INTEGRATED REPORT 2018Year ended December 31, 2018

INCREASINGCORPORATE VALUE
THROUGHSUSTAINABLE
GROWTH

Corporate Mission

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

Management Principles

Action Guidelines

1. Creating value that surpasses customer expectations

Acting with Speed

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

Meeting change with swift and informed action

2. Establishing a corporate environment that fosters self-esteem

Persistence

We must build a corporate culture that encourages enterprise andWorking with tenacity to achieve desired results, and then evaluating

enhances corporate vitality. The focus will be on nurturing the creativity

them

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

and ability of our employees, with an equitable system of evaluation andrewards.

3. Fulfilling social responsibilities globally

Yamaha Motor Co., Ltd. is a multinational enterprise with around
140 consolidated subsidiaries and equity-method affiliates inapproximately 30 countries and regions, and about 90% of our

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

consolidated net sales are derived from overseas markets. We
Corporate Philosophy

operate global development, production and sales networks, andStakeholders

our products are sold in more than 180 countries and regions.

Customers

We have successfully diversified our business by capitalizing on our
Communicationworld-leading powertrain, chassis and hull, electronic control, andShareholders and Investors
Employees

manufacturing technologies. Today, our proprietary technologies
Business Partners

extend to a wide variety of products, including motorcycles, marine

The Community

products, power products, and surface mounters.
We will work on the growth of existing businesses and thedevelopment of new businesses to contribute to the resolution of

Basic Policies
of Internal Control

Business Activity

Basic Policies
of CSRThe Environmentsocial issues and achieve further growth.

Yamaha Motor Co., Ltd.

Integrated Report 20181

On the Publishing of the Integrated Report

CONTENTS

We will enact reforms under the banner

On the Publishing of the Integrated Report ....................................................2“ART* for Human Possibilities” as we work toward 2030.

Creating Value

Looking at the world today, people’s values are expected to become increasingly diverse,

Company Overview .....................................................................................6and issues related to the global environment and society are seen becoming severer and

Financial and Non-Financial Highlights .........................................................8

more complex. To address these social changes, efforts are being made to achieve theIdentifying Important Social Issues .............................................................10

targets set in the Paris Agreement and the Sustainable Development Goals (SDGs).

A Track Record of Creating Value .................................................................4

Important Capital That Forms Yamaha Motor’s Strengths .............................14
Value Created through Our Businesses .......................................................16

contribute to the resolution of social issues through their businesses.

Initiatives to Address Important Social Issues ..............................................18

Possibilities,” and formulated a new Medium-Term Management Plan to achieve this. Under
the Medium-Term Management Plan, the Long-Term Vision sets three areas of focus—
using robotics (“Advancing Robotics”) to address social issues in uniquely Yamaha ways

From the President....................................................................................20
Message from the Director, Chief General Manager ofNon-financial information

Integrated Report 2018
A report that balances ﬁnancial and non-ﬁnancial
information regarding the Yamaha Motor Group’s businessactivities in an easy-to-understand format• Securities Report(Japanese only)• Information for Investors
https://global.yamaha-motor.
com/ir/• Fact Book

Business Strategy
Land Mobility ............................................................................................32
Marine Products .......................................................................................34

growth in existing businesses and the development of new businesses.

Robotics ...................................................................................................36*ART is made up of the initials of our three focus areas toward 2030: Advancing Robotics, Rethinking Solution, and Transforming Mobility.

Activities to Support Value Creation• Corporate Website
https://global.yamaha-motor.
com/• Technical Review
https://global.yamaha-motor.
com/about/technical_review/• Sustainability-relatedInformation
Environment-relatedInformation
https://global.yamaha-motor.
com/about/csr/

Corporate Planning & Finance Center .....................................................31(“Rethinking Solution”) and transform mobility (“Transforming Mobility”)—as themes for

We have prepared this Integrated Report as a communication tool

Financial information

Yamaha Motor’s Process for Creating Value ................................................12Companies are required to transform their businesses with a long-term outlook andAgainst this backdrop, we have set our Long-Term Vision for 2030 as “ART for Human

Structure for Information Disclosure• Corporate Governance Report

Global Brand Strategy................................................................................38

Editorial Policy

Design .....................................................................................................40

In addition to the Long-Term Vision and the strategies to achieve it contained

Research and Development .......................................................................42in the new Medium-Term Management Plan (both formulated in December2018), the Integrated Report 2018 contains a wealth of information about

to convey our activities toward achieving the Long-Term Vision.

Intellectual Property Strategy .....................................................................44
IT Strategy ................................................................................................46

governance (ESG) initiatives. This report is edited to give shareholders,

We previously issued an Annual Report each year, but from this year, we are issuing an

Manufacturing ..........................................................................................48

investors, and other stakeholders a multifaceted understanding of Yamaha

Integrated Report in light of the necessity of providing updates on the progress of long-termMarketing .................................................................................................50

Motor’s sustainable growth. The report was edited referencing the IIRC’s

measures and in response to increased requests from stakeholders to disclose information

Human Resources Development ................................................................52

International Integrated Reporting Framework (released in December 2013)

with a medium- to long-term perspective. This report references the International Integrated

Corporate Governance to Support GrowthReporting Framework of the International Integrated Reporting Council (IIRC) and the

Message from the Chairman of the Board of Directors.................................54

how we will grow going forward through environmental, social, andand the Ministry of Economy, Trade and Industry’s Guidance for Collaborative
Value Creation. Financial, sustainability-related, product, and other information
not contained in this report is available on Yamaha Motor’s ofﬁcial website.

Dialogue between Outside Directors ...........................................................56

Ministry of Economy, Trade and Industry’s Guidance for Collaborative Value Creation. It was

Corporate Governance ...............................................................................60

prepared sincerely and faithfully in a format that is easy to understand as a useful tool for

Directors and Audit & Supervisory Board Members......................................66

communication with all its readers.

Composition of Directors and Audit & Supervisory Board Members...............68
Executive Ofﬁcers .....................................................................................69
Risk Management .....................................................................................70

Sustainability
The Environment .......................................................................................72
Yoshihiro Hidakaa
President, Chief Executive Officerr
and Representative Directorr

The Community ........................................................................................74

forward-looking statements about the future performance of the Company

Financial and Corporate Informationand its Group companies. These are based on management’s assumptions

Financial Highlights ...................................................................................76

and beliefs in light of the information currently available, and involve risks and

Ten-Year Summary....................................................................................78
Management Discussion and Analysis of Operations ...................................80

2

Yamaha Motor Co., Ltd.

Integrated Report 2018

Notice Regarding Forward-Looking Statements
The statements in the Integrated Report, except for historical facts, areuncertainties. Please be advised that actual results may differ signiﬁcantly
from those discussed in the forward-looking statements.
Potential risks and uncertainties include, but are not limited to, general

Organization .............................................................................................85

economic conditions in Yamaha Motor’s major markets, changing consumer

Investor Information ..................................................................................86

preferences, and currency exchange rate ﬂuctuations.

Yamaha Motor Co., Ltd.

Integrated Report 20183

Net sales¥1,673.1 billion

A Track Record of Creating Value
Over the more than 60 years since its establishment, Yamaha Motor has constantly pursued the2010-

creation of new value in a variety of fields including mobility. Going forward, we will addresschanging times as opportunities for growth, while aiming to achieve sustainable growth.

Pursued sensibility and rationality
for a period of intense competition

2014

2017

2018

Achieved a new riding style withthe stability of twin front wheels
Tricity LMW*

Helped lighten the burden
on researchers while
reducing both development
time and cost
CELL HANDLERTM cell
picking & imaging system

Achieved sporty, smooth corneringand natural steering with LMW
front-end confidence
NIKEN*Leaning Multi-Wheel: Yamaha’s designation forvehicles with three or more wheels that lean like a
motorcycle when making turns.

2000-

Promoted globalization and structuralreform during a prolonged recession

Introduced an environmentallyfriendly urban commuter scooter
Passol electric commuter

1990-

Created new markets by entering theindustrial machinery business andexpanding the product lineup

Only eight months after Genichi Kawakami, the fourth

1993

Made lives more secure withsafe water
Yamaha Clean Water Supply System, asmall-scale water puriﬁcation system

1995
1
199
9

Released commuter vehicle that is
comfortable and environmentally friendly
PAS electrically power-assisted bicycle

president of Nippon Gakki Co., Ltd. (today’s Yamaha

2010

2002

Offered wheelchair electric power unit
Offerwith light weight and long range foreasier mobility
easie
JW-I wheelchair electric power unit

Corporation), decided to enter the motorcycle market,
Yamaha’s first motorcycle, production and sales of the
YA-1 began in January 1955. Yamaha Motor Co., Ltd.
was born in July 1955.

1970-

Enhanced the corporate structure andexpanded the business under the
global economic recession

1960-

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

1975
Created new demand by
expanding our product lineup
YG-292 golf car

1977

1978

1987

1987

Established “soft bikes” that allow
women to ride with peace of mind
PassolDeveloped snow blower specifically forJapanese snow
YT665 six-hp snow blower

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

Entered new field of surface
mounters for printed circuitboards
YM4600S surface mounter

1960
Delivered lightweight outboard
motor with good engine starts for
efficient fishing and enjoyablemarine leisureP-7 outboard motor

1968
Delivered greater accessibility on snow
SL350 snowmobile

1955
Yamaha’s first motorcycle
otorcycle
YA-1

Offered new excitement with a sports
car that incorporated the latest, mostadvanced technologies
Toyota 2000GT

1955-

1960

Took up the challenge of the motorcycle business withthe recovery of Japan’s economy

4

Yamaha Motor Co., Ltd.

1967

Integrated Report 2018

Developed the marine market withboats made of new, strong andlightweight materials
CAT-21

Continuing to pursue challenges
as a Kando Creating Company
Yamaha Motor Co., Ltd.

Integrated Report 20185

Company Overview

Sales by BusinessLand Mobility

Financial Services

Other Products

Net Sales

Major products:¥1,117.8

Motorcycles, knockdown parts for overseas production,intermediate parts for products, all-terrain vehicles,
billionelectrically power-assisted bicycles

Marine Products

2.3% 6.2%

Net Sales

Major products:¥338.2

Robotics

4.5%

Outboard motors, personal watercraft, boats, FRP
pools, fishing boats and utility boats
billionRobotics
Net Sales

2018 Net Sales
Land Mobility

20.2%

Major products:¥74.9¥1,673.1 66.8

Marine Products

recreational off-highway vehicles, snowmobiles andSurface mounters, industrial robots andindustrial-use unmanned helicoptersbillion

Other Products%

Net SalesbillionMajor products:¥103.3

vs. 2017 level
Up 0.2%(Increased ¥3.0 billion)

Golf cars, generators, small-sized snow blowers,
multi-purpose engines, automobile engines, automobile
billioncomponents and wheelchair electric power units

Financial Services, etc.
Net Sales¥39.0
Overseas Sales Ratio

billionSubsidiaries and Affiliates by Region(As of December 31, 2018)

90.0%

Yamaha Motor is an international company with approximately

Asia

140 consolidated subsidiaries and equity-method affiliates inroughly 30 countries and regions.
Europe

Japan

10.0%
OthersAsia

43.8%

North America

Europe

13.0%

6

17

companiesJapan

companies

Others

21.9%

Yamaha Motor Co., Ltd.

Integrated Report 2018

companies

12

North America

11.3%

52

27

35
companies

companies

Yamaha Motor Co., Ltd.

Integrated Report 20187

Financial and Non-Financial Highlights

Net sales

Operating income andoperating income margin

Net income attributable to owners ofparent and ratio of net income attributable to owners of parent to net sales¥1,673.1 ¥140.8 8.4 ¥93.4 5.6bil.

Net sales rose 0.2% from the previous year due
to solid sales of the marine products businessand the industrial machinery and robots
business.

(Billion ¥)bil.

Although profitability improved at the motorcycle
business, operating income declined from theprevious year due to a decline in sales ofmotorcycles in developed markets and foreignexchange effects in emerging markets.
Operatingincome(Billion ¥)1,670.1 1,673.1

1,631.2
1,521.2

149.8

1,502.8

108.6
8.0%
87.2
5.7%

2014

2015

2016

2017

2018

2014

Net income per share

2015

2016

2017

Net income per share declined from the previous
year due to the decrease in net income attributableto owners of parent.

Total assets grew ¥17.6 billion from theprevious year-end due to increases in current
assets including inventories.

(¥)(Billion ¥)

267

6.1%

68.5

R&D expenses increased 3.6% from theprevious year for 21.7% growth over past five
years.

(Billion ¥)

91.3

94.9

60.0

4.5%

3.7%

2014

2015

%

2016

2017

2018

2014

2015

2016

172

Returnon assets(%)

4.6% 4.8%

million m3

product development and manufacturing.

We will continue to strive to measure our global
use of water resources and reduce the amount ofwater intake through promoting the reuse of
coolant water and water collection (rainwater andother sources) at factories.

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

597

5.56
561

553

552

4.74

530

4.98
4.45

4.38

2017

2018

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

Capital expenditures

Achievement of
unified certification

Brand ranking

14.6

¥55.1

100

No. 25%The decline in net income led to a 3.0 percentage
point decrease in ROE from the previous
year-end.

bil.

We are sowing seeds for the next stage of
growth through efficient development of existing
businesses.

(Billion ¥)1,415.8 1,433.5

5.6%

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

4.38

Return on equity
(ROE)

65.9

64.1

61.3
56.5

6.6%
181

102.8

thousand t-CO2

Ratio of net
incomeattributableto ownersof parent to
net sales
(%)

4.2%

7.4%
196

99.2

530

Water intake

5.6%

63.2

Total assets

1,310.0 1,305.2 1,318.8

bil.

84.5

Total assets andreturn on assetsbil.

CO2 emissions¥102.893.4

2018¥267.35 ¥1,433.5 6.6
291

Net income
attributable toowners ofparent101.6(Billion ¥)Operatingincomemargin
(%)

7.2%

%

Net income declined 8.1% from the previous
year, and the ratio to net sales decreased 0.5
percentage point.

140.8
8.4%

9.0%

130.3

bil.

%

R&D expenses

55.1

%

We have been working toward global environmental
ISO 14001 unified certification at Group companies
in Japan and overseas since 2012. The program
has been expanded to 46 companies, mainly
manufacturing companies in Japan, Asia, Europe,
the United States, and South America, and as ofthe end of 2017, unified certification had beenobtained by all companies.

17.6%

16.2%

14.6%

(Companies)

12.6% 12.3%

41

44

The Yamaha Brand, calculated by combining thebrand value of both Yamaha Motor and Yamaha
Corporation, was valued at US$1,195 million(compared with US$998 million in the previous
year and US$900 million two years earlier), fora ranking of 25 (from 27 in the previous yearand 29 two years earlier).
*Brand value ranking of Japan-based brands carried out byInterbrand Japan (Japan’s Best Global Brands Top 40 (2019))

46

33
26

Overseas

13
Japan

2014

8

2015

Yamaha Motor Co., Ltd.

2016

2017

2018

Integrated Report 2018

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

2013

2014

2015

2016

2017

2018

Yamaha Motor Co., Ltd.

Integrated Report 20189

Identifying Important Social Issues

Yamaha Motor intends to resolve a variety of social issues in uniquely Yamaha ways.

Important social issues

Resolving social issues is also very important for Yamaha Motor’s sustainable growth, and therefore, in formulating our Long-Term Vision and MediumTerm Management Plan, we have used the steps shown below to identify important social issues that we can resolve using Yamaha Motor’s strengths.

Materiality

Overview

Process for identifying important social issues
STEP 1

STEP 2

STEP 3

STEP 4

Sort social issues

Categorize social issues

Designate important social

Incorporate into Medium-Term

The Corporate Communication Divisionand the Risk Management &Compliance Division look at the wide
range of social issues referenced in
the SDGs and the Global Risks Report,
and select those that will have thegreatest impact on Yamaha Motor’s
use and procurement of management
resources, and for which the resolution
will make the greatest contribution to
the enhancement of corporate value.
We also evaluate the importance ofsocial issues from the perspectiveof stakeholders, referencing thevaluations of ESG rating institutions.

Through consultation with operating

issuesManagement Plan

divisions, functional divisions, andAll of the Company’s officers

Initiatives to resolve the identified

corporate divisions, the divisions clarify

deliberate social issues aggregatedimportant social issues have been

the relationships between the issues

and categorized in Step 2 at theincorporated into the Medium-Termselected in Step 1 and each division’sManagement Committee and theManagement Plan. The rigorous

policies and activities, and those that

Board of Directors meetings, andimplementation of these initiatives

should be addressed Companywide

designate “important social issues”

will be monitored going forward.

are aggregated and categorized.

that should be addressed

Importance to stakeholders

Selected social issues• Financial crisis in important economic zones• Unmanageable inflation• Failure of national governance• Failure of regional or global governance• Inter-government conflict over regional
problems• Deepened social uncertainty• Abuse of technological progress• Abolition of inequality• Responses to multi-stakeholders• Promotion of innovation (active use of global
partnerships)• Implementation of fair taxation• Promotion of sustainable industrialization• Strengthened support for emerging anddeveloping countries

Environment and resources• Improved energy efficiency• Effective use of water resources and preventionof pollution• Introduction of clean technologies• Reduction of waste materials and preventionof damage from pollution• Strengthened measures to address climate change• Sustainable use of natural resources• Strengthened disaster prevention and response• Protection of land and marine ecosystems

Sustainable Development Goals (SDGs)
In 2015, the United Nations adopted 17 targets as
SDGs to be achieved by 2030, in areas including
addressing poverty and inequality, eradication of
injustice, and responding to climate change. The SDGs
call for the cooperation of companies, governments,and local communities around the world, with concreteCompanywide using the Company’s

Transportation, educationand industry

strengths, corporate philosophy, andunique capabilities.

action plans to achieve prosperity for humankind and• Expansion of educational systems that include
vocational training• Promotion of social infrastructure development• Prevention of traffic accidents• Protection of small-scale agricultural and fishingindustries

the Earth. Companies are called upon to contribute to
the resolution of social issues through all of theirbusiness activities.

Important issue areas• Introduction of industrial processes taking into
account clean technologies and efficient use ofresources• Heightened awareness of sustainability• Promotion of economic growth based on fair work
environments• Reduction of waste materials• Curtailment of corruption and bribery• Elimination of discrimination against women/
protection of human rights• Use of women’s skills• Strengthened disaster prevention and response• Eradication of forced labor, human trafficking, andchild labor• Increased employment for socially vulnerable
people• Improved energy efficiency (including promotion of useof renewable energy)• Promotion of use of inexpensive, reliable energy• Promotion of safe and secure work environments• Advancement of diversity and inclusion• Effective use of water resources and prevention ofpollution• Securing of clean water resources• Prevention of pollution and damage from harmful
chemical substances• Strengthened measures to address climate change• Sustainable use of natural resources• Promotion of innovation (promotion of sustainableindustrialization)• Promotion of innovation (promotion of sustainable formsof consumption and production in developing countries)• Promotion of protection and recovery of land
ecosystems• Provision of a stable living environment• Halting of deforestation• Protection and recovery of marine ecosystems• Expansion of educational systems (including vocational
training)• Enhanced education environment in developing countries• Promotion of social infrastructure development• Prevention of traffic accidents• Protection of small-scale agricultural and fishing industries• Advancement of sustainable fishing industry• Improved access to fishing areas and markets in least
developed countries

Innovation

Work-life balance• Promotion of innovation• Enhancement of scientific research andtechnological capabilities in all countries• Technical support to boost developing countries• Promotion of safe and secure work environments• Advancement of diversity and inclusion• Promotion of economic growth based on fairwork environments• Elimination of discrimination against women/
protection of human rights/use of skills• Eradication of forced labor, human trafficking,and child labor• Increased employment for socially vulnerable
peopleImportance to Yamaha Motor

10

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201811

Yamaha Motor’s Process for Creating Value

Corporate Mission

Important Social
IssuesEnvironment andresources

Kando Creating Company (Offering new excitement

Yamaha Brand Structure at
the Core of Creating Valueand a more fulfilling life for people all over the world)

Specific Business Activities

Technology × Sensitivity intertwined Kando

Direction of
medium- to long-

Delivering uniqueand high-quality

term growthstrategies

products andservices

P.22

P.32

Five elements to embody the unique style of YamahaLand Mobility

発 Challenging for Innovation
Transportation,
education andindustry

悦 Creating Excitement

Advancing
Robotics

信 Ensuring Confidence
魅 Captivating Emotional Feelings

Marine Products
Robotics

Value Created through Businesses
Value provided outside Yamaha Motor
Long-Term Vision (2030)
ART for Human Possibilities(Expand human possibilities for a better society
and more fulfilling life)
Environmentand resources•D eveloping safe, livable communities bycourses for safe riding and training service
engineers

Other Products
Innovation

Innovation

P.14

Rethinking
Solution

Yamaha Motor’s strengths

Development

Sales

Work-life balance
Procurement

Manufacturing

Human resources

Traditional
corporate culture

Corporate governance to

12

Yamaha Motor Co., Ltd.

Integrated Report 2018• 50% reduction in product CO2 emissions by
2050• Bringing safe water to more people

Transportation,
providing mobility services
education and•R ealizing safe traffic by providing training
industry

結 Building Ties with Customers for Life

Important Capital

P.16

Work-life
balance• Use of intelligent technologies and control
technologies• Developing new types for mobility• Providing solutions for the agricultural andmedical sectors• Organizational structure that creates job
satisfaction• Creating a workplace that respects all
employees through diversity and inclusion

Value for Yamaha Motor
Transforming
Mobility

Support for the “Yamaha” brandfrom stakeholders
Achieving sustainable growth and enhancing corporate
value over the medium to long term

support sustainable growth

Yamaha Motor Co., Ltd.

Integrated Report 201813

Important Capital That Forms Yamaha Motor’s Strengths

After starting in the motorcycle business, the Company has since developed a diverse business portfolio
while taking on many challenges along the way, and cultivating capital with this as its strength. Going forward,
we will continue to create new value by leveraging the unique capital of the Company operating globally.

Development

Procurement

Global research and development structure
Original and innovative ability to conceive new technologies

Procurement network organized around five global centersand mutually complementary across regions

Creative, advanced technological capabilities andcore technical competencies

Strong teamwork with roughly 1,400 business partners
in total (250 global partners)

Design capabilities that express individuality

Proprietary theoretical-value-based procurement method

Proprietary product development methods

Manufacturing

Sales

Global production structure, structure for supplying products
across regions

Global sales network

Abundant plant management expertise, capabilities
in management technologies
Preeminent capabilities in manufacturing technology,
strong on-site capabilities

Dealerships + Regional sales bases + Yamaha Motor’s
strong teamwork
Marketing methods that connect with customers overa lifetime

Proprietary theoretical-value-based production method

14

Yamaha Motor Co., Ltd.

Integrated Report 2018

Human resources

Traditional corporate culture

Global talent that embodies the brandEmphasis on brand originality

Diverse specialist skills, management ability

Pursuit of innovation

Diversity in terms of specialization, nationality
and culture, and gender

Emphasis on passion and enthusiasm
Free and open-minded

Yamaha Motor Co., Ltd.

Integrated Report 201815

Value Created through Our Businesses

NIKEN motorcycle with two front wheels

Innovation
We are promoting solutions for new styles of mobility,
including our proprietary Leaning Multi-Wheel (LMW)
technology, which uses two front wheels to deliver a clear
feeling of stability when cornering and an exhilarating ride.
We are also accelerating open innovation with outsidecompanies.

