CSR Report 2012

Business Information
Corporate Data (As of March 31, 2012)
Company name:
Headquarters:

Yamaha Corporation
10-1, Nakazawa-cho, Naka-ku, Hamamatsu
Shizuoka 430-8650, Japan
Year of establishment: 1887
Date of incorporation: October 12, 1897
Representative:
Mitsuru Umemura, President and Representative Director

Stated capital:¥28,534 million
Number of employees: Consolidated: 28,191;
Non-Consolidated: 4,764
The Yamaha Group:
Number of consolidated subsidiaries: 72(including companies located outside Japan)
Number of companies
accounted for by theequity method:
1

Business Segments
Musical Instruments

Electronic Devices

Yamaha manufactures and sells musicalinstru-ments, professional audio equipment,
and related products while expanding its
business lines to include the operation of music
schools, music media software production, andcontent distribution.

Yamaha manufactures and sells semiconductors for mobile phones, home theater AV
amplifiers, as well as communications andamusement devices.
* Following the transfer of the electronic metal products
business on November 30, 2007, the former Electronic
Equipment and Metal Products segment was renamed
the Electronic Devices segment from the fiscal year
ended March 31, 2009.

AV/IT

OthersYamaha manufactures and sells a range of audio
and visual (AV) equipment that includes AV
amplifiers, receivers, speaker systems, and Digital
Sound Projector™ surround sound systems, as wellas commercial online karaoke systems, routers,and IP conferencing systems.

Yamaha’s other businesses include
the Golf Products business, theAuto-mobile Interior Wood Components business, the Factory Automation (FA) business, and the Recreation

The Relationship Between Yamaha
Corporation, Yamaha Motor Co., Ltd., andYamaha Livingtec Corporation
Yamaha Motor Co., Ltd. (Yamaha Motor) manufactures and sells
motorcycles, marine products, snowmobiles, and other related products.
The company separated from Yamaha in 1955, becoming an independent business, and as a result is not included in the scope of this report.
Yamaha Motor was previously recorded as an affiliated company
accounted for by the equity method. Yamaha Motor was excluded from
Yamaha’s scope of consolidation as an equity-method affiliate followinga reassessment of the capital relationship between the two companies.
In addition, Yamaha Livingtec Corporation (YLT), which manufactures and sells system kitchens and bathrooms as well as other housing
fixtures and equipment, was excluded from Yamaha’s scope of consolidation on March 31, 2010. As a result, details of YLT have not been includedin the Company’s reports from the fiscal year ended March 31, 2011.
All three companies are working to increase their corporate values
in each of their respective businesses and fulfill their missions andresponsibilities to society on a global basis under the commonly shared
Yamaha brand.

* Following the transfer of four resort facilities
on October 1, 2007, the Recreation segment
was included in the Others segment fromthe fiscal year ended March 31, 2009.

Key Financial Indicator Trends(Consolidated)
Net Sales by Segment and Net Income (Loss)■Musical Instruments (left axis) ■AV/IT (left axis) ■Electronic Devices (left axis)■Lifestyle-Related Products (left axis) ■Others (left axis)■Net Income (Loss) (right axis)(Millions of Yen)

(Millions of Yen)

600,000

100,000

356,616300,000

39,5585,078

0–20,615
2007

2008

50,0000–4,921-29,381 –50,000
2009

2010

2011

FY

Consolidated Net Sales by Region■Japan ■North America ■Europe ■Asia, Oceania & Other Regions(Millions of Yen)

600,000

356,616300,000

0

2007

1

2008

2009

2010

2011

FY

Editorial Policy

Contents

The Yamaha Group issues a CSR report in order to communicate its
CSR vision and initiatives to the Group’s broad stakeholder base.
Since we first published the report in 2000, we have worked toprioritize information that is of greater interest based on our ongoing
dialogue with stakeholders.
We have continued to review the format of the report each year
since 2009, and have decided to take a two-pronged approach,posting detailed information and environmental performance dataon the website and presenting key points more concisely in a
printed report to make it easier to read and digest. In preparing thisreport, we referred to the Japanese Ministry of the Environment’s“Environmental Reporting Guidelines (2007 Version)” and the Global
Reporting Initiative’s “Sustainability Reporting Guidelines (v. 3.0).”

Business Information1

Editorial Policy / Contents

2

Top Message

3

Group Management

5

Organizations Included in the Scope of Reporting
It is Yamaha Corporation’s intention to report to the fullest extent
possible on activities carried out by the organizations that fall within
the scope of its consolidated financial accounting. The environmental
protection activities discussed in this report cover the 25 business sites(25,290 total employees, 90% of consolidated employees) that haveobtained ISO 14001 certification. Reported items other than environmental protection and social contribution activities are primarily
activities by Yamaha Corporation, although certain items focus on
activities carried out by Yamaha Group companies. We will continue
to expand the scope of reporting on Group company activities.

Special Feature

Yamaha’s Music Education Business 7
Contributing to the Popularization andDevelopment of Music andMusical Culture

11

Efforts to Popularize Music
Proposing Solutions that Employ Sound Technologies

Contributing to a Healthy
Global Environment

13

Environmental Management
Environmental Consideration in Piano Manufacturing Processes
Initiatives Aimed at Protecting Forests andMaintaining Biodiversity

Reports on the Yamaha Corporation Website
You can access the Yamaha CSR Report
web version at:

http://www.yamaha.com/
about_yamaha/csr/(Updated in September 2012)

Regarding Environmental Performance Data
Environmental performance data including
details not recorded in this report can befound on the Company’s website.

http://www.yamaha.com/about_yamaha/csr/environmental_
data/(Updated in September 2012)

Reporting Period
April 1, 2011 to March 31, 2012
* The above period is referred to as fiscal 2011 in this report.
* Certain initiatives underway prior to fiscal 2011 and information from April
2012 onward are also included in this report.

Next Scheduled Issue
We plan to issue the next CSR Report in August 2013.

Creating a Better Society

15

Contributing to Local Communities
Social Welfare Initiatives
Supporting Development of the Next Generation
Supporting Disaster Recovery

Building a Corporate Culture that Helps
Offer Better Products and Services

17

Pursuing Customer Satisfaction
Personal Information Protection and Management
Handing Down Skills to the Next Generation
Promoting a Better Work-Life Balance
Creating a Healthy Work Environment

Promoting Highly Transparent
Management and Mutual Understanding
19
with Business Partners
Compliance
Mutual Understanding with Business Partners
Fair and Timely Information Disclosure
Evaluation by Society
Overview of the Company’s Website

21

History

22

2Top Message

Yamaha is committed to developing musical culture and enrichingsociety through business activities grounded in sound and music,
and based on sound, transparent and sincere management.

Ongoing Relief Support Following theGreat East Japan Earthquake
The Yamaha Group has chosen “CREATING 'KANDO' TOGETHER”
as its corporate objective and endeavors to contribute to theenrichment of people’s lives and society through its businessactivities grounded in the fields of sound and music.
In Japan, relief and recovery following the Great East Japan
Earthquake that struck on March 11, 2011 has become a major
challenge. Since the earthquake, the Group has continued tosupport recovery by donating funds and materials for relief,sponsoring charity concerts and working with our network ofdealers in the affected areas. Yamaha has also given its fullcooperation to the School Music Revival project, an initiative
organized by the musical instruments industry as a whole
together with renowned musician Ryuichi Sakamoto, to support
young children.
We will continue with such efforts and strive to be ofassistance in some small way to recovery in the devastated areas.

