosure Based on TCFD Recommendations)Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Yamaha Motor's Response to Climate Change 
1. Uniquely Yamaha Carbon Neutrality Strategies
Yamaha Motor began working to address climate change in the 1980s. We launched the PAS as the world’s first electrically power-assisted bicycle (e-Bike) in 1993 and then proposed a new form of mobility with the Passol electric urban commuter modelin 2002. In the years that followed, we proceeded to expand our line of electrified mobility options in various categories, including golf cars, wheelchairs, and outboard motors. The PAS in particular was developed based on the concept of a user- andeco-friendly personal commuter model placing top priority on performance in tune with human sensibilities, and it created an all-new market outside the realms of bicycles or motorcycles. Today, Yamaha e-Bikes are being increasingly used in place ofscooters and smaller automobiles in Japanese cities, while in Europe and the United States, the market is growing for e-Bikes as a new genre of outdoor recreation.
Toward achieving a carbon-neutral society by 2050, Yamaha Motor will continue to create new value not only with its motorcycles but also with new, uniquely Yamaha proposals for personal mobility.

Comparison of CO2 Emission Amounts for the Product Life Cycle

Basic Policies 

Raw material
CO2 emissions at time of EV battery manufacturing
CO2 emissions at time of assembly
CO2 emissions at time of disposal
CO2 emissions at time of energy production
CO2 emissions at time of driving

Further reduce the amount of CO2 emissions per person• Transition to more efficient power sources as well as those with

CO2 emissions at timeof driving

lower CO2 emissions

Energy production–70%• Promote small mobility vehicles with low CO2 emissions–75%

Energy production

Vehiclemanufacturing

Vehicle manufacturing

Four-wheeler
ICE*1 Vehicle
原材料

Proposal of Smaller, Eco-Friendly Forms of Mobility

Two-wheeler
ICE Vehicle

EVバッテリー製造時

Four-wheeler
BEV*2

組立時

廃棄時

Two-wheeler
BEV[Assumptions for the Estimate]
Vehicle manufacturing includes: Raw material, EV battery manufacturing,assembly, and disposal
Energy production includes: Fuel production and electricity production
using that fuelFour-wheeled vehicle: IEA standard
Two-wheeled vehicle: Yamaha 125 cc class, two-wheeled BEV of the same size class,
15,000 km driven per year, 10 years of use(Four-wheeled vehicle reference data: IEA “Global EVE Outlook 2020”)

Reduction of CO2 Emissions through Optimal Streamlining

Yamaha Motor is proposing compact forms of mobility with small environ-Utilization of Smaller Forms of Mobility

mental footprints that produce fewer CO2 emissions across the entire
and disposal. Motorcycles, for example, use internal combustion engines
electric motorcycles emit 75% less.
In addition, it is possible to reduce CO2 emissions effectively by cutting
down the emissions in battery manufacturing processes and installing
more charging facilities that use renewable energy.
*1 ICE (Internal Combustion Engine): Burns fuel to acquire moving force*2 BEV (Battery Electric Vehicle): Drives a motor using battery power*3 HEV (Hybrid Electric Vehicle): Driven through the combination of an engine and motor*4 FCV (Fuel Cell Vehicle): Power is generated using fuel cells to drive a motor

Marine products

CO2 emissions per person(ICEs) that emit 70% less CO2 throughout their life cycles than cars, and

BEV

FCV

Cars
BEV /
FCV*4

Motorcycles
HEV*

3

Yamaha Motor Co., Ltd. Integrated Report 2023

Marine products
New market area 1
Cars

Motorcycles

BEV

PAS

PAS
Vehicle size

38

CO2 emissions per person

product life cycle, from raw material procurement to manufacturing, use,

New market area 2
Vehicle sizeClimate Change Initiatives (Disclosure Based on TCFD Recommendations)Introduction

Medium- to Long-Term Strategies

2. Electrification Strategy

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Motorcycle Powertrain Projection

Motorcycles

Outboard Motors

The Company is working toward creating a carbon-neutral society by

Outboard motor technology strategies for contributing to the realization of

implementing motorcycle technology strategies centered on

a carbon-neutral society include 1) improving the fuel efficiency of our1) improving the fuel efficiency of its internal combustion engines, 2) theinternal combustion engines, 2) developing all-electric models, and 3)

expansion of its electric model lineup and promoting the use of electric

developing models powered by hydrogen, synthetic liquid fuel, and othermobility, and 3) developing renewable energy-compatible powertrains.

renewable energy sources.

In examining the potential effects on lowering CO2 emissions, a major

Roughly 60% of the Company’s outboard motor sales are in developed

factor in introducing products as part of our electrification strategy will bemarkets while the remaining 40% come from emerging markets. In devel-

the trends seen in electricity use via renewable energy sources and moni-

oped markets, outboards are primarily used for sport fishing, water sports,

toring the maintenance status of the charging infrastructure in place in dif-and other recreational purposes, whereas in emerging markets, they faceferent countries and regions.

harder use in harsher environments and are employed mostly for commer-

We will begin by launching products in Europe where renewable energy

BEV

ICE

cial fishing to sustain peoples’ livelihoods. With all-electric models, theyaccounts for a large portion of the energy used. The Company will thenwill be introduced while carefully examining how well they fit in with theintroduce these products into the ASEAN region, where the majority of therenewable energy charging infrastructure in place and the use conditions

CO2 emitted by Yamaha products originates, over the period of 2030 topresent in various countries and territories. Accordingly, electrified models

2035 in our mission to achieve carbon neutrality by 2050.

will first be launched in stages throughout developed markets and subsequently introduced into other regions. With this approach, we will contrib-

Carbon-neutral fuels

2010

2030

2035

2050

BEV targets

2.6%

20.0%

90.0%

ute to achieving carbon neutrality as the leading brand in outboard motor
reliability.
Outboard Motor Powertrain Projection
Anticipating the technological progression of powertrains using carbon-neutral fuels*1 (hydrogen, biofuel, synthetic liquid fuel,*2 etc.), the figures to the rightassume the rate of adoption to be 2% by 2030, 5% by 2035, and 30% by 2050.
Going forward, we will continue to review our measures as needed toward achievement of carbon neutrality by 2050. We will do so by engaging in the analysis
of future forecast scenarios drafted by the IEA and others, obtaining an understanding of the electrical power supply composition policies and infrastructure circumstances of various countries and regions, and developing environmental technology that anticipates trends in carbon-neutral technology.

PowerplantTechnical Measures

BEV and FCV

Benefits

ICE

Improve engine and drivetrain efficiency
Improved fuel efficiency
Develop HEVs (electric motor as main powerplant for S-HEVs)
Internal combustion engine
Synthetic liquid fuels
Carbon-neutral fuels

Begin use of carbon-neutral fuels
HydrogenZero CO2 emissions
Develop BEVs

2010

2030

2035

2050

21.0%

30.0%

81.0%

Electric motor
Develop FCVs (hydrogen fuel cells)*1 Carbon-neutral fuels refer to hydrogen, biofuel, synthetic liquid fuel, and other fuels from renewable sources.
*2 Synthetic liquid fuel: Fuel obtained by synthesizing hydrogen and CO2, which are obtained by electrolyzing water with renewable energy.

39

Yamaha Motor Co., Ltd. Integrated Report 2023

BEV and FCV targets

Climate Change Initiatives (Disclosure Based on TCFD Recommendations)Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

3. Aiming for Supply Chain Carbon Neutrality
Looking at CO2 emissions throughout Yamaha Motor’s supply chain, we see that Scope 1 and Scope 2 emissions—those emitted as a direct result of the Company’s business activities—only account for 1.4% of total emissions, whereas Scope 3 emissions—thosefrom the Company’s value chain—constitute 98.6% of emissions. The largest component of our Scope 3 emissions is Category 11 (use of sold products), which represents 80.5% of total emissions. Of Category 11 emissions, motorcycles comprise 58.0% of total
emissions while outboard motors account for 26.4%. At the same time, 80% of Yamaha Motor’s motorcycle sales are in Asia, and by supplying this market with compact, convenient, and affordable mobility options, we aim to contribute to sustainable growth inaccordance with the United Nations SDGs by addressing the demand for the transportation of goods and services, helping expand the spheres of daily life, and bringing more options and opportunities for employment and education. Moreover, we look to develop
and popularize more fuel-efficient products to help combat climate change. In addition, from 2023, we will launch a Companywide Mortorcycle Electrification Project to promote and accelerate electrification in the motorcycle domain.
The calculation conditions for Scope 3 values have been changed from 2022 for a more accurate understanding, and actual values up to 2019 have been retroactively recalculated. In conjunction with this change, the Scope 3 reduction targets, which
See page 41 for details on changes to calculation conditions.

were previously based on 2010, will now be based on 2019 and incorporate the electricity efficiency scenarios for each country.

With the goal of achieving carbon neutrality on a global scale, Yamaha Motor aspires to offer products (next-generation mobility powered by electricity or renewable energy) presenting the most effective means for cutting CO2 emissions based on thegovernment energy policies and energy mixes of each country.

Breakdown of CO2 Emissions for the Entire Supply Chain
Scope 1
Fuels used
0.5%

Scope 1 and Scope 2 Targets

Scope 3 Targets

CO2 emissions per unit

CO2 emissions per unit

Scope 2
Electricity used
0.9%

Carbon neutrality
achieved

Scope 3
98.6%

Other
2.6%

Reduction Results

–80%

–92%

2022 life cycle
CO2 emissions

Reduction targets under modernized calculation conditions–18.1%–60%

Raw
materials
15.5%2010 standard: Reduction targets under conventional calculation conditions

–24%

–38%

–90%

–5.5%

–7%

–24%

–88%

2022
results

2030

2035

2050

2035:
Carbonneutrality
achieved
early

32.9 million t-CO2

Category 11
Use of sold products
80.5%

Base
year

2010

Generators /Snow blowers /Multipurpose
engines
4.9%

Others
6.1%

2050

2035

New base
year

Greater efforts for nationally determined contributions among
countries/territories

External
Environment

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

Outboard
motors
26.4%

Tightening of regulations for
ICE fuel efficiency

External
Environment

Yamaha Motor Co., Ltd. Integrated Report 2023

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

Transition to cleaner energy mixes

Improvement of
ICE fuel efficiency
Expansion of
BEV product lineup

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

Specific
Measures

Expanded regulations for vehicle electrification

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

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

Motorcycles
58.0%

2019

Employ internationally recognizedcarbon offset methods

Institution of carbon taxes and stricter environmental regulations

Note: C alculations have been made using the Emissions Unit Value Database (Ver. 3.2)
based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions
Throughout the Supply Chain (Ver. 2.4, issued Mar. 2022) issued by Japan’s Ministryof the Environment.

40

2030

Employ internationally recognizedcarbon offset methods

Category 11 Breakdown by Product
Generators
4.6%

2022
results

Specific
Measures

Promotion of BEV models

Development of carbon-neutral
fuel-compatible powertrains
Carbon offsets

Climate Change Initiatives (Disclosure Based on TCFD Recommendations)Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Reduction Performance 
In fiscal 2022, Scope 1 and 2 emission intensity decreased by approximately 60% compared to the base year of 2010 due to progress in energy conservation activities and the installation of renewable energy facilities.
Reduction Performance
Scope 1 and Scope 2
FY2010(Base year)

Emissions (metric tons)
Emissions per unit
(metric tons/sales:¥100 million)
Reduction rate(compared with FY2010)

FY2018FY2019FY2020

FY2021

FY2022

662,261

529,513

540,105

442,533

500,903465,326

51.2

31.6

32.4

30.1

27.6

20.7

—

38.3%

36.7%

41.2%

46.1%

59.6%

Scope 3Category 11: Use of sold products
FY2010(Base year)

FY2018FY2019FY2020

FY2021

FY2022Emissions (metric tons)

34,046,049

25,963,326

23,859,974

19,624,372

23,237,944

23,478,155

Emissions per unit
(metric tons/unit sales)

4.36

3.76

3.57

3.67

3.71

3.68

Reduction rate(compared with FY2010)

—

13.8%

18.1%

15.8%

14.9%

15.6%
*Latest calculation conditions
Calculation conditions have been changed to (1), (2), and (3) below andrecalculated retroactively to 2019.
(1) T he actual usage of the products (annual usage distance and hours,

Recalculated with updated calculation conditions*

lifetime usage years) is now classified into Asia, Europe, North America,
FY2019(New Base year)

FY2020

FY2021

FY2022Emissions (metric tons)

29,344,372

21,961,065

26,016,843

26,506,968

Emissions per unit
(metric tons/unit sales)

4.39

4.11

4.16

4.15

Reduction rate(compared with FY2019)

—

6.4%

5.2%

5.5%

41

Yamaha Motor Co., Ltd. Integrated Report 2023

Japan, Oceania, Central and South America, and Other for more accurate understanding.
(2) F uel consumption of outboard motors and PWC/SB changed from theconventional simple calculation method to using power output (PS) to
CO2 emissions values measured by fuel consumption per mode.
(3) In consideration of the reduction effect of future electrification, the CO2
emission factor was changed to the CO2 emissions factor (kg-CO2/kWh)for power generated in each region as stated in IEA World Energy
Outlook 2021 Stated Policies Scenarios.

Digital Transformation

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

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

Facts and Data

Norio Yamada
Executive Officer,
Chief General Manager
of IT Center

Yamaha Motor to the Next Stage: Enhancing Brand Value and Creating Lifetime Yamaha Customers
Preparations for
Next-Generation Value Creation

Y-DX3 Create the Future
Y-DX2 Strengthen the Present

Connect with Customers andOffer New Experiences

Y-DX1 Reform Management Platforms

Accelerate Decision-Making andStandardize Processes

DX Human Resource Development

Promote Companywide Use of
Digital Technologies

New experiences,products, and services

Medium-Term Targets
Connect with customers worldwide(Yamaha Motor ID registrants)

Creation of DX promotion
personnel

4,700,000
2,600,000

550

790,000
2021

2022

1,200

2024

2021

Yamaha’s Approach: Digital × Real World

Customersaroundthe world

755

2022

2024

Management

Internal
processes

Customertouchpoints

Y-DX1: Reform Management Platforms
Realizing Predictive Management through a Globally
Consolidated Database

Y-DX2: Strengthen the Present
Connecting with Customers and Offering
New Experiences

We are moving forward with preparing platforms and APIs for our services

In addition to building an organizational structure that can quickly adapt

We will strengthen digital touchpoints with our customers and build athat will allow Yamaha’s connected products as well as functions enabledto the evolving and changing market needs in our global business opera-system that continues to deliver high levels of satisfaction and Kando toby various data and software to connect with a variety of external services

tions, we will enable faster decision-making by management. We haveour customers through digital marketing and connected products for an

and IoT devices. This will enable collaborations with other industries andintroduced and are driving the use of a database that consolidates our

exciting, personalized customer experience overall, from sparking that ini-

co-creation with our customers, so that we can take on the challenge ofmore than 120 subsidiaries across the globe to obtain accurate informa-tial interest in our products to a smooth purchasing experience. We will

solving societal issues and creating new customer value in ways unachiev-

tion about day-to-day business occurrences worldwide and thus realize

also promote the development of digital-based approaches, such as

able by a company on its own.

more future-oriented management.

model-based systems engineering (MBSE), and the Value Innovation

Y-DX3: Create the Future
Next-Generation Value Creation through Co-Creation

Factory project, which aims to improve the quality of manufacturing opera-

Process Standardization, Shared Services, andResource Shifting through Global ERP Implementation
To collect data from around the globe swiftly and accurately, standardizing
and simplifying the systems and operations in place in each country
becomes essential. Standardizing processes and unifying systems acrosscountries will further promote the utilization of Companywide data, push
the implementation of shared services for everyday duties, and shift
resources to competitive areas.
See P.43 for an overview of Y-DX1.

tions and create new value.
To drive the data analysis that supports these initiatives at each work-

DX Human Resource Development
Human Resources for DX Promotion

site, we will implement data management that facilitates the safe use of

Aiming to be a company where all employees can utilize data, we are stag-data while promoting accessibility to it by in-house data scientists, thereby

ing a shift among current employees through practical and on-the-job

creating new customer value through Companywide cross-functional data

training while actively hiring capable personnel possessing the required

collaboration.

specialized knowledge. Through our efforts, we are expanding our force oftech leads, in-house data scientists, ERP engineers, and other humanresources to 1,200 by 2024 as a KPI (755 as of 2022). As we strive toacquire these human resources, this will enable us to vigorously promotebusiness proposals and internal reforms utilizing digital means across theentire company.

42

Yamaha Motor Co., Ltd. Integrated Report 2023

Digital Transformation​

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Yamaha Motor to the Next StageTo further strategically utilize the latest digital technologies and data, the Company is moving its digital transformation (DX) strategy forward with the Yamaha Motor to the Next Stage(YNS) project. Within this strategy, work on the Y-DX1: Reform Management Platforms action theme has been underway since 2022. To achieve sustainable growth in a rapidly changing
business environment, we are updating our management platforms with an eye to the future.

What Is the Yamaha Motor to the Next Stage Project? This is a Companywide project to develop our management platforms with an eye on 10 years in the future in order to bring about
innovations in management styles and enable quick and global management decision-making for future growth strategies.
Goals for the YNS Project

Benefits for each one of us• Less Clerical WorkManagement Dashboard

Unified Accounting Control and Predictive Management

Global layer

Global production,
sales, and inventory(PSI)

Management
simulation

Major subsidiary layer

Shared services

Differentiation
processes
Distribution• One Global Yamaha Motor• Work–Life Balancewith the Power of• Speed for Transformation

Simplification• Streamlined Shape• New Challenge• Easiness of Maintenance• Strong Capability• Timely Visualization• Sustainable Workplace• Robust ComplianceSimplify
the Organization• Shared Services

Overview of Y-DX1: Reform Management Platforms 

Linked Platforms / Global Master

Production• Growing Business Focus

Yamaha Motor

Consolidated model
profitability

Consolidated accounting

Procurement

Benefits for Yamaha Motor• More Time Value, Leeway• Global Networking

Consolidated Global Database

Simplify
the IT System
Strengthen• Creative Work

(Yamaha Motor Business Dashboard)

Simplify
the Operation

Sales

ServicesStandardization of business processes and code systems

Accounting and corporate operations

Standardized
processes(ERP)

Achievements Sought through Management System Innovations

Specific Measures

Speed up decision-making through thorough efforts with visuals and centralization
Expand sales (prevent opportunity losses)• Determination of optimal procurement and production sites• Determination of optimal allocation volume, etc.

Create a consolidated global database

Realize predictive management by utilizing new information to visualize customers
Expand sales (capture new opportunities)• Use of digital marketing and IoT

Create a demand forecasting model

Shift resources to growth fields by streamlining indirect operations
Reduce costs and expand sales (execution of growth strategy)• Elimination of numeric transcription and other tasks

Standardize business tasks and introduce a
global ERP system

Shared services
In addition to the above, the Company will standardize its core business processes and systems to promote shared services andthereby improve the productivity and quality of its corporate operations.

43

Yamaha Motor Co., Ltd. Integrated Report 2023

Digital Transformation​

Introduction

Medium- to Long-Term Strategies

Yamaha Motor to the Next Stage
Management Discussion

Takeo Noda

Satoshi Kodou

Executive Officer,
Chief General Manager ofCorporate Planning &Finance Center

Fellow
In charge of reforming
management platforms
at the IT Center andCorporate Planning & Finance Center(YNS Project Chief)Serves as the global process
owner of accounting and is
involved in running the YNS
project as a member of its
steering committee.

Implemented DX at a major
foreign-affiliated chemical company before joining Yamaha
Motor in August 2022. As chiefof the YNS project, he manages
and coordinates its progress asa whole.

Building the IT Infrastructure to Support Growth into the Next Generation
I was involved in digital transformation at my previous job, and I felt that Japanese companies in generaltended to be less further along with DX than foreign-affiliated companies. However, Japanese companies have theirown advantages, so instead of chasing after efficiency andlogic alone, I would like to pursue a fusion of the unique styleof Yamaha and such streamlining to make Yamaha Motor as
strong as possible.
Noda
Noda
I agree. There should be a careful rationalization of
products and services directly linked to our customers, but on
the other hand, I am working to promote thorough streamlining in accounting and other areas that I am in charge of.
We have taken the opportunity this year to redefine the goalsof the YNS project. The main theme is laid out in the centerof the chart on the previous page: Strengthen Yamaha Motorwith the Power of Simplification. I think this packages yourideas in a very concise way.
Kodou

44

Yamaha Motor Co., Ltd. Integrated Report 2023

We aim to simplify three things: systems, operations, and organizations. The new theme also puts forwardthat simplifying these three things will benefit both theCompany and the individual. For example, reducing theburden of clerical work will create more elbow room andallow individuals to focus on more creative work. The ultimate goal is to share information globally in a timely manner
to enable rapid management decisions.
Kodou

The cooperation of all employees is essential tomoving the YNS project forward. By communicating the goals
for the YNS project in an easy-to-understand manner, I
believe that employees will have a clearer idea of what theyneed to do and will be able to work toward the project’s
goals with a positive mindset.
Noda

That is definitely what we are hoping for. One of
the more recent major steps forward is the introduction of
the Yamaha Motor Business Dashboard (YBD). This collects
Kodou

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Dataand displays financial and management accounting data as
well as daily and monthly wholesales, retail sales, inventory
numbers, and more from over 120 locations to help makequick business decisions. The integration between YBD and
our domestic accounting systems is also complete. We willcontinue to update and link systems at each location and foreach role to keep progressing toward achieving our goal.
Noda
We believe that YBD will be of great benefit toboth management and people working on the front lines. In
the past, a lot of time and effort was spent making management decisions, as the indicators used for these decisions differed by subsidiary, and a vast amount of previous data had
to be prepared. I believe that YBD will unify KPIs between
management and those in the field, and that management
decisions based on this information will improve operational
efficiency and allow for faster decisions.

Kodou
The YNS project concerns Yamaha Motor employees worldwide. Therefore, I believe it is important to communicate the benefits to both management and those in thefield, just as you mentioned. I feel that Yamaha’s employees
have a strong ability to push forward as long as they have afirm belief in the cause. In this sense, we will continue toactively communicate internally to ensure that employees areconvinced of the project’s significance and are motivated to
do what is needed.

Noda
Indeed. Until now, the Company has grown by
pursuing regional and individual optimization, with each business having its own uniqueness. This bestowed us with astrong centrifugal force, so to speak. But because of this, wehave little experience in unifying processes across the entire
Group, which would be more of a centripetal force in thatsense, so I think both management and those on the front
lines will face many difficulties. In a sense, the YNS project isan opportunity for Yamaha Motor to bolster its centripetal
force while retaining its centrifugal force. We are only juststarting this long journey, but let’s get it done.

Human Resource Development

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Mitsuru Hashimoto

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

Executive Officer,
Chief General Manager of
Human Resources &General Affairs Center

Our Fundamental Beliefs As part of our global business operations, the Company is striving to

KPIs in the New Medium-Term Management Plan

create an organizational structure with the agility required to respond toDiversity, Equity & Inclusionchanging and evolving market needs. We believe that if individual workers
and their companies share ambitious goals and work together to bringabout not just business growth but also personal growth, we can offer
Yamaha Kando to customers without fail. Premised on our fundamental
belief that all corporate activities begin with people, it is essential that ouremployees work in harmony and incorporate differing viewpoints andvalues. Working to hone individual skills, securing specialists in numerous
technical fields, and applying our expertise in both developed and emerging markets are the types of efforts we believe will lead to fulfilling theCompany’s Long-Term Vision for 2030 of “ART for Human Possibilities:
Let’s strive for greater happiness.”

