Annual Report

2016

Year ended December 31, 2016

INCREASING CORPORATE VALUE
THROUGH SUSTAINABLE GROWTHCONTENTS

Yamaha Motor Co., Ltd., is a multinational enterprise with around 140 consolidated subsidiaries and equity-method affiliates

Introduction
To Our Stakeholders.....................................................2
Growth over the Years ..................................................4
Company Overview ......................................................6
Financial and Non-Financial Highlights ..........................8in approximately 30 countries and regions, and about 90% of our consolidated net sales are derived from overseas markets.

Interview with the President ........................................10

We operate global development, production and sales networks, and our products are sold in more than 180 countries and regions.

Special Feature
Challenge and Dedication for Prosperity ......................20
Expanding the Solutions Business ...............................24

We have successfully diversified our business by capitalizing on our world-leading small engine, fiberglass-reinforced plastics
and electronic control technologies. Today, our proprietary technologies extend to a wide variety of products, including motorcycles,
marine products, power products and surface mounters.
We will move forward with restructuring and the transformation of our management base for continuous growth, to evolve
Yamaha Motor into a unique company that continues to achieve dynamic milestones.

Corporate Mission

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

Management Principles

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, high-quality 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

Overview of Operations
Motorcycles ...............................................................26
Marine Products ........................................................28
Power Products and Other Products ............................30
CSR
Customers .................................................................34
Employees .................................................................36
Shareholders and Investors.........................................38
Business Partners ......................................................39
The Community .........................................................40
The Environment ........................................................42
Governance Information
Corporate Governance ................................................48
Directors, Audit & Supervisory Board Members,
and Executive Officers ..............................................56
Comments from an Outside Director ...........................59
Financial and Corporate Information
Five-Year Summary ....................................................60
Financial Data by Market ............................................61
Financial Highlights ....................................................62
Management Discussion and Analysis of Operations ....64
Organization ..............................................................71
Investor Information ...................................................72

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

Annual Report 2016 (Online Version)

Action Guidelines

An online version of this report is also available.
Please visit the following website:
https://global.yamaha-motor.com/ir/annual2016/

Acting with Speed
Meeting change with swift and informed action

Information for Investors

Spirit of Challenge

Please refer to the following website for detailed financial
information and information regarding our business operations:

Courage to set higher goals without fear of failure

Persistence
Working with tenacity to achieve desired results, and then evaluating them

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

https://global.yamaha-motor.com/ir/

Information Related to Corporate Social
Responsibility (CSR)
Please refer to the following website for detailed CSR information:
https://global.yamaha-motor.com/about/csr/

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

1

To Our Stakeholders

Further enhancing Yamaha’s brand value and moving
forward toward becoming a unique company that
continues to achieve dynamic milestones
The Yamaha Motor Group is managed with the primary objective of further enhancing and refining the value of the

Hiroyuki Yanagi
President, Chief Executive Officer
and Representative Director

Takaaki Kimura
Executive Vice President
and Representative Director

Yamaha brand, by continuing to work with the spirit and passion that incorporate our brand slogan: Revs your Heart—delivering exceptional value and experiences that enrich the lives of everyone who comes into contact with Yamaha.
The fiscal year ended December 2016 showed signs of major changes in the global economic environment,along with continued sharp fluctuations in exchange rates and weak demand in some markets. Yamaha Motor’s net
sales, operating income, and ordinary income for the year were all lower than in the previous year, but if impacts of theexchange rate are excluded we recorded growth in both sales and profit. With the global business environment
undergoing drastic changes, we are making steady progress in implementing measures for the medium to long term,
which are beginning to produce results.
Our Medium-Term Management Plan (2016–2018) sets a long-term vision of being a unique company that
continues to achieve dynamic milestones. We are positioning this three-year period as a time to achieve significant
increases in corporate strength, and begin laying the foundation for even greater strength going forward. During 2017,
the second year under the plan, we aim to continue to achieve stable profit, and to increase investment for future
growth and returns to shareholders.
I ask for your continued guidance and support in these endeavors.

April 2017

2

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Hiroyuki Yanagi

Takaaki Kimura

President, Chief Executive Officer
and Representative Director

Executive Vice President
and Representative Director

Yamaha Motor Co., Ltd. ⎜ Annual Report 20163

Growth over the Years
2016–2018

Continuing to move forward asa Kando Creating Company

Medium-Term
Management Plan

Over the more than 60 years since Yamaha Motor was established, we haveconstantly sought to create new value. By further refining the “Yamaha spirit”
cultivated over those years, we will aim for new growth as a unique company
that continues to achieve dynamic milestones.

1977

1967

Enhance the earnings
power of existing
businesses, and maintainand strengthen a stablefinancial foundation

1975–

Offered new excitement with a sports carthat incorporates the latest, mostadvanced technological elements
Toyota 2000GT

2002
Established “soft bikes” that allow
women to drive with peace of mind
PassolCreated new demand by expanding our
product lineup
YG-292 golf car

Introduced an environmentallyfriendly urban commuter scooter
Passol electric commuter

1984

1968

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

2010
Developed a new genre of
motorcycles that can be used on
public roads and for off-road riding
Trail

1959

2015
Provided Japan with the enjoyment ofsports and leisure from overseas
YFM200, first four-wheeled all-terrain vehicle (ATV)

Delivered greater accessibility
on snow
SL350 snowmobile

Made lives more secure with safe water
Yamaha Clean Water Supply System, a smallscale water purification system

1987

Developed the marine market with boats
made of new, strong and lightweight material
FRP boats1960

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

Achieved a new riding style with thestability of twin front wheels
TRICITY

YT665, Yamaha’s six-hp
snow thrower

1955

1955

2014

Contributed to labor-saving and increased
efficiency in agricultural operations
R-50 (L09) industrial-use unmanned helicopter

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

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Pursued future possibilities and thecreation of new value
MOTOBOT, Yamaha’s humanoid riding robot

1980
Enhanced the corporate structure and expanded thebusiness under the global economic recession

1990
Created new markets by entering the industrial
machinery business and expanding the productlineup2000
Promoted globalization and structuralreform during a prolonged recession

2010

2016

Pursued sensibility and rationality for a period of intense competition

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

5

Company Overview
R&D Expenses¥94.9

Composition

Motorcycles

Net Sales

61.9%

billion¥930.1Each business proactively carries out
research and development, and the ¥94.9
billion in research and development
expenses recorded in 2016 marked
an increase from 2015.

billionMajor products:
Motorcycles, knockdown parts for overseas
production and intermediate parts for products

Number of New Models
Launched (2016)

Overseas Sales Ratio

80

89.1
%

modelsYamaha Motor’s businesses
launched a total of 80 new models
in 2016.

Overseas sales in 2016 totaled¥1,338.6 billion, accounting for89.1% of total net sales.

Composition

Power Products¥152.32016 Motorcycle Shipments

5.15

All-terrain vehicles, recreational off-highway vehicles,
snowmobiles, golf cars, generators, small-sized snow
throwers and multi-purpose engines

2016
Net Sales¥1,502.8

Marine Products
Market SharebillionNo.1

Composition

Industrial Machinery andRobots

3.1%

Net Sales¥46.9

billionMajor products:

The boat business had the largest
share of the Japanese market and theNo. 1 share of the global market foroutboard motors.

Surface mounters and industrial robots

Composition

Composition

Marine Products

Net Sales¥297.2
6

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

billionMajor products:

millionunits

Yamaha Motor's engineering, manufacturingand marketing in markets around theworld resulted in global unit sales of
5.15 million units in more than 180
countries and regions.

10.1%

Net Sales

19.8%

billion

Other Products

5.1%

Net Sales¥76.3

billionMajor products:

Major products:

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

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

Yamaha Motor Co., Ltd. ⎜ Annual Report 20167

Financial and Non-Financial Highlights

Net sales

Operating income andoperating income margin

Profit attributable to owners ofparent and ratio of profit attributableto owners of parent to net sales¥1,502.8 ¥108.6 7.2 ¥63.2 4.2
bil.

bil.

bil.

%

Although profitability improved due to higher
production efficiency, the impact of theexchange rate resulted in a 16.7% decline
from the previous year.

Increased 5.2%, owing to a lower tax burden in
the absence of a one-time income tax payment
in the previous year.

(Billion ¥)(Billion ¥)(Billion ¥)1,410.5

1,521.2

130.3

1,502.8

68.5

1,207.7

87.2

55.1

7.2%

systems

We are working with local NGOs to install water
purification systems, and as of the end of 2016,
we have installed 22 systems mostly within
Africa and in Indonesia.

63.2

60.0

108.6
8.0%

22

CO2 emissions

Water consumption

548

5.47

thousand t-CO2

million m3%

Declined 7.9% from the previous year, due tothe significant impact of the exchange rate fromthe yen’s appreciation, despite a slight decline
in motorcycle unit sales.
1,631.2

Clean Water Supply System

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

We will continue to strive to measure our global
use of water resources and reduce our water
resource consumption through programs including
the reuse of coolant water and water collection(rainwater and other sources) at factories.

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

584

557

548

2015

2016

6.18
5.60

5.47

2015

2016

44.1
4.5%

5.7%

4.2%

3.7%

3.1%

3.9%
18.6
7.5

1.5%
2012

2013

2014

2015

2016

2012

2013

2014

2015

0.6%
2012

2016

2013

2014

2015

2014

2016

2014

*Includes some forecast figures.
Operating income

Net income per share

Operating income margin (%)

Profit attributable toowners of parent

Total assets andreturn on assets

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

Net assets andequity ratio¥180.84 ¥1,318.8 4.8 ¥575.4 40.5
bil.

bil.

%

%

Rose from the previous year, due to the increasein profit attributable to owners of parent.

Increased ¥13.5 billion from the previous year,
due to an increase in property, plant andequipment.

An increase in retained earnings led to a ¥43.7
billion increase in net assets and a 2.9 percentagepoint improvement in the shareholders’ equity
ratio from the previous fiscal year-end.

(¥)(Billion ¥)(Billion ¥)

196
172

1,310.0 1,305.2 1,318.8
1,146.6

181
962.3

4.6%

4.2%

126

32.0%

5.6%
4.8%

33.5%

35.1%
503.2

37.6%

40.5%

531.7

575.4

422.8

Achievement of
unified certification

Local managers atoverseas locations

93

60

%

We have been working toward global
environmental ISO 14001 unified certification atGroup companies in Japan and overseas since2012. The program has been expanded to 44
companies, mainly manufacturing companies inJapan, Asia, Europe, the United States, andSouth America, and as of the end of 2016,
unified certification had been obtained by 41companies.

%

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

Women in management
positionsvs. 2014 level

3

times

2025
targetTo promote the participation of women, we haveset out and are pursuing a goal of doubling thenumber of female managers from the 2014 levelby 2020, and tripling the 2014 level by 2025.

341.6

21
0.8%
2012

2013

2014

2015

2016

2012

2013
Total assets

8

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

2014

2015

2016

Return on assets (%)

2012

2013
Net assets

2014

2015

2016

Equity ratio (%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

9

A Unique Company That Continues
to Achieve Dynamic Milestones
The Yamaha Motor Group has been operating under its new Medium-Term Management Plan since2016. This plan charts a course for new growth with the aim of being a unique company that
continues to achieve dynamic milestones and lives up to our “Revs your Heart” slogan.

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

Hiroyuki Yanagi
President, Chief Executive Officer
and Representative Director,
Yamaha Motor Co., Ltd.

10

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Fiscal 2016business results

Progress under the
Medium-Term
Management Plan

Financialstrategy

Returns toshareholders

Corporate
governance,
CSR

Message to
stakeholders

Capitalexpenditures,
R&D

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

11

Q1

Q2

Please give us an overview of business results for fiscal 2016.

What progress has been made under the Medium-Term Management Plan?

We maintained stable profits despite the impact of the exchange rate.

We have been working to provide new, uniquely Yamaha products,

Net sales for the fiscal year ended December 31, 2016, declined ¥128.3 billion, or 7.9%, from the previous year, to ¥1,502.8 billion,

and to build a uniquely Yamaha business model.

and operating income was ¥21.7 billion, or 16.7%, lower at ¥108.6 billion. Excluding the impact of the exchange rate,* net sales rose

The motorcycle business has succeeded in cultivating a new “sports commuter” market in the ASEAN region. The expansion in sales of¥29.3 billion, or 1.8%, and operating income increased ¥22.1 billion, or 16.9%. Increased sales of higher-priced products, and cost

sports commuter models manufactured in Japan and in ASEAN, and of racing models in Europe and the United States, has made it possible

reductions from the development of platform models and global models, and from production methods such as theoretical-value-based

to create a business model with higher profitability while offering new, uniquely Yamaha products to customers around the world.

production, contributed to improvements in profitability.

In 2016, the marine products business embarked on competing in the 3-trillion-yen global marine market. Along with expanding*Exchange rates for 2016 were ¥109/USD (a ¥12 appreciation compared with the previous year) and ¥120/euro (a ¥14 appreciation)

its lineup of boat control systems and other system products, the business is strengthening its alliances with boat builders to movebeyond being an engine supplier, to a system supplier.

Net sales/Operating income/Operating income margin

The power products and other businesses are developing new products that emphasize high added value to differentiate(Billion ¥)Yamaha’s products, with the aim of creating a unique business model.
8.0%
7.5%

7.2%
1,631.2

1,600.0

1,521.2

1,502.8

1,410.5

New value for the ASEAN
commuter market

5.7%

130.3
3.9%

108.6

120.0
Mio 125(Made in ASEAN)

87.2

Fino 125(Made in ASEAN)

Aerox 155
(Made in ASEAN)

55.1

We will create a business model with higher profitability and deliver
2013

2014

2015

2016

2017

$98/€130$106/€140$121/€134$109/€120$110/€115(Forecast)

12.7%

16.2%

12.6%

12.3%

13.5%

new, uniquely Yamaha products to customers around the world throughthe global rollout of products manufactured in Japan and in ASEAN.

ROE
Equity ratio

33.5%

35.1%

37.6%

40.5%

42.2%

Net income per share¥126.20¥196.06¥171.89¥180.84¥215

Net sales

Operating income margin

Operating income

R1(Made in Japan)

R6(Made in Japan)

Racing technologies for the global market

12

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

XMAX 300(Made in Indonesia)

TMAX 530(Made in Japan)

Sports commuting for the global market

Yamaha Motor Co., Ltd. ⎜ Annual Report 201613

We are aiming for ROE of 15% while enhancing
the stability of our financial position.

14

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

15

Q3

Q4

What is Yamaha Motor’s financial strategy?

Please tell us about Yamaha Motor’s capital expenditures and research and development.

We are aiming for ROE of 15% while enhancing the stability of our financial position.

We are proactively investing in equipment and in research and development to realize

Under the current Medium-Term Management Plan, we are positioning ROE as an important indicator. In 2016, ROE was 12.3%, but

our growth strategies.

we are forecasting a 1.2 percentage-point increase in 2017, to 13.5%. Going forward, we will target an ROE of 15% while enhancing

The current Medium-Term Management Plan allocates ¥130.0 billion over three years for flexible investment in new growth strategies.

the stability of our financial position.

Under the Plan, capital expenditures for existing businesses is set at ¥180.0 billion, the same level as in the previous

In terms of cash flow management, during 2016 we implemented various measures contained in the Medium-Term

Medium-Term Management Plan, and investment for new growth strategies is ¥60.0 billion, for a total of ¥240.0 billion. R&D expenses

Management Plan, and maintained stable profitability by reducing inventories and other working capital. As a result, we generated

are set at ¥280.0 billion for existing businesses and ¥70.0 billion for growth strategies, for a total of ¥350.0 billion. We will implementa robust positive cash flow. During 2017, we will continue to maintain stable profitability while flexibly investing for future growth.

our growth strategies along these lines.

Targeting shareholders’ equity of over ¥500 billion and ROE of 15%.
ROE

Ratio of profit attributable to owners of parent to net sales

(%)

(%)

20

8

Q5

What are your plans and policy for returns to shareholders?
We are targeting a dividend payout ratio of 30%.

16.2%
15

12.6%

12.3%

13.5%

Our dividend policy under the Medium-Term Management Plan is for a dividend payout ratio of 30% of profit attributable to owners of

6
4.5%

10

4

5

2

3.7%

4.2%

4.7%

parent. Under this policy, we paid a year-end dividend of ¥30 per share for 2016. Combined with the interim dividend of ¥30 per share,
this resulted in a full-year dividend of ¥60, for a payout ratio of 33% and a dividend increase for the fourth consecutive year.

Returns to Shareholders
0

2014

2015

2016

2017

0

2014

2015

2016

(Forecast)

Total asset turnover

Shareholders’ equity/Equity ratio(Times)(Billion ¥)

2.0

800

1.5
1.24

1.25

600
1.15

Toward dividend payout ratio of 30% and fifth consecutive year of dividend increases
2016: ¥60 (actual); 2017: ¥65 (forecast)2017(Forecast)

1.19

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

35.1%
459.7

37.6%
490.8

40.5%
534.2

42.2%
580.0

(Billion ¥/¥)

48
75.0
36

1.0

400

24

0.5

200

12

0

0

0

Profit attributable to owners of parent

Total dividend for the year

63.2

60.0

¥60

2015
2014

2015

2016

2017

2014

2015

(Forecast)

Yamaha Motor Co., Ltd. ⎜ Annual Report 20162017
(Forecast)

Shareholders’ equity

16

2016

Equity ratio

¥65

¥44
2016

2017
(Forecast)

EPS
（予想）

Dividend payout ratio

¥172

¥181

¥215

26%

33%

30%

Yamaha Motor Co., Ltd. ⎜ Annual Report 201617

I hope to deliver new, uniquely
Yamaha products to people allover the world and share avariety of exceptional value

Q6

What are your thoughts regarding corporate governance and CSR?

and experiences that enrich

We will fulfill our responsibilities to shareholders, investors, and all stakeholders.

the lives of everyone.

