Yamaha Motor Today

A History of Expanding Our Portfolio in Pursuit of Kando

Expanding the Field

Yamaha Motor Co., Ltd. (Yamaha Motor) was founded in July 1955, when the motorcycle division of Nippon Gakki Co., Ltd.
(today’s Yamaha Corporation) was spun off to form an independent company. Since then, with our powertrain and othercore competencies as a starting point, Yamaha Motor has been continuously working to create new Kando by consistently
taking on challenges in new and existing fields for more than 60 years, creating products in a multitude of different
businesses and categories. And our mission to enrich peoples’ lives into the future remains our guiding beacon today.

Founded in 1955 Japanese Economic Miracle Equal Concern for Kando and the Environment 

To the Future 

Entry into the Motorcycle Industry amid
Japan’s Post-War Economic Recovery

Customer-Oriented Development for
Creating Kando

Creation of User- andEco-Friendly Mobility

Uniquely Yamaha Approaches toSolve Societal Issues

Genichi Kawakami, the fourth president of Nippon Gakki and later
founding president of Yamaha Motor, decided to enter the motorcycle
business with the goal of building a foothold for growth outside therealm of musical instruments. At a time when less competitive motorcycle companies were already failing, the company made a bold lateentry into the market, generating a great deal of attention with its first
product’s innovative coloring and design, light weight and maneuverability, and easy engine starts—an incredibly important factor at thetime. Furthermore, motorcycle races were where makers could demonstrate their product’s superiority, and Yamaha’s early entry and consistently strong results created a reputation for technological excellence
that spread domestically and internationally.

During Japan’s economic miracle, Yamaha Motor entered the marine
recreation field believing that enjoying daily life would eventually leadto more fulfilling lifestyles. Our first target was commercial demand,
specifically with fishing boats where the signs of motorization could beseen. The Company succeeded in expanding its business domain toinclude marine products by adapting the engine technologies it developed with motorcycles to develop outboard motors and fiber-reinforced
plastic (FRP) fishing boats, incorporating market input in the process.
Meanwhile, in our core business of motorcycles, we did not restrict
ourselves to preconceived norms and ideas, and analyzed customer
needs with a market-oriented approach to release the Passol. This
step-through scooter was well-suited to women riders and createdthe new “soft bike” market segment in Japan.

In 1993, Yamaha Motor launched the PAS as the world’s first electrically power-assisted bicycle, a new form of mobility intended to beclosely linked to user lifestyles. Promoted as a user- and eco-friendly
personal commuter model placing top priority on performance in tune
with human sensibilities, the PAS gained popularity as a form of mobility “assisting” the various lifestyles people lead. Later, we applied theelectronic control technologies developed through PAS bicycles andthe latest human-interface technologies to successfully practicalize an
eco-friendly electric commuter vehicle that produced no emissions andlittle noise. These technologies are contributing to today’s development work on new forms of mobility.

Yamaha Motor is working to evolve and diversify its existing product lines
by combining its core competencies with new cutting-edge technologies.
At the same time, the Company is adapting its expertise in unmanned
technologies and systems, such as industrial robots and industrial-use
unmanned helicopters, to contribute to laborsaving efforts and raising
efficiency in a variety of fields, from industry and farming to forestry. Inaddition, as part of its efforts to achieve carbon neutrality, Yamaha Motoris bringing electric motorcycles and scooters such as the NEO’s and theHARMO next-generation electric boat control system to the market while
also moving forward with the development of internal combustion
engines that do not emit CO2. Through efforts such as electrification
among our wide-ranging product lineup, we are expanding the possibilities of mobility for a better society and a more fulfilling life.

Adapting Core Competencies toExpand Our Product Portfolio

2020
Unmannedindustrial-usehelicopter
FAZER R G2

1987
Industrial-use unmanned helicopter
R50 (L09)
2017
Cell picking &imaging system
CELL HANDLER™

Powertrains

1974
FRP pools created using
boat manufacturing technologies

ElectronicControl

2022
Electricscooter withremovable batteryNEO’s

1960
Our first outboard motorP-7
1955
The first Yamaha motorcycle
YA-1

Chassisand Hulls

1977“Soft bike” allowing women toride with peace of mind
PassolCorporate Mission

Kando CreatingCompany

Yamaha Motor Co., Ltd. Integrated Report 2022

2002
Electric commuter vehicle
Passol2022
Electricallypower-assisted
mountain bike
Wabash RT

1995
Wheelchair
electric power unit
JW-I

Manufacturing
1960
Our first catamaran FRP boat
CAT-211968
Our first snowmobile
SL350

101993
World’s first electrically power-assisted bicycle
PAS

1978
Golf car
G1-A

2020
Next-generation electric boat
control system
HARMO

Yamaha Motor Co., Ltd. Integrated Report 2022

11Yamaha Motor Today

A Globe-Spanning Business Featuring a Diverse Range of Products

The powertrain, chassis and hull, electronic control, and manufacturing technologies and expertise we have accumulated since our founding serve as our core competencies, and as we continue refining them, we offer a myriad of products around the world that create Kando by leveraging our technologies and keen sensibilities based on the Company’s
unique Jin-Ki Kanno development ideal.
Fiscal 2021 Consolidated
Financial Results
Net sales¥