Developing Musical Culture and EnrichingSociety Based on the Yamaha Corporation
Group CSR Policy
Under the Yamaha Management Plan 125 (YMP 125), theGroup’s medium-term management plan launched in fiscal
2010, Yamaha has established the management vision of
becoming a trusted and admired brand whose core operations
centered on sound and music as well as an achiever of growththrough both products and services. In order to attain these lofty
goals, we acknowledge the critical need to practice sound,transparent and sincere CSR management. Encapsulating thisapproach toward CSR, we formulated the Yamaha Corporation
Group CSR Policy in February 2010. This policy reflects the aim of
the Group’s CSR management to contribute to the developmentof musical culture and the enrichment of people’s lives. By
continuing to provide products and services that meet the
expectations of all customers who love music, we can better
contribute to the development of musical culture and to theprosperity of people and society worldwide.

3

As Yamaha develops operations on a global scale, we
believe it is vital that we do our part to address the issues faced
by local communities, together with such worldwide concerns
as global warming and biodiversity. With this in mind, Yamaha
publicly acknowledged its participation in and commitment to
the principles of the Global Compact advocated by the United
Nations in June 2011. Looking ahead, we will place considerable
emphasis on activities that are best suited to the particularnature of our businesses guided by both the Yamaha Corporation Group CSR Policy and the 10 Principles of the Global
Compact. Aiming to create an even better society, we willcontinue making efforts to tackle social issues such as bysupporting cultural and educational development in eachregion, using raw materials more efficiently and reducing theenvironmental impact of our development and manufacturing
activities. We will also support forest revitalization as a company
that utilizes wood materials to manufacture its products.

The 2012 CSR Report
The Yamaha Group has adopted a two-tiered approach topresenting its stance toward and activities regarding CSR. This
printed report provides key details of the Group’s principal
activities in a concise manner that is easier to read and digest.
More detailed information on the policies and programs thatform the foundation of the Group’s CSR activities, as well as
environmental performance data and other basic information isposted on the Group’s website.
The 2012 CSR Report includes a special feature on our
global music education business. In addition, this report has
been configured in line with the five core components of the
Yamaha Corporation Group CSR Policy, as with the 2011 issue,
and reports on key initiatives related to each component.
We welcome the opinions, comments, and inquiries of
all readers.

Mitsuru Umemura
President and Representative Director
Yamaha Corporation

The United Nations Global Compact
The United Nations Global Compact is a strategic policy
initiative for businesses that voluntarily commit to aligning
their operations and strategies with 10 universally accepted
principles in the areas of human rights, labour, the environment and anti-corruption. Top management of assenting andparticipating businesses publicly pledge their commitment
and work consistently to achieve the objectives espoused
under the 10 principles.

The 10 Principles of the United Nations Global Compact
Human
RightsPrinciple 1: Businesses should support and respect the protection of internationally proclaimed human rights; andPrinciple 2: Business should make sure that they are not complicit in human rights abuses.

LabourPrinciple 3: Businesses should uphold the freedom of association and the effective recognition of the right tocollective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Business should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

AntiCorruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

4Group Management
The Yamaha Group is working to implement CSR that reflects the five core componentsof the Yamaha Corporation Group CSR Policy based on fair and sustainable management.

Corporate Governance
Creating a Management System basedon Directors and Executive Officers

Basic Concept of the Internal Control System
Yamaha Corporation has established an internal control system
pursuant to Japan’s Companies Act and the Ordinance for Enforcement of the Companies Act. The Company endeavors to qualitatively enhance the internal control system.
The Yamaha Group has defined an internal control policy
as a specific measure pertaining to the Group-wide internal
control system.

Yamaha Corporation has adopted a management system based on
directors and executive officers.
In principle, the Board of Directors convenes once monthly
and is responsible for the Group’s management function including
the formulation of Group strategy as well as monitoring anddirecting the execution of business carried out by individual
divisions. Yamaha elects outside directors to ensure transparency
in management and enhance oversight functions, and increased
the number of outside directors by one at the Ordinary General
Shareholders’ Meeting on June 27, 2012.
Managing executive officers support the president, who is incharge of business execution. Based on this, senior executive
officers are assigned to oversee the operation of businesses andadministrative divisions. Executive officers are assigned to thedivisions dealing with important management issues under theoversight of the senior executive officers.

Business Continuity Plan (BCP)The Risk Management Committee, an advisory body to the Boardof Directors, has put the necessary systems and countermeasuresin place to respond to the various types of risk.
In fiscal 2008 Yamaha formulated the BCP Guidelines, thebasic Group-wide policy for its business continuity plan (BCP),
which is designed to enable the immediate resumption ofoperations in the event of an earthquake in Japan’s Tokai region orother major natural disaster that could cause damage to its
buildings or facilities. In January 2012, Yamaha made comprehensive amendments to its disaster-related regulations and formulated the BCP and Disaster Countermeasures Basic Regulations,which systemizes and streamlines the regulations.
In light of the impact that the Great East Japan Earthquake
and the floods in Thailand had on Yamaha Group business in 2011,
Yamaha will further enhance and promote its crisis management
system and business continuity plan.

Audit System that Ensures Fairness
and Transparency
Yamaha Corporation is a company with a board of auditors as
defined under Japanese law, and has worked to enhance
governance functions by introducing an executive officer system,
as well as by setting up a Corporate Governance Committee andan internal control system. These actions, in conjunction withconsistent audits conducted by the Company’s system of full-time
auditors as well as impartial and fair audits by highly independent
outside auditors, raise the effectiveness of governance.

Corporate Governance Structure (As of June 28, 2012)
General Shareholders’ Meeting
Appointment/Dismissal

Corporate
GovernanceCommittees

Appointment/Dismissal

Requestfor advice
Reports

Board of Directors
6 persons(Incl. 3 Outside Directors)

Audit

Board of Auditors
4 persons(Incl. 2 Full-time Auditors)(Incl. 2 Outside Auditors)
Corporate Auditors’ OfficeAppointment/Dismissal/Supervision
RequestManagement Council for advice

Reports

Representative Director 1 person

Corporate Committees

Appointment/Dismissal

Audit

Instruction

Reports
Consent to appointment
Judgments of appropriatenessof accounting audit

Accounting
Auditors

Accounting Audit

Internal Auditing Division

Reports

Reports

Executive Officers 15 persons
Individual Business Divisions, Administrative Divisions, Group Companies

5

Appointment/Dismissal

Internal audit

CSR Management
Engaging in corporate social responsibility (CSR) activities is one of
the Yamaha Group’s fundamental management policies. In specificterms, we express this policy commitment across a wide rangeof areas including the product quality, customer satisfaction (CS),procurement, environmental protection, and public relations fields.
In February 2010, we established the Yamaha Corporation
Group CSR Policy, a summary of the Group’s approach toward CSR.
Comprised of five key guidelines, this Policy outlines theCompany’s fundamental stance toward fulfilling its responsibilities
to its diverse stakeholders. Moving forward, the Group is working toensure that its employees have a complete understanding of the
Policy while actively promoting CSR management.

Yamaha Corporation Group CSR Policy−Our Aim is “Creating ‘Kando’ Together”−
The objective of the Yamaha Corporation Group is to continue to create “Kando*” and enrich culture withtechnology and passion born of sound and music, together with people all over the world.
Based on this Corporate Objective, Yamaha conducts its CSR activities according to the following guidelines
to further strengthen the bonds of trust with its stakeholders through its corporate activities and contributeto the sustainable development of society.
* ‘Kando’ (is a Japanese word that) signifies an inspired state of mind.