To ensure the steady implementation of our growth strategies for the future, Yamaha Motor’s Board of Directors strives to create anenvironment that supports management’s appropriate risk-taking and resolute decision-making. At the same time, the Board strives tomultilaterally understand and appropriately oversee issues and risks associated with the implementation of management strategies
from the viewpoint of fulfilling responsibilities to various stakeholders including shareholders and investors.
In addition, we strive to contribute to the sustainable development of society through our business activities based on our
corporate philosophy and to always abide by the letter and spirit of domestic and international laws and regulations. We are dedicatedto earning the trust of the global community, and we place great value on communication with all stakeholders.

Q7

Do you have a message for our stakeholders?
I hope to share exceptional value and experiences that enrich the lives ofall stakeholders.
Yamaha Motor strives to create diverse value through Monozukuri,* with the goal of being a Kando Creating Company that offers new
excitement and a more fulfilling life for people all over the world. Every employee of the Yamaha Motor Group is embracing a spirit ofchallenge in order to achieve the targets set in the Medium-Term Management Plan and for the Group to be a unique company that
continues to achieve dynamic milestones. In the spirit of our “Revs your Heart” brand slogan, I hope to share exceptional value andexperiences that enrich the lives of all stakeholders. I ask for your continued support.
*An approach to engineering, manufacturing and marketing products that emphasizes craftsmanship and excellence

18

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201619

SPECIAL FEATURE 1

Challenge and Dedication for Prosperity

Businesses creatingsocial value in Africa
Africa’s population is expected to grow sharply, from thecurrent 1.2 billion people to 2.3 billion in 2050. Yamaha
Motor first entered Africa in the 1970s, and along withcultivating markets for our products and services, ourbusinesses have sought to contribute to the developmentof the countries in which they operate by developing“businesses that create social value.” Today, throughpartnering with dealerships, we sell and service products,
including motorcycles, outboard motors, boats, generators,
and small-scale water purification systems, in 52 countries
throughout the continent.

Pursuing the unique style of Yamaha when cultivating markets in Africa

Participation in the Sixth Tokyo International
Conference on African Development

Yamaha Motor has built strong relationships of trust by always

Japan to train local maintenance staff. The service staff also teaches

developing businesses that are closely tied to local communities andservice technologies to the mechanics at the dealerships in each

Yamaha Motor participated in the Sixth Tokyo International Conference

Yamaha Motor also featured a booth at the Japan Fair, held incustomers. This is also the case for our development of “businesses thatcountry. In addition, we have established a supply network for partson African Development (TICAD VI)*, held in Nairobi, Kenya, on August

conjunction with TICAD and hosted by the Ministry of Economy, Tradecreate social value” in Africa. The fishery projects in which we haverequired for after-sale maintenance, which enables us to provide

27–28, 2016.

and Industry and the Japan External Trade Organization (JETRO). The

been involved since the 1970s have promoted the dissemination ofservices to customers quickly. These efforts not only help us gain the

Yamaha Motor President Hiroyuki Yanagi attended a session on

Japanese-style fishery in Africa, and led to the development of local

trust of customers, but they also create local employment. As people’s

the sub-theme “Promoting Structural Economic Transformation throughsupply, infectious disease prevention, medical treatment, etc.),” andfishery industries.

lives change and areas develop, motorcycles, marine products and other

Economic Diversification and Industrialization,” and gave a speech on

showcased the Yamaha Clean Water Supply System (small-scale water

Yamaha products will enrich people’s lives even further. In this way,

how Yamaha’s efforts since the 1970s to develop Africa’s fisherypurification system) and the use of motorcycles in transporting vaccines,“businesses that create social value” are sowing seeds for the future.

industry have contributed to diversification through sales of outboard

as a PR activity for interested parties from various countries in Africa.

motors, the dissemination of maintenance technologies, and human*The Tokyo International Conference on African Development (TICAD), held since 1993, is aninternational forum on themes related to development in Africa and is hosted by theGovernment of Japan together with the United Nations, the United Nations Development
Programme (UNDP), the African Union Commission (AUC), and the World Bank.

For Yamaha products such as outboard motors, boats, andmotorcycles, maintenance is essential if the products are to be usedsafely and for a long time. This is why we dispatch service staff fromresources development.

20

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016booth was an exhibit on “Improvement of health issues (sanitation, water

Yamaha Motor Co., Ltd. ⎜ Annual Report 201621

SPECIAL FEATURE 1

Outboard motor business through support of fishery industry

Contributing to public demand in the
motorcycle business

Africa’s fishery industry has been relying primarily on the use of wooden

shipping boats from Japan, we have set up factories and transferredrowboats. Yamaha Motor contributed to the modernization of thetechnology in six countries so that FRP boats can be manufactured

In Africa, many motorcycles are used as taxis and for other commercial

industry by introducing Japanese fishing methods in fishing villages

locally, and currently a total of approximately 80 boats are beinguses. Yamaha Motor is actively promoting its brand by supplying

while also promoting the use of outboard motors. Along with contributing

manufactured annually in Mauritania, Kenya, and Mozambique. Going

motorcycles and providing maintenance services to areas withto the development of the fishery industry, Yamaha is promoting a shift

forward, we will continue our proactive transfers of technology, and bytremendous public interest including police motorcycles and NGO

from wooden boats to FRP boats, in which Yamaha has significant

promoting safe boating and developing human resources for thevehicles that deliver medicines. This has led to strong recognition of theexpertise. Compared with wooden boats, FRP boats offer exceptional

manufacturing of high-quality boats, we will contribute to the cultivation

reliability and durability that are representative of the Yamaha brand. We

durability, safety, and economy, while also helping to reduce theof engineers and social development.

are also holding Yamaha Riding Academy (YRA) courses to educate

A motorcycle taxi in Uganda

drivers and promote safe driving, and are training YRA instructors andenvironmental issue of deforestation. Because of the cost involved inproviding technical support to motorcycle mechanics. We also set up a

From rowboats to motorized boats
Motorized boats enable fishermen to make more trips and increase their catches.

joint venture in 2015 with the French trading company CFAO, and thisventure has begun assembling motorcycles in Nigeria. In addition tocontributing to the creation of a prosperous society, we are working toincrease the value of the Yamaha brand and bring the world of “creating

NGO vehicles

enjoyment in personal mobility” to Africa.

Photos: Riders for Health supported by Two Wheels for Life

Improving living conditions through Clean Water Supply System

Using wooden rowboats

Introducing outboard motors(through grant assistance for marine products)

From wooden boats to FRP boats
FRP boats provide greater durability, reduce the cost of rebuilding boats, and contribute to reductions in deforestation.

According to the WHO/UNICEF data for 2015, more than 650 million

operating costs. The use of clean water for drinking and cooking

people around the world do not have access to safe drinking water.

reduces diseases such as diarrhea and skin ailments, and leads to

Yamaha Motor is addressing this issue by promoting the use of ourgreater awareness of hygiene among mothers, thereby reducing infant

Yamaha Clean Water Supply System (YCW), a small-scale watermortality rates. Children are also freed from the arduous task of drawing

purification system, and we have installed seven systems in Africa towater, giving them more time to attend school. (Please refer to thedate. YCW is a slow sand filtration system using natural purification that

related content on page 43.)features a simple structure, ease of maintenance, and almost zeroInstallations
Installations with monitors
Installations planned for 2017

Using wooden boats

22

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Introducing FRP boats(through grant assistance for marine products)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201623

SPECIAL FEATURE 2

Expanding the Solutions BusinessSpread of industrial-use
unmanned helicopters has
unlimited possibilities
In 1987, Yamaha Motor successfully introduced its industrial-use unmanned helicopters. Today,

Using industrial-use unmanned helicopters to support Japan’s farmers
With the aging population and labor shortage in Japan’s agricultural

integrated rice cultivation systems that use industrial-use unmanned

industry, Yamaha’s industrial-use unmanned helicopters have become

helicopters for a variety of tasks including planting, fertilizing, andan indispensable solution for rice cultivation. Depending on the type ofspraying, for significant increases in productivity and cost reductions.

field, one helicopter can spread pesticide over one hectare of rice

In addition to product development, we are also focusing on

paddies in approximately five minutes. This has led to a significant

building pilot training systems and maintenance structures to ensure

reduction in labor compared with the 60 minutes required for thethat these products can be operated safely, with no problems orsame task using a tractor and 160 minutes required using a motorized

accidents. By way of a business model that combines both tangible andhand sprayer. Another reason for their growing popularity is that they

intangible components, industrial-use unmanned helicopters are now

spread less pesticide on areas around the field.

used in roughly 42.5% of the rice fields that provide Japan’s main food.

To raise agricultural productivity even further, we are creating

their uses include pest control for agricultural products, monitoring and observation of disasterareas, and scientific investigation. In 2016, we also developed an unmanned compact electric
survey craft, expanding our fields of activity to the air, water, and land.

Expanding the fields of use, and technological applications for industrial-use
unmanned helicopters
Uses for industrial-use unmanned helicopters are not limited to rice

The overseas business is growing as well with the start ofcultivation. Through tie-ups with national and prefectural governmentscommercial spraying at vineyards in California in 2017. We also haveand agricultural cooperatives and other organizations, their use isbusinesses in South Korea and Australia, and are considering businessexpanding to the cultivation of major grains such as wheat and soy, as

expansion for various uses in New Zealand, Thailand, and in Europe.

well as vegetables and citrus fruits.
They also have numerous uses outside of agriculture. Fitted with

In addition, we recently began applying the technologies for ourindustrial-use unmanned helicopters developed over the more than 30

automated driving systems, cameras, and monitors, industrial-use

years, to uses on water. The BREEZE10, an autonomous unmanned

unmanned helicopters are being increasingly used in areas wherecompact electric survey craft that we developed in 2016, is being usedpeople are prohibited from entering such as those near volcanic activity,

to assist with the measurement of sedimentation in dams, helping tothose that have been damaged by earthquakes or typhoons, and thoseextend their operating life. We will continue to explore ways to support

that are contaminated by radiation. Our latest model, the FAZER R G2,

operations in areas

can carry up to 35kg and fly as far as 90km at heights of up to 2,800m

including monitoring and(when used with a telecommunications satellite), and with diverse

security going forward.

applications including photography, investigation and monitoring as wellas the transport, unloading and collection of packages, its areas of use
continue to expand.

24

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201625

Overview of Operations

Creating unique, new products throughYamaha Monozukuri

Motorcycles
Net sales and operating income(Billion ¥)(Billion ¥)

1,200

60
1,020.0

48.0

900

45

600

30

300

15

0

0
2013

2014

2015

2016

2017
(Forecast)

Net sales

Operating environment and areas of focus under the Medium-Term Management Plan

Operating income

Appraisal of 2016 results

Katsuaki Watanabe
Director and Managing
Executive Officer
Chief General Manager
of Motorcycle Business
Operations

For long-term growth

The motorcycle business’s geographic focus is on the ASEAN, India,

needs. In terms of cost reductions, in addition to savings by promoting

In 2016, unit sales rose in markets including India, Vietnam, and theDuring 2017, we will proactively work to increase sales in the growing

Brazil/China, and developed markets. The economic situation andplatform models, we are pursuing to reduce costs even further in thePhilippines, were flat in developed markets, and declined in Indonesia,

Indian market and to increase profitability in the ASEAN market evenmotorcycle demand in each of these markets are changing rapidly,

areas of procurement, manufacturing, and logistics.

China, and Brazil. Net sales declined ¥102.4 billion (9.9%) from thefurther. In the developed markets of Europe, North America, and Japan,

previous year, to ¥930.1 billion, as a result of the impact of the exchange

we will introduce attractive products and promote the strength of the2017 Forecast

rate. Although operating income grew in emerging markets due to

Yamaha brand, while maintaining stable profitability.

Net sales¥930.1 billion ¥1,020.0 billion

increased sales of higher-priced products and cost reductions, theWe have always offered unique, new products that incorporate

Operating income¥36.0 billion

impact of the exchange rate in developed markets resulted in an overall

Yamaha’s distinctive originality, technology, and design. Going forward,

decline in operating income, by ¥3.2 billion (8.1%), to ¥36.0 billion.

we will build on this by pursuing innovation through the development

and we seek to be the first to recognize these market changes by
2016 Result

responding quickly and developing products that address them.
Under the Medium-Term Management Plan, we are pursuing highly
efficient product development and cost reductions, as we work to create¥48.0 billion

a business structure that maintains stable earnings. In terms of productdevelopment, we are developing platform models that consolidate theof new foundational technologies in areas including robotics and thenumber of engines and bodies while, at the same time, expanding the“Internet of Things,” for even greater long-term growth.

model lineup with unique, new products that are “fast,” “reasonably
priced,” and “stylish” in order to meet customers’ increasingly diverse

FY2016 worldwide demand

FY2016 Yamaha Motor unit sales

Note: Yamaha Motor surveys

Others 7,550 (14.6%)

26

Japan 373 (0.7%)
North America 547 (1.1%)
Europe 1,576 (3.0%)

Rest-of-world 452 (8.8%)

Japan 110 (2.1%)
North America 77 (1.5%)
Europe 208 (4.0%)

51,774

5,154

Unit: thousands(%): share ofdemandUnit: thousands(%): share ofdemandYamaha Motor Co., Ltd. ⎜ Annual Report 2016

Asia* 41,728 (80.6%)

Asia* 4,307 (83.6%)*Asia excludes Japan*Asia excludes Japan

Yamaha Motor Co., Ltd. ⎜ Annual Report 201627

Overview of Operations

Aiming to become the No. 1 global brand by spreading

Marine Products

marine leisure culture
ture across the world
Net sales and operating income(Billion ¥)(Billion ¥)

400

100
300.0

300

75

57.0
200

50

100

25

0

0
2013

2014

2015

2016

2017
(Forecast)

Net sales

Operating environment and areas of focus under the Medium-Term Management Plan

Operating income

Appraisal of 2016 results

Takaaki Kimura
Executive Vice President
and Representative Director
Chief General Manager
of Marine Business
Operations

For long-term growth

In addition to a growing trend of wanting to enjoy marine leisure in

peripheral equipment. This will enable us to establish our position as the

In 2016, unit sales of outboard motors increased, led by large models in

As demand for outboard motors continues to shift toward larger

North America, our biggest market, demand for large outboard motors is

No. 1 global brand that gains the trust of professionals, that is highly

North America and Europe. As we look to the future, we will also build amodels, during 2017 we will pursue our system supplier strategy,

increasing, and Yamaha’s outboard motors, with their advanced productvalued by upper- and mid-tier customers, and that is admired by first-timebusiness model that is aimed at being a system supplier. The businessstrengthen our product competitiveness, and increase our cost

technology, are gaining an overwhelming level of trust. This trend cancustomers. To achieve this, we will strengthen our capabilities in threeoverall recorded declines in sales and profit due to the impact of thecompetitiveness, with the aim of becoming an even more profitablealso be seen in Europe, and is benefitting Yamaha’s lineup of outboard

areas: our overall business strength that offers outboard motors as wellexchange rate, but maintained high profitability with an operating

business. We will also fortify our business foundation by cultivating

motors, which includes models of up to 350 horsepower. For this toas peripheral equipment; our reliability not only for our products andincome margin of 19%. Net sales declined ¥12.1 billion (3.9%) from theprofessional human resources who understand the unique features oflead to further growth, we are bolstering our brand strength in thesystems, but also as a business partner; and our network strength that,

previous year, to ¥297.2 billion, and operating income was down ¥8.6

respective local markets.

global market by enhancing our overall business strength, reliability, andon a global basis, provides services which are closely linked tobillion (13.4%), at ¥55.4 billion.

network strength.

individual markets.

Our goal beyond being a system supplier is to provide a richer
marine life to people around the world. By creating a solid No. 1 brandas a system supplier that addresses all segments of marine life, we will

The marine products business is well on its way to competing inthe 3-trillion-yen global marine market. During the three-year period

2016 Result2017 Forecast

covered by the Medium-Term Management Plan, we will move beyond

Net sales¥297.2 billion¥300.0 billion

being an engine supplier that offers highly reliable, lightweight, andOperating income¥55.4 billion¥57.0 billion

provide comprehensive marine life value to everyone who comes into
contact with Yamaha.

fuel-efficient engines, to enhancing our potential as a system supplierthat offers a broad range of value with packages that include hulls and
FY2016 worldwide demand and Yamaha Motor unit sales ofoutboard motors
Note: Yamaha Motor surveys

717
Unit: thousands(%): share ofdemand28

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha292 (40.8%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201629

Overview of Operations

Aiming to expand our uniquelyPower Products andOther Products

Yamahaha robotics businessNet sales and operating income(Billion ¥)(Billion ¥)

400

40
280.0

300

200

15.0

100

30

20

10

0

0
2013

2014

2015

2016

2017
(Forecast)

Operating environment and areas of focus under the Medium-Term Management Plan

Net sales (Power Products)

Net sales (Other Products)

Operating income (Power Products)

Operating income (Other Products)

Toshizumi Kato
Director and Managing
Executive Officer
Chief General Manager of
Vehicle & Solution Business
Operations

Appraisal of 2016 results
The power products and other businesses progressed toward their goalusing industrial-use unmanned helicopters, and self-driving testing forof creating a unique business model. Net sales declined ¥13.8 billion

golf cars. In addition, we will lay the path for future growth by(4.8%) from the previous year, to ¥275.5 billion, and operating income

accelerating our development of motor and battery technologies, ourdecreased ¥10.0 billion (36.6%), to ¥17.2 billion. Both net sales anddevelopment of software, applications, and business models forwork to trim inventories of existing models and shift to new platformthe operating income margin rose in the IM and PAS businesses, but

automated controls, collaboration with outside parties, and our efforts tomodels, with the aim of restoring to normal operations from 2018. In

higher expenses as a result of production adjustments in the ROV

identify, retain, and cultivate top-tier engineers.

the IM business, our aim is to strengthen our profit structure evenbusiness, and the impact of the exchange rate led to a decline in sales

further on the back of increasing sales of high-value-added products

and profit in the business as a whole.

