CSR Report 2010

Message from the President

Yamaha Group CSR
Through business activities founded on sound and music, the YamahaGroup strives to achieve its corporate objective of “Creating ‘Kando*’
Together.” Yamaha Group’s philosophy of management is customeroriented and quality-conscious, transparent and sound, values people
and is in harmony with society, and we work to fulfill this philosophy in
our activities. We consider corporate activities in alignment with thisphilosophy to be CSR-oriented management. In February 2010, weestablished the Yamaha Corporation Group CSR Policy, a summary of
the Group’s approach to CSR. Based on this policy, we intend towork as a whole to further promote CSR activities.
* ‘Kando’ (is a Japanese word that) signifies an inspired state of mind.

In April 2010, we launched our new medium-term management
plan, “Yamaha Management Plan 125” (YMP125), under which we will
aim to create the foundations for future growth in the lead up to
President and Representative Director,
Yamaha Corporation

Mitsuru Umemura

Yamaha’s 125th anniversary in 2013. We also established a vision forwhat Yamaha should be: a trusted and admired brand, with operations centered on sound and music, and an achiever of growththrough both products and services. Promoting CSR-oriented management is a crucial component of our effort to be a trusted andadmired brand.
CSR-oriented management as practiced by the Yamaha Group is
distinguished by the fact that we contribute to the development ofmusical culture and the enrichment of society through our businessactivities themselves, not as an afterthought. By making the most of
Yamaha’s strengths to provide products and services that satisfy all
customers who love music, we can contribute to the development ofmusical cultures and enrich lives worldwide.

Contents

01 Yamaha Corporation

Message from the President

01

Feature03

Emphasis on Corporate
Social Responsibility (CSR) in Management

06

With Our Customers

07

For the People We Work with

09

With Our Shareholders

11With Society

12

Environmental Initiatives

14

Management Structure

16

Third-Party Opinion

17

Company Outline

18

In tandem, as the Yamaha Group develops operations on a global
scale, we believe it is vital to do our part to address the issues faced

Yamaha Corporation Group CSR Policyby local communities, as well as worldwide concerns such as global

Our Aim is “Creating ʻKandoʼ Together”

warming and biodiversity. The Yamaha Group will continue promoting

The objective of the Yamaha Corporation Group is to continue to create

efforts to address social problems in a variety of ways, focusing on“Kando*” and enrich culture with technology and passion born of soundthose activities best suited to the particular nature of our businesses.

and music, together with people all over the world.

We will make efforts to support cultural and educational developmentin each region, use raw materials more efficiently, and reduce theenvironmental impact of our development and production activities.

Based on this Corporate Objective, Yamaha conducts its CSR activities
according to the following guidelines to further strengthen the bonds oftrust with its stakeholders through its corporate activities and contribute to
the sustainable development of society.

We will also support forest revitalization as a company that utilizes
wood materials to manufacture its products.

1. Yamaha provides support to people who want to perform music andpeople who want to enjoy it by contributing to the popularization and2010 CSR Reportdevelopment of music and musical culture.

This fiscal year, our CSR Report includes features an effective utilization

2. Yamaha works to maintain a healthy global environment by understand-of wood materials and tree-planting, representing Yamaha’s relationshiping the significance of protecting the natural environment, maintaining

to trees in our quest to achieve a sustainable society. We also offer

biodiversity, and reducing the burden on the environment, as well as

examples of social contribution through sound and music, contribu-

promoting the proper use of wood resources, and cooperating with

tions to local communities, and environmental conservation initiatives,among others. The policies and systems underlying these activities,
as well as environmental data and other basic information, can befound in the digital version of the report available on Yamaha’s corporate website. We welcome any opinions or suggestions you may have.

forest protection activities.
3. As a “corporate citizen” that is a member of society, Yamaha contributes
to creating a better society by actively participating in many kinds ofactivities that further the development of the community and culture.
4. 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, and aims to build a corporate culture that will enable

September 2010

it to offer better products and services.
5. For its shareholders, who support its corporate activities financially,
Yamaha aims for a high degree of transparency by disclosing management information and engaging in active and sustained communication.
For its business partners, Yamaha conducts transactions fairly andtransparently, endeavors to deepen mutual understanding, and works
to build strong relationships of trust.
(Established in February 2010)

Editorial Policy
The Yamaha Group issues the CSR Report in order to communicate our
CSR vision and initiatives to our broad stakeholder base. Since we firstpublished the report in 2000, we have worked to prioritize information thatis of greater interest based on our ongoing dialogue with stakeholders.
After reviewing our format this year, we decided to take a two-pronged
approach, posting detailed information and environmental performancedata on the website and presenting key points more concisely in theprinted report to make it easier to read and digest.
In preparing this report, we referred to the Ministry of the Environment’s“Environmental Reporting Guidelines (2007 Version)” and the Global
Reporting Initiative’s “Sustainability Reporting Guidelines (v. 3.0).”

Yamaha Group companies. We will continue to expand the scope ofreporting on Group company activities.

Organizations Included in Scope of Reporting

Reporting Period

It is Yamaha Corporation’s intention to report to the fullest extent possibleon activities carried out by the organizations that fall within the scope of
Yamaha’s consolidated financial accounting. The environmental protection
activities discussed in this report cover the 26 business sites (21,154 total
employees, 82% of consolidated employees) that have obtained 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

April 1, 2009 through March 31, 2010

Reports on the Yamaha Corporation Website
You can read the Yamaha CSR Report 2010 Web Version at:
http://www.global.yamaha.com/about/csr/

Regarding Environmental Performance Data
Environmental performance data not included in this report can be foundon our website.
http://www.global.yamaha.com/about/csr/environment/data• The above period is referred to as “fiscal 2009” in this report.
• Certain initiatives underway from before fiscal 2009 and information from April 2010
onward are also included in this report.

Next Issuance
We plan to issue the next CSR Report in September 2011.
CSR Report 2010 02

Feature

By virtue of the kinds of products we create, the Yamaha Group has a
The Group therefore places special focus on trees in its environmental
Conserving Wood Resources
Among the instruments that the Yamaha Group produces, including pianos, string and percussion
instruments, and woodwind instruments, many need to be made primarily of wood for acoustic
reasons. Large amounts of wood are also used when making electronic musical instruments,
speakers and soundproof rooms, due to the merits of wood in terms of acoustic performance,
function, design, and texture.
The Group works to support procurement that takes into account the natural environment,
forests and biodiversity, and to utilize wood resources to the fullest extent.

Environmentally Friendly Use of
Timber Resources in Products
The decline of timber resources makes it more difficult eachyear to stably acquire the wood materials needed for musicalinstruments and other products in good condition. The YamahaGroup strives to eliminate waste, while making full and efficientuse of wooden materials, and to proactively introduce woodcultivated specifically for industrial purposes on sustainedlyplanned plantations.
In addition, while wood resources in general are limited,wood suitable for making instruments is even rarer still.
Yamaha Corporation has developed A.R.E,* a new

Products Made Using
Afforested Timber

technology for aging wood to improve it to an ideal condition.
Moreover, since no organic solvents or chemical substances
are required, this technology reduces Yamaha’s environmental
load. Artists have also praised the A.R.E. technology for
producing new instruments with well-used timbre. Yamahaplans to make wide use of A.R.E. technology going forward.
A.R.E. technology was also recognized for top honors by thePrime Minister of Japan at the third Monozukuri (Manufacturing) Nippon Grand Awards in 2009.
* A.R.E.: Acoustic Resonance Enhancement
Yamaha’s proprietary technology for aging wood in a short time toimprove its acoustic characteristics

Examples of A.R.E. Technology

T
The RGX A2 series
eelectric guitar

The LL36ARE
acoustic guitar

The ROCK TOUR seriessystem drums

03 Yamaha Corporation

The BB2024
electric bass

The NCX2000FM
electronic nylon string guitar

Used for stage flooring inYamaha Hall in the Yamaha
Ginza Building, opened
February 2010

deep connection with trees.
initiatives as it aims to create a sustainable society.
Reuse: Making Effective Use of Wood Waste
The Yamaha Group uses a wide variety of wood as raw materials for musical instruments and manyother products.
The Group works both to limit the amount of wood waste generated in manufacturing processes
and to make effective use of waste, including recycling it into resources.

