Medium- to Long-Term Strategies

Yamaha Motor’s System of Strategic Policies

Important Societal Issues (Materiality Issues)

Yamaha Motor identified important societal issues (materiality issues) to address in light of significant changes in thebusiness environment as well as in terms of risks and opportunities. In order to resolve these societal issues, theCompany formulated its Long-Term Vision for 2030 to indicate the directions we will take. In 2022, the Company revised
its materiality issues and is implementing a new Medium-Term Management Plan aimed at realizing the Long-Term
Vision. For details on important societal issues identified by the Company, the Long-Term Vision, and our various­measures, please see the relevant pages.

Yamaha Motor defines materiality issues as major issues considered important by both our stakeholders and society atlarge, which not only have a major impact on our operations but are also ones we believe we can solve through our­business. By addressing these issues, we aim to achieve sustainable growth of corporate value as well as the sustainable
development of society and the environment.

Kando Creating Company

Corporate Mission

Offering new excitement and a more fulfilling life for people all over the world

External environmental factors of particular importance for Yamaha Motor• The shift to recycling-oriented economies
and the decarbonization of society• Population growth in emerging markets
and the aging of society in developed
markets• The global economic power shift fromdeveloped markets to emerging markets

Important Societal Issues(Materiality Issues)• The progress of rapid urbanization andincrease in urban/rural disparities• The progress of technological innovations(IoT/AI)• More traffic accidents and traffic
congestion (particularly in emerging
markets)

Environment and resources• Responses to first/last-mile mobility needs• The diversification of people’s values andconsumer behaviors• The transition from vehicle ownership tosharing and from material goods toexperiences

Transportation and industry

Human capital management

Process for Identifying Important Societal Issues
Sort

STEP 1

We look at the wide range of societal issues referenced in the United Nations’ Sustainable Development Goals (SDGs)
and the Global Risks Report, and select those that will have the greatest impact on Yamaha Motor’s use and procurement of management resources, and for which the resolution will make the greatest contribution to the enhancementof corporate value. We also evaluate the importance of societal issues from the perspective of stakeholders, referencing the valuations of ESG rating institutions.

Environment
andresources

Categorize

STEP 2

Transportationand industry

Through consultation with operating divisions, functional divisions, and corporate divisions, the divisions clarify the
relationships between the issues selected in Step 1 and each division’s policies and activities, and those that should be
addressed Companywide are aggregated and categorized.

Human
capitalmanagement

Designate

STEP 3All of the Company’s officers deliberate societal issues aggregated and categorized in Step 2 at Management
Committee and Board of Directors meetings and designate “important societal issues” that should be addressed
Companywide using the Company’s strengths, corporate philosophy, and unique capabilities.

Incorporate

STEP 4

Environmental Plan 2050

Medium- andLong-Term Strategy(Corporate Strategy)

Human resources
development strategy

Portfolio strategy

Initiatives to resolve the identified important societal issues have been incorporated into the current Medium-Term
Management Plan. The rigorous implementation of these initiatives will be monitored going forward.

Digital transformation (DX) strategy

Selected societal issues
Invest in new andg­ rowing businesses

Accelerate digital­initiatives and co-creation

Long-Term Vision for 2030 (Growth Strategy Directions)Three Focus Areas

Rethinking Solution

Transforming Mobility

Leverage and evolve intelligent technologies
and robotics as a foundation

Propose uniquely Yamaha solutions

Promote innovations in mobility• 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• Introduction of industrial processes taking into accountclean technologies and efficient use of resources•H eightened awareness of sustainability• P romotion of economic growth based on fair work
environments•R eduction of waste materials•C urtailment of corruption and bribery• Improved energy efficiency(including promotion of use of renewable energy)• P romotion of use of inexpensive, reliable energy• P romotion of safe and secure work environments•A dvancement of diversity and inclusion• E ffective use of water resources andprevention of pollution• S ecuring of clean water resources• Abolition of inequality• Responses to multistakeholders• Promotion of innovation(active use of global partnerships)• Implementation of fair taxation• Promotion of sustainable industrialization• E limination of discrimination against women andprotection of human rights•U se of women’s skills• S trengthened disaster prevention and response• E radication of forced labor, human trafficking,and child labor• Increased employment for socially vulnerable people• P revention of pollution and damage fromharmful chemical substances• S trengthened measures to address climate change• S ustainable use of natural resources• P romotion of innovation(promotion of sustainable industrialization)• P romotion of innovation(promotion of sustainable forms of consumption andproduction in d
­ eveloping countries)• P romotion of protection and recovery ofland ecosystems• P rovision of a stable living environment•H alting of deforestation• P rotection and recovery of marine ecosystems• E xpansion of educational systems(including vocational training)• E nhanced educational environment indeveloping countries• P romotion of social infrastructure development• P revention of traffic accidents• P rotection of small-scale agricultural andfishing industries•A dvancement of sustainable fishing industry• Improved access to fishing areas and markets
in least developed countries• Strengthened support for emerging anddeveloping economies

Low

Advancing Robotics

Important issue areas

High

Strengthen the earning
power of our corebusinesses

Importance to stakeholders

Medium-Term
Management Plan
Measures

Low

18

Materiality issues identified by
Yamaha Motor

Yamaha Motor Co., Ltd. Integrated Report 2022

Importance to Yamaha MotorHigh

Yamaha Motor Co., Ltd. Integrated Report 2022

19Medium- to Long-Term Strategies

Important Societal Issues (Materiality Issues)

Review of 2022 Materiality Issues 
From 2021 to 2022, we reexamined the changes seen in theexternal environment and their impact on our businesses andsociety in general, reviewing the relevance of our previously identified important societal issues. As a result, we narrowed themdown to three: “environment and resources,” “transportation andindustry,” and “human capital management.” To arrive at these,
we changed “transportation, education, and industry” toEnvironment and resources

ImportantSocietalIssues“transportation and industry,” and moved issues concerning“innovation” into “environment and resources” and “transportation and industry,” since major elements of it are already includedin those issues. Furthermore, we reviewed the themes of ourefforts according to both the internal and external environment tofurther focus these efforts.

Risks and Opportunities

Risks• Tightening of regulations and declining net sales due toglobal warming• Declining profits due to rising costs• Negative impact on corporate image• Delays in the economic independence of developing
countries because of marine pollution• Impact of marine pollution on the fishing industry andmarine leisureOpportunities• Growing trend of EVs replacing existing forms of mobility• Heightening demand for smaller forms of mobility

ThemesYamaha Motor’s Approach

Achieving carbon
neutrality

A

R

T

Reduce the environmental burden of coreproducts that emit CO2, such as motorcycles and outboard motors

Transportation and industry

Please visit our corporate website for more information onmateriality issues, such as the figures for progress maderegarding materiality issues during the previous MediumTerm Management Plan.
https://global.yamaha-motor.com/about/csr/materiality-kpi/

Medium-term targets (2022 to 2024)• Reduce CO2 emissions from production by 52% (compared with 2010)• Deploy energy-saving and renewable energy facilities in at least 10 countries• Introduce carbon-free power generation at Yamaha Motor domestic offices and worksites•C onduct field testing of internal combustion engines that do not emit CO2 by utilizing carbon-neutral fuels*

Promoting product development and sales withlow environmental impact, such as electrification, to find uniquely Yamaha solutions• Release at least eight new electric motorcycles/scooters on the global market• Complete field testing evaluations for a new electric marine propulsion concept model by 2024
• Release at least six new electrically power-assisted bicycles on the global market* Hydrogen, synthetic liquid fuel, biofuel, etc.

Conservation ofmarine resources

R

T

Reduce the risk of damage to the marine
ecosystem and depletion of fisheryresources as a marine product industry
leaderPromote initiatives contributing to theelimination of fatal traffic accidents
involving motorcycles

Opportunities•G rowing demand for motorcycles due to rising populations
and incomes in developing countries•G reater need for smaller forms of automated mobility•A ddressing and supplementing the aging workforce andlabor shortages in the agriculture, fishing, and manufacturing industries• Increased automation with the development of AI
technologies•N ew demand for mobility such as CASE-equipped vehicles
and MaaS•O ffering solutions for the agricultural sector using robotics• Increased competitiveness due to the spurringof innovation

Vision for 2030
Reduced CO2 emissions (carbon intensity per
sales) from production activities by 80%(compared with 2010) and net zero by 2035

A

Risks
•R
 ising number of traffic accidents•R ise in traffic accidents caused by elderly people in developed nations• F ewer means of transportation in underpopulated areas•R educed competitiveness in the market and businessenvironment

SDGs

Furthermore, performance regarding materiality KPIs, which areindicators of ESG management, is part of the non-financial evaluation component of the Company’s executive remuneration
system, and overall progress is considered when determining
Companywide performance-based compensation for all officers,
including the president.

Safe and user-friendly
mobility for everyone

A

R

T

Utilize mobility technologies to provide
transportation infrastructure usable
by vulnerable groups, such as elderly
people, children, and those living in
depopulated areas

Improve convenience and aid in thecreation of employment opportunities by
providing assets for mobility services

Robotics for improved
work ease, comfort,
and precision

A

R

T

Create work environments where people
can dedicate their talents to work requiring the human hand, eye, and mind by
securing more available time via automation and laborsaving

Improved recyclability of boats• P rogress with R&D for FRP waste material recycling and achieve technical feasibility by 2024
• T ransition from FRP materials to naturally-derived materials and introduce sequentially with mass-production models
from 2024

Establishment of solutions contributing tosustainable fishery•C onduct field testing of fishery management solutions and launch a pilot project in 2024

Introduction of low-speed automated driving
systems has reduced the number of people withlittle or no access to public transportation

Expertise• Increase the number of YRA participants by 60% compared to the previous three years (220,000 people)
Technology•R &D of airbag technologies•D evelop a proximity risk warning system (front, rear, blind spot, lane deviation) to help avoid accidents and launchon the market within 2024

Reduced restrictions on movement throughlow-speed automated driving systems• F inalize automated driving technology for mobility service vehicles on select public roads and aim for implementation
in at least three locations by 2024

Offering new mobility options that make people
happy• Introduce a personal mobility product to the market in 2023 that offers an all-new mobility experience

Improved standard of living for people who
cannot afford a motorcycle and providing
services that enable them to earn a stable living• S tart Mobility as a Service businesses in India and Nigeria• S upport startups that provide safe transportation and logistics services and contribute to the access of fundamental
services
Manufacturing•C ommercialize automated transport between factories in 2022 with the aim of expanding the business overseas
by 2024•A
 chieve global sales of collaborative robots for automating tasks that require repetitive or heavy human laborby 2023

Successful commercialization of new technologies in the manufacturing, agriculture, andmedical sectors that are driving efficiency gains