Yamaha Clean Water Supply System, a water purification system, for emerging market countries facing shortages of drinking water

E-Vino electric scooter

Environment and resources
We are promoting the manufacturing and sale of electric motorcycles, scooters,
and other products with a goal of reducing the CO2 emissions of Yamaha Motor
products by 50% by 2050.
In addition, our clean water business in emerging market countries provides

We have begun working withNVIDIA (United States) to add
intelligent features to our products.

Creating diverse value
through Monozukuri

safe water to many people, and in addition to better hygiene, releases women and

By resolving social issues in uniquely

children from the hard work of drawing water.

Transportation, education and industry
We are implementing systematic vocational training, focusing on Asia and Central
and South America, to promote the development of manufacturing technicians andservice technicians. This contributes to human resource development andYamaha ways, we aim to contribute toand to increase corporate value overthe medium to long term.

industrial promotion in new markets.
We are addressing transportation issues with land car-based, low-cost
mobility services as a way to provide means of transportation to older persons,
mainly in underpopulated, rural areas of Japan.

Work-life balance

the realization of a sustainable society

Taking a global perspective, we strive to create
workplaces that respect diversity and inclusion. With theaim of creating an organizational structure that is basedon the “sharing of ideas, equally high ambitions and spirit,
cooperation, and joy in our work” among the Company
and its employees, we believe this will lead to the creationof products with high added-value and the enhancementof corporate value.

Developing a system to foster technical instructors for developing countries such as Africa

16

Yamaha Motor Co., Ltd.

Integrated Report 2018Land car-based, low-speed automated driving system

Yamaha Motor Co., Ltd.

Integrated Report 201817

community involves a reduction of 50% to 80% by 2050, and zero or negative emissions by

Initiatives to Address Important Social Issues

2100. In addition, there are ever-increasing social demands for Sustainable Development Goals(SDGs) and other initiatives aiming for the achievement of a sustainable society. Against thisSee page 72 for the fields
where we are working
as well as numerical targets.

backdrop, the Yamaha Motor Group Environmental Plan 2020 was completed ahead of scheduleat the end of 2018. In 2019, we began the Yamaha Motor Group Environmental Plan 2050, which
was developed with the aim of resolving issues such as climate change and community issues.

Resource initiatives:“Clean water business”

We solve important social issues in each country and region through each of our businesses.
Here, we showcase three examples of our main initiatives.

Environmental initiatives: “Environmental Plan 2050”

Industry initiatives: “Modernizationof the fishing industry in Africa”

Each year, 525,000 children under the age of five die from diarrhea

For many years, the fishing industry in Africa has relied on hand-paddled,worldwide.* The Company has developed the Yamaha Clean Water

wooden fishing boats. Because such boats cannot travel far, they wereSupply System, a water purification system that is simple and easy to

only able to catch a few varieties of fish, and the lengthy time required tomaintain, and continues to install it in emerging and developing

bring a catch to market prevented the fish from fetching high prices due

countries in Africa and Asia. This system enables local residents toto poor freshness, and in some cases the fish had to be disposed of. In

operate water supply stations independently, which contributes toaddition, the lack of motor power during stormy weather and the lack ofimproving village health. Since its launch in 2010, a total of 21 systems

strength and stability with the wooden fishing boats resulted in accidents

have been installed in Africa and 15 in Asia.

costing precious lives and materials. Therefore, we are promoting the*According to a 2017 World Health Organization (WHO) study

modernization of the fishing industry as well as the safety of operation andnavigation by advancing the motorization of fishing boats using the

Low Carbon Society

Recycling Society

Company’s outboard motors, and are beginning the introduction of safe
and cleaner fiberglass reinforced plastic (FRP) boats.
We are also promoting the local production of FRP boats throughToward achieving the Yamaha Motor Group Environmental Plan 2050
A variety of issues that are related to the environment and resources that could have an effecttraining and support for FRP boat-building technologies developed byon the realization of a sustainable society are becoming increasingly serious on a global level, including

the Company to build boats with specifications that meet local needs

the advance of global warming, energy and water utilization, and conservation of biodiversity.
Until now, the Company has promoted efforts to maintain harmony with the global environment inall of its corporate activities. Going forward, under the three targets of

Yamaha Motor
Environmental Plan
2050

and to cultivate the local boat-building industry. We have opened
technical support plants in 15 countries worldwide and are producing
3,000 boats each year.

a low carbon society, a recycling society, and a society in harmony with nature, the Company
aims to reduce its environmental impact while actively promoting conservation of the naturalenvironment, where many of the Company’s main products are used, and to contribute to a sustainable
society as a “Kando Creating Company.”Society in Harmony with Nature

Environmental management initiatives
The environmental activities of Yamaha Motor started in 1990 with the setting of a Global
Environmental Policy. In 1997, the Environment Committee was established as a governance structure
for environmental management, and as Groupwide initiatives, the Yamaha Motor Group Environmental
Plan 2010 was established in 2003, and the Yamaha Motor Group Environmental Plan 2020 was
established in 2009, under which environmental activities were promoted in the four categories of“Eco Products,” “Eco Operations,” “Eco Management,” and “Eco Mind.”
In terms of results as of December 31, 2018, we have reduced CO2 emissions per net sales for
the Group by 40% versus our set target of 12% (from the base year of 2009) and reduced the total
waste volume for Yamaha Motor by 25.4% versus our set target of 9% (from the base year of 2012),
and our targets were achieved ahead of 2020.

18

Currently, underpinned by the “2°C scenario,” to suppress the temperature rise from before the

The clean water business and modernization of the fishing industry in Africa are business activities of theindustrial revolution to less than 2°C, the common understanding of CO2 reduction in the international

Company’s Overseas Market Development Operation Business Unit.

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201819

From the President

Yoshihiro Hidaka
President, Chief Executive Officer
and Representative Director

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Formulation of Long-Term Vision to 2030
Accelerating Innovation through Partnerships
Initiatives to Address Social Issues
New Medium-Term Management Plan
Message to Stakeholders

20

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201821

From the President

Musical instruments and motorcycles both appeal to human sensibilities, and playing an instrument

ART for Human Possibilities

or riding a motorcycle brings people joy as well as growth. To date, we have emphasized theconcept of ART of Engineering, which sees engineering as an art, and have engaged in Monozukurithat appeals to human sensibilities while expanding our fields of operations from land mobility likemotorcycles to marine products such as boats and outboard motors. Going forward, we will

Advancing

Rethinking

Transforming

continuously focus on people and pursue unique Yamaha growth as a Monozukuri company that
expands human possibilities.

Robotics

Solution

Mobility

Initiatives in three areas of focus (1)Transforming Mobility—Promote innovations in mobility

We will Advance the use of Robotics, Rethink Solution and Transform Mobility
to expand human possibilities for a better society and more fulfilling life.

Yamaha Motor will contribute to the resolution of social issues with unique products that integratetechnologies from a new field called CASE (Connected, Autonomous, Shared & Services, Electric) with
our electric power technologies developed with PAS electrically power-assisted bicycles, control
technologies from the MOTOBOT autonomous motorcycle-riding robot, and Leaning Multi-Wheel
technologies that deliver greater confidence, comfort, and enjoyment. For example, “bikes that leanbut don’t fall” can bring the exhilaration of motorcycle riding to more people, while electric powertrains

Formulation ofLong-Term Vision
to 2030

Moving toward transformation by 2030 under the banner of

can reduce greenhouse gas emissions, and the development of autonomous driving technologies can

ART for Human Possibilities

provide social infrastructure as “last-mile mobility.”

Yamaha Motor has formulated a new Long-Term Vision extending to 2030.
With our all-embracing corporate mission of being a “Kando Creating Company,” Yamaha MotorThree Focus Areas and Growth Strategies

has continued to grow based on the traditions, strengths, and pride of creating new value throughtechnologies and sensibilities. This will not change going forward, as we continue to work to refine theRethinking Solution

Transforming Mobility

Address social issues through initiatives
with uniquely Yamaha style

Yamaha brand and increase its value.
At the same time, with advances in information technology (IT) and artificial intelligence (AI), theworld is changing quicker than ever before. People’s values are becoming increasingly diverse, andPromote innovations in mobility

Advancing Robotics

Intelligent technology as a foundation

issues involving the global environment and society are becoming more complex. Global efforts arebeing carried out from a long-term perspective to achieve the targets set in the Paris Agreement andExpanding via co-creation with partners

the United Nations’ Sustainable Development Goals (SDGs).
Given this operating environment, we are working to resolve social issues and achieve sustainablegrowth by creating uniquely Yamaha Kando while applying the technologies and sensibilities we have

New
Technology• System Supplier• Electrification• Sharingdeveloped over the years. This approach is encapsulated in the phrase “ART for Human Possibilities.”

Expanding with
Funds/M&A“ART” is an acronym for the three focus areas we intend to emphasize to 2030—using robotics(“Advancing Robotics”) to address social issues in uniquely Yamaha ways (“Rethinking Solution”) andtransform mobility (“Transforming Mobility”)—with the aim of expanding the scope of humanpossibilities and creating a better society and better daily lives.
Yamaha Motor was established in 1955 by making the motorcycle division of Yamaha

Existing
Technology

Continuous and steady growth+
Inorganic growth
Existing Markets

Inorganic
growth• Agriculture
Expanding with a combination• Medicalof technologies• Autonomous

New Markets

Corporation, a manufacturer of musical instruments and audio products, an independent company.

22

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201823

From the President

Initiatives in three areas of focus (2)Rethinking Solution—Address social issues through initiatives
with uniquely Yamaha style
Hilly and mountainous regions account for 70% of Japan’s land surface, which makes it difficult to

Accelerating Innovation through Partnerships
Mobility segment (1)Gogoro (Taiwan)

underpopulated areas and multi-use customer and freight transportation systems across Japan. Going

Contributing to the prevention of global
warming with electric scooters andexpanded infrastructure

forward, we will look beyond low-speed self-driving vehicles to contribute to community development

We are pursuing a collaboration with Gogoro Inc. ofwith a focus on slow mobility, including electrically power-assisted bicycles and electric wheelchairs.

Taiwan to develop and manufacture electric scooters withmaintain public mobility services, and mobility for older persons is emerging as a social issue. Yamaha
Motor is currently engaged in field testing of land car-based transport systems for older persons andWe are developing automatic operation technologies in the marine business as well. Boat captains
perform many tasks—operating the engine, steering the boat, and keeping watch—which means thatsharing of battery-swapping stations.
Gogoro operates an electric motorcycle business inthey are unable to enjoy themselves. At Yamaha Motor, we aim to deliver a safe and comfortable

Taiwan with its own brand of electric scooters and battery-marine lifestyle with technologies enabling you to set a destination, cruise there automatically, andswapping stations. When a scooter’s battery runs low, themaintain position once at the destination so that you can enjoy fishing from the boat.

rider can swap the battery with a charged unit at a stationand continue riding. There are 750 battery-swapping stations in Taiwan, and plans are to increase this to more than 1,000 during 2019.

Initiatives in three areas of focus (3)Yamaha Motor sells 290,000 motorcycles annually in Taiwan, and manufactures and sells the E-Vino retro-pop-style fashion scooter in the

Advancing Robotics—Intelligent technologies using robotics

electric vehicle segment. Under the new partnership, Yamaha Motor will design Yamaha-brand electric scooters based on Gogoro’s

In the field of robotics, we are focusing on the agricultural and medical segments.
Developed market countries today are increasingly faced with shortages of workers in fruit andproduction vehicles, which will be manufactured by Gogoro and sold by Yamaha Motor Taiwan Co., Ltd. The first model is scheduled forrelease in the summer of 2019. Yamaha Motor and Gogoro will share the energy infrastructure of battery-swapping stations, and contributeto the prevention of global warming by expanding the market for electric scooters with a high level of customer convenience.

vegetable agriculture, and the annual global market potential for agricultural robots and drones is
estimated to be ¥4 trillion. Yamaha Motor’s unmanned helicopters have built up a track record goingback more than 30 years in Japan’s agricultural market, and in the United States, we are developing a

Mobility segment (2)Grab (Singapore)crop-dusting business in California. Going forward, we will work to contribute to a stable food supply

Yamaha Motor and Grab agree to strategic partnership in motorcycle ride-hailing service

through labor savings and improved productivity in agriculture by proactively introducing drones andGrab Holdings Inc. is Southeast Asia’s largest operator of ride-hailing services, and Yamaha Motor and Grab have announced a strategic

unmanned ground vehicles.

partnership in motorcycle ride-hailing services in Southeast Asia, focusing on Indonesia. As part of this agreement, Yamaha Motor will invest

In the medical segment, in 2017 we began selling the CELL HANDLERTM, which reduces the work
performed by researchers in various steps of the drug discovery process, contributing to improved

US$150 million in Grab.
Through this partnership, Yamaha Motor and Grab aim to develop

productivity and a higher drug discovery success rate. In addition to selling CELL HANDLERTM units, we

next-generation mobility services by implementing solutions andare investigating possibilities for a solutions business that would include subcontracted services

innovations that 1) leverage Yamaha Motor’s motorcycle safety-related

through equity investment in venture capital companies. Through these initiatives, we are establishingtechnology and know-how to increase user satisfaction by demonstratinga presence in personalized medicine, antibodies, and drug discovery, areas that are said to be worth asafety and confidence in response to motorcycle ride-hailing service

combined ¥3 trillion annually.

demand and 2) lower the barriers to motorcycle purchases for thoseengaged in (or considering) motorcycle ride-hailing (i.e., becoming

Accelerating innovation through partnerships

motorcycle taxi drivers). This will enable Yamaha Motor to use Grab’s

Work with partners who share our visionand expand support with newly established funds

customer base in Southeast Asia and expertise in motorcycle ride-hailingfor future product development.

Achieving our Long-Term Vision will require more than just steady growth in existing markets andtechnological fields; we will also need to incorporate new technologies and create new markets.

24

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201825

From the President

With regard to new technologies, we have begun to work with companies that share our Long-

Accelerating Innovation through Partnerships

Term Vision, including Taiwanese developer and seller of electric scooters Gogoro, major Indianbicycle manufacturer Hero Cycles, and ride-hailing provider Grab in Southeast Asia, to incorporate

Robotics segment (1)

NVIDIA (U.S.); DMP (Japan)

Advances in automation through AI, including
unmanned agricultural vehicles and drones
Seeing AI as the core of control technologies going forward, we areelectrification and sharing technologies in the field of mobility. To cultivate new markets, we are
pursuing joint technological development with NVIDIA in the United States in the field of robotics,
with the aim of adding intelligent technologies to our products.
To accelerate our activities toward the achievement of our Long-Term Vision, we are also stepping

working to accelerate innovation through partnerships. We areup our strategic equity investment from a global perspective. We established the Yamaha Motorcollaborating with NVIDIA, a leading AI computing company, to add

Ventures & Laboratory Silicon Valley (YMVSV) in Silicon Valley in 2015 to study and build on themes

intelligent technology to robot products. This collaboration will involvefor new business development, promote commercialization, and develop new business models, andthe use of image processing technologies using GPUs (graphics

to date have invested roughly US$47 million in nine venture capital companies working in the fieldprocessing units) and the development environment to support ourof robotics and other areas. In November 2018, we established and began operating a proprietary

upstream development of AI technologies.

Yamaha Motor Exploratory Fund, L.P., which we envision making aggregate investments of US$100

We have also entered into a business capital tie-up agreement

million over the next 10 years.

with AI computing specialist Digital Media Professionals Inc. (DMP).
By incorporating DMP’s deep-learning, image processing, and image
recognition technologies into our products and technologies, weContributing to the resolution of designated important social

intend to expand the possibilities for the creation of new value using low-speed automatic/autonomous driving systems, robot utilization inissues in uniquely Yamaha ways

agricultural applications, and advanced safety technologies in various areas of mobility.

Society is increasingly calling for companies to contribute to the resolution of social issues throughInitiatives to Address

their business as part of their corporate duty. At Yamaha Motor, we have designated four importantSocial Issues

Robotics segment (2)Hubrecht Organoid Technology (the Netherlands)

Accelerating technological development in the biomedical engineering field
Yamaha Motor is conducting joint research with Hubrecht
Organoid Technology (HUB) to accelerate its researchand development into organoids, which are patientderived cell cultures that mimic human organ function.
HUB is one of the world’s leading research centersin the field of organoids, and was established in 2013by the Hubrecht Institute, the Royal Netherlands Academyof Arts and Sciences, and University Medical CenterUtrecht. Using organoid technology and working withacademic institutions and pharmaceutical companies,
HUB is promoting medical research, drug development, and personalized medicine in areas including cancer and cystic fibrosis. Throughthis joint research, Yamaha Motor will strengthen its cell-picking and image-processing technologies, which are the core features of the
CELL HANDLERTM cell-handling device, and contribute to advances in organoid research, thereby promoting medical research and new
drug development.

issues to address: Environment and resources; Transportation, education, and industry; Innovation; andWork-life balance.
With regard to the environment and resources, we have set a target of reducing our products’ CO2emissions by 50% by 2050. We have already been manufacturing and selling many electric products,
and will work to meet this target by pursuing further electrification in addition to improved fuelefficiency. We will also continue the clean water business that we have developed in Africa andSoutheast Asia. By providing safe water to more people, we intend to free women and children fromthe arduous task of carrying water and enable children to attend school.
In the areas of transportation, education, and industry, first, we will address transportation issues
by providing the land mobility-based transport services mentioned previously and through support forcommunity development. We are also holding riding safety courses for motorcycle owners and training
service engineers for our various products around the world. We aim to address shortages of agricultural
workers using our unmanned technologies.
In terms of innovation, we are accelerating innovation to be able to work effectively as we addressenvironmental and resource issues and transportation, education, and industry issues. In particular, weare promoting the development of new forms of mobility using intelligent technologies and advanced
control technologies, and are using robotics to provide solutions to the agricultural and medical fields.
We are moving quickly in these areas while also promoting partnerships with other companies.

26

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201827

From the President

With regard to work-life balance, we believe that further promoting diversity globally and utilizing
diverse individual talents regardless of nationality, race, or gender will lead to enhanced performance
as a company where people are enthused about their work. We will enhance productivity by creating
workplace environments where employees feel safe and can have peace of mind, and by renovating
IT platforms.
In 2017, we registered as a participating company in the United Nations Global Compact, whichsets 10 principles for voluntary action in such areas as human rights, labor, the environment, and anticorruption. In 2018, we committed to the Science Based Targets initiative (SBTi) for the reduction of
CO2 based on scientific evidence. In these ways, Yamaha Motor is following and participating in

Direction and targets under the new Medium-Term Management Plan

We will maintain and reinforce the earnings strength of existing businesses
and strengthen the foundation for growth as we once again pursue net salesof ¥2 trillion with operating income of ¥180 billion.
During the period to 2018, Yamaha Motor has maintained stable profits while investing for new growth,against the backdrop of a gradual expansion of the global economy.
Our outlook for the global economy in 2019 is mixed, with European economies slowing from theshock of Brexit, trade frictions between the United States and China, and improved resistance toeconomic fluctuations in ASEAN and other emerging markets. Given this operating environment, weinternational initiatives as it actively pursues the resolution of social issues in uniquely Yamaha ways,
across the entire Group including the supply chain, to contribute to the achievement of the SDGs.
Numerical Targets of the Medium-Term Management Plan
Net Sales

Operating Income

Operating Income Margin¥2 trillion¥180 billion

9.0%transformation toward the realization of our Long-Term Vision: ART for Human Possibilities. To date,

Equity Ratio

ROE (three-year average)

Yamaha Motor has grown by offering new solutions in the existing business areas of motorcycles and49.9%

Approx.

We have launched the first Medium-Term Management Plan
New Medium-Term

to change Yamaha Motor.

Management Plan

The new Medium-Term Management Plan runs from 2019 and covers the first three years ofmarine products, while at the same time pursuing new fields like electrically power-assisted bicycles
and robotics. Under the new Medium-Term Management Plan, we will focus on updating our business15 %and management platforms and developing new businesses to change what we are by 2030.
Net Sales/Operating Income/Operating Income Margin

Review of the previous Medium-Term Management Plan

(Billion ¥)Although we achieved our targets for earnings and financial strength, sales
growth remains an issue.

9.0%

Before explaining the new Medium-Term Management Plan, I would like to give a brief recap of the

1,502.8

Net sales

8.4%

8.0%

previous one (2016-2018).

1,700.0

1,673.1

1,670.1

1,631.2

7.8%
Operating income margin

In 2018, we recorded consolidated net sales of ¥1,673.1 billion, with operating income of ¥140.8
7.2%

billion and an operating income margin of 8.4%, and major financial indicators of 14.6% for ROE, anequity ratio of 45.9%, and net income per share of ¥267.35. Excluding the negative impact of the

149.8
130.3

difference between the exchange rate assumptions underlying our medium-term targets of ¥115/

140.8

133.0

Operating income

108.6

US$1 and ¥130/euro and the actual rates of ¥110/US$1 and ¥130/euro, we achieved our targets forearnings and financial strength of an operating income margin of at least 9%, ROE of at least 15%,
and an equity ratio of more than 45%. We were unable to achieve our sales growth target, however,

2015

2016

2017

2018

2019

$121/€134$109/€120$112/€127$110/€130$105/€120(Forecast)with net sales roughly flat with that of 2015. The marine products, robotics, and electrically powerassisted bicycle businesses all recorded solid growth, but net sales of the motorcycle business indeveloped markets and in Indonesia and India, and in the recreational off-highway vehicle (ROV)
business were lower than forecast, and the fact that the developed market motorcycle and ROV

ROE

12.6%

12.3%

17.6%

12.3%

14.6%

Equity ratio

37.6%

40.5%

44.0%

45.9%

46.5%

Net income per share¥171.89¥180.84¥290.93¥267.35¥243.39businesses were unable to achieve profitability remains an issue.

28

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201829

From the President

Message from the Director, Chief General Manager
of Corporate Planning & Finance Center
will maintain the earnings strength of existing businesses and strengthen our foundation for growth.
Our forecasts for 2019 results are for net sales of ¥1,700.0 billion (an increase of ¥26.9 billion, or 1.6%
from 2018), with operating income of ¥133.0 billion (a ¥7.8 billion or 5.5% decrease) and an
operating income margin of 7.8%.
We plan to introduce new land mobility products that comply with new environmental
regulations during 2020, and in 2021, we will once again pursue the challenge of meeting thetargets set in the previous Medium-Term Management Plan: net sales of ¥2 trillion, with operating

We will balance increases in investments for new
growth and returns to shareholders within the rangeof our cash flow while maintaining and reinforcing
the earning power of our existing businesses

income of ¥180 billion and an operating income margin of 9%. Compared with our 2018 results,

Tatsumi Okawa

these figures represent a ¥330 billion or 20% increase in net sales and a ¥40 billion or 28%

Director, Senior Executive Officer

increase in operating income.