Human Resource Development

Strive to be a company with an agile and diverse workforce byincreasing the available options for working styles
Local hiring for core positions*¹

Women in management positions*²

55

13% by 2024• Expand global and regional leadership programs• Reform HR management system at headquarters• Enhance mid-career professional recruitment

Establish frameworks that provide equal opportunities for personal
growth to all employees
Number of participants in self-development courses

Approx.

% by 2024

5x*3

by 2024• Enhance online and on-demand learning platforms• Encourage employees to increase their Rev Up time*4

Our Medium-Term Management Plan is in line with these fundamental
beliefs and designates the employee engagement score as a KPI; thus, wewill monitor and conduct ongoing follow-up on the level of engagement
seen among the Company’s employees. Furthermore, as a concrete effort
to raise employee engagement and promote diversity, equity, and inclusion, we will increase the number of available options of working styles
and strive to be a company where our diverse workforce plays an active

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

gather and excel, we will expand our training programs for leaders in each

Improvement of Employee Engagement

country, revamp the personnel systems at our headquarters, enhance mid-

Introduce common global engagement indicators and conduct periodic follow-up on employee engagementrole. To create an environment where people of diverse backgrounds

career professional recruitment, and more. With human resource development, we will establish frameworks that provide equal opportunities for
personal growth to our employees and work to implement new working(Ref.) Engagement score*5 at headquarters
FY2021 59% FY2024 70%

styles that take better work–life balance into account as part of encouraging employees to increase their Rev Up time, which aims to enhance work
efficiency as well as enrich their time off.
*1 Ratio of local personnel in core positions at overseas subsidiaries*2 Ratio of women among managers at headquarters and overseas subsidiaries*3 Compared with 2019
*4 Aimed at enhancing work efficiency and enriching time off*5 Ratio of employees who responded favorably to engagement indicators

45

Yamaha Motor Co., Ltd. Integrated Report 2023

Human Resource Development

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Promoting Global and Regional Leadership Programs 
We conduct selective training programs to develop talented people into

Fifth GEP

leaders at each location, global leaders, and management. Among our

The fifth GEP was conducted in 2022 under the supervision of the

training programs is the Global Executive Program (GEP), launched in

Hitotsubashi University Business School. Participants took part in four

2015, which focuses on developing a vision for the future to cultivate

modules of five programs and deepened their discussions on leadership,

global management talent. To date, the program has been held five times

accelerating innovation, and solving challenges that encompass the uniquewith a total of 70 participants. 47 participants (67%) have been promoted

style of Yamaha Motor.

since participating in the GEP and have assumed leadership roles in their

Recommendations by the Executive Officers and approval by therespective positions. Due in part to these efforts, the localization ratio in

Representative Directors determine participants. 16 participants (4 womencore positions at the end of 2022 was 52.2%, up 1.4 points from the end

and 12 men) from eight countries participated in 2022. At the end of theof the previous period.

program, each participant gave a personal project presentation to theRepresentative Directors and Senior Executive Officers, and received feedback to aid in their ongoing personal development.

Three Selective Training Programs

Five Programs

A snapshot of a group project from the GEP• Management fundamental sessions• Global Executive Program
Candidates for management are eligible• Virtual company visits and interviews(Companies in India and Germany)• Yamaha Business School Global
Candidates for core positions are eligible• Leadership development and coaching• Action-Learning group projects• Regional Development Program
Candidates for managerial members of each location are eligible• Capstore individual projects

Four Modules

Ratio of Local Hires in Core Positions(%)

70

Participants and management members of the fifth GEP(1) P ost-digital and post-pandemic future vision
Hitotsubashi University Business School

60

55.0%
50.8%

52.2%

50

(3) S
 ales expansion, hidden champion, Industry 4.0
European School of Management and Technology

40
2021

46

(2) E
 merging economies, social entrepreneurs,
reverse innovation, frugal innovation
University of British Columbia

2022

Yamaha Motor Co., Ltd. Integrated Report 2023

2024 (Target)(4) O pen innovation, center of excellence, DX leadership
Hitotsubashi University Business School

Facts and Data

Human Resource Development

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Efforts to Close the Gender Gap 
As a company that offers a diverse range of products globally, we need to

Positive Action

promote diversity due to the variety of our clientele. In addition, as compe-

While the ratio of women employees at the headquarters is approximately

tition for human capital increases, we must be inclusive to continue

13%, the percentage of women managers is in the 3% range, a signifi-

attracting and developing talented people. Diversity, equity, and inclusioncant discrepancy. To increase the number of women in management posi-

KPIs are critical issues in the medium-term management plan. In particular,

tions, in addition to various environmental improvements, positive actions

we will introduce the actual situation of the gender gap at the headquar-that consider the effects of the implicit bias of the past are also necessary.

ters and our efforts to eliminate it.

We are implementing positive actions, such as securing several application
slots during promotion and promotions to management positions.

Ratio of women hired as new graduates
2020

2021

28.7%

30.9%

Global Initiatives
To address diversity globally, the GET-HR (Global Execution
Transformation - Human Resources) AXEL* Task Force was established in April 2022. The group comprises leaders from 11 countries and regions, including Japan, and formulates specificinitiatives to promote gender equality and increase the ratio of
women managers. In particular, we have identified the followingthree priorities for ongoing activities.

2022

Efforts to Support Coexistence* AXEL: Awareness Transformation for the Empowerment of Ladies

30.2%

Looking at the ratio of women employees by age group, we see a sharp

Three Priorities

drop-off when people hit their 30s. This is due in part to people stepping
Ratio of women by age groupaway from their careers due to life events such as marriage and childbirth.

20s

30s

40s

50s

34%

11%

12%

11%

With our challenge of finding ways to encourage employees to continue
working, we hold seminars for women who face life events. We also provide a handbook to managers who are their supervisors so that the entire
team can support them in balancing work and family life.

Ratio of women managers• Awareness raising and education: Developing educational
programs on gender equality• Succession planning: Promoting the appointment of women
to higher positions• Recruitment and retention: Developing recruitment
guidelines to increase gender equality

2020

2021

2022

Paternity Leave Support

2.4%

2.8%

3.2%

Having the men within our workforce take paternity leave provides anopportunity to view childcare as a task that involves the entire family and

In addition, we are reforming our working style and reviewing our
personnel system to achieve diversity, equity, and inclusion.

reflect anew on what the father and mother do best and what they may

Number of men taking paternity leave
2020

2021

2022

71

92

152

Note: All figures are for the Iwata headquarters.

2021

2022

2024 (Target)

Ratio ofwomen managers

9.7%

11.2%

13.0%

Core positions(of women in
managerial positions)

3.9%

4.8%

–

need help with.
In addition to information dissemination from the Company, the labor
union and management are working together to promote the use ofpaternity leave, for example, by disseminating the voices of those whohave taken paternity leave in the labor union’s bulletin.

Note: All values are for the Group as a whole.

For additional data, please see Employee-Related Data.

47

Yamaha Motor Co., Ltd. Integrated Report 2023

Human Resource Development

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

2022 Headquarters Engagement Survey At our headquarters, we launched an employee awareness survey in 2020

Inclusionusing engagement as an indicator, and 2022 marks the third time we haveThis indicator was newly added to the survey this year, with a 60% positive

Dialogue between Employees and Management

conducted this survey. Engagement is a mirror that reflects "the attitude of

response rate, which is a passable figure. Among them, "I feel like I am a

In 2021, we held more than 50 dialogue sessions between

employees who feel empathy for the company and organization and takepart of the company" and "I feel like I can be myself" scored high, indicat-

President Hidaka and employees in their 30s, with more than 1,000

pride in their work." Increasing employee engagement will contribute to

ing the characteristics of our company.

employees participating. In 2022, we improved our meeting style

improving our corporate value. The survey results are considered a healthby having only five employees meet simultaneously with President

checkup and used for improvement and revitalization in each workplace.

Hidaka and Directors and Chief General Managers of various busi-

Survey Follow-up
This is an indicator of expectations by the employees that took the survey

Engagementthat the results will make changes in the workplace. This survey follow-up

Engagement saw an increase of 3 points from 2021. A closer look at theindicator has increased for two consecutive years. We feel as though "dia-survey reveals that scores for "Recommendation," "Will to contribute,"

logue" in the workplace is gradually expanding. We will continue toand "Pride" improved, while "Sense of accomplishment" declined for thedevelop a system to use the survey results for improvement.

nesses, thus allowing for deeper dialogue.
By creating opportunities for dialogue between employees andmanagement to open up, scores on management-related survey
items have increased.

second year in a row. Fiscal 2022 was the first year of our Medium-Term

In-House Side Job System

Management Plan. As the Company begins to take on the challenge of

The in-house side job system is a personnel system designed tomore remarkable change, workers may find it difficult to feel enthusiasm

support employees in improving their personal value, strengthen

for their work even if they have growing enthusiasm for the Company andconnections across departments, and foster a culture that encour-organization.

ages employees to take on new challenges. This system allows
employees to use a part of their working hours for side jobs within
the Company to take on new challenges.
Twenty-four employees used the system in fiscal 2022, the inau-

Engagement

Inclusion

Survey Follow-up

Legend (sample)
Disagree62%

60%

Ratio of respondents whochose "Strongly disagree"or "Disagree"

35%

Valuation Basisgural year of this program, with 37 employees engaged and active

Ratio of respondents whochose "Strongly agree" or"Agree"in their side jobs in fiscal 2023. Employees who have engaged in

Valuation Basistheir job satisfaction through exposure to different tasks and per-75 to 100%: Excellent

spectives and have broadened their perspectives.

65 to 74%: Good58%

0 to 9%: Good

Agree

50 to 64%: Proficient
0 to 49%: Needs attention

10 to 19%: Proficient
20% or more: Needs attention

2021 Comparison +3
Indicator to see whether theemployees are working of
their own accord with prideand empathy for the Company
and organization's policies

2021 Comparison +2
Indicator of the ability todemonstrate abilities and havea sense of belonging,regardless of attributes

Indicator of expectations forchange in the workplacethrough the survey

nize groups at each location to promote dialogue in one-on-one

3 points increase in agreementcompared to 2021

53%

34%

13%

+5

71%

22%

7%

+4

I am proud to work for our company.

70%

22%

8%

+5

48

Yamaha Motor Co., Ltd. Integrated Report 2023

meetings and dialogue throughout the organization. We have seencases where managers who were initially reluctant to adopt action
learning become more proactive as they realize the program's benefits.

Agreement ratecomparison with 2021

I want to contribute more to the company and my department.

I feel a sense of achievement through my current work.

One-on-One Meetings
One-on-one meeting training is provided to managers who orga-

2021 Comparison +3

Four Questions Tied to Engagement
I recommend our company to my acquaintances andfriends as a great company to work for.

in-house side jobs have commented that they have rediscovered

53%

28%

19%

-1

Although the purpose of each one-on-one meeting may differ,the increased opportunity for dialogue leads to improved psychological safety in the organization.

Sustainability

Introduction

Medium- to Long-Term Strategies

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

Yamaha Motor Group Sustainability Basic Policy 
The Yamaha Motor Group’s corporate mission is to be a Kando Creating

society, we will, under appropriate corporate governance, contribute toCompany. We aim to offer people all over the world joy, amazement,

the resolution of societal issues and sustainable development throughelation, fulfillment, and happiness through our products and services while

innovative and diverse products and services, in ways that embody the

maintaining harmony with society and the global environment. To achieve

unique style of Yamaha. We ask our business partners to uphold this policy

this, we will leverage the empathy arising from connections between

and act on its basis.

Activities for Greater
Functional Competitiveness

Facts and Data

Customers

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

Employees

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

Business Partners

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

The Environment

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

The Community

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

Shareholders andInvestors

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

people as an engine for creating new value. As a company trusted by• We will comply with international rules, laws, and ordinances, and at the same time, we will work to prevent corruption and execute our operations withManagement Platforms

fairness and integrity.
• We will respect human rights, will not discriminate, and will not use child labor or carry out forced labor under any form.
• We will value our relationships with our stakeholders and disclose information in a timely and appropriate manner.

Board of Directors

President, Chief Executive Officer and Representative Director

Sustainability Promotion Structure 

Seeking of advice/
Making of recommendations

The Sustainability Committee, chaired by the president and chief executive

policies and visions for the future concerning environmental initiatives,

officer, and comprising members of the Management Committee, was estab-medium- and long-term environmental plans, investment, and monitoring.

lished as part of the sustainability promotion structure. The Sustainability

In regard to sustainability issues other than those related to the environ-Committee deliberates on and determines the response to issues related toment, the Sustainability Promotion Meeting has been established as thesustainability and risk compliance.

subordinate council of the Sustainability Committee. Issues are addressed by

The Environment Committee, chaired by the executive officer in charge

Sustainability Committee
Chair: President and chief executive officer
Members: Executive officers with specific posts

organizing the Risk Compliance Secondary Meeting, the Sustainabilityof promoting environmental activities, was established as the subordinate

Secondary Meeting, and the Global Compact Secondary Meeting for eachcommittee to deliberate on and review, from specialist perspectives,

issue, with members consisting respectively of persons from related divisions.

Instructions/
Submittal for deliberation
Instructions/
Submittal for
deliberation

Environment Committee
Chair: Executive officer in charge of promoting
environmental activities
Members: Business and division activity promoters

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

49

Yamaha Motor Co., Ltd. Integrated Report 2023

Sustainability

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Human Rights Initiatives 
Signing the United Nations Global Compact

languages and have received written confirmation of agreement from theincluding respect for human rights, prohibition of child labor, prohibition

In 2017, the Yamaha Motor Group signed the UN Global Compact, amanagement of each Group company. Additionally, we have created expla-of forced labor, fair wages, and dialogue and consultation with employees.

series of principles proposed by the United Nations. The UN Global

nations for each item to increase transparency for Group employees.

To increase the effectiveness of such requirements, we obtain written confirmation of agreement from each business partner.

Compact contains principles regarding human rights and labor, and the

The Code of Ethics, a set of guidelines for the ethics of Group employees,

signing enables the Company to not only express the Group’s approach to

specifies that they must not carry out acts that abuse or deny a person’s charac-

In 2021 and 2022, we conducted survey-based assessments focusing on

human rights both internally and externally but also carry out various activ-

ter according to factors such as race, nationality, ideals, principles in life, physicalforeign technical intern trainees. Our headquarters is located in Japan, andities in order to increase the effectiveness of compliance with these princi-

characteristics, personality, or relatives, and must not carry out any form of

this has been a hot-button issue as of late. In addition, we interviewed andples. One of these activities was to establish the Global Compact

harassment, including sexual harassment. We are also striving to enhance

conducted follow-up surveys with four Japanese suppliers' management

Secondary Meeting under the jurisdiction of the Sustainability Promotion

employee awareness of human rights through e-learning and training.

and foreign technical intern trainees in collaboration with a third-party
organization.

Meeting. Those responsible for human resources, procurement, and other

Our risk management system, which covers all business units and sub-areas related to human rights and labor gather in one place across divi-

sidiaries under the Group umbrella, has a human rights-related component

sional boundaries to eliminate issues, consider new activities, and confirm

addressing associated risk in our own operations and across the supply

Human Right Risk Set as a Key Risk within the Group

progress made. Furthermore, Yamaha Motor actively participates in sub-chain. We monitor, assess, and formulate measures to mitigate such risk.

In 2023, we designated human rights risk as one of the Group's key risks

committees organized by the Global Compact Network Japan—the

We also conduct a Groupwide compliance awareness survey each year to

and are working to strengthen our activities. Upon establishing humanJapanese branch of the UN Global Compact—and is working to improvegauge how aware employees are about their human rights. We also haverights risk as a key risk within the Yamaha Motor Group, commitments

its in-house activities through study sessions related to human rights, sucha reporting line established to enable employees to report a problem rightwere made with regard to governance, human rights due diligence, reme-

as inviting a human rights special interest group for lectures.

away in the event a situation arises, and we maintain and operate a whistle-

diation, relief, education, and reporting and disclosure. We will continue toblowing system.

promote our efforts in each of these areas more fervently than ever byGroup Company Initiatives

thoroughly spreading information about these commitments to our Group

Under the Sustainability Basic Policy formulated by the Yamaha Motor Group

Supplier Initiatives

in June 2021, we have positioned human rights as a top priority issue

We request that our suppliers support and act per Yamaha Motor Group

common to all stakeholders. To promote Groupwide awareness and under-

Sustainability Basic Policy. The Sustainability Guideline for Suppliers includes

standing of this basic policy, we have prepared versions in 17 different

a section on Human Rights and Labor that clearly states requirements

companies and business partners as well as within the Company.

Please refer to the Yamaha Motor Group Human Rights Policy for details.

Health & Productivity Management We regard the health of our employees as an essential management issue

We have also decided to make the entire premises non-smoking fromthat is indispensable for the Company's development. Yamaha and its

2024 as a measure against smoking. Although our smoking rate has

employees are working together to promote employee health. The Central

improved over the years, it is still well above the national average.

Safety and Health Committee, chaired by the Human Resources & General

As a result of our promotion of health management, we were recognizedAffairs Center, determines mid-term and annual plans, and encourages ini-among the “Health and Productivity 2023 (White 500)” corporations in thetiatives while verifying and improving each measure.

Certified Health & Productivity Management Outstanding Organizations

For example, we have reinforced health guidance as a post-medical

Recognition Program sponsored by the Ministry of Economy, Trade andcheckup measure. As a result, the percentage of persons eligible for spe-

Industry and the Nippon Kenko Kaigi (Japan Health Council). We will con-cific health guidance (motivation and active support) was 18.8% in 2022,

tinue to promote the health and vitality of our employees actively.

a 1.2 point improvement from the previous year.

50

Yamaha Motor Co., Ltd. Integrated Report 2023

Please refer to Health & Productivity Management for details.

Activities forGreater Functional
Competitiveness
52
55
57
59
61
63

51

Yamaha Motor Co., Ltd. Integrated Report 2023

Creative Branding & Design
Research and Development
Intellectual Properties
Procurement
Manufacturing and Production (Monozukuri)
MarketingIntroduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Creative Branding & Design
The Company believes that a vital objective of management is to further raise the value of the Yamaha brand and make itshine. The Creative Center, led by Takuya Kinoshita, combines the three functions of branding, design, and innovation. Here,he explains the history of Yamaha Motor’s branding, design, and innovation activities and future initiatives.

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

Design and Innovation to Enhance Brand Value and Make It Shine 
Our brand is one of our most important management resources, and weoutside and inside perspectives that we can better understand our compa-

design, and innovation. Only some companies take on these three as arecognize that creating products based on our core competence of design

ny’s strengths and design products that capture the values of an increas-

single entity, and this organization is designed to embody the uniquenessand innovation and connecting with customers worldwide throughout our

ingly diverse world as well as the future expectations of our customers.

of our company.

time as a company has had a significant impact on our brand.

In the previous Integrated Report, we stated that the Creative CenterIn addition, as we go into the field, meet new customers, and demonstrate our strengths and creativity, the new Kando generated there has

should be “mediatized” to continue to create these unique intangible

prise by spinning off the motorcycle division from Nippon Gakki Co., Ltd.

become a source of innovation and exploration of fans and categories. We

assets. The Creative Center was to function as a media outlet for internal(today’s Yamaha Corporation), our own brand is based on the larger

recognize that our business and markets have grown as we have expandeduse, including those in management, and to carry a more social interac-

Yamaha brand we share with Yamaha Corporation. In addition, Yamaha

our technological domains, starting with motorcycle engines and chassis,

tive function for customers, partners, and others. The following pages

Motor’s own unique value aligns with its businesses to date. Our diverse

then outboard motors and boats, electrically power-assisted bicycles andwill explain the results of these activities, the recognition of issues, andbusiness operations—from manufacturing to sales—combined with theelectric wheelchairs, industrial-use unmanned helicopters and drones,

future efforts.

breadth of our markets have created a multifaceted brand that is one ofrobotics, and other products.

Since the Company was established in 1955 as an independent enter-our strengths. Whether it is making motorcycles or pianos, each core products of the two Yamahas, the brand is a partner that offers greater joy

To further strengthen these core competencies, we established theCreative Center in 2020, which combines the three roles of branding,through the aspirations of those who use our products. We want to be abrand that continuously delivers new value born from these relationships
and carries out our corporate mission to be a Kando Creating Company.
From the design of motorcycles at the time of our founding to theoutsourcing of work to GK (now GK Design Group Inc.), we have delivered
numerous products to people up to the present day. In 1975, in anticipa-

Innovation Style of Yamaha Motor

Create unprecedented
experiences

Bring greater fulfillment todaily life

Appeal to people’s
sensibilities

Original andinnovative

Aestheticallypleasing

Human-centriction of business and market expansion, we established a design groupcompany. Since acquiring control of the company in 2012, we now havean in-house design organization but also maintain a co-creative relationship with GK as an external partner. It is precisely because we have bothconcepts

designs

engineering

The Company’s innovation style combines three elements aimed at
expanding human possibilities to create Kando

52

Yamaha Motor Co., Ltd. Integrated Report 2023

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Achievements: Activities Connecting Us to Society 
Activities to Connect People Internally

Activities to Connect the Company and Society

Activities That Create Social Connections

Yamaha Day: An In-house Event Where All
Employees Reflect on Their Company’s Brand

YMR-II Industrial-Use Multirotor Drone
Despite the need to improve Japan’s food self-sufficiency rate, which is consid-

Town eMotion: Community Co-Creation for
Value Creation

The theme for Yamaha Day 2022 was “Ties in a new age.” This theme

ered the lowest among developed countries, the Japanese agricultural work-

To bring a better state of well-being to people and the world in ways

conveys that, as the advent of a pandemic raises questions about the con-force is rapidly aging and declining. This product was developed by theunique to Yamaha Motor, we are working to create, confirm, and demon-

nections between people, we should reevaluate those connections while

High-Spec Drone Development Consortium in a project commissioned by thestrate to society the value of integrating vehicles and urban development.

being grateful to our stakeholders. For example, in response to this theme,

National Agriculture and Food Research Organization (NARO), aiming to

The experience and ideas from co-creating with the local community in

our U.S. offices asked customers and employees to speak about their pas-

create safe and cybersecure domestically manufactured agricultural drones.

Tokyo’s Setagaya Ward and Kamakura in Kanagawa Prefecture are being

sion for our brand and how it is rooted in their daily lives. These testimo-

The basic elements of the airframe are based on fundamental technologies

put to use this year in Yamaha Motor’s hometown of Iwata in Shizuoka

nies were then compiled into a single video and distributed to allthat other companies can use, while the design development pursues struc-

Prefecture. We ran our Green Slow Mobility vehicles at the Making Smiles

employees. Such activities for Yamaha Day are held by the Group aroundtural beauty. This initiative will also contribute to improving the international

event near Mikuriya Station, receiving comments from local residents suchthe world.

competitiveness of the domestic drone industry.

as, “This isn’t just about getting around, but also fosters communication

In addition, the Iwata headquarters in Shizuoka Prefecture brought backthe special open house day for employee families in 2022, which was anannual event before the pandemic. As a result, the number of participants
reached a new record and post-event surveys (answered by a test sampleof employees for trial analysis) indicated that Yamaha Day contributes toimproved employee engagement. We plan to continue our efforts withthis initiative next year and beyond as an essential undertaking for theheadquarters, where engagement is lower compared to our overseas
Group companies.

among fellow passengers as well as between passengers and townspeople.”