Agriculture• S ell a system linking aircraft to smart agriculture as a project for the Ministry of Agriculture, Forestry and Fisheries• E stablish laborsaving technologies and businesses for cultivating and monitoring orchard crops in the United States,
Australia, and other countries

Human capitalmanagement

Medical• S ell new cell handling devices featuring even higher accuracy
 ffer antibody detection services to determine treatments appropriate for the patient
•O

20

Risks
• L oss of human resources due to reduced opportunities fordiverse human resources to play active roles• Increased competition for human resources
Opportunities•C reation of new opportunities by promoting diversity andinclusion• Improving vitality through the hire of diverse and talented
people from around the world

Yamaha Motor Co., Ltd. Integrated Report 2022

Diverse humanresources for increased
corporate strength

A

R

T

Maximize engagement and performanceby allocating talent in a timely and appropriate manner from a global perspective

Assigning the right person to the right assignment, regardless of gender, nationality, or
ethnicity, and moving the business forward while
respecting diverse views• Increase the ratio of local talent in executive positions at overseas subsidiaries to at least 55%• Implement around 10 global inter-subsidiary transfers by the end of 2024•R
 aise the ratio of women managers Groupwide to at least 13% by 2024
• Increase the ratio of a headquarters employee engagement score to at least 70%

Yamaha Motor Co., Ltd. Integrated Report 2022

21

Medium- to Long-Term Strategies

Medium-Term Management Plan (2022–2024)

Growth Strategies 

Review of Previous Medium-Term Management Plan (2019–2021) 
In setting out to realize the Long-Term Vision we proclaimed in 2018, the first three-year Medium-Term Management Plan from 2019 to
2021 comprised two main pillars: growth strategies aimed at achieving net sales of ¥2 trillion and an ROS of 9%, and the reinforcement ofmanagement foundations. While the management environment changed dramatically due to the COVID-19 pandemic and led to us
lowering the ¥2 trillion numerical target, we did achieve record-high net sales and operating income.
Growth Strategies 

Reinforcement of Management Foundations Despite differences in the growth of existing business fields by businessand area, there was a general surge in the recovery of demand from thesummer of 2020 onward from the environment shifting to one of “livingwith COVID-19.” The pandemic created an adverse business environment
fraught with lockdowns and difficulties in procurement, production, andlogistics operations. However, all our major subsidiaries and departments
made self-driven efforts to adapt under a management ethos of focusing
on the break-even point, engaging in flexible production, enacting various
cost reduction measures to offset rising costs, curtailing expenses, and soforth. These efforts ultimately increased our corporate resilience.
We have narrowed our development of new businesses down to four
fields: mobility services, low-speed automated vehicles, medical & healthcare, and agricultural automation; and have developed each business fromthe seed-sowing stage through to commercialization. Despite being unable
to take actions as planned due to restrictions on travel, in the fields ofmobility services and low-speed automated vehicles, we were able toprogress from the seed-sowing stage through to sales generation.

We have been working on our digital transformation (DX) and carrying out
structural reforms for our global production scheme. On the DX front, we
worked to overhaul our sales, development, and manufacturing departments
as well as our global enterprise resource planning (ERP) system, making
progress in each area. In overhauling the ERP system, we found it moredifficult than expected to transition our current methods and systems to the
new system, and are working to address the issues that emerged. Moreover,
our sales departments staged a rapid response to the lockdowns brought onby the pandemic by speedily launching e-commerce sites. They have also
introduced connected models and apps and begun analyzing the dataacquired. The development departments have endeavored to raise productivity via digital technologies, such as driving greater use of NX modelingsoftware for product development and utilizing model-based systems engineering (MBSE). Our manufacturing arm put forth its Smart Factory initiativeand is implementing AI-based data analysis methods, shifting to automation,and striving to save on labor.
Regarding the global structural reforms to our production system, we
made progress in consolidating or closing factories in Europe, Taiwan, andIndia, and took the first steps to optimize our production scheme in Japan.
With production demands changing day by day and production fluctuations
to respond to, things remain difficult, but we have still made steady progresswith our forward-looking reforms.

The main growth driver over the period of the new Medium-Term Management
Plan is our existing businesses. However, with societal demands and thebusiness environment pushing things like CASE and carbon neutrality, theexpected figures for future growth can greatly differ by business. We will
clarify and stratify the positioning of our businesses based on demand trends,
where we have competitive advantages, our strategies, and other factors,
and then strategically allocate management resources among them in ameasured way.

Reinforcement of Management Foundations 
We will continue promoting our DX initiatives and the structural reforms to
our production system. Our DX is employing digital technologies to bolster
productivity and efficiency and this has started to produce results, but wehave yet to reach the realm DX is originally about: transforming businessmodels and how we work by using digital technologies. As we build upon
the foundations that we successfully constructed under the previous
Medium-Term Management Plan, we will also spark a transformation in theways we work, the way we sell our products as the relationship with ourcustomers changes, and more.
In terms of structural reforms to our production system, we will continue
steering the optimization of our factories in Japan and at those comprising
our ASEAN production operations while carrying out reforms at our factories
in the United States. At the same time, we will incorporate measures to

Net Salesbusiness environment, the rising awareness of sustainability, and the needfor transformation, we will continue with the growth strategies and reinforcement of management foundations that we have pursued until now
under the new Medium-Term Management Plan, but while also strengthening our response to sustainability.

GrowthIn fiscal 2024

2,200 billion

Profitability(Three-year average)(¥ billion)
Towards achieving the Long-Term Vision

20

2,000

16

1,500

12

1,000

8

500

Previous Medium-Term
Management Plan

New Medium-Term
Management Plan

0

New Medium-Term
Management Plan

7.5%

Over

Efficiency(Three-year average)–8
Net sales

22

2010

2011

Operating income margin

Yamaha Motor Co., Ltd. Integrated Report 2022

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022
(Forecast)2024(Target)

ROE

ROIC

ROA*2

15% range

9% range

10% range

Financial and Non-Financial Indicators We are committed to growth, profitability, efficiency, and shareholder returns
as financial indicators, and have set aiming to create value in a new mobility
society as a non-financial indicator. Through our initiatives to achieve these,
we will simultaneously enhance our environmental, social, and economic
value, thereby ultimately raising our corporate value and making the
Yamaha brand shine.

Convert to
Carbon-Neutral
Powertrains• Develop a wide varietyof powertrains• L aunch 10+ BEV
models• P owertrains compatible
with alternative fuels

Shareholder
Returns

Cumulative total for thethree-year Medium-Term
Management Plan period

40% range*1 Average compound annual growth rate for FY2021–FY2024*2 ROA is calculated based on operating income

Shift toEnergy-Saving /Carbon-Neutral
Facilities

Accelerate
Co-Creation• Exploratory
development in new
mobility fields• Accelerate
exploration efforts(¥10 billion environmental tech fund)• Accelerate launch of
new businesses
contributing to a moresustainable world• Introduce energysaving and carbonneutral equipment to10+ countries• Begin using carbonfree electricity in Japan

Connecting with People andThriving as a Company

Safety Riding andPeace of Mind•B
 olster safety riding

Total Payout Ratio(Three-year average)–4

Initiatives to reduce greenhouse gas (GHG) emissions to counter climatechange are an unavoidable issue for the Company as a manufacturer andseller of vehicles for personal mobility. Our measures include developing not
only all-electric vehicles but also fuel-cell vehicles driven by hydrogen, andinternal combustion engines powered by carbon-neutral fuels. Technologicalinnovations from here onward are also expected to accelerate the practicalapplication of these technologies and give birth to new methods for reducing
GHGs. Meanwhile, we are pressing forward with our work to develop practical applications for what we see on the horizon right now—electric powertrains, fuel cells, and carbon-neutral fuels—while simultaneously exploringnew possibilities as we proceed step by step towards our target of carbon
neutrality by 2050.

9%

Capital Efficiency (approx. 7% WACC)

4
0

2009

7%

Previous Medium-Term
Management Plan

(%)

2,500

2008

Over

Operating Income Margin

Net Sales / Operating Income Margin

2007

CAGR*1

Over ¥

Basic Policies
We will strengthen the earning power of our core businesses,
invest in new and growing businesses that contribute to the creation of a sustainable world, andaccelerate digital initiatives and co-creation to boost our growth potential.

Initiatives for Sustainability Contributing to aMore Sustainable World

Financial Indicators

Overview of the New Medium-Term Management Plan 
Under our corporate mission to be a Kando Creating Company, we will
work to realize our Long-Term Vision of ART for Human Possibilities bycarrying out our new Medium-Term Management Plan from 2022, as phasetwo of the Company’s ongoing transformation. In recognition of thenumerous challenges that must be addressed, including changes in theaddress immediate business continuity plan (BCP) issues and thereby raise theoverall level of our BCP in the fields of production and procurement.

support features•E xpand support andactivities for improving user riding skills(1.6x more YRA
participants)*3

Accelerate Digital
Transformation•C onnect withcustomers worldwide• 4.7 million Yamaha
Motor ID registrants)• Creation of DX
promotion personnel(1,200 people by2024)

Increase Global
Workforce Agility• Foster employee
engagement globally• Introduce global
engagement indicators(improve by 10% at
headquarters)*3 Yamaha Riding Academy participants (three-year cumulative)

Yamaha Motor Co., Ltd. Integrated Report 2022

23

Medium- to Long-Term Strategies

Medium-Term Management Plan (2022–2024)

Direction of Our Business Portfolio Strategic Business Fields 

For 2022 onward, we have clarified and stratified the positioning of ourbusinesses based on sales growth rate and ROIC, and will manage ourbusiness portfolio to appropriately allocate management resources.
The new business and growth businesses are positioned as “strategic
business fields,” to which we will strategically allocate management
resources to grow them into future core businesses. Our core businesses are
the motorcycle business, recreational vehicle (RV) business, marine products

business, and golf car business. We aim to increase their profitability as ourcurrent sources of cash generation. Our KPI for these is operating income
margin, for which we are targeting a three-year average of 11%. We
intend to identify the businesses that require structural reforms from aperspective of scale and profitability over the period of the new MediumTerm Management Plan.