1,812.5billion

Operating income¥

182.3

Marine Products

Land Mobilitybillion

Net sales (% of total)

1,179.7¥

Net sales (% of total)billion (65.1%)

Operating income (% of total)

68.7

Distribution of
net sales andoperating income
by businesssegment¥billion (37.7%)¥391.1billion (21.6%)

Operating income (% of total)

76.8

¥

billion (42.1%)

Operating income (% of total)

19.1¥billion (4.0%)

Operating income (% of total)billion (10.5%)¥42

million (0%)

Main products Sales finance and leases related to the Company’sproducts

Golf cars, generators, multipurpose engines, andsnow blowers

51,243Ratio of overseas production 41.0%

90%equipment, industrial robots, and industrial-use
unmanned helicopters

Number of Consolidated Subsidiaries: 132
Total number of bases(primary roles) Development

19Manufacturing

24Sales

Yamaha Motor Co., Ltd. Integrated Report 2022

billion (9.7%)¥

Main services Over

1217.6¥

72.7

billion (2.7%)

Surface mounters, semiconductor manufacturing

Asia(excl. Japan)

23.7%

Operating income (% of total)

48.6

¥

Main products 

12.0%North America

billion (6.6%)

Net sales (% of total)

Outboard motors (marine engines), personal watercraft, boats, FRP pools, fishing boats, and utility boats

Number of employees(consolidated) 14.6%

120.3

¥

Net sales (% of total)

Main products 8.7%

EuropeNet sales (% of total)

Other Products

Motorcycles, Leaning Multi-Wheel (LMW) models,intermediate parts for products, knockdown parts foroverseas production, all-terrain vehicles (ATVs),
recreational off-highway vehicles (ROVs), snowmobiles,
electrically power-assisted bicycles, electric wheelchairs,
automobile engines, and automobile components

JapanNet sales by region¥1,812.5 billion

Financial Services

Main products Global Organization Creating Value as a TeamOthers

Robotics

46North America
Europe10Japan

22

23

Asia (excl. Japan)

50
Oceania

9Central andSouth America

18

Yamaha Motor Co., Ltd. Integrated Report 2022

13

Yamaha Motor Today

Maximizing Our Environmental and Social Value
Outcomes to Achieve
Yamaha Motor’s business model is to provide unique, high-quality products and services that accurately reflect societal andcustomer needs by applying its Spirit of Challenge, which has been handed down as the Company’s DNA, and the technologies it has created and refined to date. The very reason for the Company’s existence as a Kando Creating Company is to givesociety and customers experiences of Kando unique to Yamaha Motor that intertwine technologies and human sensitivities.
By expanding human possibilities and through our products and services that create Kando, we are aiming toachieve sustainable growth as well as create a better society and more fulfilling lives.

Important Societal Issues

Foundations for Creating Competitiveness• Consumer-oriented development ideal• Global R&D structure• Global sales network• Strong teamwork of dealerships, regional sales bases, andYamaha Motor• Marketing methods that connect withcustomers over a lifetime• Original and innovative ability toconceive new technologies• Creative, advanced technologicalcapabilities and core technologicalcompetencies• Proprietary product development
methods

Environmental Value
Reduction of greenhouse gas
emissions from ourbusiness activities• Offer eco-friendly means ofpersonal transportation

Land Mobility

Environment andresources

R&D

Innovation

P.58

P.50

Create new value for people’s time,
mobility, and self-expression

Motorcycles

Electricallypower-assisted
bicycles

ATVs / ROVs

P.30

Three Focus Areas

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

BrandingTies

P.46

Boats

Outboard motors

Pools

Excitement

Robotics

P.32

Promote automation and laborsavings
to free up valuable time for people

Social Value

Leverage and evolve intelligent
technologies and robotics as a foundation

Provision of safe anddependable mobility
and lifestyles

Rethinking
Solution

Propose uniquely Yamaha solutions

Transportation andindustry
EmotionProcurement /Manufacturing andProduction

P.46
P.34

• Design that contributes to management
and branding• Design capabilities that express
individuality

Industrial
machinery androbots

Confidence

DesignHuman capitalmanagement

Advancing

Robotics

Corporate Mission

Kando
CreatingCompany• Lower electric power consumption in production and otheractivities

P.28

Marine Products
Sales• Reduce greenhouse gas
emissions

Growth Strategy Directions

Business Operations

Financial Services• Global production system and inter-regional
product distribution system• Leading manufacturing technologies andstrong on-site capabilities

Utilizing Our Intellectual Properties• Maintain and improve safety
and reliability through highquality products and services• Ensure safe water and resourcesTransformingMobility

Promote innovations in mobility

Financial services

Other Products
Become a close part of customers’ lives andoffer unique technology to support them

P.52
Golf cars

Human Resources Development Strategy

P.33

Offer services that strengthen relationships
with customers and dealerships

P.54, 56

• Abundant plant management
expertise and technology

Industrial-use
unmannedhelicopters and drones• Offer mobility services that aresafe and comfortable for all