TY-E 2.0 Electric Trials Bike
The TY-E 2.0 is one project in our approach to achieving carbon neutrality in

We will continue striving to create functional transportation and the emotional value that leads to Kando.

uniquely Yamaha ways. The goal is to gather information for development byacquiring data and identifying issues through actual trial competition, aiming
for fun that surpasses that of internal combustion engines by taking
advantage of the powerful low-speed torque and other benefits only electric
powertrains can offer. The machine and its team made a wildcard entry in the
FIM Trial World Championship in 2022 and is competing full time in the premier IA Super class of the All Japan Trial Championship from 2023.

Green Slow Mobility in operation in 2023 (Iwata, Shizuoka
Prefecture)

Mobile parklet integrating pedestrianand vehicular spaces in 2022 (Setagaya
Ward, Tokyo)

Researching Human Emotions

CLICK HERE FOR VIDEO

To achieve our corporate mission to be a Kando Creating Company, we are working with Yamaha Corporation and the California

Yamaha Day initiatives by U.S.
subsidiaries

Institute of Technology on research that will reveal and recreate the essence of Kando experiences through science and art. The
experiential installation (an interactive artwork) allows visitors to experience the results of our research, and was exhibited at
South by Southwest 2023, a cutting-edge technology and innovation festival held in the United States. Visitors that tried the artwork commented that “we might as well call this engineering emotion.” We will continue to clarify the essences in Kando furClay modeling experience at the open
house event

53

Yamaha Motor Co., Ltd. Integrated Report 2023

ther and use this know-how to enhance the value of our products and services.

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Branding Challenges and Future Initiatives As people’s values continue to change with the advancement of informa-easy to understand. To that end, we plan to focus on the following

2. New brand value evaluation methods

tion and communication technology, and with sustainability drawing

three activities.

In conjunction with the launch of the activities described in 1, we will also
work on creating new evaluation methods to implement the PDCA cycle

attention through global issues such as climate change, the recent pandemic has only further accelerated these changes. Under our corporate

1. Conduct and communicate activities symbolizing the Yamahawith branding activities more effectively.

Motor brandmission to be a Kando Creating Company, we not only offer the world various Kando through our products but also make long-lasting contributions

We will launch activities at our headquarters to communicate our appeal

3. Strengthen branding governanceto society by helping to establish the foundations for daily life and indus-

as a Kando Creating Company both internally and externally in a symbolic

Simply promoting efforts to expand and enhance brand awareness will betries. To be recognized as a Kando Creating Company in a world continu-

and easy-to-understand manner. With this, we aim to expand andmeaningless if it results in unintended situations that could damage theally being built upon new values, it is necessary to communicate theenhance our brand awareness, especially among stakeholders of thebrand instead. We will further strengthen the governance structure forpriorities mentioned earlier and the orientation and attitudes we havecoming generation.

branding with a base at the headquarters.

cherished to date to a new generation of stakeholders in ways that are

ART for Human Possibilities: The Creative Center’s Captivating Future Initiative 
Last year, the Creative Center defined putting forward a Captivating Future Vision as its goal for existence. Setting up and carrying out the roles to make that possible is necessary. Industries and technologies are evolving significantly and quickly, andgiven the magnitude and diversity of changes in stakeholder values and customer relationships, the current way of doing design and innovation will need to evolve as well. In light of these challenges, we would like to make a Captivating Future Vision adriver of the following three initiatives to increase the number of our Yamaha Motor fans.

Captivating ResearchCaptivating DesignCaptivation by Connecting with Fans

Our objective is to create the future through new value amid various soci-Our goal is to maintain a design language that will win support despite

We are seeing signs of change in how we connect with people, communi-

etal issues that are rapidly changing and progressing. We will conduct

people’s increasingly diverse values. We will share values through user

ties, and society through the evolution of information and communications

research to form a common understanding of the current situation, fromexperience (UX)-driven design and continuously create prototyping oppor-

technology. While understanding these changes, we plan to build a newwhich we will isolate our own unique perspective and have our depart-

tunities. The plan is to test hypotheses, develop designs that meet thecommunity to have people become fans of Yamaha Motor as a corporate

ments systematize and reorganize the findings. We plan to utilize thelatest global values, and evaluate them.

entity. We believe that connecting with our fans will lead to future andinformation for creative pursuits in our departments but also to report itsustainable customers. This falls under the Y-DX3: Create the Future action

internally and externally.

theme of our DX strategy.

Research to Create New Value

Creating Designs That Captivate

Connecting with New Fans in Response to Change

ART for Human Possibilities
Let’s strive for greater happiness

Unique perspectives

Customers

UX
Uniqueperspectives

Systemization

Reporting

Prototyping

New
value

Shared values

54

Yamaha Motor Co., Ltd. Integrated Report 2023

Implementation

Identify with theconcept

Customers
Yamaha Motor

Customers

Customers

Customers

YamahaMotor
Customers
Sharing values
Two-way relationshipIndividual networks
DecentralizedIntroduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Research and Development
The world is undergoing rapid changes, such as COVID-19 transitioning from being a pandemic into being endemic, increased
awareness of sustainability, and the acceleration of digital transformation (DX). Against this background, we will set a new
direction for our core technologies in our R&D and shift existing technology areas. Through this, we will realize our Long-Term
Vision of “ART for Human Possibilities: Let’s strive for greater happiness” and our corporate mission to offer new excitement
and a more fulfilling life for people all over the world.

Kenji Komatsu
Executive Officer,
Chief General Manager of theTechnical Research &Development Center

Focus on Human Subjects Research for Differentiating Technologies and Promoting R&D to Expand Human Possibilities 
Our corporate mission is to be a Kando Creating Company, seeking to

The scope of human subjects research is wide-ranging and relates tois precisely because we live in this era that we must ask ourselves, “Whatoffer people around the world new excitement and a more fulfilling life,

studies in many fields. We will work with a broad and multifaceted per-do we need to offer our customers Kando and a more fulfilling life?” By

and our Long-Term Vision for 2030 is “ART for Human Possibilities: Let’s

spective regarding human behavior, thoughts, social interactions, cultural

going back to the basics of human subjects research and conducting R&D

strive for greater happiness.” we have defined and are promoting focus

contexts, biological aspects, and human growth and development. From

down to the processes that may bring us closer to answers, we canareas to realize this vision and have also updated our Companywide tech-this, we aim to gain deep insights about humans that lead to new Kando

achieve new Kando creation. Value that appeals to people’s senses is uni-

nology strategy. This serves as our driving force, and We have redefinedand a more fulfilling life. We will also contribute to Yamaha Motor’s Safety

versally present in our products and services. In order to continue to createhuman subjects research, which we have been conducting for some time,

Vision through the research of human sensibilities and capabilities and its

such value, the Technical Research & Development Center, ouras fundamental research for us. This stems from our belief that to bring

application to technologies.

Companywide technology hub, will take the lead in R&D endeavors.

out people’s possibilities and provide them with greater happiness, wemust first better understand what it means to be a human being.

Nowadays, anyone can obtain a great deal of information, with answers
to almost any question quickly fetched through the development of AI. It

Companywide Technology Strategies 
The heads of all technology divisions at Yamaha Motor sit on the Technology Committee, which formulates our Companywide technology strategy. Since 2022, we have been studying our core technology

Kando Creating Company

Corporate
Missionpolicies to realize our Long-Term Vision, positioning the creation of new value (products and customer
experiences that appeal to their sensitivities), solving societal issues (materiality issues), and providing
enjoyment as the value we offer. With this in mind, we have defined Energy Management, Intelligent

Long-Term
VisionSystems, and Software Services as new core technology areas, and have redefined human subjects
research as fundamental research. We will continue to refine our existing core technologies and promote research themes and resource management in order to acquire new core technologies.

EnergyManagement

New Core
Competencies

Intelligent
Systems
Human
Subjects
Research

Fundamental
ResearchCore
Competencies

55

Yamaha Motor Co., Ltd. Integrated Report 2023

SoftwareServicesPowertrains

Manufacturing

Electronic
Control

Chassis andHulls

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Example 1: Energy Management As part of our efforts to become carbon neutral, we are working onenergy management that pursues efficient energy use, including electrification, carbon-neutral fuel compatibility, internal combustion engine fuelefficiency, and energy conservation in production.

We will plan, develop, and produce highly competitive EV platforms to

We will continue to explore the fun and convenience inherent to internal

accelerate the electrification of a diverse range of products.

combustion engines while aiming to achieve carbon neutrality throughSince our establishment, we have developed a diverse range of productswith strength in powertrains tailored to each country’s energy situations
and product characteristics. The following is an introduction to these

Carbon-Neutral Fuel Compatibility

Electrification

Motorcycles

Powertrains forautomobiles

Outboard
motorsendeavors such as the development of motorcycles compatible with bioethanol fuels and the development of hydrogen engines for automobiles.
V8 hydrogen engine

initiatives.

EV platforms

ROVs
ATVs

Bioethanol-compatible
motorcycles

Example 2: Safety Vision 
We aim to create a world free of accidents together with our customers
based on our Jin-Ki Kanno × Jin-Ki Anzen Safety Vision, in which users canexperience the joy and Kando that comes from advancing their own skills
and abilities while having fun at the same time. The following is an introduction of the three pillars of the vision guiding our activities.
The TRACER9 GT+ is an embodiment of the Jin-Ki Kanno × Jin-Ki
Anzen Safety Vision.

56

Yamaha Motor Co., Ltd. Integrated Report 2023

Technology

Skills

Connectivity

Technologies, such as radar-connected

Utilizing knowledge gained from the devel-

The Y-Connect app provides safety-related

braking systems and human–machine inter-

opment of motorcycles, sensors detect andfeedback to the rider to assist in reducing

faces (HMI), assist riders in identifying

analyze the acceleration, deceleration, andthe risk of accidents.

potential dangers, making sound judg-

turning conditions of a learner’s motorcycle

ments, and skillfully operating the vehicle,

in order to give feedback that helps

helping provide comfort and peace of mind.

improve their skills.

This HMI calls for rider intervention when thesystem determines the motorcycle is getting
too close to the vehicle in front while using
adaptive cruise control.

Training using the Yamaha Riding Feedback
SystemExpansion of Y-Connect app safety functions (deliberation stage)Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and DataIntellectual Properties
We are promoting intellectual property strategies on a global basis and working to create, protect, and utilize intellectual
property rights unique to Yamaha Motor. Through these efforts, we aim to use our intellectual property to raise corporate andbrand value and fulfill our corporate mission to be a Kando Creating Company.

Takeo Kitanaka
General Manager of Legal &Intellectual Property Division,
Human Resources & General
Affairs Center

IP for Business 
Under the banner of “IP for Business,” Yamaha Motor carries out its intellectual property tasks based on its Four Policy
Pillars of Intellectual Property Activities.
The Company is actively using intellectual property analysis through collaborative initiatives with the divisions in chargeof various technology areas. Reporting on intellectual property activities, such as analyses of intellectual properties present
in growth areas, is one of the duties of the Technology Business Committee, which discusses technical strategies from along-term business perspective.
Company executives and management receive an annually published Technology White Paper, which provides visualizations and suggestions about trends in technology based on intellectual property analysis, along with suggestions about thelayout and contents of white papers from an intellectual property perspective. This creates value according to the Four

Four Policy Pillars of Intellectual Property Activities(1) M ove one step ahead of conventional intellectual property activities that consist primarily of intellectual property
creation linked to product and technology development in existing businesses(2) P ursue intellectual property activities that preempt technological developments and the expansion of businessareas by looking beyond our existing technologies and markets(3) Indicate advanced fields that target further preemption and business area expansion through analysis of the intellectual property landscape(4) C ontribute to management decisions and strategy formulation from the perspectives of intellectual property analysis and market and technological growth analysis

Policy Pillars of Intellectual Property Activities.

Intellectual Property Activities to Achieve ART for Human Possibilities Through our work to realize our Long-Term Vision for2030 of “ART for Human Possibilities: Let’s strive forgreater happiness,” we are aiming to not only solve critical societal issues and achieve sustainable growth but
also to enhance our corporate value. Our intellectual
property departments are involved in our business activities from the earliest discussions and create the core
intellectual properties needed for reaching these goals.

SDGs: Outdoor AutomatedTransport Services

SDGs: Motorcycle Stabilization
Support System


MakingCarbon-Neutral Products:
αlive EE (Electric Engine)

Submitted patent applications for vehicle structure (below

Engaged in intellectual property activities from the per-

Proposed electric components utilizing our internalleft), a visualization system for factories utilizing automatic

spective of the three pillars that support the Jin-Ki Kanno

combustion engine expertise and technology that canguided vehicles that accounts for further expansion of such

× Jin-Ki Anzen Safety Vision: Technology, Skills, andwithstand high power output. Applied for a patent on

automated vehicle services, and a cargo handling system toConnectivity. Applied for a patent for a system thatthe housing arrangement for electric motors, etc.

facilitate the operation of automatic guided vehicles.

stabilizes a two-wheeled vehicle even at low speeds via
technology controlling drive and steering forces.

Trademark(patent-pending)(patent-pending)Trademark57

Yamaha Motor Co., Ltd. Integrated Report 2023

(patent-pending)Introduction

Activities for Greater
Functional CompetitivenessMedium- to Long-Term Strategies

Management Platforms

Facts and DataIntellectual Property Activities and Portfolio Underpinning Business Strategies 
Our intellectual property departments become actively involved in our busi-

Core Business: M otorcycle Business—The YZF-R15 in Our Premium Segment Strategy

nesses from an early stage. This is to visualize the growth areas beyond
each business strategy through various intellectual property analyses andEngineOverall Product and
Designto promote the use of intellectual property mixes—a combination of pat-

(patent-pending)Headlight mounting
arrangement to create
the distinctive front
designents, design rights, trademarks, and other rights—in line with the businessstrategy. For example, by acquiring not only design rights related to theappearance of our products but also patent rights that view the appearance from a technical viewpoint, we can create unique value through multifaceted intellectual property protection of our products and services.

Variable Valve Actuation (VVA)

Quickshifter

Patents
Actuator layout

Patents
Sensor layout

Design rights

Y-Connect

The Motorcycle and Marine Product businesses, positioned as core busi-

Y-Connect

nesses in our business portfolio, rank high regarding the share of essential

Trademarkpatents and the number of new inventors (shown below), securing a highadvantage in patent creation efficiency over our competitors. Meanwhile,(patent-pending)
Unit to connect vehicle
and smartphones

the Robotics and SPV businesses are positioned as growth businesses inour portfolio. With these, we will continue to invest resources for growthand increase the number of new inventors to support business expansion

Growth Business: Robotics Business—Expansion of Intellectual Property Portfolio through Integration of YRH Businesses

while aiming to secure a competitive advantage over our competitors.
Yamaha Motor is taking resolute action in cooperation with the intellec-

H05K13: Electric component assembly devices

tual property authorities of each country against any infringement of the

H01L21: Semiconductor devices

intellectual properties that support its core and growth businesses. We are

B29C45: Injection molds

responsible for protecting the Yamaha brand through trademark registra-

H05K3: Printed circuit devices

tion in most parts of the world, creating value, and securing superiority

SMT

H01L23: Semiconductor device details

based on business strategies in all countries and regions.

TCB FlipChip

Molding

Die Bonder

Wire Bonder

B29C33: Molds
B41F15: Screen printing devices

Printer

B29C43: Compression molds

Inspection

G01B11: Optical measurement devices
B25J9: Manipulator controls

Yamaha Motor Co., Ltd.

0SHINKAWA LTD.

SCARA robot

700
APIC YAMADA CORPORATIONPFA Corporation

1,400

2,100
(Patent applications)* Business conducted by Yamaha Robotics Holdings Co., Ltd. (YRH) and its subsidiaries: SHINKAWA LTD., APIC YAMADA CORPORATION, and PFA Corporation

Share of Important Patents and Number of New Inventors
Motorcycles

Share of important patents

10.0

Share of important patents

Marine Products

(%)

8.0

6.0

4.0

2.0

1.8

16.0

1.6

14.0

1.4
1.2
1.0
0.8
0.6
0.4
0.2

0
500

1,000

1,500

Number of new inventors

58

Yamaha Motor Co., Ltd. Integrated Report 2023

2,000
(Persons)

12.0
10.0
8.0
6.0
4.0
2.0
Note: Robotics business only0

0
0

Robotics(%)

Share of important patents

(%)

0

50

100

150

200

Number of new inventors

250

300

350
(Persons)

0

100

200

300

400

Number of new inventors

500

600
(Persons)*1 Number of new inventors: Number of new inventors who filed applications in the last 10 years. Indicates the level of focus on humanresource investment.
*2 Share of essential patents: Percentage of patents in the top 5% of theannual average number of citations in a specific population. Indicatesmarket dominance or pricing power in a specific area.
*3 The dotted line is an approximate linear line for each point. Indicatesthe average of competing providers in terms of efficiency in creating
essential patents.
*4 These indices are based on data from the Intellectual Property/
Intangible Asset Investment and KPIs materials presented at the 16th
meeting of the Study Group on Effective Disclosure and Governanceof IP Investment and Utilization Strategies by the Intellectual Property
Strategy Headquarters, Cabinet Office, Government of Japan; and theEstablishment of KPIs, etc. for Intellectual Property in Accordance with
the Revision of the Corporate Governance Code (Interim Report) working paper from The University of Tokyo Institute for Future Initiatives.

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

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

Tatsuya Masuda
Executive Officer,
Chief General Manager ofProcurement Center

Co-Creating with Yamaha Motor to Increase Corporate Value and Competitive Strength 
We made “co-creation” the global procurement policy guiding our activities over the current three-year Medium-Term Management Plan that began in 2022, and this expresses our desire to work with our suppliers to create new value and strengthen
our competitiveness through manufacturing.
The three pillars of “growth,” “profitability,” and “robustness” are upon which we and our suppliers will enhance our corporate value. In the first year of the Medium-Term Management Plan, we faced various difficulties, including uncertain global
affairs, supply chain disruptions due to repeated waves of COVID-19 infections, and a worldwide shortage of semiconductors. However, we found a way to work with our suppliers to overcome these hurdles and co-create, and in 2023, we aim to returnto the field under the premise of living alongside the coronavirus. We will promote each activity by reaffirming with our suppliers the importance of correctly recognizing and solving problems from a san-gen (the actual place, the actual thing, the actual
facts) perspective rather than armchair arguments, in addition to returning to the three G’s of genri, gensoku, and genten (theory, principle, and point of origin).

Growth

Profitability

Robustness

In terms of increasing growth, amid the technological innovations in the

For profitability, we will continue to put the strengths and weaknesses of

To ensure stable business continuity and growth for our suppliers and themobility space exemplified by CASE (connected, autonomous, shared &our business partners into visual form in order to strengthen our existing

Company in the future, we will ensure the robustness of Yamaha Motor,

service, and electric), matching our needs with the seeds of our businessbusinesses and take balanced actions to promote initiatives that will

its Group companies, and the entire supply chain by ensuring legal compli-

partners will be the key to evolving our products. To make this matchingenhance their competitiveness. We involve the top management of ourance, concern for the environment, and consideration for human rights.

process efficient, it is crucial to discover the unique technologies of ourbusiness partners to achieve a shared understanding of what we aim for

In 2019, we conducted on-site checks of our suppliers in Indonesia to

suppliers and connect them with our development departments at anwith our manufacturing through co-creation, and promote manufacturingconfirm there were no problems with the working environment or worker

early stage.

by analyzing current conditions and implementing theoretical-value-based

health and safety. We also surveyed suppliers and technical intern trainees

thinking at our business partners’ sites. In 2022, on-site activities werein Japan from 2021 to 2022. Assessments and follow-up surveys of thement and product quality departments worked on a global scale duringsometimes stagnant due to the COVID-19 pandemic, but from 2023, wefour suppliers further confirmed no problems.

the production preparation stage.

will accelerate our efforts as we return to the field.

For the E01 and NEO’s electric scooters released last year, our develop-

In the future, we will consider the unification of component specifica-

In addition, we have begun sharing know-how from our internal Smart

We constantly acquire information on laws, regulations, and trends
regarding environmentally hazardous substances in all countries. By con-tions across businesses as we diversify powertrains and introduce technolo-

Factory initiative with our suppliers. Rather than introducing large-scaleducting non-use surveys with our suppliers regarding substances thatgies in advanced areas, as well as medium- to long-term partnershipequipment and materials from the outset, we support introducing smart

require action, we prevent problems before they occur and ensure compli-

strategies, to realize this type of unification.

technologies that meet the needs of our suppliers’ sites. To make it easierance with laws and regulations.

for our suppliers to adopt their own smart factory initiatives at their sites,
we set up a permanent exhibition space at our Suppliers Center in 2022 toshare examples of our implementation. Furthermore, to develop thehuman resources necessary for elevating DX at our suppliers’ sites, we takeon next-generation leaders from our suppliers as trainees and provide
them with the experience of converting their sites into smart factories,
working together to improve technology and human resource profitability.

59

Yamaha Motor Co., Ltd. Integrated Report 2023

Introduction

Medium- to Long-Term Strategies

Responding to Risks with Business Partners to Aim for Sustainable Growth 
The Procurement Center is working with suppliers to achieve more stablepartners to remind them of the importance of these measures and shareparts and raw materials procurement to realize sound production in theinformation on items each company should implement to enhance resil-

face of various possible risks.

ience throughout the supply chain.

In preparation for natural disasters such as typhoons and earthquakes,

In response to the global shortage of semiconductors, we are develop-

we maintain an up-to-date understanding of our upstream supply chain

ing components using more commonly available semiconductors andnetwork during normal operations and have built a system that allows us

making the upstream supply chain of semiconductors easier to understandto make quick decisions and respond to emergencies. Nowadays, the types

visually in order to share our long-term production plan quantities with pri-of risks that need to be addressed are becoming more diverse, including

mary, secondary, and tertiary suppliers and thereby ensure stable

the threat of cyberattacks. We hold seminars for our domestic businessprocurement.