Strategic Business Fields
New Businesses

P.26–27High

New Business Fields

Generate net sales through commercialization¥30 billion by FY2024

Sales growth rate

Medical & healthcare / Agriculture

New Mobility Fields

P.25

Robotics Business*1
SPV Business

Mobility services / Low-speed automated vehicles /Strengthen our
structure to
generate
net sales

Growth Businesses

Increase
investments andexpand scale

Expand scale (Sales growth rate)
CAGR FY2018–2021 14%

FY2021–2024 19%

Low

High
ROIC

Structural Reforms

Determinebusiness
direction

Core Businesses

P.29, 31, 33

Motorcycles / Marine Products
Recreational Vehicles / Golf Cars
Generate stable cash flows
ROS FY2019–2021 9.6%

Generator and Multipurpose Engine Business
Determine the direction of thebusiness from the perspective of
scale and profitability

Generate cash flows
Scale × profitability(Sales) (ROIC)

Maintain /improve
profitability

FY2022–2024 11%*2
Low

Expansion of Resource Investments in Strategic Business Fields 
Based on this portfolio management, we will expand investment of resources in our strategic business fields, aiming to increase development and growth strategy expenses by 1.6 times and capital investment by 1.8 times, compared with the period of the previous Medium-Term Management Plan.

Capital Investment Plan(Three-Year Total)¥280.0 billion¥400.0 billion¥323.4 billion
73.6

1.6x

115.0

Strategic
business fields

45.0¥178.9 billion

181.1

1.2x

225.0

Core businesses

Strategic
business fields

1.8x

24.4

Robotics BusinessSupporting the Foundations of a Digital World, Further Expanding Business Scale as a Growth Business, andStrengthening Profitability
The markets for surface mount technology (SMT) systems, small industrial
robots, and semiconductor back-end processing equipment are projected to
grow at an average rate of 7% per annum. In these growing markets that
support the infrastructure of an increasingly digital society, we will further
expand our business scale and fields of operation to strengthen our earnings capability.
Yamaha Robotics Holdings Co., Ltd. (YRH) was acquired during theprevious Medium-Term Management Plan and we have completed thepost-merger integration. During the three years starting from 2022, we aretargeting an increase in overall earnings capability with a CAGR of 16% fornet sales through synergies with YRH, and an operating income contribution rate of 25% from YRH as well.
One of the first major steps we will take is maximizing synergies as a
total supplier. On the product front, we will strengthen product competitiveness by driving our platform strategy. Furthermore, we will focus on
introducing new models in the high-speed SMT model domain while in thefield of small industrial robots, we will enter the market for cobots. On thesales front, we will enhance the appeal of our One-stop Smart Solution,
while working to capture major accounts through a dedicated client-based
sales team that covers multiple regions and offerings.
Our second initiative is to strengthen manufacturing, sales, technology,
and service structures. We will make investments to raise production

capacity with an eye on expanding the business by increasing our factory’s
production area by 1.8 times by 2024. We will also further improve on ourstrengths in technologies, sales, and services carefully tailored to client
worksites and operations.
Through these two initiatives, we will raise the number of businessnegotiations, increase the unit price per project, and raise the rate of placedorders, aiming to expand our business and strengthen profitability.

Robotics Business Contributions
Net Sales

Operating Income
YRH profit
contribution

CAGR 16%

25%
YRH
2021

2024

10%

YRH

2021

2024

SPV Business
Capturing Market Expansion and Achieving Growth through Synergies between e-Kit Customization and New Models

Financial Services business acting tosupport core businesses

Note:	The reportable segment classification of existing businesses under business portfolio management is as follows:
Land Mobility: Motorcycle business, Recreational Vehicles business, Smart Power Vehicles business
Other Products: Golf car business, generator and multipurpose engine business*1 Including surface mounters, semiconductor manufacturing equipment, industrial robots, and industrial-use unmanned helicopters*2 ROS is calculated using figures that do not include corporate expenses

Development and Growth Strategy Expenses Plan(Three-Year Total)

Growth Businesses

140.0Core businesses

The global COVID-19 pandemic caused a significant shift in human mobility
patterns, towards focusing on closer destinations and avoiding crowded
situations. This has led to a sharp increase in demand for compact personal
mobility. In addition, rising environmental awareness has driven 18%
annual growth in the e-Bike market in Japan, the United States, and Europe
and this market growth is expected to continue towards 2030. In Japan,
the United States and Europe, market scale in 2024 is expected to surpass
10 million units, and the Company will focus on the top three e-Bike
categories: E-CITY, E-TREK, and E-MTB models.
We will respond to this market expansion by harnessing synergies
between e-Kit customization and the launch of new models, aiming forscale expansion outpacing market growth in order to double net sales. We
are projecting an annual unit sales growth rate of 22%. In order to stage
this business scale expansion faster than the market’s growth, we will begin
customizing our e-Kits, conducting co-development of e-Kits with the
e-bike manufacturers that use them, start local production of drive units in
Europe where the market is the largest, and aim to acquire new overseas
e-Kit customers by providing direct services via our own dealer network in
Europe. In addition, we will aim to double net sales by developing newcompact, lightweight, quiet, high-value-added drive units and expanding
our lineup with mid- to high-range Yamaha-brand e-bikes.

Market Potential

Total demand in Japan, the United States, and Europe(Yamaha Motor forecast)

CAGR
18%

2020

2021

Consistent market
growth toward 2030

2022

2023

2024

2030

Key Themes

Scale Expansion Exceeding Market Growth (CAGR 22%)
• Acquire new overseas e-Kit* customers

Double Net Sales• High-value-added e-Kits that are compact, lightweight, and quiet• Expansion of mid-range and high-end Yamaha-brand model lineup

1.4x
97.3
95.0

24

68.7

60.0

2019–2021

2022–2024

Yamaha Motor Co., Ltd. Integrated Report 2022

Others

57.2
18.5
2019–2021

Platform reforms

3.2x

Others* e-Kit: e-Bike Systems (e-bike drive units and peripheral components)

60.0
2022–2024

Yamaha Motor Co., Ltd. Integrated Report 2022

25

Medium- to Long-Term Strategies

Medium-Term Management Plan (2022–2024)

New Businesses

Low-Speed Automated Vehicles

Co-creation

Aiming to create added value through mobility and enrich people’s lifestyles

Background of and Policy for New Businesses
Yamaha Motor began the manufacture and sale of motorcycles in 1955,
then using its small-engine technology to diversify into offering products forthe water, snow, and in the air as it expanded its business. With the diversification of its products and business expansion, the Company’s employees
have always been motivated by a desire to create new dimensions of fun
and a desire to solve customers’ issues. By moving out onto the front lines
around the world and interacting with local colleagues and customers, wehave developed better products. Our outboard motors are a good exampleof this approach. While we are a market leader today, our products were at
one time subject to endless complaints and had a terrible reputation as
machines leading to financial losses for the company. So we went out onto
the waters of Japan and overseas, recording the different sights, sounds,
and smells picked up by our senses, and then working with onsite colleagues to make repeated improvements in order to achieve the market
position we enjoy today. This kind of thinking is deeply embedded in how
we search for and invest in external partners through Yamaha Motor
Ventures, Inc., which works on developing new businesses for theCompany. Through joint ventures with partners that share our aspirations,
we are working to create new value by leveraging each other’s strengths
toward our corporate mission of “Offering new excitement and a more
fulfilling life for people all over the world.”

The new businesses we are working on are in fields that contribute to
the resolution of our materiality issues: “environment and resources,”“transportation and industry,” and “human capital management.” Ourinitiatives contribute to the three focus areas under the Long-Term Vision:
Advancing Robotics, Rethinking Solution, and Transforming Mobility.
Furthermore, under the new Medium-Term Management Plan, we havepositioned new businesses under our strategic business fields, aiming tostrengthen our systems for creating future core businesses and to generatesales. Specifically, we are working towards commercialization aiming for net
sales of ¥30.0 billion for mobility services and low-speed automated vehicles by 2024 and a contribution to our sales from the medical & healthcare
and agricultural automation fields by 2030.
The Company has a strong tradition of exploring and understanding
issues that it should solve through dialogue with numerous partners atwork in the field around the world. It is personnel who have this experiencethat are the source of new value creation. The four fields in our new businesses are also areas where we aim to create value through dialogue withexternal partners, and in doing so, we will develop human resources aroundthe globe who are able to continuously create future businesses in a sustainable manner. This is another reason why we have positioned our new
businesses as strategic business fields and are actively allocating management resources to them as we aim to achieve the aforementioned targets.

Transition to sales acquisition stage

Accelerate business development

Mobility services / Low-speed automated vehicles

Aim for ¥30.0 billion in
net sales by fiscal 2024

Push initiatives toward commercialization
Medical & healthcare / Agricultural automation

Mobility Services
Creating employment opportunities through business and contributing to a better quality of life for people

Co-creation

Local platform operators

Societal Issues

Core Technologies

Focus Areas

Job creation

Asset management expertise cultivated in the
Financial Services business andconnected technologies

Emerging markets

Societal Issues

Mobility needs

Local governmentsCore Technologies

Focus Areas

Chassis development expertise garneredthrough golf cars

Automation of indoor/outdoor transport at plants
Mobility for people with little to no access topublic transportation, such as seniors, children, andresidents of depopulated areas

Commercializing Transport of Goods via Joint Ventures andConducting Feasibility Studies for Public Transit Options
By establishing automated driving technologies under certain conditions, we aim to save labor in logistics and solve mobility
issues, such as in areas with no access to public transportation. In transporting goods, we have been conducting real-world
testing at several Yamaha Motor plants through eve autonomy, Inc., a joint venture we have with Tier IV, Inc. And in the first caseof implementation outside our own plants, we have begun field testing at the Anesaki Works factory of Prime Polymer Co., Ltd.
We plan to start providing services officially around autumn of 2022. In transporting people, we have been promoting community building employing “slow mobility” and creating uniquely Yamaha value in mobility by providing compact, low-speed formsof mobility such as our electric carts for first/last-mile mobility solutions. In doing so, we aim to solve important societal issues
such as transportation, health, and industrial development, as well as introduce fun to the value of mobility itself. In 2021 we
provided vehicles for field tests in 16 locations across Japan.

Medical & Healthcare

Co-creation

Reducing the burden on researchers with reliable technology and contributing to advances in the medical field

Industry–academia
collaborations

Societal Issues

Core Technologies

Focus Areas

Preventive medical andhealthcare

Ultra-high-speed, high-precision picking andimaging technology forsurface mounting systems

Medical and research equipment
Research and drug discovery automation

Creating Synergies with the Medical Device Business in the Field of Laboratory Automation
The impact of the COVID-19 pandemic on the cellular research and diagnostic fields has propelled individualized treatments suchas cellular medicine and gene therapy forward. Moreover, with the aging of populations in developed economies, the market forcontracted pharmaceutical development and contracted pharmaceutical manufacturing is expanding. Yamaha Motor aims todevelop and expand the market by launching services that target both transmissible diseases and aging. In the field of healthcare
and research equipment, the CELL HANDLER™ combines picking and imaging technologies to realize cell handling that was notpossible with conventional methods. In addition to greater market penetration of the CELL HANDLER™ and enhancement of the
product, we will also launch services in the research and drug discovery automation fields, and work towards commercializingthem. Furthermore, in addition to sales of the unit itself, we will also collaborate with medical institutions to start an antibody
profiling service that can be used to detect antibodies and use them in diagnosis and drug selection.

