Business Strategy

Business Overview

Land Mobility
Primarily composed of the motorcycle, recreational
vehicle (RV), and Smart Power Vehicle (SPV) businesses,
the Land Mobility business offers its diverse range of
products—spanning practical, everyday means oftransportation and recreational products to products forcommercial use and motorsport—to markets in line with
their individual characteristics, and is building businessplatforms to be ready for a new era of mobility.

Medium-Term Priority Initiatives 

Net Sales / Operating Income / Operating Income Margin

Building business platforms ready for theshift to a new era of mobility• Revamp current capabilities to boost the efficiency of
manufacturing and sales operations• Promote swifter management to improve the speed ofdecision-making• Accelerate the shift toward new business fields(¥ billion)

1,500(¥ billion)

60

3.7%

3.3%

1,000

40

Net Sales Breakdown by Major Product Category(Fiscal 2020)
Smart Power Vehicles

4.6%

Recreational
vehicles

8.4%

23.2%

2.0%
20

500

0
2019
Net sales

Developed market
motorcycle
business

2020

Operating income (right axis)

2021 (Forecast)

0(FY)

Emerging market
motorcycle business

Operating income margin

63.8%

Marine Products
The Marine Products business’ portfolio includes marine
engines, boats, personal watercraft, and pools. The
business has built a presence as a global leader in themarine products market and is working to strengthen its
high-profit business structure as well as establish
platforms for sustainable growth.

Robotics
Our Robotics business traces its roots back to technologies used in the production of our motorcycles. Today,the business offers industrial robots for factory automation, surface mount technology (SMT) equipment for
manufacturing printed circuit boards, semiconductor
manufacturing equipment, industrial-use unmanned
helicopters and drones leveraging Yamaha Motor’s corecompetency in electronic control technologies, and otherproducts for a variety of clients. The priorities of thisbusiness are expanding its scale and domains ofoperation alongside bolstering profitability.

Financial Services
The Financial Services business offers retail andwholesale financing, leasing, and insurance packages
for dealerships and customers with the goal ofstrengthening Yamaha Motor’s business operation
platforms. This business aims to ensure stable earnings
by strengthening our ties with customers.

Medium-Term Priority Initiatives 

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

Strengthening the business’ high-profit
structure and building platforms for­sustainable growth400

Medium-Term Priority Initiatives • Accelerate factory automation• Contribute to laborsavings in new fields• Build robust business platforms through in-house technologies
and organizational reinforcement

60

200

40

100

20

0
2019

2020

Operating income (right axis)

2021 (Forecast)

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

(¥ billion)

19.6%

15

10

16.4%

20

5

54.4%

45.6%

Net Sales Breakdown by Major Product Category(Fiscal 2020)

15

10.2%

12

Yamaha Robotics
Holdings Co., Ltd.

9

23.6%

10.0%

60
40

SMT equipment,
industrial robots,
unmanned
systems

6
4.0%

20

Net sales

Outboard motors

0(FY)(¥ billion)

100
80

Personal watercraft, boats,etc.

Operating income margin(¥ billion)

0

40

14.5%

Net Sales / Operating Income / Operating Income Margin

Expanding business scale and domains andbolstering profitability

19.6%

15.4%

300

Net sales

Net Sales Breakdown by Major Product Category(Fiscal 2020)

80
16.7%

• Realize the Marine Long-Term Vision• Promote a global production scheme for outboard motors• Progress as a system supplier through a comprehensive marine
business strategy• Work on product development strategies to offer more
­attractive products and services

60(¥ billion)

2019

2020

Operating income (right axis)

32021 (Forecast)

76.4%

0
(FY)

Operating income margin

Other Products
The Other Products business manufactures and sells
electric wheelchairs for supporting people’s daily lives,
the golf cars found at golf courses and resort facilities,
portable generators and multipurpose engines adapting
Yamaha Motor’s small-engine technologies, snow blowers for regions with heavy snowfall, and other products.