The ROV market is expanding beyond its commercial uses of agriculture
and dairy farming to encompass a wide range of applications andterrains, including leisure use in mountain forests, deserts, and rugged
mountains. In 2017, we are forecasting a decline in retail sales as we2016 Result2017 Forecast

Net sales¥275.5 billion¥280.0 billion

Operating income¥17.2 billion¥15.0 billion

including high-speed, multi-function surface mounters and integrated
control robot systems. The PAS business will work to broaden its

For long-term growthcustomer base globally through increased exports of E-kits (drive units
The power products and other businesses are developing uniquely

for electrically power assisted bicycles) to Europe.
Surface mounters

Yamaha robotics businesses that operate on land, in the sea, and in the
air. The robotics industry is expected to grow significantly. Currently, theFY2016 North American demand and Yamaha Motor unit sales of ROVs

majority of the industry operates in the factory automation sector, but

Note: Yamaha Motor surveys

going forward, growth is expected in outdoor sectors such as unmanned
Yamaha 20（6.8%）

Industrial-use unmanned helicopter

operations in agriculture and other industries and self-driving vehicles,
as well as in indoor sectors such as nursing care and home automation.
Yamaha Motor’s strengths lie in its modes of mobility, including

295

industrial-use unmanned helicopters, recreational vehicles, and golf

Unit: thousands(%): share ofdemandcars, and we believe that we can become a pioneer in terms of robotics
in these areas.
During 2017, we will work to grow our surface mounters for the
existing factory automation field, while also stepping up our efforts inPAS30

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

areas including the crop dusting business for vineyards in California

Golf car

Yamaha Motor Co., Ltd. ⎜ Annual Report 201631

CSR SECTION

Basic Policies of CSR
Corporate Philosophy

Stakeholders
Customers

Customers

34

Employees

36

Shareholders and Investors

38

Business Partners

39

The Community

40

The Environment

42

Communication

Shareholders
and Investors
Employees
Business
Partners
The Community

Basic Policies
of Internal
Control

Business Activity

Basic Policies
of CSRThe Environment

The Yamaha Motor Group strives to contribute to the sustainable development of society through our business activities based on
our corporate philosophy and to always abide by the letter and spirit of domestic and international laws and regulations. We arededicated to earning the trust of the global community, and we place great value on communicating with all stakeholders.
We expect all of our business partners to share our principles and to act in accordance.
Customers

Business Partners• We offer new excitement and a more fulfilling life for people all over theworld through high-quality products and services that combine safety andinnovation.
• We provide practical, helpful information about products and services tocustomers.
• We make every effort to protect the personal information of ourcustomers and others involved in our business.

• We respect our suppliers, dealers, and other business partners and aim tobuild mutual long-term growth founded on mutual trust.
• We maintain an open door to new business partners around the world
and choose companies based on comprehensive value, regardless ofnationality or size.
• We respect the competition laws of each nation and region and maintain
fair business practices.

Shareholders and Investors

The Community• We aim to deliver stable, long-term growth to enhance corporate value.
• We disclose appropriate corporate operational results and financial status
in a timely manner.

• We honor the culture and customs of every country and community, andwe strive as a corporate citizen to act in balance with society.
• We work to contribute to the development of sound communities by
providing means of mobility, creating employment opportunities, andfulfilling our tax obligations.
• We promote social action programs including personal mental andphysical development, environmental preservation and safety activities, aswell as supporting private initiatives undertaken by employees.
• We maintain honest and fair relationships with government agencies andpublic authorities.

Employees• We provide equal employment opportunities to build a diverse anddiscrimination-free workforce.
• We provide fair working conditions while maintaining and improving asafe and healthy working environment.
• We maintain respect for human rights and never tolerate child labor orforced labor in any form.
• We work toward building success for both our employees and theCompany through honest communication and dialogue founded on
mutual trust.

The Environment• We develop environmental technologies to create products that balance
economic needs with environmental well-being.
• We aim to minimize the environmental impacts of our operations andmake efficient use of limited natural resources.
• We form wide-ranging partnerships with communities around the world toperform environmental conservation activities.

*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.

32

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201633

Customers

Aiming to be an engineering, manufacturing and marketing enterprise that gives
customers a sense of Kando*

further improve quality by working to: 1) enhance our customer sense;

enhance this product quality by taking a customer-oriented approach. To do this, all divisions are striving to raise the qualityof the work they perform.
The Yamaha Motor Group will continue to undertake activities that provide a sense of excitement to customers. We will
strive to achieve the best quality possible and realize safety and reliability, based on a customer-oriented approach that

In addition, in order to enhance the skills of active motorcycle2) increase interaction; 3) learn from mistakes (see TOPICS); and
4) do high-quality work.

The Yamaha Motor Group’s product quality and Monozukuri (engineering, manufacturing and marketing) are based on
maintaining ongoing, close relationships with our customers. Going forward, we believe we must continue to strive todevelop and improve our products and enhance our services.
service technicians throughout the world and to further increasecustomer satisfaction, we hold the “YAMAHA World Technician GP”

Customer Service

once every two years. Elite technicians, comprising winners from eachregion’s preliminary competitions, are brought together in Japan for a

The Yamaha Motor Group views opinions and requests from customers

contest to determine the world’s top technician.

as expressions of their expectations for our products and services, so

Riding Safety Promotion Activities

we carefully respond to each opinion and request we receive, in the
belief that raising the level of customer satisfaction will lead to trust.

emphasizes a deep sense of emotion in accordance with the spirit of the Yamaha Brand Charter.

We are continuously working to strengthen our services to learn how

Customer safety is our first priority, and in addition to enhancing product*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.

customers view and use our products, so that we can use this insight toquality, we continue to put our maximum effort into activities which explain

improve product quality and create new products for the future.

to customers in an appropriate manner how to use our products correctly.

Offering New Excitement

Some of the products and technologies that provide a new sense of

These efforts include the publication of catalogs and brochures that

Our Customer Communication Center handles customer inquiries
related to our products and services, including motorcycles, marine

convey the attractiveness of our products and product manuals that

Yamaha Motor aims to be a “Kando Creating Company” through products

products, electrically power assisted bicycles, generators, and snow

explain correct product use, as well as safety promotion activities suchand services that are in harmony with society and the environment, andthrowers. Comments received from customers are stored in a database,as riding schools that allow customers to gain first-hand knowledge

and are made available within the Company so that they can be used toabout using our products.

excitement are introduced on our corporate website.

Working to Improve Qualitythat provide customers around the world with joy and unexpectedexhilaration of the kind that enriches their lives with new fulfillment.
To achieve this, we want to continue to be an excellent engineering,

The Yamaha Motor Group places its highest priority on customer safety.
In addition to enhancing product quality, we continue to put our

TOPICS

Exhibition of failure case studies

manufacturing and marketing enterprise with a prominent presence inmaximum effort into activities that provide customers with appropriate

the global market. Product creation is a process that begins with

explanations on how to use our products properly, to ensure that

Our engineering, manufacturing and marketing has grown thanks to our predecessors,customers. Our mission is to create products that are attractive, reliable,

customers do not suffer any injury or accidents.

who embraced challenges without the fear of failure. However, quality defects cause greatand cost competitive, to maximize and optimize the value we provide
our customers in ways that exceed their expectations.
Reliable Monozukuri that makes dreams come true
https://global.yamaha-motor.com/about/brand/

Specifically, since 2015 we have been implementing the “I aminconvenience to our customers and lower the value of our brand.

Yamaha” activities, in which each employee plays a leading role, withSince 2016, Yamaha Motor has been holding an exhibition of failure case studies as

the aim of having their customers say, “I’ll purchase a Yamaha again,”

one of the “I am Yamaha” activities launched in 2015. This is an initiative to enhance ouror “My next purchase will be a Yamaha.” These activities encourage aability to predict and prevent failure by seeking the true causes of mistakes, and conveying

strong sense of ownership in every employee, so that each individualthat knowledge and experience by means of panel presentations, exhibits of actual objects,

believes, “It is I, and no one else, who is personally responsible forand explanations by the persons in charge of cases involving quality defects.

making the Yamaha brand shine.” This attitude, along with acustomer-oriented approach, allows employees to refine their powers of

By continuing to implement this initiative, Yamaha Motor will cultivate people and a corporate culture that allows us to learn from thefailures that inconvenience our customers and to use those lessons to nourish growth and success.

perception (ability to make discoveries) and to enhance the quality of
their work. Both as an organization and as individuals, we will strive to34

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201635

Employees
participants from both the labor union and the Company, meets every
month to confirm the present state of working hours.
Regarding the use of paid leave, we make efforts to encourage our
employees to take time away from work by setting targets for both
employees and management, and sending special notices to thoseeligible for five consecutive days of paid leave.

Employee HealthYamaha Motor engages in a wide range of initiatives to help employees
maintain and improve their health.
In addition to health checks, including X-ray and blood tests inaccordance with laws and regulations, we offer ongoing health guidance
to employees who are at risk for lifestyle-related diseases, and incentives

Workplace Safety and Health

Global perspective and respect for diversity

employees’ family members, we provide subsidies through our health

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

Under the leadership of the Central Safety and Health Committee, withinsurance association for those receiving regular health checks, cancer

authority delegated by the President and Chief Executive Officer, Yamaha

screening, complete physical examinations, and other services.

Motor is promoting the establishment of a safe and healthy working
environment around the world.

For employees scheduled to be stationed overseas, we hold training
prior to posting on infectious diseases such as viral hepatitis and general

For example, we strive to prevent occupational accidents byhealth management, and provide education on preventing infection andfrom the 2014 level by 2020, and tripling the 2014 level by 2025.

performing risk assessment in accordance with the Occupational Safety

prophylactic medications for employees who are travelling, including on

Furthermore, we are striving to further diversify our workforce by hiringand Health Management System (OSHMS), to detect potential dangers

business trips, to areas where there is a risk of contracting endemic

non-Japanese managers at headquarters, promoting employment ofand harmful conditions in the workplace. In addition, we are focused on

diseases such as malaria. In addition, the occupational health physician

need to step up our efforts in areas such as human resources development.

non-Japanese personnel, and expanding on alternative work styles.

developing human resources that can support workplace safety and ain charge conducts regular tours of the overseas posting areas, andIn terms of human resources development in particular, each year we

For people with disabilities, in October 2015 we establishedhealthy occupational environment through job-specific education andmonitors the health levels and living environments of employees stationed

are enhancing our human resources development programs, which are

Yamaha Motor MIRAI Co., Ltd., to provide a place where they can

training to improve the skills of safety managers, supervisors, andabroad. Furthermore, to handle unexpected circumstances such as

aimed at various groups of employees.

participate actively in accordance with their capabilities, and to promote

operations chiefs, and by holding occupational safety and health meetings.

sudden illness, we have contracts with private medical service operators

their social independence. The company began its full-scale operations

Starting in 2008, our headquarters introduced a system for

who provide both consultations and emergency transportation services.

inspecting Yamaha’s main manufacturing centers to determine whether

Moreover, in order to promote health through recreation, we

Nurturing Personnel
As our business becomes increasingly global in scale, we believe weWorkplaces Thriving on Diversity

in 2016.

Based on our fundamental belief that “all corporate activity originates

Supporting Work-Life Balance

first of all with and for people,” the Yamaha Motor Group has clearly
defined its stance on human rights in the Basic Policies on CSR and the

The Yamaha Motor Group defines its relationship with employees as a

Code of Ethics. Moreover, to maintain continuous growth, we believe it isbusiness partnership, and the Company’s role as providing an attractive

important that our workforce incorporates diverse viewpoints and values,

workplace for autonomous individuals. We aim to create workplaces thatreflecting different experiences, skills, and attributes.

maintain a positive work-life balance by supporting career advancement

We have therefore established a Global Human Resources
Development Division at our headquarters to develop and implement

plans based on mutual assumptions.
We are enhancing our systems so that employees can work in ways

common management development programs around the world, andthat suit their individual circumstances, by providing childcare leave,

introduced global human resources systems to train and hire talented

nursing care leave, and family illness leave, as well as systems such asstaff. We are also working to build an organization that utilizes global

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

experience and knowledge. We will recruit superior management

who resigned to accompany their spouse on overseas postings.

personnel regardless of their nationality or place of birth, and aim toWith the aim of reducing overtime, and in consideration ofhave local managers fill 60% of management positions at overseas

maintaining mental and physical health, we established the Rules

subsidiaries by 2018.

Regarding Overtime Work, which are stricter than the legal requirements,

In addition, to promote the participation of women, we have set out
and are pursuing a goal of doubling the number of female managers

36

to encourage employees to quit smoking, among other programs. For

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

they are meeting OSHMS levels, with group certification granted toorganize events such as the “Walk, Walk Campaign,” led by the Healthcenters that have achieved the required level, and follow-ups conducted

Promotion Center.

on a regular basis.

TOPICS

Start of coaching program

Yamaha Motor conducts an annual Employee Awareness Survey as a means of identifying organizational and management issues throughcomments from its employees. The survey is intended to provide an understanding of employee perspectives on various topics, including
management, the workplace, jobs, supervisors, and the human resources system, and to identify issues that will lead to future improvements
and measures.
Based on the 2015 survey, we judged that managers with the role of mediating information flow were not adequately fulfilling theirfunction as the “organization’s middle management,” and therefore decided to introduce and deploy the coaching program. We conducteda trial in 2016, and are working on full-fledged implementation by expanding the program to more workplaces in 2017.
Yamaha Motor will continue striving to create an even more open workplace through high-quality communication so that the entire
organization, from the front lines to management, is united in the pursuit of its business activities.

based on labor-management consultations. In addition, theLabor-Management Committee on Working Hours, comprising

Yamaha Motor Co., Ltd. ⎜ Annual Report 201637

Shareholders
and Investors

Business
Partners

In order to ensure accountability by providing shareholders and investors

investors with a first-hand look at our business, which has a relatively

with appropriate, accurate and timely information, Yamaha Motor haslarge number of niche products in a wide range of categories.

established a specialized division which engages in IR activities inside
as well as outside Japan.

not just as conducting procurement, but as procurement thatearnings briefings, the division holds IR meetings with investors fromemphasizes the incorporation of both cost and quality into its

within and outside of Japan, and organizes business briefings.

engineering, manufacturing and marketing.

Furthermore, the division discloses IR information on the Company’s

An example of these activities is the implementation of “theoretical-

website, operates a website to provide information to individual

value-based production” with suppliers. This does not simply mean

investors, and makes videos of earnings briefings and briefings fordisseminate information so that even more shareholders and investors
have a better understanding of Yamaha Motor’s business strategies.
Since 2017, a manager in charge of IR has been stationed in Tokyo
to handle communications with analysts and investors even moreproactively than in the past.
New Medium-Term Management Plan (2016–2018)https://global.yamaha-motor.com/ir/management/mtp/
PDF presentation of new Medium-Term Management Plan
https://global.yamaha-motor.com/ir/report/pdf/mmp/2016medium-plan-e.pdf
Video presentation of new Medium-Term Management Plan
https://www.youtube.com/watch?v=phfFnf-0yC0&feature=youtu.be

demanding cost reductions, but instead involves analyzing the absolute

Briefings for Individual Investors in Japan
Yamaha Motor, whose main business is B2C, also makes efforts to holdbriefings for individual investors. In 2016, we held 23 briefings in 15
major cities in Japan, with approximately 4,000 participants.
As a result of these
activities, the number ofindividual shareholders has
been increasing steadily. We
plan to further strengthen suchinitiatives in the future.

The proportion of overseas shareholders at Yamaha Motor isapproximately 30%. We visit local offices and hold IR meetings toprovide overseas investors with an accurate understanding of ourmanagement and business situation. Moreover, our efforts are notlimited to meetings; we also offer activities such as tours of factories inJapan and overseas as well as test rides of products, to provide

38

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

value of production activities together with suppliers, and then working
to find more ways to improve cost competitiveness. In order to promotethese activities, Yamaha Motor has trained some employees to serve as“theoretical-value instructors” at suppliers.

