CreatingExcitement

Ensuring
Confidence

Challenging forInnovation

Creating Kando

What we value most in our efforts to create Kando
Yamaha Motor expresses the “unique style of Yamaha” with its shared values ofInnovation, Excitement, Confidence, Emotion, and Ties.
Incorporating the unique style of Yamaha into all processes and levelsof our corporate and business activities will further enhance Yamaha’s unique qualities.
We believe that doing so is the way to meet customer expectations
and the fuel to further improve our competitiveness.

Building Ties
with Customers
for Life

CaptivatingEmotional Feelings

Yamaha Motor Co., Ltd. Integrated Report 2020

1

Contents

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

Management Principles 1. Creating value that surpasses customer expectations
To continue to produce value that moves people, we must remain keenly aware of customers’
evolving needs. We must strive to find success by always surpassing customer expectations with safe,
high-quality products and services.

2. Establishing a corporate environment that fosters self-esteem
We must build a corporate culture that encourages enterprise and enhances corporate vitality. The
focus will be on nurturing the creativity and ability of our employees, with an equitable system ofevaluation and rewards.

Introduction

Corporate Governance

4 A History of Creating Kando through Technology

52 From the Chairman of the Board of Directors

6 Yamaha Motor’s Presence

54 Dialogue between Outside Directors

8 Financial and Non-Financial Highlights

58 Directors and Audit & Supervisory Board Members

Toward Sustainable Growth

61 Corporate Governance
68 Risk Management

10 From the President
18 Yamaha Motor’s Value Creation Process

Business Strategy

20 Important Societal Issues (Materiality Issues)

70 Land Mobility

24	Climate Change-Related Information Disclosure(Based on the TCFD’s Recommendations)

72 Marine Products

26 Long-Term Vision and Medium-Term 			Management Plan

76 Financial Services

28 Specific Initiatives toward Resolving
Societal Issues

74 Robotics
77 Others
Facts and Data

30 From the Director, Chief General Manager ofCorporate Planning & Finance Center
Foundations for Creating Competitiveness32 Creative Branding

78 11-Year Summary
80 Environmental and Social-related Data
81 Management Discussion andAnalysis of Operations
86 Global Group Network

34 Creative Design

3. Fulfilling social responsibilities globally

36 Research and Development

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

38 Digital Transformation

88 Corporate Information / Stock Information

40 Procurement
42 Manufacturing and Production (Monozukuri)
44 Sales (Marketing)

Action Guidelines 

46 Human Resources

Acting with Speed

48 Topics

Meeting change with swift and informed action

48 Initiatives for Improving Employee Engagement

Spirit of Challenge

50 Yamaha Motor’s Sporting Activities

Courage to set higher goals without fear of failure

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

Stakeholders

Corporate Philosophy

Customers
Corporate Mission

Kando*

Communication

Creating Company

Shareholders andInvestors

Employees
ActionGuidelines

ManagementPrinciples

Business Partners

The Community
Basic Policies ofInternal Control2

Yamaha Motor Co., Ltd. Integrated Report 2020

Business Activity

Basic Policies ofCSR

The Environment

Editorial Policy
In addition to the Long-Term Vision and the strategies
to achieve it contained in the current Medium-Term
Management Plan (both formulated in December2018), Integrated Report 2020 contains a wealth of
information about how we will grow going forward
through environmental, social, and governance (ESG)
initiatives. This report is edited to give shareholders,investors, and other stakeholders a multifacetedunderstanding of Yamaha Motor’s sustainable growth.
The report was edited referencing the International
Integrated Reporting Council (IIRC)’s International
Integrated Reporting Framework (released in December2013) and the Ministry of Economy, Trade and Industry(METI)’s Guidance for Collaborative Value Creation.
Financial, sustainability-related, product, and otherinformation not contained in this report is available on
Yamaha Motor’s official website.

Structure for Information Disclosure
Financial Information

Non-Financial Information

Integrated Report 2020
• Information for Investors
https://global.yamaha-motor.com/ir/• Corporate Website
https://global.yamaha-motor.com/• Securities Report (in Japanese only)• Technical Review
https://global.yamaha-motor.com/about/technical_review/• Fact Book

• Sustainability-Related Information
https://global.yamaha-motor.com/about/csr/• Corporate Governance Report* The 2020 in the title refers to the year this report
was published.

Notice Regarding Forward-Looking Statements
The statements in this report, except for historical facts, are forward-looking statements about the future performance of the Company and its Group companies. These are based on management’s assumptions and beliefs in light of the information currently available, and involve risks and uncertainties. Pleasebe 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 economic conditions in Yamaha Motor’s major markets, changing consumer
preferences, and currency exchange rate fluctuations.

Yamaha Motor Co., Ltd. Integrated Report 20203Introduction

A History of Creating Kando through Technology

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 the consumer-­oriented
development approach of its Nippon Gakki roots as a starting point, Yamaha Motor has continuously been working tocreate new value through its motorcycles and other products in a variety of fields for over 60 years.