Chief General Manager of Corporate Planning & Finance Center

The breakdown of these targets by segment is as follows.
The land mobility business is targeting net sales of ¥1,350 billion, with operating income of¥92 billion and an operating income margin of 6.8%. In addition to the previous developed market

Basic policy for financial strategy

and emerging market motorcycle businesses, this segment also includes the ROV business and theUnder our Medium-Term Management Plan, Yamaha Motor is renewing

electrically power-assisted bicycle business in order to pursue synergies in electric mobility goingthe challenge of achieving ¥2 trillion in annual net sales while pursuingand continuous dividend with a benchmark payout ratio of 30%, andcontinued growth of our existing businesses and the development ofgoing forward, we will also proactively consider a total return ratio andnew businesses. As benchmarks for a stable financial foundation, we are

the indicator known as TSR (total shareholder return). In addition, fromaiming for an operating income margin at the 9% level while maintaining

the perspective of making efficient use of shareholders’ equity, we arean equity ratio of at least 40%.

designating return on equity (ROE) as an important management

forward. We aim to restore profitability to the developed market motorcycle and ROV businesses byintegrating their sales structures and restructuring their production structures. In emerging markets,
we will pursue a platform strategy and target the premium segment of the markets in the Philippines
and India. For the Smart Power Vehicle (SPV) business including electrically power-assisted bicycles,
we will approach the markets where the Yamaha brand has a presence as appropriate for eachmarket.
Our targets for the marine products business are for net sales of ¥374 billion, with operating
income of ¥76 billion and an operating income margin above 20% as we transform from being anengine supplier to a system supplier, and work to strengthen our high profitability and establish afoundation for sustainable growth.
The robotics business will aim to bolster its profitability further, while expanding the scale anddomain of the business. Numerical targets are for ¥101.5 billion in net sales, with operating incomeof ¥26 billion and a 26% operating income margin.

“Balancing investments for new growth and returns to shareholders,within the range of our cash flow” does not represent a major change inour financial policy. The previous Medium-Term Management Plan also

Stakeholders

Yamaha Motor Co., Ltd.

Integrated Report 2018at roughly 15%.
We will also proactively expand the financial services business withresources were in place, we were unable to follow through completely inprimarily in Australia, Brazil, Canada and the United States, and has

terms of both expenses and investments. This was mainly because we

grown to having an outstanding receivables balance totaling roughly

did not sufficiently narrow down the growth areas to pursue, but we did¥300 billion. Under the current Medium-Term Management Plan, we aim

proactively search for and cultivate new areas. In fact, after establishing

to expand the business to Europe and other regions, and to increase oura venture capital company in Silicon Valley in 2015, each operating

outstanding receivables balance to roughly ¥450 billion.

division considered many proposals and learned many things, andTherefore, as we formulated the current Long-Term Vision,increase corporate value. With regard to the dividend, we seek to “create a stable financial foundation

we held discussions at the global level and made our goals clear. Our

and increase new growth investment and stock dividends,” and have set a benchmark for the dividendorganization and funds have begun to operate at a global level, so thatpayout ratio at 30% of net income attributable to owners of parent. For 2018, we paid a full-year

investments, including for mergers and acquisitions, are carried out

dividend of ¥90 per share, consisting of a ¥45 interim dividend and a ¥45 year-end dividend. We planquickly. We are allocating financial resources for growth more concretely

to pay a full-year dividend of ¥90 per share again in 2019, with a ¥45 interim dividend and a ¥45

and more proactively than in the past. We are also strengthening theyear-end dividend.

management base that will be the platform for growth, and pursuing

Cash flow investment strategy
2016–20182019–2021

Increase inborrowings

Net income
Net income

a digital transformation.

Stockdividends
Growthinvestment

Accounts
receivable infinancialservices
Growthinvestment
Stockdividends

Incl.
growthexpensesWorking capitalIn terms of the financial resources underlying these initiatives, we

Working
capital

Yamaha ways. I humbly ask for the understanding and support, from a medium- to long-term

have increased our investment budget to an aggregate of ¥70 billion for

Depreciation

Capitalexpenditure

Depreciation

Capitalexpenditure

perspective, of all stakeholders.

research and development and ¥140 billion for investments includingCash-inCash-out

Cash-inCash-out

Long-Term Vision, while at the same time contributing to the resolution of social issues in uniquely

30

indicator, with a benchmark of maintaining ROE above the cost of capitala funding strategy of using leverage. The business currently operates

Yamaha Motor views increasing shareholder value as an important management issue and strives to

We will aim to achieve sustainable growth by providing new, uniquely Yamaha Kando to realize ourWith regard to returns to shareholders, we seek to maintain a stablecalled for “promoting growth strategies,” but even when the financial

investments grew.

Message tomergers and acquisitions over three years.

Yamaha Motor Co., Ltd.

Integrated Report 201831

Business Strategy

Land Mobility

Net sales and operating income

We are strengthening our foundation for a new era of mobility inthe areas of motorcycles, recreational off-highway vehicles(ROVs), and electrically power-assisted bicycles.

SPVs
RVs

Emerging market
motorcycles

Takuya Kinoshita

Opportunities

Risks• Expansion of middle-income market in ASEAN and emerging nations• Tighter environmental regulations in each country• Evolution of marketing through digital technology• Shift in industrial structure due to innovative technologies and newcompetition

Priority initiatives under the new Medium-Term Management Plan
way and increased production of global models in the ASEAN nations.

technologies in the developed market motorcycle business.
Amid high expectations for new technologies and new mobility systems

We are introducing new platform models to gain share in ROVs.

such as electric vehicles and the Internet of Things (IoT), we are

The ROV business has been made part of Motorcycle Businessexpanding globally by tying together our brand and products in the

Operations to strengthen its product planning, development, and cost-

motorcycle market. Given this market environment, there are threecompetitiveness. We aim to introduce new platform models that deliver

missions for the products we develop and sell in developed markets: (1)the value sought by customers to increase our share in the growing

To update value through new technological development; (2) To pursue

ROV markets in developed markets.

new businesses in mature markets; and (3) To create global synergies
by demonstrating the Yamaha brand’s DNA. Going forward, we willIn the electrically power-assisted bicycle business, we are rolling

contribute to the future of mobility by proposing uniquely Yamaha

out the realignment of our brand and revenue base globally.

solutions in the fields of motorcycles and Leaning Multi-Wheel (LMW)The electrically power-assisted bicycle segment is expanding into avehicles.

global business with new products incorporating new technologies andby offering comprehensive value through strategic partnerships. We are

The ASEAN motorcycle business is building a revenue base infocusing on Europe, Japan, and the United States, and, in particular, areuniquely Yamaha growth sectors.

starting with business model formulation in the United States, a new

The ASEAN market is entering a period of mature, and we are building

market for us.

popular among the new middle class. In addition, production in ASEAN
countries is contributing to the overall optimization of our production
structure through the shift to platform-based production already under32

Yamaha Motor Co., Ltd.

Integrated Report 2018

Net sales

Net sales

1,117.8

1,129.0

Operatingincome48.7

OperatingincomeOperatingincome1. Current ability update
2. Agile management
3. Shift to new area

92.0

Net sales:

53.0¥1,350.0 billion

Operating income:¥92.0 billion

Operating income margin:
2018

Chief General Manager of Motorcycle Business Operations

a solid revenue base with the Yamaha brand and products, which are

Net sales

1,354.0

Developed market
motorcycles

Executive Officer

We are propelling the brand by developing new, uniquely Yamaha

Priority measures and targets(Billion ¥)

2019

6.8%

2021

(Result)(Forecast)(Medium-term target)$110/€130$105/€120$110/€130

Land mobility: Status of primary products and main competitors
Markets and conditions at Yamaha Motor
We will develop new technologies to update value and pursue new
businesses in mature markets.
With emerging markets entering a period of growth, we plan toshift to platform models and increase production of global models.
We will introduce new platform models in growing ROV markets
ROVs/ATVs
in developed markets.
Electrically power-assisted bicycles We will expand into a global business with new products
and power-assisted units
incorporating new technologies and through strategic partnerships.

Developed market motorcycles andcommuter vehicles
Emerging market motorcycles andcommuter vehicles

Main competitors
Honda, Suzuki, Kawasaki, Harley-Davidson, BMW, Ducati, Triumph,
KTM, Aprilia, Piaggio, Kymco
Honda, Suzuki, Kawasaki, Hero, Bajaj
Polaris, BRP, Honda, Kawasaki
Panasonic, Bridgestone, Bosch, Shimano

2018 results and outlook for 2019
We will shift to create new value by realigning planning, development,

an +8.6% operating income margin. For 2019, factoring in a maximum

and manufacturing capabilities and with agile decision making.

foreign-exchange effect, we are forecasting net sales of ¥224.0 billion,

Under the previous Medium-Term Management Plan, although thewith a -4.9% operating income margin in the developed market

motorcycle business was weak in developed markets, the ASEAN

motorcycle business, and in the emerging market motorcycle business,market overall matured and showed large growth, and scooter products

net sales of ¥790.0 billion, with an +8.1% operating income margin.

grew in the Philippines, which has entered a growth phase. Net sales

We will pursue future growth by realigning our planning,for the developed market motorcycle business in 2018 were ¥228.3

development, and manufacturing capabilities and bringing in strengths

billion, with an operating income margin of -8.0%, while the emerging

from outside the Company, and through management based on amarket motorcycle business recorded net sales of ¥775.2 billion, withsystem that promotes agile decision making to shift to create new value.

Addressing social issues
Initiatives in providing innovative, smaller forms of mobility andWe will continue to address environmental issues going forward

in safety

with products such as electric vehicles and electrically power-assisted

Yamaha Motor aims to address important social issues, and is pursuing

bicycles, and by developing ways to relieve traffic congestion.

R&D in its fields of technological focus. By integrating the “growing

We are also working to promote safety around the world, especiallyworld of personal mobility,” “our electric products already in thethrough the Yamaha Riding Academy, which we hold to reduce traffic

market,” and our “unique style R&D,” we aim to offer smaller forms ofaccidents in emerging and developing countries. We currently havemobility with a new type of “uniquely Yamaha” innovation. We have also

trainers in 15 countries and hold the course 1,400 times annually with

been playing a contributory role by selling various electric products that

100,000 people participating. We aim to expand the program to 20

have less environmental impact. A representative example of this is ourcountries, with 2,000 courses and 180,000 participants by 2021. We

introduction of the world’s first electrically power-assisted bicycle,

are also working with other manufacturers to create safety

aggregate production of which has surpassed five million units.

communication systems for two-wheeled and four-wheeled vehicles.
Yamaha Motor Co., Ltd.

Integrated Report 201833

Business Strategy

Net sales and operating income

Marine Products

Priority measures and targets(Billion ¥)Net sales
Net sales

Net sales

338.2

338.0

We are realigning our global production system andMarine products
and others

pursuing a system supplier strategy to provide fulfilling

OperatingincomeOperatingincome76.0

Operatingincome60.8

marine lifestyles.

Reinforce high profitability andestablish base of sustainable growth

374.0

Evolving as a system supplier
Providing attractive items and services• Marine Long-Term Vision

Senior Executive Officer
Chief General Manager of Marine Business Operations

Opportunities

2018

2019

2021

(Result)(Forecast)(Medium-term target)$110/€130$105/€120$110/€130

Reliable and rich marine lifestyles
Toward further increasing the value of the ocean

Marine products: Status of primary products and main competitors

Risks• Creation of production/supply system to meet demand for large

markets

Outboard
motorsoutboard motors

integrated control technology• Expansion of integrated marine business strategy• Product Development Strategies

Hirofumi Usui

• Expansion of peripheral equipment business due to enhancement of

Improving production capacity and flexibility

54.0

Outboard motors• Growing demand for large outboard motors mainly in developed• Global production layout for outboard motors

Boats• Achieving speedy development in integrated control field• Creation of business structure unaffected by changes in exchange
rates and regulations

Personal
watercraft

Markets and conditions at Yamaha Motor
Given growing demand for pleasure-use boats, primarily in North America and Europe, we will build aglobal production system that can flexibly keep up with growth in demand for outboard motors.
In the relatively stable domestic boat market, we will continue to offer pleasure-use boats withsignificant added value. In service businesses like “Sea-Style,” we will strengthen our development ofservices in line with customer preferences.
We will work to strengthen our competitiveness by building a manufacturing center in North America,
the region with the greatest demand, and by introducing models with high added value.

Main competitors
Mercury Marine, Suzuki, Honda, Tohatsu, Evinrude
Yanmar, Toyota, Suzuki, Tohatsu
BRP, Kawasaki

2018 results and outlook for 2019
Priority initiatives under the new Medium-Term Management Plan

Aiming to provide smart package boats

foreign-exchange effect, is for net sales of ¥338.0 billion with a 16.0%

We are realigning our global production system for outboard

provide more reliable boats by shifting from an outboard motor-focused

In 2018, we introduced a 425-horsepower model as our most powerfuloperating income margin.

motors in response to strong sales of large outboard motors.

business to growing the peripheral systems business, including boat

conventional outboard motor. We also began selling the EXULT43, aGoing forward, we will develop next-generation boat control

In North America and Europe, our main markets for outboard motors,

control systems. Under the new Medium-Term Management Plan, alonglarge salon cruiser serving as our flagship model in the boat segment.

systems and electric propulsion units, and working with cooperating

demand for large outboard motors of more than 100 or 200 horsepowerwith pursuing a system supplier strategy, over the long term we will

As a result, net sales totaled ¥338.2 billion, with an operating income

boatbuilders, we will aim to offer smart package boats that are easieris showing large growth. This is because propulsion units such as

introduce products such as highly reliable and high-value-added

margin of 18.0%. Our forecast for 2019, factoring in a maximum

to operate and more environmentally friendly.

inboard motors and stern drives are being replaced by outboard motors.

automated boat control systems to evolve the business from one that

We see this trend continuing and expect solid growth in demand forprovides products to one that provides experiences, with the aim oflarge outboard motors.

providing fulfilling marine lifestyles.

We are, therefore, realigning our global production system foroutboard motors. We are working to respond quickly and flexibly to market
changes by designating our currently operating Yamaha Motor Iwata Main
Factory, Yamaha Kumamoto Products Co., Ltd., and Thai Yamaha MotorCo., Ltd., as our outboard motor plants for large outboard motors,
medium-sized outboard motors, and small outboard motors respectively,

Product Development Strategies
Technical capabilities“Smart Package” boats

Continuing the provision of
attractive items/services
Large 425
horsepower
outboard motors

and by making our production more flexible through parallel production

Next-generation steeringsystems

Solutions
IoT

Advancing the business by shifting from products to experiences

EXULT43 cruisers“Releasing the secret potential of the sea”

We are pursuing a marine products business that “provides reliable and• Using the thorough knowledge of the world’s oceans, we will createrich marine lifestyles” and further increasing the value of the ocean.

Value Proposition

value that contributes to human development.
Yamaha Motor works to ensure stable food supplies and support“Changing marine culture, changing everyday life”

economic development by introducing fishing methods in the fishery• We will create exciting times, spaces, and experiences for people toindustry in developing countries, and by providing technologies such as

instill joy in their daily lives.

outboard motors and FRP boats. We also carry out activities like “Team“Connecting the sea, people, and society”

Tyura Sango” (a public-private joint project to restore coral reefs in• A platform that connects people around the world with the value of

Okinawa) to exist in harmony with the natural environment. By providing

the ocean will become essential to society.
Electric propulsion units

Under the previous Medium-Term Management Plan, we pursued an“integrated marine business strategy” by which we transitioned from

Reliable and rich marine lifestyles

Specific measures are outlined below.

and by making these facilities mutually complementary.
From engine supplier to system supplier

Addressing social issues

new technologies to alleviate these types of social issues, and working“Toward a future with a more pristine ocean than the present one of today”

together with stakeholders in other sectors on environmental protection• Ensuring that the blessings of an “abundant ocean,” which all people

activities that will lead to abundant and beautiful oceans in the future,associated with marine recreation desire, continue forever

we are working to achieve a sustainable society.

being an engine supplier to a system supplier. This was an effort to34

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201835

Business Strategy

Net sales and operating income

Robotics

Priority measures and targets(Billion ¥)Net sales

Business scale and area expansion andreinforcement of high profitability

101.5

We will contribute to labor savings and autonomization in fields

Net sales

Net sales

81.0

74.9

including Monozukuri, agriculture, and medical research byOperatingincomeresearching and developing robotics and strengthening our(Net sales over ¥100.0 billion, Return on sales 26%)
Operatingincome26.0

Operatingincome16.7

15.5

production system.
Hiroyuki Ota
Executive Officer
Chief General Manager of Solution Business Operations

Opportunities

Risks• Growing need for automation due to labor shortages in Japan and• Deterioration of demand due to changes in the global situation

2018

2019

2021

(Result)(Forecast)(Medium-term target)$110/€130$105/€120$110/€130

SMT
Industrial robots

market• Pursuing more advanced automation in line with the development of
new fields like the Internet of Things (IoT) and “Connected,

Unmanned systems and drones

Autonomous, Shared & Services, Electric” (CASE) vehicles

Priority initiatives under the new Medium-Term Management Plan
We are increasing value to customers by strengthening ourcustomer sites in the form of “variable type, variable quantity

solutions for the broad customer base in our existing markets.

production” and “guarantees of quality and traceability” while at theIn our existing markets, we will pursue both tangible and intangible

same time focusing on expanding our SMT peripheral business, wherecommonalities under our platform strategy while also refining

new growth can be expected. At the industrial robot (factoryequipment functionality to strengthen Monozukuri. We will also

automation (FA)) business, which is growing significantly and has acontribute to reducing equipment upkeep costs for customers, installing

wide range of applications, we are working to strengthen variations,common operations, and enhancing Cost Performance Index (CPI), to

including using collaborative robots, to provide total solutions similar

expand the scope of our business and strengthen profitability.

to the SMT business.

Our surface mount technology (SMT) business has a broad

In addition, we are incorporating functions like machine-to-machinecustomer base, and with a focus on the automotive applications(M2M) cooperation, remote support, and autonomous control tosegment, we are providing the strengths that we have acquired atcontribute to overall factory optimization.

Accelerating automation within plants +Contributing to labor saving in new fields

Robotics: Status of primary products and main competitors• Intensifying competition resulting from new forces entering therising labor costs in emerging nations

2021 Target (vs. 2018)• SMT: 128%
• FA: 196%
• Unmanned Systems: 160%

Markets and conditions at Yamaha Motor
We will pursue both tangible and intangible commonalities under our platform strategy to
expand our business scope and strengthen our profitability.
We will strengthen model variations while also pursuing both tangible and intangible
commonalities to expand our business scope and strengthen our profitability.
We will introduce multi-rotor drones in addition to our proven unmanned helicopters. We willachieve precision agriculture.

Main competitors
Panasonic, Fuji, ASM, Juki
Epson, Mitsubishi, Denso, IAI
DJI

Contributing to new markets, including agriculture, medicalorganizational structures to introduce unique products and services

research, and logistics, with robotics technologies

quickly to both existing and new markets.

In new markets, we are making an increasing contribution to the field

Examples of how we are strengthening our in-house manufacturingof precision agriculture using our agricultural expertise and networks

technologies include artificial intelligence (AI) picking, which combines

gained from industrial-use unmanned helicopters. In the medical

AI and machine vision, improved linear motors and control technologies,

research segment, we are introducing robotics with products like theand applications including drones, unmanned ground vehicles, andTM

CELL HANDLER (a cell picking & imaging system), and we areunmanned surface vehicles using autonomous flight technologies

emphasizing solutions for the logistics segment with unmanned grounddeveloped in unmanned helicopters.

vehicles and other products.

We are strengthening our organizational structures by expanding
R&D centers, in particular with the Yamaha Motor Advanced Technology

Strengthening development personnel, procurement andCenter (YMAT) that opened in Shin-Yokohama, and by reinforcing our

production systems to contribute to a wide range of fields

human resources. In addition, along with strengthening our procurement

We are strengthening our in-house manufacturing technologies andand production systems, we are proactively pursuing external alliances.

New
Existing

Products/Services2018 results and outlook for 2019
Optimization of the entire factory

New business area challenges• Strengthening variations (collaborative robots)• M2M cooperation, remote support• Autonomous control• Integration with core technology• Logistics (drones, unmanned helicopters,
unmanned ground vehicles)

Labor saving/Autonomization

Strengthening solutions• Platform strategies• Expansion for automotive applications• SMT peripheral business expansion

New field automation• Precision agriculture• Medical fields

are forecasting net sales of ¥81.0 billion, and an operating income

core values

margin of 19.1% after investments in research and development.

Both sales and operating income showed steady growth over the three

Going forward, we will contribute to raising productivity in sectors

years covered by the previous Medium-Term Management Plan, and net

where labor shortages are appearing, based on the core values of labor

sales for 2018 were ¥74.9 billion with an operating income margin ofsavings and autonomization.

22.3%. For 2019, factoring in a maximum foreign-exchange effect, we

Existing

New
Market/Customer

Strengthening Business Platforms

Enhancing productivity with labor savings and autonomization as• In-house manufacturing technology• Systems

Addressing social issues
Providing solutions for issues facing society

aim of achieving our Long-Term Vision by freeing up new time for

We are applying robotics to provide solutions to issues in sectors

customers.

that include Monozukuri, agriculture, and medical research, with the36

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201837

Activities to Support Value Creation

Global Brand Strategy

GlobalThe Yamaha Motor Group considers the further enhancement of Yamaha’s brand value to be an important management issue. Under the leadershipof the Brand Committee established in January 2017, we have been pursuing a Global Brand Strategy that seeks to enhance corporate value andbrand strength. Using common global indicators, brand value is measured and analyzed, and feedback relayed to our businesses. We are alsoemphasizing the strengthening of internal branding as per our Basic Brand Structure. From 2019, under the concept of Autonomous BrandingTM,
we will continue holding branding workshops and internal brand promotion activities like Yamaha Day, and the unique features of individual
businesses and regions will be valued as we pursue a consistent and globally unified brand strategy.

Celebrating Yamaha Day around the world

Two Yamahas, One Passion

To strengthen internal branding globally, we designated July 1, theYamaha Corporation, a maker of musical instruments, audio products

anniversary of our founding, as Yamaha Day. We hold activities to notand other offerings, and Yamaha Motor, a manufacturer of motorcycles,

only deepen the understanding of and affection for our brand among

marine products and more, are two different companies with the same

Group employees around the world, but also to lead to illustrating thecreed of “Creating Kando” with customers. As both companies share theunique style of Yamaha through our products and services. Activities

same brand, we are working together to enhance brand value under the

carried out in the various regions are shared with other employees via

theme of “Two Yamahas, One Passion.”

the Global Brand Site.
Holding Branding Workshops around the world
We hold workshops around the world to consider “the unique style of
Yamaha” in our business and study issues and action plans to translatethese thoughts into concrete steps for further enhancement of brandvalue. Over two-and-a-half years from the latter half of 2016 through2018, we held 28 workshops in 18 countries and regions with over
1,300 people participating in all, and we will continue to hold theseworkshops going forward.

Kando Cycle• The Kando Cycle describes how we conduct our business from a branding perspective.

Defining “the unique style of Yamaha” in five words• As a “Kando Creating Company,” we continuously generate new Kando by expanding the linkage of Kando experiences and increase both our brandvalue and our corporate value.

The “Revs your Heart” brand slogan was formulated in 2013 in order for

Emotion, and Ties. Since then, we have been working to enhance

C3

Yamaha Motor to achieve its corporate mission of being a “Kando

corporate value and brand strength by sharing the Basic Brand

Kando
for customers

Creating Company.” The term “Revs” has two meanings—the rising

Structure composed of our corporate mission, brand slogan, and the

C1

revs of an engine and getting excited—and “Revs your Heart”

unique style of Yamaha across the entire Group.

expresses our desire to excite and bring Kando to customers through*Please refer to page 12: Yamaha Motor’s Process for Creating Value.