Agricultural Automation
Achieve increased productivity, laborsaving, and automation in industrial fields

Co-creation

Producers

Societal Issues

Core Technologies

Focus Areas

Labor shortage in
agriculture

Chassis development expertise
Robotics expertise

High-value-added crop industry
Advanced countries with high labor costs

Expanding Asset Management Business with Local Partners and Collaborators in India and Nigeria
Among our customers in emerging markets who work with motorcycles, a certain number of them borrow motorcycles fromtheir employer and provide labor. We have established an environment that enables the use of motorcycles without purchasing
them as a business, and we are working in collaboration with startups to build an ecosystem that creates jobs. In 2021, weestablished new companies in India and Nigeria, and started an asset management business as a local joint venture. This scheme
enables customers to boost their standard of living while securing a stable income by acquiring mobility. At the same time, theCompany can increase its sales as a service-based business for customers who have previously been unable to purchase a motorcycle with their own funds.

26

Yamaha Motor Co., Ltd. Integrated Report 2022

Collaborate with Agri-Startups and Adopt a Strategic Approach for the Value Chain
In saving labor in the agriculture field, we aim to provide solutions that combine our chassis development and robotics
expertise with AI, and maximize value through the cultivation, storage, and distribution chain. Through the activities of
Yamaha Motor Ventures, Inc., which deals in corporate venture capital, we have invested in startups in the field of smart
agriculture and have fostered joint development. In the United States, we will strengthen our collaboration with investee
companies and build supply and service systems with an eye on expanding the business during the current Medium-Term
Management Plan period.

Yamaha Motor Co., Ltd. Integrated Report 2022

27

Medium- to Long-Term Strategies

Land Mobility

Future Measures 

Creating New Kando through Synergy between Motorcycles,
Recreational Vehicles, and Smart Power Vehicles•W orldwide customer base that trusts Yamaha technology and products•D iverse and global product lineup combining both high performance and quality throughour cultivated core technologies

Strengths•E stablished global brand position for motorcycles•P edigree of constantly pioneering new markets by creating new forms of mobility•E xpansion of middle-income markets in ASEAN and other emerging economies•G lobal rollout of models compliant with emissions regulations

Opportunities•E volution of marketing through digital technologies• Surge in outdoor family recreation

For fiscal 2022, we expect to see continued strong demand in Europe
for motorcycles for developed markets, and an ongoing recovery indemand in emerging markets. The Company plans to increase production and sales, but there are risks, such as high raw material prices andsupply shortages of semiconductors and other components. We will
therefore continue working to build stable supply systems, pass on
price increases, and improve cost efficiency. Moreover, in the recreational vehicles business, we plan to increase our brand strength andexpand market share in the recreational segment, our main focus.
There are risks in the form of component shortages and logistics issues
in North America where our production facilities are located, but wewill strive to minimize missed sales opportunities as we did last year. In
the SPV business, despite the same risk of component supply shortages as the motorcycle business, demand is projected to continue
expanding and we are forecasting sales growth through an expansionof sales of both OEM and Yamaha-brand products.
From a medium-term perspective, one of our themes is to generatesynergies between the three businesses of motorcycles, RVs, and SPVs.
Our goal is to deliver solid profits with our core business of motorcycles and double the sales of SPVs, a growth business for us. By
generating synergies, we will deliver new Kando in mobility.

• Prolonged pressure on product supply networks due to pandemic and geopolitical risks• Rapid global advance of carbon neutral regulations

Risks

Core Business (Medium-Term Strategy of Our Business Portfolio)• Tighter emissions regulations in each country• Structural shift in the industry from new technologies and competitors

Motorcycle Business: Increasing Earnings Power in Emerging Markets with the Premium Segment Strategy

Results for Fiscal 2021 
Net sales for fiscal 2021 were ¥1,179.7 billion and operating income
was ¥68.7 billion. The motorcycle business in developed markets
experienced continued solid demand, while progress on structuralreforms steadily reduced losses. Furthermore, in the motorcycle business in emerging markets, although demand has yet to recover to2019 levels in Southeast Asia and India, the implementation of our
premium segment strategy led to the average price per unit increasing.

In the RV business, operations returned to profitability due to thegrowth in demand for outdoor recreation and the flagship Wolverine
RMAX Series models for the recreational segment. In the SPV business,
we have steadily increased sales amid market expansion mainly inEurope—the largest market—where there has been a reevaluation of
the advantages of bicycles.

Net Sales / Operating Income / Operating Income Margin

Net Sales Breakdown by
Main Product Category(Fiscal 2021)(¥ billion)

(¥ billion)

1,500

90

5.8%

5.1%

1,000

60

Recreational
vehicles

9.6%

Smart Power Vehicles

4.3%

One of the themes in our new Medium-Term Management Plan is to“Leverage the recovery in demand and our premium segment strategy
to improve profitability.”
Overall demand in Asia has yet to recover to pre-pandemic 2019
levels. Our first step over the next three years will be to accelerate
initiatives in anticipation of a recovery in demand. In ASEAN markets
and in India, we will target the upper-middle class, which is expected
to grow rapidly over the next 10 years, and ramp up our premium
segment strategy even more than before to solidify our advantages. As
we aim for higher unit sales growth, we will carefully map out strategic segments in each country and not only offer attractive products
but also launch stronger brand marketing initiatives to create firm ties
with customers.

For customers in this segment who, through digital media, value
individuality, and self-actualization, we will combine the digital andreal worlds to implement our One-to-One Marketing approach, targeting each individual customer in order to expand our range of touchpoints and to strengthen the relationship with our customers. To
accomplish this, we want to expand sales of connected motorcycles to
2.5 million units by 2024. We also plan to roughly double the numberof premium dealerships in India, which serve as real points of contact
with our customers.
As we aim to improve profitability by forging ties between customers and the Yamaha brand by using digital technologies, we will accelerate the implementation of our premium segment strategy targetingthe upper-middle class in India and ASEAN markets.

Market Potential

Premium Segment Strategy

Developed market
motorcycle business

21.1%

Post-COVID demand recovery
Total demand in Asia (million units)

500

40

30

2.0%

–20%

30
0
Net sales

2020

2021

Operating income (right axis)

2022 (Forecast)0

Operating income margin

Philippines: Premium AT models0

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

28

Motorcycles for
emerging markets

Despite the effects of a resurgence in COVID-19 infections, increased unit sales of premium
segment models helped improve the model mix.

Honda, Suzuki, Kawasaki, Hero, Bajaj

ATVs / ROVs

The North American market accounts for the majority of demand. Despite the resurgence of COVID-19 infections, the strong outdoor recreation demand continued.

Polaris, BRP, Honda, Kawasaki

Yamaha Motor is the pioneer of e-Bikes, and the current reevaluation of the advantages
bicycles have for getting to and from nurseries, schools, and offices helped keep sales ofcomplete Yamaha-brand bicycles for Japan and e-Kits (electrically power-assisted bicycle
drive units and peripheral components) for Europe strong.

Panasonic, Bosch, Shimano

Yamaha Motor Co., Ltd. Integrated Report 2022

2021

2024

Strengthen customer touchpoints with digital tools（India / Indonesia / Philippines）
100

Upper class80

Approx.
1.8xUpper-middle class60

Middle classRealize One-to-One Marketing
Expand sales of connected motorcycles*2
Fiscal 2021 500K units Fiscal 2024 2.5M units
Promote store visits and aftersales support using smartphone apps

Strengthen premium brand shops

40
20

2.0x
1.3x
1.5x

Integrated Marketing (Digital × Real World)
2020

Expansion of the upper-middle class*1 in Asia

Main competitors

Electrically power-assisted
bicycles and OEM drive units

India: Premium sport models

+37%

10

Overview of Primary Products and Main Competitors
Market and conditions at Yamaha Motor

Unit sales growth in strategic segments (compared with fiscal 2021)

Indonesia: Premium AT models2019

Growth in overall demand amid reevaluation of the advantages of motorcycles. Demandin the second half of 2021 recovered from the impacts of lockdowns imposed in the firsthalf and unit sales increased overall. On the other hand, securing adequate supply waschallenging due to the shortages of semiconductors and shipping containers.

Focus on strategic segments in major Asian markets

20

Emerging market
motorcycle business

65.0%

Motorcycles fordeveloped markets(India / ASEAN / Taiwan)

India: Open more Blue Square stores

Low-income class

Number of dealerships: approx. 2x (compared with 2021)

0

2000

2021

2030

*1 Annual household disposable income of US$15,000–30,000 *2 In Indian, ASEAN, and Taiwanese markets
Note: Upper-middle class data from Euromonitor International

Yamaha Motor Co., Ltd. Integrated Report 2022

29

Medium- to Long-Term Strategies

Marine Products

Future Measures 

Reliable and Rich Marine Life—A Business that Further Increases the Value of the Ocean•U nquestioned product reliability centered on integrated control technologies•O verall business strength supported by wide-ranging business domains and an
expansive product lineup

Strengths•S ales and service capabilities spanning the global market•G rowing demand for large outboard motors centered on developed markets•E xpansion of peripheral equipment business due to advances with integrated
control technologies

Opportunities•C hanging sense of value pertaining to marine recreation spurred by staycation demand

Under the business policies of our new Medium-Term Management
Plan, in 2022, we aim to strengthen both the competitiveness of our
products and the earnings power of our businesses, while expanding
the range of value we offer customers.
In our growth fields, we aim to quickly bring CASE-related products
to market by accelerating development of integrated control technologies for boats. We will do this by strengthening the role of R&D in the
United States to supplement our existing development functions andclosely coordinate with Siren Marine, which we recently acquired. With
regard to our existing offerings for outboard motors and personal
watercraft—core assets of the Marine Products business—we will

expand our lineup by proceeding with development of attractive
products that meet customer needs. Moreover, we will continue toincrease production capacity in order to meet the strong market
demand, operating at maximum capacity and ensuring reliable productsupply. In 2022, we expect to surpass last year’s record-high performance with net sales of ¥432.0 billion and an operating income of¥90.0 billion.
Despite the continuing rapid changes in our business environment,
the Marine Long-Term Vision remains the same. We will follow thecoordinates set out by the Vision to carry out our growth strategies
and aim to realize a “reliable and rich marine life.”• Dramatic market changes against the backdrop of climate change, rapid technologicalinnovation, etc.