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Message from Management

Olivier Prevost
Deputy Executive Officer,
YMC Vice President,
Yamaha Motor Europe N.V. (YMENV)

Collaborative Innovation for Carbon Neutrality

Working Toward Carbon Neutrality in the Supply Chain 
While the entire supply chain needs to work toward making carbon neu-

do not use environmentally hazardous substances. This scheme reuses

trality a reality, each supplier’s efforts vary greatly depending on their cir-polypropylene scraps from the resin material manufacturing process, which

cumstances. To accelerate our efforts to reduce CO2 emissions, we held awere previously disposed of, thereby contributing to environmentally haz-briefing session in 2022 for our suppliers to explain our direction and ini-ardous substance-free and carbon-neutral production. These materials are

tiatives. In addition, we had study sessions on how to provide visuals or

already being used in products in ASEAN countries, and we will continue

displays of carbon emissions for suppliers who wished to participate, pro-to expand the range of products and regions covered.

moting the understanding of emissions at each company to get a better

We are also the first motorcycle manufacturer in Japan to begin using

picture of the entire supply chain. Furthermore, 13 companies with uniquegreen aluminum—aluminum refined using renewable energy with low CO2

technologies and know-how regarding carbon emissions reduction sharedemissions—as a raw material for aluminum motorcycle parts. We haveinformation in the form of technology exhibits and seminars to promoterolled out this material in larger motorcycles and off-road competition

carbon-cutting activities at each company involved in the supply chain.

models, with plans to expand use of the material in more models once weTo shed light on one of our specific initiatives, we have worked with ourcan secure a greater supply.

suppliers to develop recycled polypropylene materials for plastic parts that

Diverse Human Resources to Tackle Global Challenges 
The environment surrounding the supply chain is becoming more complex

by the Procurement Global Executive Committee (PGEC),* after which aevery year. As each region encounters various situations, solving procure-global policy is decided. Through this framework, these opportunities forment issues with standardized measures is becoming increasingly difficult.

discussion are expected to help the Group’s personnel develop a world-

As a framework for discussing such procurement issues on a global

wide perspective and play an active role in the Company, making it doubly

basis, we have formed subcommittees where procurement managers, as
representatives from each site, gather and discuss such challenges. The
conclusions from these subcommittees are further discussed and approved

60

Yamaha Motor Co., Ltd. Integrated Report 2023

effective as a venue for global human resource development.
* A policy-deciding committee composed of procurement managers from overseas sites
and the Procurement Center

In order to address the issue of climate change, we are required todecarbonize our economic activities. With Environmental Plan 2050,
Yamaha Motor sets up ambitious goals to achieve. Procurement
activities and carbon neutrality are linked when it comes tosustainability. To achieve carbon neutrality, organizations need toconsider the environmental impact of their purchasing decisions andprioritize sustainable practices across the whole supply chain.
Procurement is the function that is able to reduce the emissions
from the upstream ecosystem and contribute to the goal’s
achievement. For this purpose, we have to implement systemicchanges and a focused approach. Systemic changes are necessary toenhance the competence of purchasing teams and suppliers in orderto develop sustainable procurement criteria that consider
environmental factors, review our operational and management
processes, and collaborate with companies that align with ourcompany’s goals. A focused approach involves identifying CO2
emissions and concentrating on reducing them. We are working
with our suppliers to visualize CO2 emissions generated in the
manufacturing process for components and raw materials in the
supply chain, reduce energy consumption based on theoreticalvalue-based thinking, and reduce emissions through newtechnological developments.
This approach and such changes require collaboration with all
stakeholders. We have to engage in dialogue to encourage suppliers
to adopt sustainable practices and explore innovative solutions. A
carbon neutrality approach also requires strong “Collaborative
Innovation” with our suppliers in order to enhance our mutual
corporate value.

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Manufacturing and Production (Monozukuri)
Yamaha Motor is accelerating its circular economy initiatives and carbon neutralization efforts to create sustainable value. The
Manufacturing Center considers recycling materials and reducing CO2 emissions from materials and parts to be critical issues.
We aim to accelerate these efforts to make a positive impact on the environment. We also globally promote creating new value
in the field in order to deliver products that satisfy our customers.

Koutarou Ueda
Executive Officer,
Chief General Manager of
Manufacturing Center

Toward a Circular Economy 1. Efforts to Reduce CO2 Emissions from Purchased Materials
Resin: Greater use of recycled materials

We aim to switch all materials to low-CO2 materials by 2050 by promoting (1) the use of recycled materials, (2) the use of materials produced with renew-

Resin: Adoption of plant-derived materials and low-CO2 materials

able energy (green materials), and (3) the use of plant-derived biomass materials. For example, the switch to recycled aluminum alloys has been completed

Aluminum: Greater use of recycled materials

for most materials used for in-house parts. In addition to developing new ways to use recycled materials, we became the first Japanese motorcycle manufac-

Aluminum: Procurement of green materials

turer to begin procuring green aluminum (as virgin aluminum) in February 2023. For resin, we have been an industry pioneer in using recycled polypropylene

Steel: Greater use of recycled materials

materials made from market-recovered materials since 2010. Subsequently, we developed new recycled polypropylene materials to comply with stricter regu-

Steel: Procurement of green materials

lations on environmentally hazardous substances, for which production began in November 2022. In addition, as an application of biomass materials, wehave decided to use polypropylene materials containing cellulose nanofiber (CNF) for select marine product parts, an industry-first.

2. Promotion of Resource Recycling
We aim to reduce the use of resources as well as repeatedly reuse them to

2010

2020

2030

2040

2050

New Goals for the Manufacturing Phase

help achieve a sustainable, recycling-oriented society, working to minimize

Improving Recycling Quality
Higher material recycling ratefacility waste through 3R initiatives (reuse, reduce, recycle). The new goal
we have set is to recycle all waste by 2050 and the Company is moving

100% Recycling Rate by 2050 (zero landfill)
Medium-term target: 99% by 2035

Industrial Waste Reduction
Decrease by 1% per year compared to 2019

forward with measures to that end.
One of these initiatives is to extend the life of production materials, andas such, we are working on extending the life of fluids used for cutting
processes. Metal chips and fragments are a breeding ground for microorganisms, so we have increased the degree of removal to prevent the
cutting fluid from putrefying. In addition, we have switched the dilution

Production Process

Emissions

Value
Landfill: 81,000 Unknown: 79,000 tons
tons (8%)(7%)
Target of zero

Materials

Target of zero

Recyclewater to low-hardness river water to avoid the liquid separation that

Chemicals

accompanies concentration, thereby doubling the life of the liquid com-

Total global
emissions in
2021:

pared to conventional means.
As a result of these efforts, the amount of waste per sale in 2022 was

1,069,000

43% less than in 2010. We will continue to push these and similar
resource-recycling efforts forward.

tons

Expansionandpromotion ofrecycling

Recycled: 909,000 tons (85%)
Breakdown: M aterials (63%),
thermal (21%)

61

Yamaha Motor Co., Ltd. Integrated Report 2023

Waste

3R
promotion
Processes, development, logistics,
administration

ConvertMore

Material
recyclingCO2-saving
treatment
options

ReduceLandfill
Zero

Less
Landfill

Introduction

Medium- to Long-Term Strategies

Theoretical-Value-Based Energy × IoT to Take the Energy Conservation Grand Prize 
Toward achieving a decarbonized society, we are accelerating our efforts toFactory since 2020 by combining theoretical-value-based energy based onminimize energy use and utilize clean energy by expediting our goal of fac-

our long-accumulated know-how with cloud IoT visualization. To achieve

tory carbon neutrality from 2050 to 2035.

zero standby power use on machining lines, we have thoroughly imple-

Within the mindset of minimal energy use, theoretical-value-based

mented automatic shutdowns by modifying equipment control circuits,energy is positioned as a pillar of our carbon neutrality efforts. We viewachieving energy savings down to the second that humans cannot perform

energy in terms of theoretical values and aim to minimize energy con-and recording energy savings of 32% compared to conventional methods

sumption by considering the energy that is truly necessary as energy withwhile incurring zero improvement costs.

“value” and all other energy usage as targets for improvement. Compared

These efforts were recognized last year when the Company was awarded theto the conventional method of cutting visible losses, this method enables a

Energy Conservation Grand Prize. We see the challenge of going carbon neutral

higher level of energy conservation in that it determines the desired state

as an opportunity for new growth

based on theoretical values and pursues the realization of that state. As aand will contribute to global envi-

result of pushing forward on these efforts across all Group companies inronmental preservation, improve

Japan since 2013, our CO2 emissions per unit of production in 2022 were

our corporate competitiveness,

60% lower than in 2010. This is an average reduction of 5% per year, sev-

and continue to be the Yamahaeral times greater than previous outputs. We have been promoting efforts

Motor loved by all.

to achieve the ultimate form of energy conservation at the HamakitaCompetitiveness from Theoretical-Value-Based Production and Manufacturing
DX Technology—Creating New Value On-Site 
We do not see DX technologies for manufacturing merely as tools for cost

namely, automating simple tasks to allow people to concentrate more on

reduction, but as powerful keys to transform the management of manu-

value-added tasks, such as hypothesis formulation and verification. To

facturing sites with customer value in mind.

convert this value within each division into value for customers, we are pro-

The concept of theoretical-value-based production is beginning to per-moting efforts to connect globally through the supply chain andmeate our manufacturing sites, with model cases surfacing using manufac-

manufacture products with the same philosophy. By analyzing and evaluating

turing DX technologies casting a light on the future of the workplace,

information on manufacturing gained by each division, such as conditions
and quality data, and collaborating with parts suppliers and overseas manufacturing bases, we are enhancing our technical capabilities to guarantee
each product we make, one by one. These efforts have already produced

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Message from Management

Teddy Cahyadi Yacob
Director, PT. Yamaha Indonesia Motor
Manufacturing (YIMM)

Establishment and Expansion of Global Management
We have been promoting a shift from the previous Japan-focusedmanagement of manufacturing divisions to global management
helmed by the Global Manufacturing Committee (GMC), which waslaunched in 2020.
In 2022, we invited additional manufacturing leaders from various
regions to the GMC and expanded the system to enable management decisions that integrate all regions. Under this system, basedon the policies developed at the Monozukuri Conference in 2021,
we steadily implemented activities throughout 2022 such as developing methods and measures at technology and theme meetings;
sharing progress, results, and issues at regional meetings; and cycling
through the individual result reports from management reviews andfactory visits. We then shared our forthcoming policies through lively
discussions at the Monozukuri Conference held at the end of 2022.
In 2023, we aim to establish this global management system andfurther expand the scope of our decisions. At the same time, we
intend to resume real-life communication while leveraging the benefits of remote working that arose from the COVID-19 pandemic,
thereby achieving more efficient management than ever before. As amanufacturing department, we will continue to contribute to theenhancement of the trust, satisfaction, and loyalty of our customers
around the world.

many new processes to transform on-site management, such as (1) and(2) below.
(1)	Management of quality product conditions through coordination of
manufacturing and quality data with suppliers up to the vehicle frame
completion process(2)	Remote condition monitoring to manage equipment conditions at overseas locations and business partners without the need for highly skilled
engineers or analysis equipment
Candid photos from the 2022 MONOZUKURI
Conference

62

Yamaha Motor Co., Ltd. Integrated Report 2023

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Marketing
We view marketing not as a mechanism for delivering products and services to customers but as an activity that brings
satisfaction and smiles to our customers. Always taking a view from the customer’s perspective, we aim toprovide value that surpasses clear-cut expectations, uncover potential issues, provide solutions, and solve
societal issues through our business.

Kumiko Imai
Executive General Manager ofOverseas Market Development
Operation Business Unit

Marketing That Showcases and Augments Yamaha Motor’s Strengths 
The Company established “The Global Yamaha Way in Marketing in Sales” to clarify our shared values for conducting marketing in the realm of sales. The overarching vision of this manifesto is “Continuing to Create Lifetime Yamaha Customers,” and the program itself brings Yamaha sales bases around the world together toPsychology

Experience

globally share, teach, and learn from one another the knowledge they have cultivated individually while spurring each other to greater heights. Yamaha Motor

Share

divides the customer journey into its own seven steps and conducts customer-centric activities for each. This provides a common framework for deliberation among

Awareness
InterestExperience

our bases around the world in order to define the objectives, identify the target customers, and thoroughly determine aims and actions aligned with said customers.
In sharing successful marketing cases, we employ a “teach and learn” approach that examines why the case was successful, what difficulties were faced, and what

Customer
Searchis needed for continued success. Doing so leads to in-depth study and discerning of the key factors of the case, and the knowledge born of the discussions is thenPurchase

formulated, accumulated, and shared globally, leading to new successes. Having members from around the world who share the same values gather in the same
location for meaningful, customer-centric discussion not only enhances teamwork but also enables the application of knowledge from other countries and will
propel us to the front of global competition.

Visit

Decision

ActionSeven Steps of the Customer Journey as Defined by Yamaha Motor

Overseas Market Development Operations 
Under the slogan of “Challenge & Dedication for Prosperity,” the Overseas

established in 1991. Since then, the following three points have been theto region. With this in mind, we sometimes go aboard fishing boats toMarket Development Operation (OMDO) Business Unit offers Yamaha

DNA of our activities, leading us to solve societal issues and expand ourbetter understand the local environment and its severities before introducing

Motor products and after-sales services in approximately 140 countries andbusiness through an approach prioritizing real-world needs.

an outboard motor that is sure to meet the needs of our customers. These

regions, mainly in Africa, Central America, and the Caribbean.

• Discover real customer needs in the field and propose working solutions

activities are why our outboard motors are loved and trusted worldwide.

Since the 1960s, we have contributed to the modernization of local

to their issues through new products

OMDO is also currently promoting marketing activities using a new,fisheries and improved living standards by introducing outboard motors• Communicate how to use and service the products and encourage cus-

two-pronged approach of applying san-gen principles (the actual place,and FRP fishing vessels, and providing instruction on fishing and catch

tomers to use them for a long time through Sales, Service, and Sparethe actual thing, the actual facts) and digital marketing, something bornpreservation methods through the Japanese government’s Official

parts (3S) initiatives

out of the COVID-19 pandemic. We will further develop our activities in

Development Assistance (ODA) arm and other activities in developing
nations, especially in Africa. In 1977, the Overseas Projects Division wasestablished as a first step, before today’s OMDO department was

63

Yamaha Motor Co., Ltd. Integrated Report 2023

• Respect the customs and culture of each country
Using outboard motors as an example, the shape and weight of theboats, as well as fishery styles and actual usage, vary entirely from region

the field by raising the efficiency of training the field staff indispensable for
OMDO’s business via digital technologies.

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Message from Management

Initiative Case Study 1: Go Beyond Caravan
OMDO runs a grassroots initiative with its distributors called Go Beyond Caravan. In addition to displaying and selling products, we visit fishing grounds and other locations with dealers to conduct service clinics for Yamaha users
and provide information on proper maintenance using Genuine Yamaha parts and the benefits of using Yamalubebrand products properly. Yamaha is expanding the caravan to various countries worldwide so that customers canuse their purchased products safely and for a long time. Although conducting activities locally was challenging

Risa Nishi

during the COVID-19 pandemic, service clinics gradually resumed in the second half of 2022 and local customers

Panama Representative Officehave expressed their delight, saying they had grown tired of waiting. Some have even been waiting for three years
to repair their outboard motor.

Promoting 3S Differentiation Strategy through Close
Ties with the Community


Initiative
Case Study 2: Impact-Weighted Accounting
in Clean Water Supply Systems
As of April 2023, 50 Yamaha Clean Water Supply Systems (YCW) have been installed. Another

Impact Measurement Framework for YCW Projects

OMDO initiative, these water purification systems have mainly been constructed in Africa, andthe units installed in the early stages of the project have been supporting the lives of residents

Benefits

for 17 years. Under the “Changing Water Changes Lives” slogan, the clean water business

Population

Evaluation
Methodworks under the idea that access to drinkable water will significantly impact the lives of local
communities. While previous activities have collected qualitative information on the improvement of people’s lives after using a YCW installation, we have taken an impact-weighted
accounting approach to provide stakeholders with a better understanding of the social signifi-

Less time spent on
drawing water =Time savings andincreased productivity

Number of people
able to reducelabor hours fordrawing water

Estimatedeconomicopportunities fromtime savings

Avoiding loss oflife due todiarrhea

Number of people
whose lives were
saved

Estimated improvement and theassessed value of YLL(Years of Life Lost)

cance of this project from a quantitative perspective.
Although there are still many issues to be addressed in impact-weighted accounting, such as
evaluation criteria and calculation methods, we believe it helps better understand our activities,
and quantitative inspection from an impact perspective can lead to the discovery of issues thatwere difficult to see. Expanding efforts to solve societal issues with secondary and tertiary impacts
is also possible. Continuing to address such issues through our business lies at the core of OMDO’s
founding, and we will continue to take on new challenges in the same spirit in the future.
For further details on our Impact Assessment, please see Deploying Clean Water Systems.

Activities

Outputs

Clean water supply
system development

YCW system saleand installation

Field surveys

Establishment of a­service system

ODA and othergroup-building
activities
NGO collaborations,
etc.

64

Outcome

Yamaha Motor Co., Ltd. Integrated Report 2023

Less need to boil or otherwise treat
water for use (money and time saved)
Simplified access tosafe water

Expected Annual Revenue Per Capita

5%–8% Improvement

Impacts Based on Field Survey Results (Qualitative Evaluation)Less time spent drawing water

Establishment of a local
water committee (formaintenance andmanagement)

Measurement
Results

Decrease in cases of diarrhea
Decrease in infectious diseases associated with water consumption or use
Decrease in cases of skin disease

Greater opportunities for
employment and school
enrollment
Launch of business for selling
water outside the village
Women serving on the watercommittee, i.e., improvedsocial status

Improved qualityof life
Higher resident
population
Improved
self-governance

OMDO’s Panama Representative Office is conducting studies andgathering information in the Central American and Caribbean markets, which are expected to grow in the future.
I was assigned to this office in January 2023. We first noticed
that customers’ needs and reactions differed significantly fromcountry to country and even region to region within the same
country. Using commuting as an example, customers commuting
to work in Guatemala City value fuel economy, durability, andpower to move briskly in traffic jams. On the other hand, customers in small suburban towns that use their vehicles daily to getaround place importance on being easy to handle in narrow alleys
without being overly powerful. It was a great learning experience
to realize that the values customers seek differ from our perceptions.
From the Japanese perspective, we tend to discuss Central America
as a single group. I was able to reaffirm that to offer value exceeding customer expectations, it is important to really know our customers and to conduct activities rooted in the local community.
In the future, we will work to collect, analyze, and present information by sticking to stores in priority areas to deepen our understanding of customers and take appropriate actions. In the medium
term, we would like totake on the challenge of
expanding these successful cases to other markets.

Interviewing a private mechanic in the
Panamanian market

Management Platforms
66
68
69
72
73
74
82
83

65

From the Chairman of the Board of Directors
From the Outside Director
Outside Director Dialogue
Directors and Audit & Supervisory Board Members
Executive Officers
Corporate GovernanceRisk Management
Compliance

Yamaha Motor Co., Ltd. Integrated Report 2023

From the Chairman of the Board of Directors
An Assessment of Our Corporate Governance
Structure and Remaining Issues
One year has passed since my appointment as chairman of the Boardof Directors, a position that has given me a bird’s-eye view of Yamaha
Motor’s corporate governance structure. In that capacity, I believe theCompany is steadily and successfully establishing mechanisms to
respond to the increasingly strict demands surrounding corporate
governance. Outside directors also make various suggestions during
discussions at Board meetings, as they feel they can comfortably
engage in open and frank discussions. Still, some issues remain andnew ones are sure to emerge, and I believe it is my role to oversee
how the Company addresses each one of these issues.
Over the past year, I have felt that one of our strengths in terms ofcorporate governance is the overall diligence of our employees. If they
have a solid understanding of the topic at hand, sound execution issure to follow. However, while maintaining a uniformly high level of

I will strive to support theestablishment of
future businesses and foster a
Board of Directors that revs up our
executive officers in their duties.

Katsuaki Watanabe
Chairman and
Representative Director

66

Yamaha Motor Co., Ltd. Integrated Report 2023

Introduction

Medium- to Long-Term Strategies

awareness of issues on a global scale is no easy task, it is still something
we are behind on. To address this, we have been actively promoting theuse of e-learning. To prevent such educational initiatives from becoming purely perfunctory, we incorporate case studies into our curriculumthat feature scenarios that have actually occurred at the Company. In
fiscal 2022, we were able to increase both the quality and quantity ofthese efforts and are seeing the benefits manifest.

The Role of the Board of Directors
Fiscal 2022 was the first year of the current Medium-Term
Management Plan. Since business portfolio management is at theforefront of the plan, we focused many of our discussions on measures to that end. In addition, to respond to changes in the external
environment, we held several discussions on the themes of carbon
neutrality and electrification.

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

I believe the Board of Directors has three major roles in facilitatingsuch discussions. The first is to oversee the executive officers; thesecond is to make final decisions; and the third—and perhaps themost important one—is to give advice to executive officers on management issues. To do this, we must first consider precisely which
management issues should be brought to the Board’s agenda, a true
test of nerves for any chairperson. I believe it is also very importantthat we utilize the Board of Directors skills matrix to raise the qualityof discussions, as having a balanced composition of skill sets—
selected for their particular importance in the execution of management duties—allows the Board to set pertinent agenda items andprovide advice on management issues. As skills matrices are also a
revised topic in Japan’s Corporate Governance Code, we will review
our use of the Board of Directors skills matrix on an ongoing basis.

From the Chairman of the Board of Directors

Skills Essential to Yamaha Motor
Among the skills essential to Yamaha Motor are experience in global
management and experience and expertise in the manufacturingindustry, such as development, production, and sales operations.
Additionally, if we are to move business portfolio management forward under the current Medium-Term Management Plan, we must
establish new businesses with an eye toward our next stage of
growth. Experience and knowledge in areas such as business development and mergers and acquisitions (M&As) are essential to this purpose. Furthermore, I think it may also prove effective to introduce
branding and communication as new key skills, because I feel there is67

Yamaha Motor Co., Ltd. Integrated Report 2023

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

room for improvement with the Company’s branding efforts and that
we need to bolster our communication with society in general. As amanufacturing company, we take great pride in developing, producing, and selling our products. I often hear people say, “You know
how good a Yamaha is when you ride one, but you have to ride tofind out.” I believe we must strive to devise new and creative means
to convey how we connect with society and the value we can offer
without relying solely on first-hand experience.
Our revised skills matrix is not yet in its final form. Currently, outside directors account for over half the members of the Board, and of
the total of 15 directors and Audit & Supervisory Board members,
four are women, which speaks to the rise of diversity as one of ourstrong attributes. We will continue discussions on identifying vital
skills and utilizing our skills matrix to further increase the effectivenessof the Board of Directors.

We are also furthering the delegation of responsibilities andauthority to expedite decision-making. For example, we haveappointed a fellow*1 to take charge of the YNS project*2 currently
underway. To facilitate important decision-making on-site, we arepromoting both the sharing of values that form the basis for suchdecisions and the delegation of authority, which in turn will connect
to the development of the successors who will lead the Company into
its future generations. Additionally, we are establishing systems tonurture these successors and have developed a candidate registry anddatabase. The implementation and use of these systems will befurther discussed moving forward.

Strengthening Global Governance andPlanning for Succession

To Our Stakeholders

Our corporate governance structure, which we have been developing
for several years now at our major subsidiaries both in Japan andoverseas, is close to completion. Clarification of the roles of each baseand the establishment of contact points has made it easier to communicate on a global level. In addition to building such frameworks,
promoting awareness of corporate governance on an individual levelis equally important, and we are making steady progress in this regard
thanks to the enhanced educational curriculum I mentioned earlier.
Moreover, we make it a point to communicate the importance ofgovernance, along with other related issues, to our subsidiary leaders
at semiannual global management meetings. President Hidaka also
holds monthly one-on-one online meetings with these leaders, which
has contributed to increased awareness of governance-related
matters.

*1 Persons with extensive specialist expertise, abilities, and/or connections in a particular field, appointed to a leadership position in that field by the Board of Directors*2 The Yamaha Motor to the Next Stage (YNS) project aims to optimize day-to-day
operations and reform management platforms on a global basis.