Fair and Clean Procurement Activities
In the Basic Purchasing Policies, Yamaha Motor states its commitment
to “conduct fair trading, based on trust and cooperation, and to constantly
strive to build better relationships with suppliers through activities toimprove quality, price, delivery times, and other factors,” and sets out
policies including “fair and impartial trading,” “compliance andInformation for shareholders and investors is
Visits to Overseas Investors

Manufacturing and Marketing”
The Yamaha Motor Group regards its relationship with the supply chain

In addition to the annual shareholders’ meeting and quarterly

individual investors publicly available, in an effort to proactively

Working Together on “Procurement for Engineering,available on the websites below:
Disclosure policy
https://global.yamaha-motor.com/ir/policy/
Dividend policy
https://global.yamaha-motor.com/ir/shareholder/dividend/
For investors (index page)https://global.yamaha-motor.com/ir/

confidentiality,” and “emphasis on the global environment.”

resources and energy, through our Green Procurement Guidelines.
In addition to raising awareness of these efforts among employees
and suppliers during the course of regular operations, Yamaha Motor
strives to ensure their thorough implementation through the Global
Suppliers Conference, which gathers together suppliers from around theworld once a year, in addition to a range of workshops held on various
occasions.

Activities at Dealerships
As our contact point with customers around the world, dealerships
play an important role in conveying Yamaha’s “next Kando.” Bystrengthening relationships with dealers through regularly held dealer
meetings and activities to promote safe driving and support local
communities, the Yamaha Motor Group is building a sales networkthat provides common value.
In Japan, dealers mainly in Yamaha Sports Plaza (YSP), an official
Yamaha sports bike dealer system, and Yamaha Motorcycle Sales Japan
Co., Ltd., play an important role in building ties with local communities
and society by cooperating in a range of measures including motorcycle
infrastructure development, motorcycle etiquette training, motorcycle
recycling, tree planting, and other environmental campaigns, as well as
fundraising for seeing-eye dog training.

We also promote CSR efforts throughout the supply chain based on
the CSR Guidelines for Suppliers, in which our policies on safety andquality, human rights and the working environment, consideration for theenvironment, risk management practices, and strict compliance arecommunicated to suppliers.
Furthermore, we are pursuing activities to address environmental
issues together with our suppliers, such as management and reductionof environmentally hazardous substances and the efficient use of

Yamaha Motor Co., Ltd. ⎜ Annual Report 201639

Environmental Conservation

The
Community

Beach Cleanup Campaign
The Yamaha Motor Group continuously engages in various environmental

and the importance of hazard anticipation. Over 180 university students
participated in this program.
*1 YMTR: YAMAHA MOTOR SANAYI VE TICARET LTD.SIRKETI*2 YSRS: YAMAHA SAFE RIDING SCIENCE

conservation activities required by local communities, including beachFind out about our other activities at:cleanup activities that aim to support the preservation and sustainable use

https://global.yamaha-motor.com/about/csr/communities/activities/

of beach environments, which promote coastal fishing and marine sports.

safe-driving-diffusion/

In June 2016, 178 volunteers participated in the cleanup of acommemorative park organized by three Group companies in Thailand.
At beaches near our headquarters, we held our baby turtle observation
tour and sustainable beach cleanup campaign for the 26th year. Roughly
400 people participated in this joint event with Yamaha Corporation to

Coexistence and mutual prosperity of the Company and local communities

strengthen the bond of our common brand.

Community Issues
Supporting Indian BoP Improvement Projects at UN Agencies
Yamaha Motor concluded a partnership agreement with the United
Nations Volunteers (UNV) programme, the first partnership in Japanbetween a private-sector company and the UNV. Based on thisThe Yamaha Motor Group operates in locations around the world, and our business activities help support those local

agreement and working through the UNV, one employee is dispatched tocommunities. Our products also play a role in enriching the lives of people around the world. We recognize the importance of

the United Nations Development Programme (UNDP) in India for one

maintaining a sustainable relationship through which the Company and local communities can coexist and mutually prosper,year, from August 2016 to July 2017, to support BoP* improvement
projects through the use of renewable energy.

and to achieve this, we place great importance on maintaining and enhancing a relationship of trust through daily

Since the 1960s, Yamaha Motor has been expanding businesses

communication with stakeholders in those communities.

that can contribute to improving the standard of living of people indeveloping countries in Africa and Central and South America. We

Important Areas of Activities Contributing to Society
Global Issues
Key Themes

Developing Future Leaders

Activities• Promoting mental/emotional andphysical health through sports• Promoting creativity throughengineering, manufacturing, andmarketingrecognize that cooperation with the United Nations will become
Local Issues

Environmental Conservation

Improving Traffic Safety

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

Find out about our other activities at:increasingly important for the continuance of business activities thathttps://global.yamaha-motor.com/about/csr/communities/activities/

work toward resolving issues in the international community.

environment/index.html*BoP: Base of the Economic Pyramid

Improving Traffic Safety

Developing Future Leaders

Water Supply System, as well as the institutions to be involved and the

University Students in Turkey Learning About Traffic Safetypeople that would become potential customers. There was a lively

from a Scientific Perspective

Accepting Interns under the ABE Initiative

exchange of opinions regarding the efforts required for expanding

To reduce the number of traffic accidents involving motorcycles, theYamaha Motor accepted university students who came to Japan insales and the methods for enhancing the appeal of the Yamaha brandYamaha Motor Group holds a variety of safe riding programs around

September 2016 as short-term interns under the ABE Initiative.

in Africa.

the world.
In 2016, YMTR*1 in Turkey held its YSRS*2 program, which adopts a

The ABE Initiative is a program that provides young people fromscientific approach to teaching the basics of traffic rules, safe riding,Africa with opportunities to study at universities and graduate schools inJapan, as well as internships at Japanese companies. The program wasFind out about our other activities at:https://global.yamaha-motor.com/about/csr/communities/activities/

announced in 2013 at the Fifth Tokyo International Conference on

local-society-task/

African Development (TICAD V) as a public-private policy to support
economic growth in Africa.
For this internship program, Yamaha Motor accepted five interns
from five African nations, and held a workshop on the theme of “Proposalof business plan for sale of the Yamaha Clean Water Supply System(small-scale water purification system for villages) in your country.”
The interns gave detailed explanations of water issues in their own
countries and the problems they wished to solve with the Yamaha Clean

40

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Find out about our other activities at:https://global.yamaha-motor.com/about/csr/communities/activities/
human-resource/

Yamaha Motor Co., Ltd. ⎜ Annual Report 201641

The Yamaha Motor Group Organizational Structure forEnvironmental Planning and Promotion

Organizational Structure for Promoting
Environmental Management

The
Environment

Board of Directors

The Yamaha Motor Group has established an Environment Committee,
chaired by the Executive Vice President, as the central organization

President

responsible for the Group’s environmental activities in Japan andEnvironment Committee

overseas. The committee deliberates on policies and visions for the
Yamaha Motor Function Section

future concerning environmental initiatives, medium- and long-term
environmental policies, strategic investment proposals relating to

Secretariat for Group EMS

environmental preservation, environmental monitoring topics andSecretariat for Eco-life

responses to issues, and other key issues relating to environmental
Consolidated Subsidiaries

management. The policies and activities discussed are reported to the

Striving to harmonize with the environment for sustainable social development

Board of Directors as necessary.

Based on the Yamaha Motor Group Environmental Plan 2020, formulated in 2010, the Yamaha Motor Group aims to be a

Activities for Identifying and Reducing Both Directcompany that fulfills its corporate social responsibilities by striving to maintain harmony with the environment, which serves

and Indirect Greenhouse Gas Emissions

as the stage for our products.

The Yamaha Motor Group endeavors to identify greenhouse gas

Working group on reduction of CO2
from product logistics

Japan

Companies

Working group on reduction of CO2
from R&D activities

North America

Companies

EuropeCompanies

Oceania

Companies

Asia

Companies

Central & South America

Companies

China

Companies

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

emissions resulting both directly (e.g., from the burning of fuel atPlan for Environmental Activities

factories) and indirectly (e.g., from electricity use at factories andWorking group on waste reduction

offices) from its corporate activities at the locations in which it operates,

Working group on reduction of paintVOCsand to reduce those amounts.

Yamaha Motor Group Environmental Plan 2020

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

Action Areas

Priority Actions

2020 Targets

factory and office.
Central & South America

Eco Products

Raise environmental attractivenessthrough product development fromthe perspectives of the environmentand customers

In the Eco Products area, implement the Frontier 2020 Groupwide long-term vision

Eco Management

Eco Mind

Environmental preservation throughglobal business activities that aim tominimize environmental impact

Environmental management throughreinforcement of Group environmental
governance systems

Environmental contributions throughdiverse initiatives that seek to createa sustainable environment

Central & South America

China

1% 6%

Direct emissions• Reduce risks from environmentally hazardous substances• Implement green procurement

Eco Operations

China

2% 4%

Reduce emissions of greenhouse gases

Identify environmentally hazardous substances andsupport the use of alternatives

Reduce CO2 emissions per unit of sales by 1%(annual average)

147 thousand t-CO

Direct CO2
emissionsIndirect emissions

Amount of CO2
emissions by region2

401 thousand t-CO

34%

Support the effective use and recyclingof limited resources

Create and operate Groupwide environmental
management systems

Link Groupwide operations with local activities

23%(Electricity consumed
on an equivalent basis)

Asia

Amount of CO2
emissions by region46%

2

Oceania

North America
Asia

10%

59%

Europe1%

North America

Oceania9%• Implement the 3 R’s through the 3 E’s• Reduce water consumption(3 E’s: Easy to make, Easy to repair, Easy to disassemble)(3 R’s: Reduce, Reuse, Recycle)

Japan

Indirect CO2
emissions

Japan

0%

Europe1% 4%

TOPICS

Promotion of water purification system in cooperation with local NGOs

Water stress due to climate change has led to greater water pollution, which has led in turn to poor
Change attitudes through continuous
environmental education

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

Be trusted and respected as a corporate citizen
by local communities

Proactively disclose information from anenvironmental perspective

Well received by the community as anenvironmentally advanced company

health conditions and a growing number of sicknesses, thus hindering socio-economic development.
Accordingly, Yamaha Motor has installed its proprietary Clean Water Supply System in regions that lackdrinking water due to the underdevelopment of waterworks. At the same time, we cooperate with local
NGOs to organize water management committees, and provide expert support with regard tocoordinating operation, maintenance, and management.
By the end of 2016, we had set up 22 systems, mainly in African countries and Indonesia. Going forward, we will enhance our support interms of know-how, while increasing the number of established systems, as we continue our efforts to ensure a constant supply of safe waterand a hygienic environment in areas that lack drinking water.

42

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201643

The Environment

Yamaha Motor Group CO2 Emissions

CO2 Emissions at the Yamaha Motor GroupAs a manufacturer of motorcycles and other transportation machinery, theCO2 emissions(1,000t-CO2)

Yamaha Motor Group considers the reduction of greenhouse gas emissions to be

1,000

100%

the most critical environmental issue facing the world today. We are targeting an

100

75%

800

annual 1% reduction in CO2 emissions per unit of sales as a common goal forthe entire Group, and are working to reduce emissions in all of our business

66%

621

600

activities including product development and manufacturing.

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

584

71%

80

548

60

400

40

200

20

a balance between economic and environmental considerations (CO2 reductions).

0

We are also promoting the efficient use of energy by introducing energy-saving
technologies developed in Japan to Group companies at home and overseas.

2012(Base year)

CO2 emissions

ASEAN markets hereafter.
power generation functionality, to deliver quieter startups and reduce power generation loss.
The main features of the GDR155 include:

2014

2015

0

2016

and fuel efficiency;
2) a lightweight 116kg body for sporty handling; and3) a new design that exudes both high maneuverability and a luxurious feel.

The curve shows values based on 100 for 2012 results.

The GDR155 will be manufactured at factories in Vietnam, Thailand,
and Indonesia, and a rich variety of color and graphics tailored to the tastes

t-CO2

of customers in each country will be offered.

Yamaha Motor Group Energy Input
Kerosene
0.0% Light oil 1.3%
Heavy oil A 1.0%
2.3%
LPG 4.8%

Gasoline

Energy Input at the Yamaha Motor GroupWe are systematically implementing various measures to reduce energy

Natural gas

11.1%

consumption, such as the “visualization” of energy to make energy losses visible,
and introducing loss prevention measures and high-efficiency equipment.
Total energy input:

Launched in Vietnam as the NVX and in Thailand as the AEROX in December 2016, the GDR155 will be introduced in Indonesia and other1) a 155cc liquid-cooled BLUE CORE engine providing superior acceleration

all of our manufacturing sites including those overseas, with the aim of achieving

548 thousand

Yamaha Motor developed the GDR155, a new scooter that blends a stylish form with a sporty ride, as a strategic model for ASEAN markets.

The GDR155 is equipped with a BLUE CORE engine, which incorporates Yamaha’s first Smart Motor Generator combining startup and557

Since 2013, we have been implementing global energy-saving activities at

CO2 emissions:

Launch of the ASEAN strategic model GDR155

10.13 million

City gas 13A

5.3%

Electricity
consumed

GJ (electricity: 7.50 million GJ)

74.1%

Strengthening environmental governance through global environmental ISO 14001 unified certification“Eco management” is one of the action areas in Yamaha Motor Group Environmental Plan 2020, and based on this the Group has pursued
global environmental ISO 14001 unified certification, which strengthens the Group’s environmental governance framework and achieves
efficient environmental management operations, at locations in Japan and overseas since 2012.

Measuring and Reducing Water Resources

This program has been expanded to 44 companies, mainly manufacturing companies in Japan, Asia, Europe, the United States, and South

Yamaha Motor Group Water Consumption

We are working to reduce our consumption of water resources, and have set the
support of effective use and recycling of limited resources as our target for 2020.
We will continue to strive to measure our global use of water resources andreduce our water resource consumption through programs including the reuse of

program in 2017, which will complete the global unified certification framework.

(Million m3)

In addition, the Yamaha Motor Group has introduced an in-house environmental

7.5
6.0

6.18 0.10
0.62
0.67

coolant water and water collection (rainwater and other sources) at factories.
Water consumption:

5.47 million

5.60 0.11

5.47 0.08

0.85
0.39

0.49

4.5

2.25

3.0
1.5
0

2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

1.79

management certification system for companies that have a relatively small impact on theenvironment. For overseas Group companies in particular, we have introduced customized
third-party audits, and are seeing the results of these activities in terms of effectiveness andefficiency.
Through these activities, environmental risks and environmental management system
issues at individual Group companies are being shared across the Group, leading to stronger

2.43

1.98
2015

Underground waterIndustrial water
Collected water
Other fresh water*Includes some forecast figures.

44

1.31

2.35
m3

America, and as of the end of 2016, unified certification had been obtained by 41 companies (93%). All target companies plan to join the

1.77
2016

environmental governance. In terms of efficiency, we have achieved significant cost
reductions through the promotion of global unified certification.

ISO 14001 certificate award ceremony for YPMV (Vietnam)
held at Yamaha Motor headquarters

Tap water

Yamaha Motor Co., Ltd. ⎜ Annual Report 201645

GOVERNANCE
INFORMATION
Corporate Governance48

Directors, Audit & Supervisory Board Members,46

and Executive Officers

56

Comments from an Outside Director

59

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201647

Corporate Governance

Basic Corporate Governance Policies

formulate the following corporate governance guidelines and put them1-3. General Meeting of Shareholders

cross-shareholdings, taking into account factors including return andinto practice in an appropriate manner.

Yamaha Motor endeavors to create an environment that enables all

associated risks.

The Company’s Management Principles and Management
Strategies

Corporate Governance Guidelines

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

Chapter 1

shareholders to appropriately exercise their voting rights upon due

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

Ensuring shareholders’ rights and equality, and basic(2) Shareholdings of Yamaha Corporation

Agenda items of the General Meeting of Shareholders that are

Yamaha Motor was established by spinning off the motorcycle division

views on dialogue with shareholders

deemed to require a sufficient period of consideration for shareholders

from Nippon Gakki Co., Ltd. (current Yamaha Corporation). Today, thefor people all over the world. To this end, we provide unique andChapter 2

Appropriate collaboration with various stakeholders

are posted on the websites of the Tokyo Stock Exchange and thetwo companies’ management is conducted separately, with both using

high-quality products and services made available through our technology

Chapter 3

Appropriate information disclosure and ensuring

Company in a prompt manner after they are resolved by the Board of

the same “Yamaha” brand. We are undertaking various measures intransparency

Directors. The notice of convocation for the Ordinary General Meeting ofcollaboration with Yamaha Corporation through the “Joint Brand

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

Chapter 4

Responsibilities of the Board of Directors, etc.

Shareholders is dispatched at least three weeks prior to the meeting

Committee,” and under the “Yamaha Brand Charter” and “Joint Brand

and marketing,” aiming at creating “new, original and innovative ideas

Attachment 1 Standards for selecting independent outside officers

date. The notice of convocation is also posted, along with its English

Regulations.” Both companies appropriately monitor measures forand messages,” “technology that creates joy and trust among

Attachment 2 Policies to promote constructive dialogue withtranslation, on the websites of the Tokyo Stock Exchange and themutual sustainable growth through shareholdings and dispatchingCompany prior to the day on which the notice is dispatched.

Directors. We believe that maintaining and improving the shared value

to interweave human logic with sensibility by continuously striving tocustomers,” “attractive designs to express Refined Dynamism,” and“power to build up a lifetime relationship with customers.”

shareholders
For the full text of “Yamaha Motor’s Corporate Governanceof the “Yamaha” brand by building a monitoring and collaborating

Guidelines,” please visit our website:

1-4. Basic capital policies

relationship with Yamaha Corporation will contribute to the medium- to

stakeholders that “the unique style of Yamaha Motor” constitutes thehttps://global.yamaha-motor.com/ir/governance/pdf/corporate_

Under the Medium-Term Management Plan (2016–2018), we will

long-term enhancement of Yamaha Motor’s corporate value.