Y4

various innovations and products. In 2017, we chose five words to

Communicate the uniquestyle of Yamaha and its
experiences to customers

define the unique style of Yamaha: Innovation, Excitement, Confidence,

C2
Understand andexperience the uniquestyle of Yamaha

B1

Build customer’s
emotional attachment toYamahaBuild the excitement forhaving products with theunique style of Yamaha

Spreading theunique style of Yamaha
continuously

C4
Strengthening customer’sbond and loyalty to Yamaha
through service

Kando for employees
and partners

B2
Increase potential fans

Y1

Autonomous Branding

TM

Under the principle of “Distinctive Diversity,” Yamaha Motor aims forconcept of branding that drives activities in said businesses and regions

branding that is globally unified while highlighting the characteristics

Autonomous BrandingTM.

Y3

Develop partners’
loyalty to the uniquestyle of Yamaha

Y2

Yamaha Motor Co., Ltd.

Integrated Report 2018

Increase newcustomers/applicantsC5

and unique features of our various businesses and regions. We call this38

B3

Foster employees’ pride
Embody the unique styleof Yamaha

Develop technology,
products and services
with the unique style of
YamahaC6

Increase profit perunit, number of sales,
profit, stock priceExpand investment

Yamaha Motor Co., Ltd.

Y: Yamaha
C: Customer
B: Business

Integrated Report 201839

Activities to Support Value Creation

DesignYamaha Motor positions concepts, technology, and design as the core of its management based

MOTOROiD

05GEN

on the idea that design contributes to management and branding. Akihiro Nagaya, Chief General
Manager of the Design Center, describes the role of design, along with design initiatives and

YMR-08 industrial multi-rotor drone

achievements.

Akihiro Nagaya
Executive Officer
Chief General Manager
of Design Center

Designing organizations and people
The meaning of design is broadening, and the role of design is no

is conducted for jointly proposing new value. In addition, as part oflonger limited to simply making products look stylish. We believe thathuman resource development that includes social contribution activity“designing” the development of organizations, people, and work

perspectives, we hold Yamaha Creative Hackathons, in which design

frameworks will contribute to the design of the Yamaha brand, and we

students form teams to think about concepts for future types ofare engaged in activities accordingly.

vehicles, in accordance with set themes and give presentations based

In particular, we are focused on designing our approach to design.

on actual objects created using materials such as cardboard.

Our belief that design has a wide range of functions, including

Proposing new value through co-creation
We engage in design based on the “product-in” approach. This

Dot Award, and the iF DESIGN AWARD) in recognition of its high level ofapproach is a style of making a proposal to the world through theperformance and styling. In addition, we have developed concept

incorporation of new value we have conceived in a product or concept

models and products proposing new value, including the 05GEN

models, rather than a “product-out” approach that is based on the ideas

proposed in the “island development” project on Omishima Island,of the creators, or a “market-in” approach that is based on user needs.

Ehime Prefecture and the industrial multi-rotor drone YMR-08

We established the Yamaha Motor Innovation Center for theplanning, corporate design, and branding, is reflected in the fact that

introduced to the market in 2018.

purpose of changing our organization, people, and work frameworks,

the personnel structure of the Design Center is composed equally ofand strengthening co-creation above and beyond the design,designers and non-designers.

development, and manufacturing departments. One of the achievements

We are also engaged in new efforts in human resource

created by the Innovation Center is MOTOROiD, which was unveiled atdevelopment, in which teams are formed with members from different

the Tokyo Motor Show in 2017. MOTOROiD is the result of adepartments in the Design Center and with different roles, and training
Yamaha Creative Hackathon“product-in” proposal using design and technology that were co-createdfrom the design conception phase, and received the top three design

Embodying the Yamaha brand at contact points with society

Yamaha Motor Innovation Center

The Company handles motorcycles and a wide range of other products.

well as dealers in Japan and overseas as important customer contact

We define “the unique style of Yamaha” and employ it in the design ofpoints for fostering the Yamaha brand. For this reason, the Design

various products, leading to the creation of products in which a user canCenter is also responsible for spatial design at show booths and

The Company has set forth “ART for Human Possibilities” in its Long-

the power to make people feel joy and happiness viscerally. We willsense “the unique style of Yamaha,” whether looking at a motorcycle, astores in order to communicate “the unique style of Yamaha” withTerm Vision, and we have incorporated elements of fun that will lead tocontinue our growth by giving birth to value that makes our customers

boat, or another Yamaha product.

a consistent image.

ART in our products and services. Although the expanding possibilities

happy, based on the vision of “ART for Human Possibilities.” We believeof humankind can be partially explained logically with science, ART hasthat this embodies “the unique style of Yamaha.”

In addition to product design, we also view product exhibitions as40awards in the industry (The International Design Excellence Awards, Red

Yamaha Motor Co., Ltd.

Integrated Report 2018

Realizing our Long-Term Vision

Yamaha Motor Co., Ltd.

Integrated Report 201841

Activities to Support Value Creation

Research and Development

Yamaha Motor’s core technical competencies
Yamaha Motor will broaden its businesses, products, and customers
centered around the four core technical competencies of powertrains,electronic control, chassis and hulls, and manufacturing.
Some representative examples are described here.

Powertrains

Chassis and hulls

Electronic control

High-Output, High-Efficiency Electric Vehicles

LMW Technology

Autonomous Navigation Unit

To help overcome the challenges of delivering high output from lighter

Our innovative mechanism offers a new form of personal mobility andWe will realize the automation of various forms of mobility and robotics

and more compact components while still being easy to ride whereriders greater peace of mind, comfort, and fun. LMW (Leaning Multi-

via a general-purpose, automated driving core unit that employs AI.

the bike responds just as the rider intends, we created a competition

Wheel) technology is a new challenge we are engaged in and represents

electric trials model.

another path of evolution for mobility.

MANAGEMENT INTERVIEWMANAGEMENT INTERVIEW
Achievements in 2018

Achievements in 2018

• Equipped the GRAND FILANO with an SMG (Smart Motor Generator), a hybrid powertrain that

We have completed the deployment of first-generation model variations based on our global platform

combines an engine and a motor to achieve improved fuel efficiency

strategy, and contributed to our medium-term goal of deploying 270 new models. In addition, we have

• Expanded commuter models equipped with “BLUE CORE” engines, which realize a high-level balance

released the NIKEN in developed countries as the world’s first sport LMW and as a flagship model for

between being fun to ride, fuel efficiency and environmental performance

Direction for the future

The Powertrain Unit is the department responsible for our models’ power units, which serve as the

While responding to changes in global environmental regulations, we will gradually overhaul our thehearts of many Yamaha Motor products. Today, with the current diversification of technology, using

platforms that embody the riding pleasure, comfort, and convenient mobility unique to Yamaha Motor.

electric motors and batteries in addition to conventional internal combustion engines and drivetrains,

The keys to achieving this aim are technologies to reduce weight and size, and the application ofeither separately or combined, according to a model’s intended use is important. During development,

Heiji Maruyama
Senior Executive Officer“the growing world of personal mobility.” The NIKEN has received praise from the markets.

Direction for the future

we constantly pursue efficiency by seeking improvements in both power output and fuel economy.
In particular, we are currently focused on development related to reductions in CO2 emissions

Chief General Manager of Powertrain Unit

toward achieving a zero-carbon society as a pressing part of our social responsibility.

Toyoshi Nishidaintegrated vehicle control technologies to minimize user stress and maximize riding fun and trust.

Executive Officer

Miniaturization technologies will make it easier to equip products with riding support systems that

Chief General Manager

reduce burdens on the rider, and we will develop platforms equipped with integrated vehicle control

of PF Model Unit

technologies that allow users to enjoy riding with more peace of mind. In the growing world ofValue we offer

personal mobility, we will work to achieve more advanced self-balancing technology and seek LMW

As power sources for numerous Yamaha Motor products, it is not enough to only meet the demands of society; we need to create

innovations while accelerating the deployment of products capable of providing the thrill of leaning

excitement and Kando together with our customers. When speaking of the unique style of Yamaha internally, key words that are always

mobility to more driver’s license holders.

mentioned together with Jin-Ki Kanno* and “high performance” are “lightweight and compact.” To stay in touch with our customers andValue we offer

achieve our mutual aims together, our power units must provide strong support for our customers, who play the leading role, but not

In order to realize our Long-Term Vision, we will use advanced control technologies to create innovative

become a burden or inconvenience. This is why it is important our power units be lightweight and compact. We are constantly engaged

leaning mobility. By doing so, we will conceive designs unique to Yamaha Motor that appeal to thein a wide range of technological development with the aim of using the best technologies to stay close to customers and help them fulfill

senses and provide Kando that stimulates the right side of the brain, and thereby continue to create

their wishes.

enthusiastic Yamaha Motor fans worldwide.
*Yamaha Motor’s exclusive development ideal deﬁned as the seductive exhilaration felt when a person becomes one with the machine.

42

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201843

Activities to Support Value Creation

Intellectual Property Strategy

Global portfolio

Portfolio in growth areas

To promote the sustainable growth of its corporate activities conducted

properties simply as “rights,” but rather as “assets” supporting ourBased on current and future markets, technologies, social environments,

new value. To achieve this, we are working to transform the intellectual

around the world, Yamaha Motor proactively creates, protects, and uses

business activities and growth strategies in various countries and regions,and other trends, we have designated areas to promote sustainableproperties that support this into advanced “assets” in line with each

its intellectual properties. In particular, we do not view intellectual

and we use them to create new value as a “Kando Creating Company.”

growth in our Long-Term Vision of “ART for Human Possibilities” as wellrespective growth area.

North America
No. of registered patents and designs:
2,176

EuropeNo. of registered patents and designs:
7,923

Asia
No. of registered patents and designs:
7,162

as in our medium- to long-term growth strategies toward the creation of
TRITOWN
Inventions related to vehicle
mechanisms that create newriding sensations

New
Technology

Next-generation boat
control systems
Inventions related to onboard
controls enabling boat operation
at will on the water

MWC-4
Inventions related to attitudecontrol that create new riding
sensations

Existing
Technology

Expanding with
Funds/M&A
Inorganic growth

Continuous and steady growth+
Inorganic growth
Existing Markets

AfricaNo. of registered patents and designs:
507
Asia

Patents No. of registered

AfricaLatin America

Europe

8

148

4,289

2,018

13,295

18

36

1

4

16

2

77

694

143

12

81

3,634

158

4,722

20

37

3

5

29

2

96

No. of countries/regions
registered*As of February 15, 2019

In addition, we hold trademark rights in 258 countries and regions.

NIKEN
Inventions related to the new“LMW Ackerman steeringgeometry” steering structure

Outboard motors
Inventions related to the Integrated
Electric Steering System• Agriculture• Medical• Autonomous

Expanding with a
combination of technologies

New Markets

Public Personal Mobility
Inventions related to fleet control

CELL HANDLERTM
Inventions related to devices that
select and move target cells withhigh speed and precision

YMR-08Inventions related to drones formore efficient crop dusting

Total

364

registered

As shown above, Yamaha Motor’s intellectual property efforts

countries, working in coordination with customs and enforcement

involve creating, protecting, and using its increasingly global andagencies of various countries to expose counterfeit goods, and engaging

advanced intellectual properties as “assets” to engage in corporate

in a wide range of other efforts.

in developed markets with well-established intellectual property systems

activities in various countries and regions, support the creation of new

Going forward, we will continue to regard intellectual properties aswith an eye on current and future markets, technologies, social

like Japan, the United States, and Europe, but also in countries andvalue based on medium- to long-term growth strategies, and promote

important “assets” that support our sustainable growth and creation ofenvironments, and other trends. To do this, we are working to transformregions experiencing remarkable growth throughout Asia, Africa, andthe Company’s sustainable growth. To aid in accelerating thesenew value as a “Kando Creating Company,” and work to create, protect,the intellectual properties supporting this into global “assets,” not only

Central and South America.

intellectual property efforts, we are also cooperating with activities toand use these increasingly global and advanced intellectual properties

promote application examinations at the patent offices of various

to an even greater degree while enhancing their value.

Yamaha Motor is expanding its corporate activities on a global scale

44

North America

6,468

No. of countries/regions
Designs No. of registered

Oceania

Oceania
No. of registered patents and designs: 20

MOTOBOTInventions related to optimized
control of vehicle dynamics while
avoiding falls• System Supplier• Electrification• Sharing

Expanding via co-creation with partners

Latin America and the Caribbean
No. of registered patents and designs:
229

MOTOROiD
Inventions related to self-balancing
control to remain upright evenwhen stopped

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201845

Activities to Support Value Creation

IT Strategy

Accelerate the Yamaha Growth Strategy by IT, Digital, and Data

Provision of new value and contributions to sales and profits through the use of digital technology and data

The IT Center was newly established in January 2019 to accelerate the growth strategy of the Yamaha Motor Group through the strategic use of IT,

The business environment is undergoing significant changes due to the

AI. While responding to this new competitive environment, we will

digital technologies, and data. The IT Center will focus on the following five theme areas in the new Medium-Term Management Plan, and promotespread of networks and mobile devices, resulting changes in customer

regard these changes as opportunities and conduct the following

digital transformation on a global basis.

behavior, and the advance of digital technologies such as the IoT

measures to improve the customer experience through the use of digital(Internet of Things), in which everything is connected to the Internet andtechnology and data, and thereby contribute to sales and profits.

Establishment of a global consolidated database and renewal of our core IT systems
Achievement of faster decision making and predictive management
while simultaneously shifting resources to areas of differentiation• Provision of new value to customers through the network connection and data utilization of products• Digital marketing through the omni-channel

Until now, the core IT systems that support the operations of theinfrastructure system will be overhauled over a period of six years andYamaha Motor Group have been optimized for each region and businesscompleted by the end of 2024. In this manner, we will achieve fasterprocess. However, the optimization of individual systems can present

decision making and predictive management, and accelerate the shift ofobstacles to making prompt management and business decisions asinternal resources to areas of differentiation.

• Smart operations• Establishment of a functional Center of Excellence in data analysis
Training data scientists

IoT Data
Platforma consolidated Group. In light of this situation, the global core IT• Establishment of a global consolidated database (layer 1: consolidated business management, layer 2: digital data infrastructure)

LTE
Network
IoT
G/W• Overhaul of the core IT system at each business location (maximum use of ERP (Enterprise Resource Planning) packages)

Layer 2
Digital data
infrastructure

Utilization of digital data
Operations

Consolidated business management

Purchase

Service

Dealers
YamahaPre-Store
Improvement ofcustomer transfer rate

IT infrastructure that supports product connectivity

Global common master

Pre/In/Post
Integrated marketing

Post-Store
Reduction of exit rate

Comprehensive digital marketing

Consolidated business database
Integrated interface

Integrated interface

Subsidiaries’ functions

IoT Device /Telecom Network

Visiting

Customer

In-Store
Improvement ofclose rate

Customers
ApplicationDB

IoT Application
Platform

Global supply chain management

Layer 1
Consolidated
businessmanagement
infrastructure

LocationsMarketingOperation
Systems

AccessingwebsiteClientApplication

MQTTManagement dashboard

Products

IoT
DB

API

Yamaha Motor global functions• Standardization of the code that links the IT systems at individual business locations with the consolidated database,and establishment of data integration infrastructure

Data
Store

Prospective
customer

Websiteviewer

New

Japan
North America
EuropeAsia
China, Taiwan
Central & SouthAmerica

Accounting

Procurement

Cybersecurity measures
Manufacturing Sales/logistics

Repair parts

Service

MarketProcesses without individual systems: ERP packages
Processes with individual systems: dedicated systems

Along with the advance of IoT and the use of digital technologies,

Motor Group will establish a structure for cybersecurity

the importance of cybersecurity measures is increasing not only forcountermeasures, including IT, OT (operational technology), andcorporate systems and client devices, but also for plant facilities and the

products, and steadily take actions regarding cybersecurity.

various products and services provided by Yamaha Motor. The Yamaha
Overall renewal image of core IT systems

Establishment of next-generation IT and digital infrastructure that supports digital transformation

46

Flexible use of global consolidated IT resources and global IT governanceIn promoting the digital transformation of the Yamaha Motor Group,

world, network-connected products, and various other devices.

The Yamaha Motor Group has approximately 1,800 IT resourcesbusiness locations, and contract employees. We will flexibly use these IT

it is necessary to establish an infrastructure that connects not only the

To that end, we are working to design and build next-generation

globally, including information systems subsidiary Yamaha Motor

resources and coordinate appropriately with our external partners while

headquarters and business locations, but also plant facilities around the

IT infrastructure using new technologies.

Solutions Group (Japan, China, and India), IT departments at individual

promoting the global digital transformation of the Yamaha Motor Group.

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201847

Activities to Support Value Creation

Manufacturing

Yamaha Motor’s unique theoretical-value-based production

Theoretical-value-based procurement

Theoretical-value-based production is a unique initiative by Yamaha Motor

proceeding with the synchronized production of processes with the

The number of business partners that have implemented theoretical-

and has been implemented at all of its Group companies and businessperspective of overall optimization.

value-based production has expanded to approximately 330 companies

partners. By conducting improvement activities after first drawing up a

These activities were started in Japan in 2004 and rolled out to Group
companies overseas the following year, and have led to positive results

thinking compared to a conventional incremental approach. In addition,

within the Company. In 2009, these activities were also implemented at our

we seek to achieve contributions to management results by linking thesebusiness partners, and helped to improve the results of our partners thatbetween business partners and Yamaha Motor.

activities with the income statement or balance sheet.

had been affected by the bankruptcy of Lehman Brothers.

Global Suppliers Conference (GSC)

Currently, these activities have been implemented at 18 of 34 of“value running time,” generally known as evaluation benchmark for

Yamaha Motor’s overseas production bases.

productivity, is further broken down into value, quasi-value, and no value,322

globally. In addition, profitability has increased considerably due to thevision, we try to obtain a much higher output with a different way ofSpecifically, this is a unique improvement method through which

Number of companies implementing theoretical-valuebased production

further pursuit of improvements.
Through this process, strong teamwork is being established

251

183
Overseas• Held for the seventh time this year since 2013.

146• The objective is to share the “Next Yamaha” with suppliers who are

These activities, which began with motorcycle production, have

our Monozukuri (engineering, manufacturing and marketing) partners.

and any elements of no value are thoroughly analyzed and minimized.

expanded to the production of outboard motors, robots, swimming

In addition, it focuses not only on the productivity of people andpools, and boats. Such activities are also advancing from processincluding 88 companies from 13 countries, 133 companies in Japan,

facilities, but also the lead times for people and goods. We seek to realize

improvements to include comprehensive improvements as well as theand executives and employees of Yamaha Motor and its subsidiaries.

a shorter lead time and make improvements in following the market bypursuit of technological theoretical value.

86• Participants consisted of a total of approximately 630 members,• Explanations of our Long-Term Vision were provided at Monozukuri

30

44

54

67

13

Japan

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

workshops and conferences.
Theoretical-value-based production chart• Business operations were introduced and awards of excellence were
Operating timepresented to business partners.

Value running time
Value working time

Quasi-value working time

Running loss
No value working time

MANAGEMENT INTERVIEW

Field theoretical value
Fastest time

Technology Identify the essential functions, eliminate items and objects (losses) otherloss
than these essential functions, and continue to aim for new heights

The basic principle of TVP (theoretical-value-based production) is thinking about what is the absolute

Essential functions
Technological theoretical value

theoretical best that can be achieved. It’s very much a part of manufacturing operations, but I think
you can apply it to logistics, design, energy usage, even for process design.

Development into theoretical-value-based logistics and theoretical-value-based energy

Reducing loss is part of the activity, yes, but loss alone is kind of an isolated focus. TVP is more
about total optimization—the absolute best.

Theoretical-value-based logistics
We define value in the same manner as theoretical-value-based production:

Over the last five years, we’ve had improvement activities inside the company as well as with our

Amount of energy is reduced each year, even with growing sales

suppliers in the United States, and this year we’ve identified twelve of our core suppliers that we will

cooperate with related departments and pursue theoretical value from theperspective of overall optimization through a demand chain approach. We

teach TVP to. We will work with them to help teach them and make improvements.

100%

Reduction of 36%
versus the base year

will reduce losses in plant transport logistics and packaging logistics, andimplement packaging and logistics based on a global standard.

64%

Theoretical-value-based energy
We pursue energy minimization by defining the theoretically required

I think the end goal is showing how the TVP mindset and understanding can be applied to any
Michael (Mike) Chrzanowski

Per unit

President of YMMC*

part of the company. Not just having Manufacturing doing it globally, but how do we do it with facetsof product design, quality assurance, quality design, etc.

(Energy cost/net sales)

572

500

energy as “value energy,” and thoroughly eliminating non-value areas*YMMC: Yamaha Motor Manufacturing Corporation of America

Amount of energy(1,000t-CO2)

through improvements in both facilities and operations.
We will implement this method at suppliers as well as Group
companies in Japan and overseas.

48

Yamaha Motor Co., Ltd.

Integrated Report 2018

2012

2013

2014

2015

2016

2017

2018

(Base year)

Yamaha Motor Co., Ltd.

Integrated Report 201849

Activities to Support Value Creation

Marketing

The Global Yamaha Way in Marketing in Sales
Introduction of a successful case—bLU cRU

Marketing is an activity that views the needs of customers as the starting point of all corporate activities and pursues sustainable growth byconstantly enhancing customer satisfaction. A part of such marketing efforts that should be engaged by members involved in sales and after-salesbLU cRU is a support program to improve loyalty among amateur racing riders and was shared by YMUS (Yamaha Motor Corporation, U.S.A.).

is called Marketing in Sales (MiS). These activities are based on the wisdom of pioneers who have shouldered the Yamaha brand and developed

It is currently being applied in many markets, including Australia, Canada, Europe, Japan, and Mexico according to their respective market

Yamaha fans, and an approach that has been valued to support the unique style of Yamaha. These are documented as shared values in The Global

environments, and has developed into a global initiative toward Yamaha Motor lifetime customer development.

Yamaha Way in MiS.

Dealers, distributors and Yamaha Motor all working in union as Team Yamaha toincrease Yamaha customers.
Pass on Yamaha’s shared values and know-how to develop Team Yamaha person.

[Vision] Continue to Create Lifetime Yamaha Customers[Mission] Be Customer-Centric, Think Out of the Box, Be Result-Oriented

MANAGEMENT INTERVIEW
Yamaha Person/Team is who: Love Yamaha, Act as a Team Player, Be an Expert inI have participated in the GMSM as a marketing representative from Thai Yamaha Motor Co., Ltd. (TYM) fromYour Job, Commit to Your Promise

the first session in 2015. I have had a fantastic time participating in this program and have been inspired by
the many wonderful ideas that I was able to incorporate after returning to my home country. We have adopted
a sales channel evaluation concept that was presented by Yamaha Motor Canada Ltd. (YMCA) in 2015, anddeveloped a unique system for improving the operational efficiency of dealers in Thailand that continues to

GMSM（Global Marketing in Sales Meeting）

this day. In addition, ideas related to digital marketing from Yamaha Motor do Brasil Ltda. have also produced
results. These are practical examples of “Think globally, act locally.”あたり
あたり

This year, I have been assigned as a Marketing Advisor at Yamaha Motor headquarters, responsible for global

Wisdom in MiS tends to be dependent on individuals and is often passed

this end, rather than incorporating these successful cases into a manual

down as tacit knowledge. The GMSM was started in 2015 as a forum

to be implemented worldwide, a Teach & Learn approach has beenmarketing and strengthening of the brand, and providing advice based on my past experiences at the GMSM. The

Jintana Udomsub

for sharing and utilizing such tacit knowledge as explicit knowledge on

adopted in which participants employ a common framework to organize

network of this program is being expanded to countries around the world through the involvement of new

Corporate Executive Advisor of TYM

a global level.

the facts regarding successful cases, and analyze the factors underlying

members from the new generation. The most interesting aspect of this program is watching the younger

each success in order to teach each other and learn about thegeneration learn and share new ideas through Yamaha Motor’s global network.