Net Sales / Operating Income (Loss) / Operating Income Margin(¥ billion)

(¥ billion)

120

2.0

90

1.5

2.5%

60

1.0

30

1.4%

0.5

0
0
Net sales

70

Yamaha Motor Co., Ltd. Integrated Report 2021

2019

2020

Operating income (right axis)

2021 (Forecast)
Operating income margin

0
(FY)

–30
Net sales

0
–0.4%
2019

2020

Operating income (loss) (right axis)

2021 (Forecast)

–0.5
(FY)

Operating income margin

Yamaha Motor Co., Ltd. Integrated Report 2021

71

Business Strategy

Land Mobility

Overview of Fiscal 2020 

We will redefine the value of mobility andstrive to create Kando that goes beyond theboundaries of mobility.

Takuya Kinoshita
Senior Executive Officer,
Chief General Manager of Land Mobility Business Operations,and Executive General Manager of Motorcycle Business Unit,
Land Mobility Business Operations

Strengths• Diverse and global product lineup combining
both high performance and quality throughour cultivated core technologies• Established global brand position for motorcycles• Pedigree of constantly pioneering new markets
by creating new forms of mobility• Expansion of middle-income markets in
ASEAN and other emerging economies

Opportunities• Global rollout of models compliant withemissions regulations• Evolution of marketing throughdigital technologies• Tighter emissions regulations in each country

Risks• Structural shift in the industry fromnew technologies and competitors• Shift away from mobility andvehicle ownership among younger
generations in Japan

We had a difficult year in fiscal 2020 with sales and profits both falling
due to the COVID-19 pandemic. However, thanks to managing risks
while adapting to market trends and endeavoring to cut expenses at thesame time, our results show that we were able to avoid the worst-casescenario we projected for April 2020 that estimated the impacts of thevirus on our business. That being said, Yamaha Motor’s demand chain
management practices traditionally keep product inventory to a minimum in line with demand, so the drastic demand fluctuations seen in
fiscal 2020 made it very difficult for us to respond. This made the immediate issues with our production planning and supply capabilities clear,
and we will address these matters with vigor going forward.
The progression of technology and environmental regulations as wellas the value placed on day-to-day life and life in general have growneven more diverse amid the pandemic, and the view on what constitutes “mobility” has also greatly changed. Under these circumstances,
thinking about what users are really looking for as well as the reasons
why is part of Yamaha’s corporate agenda. At the same time, I think it isvital that, with our products, we redefine the value they provide toelevate them beyond being just a way to move from one place toanother. Whether it is musical instruments or mobility, owning a
Yamaha-brand product is about fun and the user’s happiness. I believe
redefining the value of mobility to go beyond simple “use of a consumer
product” is key to delivering value that connects to the human happiness expressed in our Long-Term Vision of ART for Human Possibilities.
Simply raising product performance will not suffice. As we redefine
mobility and think about the kind of Kando we want to deliver to ourcustomers, we also need to ponder where the source of our future
Kando will come from.
Yamaha Motor developed the world’s first electrically power-assisted
bicycle and brought the side-by-side ROV to market, providing users
with fresh experiential value over the years. In this way, it is in our DNA
to pioneer new markets by creating new forms of mobility, and by doing
so, we have established a firm position in each of our fields. Whilecoordinating our efforts internally and externally, we will apply theunique advantages, technologies, and know-how we have accumulated
from engaging in a wide range of segments—from electrically powerassisted products to low- and high-speed mobility—toward creating
new forms of mobility that embody our corporate values and thereby
ensure we seize any opportunities that arise.

Priority
Initiatives• Transferred ownership shares to an Italian motorcycle engine manufacturer and began reallocating production duties at the Iwata
Main Factory and surrounding factories as part of production base structural reforms aimed at raising production efficiency andmarket adaptability• Developed and launched the Wolverine RMAX 1000 as an ROV platform model• Released a flagship e-MTB model incorporating knowledge gained through motorcycle development, etc.
• Began accepting commissions for prototype electric motor development for EVs

Fiscal 2021 Initiatives 
As motorcycles continue to be reassessed for their role in personal
mobility and commuting, we will ramp up launches of products
tailored to the individual market characteristics of each country
and build platforms for profitability in the growth areas unique toour brand to capture rising demand. For the motorcycle andrecreational vehicle (RV) businesses in developed markets, we will

aim to improve profitability through structural reforms and therelease of new models. With electrically power-assisted bicycles,
we plan to develop new products using novel technologies andleverage strategic partnerships to offer value across-the-board inorder to expand the business on a global basis.