“Yamaha” brand, and to make our products and services the lifelong

governance_guidelines-e.pdf

proactively make strategic investments for growth and provide our

We make ongoing efforts to gain recognition from our various

preferred choice for stakeholders. We believe that these efforts will
enable us to achieve sustainable growth and enhance our medium- tolong-term corporate value.
Under the Medium-Term Management Plan (2016–2018), we will

Chapter 1
Ensuring shareholders’ rights and equality, and basic views
on dialogue with shareholders

enhancement of corporate value. While maintaining and strengthening

1-1. Ensuring shareholders’ rights and equality

a stable financial base, we proactively make strategic investments for

We treat all shareholders equally based on the class and number ofgrowth in the following three domains: “fulfilling lifestyles,” “enjoyment

shares held by them. We provide sufficient consideration for thein personal mobility,” and “innovative technologies that harmonize with

exercise of rights allowed for minority shareholders.

*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.

(3) Basic policies on exercise of voting rights

strengthening a stable financial base. Major target figures are as

Yamaha Motor does not take a uniform approach in determining

follows. The Company strives to achieve these targets.

whether to approve or disapprove when exercising voting rights(1) As a guideline to build a stable financial base, an equity ratio target

associated with cross-shareholdings; instead, it thoroughly examines(2) To maintain a stable and continuous distribution of dividends as

and discusses whether the decisions contribute to the medium- to longterm enhancement of corporate value of the issuing company, andreturns to shareholders, achieve a consolidated dividend payout ratio

comprehensively assesses potential damage to its own corporate value.

of 30%.

We may request further explanations on agenda items when necessary(3) To promote the effective use of shareholders’ equity, we consider

and make decisions on approval or disapproval.

return on equity (ROE) to be one of the most important

people, society and the Earth,” to provide our shareholders withenhanced returns.

shareholders with enhanced returns while maintaining andof 40% or higher.

carry out specific measures to achieve sustainable growth and1-2. Basic views on dialogue with shareholders

management indicators, and target ROE of around 15%, which

To facilitate effective and constructive dialogue with shareholders andexceeds the capital cost.

investors, we are actively engaged in dialogue, led primarily by the

1-6. Related party transactions, transactions withcompetitors, and transactions involving any conflict ofinterests

Corporate Planning & Finance Center, and the division in charge of IR

1-5. Cross-shareholdings(1) Basic policies on cross-shareholdings

When carrying out related party transactions, transactions with

Basic Views on Corporate GovernanceTo ensure the implementation of the Company’s growth strategies for

and SR. These activities include individual meetings and briefing

Yamaha Motor’s development, procurement, production, and sales haveout appropriate procedures according to the degree of importance andthe future, Yamaha Motor’s Board of Directors establishes ansessions for shareholders and investors, which are held in a systematic

expanded globally. We believe that strengthening business relationships

the nature of those transactions as per the Board of Directors’ Rules

environment that supports management’s appropriate risk-taking andmanner in Japan and overseas. Opinions, inquiries, and otherwith business partners and maintaining stable relationships withand the Decision-making Rules, etc. The Board of Directors deliberates

decisive decision-making activities, and multilaterally understands andinformation obtained through these activities are shared with thefinancial institutions and other parties are necessary for achieving

upon and resolves these transactions to protect the interests of theappropriately oversees issues and risks associated with the

management and Directors (including Outside Directors).

President and Representative Director, the Chief General Manager of thecompetitors, and transactions involving any conflict of interests, we set

continuous growth. In considering our business strategies, businessCompany and all of its shareholders. The status of transactions is

implementation of the Company’s management strategies from the

The Company also utilizes the results of periodic shareholder

relationships with our business partners, and enhancement of ourreported to the Board of Directors, which is in charge of monitoring said

viewpoint of fulfilling responsibilities to various stakeholders including

surveys and related efforts to monitor the sufficiency of information

financial base, we intend to hold shares under cross-shareholdings

transactions.

shareholders and investors.

disclosed and appropriateness of the method of explanation forwhen it is deemed necessary and appropriate in order to enhance

fostering continuous dialogue.

corporate value from a medium- to long-term perspective.

This structure is designed to implement speedy and decisivedecision-making, and appropriate, transparent and fair supervision andmonitoring as the Company’s corporate governance. Accordingly, we

48

consideration of agenda items of the General Meeting of Shareholders.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

We also develop disclosure policies for the management of insider
information and take appropriate measures based on those policies.

The Board of Directors annually examines medium- to long-term
economic rationality and future outlook concerning its major

Yamaha Motor Co., Ltd. ⎜ Annual Report 201649

Corporate Governance

Chapter 2
Appropriate collaboration with various stakeholders

an important risk management task, which leads to the generation of

being treated unfavorably. A Compliance Hotline, in particular, isgrowth opportunities.

established in an external third-party organization so that Audit &2-1. Relationships with stakeholders

compact engines with little environmental impact and commercialized

Yamaha Motor has consolidated subsidiaries and equity-method

Smart Power products like electrically power assisted bicycles andaffiliates in 30 countries and regions. Approximately 90% of its

electric motorcycles, conducted research and development in next

consolidated net sales are generated overseas. The Company’s

generation power sources, and promoted social contribution activities bydevelopment, procurement, production, and sales activities havemaking use of human resources, tangible assets and know-how built

expanded globally, and its products are sold in more than 200

through our business operations, while maintaining harmony with thecountries and regions. We need to be well aware that our sustainableglobal environment. Yamaha Motor continues to engage in thesegrowth and medium- to long-term enhancement of corporate value

initiatives to develop further an internal promotion system.

We have successfully delivered technological innovations inare greatly supported by the resources and efforts provided by all

The Board of Directors formulates policies on dealing with

Supervisory Board Members can directly collect information.
The Board of Directors carries out a review on the implementation
status of these whistle-blowing systems on a regular basis.

4-1. Basic views on corporate governanceYamaha Motor supplies various kinds of products and services tomarkets around the world, including sensibility-focused personal

Chapter 3
Appropriate information disclosure and ensuringtransparency

mobility for individual customers’ recreational purposes, user friendly
and practicality-focused personal mobility for travelling and transportation
purposes, marine products to be used for a wide range of applications
from recreational to business purposes, industrial robots, vehicle engines,

3-1. Appropriate information disclosure and ensuringtransparency

and unmanned helicopters for corporate customers’ business use.
Overseas sales account for approximately 90% of the Company’s

stakeholders, namely, customers, employees, business partners,

issues concerning sustainability and regularly reviews their

In order to carry out constructive dialogue with stakeholders in Japan

consolidated net sales. With the principal concept of developing andcommunities, the greater society, and the global environment that

implementation status.

and overseas, Yamaha Motor proactively provides non-financial

producing locally where the products are consumed, our development,

information like its management strategies and risk governance inprocurement, production and sales and other activities have expanded

2-4. Ensuring diversity

addition to disclosure items required by laws and regulations. We alsoworldwide.

in 2013, with Group employees around the world. “Revs your Heart” hasTo ensure sustainable growth, Yamaha Motor places importance on

strive to disclose information in English to the extent reasonably

the meaning of “uplifting and exciting your heart just like revving up anincorporating various perspectives and values reflecting different

possible. The Board of Directors strives to ensure that disclosed andflexibly responding to customer diversity, product diversity and theengine.” The slogan is trying to convey the Group’s strong wish to provide

experiences, skills, and attribution. Therefore, we aim to secure diverse

provided information is accurate, comprehensive and highly useful for

globally expanding market, we acknowledge that adequate risk-taking

exceptional value and experiences that enrich the lives of its customers

human resources.

users, and appropriately supervises the content of such disclosure.

and decisive decision-making are necessary. We also place importanceinteract with Yamaha Motor worldwide.
We have been sharing the brand slogan “Revs your Heart,” adopted

To sustainably develop operational activities that are capable ofby exceeding the expectations of all stakeholders. To this end, we think

To this end, we have established a Global Human Resourcesvery carefully about what “the unique style of Yamaha Motor” means in

Development Division at the corporate headquarters to implement

3-2. External Accounting Auditor

risks associated with the implementation of management strategies. We

our overall operations including planning, development, production andglobally common, training programs to develop senior management and

To ensure adequate audits by an External Accounting Auditor, the Board

believe it is effective to structure a corporate governance systemsales, and place great importance on the spirit of challenge.

to adopt a global human resource system designed for developing andof Directors and the Audit & Supervisory Board secure the following

consisting of the Board of Directors, made up of Directors of theon multilaterally understanding and appropriately overseeing issues andappointing individuals with a competitive edge. We also work on

systems:

Company who are familiar with the Company’s customer characteristics,

2-2. Putting Code of Ethics into practicecreating an organization that can effectively make use of global(1) To secure sufficient time to enable high-quality audits, the division in

products, business operations and functions and Outside Directors who

Yamaha Motor has formulated the “Code of Ethics,” which describes

experience and knowledge.

topics including appropriate collaboration with stakeholders, respect for

To facilitate global management, we promote talented individuals

their interests, and sound business activity ethics, and shares thesefor senior management positions regardless of nationality orwith our subsidiaries. Directors, Executive Officers and employees

background. With regard to management executives at overseas

always act in accordance with the “fair and honest business” and “rules

subsidiaries in particular, we actively promote local talent, aiming toon business activities” provided for in the Code of Ethics in daily

attain a localized ratio of 60% by 2018. At the same time, we strive toactivities, so that we can continue building a corporate culture that canstrengthen the trust of society.
The Board of Directors periodically reviews whether the Company’s

charge of finance & accounting consults with the External

have a wealth of knowledge in global corporate management, and the

Accounting Auditor in advance to decide upon an adequate auditing

Audit & Supervisory Board whose members include Outside Audit &schedule.

Supervisory Board Members with professional knowledge in areas(2) The management arranges meetings with the External Accounting
Auditor on a regular basis or when necessary upon request.

including accounting, legal affairs, and management administration.
Under this corporate governance system, Executive Officers are(3) The Audit & Supervisory Board regularly receives reports on auditing

appointed to execute operational duties in a timely manner, and thedevelop headquarters talent on an ongoing basis, to create anplans and audit progress from the External Accounting Auditor, andBoard of Directors delegates matters related to the execution oforganization that can maximize management potential by mutuallydeliberates on the content of the reports in order to adequately

business operations to the Executive Officers.

complementing experiences and skills with locally developed talent.

collaborate with the External Accounting Auditor. In addition, theIn addition, to promote career development for women, we aim toInternal Auditing Division collaborates with External Accounting

objective and spirit of the Code of Ethics, and confirms the degree of

double by 2020 the number of women in management positions as of

Auditors by exchanging information when necessary as well as

4-2. Composition of the Board of Directors and Audit &Supervisory Board

awareness of and compliance with the Code throughout the Company’s

2014, and triple by 2025. We disclose these target figures andsharing information concerning internal control and compliance.

The Board of Directors and the Audit & Supervisory Board, whichbusiness activities in Japan and overseas.

promote them.

corporate culture has been established in a way that respects the50

Chapter 4
Responsibilities of the Board of Directors, etc.

(4) If External Accounting Auditors find any fraud, inadequacy or issues

implement corporate governance in accordance with the “Basic views on

and request the Company to take appropriate actions in this respect,

corporate governance” outlined in 4-1, consist of nine Directors, four

2-3. Handling issues concerning sustainability

2-5. Whistle-blowing systems

the management, the Audit & Supervisory Board, Internal Auditing

Outside Directors (including three Independent Outside Directors), twoIssues regarding sustainability, including ongoing global warming,

Yamaha Motor has established a Compliance Hotline and a Harassment

Division, Finance & Accounting Division and Risk Management

Standing Audit & Supervisory Board Members, and two Independent

energy and water use, and conservation of biodiversity are growing in

Hotline to which employees, etc., can report any unlawful behavior or

Division take necessary measures in accordance with the degree of

Outside Audit & Supervisory Board Members. Of the seventeen Directors

intensity on a worldwide level. We believe that handling these issues isconduct that may result in harming trust in the Company, without fear ofimportance thereof.

and Audit & Supervisory Board Members in total, six are Outside Officers.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201651

Corporate Governance

From the viewpoint of maintaining an overall balance in terms ofdiversity of customers’ special characteristics, products, businessactivities. In addition, the Board of Directors multilaterally understands

knowledge, experience and ability, and in consideration of diversity andoperations, and functions, as well as global aspects of markets.

and appropriately oversees issues and risks associated with theobjectively oversee conflicts of interest between the Company’ssize, the composition of the Board of Directors and Audit & Supervisory(4) Outside Directors shall be individuals who have experience in global

execution of management strategies from the viewpoint of fulfilling its

management and shareholders from social perspectives and from thecorporate management, professional insight in management, andresponsibilities to various stakeholders including shareholders andstandpoints of various stakeholders including shareholders and investors.

knowledge of the industry among others.

investors. We acknowledge that these tasks are their roles in supporting

They are also expected to actively provide the Company with advice on

the Company’s sustainable growth and enhancement of its corporate

management policies and improvements.

Board are defined as follows:(1) The Articles of Incorporation stipulate the number of Directors to beup to fifteen, and the number of Audit & Supervisory Board Members
to be up to five.

(5) At least one-half of Audit & Supervisory Board Members shall bemade up of Outside Audit & Supervisory Board Members, including(2) Regardless of gender, age, or nationality, executives must adequately
understand the viewpoints and standpoints of various stakeholders

those who have adequate insight in areas such as accounting, legal
affairs and management administration.

including shareholders, and must have long-term visions, abundantand brand value.

Independent Outside Directors and Outside Audit & Supervisory

To ensure prompt execution of business operations, the Board of

Board Members endeavor to understand a complete view of Yamaha

Directors appoints Executive Officers and delegates matters related toMotor’s business operations by inspecting the minutes and reference

execution of business operations to them.

materials of Management Committee meetings and other important

experience, extensive insight, and a high degree of expertise in

4-3. Roles of the Board of Directors

addition to appropriate human characteristic elements such as

To ensure the implementation of growth strategies for the future, thejudged and determined by the Board of Directors and matters to be

production and sales locations, and markets. They attend theethical views and fairness.

Board of Directors establishes an environment that supports

delegated to Executive Officers are as follows:

Management Discussion meeting held after the Board of Directors’

management’s appropriate risk-taking and decisive decision-making(1) Matters to be judged and determined by the Board of Directors

meetings on a regular basis, and the Executive Discussion meeting held

(3) Directors of the Company shall be individuals who can deal with the

In accordance with the policies outlined above, matters to be

1. Determining matters provided for in laws and regulations and the

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

Name

Reasons for appointment

Tamotsu Adachi

Tamotsu Adachi provides management with advice and supervision as an Outside Director, based on his ample
experience in international business and in the formulation of management strategy, investment activities and wide
range of insights. Mr. Adachi meets the requirements for independence stipulated by the Tokyo Stock Exchange andthe “Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has been duly notified of his
designation as an Outside Officer.

Takuya Nakata

As President and Representative Director of Yamaha Corporation, a major shareholder of the Company, Takuya
Nakata provides management with advice and supervision as a corporate executive, and has been elected as an
Outside Director to enhance the value of the Yamaha brand name that is used by both companies. Similarly, theCompany’s President and Representative Director, Hiroyuki Yanagi, concurrently serves as an Outside Director of
Yamaha Corporation.

Outside Directors

Atsushi Niimi

Atsushi Niimi provides management with advice and supervision as an Outside Director, based on his extensive
experience and wide-ranging knowledge as a corporate executive at several global organizations. Mr. Niimi meetsthe requirements for independence stipulated by the Tokyo Stock Exchange and the “Standards for Selecting
Independent Outside Officers,” and the Tokyo Stock Exchange has been duly notified of his designation as an
Outside Officer.

Articles of Incorporation
2. Overseeing the execution of Directors’ duties

meetings, and by visiting its worldwide development, procurement,

more than once a year to openly exchange opinions on the Company’s
medium- to long-term management strategies and importantmanagement matters.

3. Determining strategies and policies
4. Determining Corporate Philosophy, Code of Ethics, Basic Policies

4-5. Responsibilities of Directors

on Internal Control, Basic Policies on CSR, Governance Policies on

On the basis of fiduciary responsibilities to shareholders, Directors

the Yamaha brand, Long-term Management Visions, Medium-collect adequate information, understand relevant laws and regulations

Term Management Plan, etc.

and other necessary rules, actively express opinions, discuss and make5. Overseeing execution of business operations

decisions at Board of Directors’ meetings, Management Discussion

Approval of annual management plans, approval of financial

meetings and other important meetings in order to obtain sufficientstatements, oversight of the execution of duties, approval ofknowledge on viewpoints and standpoints of various stakeholders

internal auditing plans, oversight of the status of development of

including shareholders, and to achieve sustainable growth and medium-

internal control systems and risk management systems in

to long-term enhancement of corporate value.

accordance with Basic Policies on Internal Control, etc.
(2) Matters to be delegated to Executive Officers
1. Matters related to the execution of business operations

4-6. The Board evaluation
Pursuant to Yamaha Motor’s Corporate Governance Guidelines, theFormulating the Medium-Term Management Plan, annual

Board of Directors analyses and evaluates the effectiveness of roles andHaving served as representative director at several major companies, Genichi Tamatsuka provides managementwith advice and supervision as an Outside Director, based on his extensive experience in corporate management
and wide range of insights. Mr. Tamatsuka meets the requirements for independence stipulated by the Tokyo Stock
Exchange and the “Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has been
duly notified of his designation as an Outside Officer.

management plans and other plans and decision-making on the

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

execution thereof, preparing the draft of financial results,

and evaluation are carried out from the following perspectives and aformulating individual business strategies, decision-making on thesummary of the results is appropriately disclosed.

execution of operations such as development, production and(Evaluation perspectives)

sales, developing risk management systems, and other related

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

Tomomi Yatsu

Tomomi Yatsu uses her significant expertise as a certified public accountant and attorney as well as her knowledge andexperience as an outside officer for a corporation in performing her duties as one of the Company’s Audit & Supervisory
Board Members (Outside). Ms. Yatsu meets the requirements for independence stipulated by the Tokyo Stock Exchange
and the “Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has been duly notified
of her designation as an Outside Officer.

matters.

