Annual Report 2014
Year ended December 31, 2014

Increasing Corporate Value Through Sustainable Growth

Stakeholders

Corporate Philosophy

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

30 countries and regions, and about 90% of our consolidated net sales are derived from overseas markets. We operate
global development, production and sales networks, and our products are sold in more than 200 countries and regions.

Shareholders
and Investors

We have successfully diversified our business by capitalizing on our world-leading small engine, fiberglassreinforced plastics and electronic control technologies. Today, our proprietary technologies extend to a wide variety ofCommunication

products, including motorcycles, marine products, power products and surface mounters.

Employees

We will move forward with restructuring and the transformation of our management base for continuous growth,Business
Partners

to evolve Yamaha Motor into an excellent engineering, manufacturing and marketing enterprise, with a prominent
presence in the global market.

Business Activity
Long-Term VisionCorporate Mission

Kando * Creating Company

Basic Policies
of Internal
ControlMedium-Term Management Plan

Annual Budget Day-To-Day Operations

The Community
Basic Policies
of CSRThe Environment

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 or concept that provides exceptional value and deep satisfaction.
*Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that we experience when we encounter something of exceptional value.

Management Principles

1. Creating value that surpasses customer expectations
To continue to produce value that moves people, we must remain keenly aware of customer’s 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
As a good corporate citizen, we act from a worldwide perspective and in accordance with global standards. We must conduct our corporate
activities with concern for the environment and communities and fulfill our social responsibility with honesty and sincerity.

Action Guidelines

Acting with Speed
Meeting change with swift and informed action

Spirit of Challenge
Courage to set higher goals without fear of failure

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

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

1

Our Annual Report 2014 aims to provide a

Annual Report 2014 (Online Version)

comprehensive overview of Yamaha Motor’s
activities during the fiscal year ended December

An online version of this report is also available.
Please visit the following website:

31, 2014, including management strategies andhttp://global.yamaha-motor.com/ir/annual2014/

financial information, as well as corporate
governance, corporate social responsibility(CSR), and other areas that form the foundation
on which our business is built.

Information for Investors

In addition to the printed version, we havealso prepared an online version of this report.

Please refer to the following website for detailed financial
information and information regarding our business operations:With both a printed and an online version, we

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

hope to facilitate a better understanding of
Yamaha Motor.

Information Related to Corporate Social Responsibility (CSR)
Please refer to the following website for detailed CSR information:

http://global.yamaha-motor.com/about/csr/

Creating New Value
Tracing the Unique Style of Yamaha

CONTENTS
Creating New Value—Tracing the Unique Style of Yamaha 3
To Our Stakeholders
12
SNAPSHOT
14
Company Overview
16
Financial Highlights
18
Interview with the President
GROWTH STRATEGY
1. A Growing World of Personal Mobility
2. Marine Products Business:Competing in the 3-Trillion-Yen Global Marine Market
3. Commitment to Unique Versatility
CSR
Customers
Employees
Shareholders and Investors
Business Partners
The Community
The Environment

2

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

20

36
40
44

50
52
54
55
56
58

CORPORATE INFORMATION
Corporate GovernanceDirectors, Audit & Supervisory Board Members,
and Executive Officers
Comments from an Outside Director andOutside Audit & Supervisory Board Member
Organization

77
78

Financial Section
Five-Year Summary
Financial Data by Market
Management Discussion and Analysis of Operations

79
80
82

Investor Information

93

64
74

Notice Regarding Forward-Looking Statements
Statements in this annual report, except for historical facts, are forward-looking statements about the future
performance of the Company and its Group companies, which are based on management’s assumptions
and beliefs in light of the information currently available, and involve risks and uncertainties. Please beadvised 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.

Yamaha Motor Co., Ltd. ⎜ Annual Report 20143

発−GEN
Proposing original and innovative concepts

1955
4

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Noted for its novel chestnut red tone, the YA-1—our first motorcycle—featured
a distinctive design and engine that incorporated a number of concepts that
embodied the unique style of Yamaha. The YA-1’s strong finishes in races inJapan and overseas soon established Yamaha as a manufacturer of motorcycles.

2014

The TRICITY, our first LMW*, offers mobility that combines the maneuverabilityof a conventional two-wheeled motorcycle with a new sense of excitement.
This new concept model is set to attract new customer segments.
* Leaning Multi-Wheel

Yamaha Motor Co., Ltd. ⎜ Annual Report 20145

悦・信−Play・Sure
Creating outstanding technologies to maximize
pleasure and surety

1961

The P-3, our first product in the outboard motor market to earn major criticalacclaim, was the result of a development process that included determinedefforts to reflect the views of users. The P-3 earned a strong following not only for
its ability to lessen physical demands on commercial fishermen but also for its

2014

Yamaha’s next-generation, high-performance and compact BLUE CORE engine
delivers both the joy of riding and fuel efficiency and environmental performance.
This engine emphasizes high combustion efficiency, excellent cooling performanceand power loss reduction.

outstanding starting performance.

6

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 20147

魅−S・EX・Y
Design that expresses “refined dynamism”

1958

Yamaha’s YA-2 (125cc) motorcycle was the first motorcycle to win the Ministry of
1

International Trade and Industry’s* Good Design Award. GK (Group of Koike), a
group of students studying under Iwataro Koike, who at the time was an associate
2

professor at the Tokyo National University of Fine Arts and Music,* was responsible

2014

Based on a “Speed Racer” design concept, the YZF-R1 conveys the horizontal
image of a silhouette in pursuit of being the earth’s “fastest.” Expressing theessence of the incorporated YZR-M1 MotoGP machine technology, this completely
new type of pure sports bike enables the rider to experience this concept firsthand.

for the design.
*1 Currently Ministry of Economy, Trade and Industry (METI)*2 Currently Tokyo University of the Arts

8

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 20149結−TiesCreating strong ties with customers that last a lifetime

1970
10

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

In the early 1970s, we began expanding into emerging markets. Since thebeginning, our emphasis has been on not only providing highly reliable products
but also training local service technicians, thus enabling us to tailor our after-sales
services to local needs.

2014

Yamaha Motor began as a motorcycle manufacturer, but today the Yamaha
brand is known in a range of fields. People around the world will continue toride with us—a Kando Creating Company that offers new excitement and amore fulfilling life.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201411

To Our Stakeholders
Continuously pursuing the spirit of “Revs your Heart” to become
an excellent engineering, manufacturing and marketing enterprisewith a prominent presence in the global market

The “Revs your Heart” brand slogan that Yamaha Motorhave proven popular with customers and have increased our

introduced in 2013 is a shared goal of all of our employees atmarket presence. For Yamaha Motor, this has been a year ofGroup companies around the world. This means that we havetruly realizing the spirit of “Revs your Heart” in markets arounda strong desire to surpass the expectations of everyone who

the world.

comes into contact with Yamaha and deliver exceptional value

For the fiscal year ended December 2014, all businesses

and experiences that enrich the lives of our customers. To

recorded year-on-year growth in operating income, ordinary

achieve this, it is important to discuss, think about and pursue

income and net income.

the challenge of what it means to embody the unique style ofIn fiscal 2015, we will work to achieve maximum results

Yamaha, in all of our roles from planning and development tounder our current Medium-Term Management Plan (MTP) as

manufacturing and sales.

we approach the next MTP. We will continue to aim to be an

In 2014, we rolled out unique new products thatexcellent engineering, manufacturing and marketing enterprise

incorporate Yamaha’s exceptional originality, technology andwith a prominent presence in the global market, and strive todesign in markets around the world. We have also been working

further increase Yamaha Motor’s corporate value.

diligently at showrooms to create products with an impact that
go above and beyond everyone’s expectations. These products

Hiroyuki Yanagi
President, Chief
Executive Officer andRepresentative Director

12

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

April 2015

Takaaki Kimura
Executive Vice President
and Representative
Director

Hiroyuki Yanagi

Takaaki Kimura

President, Chief Executive Officer
and Representative Director

Executive Vice President andRepresentative Director

Yamaha Motor Co., Ltd. ⎜ Annual Report 201413

Progress of Yamaha Motor’s Medium-Term Management Plan

SNAPSHOT
Motorcycle Business

By reinforcing its business strategies, Yamaha Motor reached the targets set under its Medium-Term

Solid results in both developed and emerging markets

Management Plan (MTP).

Unit sales in developed markets rose in 2014, as total demand bottomed out and new products were launched. In emerging markets, unit

Medium-Term Management Plan: Management Targets

sales rose in India on an increase in total demand and new product introductions. ASEAN markets saw a decline in unit sales, however,Sales and profit grew in all segments, on sales growth from an expanded product lineup and increased sales of higher-priced products. We

owing to a drop in total demand ahead of new product launches. This resulted in a slight decline in overall unit sales.

are forecasting continued growth in consolidated sales and profit in all segments again in 2015, the final year of the current MTP.
Total demand(Ten thousand units)

Yamaha Motor

Developed markets

Net sales
2,000.0(Billion ¥)

India

ASEAN

2017
Ultimatetarget1,600
274
1,521.2

7.5%

1,207.7

1,211

1,209

266

261

2014
Target7.1%

1,410.5

1,254

1,434

1,700.0

1,500.0

1,700

361

5.7%

37

41

44

2013

2014

2015

46

57

72

2013

2014

2015

2013

324

2014

342

2015

5.0%
Marine Products Business3.9%
Total demand

Cost Reduction Strategies(Ten thousand units)

Yamaha Motor

Cost reductions during fiscal 2014 totaled ¥14.4 billion,

89

86

Cost reductions of ¥14.4 billion in
fiscal 2014 surpassed target

81

surpassing our target of ¥10.0 billion. We will continue to reduce
costs during fiscal 2015, to achieve the targets set in the MTP.

1.5%
Operating income
margin35
Operating income

18.6

55.1

2012

2013

37

87.2

New Launches

35

Launched unique, new products
2014

2014

2015

ResultResultTarget*ResultTarget*$80/€103$98/€130$100/€135*As of Feb. 12, 2014

$106/€140$115/€130*As of Feb. 12, 20152017

UltimatetargetOf the 250 new products
2013

2014

2015

Sales and profit growth in fiscal 2014
ROE

2.5%

12.7%

11.2%

16.2%

15.5%

15%

Progress was made in expanding the customer base and shifting the

ROA

0.8%

4.2%

3.8%

5.6%

5.8%

5%

business model toward higher profitability by leveraging Yamaha’s

EPS

¥21

¥126

¥129

¥196

¥218

¥200 or morebrand strength, including its comprehensive business capabilities,

scheduled for releaseby 2015, 63% werelaunched during 2013–2014, and we expect toreach 100% in 2015.

reliability and network.

14

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201415

Company Overview

PERFORMANCE
Based on our corporate mission of being a Kando Creating Company, Yamaha Motor is engaged in global
development, production and sales to provide customers with a diverse range of products.
Sales
Motorcycles

Marine Products

Power Products

Industrial Machinery and Robots

Other Products

Sales

Sales

Sales

Sales

Sales

1,521.2
Billion ¥% of Net Sales
Other Products
Industrial Machinery and Robots

2.6%

5.6%

Power Products

977.6

9.3%

Billion ¥Marine Products

18.2%

Motorcycles

276.4

142.2

Billion ¥38.9

Billion ¥86.1

Billion ¥Billion ¥Major products:

Major products:

Major products:

Major products:

Major products:

Motorcycles, knockdown parts for overseas

Outboard motors, personal watercraft, boats,

All-terrain vehicles, recreational off-highway

Surface mounters, industrial robots andAutomobile engines, automobile components,

production and intermediate parts for

FRP pools, fishing boats and utility boats

vehicles, snowmobiles, golf cars, generators,

wheelchair electric power units

electrically power assisted bicycles andproducts

small-sized snow throwers and multi-purpose

industrial-use unmanned helicoptersengines64.3%
Key Performance Data
2014 Motorcycle Shipments

R&D Expenses

Overseas Sales Ratio
Others
15.1%

5.80
Million units

84.5

North
America
18.7%
Europe
12.4%

Japan
10.7%

Asia
43.1%

250
ModelsBillion ¥Overseas

Marine Products Market Share

No.1

89.3 %

Yamaha Motor's engineering, manufacturing and marketing in markets around the world resulted in global

Each business proactively carries out research

Overseas sales in 2014 totaled ¥1,358.4 billion,

Yamaha Motor’s businesses will launch a total

The boat business had the largest share of theunit sales of 5.80 million units in more than 180 countries and regions.

and development, and the ¥84.5 billion inaccounting for 89.3% of total net sales.

of 250 new models during the three years fromJapanese market and the No. 1 share of the2013 to 2015.

global market for outboard motors and personalresearch and development expenses recorded
in 2014 marked an increase from 2013.

16

Number of New Models
to be Launched (2013–2015)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

watercraft.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201417

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

Net sales
Net sales grew 7.9% as a result of an increase in unit sales, owing to an expanded product lineup and an increasein the number of higher-priced products, coupled with yen depreciation versus developed market currencies.

(Billion ¥)

1,600

1,521

Operating income and operating income margin

Net income and net income margin(Billion ¥)(Billion ¥)

（%）

100

8

1,410

POINT

1,294 1,276

Profit rose as a result of increased sales and yen depreciation in developed markets, and increased sales and cost
reductions in emerging markets. As a result, operating income rose 58.2%, to ¥87.2 billion, achieving the current
MTP target (¥80.0 billion in 2015) ahead of schedule. Ordinary income and net income both grew by wide margins
as well.

1,200Millions of yen

1,208

75

For the year:
Net sales
Gross profit
Operating income
Ordinary income
Net income
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
Ratios:Operating income margin (%)
Return on equity (%)
Equity ratio (%)
Price/earnings ratio (times)
Debt/equity ratio (%)

2012

2013

2014

¥1,294,131
295,565
51,30866,142
18,300104,531(37,632)
66,8995,296
33,93936,594¥1,276,159
276,046
53,40563,49526,96033,328(46,517)(13,189)(51,927)45,04933,578¥1,207,675
235,068
18,59827,267
7,489(2,385)(51,081)(53,466)
15,761
48,78834,278¥1,410,472
318,765
55,13760,09244,057
66,976(62,679)
4,296
3,620
56,80036,407¥1,521,207
372,849
87,24997,27968,452
93,618(72,470)
21,148(8,908)65,871
37,66750¥ 900,420
309,914274,721

4.0
7.5
28.0
23.8
117.6

¥ 962,329
341,561
326,976

4.2
9.7
31.2
12.6
97.8

¥1,146,591
422,792
382,929

1.5
2.5
32.0
44.2
106.2

¥1,310,040
503,224
403,652

3.9
12.7
33.5
12.5
99.7

¥

55.50
55.50
785.61
0.00

¥

77.23
77.23
804.26
15.50

¥

21.45
—
881.88
10.00

¥

1,323
461,855¥974
340,018¥949
331,288¥

126.20126.201,099.84
26.00¥

196.06
196.04
1,316.58
40.00

31,61552,18432,25954,67732,873
53,958

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

0
2010

2011

2012

2013

0

2014

2010

2011

Net income per share

2012

2013

3.1

3.0

27.0
2.1

18.3

20

1.5

1.4

(¥)

0
2010

Operating income margin (%)(Billion ¥)

196

200

0

2014

Total assets and return on assets

2011

Net income

8

1,200

1,147

126

978

100

900

5.6

2014

(Billion ¥)

（%）

600

40

450

4

300

2

150

0

0

33.5

32.0

31.2
6

35.1
503

28.0

30

423

962

342
4.2

800

2013

Net income margin (%)

1,310
150

2012

Net assets and equity ratio

（%）

1,600

310

311

20

77
2.9
56
50

400

1.9

21
0
2010

2011

2012

10

0.8

0
2013

2010

2014

2011

Total assets

¥

55.4%
55.3
19.7
53.8

1,577
550,585¥2,442
852,68354.9%
54.9% change

29,47453,38230,416
52,6623.2%(1.3)

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.

18

2

18.6
1.5

2012

2013

0

2014

Return on assets (%)

Cash dividends per share

2010

2011

Net assets

Market capitalization

2012

2013

2014

Equity ratio (%)(¥)

Number of employees(Billion ¥)

40.00

40

(Persons)

1,000

60,000853% change

Persons

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

40% change

Millions of yen, except per share data

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

0

5.7
16.2
35.1
12.5
87.8

Yen

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

14.3%
19.0
5.4

4

4.5

4.5
44.1

3.9

4.0

Operating income¥ 978,343
310,809322,443

60

55.1

53.4
4.2

25

6

0.6
7.5

2014/2013
7.9%
17.0
58.2
61.9
55.4
39.8
15.6
392.2
—
16.0
3.5

68.5

5.7
51.3

800

% change

2011

6.0

87.2

400

2010

（%）

80

30

750

52,18454,677 53,958 53,382

52,662

2010

2011

2014

45,000

26.00
551
20

500

462

15.50

0

340
10.00

10

331

250

0
2010

30,00015,000

0
2011

2012

2013

2014

0
2010

2011

2012

2013

2014

2012

2013

Yamaha Motor Co., Ltd. ⎜ Annual Report 201419

INTERVIEWWITH THE PRESIDENT

Increasing Value ThroughGrowthHiroyuki Yanagi
President, Chief Executive Officer
and Representative Director,
Yamaha Motor Co., Ltd.

A Unique Company that Continues toAchieve Dynamic Milestones

Yamaha Motor achieved the target for operating income set forth in its current Medium-Term
Management Plan in 2014, a year ahead of schedule. In this section, President and Chief Executive
Officer Hiroyuki Yanagi summarizes the Yamaha Group’s business results in fiscal 2014 and outlines
growth strategies the Group will implement and management issues it will address in 2015 tofurther advance its performance as it works toward its ultimate target of consolidated net sales of¥2,000 billion in 2017.
In the following interview, the President addresses these key issues:
Can you give us an overview of business results in 2014, the second year of your Medium-Term Management Plan (MTP)?
What factors led to increases in net sales and operating income in each of your business segments?
Can you tell us about what sorts of initiatives the motorcycle business is promoting in developed markets?
What steps is the motorcycle business taking in emerging markets?
What can you tell us about initiatives in the marine business?
How are efforts in other businesses progressing?
What are you doing to foster new businesses?
Can you describe what management challenges you anticipate in 2015, the final year of your current MTP?
Can you tell us about your policy regarding returns to shareholders?
What are your strategies for growth in the years ahead?
In closing, is there anything in particular that you would like to communicate to stakeholders?

20

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201421

INTERVIEWWITH THE PRESIDENTQ1

Can you give us an overview of business results in 2014, the second year of
your Medium-Term Management Plan (MTP)?

Q2

What factors led to increases in net sales and operating income in each of yourbusiness segments?

We achieved our operating income target a year ahead of schedule.

Initiatives implemented in line with four key priorities began to yield solid results.

In 2014, global economic conditions remained uncertain, although signs of a rally were visible in developed markets, as stagnation

1. Launch unique new products

endured in emerging markets.