Risks

• Supply chain disruptions and high costs for raw materials and logistics

Core Business (Medium-Term Strategy of Our Business Portfolio)• Rapid changes in exchange rates, regulations, etc.

Marine Products: Implement our Marine CASE strategy to expand the range of value we offer and to maintain/
strengthen our high-profit structure

Results for Fiscal 2021 
In 2021, the final year of the previous Medium-Term Management
Plan, we worked to strengthen the high-profit business structure andbuild platforms for sustainable growth.
Under the system supplier strategy, which we positioned as a
growth strategy, we started full-scale introduction of the Helm
Master™ EX and expanded sales of peripheral equipment. In addition,
we acquired smart boat technology company Siren Marine, Inc. in the
United States to further expand our business. In the outboard motor
business, the bedrock of our high-profit structure, we have continued

working to increase production capacity to meet the high demand forlarge outboards, driven by staycations. In addition, as a first step indeveloping new products related to the future target of carbon neutrality, we launched our HARMO next-generation electric boat control
system in Europe.
By steadily carrying out these activities, we achieved our annual
business targets with net sales of ¥391.1 billion and an operating
income of ¥76.8 billion, despite supply chain disruptions such as
shipping container shortages and component provision delays.

Net Sales / Operating Income / Operating Income Margin

Net Sales Breakdown by
Main Product Category(Fiscal 2021)(¥ billion)

(¥ billion)

600
450

20.8%
19.6%

15.4%

50

150

2020

2021

Operating income (right axis)

2022 (Forecast)Outboard motors

45.6%

54.4%

0

Operating income margin

Maintain and strengthen our
high-profit structureMarket and conditions at Yamaha Motor

Main competitors

Outboard motors

Outdoor and family recreation demand surged after lockdowns, mainly in developed
markets. We will increase production capacity to meet the increase in demand.

Mercury Marine, Suzuki, Honda, Tohatsu

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

Personal watercraft

The North American market accounts for the majority of demand and is growing in scale
yearly as uses for personal watercraft broaden. We will strengthen development ofhigh-value-added products.

BRP, Kawasaki

Yamaha Motor Co., Ltd. Integrated Report 2022

Transform our customers’ marine
lifestyles into experiences withgreater comfort and peace of mind

Connected

Autonomous

SharedElectric

Comfort

Comfort / Easy

Experiences

ComfortEnhancing Our Business CompetitivenessOverview of Primary Products and Main Competitors

30

Marine CASE

Expand the range of value we offer

Personal watercraft,boats, etc.

250Second, is enhancing our business competitiveness. In this area, wewill maintain and strengthen our high-profit structure, and by bolstering
our lineup of large outboards with new models, we will further expand
our product lineup and increase the sales ratio of large outboard models
to 30%. In addition to this, we will continue increasing our production
capacity for these large outboards as well as personal watercraft.
Finally, we will reinforce our business foundations by strengthening
the R&D role of the United States and further enhancing our productdevelopment arrangement in order to be flexible and thrive in this era of
rapid change.
We will evolve into a business that further increases the value of theocean by maintaining and expanding our strengths while also achieving
future growth.

Growth Strategies
75

300

Net sales

100

By implementing the Marine CASE strategy, the Long-Term Vision for
the Marine Products business is to expand the range of value it offers
and maintain/strengthen its high profit structure while also allocating
resources for business growth at the same time. To achieve this, we will
introduce the following three measures over the next three years.
For our growth strategies, we will carry out the Marine CASE strategy
to transform our customers’ marine lifestyles into experiences withgreater comfort and peace of mind. In particular, for the “C” or“Connected” part of CASE, we will work together with Siren Marine, acompany in the United States we acquired last year, to develop systems
allowing customers to remotely monitor and operate their boats fromtheir smartphones. This will provide them with greater peace of mind
and help expand the value we offer.

Bolster large outboard lineups
Increase the sales ratio of large outboard models to 30%
Increase production capacity
Large outboard motors
Personal watercraft

+20%
+27%

Reinforce Our Business Foundations

MarineLong-Term Vision
Reliable andrich marine life:
Toward further
increasing thevalue of the ocean

Organizational culture that connects change to growth
Strengthen R&D role in the United States

Maintain our high-profit structure and allocate resources for growth at the same time

Yamaha Motor Co., Ltd. Integrated Report 202231Medium- to Long-Term Strategies

Robotics

Financial Services

Results for Fiscal 2021 

Putting Kando into the Hands of Clients with Robotics—Delivering Optimal Solutions•H igh-quality, low-cost, and timely provision of products and services throughunified production, sales, and technology operations•A mixture of technologies via business integration with YRH and provision of complete
solutions for clients•C o-creative capacities founded on strong relationships with business partners

Strengths•G rowing need for automation due to labor shortages in Japan andrising labor costs in emerging markets•P rogression of digitalization accompanying the development of new fields such as IoT, 5G,
and CASE vehicles, and advances in automation

Opportunities• Difficulty in procuring semiconductors and other components as well as soaring prices• Deterioration of demand due to changes in world affairs• Intensifying competition resulting from new players entering the market

Risks

Results for Fiscal 2021 

Future Measures 

Net sales in fiscal 2021 increased 44.9% year on year to ¥120.3 billion
and operating income was ¥17.6 billion. During the first half, capital
investment became more active as the effects of COVID-19 subsided,
particularly in China. Unit sales of surface mounters and industrial robots
increased due to strong sales in Japan, Europe, and the United States inthe second half of the fiscal year. In addition, Yamaha Robotics Holdings
Co., Ltd. also returned to profitability due to strong sales and structuralreform effects. Sales of industrial-use unmanned helicopters and drones
increased due to broader applications and the acquisition of a
distributor business.

Future Measures 

Demand in China and other developed markets is expected to recover.
To promote further business growth, we will make proactive resource
investments—including the expansion of our production capabilities—andaccelerate the creation of business integration synergies, such as the development of new products based on the platform strategy and cross-selling.
In the unmanned systems field, we will proceed with the development of new unmanned industrial-use helicopter and agricultural drone
models. We will also kick off the manufacturing of small, jointly developed drones for aerial photography and filming. In addition, we will
promote further technological development through collaborations withoutside partners.
Growth Businesses (Measures in the Medium-Term Management Plan)

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

14.3%

150

14.7%

(¥ billion)

20

120

16

90

12

60
30

8
4.0%

YamahaRobotics Holdings
Co., Ltd.

SMT-related
equipment,
industrial robots,
unmanned
systems

27.2%

72.8%

0
2020

2021

Operating income (right axis)

Operating income margin

Market and conditions at Yamaha Motor

Main competitors

Surface mounting technology(SMT)-related equipment

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 arestrengthening model variations while pursuing both product and service commonalities to expand ourbusiness scale and reinforce our profitability.

Epson, Mitsubishi, Denso,
IAI, Inovance

Unmanned industrial-use
helicopters and drones

We are launching multirotor drones in addition to our proven unmanned helicopters and willcontribute to laborsavings in agriculture. We will also promote expanded applications for unmanned
vehicles in fields outside of agriculture, such as logistics and field surveys.

DJI

Semiconductor
post-processing equipment

Semiconductors are becoming increasingly scarce. We are working to further build our customer baseby 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 2022(¥ billion)

(¥ billion)

60

30
39.4%

40

25.5%
16.4%

20

0
Net sales

2020

20

10

2021

Operating income (right axis)

2022 (Forecast)0

Operating income margin

Financial Services: Building the frameworks for supporting existing businesses

2022 (Forecast)

Overview of Primary Products and Main Competitors

32

Net Sales / Operating Income / Operating Income Margin

Core Business (Medium-Term Strategy of Our Business Portfolio)

40
Net sales

Net Sales Breakdown by
Main Product Category(Fiscal 2021)

P.25

In 2022, an improvement in market inventories is expected to see arecovery in the scale of receivables from wholesale financing, and we
aim to expand the outstanding receivables balance by 14.3% year on
year to ¥430.0 billion. Meanwhile, operating income will decrease
relative to the previous year in the absence of a one-time increase
factor, but the operating income margin is expected to maintain ahigh level at 25.5%. With this, we are aiming to reach the target ROA
of 3% in the new Medium-Term Management Plan covering2022 to 2024.
We are working to further strengthen systems for collaboration withproduct-selling businesses in every region in order to capture newcustomers and encourage them to continue using our products andfinancial services. Furthermore, we will also aim to establish financing
businesses in new markets and engage in new development by
expanding the range of products eligible for financing, as well as
strengthen cooperation between major subsidiaries in order to establish a global business management system.

The consolidated outstanding receivables balance rose to ¥376.2
billion, as an increase in receivables from retailers absorbed a decrease
in receivables from wholesalers due to shrinking market inventories. In
terms of profit, operating income was ¥19.1 billion, partly reflecting
the one-time impact of a reversal of allowance for doubtful accounts.
The significant increase in profitability reflected factors such as theenhancement of financial services business foundations in each region,
centered on the expansion in scale of the outstanding receivables
balance via a provision of a full line of services in the United States
starting in 2020.
With the emergence of new trends in sales financing services,
including the shift to online sales due to COVID-19, we worked tostrengthen the ties between dealerships and customers while steadily
promoting the sharing of business strategies and management
approaches as well as standardizing and enhancing them in regions
worldwide. The Financial Services business also became independent ofother sections and began to disclose its business results information.

Building upon the expansion of business domains and regions carriedout under the previous Medium-Term Management Plan, such as thelaunch of full-line services in the United States and the launch ofservices in France, under the new Medium-Term Management Plan, we
will focus on strengthening our global business management foundations and securing profitability based on this move. We will ramp up
the roles and management systems in each region, while promoting
the development of business in new regions and expanding the rangeof eligible products. At the same time, we will proceed with establishing functions and systems for the management and development of
the business globally, such as sharing the use of resources between
Group companies, from knowledge and expertise to human resources.
Through initiatives such as these, by 2024, the final year of the new
Medium-Term Management Plan, we aim to grow the outstanding

receivables balance to a scale of ¥500.0 billion and maintain ROA in
the 3.0% range. Moreover, we will disclose our business results so that
more stakeholders can better understand our business.

Build a System for Global Business andAim for ROA in the 3% Range• Regional expansion in South America, Europe, etc.
• Business domain expansion to marine products• Build a global business management system• Independent disclosure of Financial Services business results

Yamaha Motor Co., Ltd. Integrated Report 2022

33

Medium- to Long-Term Strategies

From the Director in Charge of Corporate Planning and Financial Affairs

The new Medium-Term Management Plan calls for allocating ¥480
billion in resources for building business foundations, core businesses,
and strategic business fields, leveraging these to accelerate future
growth initiatives and our work toward carbon neutrality. Furthermore,
our shareholder return policy will still emphasize making consistentand ongoing dividend payments but while also taking into consideration the outlook for business performance and investments for future
growth. We will also distribute returns to shareholders in a flexible way
based on the scale of our cash flows, with a target total payout ratio in
the 40% range for the cumulative three-year period of the new MediumTerm Management Plan. The acquisition of treasury stock announced
following the Ordinary General Meeting of Shareholders
in March 2022 was a show of management’s firm commitment togenerating shareholder returns.