1

2

3
4

5

Yamaha provides support to people who want to perform music and people whowant to enjoy it by contributing to the popularization and development of music andmusical culture.

p.11

Yamaha works to maintain a healthy global environment by understanding thesignificance of protecting the natural environment, maintaining biodiversity, andreducing the burden on the environment, as well as promoting the proper use ofwood resources, and cooperating with forest protection activities.

p.13

As a “corporate citizen” that is a member of society, Yamaha contributes to creating abetter society by actively participating in many kinds of activities that further thedevelopment of the community and culture.

p.15

Yamaha complies with laws and high ethical standards, works to create an environment in which its personnel can draw fully on their sensitivities and creativity, andaims to build a corporate culture that will enable it to offer better products and services.

p.17

For its shareholders, who support its corporate activities financially, Yamaha aims fora high degree of transparency by disclosing management information and engaging
in active and sustained communication. For its business partners, Yamaha conducts
transactions fairly and transparently, endeavors to deepen mutual understanding,
and works to build strong relationships of trust.

p.19

6

Special
Feature:Yamaha’s Music
Education Business

Unlocking MusicalPotential in More People
Yamaha has continued to provide music education for over five decades.
Conveying the joy of playing music to people throughout the world,the Yamaha Group operates a music education business both in and outside Japanas a part of efforts to contribute to the enrichment of society.
Since opening the Music Class for Pre-school Children in Tokyo in 1954,
the Yamaha Group has provided music education to help enrich the growth of children andestablished and developed the Yamaha Music Education System, a unique education method.
Yamaha provides courses that meet the needs of each generation.
These include Yamaha Music Schools mainly for young children,
Yamaha’s Music Lessons for Adults for both music enthusiasts and individuals interested
in learning to play a musical instrument as a hobby, and Yamaha’s Wellness Program,which aims to maintain good health and improve fitness in older people in a fun way.

Music School Operating Structure
The Yamaha Group’s music education business is essentiallyconducted by the Yamaha Music Foundation, which is
responsible for developing a curriculum as well as teachingmaterials, and helps nurture skilled and professional instructors, and Yamaha Corporation, whose activities extend to theactual operation of the schools and the recruitment ofstudents as well as other areas aimed at business development. Both work to develop educational software, nurture
human resources and create new schools while bolsteringties as inseparable aspects of the music school business. In
addition, Yamaha Corporation contracts 450 dealers
nationwide to run the Yamaha Music Schools and educatesthe staff at each dealer in charge of reception services.

7

Yamaha Music Foundation•Software development •Training of instructors•Planning and sponsorship of events such as Junior Original Concert (JOC) (see p10)

Link
Yamaha Corporation•Operational guidance for dealers •Establishment of music schools•Recruitment of students, etc.

Providing a Variety of Courses

Yamaha Music School Nurtures Love of Music

Promoting Physical and Mental
Development in Children
by Fostering Rich Musical Talent
Yamaha Music School provides lessons that focus on nurturing a love ofmusic based on the three features of comprehensive music education,
timely education and group lessons.
Comprehensive Music Education entails lessons that encompass afull range of musical pursuits including listening, singing, playing, reading
and creating. Through these means, children are encouraged to express
themselves by thinking freely.
The concept behind Timely Education is to give children appropriate
guidance in accordance with the degree of their physical and mental
development to nurture growth potential during times of growth.
Curriculums are developed together with specialists in developmental
psychology and other fields.
Group Lessons enable children to enjoy rich musical experiences
through participation in ensembles while fostering a sense of cooperation
as well as respect for each other’s individuality.

Comprehensive
Music
EducationGroup
Lessons

TimelyEducation

Emphasizing Relationships andCommunication Between
Parents and Children
COMMENT

Beyond just teaching and learning,
we share the joy of creatingmusic with children
Besides simply giving lessons to students, Yamaha Music
School encourages children to create their own music.
To achieve this, we believe in the importance of mutual
understanding and building mutually enhancing relationships through music rather than taking the standard“teach and learn” approach. Instead of merely providing
authoritarian guidance, I try to
enjoy music together with mystudents. I aim to constantly develop personally as an instructorin the process.

As a general rule, pre-school children are to be accompanied by aparent or guardian at Yamaha Music School lessons. When parents andchildren take lessons together, the children not only feel more comfortable and uninhibited in the learning environment, but their interest
deepens after seeing the fun their parents are also having. Receiving
praise from both instructor and guardian during a lesson makes
children happy, providing the impetus for further growth. The lessons
also provide an opportunity for the adult to track the development of
the child, while conversations about the lessons and music at homeserve to strengthen communication.

Yamaha Music Education
System instructor

8

Providing a Variety of Courses

Freedom to Enjoy Performingwith Yamaha Music Lessons for Adults

Helping Enrich Lives Through Music
Yamaha provides music lessons for a wide range of age groups, from junior highschool students to adults, at around 1,500 locations throughout Japan. Currently, 37
different courses are on offer with some 110,000 students enrolled. Yamaha Music
Lessons for Adults aims to enhance the range and quality of the courses, which include
saxophone, drums, flute and other instruments, and to develop exceptional instructors to achieve this. Each course is basically comprised of group lessons, which provide
a platform for sharing the joy of music and performing with others. Students are also
encouraged to form their own bands and perform at events organized by Yamaha.

Yamaha Wellness Program
Enhances Health Through Music

Maximizing the Effects of Music fora Healthier Mind and Body
Yamaha provides a wellness program that aims to improve health through the power ofmusic. A trial run of the program was introduced in 2003 based on recommendations
from medical experts, with a full-fledged version of the Music and Health program goingnationwide in 2008. The aim of the program is to help people maintain good health intheir entire body, including the brain, by combining simple exercise with music. Thereare currently around 2,500 people enrolled in the program. Sing for Health program wasintroduced throughout Japan in 2012, which links the benefits of singing withenhanced health. Students have commented that the programs have made their lives
brighter, made them more positive and made it easier for them to walk up the stairs.

COMMENT

Rhythmic Movement Encourages Brain
Activation and Supports Anti-Aging
Making a daily habit out of rhythmical exercise associated withbrain activation is a great way to keep people feeling fit andyoung. Such exercise acts to stimulate the brain, align autonomic
nerves, improve posture and tighten the skin around one’s face.
As a result, we can expect a more youthful appearance as wellas other anti-aging benefits. Singing is also good training for thebrain as it makes use of the empathic brain. People that are constantly singing benefit mentally and tend to be very alive. When
we sing, we let our voice out in a different way than normal. The
rhythmic movement of the abdominal
muscles makes the singing voice ridethe breath as we exhaling, activating
serotonin neurons and making us feelbetter both physically and mentally.

, Doctor of Medicine
Professor, Department of Physiology,
Toho University School of Medicine
9Together with People Worldwide

Around 200,000 Students in Over 40 Countries
and Regions Worldwide Take Music Classes
Overseas, around 200,000 students are given the opportunity to learn the joy of music at
a Yamaha Music School in over 40 countries and regions, including Asia, Europe, North
America and Latin America. Each course is developed in light of the culture and characterof each region while being based on a philosophy and curriculum for music education
developed in Japan.