Future Measures for Realizing Our Long-Term Vision 
Produce Synergy between the Motorcycle and SPV Businesses
A strength of the Land Mobility business is its full lineup of products available around the world. To boost competitiveness, theSmart Power Vehicle Business Unit was merged with ourMotorcycle Business Operations in fiscal 2020 in an organizational
restructuring that formed our Land Mobility Business Operations.
With fiscal 2021 as the final year of the current Medium-Term
Management Plan, our target figures and the like remain thesame. For the next plan, however, we will move forward withinitiatives to produce synergy between the motorcycle and SPV
businesses. There will be difficulties in integrating two different
business systems, but we are committed to furthering ourstrengths in order to drive not only product electrification but also
the creation of new forms of mobility.

Accelerate Our Digital Transformation Strategies to Better Connect with Customers
The Land Mobility business is moving forward with its digitaltransformation strategies for both products and marketing, andthese are aimed at delivering the following types of value by
forming connections among products, customers, and traffic
environments.
1. E ven greater convenience and value in mobility
2. A safer, more secure mobility experience by constructing aconnected traffic environment

3. Support for self-actualization by providing data and evaluations
on vehicle operation
4. Community building to strengthen ties with customers
Work to implement the strategies with our products is being
carried out in stages while integration methods and deployment
timetables for services offered around the world, such as the
Yamaha Riding Academy riding safety program and the bLU cRU
amateur racer support program, are under consideration.

Message from Management

countries and product lines and has carved out a position among the top three motorcycle brands in the 41 countries served

Markets and conditions at Yamaha Motor

Main competitors

Motorcycles andcommuter vehicles fordeveloped markets

Overall demand has remained largely flat since the 2008 global financial crisis.
Demand decreased in the first half of fiscal 2020 as a result of the lockdowns
instituted in response to the COVID-19 pandemic, but demand for outdoor
recreation and personal mobility offered a boost in the second half of the year.

Honda, Suzuki, Kawasaki, Harley-Davidson,
BMW, Ducati, Triumph, KTM, Aprilia, Piaggio,
KYMCO

Motorcycles and commutervehicles for emerging markets

Unit sales fell in our mainstay market of Indonesia and other markets across theglobe due to the COVID-19 pandemic.

Honda, Suzuki, Kawasaki, Hero, Bajaj

ROVs / ATVs

The North American market accounts for the majority of demand. A rise indemand was seen prior to the summer season of 2020.

Polaris, BRP, Honda, Kawasaki

Electrically power-assisted
bicycles and OEM drive units

Yamaha Motor is the pioneer of e-Bikes, demand for which is recovering in
eco-conscious Europe.

Panasonic, Bosch, Shimano

Yamaha Motor Co., Ltd. Integrated Report 2021

Progress ofhelped minimize the damage to our numbers despite lower sales
and profits. However, product stock remains at a low level inalmost all regions and in fiscal 2021 we intend to realign our
production plans to meet the surge in demand.

With years of respect and widespread recognition in the European market, the Yamaha brand is the market leader in certain

Overview of Primary Products and Main Competitors

72

The spread of COVID-19 led to a fall in sales volume and expenses
and product inventory decreased in turn. In developed markets,
the swift recovery of demand for outdoor recreation and personal
mobility following the lifting of lockdowns became a tailwind thatby Yamaha Motor Europe. The strength of the brand and our products helped us establish our monobrand network that
accounts for over 80% of our sales in those countries.
We are also now seeing new additions to our customer base and higher expectations for our products as solutions that
improve our customers’ quality of life. Yamaha Motor products are answers to expectations that include 1) new electric andeco-friendly (Euro 5-compliant) mobility, 2) mobility providing new freedom in a post-COVID-19 world, and 3) mobility creating the better world our customers hope for. At the same time, they support both the market of today and of tomorrow.
Thanks to our distribution networks, high level of technical expertise, and, of course, our competitive lineup, Yamaha
Motor already enjoys a trustworthy reputation in the market, so from here it is up to us to build a bright future for the brandin Europe.