One target of our current MTP is to launch 250 new products incorporating creativity, technologies and design excellence thatIn the United States, improvements in the employment situation and personal income levels continued to support a gradualrevival. In contrast, Europe’s recovery stumbled, as Greece’s debt crisis reignited and currency instability persisted in Russia. In
Japan, consumer spending fell, despite further yen depreciation and persistently high share prices, as a consequence of a hike inembody the unique style of Yamaha in markets around the world. Our progress rate as of the end of 2014 was 63.0%, and we areconfident that we will meet this target in 2015.
Customer reception of these new products has been favorable, enabling us to enhance our presence in crucial markets.

the country’s consumption tax. Overall conditions in emerging markets reflected a lull in growth in the Association of Southeast
Asian Nations (ASEAN) region, China and South America, although India’s economy remained on the road to recovery.
In this environment, we promoted a variety of efforts in line with our MTP, formulated to guide our efforts from 2013 through

2. Change our approach to Monozukuri
With efforts to develop products using a new approach that centers on engine, frame, functional component and exterior component

2015, with a focus on such considerations as greater product competitiveness, changes to Monozukuri *, structural reforms andplatforms progressing, we began to bring new platform products to market. We also began to launch products planned andgrowth strategies. All business segments reported increases in net sales and operating income in fiscal 2014, the second year ofdeveloped with the goal of expanding our focus beyond the ASEAN region to the global market.
Concurrently, we took steps to create a business foundation that will balance product appeal and cost considerations, as

the plan, as we achieved our operating income target for 2015—¥80.0 billion—a year ahead of schedule.
Net sales in 2014 rose 7.9%, or ¥110.7 billion, to ¥1,521.2 billion, bolstered by the expansion of our product lineup, increased
sales of high-priced products and the declining value of the yen against the currencies of other developed markets. In addition towell as to trim purchasing costs through platform development and production and logistics costs through theoretical-valuebased production.

higher sales, the positive impact of yen depreciation surpassed the negative impact of elevated research and development (R&D)
expenses, among others, in developed markets. In emerging markets, the favorable influence of cost reductions exceeded the

3. Press ahead with structural reforms

detrimental influence of increases in procurement costs, among others, attributable to weak local currencies. Operating income

We entered the final stage of an ongoing initiative intended to realign our domestic production configuration from 12 factories andclimbed 58.2%, or ¥32.1 billion, to ¥87.2 billion, and ordinary income soared 61.9%, or ¥37.2 billion, to ¥97.3 billion. Net income,25 units at the end of 2009 to six factories and 13 units at the end of 2015. We also proceeded with efforts to restructure ourat ¥68.5 billion, was up 55.4%, or ¥24.4 billion.

operations in Europe from the current “One Company” format, under which organizational and operational functions are integrated

As of December 31, 2014, our net debt-to-equity (D/E) ratio improved to 0.6 times, from 0.7 times at the same point a year

into independent companies, to a “One Entity” format, wherein all functions are combined into a single entity.

earlier. The shareholders’ equity ratio was also stable, slipping 1.6 percentage points to 35.1% from the end of 2013.

4. Implement strategies for future growth* An approach to engineering, manufacturing and marketing products that emphasizes craftsmanship and excellence

We continued to implement strategies directed at securing future growth. These included establishing new companies andpreparing for the construction of plants with the aim of expanding our motorcycle business into Pakistan and Nigeria, augmenting

Details of Net Sales and Operating Income by Business (FY2014)

our financing business in North America and developing new businesses.

Achieve increases in sales and income in all business segments.
Motorcycles: The effect of sales increases, cost reductions, and yen depreciation outweighed the effects of currency
depreciation in emerging countries, resulting in income increase.
Marine: Income increased thanks to sales increases (introduction of larger engines, etc.), cost reductions, and theeffect of yen depreciation.
Net Sales (Billion ¥)OthersPower Products
MarineMotorcycles

1,410.5
112.2
126.7
243.4

928.2

Operating Income (Billion ¥)1,521.2
125.1
142.2

87.2
12.0
6.5

276.4
OthersPower Products

55.1
9.7
5.3

Marine

31.8

45.8

977.6
22.9
Motorcycles

2013($98/€130)

22

2014
($106/€140)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

8.4
2013
($98/€130)

2014($106/€140)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201423

INTERVIEWWITH THE PRESIDENTQ3

Can you tell us about what sorts of initiatives the motorcycle business is
promoting in developed markets?

Efforts are aimed at making the Yamaha brand even more attractive and at restoring
profitability.

We will work to balance product appeal
and cost considerations, while at thesame time expanding our motorcycle
lineup and introducing unique models
with the goal of making the Yamaha
brand even more attractive.

In 2014, total demand for motorcycles in developed markets bottomed out after having fallen steadily since the global financial
crisis. Against this backdrop, our shipments of motorcycles in developed markets rose 13.0%, to 414,000 units.
In the MT series, which has created a market segment unique to Yamaha, the MT-07 and MT-09 continued to garner rave
reviews from customers worldwide. We also launched the next generation of our flagship R1 superbike, a vehicle that overwhelms
with outstanding performance features, cutting-edge technologies and a stunning new design. Our exceptional MAX series of sports
commuters, which includes the TMAX, XMAX and SMAX models, also continued to earn high marks in key markets.
With total demand expected to recover further in 2015, we forecast an increase in shipments in developed markets to445,000 units. We will press ahead with efforts to launch unique new models with the aim of making the Yamaha brand evenmore attractive. We will also proceed with decisive structural reforms intended to restore the profitability of our motorcycle
business in developed markets.

Motorcycle Business: Developed Markets
2014: Total demand bottomed out (105%); sales increased (113%) thanks to new product launches.
2015: Continuing new product launches and structural reforms to bring the business to profitability.
Unit Sales (Thousand units)

Oceania

347
17

Main Initiatives

366
19

414
21

191
Europe

165

445
22

Making the brand stand out:
Launch of “unique new products” into the market
Pleasure

Model Brand
Positioning
206

162
Sports

24

76

79

92

North
America

71

Japan

94

109

123

125

2012

2013

2014

2015
Forecast

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

UtilityCommutingYamaha Motor Co., Ltd. ⎜ Annual Report 201425

INTERVIEWWITH THE PRESIDENT

Q4

What steps is the motorcycle business taking in emerging markets?

We are striving to increase brand power and to bolster sales and profitability.
ASEAN Region

India

Flagging economic conditions led to a 3.0% dip in total demand in the ASEAN region in fiscal 2014. For this reason, andTotal demand in India rose 12.0% in 2014. Thanks to the introduction of new models and the expansion of our sales network,

because the first half of the year was devoted to preparations for new product launches, our shipments for the year declined

our shipments were up 23.0%. Domestic sales and exports together totaled 740,000 units. In the high-growth scooter category,

9.0%. Beginning in summer, we launched the Nozza Grande, Grand Filano and Mio 125 ASEAN-region commuter bikes, the first

we introduced the CYGNUS , while in the brand-driving sports category we launched the FZS F1.

models based on the BLUE CORE next-generation engine platform, all three of which are mounted with 125cc air-cooled

In Chennai, in the south of India, we pressed ahead with construction of a new factory complex that will combine parts

engines. The BLUE CORE engine, which delivers both fuel efficiency and riding enjoyment, facilitates a 50% reduction in fuelmanufacturing, assembly and R&D facilities, as well as a “vendor park” housing production facilities of main external partsconsumption compared with 2008 scooter engines, leading the industry.

suppliers, in a single location. We also proceeded with construction of a new sales base. Both the new complex and the sales

In 2015, we will release the NMAX, an ASEAN-region sports commuter featuring a 155cc liquid-cooled BLUE CORE

base are scheduled to begin operating in early 2015. Having thus established a new production configuration in India, we willengine, in global markets. We will also take steps to increase brand power and achieve a recovery in regional sales andpromote efforts in 2015 to broaden our local product lineup and further reduce costs. We will also conduct promotional activities

profitability levels.

aimed at building strong relationships with local customers and capturing demand in provincial markets.

Motorcycle Business: ASEAN Market

Motorcycle Business: Indian Market

2014: Total demand decreased (97%); sales decreased (91%) because 2014 was model switch timing. Many newmodel launches are expected in 2015.
2015: Targeting recovery in sales and profitability through maintaining the strong sports category, strengthening the
AT category/full-scale introduction of platform models.
Unit Sales (Ten thousand units)
420

Main Initiatives

2014: Total demand increased (112%); sales increased (123%) thanks to new product launches.
2015: Carrying out product lineup expansion and implementing cost reductions through the new business structure.

Unit Sales (Thousand units)

Thailand

55

395
35

Vietnam

92

77

Malaysia
Philippines

30

34

896

380
25

358
22
64
34

242

249

237

178

739

67

651

38

190

488
Exports

Indonesia

Main Initiatives

Strengthening the brand:
Successive introduction of the 1st and 2nd BLUE CORE models

Sales Base

Vendor Park
R&D

140

718
567

"Fuel efficiency + Enjoyable ride"

250

172

Developing networks/customer base:
Building local market share (products/promotions)462
Domestic

348

Parts Manufacturing
2012

2013

2014

2015
Forecast

Nozza Grande

26

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

2012

NMAX

2013

2014

Body Assembly

New businessstructure in
Chennai

2015
Forecast

CYGNUSFZS FI

Yamaha Motor Co., Ltd. ⎜ Annual Report 201427

INTERVIEWWITH THE PRESIDENT

Q5

What can you tell us about initiatives in the marine business?

We are creating a business model capable of sustaining annual net sales of ¥300
billion and an operating income margin of around 20%.
Excellent overall business capabilities, reliability and network have enabled us to build exceptional brand power in this area.
In 2014, we reported a significant increase in sales of large marine engines in North America, bolstered by a recovery in total
demand in the markets for marine engines for lake, river and ocean craft and a steady shift in the focus of our product portfolio
from inboard to outboard motors.
Key new product launches included the large F175 and the medium-sized F115 engines; the F4, F5 and F6 small engines,
which are manufactured in Thailand; and the FX and FZS high output marine engines, featuring the Reverse with intuitive
Deceleration Electronics (RiDE) system, which employs an innovative dual throttle technology.
In 2015, we will endeavor to further expand our customer base by providing new value. Through these and other efforts,
we will continue to create a business model capable of sustaining annual net sales of ¥300.0 billion and an operating income
margin of around 20.0%.

Marine Products Business2014: Toward a high-profitability business model through brand strength(total business strength, reliability, network strength).
2015: Toward net sales of 300 billion yen and operating income ratio in the 20% range.
Net Sales (Billion ¥)Main Initiatives
Developing networks/customer base:Promotion of engine/peripheral equipment + boat strategies
276.4

Parts etc.
Boats
Water
VehiclesOutboard
Motors

196.3
25.7
28.6
25.9

116.1

243.4

34.1

33.4

38.6

33.7

42.7

290.0
36.1

Boat Strategy (U.S.)

39.2
44.7
Family37.7

26-31Ft

138.5

160.9

170.0

2013

2014

2015
Forecast

19-24Ft
14-16Ft

Personal

2012* Net sales of sport boats is reclassified from the water vehicles segment to theboats segment from 2014_2Q_business report onwards

10Ft
Jet engine

Outboard

Jet propulsion control

Integrated controls;
information technology

To enhance our presence, we will introduce products that provide
new value, as well as promote efforts to cultivate new market
segments and expand our customer base.

28

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201429

INTERVIEWWITH THE PRESIDENT

Q6

Q7

How are efforts in other businesses progressing?

What are you doing to foster new businesses?

Our emphasis is on promoting Yamaha’s unique versatility, which contributes to ouroverall growth and profitability.

We want to create a “growing world of personal mobility” that embodies the uniquestyle of Yamaha.

Recreational Vehicles (RVs)

We have identified the creation of a “growing world of personal mobility” as a key strategic focus that will direct our efforts to

We strengthened our lineup of recreational off-highway vehicles (ROVs) in fiscal 2014 with new launches including the six-person

expand the application of two-wheel vehicle technologies to three- and four-wheeled vehicles and to broaden our customer base.

VIKING VI and the SR Viper snowmobile.

One emphasis of this was the development of a “third-vehicle category” that incorporates our Leaning Multi-Wheel (LMW)In 2015, we will further expand our ROV lineup by introducing new products in the sports category, including an eagerly

technology.

awaited two-person edition of the Wolverine. In snowmobiles, we will promote a strategy aimed at building our share in North

We launched our first such vehicle, the TRICITY, in Japan, Europe and the ASEAN region. Thanks to solid support from target

American markets. We will also work to restore the ability of our recreational vehicles business to attain annual net sales in thecustomers in developed markets, sales of the TRICITY for the year exceeded our original forecast by 21.0%.

area of ¥100.0 billion and contribute to overall growth and profitability.

Recently, we announced the 01GEN, a new multi-wheel crossover concept model that represents a new direction in multiwheeled vehicle design. Inspired by our “refined dynamism” design philosophy, the 01GEN is the first model that embodies our

Industrial Machinery (IM)GEN design concept and the new value it promises customers.

A recovery in capital investment and the introduction of new medium- and high-speed surface units supported increased sales of
surface mounters in China and other Asian markets, as well as in Europe. We also formulated a strategy to steer our full-scale entry

Introduction of “LMW—the Third-Vehicle Category” to the Market

into the market for high-speed mounters and concluded an agreement for the transfer of certain related assets previously owned by

2014: Introduced the new category to the market, and achieved sales targets in developed markets (121%).
2015: Creating a new brand image to develop the customer base.

the Hitachi High-Tech Group. Having established a new development, production and sales configuration, in 2015 we will promote
efforts to attract customers and cultivate new markets.

Unit Sales (Thousand units)

Smart Powered Vehicles (SPVs)
39

Sales rose in the domestic market in 2014, bolstered by the launch of new models of electrically power assisted bicycles (E-bikes)
equipped with the PAS triple sensor. Despite concerns regarding the impact of Japan’s April 2014 consumption tax hike, sales
27

remained favorable throughout the year. We also commenced full-scale exports of the E-kit E-bike system kit to Europe.
In 2015, we will introduce new PAS models mounted with our new GREEN CORE next-generation smart power drive unit.

817

We will also expand our smart power business in Japan by launching the new E-VINO electric scooter, which offers both superb
ASEAN

6

Europe

6

Japan

5

performance and low cost.

RV Business

IM Business2014: Expansion of ROV/SMB ProductLineup Progressed.
2015: Return to growth and profitability
with net sales of 100 billion yen.

Net Sales (Billion ¥)
69.7

78.2

Net Sales (Billion ¥)

23.3

SMB
ATV
ROV

40.0

46.4

2014: Domestic sales increased (110%)
through introduction of new technologies,
full-scale export to Europe began.
2015: Expanding the smart power businessthrough ongoing introduction of newtechnologies and products.

38.9
30.8

10

2015
Forecast

2016
Target

01GEN

44.0

32.3

55.8

2014

8

PAS D/U Unit Sales (Thousand units)

79.0

2013

14
11

21.0

22.4

54.9
14.9

2012

100.0

2014

SPV Business2014: Recovery in equipment investment
demand, incorporating businesses ofother companies.
2015: Building share in the full-scale
high-speed mounter market, developmentof a new market category.

15

2015
Forecast

2012

2013

2014

2015
Forecast

306
232 3 53

349
80

Exports

190 4
186

229

253

269

Domestic

2012

2013

2014

2015
Forecast

SMB: Snowmobile

30

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201431

INTERVIEWWITH THE PRESIDENT

We will maximize the results of initiatives
undertaken under our current MTP and makepreparations for the start of our next plan.

Q8

Can you describe what management challenges you anticipate in 2015, thefinal year of your current MTP?

We will make preparations for the start of our next MTP.
In 2015, we will maximize the results of initiatives undertaken under our current MTP and make preparations for the start of ournext plan, which will guide our efforts from 2016 through 2018.
Committed to once again realizing increases in net sales and operating income in all business segments, we have set clear
objectives for each in the year ahead. In the motorcycle business, we will aim for net sales in excess of ¥1,000.0 billion and an
operating income margin in the area of 5% by pressing ahead with efforts to restore profitability in developed markets and toachieve a recovery in regional sales and profitability levels in emerging markets, thereby transforming this business into one
capable of stable net sales and operating income. In the marine products business, we will endeavor to create a business model
capable of sustaining annual net sales of ¥300.0 billion and an operating income margin of around 20% by promoting a growthstrategy centered on expanding key components of this business, namely, a combination of hull/engine strategy and peripheral
equipment. In the power products business, we will expand our selection of ROVs and other products with the goal of achieving
net sales of ¥170.0 billion and shifting from stable to high profitability.

Details of Net Sales and Operating Income by Business (FY2015 Forecast)Continue to achieve increases in sales and income in all business segments.
Motorcycles: Achieve profitability in developed markets and further improve income in emerging markets to reach
operating income ratio of 5%.
Marine: Reach operating income ratio of 20% through introduction of larger models and cost reductions.
Net Sales (Billion ¥)OthersPower Products

1,521.2
125.1
142.2

Marine276.4

Motorcycles

977.6

Operating Income (Billion ¥)1,700.0
130.0
170.0

120.0
13.5
10.5
87.2

290.0

1,110.0

OthersPower Products

12.0
6.5

Marine45.8

Motorcycles

22.9

51.0

45.0

2014
($106/€140)

32

Yamaha Motor Co., Ltd. ⎜ Annual Report 20142015($115/€130)

2014($106/€140)

2015($115/€130)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201433

INTERVIEWWITH THE PRESIDENT

Q9

Q10 What are your strategies for growth in the years ahead?

Can you tell us about your policy regarding returns to shareholders?

We will continue working to maintain a sound financial position and stable returns
to shareholders.

Our ultimate target for 2017 is consolidated net sales of ¥2,000 billion.
We have set forth three growth objectives that will guide our efforts for the foreseeable future: “fulfilling lifestyles,” “enjoyment inHaving recognized enhancing the distribution of profits to stakeholders as one of management’s highest priorities, we work
continuously to maintain a sound financial position by weighing the need for investments in future growth against the need topersonal mobility,” and “innovative technologies that harmonize with people, society and the Earth.”
Under these objectives, we have set forth four key strategies. The first is to “create a growing world of personal mobility,” in line

maintain stable profits and returns to shareholders. Accordingly, we view return on equity (ROE) and return on assets (ROA) as key

with which we are expanding the application of two-wheel vehicle technologies to three- and four-wheeled vehicles. The second is

performance indicators.

to “compete in the ¥3 trillion global marine market.” In particular, we are endeavoring to expand the scope of our businesses

At present, we forecast total shareholders’ equity in excess of ¥500.0 billion, net income per share of more than ¥200.00 and
ROE in the area of 15% in 2015.

through a combination of hull/engine strategy and peripheral equipment. Our third objective is to “commit to unique versatility.”
To this end, we will work to create new business models and expand our customer base. Fourth, we will “advance innovation,” that

We will determine dividends after giving comprehensive consideration to the business environment, including our performance,
retained earnings, and the need to balance forward-looking growth investments with returns to shareholders and loan repayments,

is, the development of new fundamental technologies, in such areas as robotics, Humax and engines.
In terms of strategic direction, our next MTP will focus on guiding our evolution as a unique company that continues to achieve

while maintaining a minimum dividend payout ratio of 20% of consolidated net income. In 2014, our annual dividend—which

dynamic milestones while at the same time taking corporate value to the next level. The plan also articulates three priority tasks:

included an interim dividend—was ¥40.00 per share. Based on our operating results forecasts for sales and income in 2015,“implement our growth strategies,” “pursue the unique style of Yamaha through Monozukuri (and break out of our current norms),”

we currently anticipate paying an annual dividend of ¥44.00 per share in 2015.

and “implement further fundamental reforms to increase management resource efficiency.”

Management Objectives/Dividends

Q11

Achieve results under the current MTP and step up to the next MTP:
Three growth strategies, unique Yamaha-style Monozukuri, and reform of the business foundation
Total dividend for the year: (2014) 40 yen, (2015) 44 yen forecast

We pledge to transform Yamaha Motor into a company that “Revs your Heart.”

Net Sales / Operating Income (Billion ¥)1,700.0

Announced in 2013, our global brand message, “Revs your Heart,” has been disseminated across the Yamaha Group and is firmly

1,600.0

1,521.2

established as a concept among employees worldwide. This slogan represents our strong desire to create exceptional value and1,410.5

experiences that enrich the lives of our customers and everyone involved with Yamaha, and surpass their expectations. To transform

1,207.7

this desire into reality, we will work tirelessly to communicate, consider and challenge our perceptions of the unique style of Yamaha

120.0

in all aspects of our operations, including planning, development, production and sales.

87.2

80.0

Net Sales

55.1

Total dividend
for the year:

34

continue providing products and services that enable you, our stakeholders, to truly feel the spirit of “Revs your Heart.” In these and

5.0%

18.6
1.5%

3.9%

2012
($80/€103)

2013($98/€130)

2014($106/€140)

2015
Forecast($115/€130)

10 yen26 yen40 yen44 yenYamaha Motor Co., Ltd. ⎜ Annual Report 2014

As we press ahead with efforts to evolve as a unique company that continues to achieve dynamic milestones, we pledge to

7.1%
5.7%

Operating
IncomeIn closing, is there anything in particular that you would like to communicate tostakeholders?

all our endeavors, I look forward to your ongoing support.
2015
MTP($80/€105)

2018
Next MTP

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

35

ER
OM
ST
CU

LMW
Our LMW* technology combines aparallelogram link mechanism, which
ensures naturally comfortable operation,
and a telescopic suspension, which
provides superb cushioning. The result isP

a whole new kind of driving enjoyment

CT
DU
RO

that combines agile, sporty handling andsuperb stability.
* Leaning Multi-Wheel

GROWTH STRATEGY# 01

Helm Master
The Helm Master not only controls all aspects ofoutboard operation digitally, but also features asingle joystick that enables 360-degree manual
motion and in-place rotation at low speeds.