Spreading Yamaha’s Music Education Philosophy Around the World
Yamaha’s Junior Original Concert (JOC) Activities’ offer children studying at Yamaha Music
Schools the chance to create and perform their own compositions. We now receive around
35,000 original compositions from children every year. Concerts are held not only in Japanbut throughout Asia, Europe and other regions as well. In addition, the International JOC
event is held in Japan once a year. Through the common language of music, Yamaha’s
philosophy of music education is spreading throughout the world. Yamaha also does its
utmost to nurture its music instructors overseas. Leading instructors from Yamaha Music
Schools worldwide participate in the Yamaha World Teachers’ Forum*, which provides an
excellent platform for group discussions on music education and instruction.
*JOC and Yamaha World Teachers’ Forum are both sponsored by Yamaha Music Foundation

Countries in which Yamaha Music Schools Operate (2011)

Number of Students
Japan

500,000
Asia & Oceania

134,000
Europe37,000
North, Central and South America

North
America

9,000

21,000Overseas

192,000

Central and South America

12,00010

Contributing to the Popularization andDevelopment of Music and Musical Culture
The Yamaha Group continues to implement diverse activities around the world aimed at popularizing
music culture. Meanwhile, technology related to sound is being put to use in various social scenes.

Efforts to Popularize Music
Supporting Music Clinics and Contests
Yamaha Corporation continuously supports music clinics andcontests for people that have their sights set on becoming
performers as well as for instructors. In fiscal 2011, the Company
provided diverse support at The 17th Hamamatsu International
Wind Instrument Academy and Festival, 2011 Japan Band Clinic
and The 6th Shizuoka International Opera Competition, in all ofwhich participants pursue a high artistic standard. This wasachieved by providing musical instruments as well as their maintenance while also assisting with the running of the events.

2011 Japan Band Clinic

The 17th Hamamatsu International Wind
Instrument Academy and Festival

Held Wind Instruments Workshops in China
Since 2010, Yamaha Music & Electronics (China) Co., Ltd. has been
holding training workshops across major cities in China for thewind orchestras of leading schools in each region. Up to 45
workshops were provided by prominent instructors to an
aggregate total of 2,800 students in 31 cities by March 2012.

Workshop at
Chengdu No.7
Middle School in
Sichuan Province

Students enthusiastically receive tuition
at one of the workshops

Supporting Looktung Contest and Other School Musical Activities in Thailand
Siam Music Yamaha Co., Ltd. (SMY) supports musical activities atschools by holding marching band competitions and sponsoring
drumline contests. It also stages the “Looktung Contest” every year
for junior and senior high school students.
Looktung is a mix of traditional music and modern pop in
Thailand. SMY began to hold the contest in 2000 to provide an
opportunity for junior and senior high school students learning
Looktung to perform their music.
With cooperation from local companies and the community,
the event has grown into the longest-running Looktung contest in
Thailand. The number of schools that took part in 2011, including
regional contests, climbed to 127. Around 2,000 people filled thevenue of the finals to cheer on the 10 schools selected from theregional contests, making it a huge success.

Contestants give adazzling performance
to Looktung music

2011 Looktung contest finals

11Popularizing Music in Latin America
Yamaha Music Latin America, S.A. (YMLA), which is primarily
engaged in the sale of musical instruments in Central and SouthAmerica as well as the Caribbean, provides support for musiceducation in the region. The company held “Yamaha Caravana” in
Colombia in September 2011, offering participants the opportunity
to enjoy Yamaha musical instruments and other products. As partof the project, YMLA gave out around 5,000 recorders free ofcharge to Incolmotos-Yamaha S.A. to distribute to visitors as well as
students from 116 educational institutions. Some of the recorders
were provided to children living in the conflict zone of Cauca sothey had the chance to enjoy music by using them in a Concert for
Peace held there.
Additionally, the YMLA’s Branch in Venezuela is helping musiceducation project of Venezuelan government called “El Sistema*”for over 15 years by providing musical instruments and holding
seminars and contests. The project is conducted by organization
called “Funda Musical”, formerly known as “FESNOJIV**”.

Concert for Peace

Note*
A music education system that started in 1975 to promote the sound developmentof less fortunate youngsters through the practice of music in symphony orchestras
by providing free lessons and instrument rental.
Note**FESNOJIV:Fundacion del Estado para el Sistema Nacional de Orquestas Juveniles e
Infantiles de Venezuela

Eduardo Mendez, Executive Director (third from left) and Rafael Elster,
Project Manager (second from right), of FESNOJIV(Yamaha Corporation Headquarters, November 2010)

Proposing Solutions that Employ Sound Technologies
Creating Better Sound Environments with the Yamaha Speech Privacy System™,
Soundproofing Technology and Acoustic Conditioning Panels
Yamaha Corporation strives to enhance the listening environment
in diverse situations by leveraging technologies related to soundand their control systems.
Acoustic Conditioning Panels, used to adjust a room’s soundfield, help realize a clearer and more comfortable sound space
through a unique acoustic resonance tube structure. The panels
are thin and light, can be easily installed, and make it easier to pickup people’s voices in a conference room or assembly room. The
sound field of a room can also be comfortably adjusted, such as in
an audio room or a space for practicing musical instruments.
Avitecs™ soundproof rooms, which leverage accumulated
sound isolation technology, enable high-level freedom of designand have exceptional applicability. The soundproof rooms meet awide range of sound insulation needs that range from corporate
testing laboratories and examination rooms in hospitals to recording studios. The combined use of articulation panels ensures amore comfortable acoustic setting.
The Yamaha Speech Privacy System™, which helps provide anenvironment under which private conversations can be protectedin public places, uses a newly developed disruptive masker synthesized from human speech that encapsulates conversations. Thissystem masks the information in people’s conversations more
effectively than conventional energy masking.

COMMENT of a sound technology engineer

Yamaha’s unique technology realizes a comfortable and secure sound environment
Although not widely known, the comfort of a space is largely dependent on the sound environment. As an
example, whiny and whirring sounds that reverberate around the home or office make listening difficult,rendering a space less relaxing and increasing stress levels before you know it. In terms of privacy, people are
getting more and more concerned about whether sounds in the home can be heard next door or whether
their conversions at places such as hospital exam rooms or at bank counters are being overheard. At Yamaha,
we aim to meet potential social needs for sound environments that comfortably convey necessary sound andsuppress unwanted sound via unique sound-related technology.
Research and Development Center Yamaha Corporation, sound technology engineer.

12

Contributing to a Healthy Global Environment
Guided by the Yamaha Group Environmental Policy, each and every member of the Yamaha Groupis united in their efforts to promote environmental management.
Individual employees are in turn committed to activities that protect andcontribute to a healthy global environment.

Environmental Management
Acquired Integrated ISO 14001 Certification for the Yamaha GroupThe Yamaha Group adopted the environmental management
system ISO 14001 in fiscal 1997 as a key pillar of its environmental
management. As of fiscal 2006, 37 business sites, or 78% of the
Yamaha Group by number of employees, had acquired certification, including Yamaha Corporation, Group production-relatedcompanies in and outside Japan, resort facilities, and major sales
and marketing offices. Since then, the Group has continued toengage in environmental protection activities based on predeter-

mined environmental objectives and targets that take into accountthe circumstances of individual businesses.
Since fiscal 2010, steps have been taken to integrate ISO
14001 certification acquired at individual business sites with theaim of ensuring efficient environmental management throughout
the Yamaha Group. Integration of the certification was completedin August 2011 for domestic Group companies.