The objective is to improve the competitiveness of Yamaha Motor inglobal markets by sharing successful cases from countries around theapproaches behind these cases. Until now, the GMSM has been held six

world in accordance with The Global Yamaha Way in MiS, and putting

times, during which 54 success cases have been shared, and havethe lessons learned into practice at various customer contact points. To

been applied to 35 cases.

Participating members focus primarily on improving customer satisfaction and discussing methods ofbuilding deep relationships with customers.
I am confident that such occasions represent good opportunities to nurture the Yamaha brand among members participating in the GMSM.
It is clear that this program will allow us to make further improvements to The Global Yamaha Way, through sales and marketing. Let us work
together going forward.

50

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 2018

51

Activities to Support Value Creation

Human Resources Development

Framework for the development and placement of global human resources
Overseas sales account for 90% of the net sales of Yamaha Motor.

program called YBS-G (Yamaha Business School Global) has also been

There are over 90 Group companies overseas, with approximately

established for future executives to learn in a richly diverse environment.

70,000 employees (including regular employees and non-regular
employees) working worldwide.

The aim of this program is to encourage the promotion ofoutstanding human resources to management positions regardless

Under these circumstances, we are promoting the developmentof nationality, place of birth or any attributes, and to increase theand implementation of common executive and employee development

percentage of local managers holding management positions at

programs around the world, introduction of global personnel policies foroverseas subsidiaries to 60%.

the development and promotion of competitive human resources, and

The Global Human Resources Development Division wasorganization building that takes advantage of global experience andestablished in 2015 to handle the development of global talent thatknowledge.

embodies the Yamaha brand. This division also has the role of placing

human resources from overseas subsidiaries are being assigned toappropriate human resources in appropriate positions in a timely

managerial positions of general manager or above at our headquarters.

In order to provide experience in the global arena and develop
knowledge for the future, we have launched a program called the Global

manner at Group companies around the world. For this reason, we have

Executive Program (GEP). To date, a total of 56 participants from 15

enabled the evaluation and central management of the duties fulfilled bycountries have participated in this elite program. Recently, a training

management positions at Group companies around the world withto headquarters from Yamaha Motor Europe N.V.

Organization thriving on diversity

employees can work in ways that suit their individual circumstances, by

stance on human rights in the Basic Policies of CSR and the Code ofproviding childcare leave, nursing care leave, and family illness leave, as

Ethics. Moreover, to maintain continuous growth, we believe it iswell as systems such as flexible work time, short working hours, andimportant that our workforce incorporates diverse viewpoints andthe rehiring of employees who resigned to accompany their spouse on

values, reflecting different experiences, skills, and attributes.

overseas postings.

Promotion of active participation by women

Workplace safety and health

We have set and are pursuing targets of doubling the number of women

We strive to prevent occupational accidents by performing risk

hired for managerial positions in 2014 by 2020, and to hire three times

assessments in accordance with the Occupational Safety and Healththe 2014 number by 2025.

Management System to detect potential dangers and harmful conditions

Utilization of capabilities of people with disabilities

in the workplace.

In October 2015, we established Yamaha Motor MIRAI Co., Ltd. to

Employee healthprovide a place where people with disabilities can participate actively

We are engaged in a wide variety of initiatives to help employees

in accordance with their capabilities and to promote their social

maintain and improve their health. Because we have many employees

Global Human Resources

independence. Areas of operation are being expanded to areas such as

stationed overseas, we hold training on infectious diseases and general

Development Divisionparts packaging, office cleaning, and data entry in an effort to increase

health management for employees who are scheduled to be stationed

Yamaha Motor Co., Ltd.

job satisfaction and motivation.

overseas prior to posting.

our global human resources framework was established, and the contents of related activities were specified.
In 2014, global grading (a method of job evaluation) activities standardized for global executive positons
were initiated. Successor development activities were also implemented in accordance with the situation. Since
then, fine adjustments to these activities have been made and they are now visualized within the HRIS (Human
Resources Information System).
In 2014, the RDP (Regional Development Program) was started for human resources development. This
program is intended for talent in each region with the aim of preparing to supply talented human resources to
YBS-G and GEP in the future. The combination of these three development programs forms a meaningful andMelanie Tups

systematic global human resource development pyramid.

General Manager of thefurther strengthen these programs, and provide more employees with opportunities to take on challenges at other Group companies and workat rewarding positions. This will be mutually beneficial for both individual employees and the Company.
Last, the Global Human Resources Development Division has started a project called Global Communication Enhancement. There areplans to improve English and cross-cultural skills of Yamaha Motor Group personnel in order to promote better global communication at
the headquarters and Group companies. Global communication aimed at transformation is the key to success and is also in line with theCompany’s Long-Term Vision.

Development Division is a non-Japanese employee who was dispatched

for employees at the Company. We are enhancing our systems so thatthe following year, the first annual global human resources meeting was held at our headquarters. At that time,

expanded in terms of both regions and positions. The Company will seize the opportunity for globalization,

In 2016, the Yamaha Exchange Program (YEP) was introduced, andfirst of all with and for people,” the Company has clearly defined its

The foundation of our global human resources activities began in 2012, when the first GEP was held. In July ofin order to develop human resources who embody the Yamaha brand. Furthermore, YEP is currently being

The current general manager of the Global Human Resources

Based on its fundamental belief that “all corporate activity originates

MANAGEMENT INTERVIEW

In addition, we have a development cycle model based on the specific competencies of the Company

common criteria and processes.

Multifaceted human resources development

In 2018, we acquired the “Certified Health & Productivity

We are enhancing various human resources development programs at

Management Outstanding Organizations Recognition Program (White

the Company. In addition to stratified training, function-based training,500)” certification from the Ministry of Economy, Trade and Industry

overseas field experience, trainee programs, and support for studying

as a company and organization that is particularly outstanding inat a university abroad, we also have a coaching program to enhance

conducting health and productivity management.

performance as an organization with cohesive teamwork.
Supporting work-life balance
We aim to create workplaces that promote a healthy work-life balance

52

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201853

Message from the Chairman of the Board of Directors

We will engage in corporate governance that builds on
Yamaha Motor’s unique style and creates Kando that
surpasses customer expectations.

Yamaha Motor’s corporate governance continues
to evolve
With our corporate mission of being a “Kando Creating Company,”
Yamaha Motor has endlessly pursued the challenge of creating Kando
that surpasses customer expectations. In line with this, our corporate
governance continues to evolve as well.
In 2018, we separated the positions of Chairman of the Board of
Directors and President and Chief Executive Officer to achieve more
effective corporate governance. We have also restructured the Board of
Directors to give more voice to Outside Directors. With four independent

550 issues, with the majority of these initiated by Outside Directors

have experience working overseas, and about 50% have served as

and Outside Audit & Supervisory Board Members, demonstrating thatpresidents of subsidiaries. Going forward, we intend to bolster ouroversight from a third-party perspective is fully in place in the Board

programs for level-specific training and successor training to fosterof Directors.

global talents that embody the Yamaha Motor brand.

With four Outside Directors and three Representative Directors
as its members, the Executive Personnel Committee is also fulfilling its
duties. During 2018, the position of Chief Executive Officer changed

Toward further advances in corporate governancehands, and this year we have completely revised the system for

Yamaha Motor’s overseas sales currently account for approximately

executive remuneration. We will continue to work to ensure that profits

90% of total net sales. To strengthen our global management

are shared with our shareholders over the medium to long term.

capabilities, the Global Executive Committee brings together top
executives from key countries to share philosophies and ideals, and 12

Outside Directors and seven internal Directors, Outside Directors now
make up more than one-third of the Board. In addition, we have struck afine balance composition-wise with the experience and specialties of
the Directors for more effective management, as clearly indicated by ourskill map.

global meetings—each for specific functions—are held annually tostandardize and refine methods in various fields. We are also working topromote diversity with regard to specializations, nationality and culture,gender, and other areas, to facilitate flexible, good decision-making.

To facilitate substantive and thorough deliberations at Board of

Yamaha Motor needs to energize its value creation process to further

With society undergoing changes at a pace like never before, weDirector meetings, we have established a system in which items to be

our sustainable growth. To do this, in addition to separating oversightneed to respond to advances in areas like CASE, artificial intelligence,

discussed are shared in advance. In addition to providing Outsideand execution duties, we are making speedy transfers of authority toand digital technology. To be able to provide solutions that deliver value

Directors with sufficient information and firsthand experiences of the

managers responsible for execution. Creating opportunities for theseto customers and society, we are emphasizing our corporate culture ofbusiness, we also hold monthly management discussion meetings on

officers to pursue challenges is also an important role of corporate

creating Kando through “Technology × Sensitivity,” and strengthening

various themes to deepen their knowledge.

governance, and for the three-year period covered by the new Medium-our corporate governance structure to enhance our global cohesivenessTerm Management Plan, we have allocated our growth investment

and diversity.

Our free and open-minded corporate culture is also reflected
at meetings of the Board of Directors and management discussion

budget of ¥70 billion for research and development and ¥140 billion for

meetings. During 2018, 127 proposals were actively deliberated, andinvestments including mergers and acquisitions.

of these proposals, roughly 60% were made by Directors and Audit &54

Corporate governance to go higher—Creating
opportunities and human resources to pursue
challenges

We are also focusing on the development of management-level

Supervisory Board Members, about 30% by Executive Officers, andhuman resources. Currently, about 80% of persons in management

some 10% by other managers. Opinions were discussed on more thanpositions have experience across multiple business fields, roughly 90%

Yamaha Motor Co., Ltd.

Integrated Report 2018

Hiroyuki Yanagi
Chairman and Representative Director

Yamaha Motor Co., Ltd.

Integrated Report 201855

Dialogue between Outside Directors

Corporate governance to support Yamaha Motor’ssustainable growth
We asked Outside Directors Takehiro Kamigama and Genichi Tamatsuka for their candid opinions andaspirations regarding Yamaha Motor’s Long-Term Vision, initiatives to address social issues, effectivenessof the Board of Directors, and issues for sustainable growth, as well as the roles they hope to fulfill.

The role of Yamaha Motor’s Outside Directors
Kamigama: I have extensive experience in technology and manufac-

Tamatsuka: Manufacturing is often characterized as the output ofturing with a Monozukuri company, including 10 years as president

products, but given my background in fields like apparel manufacturing

and 18 years of overseas postings, and I consider it my role to provide

and retailing, and convenience stores, which are close to consumers, I

advice to management based on that experience. Monozukuri involves

look for solutions that originate from a market perspective. I have also

work that cannot be done if one is not interested or does not enjoy it. I

been involved with numerous startup companies, and I hope to be

feel that Yamaha Motor is a company with a high degree of awarenessable to provide advice from a startup or venture perspective that willof Monozukuri, distilled by superior engineers who pursue perfor-

spur innovation at Yamaha Motor.

mance and functionality.

Regarding the Long-Term Vision for 2030
Kamigama: When the Long-Term Vision was first explained to us, thesegment, or how a business should be organized. Yamaha Motor has

Outside Directors offered a variety of opinions. My advice was tomany strengths, including manufacturing expertise, quality control,

include specifics by addressing up-front the shift to electric vehicles

and brand value. Because developments like electric vehicles andand vehicle sharing, and by incorporating artificial intelligence (AI) as

vehicle sharing are changes we have not seen before, we need to looka key term.

closely at how market expectations change, focus investment in

Tamatsuka: Both Mr. Kamigama and I are managers, so we are notpriority areas, and create products that markets will value, whileused to abstract discussion. We are more comfortable talking abouttransforming Yamaha Motor itself with a sense of urgency.

how a market is changing, providing Kando to a certain customer

Regarding the four social issues Yamaha Motor has decided to address:“Environment and resources,” “Transportation, education and industry,”“Innovation,” and “Work-life balance”

56

Yamaha Motor Co., Ltd.

Takehiro Kamigama

Genichi Tamatsuka

Outside Director

Outside Director

Integrated Report 2018

Kamigama: Many companies are working to address social issues,climate change through imagination and creativity. I also believe webut I believe there are still possibilities for Yamaha Motor. It is also

are expected to make commitments to the resolution of social issues

necessary to tie social issues to business strategies. Our initialwith commitments to do what by what time and what resources tomanagement strategy is to begin by using our management principles

invest, and then make those investments. We are now in an age when

as a starting point to select social issues, develop products accord-

startup companies monopolize new markets, so it is important that we

ingly, and offer them to customers around the world, and paint a

act with speed.

picture of what effects can be expected as a result.

Kamigama: Environmental, social, and governance (ESG) issues need

Tamatsuka: Companies that address social issues through their

to be addressed top-down and globally, so that they are embraced bybusinesses are gaining recognition. In the case of Yamaha Motor, we

all employees. That is a very difficult thing to do.

not only provide Kando with “Revs your Heart,” but also are able toTamatsuka: I consider it important to incorporate the perspective ofhelp address the social issues of aging society, worker shortages, andsocial issues in Monozukuri. People around the world seek Yamaha

Yamaha Motor Co., Ltd.

Integrated Report 201857

Dialogue between Outside Directors

Motor’s high-performance products, but that should not be the only

Tamatsuka: I agree. Given the Company’s current situation, we arething we are able to do. It is important to think about social issues

able to distinguish between the areas where we should be investing

and a consumer perspective concretely and realistically, and to tie

and areas from which we should withdraw. I think a corporate culturethat into Monozukuri.

that emphasizes discussion and balance is wonderful, but I believe
there are more ways for leadership to be deployed other than being

The Board of Directors engages in free
and open-minded deliberations, and isorganized to ensure thorough discussion.
—Takehiro Kamigama

Evaluating the effectivenessof the Board of Directors

top-down.

Kamigama: The Board of Directors engages in free and open-minded

Tamatsuka: I believe the innovation seen in Monozukuri and opera-deliberations. In the case of Yamaha Motor, in addition to taking

tions from the top-down implementation of a platform strategy andquestions from Outside Directors, other Directors proactively express

theoretical-value-based production since the global financial crisis has

their opinions and engage in lively deliberations. Meetings of the

been fantastic. Going forward, however, unlike Monozukuri innovation

Board of Directors are designed and organized to ensure thoroughunder a top-down approach, I believe we need leadership that can

discussion, facilitated by Chairman Yanagi.

spur new innovation in areas like developing new markets and new

Tamatsuka: I am impressed by how the annual plan and items oftypes of products. I see now as the time to generate further growth

discussion for the Board of Directors are set for various purposes,

from each of the three pillars of land mobility, marine products, andincluding deliberating items to be resolved and as research forums torobotics, and to work toward the creation of a fourth pillar. As a

discuss next-generation mobility for the near future. In addition, themember of the management team, I will work to fulfill my responsibil-

Executive Personnel Committee interviews up-and-coming managers

ity to spur this new innovation.

and shares information regarding how current management evaluates

Kamigama: I believe it will be difficult to grow in robotics and vehicle

those candidates. I am impressed by this open culture that provides

sharing with our current internal resources alone. I am, therefore, very

opportunities to discuss the Company’s sustainability.

open to mergers and acquisitions. I think we should proactively pursue

Kamigama: Many boards of directors operate under tight schedules,

attractive deals, and of course, identify risks, but if mergers andwith items proposed and directors simply asked to approve them.

acquisitions are pursued after analyzing risks and recognizing the

There are cases where deliberations become tangled or complicated,risks that can be managed, I will be supportive.

but at Yamaha Motor, items are presented for approval after several

Tamatsuka: Yamaha Motor has a valued brand, a corporate culture,rounds of discussions have been held, so there are no surprises. I

superior human resources, and a global network. In a time of drastic

think this is very good. It also means that decisions of the Board ofchanges like we are seeing today, the important thing is speed, andDirectors are made quickly.

generating greater speed should come from ourselves rather than

Kamigama: It is possible to take a top-down approach, saying “Invest
more resources in this area.” That is how I did it.

from external forces. We need to do all we can toward that end. We

Issues regarding Yamaha Motor’ssustainable growth

will provide robust support to achieve this.

Leadership is needed to spur innovationin areas like developing new markets
and products.
—Genichi Tamatsuka

Kamigama: Yamaha Motor is currently pursuing a variety of initiatives,
including reevaluations of the business models for both developed andemerging markets, but going forward, speedy decisions will need tobe made regarding new initiatives.

58

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201859

Corporate Governance

History of Strengthening the Corporate Governance System
2000 2001 2007 2009

2010

2011

2012

Yamaha Motor’s Corporate Governance System and Internal Control System (As of March 28, 2019)
2013

2014

2015

2016

2017

2018

Introduction of Executive Personnel Committee (Nomination/Remuneration Committee)
Operation of Board of Directors + Management Discussion meeting
Establishment of Corporate Governance Guidelines
Implementation of the Board evaluation
Abolition of takeover defense measures

Improvement of operating
structure

General Meeting of Shareholders

2019
Appointment/Dismissal
Seeking advice/
Making recommendations

Appointment/Dismissal

Board of Directors
11 Directors

Audit(including 4 Outside Directors)

Introduction of Executive Officer system

Executive Personnel
Committee

Appointment of Outside Directors
Delegation agreement with Executive Officers

Appointment/Dismissal
Supervision

Reporting businessexecution situations

Appointment/Dismissal

Audit & Supervisory Board
Members
Audit & Supervisory Board

Coordination

External Auditor

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

Audit

Coordination

Accounting audit

Coordination

Appointment of female Directors and Audit & Supervisory Board Members

Executive structure

Appointment of non-Japanese Executive Officers
Separation of Chairman of theBoard of Directors and Chief
Executive Officer (CEO)
Number of Directors

11

11

10

10

12

11

11

13

11

11

Number of inside Directors

7

8

7

7

9

8

8

10

7

7

Number of Outside Directors

4

3

3

3

3

3

3

4

4

4

Independent Outside
Directors

3

2

2

2

2

2

2

3

4

4

Of which, female Directors

1

1

1

0

0

0

0

0

0

1

Business Execution
Seeking advice/
Making recommendations

Management Committee

President, Chief
Executive Officer andRepresentative Director

Instruction/Report

Seeking advice/
Making recommendations

Instruction/Report

Risk Management andCompliance Committee

Integrated Auditing
DivisionInternal audit

Business sectors, Functional sectors, Corporate sectors, Subsidiaries

Integration of stock options into stock compensation plan
Overall revision of thesystem (compensation
further linked toperformance and forlong-term incentives)

Executive remuneration
systemStabilization of a profitablestructure(V-shaped recovery in results)

Medium-Term
Management Plan

Toward sustainable growth(expansion of business scale andenhancement of profitability)

A unique company that continues
to achieve dynamic milestones(management emphasizing
ROE and cash flow)

Taking on the renewed
challenge of achieving
net sales of ¥2 trillion

Specifically, we carry out strategic investments for growth in such
efforts as “Rethinking Solution” unique to Yamaha and “Transforming

implementation of the Company’s management strategies from the

Mobility,” as we implement “Advancing Robotics” as our core

viewpoint of fulfilling responsibilities to various stakeholders including

technologies. We also expand human possibilities and contribute toshareholders and investors.

the realization of better society and more fulfilling life (through ourconcept of “ART for Human Possibilities”).
Under the medium-term management target, we will take on the

Basic Corporate Governance Policies

and appropriately oversees issues and risks associated with theThis structure is designed to implement speedy and decisivedecision making, and appropriate, transparent and fair supervisionand monitoring as the Company’s corporate governance. Accordingly,

Dynamism,” and “power to build up a lifetime relationship withrenewed challenge of achieving net sales of ¥2 trillion by continuing

we formulate corporate governance guidelines and put them into

customers.”

to grow our existing businesses and developing new ones, targeting

practice in an appropriate manner.

The Company’s Management Principles
and Management Strategies

stakeholders that “the unique style of Yamaha Motor” constitutes theenhance returns to our shareholders.

Corporate Governance Guidelines

Yamaha Motor’s corporate objective is to be a “Kando* Creating“Yamaha” brand, and to make our products and services the lifelong

https://global.yamaha-motor.com/ir/governance/pdf/corporate_

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

preferred choice for stakeholders. We believe that these efforts will

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

for people all over the world. To this end, we provide unique andenable us to achieve sustainable growth and enhance our medium-high-quality products and services made available through our

to long-term corporate value.

We make ongoing efforts to gain recognition from our various

an operating income margin at the 9% level. At the same time, we will

governance_guidelines-e.pdf

Basic Views on Corporate Governancetechnology to interweave human logic with sensibility by continuously

We carry out measures to achieve sustainable growth and

To ensure the implementation of the Company’s growth strategies

striving to achieve “the unique style of Yamaha Motor’s engineering,enhancement of corporate value under our Long-Term Vision, with anfor the future, Yamaha Motor’s Board of Directors establishes anmanufacturing and marketing,” aiming at creating “new, original andeye on 2030 and the Medium-Term Management Plan that runs forenvironment that supports management’s appropriate risk-taking andinnovative ideas and messages,” “technology that creates joy andthree years from 2019.

decisive decision-making activities, and multilaterally understands

trust among customers,” “attractive designs to express Refined60

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201861

Corporate Governance System Overview
Main items
Organizational design
Number of Directors (number of Outside Directors)
Number of Audit & Supervisory Board Members(number of Outside Audit & Supervisory Board
Members)
Number of meetings of Board of Directors(Fiscal 2018)
Average attendance by all Directors and Audit &Supervisory Board Members
Average attendance by all Directors
Average attendance by Outside Directors
Average attendance by all Audit & Supervisory
Board Members
Average attendance by Outside Audit &Supervisory Board Members
Number of meetings of Audit & Supervisory Board(Fiscal 2018)
Average attendance by all Audit & Supervisory
Board Members
Average attendance by Outside Audit &Supervisory Board Members
Directors’ terms of office
Employment of Executive Officer system
Optional committees of Board of Directors
Auditor

Value
Company with Audit &Supervisory Board
11 (4)
4 (2)
13
96.5%
96.0%
94.2%
98.1%
96.2%
12
97.9% (47/48)
95.8% (23/24)

Directors and the Board of Directors

Executive Personnel Committee

activities in accordance with laws and regulations, survey the status

The Board of Directors consists of eleven (11) Directors (including four

Yamaha Motor has established an Executive Personnel Committee,

of business operations and property, exercise rights in respect of(4) Outside Directors). In principle, the Board of Directors meets

which is involved in nominations and remuneration, as a voluntary

appointing or dismissing an External Accounting Auditor and audit

monthly, and additionally from time to time as necessary. The

advisory body of the Board of Directors, to improve transparencycompensation, attend meetings of the Board of Directors and other

Chairman of the Board of Directors is not in charge of any specificand validity in appointments and dismissals of executives andimportant meetings, and provide opinions as needed. Through thesefield and not involved in business execution.

determining their remuneration, among other objectives. Matterstasks, Audit & Supervisory Board Members and the Audit &deliberated upon at the Executive Personnel Committee are reported

Supervisory Board audit the legality and appropriateness of Directors’

to the Board of Directors.

execution of duties, internal control systems, and the performance

On the basis of fiduciary responsibilities to shareholders,
Directors collect adequate information, understand relevant laws andregulations and other necessary rules, actively express opinions,

In the role related to “nominations,” the Executive Personnel

and financial position of the Company and its subsidiaries. An Audit &discuss and make decisions at Board of Directors’ meetings,

Committee deliberates upon the appointments and dismissals of theSupervisory Board Members’ Office, with a dedicated staff of two (2)Management Discussion meetings and other important meetings in

Chief Executive Officer, Directors, Audit & Supervisory Board Members

persons, has been established to assist the Audit & Supervisory Board

order to obtain sufficient knowledge on viewpoints and standpoints

and Executive Officers, as well as the selection of candidates for such

Members with their audit and supervisory operations.

of various stakeholders including shareholders, and to achievesenior management positions and their development plans, while

sustainable growth and medium- to long-term enhancement ofconfirming future management strategies and personnel requirements

Executive Officers and Management Committee, etc.

corporate value. In fiscal 2018, Management Discussion meetings

for putting them into practice, among other things.