Eric de Seynes
Senior Executive Officer,
President,
Yamaha Motor Europe N.V.
(YMENV)

Yamaha Motor Co., Ltd. Integrated Report 2021

73

Business Strategy

Marine Products

Overview of Fiscal 2020 and Fiscal 2021 Initiatives Seeing dramatic market changes asopportunities, we will seek to offer
experiences with higher added value.

Hirofumi Usui
Senior Executive Officer,
Chief General Manager of Marine Business Operations• Unquestioned product reliability centeredon integrated control technologies

Strengths• Overall business strength supported bywide-ranging business domains and an
expansive product lineup• Sales and service capabilities spanning the
global market• Growing demand for large outboard motors
centered on developed markets

Opportunities• Expansion of peripheral equipment business due toadvances with integrated control technologies• Changing sense of value pertaining tomarine recreation spurred by staycation demand• Dramatic market changes against the backdrop ofclimate change, rapid technological innovation, etc.

Risks

• Making flexibility adjustments to manufacturing andsales structures in response to recent demand
fluctuations due to the COVID-19 pandemic, etc.

In fiscal 2020, the COVID-19 pandemic drastically affected ourbusiness and our performance suffered as a result. Nevertheless,we were still able to make steady progress with the priority initiatives outlined in our current Medium-Term Management Plan.
These run from continuing our transformation into a system
supplier with the launch of the new Helm Master™ EX boat
steering system in developed markets and reinforcing our development structure with R&D functions in North America to engaging
in new IoT-powered initiatives for early issue detection and predictive maintenance services.
Further, as demand for outdoor recreation rose in developed
markets, positive developments also emerged, such as consumer
reevaluations of marine recreation, seeing it as an accessible formof leisure requiring little to no long-distance travel. We can also
expect future trade-in demand with more people purchasing a
Yamaha marine product for the time, hence I the roots of ourbusiness are growing. In fiscal 2021, we will accurately gauge thevarious levels of demand and bolster our product supply systems,
as well as move forward with our new Marine CASE strategy as
our business policy for the future.
This strategy is centered on achieving our Marine Long-Term
Vision of a “Reliable and rich marine life” and incorporates thepriority initiatives we have engaged in thus far. It is aimed attransforming customers’ marine lifestyles with experiences thatprovide even greater peace of mind and comfort. We will respondto the drastic market changes taking place against the backdropof thwarting climate change, rapid technological innovation, andother developments, as well as take on the challenge of lowering
the hurdles to marine product ownership—expensive productprices, costly maintenance, and the required boating skills—all inline with our CASE approach. Doing so will turn risks into opportunities and we will leverage our strengths as a manufacturer as
we strive to build greater marine product demand from theground up. Through our CASE strategy, we will seek to offer
enriching marine lifestyles as we create higher-value-added experiences and transition to a business model that fosters customer
self-actualization.

• Creating a business structure resilient againstchanges in exchange rates and regulations

The effects of COVID-19 in the first half of fiscal 2020 caused
North American boatbuilders to halt operations, dealers to close
their doors, and the temporary shutdowns of the Iwata Main
Factory in Japan and our manufacturing facilities in the UnitedStates, driving down sales. However, following the lifting of lockdowns, demand for outdoor recreation spiked and by ramping up
capacity utilization rates, we were able to post higher outboard
motor unit sales in North America and Europe in the latter half ofthe fiscal year. Still, the Company was unable to fully recoup theresults of the first half and recorded lower sales and profits forfiscal 2020 overall. For fiscal 2021, we will gauge the growing
demand for outboard motors and personal watercraft—driven byrising outdoor recreation demand—and will swiftly and flexibly
enact adjustments to our production and sales plans in order toadapt to demand fluctuations. At the same time, to make further
progress with our system supplier strategy, we will carry out our
product and technology strategies to expand our marine businessacross the board.