A Growing World of Personal Mobility
TEC
H
GY
LO
NO
Stirring people’s hearts with excitement and emotion,

1LR-GUEThe outcome of joint development efforts
involving engineering, manufacturing andfront-line production staff aimed at realizing
an engine that could be manufactured in
extremely small lots with 100% consistentquality, the 1LR-GUE is light and compact,
yet delivers formidable torque and output.

like the building revs of an engine. This message
symbolizes the Yamaha brand’s mission. As a Kando
Creating Company, the Yamaha Motor Group seeks aunique experience that exceeds customers’ expectations
for value, satisfaction, and excitement, and provides

Performance Dampera “growing world of personal mobility.”

The Yamaha Performance Damper effectively controls minutedeformation and vibration in the chassis that occur when a vehicle
is in motion, thus improving both handling and riding comfort.

36

Yamaha Motor Co., Ltd. ⎜ Annual Report 201437

A Growing World of Personal Mobility

RiDE
The Reverse with intuitive Deceleration

GROWTH STRATEGY

TE
C
H
N

# 01

Electronics (RiDE) system for personal
watercraft makes it possible to control all
aspects of operation when the craft is inmotion from the handlebars. The result is an
intuitive, stress-free riding experience thatprovides both peace of mind and fun.

OGY
OL

GREEN CORE
GREEN CORE is a new concept for power drive
units that emphasizes both riding pleasure andenvironmental soundness. Compact and light, theGREEN CORE power unit nonetheless realizes
strong yet smooth power delivery.

BLUE CORE

Crossplane

A next-generation engine development

Our unique crossplane technology enhances engine

concept, BLUE CORE focuses on taking

responsiveness to achieve high levels of rider–machine

riding enjoyment, as well as fuel efficiency

unity. The rider becomes the protagonist, at one with theand environmental performance, to new

motorcycle, for a truly exhilarating riding experience.

levels. In line with this concept, we are

We have introduced this technology across our entire

implementing a broad range of engineering

motorcycle lineup in our efforts to provide this uniqueenhancements tailored to the nature of eachriding experience in all of our models.

C
U
S
T
OM
E
R

T
38

PR
O
D
U
C

individual model.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201439

Building a solid position as the No. 1
name in the marine products market
GROWTH STRATEGY# 02

Marine products business eyeing new growth opportunities
Yamaha Motor’s marine engines are globally known for their high performance, light weight andfuel efficiency. In addition, as the market shifts from inboard motors to outboard motors, Yamaha’s
products are also being recognized for their superior environmental features, giving Yamaha an
overwhelming presence in marine settings around the world.

Marine Products Business

The global marine products market breaks down as roughly ¥1.7 trillion for pleasure boats forleisure, and around ¥240.0 billion for fishing and other commercial boats. We are aiming forCompeting in the 3-Trillion-Yen Global
Marine Market

further growth by expanding our market share in the pleasure boat and fishing and commercial
boat markets in the United States and in emerging markets.

Establishing our presence beyond hulls
Yamaha Motor is working to grow its marine products business further by expanding its scope, witha broader product lineup featuring hulls packaged with outboard motors with advanced platforms“Competing in the 3-trillion-yen global marine market” is one of the themes ofand comprehensive controls.

Yamaha Motor’s growth strategy, under which we aim to expand the businessWe are also offering new value with our popular sports boats in North America. By pursuing a
combination of hull/engine strategy and peripheral equipment, we aim to leverage our comprehensive

through a combination of hull/engine strategy and peripheral equipment, and use

business capabilities and the reliability of the Yamaha brand, to build a highly profitable, comprehensive

our comprehensive business strength, reliability and network to enable theboating business with sales of more than ¥300 billion and an operating income margin of around 20%.

marine products business to grow into a highly profitable business with a strong
global presence.
Evolving into a highly profitable business through a combinationof hull/engine strategy and peripheral equipment
2013

Market volumes in global marine businesses
Japan/Emerging countries
Pleasure boats(Large models)

EuropePleasure boats (Mediumsized/Small models)

Net sales (Billion ¥)United States
Fishingboats, etc.

Engines

Outboard motors

F200

Personal watercraft

Boats

Parts, etc.

36.1
243.4

26%

33.4

43%

34.1
38.6

39.2

196.3
25.7

46%
33%

87%

28.6
29%

33.7

42.7

Outboard
motorsF9.9¥1.7 trillion

F4.5.6

FX

FX/FZ

138.5

FX/VX

SVHO
Personal watercraft

28%¥0.2 trillion ¥0.6 trillion ¥0.4 trillion
Market size: ¥3 trillion* Rigging: Meters, remote controls, and other outboard motor-related equipment fitted to the boat

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

F130

Manufacturing in Thailand
160.9

8%
5%

VF175

Small
models

25.9

116.1

41%

2017

Platforms, compact and lightweight models

170.0
43%

F115

Mediumsizedmodels

44.7

37.7

2016

Platforms, next-generation models and comprehensive controls

276.4

11%

40

VF165

2015

Large
models

290.0

Rigging*

2014

Lightweight and optimized models

2012

2013

2014

2015
(Forecast)

Note: Sports boat sales were reclassified from personal watercraft to boats from the second quarter of 2014.

19ft.-21ft.

24ft.

Sports boats

19ft.

Proposing new value

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

41

GROWTH STRATEGY# 02
Developed Markets

Emerging Markets

Technological Strategies

Diversification of boating value

Capturing markets with optimal
local productsTechnological advances that support our“combination of hull/engine strategy and peripheral equipment”

Focusing on the United States to expand businessscope and customer baseLocal production to address developmentof Chinese market

Repaying the confidence placed in the Yamaha brandWith unparalleled competitiveness in developed markets, we are

In emerging markets, we are increasing our points of contact withand peripheral equipment” is supported by comprehensive hull control

expanding our next-generation product lineup to create increasingly

customers in Russia and Brazil, which have large growth potential,

technologies and technologies to reduce the weight of outboard

diverse boating value through a combination of hull/engine strategy

and in China we are cultivating pleasure boat and fishing boat

motors.

and peripheral equipment.

markets under a basic strategy of “capturing the market throughIn the United States, the largest market, we are expanding our
product lineup by creating new categories in the sports boat

local production.”

In 2013, Yamaha announced the Helm Master outboard motor
control system that we jointly developed with Volvo Penta, and after

In China in particular, economic development has brought aboutbuilding this advantageous market position with comprehensive

market’s 19- to 24-foot class, which is Yamaha Motor’s primary

improvements in marinas and other infrastructure, and with more

control technologies, in 2014 we developed the RiDE technology forvolume zone, and addressing a range of customer bases frompeople enjoying marine leisure the pleasure boat market is growing.

intuitive and comfortable handling of personal watercraft.

individuals to families. We are therefore increasing our production

We have begun outsourced production of a 27-foot fishing boat in

In medium-sized outboard motors, we have developed a smaller,

capacity in the United States from the current 10,000 units underZhuhai in Guangdong Province, and we will accelerate our launches

lighter platform model, and in small outboard motors we are reducing

three brands. In outboard motors, we are launching a next-of pleasure boat products to address the growing number of people

costs through production in Thailand. We will continue to appeal to a

generation platform model to address the growing demand fortaking up fishing.

broad customer base by proactively offering new value in sports boats,large engines.

Helm Master

The marine products business’ “combination of hull/engine strategy

On the other hand, China’s fishing boat market still has

RiDE

by further improving our control technologies while also pursuing

approximately 500,000 used boats, mostly heavy wooden craft,lighter weights and product optimization.

in operation; so we see potential demand for lightweight, high-Pursuing a hull strategy targeting a wide range ofcustomers

Familyperformance fishing boats. Yamaha Motor maintains a joint
providing packaged boats that combine our FRP hull technology

Made in Mauritania

developed in Japan and our outboard motors.

Engaged in “business for societal value” since the 1960s

production center in Zhangzidao in the city of Dalian, and we are

DATA
Islamic Republic of Mauritania
Land area: 1,031,700 square kilometers(roughly 2.7 times the size of Japan)
Population: Approximately three million

Nouadhibou is a port city in northern Mauritania. A new shipyard was built there in 201426-31Ft

with technical assistance from Yamaha Motor. Over the half-century since we began

19-24Ft

Globally growing comprehensive boating business

14-16Ft

motorboat development in 1960, Yamaha Motor has developed proprietary technologies

Group companies with Yamaha Motor’s capital contribution

for building fiber reinforced plastic (FRP) hulls. In 1974, we began supplying technologies

Companies with Yamaha Motor’s technical support

to emerging market countries as a Japanese contribution to their social infrastructure

Personal

10Ft
Jet engine
Jet propulsion control

Outboarddevelopment, and today a total of roughly 78,000 boats have been built using the FRP
manufacturing technology we have provided to boat builders in 14 countries in the Middle

Integrated controls; information technology
RussiaG3
YJBM
Skeeter

East, South America, Asia and Africa.
DalianJapan

Dubai Zhuhai
Colombia

Moving You Vol. 7“Made in Mauritania: An Instructor-trainee Relationship without Borders”
http://global.yamaha-motor.com/yamahastyle/movingyou/007/index.html

Brazil42

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201443

Industrial-Use
Unmanned Helicopters

Covering one-third of Japan’s rice paddies
Yamaha Motor has been researching and developing industrial-use

GROWTH STRATEGY

unmanned helicopters since beginning development in the 1980s, and# 03

sales volume in the Unmanned System (UMS) business has been growing,

Commitment to Unique Versatility

record in rice paddy pest control in Japan and South Korea to develop

Unmanned helicopter sales

mainly for agricultural-use models. Yamaha products are currently used

(Units)in Japan for crop dusting on 1.04 million hectares (of which 930,000

300

Japan

Overseas

2011

2012

hectares are rice paddies), which translates to a crop dusting coverage
ratio of 37% for rice paddies* (Yamaha Motor estimate as of 2013).
200

The UMS Business Development Section is building on this track
new product applications. A business has also been launched in100

Australia, an application has been filed with the U.S. Federal Aviation
Administration for commercial unmanned flight operations, and

The Yamaha Motor Group’s commitment to create unique and diverse products andbusinesses underpins the Group’s growth strategy and embodies the concepts of “creating0

verification testing is under way in the United States for the use of

2013

2014

unmanned helicopters in vineyards. We are also working to expand thebusiness with preparations to enter the Thai and European markets.

Creating new business model for non-agricultural uses

fulfilling lifestyles,” “creating enjoyment in personal mobility,” and “creating innovativetechnologies that harmonize with people, society and the Earth”—as we seek to create

Japan’s domestic crop dusting coverage
ratio for rice paddies by type of equipment

new products and new businesses that express the unique style of Yamaha.

(Yamaha Motor estimate, 2013)

No dusting

Area used for rice paddy cultivation:
Land area where non-perennial crops suchas rice have been cultivated

COLUMN

unmanned helicopters efficient and safe to operate. They have been

2%

10%

* Crop dusting coverage ratio =Actual area dusted ÷ Area used for rice
paddy cultivation
Actual area dusted:
Cultivated land area dusted at least once
during the year

Yamaha Motor’s remote control technology makes our industrial-

Mannedhelicopters
Unmannedhelicopters

37%
Tractors, etc.

22%

used in Fukushima Prefecture for radiation monitoring since thetsunami-triggered nuclear accident there, and recently have also beenused for geomagnetic measuring around active volcanoes. We expect
demand to expand to a broad range of areas including disaster recovery,
disaster prevention and damage reduction, environmental surveys,

Power sprayers

29%scientific surveys, other types of measurement operations, and security.

Transforming agriculture from the air—The effectiveness of industrial-use unmanned helicopters

Jinichiro Yaegashi, from the Hanafuroshiki Agricultural Cooperative in Hanamaki, Iwate Prefecture, says, “Working
in the fields carrying a heavy tank for spraying is really tough.”
In addition to reducing the burden on farmers, unmanned helicopters support stable pesticide distribution
with a cruise control function that maintains the unit’s speed and altitude.
Yamaha’s newest model, the FAZER, was launched in 2013. Along with a higher engine output and a newcontrol system for better operability, this next-generation industrial-use unmanned helicopter is equipped with a
4-stroke engine with fuel injection, providing heavier load capacity with clean, quiet exhaust.
Yamaha Motor’s industrial-use unmanned helicopters are transforming agriculture from the air.

44

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

YAMAHA Revs Your Heart
http://global.yamaha-motor.com/
about/brand/

Yamaha Motor Co., Ltd. ⎜ Annual Report 201445

Electric WheelchairsPAS

JW Swing (recipient of 2014 Good Design Gold Award)
Yamaha Motor’s JW Swing electric power assist wheelchair received the

Next-generation drive units based on the
GREEN CORE concept

Good Design Gold Award at the 2014 Good Design Awards, organized

Yamaha Motor has developed next-generation drive units for electricallyby the Japan Institute of Design Promotion (JDP).

power assisted bicycles based on its new GREEN CORE concept, which
incorporates compactness, light weight and high functionality for an

The JW Swing is an electrically power-assisted wheelchair thatuses supplementary electric power in proportion to the burden of
handrim operation. This wheelchair was developed to expand the range

Smooth handrim
rotation

Easy to climb
hills!

Speed control
for safe downhill
descents!

Sales volume(Thousand units)

400

enjoyable drive while being environmentally friendly. We have maintained
the powerful, natural power-assist function with features including ourof mobility and support the independent lifestyles of wheelchair users

proprietary S.P.E.C. structure for precise control aligned to the gear

who are older or have disabilities.

position, and a triple sensor system. These drive units will be used in

300

200

Yamaha’s main models being launched from 2015, beginning with the

In addition to being easier to rotate the handrim, this lightweight,
durable wheelchair uses a separate battery unit in a sleek design that

PAS Natura series, and will also be supplied to domestic electricallyhides the fact that the wheelchair uses electric power.

power assisted bicycle manufacturers.

100

0

2011

2012

2013

2014

Expanding the electric wheelchair business using
innovative technologies that harmonize with people
In the field of health and welfare, Yamaha Motor released its first electric
power unit for wheelchair use, the JW-I, in 1995 in response to theaging of Japanese society. Since then, we have applied our proprietary,advanced control and drive technologies to offer electric wheelchairsthat are comfortable and convenient for users, and also reduce theeffort required by caregivers. To expand the range of mobility andsupport the independent lifestyles of wheelchair users, especially those
who are elderly, and for rentals covered by long-term care insurance,
we began developing our first completely assembled electric power
assist wheelchair, which led to the JW Swing.

Full-scale exports of drive units to Europe
In Europe, demand for electrically power assisted bicycles, known asE-bikes, reached 1.1 million units in 2014 (Yamaha Motor estimate),making Europe one of the world’s largest market for these bicycles.
In addition to our domestic businesses of selling completely
assembled bicycles and supplying drive units, we are expanding globallyby strengthening and expanding our ties with European bicycle
manufacturers through supplies of system kits for electrically power
assisted bicycles. We are already supplying several companies including
Winora of Germany, and are aiming for a total European market of
80,000 units in 2015.

Design concept model

02GEN

In November 2014, Yamaha Motor exhibited its 02GEN design concept for electric wheelchairs at the International
Conference for Universal Design 2014, held at the Tokyo International Exchange Center, and the new design concept was aconference highlight.
02GEN can be controlled swiftly and moves with elegance, while being adaptable to the needs of each individual user.
Incorporating the functionality and safety required of electrically power-assisted wheelchairs, this concept model pursues
comfort and beautiful posture when the user is seated, as well as a sense of synergy between the user and wheelchair.

46

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

47

CSR

Basic Policies of CSR
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 are dedicated toearning the trust of the global community, and we place great value on communicating with

Customers

50

all stakeholders. We expect all of our business partners to share our principles and to act in

Employees

52

accordance.

Shareholders and Investors

54

Business Partners

55

The Community

56

The Environment

58

Customers
We offer new excitement and a more fulfilling life for people all over the world through high-quality products
and services that combine safety and innovation.
We provide practical, helpful information about products and services to customers.
We make every effort to protect the personal information of our customers and others involved in ourbusiness.

Shareholders and Investors
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.

Employees
We provide equal employment opportunities to build a diverse and discrimination-free workforce.
We provide fair working conditions while maintaining and improving a safe and healthy working environment.
We maintain respect for human rights and never tolerate child labor or forced labor in any form.
We work toward building success for both our employees and the Company through honest communicationand dialogue founded on mutual trust.

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

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

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 and make efficient use of limited natural
resources.
We form wide-ranging partnerships with communities around the world to perform environmental
conservation activities.

48

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Yamaha Motor Co., Ltd. ⎜ Annual Report 201449

Customers

Aiming to be an engineering, manufacturing and marketing enterprisethat gives customers a sense of Kando*
We believe that Yamaha’s product quality is enhanced through ongoing, close relationships with our customers, and we expect

world of personal mobility for a smarter, more comfortable and moreenjoyable riding experience in cities around the world.

Yamaha’s involvement in a children’s event in Spain

Customer Service

all employees to constantly strive to enhance the quality of our products. To strengthen our customer-oriented approach andensure that customers’ views are reflected in our engineering, manufacturing and marketing, the Yamaha Motor Group willcontinue to pursue improvements in quality so that we can deliver products with an even higher level of customer satisfaction.
Our relationship with customers is one of the core components of our CSR policy, and the following are some of our priority
initiatives related to customers.

In October 2014, the largest children’s event in Europe was held inBarcelona, Spain, with the two-day event attracting more than 350,000

Yamaha Motor held the “6th Yamaha Technician Grand Prix 2014.”

people. At the event, YMESM* hosted a rider training area for children

Twenty Yamaha motorcycle service people (mechanics from both

between the ages of 2 and 6. Around 3,000 children participated, which

dealers and distributors) from 18 countries and regions competed in all

included an explanation of the benefits of commuting by motorcycle inaspects of service skills and knowledge.

Barcelona. All of the participants then got the opportunity to ride theThis contest is part of the unique Yamaha Technical Academy (YTA)* 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.

Riding Safety Promotion Activities

program launched by Yamaha Motor in 2000, with the aim of providing

Yamaha Kids’ Wooden Bikes in the Yamaha Academy circuit.
* Yamaha Motor España Marketing S.A.

Yamaha customers worldwide with the same superior technical service
and fostering a spirit of “One-to-One Service” that strengthens Yamaha’s

Working to Improve Quality

Offering New Excitement

YMTT* invited 39 major Taiwanese suppliers to attend one of the Quality

The “TRICITY” is a next-generation city commuter equipped withservice that helps build loyalty and customer satisfaction, service

Conferences held in Taipei and Kaohsiung in July 2014. At these confer-

Yamaha’s exclusive Leaning Multi-Wheel (LMW) mechanism, whichmechanics from Yamaha dealerships around the world participate in theences, YMTT gave presentations on the “quality activities” of 2014, andenables the two front wheels to lean with the chassis when cornering.