The Company has twenty-eight (28) Executive Officers, of whom six

were held seven times, and the Executive Discussion meeting washeld once.

One year
Yes
Executive Personnel
Committee
Ernst & Young ShinNihon LLC

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

Name

Reasons for appointment

TakuyaNakataThe Company nominated Takuya Nakata as an Outside Director in the belief that he will provide the Company’s management withvaluable advice and supervision based on his wide range of insights and his ample experience in management as Director, President andRepresentative Executive Ofﬁcer of Yamaha Corporation, by which the Company aims to increase the value of the Yamaha brand commonlyused by both companies. He meets the requirements for independence stipulated by the Tokyo Stock Exchange and the “Standards for
Selecting Independent Outside Ofﬁcers,” and the Tokyo Stock Exchange has been duly notiﬁed of his designation as an Outside Ofﬁcer.

GenichiTamatsuka

The Company nominated Genichi Tamatsuka as an Outside Director in the belief that he will provide the Company’s managementwith valuable advice and supervision based on his wide range of insights and his ample experience in management, through his
experiences in various managerial positions, including as a representative director for several companies. He meets the requirements
for independence stipulated by the Tokyo Stock Exchange and the “Standards for Selecting Independent Outside Ofﬁcers,” and theTokyo Stock Exchange has been duly notiﬁed of his designation as an Outside Ofﬁcer.

Takehiro
Kamigama

The Company nominated Takehiro Kamigama as an Outside Director in the belief that he will provide the Company’s managementwith valuable advice and supervision based on his wide range of insights and his ample experience in management and technology,
through his experiences in various managerial positions, including as a representative director at a global company. He meets therequirements for independence stipulated by the Tokyo Stock Exchange and the “Standards for Selecting Independent Outside
Ofﬁcers,” and the Tokyo Stock Exchange has been duly notiﬁed of his designation as an Outside Ofﬁcer.

Outside Directors

Yuko
TashiroMasahikoIkaga

The Company nominated Masahiko Ikaga as an Outside Audit & Supervisory Board Member in the belief that he will utilize hissigniﬁcant expertise as a certiﬁed public accountant, as well as his ample knowledge and experience as a company executive andan outside ofﬁcer for a corporation, in performing his duties as one of the Company’s Audit & Supervisory Board Members (Outside).
He meets the requirements for independence stipulated by the Tokyo Stock Exchange and the “Standards for Selecting Independent
Outside Ofﬁcers,” and the Tokyo Stock Exchange has been duly notiﬁed of his designation as an Outside Ofﬁcer.

MasatakeYone

The Company nominated Masatake Yone as an Outside Audit & Supervisory Board Member in the belief that he will utilize his
extensive expertise as an attorney and his ample knowledge and experience as an outside ofﬁcer at corporations in performing his
duty as the Company’s Audit & Supervisory Board Member (Outside). He meets the requirements for independence stipulated by the
Tokyo Stock Exchange and the “Standards for Selecting Independent Outside Ofﬁcers,” and the Tokyo Stock Exchange has been duly
notiﬁed of his designation as an Outside Ofﬁcer.

Outside Audit &Supervisory Board
Members

62

The Company nominated Yuko Tashiro as an Outside Director in the belief that she will provide valuable advice and supervision
regarding the Company’s management based on her wide range of insights and her ample experience of management based on her
experiences in various managerial positions, including ﬁnancial manager and the representative director of several companies. She
meets the requirements for independence stipulated by the Tokyo Stock Exchange and the “Standards for Selecting Independent
Outside Ofﬁcers,” and the Tokyo Stock Exchange has been duly notiﬁed of her designation as an Outside Ofﬁcer.

Yamaha Motor Co., Ltd.

Integrated Report 2018

In the role related to “remuneration,” the Executive Personnel(6) serve concurrently as Directors. A Management Committee,

Committee deliberates upon and determines the evaluation standards

comprising ten (10) Executive Officers with specific posts, has beenand remuneration system for the Chief Executive Officer, Directors andestablished to deliberate on matters of business execution, speeding

Executive Officers. The Executive Personnel Committee also evaluates

up the Company’s decision-making process. In principle, thethe performance of the Company and individuals based on contributions

Management Committee meets at least monthly, and additionallyto medium- to long-term corporate growth and business performancefrom time to time as necessary. In fiscal 2018, 23 meetings of thefor the said fiscal year, in order to deliberate upon the compensation

Management Committee were held.

linked to performance for such senior management within the limits of

In addition, a Global Executive Committee has been establishedtotal remuneration resolved at the General Meeting of Shareholders.

to deliberate on important management policies and issues related to

To ensure the transparency and effectiveness of the deliberation

the Group’s management. The Global Executive Committee includes

process, which is the purpose for establishing the Executive Personnel

the Company’s President and Chief Executive Officer, all Executive

Committee, as well as to ensure the validity of matters reported to the

Officers with specific posts, and senior local managers of major Group

Board of Directors’ meetings, the majority of the members of thecompanies, and has forty-three (43) members, of whom twenty-seven

Executive Personnel Committee consists of Outside Directors, and the(27) are Japanese and sixteen (16) are non-Japanese. In principle, themeeting of the Executive Personnel Committee is held more than six

Global Executive Committee meets at least once annually, andtimes a year, in principle. The current members are as follows:

additionally from time to time as necessary. In fiscal 2018, two

Chairman: Chairman and Representative Director

Hiroyuki Yanagi

meetings of the Global Executive Committee were held.

Committee member: President and Representative Director

Yoshihiro Hidaka

Committee member: Representative Director

Katsuaki Watanabe

Independent Outside Directors andOutside Audit & Supervisory Board Members

Committee member: Outside Director (Independent)

Takuya Nakata

Committee member: Outside Director (Independent)

Genichi Tamatsuka

Yamaha Motor appoints Independent Outside Directors in accordanceCommittee member: Outside Director (Independent)

Takehiro Kamigama

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

Committee member: Outside Director (Independent)

Yuko Tashiro

are disclosed to the public.
Independent Outside Directors are expected to independently

Audit & Supervisory Board Members
and the Audit & Supervisory Boardand objectively oversee conflicts of interest between the Company’s

The Audit & Supervisory Board Members are made up of two (2)the standpoints of various stakeholders including shareholders andStanding Audit & Supervisory Board Members and two (2) Independent

investors. They are also expected to actively provide the Company

Outside Audit & Supervisory Board Members. In principle, the Audit &with advice on management policies and improvements.

management and shareholders from social perspectives and fromSupervisory Board meets monthly, and additionally from time to time

Independent Outside Directors and Outside Audit & Supervisory

as necessary. On the basis of fiduciary responsibilities to shareholders,

Board Members endeavor to understand a complete view of Yamaha

Audit & Supervisory Board Members and the Audit & Supervisory

Motor’s business operations by inspecting the minutes and reference

Board, as a body independent from the Board of Directors, request

materials of Management Committee meetings and other important

the Company and its subsidiaries to submit reports on their businessmeetings, and by visiting its worldwide development, procurement,

Yamaha Motor Co., Ltd.

Integrated Report 201863

production and sales locations and markets. They attend themade to explain the reasons for electing them as independent

remuneration level, etc., with reference to the President and(Evaluation process)Management Discussion meeting held after the Board of Directors’

outside officers of the Company.

Representative Director. As the role of Outside Directors and Audit &The effectiveness of the Board of Directors was evaluated using theSupervisory Board Members is to provide supervision and advice

following process with the Corporate Planning Division acting as thesecretariat.
• Self-Evaluation Survey by updated questionnaire, based on sevenmeetings on a regular basis, and the Executive Discussion meeting

For the full text of the “Standards for Selecting Independent

held more than once a year to openly exchange opinions on theOutside Officers,” please visit our website.

regarding management from an objective and independent

Company’s medium- to long-term management strategies andhttps://global.yamaha-motor.com/ir/governance/pdf/independent_en.pdf

perspective, they are only paid fixed basic compensation.

important management matters.

The Representative Director is to only be paid the whole-company

evaluation perspectives regarding the aims of the Board of Directors

Risk Management and Compliance Committee

performance-based bonus component of the compensation linked toSummary of “Standards for Selecting

A Risk Management and Compliance Committee, comprising ten

performance. The compensation linked to performance of other

Independent Outside Officers”(10) Executive Officers with specific posts, has been established to

Directors and Executive Officers are to be comprised of a whole-

I. Independent Outside Officers may not be:deliberate measures related to risk management and compliance. In

company performance-based bonus and an individual performance-• Analyze the Self-Evaluation and Third-Party Evaluation results, and

1. Employees or former employees of the Company

principle, the Risk Management and Compliance Committee meets atbased bonus. The total amount of the whole-company performance-

confirm the status of improvement, compared with the previous

2. Major shareholders

least twice annually, and additionally from time to time as necessary.

based bonus of Directors is to be payable up to 0.5% of the net

year’s evaluation.

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

income attributable to owners of parents of the previous consolidated

and past evaluation results.
• Conduct board investigations, analysis of the Self-Evaluation Survey
responses, and interviews implemented by a third party.

• Share the results of the evaluation of effectiveness and deliberateInternal Auditing

fiscal year. The individual performance-based bonus will be

the issues to be addressed at the Board of Directors’ meetings

The Integrated Auditing Division, with twenty-nine (29) members

determined within the scope of 0-2 times the reference amountbased on the results of the analysis.

and reporting directly to the President and Chief Executive Officer,

specified for each position, bearing in mind the extent of target

5. Individuals with some other type of vested interest in the Grouphas been established as an internal auditing sector to audit theachievement or the degree of progress, etc. for each evaluation(Evaluation results)

6. Individuals who might have a conflict of interest with our generalappropriateness of operational activities at the Company and its

indicators set in advance.

It was confirmed that the Board of Directors continued to proactively

group
4. Individuals from companies that have accepted a director from
Yamaha Motor Group

shareholders
7. In office more than 8 years
Moreover, individuals who are second-degree relatives, orShare remuneration will be provided through issuing shares withat major subsidiaries, working together with the Company’s internal

restriction on transfer once each year based on the reference amountthe medium- to long-term enhancement of corporate value andauditing sector to audit divisions and subsidiaries.

specified for each position.

sustainable growth, and the effectiveness was sufficiently assured

cohabiting relatives, of any of those mentioned above in 1 through 5
may not be officers.

hold effective discussions and implement creative initiatives to realize

subsidiaries. In addition, internal audit functions have been installed

In order to ensure the appropriateness as well as the

Remuneration System for Directors and Executive Officers

transparency and feasibility of the discussion process regarding items

Remuneration is to be comprised of basic compensation (fixed

relating to executive remuneration, determination will be made by thetoward the achievement of the Long-Term Vision, with an eye on
2030 and the Medium-Term Management Plan from 2019.
In particular, it was highly evaluated that the comments made byremuneration), compensation linked to performance, and share

Board of Directors after discussion and reporting by the Executive

Outside Directors and Audit & Supervisory Board Members were fully

be elected as independent outside officers of the Company if they,

remuneration. The proportions of basic compensation: compensation

Personnel Committee, which the Company has established voluntarily.

respected, a climate was fostered in which constructive discussionin view of their personality and insight, are believed suitable aslinked to performance: share remuneration for the President andindependent outside officers of the Company on the condition that

Representative Director is to be set at roughly 50%:30%:20% of the

The Board Evaluationand the Board of Directors were clarified and shared. It was also

the individuals meet the requirements of an outside director as

reference amount. For other Directors and Executive Officers, thePursuant to Yamaha Motor’s Corporate Governance Guidelines, theconfirmed that key issues regarding Yamaha Motor’s management

required under the Companies Act, and that a public disclosure isamounts are to be determined bearing in mind their duties andBoard of Directors analyzes and evaluates the effectiveness of roles

strategy have been appropriately discussed.

II. Individuals, despite being applicable to any of the 2 to 5 above, may

and exchange of opinions were carried out, and the roles of Directors

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

Remuneration for Directors and Audit & Supervisory Board Members(Millions of yen)Compensation linked to performanceBasiccompensation

effectiveness of the Board of Directors between the prior Self-

and a summary of the results is appropriately disclosed.

Evaluation and the Third-Party Evaluation.

(Evaluation perspectives)

Remuneration for Directors and Audit & Supervisory Board Members for fiscal 2018 is as follows:

Stockcompensation
plan

Total

address the issues highlighted based on the evaluation and

2. Relationships between the Board of Directors and senior

implement creative initiatives to further improve effectiveness bymanagement (Executive Officers)

Compensation linked toeach Director’s individual
performance

359

268

41

50

721

Of which, Outside Directors (5)

(36)

―

―

―

(36)

5. Deliberation at the meetings of the Board of Directors

Audit & Supervisory Board Members (4)

77

―

―

―

77

6. Relationships and dialogue with shareholders

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

(18)

―

―

―

(18)

437

268

41

50

799

Directors (15)Total

We will continue to push ahead with improvement measures to

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

Directors’
bonusesOfﬁcer classiﬁcation

It was confirmed that there was no significant difference in theanalysis and evaluation are carried out from the following perspectives

regularly involving a third party in the evaluation process.

3. Organizational design and composition of the Board of Directors, etc.
4. Qualifications held and knowledge of Directors and the Board of
Directors

7. Dealing with stakeholders other than shareholders

Notes: 1. The annual amount of remuneration for Directors excluding Directors’ bonuses shall be ¥540 million or less (including ¥50 million or less for Outside Directors), and the annual amount of
remuneration for Audit & Supervisory Board Members shall be ¥90 million or less.
2. The above Directors’ bonuses in Compensation linked to performance are the amount scheduled to be paid.
3. The above ﬁgures include 4 Directors who retired at the conclusion of the 83rd Ordinary General Meeting of Shareholders held in 2018.
4. In addition to the remuneration listed above, ¥46 million was paid as salaries to Directors who serve concurrently as employees.

64

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201865

Directors and Audit & Supervisory Board Members
As of April 1, 2019

Chairman and Representative Director

President, Chief Executive Officer
and Representative Director

Executive Vice President
and Representative Director

Yoshihiro Hidaka

Katsuaki Watanabe

April 1978:
Joined the Company
March 2009:
Senior Executive Officer, Chief General Manager of Manufacturing Center
November 2009: Senior Executive Officer, Senior General Manager of MC Business Section,
MC Business Operations
March 2010:
President, Chief Executive Officer and Representative Director
June 2011:
Outside Director of Yamaha Corporation
January 2012: President, Chief Executive Officer and Representative Director,
Chief General Manager of MC Business Operations
January 2015: President, Chief Executive Officer and Representative Director
January 2018: Chairman and Representative Director (to present)
March 2019:
Outside Director of AGC Inc. (to present)
March 2019:
Outside Director of Kirin Holdings Company, Limited (to present)

April 1987: Joined the Company
July 2010:
Vice President of Yamaha Motor Corporation, U.S.A.
March 2017: Senior Executive Officer and Director, Executive General Manager ofCorporate Planning & Finance Center
January 2018: President, Chief Executive Officer and Representative Director(to present)
June 2018: Outside Director of Yamaha Corporation (to present)

April 1982: Joined the Company
March 2011: Senior Executive Officer and Chief General Manager of
Manufacturing Center
April 2013: Senior Executive Officer, Executive General Manager of 1st
Business Unit, MC Business Operations and Chief General
Manager of Manufacturing Center
January 2015: Senior Executive Officer and Director, Chief General Manager of
MC Business Operations and Executive General Manager of 1st
Business Unit, MC Business Operations
March 2016: Managing Executive Officer and Director, Chief General Manager
of MC Business Operations
January 2018: Executive Vice President and Representative Director (to present)

Director
Managing Executive Officer

Director
Managing Executive Officer

Toshizumi Kato

Katsuhito Yamaji

June 1986: Joined the Company
January 2011: Director and President of Yamaha Motor Corporation, U.S.A.
March 2012: Senior Executive Officer
March 2014: Senior Executive Officer and Director
January 2016: Senior Executive Officer and Director, Chief General Manager of Vehicle &Solution Business Operations
March 2016: Managing Executive Officer and Director, Chief General Manager of Vehicle &Solution Business Operations
January 2018: Managing Executive Officer and Director (to present)

April 1982:
April 2003:
March 2015:
March 2017:

Hiroyuki Yanagi

66

Director
Senior Executive Officer

Makoto Shimamoto

Tatsumi Okawa

April 1983: Joined the Company
March 2015: Senior Executive Officer, Chief General Manager of PF Model Unit and Senior
General Manager of PF Model Development Section, PF Model Unit
January 2017: Senior Executive Officer, Chief General Manager of Technology Center and Chief
General Manager of PF Model Unit
March 2017: Senior Executive Officer and Director, Chief General Manager of Technology
Center and Chief General Manager of PF Model Unit
January 2018: Senior Executive Officer and Director, Chief General Manager of Mobility
Technology Center (to present)

April 1986: Joined the Company
January 2015: Director and President of Yamaha Motor Corporation, U.S.A.
March 2018: Senior Executive Officer and Director, Chief General Manager
of Corporate Planning & Finance Center (to present)

Integrated Report 2018

Director (Outside)

Director (Outside)

Director (Outside)

Takuya Nakata

Genichi Tamatsuka

Takehiro Kamigama

Yuko Tashiro

April 1981:

Joined Nippon Gakki Co., Ltd.
(currently Yamaha Corporation)
October 2005: General Manager of PA/DMI Division of Yamaha
Corporation
June 2006: Executive Officer of Yamaha Corporation
June 2009: Director & Executive Officer of Yamaha
Corporation
April 2010: President of Yamaha Corporation of America
June 2010: Senior Executive Officer of Yamaha Corporation
June 2013: President and Representative Director of
Yamaha Corporation
March 2014: Outside Director (to present)
June 2017: Director, President and Representative Executive
Officer of Yamaha Corporation (to present)

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

April 1981:

June 1986:
Joined KPMG LLPJuly 1995:
Partner of KPMG LLP
November 2000: Sourcing Leader of GE Corporate Japan ofGeneral Electric International Inc.
July 2003:
Chief Financial Officer of PHOENIX RESORT
CO., LTD.
April 2005:
Director, Chief Operating Officer and Chief
Financial Officer of Aon Holdings Japan, Ltd.
April 2010:
Representative Director of TS Associates, Ltd.
June 2012:
Outside Director of Accordia Golf co., Ltd.
March 2016:
Auditor (External) of McDonald’s Holdings
Company (Japan), Ltd. (to present)
June 2016:
Representative Director, President and Chief
Executive Officer of Accordia Golf co., Ltd.
January 2018: Director and Chairman of the board of
Accordia Golf co., Ltd.
April 2018:
Representative Director, Chairman of theboard and President, CEO of Accordia Golfco., Ltd. (to present)
March 2019:
Outside Director (to present)

Standing Audit & Supervisory
Board Member

Standing Audit & Supervisory
Board Member

Audit & Supervisory Board
Member (Outside)

Audit & Supervisory Board
Member (Outside)

Kenji Hironaga

Junzo Saitoh

Masahiko Ikaga

Masatake Yone

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

November 1985: Joined the Company
February 2008: General Manager of Legal & Intellectual
Property Division
April 2011:
Representative Director and President of
Yamaha Motor Espana S.A.
May 2012:
Vice President of Yamaha Motor Europe N.V.
March 2017:
Senior Executive Officer
March 2019:
Audit & Supervisory Board Member(to present)

October 1979:

April 1981:
Registered as an Attorney
March 1987: Registered as a New York State Attorney
July 1987:
Joined Mori Sogo (currently Mori Hamada & Matsumoto)January 1989: Partner Attorney of Mori Hamada & Matsumoto(to present)
April 2000:
Lecturer at Graduate School of International Corporate
Strategy, Hitotsubashi University
March 2008: Outside Director of GCA Savvian Group Corporation(currently GCA Corporation)
April 2011:
Vice President of Daini Tokyo Bar Association
June 2011: Outside Corporate Auditor of BANDAI NAMCO Games Inc.
(currently BANDAI NAMCO Entertainment Inc.) (to present)
June 2013: Audit and Supervisory Board Member (External) of
Terumo Corporation
June 2015: Independent Director (Audit/Supervisory Committee
Member) of Terumo Corporation (to present)
March 2016: Outside Director (Audit & Supervisory Committee Member)of GCA Corporation (to present)
March 2019: Outside Audit & Supervisory Board Member (to present)

June 2002:
June 2003:
June 2004:
June 2006:
June 2016:
June 2017:
March 2018:
June 2018:
June 2018:

Joined Tokyo Denki Kagaku Kogyo K.K.
(currently TDK Corporation)
Corporate Officer of TDK Corporation
Senior Vice President of TDK Corporation
Director & Executive Vice President of TDK
Corporation
President & Representative Director of TDK
Corporation
Chairman & Representative Director of TDK
Corporation
Outside Director of OMRON Corporation(to present)
Outside Director (to present)
External Director of SoftBank Corp. (to present)
Mission Executive of TDK Corporation (to present)

Joined the Company
Director of Yamaha Motor da Amazonia Ltda.
Senior Executive Officer, Chief General Manager of Manufacturing Center
Senior Executive Officer and Director, Chief General Manager of
Manufacturing Center (to present)
January 2018: Senior Executive Officer and Director
March 2019: Managing Executive Officer and Director (to present)

Director
Senior Executive Officer

Yamaha Motor Co., Ltd.

Director (Outside)

MC: Motorcycle
PF: Platform

Joined Tohmatsu Awoki & Co.
(currently Deloitte Touche Tohmatsu LLC)
Registered as a certified public accountant
Director of Tohmatsu Touche Ross Consulting
Co., Ltd. (currently ABeam Consulting Ltd.)May 1990:
Partner of Tohmatsu Awoki & Co.
April 1993:
Director of Tohmatsu Consulting Co., Ltd.
(currently Deloitte Tohmatsu Consulting LLC)
March 2000:
Representative Director and President ofTohmatsu Consulting Co., Ltd.
October 2010: Chairman and Director of Tohmatsu Consulting
Co., Ltd.
November 2013: CSO of Deloitte Touche Tohmatsu LLC
April 2016:
Established Masahiko Ikaga Certified Public
Accounting Office
May 2016:
Representative Director of PrajnaLink Co., Ltd.
(to present)
June 2016:
External Audit & Supervisory Board Member ofMorinaga Milk Industry Co., Ltd. (to present)
March 2017:
Outside Audit & Supervisory Board Member(to present)
June 2017:
Outside Director of RYOBI LIMITED (to present)
March 1988:
May 1988:

Yamaha Motor Co., Ltd.