• Investments for augmenting large outboard motor production capacity mostly complete
Progress ofPriority
Initiatives• Field testing of the new HARMO boat control system, which combines an electric propulsion unit, steering system, and more,
underway in Otaru in Hokkaido Prefecture, Japan• Launched the F/FL425A 4-stroke outboard motor, Yamaha’s most powerful offering at 425 hp and released to industry acclaim in
the United States, in the Japanese market• Developed an all-new single-rider SuperJet stand-up PWC model, improving its performance, eco-friendliness, and fun factor

Future Measures for Realizing Our Long-Term Vision Promotion of Marine CASE Strategy
We will move forward with our Marine CASE strategy, which
aggregates the various initiatives we have carried out to date aspart of our growth strategy, and plan to position it at the centerof our work under the duration of the next Medium-Term
Management Plan covering fiscal 2022 and onward.
With Connected, we will provide ample peace of mind bybringing connectivity to time on the water using engine information. For Autonomous, we will create systems that deliver smooth,
intuitive boat control for user assurance and comfort.
Electrification will yield quieter operation and, subsequently,
increased comfort. These measures remain congruent with our

original system supplier strategy, and we will implement each withan eye on combining them all into a single system in the future.
Furthermore, we will put the products incorporating the aforementioned advancements to use in our membership-based SeaStyle boat rental club and offer more opportunities to experiencethe marine lifestyle through Shared. Under the key theme ofproviding peace of mind, comfort, and experiences, we will apply
the latest technologies toward transforming the marine lifestylesof our customers into experiences with even greater peace ofmind and comfort to help enrich their marine lifestyles as a whole.

Marine CASE Strategy

Connected

Connected for peace of mind

Investment in Siren Marine, LLC
Development of technologies for
IoT-ready connected boats

SharedAutonomous Comfortable, worry-free, and accessible marine recreation
New boat control system
Developed market launch complete

From experience to self-fulfillment

Sea-Style memberships
Up 13% from 2018
Boating license course participants
Up 12% from 2018

Electric

Quiet times and spaces

Field testing with Otaru
Canal Cruise services

Message from Management
Fiscal 2020 showed that the marine industry can thrive even in the most challenging economic environment. Yamaha
Marine customers upgraded or replaced their products and first-time Yamaha Marine product buyers nearly doubled,

Overview of Primary Products and Main Competitors
Main competitors

manufacturing capacity and flexibility to better suit this more dynamic market at each of our U.S. manufacturing facilities.

Outboard motors

Outdoor and family recreation demand surged after the end of lockdowns,
mainly in North America. We will build a global production scheme with theflexibility to keep pace with demand growth.

Mercury Marine, Suzuki, Honda, Tohatsu,
Evinrudeplatform, we are now bringing these big-horsepower integrated systems to 250- to 300-horsepower V6 Offshore models.

Boats

The domestic boat market is relatively stable and we will offer higher-value-added
pleasure-use boats. With Sea-Style and our other service-based businesses, we will
strengthen our development of services in line with customer preferences.

Yanmar, Toyota, Suzuki, Tohatsu

The North American market accounts for the majority of demand and is growing
in scale yearly as uses for personal watercraft broaden.

BRP, Kawasaki

Personal watercraft74

returning the industry to pre-recession volumes. We are seeing continued growth in fiscal 2021, and we will be aligning ourMarkets and conditions at Yamaha Motor

Yamaha Motor Co., Ltd. Integrated Report 2021

We are also bolstering our product lineups. Following the successful launch of the 425-horsepower XTO Offshore integrated
Along with the new Helm Master™ EX, we are creating new value and excitement for Yamaha Marine product owners.
Further, adding CASE to our integration strategy will enrich the consumer experience and provide even more reliability.
I will continue to support our experienced Yamaha Marine team to meet market demand and create new Yamaha brandvalue for the future.

Ben Speciale
Deputy Executive Officer,
Senior Vice President,
Yamaha Motor Corporation,
U.S.A. (YMUS), President,
U.S. Marine Business Unit

Yamaha Motor Co., Ltd. Integrated Report 2021

75

Business Strategy

Robotics

Overview of Fiscal 2020 

We aim to expand business synergies while
offering customers optimal solutions.