YTA program and compete in local and regional contests designed to

introduced the Purchased Products Quality Assurance Manual. From

Both front wheels feature independent suspensions with a link mecha-

improve their service skills and heighten their sense of pride as part ofthese presentations, Taiwanese suppliers gained a good understanding

nism that provides excellent adaptability to changes in the road surface

the global Yamaha Motor Group.

of the background and purpose of each activity, and are now set tofor a more comfortable ride, even with a tandem passenger or on

http://global.yamaha-motor.com/news/2014/1006/wtgp.html

move ahead as one in terms of quality improvement and customer

cobblestone streets or other types of rough road surfaces.

satisfaction, and to continue supplying good quality parts to global

relationship with customers. With the important goal of providing quality

The largest children’s event in Europe(Barcelona)

Yamaha’s desire to build a model that radiates an attractive sense

Yamaha.

of familiarity to as many people as possible revealed itself in all aspects* Yamaha Motor Taiwan Trading Co., Ltd.

of the TRICITY’s development process. It began by designing a chassisthat was compact and lightweight for greater ease of use (chassis widthcomparable to the current Yamaha 125cc class scooter models), and it
is also seen in features like the flat footboard that makes getting on andoff the model especially easy for women. Throughout the model are
specifications and functions selected and designed with a wide range ofusers in mind.
The TRICITY represents Yamaha’s idea of a new standard fornext-generation city commuter bikes. This standard will expand the
6th Yamaha Technician Grand Prix 201450

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

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Employees

Creating an organization to facilitate co-ownership of value from a global perspective

Workplaces Thriving on Diversity

The Yamaha Motor Group strives to create workplaces that respect diversity, with the aim of achieving an organizational

Based on our fundamental belief that “all corporate activity originates

structure based on sharing ideas and the same high ambitions and spirit, cooperation and joy in our work among thefirst of all with and for people,” the Yamaha Motor Group has clearlyCompany and its employees from a global perspective.

defined its stance on human rights in its Basic Policies of CSR and Codeof Ethics.

Nurturing Personnel and Supporting
Their Careers

Supporting Work–Life Balance

Main Activities
1. Raise the percentage of women hired
2. Provide a working environment that is more hospitable to employeeswith young children
3. Support career planning and the development of broader and deeper
capabilities to increase women’s participation in the workforce.

In accordance with our policy of “operating workplaces where thedisabled can work together with the able-bodied,” Yamaha Motor has

Supporting Employees in Maintaining
a Healthy Mind and Body

Aiming for a workplace environment that fosters autonomous

established the Disabled Employment Promotion Committee, and is

Developing human resources for global leadershipcreativity

working to improve the workplace environment through measures such

Yamaha Motor Co., Ltd. set up a committee to discuss and share

The Yamaha Motor Group defines its relationship with employees as a

as having analyses of organizational work and other tasks conducted by

Yamaha Motor promotes a wide range of initiatives for helping

business challenges with top managements of Group companies and isbusiness partnership, and the Company’s role as providing an attractive

committee members assigned to each division. As of December 31,

employees maintain and improve their emotional and physical health.

urgently pursuing aggressive initiatives to nurture personnel for positions

workplace for autonomous individuals. We aim to create workplaces that

2014, the Company employed 78 severely disabled persons and 65

with global responsibility in the worldwide Yamaha Motor Group, by

maintain a diversity of working styles and a positive work–life balance

mildly disabled persons, thus achieving a disabled employment rate ofprevention of and recovery from lifestyle-related diseases. For instance,

promoting talented employees at overseas Group companies to the top

by supporting career advancement plans based on mutual assumptions,

1.96% (143 persons in total). From April 1, 2013, the Japanese

we support endurance improvement and obesity prevention throughmanagement positions and accelerating overseas work experiences

providing programs for child and nursing care leave, among othergovernment raised the legally mandated disabled employment rate toexercise habits, such as by hosting walk rally events and holding theamong Japanese employees, in line with the globally growing business.

efforts. We are also expanding the options for employees so that they

2.0% from 1.8%, and Yamaha Motor is implementing additional

Walk, Walk Campaign twice a year. In partnership with a healthcan work in ways that suit their individual circumstances.

measures to raise the number of employees with disabilities. We will

insurance association, we have also been providing antismoking

continue to promote the hiring of persons with disabilities going forward,

products and are teaching smoking cessation skills to interested

as we seek to create a society in which persons with and without

employees to help them in their efforts to quit smoking.

The second Global Executive Program (GEP) commenced in
January 2014. The GEP is a training program aimed at nurturing
talented individuals for future leadership roles within the Yamaha Motor
Group and creating a global network among students who are attending

Workplace Safety and Healthdisabilities can live and work together.

We are committed to creating healthy and vital workplaces for the

Measures to reduce smoking rates and prevent second-handlectures under this program. Fifteen trainees from nine countries were

Creating a workplace environment that offers peace of mind

selected for this year’s GEP, which involved participating in discussions

and comfort

emphasize diversity, through in-house child care facilities, parental leavesetting up smoking areas outside offices, and creating support programs

that focused on the future image of the Yamaha Motor Group.

Led by its Central Safety and Health Committee, Yamaha Motor isprograms, and flexible working hours, and has received various awards

for persons trying to give up smoking, which resulted in a decrease inpromoting the establishment of safer working environments globally.

including the Prefectural Governor Prize regarding Activities forthe smoking rate among employees, to 29.7%. In terms of support for

Risk assessment is performed in accordance with the Occupational

Promoting the Equal Participation of Men and Women in Society and themental/emotional health, we have continued to engage in efforts such

Safety and Health Management System (OSHMS) to detect potential

Family Friendly Company Award. Going forward, we will continue toas health guidance given by occupational health physicians, mental/

dangers or harmful conditions at workplaces, and measures are taken

actively work to increase opportunities for women to participate in theemotional health seminars for new managers and supervisors, andto prevent occupational accidents. Through job-specific education andworkforce, while at the same time promoting systematic human

support for expatriates and mid-career recruits.

training, such as safety manager training programs and skill

resource development, with the aim of a twofold increase in women in

improvement programs for supervisors, as well as holding occupational

management positions by 2020 and a threefold increase by 2025.*

safety and health meetings, we are focused on developing human* Both goals are in comparison with 2014 data.

Yamaha Motor has always striven to create workplaces thatsmoke during 2014 included restricting smoking to certain times,

resources that can support occupational safety.

52

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201453

Shareholders
and Investors

Business
Partners

In order to ensure accountability by providing shareholders and investors
with appropriate, accurate and timely information, Yamaha Motor has
established a specialized division which engages in IR activities inside

Information for shareholders and investors isavailable on the websites below

shareholders’ meeting, the division visited and held meetings withoverseas investors, provided information via the IR website, andoperated a website to provide information to individual investors. To
even more proactively disseminate information, the division held abusiness briefing for analysts and journalists, and made a video of theDisclosure Policy

numerous suppliers in Japan and other countries. As our procurement

http://global.yamaha-motor.com/ir/policy/

and sales structures expand with our increasingly global business, theDividend Policy

Yamaha Motor Group is establishing cooperative relationships with

http://global.yamaha-motor.com/ir/shareholder/dividend/

suppliers and dealers in Japan and around the world based on a spirit

For Investors (index page)of mutual trust and mutual benefit. For this reason, we strive to conduct

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

fair business in compliance with the competition laws of all countries
and regions while working to create partnerships that aim for mutual,briefing publicly available on the Company’s website to enable all

sustainable growth.

shareholders and investors better understand Yamaha Motor’s businessstrategy.

http://global.yamaha-motor.com/ir/report/pdf/2014/Yamaha-motor_
Business_information_session_en.pdf

http://youtu.be/Oih-M2a6hzM(which cover areas related to safety, quality and compliance).

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

Materials from the business briefing (September 12, 2014)

Video of the business briefing

efficient use of resources and energy) and CSR Guidelines for Suppliers

Yamaha Motor products are created through collaboration with

as well as outside Japan.
In addition to quarterly earnings briefings and the annual

A Global Procurement and Sales Network basedon a Spirit of Cooperation and Fairness

IR website

Activities in Supply Chains

Co., Ltd. play an important role in building ties with local communities

The Yamaha Motor Group regards its relationship with the supply chain

and society by cooperating in a range of measures including motorcycle

not just as conducting procurement, but as procurement that

infrastructure development, motorcycle etiquette training, motorcycle

emphasizes the incorporation of both cost and quality into its

recycling, tree planting, and other environmental campaigns, as well as

engineering, manufacturing and marketing. An example of thesefundraising for seeing-eye dog training.

activities is the implementation of “theoretical-value-based production”
with suppliers. This does not simply mean demanding cost reductions,but instead involves analyzing the absolute value of engineering,
manufacturing and marketing together with suppliers and then working
together to find more ways to improve cost competitiveness. We havetrained some of our employees to serve as “theoretical-value
instructors” in order to promote the implementation of “theoreticalvalue-based production” at suppliers inside and outside Japan as an
initiative to strengthen our cost competitiveness in concert with them. In
addition, we are promoting fair and clean procurement activities globally
through training programs covering our Green Procurement Guidelines(detailing how to reduce our environmental impact and ensure the54

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201455

Environmental Conservation

helps to solve issues directly faced bynurseries, schools, and foster care

The
Community

Using Yamaha products in cleanup activities at Lake Hamana

homes for children near its

Yamaha Motor’s personal watercraft business uses Yamaha products tocompanies.

protect the natural environment through cleanup activities at Lake
Hamana. Yamaha personal watercraft, sports boats and utility boats

undertaken by TYM*1 in Thailand to make bricks for the construction of aapproach from the lake and land on the shore on the day of cleanup

library at Wat-Sammakan school. Around 100 employees and Yamaha

activities. Using boats on the water to clean the shore areas makes it

Club members worked together to mix the clay, shape the bricks, and dry

possible to clean shore areas that cannot be approached by land,them in the sun.

expanding the area that is cleaned.
At the most recent event, the fourth of these cleanup activities, 64participants including Yamaha Motor employees used personal watercraft
to cover approximately 5.5 kilometers of beach area at the Osaki shore,
The Yamaha Motor Group operates in locations around the world, and

The Yamaha Motor Group carries out activities to fulfill its corporate

One of these projects was

Also in Thailand, 60 employees of YMPT*2 went to Watsrihalothaischool in Chonburi Province, which had been damaged by floods in
September 2014, to repair and paint fences and gates.
In Argentina, YMARG*3 donated school items to a foster care home

and in roughly two hours collected 85

for children, and each year the Company visits a foster care home toour business activities help support those local communities. Oursocial responsibility in four main areas: developing future leaders,bags (about 100 kilograms) of

make repairs to the facilities and visit with the children.

products also play a role in enriching the lives of people around theenvironmental conservation, improving traffic safety, and community

garbage, which were delivered to theworld. We recognize the importance of maintaining a sustainableissues. By focusing the social contribution activities carried out by Group

Kosai City sanitation department for*1 Thai Yamaha Motor Co., Ltd.
*2 Yamaha Motor Parts Manufacturing (Thailand) Co., Ltd.
*3 Yamaha Motor Argentina S.A.

relationship through which the Company and local communities cancompanies on these areas and sharing information internally, we aredisposal.

coexist and mutually prosper, and to achieve this, we place great

continuously fostering an awareness that will lead to the creation ofimportance on maintaining and enhancing a relationship of trust throughcommon social value (CSV). The following are some highlights of ourdaily communication with stakeholders in those communities.

social contribution activities in 2014.

Improving Traffic Safety

Important Areas of Activities Contributing to Society
Global Issues
Key Themes

Developing Future Leaders

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

Environmental Conservation

Improving Traffic Safety• Environmental education for local
communities• Respecting biodiversity• Providing traffic safety education
to the community• Raising awareness

Developing Future Leaders

Employee Volunteer Activities
Volunteering through sports activities
The Yamaha Motor Group has held theHolding Yamaha Riding Academies around the world“40,000 People’s V Campaign” since

Local Issues

Yamaha Riding Academies (YRAs) are held primarily in Asia, but also in

2004 to raise awareness among

Community Issues

Europe and the Americas, for people who intend to obtain a motorcycle

employees about volunteering and• Supporting the community with
Yamaha Motor’s products, humanresources, and know-how

license as well as for people who already have licenses, from elementaryprovide an impetus for participating inschool to high school students. In addition to motorcycles, YRAs forvolunteer activities. The aim is for each employee to participate in one

all-terrain vehicles, snowmobiles, and personal watercraft are held involunteer program annually, which translates to 40,000 people acrosssome regions.

the Group making a social contribution each year.

are hired as employees by IYM.

In India, taking advantage of the fact that scooters are purchased

Shizuoka Prefecture, where Yamaha Motor is headquartered, isby families, we held a riding training program targeting housewives.

one of Japan’s best-known regions for soccer and baseball, and more

support their families, IYM is helping to raise the social position of

Programs are also held regularly

than one-third of our roughly 39,000 employee volunteer programs each

women in India by giving them the confidence to know that they are able

across India in residential areas withyear are related to sports. Yamaha Motor supports employees’ volunteer

condominiums, with the aim ofactivities with a site on our internal intranet that enables employees topreventing accidents by teaching safe

establish groups with a shared interest. One of the groups that has been

programs for women. Under these programs, 160 women have received

riding and compliance with trafficcreated via this site is the Yamaha Motor Rugby School.

training in engine and body assembly on the scooter manufacturing line

regulations.

Supporting women’s increased social participation
To raise the social position of women in India and encourage theiremployment, IYM* has partnered with the government of Uttar Pradesh
in northern India since September 2012 in holding worker training

In addition to providing an opportunity for women to earn wages toto contribute to society.
* India Yamaha Motor Pvt. Ltd.

at our factory in Surajpur, Uttar Pradesh.

members of the Yamaha Motor Rugby Club, and uses rugby instruction

During this apprenticeship, trainees are paid wages and are also
eligible for the same benefits as employees, including lunch, medical

The Yamaha Motor Rugby School is primarily run by former

Community Issues

and activities to cultivate a sense of cooperation with friends andconsideration of others, and promote physical fitness.

services, and transportation allowances.
After three years of on-the-job training (OJT), participants who

56

Supporting local schools

pass a test receive a certificate of qualification from an industrial training

In addition to donating scooters and motorcycles and providing technicalfacility, which they can present to prospective employers. Top trainees

guidance to schools and kindergartens, the Yamaha Motor Group also

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

57

The
Environment

Strive to harmonize with the environment for sustainable social development
The Yamaha Motor Group aims to be a company that fulfills its corporate social responsibility by striving to maintain harmony

Activities to Identify and Reduce Both Direct
and Indirect Greenhouse Gas Emissions

with the environment and society based on Yamaha Motor Group Environmental Plan 2020, formulated in 2010.

The Yamaha Motor Group endeavors to identify greenhouse gas emissions

The Yamaha Motor Group Organizational Structure forEnvironmental Planning and Promotion
Environment Committee
Yamaha Motor Function Section

resulting both directly (e.g., from the burning of fuel at factories) andYamaha Motor Group Environmental Plan 2020
Action Areas

Eco Products

Eco Operations

Eco Management

Eco Mind

Consolidated Subsidiaries

indirectly (e.g., from electricity use at factories and offices) from its

Plan for Environmental Activities

Raise environmental attractivenessthrough product development fromthe perspectives of the environmentand customers

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

Priority Actions

2020 Targets

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

corporate activities in each location in which it operates, and to reduce

Working group on reduction of CO2
from product logistics

Japan

Companies

those amounts. In 2014, we were able to reduce the total amount ofWorking group on reduction of CO2
from R&D activities

North America

Companies

EuropeCompanies

Oceania

Companies

Asia

Companies

emissions compared with 2013 through measures including the
introduction of energy-saving equipment, even though production volumes
increased.

• Reduce risks from environmentally hazardous substances• Implement green procurement

Identify environmentally hazardous substancesand support the use of alternatives

Reduce emissions of greenhouse gases

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

Support the effective use and recyclingof limited resources

Create and operate Groupwide environmental
management systems

Link Groupwide operations with local activities

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

In 2014, the Yamaha Motor Group installed its first heat pump-type*Working group on waste reduction

Companies

heating system at an overseas factory, to reduce electrical consumption inCentral & SouthAmerica

Working group on reduction of paint
VOCs

China

Companies

surface processing. This was the Group’s third heat pump systeminstalled, following the Fukuroi Minami Factory in 2011 and the Hamakita
Factory in 2013.

China

7%

Central & South America

5%

We plan to install heat pump systems at other factories in Japan

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 froman environmental perspective

Well received by the community as anenvironmentally advanced company

Japanand overseas going forward. We will also work to more precisely measure
direct and indirect emissions in each location, and to further reduce
emissions at all factories and offices.

28%

Direct emissions
Amount of CO2
emissions by region

Asia

43%
North America* A heat pump uses the natural principle that vapor becomes warm when compressed andcools when expanded, to pull in and use heat from the surrounding air. This energysaving technology creates a large amount of thermal energy with only a small amount of

12%
EuropeOceania 4%

1%

energy input.
China
Central & South America

1%

Organizational Structures for Promoting
Environmental Management
The Yamaha Motor Group has established an Environment Committee,
chaired by the Executive Vice President, as the central organization
responsible for the Group’s environmental activities in Japan and overseas.

58

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Japan

The committee deliberates on policies and visions for the future concerning

23%

Indirect emissions

environmental initiatives, medium- and long-term environmental policies,(Electricity consumed on an
equivalent basis)strategic investment proposals relating to environmental preservation,

Amount of CO2
emissions by region

environmental monitoring topics and responses to issues, and other key
issues relating to environmental management.

7%

North America

10%
Asia

58%

Europe1%
Oceania0%
Heat pump at factory in Chennai, India

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

59

The Environment

Yamaha Motor Group CO2 Emissions

CO2 Emissions at the Yamaha Motor GroupAs a manufacturer of motorcycles and other transportation machinery, the Yamaha

CO2 emissions(1,000t/CO2)

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

1,000

critical environmental issue facing the world today.

of our business activities including product development and manufacturing.

116%

Development of electrical power drive units for bicycles based on GREEN CORE concept

120

Yamaha Motor has developed next-generation electrical power assist drive units for bicycles based on the GREEN CORE concept for smart

100%

100

800

power drive units. These units deliver an enjoyable ride with superior environmental performance due to their compactness, light weight, and82%

We are targeting an annual 1% reduction in CO2 emissions per unit of sales
as a common goal for the entire Group, and are working to reduce emissions in all

TOPICSPer unit of sales(Indexed to 2013 = 100)
(%)

621

619

600

80

584

high-performance capability—and are being successively rolled out in 2015. These new models achieve a compact, ultra-light weight for a

60

chain resultant force-type unit, with a significant reduction in the amount of rare earth metals used, for high performance in a compact drive

40

unit that achieves the same maximum power as existing units. The weight of the bicycle is further reduced with the use of a lightweight

20

aluminum frame, which, combined with the drive unit’s low center of gravity, makes it easy to drive. These stylishly designed drive units will be

400

We began working to reduce global utility costs in 2013, with the aim of200

establishing both economic and environmental considerations (CO2 reductions). We

00

are also increasing the efficiency of the overall Group by providing the energysaving technologies developed in Japan to Group companies in Japan and overseas.

2012

CO2 emissions

2013

2014

successively installed in major 2015 PAS models, beginning with the Natura series,
and will also be supplied to electrically power assisted bicycle manufacturers in Japan.

Per unit of sales (Indexed to 2013 = 100)

In 2014, we reduced CO2 emissions per unit of sales by 17% compared with 2013,

We will also continue to develop new drive units based on the GREEN CORE concept
going forward.

resulting in cost reductions of roughly ¥2.3 billion. The Group’s CO2 emissions were

Main features of GREEN CORE-based next-generation drive units

reduced by 35 thousand tons, to 584 thousand tons. Going forward, we will step up

1. Compact and lightweight: Reductions of roughly 16% in size and 20% in weight

efforts to reduce energy consumption at domestic and overseas Group companies,

2. Low center of gravity: New structural design with center of gravity lowered by 12mm

aiming to raise our environmental and economic performance on a global scale.

3. High-performance and power: The same 100Nm maximum torque as existing drive units
4. Environmental considerations: Reductions of 35% in the amount of rare earth metals, 28%

Kerosene
Gasoline 0% Light oil

Energy Input at the Yamaha Motor Group3%in the amount of aluminum, and 40% in the amount of copper wire used

2%

Heavy oil A

The total amount of energy input at the Yamaha Motor Group in 2014 was 11.05

LPG

1%

6%

million GJ, with electricity accounting for approximately 71% (7.90 million GJ). Of

Butane0%

this amount, approximately 80% was used in Asia including Japan. We aresystematically implementing various measures to reduce the amount of energy
used, including the introduction of equipment that makes it possible to analyze andElectricity
consumed

reduce electricity consumption, and the installation of energy-saving equipment at

71%

Additional global environmental ISO 14001 unified certification

Natural gas“Eco management” is one of the action areas in Yamaha Motor Group Environmental Plan 2020, and based on this the Group has pursued

11%

global environmental ISO 14001 unified certification, which strengthens the Group’s environmental governance framework and achieves

City gas 13A

efficient environmental management operations, at locations in Japan and overseas since April 2012.