2. Relationships between the Board of Directors and senior

Masahiko Ikaga

Masahiko Ikaga uses his significant expertise as a certified public accountant, as well as his extensive experienceand wide-ranging knowledge as a corporate executive, in performing his duties as one of the Company’s Audit &Supervisory Board Members (Outside). Mr. Ikaga meets the requirements for independence stipulated by the Tokyo
Stock Exchange and the “Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has
been duly notified of his designation as an Outside Officer.

Genichi Tamatsuka

Outside Audit &Supervisory Board
Members

52

Independent Outside Directors are expected to independently and

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

2. Other matters delegated by the Board of Directors, excluding
matters to be judged and determined by the Board of Directors

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

4-4. Independent Outside Directors

Directors

Yamaha Motor appoints Independent Outside Directors in accordance

5. Deliberation at the meetings of the Board of Directors

with its “Standards for Selecting Independent Outside Officers,” which

6. Relationships and dialogue with shareholders

are disclosed to the public.

7. Dealing with stakeholders other than shareholders

Yamaha Motor Co., Ltd. ⎜ Annual Report 201653

Corporate Governance4-7. Executive Personnel Committee
Yamaha Motor has established an Executive Personnel Committee as

4-8. Remuneration system for Directors and Executive
Officers

a voluntary advisory body of the Board of Directors, to improve

The remuneration plan for Directors and Executive Officers consists oftransparency and validity in nominating candidates for executive

basic compensation (a monthly compensation), compensation linked topositions, and to determine their remuneration.

the individual performance, a stock compensation plan reflecting the

The Executive Personnel Committee deliberates matters including

Director or Audit & Supervisory Board Member received more than ¥100 million in aggregate remuneration and othercompensation

bonuses of Directors and Executive Officers reflecting short-term

remuneration and bonus plans, composition of Directors, Audit &consolidated performance. A stock compensation plan allows Directors

Supervisory Board Members and Executive Officers, and the evaluationand Executive Officers to acquire the Company’s shares monthly at aof Executive Officers. The Executive Personnel Committee reports to thecertain amount (via the Director Shareholding Association) and to hold

Board of Directors.

them during their term of office. This stock compensation plan isintended to be linked to shareholder value. Directors’ bonuses arecalculated, up to a maximum of 0.5% of consolidated net income, insenior executive positions including the Chief Executive Officer.
The Executive Personnel Committee consists of Representative

Compensation linked to performance
Name

Company’s medium- to long-term consolidated performance, andcandidates for executive positions, the remuneration system,

The Executive Personnel Committee also evaluates candidates for(Millions of yen)correlation with consolidated net income and return on assets for the

Directors and Outside Directors of the Company, and the current

previous fiscal year, as well as taking into account factors including

members are as follows:

dividends to shareholders and the level of consolidated performanceagainst the budget.

Chairman: President and Representative Director

Hiroyuki Yanagi

Based on the policies outlined above, the Executive Personnel

Committee member: Representative Director

Takaaki Kimura

Committee deliberates on the level, structure and allocation of basic

Committee member: Outside Director (Independent)

Tamotsu Adachi

compensation, compensation linked to individual performance, andCommittee member: Outside Director

Takuya Nakata

the stock compensation plan for Directors and Executive Officers, asCommittee member: Outside Director (Independent)

Atsushi Niimi

well as Directors’ and Executive Officers’ bonuses. The process andCommittee member: Outside Director (Independent)

Genichi Tamatsuka

results are proposed to the Board of Directors. The Board of Directors
discusses the proposals from the Executive Personnel Committee andmakes decisions.

Officerclassification

Company
Basicclassification compensation

Directors’
bonusesCompensation linked toeach Director’s individual
performanceStockcompensation
plan

Total

Hiroyuki Yanagi

Director

The Company

80

70

—

11

162

Takaaki Kimura

Director

The Company

68

60

—

9

138

4-9. Roles and responsibilities of Audit & Supervisory Board
Members and the Audit & Supervisory Board
On the basis of fiduciary responsibilities to shareholders, Audit &4-11. Status of Directors and Audit & Supervisory Board
Members who also serve as directors, etc., at othercompanies

Supervisory Board Members and the Audit & Supervisory Board, as a

When Directors and Audit & Supervisory Board Members serve as

body independent from the Board of Directors, request the Company

executives of listed companies other than Yamaha Motor, the number ofand its subsidiaries to submit reports on their business activities inthese positions shall be within a reasonable extent in consideration ofaccordance with laws and regulations, survey the status of businesstheir own fiduciary responsibilities. The status of Directors and Audit &operations and property, exercise rights in respect of appointing or

Supervisory Board Members who also serve as directors, etc., at otherdismissing an External Accounting Auditor and audit compensation,companies is disclosed every year in the Business Report and Reference

attend meetings of the Board of Directors and other important meetings,

Documents of the “Notice of the Ordinary General Meeting ofand provide opinions as needed. Through these tasks, Audit &Shareholders” posted on the Company’s website.

Supervisory Board Members and the Audit & Supervisory Board audit
internal control systems, and the performance and financial position of

4-12. Training for Directors and Audit & Supervisory Board
Members

the Company and its subsidiaries.

(1) Directors and Standing Audit & Supervisory Board Members are

the legality and appropriateness of Directors’ execution of duties,

required to attend a third-party-hosted training program upon their

Remuneration for Directors and Audit & Supervisory Board Members
Remuneration for Directors and Audit & Supervisory Board Members for fiscal 2016 is as follows:(Millions of yen)Compensation linked to performance
Officer classification

Directors (11)Basiccompensation
351

Directors’
bonuses
228

Compensation linked toeach Director’s individual
performance
32

Stock
compensation
plan
53

Total

665

(25)

―

̶

―

(25)

Audit & Supervisory Board Members (4)

77

―

―

―

77

Of which, Audit & Supervisory Board
Members (Outside) (2)

(18)

―

―

―

(18)

429

228

32

53

743

Notes: 1. The annual amount of remuneration for Directors excluding Directors’ bonuses shall be ¥540 million or less (including ¥50 million or less for Outside Directors), and the annual amount of
remuneration for Audit & Supervisory Board Members shall be ¥90 million or less.
2. The above Directors’ bonuses in Compensation linked to performance are the amount scheduled to be paid.
3. In addition to the remuneration listed above, ¥39 million was paid as salaries to Directors who serve concurrently as employees.

54

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

appointment, to deepen their understanding of their respective

In order for Outside Directors and Audit & Supervisory Board Members

attending this training is borne by the Company.

to contribute actively to discussions of the Board of Directors, meetings

Of which, Outside Directors (3)Total

4-10. Cooperation between Outside Directors and Audit &Supervisory Board Members

duties and responsibilities, and corporate governance. The cost of(2) Opportunities for briefings and question-and-answer sessions

are held on a regular basis so that Outside Directors can collectconcerning the status of corporate governance, transitionalsufficient information without affecting their independence, exchange

management changes, management issues, and progress under the

information, and share understanding from their independent andMedium-Term Management Plan, etc., are provided to the candidates

objective perspectives.

for Outside Directors and Outside Audit & Supervisory Board Members

To enable Outside Directors and Audit & Supervisory Board
Members to obtain necessary information and adequately communicate,coordinate, and collaborate with the management, the Audit &before their appointment to help them gain an overall understanding of
the present situation and awareness of issues.
(3) All Directors and Audit & Supervisory Board Members attend theSupervisory Board Members’ Office assists with the duties of theManagement Discussion meeting held after meetings of the Board of

Corporate Planning Division and Audit & Supervisory Board Members.

Directors, and the Executive Discussion meeting held more thanonce a year. These committees provide opportunities to openly
discuss and exchange opinions and information on Yamaha Motor’s
medium- to long-term management strategies and importantmanagement issues, through which they can mutually sharpen the
management sense.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201655

Directors, Audit & Supervisory Board Members,
and Executive Officers

MC: Motorcycle
AM: Automotive
WV: Water Vehicle
ME: Marine Engine
NLV: New Land Vehicle
PF: Platform

As of April 1, 2017

Board of Directors
I

Director
Yoshihiro Hidaka

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

J Director (Outside)

Tamotsu Adachi
April 1977:
Joined Mitsubishi Corporation
January 1988: Joined McKinsey & Company, Inc. Japan
June 1995:
Partner of McKinsey & Company, Inc. Japan
March 1997:
Managing Director of Business Development Department, GE Capital Japan
March 1999:
President and CEO of Japan Lease Auto Co.
December 2000: President and CEO of GE Fleet Services Co.
May 2003:
Managing Director and Japan Representative of Carlyle Japan LLC
June 2003:
Outside Director of Benesse Corporation (currently Benesse Holdings, Inc.)
November 2007: Managing Director and Co-Representative of Carlyle Japan LLC
June 2009:
Outside Director of Benesse Corporation (currently Benesse Holdings, Inc.) (to present)
March 2013:
Outside Director (to present)

June 2016:
Chairman of Carlyle Japan LLC
October 2016: Senior Advisor of Carlyle Japan LLC (to present)
October 2016: Representative Director and President, CEO of Benesse Holdings, Inc. (to present)

K Director (Outside)

Takuya Nakata
April 1981: Joined Nippon Gakki Co., Ltd. (currently Yamaha Corporation)
October 2005: General Manager of PA/DMI Division of Yamaha Corporation
June 2006: Executive Officer of Yamaha Corporation
June 2009: Director & Executive Officer of Yamaha Corporation
April 2010: President of Yamaha Corporation of America
June 2010: Senior Executive Officer of Yamaha Corporation
June 2013: President and Representative Director of Yamaha Corporation (to present)
March 2014: Outside Director (to present)

A President and Representative Director

Hiroyuki Yanagi
April 1978:
March 2009:

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

C Director

Masahiro Takizawa

B Representative Director

J

I

G

F

H

Genichi Tamatsuka

April 1971:
June 2000:
June 2003:
June 2004:
June 2005:
June 2009:

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

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

K

April 1976:
March 2005:
March 2007:

Joined the Company
Director, Senior General Manager of AM Operations
Senior Executive Officer and Director, Senior General Manager of AM
Operations
January 2009: Senior Executive Officer and Director, Chief General Manager of Marine
Business Operations and Executive General Manager of WV Business Unit,
Marine Business Operations
November 2009: Managing Executive Officer and Representative Director, Chief General
Manager of Marine Business Operations and Executive General Manager
of WV Business Unit, Marine Business Operations
March 2010:
Senior Managing Executive Officer and Representative Director, Chief
General Manager of Marine Business Operations and Executive General
Manager of WV Business Unit, Marine Business Operations
January 2012: Senior Managing Executive Officer and Representative Director, Chief
General Manager of Technology Center and Chief General Manager ofMarine Business Operations
March 2014:
Executive Vice President and Representative Director, Chief General
Manager of Technology Center, Chief General Manager of Design Center,and Chief General Manager of Marine Business Operations
January 2017: Executive Vice President and Representative Director, Chief General
Manager of Marine Business Operations (to present)

D Director

Katsuaki Watanabe

Audit & Supervisory Board Members

M

E

C

A

B

D

L

P

F Director

G Director

H Director

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

O

Q

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

Katsuhito Yamaji

N

E Director

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

April 1981: Joined the Company
March 2012: Senior Executive Officer, and Executive General Manager of ME Business
Unit, Marine Business Operations
January 2013: Director and President of PT. Yamaha Indonesia Motor Manufacturing
March 2015: Senior Executive Officer and Director
January 2016: Senior Executive Officer and Director, Deputy Chief General Manager of New
Business Development Center, and Senior General Manager of New Land
Vehicle Business Development Section, New Business Development Center
January 2017: Senior Executive Officer and Director, Deputy Chief General Manager

M Director (Outside)

Atsushi Niimi

Takaaki Kimura

April 1978: Joined the Company
March 2010: Senior Executive Officer, Senior General Manager of Corporate Planning
Section and General Manager of Corporate Planning Division, Corporate
Planning Section
January 2011: Senior Executive Officer, Chief General Manager of Business Development
Operations
March 2011: Senior Executive Officer and Director, Chief General Manager of Business
Development Operations
March 2013: Managing Executive Officer and Director, Chief General Manager of Business
Development Operations
January 2016: Managing Executive Officer and Director, Chief General Manager of New
Business Development Center (to present)

Yoichiro Kojima

L Director (Outside)

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

N Standing Audit & Supervisory Board Member

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

O Standing Audit & Supervisory Board Member

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

P Audit & Supervisory Board Member (Outside)

Tomomi Yatsu
April 1983:
Joined Tokyo Electron Limited
October 1986: Joined Tohmatsu Awoki & Sanwa (currently Deloitte Touche Tohmatsu LLC)
September 1990: Registered as a certified public accountant
November 2001: Registered as an attorney
Joined New Tokyo Law Office (currently Bingham Sakai Mimura
Aizawa-Foreign Law Joint Enterprise)
April 2007:
Partner of Bingham Sakai Mimura Aizawa-Foreign Law Joint Enterprise(to present)
June 2009:
Outside Audit & Supervisory Board Member of CALBEE, Inc.
June 2010:
Outside Audit & Supervisory Board Member of Taiko Pharmaceutical Co., Ltd.
March 2012:
Outside Statutory Auditor of Kokuyo Co., Ltd.
March 2015:
Outside Audit & Supervisory Board Member (to present)
April 2015:
Partner of TMI Associates (to present)
June 2016:
Outside Executive Director of SMBC Nikko Securities Inc.

Q Audit & Supervisory Board Member (Outside)

Masahiko Ikaga
October 1979:
March 1988:
May 1988:

Joined Tohmatsu Awoki & Co. (currently Deloitte Touche Tohmatsu LLC)
Registered as a Certified Public Accountant
Director of Tohmatsu Touche Ross Consulting Co., Ltd. (currently ABeam
Consulting Ltd.)May 1990:
Partner of Tohmatsu Awoki & Co. (currently Deloitte Touche Tohmatsu LLC)
April 1993:
Director of Tohmatsu Consulting Co., Ltd. (currently Deloitte Tohmatsu
Consulting LLC)
March 2000:
Representative Director and President of Tohmatsu Consulting Co., Ltd.
October 2010: Chairman and Director of Tohmatsu Consulting Co., Ltd.
November 2013: CSO of Deloitte Touche Tohmatsu LLC
April 2016:
Established Masahiko Ikaga Certified Public Accounting Office
May 2016:
Representative Director of PrajnaLink Co., Ltd. (to present)
June 2016:
External Audit & Supervisory Board Member of Morinaga Milk Industry
Co., Ltd. (to present)
March 2017:
Outside Director (to present)of New Business Development Center, Senior General Manager of
New Land Vehicle Business Development Section, New Business
Development Center, and Deputy Chief General Manager of MC
Business Operations (to present)

56

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201657

Comments from an Outside Director

Directors, Audit & Supervisory Board Members, and Executive Officers

Based on our highly transparent management, I hope to continue

Executive Officers
President and Chief Executive Officer
Hiroyuki Yanagi

to create products that deliver excitement to customers.

Executive Vice President
Takaaki Kimura
Chief General Manager of Marine Business Operations

In recent years, Yamaha Motor has gone through painful restructuring, and managed to create

Managing Executive Officer
Masahiro Takizawa

Managing Executive Officer

Managing Executive Officera solid management base by steadily pursuing to achieve the targets of the Medium-Term

Katsuaki Watanabe

Toshizumi KatoManagement Plan under a management policy of emphasizing ROE. We are now embarking on the

Chief General Manager of New
Business Development Center

Chief General Manager ofMotorcycle Business Operations

Chief General Manager of Vehicle &Solution Business Operations

next step toward becoming a unique company that continues to achieve dynamic milestones. I feel
privileged to be able to join the Board of Directors of the Company at this time.

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Yoichiro Kojima

Katsuhito Yamaji

Makoto Shimamoto

Yoshihiro Hidaka

Hiroaki Fujita

Deputy Chief General Manager of
New Business Development Center,
Senior General Manager of New
Land Vehicle Business Development
Section, New Business Development
Center, and Deputy Chief General
Manager of Motorcycle Business
Operations

Chief General Manager of
Manufacturing Center

Chief General Manager ofTechnology Center, and Chief
General Manager of PF Model Unit

Chief General Manager ofCorporate Planning & FinanceCenterPresident of Yamaha Motor India
Pvt. Ltd.

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Masaru Ono

Masahiro Inoue

Junzo Saitoh

Chief General Manager of CS
CenterChief General Manager ofProcurement Center, andSenior General Manager of
Cost Innovation Section,
PF Model Unit

Chief General Manager of Human
Resources & General AffairsCenterExecutive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Masaki Asano

Yoshitaka Noda

Kazuhiro Kuwata

Tatsumi Okawa

Akihiro Nagaya

President of Yamaha Motor
India Sales Pvt. Ltd.