In fiscal 2022, we achieved ¥2 trillion in net sales. We first proposed
targets of ¥2 trillion and ¥3 trillion in 2015, but in truth, we did not
yet have a concrete picture of what that looked like. However, here
we are today having cleared that ¥2 trillion milestone and even ¥3trillion is in our sights. I am proud to say that we were able to grow tothis point through constant discussion and implementation of themeasures we felt necessary to reach the next stage of our development, rather than simply assuming that our progress would continue
in a straight line on a ¥1 trillion scale. Going forward, I hope for the
Board of Directors to continue revving up its executive officers byselecting forward-looking agenda items and providing accurate advice
that will take Yamaha Motor toward its next stage of development.
As chairman, I will dedicate myself to ensuring the proceedings at
Board meetings are of high quality and humbly ask for your continued understanding and support.

From the Outside Director

Introduction

Medium- to Long-Term Strategies

I will leverage my expertise tocontribute to the enhancement of
Yamaha Motor’s corporate value.

Jin Song Montesano
Outside Director
ProfileSeptember 1995: 	Congressional Affairs Director of Korea Economic Institute of America (KEI)
July 2001:
Corporate & Government Affairs Director, Asia Pacific of GlaxoSmithKline plc.
July 2005:
Vice President, Communications, Asia Region of GE Money
March 2009:
Vice President, Corporate & Government Affairs, Asia Pacific of Kraft Foods, Inc.
July 2012:
Vice President, Global Public Affairs of GSK Vaccines
November 2014: 	Executive Officer and Managing Director in charge of Public Affairs, CSR, andEnvironmental Strategy of LIXIL Group Corporation
November 2014: 	Senior Managing Executive Officer and Chief Public Affairs Officer of LIXIL
Corporation
February 2015: 	Director, Senior Managing Executive Officer and Chief Public Affairs Officer of
LIXIL Corporation
September 2017: 	Director, Senior Managing Director and Chief Public Affairs Officer of LIXIL
Corporation
June 2020: 	Director and Executive Vice President in charge of Human Resources, General
Affairs, Public Affairs, IR, External Affairs and Corporate Responsibility, and Chief
People Officer of LIXIL Group Corporation
December 2020: 	Director and Executive Vice President in charge of Human Resources, General
Affairs, Public Affairs, IR, External Affairs and Corporate Responsibility, and Chief
People Officer of LIXIL Corporation
March 2022: 	Outside Director of the Company (to present)
October 2022: 	Director and Executive Vice President in charge of Human Resources, General
Affairs, Public Affairs, External Affairs and Corporate Responsibility, and Chief
People Officer of LIXIL Corporation
April 2023: 	Director, Representative Executive Officer, Executive Vice President, Human
Resources, Communications, External Affairs, and Impact Strategy, and Chief People
Officer, LIXIL Corporation (to present)
Note: As of December 1, 2020, LIXIL Group Corporation and LIXIL Corporation formed a merger(New company name: LIXIL Corporation).

68

Yamaha Motor Co., Ltd. Integrated Report 2023

Board Meetings Where Openness andCandid Opinions Are Welcomed
Board of Directors meetings at Yamaha Motor are a place for open
and honest discussions during which very frank opinions areexchanged. When I first assumed my post as an outside director, thecandidness of these discussions came as a positive surprise. At Board
meetings, I can express my views without hesitation because themanagement team genuinely takes on board any opinions and advice
put forward. I have been particularly proactive in making suggestions
on topics strongly related to my fields of expertise, namely, enhancing
diversity and inclusion (D&I) and strengthening human capital
resource management, as they are management priorities Yamaha
Motor has set.

Fostering an Inclusive Culture That
Generates Innovation
Over the past year since being appointed an outside director, I have
had the opportunity to meet many of Yamaha Motor’s employees andsenior executives both in Japan and overseas. Through such

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Dataencounters, I have come to realize that Yamaha Motor’s strong global
presence is a result of the Company’s efforts to build a strong rosterof talent that listens and responds well to the changing needs andpreferences of each market. Having said that, for Yamaha Motor toremain an industry leader and continue to grow in an increasinglycompetitive operating environment, I believe it is critical for theCompany to be more ambitious in its D&I efforts, because a highly
inclusive corporate culture creates the breeding ground for future
innovations. Inclusion is about fostering an environment in which
everyone, regardless of their differences, believes they can play ameaningful role in an organization’s success. Bringing diverse humanresources together in this manner is what leads to new innovations.
The COVID-19 pandemic also triggered an increase in demand for
personal mobility while adding new segments to the Company’s consumer base, particularly women and younger generations. This diversification of demand has shifted customer preferences for Yamaha
Motor products as well. Moreover, the Company’s own research has
shown a shift underway in which women are becoming bigger decision-makers for whether to purchase a Yamaha product, making it
extremely important for the Company to strengthen its D&I initiatives
to better meet these new market needs in a sustainable and competitive way.

Ramping Up D&I Initiatives andEnhancing Corporate Value
With regard to strengthening D&I, Yamaha Motor has set specific targets that include raising the employee engagement score at the Iwata
headquarters to 70% and increasing the ratio of women managers to
13% by 2024. I serve as an executive officer in charge of humanresource development at another Japanese company, thus,
I am fully aware of how difficult it can be to achieve such goals.
However, I am confident that these initiatives hold great importanceand will lead to Yamaha Motor’s future success. I will strive to not
only apply the breadth of my experience and expertise in supporting
Yamaha Motor to achieve its goals but also in cooperating with theBoard’s directors and Audit & Supervisory Board members—all ofwhom have a wealth and diversity of experience—in order to contribute to enhancing the Company’s corporate value.

Outside Director Dialogue

Takehiro Kamigama
Outside Director(Term of office: Five years)

Introduction

Medium- to Long-Term Strategies

Tetsuji Ohashi

XX XXX

Outside Director(Term of office: Three years)

Outside directors Takehiro Kamigama and Tetsuji
Ohashi shared and discussed their individual assessments of Yamaha Motor’s current position, as well as
issues they felt needed to be addressed for
future growth.

Kamigama In fiscal 2022—the first year of the current
Medium-Term Management Plan—the impacts of the COVID19 pandemic continued to be felt around the world. The
Company faced various headwinds, such as delivery delays ofelectronic components due to the semiconductor shortage,
and distribution delays from the lack of shipping containers.
The fact that Yamaha Motor was still able to achieve recordhigh sales and profits despite these challenges is well deserving of recognition.

Ohashi That it is. While it is true that the weak yen significantly boosted the Company’s performance, it is not easy tomaintain profitability amid the many factors pushing up
costs. The Company secured roughly the same operating
income margin as fiscal 2021 by driving its premium segment
strategy forward in emerging markets, being quick to pass on
costs, and continuing its efforts to steadily implement cost
control measures to reduce SG&A expenses and other overheads. Seeing the Company achieve such outstanding results,

69

Yamaha Motor Co., Ltd. Integrated Report 2023

Management Platforms

Facts and Dataeven in this harsh external environment, has once again
reminded me of the strength of Yamaha Motor’s corporate
cohesion and ability to get things done.

XXXXXXXXXXXX

We will further evolve ourcorporate governance to achieve
growth through transformation.

Activities for Greater
Functional CompetitivenessA major theme in the current Medium-Term
Management Plan is portfolio management, in which theCompany has positioned and manages each of its businesses
based on anticipated net sales growth rate and ROIC.
Although the Company has clarified the businesses in which
it will be adding or curbing investments, I feel we have notyet struck a sufficient balance in the actual allocation of
resources. In talks with shareholders as an outside director, I
have received many questions about how to achieve balanced resource allocation.
Kamigama

Ohashi Yamaha Motor possesses numerous outstanding
technologies and uses them as the foundations for entering adiverse range of businesses and achieving significant growth.
I think it can also be said that part of the driving force behind
the Company’s growth is its spirit of “if we can, we should.”
But this spirit alone does not check the boxes from the standpoint of investors and others outside the Company. When
asked why it is moving forward with a particular business, theCompany needs to provide a convincing explanation from theperspectives of growth potential, profitability, and societal
impact. Of course, the clear presentation of the businessportfolio serves as an answer to such questions. As you said,
however, the issue of how to achieve balanced resource allocation remains.

I would like to share an experience I had when I
was with TDK Corporation. When I first became president,
my attention was on improving low-profitability businesses,
helping loss-making businesses turn a profit, and so on. As aresult, the company as a whole turned more to cutting costs
than increasing sales, and the growth of high-profitability
businesses also became sluggish. Then, one of TDK
Corporation’s outside officers at the time advised me to focus
Kamigama

Outside Director Dialogue

on reinforcing our strengths rather than overcoming ourweaknesses. Taking this advice on board, we rapidly shifted
our approach and actively invested in our high-profitability
businesses. That drove their rapid growth, which also lifted
the performance of the low-profitability businesses.
Ohashi Focusing on overcoming weaknesses inevitably leads
to an air of negativity throughout the whole company. As
outside directors, we want to contribute to the growth of
Yamaha Motor by exercising our advisory role. In particular, I
hope that we both can use the experience gained from ourmany years in manufacturing to make useful suggestions.

Kamigama This may seem a little overly ambitious, but I would
like Yamaha Motor to be No. 1 in the world. The Marine
Products business already has that title, but there are several
other businesses I believe could compete for the top spot intheir industries. In my experience, achieving such status
greatly increases the amount of information the company
takes in, and when you are the first to receive that information, you are always one step ahead of the competition.
Moreover, by concentrating management resources on businesses that can become No. 1, we can achieve greater balance in our business portfolio, which I think will make iteasier to gain the understanding of investors.

Introduction

Medium- to Long-Term Strategies

in January 2023, and I understand that new core systems arebeing introduced to reform management platforms.
Ohashi The introduction of these new core systems is anextremely important step to raise productivity Companywide
as well as help resolve the labor shortage. However, thismove inevitably places a temporary but higher burden on
those on the front lines, and a certain degree of friction will
occur simply as a matter of fact. For this reason, it is imperative that the Company instill a clear awareness of the goal of
introducing these new core systems, to optimize operations
as a whole over the long term.

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Kamigama From a human resources standpoint, there is also
the growing presence of women and non-Japanese personnel. In Integrated Report 2022, I spoke with outside director
Yuko Tashiro and outside Audit & Supervisory Board member
Eriko Kawai about promoting the success of women thatwork at Yamaha Motor. This year, I would like to talk about

Kamigama Having experienced the introduction of new coresystems on the front lines as well as in a management capacity, I can understand the concerns of both sides. In particular,
for sales and production sites, it means the addition of timeconsuming and labor-intensive tasks to already busy workloads. Furthermore, it can take quite some time before thebenefits of such measures are actually felt, and I remember
resenting their implementation when I was on the front lines.
However, when the systems were fully in place and we hadgrown accustomed to using them, we were able to workwith far greater efficiency than before.

Speaking also from personal experience, one massive
benefit from implementing such systems was the significant
reduction in time required to transfer production operations
to a new or different location. For example, just preparing totransfer the production of a product we were making at afactory in Japan to one overseas took months. But after unifying our systems globally, such transfers were doable in just
two weeks. The Company must persistently communicate thebenefits of such measures to all employees so that they internalize the reasons for carrying them out. I am hopeful that
this will be accomplished successfully.
Ohashi

I agree. Naturally, those management resources also
include personnel. A shortage of labor is a management-levelissue many Japanese companies are currently facing andYamaha Motor is no exception. What holds the key to resolving this is our digital transformation (DX) strategy, which isalso included in the current Medium-Term Management Plan.
OhashiI feel the Company is actively pushing for DX withits “Yamaha Motor to the Next Stage” slogan and its corresponding YNS project. Satoshi Kodou, who is experienced in
DX implementation, was newly appointed to lead the project
Kamigama

70

Yamaha Motor Co., Ltd. Integrated Report 2023

I anticipate that further strengthening of theGroup’s risk management structure will
make the next stage of growth more certain.

Outside Director Dialogue

Introduction

Medium- to Long-Term Strategies

rather refreshing. I am particularly impressed by the way she
asks simple but pertinent questions, such as questioning theunderlying reasons for moving forward with a particular business. Her appointment has brought a positive new dynamic
to the Board.
Montesano-san takes a bird’s-eye view of Yamaha
Motor and asks questions that prove difficult to answer
because they encourage out-of-the-box thinking and accurately point to root issues. Even at the recent CEO roundtableconference, Montesano-san asked Hidaka-san a variety ofquestions from her unique perspective, which I felt to be
indicative of her distinct sensibilities.
Kamigama

Indeed. One of the reasons for utilizing talent fromoverseas is to incorporate sensibilities from outside Japan. As
markets overseas account for 90% of the Company’s net
sales, I believe it is important that we understand the needsof each region in which we operate and incorporate thatknowledge into our product development. The key to doing
so is capturing the core needs of such regions effectively,
which is difficult to do with Japanese sensibilities. I believe it
is imperative for departments in charge of product planningand marketing to incorporate local personnel into theirteams. However, it is true that there are also certain risks
involved with operations spreading to more regions and withthe resulting diversification of the workforce. What constitutes “common sense” differs by region, and something
done under the common sense in one region may violate
compliance regulations from a global perspective. To prevent
such occurrences, it is therefore important that each memberof Yamaha Motor share the same ethics.

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

It is also important to build a framework in which
any issues that are found can be promptly raised and received
by the relevant department at the Company’s headquarters.
The Company should never assign blame to the individual
who reported the issue, but instead praise them for finding it.
This is how we can identify issues at the earliest possible
stage and thereby minimize risk.
Ohashi

The biggest risk is that issues go unreported. Every
year, the Company compiles a list of significant Groupwide
risks and monitors their status. In recent years, cybersecurity
has been added to that list. Making the risks the Company
faces clear in this way helps to increase employees’ sensitivity
to them.
Kamigama

OhashiI want Yamaha Motor to have the resolve to
become No. 1 in the world—a goal that I am
convinced it has the ability and potential to achieve.

the Company’s non-Japanese personnel. This year, we welcomed Jin Song Montesano as Yamaha Motor’s first foreign
national outside director. What are your thoughts on this,
Ohashi-san?
I feel that the range of topics on the agenda at Board
meetings has grown broader and that discussions are evenlivelier. Montesano-san’s background, attributes, and character often provide perspectives different from ours and that is
Ohashi71

Yamaha Motor Co., Ltd. Integrated Report 2023

Kamigama I used to send employees from Japan to our overseas locations to provide accounting oversight. Whichever
way you look at it, it is important that we continuously work
to ensure that employees make appropriate, ethical decisions
based on a unified global standard.

Yamaha Motor has achieved ¥2 trillion in net sales
and is looking to expand its operations further afield in the
future. We anticipate that the Company will be exposed tounprecedented risks and encounter many new challenges
along the way. The Group must further strengthen its risk
management structure and strive to prevent issues before
they can occur. By promptly responding to issues that do
occur, I hope that the level of risk can be reduced and that
our next stage of growth be made more certain. I wish to contribute to this by actively offering opinions and suggestions
from a different perspective in my role as an outside director.
OhashiKamigama As I said earlier, I want Yamaha Motor to becomeNo. 1 in the world—a goal that I am convinced it has the ability and potential to achieve. Additionally, having a sincere
resolve to accomplish that is crucial in this regard. For my part,I strongly wish to support the Company in this endeavor. Let’scontinue working together to support Yamaha Motor in realizing its corporate mission to be a Kando Creating Company.

Directors and Audit & Supervisory Board Members

Introduction

Medium- to Long-Term Strategies(As of March 22, 2023)

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

and Representative Director
1 Chairman

2 P resident and Representative Director

3 Director

4 Director

5 Director

6 Outside Director

7 O utside Director

8 O utside Director

9 O utside Director

10 Outside Director

Katsuaki Watanabe

Yoshihiro Hidaka

Heiji Maruyama

Satohiko Matsuyama

Motofumi Shitara

Takuya Nakata

Takehiro Kamigama

Yuko Tashiro

Tetsuji Ohashi

Jin Song Montesano

Responsible for Research &Development, Powertrain
Unit, Vehicle Development

Responsible for
Manufacturing, Manufacturing
Technology, Procurement,
Power Products

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

11 Audit & Supervisory

Board Member (Full-Time)

Junzo Saito72

12 Audit & Supervisory

Board Member (Full-Time)

Tadashi Tsumabuki

Yamaha Motor Co., Ltd. Integrated Report 2023

13 Audit & Supervisory

Board Member (Outside)

Masatake Yone

14 Audit & Supervisory

Board Member (Outside)

Eriko Kawai

15 Audit & Supervisory

Board Member (Outside)

Ayumi Ujihara

10

9
8

7
6

1

2

4

5

3

11 12

13
15

14

Executive Officers (As of April 1, 2023)
President and Chief Executive Officer

Managing Executive Officer

Yoshihiro Hidaka

Heiji Maruyama

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Motorcycle Electrification Project Executive

Senior Executive Officers

Satohiko Matsuyama

Motofumi Shitara

New Mobility Project Executive

Eric de Seynes

Hiroyuki Ota

Itaru Otani

President of Yamaha Motor Europe N.V.

Chief General Manager of Solution Business
Operations

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

Takuya Kinoshita

Dyonisius Beti

Toshiaki Ibata

Chief General Manager of Creative Center

COO of PT. Yamaha Indonesia Motor
Manufacturing

Chief General Manager of Marine Business
Operations

Toshihiro Nozue

Satoshi Hirose

Takeo Noda

Toyoshi Nishida

Norio Yamada

Chief General Manager of Powertrain Unit

Chief General Manager of Quality AssuranceCenterChief General Manager of Corporate
Planning & Finance Center

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

Chief General Manager of IT Center

Tatsuya Masuda

Kenichi Muraki

Koutarou Ueda

Eishin Chihana

Shin Yokomizo

Chief General Manager of Procurement
CenterChief General Manager of Manufacturing
Technology Center
PAS Drive Unit Competitiveness Project
Executive

Chief General Manager of Manufacturing
CenterYasutaka Suzuki

Michael Chrzanowski

Jeffrey YoungManaging Director of Yamaha
Motor India Pvt. Ltd., Managing Director ofIndia Yamaha Motor Pvt. Ltd., andManaging Director of Yamaha Motor India
Sales Pvt. Ltd.

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

General Director of Yamaha Motor Vietnam
Co., Ltd.

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

President & CEO of Yamaha Motor
Finance Corporation and Chairman of
Yamaha Motor Finance Corporation
U.S.A.

Kenji Komatsu

Ayako EgashiraMitsuru Hashimoto

Chief General Manager of Technology
and Research

Executive General Manager of Robotics
Business Unit, Solution Business Operations

Chief General Manager of Human Resources& General Affairs Center

Executive Officers

Deputy Executive Officers

Ben Speciale

Olivier Prevost

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

Vice President of Yamaha Motor Europe, N.V.

73

Yamaha Motor Co., Ltd. Integrated Report 2023

Corporate GovernanceIntroduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

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

Basic Views on Corporate Governance 

History of Strengthening the Corporate Governance System
2010

To ensure the implementation of the Company’s growth strategies for the
future, Yamaha Motor’s Board of Directors establishes an environment that
supports appropriate risk-taking and decisive decision-making by management, and it multilaterally understands and appropriately oversees issues
and risks associated with the implementation of the Company’s manage-

2011

2012

2013

2014

2015

Improvementof operating
structure

2018

2019

2020

2021

2022

2023

Establishment of Corporate Governance Guidelines
Implementation of the Board evaluation
Abolition of takeover defense measures

holders, including shareholders and investors.

2001: Introduction of executive officer system

This structure is designed to implement speedy and decisive decision-

2007: Appointment of outside directors

making as well as appropriate, transparent, and fair supervision and moniformulated Corporate Governance Guidelines and put them into practice2017

Operation of Board of Directors + Management Discussion meeting

ment strategies from the viewpoint of our responsibility to various stake-toring as the Company’s corporate governance. Accordingly, we have2016

2001: Introduction of Executive Personnel Committee (Nomination/Remuneration Committee)

Executive
structure

2009: Appointment of women directors
Delegation agreement with executive officers

in an appropriate manner.

Appointment of non-Japanese executive officers
Separation of chairman of the Board of Directors and chief
executive officer (CEO)For more details, please see the Corporate Governance Guidelines.
Number of
directors

11

11

10

10

12

11

11

13

11

11

10

10

10

10

Number ofinternal
directors

7

8

7

7

9

8

8

9

7

7

6

6

5

5

Number ofoutsidedirectors

4

3

3

3

3

3

3

4

4

4

4

4

5

5

Independent
outsidedirectors

3

2

2

2

2

2

2

3

4

4

4

4

5

5

Of whom,
women
directors

1

1

1

0

0

0

0

0

0

1

1

1

2

2

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

74

Yamaha Motor Co., Ltd. Integrated Report 2023

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

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

Toward sustainable growth(expansion of businessscale and enhancementof profitability)

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

Taking on the renewed­challenge of achieving
net sales of ¥2 trillion

Strengtheningof sustainability
measuresCorporate GovernanceIntroduction

Corporate Governance Structure Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Corporate Governance System

Yamaha Motor supplies various kinds of products and services to markets
around the world, including personal mobility solutions, marine products,

General Meeting of Shareholders

industrial robots, vehicle engines, and unmanned helicopters. Overseas
sales account for approximately 90% of the Company’s consolidated net
sales. Starting with the principal concept of developing and producing

Appointment /Dismissal

locally where the products are consumed, we engage in development, procurement, production, sales, and other activities on the global stage.
To sustainably advance our business activities, we believe it is effective
to structure a corporate governance system consisting of the Board of

Appointment /Dismissal

Seeking advice / Making
recommendations

Directors, made up of internal directors who are familiar with theCompany’s customer characteristics, products, business operations, andBoard of Directors

functions and of outside directors who have a wealth of knowledge inglobal corporate management, as well as the Audit & Supervisory Board
whose members include outside Audit & Supervisory Board members withprofessional knowledge in areas including accounting, legal affairs, andmanagement administration. Under this corporate governance system,

Appointment /Dismissal

Audit

10 directors(including 5 outside directors)

Executive Personnel
Committee

Audit & Supervisory
Board members
Audit & Supervisory Board

Coordination

External Auditor

5 Audit & Supervisory Board members(including 3 outside Audit &Supervisory Board members)

executive officers are appointed to execute operational duties in a timely
manner, and the Board of Directors delegates matters related to the execuAppointment /Dismissal
Supervision

tion of business operations to executive officers.

Corporate Governance System Overview
Organizational design
Number of directors(number of outside directors)

10 (5)

Number of Board of Directors meetingsin fiscal 2022 (average attendance rateby directors)

13 (100%)

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

5 (3)Number of Audit & Supervisory Board
meetings in fiscal 2022
(average attendance rate by Audit &Supervisory Board members)

17 (100%)

Directors’ term of office

One year

Use of executive officer system

Yes

Optional committees of Board of
Directors

Executive Personnel
Committee

AuditorErnst & Young
ShinNihon LLC

Yamaha Motor Co., Ltd. Integrated Report 2023

Audit

Coordination

Accounting audit

Coordination

Business Execution
Company with Audit& Supervisory Board

75

Reporting businessexecution situations

President, Chief Executive Officer and Representative Director

Seeking advice /Makingrecommendations

Management Committee

Seeking advice / Making
recommendations

Sustainability Committee

Instruction / Report

Business sectors, Functional sectors, Corporate sectors, and Subsidiaries

Instruction /ReportIntegrated Auditing DivisionInternal audit

Corporate Governance pproach to the Composition of theA
Board of Directors and Board of
Corporate Auditors 
The role of the Board of Directors is to support the Company’s sustainable

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Reasons for Selection and Definition of Skills

Corporate Management

Under the corporate mission to be a Kando Creating Company, the Company is developing several businesses,
including motorcycles and outboard motors, in more than 180 countries and regions. In order to achieve sustainable growth even in the midst of drastic changes in the business environment, such as the spread of CASE, theCompany needs officers with management experience in global companies and manufacturing companies.