6%This program covers main manufacturing centers representing 39 companies in Japan, Europe, ASEAN, China, Taiwan, India and Southfactories and LED lighting in offices.

America, and as of the end of 2014 unified certification had been obtained by 26 companies (67%).
The Yamaha Motor Group has also introduced an in-house environmental management certification system for companies that have a

Measuring and Reducing Water Resources
The Yamaha Motor Group endeavors to measure the amount of water resources it uses.
The Group reduced its use of water resources in 2014 by 0.58 million m3 comparedwith 2013, to 6.18 million m3, the main components of which were 2.43 million m3

relatively smaller environmental impact, as part of our global environmental activities.
(Millions m3)
7.5

With this structure, each Group company reports on its environmental

6.76
0.36
0.68
0.31

6.0

6.18 0.10

activities as part of its management review, and information is reciprocally shared

0.62
0.67

with the headquarters. In addition, shortcomings and examples of improvements
are shared throughout the Group to enhance the process for corrections and

4.5

2.71

(39%) of underground water and 2.35 million m3 (38%) of industrial water.
We strive to use limited water resources effectively, including through3.0

recycling. We will continue to strive to measure our global use of water resources,

1.5

2.35

cost reductions.
2.67

2.43

and reduce our water resource consumption through programs including the reuseof coolant water and water collection (rainwater and other sources) at factories.

0

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

We will continue to work going forward to obtain unified certification at all of
the 39 Group companies.

2013

Team that introduced unified certification at YIMM in 20142014

Underground waterIndustrial water
Collected water
Other fresh water60

improvement. In terms of efficiency, unified certification has also led to significant

Tap water

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

61

CORPORATEINFORMATION
Corporate Governance64

Directors, Audit & Supervisory Board Members,
and Executive Officers

74

Comments from an Outside Director and62

Outside Audit & Supervisory Board Member

77

Organization

78

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201463

Corporate Governance

Basic Corporate Governance Policies

As of March 27, 2015, there were twenty-six (26) Executive Officers,

meetings when necessary.

Internal Auditing

Yamaha Motor Co., Ltd. (the “Company”) recognizes that corporate

and eight (8) Directors concurrently serving as Executive Officers.

The Integrated Auditing Division established an Internal Control Auditing

In their association with the Accounting Auditor, Audit & Supervisory

governance is an important tool to ensure disciplined management and

A Management Committee comprising ten (10) Executive Officers with

Division (consisting of twenty-eight [28] staff members as of March 27,

Board Members, including Outside Audit & Supervisory Board Members,

maximize long-term corporate value. Based on this realization, thespecific posts has been formed to deliberate on matters of business2015) under the direct control of the President and Chief Executive Officer.

receive an auditor’s report, in accordance with prevailing laws, and review

Company has been striving to speed up management decision-making;execution, speeding up the Company’s decision-making process.

The Division audits, based on annual audit plans, the appropriateness,

the fairness of the report. Both sides pursue communication through themake the accountability system clearer; develop a transparent system of

The Management Committee meets monthly in principle, with additional

reasonableness, and efficiency of business execution at the Company andexchange of information and opinions whenever necessary. In their

Director selection and remuneration; and establish an internal control

meetings held as needed. To ensure accountability, Directors andeach Group company, and submits evaluations and makes proposals.

association with the Internal Auditing Division, Audit & Supervisory Board

system. Because it is one of its most important management issues, theExecutive Officers serve for one-year terms.

Members, including Outside Audit & Supervisory Board Members, seek toJapanese and twelve (12) non-Japanese, comprising the Company’s

Communication among Outside Directors,
Audit & Supervisory Board Members (including
Outside Audit & Supervisory Board Members),
Accounting Auditor, Internal Auditing Division,and Internal Control Division

Summary of Corporate Governance andReasons for Adopting the System

President and Chief Executive Officer, all Executive Officers with specificOutside Directors assess the current status of the Group and identify

posts, and senior local managers of major Group companies. The Global

issues of interest through regular receipt of internal audit reports from the1) Reasons for adopting current system

Executive Committee meets at least once a year in principle, with

Integrated Auditing Division. Opinions are voiced at Board of Directors’

The Company maintains an Audit & Supervisory Board Member system,

additional meetings held as needed.

Company also plans to implement other measures to strengthen and

In addition, a Global Executive Committee has been established tosolidify corporate governance. At the same time, the Company is enhancing

deliberate on important management policies and issues related to theInvestor Relations services, in order to build on the relationship of trustGroup’s management. As of March 27, 2015, the Global Executive

with its shareholders and investors.

Committee had thirty-two (32) members, of whom twenty (20) were

improve the effectiveness and efficiency of auditors’ audits throughtheir establishment and application.

access to internal audit plans and reports on the results of audits.
The internal control division offers reports, when necessary, to theInternal Auditing Division, Audit & Supervisory Board Members, and the
Accounting Auditor on the status of internal control measures, specificallyand most of the Company’s Directors are full-time Directors withconsiderable knowledge of business matters. The Company draws on the

Executive Personnel Committee

supervisory function of outside executives through appointment and had

In August 2001, the Company established the Executive Personnel

three (3) Outside Directors in addition to two (2) Outside Audit &Committee as an advisory body of the Board of Directors, in order toSupervisory Board Members as of March 27, 2015. The Company also

improve transparency in nominating candidates for Director and Executiveemphasizes efforts to strengthen corporate governance, underpinned by

Officer, and to determine the remuneration for these officers. As of Marchan Executive Officer system, the Executive Personnel Committee, and an

27, 2015, the Executive Personnel Committee had five (5) members,internal auditing system.

comprising the Company’s two (2) Representative Directors and three (3)Outside Directors. The Executive Personnel Committee deliberates on2) Summary of current system

candidates for Director and Executive Officer, the remuneration and bonus

Directors and the Board of Directors and Executive Officers

system, the composition of the Board of Directors and the Audit &The Company introduced an Executive Officer system to expedite businessSupervisory Board, and the Executive Officers, and reports to the Board of

execution. It then strengthened management supervision by clarifying the

Directors.

Yamaha Motor’s Corporate Governance System and Internal Control System (As of March 27, 2015)
General Meeting of Shareholders
Appointment/
Dismissal
Seeking advice
Makingrecommendations

Executive Personnel
Committee

Audit & Supervisory Board Members and the Audit & Supervisory

Directors is charged with “approving the basic policies of the Yamaha

Board

Motor Group and supervising the Group’s business execution.”

As of March 27, 2015, the number of Audit & Supervisory Board

The Company’s Articles of Incorporation stipulate that the number of
Directors shall not be more than fifteen (15). As of March 27, 2015, there

64

Members stood at four (4), of whom two (2) were Outside Audit &Supervisory Board Members. Audit & Supervisory Board Members attend

were eleven (11) Directors, of whom three (3) were Outside Directors. The

Board of Directors’, Management Committee, and other important

Board of Directors will in principle meet once every month, and whenevermeetings, in addition to executing audits, receiving business execution

else it may be necessary.

reports from Directors, perusing important documents in the decision-

The Articles also stipulate that resolutions for the election of Directors

making process, and conducting audits at the Company’s subsidiaries.

shall be adopted by a majority of the voting rights held by the shareholders

In support of these audit services performed by Audit & Supervisory

present at the General Meeting of Shareholders. These voting shareholders

Board Members, the Company has established the Audit & Supervisory

must hold shares representing, in the aggregate, not less than one-third

Board Members’ Office, with staff exclusively dedicated to assisting(1/3) of the voting rights of all shareholders entitled to exercise the rights

auditors. The Audit & Supervisory Board meets monthly in principle, withand not using cumulative votes.

additional meetings held as needed.

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Audit

Board of Directors
11 Directors(including 3 Outside Directors)

Appointment/
Dismissal

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

Agreement to appointments
Judgment of accounting audit authenticity

External Auditor
Audit & Supervisory
Board Members’ Office
ReportAppointment/
Dismissal
Supervisionrespective roles of Executive Officers and the Board of Directors. Executive
Officers are responsible for “business execution” itself, while the Board of

Appointment/
Dismissal

Business Seeking advice
Execution
Makingrecommendations

Management Committee

Reporting businessexecution situations

Audit

ReportReportPresident, Chief
Executive Officer andRepresentative Director(Examination of important
issues, etc.)

Accounting audit

Exchanges of information and opinions

Making recommendations

Seeking advice

Instruction

Risk Management andCompliance Committee

Instruction

Integrated Auditing
Division

ReportInternal audit

Business sectors, Functional sectors, Corporate sectors, Subsidiaries

Yamaha Motor Co., Ltd. ⎜ Annual Report 201465

Corporate Governance

Summary of “Standards for Selecting Independent Outside Officers”

Outside Directors and Outside Audit &Supervisory Board Members

Independent Outside Officers may not be:1) Function and role of Outside Directors and Outside Audit &3) Vested interests of the Outside Directors and Outside Audit &1. Employees or former employees of the Company

Outside Director Takuya Nakata is President and Representative Director

Remuneration and Other Compensation for
Directors and Audit & Supervisory Board
Members

Supervisory Board Members in achieving proper corporate

2. Major shareholders

of Yamaha Corporation, which holds 12.18% of the Company’s shares,

1) Policies on determining the amounts of remuneration or thegovernance

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

as of December 31, 2014; the Company engages in business

The Company had three (3) Outside Directors and two (2) Outside Audit &Supervisory Board Members as of March 27, 2015.
Outside Directors provide management with advice and supervisiongroup
4. Individuals from companies that have appointed a director from the
Yamaha Motor Group

Supervisory Board Members at Yamaha Motor Co., Ltd.

transactions with this company.

calculation method thereof
The Company’s Directors’ Remuneration Plan consists of basic

Outside Director Atsushi Niimi is Chairman & Representativecompensation (a monthly salary), Directors’ bonuses, reflecting the

Director of JTEKT Corporation, a company from which the Company

short-term consolidated performance of the Company, compensationfrom an independent and objective perspective, based on extensive

5. Individuals with some other type of vested interest in the Groupprocures parts for products. The amount of these transactions is lesslinked to each Director’s individual performance, and a stock

experience and wide-ranging knowledge as managers of global

6. Individuals who might have a conflict with our general shareholders

than “2% of the Company’s consolidated aggregate sales for the mostcompensation plan reflecting the medium- to long-term consolidated

companies, and expertise in strategic planning and investing. Outside

7. In office more than eight years

recent fiscal year,” stipulated in the “Standards for Selecting

performance of the Company.

Audit & Supervisory Board Members audit the Company using vast
experience and knowledge as a corporate executive and professor at the

Furthermore, individuals who are second-degree relatives, or

graduate school level and significant expertise as a certified public

cohabiting relatives, of any of those mentioned in 1 through 5 above

accountant and attorney.

may not be Independent Outside Officers.

To evaluate the independence and objectivity of Outside Directors

The above is a summary of the “Standards for Selecting

and Outside Audit & Supervisory Board Members, the Company has

Independent Outside Officers.” For the full text, please refer to ourformulated “Standards for Selecting Independent Outside Officers,”

website at:based on the standards established by the Tokyo Stock Exchange, Inc.

http://global.yamaha-motor.com/ir/governance/pdf/independent_en.pdf

2) Appointment of Outside Directors and Outside Audit & Supervisory Board Members
Names

Tamotsu Adachi

Outside Directors

Takuya Nakata

Atsushi Niimi

Isao Endo
Outside Audit &Supervisory Board
Members

Directors’ bonuses shall not exceed 0.5% of the consolidated net

have no conflict of interest with the Company’s general shareholders.

income of fiscal 2013, which is calculated correlating with net income

Outside Director Tamotsu Adachi and Outside Audit & Supervisory

and return on assets for the consolidated performance as well as taking

Board Members Isao Endo and Tomomi Yatsu have no special interests

into account dividends to shareholders and the level of consolidated

in the Company other than Company shareholdings.

performance against the budget. Then the amount calculated isresolved at the Board of Directors’ Meeting after the deliberation of the4) Support structure for Outside Directors and Outside Audit &Supervisory Board Members
When the Board of Directors’ meetings are held, the relevant Executive

for judging the independence of officers.

Positions

Independent Outside Officers,” and Mr. Niimi is therefore deemed toReasons for appointment
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 forindependent directors and the “Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange
has been duly notified of his designation as an Outside Officer.
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.

Executive Personnel Committee comprising Representative Directors
and Outside Directors.
The stock compensation plan allows Directors to acquire a certain

Officer or business department will provide Outside Directors withnumber of the Company’s shares monthly through the Company’s

explanations of the resolutions to be proposed, as necessary and in

Director Shareholding Association, and to hold the shares while in office,advance, and Standing Audit & Supervisory Board Members will provide

thus further pegging Director remuneration to shareholder value.

similar explanations to Outside Audit & Supervisory Board Members. In

However, the performance-based remuneration system and stock

the event the Outside Officer is unable to attend the meeting, thecompensation plan do not apply to Outside Directors and Audit &Outside Officer will be provided with an explanation of the businessSupervisory Board Members.

conducted. In addition, a Management Research Committee has been
established as a venue for Outside Directors and Outside Audit &Supervisory Board Members to regularly confer with Executive Officers
who are responsible for the execution of business, and it meets
following the conclusion of the Board of Directors’ meetings.

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 for independent directors and the“Standards for Selecting Independent Outside Officers,” and the Tokyo Stock Exchange has been duly notified of his
designation as an Outside Officer.

Overview of Agreements That Limit Liabilities
for Damages

Isao Endo uses his vast experience and wide-ranging knowledge as a corporate executive and professor at the graduate
school level in auditing the Company. Mr. Endo meets the requirements for independence stipulated by the Tokyo Stock
Exchange for independent audit & supervisory board members and the “Standards for Selecting Independent Outside
Officers,” and the Tokyo Stock Exchange has been duly notified of his designation as an Outside Officer.

provisions of Paragraph 1 of Article 427 of the Companies Act, which

The Company has entered into agreements with Outside Directors andOutside Audit & Supervisory Board Members, in accordance with thelimit these executives’ liabilities (as specified in Paragraph 1 of Article
423 of the Companies Act) for damages. The upper limit of liability fordamages in the agreements is the amount as specified by laws andTomomi Yatsu

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

regulations.
The Company limits liabilities for damages charged to the Outside
Directors and the Outside Audit & Supervisory Board Members only
when they acted with goodwill and the liability did not arise because
they committed serious negligence in executing their duties.

66

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201467

Corporate Governance2) Directors’ remuneration

Improving Investor Relations (IR)Remuneration and other compensation for the Company’s Directors and Audit & Supervisory Board Members in fiscal 2014 are as follows.

The Company has been aggressively pursuing IR activities worldwide,(Millions of yen)Compensation linked to performanceBasiccompensation

Officer classification
Directors (13)Outside Directors (4)Audit & Supervisory Board Members (4)Outside Audit & Supervisory Board Members (2)Total

Directors’
bonuses

Individual
performance-linked

Stockcompensation
plan

Total

247
—
—
—
247

31
—
—
—
31

45
—
—
—
45

633
(28)
77
(18)
711

309
(28)
77
(18)
387

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 directors’ bonuses under “Compensation linked to performance” are the amounts scheduled to be paid.
3. The figures above include amounts for one Director who retired as of the closing of the 79th Ordinary General Meeting of Shareholders, held on March 25, 2014.
4. In addition to the remuneration shown above, ¥46 million was paid as employee salaries to Directors concurrently serving as employees.

3) Director or Audit & Supervisory Board Member received more than ¥100 million in aggregate remuneration and other compensation(Millions of yen)

Name

Companyclassification

Hiroyuki Yanagi

Director

The Company

Takaaki Kimura

Director

The Company

Basiccompensation
80
67

Directors’
bonuses
75
63

Individual
performancelinked
—
—

Stock
compensation
plan
11
9

Total

audit the performance of the Directors’ duties.
3. The Company shall maintain a robust posture against antisocial

the Company’s management performance and business operations.

forces that threaten the order and safety of civil society. It shallSpecific activities include quarterly financial results briefings, “IR roadreinforce this commitment in its Code of Ethics.

shows” for overseas investors, briefings to explain the Company’s

4. The Company shall form such organizations and develop such rules

businesses, efforts to improve information disclosure on the IR website,

as necessary to ensure that the Company and its subsidiaries

individual meetings with analysts and media interviews.

maintain appropriate financial information, and prepare and release
reliable financial statements.

State of Audit
The Company has designated Ernst & Young ShinNihon LLC as theindependent auditing company with review responsibilities for Company
audits. Certified Public Accountants who engaged in the certification of2) Disposition of documentation and other information concerning
the performance of Directors’ duties
1. Documents and other forms of information storage that detail theaudit are as follows.

execution of duties by Directors are properly produced, stored, andShinji Tamiya

managed through the establishment and application of required

Designated Limited Liability and Engagement Partner

in-house rules.
2. The Company ensures correct handling of classified information,

Designated Limited Liability and Engagement Partner

including the content of documents and other forms of information

Masanori Enomotostorage that detail the execution of duties by Directors, through the

Designated Limited Liability and Engagement Partner
167
140

and methodology established by the Audit & Supervisory Board, shallinvestors with appropriate, accurate, and timely information regarding

Takahiro Takiguchi

Compensation linked to performance
Officerclassification

designed to ensure accountability by providing shareholders and2. Audit & Supervisory Board Members, in accordance with the criteria

establishment and application of required in-house rules.
3. The Company has the necessary structures and internal rules in

The number of continuous years the Certified Public Accountants
have served the Company is omitted because it is under seven (7) years

place to facilitate timely and accurate disclosure of important
corporate information.

for all of them.

Matters to Be Resolved at the General Meetingof Shareholders That Can Be Adopted at theBoard of Directors’ Meeting
1. The Company’s Articles of Incorporation stipulate that the Company
may, by a resolution of the Board of Directors, acquire its own shares,

3. The Company’s Articles of Incorporation stipulate that the Company

Ernst & Young ShinNihon LLC has introduced a voluntary system for

may, by a resolution of the Board of Directors, pay interim dividends,

rotating engagement partners in its employ so that none exceeds awith June 30 of each year designated as the record date, in accordancecertain number of years in continuous service.

with the provisions of Paragraph 5 of Article 454 of the Company Law.
This allows the Company flexibility in returning profits to shareholders.

Support staff for the audit includes fifteen (15) Certified Public
Accountants and nineteen (19) other assistants.

in accordance with the provisions of Paragraph 2 of Article 165 of the

1. A Risk Management and Compliance Committee shall be establishedto formulate and promote measures for integrated risk control.
2. Control of each serious risk factor shall be assigned to a specificsection, which shall work to mitigate the risk factor for which it is
responsible.

shares through market transactions or other methods and implement aSpecial Resolution Requirement for the General
Meeting of Shareholders

Basic Policy Regarding the Internal Control
System and the State of Its Development

flexible capital policy response to changes in the management

The Company has stipulated a special resolution requirement at the

The Company, in accordance with the Company Law, passed aenvironment.

General Meeting of Shareholders in the Articles of Incorporation, in

resolution at a Board of Directors’ meeting regarding development of

4. If a serious crisis arises, an Emergency Countermeasures Headquarters

accordance with the provision of Paragraph 2 of Article 309 of thea system to ensure the conduct of its business is appropriate. The

shall be established as provided in the Emergency Response Manual,Company Law, as follows: The resolution shall be authorized by a two-

Company considers risk management and compliance its mostwith the President and Chief Executive Officer as its head, in order towith the provisions of Paragraph 1 of Article 426 of the Company Law,

thirds (2/3) majority of the voting rights held by the holders of shares

important issues, and is therefore continuing to develop the internal

minimize the damage and negative impact from the event.

the Company may, by a resolution of the Board of Directors, exempt its

present at the General Meeting of Shareholders. These voting

control system.