Examples of Effective Uses for Wood Waste■ Reusing discarded piano packaging materials (skids) as planters for green “eco-curtains”

Reuse of packaging materials

Skid packaging after use-by
dateGreen “eco-curtain”

Planters made using discarded skid packaging■ Wood waste generated from piano manufacturing is processed and recycled into hardboard material and sold·Hardboard processing

Leftoveror wastematerial

Pulverization

Processing

Unused wood chips(raw materials)

Churning/
powdering

Product

Pulp■ Powder is pressed into pellet form for use as fuel orlitter box lining

Sawdust pellets made fromsawdust generated from the
manufacturing of pianos

Heat
pressuremolding

Hardboard material■ Creating commemorative products out of wood

waste for visitors to the plant and others

Sawdust pellets are used toline a cat litter box
The circular cutouts from guitarsound holes are made into coasters

A key chain made from a
piano hammer head

Wood from marimba keys
shaped into chopsticks

CSR Report 2010 04

Talking, Growing: Tree-Planting Activities
Making sure that the Earth’s rich biodiversity survives for future generations is an important
responsibility of a company that uses wood.
The Yamaha Group sees trees and forests as renewable but ecologically irreplaceable assets, andworks with local communities in Japan and overseas to promote tree-planting projects as part of its
environmental activities.

Third Round of Tree-Planting Activities
Under the “Shizuoka Forests of the
Future Supporter System”

Fifth Year of “Yamaha Forest”
Tree-Planting Activities
in Indonesia·Yamaha Corporation·Yamaha Corporation and 6 Local Subsidiaries

As part of its environmental protection activities, in March
2007 Yamaha Corporation joined the “Shizuoka Forests of the
Future Supporter System” in support activities to revitalize theEnshunada coastal forest. Under a partnership agreementwith Japan’s Shizuoka Prefecture and the city of Hamamatsu,
Yamaha is pursuing initiatives under a five-year plan of support activities to revitalize the coastal forest, which has been
hit hard by damage from pine-eating worms.
In October 2009, some 130 Yamaha Group employees andfamily members as well as volunteers from the general public,
participated in the third round of tree-planting activities under thesystem. The saplings planted during the second round in 2008
were having difficulty growing due to insufficient summer rainfall,
and to partially reinforce these saplings, the 2009 volunteers
planted a total of 150 trees of seven indigenous species, including Ubame oak, Japanese cheesewood, and camphor laurel.
Like the previous year, digging holes and transporting soil were
demanding tasks, but work progressed comparatively smoothly
in the third year of the program. Once work was completed,participants listened to talks on the environment by speakers fromthe city of Hamamatsu, and learned about the role of coastal
forests in disaster prevention, the recent die-off of pine trees andthe objectives of this and other activities to cultivate broadleaf trees.
Going forward, Yamaha is committed to working with local
communities to support the creation of coastal forests, which serves
both as a disaster prevention function, including as wind breaks andstorm surge barriers, and as sites for human rest and recuperation.

“Yamaha Forest” tree-planting activities in Indonesia, cosponsored by Yamaha Corporation and Yamaha Motor Co.,
Ltd., marked their fifth and final year in fiscal 2009. The“Yamaha Forest” initiative is designed as a social contribution
activity in areas such as environmental protection and educational support in Indonesia, a vital production and sales site
for both companies. The aim of the project is to restore landdevastated by logging to as close to its original state as
possible over a period of five years from 2005. In promoting“Yamaha Forest,” Yamaha and Yamaha Motor have been
assisted by OISCA, an NGO with years of experience supporting agriculture, local development, and environmental
protection activities in the Asia-Pacific region.
On December 5, 2009, the Company hosted its final commemorative tree-planting event in the town of Pelabuhan Ratu in
Sukabami, Indonesia. This time some 1,926 people took part inplanting 3,000 trees, including representatives from both YamahaGroup companies and staff members from environment-related
divisions, students from local elementary, junior and senior highschools, local residents, and government officials.
This tree planting project reached its conclusion as ofMarch 31, 2010. Over the five years of the project, we haveplanted 115,110 trees on 127 hectares of land. Going forward, Yamaha will conduct regular monitoring of these areas
in order to ensure the growth of the trees planted and therecovery of the forest.

Tree planting activities by
local children

The participants in the Enshunada tree-planting activity

05 Yamaha Corporation

Trees planted in the first year of
the activity (2005) had grown toa height of over 10 metersEmphasis on Corporate Social Responsibility (CSR) in Management

The Yamaha Group seeks to implement our corporate philosophy, pursue sustainable business,leverage our core technologies and assets and deepen communication with all stakeholders.
Constantly creating ‘Kando*’ and enriching culture—that is the Yamaha Group’s CSR.
* ‘Kando’ (is a Japanese word that) signifies an inspired state of mind.

Customers
P.07

Shareholders
P.11

Contribute toa Sustainable Society

Uniquely Yamaha CSR· Activities related to core business operations· Voluntary activities extending beyond core business
operations

Creating ‘Kando’ Together

Basic CSR to Enhance Corporate Value

Creating ‘kando’ andenriching culture

Earn the Trust of
Stakeholders· Improve corporate governance· Enhance compliance and reinforce corporate ethics

Those WhoWork With Yamaha
P.09

Society
P.12

Enhance
Corporate ValueCSR Report 2010 06

With Our Customers
Yamaha works hard to improve quality, convenience and provision of information to enhancesafety and customer satisfaction.

Group-wide Quality Assurance Structure

Promoted efforts with greater awareness of usability
Quality Risk Management

Measures to Improve Usability

Web

The Yamaha Group always makes an effort to develop products fromthe customer’s perspective. For example, employees act as producttesters, and the results of their tests are reflected into product specifications. In this and other ways, Yamaha is working to improve usability.

http://www.global.yamaha.com/about/csr/customers/assurance/risk/

Conformance with Product Regulations andStandards Worldwide
Yamaha has developed a structure for full compliance with regulations
and standards worldwide pertaining to product quality and safety, andenvironmental protection. Under this structure the Company is able tocollect information on regulations and standards in each country andto respond quickly to these regulations or issues that may arise. In
addition, to monitor the status of legal compliance while developing
products that conform to standards, Yamaha Corporation’s headquarters includes a quality evaluation facility equipped with an array ofmeasuring, analytical, and evaluation devices, including state-of-theart electromagnetic wave-measuring facilities.

Anechoic chamber used for electromagnetic wave
measurement

Quality Improvement Measures
Web

http://www.global.yamaha.com/about/csr/customers/assurance/action/

The Yamaha Group strives to ensure product safety and improve
quality. At the same time, the Yamaha Group works to strengthen
quality management training, while pursuing quality, ease of use andconvenience in order to satisfy customers.