Hiroyuki Ota
Senior Executive Officer,
Chief General Manager of Solution Business Operations• Technological and production capabilities deliveringhigh-quality, low-cost, and timely supply

Strengths• A mixture of technologies via businessintegration with YRH and provision ofcomplete solutions for clients• Co-creative capacities founded on strong
relationships with business partners

Up until fiscal 2021, the Robotics business has acted in accordance with our medium-term priority initiative of expanding
business scale and areas as well as bolstering profitability. Basedon this, we have proceeded to reinforce our lineup of products
and services for accelerating factory automation while contributing to laborsavings in new and other fields outside of factories.
The chief mission of the Robotics business is to free up time forclients by providing laborsaving solutions through our robot technologies and to thereby help create environments where people
can continue working as people. This objective coincides with theaims of the Long-Term Vision.
In light of the recent rise in automation needs, we are working
to transition to in-house options for our core technologies while
implementing our platform strategies to provide our signature
One-Stop Smart Solution. Moving our core technologies in-housewill enable swifter responses to client needs while achieving highly
functional machine-to-machine communications between Yamaha
Motor equipment—especially in the SMT equipment field—andwill make it possible to bring higher added value to automation
and autonomization.
We faced difficulties developing our overseas operations in the
agriculture field during fiscal 2020 due to the COVID-19 pandemic, but steady progress was made in Japan. Looking ahead,
we plan to aggressively launch drones and other new productsthat leverage the knowledge and experience we have accrued todate in Japan in order to contribute to greater laborsavings andimproved productivity in agriculture. We will also continue toexpand our overseas operations while accounting for COVID-19
developments.

• Progression of more advanced automation in line with thedevelopment of new fields such as IoT and “connected,
autonomous, shared, and electric” (CASE) vehicles• Deterioration of demand due to changes in world affairs

Risks

Progress ofPriority
Initiatives• Intensifying competition resulting fromnew players entering the market

throughout the year in China, Taiwan, South Korea, and otherparts of Asia, and sales volumes began recovering in Europe andthe United States in the second half of the fiscal year. In thismanner, we are seeing an upward trend in profit margins.
Progress was also made with structural reforms at YRH and wehave a clear idea of when the company will achieve profitability.

• Reinforced sales and service systems for all three fields—surface mount technology (SMT) devices and equipment, factory automation(industrial robots), and semiconductor manufacturing equipment—through reorganization and augmentation of sales bases in South
China to grow the business and build foundations• Entered collaborative robot field through a technical tie-up with Tokyo Robotics Inc. with the goal of expanding industrial robot
operations• Advanced development of next-generation mounter platforms and released the YRM20 premium, high-efficiency modular• Launched YMR-08AP industrial-use multirotor drone to contribute to laborsavings and higher efficiency in farm work throughautomatic flight

Fiscal 2021 Initiatives 
To accelerate the offering of bundled product proposals and mutual
sales channel utilization by leveraging the synergies born of businessintegration, the Robotics Business Unit will approach new customers
through region- and product-focused cross-selling strategies in fiscal
2021 while developing new products with an eye on the next
Medium-Term Management Plan. Meanwhile, we are engaged injoint development with Tokyo Robotics Inc. in the collaborative
robot field and will make sure steps forward toward launchingproducts in fiscal 2022, targeting a 10% market share in the future.
Also, we carried out an organizational restructuring in January offiscal 2021 to allow for more robust implementation of growthstrategies for the Unmanned Systems business. By positioning theUnmanned System Business Development Section under the direct
jurisdiction of our Solution Business Operations, we have created anorganization to swiftly provide the unmanned systems the market
demands, which will be utilized to improve product competitivenessas well as to grow the business domestically and internationally.
We have an approximate timetable for the completion of structural reforms aimed at recovering the financial health of YRH, andwe will look to speed up the growth of this company throughmanagement integration going forward. Focuses at YRH in fiscal
2021 will be on achieving profitability on a full-fiscal-year basis
and developing new models by capitalizing on the recovery of thesemiconductor market.