Directors (including former Directors) and Audit & Supervisory Board

shareholders must hold shares representing, in the aggregate, not less

1) Systems to ensure Director compliance with laws, regulations,

Members (including former Audit & Supervisory Board Members) fromthan one-third (1/3) of the voting rights of all shareholders entitled toliabilities for damages arising from negligence of their duties, within

exercise the rights.

Company Law. This is to ensure that the Company can acquire its own

2. The Company’s Articles of Incorporation stipulate that in accordance

683) Rules relating to risk control against loss

and the Company’s Articles of Incorporation

3. The necessary in-house rules are in place and are carefully observed
to ensure integrated control of individual departmental risk
management activities.

4) Systems to ensure efficient execution of Directors’ duties
1. The authority and responsibilities of the Board of Directors, President

1. The Board of Directors shall supervise Directors in the execution of theirand Chief Executive Officer, and sector heads, and the system forthe limits prescribed by laws and regulations. This is to ensure that

This relaxes the number of required votes for special resolutions at

responsibilities, to ensure that the Directors exercise the duty of caretransferring authority between them, shall be better defined by

Directors and Audit & Supervisory Board Members can successfully

any General Meeting of Shareholders, enabling shareholder meetings toand duty of loyalty to the standard of good administrators. The Board isstrengthening the Board of Directors’ Rules, Decision-making Rules,

fulfill their expected roles.

progress smoothly.

also charged with ensuring that all Directors’ activities are lawful.

and other important rules. This will allow these officers to execute

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201469

Corporate Governancetheir responsibilities more efficiently.
2. Resolutions to be proposed at the Board of Directors’ Meetings shallfirst be subject to deliberation by the Management Committee andother relevant committees to ensure they are appropriate and meetprocedural criteria for subsequent deliberation by the Board of Directors.
3. After the Medium-Term Management Plan and the budget for the
fiscal year are formulated, management control systems such as

5. The section with oversight for financial information offers guidance
and training to subsidiaries to ensure that they handle financial
information appropriately.
6. The section with oversight for risk management provides subsidiaries
with guidance and training on risk management practices.
7. The section supervising compliance shall provide subsidiaries withguidance and education on compliance.

“management by objectives” shall be established to achieve theplan’s goals and targets.

3. The internal audit section shall explain its internal audit plan to Audit &Equity Holdings

Supervisory Board Members in advance.

1) Total number of companies and amounts on the balance sheet

4. The minutes of the Management Committee meetings and any otherfor equity holdings that are not held for the purpose of puremeetings that the Audit & Supervisory Board may specify, andinvestment

Decision-making Forms shall be made available for Audit &66 companies¥39,886 million

Supervisory Board Members’ perusal.
5. Auditing assistance from outside experts shall be secured when

2) Companies, number of shares, balance sheet amounts, anddeemed necessary by the Audit & Supervisory Board.

purpose of holding for equity holdings that are not for pure7) Employee to assist Audit & Supervisory Board Members

investment

An Audit & Supervisory Board Members’ Office shall be established with
5) Systems to ensure employee compliance with laws,
regulations, and the Company’s Articles of Incorporation

a full-time employee dedicated to assisting the Audit & Supervisory

Fiscal 2013

Board Members in the execution of their duties.
Companies

1. A Risk Management and Compliance Committee shall be establishedto deliberate and offer opinions concerning compliance measures.
2. The Company shall enhance its Code of Ethics, and provide ethics
and compliance training appropriate to each position in the Company.

8) Employee assisting Audit & Supervisory Board Members’
independence from Directors
1. Any dismissal or personnel changes concerning the employee

3. An internal reporting system shall be established to directly inform

assisting Audit & Supervisory Board Members in the execution of

top executive management concerning any unlawful act, or thetheir duties shall be approved by the Audit & Supervisory Board inpossibility of illegal or improper activity that could damage trust andadvance.

confidence in the Company.

2. No employee assisting Audit & Supervisory Board Members in the

4. The Company shall maintain a robust posture against antisocial

execution of their duties shall concurrently hold a post involving otherforces that threaten the order and safety of civil society. It shallbusiness operations. The employee shall perform his or her duties

reinforce this commitment in its Code of Ethics.

under the direction of the Audit & Supervisory Board Members,

5. The Company shall form such organizations and develop such rules
as necessary to ensure that the Company and its subsidiaries

10,326,701

Balance sheet
amounts(Millions of yen)

Purpose of holding

17,235 To perpetuate a business relationship as companies utilizing a common brandToyota Motor Corporation

501,210

Nippon Seiki Co., Ltd.

1,217,502

2,476 To maintain a stable business relationship

NIPPON STEEL & SUMITOMO METAL CORPORATION

6,174,000

2,173 To maintain a stable business relationship

913,000

1,832 To maintain a stable business relationship

545,000

1,357 To maintain a stable business relationship

KOITO MANUFACTURING CO., LTD.
NGK SPARK PLUG CO., LTD.
Enshu Limited

6,457,395

The Shizuoka Bank, Ltd.

825,706

Imasen Electric Industrial Co., Ltd.

613,750

whose opinions shall be taken into consideration in evaluating theMizuho Financial Group, Inc.

2,288,340

employee.

Akebono Brake Industry Co., Ltd.

1,347,800

3,217 To maintain a stable business relationship

994 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the
926
Company has transactions
926 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the
830
Company has transactions
630 To maintain a stable business relationshipmaintain appropriate financial information, and prepare and release

JTEKT CORPORATION

236,000

422 To maintain a stable business relationshipreliable financial statements.

EXEDY Corporation

105,000

Sumitomo Mitsui Financial Group, Inc.

46,355100,000

322 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the251
Company has transactions
240 To maintain a stable business relationship

9) Rules concerning Directors and employees reporting to the Audit& Supervisory Board

6) Systems to ensure the Yamaha Motor Group (composed of the

Directors and employees shall report on the following matters to the

STANLEY ELECTRIC CO., LTD.

Company and its subsidiaries) conducts business appropriately

Audit & Supervisory Board periodically, or, when necessary, at its request.

MIKUNI CORPORATION

300,794

120 To maintain a stable business relationship1. Establishment and operation of internal control systems, and related

Ahresty Corporation

134,722

Sumitomo Mitsui Trust Holdings, Inc.

149,000

1. In order to assure proper business conduct by the Group, internal
charge of each subsidiary, responsibilities, authority, management

2. Results of internal audits conducted by the internal audit section

methods of subsidiaries, and other rules.

3. Operation of the internal reporting system, and receipt of reports

Mitsubishi UFJ Financial Group, Inc.

113,200

4. Director malpractice and/or acts conducted in violation of the law or

TOBA, INC.

10,000Nomura Holdings, Inc.

20,600JEUGIA Corporation

33,000113 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the82Company has transactions
To maintain a stable business relationship as a financial institution with which the
78
Company has transactions
17 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the16Company has transactions
4 To maintain a stable business relationshipFuji Heavy Industries Ltd.

1,000

3 To collect information such as the method of providing information to shareholders

Kawasaki Heavy Industries, Ltd.

1,000

0 To collect information such as the method of providing information to shareholders

100

0 To collect information such as the method of providing information to shareholders

policies shall be established, defining the controlling sectors in

2. In order to audit the appropriateness of operations of the Company
and its subsidiaries, an internal auditing sector shall be establishedunder the direct control of the President and Chief Executive Officer.

matters

the Company’s Articles of Incorporation
5. Incidents that could cause the Company considerable damage

An internal auditing function shall be established in major subsidiaries
as well, and this body shall conduct audits of sections and subsidiaries
collaborating with the internal auditing sector of the Company.
3. Each Japanese subsidiary, in principle, shall have a Board of Directors
and an Audit & Supervisory Board Member; overseas subsidiaries shalldesign their organizations in accordance with local law.
4. At least one Director of each subsidiary shall concurrently serve as a
Director, Executive Officer, or employee of another company in the Group.

70

Yamaha Corporation

Number ofshares(Shares)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201410) Other systems to ensure effective auditing by Audit &Supervisory Board Members
1. The Representative Directors shall meet with the Audit & Supervisory
Board Members periodically to exchange opinions.
2. Audit & Supervisory Board Members shall attend important meetings ofbodies including the Management Committee, the Risk Management
and Compliance Committee, and the Executive Committee.

Honda Motor Co., Ltd.
Hamamatsu Photonics K.K.

100

0 To collect information such as the method of providing information to shareholders

Eisai Co., Ltd.

100

0 To collect information such as the method of providing information to shareholders

Bridgestone Corporation

100

0 To collect information such as the method of providing information to shareholders

Canon Inc.

100

0 To collect information such as the method of providing information to shareholders

SUZUKI MOTOR CORPORATION

100

0 To collect information such as the method of providing information to shareholders

Yamaha Motor Co., Ltd. ⎜ Annual Report 201471

Corporate GovernanceFiscal 20143) Pure investment equity holdings

Companies

Balance sheet
amounts(Millions of yen)No related items.
Purpose of holding

Toyota Motor Corporation

501,210

3,788 To maintain a stable business relationship

Takeover Defense Measures Against Attemptsof Mass Acquisition of the Company’s Shares

KOITO MANUFACTURING CO., LTD.

913,000

3,382 To maintain a stable business relationship

Yamaha Motor Co., Ltd. announced that at the Board of Directors’

1,217,502

3,329 To maintain a stable business relationshipmeeting held on March 26, 2015, it had resolved on the continuation of

545,000

2,002 To maintain a stable business relationshiptakeover defense measures against attempts of mass acquisition of the6,174,000

1,857 To maintain a stable business relationship

Company’s shares (the “Plan”) for the protection and enhancement of

1,040 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the914
Company has transactions
To maintain a stable business relationship as a financial institution with which the
797
Company has transactions
749 To maintain a stable business relationship

the Company’s corporate value and the shareholders’ common

Yamaha Corporation

Nippon Seiki Co., Ltd.
NGK SPARK PLUG CO., LTD.
NIPPON STEEL & SUMITOMO METAL CORPORATION

10,326,701

Imasen Electric Industrial Co., Ltd.

613,750

The Shizuoka Bank, Ltd.

825,706

Mizuho Financial Group, Inc.

2,288,340

18,536 To perpetuate a business relationship as companies utilizing a common brandinterests.
The Company, through the resolution at its Board of Directors’
meeting held on February 14, 2013, revised the Plan that had been

Enshu Limited

6,457,395

Akebono Brake Industry Co., Ltd.

1,347,800

571 To maintain a stable business relationship

KAYABA INDUSTRY CO., LTD.

1,093,000

565 To maintain a stable business relationship

JTEKT CORPORATION

236,000

484 To maintain a stable business relationship

EXEDY Corporation

105,000

305 To maintain a stable business relationship

Shareholders held on March 26, 2013. Please refer to the Company’s

implemented until then from the perspective of protecting shareholders
and investors. The fundamental contents of the revision were endorsedby the approval of shareholders at the 78th Ordinary General Meeting of

MIKUNI CORPORATION

618,794

277 To maintain a stable business relationshippress release dated March 26, 2015, titled “Announcement Concerning

STANLEY ELECTRIC CO., LTD.

100,000

the Continuation of Takeover Defense Measures Against Attempts of

Sumitomo Mitsui Financial Group, Inc.

46,355Ahresty Corporation

134,722

Mitsubishi UFJ Financial Group, Inc.

113,200

Sumitomo Mitsui Trust Holdings, Inc.

149,000

TOBA, INC.

10,000Nomura Holdings, Inc.

20,600JEUGIA Corporation

33,000262 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the202
Company has transactions
100 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the
75
Company has transactions
To maintain a stable business relationship as a financial institution with which the69
Company has transactions
18 To maintain a stable business relationshipTo maintain a stable business relationship as a financial institution with which the
14Company has transactions
4 To maintain a stable business relationshipFuji Heavy Industries Ltd.

1,000

4 To collect information such as the method of providing information to shareholders

Hamamatsu Photonics K.K.

100

0 To collect information such as the method of providing information to shareholders

1,000

0 To collect information such as the method of providing information to shareholders

Eisai Co., Ltd.

100

0 To collect information such as the method of providing information to shareholders

Bridgestone Corporation

100

0 To collect information such as the method of providing information to shareholders

Canon Inc.

100

0 To collect information such as the method of providing information to shareholders

SUZUKI MOTOR CORPORATION

100

0 To collect information such as the method of providing information to shareholders

Kawasaki Heavy Industries, Ltd.

72

Number ofshares(Shares)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Mass Acquisition of the Company’s Shares,” for details of the Plan.
http://global.yamaha-motor.com/news/2015/0326/prevent.html

Yamaha Motor Co., Ltd. ⎜ Annual Report 201473

Directors, Audit & Supervisory Board Members,
and Executive Officers
As of April 1, 2015

Board of Directors
F Director

G Director

Katsuaki Watanabe
April 1982: Joined the Company
January 2004: Director of MBK Industrie
January 2005: General Director of Yamaha Motor Vietnam Co., Ltd.
January 2007: Director and President of Yamaha Motor Parts Manufacturing Vietnam
Co., Ltd.
January 2009: Senior General Manager of BD Manufacturing Section, Manufacturing
CenterMarch 2010: Executive Officer
November 2010: Chief General Manager of Manufacturing Center
March 2011: Senior Executive Officer
April 2013: Senior Executive Officer, Executive General Manager of 1st Business
Unit, MC Business Operations and Chief General Manager of
Manufacturing Center
January 2014: Senior Executive Officer, Executive General Manager of 1st Business
Unit, MC Business Operations and Chief General Manager of PF
Model Unit
March 2014: Senior Executive Officer and Director, Executive General Manager of
1st Business Unit, MC Business Operations and Chief General
Manager of PF Model Unit
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 (to present)

I

A President and Representative Director

Hiroyuki Yanagi
April 1978: Joined the Company
April 2000: General Manager of Soude Factory, Production Control Division, MC
Operations and General Manager of Morimachi Factory, Production Control
Division, MC Operations
April 2003: President of MBK IndustrieFebruary 2004: Managing Director of Yamaha Motor India Pvt. Ltd. (currently India
Yamaha Motor Pvt. Ltd.)
January 2006: Senior General Manager of China Business Operations
January 2007: Senior General Manager of SyS Operations, MC Headquarters
March 2007: Executive Officer, Senior General Manager of SyS Operations,
MC Headquarters
January 2009: Executive Officer, Executive General Manager of Manufacturing Center
March 2009: Senior Executive Officer, Chief General Manager of Manufacturing Center
November 2009: Senior Executive Officer, Senior General Manager of MC Business
Section, MC Business Operations
March 2010: President, Chief Executive Officer and Representative Director
June 2011: Director of Yamaha Corporation (to present)
January 2012: President, Chief Executive Officer and Representative Director, Chief
General Manager of MC Business Operations
January 2015: President, Chief Executive Officer and Representative Director(to present)

C Director

Kozo Shinozaki
April 1978: Joined the Company
April 1999: Vice President of Siam Yamaha Co., Ltd. (currently Thai Yamaha Motor Co., Ltd.)
April 2007: General Manager of Finance & Accounting Division
January 2009: Senior General Manager of Finance & Accounting Control, Global Corporate
Administrative Center and General Manager of Finance & Accounting
Division, Global Corporate Administrative Center
January 2010: Senior General Manager of Finance & Accounting Section and General
Manager of Finance & Accounting Division, Finance & Accounting Section
February 2010: Senior General Manager of Finance & Accounting Section
March 2010: Senior Executive Officer and Director, Senior General Manager of Finance &Accounting Section
January 2011: Senior Executive Officer and Director, Senior General Manager of Corporate
Planning & Finance Section and General Manager of Finance & Accounting
Division, Corporate Planning & Finance Section
February 2011: Senior Executive Officer and Director, Senior General Manager of Corporate
Planning & Finance Section
January 2013: Senior Executive Officer and Director, Executive General Manager ofCorporate Planning & Finance Center
March 2013: Managing Executive Officer and Director, Chief General Manager of Corporate
Planning & Finance Center (to present)

74

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

B Representative Director

Takaaki Kimura
April 1976: Joined the Company
June 1999: General Manager of R&D Division, AM Operations
April 2002: Senior General Manager of AM Operations
June 2003: Executive Officer, Senior General Manager of AM Operations
March 2005: Director, Senior General Manager of AM Operations
March 2007: 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 2011: Senior Managing Executive Officer and Representative Director, Chief
General Manager of 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
April 2013: Senior Managing Executive Officer and Representative Director, Chief General
Manager of Technology Center, Chief General Manager of Design Center, andChief General Manager of Marine 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
July 2014: Executive Vice President and Representative Director, Chief General Manager
of Technology Center and Chief General Manager of Marine Business
Operations (to present)

D Director

Nobuya Hideshima
April 1978: Joined the Company
May 1999: General Manager of Production Control Department, Production Control Division,
MC Operations
May 2001: General Manager of GSyS Planning Department, GSyS Management Division, GEM
Center, MC Operations and General Manager of GSyS Production Control
Department, GSyS Management Division, GEM Center, MC Operations
April 2003: President of Yamaha Motor Manufacturing Corporation of America
January 2006: General Manager of 3rd SyS, SyS Operations, MC Headquarters
January 2008: Senior General Manager of Procurement Operations, MC Headquarters
January 2009: Executive General Manager of Procurement Center
March 2009: Executive Officer, Executive General Manager of Procurement Center
March 2010: Senior Executive Officer, Chief General Manager of Procurement Center
March 2011: Senior Executive Officer and Director, Chief General Manager of Procurement
CenterMarch 2013: Managing Executive Officer and Director, Chief General Manager of Procurement
CenterJanuary 2014: Managing Executive Officer and Director, Chief General Manager of Engine Unit
and Chief General Manager of CS Center (to present)

I

K

E

G

C

H

F

A

B

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: Director of Benesse Corporation (currently Benesse Holdings, Inc.)
November 2007: Managing Director and Co-Representative of Carlyle Japan LLC(to present)
June 2009: Director of Benesse Corporation (currently Benesse Holdings, Inc.)(to present)
March 2013: Director (to present)

Toshizumi Kato

H Director

Yoichiro Kojima

June 1986: Joined the Company
April 2003: Vice President of IM Company
January 2005: Director and President of Yamaha Motor Australia Pty Limited
March 2007: President of IM Company
March 2008: Executive Officer
January 2010: Senior General Manager of Sales Operations, MC Business Operations
January 2011: Director and President of Yamaha Motor Corporation, U.S.A.
March 2012: Senior Executive Officer, Director
March 2014: Senior Executive Officer and Director, Director and President of Yamaha Motor
Corporation, U.S.A.
January 2015: Senior Executive Officer and Director, Chief General Manager of Vehicle &Solution Business Operations and Senior General Manager of Financial
Service Business Development Section (to present)

April 1981: Joined the Company
October 2001: Director and President of Yamaha Motor Canada Limited
July 2006: General Manager of Sales Division, ME Company
January 2009: Executive General Manager of ME Business Unit, Marine Business Operations
March 2010: Executive Officer
March 2012: Senior Executive Officer
January 2013: Director and President of PT. Yamaha Indonesia Motor Manufacturing
March 2015: Senior Executive Officer and Director, Director and President of PT. Yamaha
Indonesia Motor Manufacturing (to present)

J Director (Outside)

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: Director (to present)

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

MC: Motorcycle
SyS: System Supplier
AM: Automotive
WV: Water Vehicle
GEM: Global Engineering & Manufacturing
GSyS: Global System Supplier
CS: Customer Service
CV: Commuter Vehicle
BD: Body
PF: Platform
IM: Intelligent Machinery
ME: Marine Engine

D

Audit & Supervisory Board Members

E Director

Masahiro Takizawa
April 1978: Joined the Company
April 2000: General Manager of Business Planning Department, CV Operations
October 2002: Senior General Manager of China Business Operations, General Manager
of Business Planning Department, MC Operations and General Manager
of China Business Strategy Department, China Business Operations, MC
Operations
February 2004: President of MBK Industrie
July 2007: General Manager of Corporate Planning Division
January 2009: Senior General Manager of Corporate Planning Control, Global Corporate
Administrative Center and General Manager of Corporate Planning
Division, Global Corporate Administrative Center
March 2009: Executive Officer, Senior General Manager of Corporate Planning Control,
Global Corporate Administrative Center and General Manager of Corporate
Planning Division, Global Corporate Administrative Center
December 2009: Executive Officer, General Manager of Corporate Planning Division
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 ofBusiness Development Operations
January 2015: Managing Executive Officer and Director, New Business and Technology
Development Chief General Manager (to present)