Quality Management Training
To develop quality human resources, Yamaha’s personnel training
system contains expert training related to “quality assurance,” as wellas training tailored to individual job positions. The goal of this system
is to raise awareness and enhance skills with respect to quality
management.
In fiscal 2009, approximately 150 people took courses offered invarious areas, including Quality Engineering and FMEA/FTA*1. Furthermore, the Yamaha Group revised its training program in order toenhance the training system geared towards enhancing safety andenvironmental awareness and skills.
*1 FMEA: Failure Mode and Effect Analysis
FTA: Fault Tree Analysis
Methods of systematically analyzing potential malfunctions and defects in
products and other items
07 Yamaha Corporation·Piano Division, Yamaha Corporation
Yamaha’s Piano Division is developing new types of pianos that incorporate digital technologies into a traditional piano. Examples include
the Disklavier™ E3 player piano released in 2009, as well as silent
pianos and hybrid pianos.
The Disklavier in particular actively incorporates new functions
such as Internet connection and simultaneous video recording andplayback, offering users a multitude of ways to enjoy the product. The
most important question for any product, however, is whether suchfunctions are easy for customers to use and operate.
The Piano Division is conducting usability tests*2, with the aim ofmaking the Disklavier a more approachable and user-friendly product.
These tests involve not only the product development division, butalso sales divisions and the Quality Assurance Division. Sharing issues
with each other facilitates a rapid response to any problems by therelevant division.
For usability tests, the division creates a situation in which testers
can try all the functions included in the Disklavier. Test subjects operate the products or prototypes in a special testing room. Representatives from the various divisions watch the test subjects from aseparate room, taking notes. Observers pay particular attention todetails such as hand movements, which are recorded on video, andfollowing the test they analyze and verify the results. This type of
testing identifies unanticipated problems and allows the relevant
divisions to modify specifications in order to enable more user-friendly,
natural operation by customers.
*2 Usability tests: In-house tests to confirm product usability have employees
operate the product on a trial basis.

A usability test in progress

The Disklavier™ E3 was developed
taking usability into accountImproving Our Customer Support System

Working to improve support system quality through ongoing improvements
Improving Convenience by Standardizing
Customer Helpdesks
Web

http://www.global.yamaha.com/about/csr/customers/support/convenience/·Customer Support Department, Domestic Sales &Marketing Division, Yamaha Corporation
The Yamaha Group has numerous business divisions, and has taken
steps to put a robust support structure in place. Among other actions,in April 2008, the Group reorganized the Customer Support Department within the Domestic Sales & Marketing Division, coupled withthe opening of a Customer Communication Center, as a means ofintegrating product-specific helpdesks in an effort to improve customer convenience.
Moreover, in fiscal 2008, we took steps to improve our support
structure, building a unified nationwide support system by clarifying
helpdesk names and installing a standardized phone system usingnavi-dial,*1 among other means. For customers, these changes haveresulted in more intuitive helpdesks for each product, and enabled asmoother customer service response. In fiscal 2009, we overhauled
our phone management system by transitioning to a cloud model,
supervising phone response service levels and strengthening system
maintenance. Through these and other initiatives, we are constantly
working to improve the system.

At the same time, in order to improve the level of service, we haveattached numerical values for various aspects of service quality, suchas ease of reaching a representative by telephone and the speed of
response to e-mail inquiries, and we are managing service based onthese indicators. Through steady efforts in operator training and creating databases of customer inquiry details, we are continuously striving
to improve the indicators for service quality.
*1 “Phone system using navi-dial”: A phone system that utilizes a “navi-dial”
number, which automatically connects callers to helpdesks at local dialing
rates wherever they call from in Japan, resulting in a more efficient provisionof guidance and services to customers.

Staff field calls at the Customer Communication Center

Flow of Operations
Customer Support Department
Piano and Electronic
Instruments*3
Service Network

Customer Communication Center
Piano Helpdesk
Electone™ & D-Deck™ Helpdesk

Hokkaido

Directive forcustomer support

Digital Piano & Keyboard Helpdesk

Sendai

Customer

Audio Visual Equipment Helpdesk

Tokyo Metropolitan Area

Wind, String & Percussion
Instrument Helpdesk

NagoyaSynthesizer & Digital Instruments Helpdesk

OsakaElectronic Instruments

KyushuSteinberg*2 & Computer Music Helpdesk
Request forcustomer support

Repair Consultation Center

On-site service
PianosPiano dealer
service network*2 Steinberg: Music production software*3 Electronic instruments includes electronic and electric acoustic instruments

Web

For more information

Group-wide Quality Assurance Structure■ Company-wide Quality Management System

http://www.global.yamaha.com/about/csr/customers/assurance/management/

CSR Report 2010 08

For the People We Work withThrough a wide range of initiatives, Yamaha seeks to uncover the potential of the many
employees who help the Group run and grow along with them.

Initiatives for Employees

Promoting a variety of measures to respect diversity
Job-Tailored Training and EducationWeb

http://www.global.yamaha.com/about/csr/workers/employee/education/

Yamaha believes that creating a mutually beneficial relationshipbetween the employee and the Company inspires motivation. Therefore, the Company works to create a system that is equally focusedon education and training and career development. Each training
program is tailored to a specific objective in one of the following categories: Strategic Personnel Development, Function-Specific Training,
Stratified Training, and Self-Development Education.
The Strategic Personnel Development program includes theflagship Yamaha Global Institute, which aims to mold the personnel
who will be the backbone of the Company in the future, both in Japanand overseas. Another program designed to cultivate the next generation of core employees is the Yamaha Advanced Skill School, held at
production facilities in Japan. The Function-Specific Training program
trains employees in core technologies, Monozukuri (Manufacturing)
Education seminars and international awareness. The Stratified Training program, meanwhile, provides training at career turning points,
such as when an employee has been promoted or made a manager.
Finally, in the Self-Development Education program, Yamaha provides
support for employees’ self-directed studies, including through the
Yamaha Business School, a distance learning-based program.
Yamaha also provides employees approaching the age of 50
opportunities and information to help them consider their individual life
paths, and offers “Life Design Seminars” to support their future careers.

with the Company for a short time are succeeding our veteran employees, so the program is also helping to foster a younger generation of
employees who will support production activities in the years to come.

Occupational Health and Safety Policy AdministrationWeb

http://www.global.yamaha.com/about/csr/workers/employee/safety/

Striving for Accident-Free Workplaces
To ensure employee safety, the Yamaha Group not only has in placesafety measures related to machinery and equipment, but also promotes programs to identify and remove potential causes of accidents.
For example, there is a set of routine confirmation motions and statements to ensure that all equipment is prepared properly, and a rangeof other activities designed to avoid near-miss incidents.
In fiscal 2008–2009, Yamaha Corporation’s headquarters andfactories cooperated with specialists and worksite managers in conducting inspections based on the Occupational Health and Safety
Work Standards Checklist*1, a tool designed to enhance work safety,
making improvements with reference to the actual work being conducted. We also conducted training at each business site to stressthe importance of occupational health and safety, targeting relatively
inexperienced employees and recent transfers, as well as contracted
and temporary employees at Yamaha Corporation.
In fiscal 2010, as part of our efforts to reduce work-related risks,
we rolled out our Risk Assessment Program*2, positioned it as a key
priority for our domestic Group companies, and promoted it alongwith our other activities in this area.

Systematic Transmission of Skills
Web

http://www.global.yamaha.com/about/csr/workers/employee/keeping_craft/

Many highly skilled employees in manufacturing positions have beenreaching the retirement age in recent years. Moreover, over the next
several years, around 100 employees a year will be leaving the production floor. Given this state of affairs, Yamaha Corporation has been
conducting skill transmission initiatives to ensure that core production
skills are faithfully passed down to younger workers.
In order to develop a framework for skill transmission and personnel development, in 1996 we first registered the skills possessed by
the Company using the Skill Registration System, which was created
for that purpose. Registered skills are categorized and prioritized, andthe data is used to make lists of essential skills and who possesses
them in order to design programs for their transmission.
The From-To Program was created to aid in the transmission ofespecially important skills in a very practical way. Under the program,skilled veterans pair up with younger workers on a one-on-one basis(sometimes in groups depending on the skill) and provide systematictraining in order to pass down their skills. To date, around 150 sets ofworkers have completed training. Workers in their thirties and forties
who received training when the program was initiated are now in theposition of conveying their knowledge to younger workers and are doing
their best to maintain and pass down their skills. In recent years, more
and more employees in their teens and twenties who have only been
09 Yamaha Corporation*1 Occupational Health and Safety Work Standards Checklist: A document
listing critical points for performing each work procedure more safely, as wellas the rationale behind each point. Particularly for production sites, this list isin place for every work procedure.
*2 Risk Assessment Program: For each work procedure, factors including
frequency, potential for injury, and degree of severity are assessed numerically. Activities then focus on reducing risk by making improvements in thoseareas with the highest numerical score.