Eco Activities Undertaken by Employees
The Yamaha Group supports eco-activities that employees canperform as part of their daily family life. In fiscal 2011, Yamaha
updated its environmental enlightenment activities in the homepromoted in partnership with the YAMAHA UNION. Changes
included shifting from a household Eco-Account Book, which had
been in place for eight years, to the more practical Smart Life in My
Home Commitment. Under this commitment, employees
established, and committed to, eco-activity themes according totheir individual circumstances for a period of four months from

June to September. The majority of themes were related to saving
electricity, an issue that has been in the spotlight since the Great
East Japan Earthquake in March
2011. Yamaha received a total of 855
reports on the activities at the end of
the program and gave awards to themost exceptional initiatives.
Eco-activity award recipients(Yamaha Kagoshima
Semiconductor Inc.)

Promoting the Design of Environmentally Friendly Products Utilizing the LCA Method
The Yamaha Group works to identify the characteristics of theenvironmental impact of each product group and implement
eco-friendly design that counters the major areas of environmental
concern in each product. For this purpose, steps such as product life
cycle assessments (LCA) are taken that evaluate environmental
impact throughout the product life cycle, including material

procurement, production, transport, use and disposal. In addition, inorder to further confirm the environmental friendliness of products,
Yamaha promotes the management of chemical substances
contained in products, as well as the green procurement of materials, parts and components.

Primary Product Group Characteristics According to Life Cycle Assessments, and Initiatives
Acoustic instruments

Material
production

Use

Disposal•There is a need to consider resource depletion for
products made mainly from wood-based resources
during the material production phase even though
CO2 emissions are low. The degree of environmental
impact is therefore larger at the material production
phase than other phases.
•There is no energy consumption during use, and thelifecycle is long in general.

13Electronic Musical Instruments

Material
production

Use

Disposal•Large products require a lot of materials, creating alarge environmental load in the material production
phase, and with waste.
•The many different materials used in these products
necessitate chemical management in material
production and efforts to promote recycling at timeof disposal.
•Numerous products that do not consume standby
electricity and impose a relatively small burden on theenvironment during use.

AV Equipment, IT Equipment

Material
production

Use

Disposal•The environmental load is comparatively small during
material production because there are not that manylarge products.
•The many materials contained in these products
make necessary chemical management and efforts topromote recycling at time of disposal.
•The environmental load is comparatively large during
the use phase due to the power consumed by the
many devices in operation on a steady basis.

Environmental Consideration in Piano Manufacturing Processes
Energy Conservation Activities at a Factory in China
Hangzhou Yamaha Musical Instruments Co., Ltd., where production volume has been increasing, took steps to promote energy
saving measures that included enhancing equipment andstrengthening maintenance, and introducing patrols to ensure
appropriate energy-saving initiatives are being undertaken. Efforts
are also being made to reduce waste and bolster response toenvironmental risk.

In fiscal 2011, the factory reduced energy consumption by
15.3% per unit of sales on a year-on-year basis. In addition, thefactory passed Cleaner Production Audit at the end of 2011 from
Hangzhou City officials pursuant to China’s Cleaner Production
Promotion Law. It also attained ISO 14001 certification in May 2012.

Promoting CO2 Emission Reduction Measures through the Integration ofDomestic Piano Manufacturing Processes
Yamaha Corporation has implemented various energy conservation measures when relocating the grand piano manufacturing
process from its headquarters factory to its Kakegawa Factory andconsolidating it with upright piano production processes. The
introduction of a cogeneration system, a 33% space saving fromthe production line consolidation and the introduction of anindoor dust collection system combined with optimized operationof production equipment culminated in a reduction in CO2emissions of over 3,000 tons for the year.

Reduced Resources and CO2 Emissions in Piano Frame Transportation
Previously, Yamaha used disposable iron packing racks whentransporting piano frames from Japan to Hangzhou Yamaha MusicalInstruments Co., Ltd.
To eliminate this waste, we started introducing returnable
packing racks that can be used multiple times in July 2011. In
October of the same year, we switched to returnable packing racks
for all piano frames bound for China. At the same time, we shortened

the transport route. These efforts resulted in a 60-ton reduction in
CO2 emissions associated with the disposal of iron packing and a
1,050-ton reduction in iron resource costs for theyear. Going forward, we will examine the possibility of shortening transport distance and reducing
disposable packing materials, including for parts
aside from piano frames.
Returnable packing rack

Initiatives Aimed at Protecting Forests and Maintaining Biodiversity
Yamaha Forest Phase II: Planting Trees in Indonesia
The Yamaha Group has continued to engage in Yamaha Forest
tree-planting activities in Indonesia since fiscal 2005. Carrying on from
Phase I, which continued through to fiscal 2009 and anticipatedapproximately 110,000 young trees planted in around 127 hectares ofland, the Group launched Phase II, a five-year tree-planting program, infiscal 2010. The Japan International Cooperation Agency (JICA) and theIndonesian Ministry of Forestry are working in cooperation with
Yamaha in an area devastated by fire (approximately 50 hectares) in the
Mt. Ciremai National Park, located at the eastern end of West Java
province, to renew the natural forestand help the ecosystem recover.
Yamaha planted approximately
12,000 trees representing 18 local
species by the end of fiscal 2011 andplans to plant 50,000 trees by the end
Participants in the tree-planting activities
of fiscal 2014.

COMMENT of a participant in tree-planting

Protecting the Indonesian Environment
with the People of JapanI was impressed that so many
people from Japan gave thought tothe environment in Indonesia. As acitizen of Indonesia, I would like tocontinue with these activities for thesake of the generations to come.

P.T. Yamaha Music Manufacturing Indonesia

Support for the Enshunada Coastal Forest
The Yamaha Group has been working to renew the Enshunada
Coastal Forest, which suffers from extensive weevil damage, as a
“Shizuoka Forests of the Future Supporter” since fiscal 2007. In
fiscal 2011, around 160 people including Yamaha employees andfamily members participated in planting a total of 160 trees using
culture soil made from wood-based waste material. Over the past

five years, a total of 760 trees
have been planted representing
10 species of broad-leaf treewith almost 600 people participating in the project.
Planting trees (fiscal 2011)14

Creating a Better Society
As a good corporate citizen, the Yamaha Group engages in activities
that contribute to the development of regional societies.
The Yamaha Group is dedicated to helping create a better society by supporting the growthof children, the leaders of the next generation, particularly in the field of education.

Contributing to Local Communities
Urban Development through Music Festival “Hamamatsu Jazz Week”
Each year, Yamaha Corporation holds “Hamamatsu Jazz Week” incooperation with the city of Hamamatsu and various organizations.
The 20th anniversary of the event was a lively affair held in October
2011. The Company provided a diverse program to ensure peopleof any generation would have fun, including a concert for parents
and their children and a unique new project called “Jazz Koza” thatfuses rakugo comic storytelling with jazz. Through this event,Yamaha Corporation helps the city of Hamamatsu develop withmusic at its center.
Yamaha Jazz Festival in Hamamatsu 2011,
which concluded the Jazz Week

Cooperated with Kaohsiung Museum of Labor to Promote Industrial Development
Kaohsiung Yamaha Co., Ltd. manufactured guitars in Taiwan from1971 to January 2007. The contribution the company made to theguitar industry in Taiwan as well as its corporate culture centeredon quality control and employee development means it continues
to be rated highly by local people even following its closure due tothe consolidation of business sites into China and Indonesia.
An exhibition showcasing the contribution of the company
and its employees to the guitar industry as well as the company
history was held at the Kaohsiung Museum of Labor in Kaohsiung,Taiwan from May to August 2011. Yamaha was impressed by theSocial Welfare Initiatives

concept of the exhibition, which was aimed at further promotion ofindustry in Kaohsiung, and cooperated by providing material fromthe time to the organizing city.