Future Measures for Realizing Our Long-Term Vision Promote Our Platform Strategy
Solution Business Operations is an organization unique even at
Yamaha Motor due to it singularly possessing all of the requisite
functions to operate, from development, procurement, and production to sales and after-sales services. To ensure that we use theorganization’s advantages to propose and provide optimal solutions to our clients, we are carrying out a platform strategy
focused on promoting commonization and raising efficiency inmanufacturing. By introducing shared hardware and software, we• Growing need for automation due to labor shortages inJapan and rising labor costs in emerging markets

Opportunities

In fiscal 2020, the curbing of investments in the automotive sector
in Japan and other markets led to a less beneficial model mix forour mainstay surface mounters. This factor, coupled with theimpacts of making Yamaha Robotics Holdings Co., Ltd. (YRH)(name changed from Yamaha Motor Robotics Holdings Co., Ltd.
on January 1, 2021) a new subsidiary, resulted in a rise in sales but
a decline in profits. Conversely, surface mounter sales grew

will not only reduce development lead times and achieve greaterpart sharing but also provide more value to clients with reduced
upkeep costs, standardized operations, and shorter equipment
delivery times.
Through this platform strategy, we will roll out highly effective
products and contribute to fully optimized, labor-efficient andautonomous operations for a wide variety of clients.

Message from Management
Overview of Primary Products and Main Competitors

76

Markets and conditions at Yamaha Motor

Main competitors

Surface mount technology(SMT)

Demand continues to grow for printed circuit boards, including those for IoT,
5G, and CASE applications. We are pursuing both product and service commonalities under our platform strategy to expand our business scale and reinforce
our profitability.

Fuji Machine, Panasonic, ASM Pacific Technology,
JUKI, Hanwha Techwin

Industrial robots (factory
automation)

Automation needs are rising rapidly amid soaring personnel expenses and labor
shortages. We are strengthening model variations while pursuing both productand service commonalities to expand our business scale and reinforce our
profitability.

Epson, Mitsubishi, Denso, IAI

Unmanned helicopters anddronesWe are launching multirotor drones in addition to our proven unmanned
helicopters and will also establish a track record for precision agriculture.

DJI

Semiconductor
post-processing equipment

Semiconductors are becoming increasingly scarce. We are working to further
build our customer base by building a seamless collaborative system that offers
one-stop proposals that cover the entire semiconductor manufacturing process.

ASM, Besi, K&S, Towa

Yamaha Motor Co., Ltd. Integrated Report 2021

Based on our Yamaha One-Stop Smart Solution concept, the Robotics Business Unit helps automate and autonomize operations at client production sites with a robust lineup of products in the surface mount technology field (surface mounters andrelated electronic component mounting equipment), factory automation (industrial robots), and semiconductor manufacturing. Doing so is how we contribute to the resolution of societal issues such as medium- to long-term labor shortages andsoaring personnel expenses. To ensure we continue to deliver products and services that allow people to continue working
as people as well as attain greater happiness, we are sharing and evolving common-element technologies and insights
within the Robotics Group and accelerating the commonization of components. Furthermore, frameworks for developing
new technologies are being enhanced to build solid business platforms and drive sustainable growth.

Ayako EgashiraExecutive Chief General
Manager of Robotics
Business Unit,
Solution Business Operations

Yamaha Motor Co., Ltd. Integrated Report 2021

77

Business Strategy

Financial Services

Other Products

Overview To create an environment that makes it easier for dealerships tosell Yamaha Motor products and easier for customers to purchase
them, the Financial Services business offers retail and wholesale
financing, leasing, and insurance packages for dealerships andcustomers through sales finance subsidiaries in the United States,
Canada, Australia, France, Mexico, Brazil, and other markets. In
addition, the Financial Services business is conducted throughapproaches tailored to the various regions in which we operate via
our own operations, local partnerships, and other means in orderto stay in line with local business environments, regulations, andother factors.
The Financial Services business is involved in all of the Company’sbusinesses and products, including motorcycles, all-terrain vehicles(ATVs), recreational off-highway vehicles (ROVs), and marine
products. With this in mind, the Company has positioned the
Financial Services business as one of its key medium- to long-term
strategies and is aiming to enhance its ties with dealerships andcustomers while securing stable earnings.