Fiscal 2009 Work-Related Accidents
Fiscal 2009

No. of accidents

Frequency*3

Severity*4

Prevention Result Prevention Result Prevention Results
TargetTargetTargetHeadquarters/
Headquarters Factory

6 or less

6 0.6 or less

0.60

0

0

Yamaha Corporation
Sales Offices

1 or less

1 0.5 or less0.53 None set̶Group Companies in
30 or lessJapan

21 1.0 or less1.72 None set

̶*3 Frequency = number of work-related deaths/injuries ÷ total man hours x 1,000,000*4 Severity = number of working days lost ÷ total man hours x 1,000

Initiatives for a Better Work-Life BalanceWeb

http://www.global.yamaha.com/about/csr/workers/employee/worklife/

The Yamaha Group considers cooperation between labor and management in achieving a better work-life balance to be fundamental torealizing corporate growth and a fuller life for all employees. Based on
this philosophy, Yamaha Corporation has for many years worked on a
range of initiatives to shorten total work hours and provide support for
both work and family.
In order to help employees combine work with caring for a family,
Yamaha has made proactive efforts, including the introduction of childcare and nursing care leave beyond statutory requirements. In April
2006 Yamaha established the Work-Life Balance Committee to provide individual employees with support for both work and a fuller life
outside of work, and to help them combine the two. Specific measures focused on reducing working hours and the implementation andimprovement of work/family support systems for the variety of circumstances encountered by employees.

EMPLOYEE REPORT

female employees at Yamaha Corporation, and the proportion of
women returning to work after childcare leave is nearly 100%.

Principal Indicators Related to Female Employees
at Yamaha Corporation
Ratio of Female Employees

Ratio of Female
New Graduate Hires(as of March, 2010)(fiscal 2010)
Women
1,135

Women
23

FemaleRatio
21.9%

Female
Ratio
28.4%
Men
4,050

Men
58

Average Age and Number of Years of Continuous Employment(as of March, 2010)Childcare Leave for Male Employees

Average Age

Number of Years of Continuous
Employment (Figures in parentheses
represent nationwide averages*)

Female42 years and
1 monthMale

44 years

21 years and3 months (8.6 years)
21 years and3 months (12.8 years)

Overall

43 years and7 months

21 years and3 months (11.4 years)

0

Development Management Group
Production Technology Department
Digital Musical Instruments Division

I took one month of childcare leave when my first child was born in2007 and when my next was born in 2009. The company has beenencouraging male employees to take childcare leave, and I got onboard with the idea. I wanted it to be my wife and I who raised ourchildren and did not want to depend on my parents. I also wanted to
go on record as taking childcare leave because I believe that anincrease in childcare leave for men would make it easier for peopleraising children to work, for both men and women.
Taking this leave time, although shorter than the amount of childcare leave generally taken by women, allowed me to care for my children with my wife and gave me a real understanding of how hard it is,something I only had an abstract understanding of before. I also think I
was able to partially share in how my wife was feeling, as she had toleave, albeit temporarily, a workplace where she was a key member.
More and more male employees at our company are taking childcare leave, and I got the sense when I took time off for my second childthat everyone's acceptance had progressed from the time I took theleave time for my first child. I think for future generations, it will be thenorm for fathers to take the time to help raise their children like this.

Assisting Women’s CareersWeb

http://www.global.yamaha.com/about/csr/workers/employee/woman/

The Yamaha Group holds the diversity of its employees in high regard,
and aims to be a place where all employees can make the most of
their abilities, regardless of their gender, nationality or other factors.
Measures implemented in the past have resulted in nearly an equal
average number of years of continuous employment for male and
Web

10

20

30

40

50

0

5

10

15

20

25

* Source: Ministry of Health, Labour and Welfare 2009 Basic Survey on Wage Structure

Female Manager Ratio(as of March 2010) :Number of Employees
Receiving Childcare Leave

3.1%(FY2007–FY2009)

Women: 75 Men: 17

Report on Women’s Career Support Project·Yamaha Travel Service Co., Ltd.

In April 2009, Yamaha Travel Service Co., Ltd. launched a Women’s
Career Support Project. The team, led by and consisting entirely of
women, worked on project activities for approximately ten months.
The team focused their efforts on learning what kind of awarenesswomen need to have active careers, and what kinds of obstacles they face.
First, to get a better understanding of current conditions, the teamconducted interviews with all employees. This not only helped to narrow thefocus of the project, but also proved effective in generating more lively
communication between employees. The team also held in-house lectures,
attended seminars outside the Company, and visited other companies.
These activities enabled them to meet with a wide variety of people both
inside and outside the Company, and were a great source of inspiration.
By February 2010, the team had compiled its final report, proposing
new systems and activities. As aresult of these proposals, we are
now working on concrete steps to
implement a program encouraging
employees to take their holiday
time, improve the visibility of ouremployee evaluation system, andMembers and associates of theother measures.
Women’s Career Support Project

For more information

Initiatives for EmployeesWith our Shareholders■ Basic Employment Policies■ Policies for Retained Earnings and Returns to Shareholders
http://www.global.yamaha.com/about/csr/workers/employee/policy/ http://www.global.yamaha.com/about/csr/shareholders/policy/■ Measures to Prevent Harassment■ Inclusion in Socially Responsible Investment (SRI) indexes http://www.global.yamaha.com/about/csr/shareholders/sri/
http://www.global.yamaha.com/about/csr/workers/employee/harassment/ ■ Annual Report http://www.global.yamaha.com/ir/publications/

CSR Report 2010 10

Initiatives for Business Partners

Embedding the concept of CSR more deeply, together
Fair Evaluation and Selection in Partner Relationships

Survey of CSR Measures of Business Partners

Web

Web

http://www.global.yamaha.com/about/csr/workers/partners/evaluation/

The Yamaha Group considers suppliers and subcontractors to be
partners in our effort to live up to our business philosophy. As such,
we strive to ensure fair dealings based on mutual trust.
In our business dealings we adhere strictly to the law, and ensure
impartial selection and proper evaluation in accordance with internal
regulations and standards. Further, under the banner of “open procurement” we take care to ensure that business dealings are open,
fair, and unbiased, and maintain a basic policy of conserving natural
resources and protecting the environment.
To date, the Yamaha Group has made public our Yamaha Material
and Component Procurement Policy, and has surveyed and assessed
the CSR initiatives of our suppliers. We also unveiled our Green Procurement Standards, comprising specific Group standards pertaining
to our basic policy of conserving natural resources and protecting theenvironment, and conducted a survey of chemical substances contained in the materials and components we procure.
In fiscal 2010, we will continue our existing program of requesting
improvements in the CSR initiatives of our suppliers, strengthen our own
efforts to promote green procurement, revamp our system for managing
materials and components containing chemical substances, and work toensure that customers can feel secure in using the products we provide.

http://www.global.yamaha.com/about/csr/workers/partners/research/

Yamaha has been requesting improvement measures from suppliers(including, in the case of trading companies, the actual manufacturers
in Japan and overseas) who earned low scores on the survey of CSR
measures by business partners conducted by Yamaha’s Procurement
Division. Yamaha has also added a rating of CSR-related initiatives tothe list of criteria for determining whether to initiate business transactions with new suppliers. When requesting improvement measures,
we meet directly with suppliers to explain and gain their understanding of Yamaha Corporation’s policies, and provide them with feedbackon their score results.
Since the launch of this survey of CSR measures in fiscal 2008,
Yamaha has surveyed and evaluated approximately 1,300 companies.
In fiscal 2010, we will request stronger CSR measures from roughly
100 supplier companies.
Also since fiscal 2008, we have been surveying suppliers relevant
to green procurement as part of efforts aimed at conserving resources
and protecting the environment. In launching the 2008 survey, we
held an information session for suppliers, attended by representatives
from some 160 companies.