Taking on the motorcycle
business amid Japan’s
post-war economic recovery

Expanding business fields andworking to popularize
recreational culture

Genichi Kawakami, the fourth president of
Nippon Gakki Co., Ltd. and later the founderof Yamaha Motor, decided to enter themotorcycle market as a stepping-stone tofuture business development outside therealm of musical instruments. The compact
chassis, high quality, and striking design ofthe first Yamaha motorcycle, the YA-1,
attracted a great deal of market attention.

Adapting the engine technology garneredthrough the motorcycle business, we turned
our hand to building outboard motors, fiberreinforced plastic (FRP) fishing boats, snowmobiles, and other products, thereby
expanding our range of business. Moreover,
we engaged in activities to popularize a cultureof leisure and recreation and to grow our fanbase. Other initiatives included work to raiseawareness of safety in motorsports.

1955

1960

Creating demand andbuilding a businessplatform

Helping resolve societal issues
with products combining
technologies

Not restricting ourselves to preconceived ideas,
we analyzed customer needs with a marketoriented approach and later released thePassol, a model well-suited to women riders,
and thus created a new “soft bike” market
segment. We also leveraged the technologicaldevelopment know-how and expertise
acquired in creating our own robots while
diversifying our production model lineup tobegin development and practical implementation of Yamaha-brand industrial robots.

1970

To alleviate the burdens accompanying strenuous manual labor tasks, such as spraying
agrichemicals by hand in the agricultural sector,
we began developing industrial-use unmanned
helicopters utilizing our small-engine, FRP, andelectronic control technologies. Today, thesehelicopters not only contribute to labor savingsand greater efficiency in agriculture but arealso utilized by research institutions and otherbodies for academic studies and research,disaster response, surveys and observation,and more.

1990

Working for bothKando and theenvironment

Diverse Monozukuri
contributing to a moresustainable society

Applying the electronic control technologies
developed with the PAS electrically powerassisted bicycle launched in 1993—the firstmass-produced vehicle of its kind in the world—
and the latest in human-interface technology,
we successfully practicalized an eco-friendly
electric commuter vehicle that produced noemissions and little noise. The research on fuelcell vehicles (FCVs) we were also conducting at
the time directly contributed to our current
development of new forms of mobility.

2000

2010
2010
Small-scale water
purification system
Yamaha Clean Water
Supply System

2002
Electric commuter vehicle
Passol1960
Our first catamaran
FRP boat
CAT-211960
Our first
outboard motor
P-7

1955
The first Yamaha motorcycle
YA-1

Refining our core technologicalcompetencies and developing
various products in step withchanges in society

1987
Industrial-use
unmanned helicopter
R50 (L09)

1977“Soft bike” allowing
women to ride with peace of mind
Passol1967Joint project withToyota Motor Co., Ltd.
Toyota 2000GT

4Yamaha Motor Co., Ltd. Integrated Report 2020

1995
Wheelchair
electric power unit
JW-I

2014
Our first LMW*Tricity

1993
Japan’s first electrically power-assisted bicycle
PAS
2018Sport LMW*
NIKEN
1978
Our first 6-horsepower snow
blower, suited to Japanese snow
YT665

1968
Our first snowmobile
SL350

We are pairing our core technological competencies with advanced technologies to further
evolve and diversify our motorcycle and marine
product lineups, but we are also moving
forward with our Yamaha Clean Water Supply
System project for emerging markets, an
initiative first started in the 1990s. By making
the system operable by the local residents
themselves, the resulting stable supply of cleanwater helps resolve social issues they face.

1975
Our first golf car
YG-2921987
Surface mounter for printed circuit boards
YM4600S

2017
Cell picking &imaging system
CELL HANDLER™

* Leaning Multi-Wheel: Yamaha Motor’s designation for vehicles with three or more wheels that lean like a motorcycle through turns

Yamaha Motor Co., Ltd. Integrated Report 20205Introduction

Yamaha Motor’s PresenceMulti-Axial Business Approach Applying Our Core Technological Competencies
Yamaha Motor conducts its operations in the Land Mobility, Marine Products, Robotics, Financial Services, and Others
business segments. Overseas sales currently account for approximately 90% of the Company’s consolidated net sales.

The powertrain, chassis and hull, electronic control, and manufacturing technologies that we have honed since ourfounding serve as our core technological competencies, and as we continue refining these competencies we offer a wide varietyof products that create Kando by leveraging our technologies and keen sensitivities.