Integrated Report 201867

Composition of Directors and Audit & Supervisory Board Members

Executive Officers

As of April 1, 2019

As of April 1, 2019

Field inchargeManufacturCorporate
ing/Management/
Technology/
Expertise
R&D

Hiroyuki
Yanagi○

Yoshihiro Hidaka

Directors

68

IT/Digital
Technology

Human
Resources/
Legal/ Risk
Labor/
Management
Personnel
Development○

Executive Officers
GlobalExperience

○

○

○

○

Senior Executive Officer

Senior Executive Officer

Kazuhiro Kuwata

Hirofumi Usui○

Chief General Manager of Mobility
Technology Center

Chief General Manager of Corporate
Planning & Finance Center

Chief General Manager of Advanced
Technology Center

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

Chief General Manager of Marine
Business Operations○

Senior Executive Officer

Senior Executive Officer

Heiji Maruyama

Satohiko Matsuyama

Chief General Manager of Powertrain Unit, Senior General Manager ofPowertrain Planning Section, Powertrain Unit, Chief General Manager incharge of Automotive Business, and Chief General Manager in charge ofMobility Planning, Mobility Technology Center

Chief General Manager of
Manufacturing Center

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Akihiro Nagaya

Minoru Morimoto

Yasuo Tanaka

Motofumi Shitara

Eric de Seynes

Chief General Manager of
Design Center

President of PT. Yamaha Indonesia
Motor Manufacturing

Chief General Manager of
CS Center

Managing Director of Yamaha Motor
India Pvt. Ltd., Managing Director ofIndia Yamaha Motor Pvt. Ltd., andManaging Director of Yamaha Motor
India Sales Pvt. Ltd.

President of Yamaha Motor
Europe N.V.

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Dyonisius Beti

Toshihiro Nozue

Satoshi Hirose

Hiroyuki Ota

Itaru Otani

COO of PT. Yamaha Indonesia
Motor Manufacturing

Senior General Manager of Marine
Engine Section, Marine Business
Operations

Deputy Chief General Manager of
Manufacturing Center and Senior
General Manager of Manufacturing
Section, Manufacturing Center

Chief General Manager of Solution
Business Operations

Chief General Manager of Human
Resources & General Affairs Center

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Takeo Noda

Toshiaki Ibata

Toyoshi Nishida

Takuya Kinoshita

Norio Yamada

Deputy Chief General Manager ofCorporate Planning & FinanceCenterSenior General Manager of Boat
Section, Marine Business Operations

Chief General Manager of PF Model
Unit

Chief General Manager of Motorcycle
Business Operations

Chief General Manager of IT Center

Executive Officer

Executive Officer

Tatsuya Masuda

Kenichi Muraki

Chief General Manager ofProcurement Center

Chief General Manager of
Manufacturing Technology Center○○

MakotoShimamoto

VehicleDevelopment/
Design

○

○

○

○

○

TakuyaNakataOutside○○

GenichiTamatsuka
Outside○○Takehiro
Kamigama
Outside○Yuko
TashiroOutside (New)

○

○

○

○

○

○

○

○

○

○

○

○

Kenji
Hironaga

○

○

Junzo
Saitoh
(New)

○

○

○

Masahiko
Ikaga
Outside

○

○

○

○

Masatake
Yone
Outside (New)

○

○

○

○

Yamaha Motor Co., Ltd.

Integrated Report 2018

Katsuhito Yamaji

Hiroaki Fujita

Katsuhito Yamaji

Planning/
Finance/IT

Managing Executive Officer

Toshizumi Kato

Senior Executive Officer

Manufacturing/Procurement○

Managing Executive Officer

Tatsumi Okawa

Solution○

Katsuaki Watanabe

Senior Executive Officer

Toshizumi
Kato○

Executive Vice President

Yoshihiro Hidaka

Makoto Shimamoto

Motorcycle/
Advanced
Technology○

President and Chief Executive Officer

Senior Executive Officer

Katsuaki
Watanabe

TatsumiOkawa

Audit &
Supervisory Board
Members

Marine/Human
Resources

Sales/
MarketingAccounting/
Finance/
M&A

CS: Customer Service
PF: Platform
IT: Information Technology

Yamaha Motor Co., Ltd.

Integrated Report 2018

69

BackgroundAn introduction to the Yamaha Motor Group’s initiatives in the areas of risk management, crisis management, and business continuity

Risk Management Structure

Risk Management Activity Cycle

Based on the Rules of Risk Management, the risk management

Risk management activities are promoted through the repetition of thestructure works toward the thorough reduction of risks on afollowing PDCA (plan, do, check, and act) cycle. The Yamaha Motor

Groupwide basis, and is led by the Risk Management and ComplianceGroup has prepared a risk management ledger of all risks that need toCommittee and its subordinate council, the Risk Management andbe covered, and works to reduce risk by appropriately managing andCompliance Promotion Meeting, which is comprised of the risk

operating the risk management ledger.

management supervising section and divisions in charge of risk
management. The Committee, chaired by the President and Chief
Executive Officer, monitors risk on a Groupwide basis while also
designating significant risks at the Group level to be tackled aspriorities and checking on activities to address risk.
Furthermore, the divisions in charge of risk management formulate
response policies and rules for the risks under their charge, promote
activities to address risk based on these response policies, etc., and• Analysis of
information frominside and outside
the Company• Risk assessment• Review of risk
management
ledger

Plan

Do• Designation ofsignificant risks at
the Group level• Formulation ofactivity policy• Preparation ofactivity plan

monitor activities at headquarters divisions and Group companies.

Act

Diagram of Risk Management Structure
President and Chief Executive Officer

Makingrecommendations

Seeking advice

Risk Management and Compliance Committee• Review of activity
results• Incorporation into
activities for the
next fiscal year

• Activities toaddress risks• Monitoring ofactivities

addition to the results of risk assessment at the Group level, significant
risks at the Group level can be comprehensively determined anddesignated based on the Group’s business strategy, legal and regulatory

Reporting of importantmatters

Management basedon rulesReporting of urgent
matters

Monitoring of activities

Consultation on
individual issues

Headquarters divisions and Group companies

Violation oflaws andregulations
concerning
product
qualityMajor
accidents
involving a
Yamahaproduct

Cybersecurity

Measureschanges inside or outside the Group, or other developments, including
information concerning the likelihood of a risk event occurring or theoperating environment.

The Yamaha Motor Group formulated the Yamaha Motor Group—Privacy
Policy in 2003 and complies with the local laws and regulations related

The main Group manufacturing
plants in Japan areconcentrated near the epicenterof the predicted Nankai TroughMegaquake, and measures
must be taken to prepare fortyphoons and other natural
disasters. Natural disasters
have, therefore, been
designated as significant risks.

The Group is promoting
measures to deal with thescenario of a Nankai TroughMegaquake as well as
measures to address
earthquakes, typhoons,and other natural disasters.

Compliance with regard to
product quality is a fundamental
and important issue for
manufacturers. Further
strengthening the structures
put in place by the Group toprevent the violation of laws
and regulations is necessary.
Violation of laws andregulations concerning productquality has, therefore, been
designated as a significant risk.

The Group is striving to gain
information regarding theestablishment of and changes
to laws and regulations
concerning product quality. In
addition, the Group is working
to create mechanisms thatreflect this information
appropriately in in-house
regulations and standards,
while pursuing improvement
activities and other efforts.

the previously formulated Group Operational Guidelines for Protecting

A major accident involving a
Yamaha product is one of thecauses of market penalties
such as large-scale recalls. The
Group must make continual
efforts to eliminate theoccurrence of such incidents.
Major accidents involving a
Yamaha product have,therefore, been designated as
significant risks.

The Group is promoting
information-gathering activities
linked to product accidents andmaking efforts to raise quality
awareness among all
employees (“I am Yamaha”
activities).

management also provide direct advice and guidance and other

The degree of reliance on andthe importance of information
systems within the Group’sbusiness activities is increasing.
Measures are needed to prevent
leaks of personal or confidential
information, information systemdamage, etc., caused bycyberattacks and computervirus infections. Cybersecurity
has, therefore, been designatedas a significant risk.

The Group is taking measurescovering both tangible andintangible aspects ofcybersecurity to increase
protection against external
attacks, to detect an attack at
an early stage, and to minimize
the damage in the event of an
attack.

to the protection of personal information in each of the countries inwhich it operates. In Japan, we responded proactively to the introductionof the My Number system in 2016 by formulating the Yamaha Motor
Group Detailed Operational Guidelines relating to the Protection of
Designated Personal Information in 2015. We have also reflected the2017 revisions to the Act on the Protection of Personal Information in
Personal Information and expanded coverage to the Group’s subsidiaries
in Japan. As for the GDPR (General Data Protection Regulation) enacted
in Europe in 2018, Yamaha Motor Europe N.V. and the Company are
working together toward global compliance.
Employees handling personal information undergo training andeducation via compliance seminars held by the risk management
supervising section and e-training. The divisions in charge of risk
measures to ensure that customer information is handled appropriately.

Business Continuity Planning
To prepare against envisioned risks that could impact the continuityof our business, Yamaha Motor has formulated “Rules of BusinessContinuity” and responds as per those Rules.
Yamaha Motor’s primary operations are concentrated in Shizuoka
Prefecture, and could be affected if a major earthquake were to occur
in the Nankai Trough. To prepare for this, we have formulated a BusinessContinuity Plan to maintain the continuity of business operations basedon the damage projected by government bodies, and are placing
foremost priority on the lives and safety of our employees.
Specifically, buildings and equipment have been made earthquakeand tsunami-resistant, emergency stockpiles of food, water, and otheressentials are maintained, emergency methods for telecommunications

Significant Risks at the Group Levelpriority are determined to be significant risks at the Group level. In

Risk Management and Compliance Promotion Meeting(Subordinate council of the Committee)

Naturaldisasters

Check

Each year, risks that need to be prevented and addressed with special

Thorough implementationof policies

Management of Information

Fiscal 2019 Significant Risks at the Group Level

Risk Management

Crisis Management Structure and Activities

are in place, and Companywide evacuation drills (including at Group
companies located nearby and night drills) and safety confirmation drills

The Yamaha Motor Group works to minimize the damage from andare carried out regularly. Also, regular initial response drills are carried

quickly resolve crisis situations as per the “Rules for Initial Responseout at the headquarters and individual business units, procedures toto an Emergency.”

restore operations have been clarified, and a system for gathering

In the event of a disaster, accident, or compliance-related incident

supply chain information is in place. These and other measuresat the Group, the division involved will report to the risk management

addressing both tangible and intangible effects are carried out

supervising section or the divisions in charge of risk management ascomprehensively and continuously.

per standards for determining the level of reporting, which are set in

Another concern is the outbreak of a potentially global pandemic.

advance. If the reported event is of a scale significant enough to warrant

To prepare for this possibility, Group companies identify issues thatthe involvement of Group management or multiple divisions and/or

could affect the continuity of their operations and formulate responsecompanies, the risk management supervising section will refer theplans. Drills simulating actions to be taken at various stages prior to thematter to a response team designated in advance, and an Emergency

full-scale outbreak of a pandemic are carried out regularly, and aCountermeasure Headquarters chaired by the President will be

structure is in place to guarantee that businesses are able to continue

established. The headquarters will work to understand the situation andoperating.

formulate a provisional response, and if necessary, will promptly reporton the matter to customers and related parties.

70

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 2018

71

The Environment

Yamaha Motor Group Environmental Plan 2050

Yamaha Motor products contribute to achieving a more sustainable society

Yamaha Motor Co., Ltd. announced the Yamaha Motor Group Environmental Plan 2050 in December 2018. This Plan aims to reduce

Mobility with extremely low CO2 emissions

CO2 emissions during product use, CO2 emissions during manufacturing and transport, and the volume of resources usage by 50% fromthe base year of 2010 by the target year of 2050. At the same time, the Plan also involves taking initiatives regarding environmental
preservation and biodiversity from a global perspective.
Action Themes

2050 Targets

Priority Actions

Reduction of CO2 emissions from use of products by users
1(t-CO2/unit sales)

Promotion of development to improve fuel efficiency

2 Development, promotion and spread of next-generation mobility

Promotion of development and the spread of products that respond toenergy diversification(Business Activities)
50% reduction of CO2 emissions throughout life cycle (on FY2010 levels)
3

Reduction of CO2 emissions generated in operationof production (t-CO2/net sales)

4 Reduction of CO2 emissions in logistics

Recycling Society

Reduction of CO2 emissions per sales at factories globally
Reduction of CO2 emissions per transportation unit

CO2
emissions 1/3

Motorcycles
0.3%
Four wheelers
17.7%

2016

32.3 billion tonsof CO2

Electricity and heat production
42%

Air, vessel, railway
6%
Manufacturing industries and construction
19%

Other energy industry own use
5%

189

62

g-CO2/passenger-kilometerg-CO2/passenger-kilometer*Figures based on the Company’s survey*Figures of motorcycles based on the Company’s survey

Sources: JAMA “2010 Passenger car JC 08 average fuel consumption,” JAMA “Comparison

Source: IEA “CO2 Emissions from Fuel Combustion 2018 Highlights”

of average speed of vehicles in cities,” EEA “Average number of passengers,” NILIM “Runningspeed and CO2 emission intensity”

Minimal environmental impact over product life

6 Reduction of waste generated in operation of production

Promotion of waste reduction

sustainable mobility option, with 1/26th the total CO2

Raw material
acquisition

Manufacturing

Use

End-of-life

Total (kg-CO2)

7 Reduction of water consumption in operation of production

Promotion of water consumption reduction activities based on water
stress scenarios

emissions over their product life and 1/40th the raw

4,200

952

20,072

25

25,260Enhancing returnable packing materials

resources required of passenger cars.

Comparison of CO2 emissions in product life cycles

Motorcycles are an environmentally friendly and

1/40

1/26

Addressing environmental preservation and biodiversity globally107

9 Activities to protect fields of product use by users (land, sea and air) Promotion of activities to preserve nature globally

Activities to contribute to solving environmental issues of eachcountry and region

Carrying out activities by all employees to contribute to a sustainable
world

970

3

Target setting approach
Yamaha Motor Group’s total CO2 reduction target

The Yamaha Motor Group Environmental Plan 2050
established targets based on the Science BasedThorough implementation of environmental compliance in businessactivities in each country and region

13 Contribution to alleviation of air pollution globally

Introduction of mobility in conformity with regulations on exhaustemissions in each country and region

14 Reduction of VOC emissions in operation of production

Promotion of VOC reduction per unit of painted area

personal mobility a factor, the Company has set a

Promotion of environmental activities in collaboration with
suppliers

Promotion of engagement with suppliers and reduction of burden
through environmental surveys

reduction goal that exceeds the targets of the

Fostering awareness of environmental preservation through16
environmental education globally

Carrying out environmental education according to environmental
issues in each country and region

Integrated Report 2018

749

*Figures based on the Company’s survey

Strengthening of compliance with environmental laws and12
regulations and management of chemical materials in products

15

111

Promotion of activities in line with our outline of biodiversity initiatives

Management

Yamaha Motor Co., Ltd.

Residential
6%

Impact of CO2 emissions per km per passenger in an urban environment

Commercial and public services
4%

Promotion of saving of limited resources by 3R development/
manufacturing

11

72

World CO2 emissions from fuel combustion by sector

5 Reduction of new resources use by recyclable resources use

10 Activities to protect ecosystems of land/ocean

Management

impact of CO2 emissions per km per passenger compared to automobiles.

(Resources)
50% reduction of “resource use” (on FY2010 levels)

8 Reduction of packing materials in logistics
Society in Harmony
with Nature

as a source of emissions and are therefore vehicles with an extremely low environmental impact.
In addition, motorcycles are the fastest and most fuel-efficient option for mobility in urban environments, and have 1/3 the(Products)
Providing environmentally friendly personal mobility
50% reduction of CO2 emissions from products by 2050 (on FY2010 levels)
Low Carbon Society

The world produced 32.3 billion tons of CO2 emissions in 2016. Of this amount, motorcycles accounted for just 0.3% of the total

Impact of CO2 emissions
1.00

Targets initiative (SBTi) to be a company actively

Automotive sector’s target in SBT’s scenario–80%

contributing to reducing CO2 emissions and avoiding
a “2°C scenario.” With the innate advantages ofautomotive sector.

CO2
emissions 1/3

0.30

–50%

0.20
0.15

Yamaha Motor Group’s target
2010

2020

2030

2040

2050

Yamaha Motor Co., Ltd.

Integrated Report 2018

73

The Community

Coexistence and mutual prosperity of the Company and local communities
The Yamaha Motor Group operates in locations around the world and our business activities help support local communities. Our
products also play a role in enriching the lives of people around the world. We recognize the importance of maintaining a sustainable

Resolving Local Community Issues

Yamaha Indonesia Motor manufacturing, together with PT. Surya

Support following earthquakes in Lombok, Indonesia

Timur Sakti Jatim (located in the city of Surabaya), our dealer for

A magnitude 7-plus earthquake struck the Indonesian island of Lombok

Lombok island, donated generators to the Indonesian army for its reliefin August 2018, and was followed by several large aftershocks.

and recovery work in the area. Lombok had continued blackouts andrelationship through which the Company and local communities can coexist and mutually prosper. To achieve this, we place great

According to the Indonesian National Board for Disaster Management,roads were covered with debris. Despite the situation, the donated ET-1

importance on maintaining and enhancing a relationship of trust through daily communication with stakeholders in those communities.

the death toll reached 515 persons, with more than 7,000 people

generators were put to a variety of uses, including clearing roads,

injured and more than 430,000 forced to evacuate.

illumination, and recharging batteries.

Important Areas of Activities
Global Issues
Key Themes

Developing Future Leaders

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

Environmental Conservation

Improving Traffic Safety

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

Showing society the value of challenge through sports
Since its founding, Yamaha Motor has blazed new trails driven by a spirit of challenge, which is engrained in our corporate culture and is
deeply embedded in the spirit of each Group employee.
Activities promoting sports are an easy-to-understand way to convey this approach to challenges, and through these activities wehope to send a message to society conveying the joy of having dreams and the value of facing challenges.

Developing Future Leaders

Activities for the Blue Sea at beaches in various locations since 2015.

Joint Monozukuri Classroom for children

A total of 2,500 people have participated over the last four years.

with Yamaha Corporation

Participants include YMVN officers, employees, and their family

To realize the theme of “Two Yamahas, One Passion,” musicalmembers who use some of their summer vacation to take part in these

instrument manufacturer Yamaha Corporation and Yamaha Motor Co.,

activities, which begin early in the morning. Participants walk alongLtd., which share the same brand, hold Monozukuri Classrooms forbeaches and collect garbage such as bottles and plastic items. These

children.

activities are effective for reminding local residents and tourists of theimportance of activities to preserve the global environment. They also

At the Yamaha
Communication Plaza,contribute to the environment and the local community through social

Yamaha Corporation held

activities, offering excitement.

RacingYamaha Motor Foundation for Sports

Racing competitions withThis foundation wasstrict rules and uniform

established as one of theconditions enable people toactivities to commemorate

ascertain their own levels

the 50th anniversary ofand provide venues for

Yamaha Motor’s founding,developing the latest

with a mission of supporting

technologies. They also

people who are pursuing

continue to provide excitement to people around the world as a symbol

their dreams in sport.

of challenge.

a “Let’s Make a Kalimba
Thumb Piano” event

Improving Traffic Safety

where children used

Partnering with vocational schools to reduce fatal traffic

leftover and scrap wood

accidents among young people

from instrument manufacturing processes to make a traditional African

The Yamaha Motor Group carries out a variety of safe riding programsmusical instrument to learn about how sound is produced, while

to reduce motorcycle accidents around the world.

Yamaha Motor held a “Motor Construction Classroom” where children

In 2018, Thai Yamaha Motor concluded a comprehensive contract

used electromagnetism to magnetize a nail, and made a motor bywith six vocational schools

wrapping nichrome wire around the core portion of a motor andin Thailand and launchedattaching it to a model car to make an electric vehicle.

activities to reduce fatal

Competitive SailingJapan Rugby Top League

YAMAHA Sailing Team ‘Revs’

Yamaha Motor Jubilo,

is aiming to place highly in

Yamaha Motor’s rugby team,major domestic andcompetes at the highest levelinternational competitions,in Japan’s top domestic

including World Sailing’s

corporate league, the Japan

World Cup Series and other

Rugby Top League.

world championships.

accidents among young

74

Environmental Conservation

people. Going forward, thisBeach Cleanup Activities for the Blue Sea

tie-up plans to expand to

Yamaha Motor Vietnam (YMVN) has been conducting the Beach Cleanup

11 locations.

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201875

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

Although sales rose at the marine products, power products, industrial machinery and robots, and other

Motorcycle sales by market

Motorcycle unit sales by market

Marine product sales by market(Billion ¥)(Thousand units)(Billion ¥)products businesses, a decline in motorcycle sales resulted in net sales being roughly flat with the previous
year, at ¥1,673.1 billion.

POINT

1,045

1,033

978

930

149

150

345

1,022

136

Others

132

120

309

5,799
5,218

587

In terms of profit, sales growth and improved profitability were unable to absorb the effects of a decline in

5,154

524

motorcycle sales in developed markets, a foreign-exchange loss, and other factors, and profit declined at629

all levels.

612

672

580

452

5,390

5,374

461

463

276
Others

Asia

668

Asia
4,819

4,307

4,286

4,558

47
16

44
19

Percentage of sales by product segment

Sales by product segment

Sales by market(Year ended December 31, 2018)(Billion ¥)(Billion ¥)Industrial machinery and robots

Other products 4.9%

4.2%

1,631
1,521

Power products

86
39
142

9.2%
Marine products 20.6%

Motorcycles

276

61.1%

73
47
169

1,503
76
47
152

1,670

1,673

Other products

82
68
152

83
70
154

Industrial
machinery androbots

345

297

139

56
47

53
46

50
41

2014

2015

2016

2017

2018

131

North America
Japan

41

181

172

(Billion ¥)Marine products
1,465

1,339

1,500

209
89
110

208
77
110

199
70
103

176
67
93

2014

2015

2016

2017

2018

North America
Japan

978

1,033

930

1,045

1,022

1,506

Overseas

(%)

1,416
1,310

1,305

Motorcycles

(%)

1,433

2015

2016

2017

2018

206

North America

Japan

27

27

28

27

28

2015

2016

2017

2018

(Billion ¥)

156
137

532

503

163

166

164

170

167

2014

2015

2016

2017

2018

Japan

Return on
assets (%)

5.6
4.8

4.6

138

136

17.6

6.6

2014

196

696

665

7.4

Japan

EuropeCash and cash equivalents at the end of
the year(Billion ¥)1,319(Year ended December 31, 2018)

10.0%

43

Asia

51

2014

575

Percentage of sales by market

17

Others19

Europe191
79
123

Net assets and % of net income toshareholders’ equity

Total assets and return on assets

1,358

39
17

41

1,673

1,503

Power products
324

309

1,670

1,631
1,521

128

72
46

41

42

4,576

Europe

136

53
46

297

39

145
116

324

108

14.6
% of net income
to shareholders’equity

16.2
12.6

12.3

Total assets

Net assets

Overseas

90.0%
2014

Operating income and operating income
marginNet income attributable to owners ofparent and ratio of net income attributable to owners of parent to net sales(Billion ¥)(Billion ¥)

(%)

(%)

149.8

140.8

101.6
6.1

Operating income
margin (%)

130.3
5.7

68.5

108.6

4.5

87.2

60.0

93.4
5.6

63.2
4.2

2017

2018

2015

2016

2017

2018

2015

2016

2017

2018

2014

2015

Cash used in investing activities

Free cash flows(Billion ¥)(Billion ¥)(Billion ¥)

2016

2017

2018

97

72

143
267

68

73

126

Net income per share—diluted
Ratio of net income
attributable toowners of parent
to net sales (%)

53
196 196172 172

Net income
per share—basic

181 181

48

47

94

21

11

59
Net income
attributable toowners of parent

2014

2015

Cash provided by operating activities

3.7
Operatingincome

2014

2014

(¥)

291
8.4

7.2

2016

Net income per share

9.0
8.0

2015

2016

2017

2018

–40
28

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

Note: Net income per share—diluted for fiscal 2017 and 2018
are not listed as there were no potential shares withdilutive effect.