Finance / Accounting / M&As

The Company uses sales growth rate and ROIC to clarify the positioning of its businesses and implements portfolio
management to allocate management resources appropriately. In order to carry out its growth strategy andenhance shareholder returns, the Company requires officers with knowledge and experience in finance, accounting, and M&As.

Procurement / Manufacturing

To promote its break-even-point management style, it is necessary to continue efforts to reduce costs and improve
productivity in procurement and manufacturing, and the Company needs officers with knowledge and experiencein procurement and production at manufacturing companies.

Technology / R&D

To respond to the CASE movement and to grow the new businesses indicated in the Medium-Term Management
Plan into future core businesses, the Company needs officers with knowledge of basic as well as advanced technologies, plus experience in innovation.

Marketing / Sales

In order to accurately respond to diversifying customer needs, the Company needs officers who are familiar witheach market and have experience in developing and executing marketing/sales strategies.

IT / DX

The use of IT is essential to strengthen the management base and improve the value of the customer experience,and the Company needs officers with requisite knowledge and experience in IT and digital transformation (DX).

growth and our corporate brand value per our corporate mission to be a
Kando Creating Company. To ensure the implementation of growth strategies for the future, we will create an environment that supports appropriate risk-taking and firm decision-making by management. In addition, we
will make a multifaceted effort in identifying issues and risks associatedwith implementing management strategies from the perspective of our
responsibility to various stakeholders, such as shareholders and investors.
Based on its fiduciary responsibility to shareholders and as an independent body from the Board of Directors, the Board of Corporate Auditors
shall request reports on the Company’s business, investigate the state ofoperations and assets, exercise its authority over the selection and dismissal of outside accounting auditors and audit fees, and attend Board of
Directors meetings and other important meetings to provide opinions asnecessary. These are ways for the Board of Corporate Auditors to conduct
audits of the legality and appropriateness of the directors’ execution of theirduties, internal regulatory structures, financial conditions, and other matters.
Based on the above, we have decided that the composition of our
Board of Directors and Board of Corporate Auditors as a whole should
bring a balance of knowledge, experience, and abilities as well as accountfor diversity and scope. As such, we have identified the skills listed on theright as those that these Boards should be equipped with.

E

Environment /Carbon Neutrality

The Company aims to achieve carbon neutrality by 2050, and in order to accelerate those efforts, it needs officers
with knowledge and experience in environmental conservation.

S

DE&I / Human Resource
Development

The Company must secure diverse human resources and strengthen the skills of each employee if it is to respondto rapidly changing market needs and the global business environment; thus, the Company needs officers withknowledge and experience in DE&I promotion and human resource development.

G

Legal Matters /Risk Management

Strengthening governance is important to the Company, as it operates on a global scale. The Company needs
officers who have knowledge and experience in domestic and international legal systems and various regulations,who can properly assess the risks, and who can lead prevention and countermeasures.

Global76

Yamaha Motor Co., Ltd. Integrated Report 2023

The Company operates in more than 180 countries and regions, with sales overseas comprising over 90% of its
annual total; thus, the Company needs officers who have experience working for multinational companies and in
local markets, combined with knowledge of and experience in foreign cultures and business practices.

Corporate GovernanceIntroduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Skills Matrix and Skills Chart (As of March 22, 2023)

Years
ServedAge

GenderKatsuaki Watanabe

9

63

M

Yoshihiro Hidaka

6

59

M

Heiji Maruyama

2

61

M

Satohiko Matsuyama

1

59

M

Motofumi Shitara

1

60

M

Takuya Nakata

9

64

M

Independent

Takehiro Kamigama

5

65

M

Independent

Yuko Tashiro

4

69

F

Independent

Tetsuji Ohashi

3

68

M

Independent

Jin Song Montesano

1

51

F

Independent

Audit &
Supervisory
Board
Members

Junzo Saito

4

63

M

Tadashi Tsumabuki

—

61

M

Outside Audit &Supervisory
Board Members

Of the skills possessed by each director and Audit & Supervisory Board member, the Company specifically expects them to demonstrate a maximum of four skills, as marked below.

Masatake Yone

4

68

M

Independent

Eriko Kawai

2

64

F

Independent

Ayumi Ujihara

—

61

F

Independent

Name

Outside Directors

Directors

PositionIndependent

GlobalExperience

SkillsCorporate
Management

Finance/
Accounting/
M&As

Years Served

Procurement/
Manufacturing

Technology/R&D

Outside Officers

Marketing/Sales

Women Officers

IT/DX

E

S

G

Environment/
Carbon Neutrality

DE&I/Human
Resource
Development

Legal Matters/
Risk Management

Non-Japanese Officers

Outside Directors(Executive Personnel Committee)

Corporate Management

Directors

8

Finance/Accounting/M&As

3

Procurement/Manufacturing

3

From 4 to 6 years

Technology/R&D

3

7 years or more

5Marketing/Sales

7

IT/DX

3

Environment/Carbon Neutrality

3

DE&I/Human Resource Development
Legal Matters/Risk Management

3 years or less

5
3
2

1
Audit & Supervisory Board Members
3 years or less4

2
5

From 4 to 6 years

3

Directors

Directors

Directors

Audit &
Supervisory
Board Members

Audit &
Supervisory
Board Members

Audit &
Supervisory
Board Members

3/5

2/5

0/5

5 / 102 / 101 / 102

5
Directors

77

Yamaha Motor Co., Ltd. Integrated Report 2023

5/7

Audit & Supervisory Board Members

Corporate GovernanceDirectors and the Board of Directors Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Board Effectiveness Evaluation On the basis of fiduciary responsibilities to shareholders, directors collect

The Board of Directors analyzes and evaluates the effectiveness of the roles and responsibilities of the Board as a whole on a yearly basis, with the Corporate

adequate information, understand relevant laws and regulations and other

Planning Division acting as the administrative office. The evaluation process and summary of the results from fiscal 2022 are listed below.

necessary rules, actively express opinions, and discuss and make decisions
at Board of Directors meetings, Management Discussion meetings, andother important meetings in order to obtain sufficient knowledge on viewpoints and standpoints of various stakeholders, including shareholders,
and to achieve sustainable growth and medium- to long-term enhancement of corporate value. Please note that the chairman of the Board of
Directors does not hold any specific authority and is not involved in theexecution of business matters. As a general rule, Board meetings are held
monthly but may also be held if deemed necessary.
Yamaha Motor’s Standards for Independence
In addition to the required standards for independence established by Tokyo
Stock Exchange, Inc., the Company has stipulated its own Standards for
Selecting Independent Outside Directors/Outside Audit & Supervisory Board
Members to objectively assess the independence of its outside directors andoutside Audit & Supervisory Board members.
For the full text of the Standards for Selecting Independent
Outside Directors/Outside Audit & Supervisory Board
Members, please refer to our website.

Evaluation Process• Conduct a self-evaluation by questionnaire based on the Company’s
seven evaluation perspectives for the aims of the Board of Directors
Evaluation Perspectives
1. Roles and responsibilities of directors and the Board of Directors
2. R elationships between the Board of Directors and senior management (executive officers)
3. Organizational design and composition of the Board of Directors, etc.
4. Q ualifications held and knowledge of directors and the Board of
Directors
5. D eliberation at meetings of the Board of Directors
6. R elationships and dialogue with shareholders
7. D ealings with stakeholders other than shareholders• Confirm the status of improvements by comparing them with evaluation results, including those conducted in fiscal 2021 by a third-party
organization• Based on the results of the analysis, the Board of Directors shareseffectiveness evaluations and deliberates on issues that need to beaddressed
Evaluation Results from Fiscal 2022
The evaluation confirmed that our Board of Directors has actively andcontinuously carried out effective discussions, refined our initiatives toimprove our corporate value in the medium to long term and achievesustainable growth amid the dramatic changes in our business environment, and is effective enough to achieve our Long-Term Vision for 2030
in addition to our Medium-Term Management Plan that began in 2022.
A particularly praiseworthy point is the way in which the Board of
Directors has continued to respect the feedback of outside directors
and outside Audit & Supervisory Board members and fostered a cultureof open, constructive discussions and exchanges of opinion, as it did infiscal 2021.
State of Addressing Issues Identified in Fiscal 2021’s Evaluation
In the previous fiscal year, we identified the following issues as
challenges:• Deepen discussions on the business portfolio• Implement comprehensive discussions on sustainability•	Strengthen the supervisory powers of the Board of Directors regarding the current sensitivity and awareness of risk on the ground•	Continue initiatives to ensure diversity, including among the Boardof Directors and company management

78

Yamaha Motor Co., Ltd. Integrated Report 2023

•	Address issues related to the operation of the Board of Directors(further enhancement of communication opportunities between
outside directors and internal directors, hybrid meetings involving
face-to-face meetings and online meetings, ideal communication
opportunities, etc.).
Subsequently, the Company’s Board of Directors initiated discussions
on portfolio management to allocate management resources appropriately based on the direction of the business portfolio established in theMedium-Term Management Plan that started in 2022; held regular discussions on sustainability; conducted periodic reports on the status of
the development and operation of risk management and compliancesystems with a thorough commitment to “bad news comes first”; andheld discussions on executive diversity, personnel system design, humanresource development, and employee engagement.
As a result, while the self-assessment questionnaire provided a satisfactory evaluation of the state of efforts to address all issues, the questionnaire also identified some issues that required further advancement
and recognized the need for continued efforts.
Points for Further Improvement of EffectivenessBased on the above analysis results, the Board of Directors is aware thatwork is needed in the following areas, will set the agenda for discussion on these topics at future Board meetings, and will address theseissues in order to function more effectively.
Issue 1. D eepen discussions on the business portfolio
Issue 2. Implement comprehensive discussions on sustainability
Issue 3. S trengthen the supervisory powers of the Board of Directors
regarding the current sensitivity and awareness of risk on the
groundIssue 4. E nhance dialogue with shareholders and align expectations
Issue 5. C onduct comprehensive, long-term human resource strategy
discussions
Issue 6. P rovide more opportunities for enhancing knowledge and skills
and for communication with outside and internal directors
In addition to making ongoing improvements in light of the Board
effectiveness evaluation, we will incorporate the advice of a third-party­institution—which plays a regular role in our evaluation process—tofurther improve the effectiveness of our Board of Directors.

Corporate GovernanceIntroduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Yamaha Motor established the Executive Personnel Committee as a voluntary

Audit & Supervisory Board Members andthe Audit & Supervisory Board advisory body concerning the nomination and remuneration of members of

As a body independent of the Board of Directors, the Audit & Supervisory

The Company has 30 executive officers, of whom four serve concurrently

Board and its members request the Company and its subsidiaries to submit

as directors. The Management Committee, comprising eight executive offi-

reports on their business activities in accordance with laws and regulations,cers with specific posts, has been established to deliberate on matters ofsurvey the status of business operations and properties, exercise rights inbusiness execution and to speed up the Company’s decision-making pro-respect of appointing or dismissing an external auditor and audit compen-

cess. In principle, the Management Committee meets at least monthly andsation, attend meetings of the Board of Directors and other important

additionally from time to time as necessary.

Executive Personnel Committee 

the Board of Directors in order to improve the transparency and objectivity of
executive appointments and dismissals and the determination of their remuneration, among other objectives. To ensure the transparency of the deliberation
process, as well as the objectivity and appropriateness of reports submitted to
the Board of Directors, the Executive Personnel Committee is composed of amajority of outside directors and meets at least six times a year, in principle.
In its role related to nominations, the committee deliberates on theappointment and dismissal of the CEO, directors, Audit & Supervisory Board
members, and executive officers, as well as on the selection of candidates forsenior management positions and their development plans, all while confirming future management strategies and personnel requirements for their imple-

meetings, and provide opinions as needed. Through these tasks, Audit &In addition, the Global Executive Committee has been established toSupervisory Board members and the Audit & Supervisory Board audit thedeliberate on important management policies and issues related to thelegality and appropriateness of directors’ execution of duties, internal con-Group’s management. The Global Executive Committee includes thetrol systems, and the performance and financial position of the Company

Company’s representative director, all executive officers with specific posts,

and its subsidiaries.

full-time corporate auditors, and senior local managers of major Groupmentation, among other tasks. As part of its efforts to improve corporate

Collaboration between Audit & Supervisory Board Members,

governance, the Company established a system for determining executive offi-

Outside Auditors, and Internal Auditing Departments

cer appointments or dismissals based on a review and evaluation of the CEO’s

Audit & Supervisory Board members (including outside Audit & Supervisory

own performance. Specifically, through strategic dialogue with the CEO at a

Board members) work with the external auditor to facilitate audits basedroundtable meeting chaired by an outside director, a non-financial evaluation

on appropriateness and receive accounting audit reports in accordanceis conducted that includes the CEO’s operational performance as a member ofwith laws and regulations. Through collaboration that includes the mutual

management from the perspective of whether he possesses the qualities

exchange of information as needed and related opinions with internalrequired to serve as the CEO and if he properly demonstrates those qualities.

auditing departments, Audit & Supervisory Board members receive reports

The outcome of the conference was reported to the Board of Directors by theabout internal audit plans and their outcomes, with the ultimate aim of

Executive Personnel Committee, at which the appointment of executive offi-

improving the effectiveness and efficiency of audits.

cers—including the CEO—was finalized. In this way, through a process
whereby objectivity and fairness are ensured, we will continue building up our
corporate governance in which the best and most suitable members of management execute business operations.
In its role related to remuneration, the committee deliberates on anddecides the evaluation standards and remuneration system for the CEO, directors, and executive officers. The committee also evaluates the performance of
the Company overall and individuals based on their contributions to mediumto long-term corporate growth and business performance for the fiscal year inquestion. In addition, the committee deliberates on compensation linked toperformance for the abovementioned senior management personnel within xecutive Officers and Management
E
Committee, etc. Introduction of Effectiveness Evaluations
for the Audit & Supervisory Board 
The purpose of the effectiveness evaluation for the Audit & Supervisory
Board is to effectively and efficiently identify and share issues and expectations with the Audit & Supervisory Board members, and then holding discussions among the Audit & Supervisory Board in order to reflect them in
the audit policies and plans for the next fiscal year. By holding an effectiveness evaluation every year, we will work to continuously raise the effective-

companies. It has 44 members, of whom 26 are Japanese and 18 are nonJapanese. In principle, the committee meets at least once annually, withadditional meetings held as needed.

Sustainability Committee Yamaha Motor has established the Sustainability Committee, comprisingeight executive officers with specific posts, as an entity to deliberate measures related to risk management and compliance as well as to address
issues concerning sustainability. The Sustainability Committee will start
meeting five times per year from this year onward, with additional meetings held as needed.

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

ness of audits conducted by the Audit & Supervisory Board.

the limits of the total remuneration amount resolved at the Ordinary General
Meeting of Shareholders.
Members of the Executive Personnel Committee
Committee Chair: Chairman and Representative Director
Katsuaki Watanabe
Committee Members:
President and Representative Director
Yoshihiro Hidaka
Outside Director (Independent)		
Takuya Nakata
Outside Director (Independent)		
Takehiro Kamigama
Outside Director (Independent)		
Yuko Tashiro
Outside Director (Independent)		
Tetsuji Ohashi
Outside Director (Independent)		
Jin Song Montesano

79

Yamaha Motor Co., Ltd. Integrated Report 2023

Evaluation Method
Each Audit & Supervisory Board member answers a survey to evaluate the board’s effectiveness. To ensure the quality and objectivity of the survey’s content,i.e., the items for evaluation, it is prepared based on input from outside experts to enable each Audit & Supervisory Board member to comprehensively evaluate and analyze the structure, frameworks, and operations of the Audit & Supervisory Board. The survey results are compiled and analyzed by the Audit &Supervisory Board Members’ Office, with the evaluation results later reported to the Audit & Supervisory Board itself.
Evaluation Results
Overall, the Audit & Supervisory Board members performed their role well. The Audit & Supervisory Board will hold discussions and exchange opinions about recognized issues based on the survey results. Identified issues will be reflected in the next fiscal year’s audit plan, aiming to achieve more effective and efficient audits.

Corporate GovernanceIntroduction

Cross-Shareholdings Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Remuneration System for Executives 

Yamaha Motor holds cross-shareholdings only when it is deemed necessary

In order to ensure the appropriateness as well as the transparency and feasibility of the deliberation process regarding items relating to executive remuneration, theand appropriate in order to achieve growth and enhance corporate value

Executive Personnel Committee voluntarily established by the Company conducts pertinent examinations and reports its findings to the Board of Directors. Decisions

from a medium- to long-term perspective. The Board of Directors examineson remuneration amounts for each individual director are made at Board of Directors meetings according to our basic policy after discussions with and/or reports

each cross-shareholding annually to determine whether the rationale offrom the Executive Personnel Committee. In addition, Audit & Supervisory Board members discuss and determine the specific amounts of their base compensation.

the shareholdings is appropriate, among other points. The Board of
Directors then appropriately discloses a summary of the results. In addition,
Yamaha Motor upholds a policy to reduce cross-shareholdings if the shareholdings cannot be justified.
Shareholdings of Yamaha Corporation
Yamaha Motor was established by spinning off the motorcycle division of
Nippon Gakki Co., Ltd. (today’s Yamaha Corporation). Today, the twocompanies’ management is conducted separately, with both using thesame Yamaha brand. We are undertaking various measures in collaboration with Yamaha Corporation through the Joint Brand Committee andunder the Yamaha Brand Charter and Joint Brand Regulations. Both companies appropriately monitor measures for sustainable mutual growththrough shareholdings and by dispatching directors. We believe that main-

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

taining and improving the shared value of the Yamaha brand by building a
relationship of monitoring and collaboration with Yamaha Corporation willcontribute to the medium- to long-term enhancement of Yamaha Motor’s
corporate value.

Remuneration System
Remuneration for directors at Yamaha Motor is composed of base­compensation (fixed remuneration), performance-based bonuses, and­performance-based share compensation, and from fiscal 2022, the proportion of performance-based compensation was raised. Remuneration for thepresident and representative director is generally 40% base compensation,

30% performance-based bonuses, and 30% performance-based share­compensation, and remuneration for other executive officers is set basedon this precedent. Outside directors and Audit & Supervisory Board members
receive only fixed base compensation as their roles require them to supervise
and audit company management from an objective, independent perspective.
Base Compensation
Annual base compensation is set for each executive position, one-twelfth ofwhich is paid in cash on a monthly basis.
Performance-Based Bonuses
The representative director shall only be paid the Companywide­performance-based bonus. Performance-based bonuses for other d­ irectors
and executive officers shall comprise a Companywide p­ erformance-based
bonus and an individual performance-based bonus.
Performance-Based Share Compensation
As part of ongoing reviews of the remuneration system for directors, wehave switched from the previous system of remuneration of restricted
shares—with no attached performance conditions—to a system of performance-based remuneration of restricted shares in which the number ofshares awarded is determined in conjunction with the Company’s TSR. This isin order to provide a suitable incentive for further value sharing between
Yamaha Motor directors and shareholders and for the ongoing improvementof our corporate value in the medium to long term.

Breakdown of President and Representative Director Remuneration (Base Amounts)
Number of Shares Held by the Company for Purposes Other Than
Pure Investment and the Amount Shown on the Balance Sheet(Including Strategic Investments)(¥ million)

120,000

Variable remuneration
Companywide performance-based bonus (30%)

Performance-based share compensation (30%)(Shares)

68

73

72
105,81790,00074

71
102,788

95,507

68,97280
60

62,22660,00040

30,000

20

0

0
2018

2019

Strategic investment
Other
Number of shares (right axis)

80

Fixed remuneration
Base compensation (40%)

2020

2021

2022

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

Compensation Linked to Individual Performance
0–2x of base amount relative to achievement of and progress toward predetermined indicators
Financial Evaluation
Takes into account year-on-year comparisons and degree oftarget achievement for net sales, operating income, and
ROA in the division for which they are responsible

Non-Financial Evaluation
Takes into account degree of progress on initiatives in theMedium-Term Management Plan, the development of future
executive officers and candidates for senior management positions, and contributions to corporate value and brand value

Ratio of financial and non-financial evaluation• Directors: 1 to 1 (Executive officers: 1 to 1)

Ratio of compensation linked to consolidated performance and compensation linked to individual performance• Representative director: 1 to 0 • Directors: 2 to 1 (Executive officers: 1 to 3)

Carrying amount on the balance sheet

Yamaha Motor Co., Ltd. Integrated Report 2023

* Percentage of net income attributable to owners of parent has been revised as of fiscal 2022, taking into account increases in the Company’s profit levels, changes to the executive structure,and other factors.

Corporate GovernanceIntroduction

Indicators Related to the ROA Evaluation Coefficient
The Company stipulates the three-year average of ROA as indicated in
the graph. Adjustments are made according to each indicator after deliberations by the Executive Personnel Committee.
• Level of achievement for consolidated net sales and consolidated­operating income targets• Level of progress with the Medium-Term Management Plan, aimed
at realizing the Long-Term Vision for 2030
• Overall progress on addressing materiality initiatives

Medium- to Long-Term Strategies

Facts and Data

Executive Compensation in Fiscal 2022

income of ¥150 billion × 0.14% × ROA evaluation coefficient of 1.75). The

In fiscal 2022, the Company’s three-year ROA average was 9.5%.

pool of funds was distributed among the executives. For executive officers

However, the long-term loans payable urgently raised to address thewho do not serve concurrently as directors, the same calculation method

impacts of the COVID-19 pandemic have been excluded from the calcula-(consolidated net income × 0.09% × ROA evaluation coefficient) is used totion. In accordance with officer remuneration rules, the ROA evaluation

calculate the pool of funds, which is then distributed among the executives

coefficient was set at 1.75 after carrying out a comprehensive assessmentin accordance with the coefficients determined for each position.

of business performance due to a second year of record profits with a con-

Individual performance-based bonuses were determined based on atinued favorable business environment. Under officer remuneration rules,

comprehensive evaluation of each director that took pre-determined finan-

if consolidated net income exceeds ¥150.0 billion, ¥150.0 billion is usedcial and non-financial evaluation indicators into account.

bonuses. As a result, the pool of funds for Companywide performance-• Other events affecting corporate value and brand value

based bonuses for directors came to ¥367 million (consolidated net

2.0

(¥ million)
Compensation linked to performance

Remunerationof shares with­restriction ontransfer

Total

40

154

818

—

—

—

90

75

—

—

—

75

2

37

—

—

—

37

16

459

367

40

154

1,022

Number ofapplicable
executives(persons)

Basic
compensation

Directors(excluding outside directors)

7

Outside directors

Companywide
performance-based
bonus

Individual
performance-based
bonus

255

367

5

90

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

2

Outside Audit & Supervisory
Board members
Total

Officer classification

1.0

2.5%

6.5%

12%

ROA

Total Shareholder Return (TSR) Evaluation CoefficientCompany TSR ÷ Growth rate of TOPIX including dividends
Company TSR =Average closing share price in the
final month of the final year of the
TSR evaluation period (December)

Total dividends during the
TSR evaluation period

Average closing share price in the month prior to
the start of the TSR evaluation period (December)
Dividend-inclusive TOPIX growth rate =Average dividend-inclusive TOPIX closing price in the final month of
the final year of the TSR evaluation period (December)
Average dividend-inclusive TOPIX closing price in the month prior to thestart of the TSR evaluation period (December)

81

Management Platforms

when calculating the total amount for Companywide performance-based• External ESG evaluation

0

Activities for Greater
Functional CompetitivenessYamaha Motor Co., Ltd. Integrated Report 2023

Notes 1. The amount of base compensation mentioned above is the total compensation, etc., paid (monetary compensation) in fiscal 2022.
2. Figures include two directors who left their positions during this fiscal year.
3. The amount of Companywide performance-based bonuses mentioned above is the amount paid (monetary compensation) in April 2023 based on performance, etc., in fiscal 2022.
4. With respect to share-based compensation, Yamaha Motor previously issued shares of the Company’s common stock (restricted stock) as share-based compensation to directors(except outside directors) and executive officers (excluding non-Japanese executive officers), based on the restricted share compensation system with no performance conditions (hereinafter referred to as the “former system”) on the condition that they do not transfer their positions as officers of the Company until they retire. However, per the resolution of the87th Ordinary General Meeting of Shareholders held on March 23, 2022, the Company introduced a performance-based share compensation plan that determined the number ofrestricted shares to be delivered in conjunction with the Company’s TSR evaluation, replacing the system. The amount of remuneration given in the above performance-based sharecompensation is the amount to be paid in April 2023 or later (the entire amount is a monetary compensation claim to be paid as assets contributed in kind to be issued or disposed ofwith respect to the common shares of the Company) in accordance with the policy and calculation method of the Share Compensation Rules and based on the results of the TSR evaluation, etc., for fiscal 2022.