Senior General Manager ofEngine Unit

President of Yamaha Motor
Europe N.V.

President of Yamaha Motor
Corporation, U.S.A., and
Deputy Chief General
Manager of Marine
Business Operations

Chief General Manager of Design
CenterExecutive Officer

Executive Officer

Our operating divisions are currently streamlining and realigning businesses while continuing
to formulate new plans and pursue the challenge of new markets for further growth. The Company
Atsushi Niimi
Outside Director

is also exploring new business opportunities with a view toward the future. Important management
issues are discussed at meetings of the Management Committee and the Management ResearchCommittee, on which I serve, before being proposed at meetings of the Board of Directors. This
ensures ample opportunity for free and thorough exchange of opinions, and I believe this also has
the benefit of enhancing the transparency of management decision-making by clarifying risks andimplementing decisions with the firm backing of management.
We are also making steady progress in creating a management structure that conforms to the
Corporate Governance Code, while adding improvements such as regular reviews of the structure’s
effectiveness.
From this perspective, it is clear to me that Yamaha Motor is a solid company where management

Our products do not just give customers pleasure; they are also intended to benefit the world
at large. To achieve this, we make sure that the employees who make our products enjoy their workof creating uniquely Yamaha products, based on the idea that “our customers will not be satisfied
unless our employees are satisfied.” I believe this is an excellent concept.

Executive Officer

Executive Officer

Executive Officer

Heiji Maruyama

Hirofumi Usui

Satohiko Matsuyama Minoru Morimoto

Yasuo Tanaka

Deputy Chief General Manager
of Engine Unit, Senior General
Manager of Engine Development
Section, Engine Unit, and Executive
General Manager of Automotive
Business Unit

Senior General Manager of Marine
Business Section, Marine Business
Operations, and General Manager of
Product Planning Division, Marine
Business Section, Marine Business
Operations

Executive General Manager ofRecreational Vehicle Business Unit,
Vehicle & Solution Business
Operations

Senior General Manager of After
Sales Section, CS Center

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Motofumi Shitara

Eric de Seynes

Dyonisius Beti

Toshihiro Nozue

Satoshi Hirose

Deputy Chief General Manager ofCorporate Planning & FinanceCenter

COO of Yamaha Motor Europe N.V.

COO of PT. Yamaha Indonesia Motor
Manufacturing

Executive General Manager ofMarine Engine Business Unit,
Marine Business Operations

Deputy Chief General Manager of
Manufacturing Center, and Senior
General Manager of Engine
Manufacturing Section, Manufacturing
CenterPresident of PT. Yamaha Indonesia
Motor Manufacturing

takes its responsibilities vigilantly and seriously and strives to be accountable to all stakeholders.

Enjoying one’s work, however, does not mean that we can ignore the difficult times and stop
aiming to be a continually growing company with solid profitability. I hope to continue our efforts
in all areas to constantly strive for reductions in lead times from order to delivery, and create
workplaces with tightly honed operations that thoroughly eliminate inefficiencies.
My hope is that going forward, Yamaha Motor will continue to deliver excitement to customers
and benefit the world at large, as a unique company that continues to achieve dynamic milestones
with solid profitability.

CS: Customer Service
PF: Platform

58

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

59

Five-Year Summary

Financial Data by Market

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries

Years ended December 31, 2012, 2013, 2014, 2015 and 2016

Years ended December 31, 2015 and 2016

Millions of yen

2012
For the year:
Net sales
Sales by market:
Japan
Overseas
Sales by product:
Motorcycles
Marine products
Power products
Industrial machinery and robots
Other products
Cost of sales
Operating income
Ordinary income
Profit attributable to owners of parent
Net cash provided by (used in) operating activities
Net cash used in investing activities
Free cash flows
Net cash provided by (used in) financing activities
Capital expenditures
Depreciation expenses
At year-end:
Total assets
Net assets
Interest-bearing debt

2013

% change

2014

2016

2015

¥1,207,675¥1,410,472¥1,521,207¥1,631,158¥1,502,834(7.9)%

152,283
1,055,391

147,806
1,262,665

162,824
1,358,383

166,017
1,465,141

164,233
1,338,601

(1.1)
(8.6)

798,676
196,320
103,588
30,81378,276
235,068
18,59827,267
7,489(2,385)(51,081)(53,466)
15,761
48,78834,278928,203
243,362
126,722
32,261
79,922
318,765
55,13760,09244,057
66,976(62,679)
4,296
3,620
56,80036,407

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

1,032,560
309,337
169,495
46,501
73,262436,525
130,329
125,23160,02328,475(68,475)(40,000)
6,845
64,06444,324930,112297,216
152,310
46,871
76,322402,660
108,594
102,073
63,153
143,163(46,541)
96,622(67,627)
61,33042,434¥ 962,329
341,561
326,976¥1,146,591
422,792
382,929¥1,310,040
503,224
403,652¥1,305,236
531,700
410,148¥1,318,776
575,404
364,381

1.5
2.5
32.0
44.2
106.2

3.9
12.7
33.5
12.5
99.7

5.7
16.2
35.1
12.5
87.8

8.0
12.6
37.6
16.0
83.6

7.2
12.3
40.5
14.2
68.2

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

Yen

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

¥

21.45
—
881.8810.00¥

126.20126.201,099.84
26.00¥

196.06
196.04
1,316.58
40.00

171.89171.88
1,405.35
44.00¥

180.84180.83
1,529.53
60.00

Millions of yen, except per share data

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

949
331,288¥1,577
550,585¥2,442
852,683

¥

¥

2,574
898,931

Persons

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

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

42,031
53,150

Yamaha Motor Co., Ltd. ⎜ Annual Report 20162016/2015(0.0)%

North America

8977(13.3)(9.9)(3.9)(10.1)
0.8
4.2
(7.8)
(16.7)(18.5)
5.2
402.8(32.0)
—
—
(4.3)
(4.3)

Europe

209

208

(0.8)

Asia Note

4,286

4,307

0.5

Others524452(13.7)

Total

5,218

5,154

(1.2)%% change

Millions of yen

1.0 %
8.2
(11.2)

Japan

Note: Excluding Japan

Sales by Market
Motorcycles
Millions of yen(6.2)%(6.2)

22.8 %(0.3)

Marine products% change

2015

2016

46,289¥ 47,000

North America

72,28955,894

Europe136,185

Asia Note

Millions of yen

2015

2016

¥ 26,607¥ 28,484(22.7)

180,691

127,868(6.1)

628,705

579,594

Others149,092

Total¥1,032,560

¥

5.2 %
5.2
8.8
36.4

Notes: • References to fiscal years are to 12-month periods commencing on January 1 and ending on December 31.
• With regard to amounts stated in million yen units, amounts less than ¥1 million are truncated. For amounts stated in 0.1 billion or billion yen units, amounts less than ¥0.1 billion or ¥1 billion,
respectively, are rounded off.
• From the fiscal year ended December 31, 2016, the presentation of sales finance-related income and expenses has changed from recording under “Selling, general and administrative
expenses,” “Non-operating income,” and “Non-operating expenses” to recording under “Net sales,” “Cost of sales,” and “Selling, general and administrative expenses.” To reflect this change inpresentation method, the consolidated financial statements for the fiscal year ended December 31, 2016 and the fiscal year ended December 31, 2015 have been reclassified.

60% change2016
110Power products

2016

7.1 %

¥ 15,586¥ 14,339(8.0)%

172,236(4.7)

116,939

104,642(10.5)

39,18740,804

4.1

17,456

16,365

(6.2)

(7.8)

18,696

17,022

(9.0)

5,931

5,118

(13.7)

119,754(19.7)

44,15538,668(12.4)

13,581

11,845(12.8)¥930,112(9.9)%¥309,337¥297,216(3.9)%¥169,495¥152,310(10.1)%

Millions of yen

1.5 %2016/20152016/2015

Other products% change

2015

2016

¥17,686¥15,979(9.7)%

North America

2,661

3,469

Europe4,463

Asia Note

Millions of yen% change

2015

2016

¥59,847¥58,429

30.4

120

219

81.9

5,306

18.9

5,301

8,571

61.7

20,877

20,481

(1.9)

3,336

4,528

35.7

Others

811

1,634

101.4

4,657

4,573

(1.8)

Total

¥46,501¥46,871¥73,262¥76,322

4.2 %

Japan

% change

2015

2016/2015

Industrial machinery and robots% change

34,21453,306

Thousand units

2015
110

% change

2,744
958,264

Thousand unitsJapan% change¥

Motorcycle Unit Sales by Market

2016/20152016/2015

0.8 %2016/2015(2.4)%

Note: Excluding Japan

Yamaha Motor Co., Ltd. ⎜ Annual Report 201661

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

Net sales declined 7.9% from the previous year, to ¥1,502.8 billion, due to the yen’s appreciation against
various currencies.

Motorcycle sales by market

Motorcycle unit sales by market

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

1,200

8,000

400

928

POINT

In terms of profit, despite improved profitability as a result of cost reductions, the significant impact of
the exchange rate resulted in a 16.7% decline in operating income, to ¥108.6 billion. Profit attributable toowners of parent increased in the absence of one-time negative items recorded in the previous year.

900

142

799

978
150

1,033
930

149

6,000

120

600

Sales by product segment

Sales by market(Billion ¥)(Billion ¥)Industrial machinery and robots

3.1%

1,800

Other products 5.1%

610

1,521

Power products

1,410

10.1%

1,350

Marine products 19.8%

80
32
127

1,208
78
31
104

Motorcycles

61.9%
900

86
39
142
276

243

0

1,800

1,631

1,631
1,521

1,503

73
47
169

612

1,350

309

89
50
37

116
53
46

136
72
46

1,263

1,358

1,465

1,339

5,154

524

452

5,077

4,819

243

4,307

4,286

56
47

2012

2013

2014

2015

2016

276

196

43
12

36
11
31

37

100

125

91

128

0

165
71
94

162
76
109

191
79
123

209
89
110

208
77
110

2012

2013

2014

2015

2016

0

Percentage of sales by market

978

928

799

1,033

450

0

10.9%

2012

2013

2014

2015

0

2016

Motorcycles

Marine products

Power products

Industrial machinery and robots

152

148

163

166

164

2012

2013

2014

2015

2016

Japan

27

26

27

27

28

2013

2014

2015

2016

North America

Japan

North America

Asia

EuropeAsia

OthersCash and cash equivalents at the end of
the year

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

8

720

24

160

1,147

1,305

1,319
6

5.6

962

4.6

503

4.8

4.2

800

540
423

4

360

2

180

0

0

342

16.2

532

12.6

12.7

136

137

575
18

120

12

80

6

40

0

0

120
108

106

12.3

Overseas

Other products

Overseas

172

Europe

1,200

Japan

181
145

Japan

1,600

(Year ended December 31, 2016)

41

Asia

1,310

930

39

North America

Others3917

42EuropeOthers

297

2012

1,055

450

47
16

44
19

Japan

1,208

900

5,218

200
5,228

79
42
36

1,503

297

587

300

580

Total assets and return on assets

196

309

5,799

2,000

1,410

76
47
152

590

4,000

629

300

(Year ended December 31, 2016)

6,014

533

109

533

Percentage of sales by product segment

6,090

400

89.1%
0.8
0

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

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

(%)

(¥)

8

80

6.0

240

160

8.0
130.3

120

5.7

7.2
108.6

68.5
6

4.5

60

4.5

172 172

180

4

40

62

2016

2

181 181

2014

2015

2016

2012

2014

2015

2016

0

3.0

3.1

1.5

Cash used in investing activities

Free cash flows(Billion ¥)(Billion ¥)

180

80

72

120

2014

2015

94

97

60
51

47

21
4

60

40

0

20

–60

28

2016

0

0

2012

2013

2014

2015

Operating income

Profit attributable to owners of parent

Net income per share—basic

Operating income margin (%)

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

Net income per share—diluted

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

2016

68

60

120

0
2013

2015

120

21

0.6
2012

2014

63

20

0

2013

(Billion ¥)143

126 126

7.5
2013

2013

Net assets

Return on assets (%)

60

1.5

2012

2012

67

18.6
0

2015

Cash provided by (used in) operating
activities

55.1
40

2014

% of net income to shareholders’ equity

196 196

44.1

3.9

2013

Total assets

63.2
4.2

2012

3.7

87.2
80

60.0

2.5

2016
–60

–2

2012

2013

2014

2015

2016

0

2012

2013

2014

2015

2016

–120

–40

–53

2012

2013

2014

2015

2016

Note: Net income per share—diluted for fiscal 2012 is
not listed as there were no potential shares withdilutive effect.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201663

Management Discussion and Analysis of Operations

Overview

Sales Performance by Business Segment
Motorcycles

Marine Products

Industrial Machinery and Robots

During the fiscal year ended December 31, 2016 (fiscal 2016), theNet sales declined ¥12.1 billion, or 3.9%, year on year, to ¥297.2

Net sales rose ¥0.4 billion, or 0.8%, year on year, to ¥46.9 billion, andglobal economy saw a spate of transformations from conventional

Net sales declined ¥102.4 billion, or 9.9%, year on year, to ¥930.1

billion, and operating income declined ¥8.6 billion, or 13.4%, tooperating income rose ¥0.3 billion, or 4.2%, to ¥7.5 billion.

systems and frameworks, including the U.K.’s decision to leave the E.U.

billion, and operating income declined ¥3.2 billion, or 8.1%, year on¥55.4 billion.

and anti-globalization following the U.S. presidential election. In Japan,

year, to ¥36.0 billion.
Unit sales increased in countries such as India, Vietnam and thecorporate earnings, employment and personal income conditions

While the unit sales of surface mounters decreased owing toUnit sales of outboard motors expanded in North America andsluggish economic conditions in China, increased sales of high-value-

Europe, where sales are centered on large models. Although sales andadded products, etc., led sales and profit to increase. An operating

improved against a backdrop of government economic policy and thePhilippines, remained at the same level as the previous year in

profit declined due to the effects of exchange rates in the business as

margin of 16% was achieved, and the Company’s high earnings

monetary easing policy of the Bank of Japan, but a sense of stagnation

developed markets, and declined in countries such as Indonesia, Chinaa whole, a high earnings structure with an operating margin of 19%

structure has further progressed. The Company is broadening its

remained with regard to escape from deflation and economic growth.

and Brazil. Net sales declined in the business as a whole owing to thewas maintained. For the future, the Company is creating a businesscustomer base in the next-generation solutions business, including

In terms of the Company’s major markets, a sense of economic

impact of exchange rates. Operating income rose in emerging markets

model aimed at becoming a system supplier.

high speed and multi-feature surface mounters and integrated control

stability generally continued in the developed markets. Meanwhile, indue to increased sales of higher-priced products and the effects of costthe emerging markets, the situation differed in each country. The

reductions, fell in developed markets due to the effects of exchange

Power Products

economy recovered in ASEAN countries excluding Indonesia, and India

rates, and declined in the business as a whole.

Net sales declined ¥17.2 billion, or 10.1%, year on year, to ¥152.3

Other Products

billion, and operating income declined ¥11.5 billion, or 71.8%, toNet sales rose ¥3.1 billion, or 4.2%, year on year, to ¥76.3 billion, and¥4.5 billion.

operating income rose ¥1.2 billion, or 30.1%, to ¥5.2 billion.

In developed markets, the Company is implementing initiatives

achieved favorable growth. However, economic recovery was stagnant

focusing on inventory reduction, the financial business and further

in Indonesia, and the economy was sluggish in China and Brazil.
Against this backdrop, the Company’s consolidated net sales for the

robot systems.

In electrically power assisted bicycles, exports of the E-kit (drive

ROV retail units sold increased, but the number of units produced

structural reforms. In addition, amid a robust market in India, thefiscal year under review declined ¥128.3 billion, or 7.9%, year on year,

Company continues to make efforts to proactively increase sales and atand sold declined in line with inventory adjustments. Increased

unit for electrically power assisted bicycles) to Europe and sales ofto ¥1,502.8 billion, and operating income declined ¥21.7 billion, or

the same time lower the break-even point. While sluggish economic

expenses as a result and the effects of exchange rates led to a decline

finished units in Japan grew. As a result, sales and profit increased for

16.7%, to ¥108.6 billion. Ordinary income declined ¥23.2 billion, orconditions continue in Brazil and China, the Company strives for further

in sales and profit in the business as a whole. For fiscal 2017, thethe other products business overall. In global markets, the Company is

18.5%, to ¥102.1 billion, and profit attributable to owners of parent

structural reforms.

Company will bring new platform models to market, while swiftly

further broadening its customer base.

rose ¥3.1 billion, or 5.2%, to ¥63.2 billion.

realizing business normalization.

Factors Impacting Operating Income

Sales by geographical segment Note 1—JapanSales by geographical segment Note 1—North America

Sales by geographical segment Note 1—Europe(Billion ¥)(Billion ¥)(Billion ¥)(Billion ¥)

180

800

500

200

135

OperatingincomeImpact of increased
sales

Cost reductions

+20.3

+10.2

Impact of exchange rate

–43.8

Impact of cost of
raw materials

Increase in R&D expenses
including investment ingrowth strategies

Decrease indepreciation
expenses

Increase in SG&A
expenses

+6.0

–3.5

+1.9

–12.8

718
659

Operatingincome

600

673

596

409

199

192

2015

2016

160
365

375

533

190

150

315

135

270
90

+130.3
45

0

64

2015

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

+108.6

2016

400

250

200

125

0

2012

2013

2014

2015

2016

0

100

206

50

2012

2013

2014

2015

2016

0

2012

2013

2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201665

Management Discussion and Analysis of Operations

Sales Performance and Operating Income byGeographical Segment Note 1
Japanprominent presence in the global market, while also pursuingforeign exchange losses of ¥8.3 billion (compared with ¥9.2 billion in

year. Unit sales of outboard motors and snowmobiles decreased mainly

customers’ changing dreams. Our technological development uses

the previous year), interest expenses of ¥4.6 billion (compared within Russia.

original and innovative ideas to provide pure enjoyment backed by¥5.7 billion in the previous year), and interest income of ¥4.3 billion

reliability, together with a refined uniqueness that people find(compared with ¥4.7 billion in the previous year).