Standing Audit & Supervisory Board Member
Hiroshi Ito

Standing Audit & Supervisory Board Member
Kenji Hironaga

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

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

Audit & Supervisory Board Member (Outside)
Isao Endo

Audit & Supervisory Board Member (Outside)
Tomomi Yatsu

April 1979: Joined Mitsubishi Electric Corporation
October 1988: Joined Boston Consulting Group
October 1992: Joined Andersen Consulting (currently Accenture)
October 1996: Partner of Andersen Consulting (currently Accenture)
September 1997: Partner and Director of Booz Allen Hamilton (currently Booz & Company)
May 2000: Managing partner of Roland Berger Japan
April 2006: Chairman of Roland Berger Japan (to present)
April 2006: Professor, Graduate School of Commerce, Waseda University (to present)
May 2011: Director of Ryohin Keikaku Co., Ltd. (to present)
March 2013: Audit & Supervisory Board Member (to present)
June 2014: Director of Sompo Japan Nipponkoa Holdings, Inc. (to present)
Director of Nisshin Steel Co., Ltd. (to present)

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. (to present)
June 2010: Outside Audit & Supervisory Board Member of Taiko Pharmaceutical Co., Ltd.
March 2012: Outside Statutory Auditor of Kokuyo Co., Ltd. (to present)
March 2015: Audit & Supervisory Board Member (to present)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201475

Directors, Audit & Supervisory Board Members, and Executive Officers

Comments from an Outside Director andOutside Audit & Supervisory Board Member
Since becoming an Outside Director last year, I have participated in Yamaha Motor’s discussions and decision-

Executive Officers
President andChief Executive Officer
Hiroyuki Yanagi

making for strategic and business planning. Yamaha Corporation, where I serve as president, obviously shares

Executive Vice President

the Yamaha brand name, but we have other common features as well, including an emphasis on the
Takaaki Kimura

importance of Monozukuri, and the fact that we both provide customers around the world with products that

Chief General Manager of Technology Center andChief General Manager of Marine Business Operations

enrich people’s lives. On the other hand, operations are carried out differently because of our different
business spheres, and I have learned first-hand how Yamaha Motor utilizes its unique features.
I am impressed with the strong leadership and prompt operational execution of Yamaha Motor’sManaging Executive Officer
Kozo Shinozaki

Managing Executive Officer
Nobuya Hideshima

Managing Executive Officer
Masahiro Takizawa

Chief General Manager of Corporate Planning& Finance Center

Chief General Manager of Engine Unit andChief General Manager of CS Center

New Business and Technology Development
Chief General Manager

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

value, with an awareness of returns to shareholders. Yamaha Motor’s Board of Directors provides

Katsuaki Watanabe

Toshizumi Kato

Yoichiro Kojima

Ryouichi Sumioka

appropriate answers to questions from me and my fellow Outside Directors, and respects our opinions.

Chief General Manager of Motorcycle Business
Operations and Executive General Manager of
1st Business Unit, Motorcycle Business
Operations

Chief General Manager of Vehicle & Solution
Business Operations and Senior General
Manager of Financial Service Business
Development Section

President of PT. Yamaha Indonesia Motor
Manufacturing

Deputy Chief General Manager ofCorporate Planning & Finance Center

management, and I believe these features have driven the success of the Company’s initiatives in emerging
markets and launches of unique new products during the past year. This type of decisive management is
Takuya Nakata
Outside Director

essential if a company is to succeed amid increasingly intense global competition in a changing market
environment. At the same time, the Board of Directors needs to take a long-term view to raise corporate

I will continue to offer my opinions from the perspective of a third party, based on my management
experience and expertise in a different field of business, to ensure that management decisions are notbased solely on short-term, subjective considerations, and that the Company is able to continue to growSenior Executive Officer

Senior Executive Officer

Senior Executive Officer

Hiroaki Fujita

Katsuhito Yamaji

Makoto Shimamoto

Managing Director of Yamaha Motor India
Pvt. Ltd.

Chief General Manager of Manufacturing
CenterChief General Manager of PF Model Unit andSenior General Manager of PF Model
Development Section, PF Model Unit

while controlling risks.
For Yamaha Motor’s management team, unique, highly innovative products are not simply areflection of corporate logic. Products are created from the position of what the customer actually desires.
I believe that this is what enhances Yamaha Motor’s corporate value, and I will work toward this end as an
Outside Director.

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Masato Adachi

Tsuneji Suzuki

Masaru Ono

Masaki Asano

Deputy Chief General Manager of Marine
Business Operations

President of Yamaha Motor Powered
Products Co., Ltd.

General Director of Yamaha Motor
Vietnam Co., Ltd.

Managing Director of Yamaha Motor
India Sales Pvt. Ltd.

Corporate management requires a balance of centripetal force and centrifugal force. Overall management
vision, and strategic direction and policies, represent centripetal force and are the responsibility of

Executive Officer

Executive Officer

Executive Officer

Executive Officer

headquarters and its operations. On the other hand, the actual execution of business strategies, the creation

Yoshitaka Noda

Masahiro Inoue

Kazuhiro Kuwata

Yoshihiro Hidaka

of value, and the delivery of that value to customers are activities that represent centrifugal force. These

Senior General Manager of Component
Section, Engine Unit

Chief General Manager of Procurement
CenterPresident of Yamaha Motor Europe N.V.

Executive General Manager of 2nd
Business Unit, Motorcycle Business
Operations

are the responsibilities of ground-level operations around the world, and are carried out on a daily basis.
Yamaha Motor is a global company that is engaged in a diverse range of businesses. This meansthat while the importance of presenting a clear overall vision, as centripetal force, to maintain thecohesiveness of the company cannot be overstated, it is also true that the independence and creativity of

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Tatsumi Okawa

Junzo Saitoh

Akihiro Nagaya

Heiji Maruyama

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

Chief General Manager of Human Resources& General Affairs Center

Chief General Manager of Design Center

Executive General Manager ofAutomotive Business Unit and
Deputy Chief General Manager ofEngine Unit

ground-level operations, which are in direct contact with markets and customers and are directly exposed
Isao Endo
Outside Audit & Supervisory
Board Member

to fierce competition, are the centrifugal force that drives Yamaha Motor.
As an Outside Audit & Supervisory Board Member, I offer advice on how to balance this centripetal
force and centrifugal force, both in terms of what the appropriate role should be for headquarters and its
operations, and how to maximize the capabilities of ground-level operations engaged in carrying out the76

Executive Officer

Executive Officer

Hirofumi Usui

Satohiko Matsuyama

Senior General Manager of Marketing
Section, Marine Business Operations

Executive General Manager of Recreational
Vehicle Business Unit, Vehicle & Solution Business
Operations and General Manager of Business
Promotion Division, Recreational Vehicle Business
Unit, Vehicle & Solution Business Operations

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014business in the market.
Yamaha Motor is exceptional in its passion for creating Kando, or a sense of excitement, around the
CS: Customer Service
PF: Platformworld. There are no limits to the potential that this holds, and I believe that Yamaha Motor can become aneven greater company. As a member of Yamaha, I will work to contribute to the realization of that potential.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201477

Organization

Five-Year Summary

Yamaha Motor Co., Ltd., as of April 1, 2015

Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2010, 2011, 2012, 2013 and 2014

General Meeting of Shareholders
Audit & Supervisory Board

Audit & Supervisory Board
Members’ Office

Board of Directors
President & CEO*Management Committee
Risk Management and Compliance Committee*Abbreviations:
CEO: Chief Executive Officer
IT: Information Technology
PF: Platform
CS: Customer Service
IM: Intelligent Machinery
RV: Recreational Vehicle
SPV: Smart Power Vehicle
UMS: Unmanned System

78

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Integrated Auditing Division
New Venture Business Development Section
Financial Service Business Development Section
Human Resources & General Affairs Center
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
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
Component Section
CS* Center
After Sales Section
Spare Parts Section
Motorcycle Business Operations
1st Business Unit
2nd Business Unit
3rd Business Unit
Quality Assurance Section
Marine Business Operations
Marine Engine Business Unit
Boat Business Unit
Marketing 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)

Millions of yen

2010

2011

2012

2013

2014

¥1,294,131¥1,276,159¥1,207,675¥1,410,472¥1,521,207

Japan

142,378

146,503

152,283

147,806

162,824

Overseas

1,151,752

1,129,656

1,055,391

1,262,665

1,358,383

Motorcycles

914,211887,556

798,676928,203

977,580

Marine products

167,141

178,929

196,320

243,362

276,367

For the year ended
Net sales
Sales by market:

Sales by product:

Power products

102,968

100,257

103,588

126,722

142,204

Industrial machinery and robots

34,75834,32630,81332,261

38,942Other products

75,05175,08978,27679,922

86,113

Cost of sales

998,565

1,000,113

972,607

1,091,706

1,148,357

Operating income

51,30853,405

18,59855,137

87,249Ordinary income

66,142

63,49527,26760,092

97,279Net income

18,30026,9607,489

44,05768,452

Capital expenditures

33,93945,04948,78856,80065,871

Depreciation expenses

36,59433,57834,27836,407

37,667

Total assets¥ 978,343¥ 900,420¥ 962,329¥1,146,591¥1,310,040

Net assets

310,809309,914

341,561

422,792

503,224

At year-end

Yen

Per share amounts
Net income—basic

¥

55.50

¥

77.23

¥

21.45

¥

126.20¥

196.06

Net income—diluted

55.50

77.23

—

126.20

196.04

Cash dividends

0.00

15.50

10.00

26.00

40.00

52,18454,677

53,95853,382

52,662

Number of employees

Yamaha Motor Co., Ltd. ⎜ Annual Report 201479

Financial Data by Market
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31, 2013 and 2014

Motorcycle unit sales

Motorcycle unit sales by market
Thousand units

Thousand units% change

2013

2014

2014/2013

109

Japan

123

13.3%

Japan

North America(Thousand units)(Thousand units)

123

125

100

North America

76

79

3.1

Europe

162

191

18.3

Note

5,077

4,819

(5.1)

75

60

Others

590

587

(0.5)

50

40

Total

6,014

5,799

(3.6)%

25

20

109
99

100

101

80

94

71

79

76

64

Asia

53

Note Excluding Japan
0

0
2010

2011

2012

2013

2010

2014

2011

2012

2013

2014

Sales by market
Motorcycles
Millions of yen

Marine products% change

2013

2014

Japan

¥37,361¥45,987

North
America

50,31553,357

2014/2013

Millions of yen

Power products% change

2013

2014

2014/201323.1%¥26,331¥26,612

6.0

124,658

145,081Millions of yen

Europe% change

2013

2014

2014/2013

1.1%¥15,943¥17,204

7.9%

16.4

68,05384,467

24.1(Thousand units)

300

240

227
191

185

Europe88,985116,03730.4

36,844

41,69713.2

25,41323,011(9.5)

Asia Note

610,030

612,159

0.3

12,053

16,051

33.2

6,870

5,723

(16.7)

Others141,510150,038

6.0

43,47346,924

7.9

10,441

11,796

13.0

Total

¥928,203¥977,580

5.3%¥243,362¥276,367

13.6%¥126,722¥142,20412.2%

Industrial machinery and robots
Millions of yen

2013% change

2014

2014/2013Japan¥12,179¥13,776

13.1%

North
America

1,796

2,012

12.0

Other products
Millions of yen

2013% change

2014

2014/2013¥55,991¥59,242

0

2

180

2012

2013

60

0
2010

Asia

Others(Thousand units)(Thousand units)

7,500

600

573

590

587

2013

2014

2011

2014

533
6,000

497

6,084 6,059

480
5,228 5,077

4,819

4,500

360

Europe

3,930

5,206

32.5

1,618

2,240

38.4

Asia Note

14,152

17,409

23.0

3,423

3,687

7.7

3,000

240

Others

202

538

166.0

18,88820,940

10.9

1,500

120

¥32,261¥38,94220.7%¥79,922¥86,113

7.7%

Total

162

120

5.8%
3598.3

165

0

0
2010

2011

2012

2013

2014

2010

2011

2012

Note Excluding Japan

80

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201481

Management Discussion and Analysis of Operations

Factors Impacting Operating Income

Overview

Profit also increased in emerging markets as higher sales

In the fiscal year ended December 31, 2014 (fiscal 2014),

and the impact of cost reductions exceeded increases in(Billion ¥)the global economy faced a sense of uncertainty. Thesepurchasing costs owing to currency depreciation, among120

doubts were particularly felt throughout the economies ofother factors.

developed countries despite a general recovery trend

Increase in sales

In the U.S. economy, gradual recovery continued due
to improvements in employment and personal income. In

Increase in SG&A
expenses

-8.4

-1.3

-15.4

Operatingincome60

OperatingincomeMotorcycles+87.2

Overall net sales of the motorcycle business rose ¥49.4
billion, or 5.3%, year on year, to ¥977.6 billion, andto factors including the return of the debt crisis in Greece

operating income rose ¥14.6 billion, or 174.0%, year on

and currency instability in Russia. In Japan, although theyear, to ¥22.9 billion.

30

+55.1

0
FY13

FY14

Unit sales in developed countries grew 13%, owing toowing to the effects of the government’s monetary easing

the bottoming out of demand and a sales increase fromoverall business strength, reliability, networks, and other

Sales and profit increased as a result of factors

policy, consumer spending fell as a result of the hike in the

new product introductions. In emerging markets, unit sales

assets has resulted in a highly profitable business model.

including higher sales of large outboard motors, costconsumption tax. In emerging markets, although India

rose 23% in India as a result of an increase in total demand

In North America, the increase in sales of large motors

experienced a recovery, a market where growth isand new product introductions. In ASEAN markets, sales

was striking, the result of a continuing recovery in overall

expected, a lull in economic growth continued in ASEAN,

fell 9% on a decrease in total demand and 2014 wasdemand in the lake, river and ocean markets and a

China, South America, and other regions.

model switch timing. Many new model launches areprogressing product shift from inboard motors to outboard

Power Products

expected in 2015. Overall unit sales in the motorcycle

motors. Sales rose in emerging markets as well.

Overall net sales of the power products business rose

Moreover, the U.S. dollar, euro, and other currencies ofdeveloped countries remained strong against the yen, andthe so-called depreciation of the yen continued evenbusiness fell 4%, to 5.8 million units.
Key new product introductions included the MT-09 andreductions and the impact of yen depreciation, as well as
the introduction of new personal watercraft and boats.

Key new product launches included the F175 large¥15.5 billion, or 12.2%, year on year, to ¥142.2 billion, andmotor, the F115 medium-sized motor, the F4/5/6 small

operating income rose ¥1.3 billion, or 23.9%, year on year,

further. On the other hand, the Indonesian rupiah, Brazilian

MT-07, additions to the MT series, a product line unique tomotors made in Thailand, and FX and FZS personalto ¥6.5 billion.

real, and other emerging-market currencies remained weak

Yamaha; the R1 and R25, additions to the R series ofwatercraft adopted new technologies.

against the U.S. dollar, and, as a result, import costs

motorcycles that draw on the Yamaha tradition of racing

increased and inflation rose in these countries.

technology; the Nozza Grande, Grand Filano, and Mio 125

Percentage of sales by product segment

ASEAN commuter bikes equipped with the BLUE CORE

(Year ended December 31, 2014)

Sales and Operating Income

next-generation air-cooled engine; and the Cygnus

Sales and profit from all business segments increased inscooter and FZS FI sports bike for the Indian market.

fiscal 2014.
Consolidated net sales were ¥1,521.2 billion (anOverall net sales rose on increased sales in developed

Industrial machineryand robots

2.6%
Power products

Sales by product segment

Sales by market(Billion ¥)(Billion ¥)1,521

Other products

1,410

5.6%

1,294

9.3%

1,200

1,276

75 1,208
34
78
100
31
104
179
196

110
103

Marine products 18.2%

increase of ¥110.7 billion, or 7.9%, year on year). Sales insales decline in ASEAN markets. Operating income rose as

all business segments rose due to factors including an

the increase in net sales, cost reductions, and the impact

increase in sales resulting from expansion of the productof yen depreciation more than offset the impact oflineup, an increase in sales of high-priced products, anddepreciation of emerging market currencies and higher

Percentage of sales by market

the impact of yen depreciation resulting from the strength

development costs.

(Year ended December 31, 2014)

Operating income increased to ¥87.2 billion (anOverall sales and profit rose on higher sales of

1,600

countries, India, and other markets, which exceeded aof currencies from developed countries.

Motorcycles
64.3%

167

80
32
127

1,521
1,410
1,294

1,276
1,208

1,200

243

800

800
1,152
888

914

799

928

1,055

1,263

1,358

400

0

0
2010

2011

2012

2013

Marine products

global perspective, profit rose in developed countries as¥33.0 billion, or 13.6%, year on year, to ¥276.4 billion, andPower products

Industrial machineryand robots

higher sales and the impact of yen depreciation more thanoperating income rose ¥14.0 billion, or 44.1%, year on

offset increases in development expenses and other items.

year, to ¥45.8 billion. Strong brand power stemming from

Overseas
89.3%

978

1,130

Japan

10.7%

Marine Products

400

Motorcycles

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

1,600

86
39
142
276

Overall net sales of the marine products business roseincrease of ¥32.1 billion, or 58.2%, year on year). From a82

Increase indepreciation
expenses

-0.9

+4.8

+14.4

Increase in
R&D expenses+38.9

Sales Performance by Business Segment

Europe, recovery slowed in the second half of the year due

yen further depreciated and stock prices remained highFluctuation in costof raw materials

90

emerging, and the lull in economic growth in emerging
markets persisted.

Impact ofexchange rate

Cost reductions

Other products

2014

142

2010
Japan

147

2011

152

2012

148

2013

163

2014

Overseas

Note “Industrial machinery and robots,” which was previously
included in the “Other products” segment, is being
reported in a separate segment effective from fiscal 2011.

Yamaha Motor Co., Ltd. ⎜ Annual Report 201483

Management Discussion and Analysis of Operations

recreational off-highway vehicles (ROVs) due to theSales of electrically power assisted bicycles rose, owing

North America

Unit sales of motorcycles decreased in the ASEAN

introduction of the VIKING VI, the second product in theto an expanded lineup of models equipped with the triple

Net sales in North America increased ¥45.2 billion, or

market overall, although they increased in India and Taiwan.

VIKING lineup. As well as expanded lineup of snowmobiles

sensor system and an increase in E-kit (electrically power

16.7%, year on year, to ¥315.2 billion, and operating

The impact of yen depreciation contributed to the increase

and golf cars.

assisted bicycle system kit) exports to Europe. In addition,

income increased ¥6.6 billion, or 124.8%, year on year, toin net sales.

the Company introduced the GREEN CORE next-generation¥11.9 billion.

Industrial Machinery and Robots

smart power drive unit and the E-VINO electric scooter,

Overall net sales of the industrial machinery and robots

which offers both performance and low cost.

business rose ¥6.7 billion, or 20.7%, year on year, to ¥38.9

Unit sales of large outboard motors, ROVs and golf

Otherscars increased.

Net sales in other areas increased ¥12.2 billion, or 7.2%,

Sales of automobile engines also increased, leading tobillion, and operating income rose ¥2.0 billion, or 63.8%,

year on year, to ¥182.6 billion, and operating income

overall increases in both sales and profit.

year on year, to ¥5.0 billion.

Europeincreased ¥3.2 billion, or 46.0%, year on year, to ¥10.0

Net sales in Europe increased ¥30.1 billion, or 18.8%, year

billion.

on year, to ¥190.3 billion, and operating income increased

Europe due to a recovery in capital investment and theSales Performance and Operating Income byGeographical Segment Note 1

introduction of new medium-speed and high-speedJapanloss in the previous fiscal year.

mounters. In addition, the Company prepared a strategy

Net sales in Japan increased ¥62.9 billion, or 10.6%, year

for full-scale entry into the high-speed mounter market

on year, to ¥659.0 billion, and operating income increased

from a transfer of assets from Hitachi High-Tech Group.