Display showcasing Kaohsiung Yamaha

Yamaha Supports Spanish Workshops
for Visually Impaired
Yamaha works closely with ONCE*, the Spanish national organization for Visually impaired people, in the hosting of a series of“Discover the Senses” workshops.
Within these workshops, there is a program that uses chords,
sounds, and rhythms to demonstrate how different sounds areconnected with a range of emotions. During the Workshop heldin 2011, Yamaha Music Europe GmbH’s Ibérica Branch provided
teachers with digital equipment including keyboards as well as
technical support.
Yamaha plans to continue supporting workshops held inother cities in Spain during 2012.

15

Workshop participants operating keyboards*ONCE：La Organizacion Nacional de Ciegos Espanoles

Supporting Development of the Next Generation
Contributing to Human Resource Development by Supporting Vocational Schools
Yamaha Electronics (Suzhou) Co., Ltd. (YES) implemented a
two-year skills training program for students attending vocational
schools in Gansu Province. In fiscal 2011, approximately 50
students received technical guidance on soldering, screw fastening and machine assembly by YES engineers as well as practicalon-the-job training at the YES factory. The on-the-job training

course accepted students fromvocational schools in Gansu andYunnan provinces in fiscal 2011,
with the number of students thatreceived training exceeding 900
as of the end of fiscal 2011.
Students from the skills training
program in fiscal 2011

Handmade Guitar Workshop and Other Programs for Children
Yamaha Corporation provides programs for children focused on
the themes of manufacturing and science in response to therequests of the local community. In fiscal 2011, the Company held
several events that provided an opportunity for youngsters
to experience the mechanisms of sound through musicalinstruments. Such events included “Make and Play a Handmade
Guitar – Oneness” held in collaboration with an NPO group led byuniversity students in which children created their own handmade
one-string guitars that they then had fun playing together. In
another event called the Strange Piano Experience, children
learned about the properties and structure of materials used in
upright pianos that they got to take apart.
COMMENT of a supervisor in the handmade guitar workshop

Conveying the Appeal of MusicalInstruments to More and More Youngsters

Childrencrafting theirhandmadeguitars

Children performing withthe handmade guitars
they created in the guitar
workshop

These workshops have children
design and create their own
one-string guitar using familiar objects
such as toothpicks and cardboard. The
aims of the workshops are to foster
interest in music by helping themgrasp how sound is generated fromguitars and to communicate the funof performing.
Guitar & Drums Business Unit, Wind,
String & Percussion Instruments Division Yamaha Corporation

Observing the inside of a piano

Supporting Disaster Recovery
Support for Those Affected by
the Great East Japan Earthquake
The Yamaha Group has supported relief efforts following the Great
East Japan Earthquake by donating funds and supplies, providing
Yamaha-made “Projectphone” equipment for use as communications infrastructure and conducting charity concerts.
As part of these efforts, the Yamaha Symphonic Band visited
Akasaki-cho, Ofunato City in Iwate Prefecture and performed acommunity concert in October 2011. Everyone from the elementary school, which was used as the concert venue, as well as people
from the temporary housing units, which were set up on theschool premises, had an enjoyable time.
Yamaha also participates in the School Music Revival Fund asa member of the Japan Musical Instruments Association. Live
performances at the event “Ryuichi Sakamoto – Playing the Pianofor School Music Revival” held in Tokyo in December 2011 weretransmitted to venues in Miyagi and Fukushima prefectures using
Yamaha Corporation’s RemoteLive™ technology*.
Moving ahead, Yamaha will continue to implement unique

People enjoying
the performance at
a community concert

initiatives over the long term to assist with recovery in theaffected areas.
*RemoteLive™ is a live performance broadcast technology that delivers video, audio
and piano performance information simultaneously to multiple locations throughthe Internet.

Supporting Flood-Affected Areas in Thailand
and Other Regions of Southeast Asia
Yamaha Corporation donated ¥3 million to the Japanese Red Cross
Society on November 22, 2011 to help with local relief efforts
following the floods in Thailand and other parts of Southeast Asia
caused by torrential rains that started in July 2011.

16

Building a Corporate Culture that Helps
Offer Better Products and Services
The Yamaha Group continues to deliver products and services of outstanding quality andvalue to customers in line with a key component of its management philosophy to emphasizea customer-oriented and quality-conscious approach to management. To achieve this, we also
work to secure company growth together with a prosperous life for each of our employees.

Pursuing Customer Satisfaction
Quality Management Systemline with Group-wide quality policies and targets as well as important quality-related measures. Information on cases of improvements made in quality is shared between divisions as a means toensure the production of high quality products.

The Yamaha Group has in place a Group-wide quality management system. As of March 31, 2012, 28 divisions in Japan andoverseas had attained certification for the international standard
ISO 9001. Each business division set goals at the divisional level inInformation Disclosure regarding Product Safety and Defects
In the event that an accident is caused due to the products,
services and facilities provided to customers by the YamahaGroup, we notify the relevant authorities in line with laws andregulations, undertake a product recall necessary to ensure
customer safety and actively disclose information to customers in
an appropriate manner.
In November 2011, the Group notified customers via its website

and direct mail about a product defect in its outdoor type soundproof room “Silent House” in which there is a probability of theeaves over the entrance falling down due to the onset of rustcaused by rainwater. As of May 31, 2012, Yamaha had completed
response for 165 of the 215 products sold in total by conducting
free inspections and repairs of the eaves.

Improving Products from the Customer’s Point of View
In order to make sure our products are used safely and comfortably, we focus on providing information in product manuals,
catalogs and on our website in addition to designing productsthat are easy to use for everyone. We are also making improvements in products and other areas by reflecting customer opinion.

Prac tic al

MCR (component system) with added
track skip button and preset change
button to satisfy customer demands.
(AV Products Division)

Yamaha Corporation Digital Musical Instruments
Division and AV Products Division

ExampleYamaha Corporation’s Digital Musical Instruments Division is working
to improve the usability of electronic instruments. The division
conducts usability tests concerning the operability of products andtakes into account aspects that include the use of easily viewable
colors for people with weak color vision on screen displays used in
products such as keyboards and web versions of product manuals.
In addition, the AV Products Division actively collects and analyzes
customer feedback with the aim of improving products.

TyrosTM4 multifunction keyboard for theoverseas market uses screen display
colors and LED colors that are easily
viewable for people with weak color vision.
(Digital Musical Instruments Division)

Personal Information Protection and Management
Protection and Management of Customers’ Personal Information
Yamaha protects and manages the personal information of its
customers in accordance with its privacy policy.
In 2004, Yamaha put in place a system of Personal Information Protection Regulations to clarify the rules governing thehandling of personal information in-house. At the same time, we
appointed an officer to assume overall responsibility for thehandling of personal information. Directly reporting to this officer,
a secretariat was established within Yamaha’s Legal Affairs Department to promote personal information protection.
Together with the appointment of administrators to oversee

17

the handling of personal information in each division, we haveestablished a responsible reporting framework. Through these
initiatives, Yamaha is promoting the protection of personal
information while ensuring a timely and appropriate response in
the event of an incident.
Each year, the secretariat takes the lead in conducting education, training and audits targeting those divisions that handle
personal information. At the same time, measures are
implemented in an effort to enhance awareness toward theimportance of personal information protection.