Unit sales of motorcycles remained at the same level as the previous

Net sales in Japan declined ¥45.1 billion, or 6.3%, year on year, to¥673.2 billion, and operating income declined ¥13.5 billion, or 31.5%,

Asia

attractive. From this, our mission is to create products andto ¥29.3 billion.

Net sales in Asia (excluding Japan) declined ¥73.8 billion, or 9.6%, year

technologies that embody the unique style of Yamaha.
As we continue to take on new challenges in the three areas of

Net extraordinary income was negative in the amount of ¥2.3 billion,“creating enjoyment in personal mobility,” “socially and environmentallycompared with a negative ¥2.6 billion in the previous year. This wascreative technology” and “helping create more fulfilling lifestyles,” wemainly from an impairment loss totaling ¥1.4 billion (compared withwill pursue proactive R&D activities through particular use of our three¥0.3 billion in the previous year) and a loss on disposal of non-current

core competencies in small-engine technology, electronic control

assets of ¥1.0 billion (compared with ¥1.1 billion in the previous year)

technology, and chassis/hull technology.

at the Company and overseas subsidiaries.

on year, to ¥692.0 billion, while operating income rose ¥8.0 billion, orUnit sales of electrically power assisted bicycles and other items

20.8%, to ¥46.6 billion.

increased, but motorcycle shipments to North America and unit sales ofUnit sales of motorcycles grew in India, Vietnam, and thesurface mounters and other items decreased. In addition, unit sales ofExtraordinary Income and Lossmotorcycles in Japan remained flat versus the previous year.

Philippines, but declined in Indonesia and China.

North America

Others

Net sales in North America declined ¥44.3 billion, or 10.8%, year on

Net sales in other areas declined ¥29.4 billion, or 18.2%, year on year,

By delivering products that embody the unique style of Yamaha, weyear, to ¥364.8 billion, and operating income declined ¥20.9 billion, orto ¥132.6 billion, and operating income rose ¥0.7 billion, or 14.9%, toseek to create strong connections with customers around the world. Our

Income Taxes

56.7%, to ¥16.0 billion.

¥5.6 billion.

global R&D structure is at the core of these efforts, and we are

Income taxes decreased ¥28.7 billion, or 52.9%, year on year, to ¥25.5

proactively pursuing R&D activities in close cooperation with affiliatedbillion. This decrease reflects the absence of ¥35.6 billion in additional

companies in Japan and overseas.

payment for corporate income taxes by U.S. subsidiaries in the previous

Unit sales of motorcycles decreased in Brazil and other markets.

Unit sales of outboard motors rose; however, unit sales ofmotorcycles decreased due to the effect of planned distribution

Note 1: Net sales by geographical segment include intersegment sales.

Income and Expenses
R&D Expenses

were ¥94.9 billion.

EuropeNet sales in Europe declined ¥7.0 billion, or 3.5%, year on year, to

The Yamaha Motor Group aims to be a “Kando Creating Company,”

Non-Operating Income and Expenses¥191.9 billion, and operating income rose ¥0.9 billion, or 8.4%, toand seeks to achieve this through continuous growth as an excellent

Net non-operating income was negative in the amount of ¥6.5 billion,¥11.1 billion.

engineering, manufacturing and marketing enterprise with acompared with a negative ¥5.1 billion in the previous year. This included

Sales by geographical segment Note 1—Others

R&D expenses and % of R&D expenses
to net sales(Billion ¥)(Billion ¥)(Billion ¥)

(%)

120

10.0

600

200

766
705

720

183

692

596

170
150

162

135

133

90

84

100

91

60

5.6

5.8

Capital expenditures and depreciation

Net assets per share and equity ratio Note 2

Current ratio

(¥)

(%)

(%)

80

2,000

80

200

66

95
7.5

167

64

1,530

61

57

60

1,500

1,317

49

5.6

44
5.0

5.4

¥14.4 billion in deferred tax assets at the Company.

(Billion ¥)

6.3

76
70

400

U.S. tax authorities regarding the Advance Pricing Agreement (APA)
pertaining to transfer pricing, as well as the additional recording ofSales by geographical segment Note 1
—Asia
800

40

34

38

36

200

0

30

50

2012

2013

2014

2015

2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

0

2012

2013

2014

2015

2016

0

2012

2013

2014

2015

2016

2.5

20

0

0

1,405

1,100

42
1,000

35.1

882
32.0

66

year, as a result of a mutual agreement procedure between Japan andUnder these circumstances, the Group’s overall R&D expenses

inventory reduction.

37.6

40.5

2013

2014

2015

2016

0

2012

150

40

100

20

50

0

0

137

150

148

2014

2015

33.5

500

2012

60

150

2013

2014

R&D expenses

Capital expenditures

Net assets per share% of R&D expenses to net sales

Depreciation

Equity ratio (%)

2015

2016

2012

2013

2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201667

Management Discussion and Analysis of Operations

Profit Attributable to Non-Controlling Interests

times at the end of the previous fiscal year.

billion in the previous year), due to factors including a decrease in

Cash Dividends

Profit attributable to non-controlling interests includes interests owned

Note 2: Equity ratio: (Shareholders’ equity + Accumulated other comprehensive income) /Total assets x 100 (%)

inventories.

In the current Medium-term Plan, the Company seeks to “create aby non-controlling shareholders in Yamaha Motor Vietnam Co., Ltd.,
Yamaha Motor Taiwan Co., Ltd., PT. Yamaha Indonesia Motor

Net cash used in investing activities during fiscal 2016 was ¥46.5

stable financial foundation, and increase new growth investment andbillion (compared with ¥68.5 billion used in the previous year), whichstock dividends,” and sets the benchmark at dividend payout ratio of
30% of profit attributable to owners of parent.

Manufacturing, Industria Colombiana de Motocicletas Yamaha S.A., andCapital Expenditures

included ¥50.4 billion used for purchase of property, plant andIndia Yamaha Motor Pvt. Ltd., and increased ¥2.7 billion, or 31.7%,

The Group made investments of ¥61.3 billion in total during fiscal 2016.

equipment and intangible assets (¥67.5 billion).

The motorcycle business invested ¥32.0 billion for new products infrom the previous year, to ¥11.1 billion.

The Company has a basic policy of paying an interim dividend andNet cash used in financing activities during fiscal 2016 was ¥67.6

a year-end dividend. The decision-making bodies for dividends are theJapan and overseas, and for the transfer of production facilities ofbillion (compared with ¥6.8 billion provided in the previous year), which

Board of Directors for interim dividends and the General Meeting ofCapital Resources and Liquidity
Assets, Liabilities and Total Net Assets

multi-cylinder engines to Indonesia. The marine products businessincluded the repayment of loans payable and cash dividends paid.

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

invested ¥9.4 billion for new products, research and development, andAs a result of the activities discussed above, free cash flows for

Total assets as of December 31, 2016, increased ¥13.5 billion, fromthe restructuring of the domestic manufacturing system. The powerfiscal 2016 were a positive ¥96.6 billion (compared with a ¥40.0 billion

December 31, 2015, to ¥1,318.8 billion. Current assets fell ¥5.6 billion,

products business invested ¥7.1 billion, mainly for new products ofnegative free cash flow in fiscal 2015). Interest-bearing debt at the end

due to a decrease in inventories and other factors. Non-current assets

recreational off-highway vehicles (ROVs), and the industrial machineryof the fiscal year was ¥364.4 billion (a ¥45.8 billion decrease), andfor fiscal 2016. Added to the interim dividend (¥30 per share), this gaveincreased ¥19.1 billion as a result of factors including an increase in

and robots business invested ¥8.4 billion, primarily for the relocation of

cash and cash equivalents totaled ¥135.5 billion (a ¥27.9 billion

a total dividend for the year of ¥60 per share.

property, plant and equipment.

its office. The other products business invested ¥4.4 billion, mainly forincrease). Interest-bearing debt included ¥214.6 billion (a ¥12.2 billion

new products and research and development of electrically powerincrease) in borrowings for sales finance.

Total liabilities decreased ¥30.2 billion, to ¥743.4 billion, mainlyof Incorporation provides that the record date for the interim dividend
shall be June 30, and December 31 for the year-end dividend.
The Company decided to pay a year-end dividend of ¥30 per shareassisted bicycles.

from the repayment of interest-bearing debt.

Demand for Funds

Total net assets increased ¥43.7 billion, to ¥575.4 billion, which
included the recording of ¥63.2 billion of profit attributable to owners

Cash Flows

The Group’s fund requirements are primarily to cover the cost ofof parent, ¥18.2 billion of cash dividends paid, and a change in foreign

Net cash provided by operating activities during fiscal 2016 was ¥143.2

procuring materials and parts used in product manufacturing and costs

currency translation adjustment of ¥7.6 billion. As a result, thebillion (compared with ¥28.5 billion provided in the previous year),incurred in the manufacturing process, as well as purchasing costs forshareholders’ equity ratio as of December 31, 2016, was 40.5% (anwhich included profit before income taxes of ¥99.7 billion (¥122.6

products and merchandise, SG&A expenses, working capital and capital

improvement of 2.9 percentage points from the end of the previous

billion), depreciation of ¥42.4 billion (¥44.3 billion), and a decrease in

expenditures.

fiscal year). The net debt-equity ratio was 0.4 times, compared with 0.6

working capital of ¥9.8 billion (compared with an increase of ¥38.8

Total asset turnover

Property, plant and equipment turnover

Inventory turnover

Account receivable turnover

Interest-bearing debt anddebt/equity ratio(Times)(Times)(Times)(Times)(Billion ¥)(%)(Billion ¥)

2.0

6.0

6.0

14.0

480

200

1,000

4.6
1.5

1.3

1.3

4.7

4.8
4.3

4.5
1.2

1.2

0.5

2014

2015

2016

0

3.9

360

10.5
3.8

3.6

2013

2014

2015

2016

0

6.9

2013

2014

2015

2016

410

853
364

327
106.2

6.4

240

0

99.7

150

750

100

500

2012

2013

2014

2015

2016

0

2012

2013

899

551
87.8

83.6

68.2

120

3.5

2012

404

958

8.3
7.0

1.5

2012

383

10.9
4.3

3.0

1.5

2013

4.4

7.1
3.0

2012

4.5

1.1

1.0

0

4.9

Market capitalization

2014

2015

2016

331
50

250

0

0

2012

2013

2014

2015

2016

Interest-bearing debt
Debt/equity ratio (%)

68

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Yamaha Motor Co., Ltd. ⎜ Annual Report 201669

Organization

Management Discussion and Analysis of Operations

Yamaha Motor Co., Ltd., as of April 1, 2017

Fund Procurement Conditions

Forecast for Fiscal 2017

Group companies acquire short-term loans payable denominated in

In the fiscal year ending December 31, 2017, the Company expects

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

market conditions and business environment continue to be similar toand equipment investment come primarily from internal reserves,

those of the previous fiscal year. Under these conditions, the Company

including paid-in capital and retained earnings.

plans to maintain stable profits while steadily implementing medium-term

The annual amounts of interest-bearing debt to be repaid are as

Audit & Supervisory Board

Total
Short-term loans
128.5
payable1 year or 1 to 2
less
years

128.5

Long-term loans
235.9
payable53.9

2 to 3years

3 to 4years

4 to 5
years

—

—

—

—

—

51.1 102.5

11.8

16.5

—

Operating income

120.0 (+11.4, 10.5%)

Ordinary income

120.0 (+17.9, 17.6%)

Profit attributable to owners of parent

75.0 (+11.8, 18.8%)

Management Committee
Risk Management andCompliance Committee(Billion ¥)1,600.0 (+97.2, 6.5%)

Net sales

Note: The figures in parentheses indicate amount and percentage changes from the fiscal
year ended December 31, 2016.

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

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

Share Performance¥110 against the U.S. dollar (a depreciation of ¥1 from the previous fiscal

Price per share decreased from ¥2,744 at December 31, 2015, toyear) and ¥115 against the euro (an appreciation of ¥5 from the previous¥2,574 at December 31, 2016. The number of shares outstanding,fiscal year).

excluding treasury stock, increased from 349,221,663 shares at
December 31, 2015, to 349,235,122 shares at December 31, 2016.
As a result, the market capitalization of the Company decreased from¥958.3 billion at December 31, 2015, to ¥898.9 billion at December
31, 2016.

Interest coverage

Cash dividends per share andpayout ratio(Times)(¥)(%)(Times)80 46.6

48

48

60.00
33.2 36

36

24

24

32

29.5

24

60

16

40
9.6

40.00
20.6
26.00

11.1

Price/earnings ratio*Abbreviations:

20.4

16.0

20

8

44.2

44.00
25.6

12

12.5 12.5

12

14.2

NPM: New Personal Mobility

10.00
0

2012

2013

2014

2015

CEO: Chief Executive Officer
IT: Information Technology

5.0

PF: Platform
2016

Note: Interest coverage for fiscal 2012 is not listed, due
to the negative status of cash flow from operating
activities during the period.

0

2012

2013

2014

Cash dividends per share
Payout ratio (%)

2015

2016

0

0

2012

2013

2014

2015

2016

CS: Customer Service
IM: Intelligent Machinery
RV: Recreational Vehicle
SPV: Smart Power Vehicle
UMS: Unmanned System

70

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

Audit & Supervisory
Board Members’ Office

Board of Directors
President & CEO*initiatives. Consolidated financial results forecast is as follows.

follows:(Billion ¥)More than 5
years

Integrated Auditing Division

General Meeting of Shareholders
New Business Development Center

New Land Vehicle Business Development Section
New Venture Business Development Section
Financial Service Business Development Section
Human Resources & General Affairs Center
Human Resources Division
Global Human Resources Development Division
General Affairs Division
Risk Management & Compliance Division
Legal & Intellectual Property Division
Government & Industrial Affairs DivisionCorporate Planning & Finance Center
Corporate Planning Division
Finance & Accounting Division
Business Management Division
Process & IT* DivisionCorporate Communication Division
Design Center
Technology Center
Research & Development Section
Technology Planning Section
NPM* Business Section
Manufacturing Center
Manufacturing Planning Section
Body Manufacturing Section
Engine Manufacturing Section
Procurement Center
Engine Unit
Engine Development Section
Component Section
PF* Model Unit
Engineering Promotion Section
PF Model Development Section
Cost Innovation Section
Component Section
CS* Center
After Sales Section
Spare Parts Section
Motorcycle Business Operations
1st Business Unit
2nd Business Unit
Total Strategy Section
Quality Assurance Section
Marine Business Operations
Marine Engine Business Unit
Development Section
Boat Business Unit
Marine Business Section
Automotive Business Unit
Overseas Market Development Operation Business Unit
Vehicle & Solution Business Operations
IM* Business Unit
RV* Business Unit
SPV* Business Unit
UMS* Business Development Section
Pool Business Development Section
Yamaha Motor Powered Products Co., Ltd. (YMPC)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

71

Investor Information
As of December 31, 2016

Yamaha Motor Co., Ltd.

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

Headquarters

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

(Yen)

4,500

Date of Establishment
July 1, 1955

3,000

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

1,500

0
2012

2013

2014

2015

Trading volume

2016(Million shares)

450

Capital Stock300

Authorized: 900,000,000 shares
Issued: 349,914,284 shares
Number of Shareholders: 42,031

150

Principal Shareholders
Yamaha Corporation
State Street Bank & Trust Company
The Master Trust Bank of Japan, Ltd. (trust account)
Japan Trustee Services Bank, Ltd. (trust account)Toyota Motor Corporation
Mizuho Bank, Ltd.
Mitsui & Co., Ltd.
The Shizuoka Bank, Ltd.
Trust & Custody Service Bank, Ltd. (securities investment trust account)
Japan Trustee Services Bank, Ltd. (trust account 9)12.19%
9.73
8.20
5.54
3.57
3.38
2.45
1.95
1.79
1.60

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

0
2012

2013

2014

2015

Shareholder Composition
Securities companies

3.6%Japanese individuals
and others

7.8%
Foreign investors

31.1%

36.6%

Japanese financial institutions

20.9%
Other Japanese corporations

Securities ExchangeTokyo Stock Exchange, Inc.

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

AuditorFor further information, please contact:
Yamaha Motor Co., Ltd.
IR/SR Group, Corporate Communication Division
2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-37-0134
Facsimile: +81-538-37-4250
https://global.yamaha-motor.com/ir/

Ernst & Young ShinNihon LLC
You are also invited to review the Fact Book and Financial Dataon Yamaha Motor’s website at https://global.yamaha-motor.com/

72

Yamaha Motor Co., Ltd. ⎜ Annual Report 2016

2016

YAMAHA MOTOR CO., LTD.
2500 SHINGAI, IWATA, SHIZUOKA, JAPANwww.yamaha-motor.co.jp

Printed in Japan