Overview of Fiscal 2020 
In January 2020, Yamaha Motor Finance Corporation, U.S.A.
(YMFUS) replaced its financing program for “Prime” customers,
which it had hitherto operated in a tie-up with U.S. financial
institutions, with an in-house service. This change enabled YMFUS
to supply a full-line of services for all customer groups while cutting costs. The outstanding receivables balance rose as a result of
this transition, climbing to ¥350.4 billion at the end of fiscal 2020,
an increase of 14.9% year on year, while net sales grew by 12.5%
year on year, to ¥46.1 billion. Conversely, operating income wasdown 5.9% year on year, to ¥7.6 billion, and the operating
income margin was 16.4% as a result of foreign exchange influences, an increase in allowance for doubtful accounts, and adecrease in receivables from wholesale sales.

Fiscal 2021 Initiatives 
In fiscal 2021, the outstanding receivables balance is expected torise to ¥416.0 billion due to increases in receivables from wholesale and retail sales, and operating income is projected to surpassthe levels seen in fiscal 2019.
By continuing to put forward attractive financing programs,
Yamaha Motor will establish an environment facilitating the purchase of its products to help increase sales and thus drive thesustainable growth of the Financial Services business.

The Other Products business engages in the development and sale of golf cars, portable generators, snow blowers,­multipurpose engines, electric wheelchairs, and other products. The following are two of the many products that fallunder this segment.

Power ProductsFirst created by adapting the Company’s small-engine technology,
Yamaha generators are utilized not only for camping and otherrecreational activities but also as a backup power source in timesof emergency, such as during power outages or in disasterafflicted areas. We also manufacture and sell products such as
snow blowers—a welcome tool in regions with heavy snowfall—
and multipurpose engines to enrich people’s lives and bring thempeace of mind.
Yamaha golf cars, which originated from the development ofland cars for resort facilities, are produced in Japan, the UnitedStates, and Thailand. North America in particular accounts forover 75% of global demand, making it the leading market forgolf cars and the focus of the Company’s sales. In recent years,
our golf cars have been increasingly used outside of golf courses
and resort facilities as a means of mobility for underpopulatedareas and villages with narrow roads, thereby contributing to the
spread of mobility and its culture.

Message from Management
Electric Wheelchairs

As the Financial Services business continues to mature and we reflect on the changes in the lending industry due to theglobal COVID-19 pandemic, we are accelerating our efforts in the following three key areas:
1. Customers: Through expansion of our digital transformation efforts, we will keep pace with the growing trend ofomni-channel purchasing habits. Adapting our “in-store” financing model (where we are) to a “mobile” one (where
our customers are) will ensure Yamaha Financial Services maintains its strong value proposition for its business unit
partners, dealers, and end-consumers. We are also transforming our business model to reflect the future long-term
growth strategy. As part of the ART in our Long-Term Vision, the Financial Services business must rethink its own
solutions to ensure strong long-term support of Yamaha Motor’s business.
2. Investors: We will continue to refine and strengthen our enterprise risk management framework to ensure strong andeffective corporate governance. More coordinated, global risk assessments will be a key pillar of our business
management.
3. Employees: We are building a more connected global financial services community. Fully leveraging the strength of
our greatest strategic asset, talented personnel, through a new management system and our ongoing Global Execution

Jeffrey Young
Deputy Executive Officer,
President,
Yamaha Motor FinanceCorporation, U.S.A. (YMFUS)

By adapting the Company’s technologies for electronic control,
drivetrains, and more to develop power units for converting
manual wheelchairs into electric ones, we created a new market
for simpler electric wheelchairs that are foldable and easy to carry.
In addition to fully electric wheelchairs, we currently manufactureand sell electrically power-assisted units for installation on manual
wheelchairs as well as complete electrically power-assisted­wheelchairs, both employing technologies from our powerassisted bicycles.
Through such products, we will facilitate the mobility of theelderly and persons with disabilities, seek to deliver greater comfort and convenience for users, and help alleviate the burdens
placed on caregivers, among other goals.

Transformation (GET) efforts will be the key enabler of all of our future initiatives.

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Yamaha Motor Co., Ltd. Integrated Report 2021

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