Based on our business portfolio
management, we will push with our growthinvestments and further our progress towardachieving our Long-Term Vision.

Motofumi Shitara
Director and Senior Executive Officer

Cash Flows
Cash-In

Cash-Out
Shareholder returns¥160 billion –Growth investments¥100 billion
Working capital¥100 billion

Net income¥400 billion –Depreciation expenses¥170 billion –Capital expenditures¥280 billion

Invest ¥480 billion into building business foundations
and our core and strategic businesses

Review of the Previous Medium-Term Management Plan
Fiscal 2021 was the final year of the previous Medium-Term
Management Plan (2019–2021) and the Company posted the highest
performance figures in its history, with net sales of ¥1,812.5 billion, an
operating income of ¥182.3 billion, and a net income attributable toowners of parent of ¥155.6 billion. In terms of the financial indicators
we set as KPIs, the Company in fiscal 2021 achieved an operating
income ratio of 10.1%, a three-year average ROE of 12.8%, and an
equity ratio of 46.9%.
However, Yamaha Motor’s corporate mission is not to maximize
profits but to be a Kando Creating Company, and it can be said thatthe new Medium-Term Management Plan dutifully points us in theright direction for achieving our Long-Term Vision for 2030 of “ARTfor Human Possibilities: Let’s strive for greater happiness.” I believethat we must not allow ourselves to be content solely with our business results and instead ask whether or not we made clear forward
steps toward our Long-Term Vision over the last three years.
Keeping that in mind, I will go over our business performance infiscal 2021. Like in fiscal 2020, the COVID-19 pandemic continued tocast a dark shadow on the global economy, but demand for our main
products, such as motorcycles and outboard motors, remained robust.
With these and other external factors serving as a tailwind, the selfdriven and on-target decision-making done by each of our major
subsidiaries and various departments led to successfully capturing

demand, while the Company as a whole also worked to improve on
our break-even-point management style. Additionally, the expenses
saved due to the travel restrictions put in place helped effectively raise
the figures for both net sales and profits well above those from theprevious fiscal year. In terms of improving profitability and putting ourfinancial foundations on surer footing, the higher efficiency and productivity levels yielded through digitalization as well as the structuralreforms made to the Company’s global production scheme were major
contributors.
With the effects of the pandemic shrouding the world in a sense of
seclusion, Yamaha Motor’s products drew attention not only as tools
for personal mobility but also as items for leading a more fulfilling
lifestyle. It was a year in which we were able to realize anew that our
products do indeed contribute to the happiness of people worldwide,
and this truth was shown in our business performance. However, theshortage of semiconductors, the rising cost of raw materials, logisticalissues, and other developments were significant factors in us being
unable to meet the full expectations of our customers. Under the new
Medium-Term Management Plan (2022–2024), we will unfurl our sails
to catch the current gusting tailwind of demand and further our
progress toward achieving our Long-Term Vision.

Direction of Our Financial Strategy
In the new Medium-Term Management Plan, we set the targets for
our financial indicators from the three perspectives of growth, profitability, and efficiency. With growth, the goal is to record over ¥2,200
billion in net sales and a CAGR of over 7%. For profitability, our target
is a three-year average operating income margin of over 9%, and for
efficiency, we set a goal to continuously generate returns exceeding anassumed WACC in the 7% range on average over a three-year period.
In addition, we aim to construct a corporate structure for sustainably
delivering an ROE in the 15% range, an ROIC in the 9% range, and an
ROA in the 10% range.

34

Yamaha Motor Co., Ltd. Integrated Report 2022

Next, regarding our balance sheet management, our policy in theprevious Medium-Term Management Plan was to strike a balance
between investments for growth and returns to shareholders within
the range of our cash flows while maintaining the earnings power ofexisting businesses. Based on this policy, we emphasized making
consistent and ongoing dividend payments, particularly in step withimprovements to our financial health. As a result, our financial foundations were significantly reinforced, but at the same time, a factor inthis achievement was our inability to make investments for future
growth exactly as we had planned.

Growth Investments Based on Business Portfolio Management
At the heart of the new Medium-Term Management Plan is theapproach to managing our business portfolio (details on page 24).
Allocation of our management resources will be conducted basedon this portfolio management and we will proactively expand ourresource investments in strategic business fields. Compared to theprevious Medium-Term Management Plan, we will bolster development expenses and growth strategy expenses by 1.6 times (¥41.4
billion more) to ¥115 billion, and raise capital investment by 1.8 times(up ¥10.6 billion) to ¥45 billion. This move represents how we will put
lessons from the previous Medium-Term Management Plan to workand raise the effectiveness of measures.
Additionally, the standards for making growth investments willprioritize whether or not they are in line with the Long-Term Vision.
There are three pillars to the new Medium-Term Management Plan:

the first is to strengthen the earnings power of our core businesses;
the second is to accelerate our investments in new and growing businesses that contribute to the creation of a sustainable world; and thethird is to employ digital technologies and expedite co-creation with
our partners to boost our growth potential. Further, we added“Sustainability” alongside the themes of “Growth strategies” and“Reinforcement of management foundations” that have guided
previous Medium-Term Management Plans, and this decision wasmade because we believe the Company will be unable to continue
existing as one willingly chosen by customers should we not give due
concern to the environment and sustainability. To that end, we willprioritize our decision-making for growth investments around whether
they have the potential for making meaningful contributions to society
at large.

Forecasts for Fiscal 2022 and Future Outlook
To briefly summarize the Company’s outlook for fiscal 2022, we expect
the demand environment to remain favorable and forecast sales acrossall our businesses to surpass those recorded in fiscal 2021. In terms of
expected costs, we have accounted for the impacts of the shortage ofsemiconductor components and the effects of soaring costs for raw
materials, logistics, and more, both which have persisted since fiscal
2021. To successfully weather this environment, our capacity to carryon with and fully institute our break-even-point management style
while at the same time enhancing product competitiveness and driving
our premium segment strategy forward will be called into question.
But through such initiatives, we will aim to post record-high net sales
and operating income numbers for the second consecutive year.
The COVID-19 pandemic has drastically altered people’s values, while
the increased pace of digitalization is heavily influencing customer
purchasing behaviors. With people now able to obtain the same information worldwide regardless of time zones, marketing methods haveclearly changed as well. The Company intends to accurately gauge
these various changes in order to update our business practices andincrease efficiency, and this is an area where establishing our break-evenpoint management style can demonstrate the fruits of our labor—in
terms of financial health and success—to everyone. But it is also criticalthat we contribute to the creation of a more sustainable world at thesame time. My role is to cultivate the seeds of growth we have sownand to orient our work around the financial foundations further
strengthened through the previous Medium-Term Management Plan.
It is vital that we ask ourselves if our products and services truly
make our customers feel they gain greater happiness with a Yamaha.
I believe that doing this should naturally result in the Company achieving sustainable financial growth. As such, we will endeavor to bringourselves closer in line and in sync with the values our customers
hold—especially as COVID-19 becomes more endemic—and properly
communicating that fact to all of our stakeholders is how we will
share the progress we make toward achieving our Long-Term Vision.

Yamaha Motor Co., Ltd. Integrated Report 2022

35

Medium- to Long-Term Strategies

Initiatives to Achieve Carbon Neutrality

Climate Change Risk and Opportunity Assessment and Financial Impacts (Disclosure Based on TCFD Recommendations)

In May 2019, Yamaha Motor announced its support for the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD). Since then, we have been taking steps to track and manage climate change-related opportunities andrisks that could affect our business in order to incorporate adaptive and mitigative climate change measures into our­business strategies. As environmental regulations tighten and the move to decarbonization accelerates around theworld, the Company revised the CO2 emissions targets in the Yamaha Motor Group Environmental Plan 2050 (hereinafter,“Environmental Plan 2050”) in fiscal 2021. We are now continuing to move forward with initiatives to achieve carbon­­neutrality while offering new excitement and a more fulfilling life for people all over the world.

In developing its strategy to achieve carbon neutrality by 2050, Yamaha Motor refers to the SSP1-1.9, SSP1-2.6, and SSP3 scenarios of theIntergovernmental Panel on Climate Change’s (IPCC) 6th Assessment Report and Nationally Determined Contribution (NDC) scenarios in order toaddress uncertainty (risk) factors. We have identified and assessed short-, medium-, and long-term risks and opportunities as well as their impact
on our businesses, strategies, and finances. Based on the results, we have developed specific numerical targets for 2030 (and 2035) and havedecided to strengthen our climate change efforts and accelerate our 2035 reduction targets for Scope 1 and Scope 2 emissions.
Short-term: Impacts our immediate financial performance (including the potential to emerge over a timeframe of 0–3 years)
Medium-term: Requires significant adjustments to our strategy (including the potential to emerge over a timeframe of 3–6 years)
Long-term: Fundamentally affects the viability of our long-term strategy and business model (including the potential to emerge over a
timeframe of 6 or more years)Type

The Board of Directors formulates policies on dealing with issues
concerning sustainability and regularly reviews their implementation
status. With regard to issues concerning sustainability, the Board of
Directors oversees the Sustainability Committee, which meets threetimes a year and is chaired by the president and chief executive officer
and comprises executive officers appointed by the Board of Directors.
For these issues, we positioned the environmental field in particular
as an important area to be tackled by management and establishedthe Environment Committee, chaired by an executive officer in chargeof environmental activities. The Environment Committee meets threetimes a year to discuss policies concerning the environment and vision
for the future, assess Environmental Plan 2050, and conduct annual

reviews of each operating division’s progress against its targets. The
committee reports its findings to the Board of Directors at least twicea year.
Based on the 2021 review of Environmental Plan 2050, the convening of the Sustainability Committee was changed from twice a year to
three times a year in order to bolster efforts toward carbon neutrality,
and the Environment Promotion Meeting was newly established as
an organization under the Environment Committee. In addition, KPI
performance for materiality issues, including climate change, and ESG
external evaluations are linked to the remuneration of executives andother senior managers to encourage effective initiatives.

Transition Risks

Climate Change-Related Governance 

Subject of Assessment

Policy and
legal
SSP1

Increase in development costs to comply withexhaust emission and CO2 emission standards
in each country and territory

Policy and
legal
SSP1

Increase in operating costs due tointroduction of carbon tax
The Company manufactures motorcycles, itscore business, at 27 bases in 16 countries,
mainly in the ASEAN region. Energy fromfossil fuels is used in processes such as
casting and painting.