With Our Shareholders
Yamaha strives to secure quality management and a sound business performance with the aimof achieving appropriate shareholder returns, and works to strengthen investor communication.

Proactive IR* Efforts to Promote Understanding of the Company

Deepened mutual understanding through investor communicationWeb

http://www.global.yamaha.com/about/csr/shareholders/ir/

Yamaha Corporation adheres to a disclosure policy that ensures fair
and timely disclosure of information to institutional and individual
investors around the world.
In addition to holding quarterly results conferences for institutional
investors in Japan, Yamaha conducts conferences and briefings forindividual business segments as well as factory and facility tours on
occasion. For institutional investors in other countries, along with making
available English translations of all information provided to institutional
investors in Japan, we visit investors overseas several times a year tofoster mutual understanding through direct communication.
For individual shareholders, Yamaha runs a special benefit plan
designed to encourage more shareholders to become active proponents of Yamaha’s products and philosophy. Additionally, we utilize
our website to provide corporate information in an easy-to-understandformat, distribute an e-mail magazine with important information, and11 Yamaha Corporation

are stepping up other activities, including Yamaha’s active participation in events for individual shareholders.
Through these initiatives, we work to enhance communication withinvestors, and use the results of feedback and other additional information
gained to improve investor relations activities and management performance.
* Investor Relations

Major IR Activities in FY2010.3.31
Regularly Scheduled Events
Quarterly results conferences
One-on-one meetings
Visits to overseas investors

Each quarter (4 annually)
200 times
3 times annually (U.S., U.K., Asia)

Other Events
Conference for mid-term
management plan

Briefing on the musicalInstruments business

Tour of facilities

With Society
The Yamaha Group undertakes a wide range of social contribution activities based on
the theme of “sound and music” to create and share inspiration and richness with
our stakeholders, and to enable us to grow side by side together.
Support for Aspiring Young Musicians
In order to support the popularization and development of musicalculture, the Yamaha Group provides many forms of support to people
studying music. Among these efforts is a program to provide scholarships for talented young musicians in various countries in Europe, theUnited States, and Southeast Asia.

·Yamaha Music Europe UK (YME UK)
YME UK promotes a scholarship system to support promising young
musicians in the United Kingdom. In addition to the scholarshipsupport activities in each European country by Yamaha Music
Foundation of Europe*, YME UK has established separate scholarship systems for the Royal Northern College of Music, the Royal
Scottish Academy of Music and Drama, the Guildhall School ofMusic & Drama, Chetham’s School of Music, and the Institute ofContemporary Music Performance.
The Yamaha Jazz Scholarship program was established with thesupport of the All Party Parliamentary Jazz Appreciation Group toprovide scholarships to students in their final year of study at six British
conservatories. In addition, the Yamaha Jazz
Experience, held in earlyMay 2010, offered thethree winning groups in
the 11–19 year-old division,
the opportunity to perform
at such world-famous jazzAward presentations for the Yamaha Jazz
clubs as Ronnie Scott’s
Experienceand 606 Club.
* Yamaha Music Foundation of Europe: A fund established by Yamaha Corporation and the Yamaha Music Foundation to provide scholarships for young
music students in Europe.

The 19th holding of the festival, took place in May 2010. In addition to concerts in auditoriums and on the street, for the first time theevents included free lessons— “jazz workshops”— where members of
the public could refine technique in voice, piano, saxophone, and fourother instruments, as well as booths where they could try playing
instruments on their own, helping visitors both enjoy jazz and make it
more familiar. Another policy of Hamamatsu Jazz Week is to offer new
artists the opportunity to perform, and the program actively included
aspiring new artists alongside the veteran performers.

Handmade Guitar Workshop in Cooperation
with College Student Volunteers·Yamaha Corporation
Since 2002, the Handmade Guitar Project, a group of volunteers from
Yamaha Corporation’s Wind, String & Percussion Instruments Division,
have worked with college student volunteers from CSN Hamamatsu(College Student Network Hamamatsu) to hold handmade guitar
workshops for elementary and junior high school students in the cityof Hamamatsu.
The workshop uses familiar items such as wooden rods, toothpicks and cardboard to create the guitars in a simple construction thatchildren can complete in three to four hours. Participants learn about
the mechanisms of sound and musical scales, decide on the shapeand color of the cardboard instrument body, and then have the opportunity to perform on the one-of-a-kind guitar that they have created.
In June 2010 at the Hamamatsu Science Museum, project members from Yamaha provided technical instruction and support for the
event “Make and Play a Handmade Guitar,” part of the “Parent Child
Manufacturing Workshop Program,” which aims to foster interest inscience research by making objects. Going forward, the Company
intends to continue to communicate to children the fun of creating andthe appeal of music, instruments and the guitar, and to support thevolunteer activities of young people like those at CSN Hamamatsu.

Hamamatsu Jazz Week—A Public-Private
Sponsored Community Cultural Event·Yamaha Corporation
Since 1992, Yamaha Corporation has sponsored “Hamamatsu Jazz
Week” in cooperation with the city of Hamamatsu, where the Company is headquartered. The event is designed to help Hamamatsu
become a city that promotes music, creating “a city where music
lives, and where music brings the city to life.” This unique local cultural
event, jointly organized by the public and private sectors, brings
together people of all ages to enjoy jazz.

Elementary, junior high school and high school students
from around Japan represented their schools in performances at “the 19th Hamamatsu Jazz Week.”

Children performing on their one-of-a-kind guitars

Yamaha Corporation employees and the CSN Hamamatsu
volunteers pose for a photo

CSR Report 2010 12

Donations in Response to the Sumatra Earthquake·Yamaha Corporation, Yamaha Music Foundation, 6 Local
Subsidiaries in Indonesia
Yamaha Corporation and its subsidiaries in Indonesia joined with the
Yamaha Music Foundation in donating money to support victims of
the earthquake that occurred in Sumatra, Indonesia, on September
30, 2009. The donation of ¥2.1
million was made to the Indonesian Red Cross Society via theJapanese Red Cross Society.
Yamaha’s Indonesian subsidiaries
also organized a charity concert,
donating admission fees towards
reconstruction activities.

A performance by popular rock band
“Slank”

Charity Concert
On October 31, 2009, elevenmusical groups popular in Indonesia performed at a charity concert
held by Yamaha Musik Indonesia(Distributor) (YMID). The concert
earned a total of 95.7 million rupiah(approximately ¥910,000) in admission fees, which was donated toreconstruction efforts through theIndonesian Red Cross.

Joining to Support the Society to Send
Instruments to Developing Countries·Yamaha Music Chushikoku Co., Ltd.
In support of the Society to Send Instruments to Developing Countries, made up of piano instructors from Kurashiki, Okayama, andother cities, Yamaha Music Chushikoku Co., Ltd. has joined with theSociety to hold charity concerts, exchanging profits from those concerts for musical instruments, and then sending the instruments tochildren in developing countries through the auspices of the Japan
International Cooperation Agency (JICA). In fiscal 2009, the charity
concerts raised ¥200,000, which
was used in donating new recorders, castanets, xylophones, andother instruments to eight countries*. Going forward, the Company will continue to participate inthis program, with the next donation scheduled for the fall of 2010. Members of the Society to Send
Instruments to Developing Countries* Countries receiving donations included the Philippines, the Solomon Islands,
Fiji, Brazil, Paraguay, Gabon, Malawi, and Morocco.