Handing Down Skills to the Next Generation
Focus on Strengthening Manufacturing and Handing Down Skills
Prac tic al
ExampleThe Yamaha Group works to improve skills and capabilities in eacharea while promoting the optimization of production structure in
Japan and overseas. At our factories in Japan, many employees withhigh-level skills and capabilities have been reaching the retirement
age in recent years. In light of this, the Group has been implementing the Skill Registration System and From-To Program to ensurethat core production skills are faithfully passed down to the next
generation as well as cross-training key manufacturing personnel
in order to preserve Yamaha manufacturing skills and traditions.

Yamaha Music Manufacturing Asia
Indonesia-based P.T. Yamaha Music Manufacturing Asia (YMMA),
which produces digital musical instruments and professional audio
equipment for the global market, was awarded the Monodzukuri
HRD Contribution Award in Japan Management Association’s Good
Factory Awards 2011. In particular, YMMA was highly evaluated for
initiatives aimed at ensuring the smooth management ofmulti-product production processes led by Indonesian employees.

Promoting a Better Work-Life Balance
Shortening Total Work Hours and Creating a Flexible Work Hours System
In its efforts to create a better work-life balance, the YamahaGroup strives to shorten total work hours. In fiscal 2011, the Group
introduced the “Go Home at the Same Time Day” system in which
all employees leave the office by a certain time. This opens
employees’ eyes to style of work in which they are more consciousof time.
Yamaha Corporation was recognized for its support in thedevelopment of the next generation by Japan’s Ministry of Health,Labour and Welfare in 2008 and took steps to promote a five-year
action plan toward further advancement of a better work-lifebalance. Among a host of initiatives, we
extended the period of eligibility forshortened work hours for employees withsmall children, established a scheme ofshortened work hours for parents to participate in school events and further personal “Kurumin” mark certification recognizing support
development, and introduced an employee for the development of
the next generation.
assistance program (EAP).

COMMENT of employee who took child care leave

It was a valuable experience giving full
attention to my family.
I took child care leave for three
weeks when my second son wasborn. It was a valuable experience tobe able to give my full attention to
my family for such a long andfulfilling period of time. Everyday I
had the opportunity to prepare
meals and go shopping for myGroup,
family, drop off and pick up my ProductProduce
Development
Department,
oldest boy from kindergarten and
Digital Musicalplay with him when we got home.
Instruments Division
Yamaha Corporation

Creating a Healthy Work Environment
Strengthening Education to Prevent Harassment
The Yamaha Group prohibits any language, behavior or unfair
discrimination that could be construed as harassment pursuant to
the Yamaha Group Compliance Code of Conduct and company
rules and regulations. In addition, we have set up a counselingdesk and are working to resolve individual issues. In fiscal 2011, werevised the Compliance Code of Conduct based on a definition ofharassment issued by the Japanese government. We clarified theprohibition of any form of harassment, not only sexual harassment, and worked to better educate employees and promote
understanding of the issues involved through workplacemeetings and management training.

Ensuring Safety and Health for Employees
In order to ensure the safety and health of employees, Yamaha
Corporation made mass efforts in such areas as effective use of thehealth check results, mental healthcare and anti-smoking
campaigns across the Yamaha Group.
Yamaha also tackled with preventing the overseas industrial
accidents. In fiscal 2011, some head office officials visited both P.T.
Yamaha Indonesia (YI) and Hangzhou Yamaha Musicalinstruments Co., Ltd. aimed to inspect mainly wood processing
machinery where there is a high risk of accidents and took

Discussion on safety measures
for machinery used inwood processing (YI)

measures such as ensuring safety covers are used for theequipment.

18

Promoting Highly Transparent Management andMutual Understanding with Business Partners
The Yamaha Group consistently strives for the highest transparency in its management.
While adhering to all statutory requirements as a matter of course,
the Group aims to promote outstanding compliance management in line with social standards andbusiness ethics. At the same time, we work diligently to ensure the timely disclosureof all relevant information to investors and shareholders and to fully engage in fair and opentransactions based on a deep mutual understanding with business partners.

Compliance
Promoting Compliance in Accord with Regional Characteristics and Changes in Society
The Yamaha Group began in earnest to implement complianceactivities in Japan in 2003 with the formulation of the Compliance
Code of Conduct at the same time as the establishment of theCompliance Committee. Additions were made to the Compliance
Code of Conduct in 2006, including an article regarding theprohibition of forced and child labor, and other information
essential for Group companies with overseas business interests.
Based on this, the Group’s overseas companies formulated respective codes of conduct in the relevant local language that reflect
individual governing local laws and regulations. These initiatives
have enabled us to establish a structure suitable for global
business development.
Taking into consideration revisions to various laws andregulations after 2006 as well as changes in social conditions, theYamaha Group revised the Japanese version of its Compliance
Code of Conduct in April 2011. Detailed explanations were added
covering such items as revisions to consumer, antitrust and labor
legislation, changes to expectations in companies held by society

and the spread of social media. When distributing the revised
version, the Group held briefing sessions at each workplace toensure better understanding of the revised content and to convey
the importance of responding to changes in society. Approximately 10,000 employees took part in the sessions, which
represents almost all employees in the Yamaha Group in Japan.
Going forward, the Yamaha Group plans to revise local
versions of the Compliance Code of Conduct to reflect changes ineach region and in consideration of revisions made to theJapanese version. In addition, in order toincrease the effectiveness of compliance,each division and Group company promotes
compliance activities in accord with business
content. The Group recognizes the need toincrease each division and Group company's
abilities to consider and make judgments oncompliance as a future challenge.
The Compliance Codeof Conduct

Mutual Understanding with Business Partners
Adhering Strictly to Open and Fair Transactions
The Yamaha Group considers suppliers and subcontractors to be
partners in its effort to live up to the Group’s business philosophy.
Accordingly, the Group strives to maintain relationships of trust
based on open and fair business dealings. On this basis, the Grouphas worked diligently to incorporate this concept into its Compliance Code of Conduct and to implement education and training

programs for its employees while gaining the understanding ofbusiness partners. These endeavors are aimed at avoiding any
abuse of a dominant bargaining position and to ensure thattransactions remain open and fair adhering strictly to statutory
requirements as well as social norms.

Promoting CSR Procurement Activities
In its efforts to ensure that procurement is undertaken inaccordance with the Company’s various policies, including the
Yamaha Material and Component Procurement Policy, and whenconcluding new contracts with suppliers, Yamaha Corporation’s
Procurement Division conducts surveys of the CSR measures
implemented by business partners.
Drawing on the results of surveys, Yamaha Corporation
requests that suppliers implement improvement measures when
it has been determined that such measures are required. The

19

Company has also added a rating of CSR-related initiatives to thelist of criteria for determining whether to initiate business transactions with new suppliers. When requesting improvement
measures, the Company meets directly with suppliers to explain
its policies and gain understanding. These meetings also serve as
an opportunity to provide feedback on survey score results. In
fiscal 2011, the Company only concluded contracts with suppliers
who were not required to implement improvements.