¥8.2 billion, or 28.2%, to ¥37.2 billion.

Sales of surface mounters increased in China, Asia, and¥15.6 billion, to ¥4.8 billion, from the ¥10.8 billion operating
Unit sales of motorcycles increased due to the impact

Unit sales of motorcycles increased in Brazil, Colombia,
Mexico and other markets.
Note 1 Net sales by geographical segment information includes intersegment
sales.

of new product introductions, including the MT series.

Income and Expenses

Unit sales increased overall, including sales of motorcycles

Asia

Cost of Sales, Gross Profit and SG&A Expenses

Other Products

in Japan and for the European and North American markets,

Net sales in Asia (excluding Japan) increased ¥15.4 billion,

The cost of sales for fiscal 2014 increased ¥56.7 billion, orOverall net sales of the other products business rose ¥6.2

mainly the MT series, and sales of large outboard motors

or 2.2%, year on year, to ¥720.3 billion, while operating

5.2%, year on year, to ¥1,148.4 billion, representing 75.5%

billion, or 7.7%, year on year, to ¥86.1 billion, and operating

for the North American market, as well as exports of theincome decreased ¥3.0 billion, or 10.0%, year on year, toof net sales.

income rose ¥0.3 billion, or 5.2%, year on year, to ¥7.0

E-kit.

¥27.5 billion.

Gross profit increased ¥54.1 billion, or 17.0%, tobillion.

Motorcycle unit sales

Operating income andoperating income margin(Thousand units)(Billion ¥)

8,000

100
6,960
497

（%） (Billion ¥)

8

6,982
573

6,090
533

6,014
590

5,799

75

5.7

587

51.3
4,000

50
5,077

0

84

25
185
64
101

165
71
94

6

162
76
109

191
79
123

(Billion ¥)(Billion ¥)(Billion ¥)

6.0

720

315

320

200

190

60

540

527

520

169

270

596
533

240

160
151

150

135

44.1
3.1

40

20

18.3
1.4

171

177

3.0

360

160

100

1.5

180

80

50

0

0

27.0
2.1
7.5
0.6

0

0

2010

2011

2012

2013

2014

2010

Japan
OthersNorth America

EuropeAsia

Operating income
Operating income margin (%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

（%）

206

2

18.6
1.5

Sales by geographical segment Note 1—Europe

4.5
4.5

4,819

2,000

Sales by geographical segment Note 1—North America

659

4

3.9

Sales by geographical segment Note 1—Japan

68.5

55.1

53.4
4.2

4.0

6,059
5,228

227
53
99

80

87.2

6,000

6,084

Net income and net income margin

2011

2012

2013

2014

0
2010

2011

2012

2013

2014

0
2010

2011

2012

2013

2014

0
2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Net income
Net income margin (%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201485

Management Discussion and Analysis of Operations¥372.8 billion, reflecting increased sales, cost reductions,

We continuously pursue the three areas of “enjoyment¥7.0 billion, a ¥0.3 billion, or 5.2%, increase year on year.

margin, to 5.7%.

an improvement in model mix, and yen depreciation. The

in personal mobility,” “innovative technologies that

The motorcycle business recorded a ¥14.6 billion, or

gross profit margin rose 1.9 percentage points, to 24.5%.

harmonize with people, society and the Earth,” and174.0%, increase in operating income, to ¥22.9 billion.

Increased sales of electrically power assisted bicycles andautomobile engines led to overall profit growth.

“fulfilling lifestyles.” Our R&D activities seek to offer original,

Operating income rose as the increase in net sales, cost

increased ¥22.0 billion, or 8.3%, to ¥285.6 billion. This wasinnovative solutions that build on our optimal control

reductions, and the impact of yen depreciation more than

Non-Operating Income and Expenses

mainly because of increased spending on advertising, andtechnologies for power sources, vehicle bodies, boats andoffset the impact of depreciation of emerging market

Net non-operating income was positive in the amount of

the effect of yen depreciation on foreign currency

airframes, to create products that incorporate logic andcurrencies and higher development costs.

¥10.0 billion, which was ¥5.1 billion, or 102.4%, more thanconversions. As a percentage of net sales, SG&A expenses

emotion through core technologies including highrose 0.1 percentage point, to 18.8%.

performance, light weight, fuel efficiency and compactness,¥45.8 billion, a ¥14.0 billion, or 44.1%, increase year on

exchange gains, compared with ¥7.3 billion of foreign

with an emphasis on original styling, shape, material andyear. This was driven by higher sales of large outboard

exchange losses in the previous year.

appeal to fascinate our customers.

motors, cost reductions and the impact of yen depreciation,

Selling, general and administrative (SG&A) expenses

R&D expenses included in general and administrative
expenses and manufacturing costs increased ¥8.4 billion,or 11.1%, year on year, to ¥84.5 billion.

in the previous year. This included ¥5.1 billion of foreign

Operating income in the marine products business was

By delivering products that embody the unique style of
Yamaha, we seek to create strong connections with

as well as the introduction of new personal watercraft andExtraordinary Income and Lossboats.

Extraordinary income totaled ¥1.9 billion, marking a ¥1.6

customers around the world. Our global R&D structure is at

The power products business recorded operating

billion, or 515.5%, increase year on year. The main itemThe Yamaha Motor Group pursues continuous growth as

the core of these efforts, and we are proactively pursuingincome of ¥6.5 billion, for a ¥1.3 billion, or 23.9%, increase

was a ¥1.4 billion gain on change in equity, compared withan excellent engineering, manufacturing and marketing

R&D activities in close cooperation with affiliatedyear on year. This reflected increased sales of ROVs and annone in the previous year.

enterprise with a prominent presence in the global market,

companies in Japan and overseas.

expanded lineup of snowmobiles and golf cars.

R&D Expenses

with the aim of being a “Kando Creating Company.” Our

Extraordinary losses totaled ¥1.3 billion, for a ¥1.4 billion,

In the industrial machinery and robots business,or 51.0%, decrease year on year. The main extraordinary

Monozukuri (engineering, manufacturing and marketing)Operating Income

operating income increased ¥2.0 billion, or 63.8%, to ¥5.0

losses were a ¥1.0 billion loss on disposal of non-current

standards are original and innovative concepts underpinned

Operating income for fiscal 2014 was ¥87.2 billion, a ¥32.1

billion. This is due to factors including an increase in sales

assets, compared with ¥1.1 billion in the previous year, andby outstanding technologies based on the unique style ofbillion, or 58.2%, increase year on year. This resulted in aof surface mounters.

a ¥0.2 billion loss on sales of non-current assets, compared

Yamaha, projecting a “refined dynamism” in design.

1.8 percentage point increase in the operating income

Sales by geographical segment Note 1—Asia

Sales by geographical segment Note 1—Others

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

800

200

100

705
658

8

170

652

600

（%）

Net income per share(Billion ¥)

(¥)

80

200

84

159
150

Net assets and % of net income toshareholders’ equity(Billion ¥)196 196

（%）

600

24

145

75

135

5.8
70

65
5.1

50

100

503

66

76

55
400

Capital expenditures and depreciation

183

720

596

with ¥0.4 billion in the previous year.

Operating income in the other products business was

6

60

450

150

57

5.6
49

5.4

16.2
342

45

4.3

4

40

34

37

311
34

18

423

126 126

36

34

38

310

12.7

300

100
77 77

7.5

12

9.7

56 56
200

25

50

2

20

150

50

6

21
0

0

0
2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

0
2010

2011

R&D expenses

2012

2013

2014

% of R&D expenses to net sales

0

2.5
0

0
2010

2011

Capital expenditures

2012

2013

Depreciation

2014

2010

2011

2012

2013

2014

Net income per share—basic
Net income per share—diluted

0
2010
Net assets

2011

2012

2013

2014

% of net income to shareholders’ equity

Note Net income per share—diluted for fiscal 2012 is notlisted as there were no potential shares with dilutive effect.

86

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

Yamaha Motor Co., Ltd. ⎜ Annual Report 201487

Management Discussion and Analysis of Operations

Capital Resources and Liquidity

Capital Expenditures

Cash Flows

Income before income taxes for fiscal 2014 increased

Assets, Liabilities and Total Net Assets

The Group made investments of ¥65.9 billion in total during

Net cash provided by operating activities during fiscal¥40.1 billion, or 69.6%, year on year, to ¥97.8 billion.

Total assets at the end of the fiscal year ended December

fiscal 2014.

2014 was ¥93.6 billion (¥67.0 billion in net cash provided

Income before Income Taxes

In the motorcycle business, investments of ¥41.4 billion

31, 2014 rose ¥163.4 billion from the end of the previous

during fiscal 2013), reflecting factors including income

Income Taxes

fiscal year, to ¥1,310.0 billion. Current assets rose ¥99.0

were made for new products in domestic and overseas,

before income taxes and minority interests of ¥97.8 billion

Income taxes increased ¥16.1 billion, or 196.9%, year

billion, mainly from increases in inventories and accounts

enhancement of production capacity in India, and(¥57.7 billion) and an increase of ¥28.3 billion in working

on year, to ¥24.3 billion. This increase was due to thereceivable—trade, and non-current assets rose ¥64.4 billion,

restructuring of the domestic manufacturing system.

capital (an increase of ¥6.4 billion) accompanying therecording of income taxes–deferred along with themainly from an increase in property, plant and equipment.

additional recording of deferred tax assets at overseas
subsidiaries in fiscal 2013.

In the marine products business, investments of ¥11.4

increase in sales.
Net cash used in investing activities during fiscal 2014

Total liabilities rose ¥83.0 billion to ¥806.8 billion,

billion were made for new products, research andreflecting such factors as increases in interest-bearing debt

development, and restructuring of the domestic

was ¥72.5 billion (¥62.7 billion in net cash used during

and accounts payable—trade.

manufacturing system.

fiscal 2013), as a result of factors including ¥61.9 billion for

Minority Interests in Income

the purchase of property, plant and equipment andIn the power products business, investments of ¥6.2

Total net assets increased ¥80.4 billion to ¥503.2 billion,

Minority interests in income include interests owned byreflecting such factors as net income of ¥68.5 billion,

billion were made for the factors such as new products

intangible assets (¥53.4 billion) for purposes including

minority shareholders in PT. Yamaha Indonesia Motordividends paid of ¥10.6 billion, and a change in foreignof ROVs.

capital investments, mainly for production capacity

Manufacturing, Yamaha Motor Taiwan Co., Ltd., Yamaha

currency translation adjustment of ¥28.8 billion due to yen

In the industrial machinery and robots business,

Motor Vietnam Co., Ltd., and Industria Colombiana dedepreciation. As a result, the shareholders’ equity ratio as ofinvestments of ¥0.7 billion were made for new products

Motocicletas Yamaha S.A., and decreased ¥0.4 billion, or

December 31, 2014 was 35.1% (an improvement of 1.6

and research and development.

6.8%, year on year, to ¥5.0 billion.

was ¥8.9 billion (¥3.6 billion in net cash provided during
fiscal 2013), due to factors including ¥10.6 billion in cash
dividends paid.

net debt-equity ratio was 0.6 times, compared with 0.7

were made for factors such as automobile engine

times at the end of the previous year.

production facilities, research and development of smart

Net income for fiscal 2014 increased ¥24.4 billion, or 55.4%,

Net cash used in financing activities during fiscal 2014

In other products business, investments of ¥6.2 billion

percentage points from the end of the previous year). The

Net Income

increases in India.

power vehicles.
Note 2 Equity ratio: (Shareholders’ equity + Accumulated othercomprehensive income) / Total assets x 100 (%)

year on year, to ¥68.5 billion. Basic net income per share
grew ¥69.86, to ¥196.06 in fiscal 2014 from ¥126.20 infiscal 2013.

Net assets per share andequity ratio Note 2

Total assets and return on assets

(¥)

（%）

2,000

40
32.0

31.2
1,500

33.5

(Billion ¥)（%） （%）

8

1,600

1,147

1,200

153
6

150

150

Inventory turnover(Times)(Times)(Times)

2.0

6.0

6.0

20

5.1

4.9
4.6

1.4

1.5
1.3

4.7

4.5
1.3

4.6

4.7
4.4

4.5

4.3
3.9

1.3
1.2

962

900

1,100

150
137

5.6
978

882

Property, plant and equipment
turnover

4.9

1,310
30

804

Total asset turnover

175

1,317

786

200

35.1

28.0

1,000

Current ratio

4.2

800

4

100

1.0

3.0

3.0

2

50

0.5

1.5

1.5

0

0

2.9
10

500

400

1.9
0.8

0

0
2010

2011

2012

Net assets per share

88

2013

2014

Equity ratio (%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

0
2010

2011

Total assets

2012

2013

2014

0.0
2010

2011

2012

2013

2014

0.0
2010

2011

2012

2013

2014

0.0
2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Return on assets (%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201489

Management Discussion and Analysis of Operations

As a result of the activities discussed above, free cash

and restructuring of the domestic manufacturing system.

The annual amounts of interest-bearing debt to be

Cash Dividends

flows for fiscal 2014 were a positive ¥21.1 billion. Interest-

In the power products business, investments of ¥6.2 billion

Recognizing that shareholders’ interests represent one ofbearing debt at the end of the fiscal year was ¥403.7

were made for the factors such as new products of ROVs.

the Company’s highest management priorities, the Company

billion, and cash and cash equivalents totaled ¥137.3

In the industrial machinery and robots business, investments

has been striving to meet shareholder expectations bybillion. Interest-bearing debt included ¥186.7 billion inof ¥0.7 billion were made for new products and researchworking to maximize its corporate value.

borrowings for sales finance.

and development. In other products business, investments

Under the current MTP, the Company aims to provide

Total
Short-termloans payable 125.9

of ¥6.2 billion were made for factors such as automobile

shareholder returns through comprehensive consideration

Long-termloans payable 277.7

Demand for Funds

engine production facilities, research and development ofof the business environment, including business

The Group’s fund requirements are primarily to cover thesmart power vehicles.

performance, retained earnings, and a balance between

repaid are as follows:

1 year 1 to 2
or less years

2 to 3years

3 to 4years(Billion ¥)4 to 5 More thanyears
5 years

125.9

—

—

—

—

—

97.3

40.1

50.0

46.3

40.0

4.0

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

cost of procuring materials and parts used in productaggressive growth investments and stock dividends andmanufacturing and costs incurred in the manufacturingloan repayments, while maintaining a minimum dividend

Share Performance

process, as well as purchasing costs for products andpayout ratio of 20% of consolidated net income.

Price per share increased from ¥1,577 at December 31,

merchandise, SG&A expenses, working capital and capital2013 to ¥2,442 at December 31, 2014. The number of

The Company decided to pay a year-end dividend of

expenditures.

¥25.50 per share for fiscal 2014. Added to the interim

shares outstanding, excluding treasury stock, increased

dividend (¥14.50 per share), this gave a total dividend forfrom 349,134,628 shares at December 31, 2013 to

the year of ¥40 per share.

349,174,408 shares at December 31, 2014.

were made for new products in domestic and overseas,

Fund Procurement Conditions

increased from ¥550.6 billion at December 31, 2013 toenhancement of production capacity in India, andGroup companies acquire short-term loans payable¥852.7 billion at December 31, 2014.

restructuring of the domestic manufacturing system. In the

denominated in local currencies to use as working capital.

marine products business, investments of ¥11.4 billion

Meanwhile, funds for plant and equipment investment

were made for new products, research and development,

come primarily from internal reserves, including paid-in

The Group made investments of ¥65.9 billion in total
during fiscal 2014.
In the motorcycle business, investments of ¥41.4 billion

As a result, the market capitalization of the Company

capital and retained earnings.

Account receivable turnover

Cash provided by (used in)operating activities

Cash used in investing activities

Free cash flows

Cash and cash equivalents at
the end of the year

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

（%）

150

80

240

480

200

7.7

8
7.1

7.1

90
72

6.9
6.4

6

94

100

204

67

63

105

60

60

180

360

51
67
4

47

50

40

30

21

33

120

120

240

106

150

327

322
117.6 275

137

134

38

404

383

106.2

99.7

100
87.8

97.8

4
2

0

0

20

–2

60

50

120

–13
–53
0

–50
2010

2011

2012

2013

2014

–60

0
2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

0
2010

2011

2012

2013

2014

0

0
2010

2011

2012

2013

2014

2010

2011

Interest-bearing debt

90

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

2012

2013

2014

Debt/equity ratio (%)

Yamaha Motor Co., Ltd. ⎜ Annual Report 201491

Management Discussion and Analysis of Operations

Investor Information
As of December 31, 2014

Under the current MTP, the Company has improved its

Forecast for Fiscal 2015
The Company forecasts continued sales and profit increases

profit structure and financial position. As a result, in fiscal

in all business segments for its consolidated financial results

2015, the Company forecasts earnings approachingrecord-high levels and shareholders’ equity exceeding

for fiscal 2015, the final year of the current MTP.
The Company will expand the lineup of global models¥500.0 billion and income per share above ¥200, andand other product lines and proceed with further market

expects to maintain ROE of 15%. In this way, in fiscalrollouts of high-priced products in the motorcycle business,

2015, the Company aims to restore earnings and the

expand the motor product lineup, shift to high-priced

financial position to the level before the financial crisis

products, implement a hull strategy in the marine products(fiscal 2007).

product lines in the power products business, forecastingexchange rates are ¥115 against the U.S. dollar

higher sales in all business segments.

(a depreciation of ¥9 from fiscal 2014) and ¥130 against
the euro (an appreciation of ¥10 from fiscal 2014).

The Company forecasts profit increases in all businesses

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

Headquarters
2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-37-0134
Facsimile: +81-538-37-4250

Share priceto result from factors including higher sales and the impact
of cost reductions. The Company forecasts an operating

2,000

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
Thai Yamaha Motor Co., Ltd.
Yamaha Motor Vietnam Co., Ltd.
Yamaha Motor Taiwan Co., Ltd.
India Yamaha Motor Pvt. Ltd.
Yamaha Motor do Brasil Ltda.

1,000

0
2010

income ratio expected 20% level in the marine products

Capital Stock
Authorized: 900,000,000 shares
Issued: 349,847,184 shares
Number of Shareholders: 30,416

business to result from higher sales of high-priced products

Principal Shareholders

and cost reductions.

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

improvement in emerging markets, and an operating

Interest coverage

Cash dividends per share andpayout ratio(Times)

(¥)

40.00

40

16

Price/earnings ratio（%）(Times)

60

48

11.1

30

45

Securities ExchangeTokyo Stock Exchange, Inc.

20

8

30

24

20.6

20.1
10

4

20.4

10.00

15

12.5

12.6

12

12.5

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

0

0
2010

2011

2012

2013

2014

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

92

Yamaha Motor Co., Ltd. ⎜ Annual Report 2014

0

0

2010

2011

0
2012

Cash dividends per share

2013

2014

(Million shares)

200

12.18%
9.93
4.74
3.57
3.54
3.38
2.45
1.95
1.53
1.02

100

0
2010

2011

2012

2013

2014

Shareholder Composition
Securities companies

Japanese individuals
and others

7.2%

Foreign investors

41.0%

00.0%
29.4%

Japanese financial institutions

0
2010

00.0%
20.9%
Other Japanese corporations

23.8

15.50
5.0

2014

36

26.00

9.6

2013

300

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

44.2

12

2012

1.5%

46.6

12.1

2011

Trading volume

income ratio approaching the 5% level in the motorcycle
business on profitability in developed countries and profit

(Yen)

3,000

Date of Establishment
July 1, 1955

The forecast is based on the assumption that thebusiness, and expand the ROV product lineup and otherYamaha Motor Co., Ltd.

2011

2012

2013

2014

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

Payout ratio (%)

Note The payout ratio for fiscal 2010 is not listed,since the Company did not pay out any dividends.

You are also invited to review the Fact Book and Financial Dataon Yamaha Motor’s website at http://global.yamaha-motor.com/

Yamaha Motor Co., Ltd. ⎜ Annual Report 201493

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

Printed in Japan