A certificate of appreciation presented by the Indonesian Red Cross

Marathon Fundraising in Support of Measures
to Combat Childhood Disease·Yamaha Corporation of America (YCA)
An employee-based initiative dedicated to charitable works, Yamaha
Cares has a dual purpose of spreading the gift of music as well as
promoting education, arts, social services, and community development in the places where Yamaha employees live and work.
Continuing initiatives include
support for efforts to combat
childhood disease. One suchprogram is research being conducted by the Children’s Hospitalof Orange County (CHOC) into
treatments for Type 1 juvenile
diabetes, which Yamaha Cares is
supporting with fundraisingthrough participation in the SouthYCA Yamaha Cares participants
ern California Half Marathon. In
fundraising at the Southern California
fiscal 2009, employees raised
Half Marathon.
$9,152 through marathon pledges.

Yamaha Kakegawa Grand Piano Factory Restarts
Factory Tours·Yamaha Kakegawa Factory
After shifting production processes for grand pianos from the factoryat Yamaha Corporation’s headquarters, we opened the Kakegawa
Factory for public tours from June 2010. We have since received awide variety of visitors, including musicians, families, corporate trainees, and school groups.
Visitors to the factory passthrough Harmony Plaza, where we
display an early model grand pianothat has been recognized by the
Ministry of Economy, Trade andIndustry as part of Japan’s Heritageof Industrial Modernization. In thefactory we introduce them to the
Visitors observe a grand piano being
assembly process for modern
made at the Kakegawa Factory
grand pianos using the latest equipment and techniques, as well as ourenvironmental protection initiatives
including our cogeneration system.
Our goal in running these
tours is to deepen the generalpublic’s understanding of Yamaha,and to arouse people’s interest in
An exhibition at Harmony Plaza
instruments and music.

Please see our website for reports on the following topics:
Web

http://www.global.yamaha.com/about/csr/society/■ Reaching Out to Schools

with Lessons on the Scienceof Sound

13 Yamaha Corporation■ Contribution Activities at

a Local Train Station■ Accepting Students forOn-the-Job Experience in
Crafting Musical Instruments■ Proceeds from MusicalCharities Support
Children’s Welfare■ Contributing to Training for JuniorHigh School Teachers(Workplace Experience)Environmental Initiatives
Yamaha prioritizes environmental considerations and promotes environmentally friendly
measures at all stages of the product life-cycle, from materials procurement to development,
production and disposal.
Environmental Management

Setting goals for steady progress toward environmental management
Goals and Achievements
Goal● Extend ISO 14001 certification● Expand the Yamaha Environment-RelatedInformation System (Yecos)
Environmental
Management
System● Promote environmental training andeducation activities

Achievements in FY2009● Prepared framework for ISO 14001 integration from

April 2010

Product
development● Provided internal environmental auditor training

Completed● Held brush-up seminars for internal environmental

auditors

standards

Completed● Promote green procurement● 6% reduction* in CO2 emissions on

Prevention of
global warming

FY1990 levels by FY2010● 1% reduction in CO2 emissions per unit ofsales on FY2008*

seminars● Hold brush-up seminars for internal environmental

auditors in response to ISO 14001 integration

employee education● Implemented recycling of packaging materials for large● Continued to manage compliance with RoHS Directive

and similar standards

Completed ● Continue to conduct environmental seminars
Completed
Completed
Completed(71.1 thousand tons of CO2 per year; 11% reduction
year on year)*● CO2 emissions per unit of sales rose by 6.4% year on

year (to 23.9 tons CO2 per year per ¥100 million)*

mentally friendly design
as used electronic musical instruments, and packaging
materials● Continue to manage compliance with RoHS Directive

and similar regulations● Implement management of hazardous chemicalmaterials in products that could be subject to stricter
Completedinternational regulation (survey of parts and components
outside of Japan)● CO2 emissions volume down 34% compared to FY1990● Implement regular employee education about environ● Continue to manage recycling of certain products, such

● Implemented management of hazardous chemicalGreenprocurement● Continue to hold internal environmental auditor training● Conducted environmental seminars (255 participants)

electronic musical instruments● Comply with RoHS Directive and similar

Yamaha Group in Japan by fiscal 2011

Completed ● Introduce new system● Made environmentally friendly design a regular part ofdevelopment

Future Initiatives● Complete ISO 14001 integration throughout the● Examined compatibility with new system

Theme: “Biodiversity: Why it Matters to the Corporate
Sector”● Promote environmentally friendly productStatusCompletedmaterials in products that could be subject to stricter
international regulation (implement new management
systems capable of responding to change)● 6% reduction* in CO2 emissions on FY1990 levels by
FY2010Completed ●Consider targets for CO2 emissions reduction for
FY2010 and beyond

Incomplete● 1% reduction in CO2 emissions per unit of sales on

FY2009*● Achieved 0.07% landfill disposal, compared to Zero

Waste reduction● Maintain Zero Emissions and improverecycling quality*

Emissions target of under 1%*● Began sales of wood waste as raw materials forCompleted ● Maintain Zero Emissions and improve recycling quality*

composite board● Maintain elimination of CFCs and HCFCs
Protection of
from manufacturing processes*
the ozone layer

Managementof chemical
substances
Groundwater
purification● Reduce VOC emissions by 30% on

FY2000 levels by FY2010*● Continue ongoing purification of ground-water (1 site)● Completely eliminated in April 2005, not used sincethen*● VOC emissions volume reduced by 58% compared to

FY2000 (208 tons per year, 25% reduction year on year)*● Contamination level improved to approach

environmental standards

Completed ● Maintain complete elimination*
Completed
Completed● Continued to promote procurement based on Timber

Biodiversity● Consider relationship between businessactivities and biodiversity

Procurement and Usage Guidelines● Continued participation in Musicwood Campaign● Promoted internal education about biodiversity (heldseminars)● Reduce VOC emissions by 30% on FY2000 levels by

FY2010● Continue using pumped water aeration and activatedcarbon absorption methods for groundwater purification● Continue to promote procurement based on Timber

Procurement and Usage Guidelines
Completed ●Continue participation in Musicwood Campaign● Promote internal education about biodiversity● Conservation of forests outside of Japan:

Plant 150,000 to 200,000 trees on 120
hectares in “Yamaha Forest,” Indonesia
between FY2005 and FY2009
Socialcontribution● Conservation of forests in Japan:

Forest,” Indonesia by FY2009

teers from the general public planted 150 trees as partof the “Shizuoka Forests of the Future Supporter
System” to support the regeneration of the Enshunada
coastal forest● Conduct and participate in local cleanup● Approximately 820 people participated in local cleanup● Disclose information through CSR report

and website

Completed ● Consider further tree-planting activities in Indonesia● 130 Yamaha employees and their families and volun-

Provide support for regeneration of the
Enshunada coastal forest between
FY2007 and FY2010
campaigns

Environmental
communication● Planted 115,000 trees on 127 hectares in “Yamaha

campaigns

Completed

coastal forest

Completed ● Continue participation in local cleanup campaigns● Disclosed information by publishing a printed CSR

Report introducing activities and a Web-based reportcontaining full information on activities and data

● Continue support for the regeneration of the Enshunada

Completed● Continue disclosing information by publishing a printed

and a web-based CSR Report● Participated in “Shizuoka STOP Global Warming Action● Disclose information through participationin various events

Campaign”● Continued “Kakegawa STOP Global Warming Partner-

Completed● Disclose information through participation in various

eventsship Agreement” (Kakegawa Factory)* Yamaha Corporation Headquarters and factories, and Yamaha Group manufacturing companies in JapanWeb

For more information

Related URLs:■ Yamaha Group Environmental Policy

http://www.global.yamaha.com/about/csr/policy/
http://www.global.yamaha.com/about/csr/environment/management/system/■ Environmental Initiatives http://www.global.yamaha.com/about/csr/environment/■ Yamaha’s Environmental Management Promotion System

CSR Report 2010 14

Global Warming Prevention

Reducing CO2 emissions by 11% year on year
Global Warming Countermeasures
Web

http://www.global.yamaha.com/about/csr/environment/anathermalcountermeasure/As part of its measures to counter global warming, the Yamaha Grouphas worked to reduce its greenhouse gas emissions through improvements to production and air conditioning equipment and extensive
energy management, including the adoption of highly energy-efficientequipment. The Group has also introduced cogeneration systems andconverted to more environmentally friendly fuel sources.

to supply heat with a natural-gas-fired boiler fueled by liquid naturalgas (LNG), while also working to make the production process moreenergy-efficient. These measures are expected to result in a 3,400 ton
annual reduction in CO2 emissions.