Technology
SSP1

Board of Directors

Sustainability Committee (three times/year)
Chair: President and chief executive officer
Members: Executive officers with specific posts

Stipulation of basic policy on climate change response
Stipulation of important matters related to climate change

Environment Committee (three times/year)
Chair: Executive officer in charge of promoting environmental activities
Members: Seventeen persons responsible for promoting activities in each business anddepartment (progress reports by three chief general managers of business operations)

Environment Promotion Meeting (monthly)
Persons responsible for Companywide promotion

Information management

Companywide policy

Environmental investment

Deliberation and review of basic policies and important matters related toclimate change• Scenario analysis and assessment of climate change risks and opportunities• Setting greenhouse gas reduction targets and managing progress

Opportunities

Each business department
Procurement Center
Manufacturing Center
Manufacturing
Technology Center

Technical Research &Development Center
Corporate Planning &Finance Center

Bases andsubsidiaries

Promotion managers

Promotion managers

Promotion managers

Promotion managers

Execution

Execution

Execution

Execution

Carbon Neutral Technology Review Subcommittee

36

Yamaha Motor Co., Ltd. Integrated Report 2022

Short
term

Manufacturing Center and the environmental facility division:
Collect information on regulatory trends concerning energy ineach country and territory
Environment Committee: Deliberates and discusses energyrelated investment plans, how to procure renewable energy,
and other matters
Board of Directors: Receives a report following a review by theManagement Committee

Fossil fuel energy costs in fiscal 2021:¥3.8 billion
Tax burden increase assuming a ¥13,400/
metric ton carbon tax on CO2 emissions
from business activities, calculated based on
fiscal 2021 CO2 emissions: ¥6.7 billion/year*

Since the procurement and cost of small batteries is an issue,
a consortium has been established in cooperation with othercompanies in the industry to develop common battery standards and infrastructure with a view to mutual-use batteries,
and activities to promote the wide adoption of electric models
have been launched.

Group R&D expenses in fiscal 2021:¥95.3 billion

Environment Committee: Receives reports from each operating
division on regulatory trends in each country and territory
Board of Directors: Receives reports on specific sales strategies
after each operating and functional division discusses anddetermines how to respond

Net sales from motorcycle business infiscal 2021: ¥1,016.5 billion

Corporate Communication Division’s Investor & Shareholder
Relations Group: Holds company information sessions for private investors as well as consultations for institutional investors

Market capitalization at the end of
fiscal 2021: ¥954.2 billion

Mediumterm

Risk of decreased sales of motorcycles withinternal combustion engines (ICE) due to aban on fossil fuel vehicles in cities
Risk of lost sales opportunities for electricmotorcycles due to delays in thedevelopment of charging infrastructure

Long
term

Reputation
SSP1

Risk of being assessed by investors and otherstakeholders as providing inadequate
information disclosure

Medium
term

Acute
SSP3

Risk of extreme weather events affecting
operations

Mediumterm

Chronic
SSP3

Risk of long-term extreme weather conditions affecting operations and sales

Long
term

Type

Companywide information integration and overall promotion• Companywide information integration and review of Companywide policies• Review of environment-related budget allocation• Review of environment-related resource allocation• Review of credit trading policy• Collection and sharing of external information• Progress management of environmental measures, etc.

Execution

Land Mobility
Marine Products
Solution BusinessPhysical Risks

Supervisory

Net sales of ICE models in fiscal 2021:¥1,643.5 billion

Short
term

Markets
SSP1

Supervision of climate change response

Status of Response

Regulations and certification division: Collects information
about regulatory trends in each country and territory
Environmental Regulation Management Committee: Works toaccelerate decision-making on the advance development oftechnology to address the tightening of regulations and on thedevelopment of powertrains

Increase in cost of technology to support
electrification of compact mobility vehicles

Process for Managing Climate Change Risks 
Climate change-related risk management is integrated into the Group’s overall risk management framework. Each year, the Environment
Committee manages the progress of goals and targets for specific initiatives as business strategies to address the risks and opportunities
identified by each business and functional sector. It reports the results to the Sustainability Committee, which is composed of the same members as the Management Committee, and to the Board of Directors.

PeriodSubject of Assessment

PeriodResource
efficiency

Improvement of energy efficiency inproduction processes

EnergysourcesUse of renewable energy at
manufacturing plants

Products/
services

Expansion of development of
low-carbon products
Expansion and promotion of
BEV product lineup

Mediumterm

Markets

Expansion of demand for our product lines in
response to energy mixes and government
policies in each country and territory

Short
term

Execution framework to achieve each department’s targets• Establishment of a promotion manager in each department• Setting targets for each department• Incorporation into each department’s medium-term environmental plan
• Carbon Neutral Technology Review Subcommittee duties• Review of business risks and sales strategies, etc.

Resilience

Financial Impacts

Assess impacts on operating facilities based on the frequency
and intensity of extreme high temperatures or heavy rainfall on
land as assessed in the IPCC’s 6th Assessment Report

Status of Response

Expansion of opportunities to provide
solutions that meet the needs of eachcountry and territory

Short
term

Access to new markets and territories with afocus on the environmental field

Mediumterm

Increase in earnings from products and services that are compatible with each country
and territory’s energy policies and diverse
energy sources

Long
term

—

Financial Impacts

Implement theoretical-value-based production globally

Energy efficiency budget for
fiscal 2021: ¥1.5 billion* Setting the internal carbon pricing at¥60,000 /metric ton

Utilize solar power globally
Utilize CO2-free electricity at the headquarters

Solar power investment budget for
fiscal 2022: ¥900 million
CO2-free electricity at headquarters:¥400 million/year

Launch 10 BEV models by 2024
Expand R&D facilities for electrification and carbon-neutral
fuels by 2024

Increased earnings due to demand for
low-carbon products

Short
term

Short
term

* Based on carbon tax price projections for2030 in a report by the Carbon Pricing
Leadership Coalition (CPLC)

Launch NEO’s electric scooter and HARMO next-generationelectric boat control system for Europe—

Start mobility service business in India through collaboration
with MaaS operators

Moto Business Service India Pvt. Ltd.
established: ¥1.1 billion in capitalMarket forecast for motorcycle sharing
services in India in 2025: ¥11.7 billion

Establish an investment fund specializing in the environment
and natural resources field

Total amount under management:¥10 billion (investment period: 15 years)

Expand R&D facilities for powertrains compatible withelectrification and carbon-neutral fuels by 2024

Medium-term (2022–2024) investment
budget: ¥2.4 billion

Yamaha Motor Co., Ltd. Integrated Report 2022

37

Medium- to Long-Term Strategies

Initiatives to Achieve Carbon Neutrality

Reduction Performance(Disclosure Based on TCFD Recommendations)

Scopes 1 and 2
FY2010 (base year)

Emissions (metric tons)

 iming for Supply Chain Carbon Neutrality: Achieving Scope 1 and Scope 2
A
Reduction Targets Ahead of Schedule Breakdown of CO2 Emissions for the Entire Supply Chain

Scope 1 and Scope 2 Targets

Scope 3 Targets

Generators /OthersSnow blowers
9%/ Multipurpose
engines7%

Rawmaterials
15.9%
2021 life cycle
CO2 emissions

Outboard
motors19%

28.9
million t-CO2–15%

FY2021

635,071553,923

529,513

540,105

442,533

500,903

51.2

33.2

31.6

32.4

30.1

27.6

—

35.2%

38.3%

36.7%

41.2%

46.1%

Reduction rate(compared to FY2010)

Scope 3

* Category 11:
Use of sold products

FY2010 (base year)

FY2017FY2018FY2019FY2020

FY2021

Emissions (metric tons)

34,046,049

25,753,328

25,963,326

23,859,974

19,624,372

23,237,944

Emissions per unit
(metric tons/unit sales)

4.36

4.00

3.76

3.57

3.67

3.71

Reduction rate(compared to FY2010)

—

8.3%

13.8%

18.1%

15.8%

14.9%

Yamaha Motor’s commitment to achieve carbon neutrality by 2050 isalso incorporated into its Medium-Term Management Plan, the firstyear of which is fiscal 2022.
To reduce CO2 emissions in our corporate activities, we will introduce
energy-saving and renewable energy equipment in more than 10
countries and, in 2022, adopt CO2-free electricity, starting with businesssites in Japan. With regard to Scope 3 emissions, i.e., emissions generated from product use, raw materials, transportation, disposal, etc., bycustomers and employees, we will accelerate electrification through ourplatform strategy and also promote development for compatibility witha variety of powertrains (power sources). Moreover, we intend to gradually enhance our R&D facilities to realize these goals.
Furthermore, to accelerate the carbon offsetting efforts needed toachieve our goals, we have established an investment fund specializingin the environment and natural resources field. The fund is planned tooperate for a period of 15 years and will fast-track ventures into
technologies and business models that contribute to sustainability.

–38%

2035:
Carbonneutrality
achieved
early

–90%

Scope 1 andScope 252% reduction in CO2 emissions in fiscal 2024*1 (compared to fiscal 2010)• Deploy energy-saving and renewable energy equipment in more than 10 countries by 2024
• Adopt CO2-free electricity in 2022, starting with business sites in Japan cceleration of electrification through aA­platform strategy
2010

2021

2030

2035

2050

Employ internationallyrecognized carbon
offset methods

Base
year

2010

Increased focus on ESG factors in investing
Transition to cleaner energy mixes

2030

2035

Platform Strategy

2050

Note: Reduction targets for the combined emissionsof our major product categories (motorcycles,
outboard motors, industrial robots, etc.)

Greater efforts for nationally determined
contributions among countries / territories

External
Environment

2021

Improve Monozukuri efficiency and ensure compatibility with a wide
range of power outputs*2 by narrowing down major component types

Employ internationallyrecognized carbon
offset methods

Motor

Institution of carbon taxes and stricter
environmental regulations

Expanded regulations for vehicle electrification

Scope 3

Other powertrains

Transition to cleaner energy mixes

Greater
expansion

Wider use of carbon-neutral fuels(biofuel, hydrogen, synthetic liquid fuel, etc.)–2024

Specific
Measures

Application of theoretical-value-based energy approach(energy-saving activities)

Improvement of ICE fuel efficiency

Utilization of renewable energy sources (solar power, etc.)