Fair and Timely Information Disclosure
Active IR* Activities to Boost Understanding of the Company
Yamaha Corporation works to disclose information in a fair andtimely manner without disparity in line with our Disclosure Policythat was formulated to clarify rules for information disclosure.
In addition to holding quarterly results conferences for
institutional investors in Japan, the Company conducts briefings
on its management policies and individual business segments aswell as factory and facility tours as required. For institutional
investors in other countries, the Company makes available English
translations of all information provided to investors in Japan. In
addition, the Company’s president and directors visit investors
overseas several times a year to foster mutual understanding
through direct communication that encompasses explanations of
the Company’s management plans as well as the status of its
businesses.
Based on the idea of expanding our shareholder base,
Yamaha Corporation commenced briefings for individual
investors in different cities in Japan from fiscal 2010. Briefing
sessions were held in Sapporo in fiscal 2011. The Company also
runs a special benefit plan every year designed to ensure satisfaction in all individual shareholders.
*IR: Investor Relations

A conference forindividual investors

A briefing session for institutional investors

Major IR Activities in the Fiscal Year Ended March 31, 2012
Quarterly result conferences Each quarter (Four times annually)
One-on-one meetings

250 times annually

Visits to overseas investors

Three times annually (U.S., Europe, Asia)

Evaluation by Society
Inclusion in Socially Responsible Investment Indexes
Yamaha Corporation has been included in Socially Responsible
Investment (SRI) indexes* and funds in Japan and other countries
not only based on financial evaluation, but also from environmental and social contribution standpoints. The Company continues
to be listed in some of the world’s most prominent SRI indexes,
including the FTSE4Good Global Index (managed by Britain’sFTSE), and the Morningstar Social Responsibility Index (MS-SRI).
As one way of measuring financial soundness, each year
Yamaha Corporation requests a long-term bond credit assessment from bond ratings agencies. The results are shown in thetable at right.

Credit Ratings (As of March 31, 2012)
Rating and Investment Information, Inc. (R&I)

A

Japan Credit Rating Agency, Ltd. (JCR)A+* SRI (Socially Responsible Investment) Index: An index that monitors movements inthe share prices of companies grouped together selected for their outstanding
financial and CSR qualities.

20

Overview of the Company’s Website
WEB

http://www.yamaha.com/about_yamaha/csr/(Updated in September 2012)

Providing detailed information
on a broad spectrum of topics
The Yamaha Group has set up a website dedicated to deepening
the understanding of stakeholders with respect to the Group’s
CSR management and endeavors.
In addition to the themes covered by this CSR Report, thewebsite provides detailed information on a broad spectrum of
topics. For example, the website offers environmental performance data together with the latest CSR topics updated on aperiodic basis. The Yamaha Group is committed to addressing
the diverse interests of stakeholders.

Major Disclosure and Information Items
Management Emphasis on CSR• Message from the President• Management Emphasis on CSR• Yamaha Corporation
Group CSR Policy• Management System
With Our Customers• Quality Assurance• Ensuring Product Safety• Product Information Disclosure• Improving Customer Satisfaction• Reflecting Customer
Concerns in Customer
Response and Support• Policy regarding the Protectionof Personal Information
With Our Shareholders• Policies for Retained Earnings
and Returns to Shareholders• Proactive Investor Relations
Efforts to Promote
Understanding of the Company• Inclusion in Socially
Responsible Investment Indexes

For the People
We Work with
• Initiatives for Employees• Basic Policy on Hiringand Employment• Job-Tailored Training
and Education• An Environment that
Supports Manufacturing
and Transmission of Skills• Initiatives for a Better
Work-Life Balance• Assisting Women’s Careers• Measures to Prevent Harassment• Health and Safety• Initiatives for Business Partners• Mutual Understanding
with Business Partners• CSR Procurement Activities
With Society• Activities Grounded inSound and Music• With Local communities• Social Welfare andDisaster Relief Activities

Environmental Initiatives• Environmental Management• Environmentally Friendly Products• Initiatives in Energy-Conserving Products• Initiatives in Resource-Conserving
Products• Conservation and Effective Useof Wood Resources• Reducing Substances with Significant
Environmental Loads• Products that Support the Environment• Green Procurement Activities• Environmentally Friendly
Business Activities• Measures to Address Global Warming• Waste Reduction and Resource Recycling• Management of Chemical Substances
and Reduction of Emissions• Effective Use and Conservationof Water Resources• Initiatives at Offices• Environmental Contribution Activities• Forests/biodiversity
Preservation Initiatives• Regional Activities

Please see the “Investor Relations” section of our
website for financial-related information.
WEB

http://www.yamaha.com/about_yamaha/ir/

This section releases financial information and IR materials suchas the Yamaha Group’s management policy and management plans.

21

Environmental
Performance Data
• Environmental
Accounting• Environmental Data
• Environmental Data
by Site• ISO 14001-Certified
Sites• History ofEnvironmental Initiatives
Policies andGuidelines, etc.
• Yamaha Corporation
Group CSR Policy• Yamaha Group
Environmental Policy• Yamaha Material andComponent
Procurement Policy• Yamaha Timber
Procurement andUsage Guidelines• Green Procurement
Standards

History
1887

Torakusu Yamaha successfully repairs a reed organ at Hamamatsu’s
Jinjo elementary school (currently Motoshiro Elementary School) 1
builds his first reed organ in November of the same year

1889

Establishes Yamaha Organ Works, predecessor to
Yamaha Corporation, as a limited partnership

1897

Establishes Nippon Gakki Co., Ltd. with capital of ¥100,000

1900

Begins manufucturing pianos

1949

Shares listed on the Tokyo Stock Exchange

1954

Commences organ classes (predecessor of Yamaha Music School) 2

Company founder
Torakusu Yamaha

1

Begins manufacturing audio products (Hi-Fi player)
Begins producing motorcycles
1955

Motorcycle division split off to form Yamaha Motor Co., Ltd.

1958

Begins manufacturing sports equipment (FRP archery products)
Establishes first overseas subsidiary, Yamaha de México, S.A. de C.V., in Mexico

1959

Begins manufacturing electronic organs (Electone™)1960

Establishes U.S.-based sales subsidiary Yamaha International Corporation(currently Yamaha Corporation of America)

1962

Launches recreation business

1964

Begins manufacturing lifestyle-related products (FRP bathtubs)

1965

Begins manufacturing wind instruments

1966

Inaugurates Yamaha Music Foundation(changes status to general incorporated foundation in 2011)

2

Establishes Yamaha Europe G.m.b.H., a sales subsidiary in West Germany (at the time)
1968

Conducts Japan’s first issuance of shares at market price1971

Begins manufacturing semiconductors

1980

Establishes the Piano Technical Academy 3

1987

Changes company name from Nippon Gakki Co., Ltd.
to Yamaha Corporation to mark the 100 anniversary

3thBegins Yamaha English language schools
1989

Establishes Tianjin Yamaha Electronic Musical Instruments, Inc., a subsidiary engaged
in the manufacture and sale of digital musical instruments in China

2002

Establishes Yamaha Music & Electronics (China) Co., Ltd.
as an investment management company in China

4

Establishes Germany-based Yamaha Music Holding Europe GmbH(currently Yamaha Music Europe GmbH) as a holding company in Europe
2005

Acquires Steinberg Media Technologies GmbH,a developer and seller of computer software for music production in Germany

2007

Establishes Yamaha Music Entertainment Holdings, Inc.,
the holding company for Yamaha’s music entertainment business2008

Acquires Austria-based piano manufacturer L. Bösendorfer Klavierfabrik GmbH 4
Acquires France-based Nexo S.A., a manufacturer
and seller of professional acoustic speaker system

2010

5

Opens newly reconstructed Yamaha Ginza Building as a site for the transmission
and communication of information related to music and sound 5
Transfers shares in Yamaha Livingtec Corporation,a subsidiary in the lifestyle-related products business
Consolidates domestic piano production sites into Kakegawa Factory 6

2012

Consolidates domestic wind instrument
production sites into Toyooka Factory
Celebrates 125 anniversary of start of business (October)
th

6

22

YAMAHA CORPORATIONCSR Section, General Administration Division
http://www.yamaha.com/

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