Examples of energy-saving measuresin the production process(1) Emissions of internal conditioning air are reduced through the installation of
an indoor dust collection system.

Graph of CO2 Emissions (from energy consumption)(10,000 tons-CO2)(tons-CO2/100 million yen)

CO2 emissions (left axis)
15

30

28.2
25.2

10

CO2 emissions per unit of sales (right axis)

10.8

10.6

24.6
10.6

23.3

22.5

23.9
20

9.98
7.99

5

7.11

0

10

0
1990

2005

2006

2007

2008

2009

(2) Effects of external air temperature on airlocks and shade film are mitigated.
FY

Environmental Effects of Consolidating
Piano Production·Kakegawa Factory, Yamaha Corporation
Since 2006, Yamaha Corporation has been working to transfer production of grand pianos from its headquarters factory to its Kakegawa
Factory, and in August 2010 the Company completed consolidation of
the production of upright pianos. To counter the increased energy
needs resulting from this consolidation, the factory introduced acogeneration system, replacing the heavy-oil-fired boiler formerly used

(3) The burden on compressors are mitigated through steps to prevent compressed air from leaking from production equipment.

Management of Chemical Substances and Reduction of Emissions

Working to substitute and eliminate emissions of chemical substances
Management of Chemical SubstancesWeb

http://www.global.yamaha.com/about/csr/environment/chemical/risk/

Management of Chemical Substances andReduction of Emissions
When utilizing chemical substances, the Yamaha Group strives tominimize adverse impact on people and the environment by thoroughly managing chemical substances such as those designatedunder the PRTR*1 Law, and reducing emissions of substances fromproduction processes and products. Chemicals emissions that occur
in the course of production processes at the Yamaha Group aremainly volatile organic compounds (VOCs)*2. The Group launched a
VOCs Emission Reduction Working Group in fiscal 2006, and conducted a survey of the Yamaha Group’s usage and emissions of
VOCs. In fiscal 2008, we established a reduction plan and set a targetof a 30% reduction in emissions by fiscal 2010 compared with fiscal
2000. Yamaha is continuing its efforts to substitute or reduce chemical substances throughout the Group.

*1 PRTR: An abbreviation for Pollutant Release and Transfer Register. The
PRTR Law is an abbreviation of the Law Concerning Reporting, etc. of
Releases to the Environment of Specific Chemical Substances and Promoting Improvements in Their Management.
*2 VOCs (volatile organic compounds): These compounds, contained asthinning agents for coatings and adhesives, are believed to be one factor in therelease of photochemical oxidants and suspended particulate matter (SPM).

VOCs Atmospheric Emissions(tons)
600
498
400

30%

382

345
278
208

200

0
2000

2007

2008

2009

2010
(target)15 Yamaha Corporation

FYManagement Structure

Corporate GovernanceYamaha seeks not only to pursue efficient management and to ensure global competitivenessand a high level of profitability, but also to fulfill its social responsibility through fair andsustainable management.
In keeping with its corporate philosophy, Yamaha is working to develop organizational
structure and mechanisms for management that will form the basis for transparent andhigh quality corporate governance.
Creating a Management Structure Throughthe Board of Directors and Executive Officers
As of June 25, 2010, Yamaha has five directors, including two outside
directors. In order to accelerate decision-making by the Board of Directors
and enhance supervisory functions, in fiscal 2010 we have decreased thenumber of directors serving concurrently as executive officers by four, andadded one outside director. Outside directors also act as members of the
Corporate Governance Committees and serve to ensure transparency ofmanagement decision-making. The Board convenes once monthly inprinciple, and is responsible for the Group’s management functions, including proposing Group strategy and the monitoring and directing of businessexecution carried out by the divisions. In order to clarify responsibilities,
directors are appointed for a term of one year.
Yamaha also employs an executive officer system, with the purpose of strengthening consolidated Group management and businessexecution functions by divisions. As of June 25, 2010, the executive
officer system comprises 16 executive officers, including two managing executive officers, who are allocated to business or administrative
divisions dealing with important management issues. The executive
officers support the President, the chief officer in charge of businessexecution. Managing executive officers, who serve concurrently as
Company directors, are assigned to oversee the operation of businesses and administrative divisions, in accordance with the importance of these responsibilities. In addition, five senior executive
officers oversee the entire Company organization. As group managers, they are responsible for the performance of key divisions within
the Company, and manage and direct in a manner appropriate forbringing the functions of each group to the fore.

An Audit System to Ensure Fair andTransparent Business Practices
Yamaha is a company with a Board of Auditors as defined underJapanese law, and has worked to enhance governance functions byintroducing an executive officer system, as well as by setting up Corporate
Governance Committees and an internal control system. These actions, inconjunction with consistent audits conducted by the Company’s systemof full-time auditors, combine to raise the effectiveness of governance.
As of June 25, 2010, Yamaha has four auditors, including two outside auditors. In principle, the Board of Auditors convenes once monthly.
Based on audit plans, auditors periodically perform comprehensive auditsof all divisions and Group companies, and participate in Board of

Directors’ meetings and other important meetings such as management
councils. Yamaha has also established a Corporate Auditors’ Office (withone staff member as of June 25, 2010) as a dedicated staff for the auditors, to ensure an environment conducive for performing effective audits.
With respect to accounting audits, the suitability of such audits isdetermined based on periodic progress reports from the accounting
auditors of their audits of the Company’s financial statements.
The Internal Auditing Division (10 staff members as of June 25, 2010)is under the direct control of the President and Representative Director.
Its role is to closely examine and evaluate systems pertaining to management and operations, as well as operational execution, for all management activities undertaken by the Company and Group companies fromthe perspective of legal compliance and rationality. The evaluation results
are then used to provide information for the formulation of suggestions
and proposals for rationalization and improvement. In parallel, Yamaha
strives to boost audit efficiency by encouraging close contact and coordination among the corporate auditors and the accounting auditors.
Please refer to the website for a detailed diagram of the corporate
governance system.
Web

http://www.global.yamaha.com/about/csr/commitments/system/governance/

Compliance Oriented ManagementWeb

http://www.global.yamaha.com/about/csr/commitments/system/compliance/

Yamaha began conducting compliance activities in Japan in 2003
with the establishment of the Compliance Committee and the formulation of the Compliance Code of Conduct. Revisions were made to
the Compliance Code of Conduct in fiscal 2006, including additions
regarding the prohibition of forced and child labor, and other information essential for Group Companies with overseas business interests
in order to contribute to the establishment of a structure suitable for
global business development.
In April 2008, we enhanced this structure to incorporate unified
principles and guidelines for the entire Yamaha Group, including thecompletion of codes of conduct that reflect various local laws andregulations governing overseas Group companies.
In fiscal 2009 we pushed compliance forward with the slogan“Compliance and Communication: Creating a Corporate Culture of
Doing the Right Thing in High Spirits.” In June 2010, we reorganized
the companywide Governance Committees and the complianceactivities are now steered by the newly set-up Risk Management
Committee through its CSR and Compliance Subcommittee.