Risk Management

Introduction

Fundamental Approach to Risk Management 

Risk management activities are promoted through the repetition of theates an appropriate organizational structure and set of rules, as well as

PDCA cycle, as detailed on the right. The Yamaha Motor Group has pre-engages in risk-reduction activities. As part of regular prevention efforts,

pared a risk management ledger of all risks that need to be covered, anddivisions responsible for risk prevention and mitigation are clarified, coun-works to reduce risk through the appropriate management and application

termeasures for risks the Group should respond to developed, and activi-of that ledger.

ties therein conducted on a Groupwide basis. If a major crisis situation
on internal regulations and other factors and led by the president andchief executive officer to minimize the damage and aftereffects.

structure is led by the Sustainability Committee and its subordinate coun-

We will increase our defenses against external attacks, detect such attacks early
on, and minimize the damage in the unlikely event of such an attack by implementing both hardware and software countermeasures based on our
Cybersecurity Policy.

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

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

Human Rights: We have selected this theme in response to growing
social demands regarding business and human rights, such as the
Guidelines on Respecting Human Rights in Responsible Supply
Chains developed by the Japanese government in September 2022,
and the need to strengthen the Group’s stance on human rights,
particularly in its supply chain.

Human Rights: We will develop a Yamaha Motor Group Human Rights Policy toclarify the Group’s approach to and respect for human rights; implement humanrights due diligence to identify, avoid, and mitigate adverse human rights impacts
in the Group’s supply chain; and promote the development of frameworks forhandling complaints to address harmful human rights impacts.

Harassment: We have selected this theme because of the need tostrengthen measures for reducing harassment risks amid growing
social concern about harassment, and the expansion of power
harassment prevention law applicability to small and medium-sizedenterprises.

Harassment: We will raise awareness to prevent harassment, promptly and appropriately respond when an incident occurs, review measures to prevent recurrence,
and work on effective risk reduction activities.

Compliance with laws and regulations regarding product quality is
directly linked to the trust of customers and communities, and strict
control is increasingly required. In addition, the spread and diversification of CASE-related products and services in the world and theenactment of new laws and regulations in line with the realizationof a recycling-oriented society are expected to be expanded to othercountries. This risk selection is based on the need for the Company
as a whole to keep up with these kinds of changes without fail.

To ensure compliance with laws and regulations concerning product quality, we
will engage in collecting and circulating legal information, checking the incorporation of legal requirements, conducting strategic legal activities for new businesses, and other activities. At the same time, we will implement the Yamaha
Motor Group Quality Assurance Regulations formulated in accordance with ISO
9001 as well as strengthen the foundations for legal and regulatory management
processes at each business, with the Corporate Regulation Control Group established in 2022 as the hub for these activities Companywide.

dent of the operation lines and is headed by the Chief General Manager of
The supervising department over risk management establishes policies
and rules for dealing with the risks under its jurisdiction, enacts countermeasures based on the policies and rules, and monitors the activities of thedepartments at the headquarters and Group companies. To ensure its
effectiveness, the Integrated Auditing Division conducts audits of risk
Violation of
Human Rights
and Harassment

President and chief executive officer
Making of recommendations

Sustainability Committee

Thorough implementationof policies
Management based on rules
Monitoring of activities

Reporting of important matters
Reporting of urgent matters

Violation ofLaws and
Regulations
Concerning
Product Quality

Consultation on individual issues

Headquarters’ divisions and Group companies

82• Monitoring of activities

Cybersecurity

out the entire Group. The Risk Compliance Secondary Meeting is indepen-

Sustainability Promotion Meeting(a subordinate council of the Sustainability Committee)

Check

Measuresand performs checks on countermeasures as ways to reduce risk through-Seeking of advice

Do

Backgroundselects the significant risks at the Group level which require focused efforts

management departments.

Act• Implementation ofactivities to address risks

Cybersecurity was selected because it is necessary to prevent leaksof personal and confidential information due to cyberattacks andcomputer virus infections, to prevent information system failures,and ensure a complete recovery system is in place for business­continuity when the dependence on and importance of information
systems in our business is increasing.

Risk Items

Meeting, which comprises the risk management supervisory sections andthe Human Resources and General Affairs Center.

Facts and Data

Significant Group Risks for Fiscal 2023 

cil, the Risk Compliance Secondary Meeting of the Sustainability Promotion
divisions charged with risk management. At the same time, the meeting• Analysis of information from inside and outside
the Company• Designation of significant risks at theGroup level
Plan• Assessment of risk management ledger• Formulation of activity policies
and plans• Review of risk management ledger• Incorporation of changes into activity
plan for the next fiscal year
• Review of activity results

occurs, the Emergency Countermeasure Headquarters is established based

Based on the Rules of Risk Management, the Company’s risk management

Management Platforms

Risk Management Activity Cycle 

To carry out risk management, Yamaha Motor has established and oper-Risk Management Structure 

Activities for Greater
Functional CompetitivenessMedium- to Long-Term Strategies

Yamaha Motor Co., Ltd. Integrated Report 2023

Please visit our corporate website for more information on risk management.

Compliance

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

President and Chief Executive Officer Hidaka has made “Compliance Comes First—Never Tolerate Wrongdoing“ the top message for the entire Group. We promote compliance globally as
the foundation of our value creation as a Kando Creating Company.

Compliance Structure 
The Yamaha Motor Group has established a Sustainability Committee,

deliberated by the Sustainability Committee, together with ESG risks, andworkplace, such as yearly compliance awareness surveys for Group compa-

chaired by the president and chief executive officer, to create a structure toa structure has been established to ensure their effectiveness.

nies, the distribution of messages from the president and chief executive

ensure legal and regulatory compliance throughout the entire Group. The

The activities promoted by the Compliance Division under theofficer, and training for each Group company. These compliance activities,

committee deliberates plans for activities to ensure compliance and moni-

Sustainability Committee range from activities for management, such as

together with the Code of Ethics and Compliance Risk Assessment (whichtors the actual implementation of those plans and the corporate culturecompliance case studies conducted by the Global Executive Committee

includes global training videos in 11 languages) and the Compliancewith regard to compliance. The outcomes of these deliberations and moni-(GEC) of core Group leaders and the annual Global Compliance Meeting

Hotline operated globally, are used to promote a system for compliancetoring are reported, as appropriate, to the Board of Directors as items(GCM) for Group company top management, to activities for thethroughout the entire Group.

The Yamaha Motor Group defines compliance as “understanding andanti-monopoly policy, and other individual compliance policies—as they areare undertaken at each Group company based on compliance activity

complying with the legal obligations, internal regulations, and socialof particular importance to the Group’s business—to promote good compli-

plans in consideration of these assessments. Moreover, we have estab-norms.” It has established a Code of Ethics, adopted by all Group compa-

ance practices, including global compliance with laws and regulations andlished a compliance hotline to receive whistleblower reports from domestic

nies, as the standard of conduct to be observed by officers and employeessocial norms.

and overseas Group companies and conduct necessary investigations andCode of Ethics 

responsible for leading Yamaha in being a Kando Creating Company. In

Furthermore, compliance risk assessments are conducted annually at

addition, based on the Group’s Sustainability Basic Policy, each Group com-each business unit and Group company to monitor risk conditions andpany has adopted a human rights policy, an anti-bribery policy, an

implement appropriate countermeasures. Compliance and legal education

corrective actions.

Initiatives in Fiscal 2022 
The Global Executive Committee (GEC) held in fiscal 2022 featured case

Other compliance law training at the headquarters includes respect forstudies and discussions on insider trading, business and human rights, andhuman rights, human rights and harassment, antitrust law precautions when

speaking up. In addition, the Global Compliance Meeting (GCM) addresses

in contact with competing businesses, bribery of foreign public officials ineach of the Group’s key risks defined by the Sustainability Committee, such

emerging markets, handling of personal information, exchanging technol-

as respect for human rights, trade control, and anti-corruption, throughogy with other companies, proper import/export procedures, and manage-

video broadcasts of dialogues between the heads of the divisions in charge

ment of chemical substances contained in products. In addition to theseof these areas. Furthermore, the directors’ training included a discussion on

areas, e-learning programs cover cybersecurity, security trade control, infor-

quality irregularities based on published case studies and investigative

mation management, sustainability, and other essential compliance areas inreports from other companies.

light of the Group’s business activities and internal examples.
Please visit our website for more information on compliance initiatives.

83

Yamaha Motor Co., Ltd. Integrated Report 2023

Facts and Data
85 Financial and Non-Financial Highlights
87 Eleven-Year Summary
88 Environmental and Social Data
89	Management’s Discussion and Analysis of
Fiscal 2022 Business Results
93 Design Awards
94 Corporate Information / Stock Information
Please refer to the Securities Report for further details (in Japanese only).

84

Yamaha Motor Co., Ltd. Integrated Report 2023

Financial and Non-Financial Highlights

Introduction

Net Sales

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

2,400

Management Platforms

Facts and Data

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

240

2,248.5

Activities for Greater
Functional CompetitivenessMedium- to Long-Term Strategies

224.9(¥ billion)

12

200

9

150

(%)

174.4

10.0
1,800

180

12
9

7.8
2,084.4

1,200

120

6

100

6

60

3

50

3

0

0

600
164.1

0
2018
Japan

2019

2020

2021

0

2022

2018
Operating income

Overseas

2019

2020

2021

2022

0
2018

Operating income margin

2019

2020

2021

2022

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

Net sales increased to a record-breaking ¥2,248.5 billion due to strong

Operating income increased by ¥42.5 billion from the previous fiscal year

Net income attributable to owners of parent rose ¥18.9 billion, or 12.1%, year

demand for outboard motors in developed countries and the recovery ofowing to continued cost reductions, the realization of price pass-on effects,

on year to ¥174.4 billion, and the ratio of net income attributable to owners ofdemand for motorcycles in emerging markets, despite the impact of supply

and the positive impact of the yen’s depreciation, despite a significant

parent to net sales fell by 0.8 percentage point year on year, to 7.8%.

shortages caused by global supply chain disruptions.

increase in costs, chiefly raw material and distribution costs.

Return on Equity (ROE)

Total Assets / Return on Assets (ROA)(¥ billion)

(%)

2,500

2,183.3

2,000

15
12

8.7

1,500

6

500

3
0
2018

Total assets

2019

2020

2021

(¥)

15,328
20

12
18.7

15

12

600
511.47

9

450

9

10

6

300

6

5

3

150

3

0

0

9

1,000

0

Net Income per Share (Basic)

(%)

2022

0
2018

2019

2020

2021

2022

0
2018

2019

2020

2021

2022

ROA

Total assets increased ¥350.4 billion year on year, to ¥2,183.3 billion, due to

ROE decreased by 1.1 percentage points from the end of the previous fiscal

Net income per share (basic) rose ¥65.8 year on year to ¥511.47, and net

factors such as an increase in inventories caused by production delays

year, to 18.7%. This index has continuously exceeded our medium-term

income per share (diluted) was ¥511.26. Total dividends paid for the fiscal

resulting from difficulties procuring parts, and an increase in long-term sales

target level of 15%.

year under review was ¥125 per share.

finance receivables in association with an increase in retail financing.

85

Yamaha Motor Co., Ltd. Integrated Report 2023

Financial and Non-Financial Highlights

Introduction

R&D Expenses and R&D Expenses to Net Sales Ratio(¥ billion)

(%)

120

105.2

90
4.7

60
30

R&D expenses

2019

2020

2021

Management Platforms

Capital Expenditures

CO2 Emissions (Scope 1 and Scope 2)*(¥ billion)(1,000 t-CO2)

8.0

100

6.0

75

88.2

12

800

9

600

Facts and Data

12
9
465

4.0

50

6

400

6

2.0

25

3

200

3

0

0

0

0

0
2018

Activities for Greater
Functional CompetitivenessMedium- to Long-Term Strategies

2022

2018

2019

2020

2021

2022

0
2018

2019

2020

2021

2022

R&D expenses to net sales ratio

Research and development for new and growing businesses enhances the

Capital expenditures targeting sustainable growth and greater efficiency inearning power of core businesses and contributes to a sustainable society.

existing businesses rose ¥21.2 billion year on year, to ¥88.2 billion.

As a Groupwide goal, the Company has set medium- to long-term targets
for reducing the CO2 emissions generated over product life cycles and isalso working to reduce the greenhouse gas emissions produced in

R&D expenses for the fiscal year under review totaled ¥105.2 billion.

manufacturing.
* Scope 1 and Scope 2: Direct and indirect emissions produced by the Company’s
operations

Water Intake

Number of Group Companies Joining Unified Certification Program
2014
2015
2016
2017
2018
2019
(No. of companies)(Million m3)

12

60

9

45

3.0

6

30

1.5

3

15

0

0

6.0
4.5

4.05

0
2018

2019

2020

2021

2022

45

2018
Japan

2019

2020

2021

2022

Brand Ranking*28th* Brand value ranking of Japan-based brands carried out by Interbrand Japan (BestJapan Brands 2023)

Overseas

The Company will continue to measure its global use of water resources

The Company has been working toward receiving ISO 14001 certification

The Yamaha brand, calculated by combining the brand value of bothand reduce the amount of water intake by promoting the reuse of coolant

for environmental management systems at Group companies in Japan andYamaha Motor and Yamaha Corporation, was valued at US$2,004 million

water and water collection (rainwater and other sources) at its factories.

overseas since fiscal 2012. A total of 45 companies (12 in Japan and 33(compared with US$1,801 million in fiscal 2022 and US$1,480 million inoverseas) have joined the unified certification program, mainly manufactur-

fiscal 2021).

ing companies in Asia (including Japan), Europe, the United States, andSouth America.
86

Yamaha Motor Co., Ltd. Integrated Report 2023

Eleven-Year Summary

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries (Years Ended December 31)
Millions of yen

2012

2013

2014

2015

2016

2017

2018

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

For the year:
Net sales

2019

2020

2021

2022

¥1,664,764¥1,471,298¥1,812,496¥2,248,456% change2022 / 2021

For the year:

Sales by product:

Net sales

24.1

Sales by segment:

Motorcycles

798,676928,203

977,580

1,032,560

930,112

1,045,211

1,022,174

Land Mobility

1,119,840

946,476

1,179,736

1,468,244

24.5

Marine Products

196,320

243,362

276,367

309,337

297,216

323,838

344,658

Marine Products

350,059

328,344

391,130

517,040

32.2

Power Products

103,588

126,722

142,204

169,495

152,310

151,622

153,778

Robotics

75,64483,005120,280

115,869(3.7)

Industrial Machinery and Robots

30,81332,261

38,942

46,501

46,871

67,571

69,891

Financial Services

40,92846,05848,64362,17827.8

78,27679,922

86,11373,262

76,322

81,84582,63478,292

67,41272,704

85,12317.1

Gross profit

235,068

318,765

372,849

436,525

402,660

458,629455,173

Gross profit

442,331371,812506,840

633,745

25.0

Operating income

18,59855,137

87,249130,329

108,594

149,782

140,787

Operating income

115,364

81,672

182,342

224,864

23.3

Ordinary income

27,26760,092

97,279125,231102,073

154,826

137,969

Ordinary income

119,479

87,668

189,407239,293

26.3

Net income attributable toowners of parent

7,489

44,05768,45260,02363,153

101,60393,366

Net income attributable toowners of parent

75,73653,072

155,578

174,439

12.1

Net cash provided by (used in) ­operating activities(2,385)66,976

93,61828,475

143,163

126,342

58,858Net cash provided byoperating activities

99,127

110,487

141,336

70,921(49.8)Net cash used in investing activities(51,081)(62,679)(72,470)(68,475)(46,541)(53,194)(48,274)

Net cash used in investing activities(79,662)(43,950)(51,026)(74,160)

45.3

Free cash flow

(53,466)

4,296

21,149(40,000)

96,621

73,147

10,584

Free cash flow

19,46566,53790,309(3,238)(103.6)

Net cash provided by (used in) ­financing
activities

15,761

3,620(8,908)

6,845(67,627)(52,830)(26,423)

Net cash provided by (used in) ­financing
activities(36,760)

83,668(93,488)

23,103(124.7)

Capital expenditures

48,78856,80065,87164,064

61,33056,532

48,342

Capital expenditures

58,05353,756

66,963

88,206

31.7

Depreciation expenses

34,27836,407

37,66744,32442,43445,457

46,405

Depreciation expenses

49,68948,241

51,12959,824

17.0

Other Products

At year-end:

Other Products

At year-end:

Total assets¥962,329¥1,146,591¥1,310,040¥1,305,236¥1,318,776¥1,415,845¥1,420,854

Total assets¥1,532,810¥1,640,913¥1,832,917¥2,183,291

19.1

Net assets

341,561

422,792

503,224

531,700

575,404

665,232

695,743

Net assets

751,828

749,158

900,670

1,054,298

17.1

Interest-bearing debt

326,976

382,929

403,652

410,147

364,381353,490356,688

Interest-bearing debt

364,951

466,935

458,514602,689

31.4

Ratios:Ratios:Operating income margin (%)

1.5

3.9

5.7

8.0

7.2

9.0

8.4

Operating income margin (%)

6.9

5.6

10.1

10.0

Return on shareholders’ equity (ROE) (%)

2.5

12.7

16.2

12.6

12.3

17.6

14.6

Return on shareholders’ equity (ROE) (%)

11.1

7.5

19.8

18.7

Equity ratio (%)

32.0

33.5

35.1

37.6

40.5

44.0

46.3

Equity ratio (%)

46.0

43.6

46.9

45.9

Price/earnings ratio (times)

44.2

12.5

12.5

16.0

14.2

12.7

8.1

Price/earnings ratio (times)

10.2

13.9

6.2

5.9

Debt/equity ratio (times)

1.06

1.00

0.88

0.84

0.68

0.57

0.54

Debt/equity ratio (times)

0.52

0.65

0.53

0.60
Yen

Per share amounts:
Net income—basic

Per share amounts:¥ 21.45¥ 126.20¥ 196.06¥ 171.89¥ 180.84¥ 290.93¥  267.35—

126.20

196.04171.88180.83——

Net assets

881.881,099.84

1,316.58

1,405.35

1,529.53

1,783.35

1,882.64

Cash dividends

10.00

26.00

40.00

44.00

60.00

88.00

90.00

Net income—diluted

Net income—basic
Net income—diluted
Net assets
Cash dividends¥  216.83¥   151.89¥   445.67¥ 511.47———

511.26—2,018.84

2,045.15

2,484.31

2,965.79

19.4

90.00

60.00

115.00125.00

8.7

14.8

Millions of yen, except per share data
Share performance (at year-end):

Share performance (at year-end):

Price per share (yen)¥    949¥  1,577¥  2,442¥  2,744¥  2,574¥    3,695¥  2,159

Price per share (yen)¥  2,203¥  2,104¥  2,759

3,010

9.1

Market capitalization

331,288

550,585

852,683

958,264

898,931

1,290,413

753,989

Market capitalization

771,079735,207954,229

1,018,027

6.7

Number of shareholders

32,87329,47430,41634,21442,031

34,566

51,113

Number of shareholders

67,74182,73079,112

94,547

19.5

Number of employees

53,95853,382

52,66253,30653,15053,57953,977

Number of employees

55,25552,43751,24352,554

2.6

Other data (at year-end):¥

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

87

Yamaha Motor Co., Ltd. Integrated Report 2023

Environmental and Social Data

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Climate Change Mitigation Measures
Item

Unit

Number of fuel-injected motorcycles sold
Sales of
Low-Carbon Products

Number of motorcycles featuring a “BLUE CORE” engine soldThousandsof vehicles

Number of electrically power-assisted bicycles sold(including number of drive units)

2018

2019

2020

2021

2022

3,564

3,554

3,363

3,993

4,146

2,800

2,901

2,245

3,184

3,064

569

648

670

821

779

SASB Requirements
SASB Index*
TR-AU-000.A

Item

Unit
Thousandsof vehicles

Number of vehicles manufactured

Activity
MetricTR-AU-000.B

Thousandsof vehicles

Number of vehicles sold2022

Product
SafetyTR-AU-250a.2%

TR-AU-250a.3

Number of motorcycles recalled (in Japan)

Number

TR-AU-310a.1
Labor
Practices

Percentage of active workforce covered under­collective bargaining agreements
Number of work stoppages due to strikes
and lockouts

TR-AU-410a.2

Asia

Fuel Economy& Use Phase
Emissions88

TR-AU-410a.1

Sales-weighted average
passenger fleet fuel­economy, by region

Yamaha Motor Co., Ltd. Integrated Report 2023

Unit

2022

2) hybrid vehicles (HEVs) sold, andNumberNot applicable3) plug-in hybrid vehicles (PHEVs) sold
4,774

Fuel Economy& Use Phase
Emissions* Investigated all complaints that
the Ministry of Land, Infrastructure,
Transport and Tourism of Japan
had requested to investigate—• Evaluation of risks andopportunities• Yamaha carbon neutrality
strategies
https://global.yamaha-motor.
com/about/csr/the_environment/
plan-2050/#sec-06

Management of risks associated with the use ofcritical materials—•R esponse to supplier humanrights issues• Response to procurement risks
https://global.yamaha-motor.
com/about/csr/stakeholder/business-partners/#sec-06

Weight of end-of-life products recoveredt64,224

Percentage of above waste recycled%

72

Weight of end-of-life products recoveredt—

Percentage of materials recycled from end-of-life
products%

97.6

Recyclability of products%

90

TR-AU-410a.3

Strategy for managing model-year fuel economy
and emissions risks and opportunities

TR-AU-440a.1

19,447%84

Number0

Materials
Sourcing

TR-AU-310a.2
Number of workers involved in work stoppages,
multiplied by number of days idle

Item
Number of 1) zero emission vehicles (ZEVs) sold,

4,720

100
Number of safety-related defect complaints,­percentage investigated

SASB Index*

TR-AU-440b.1
Man-days
km/L

0
50

Europeg-CO2/km

92

North America

mpg

72

Japan

km/L

45

Oceania

km/L

30

Central andSouth America

km/L

44

Other

km/L

52

Materials
Efficiency &Recycling

TR-AU-440b.2

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

Management’s Discussion and Analysis of
Fiscal 2022 Business Results

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Overview 
During the fiscal year ended December 31, 2022, the global economy

dollar (down ¥22 year on year) and ¥138 to the euro (down ¥8 year on year).