76

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201877

Ten-Year Summary
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries
Years ended December 31

Millions of yen% change

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2018/2017¥1,153,642¥1,294,131¥1,276,159¥1,207,675¥1,410,472¥1,521,207¥1,631,158¥1,502,834¥1,670,090¥1,673,137

0.2 %

817,058
150,113
100,577—
85,893202,292(62,580)(68,340)(216,148)
74,096(45,285)
28,810(32,022)46,03553,701

914,211167,141
102,968
34,75875,051
295,565
51,30866,142
18,300104,531(37,632)
66,8995,296
33,93936,594

887,556
178,929
100,257
34,32675,089276,046
53,40563,49526,96033,328(46,517)(13,189)(51,927)45,04933,578

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

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

1,032,560
309,337
169,495
46,501
73,262436,525
130,329
125,23160,02328,475(68,475)(40,000)
6,845
64,06444,324930,112297,216
152,310
46,871
76,322402,660
108,594
102,073
63,153
143,163(46,541)
96,622(67,627)
61,33042,434

1,045,211
323,838
151,622
67,571
81,845
458,629
149,782
154,826
101,603
126,342(53,194)
73,147(52,830)
56,53245,457

1,022,174
344,658
153,778
69,891
82,634455,173
140,787
137,969
93,36658,858(48,274)
10,584(26,423)
55,06846,405

(2.2)
6.4
1.4
3.4
1.0
(0.8)
(6.0)
(10.9)(8.1)(53.4)(9.3)(85.5)(50.0)(2.6)
2.1¥ 987,077
249,266
399,942¥ 978,343
310,809322,443¥ 900,420
309,914274,721¥ 962,329
341,561
326,976¥1,146,591
422,792
382,929¥1,310,040
503,224
403,652¥1,305,236
531,700
410,148¥1,318,776
575,404
364,381¥1,415,845
665,232
353,490¥1,433,458
695,743356,688

1.2 %
4.6
0.9

(5.4)
(71.2)
21.5
—
188.3

4.0
7.5
28.0
23.8
117.6

4.2
9.7
31.2
12.6
97.8

1.5
2.5
32.0
44.2
106.2

3.9
12.7
33.5
12.5
99.7

5.7
16.2
35.1
12.5
87.8

8.0
12.6
37.6
16.0
83.6

7.2
12.3
40.5
14.2
68.2

9.0
17.6
44.0
12.7
56.8

8.4
14.6
45.9
8.1
54.3

For the year:
Net sales
Sales by product:
Motorcycles
Marine products
Power products
Industrial machinery and robots
Other products
Gross proﬁt
Operating income (loss)
Ordinary income (loss)
Net income (loss) attributable to owners of parent
Net cash provided by (used in) operating activities
Net cash used in investing activities
Free cash ﬂows
Net cash provided by (used in) ﬁnancing activities
Capital expenditures
Depreciation expenses
At year-end:
Total assets
Net assets
Interest-bearing debt
Ratios:Operating income margin (%)
Return on equity (%)
Equity ratio (%)
Price/earnings ratio (times)
Debt/equity ratio (%)

Yen% change

Per share amounts:
Net income (loss)—basic¥

Net income—diluted
Net assets
Cash dividends(755.92)—743.04
0.00

¥

55.50
55.50
785.61
0.00

¥

77.23
77.23
804.26
15.50

¥

21.45
—
881.8810.00¥

126.20126.201,099.84
26.00¥

196.06
196.04
1,316.58
40.00¥

171.89171.88
1,405.35
44.00¥

180.84180.83
1,529.53
60.00¥

290.93—
1,783.35
88.00¥

267.35—
1,882.64
90.00

Millions of yen,
except per share data

(8.1)%—
5.6
2.3% change

Share performance (at year-end):¥

Price per share (yen)Market capitalization

1,166
333,300¥

1,323
461,855¥974
340,018¥949
331,288¥1,577
550,585¥2,442
852,683¥2,744
958,264¥

2,574
898,931¥

3,695
1,290,413¥

2,159
753,989

Persons(41.6)%(41.6)% change

Other data (at year-end):

30,01349,994

Number of shareholders
Number of employees

31,61552,18432,25954,67732,873
53,95829,47453,38230,416
52,662

34,21453,30642,031
53,15034,56653,57951,11353,97747.9 %
0.7

Notes: • References to ﬁscal years are to 12-month periods commencing on January 1 and ending on December 31.
• With regard to amounts stated in million yen units, amounts less than ¥1 million are truncated. For amounts stated in 0.1 billion or billion yen units, amounts less than ¥0.1 billion or ¥1 billion,
respectively, are rounded off.
• From the ﬁscal year ended December 31, 2016, the presentation of sales ﬁnance-related income and expenses has changed from recording under “Selling, general and administrative expenses,” “Nonoperating income,” and “Non-operating expenses” to recording under “Net sales,” “Cost of sales,” and “Selling, general and administrative expenses.” To reﬂect this change in presentation method, theconsolidated ﬁnancial statements for the ﬁscal year ended December 31, 2016 and the ﬁscal year ended December 31, 2015 have been reclassiﬁed.
• Figures for the ﬁscal year ended December 31, 2009 are as per the previous segment classiﬁcations.

78

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201879

Management Discussion and Analysis of Operations

Overview

Sales Performance by Business Segment

During the fiscal year ended December 31, 2018 (fiscal 2018), while

Motorcycles

motors, the Company is improving production capacity throughR&D Expenses

the global economy was on a recovery trend overall, the effects of

Net sales declined ¥23.0 billion, or 2.2%, year on year, to ¥1,022.2

measures including the review of the global production layout for

The Yamaha Motor Group’s corporate objective is to be a “Kando

trade issues and currency depreciation in emerging markets werebillion, and operating income declined ¥14.3 billion, or 20.8%, year

outboard motors.

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

accompanied by a rise in U.S. interest rates that manifested in theon year, to ¥54.5 billion.

In order to flexibly respond to the growth in demand of outboard

Income and Expenses

fulfilling life for people all over the world. To this end, we provide
Power Products

unique and high-quality products and services made available throughIndonesia and Brazil, but declined in developed markets, Taiwan andNet sales increased ¥2.2 billion, or 1.4%, year on year, to ¥153.8

our technology to interweave human logic with sensibility by

improvement in corporate earnings, and other factors. The economy

Vietnam, and other countries. As a result, unit sales totaled 5.37

billion, and operating income was ¥0.2 billion, against an operating

continuously striving to achieve “the unique style of Yamaha Motor’srecovered moderately in Japan, while in Europe the economy slowed

million across the business as a whole (a year-on-year decline ofloss of ¥1.5 billion in the fiscal year ended December 31, 2017.

engineering, manufacturing and marketing,” aiming at creating “new,down. In emerging markets, economic growth continued in Vietnam0.3%), resulting in decreased sales and profits.

latter part of the year. In developed markets, economic growth wasUnit sales increased in countries such as the Philippines,

seen in the U.S. due to the increase in the number of employees,

Both sales and profits increased due to a year-on-year increase

and India, while in Brazil the economy recovered moderately. In

Profitability will be boosted by strengthening sales of high-priced

Indonesia, despite the economic expansion due to strong domestic

products in ASEAN countries and sports models in India. In developed

demand, the economy was destabilized by currency depreciation andmarkets, the Company is focusing on restructuring manufacturing andnatural disasters.

sales capabilities.

in unit sales of golf cars and multi-purpose engines as well as cost

joy and trust among customers,” “attractive designs to express

reductions for recreational off-highway vehicles (ROVs).

Refined Dynamism,” and “power to build up a lifetime relationship

The Company is working to strengthen ROV marketing capabilities
and is preparing to introduce new platform models that meet market
needs.

Against this backdrop, the Company’s consolidated net sales fororiginal and innovative ideas and messages,” “technology that createswith customers.”
We make ongoing efforts to gain recognition from our various
stakeholders that “the unique style of Yamaha Motor” constitutes thethe fiscal year under review rose ¥3.0 billion, or 0.2%, year on year,

Marine Products

to ¥1,673.1 billion, operating income declined ¥9.0 billion, or 6.0%,

Net sales rose ¥20.8 billion, or 6.4%, year on year, to ¥344.7 billion,

Industrial Machinery and Robots

preferred choice for stakeholders. We believe that these efforts willto ¥140.8 billion, ordinary income declined ¥16.9 billion, or 10.9%,

and operating income rose ¥4.2 billion, or 7.1%, to ¥63.7 billion.

Net sales rose ¥2.3 billion, or 3.4%, year on year, to ¥69.9 billion,

enable us to achieve sustainable growth and enhance our medium-to ¥138.0 billion, and net income attributable to owners of parent

Unit sales of outboard motors, personal watercraft and sportand operating income rose ¥0.8 billion, or 5.4%, to ¥16.4 billion.

to long-term corporate value.

“Yamaha” brand, and to make our products and services the lifelongboats increased year on year. In addition, also with the improvement

declined ¥8.2 billion, or 8.1%, to ¥93.4 billion.

in the product mix owing to expanded sales of large models ofoutboard motors in North America, both sales and profits increased.

Favorable sales of surface mounters for in-vehicle electronics
led to an increase in net sales and operating income.
The Company will strengthen solution proposals by new products
and services that optimize plants in their entirety and increase thevalue provided to customers.

We carry out measures to achieve sustainable growth andenhancement of corporate value under our Long-Term Vision, with aneye on 2030 and the Medium-Term Management Plan that runs forthree years from 2019.
Specifically, we carry out strategic investments for growth in such
efforts as “Rethinking Solution” unique to Yamaha and “Transforming

Other Products

Mobility,” as we implement “Advancing Robotics” as our core

Factors Impacting Operating Income

Net sales rose ¥0.8 billion, or 1.0%, year on year, to ¥82.6 billion,

technologies. We also expand human possibilities and contribute to(Billion ¥)and operating income declined ¥1.4 billion, or 19.3%, to ¥5.9 billion.

the realization of better society and more fulfilling life (through our

180
OperatingincomeImpact of increased
sales

Improved profitability

+9.0

135

+13.8

Impact of cost of
raw materials–7.0

Increase in SG&A
expenses, etc.

–10.4

Increase in R&D
expenses including
investment in growthstrategies– 6.0

In terms of electrically power-assisted bicycles, although exportsof the E-kit (drive unit for electrically power-assisted bicycles) to

Impact ofexchange rate

Europe rose, unit sales of finished bicycles in Japan decreased and– 8.3

Under these circumstances, the Group’s overall R&D expenses
were ¥102.8 billion.

the product mix deteriorated, resulting in increased sales anddecreased profits.
The Company is strengthening sales of the E-kit in Europe and90+149.8concept of “ART for Human Possibilities”).

+140.845

Capital Resources and Liquidity
Assets, Liabilities and Total Net Assets

electrically power-assisted bicycles in Japan, and promoting the

Total assets as of December 31, 2018, increased ¥17.6 billion, fromdevelopment of new markets in the U.S.

December 31, 2017, to ¥1,433.5 billion. Current assets increased¥19.2 billion, as a result of factors including an increase in inventories

080

and short-term sales finance receivables. Non-current assets
2018

2017

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201881

Management Discussion and Analysis of Operations

Cash Dividends

decreased ¥1.6 billion as a result of factors including a decrease in¥11.8 billion were made mainly for replacing an aging process line,

Net cash used in investing activities during fiscal 2018 wasproperty, plant and equipment and intangible assets despite an

etc. and enhancing production capacity mainly for outboard motors.

¥48.3 billion (¥53.2 billion in net cash used in the previous fiscal

The Company considers enhancing the interests of shareholders

increase in long-term sales finance receivables.

In the power products business, investments of ¥9.1 billion wereyear), primarily reflecting ¥54.0 billion used for purchase of property,

an important management issue, and endeavors to enhance

Total liabilities decreased ¥12.9 billion, to ¥737.7 billion, mainly

made mainly for new products of recreational off-highway vehicles

plant and equipment and intangible assets (¥64.4 billion).

corporate value.

from a decrease in electronically recorded obligations – operating and(ROVs) and production facilities of new golf car products. In thenotes and accounts payable – trade.

Net cash used in financing activities during fiscal 2018 was

In regard to dividends, the Company seeks to “create a stableindustrial machinery and robots business, investments of ¥1.0 billion¥26.4 billion (¥52.8 billion in net cash used in the previous fiscal

financial foundation, and increase new growth investment and stock

Total net assets increased ¥30.5 billion, to ¥695.7 billion, whichwere made mainly for research and development of new industrial

year), primarily reflecting cash dividends paid and the repayment ofdividends,” and sets a benchmark for its dividend payout ratio as 30%

included the recording of ¥93.4 billion of net income attributable tomachinery products. In the other products business, investments ofloans payable.

of net income attributable to owners of parent.

owners of parent and ¥32.8 billion of cash dividends paid. As a result,¥3.9 billion were made mainly for research and development of

the shareholders’ equity ratio as of December 31, 2018 was 45.9%(an increase of 1.9 percentage points from the end of the previous

As a result of the activities discussed above, free cash flow for

The Company has a basic policy of paying an interim dividend

automobile engines and electrically power-assisted bicycles as wellfiscal 2018 was a positive ¥10.6 billion (a positive ¥73.1 billion forand a year-end dividend. The decision-making bodies for dividends

as production facilities of industrial multirotors.

the previous fiscal year), and interest-bearing debt at the end of theare the Board of Directors for interim dividends and the Generalfiscal year was ¥356.7 billion (an increase of ¥3.2 billion from theMeeting of Shareholders for year-end dividends. In addition, thefiscal year). The net debt-equity ratio was 0.3 times, compared with
0.3 times at the end of the previous fiscal year.

Cash Flows

end of the previous fiscal year) and cash and cash equivalents totaled

Company’s Articles of Incorporation provides that the record date forNote 1: Equity ratio: (Shareholders’ equity + Accumulated other comprehensive income)/
Total assets x 100 (%)

Net cash provided by operating activities during fiscal 2018 was¥138.2 billion (a decrease of ¥17.5 billion from the end of thethe interim dividend shall be June 30, and December 31 for the¥58.9 billion (¥126.3 billion in net cash provided in the previous fiscal

previous fiscal year). Interest-bearing debt includes ¥262.8 billion

year-end dividend.

year). This mainly reflected cash provided from ¥136.9 billion inin borrowings for sales finance (an increase of ¥14.1 billion).

Capital Expenditures

income before income taxes (¥152.3 billion), ¥46.4 billion in

The Group made investments of ¥55.1 billion in total during
fiscal 2018.
In the motorcycle business, investments of ¥29.2 billion weremade mainly for new products in Japan and overseas, maintenanceand repairs of production facilities, and enhancement of production
capacity in India. In the marine products business, investments of

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

(%)

91

95

99

6.3
5.6

5.9

depreciation (¥45.5 billion), and other factors, against cash used for

Demand for Funds

a combined increase in inventories of ¥36.6 billion (an increase of

The Group’s fund requirements are primarily to cover the cost of¥11.2 billion), an increase in notes and accounts receivable – tradeprocuring materials and parts used in product manufacturing andand sales finance receivables of ¥35.0 billion (an increase of ¥50.3

costs incurred in the manufacturing process, as well as purchasing

billion), a decrease of ¥8.3 billion in notes and accounts payable –costs for products and merchandise, SG&A expenses, working capitaltrade (an increase of ¥10.4 billion), and other factors.

and capital expenditures.

this gave a total dividend for the year of ¥90 per share.

Net assets per share and equity ratio Note 1(Billion ¥)

(¥)

（%）

1,783

103

6.1

share for fiscal 2018. Added to the interim dividend (¥45 per share),Capital expenditures and depreciation

66

64

57

55
Capital expenditures% of R&D
expenses to net
sales

44
38

Total asset turnover

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

(%)

1,883
404

410

1,530

61

84
5.6

The Company decided to pay a year-end dividend of ¥45 per

42

45

1,317

46
35.1

364

1,405

37.6

40.5

44.0

45.9

1.2

1.2

1.2

353

357

1.2

1.1

Equity ratio
(%)

87.8

Interestbearing debt

83.6
68.2
56.8

R&D expenses

2014

82

2015

2016

Yamaha Motor Co., Ltd.

2017

2018

Integrated Report 2018

Depreciation

2014

2015

2016

2017

2018

54.3

Net assets per
share

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

2014

2015

2016

Yamaha Motor Co., Ltd.

2017

Debt/equity ratio
(%)

2018

Integrated Report 201883

Management Discussion and Analysis of Operations

Organization
Yamaha Motor Co., Ltd., as of April 1, 2019

Fund Procurement Conditions

Forecast for Fiscal 2019

Group companies acquire short-term loans payable denominated in

In the fiscal year ending December 31, 2019, the Company expects

local currencies to use as working capital. Meanwhile, funds for plantthat the business environment will remain uncertain due to factors

Board of Directors

and equipment investment come primarily from internal reserves,

including the economic slowdown in Europe and trade issues between

Chairman

including paid-in capital and retained earnings.

the U.S. and China. Considering market conditions and demand

President & CEO*The annual amounts of interest-bearing debt to be repaid are as

General Meeting of Shareholders
Audit & Supervisory Board

Audit & Supervisory
Board Members’ Ofﬁce

Human Resources Division
Global Human Resources Development Division
General Affairs Division
Risk Management & Compliance Division
Legal & Intellectual Property Division
Government & Industrial Affairs Division

Management Committee
Risk Management andCompliance Committee

trends, the Company plans to maintain stable growth and profit infollows:

Integrated Auditing Division
Human Resources & General Affairs Center

Corporate Planning & Finance Center
Corporate Planning Division
Finance & Accounting Division
Business Management Division
Business Process Innovation DivisionCorporate Communication Division
Financial Service Development Divisionexisting businesses and proceed with developing new businesses.
(Billion ¥)Total

1 year or 1 to 2
less
years

2 to 3years

3 to 4years

4 to 5years

More than 5
years

The consolidated financial results forecast is as follows:(Billion ¥)1,700.0 (+26.9, 1.6%)

Net sales
Short-term loans 163.0
payable

163.0

—

—

—

—

—

Long-term loans 193.7
payable

124.3

33.1

25.7

10.2

0.4

—

Operating income

133.0 (–7.8, 5.5%)

Ordinary income

135.0 (–3.0, 2.2%)

Net income attributable to owners of parent

85.0 (–8.4, 9.0%)

IT* Center
Digital Strategy Division
Process & IT Division
Design Center
Mobility Technology Center
NPM* Business Section
EM* Development Section
Motor Sports Section
Digital Development Section

Note 3: The figures in parentheses indicate amount and percentage changes from the fiscal
year ended December 31, 2018.

Note 2: Long-term loans payable includes current portion of long-term loans payable.

Share Performance

Advanced Technology Center

The forecast is based on the assumption that the exchange rates

Price per share decreased from ¥3,695 at December 31, 2017, toare ¥105 against the U.S. dollar (an appreciation of ¥5 from the¥2,159 at December 31, 2018. The number of shares outstanding,previous fiscal year) and ¥120 against the euro (an appreciation of

excluding treasury stock, decreased from 349,232,466 shares at¥10 from the previous fiscal year).

New Venture Business Development Section
Research & Development Section
Manufacturing Center
Manufacturing Planning Section
Manufacturing Section
Manufacturing Engineering Section
Manufacturing Technology Center
Procurement Center

December 31, 2017, to 349,230,730 shares at December 31, 2018.

Strategy Planning Section
Procurement Section

As a result, the market capitalization of the Company decreased fromPowertrain Unit

¥1,290.4 billion at December 31, 2017, to ¥754.0 billion atPowertrain Planning Section
Powertrain Development Section

December 31, 2018.

PF* Model Unit
Engineering Promotion Section
Electronics Technology Section
PF Model Development Section
CS* Center

Market capitalization(Billion ¥)Cash dividends per share andpayout ratio

Price/earnings ratio(¥)(Times)

(%)

88.00

Total Strategy Section
Quality Assurance Section

16.0
33.2

853

Motorcycle Business Operations
1st Business Unit
2nd Business Unit

90.00

1,290

958

Customer Quality Section
After Sales Section
Spare Parts Section

899
754

25.6

33.7
30.2

14.2
Payout ratio (%)

60.00

20.4
40.00

Marine Business Operations

12.7

12.5

8.1

44.00
Cash dividends
per share*Abbreviations:
CEO: Chief Executive Officer
IT: Information Technology

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

NPM: New Personal Mobility
EM: Electric Mobility
PF: Platform
CS: Customer Service

84

Yamaha Motor Co., Ltd.

Integrated Report 2018

Planning Section
Marine Engine Section
Boat Section
Pool Business Development Section
Marketing Section
Quality Assurance Section
Automotive Business Unit
Overseas Market Development Operation Business Unit
Solution Business Operations
Robotics Business Unit
Surface Mount Technology Section
Factory Automation Section
Unmanned System Section
Smart Power Vehicle Business Unit
Yamaha Motor Powered Products Co., Ltd. (YMPC)

Yamaha Motor Co., Ltd.

Integrated Report 201885

Investor Information
As of December 31, 2018

Yamaha Motor Co., Ltd.

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

Headquarters

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

(Yen)

4,500

Date of Establishment

3,000

July 1, 1955

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

1,500

0
2014

2017

2018
(Million shares)

450

300

Authorized: 900,000,000 shares (Common stock)
Issued: 349,914,284 shares
Number of Shareholders: 51,113

150

Principal Shareholders
The Master Trust Bank of Japan, Ltd. (trust account)Yamaha Corporation
Japan Trustee Services Bank, Ltd. (trust account)
State Street Bank & Trust Company
Toyota Motor Corporation
Mitsui & Co., Ltd.
Mizuho Bank, Ltd.
Japan Trustee Services Bank, Ltd. (trust account 9)
Trust & Custody Services Bank, Ltd. (securities investment trust account)
SMBC Nikko Securities Inc.

11.21%
9.92
6.74
5.01
3.58
2.46
2.37
2.26
1.78
1.64

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

Securities ExchangeTokyo Stock Exchange, Inc.

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

AuditorErnst & Young ShinNihon LLC

Yamaha Motor Co., Ltd.

2016

Trading volume

Capital Stock

86

2015

Integrated Report 2018

0
2014

2015

2016

2017

2018

Shareholder Composition
Securities companies

Japanese individuals
and others

4.7%

8.6%
Foreign investors

26.5%

41.6%

Japanese financial institutions

18.6%
Other Japanese corporations

For further information, please contact:
Yamaha Motor Co., Ltd.
IR/SR Group, Corporate Communication Division
2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-37-0134
Facsimile: +81-538-37-4250
https://global.yamaha-motor.com/ir/
You are also invited to review the Fact Book and Financial Dataon Yamaha Motor’s website at https://global.yamaha-motor.com/

Yamaha Motor Co., Ltd.

Integrated Report 201887

YAMAHA MOTOR CO., LTD.
2500 SHINGAI, IWATA, SHIZUOKA, JAPANhttps://global.yamaha-motor.com/

Printed in Japan