CSR Report 2010 16

Third-Party Opinion
The Yamaha Group believes that better communication with stakeholders is vital in meetingthe host of challenges that arise with respect to corporate social responsibility (CSR).
This year, Mr. Hiroaki Satoh shares his opinion on how the Group can improve its performance in this area.
If I were to ask for anything else, it would be that the Company
becomes an even more powerful communicator of CSR and environmental data, and comes up with ways to develop even more appealing data and methods (for example, data regarding its carbon
footprint, a measure of environmental impact, or information on environment-related research and development).

Hiroaki SatohHead of the Shizuoka Center for
Climate Change Actions(Professor Emeritus and Former President,
Shizuoka University)

As part of efforts to prevent global warming, Shizuoka Prefecture hasbrought government, citizens, and corporations together in rolling out
the “STOP Global Warming Action Campaign.”
This summer, I visited the Yamaha Corporation’s Kakegawa Factory,
which is part of the campaign’s Executive Committee. I watched the
grand piano manufacturing process, and saw the plant’s energy cogeneration system. This gave me insight into the Company’s approach to
CSR, which is based on its philosophy of “Creating ‘Kando’ Together,”its core DNA and expert craftsmanship, and its environmental initiatives.

Management Focus on CSR and the Environment
With its roots in sound and music, Yamaha works to expand its range
while valuing communication with its stakeholders, and takes greatcare in disseminating information about its CSR initiatives through awide variety of communication mediums. This CSR-focused approachcomes through vividly in the Company’s new medium-term management plan, which starts in fiscal 2010.
Yamaha’s environmentally conscious management approach can befound across its entire business line, from procurement, to development, manufacturing, and use, and on through to its disposal practices. An overview of the status of those efforts can be seen in its
Goals and Achievements in the Environmental Initiatives. These efforts
to make the Company’s environmental initiatives more visible, including
publication of environmental accounting data on its website, and thevery convincing message this sends, should be highly commended.

Trees Are an Instrument’s Lifeblood
The value of an instrument lies in its ability to create the most perfectresonance with the sensitivities all humans possess, and woodaccomplishes this better than any other material. In one sense,
Yamaha’s 120-year history has been built around a deep relationshipwith the wood that gives its instruments life. For example, the soundboard, which determines a piano’s delicate tone, is 80-90% composed of wood. This is one reason why the 2010 CSR Reportfocuses on wood as its main theme.
Through its activities as a “Shizuoka Forests of the Future Supporter
System”, the Yamaha Forest, and other efforts, Yamaha goes beyond
its primary business to take a proactive role at home and abroad insupporting forest revitalization. From the viewpoint of environmental,social, and corporate sustainability, however, I believe Yamaha could
also make an important choice to treat these efforts themselves as
the Company’s primary business. This would enable the Company tosecure its own sources of wood, the key material in its instruments,
while expanding carbon sinks, in turn leading to the preservation of
biodiversity and the ecosystem.

Member of Society, Citizen of the World
From the CSR policies outlined in this report, it is obvious that the
Yamaha Group brings a well-defined intent and sophisticated means to
its efforts to contribute to society as a corporate citizen, based on its
roots in sound and music. Going forward, I hope the Group will pushahead even further with specific initiatives to spread both music andenvironmental education, in line with the policies laid out here. To do that,
it is critical that the Company’s employees work to sharpen their individual sensitivity to environmental and social shifts, and that the Company and its employees come together in promoting its CSR initiatives.

RESPONSE

Tsutomu Sasaki
Senior Executive Officer in charge of the
Corporate Administration Group
Yamaha Corporation

17 Yamaha Corporation

This year we are grateful to receive third-party feedback from Hiroaki Satoh, one of the people active inpromoting the “STOP Global Warming Action Campaign.”
We are particularly glad to have his evaluation on our deployment of CSR and environmental initiatives. Going forward, we will continue both to promote our activities and to place importance on communicating with stakeholders, including through careful dissemination of information.
Regarding Yamaha’s relationship with wood, in our future activities we will take into accountDr. Satoh’s point about the importance of going beyond simply voluntary activities and to make woodrelated efforts Yamaha’s primary business.
Going forward, the Company will work together with employees to promote continuous action in thefields of sound and music, environmental consideration, and local contribution, in line with the Yamaha
Corporation Group’s CSR Policy.

Company Outline
Background Information (As of March 31, 2010)
Company name: Yamaha Corporation

Stated capital: ¥28,534 million

Headquarters: 10-1, Nakazawa-cho, Naka-ku,
Hamamatsu, Shizuoka 430-8650, Japan

Number of employees: Consolidated: 25,658
Unconsolidated: 5,185

Date of establishment: 1887

Yamaha Group: Number of consolidated subsidiaries: 84(including companies located outside Japan)

Date of incorporation: October 12, 1897

Number of companies accounted for by the equity method: 1

Representative: President and Representative Director
Mitsuru Umemura

Business Segments
Musical Instruments
Yamaha produces and sells musical instruments,
and professional audio equipment, and is expanding
its business lines to include the operation of music
schools, music media creation, and content distribution for personal computers and mobile phones.

Lifestyle-Related Products
Yamaha supplies system kitchens and systembathrooms for the home.
* On March 31, 2010 Yamaha sold 85.1% of the shares of
Yamaha Livingtec Corporation, the consolidated subsidiary that operated the lifestyle-related products business.
As a result, Yamaha Livingtec is now excluded from thescope of consolidation.

AV/IT
Yamaha produces and sells commercial online
karaoke systems, routers, IP conferencing systems,
and a range of AV (Audio and Visual) equipmentthat includes AV amplifiers, receivers, speakersystems, and Digital Sound ProjectorTM surroundsound systems.

OthersYamaha’s other businesses include the Golf Products
business, the Automobile Interior Wood Components
business, the Metallic Molds and Components business,
the Factory Automation (FA) business, and the Recreation
business.

Electronic Devices
Yamaha produces and sells semiconductors for mobile
phones, home theater AV amplifiers, communications
devices, amusement devices, and other applications.

* Following the transfer of four resort facilities on October 1,
2007, the Recreation segment was included in the Others
segment from the fiscal year ended March 2009.
* Yamaha announced the cessation of production and withdrawal from the metal molds and parts business in fiscal 2009.

* Following the transfer of the electronic metal products business on November 30, 2007, theformer Electronic Equipment and Metal Products segment was renamed the Electronic
Devices segment from the fiscal year ended March 2009.

Key Financial Indicators (Consolidated)
Net Sales by Segment and Net Income (Loss)

Consolidated Net Sales by Region(Million Yen)

(Million Yen)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)
100,000

600,000

300,000

Japan

42,68445,21456,16775,939314,078

50,16546,57354,80972,823
325,989

47,39745,52045,00070,814340,02128,123

27,86639,55830,833
43,121
21,97556,722306,630

27,461
36,942
19,74554,409276,252

50,00000EuropeAsia, Oceania & Other Regions

600,000
68,157
97,29993,676

56,68187,494
94,694300,000

0295,2142005–4,921

North America

78,121
104,11489,903291,228
2006

71,237
86,81066,392
234,844276,6142007

68,45270,284
57,668

2008

218,406
2009

FY–20,615
2005

2006

2007

2008

2009

–50,000
FY

The Relationship Between Yamaha Corporation and Yamaha Motor Co., Ltd.
Yamaha Motor Co., Ltd. produces and sells motorcycles, marine products,
snowmobiles, and other related products. The company separated from
Yamaha Corporation in 1955, becoming an independent business, and as aresult is not included in the scope of this report. Yamaha Motor was previously
associated with Yamaha Corporation by the equity method. This association
was dissolved in May 2007 after a reassessment of the capital relationshipbetween the two companies. In December 2007, however, the two companies established the Joint Brand Committee to ensure optimal positioning of
the shared Yamaha brand in their respective businesses. Looking ahead, bothcompanies are working to substantially increase their corporate value in theirrespective businesses and fulfill their missions and responsibilities to society
on a global basis.

CSR Report 2010 18

CSR Section, General Administration Division
URL: http://www.global.yamaha.com/

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October 2010