Consolidated Financial ResultsJapan

1,664.8

Net sales¥

1,294.1 billion¥(Fiscal 2010)

115.4

Operating income¥

51.3 billion¥(Fiscal 2010)

10.2%

LMWs

Othersbillion

10.9%

EuropeDistribution ofNet Sales

Asia

Financial services

43.5%

13.0%

billionNorth America

22.4%

Snowmobiles

Industrial
machinery androbots

Electricallypower-assistedbicycles

Business Domains
As of fiscal 2019, ended December 31, 2019, the Company changed its business segments from Motorcycles, Marine Products, Power Products, andIndustrial Machinery and Robots to Land Mobility, Marine Products, Robotics, and Financial Services. Although the Land Mobility segment accounts forsome 60% of consolidated net sales, the Marine Products segment is the driver of operating income.
Distribution of Net Sales andOperating Income (Loss) by Business Segment

Segment

Main products and services

Land Mobility

Motorcycles, Leaning Multi-Wheel (LMW), all-terrain vehicles (ATVs),­recreational off-highway vehicles (ROVs), snowmobiles, and electrically­power-assisted bicycles

Personal
watercraft

Automobile
engines

ATVs / ROVs
Industrial-use
unmannedhelicopters

Electricwheelchairs

(%)
–0.5
6.2

7.0

2.5
4.56.7

Boats
Generators

20.7

Marine Products

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

Motorcycles
Pools
Snow blowers

50.6

Robotics

Surface mounters, semiconductor manufacturing equipment, industrial
robots, and industrial-use unmanned helicopters

Outboard motors(Marine engines)

66.1

Manufacturing

Financial Services

Sales finance and leases related to the Company’s products

36.2

Powertrains

Others
Net sales
Land Mobility
Robotics

6

Golf cars

Operating income (loss)

Golf cars, generators, multipurpose engines, snow blowers, automobileengines, automobile components, and electric wheelchairs

Core technologicalcompetencies

ElectronicControl

Chassis andHulls

Marine Products

Financial Services

OthersYamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 20207

Introduction

Financial and Non-Financial Highlights

Net Sales

Operating Income / Operating Income Margin

R&D Expenses

Capital Expenditures(¥ billion)(¥ billion)

(%)(¥ billion)(¥ billion)

160

24

120

2,000

80

1,495.0

6.9

40500
169.802015
Japan

115.4

120

1,500
1,000

2016

2017

2018

02019

2015

Sales grew in the Marine Products and Financial Services segments, butfell in the Land Mobility and Robotics segments (excluding the impactfrom M&As), resulting in a net sales decline of ¥8.4 billion year on year,to ¥1,664.8 billion.

90

75.7
4.5

60
3002016

2017

2018

2017

2018

60

1260

640

6630

320

30000

2019

2015

1,600

6

1,200

4800

2

400002019

1,532.8

5.1

2015

2016

2017

2018

(Million m3)

12

800

9600

64.5

400

63.0

63200

31.5

30000

2019

2018

2019

The Group has been working to reduce greenhouse gas emissions in its
manufacturing activities with an eye on achieving its target for reducing
CO2 emissions PLS. by 50% by 2050 (compared with 2010).

2014(No. of companies)

159270945106180630

5390

31500002015

2016

2017

2018

2019

46216.83

2016

2017

2018

2019

2015
Domestic

Yamaha Motor Co., Ltd. Integrated Report 2020

2017

Number of Group Companies Joining Unified Certification Program

11.18

2016

1294.0702015

2016

2017

2018

2019

ROA60

The decline in net income attributable to owners of parent led to a 3.5
percentage point decrease in ROE compared with the previous fiscal
year-end.

5272015

(¥)

2015

2019

91220192018

6.0360

2018

2017

12

Net Income per Share (Basic)

2017

2016

Capital expenditures totaled ¥58.1 billion, targeting sustained growthand greater efficiencies in existing businesses.

Water Intake122016

02015

R&D expenses were ¥102.0 billion, essentially on par with theprevious fiscal year.

2020152019(1,000t-CO2)

Total assets grew ¥112.0 billion from the previous fiscal year-end due tothe consolidation of Yamaha Motor Robotics Holdings Co., Ltd. (YMRH)
and its subsidiaries.

02018

CO2 Emissions

Net income attributable to owners of parent declined ¥17.6 billion year
on year, to ¥75.7 billion, and the ratio to net sales decreased 1.0­percentage points year on year, to 4.5%.

15,3282017(%)

Total assets

Return on Equity (ROE)

2016

9

Operating income margin(¥ billion)

858.1

9

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

(%)

1290

Total Assets / Return on Assets (ROA)

(%)

12080

18

Profitability improved in the motorcycle business—a continuation fromfiscal 2018—but operating income fell ¥25.4 billion year on year, to¥115.4 billion, owing to weaker sales in the Robotics (excluding theimpact from M&As) and other segments, higher expenses from growthstrategies, foreign exchange rates, etc.

Net Income Attributable to Owners of Parent / Ratio of Net Income
Attributable to Owners of Parent to Net Sales

2015

2016

Operating income

Overseas(¥ billion)

12102.0

1,664.8

Net income per share (basic) declined from the previous fiscal year due
to the decrease in net income attributable to owners of parent.

2016

2017

2018

2019

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

Brand Ranking*32nd* Brand value ranking of Japan-based brands carried out by Interbrand Japan(Best Japan Brands 2020)

Overseas

We have been working toward global environmental ISO 14001 unified
certification at Group companies in Japan and overseas since 2012. A totalof 46 companies 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 Motor and Yamaha Corporation, was valued at US$1,369
million (compared with US$1,195 million in 2019 and US$998 millionin 2018).

Yamaha Motor Co., Ltd. Integrated Report 20209