Generators

Economic Value
Redistribution of economic
added value to stakeholders• Strengthen earnings structure
and maintain stable financialfoundations• Provide employee remuneration

P.42• Pay stable dividends to investors• Talented
global personnel who embody the brand•D
 iverse specialist skills and management ability•D iversity in terms of specialization, nationality and culture, and gender

14

Yamaha Motor Co., Ltd. Integrated Report 2022

Yamaha Motor Co., Ltd. Integrated Report 2022

15

Yamaha Motor Today

Financial and Non-Financial Highlights

Net Sales

Operating Income / Operating Income Margin(¥ billion)(¥ billion)

2,000200

1,812.5

1,500
1,654.2

1,000500

158.302017Japan201820192020(%)

182.3
10.1

155.6

160
120

8.6

1260

9100

660

640

650

330

320

300002018

2019

2020

2017

2021

2018

2019

2020

2019

2020

2021

CO2 Emissions (Scope 1 and Scope 2)*

Water Intake(1,000 t-CO2)(Million m3)(%)

1,832.9

1,600

800

15
129.0

6400

30
Total assets

2018

2019

2020

6.0

94.5

400

63.0

6200

3

1.5

3006000
2017

12501

9800

2021

Net income attributable to owners of parent
Ratio of net income attributable to owners of parent to net sales

02017

2021

2018

2019

2020

2021

12020172018201920202021

ROA

Total assets increased ¥192.0 billion year on year to ¥1,832.9 billion due to factors suchas an increase in inventories caused by production delays, logistics delays resulting froma shortage of parts, and an increase in long-term sales finance receivables in association
with an increase in retail financing.

As a Groupwide goal, the Company has set medium- to long-term targets for reducing the CO2 emissions generated over product life cycles and is also working to reduce
the greenhouse gas emissions produced in manufacturing.
* Scope 1 and Scope 2: Direct and indirect emissions produced by the Company’soperations

The Company will continue to measure its global use of water resources and reduce
the amount of water intake by promoting the reuse of coolant water and watercollection (rainwater and other sources) at its factories.

Return on Equity (ROE)Net Income per Share (Basic)

Number of Group Companies Joining Unified Certification Program

Brand Ranking*202014(No. of companies)(¥)

15,328
12480

15

9105

1260

360

945

6240

630

3120

3150000445.67

19.8020172018

2019

2020

2021

201720182019

2020

2021

Yamaha Motor Co., Ltd. Integrated Report 2022

The increase in net income attributable to owners of parent led to a significant
year-on-year increase and net income per share (basic) rose to ¥445.67.

2015

2016

2017

2018

2019

46

2017
Japan

The recovery in business performance and improvements to operational efficiency andstability led to a substantial recovery of ROE, with a 12.3 percentage point increase
compared with the previous fiscal year-end.

94.03

Net income attributable to owners of parent rose ¥102.5 billion year on year to ¥155.6
billion and the ratio of net income attributable to owners of parent to net sales rose by
5 percentage points year on year to 8.6%.

(%)

16

2018

Total Assets / Return on Assets (ROA)

0
2017

0
2017

2021

Capital expenditures targeting sustainable growth and greater efficiency in existing
businesses rose ¥13.2 billion year on year to ¥67.0 billion.

30

2020

The Company implemented development efforts in new business areas aimed atfuture growth and for strengthening core businesses while carrying out selection andconcentration, recording ¥95.3 billion in R&D expenses.

640

2019

Operating income had a significant rise of ¥100.7 billion year on year to ¥182.3billion, in part due to the increase in net sales but also due to the curbing of fixed
costs through the implementation of remote work and other digital methods, foreignexchange impacts, and other factors working to absorb the effects of soaring logistics
costs and raw material prices.

1,20080

2018

Operating income margin

2,00091267.09(¥ billion)

(%)

80

90

Operating income(¥ billion)

1295.392017

Net Income Attributable to Owners of Parent / Ratio of Net
Income Attributable to Owners of Parent to Net Sales(¥ billion)120120Despite the impacts of lower production, labor shortages, and other factors broughton by the supply shortage of semiconductors and other parts, higher unit sales and anincrease in unit purchase prices led to a year-on-year increase of ¥341.2 billion to¥1,812.5 billion.

Capital Expenditures(¥ billion)

150

2021

Overseas

R&D Expenses

2018

2019

2020

2021

28th

* Brand value ranking of Japan-based brands carried out by Interbrand Japan (BestJapan Brands 2022)

Overseas

The Company has been working toward receiving ISO 14001 certification for environmental management systems at Group companies in Japan and overseas since fiscal
2012. A total of 46 companies (12 in Japan and 34 overseas) have joined the unified
certification program, mainly manufacturing companies in Asia (including Japan),
Europe, the United States, and South America.

The Yamaha brand, calculated by combining the brand value of both Yamaha Motorand Yamaha Corporation, was valued at US$1,801 million (compared with US$1,480
million in fiscal 2021 and US$1,369 million in fiscal 2020).

Yamaha Motor Co., Ltd. Integrated Report 202217