Amid this economic environment, the Company’s development, manu-

Net sales at the Company increased due to strong demand for outboard

experienced a high number of destabilizing factors, including Russia’s pro-facturing, and sales teams worked together to minimize the impact oftracted invasion of Ukraine, the lockdown in China on account of a resur-parts procurement shortages, while we also promoted self-driven efforts

motors in developed countries, and demand recovered for motorcycles ingence in COVID-19 infections, and sharp exchange rate fluctuations. In

such as cost control and cost reductions with break-even-point manage-

emerging markets, despite the impact of supply shortages caused byaddition, rising interest rates in the U.S. in the second half of the year led

ment in mind, and also passed on prices to our customers.

global supply chain disruptions. Operating income also increased owing toto growing concerns of a global economic slowdown. In the Company’s

continued cost reductions, the realization of price pass-on effects, and the

As a result, the Company’s consolidated net sales for the fiscal year underbusiness, even amid continued strong demand for outdoor recreation, per-review increased ¥436.0 billion (24.1%) year on year, to ¥2,248.5 billion;

positive impact of the yen’s depreciation, despite a significant increase insistent shortages of semiconductor and other components, supply chain

operating income increased ¥42.5 billion (23.3%), to ¥224.9 billion;

costs, chiefly raw material and distribution costs.

disruptions, and other factors resulted in shortages in product supply.

ordinary income increased ¥49.9 billion (26.3%), to ¥239.3 billion; and net

Moreover, expenses for raw materials, logistics, labor, and more soared toincome attributable to owners of parent increased ¥18.9 billion (12.1%),

unprecedented levels. On the other hand, the yen’s depreciation became ato ¥174.4 billion; leading us to achieve record-high sales and respective

tailwind for the Company.

income. Exchange rates for the fiscal year under review were ¥132 to the U.S.

Performance by Business Segment 

Factors Impacting Operating Income (By Business)(¥ billion)

Land Mobility Segment
Net sales increased ¥288.5 billion (24.5%) year on year, to ¥1,468.2 billion,

Exchange Effects+80.3

and operating income increased ¥18.7 billion (27.2%) year on year, to

224.9¥87.4 billion.
With regard to motorcycles in developed markets, demand was strong,

Land Mobility
Business

with increased unit sales in Europe and North America, resulting in net
sales of ¥322.9 billion, an increase of ¥73.5 billion (29.5%) year on year.

182.3(13.3)

Marine Products
Business(8.6)

Demand rose for motorcycles in emerging markets owing to progress

Robotics
Business

Financial Services Other Products Growth Strategy
Business
Expenses
Business(5.9)

made in the recovery of economic activities in a range of countries, andunit sales increased in India, Indonesia, Vietnam, and other countries,

(4.2)

0.0

YRH (0.3)

resulting in net sales of ¥968.8 billion, an increase of ¥201.7 billion(5.7)(26.3%) year on year. Although the shortage of semiconductors and othercomponents has been more prolonged than expected, we were able toMCminimize the impact by procuring alternative components and thoroughly

+5.5

RV

managing production, resulting in an increase in sales. The operating
income of the motorcycle business overall increased despite soaring production costs, such as for raw materials and logistics, due to the implementation of cost pass-throughs and the positives of a weaker yen. Overall

SPV

motorcycle sales volume was 4.77 million units, an increase of 6.3% year

(15.4)

on year, due to strong demand in many regions.

(3.4)

In the recreational vehicles (all-terrain vehicles, ROVs, and snowmobiles)
category, the boom in outdoor recreation continued, but the shortage ofparts and components and supply chain disruptions also continued and limited our supply capabilities. While unit sales fell overall, net sales increased
from passing on costs and the depreciating yen providing a further boost.

2021（$/€：110/130）**Exchange rate as of December 31 of the corresponding year

89

Yamaha Motor Co., Ltd. Integrated Report 2023

2022（$/€：132/138）*

Management’s Discussion and Analysis of
Fiscal 2022 Business Results

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Operating income, on the other hand, declined due to lower factory utiliza-

continued, but so did supply constraints stemming from part shortages

Financial Services Segmenttion rates at our U.S. production base and spiking production costs.

and supply chain disruptions, and this drove down unit sales. Still, sales

Net sales increased ¥13.5 billion (27.8%) year on year, to ¥62.2 billion, but

As for electrically power-assisted bicycles, the shortage of parts andand profits both rose for the Marine Products business as a whole due tooperating income decreased ¥1.6 billion (8.4%), to ¥17.5 billion.

components triggered by the Shanghai lockdown in the second quarterthe cost pass-throughs enacted in the third quarter, in addition to the ben-Receivables increased in all regions and this drove up sales, but for operat-

and logistics holdups brought on by shipping container shortages led toefits brought by the weaker yen.

ing income, the effects of rising interest rates raised procurement interest
rates. Additionally, the borrowing risks we perceived led us to record asevere production delays. The situation has since begun improving, but isstill far from a complete recovery and unit sales fell. Still, the weak yen

Robotics Segment

higher allowance for doubtful accounts for fiscal 2022 on top of theworked in our favor and net sales rose slightly overall. In terms of operat-

Net sales in the Robotics segment decreased ¥4.4 billion (3.7%) year on

decrease in the one-time allowance for doubtful accounts recorded in theing income, however, we have worked on pass-throughs to counter rising

year, to ¥115.9 billion, and operating profit fell ¥5.7 billion (32.6%) toprevious fiscal year.

costs, but the provisions for product warranties recorded due to a

¥11.9 billion.

battery recall in the first quarter meant that the business posted lower

In China, the Shanghai lockdown and a slower economic recovery led

Other Products Segment

to lower capital investment demand there, but automotive sector invest-

Net sales increased ¥12.4 billion (17.1%) year on year, to ¥85.1 billion, butments in Europe and the U.S., the China Plus One strategy, and capitalthe business recorded an operating loss of ¥1.2 billion, down from operat-

Marine Products Segment

investments aimed at shifting to domestic production kept demand strong.

ing income of less than ¥1 billion in the previous fiscal year. Higher sales of

Net sales in the Marine Products segment increased ¥125.9 billion (32.2%)

With surface mounters, sales from large investments for automotive sys-

premium-priced golf car models and the cost pass-throughs we imple-

year on year, to ¥517.0 billion, and operating income was up ¥32.4 billion

tems and other sectors primarily in Japan and other developed markets

mented brought higher sales overall, but operating income declined partly(42.2%) to ¥109.2 billion.

have grown, but a cooling down of demand in China, Taiwan, and Southdue to soaring raw material costs and the higher fixed costs accompanying

Korea saw overall sales decline. It was a similar story for our industrial

supply chain disruptions.

profits overall.

With outboard motors, the boom for outdoor recreation remains strong
in developed markets and this was particularly true for large outboard

robots and semiconductor manufacturing equipment, with sales falling inmodels in the 200+ horsepower category. While container shortages andChina, Taiwan, and other markets. As a result, the Robotics business as achaos at U.S. shipping ports impacted the business, the situation graduallywhole posted lower net sales, and profits also fell due to mounting costs

improved and unit sales grew. There was also a recovery in tourism sector

for parts and logistics.

demand in emerging markets. For personal watercraft, the robust demand

Total Asset TurnoverAnalysis of Financial Position (Times)Total assets at the end of fiscal 2022 amounted to ¥2,183.3 billion, anof having recorded ¥41.9 billion in cash dividends paid, ¥20.0 billion inincrease of ¥350.4 billion from December 31, 2021. Current assets werepurchase of treasury shares, ¥174.4 billion in net income attributable toup ¥261.0 billion largely due to increases in accounts receivable and short-owners of parent, and a ¥47.8 billion increase in foreign currency

term sales finance receivables on the back of firm demand, and antranslation adjustments.

increase in inventories caused by production delays resulting primarily from

As a result, the shareholders’ equity ratio was 45.9%, compared withparts procurement difficulties. Fixed assets increased ¥89.4 billion, mainly

46.9% at the end of the previous fiscal year. The net debt-equity ratio was

due to an increase in long-term sales finance receivables in association

0.31 times, compared with 0.21 times at the end of the previous fiscal year.

with an increase in retail financing.
Total liabilities increased by ¥196.7 billion, to ¥1,129.0 billion, due in part

1.3

1.2
1.12
1.1

1.0

to increased interest-bearing debt mainly caused by higher operating capital.
Total net assets were up ¥153.6 billion, to ¥1,054.3 billion, as a result

0.9

0
2018

90

Yamaha Motor Co., Ltd. Integrated Report 2023

2019

2020

2021

2022

Management’s Discussion and Analysis of
Fiscal 2022 Business Results

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Consolidated Cash Flow

Cash Flows (¥ billion)

Operating Cash Flow

Financing Cash Flow

Overall, net cash provided by operating activities in fiscal 2022 was ¥70.9

Net cash provided by financing activities in fiscal 2022 was ¥23.1 billion,

billion, compared with ¥141.3 billion in the previous fiscal year. This mainlycompared with ¥93.5 billion used in financing activities in the previous

reflected ¥245.8 billion in income before income taxes (vs. ¥199.7 billion);

fiscal year, primarily reflecting an increase in interest-bearing debt and¥59.8 billion in depreciation (¥51.1 billion); and other factors. Outflows

other factors, despite cash used for cash dividends paid and the purchaseexceeded inflows due to factors including an increase in inventories ofof treasury shares.

¥90.1 billion (an increase of ¥76.2 billion); an increase in sales financereceivables of ¥70.8 billion (a decrease of ¥5.0 billion); ¥53.8 billion in

As a result of the above activities, free cash flow for fiscal 2022 was a neg-income taxes paid (¥30.1 billion); an increase in trade receivables of ¥12.9

ative ¥3.2 billion (vs. a positive ¥90.3 billion in the previous fiscal year).

billion (an increase of ¥8.6 billion); and other factors.

Cash and cash equivalents totaled ¥296.8 billion, an increase of ¥21.9 billion from the end of the previous fiscal year. Interest-bearing debt at theInvesting Cash Flow

end of fiscal 2022 was ¥602.7 billion, an increase of ¥144.2 billion from

Net cash used in investing activities in fiscal 2022 was ¥74.2 billion, com-the end of the previous fiscal year.

pared with ¥51.0 billion in the previous fiscal year, primarily reflecting ¥89.4

180

120
70.9
60
23.1
0

‒3.2

–60
–74.2
–120
2018

billion used for the purchase of fixed assets (vs. ¥66.8 billion); ¥15.3 billion

Operating cash flow2018 年 flow
Financing cashused for the purchase of investment securities (vs. ¥5.4 billion); and other

2019

2020

Investing cash flow
2019
Free年 cash flow 2020 年

2021

2022

2021 年2022 年

factors, despite ¥22.5 billion (vs. ¥17.1 billion) in proceeds from sales ofinvestment securities.
Interest-Bearing Debt and Debt/Equity Ratio

Capital Resources and Liquidity 
The Yamaha Motor Group’s primary capital needs are covering the costs ofWhile free cash flow was negative in fiscal 2022, this was due to an

procuring the materials, parts, and other articles used in product manufac-

increase in sales finance receivables and inventories on the back of strong

turing; costs incurred in the manufacturing process; the purchasing costs

demand and solid sales in various countries, as well as active investing infor products and merchandise; selling, general and administrative

capital expenditures, etc. In addition, the Company repurchased its own

expenses; working capital; and capital expenditures.

shares to improve shareholder returns and capital efficiency. The Company

Group companies acquire short-term loans requiring payment within

intends to pay a full-year dividend of ¥130 per share for the fiscal year

one year denominated in local currencies to use as working capital.

ending December 31, 2023, with a ¥30.0 billion purchase of treasury

Meanwhile, funds for capital expenditures come primarily, in principle,

shares also planned.

from internal reserves, including paid-in capital and retained earnings.

(¥ billion)

(Times)

800

1.00

650

603

0.75
0.60

500

0.50

350

0.25

In managing capital liquidity, Yamaha Motor secures the necessary
liquidity by creating and updating cash flow schedules on a timely basis
and properly maintaining cash and cash equivalents on hand.

0

0
2018
Interest-bearing debt

91

Yamaha Motor Co., Ltd. Integrated Report 2023

2019

2020

Debt/equity ratio

2021

2022

Management’s Discussion and Analysis of
Fiscal 2022 Business Results

Introduction

Medium- to Long-Term Strategies

In the Land Mobility segment, investments of ¥56.8 billion were madeManagement Platforms

Facts and Data

Capital Expenditures

Capital Expenditures 
The Group made investments of ¥88.2 billion in total during fiscal 2022.

Activities for Greater
Functional Competitiveness(¥ billion)

investments of ¥7.9 billion were made mainly for research and develop-

100.0

ment for surface mounters and industrial robots, expanding the plant, andmainly for updating production facilities, new motorcycle models, improv-

new industrial-use unmanned helicopter models. In the Other Products

ing the production scheme, and for R&D. In the Marine Products segment,

segment, investments of ¥5.2 billion were made mainly for new golf car

investments of ¥18.3 billion were made mainly for new outboard motor

models. In 2023, the Company plans capital expenditures of ¥100.0 billion

models and upgrading production equipment. In the Robotics segment,

and R&D expenditures of ¥121.0 billion.

5.2
7.9

75.0

18.3
50.0

Cash Dividends 
The Company considers increasing returns to shareholders an important

the Medium-Term Management Plan. The Company has a basic policy ofmanagement issue as it endeavors to improve corporate value.

paying an interim dividend and a year-end dividend. The decision-making

As indicated in the Medium-Term Management Plan announced inbody for the interim dividend is the Board of Directors, while the General

2022, we will pay stable and continuous dividends under our new share-

Meeting of Shareholders decides the year-end dividend. The Company's

holder return policy while taking into consideration the outlook for busi-

Articles of Incorporation provide that the record date shall be June 30 forness performance and investments for future growth. We will continue tothe interim dividend and December 31 for the year-end dividend.

flexibly return profits to shareholders in accordance with the size of cash
flows, with a target total return ratio of 40% for the cumulative period of

56.8

25.0

0
2019
Land Mobility

The Company decided to pay a full-year dividend of ¥125 per share

To address these risks, we will move forward with core structural reforms

motor models and motorcycles in emerging markets, so we will look toand measures to reinforce our foundations, such as lowering costs andmake progress with parts procurement, production, and shipments as we

raising productivity. At the same time, the marketing and technology

aim to optimize our market inventory levels for products in short supply.

departments will come together to work on accelerating the pace of such

Furthermore, we expect the effects of the cost pass-throughs we imple-

reforms, create new value for adapting to changes in our business environ-mented in 2022 to manifest even more clearly in 2023, and for oceanment, and make headway with initiatives for sustainable growth. Also,

freight rates to be lower than the previous year.

regarding the effects from the ongoing shortage of semiconductors andother components on our immediate production operations, we haverecovery in automobile production for materials like aluminum, precious

made progress with developing alternatives, so we expect things to begin

metals, and steel, as well as further rises in labor and energy costs.

improving in the latter half of 2023.

factors make the situation we face quite uncertain.

Forecast

Yamaha Motor Co., Ltd. Integrated Report 2023

Year-on-Year Increase/
Decrease¥2,450 billion¥201.5 billion
Up 9.0 points

Operating income¥230 billion¥5.1 billion
Up 2.3 points

Ordinary income¥230 billion¥9.3 billion
Down 3.9 points

Net income
attributable toowners of parent¥160 billion¥14.4 billion
Down 8.3 points

Net sales

Exchange rates: ¥ 125 to US$1 (up ¥7 year on year),¥135 to €1 (up ¥3 year on year)

92

2022
Other Products(including an interim dividend of ¥57.5 per share) for fiscal 2022.

In 2023, we expect demand to remain particularly high for large outboard

Additionally, global economic trends, exchange rate fluctuations, and other2021
Robotics

2018Forecast for the Fiscal Year Ending December 31, 2023 

However, the risks we anticipate include price hikes accompanying a

2020
Marine Products

Design Awards

Introduction

Medium- to Long-Term Strategies

Activities for Greater
Functional CompetitivenessManagement Platforms

Facts and Data

Good DesignAward 2022
Motorcycle

Electric Boat Control System

Red Dot Award 2022 [Winner]iF Design Award 2022

Good Design Award 2022 Best100

MT-09HARMO

HARMO is a platform for next-generation boat control systems and consists of an eco-friendly electric
propulsion unit, a remote control box for thrust
inputs, a joystick for intuitive operation, and more.
With its green operation and easy-to-use controls,
HARMO offers “low-speed mobility on the water”
as a new value by making the cruising experience
more comfortable as well as more enjoyable.

Based on the MT Series’ “Torquey & Agile” concept,
the MT-09 was developed with an emphasis on“feel,” weight reduction, and higher power, and to
be a model usable across a wide range of scenarios,
from commuting to weekend rides. The styling strips
the bike down to the bare essentials and seeks tostand out by highlighting the functional beauty ofthe parts themselves. The MT-09 is packed with newfeatures and innovative technology, including a
newly designed 889cc CP3 3-cylinder engine, a lightweight chassis, SpinForged aluminum wheels, andYZF-R1-derived onboard electronics.

Motorcycle

Electric Trials Bike

Red Dot Award 2022 [Winner]iF Design Award 2022

Good Design Award 2022

YZF-R7

TY-E 2.0

This working prototype for trial competition, which
demands incredible maneuverability and versatility,
was created as part of R&D into new approaches fordeveloping EVs that can offer more fun than their
ICE counterparts. Featuring a sophisticated electric
powertrain control system and high-capacity battery, the TY-E 2.0 even ran against gasoline models
at World Championship-level competition.

The latest addition to Yamaha’s R-Series of supersportmodels, the R7 offers not only the excitement ofriding a faired sportbike but also the joys unique toowning an R-Series machine to a wider range ofmotorcycle enthusiasts around the world. Calling on
the excellent base performance of its powerplantand chassis platform, this new model delivers realriding fun and top-end quality and feel but at anaffordable price.

Personal Watercraft

Automated Transport Service

Red Dot Award 2022 [Winner]

Good Design Award 2022

The SuperJet is the first fully remodeled one-seatstand-up model watercraft in 30 years. It features a
4-stroke, 3-cylinder engine that complies with current emissions regulations, a radical race-inspired
design, and a wide-front hull shape. It is equippedwith a handlebar adjustment function to suit bodysize and preference, an extended foot tray, and anengine suppression mode.

Automated transport with small EVs is expected toplay a greater role in industrial settings and the eve
auto service is addressing the chronic labor shortages
worksites face. It is easy to implement and operate for“automation starting today” with a vehicle design
ready for automated or manned operation, powerful
towing/load capacities, and traveling indoors or
outdoors between factory buildings.

SuperJet

93

Yamaha Motor Co., Ltd. Integrated Report 2023

eve autoCorporate Information / Stock Information

Introduction

Medium- to Long-Term Strategies(As of December 31, 2022)

Company
nameYamaha Motor Co., Ltd.

Headquarters

2500 Shingai, Iwata, Shizuoka 438-8501, Japan

Date ofJuly 1, 1955
establishment

Stock listing

Tokyo Stock Exchange

Stock code

7272

Administrator ofshareholder registry

Sumitomo Mitsui Trust Bank, Limited
3-15-33 Sakae, Naka-ku, Nagoya-shi,
Aichi Prefecture 460-8685

Capital¥86,100 million

AuditorErnst & Young ShinNihon LLC

Number of
employees

Consolidated: 52,554
Non-consolidated: 10,193

Inclusion in major
indices

Nikkei 225, JPX-Nikkei 400

Capital Stock

Major­consolidated
subsidiaries

Principal Shareholders

Authorized

900,000,000 shares (common stock)

Shareholder

Issued350,217,467 shares

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

18.81

Number of shareholders

94,547

Custody Bank of Japan, Ltd. (trust account)

7.35

Yamaha Corporation

4.62

Toyota Motor Corporation

3.70

SMBC Nikko Securities Inc.

3.64

Securities companies

7.0%Japanese individuals and others

14.1%

Foreign investors

30.5%

Activities for Greater
Functional Competitiveness

Shareholder
Composition

Other Japanese
corporations

Japanese financial
institutions

36.9%

11.5%

Ownership (%)

Management Platforms

Facts and Data

Yamaha Motorcycle Sales Japan Co., Ltd.
Yamaha Motor Electronics Co., Ltd.
Yamaha Motor Corporation, U.S.A.
Yamaha Motor Manufacturing
Corporation of America
Yamaha Motor Europe N.V.
PT. Yamaha Indonesia Motor Manufacturing
India Yamaha Motor Pvt. Ltd.
Yamaha Motor Vietnam Co., Ltd.
Thai Yamaha Motor Co., Ltd.
Yamaha Motor Philippines, Inc.
Yamaha Motor Taiwan Co., Ltd.
Yamaha Motor do Brasil Ltda.

Shareholder Notes
Fiscal year

January 1 to December 31

Reference date for­allocation of surplus
for dividends

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

1.77

General Meeting of
Shareholders

MarchState Street Bank West Client Treaty 505234

1.72

Share unit number

100 shares

The Shizuoka Bank, Ltd.

1.67
Method of public notice

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

NORTHERN TRUST CO. (AVFC) RE
SILCHESTER INTERNATIONAL INVESTORSINTERNATIONAL VALUE EQUITY TRUST

2.14

JPMorgan Securities Japan Co., Ltd.

1.80

SSBTC CLIENT OMNIBUS ACCOUNT

Note: Percentage of ownership is calculated excluding treasury shares.

External Recognition 
FTSE4Good Index Series
FTSE Blossom Japan Index
FTSE Blossom Japan Sector Relative Index
MSCI ESG RATINGS (AAA rating)*1

MSCI ESG Leaders Indexes /MSCI Japan ESG Select Leaders Index*2
CDP (A- grade in the climate change report category)
S&P Japan 500 ESG

SOMPO Sustainability Index 2022
Certified 2023 Health & Productivity Management
Outstanding Organizations (Large Enterprise Category[White 500])*1 T HE USE BY YAMAHA MOTOR OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF
MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF YAMAHA MOTOR BY MSCI. MSCI SERVICES AND DATA ARE
THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY.
MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.
*2 T HE INCLUSION OF YAMAHA MOTOR IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICEMARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF
YAMAHA MOTOR BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

94

Yamaha Motor Co., Ltd. Integrated Report 2023

YAMAHA MOTOR CO., LTD.
2500 SHINGAI, IWATA, SHIZUOKA, JAPANhttps://global.yamaha-motor.com/