Expansion of
BEV product lineup

Equipment upgrades andproduction process reforms
Use of electricity and non-fossil-fuel sources tomeet equipment heat demand
Carbon offsets

38

Yamaha Motor Co., Ltd. Integrated Report 2022

Specific
Measures

Battery

Launch 10+ BEV models by 2024

Tightening of regulations for
ICE fuel efficiency

External
Environment

MCU*3

Promotion of BEV models

Responding to the diversification of energy sources

BEVs
FCVs
HEVs
Hydrogen

ICE

Base
year

 romote development across a variety ofP­powertrains (Expanding R&D facilities for carbonneutral technologies)

Electric

–24%
–92%

FY2020Priority Initiatives in the Medium-Term Management Plan Note: Calculations have been made using the Emissions Unit Value Database (Ver. 3.2)
based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions
Throughout the Supply Chain (Ver. 2.4, issued Mar. 2022) issued by Japan’s
Ministry of the Environment.

–46%
–80%

Motorcycles
65%

Category 11
Use of sold products
80.2%

CO2 emissions per unit

Carbon neutrality
achieved

Category 11
Breakdown by
Product

Scope 3
98.3%

Other
2.2%

FY2019Powertrain

CO2 emissions per unit

Electricity used
Scope 2
1.2%

FY2018Emissions per unit
(metric tons/sales:¥100 million)

Looking at CO2 emissions throughout Yamaha Motor’s supply chain, we
see that Scope 1 and Scope 2 emissions—those emitted as a direct resultof the Company’s business activities—only account for 1.7% of total
emissions, whereas Scope 3 emissions—those from the Company’s value
chain—constitute 98.3% of emissions. The largest component of our
Scope 3 emissions is Category 11 (Use of sold products), which represents
80.2% of total emissions. Of Category 11 emissions, motorcycles comprise 65% of total emissions while outboard motors account for 19%.
At the same time, 80% of Yamaha Motor’s motorcycle sales are in Asia,and by supplying this market with compact, convenient, and affordable
mobility options, we aim to contribute to sustainable growth in accordancewith the United Nations’ Sustainable Development Goals by addressing thedemand for the transportation of goods and services, helping expand thespheres of daily life, and bringing more options and opportunities for
employment and education. Moreover, we look to develop and popularize
more fuel-efficient products to help combat climate change.
With the goal of achieving carbon neutrality on a global scale,
Yamaha Motor aspires to offer products (next-generation mobility
powered by electricity or renewable energy) presenting the most effective means for cutting CO2 emissions based on the government energy
policies and energy mixes of each country.

Fuels used
Scope 1
0.5%

FY2017

Petroleum

BEVs

2025–

e-fuels
2010

2030

2050

 stablish a ¥10 billion environmental technology fund at our venture capital firm in Silicon Valley and explore technologies and businessEmodels that contribute to sustainability
Collaborate with suppliers to promote measures for carbon neutrality and quantifying CO2 emissions with purchased goods

Development of carbon-neutral
fuel-compatible powertrains
Carbon offsets*1 Revised from the 44% target announced in February 2022
*2 Rated 2.5–35 kW and over 350 kW*3 Motor Control Unit

Yamaha Motor Co., Ltd. Integrated Report 2022

39

Medium- to Long-Term Strategies

Digital Transformation Strategy

Initiatives Under the New Medium-Term Management Plan

The Company is advancing its digital transformation (DX) strategy under the “Yamaha Motor to the Next Stage” bannerin order to achieve its corporate mission to be a Kando Creating Company. The Long-Term Vision for 2030 of “ART for
Human Possibilities: Let’s strive for greater happiness” specifies the directions we will take to that end, and our DX
strategy seeks to connect with our customers in order to create more fans of Yamaha Motor and raise our brand value.

Medium- to Long-Term Plan: Yamaha Motor to the Next Stage 
Action Themes
Y-DX3

2019–2021

2022–2024

2025–2027

Search and trial

Building and implementation

Expansion

A Globally Linked Database
As we continue to utilize our management dashboard, we are buildingon the functions of our management database platform, such as
deeper drilldown analysis, expanding the range of products with
forecast demand and refining the units for demand forecast metrics,
as well as adding budget management functions to enhance its utility
as a tool for predictive management.

Global ERP Introduction
The Iwata headquarters is preparing to introduce an SAP accounting
module and will also begin preparations for introducing a sales
distribution module. At the same time, we will also complete theconstruction of a global template for standardizing business practices
at Group companies, and as we utilize it, we will incrementally
introduce SAP to our subsidiaries in Europe and the Americas.

Y-DX2: Strengthen the Present 

Create the
FutureY-DX2

Four core domains and DAP*

Application in four core domains andglobal rollout

Advance and update

Global consolidated database andJapanese accounting ERP

Principal base / distributor ERP

ERP at all bases / distributors

Strengthen the
Present

Y-DX1
Reform Management
Platforms

Short- to Medium-Term (2019–2021) Initiative Progress
Y-DX3: Create the Future

Y-DX2: Strengthen the Present

Y-DX1: Reform Management Platforms

We used a crowdfunding platform to widely promoteawareness of how motorcycles can contribute tosociety, and have started trying to connect andco-create with new customers. Additionally, we
advanced plans for R&D roles and departments
specializing in digital technologies for continuous
innovation.

In light of the COVID-19 pandemic, we accelerated
efforts to strengthen customer touchpoints throughdigital marketing, e-commerce, and other means. We
also introduced more connected outboard motors andmotorcycles to the market, with a particular focus on
global rollouts for motorcycles (approximately 800,000
units as of the end of 2021). We continue to progress
on internal processes, advancing the automation ofmonitoring, transport, work processes, and inspections
at manufacturing sites, as well as internalizing digitaltechnology practices through these processes andbuilding the foundations for digital development.

Operation of our consolidated global database,consolidated accounting, and management dashboard
began in 2022. We also started utilizing a demand
forecast model for predictive management. In terms ofintroducing a new enterprise resource planning system,
we proceeded with the construction of a template thatincorporates standard business processes centered on
accounting and implemented a new accounting systemat the Iwata headquarters. Because this requiredconnecting peripheral systems, the project entailed
more steps than anticipated and plans have been
updated accordingly.

Digital Transformation Strategy Under the New Medium-Term Management Plan 

Y-DX3:Create the Future

Y-DX2:
Strengthen the Present

Y-DX1:
Reform Management
Platforms

DX Human Resource
Development

Yamaha Motor Co., Ltd. Integrated Report 2022

Connected
Working toward “Connected Vision 2030,” we will expand our lineup
of products equipped with connectivity features and accelerate thedevelopment of mobile apps. We will also utilize the data acquired to
improve customer experiences, services, product development, andproduct quality.

Digital Marketing* DAP: Yamaha Motor’s digital data platform

40

Y-DX1: Reform Management Platforms 

Preparations for Next-Generation Value Creation
Construct an R&D framework specializing in digital technology and processes forco-creation with customers and society at large

Connect with Customers and Offer New Experiences
Proactively launch connected products, conduct digital marketing, andtransform into a more customer-centric businessAccelerate Decision-Making and Standardize Processes
Achieve quick decision-making via a globally global consolidated database andmanagement dashboards

Promote Companywide Use of Digital Technologies
Implement practical training programs for producing DX talents and make proactive
personnel shifts to become a company where all employees can utilize digital tools

We will further enhance and expand the development of customer
data infrastructure, data acquisition, and e-commerce websites. At thesame time, we will utilize customer data to provide new experiences
along the customer journey through a combination of physical anddigital world measures.

Smart Factories
By utilizing digital technologies, we will actively promote activities that
improve the quality of theoretical-value-based production under asite’s own direction and expand the ability to internalize such measures. At the same time, we will also boost coordination with the
supply chain and conduct development to promote the transformationof value delivered to our customers.

Additional Business Strengthening
We are also using digital technology to promote the development ofdigital means and demand chain innovation.

Data Analysis
In an effort to propel on-site data analysis, we will strengthen data
security and governance while promoting easy-to-use data management. Furthermore, we will continue to implement data analysis
training courses (over 600 people in 2021) tailored to the purpose andlevel of individual businesses and functional sectors to develop inhouse data scientists who can utilize data in the field.

Y-DX3: Create the Future 
Linking Data
By internally circulating and utilizing the data we acquire, we arereshaping the supply chain, engineering chain, and marketing
methods.

Collaboration with External Ecosystems
We are continuing with preparations to link connected Yamaha
products to other services and IoT devices. By collaborating with otherindustries and co-creating with customers via APIs,*1 we arechallenging ourselves to solve societal issues and create new customer
value in ways unachievable by a company on its own.
*1 API: Application programming interface*2 SDK: Software Development Kit

 onstruct an R&D Framework Specializing in
C
Digital Technology
We will build an R&D framework that specializes in digital technology
and promotes adaptation to new digital technologies andcollaborations with external services.

External
services

Yamaha Motor apps
API /
SDK

API /
SDK*2

YamahaMotor service
gateways

YamahaMotor
products

Other companies’ apps

DX Human Resource Development 
Aiming to be a company where all employees can utilize data, we
actively provide practical education and on-the-job training, shift
human resources, and hire personnel with specialized knowledge.
Through these activities, we are increasing the number of personnel
capable of utilizing, adapting, and applying data, such as tech leads,
programmers, engineers, and data scientists. Increasing this number to

1,200 personnel by 2024 (550 people as of 2022) is a key performanceindicator in our New Medium-Term Management Plan. At the sametime, we will promote various site-led Y-DX2 activities to provide
experience and strengthen IT literacy Companywide so that managers
are able to appropriately judge and promote digital business andin-house activities, as well as further internalize such initiatives.
Yamaha Motor Co., Ltd. Integrated Report 2022

41

Medium- to Long-Term Strategies

Human Resource Development

GET-HR: Global Diversity Promotion 

The energy in a company’s workforce is a critical factor in its growth and that is why we will make employee engagement an important indicator. We will promote diversity and inclusion as well as human resource development as initiatives for improving engagement.

Our Fundamental Beliefs As part of our global business operations, the Company is striving
to create an organizational structure with the agility required torespond to changing and evolving market needs. We believe that
if individual workers and their companies share ambitious goals
and work together to bring about not just business growth but
also personal growth, we can offer Yamaha Kando to customers
without fail. Premised on our fundamental belief that all corporate
activities begin with people, it is essential that our employees
work in harmony and incorporate differing viewpoints and values.
Working to hone individual skills, securing specialists in numerous
technical fields, and applying our expertise in both developed andemerging markets are the types of efforts we believe will lead tofulfilling the Company’s Long-Term Vision for 2030 of “ART for
Human Possibilities: Let’s strive for greater happiness.”
Our new Medium-Term Management Plan is in line with thesefundamental beliefs and designates the employee engagementscore as a KPI, thus we will monitor and conduct ongoing followup on the level of engagement seen among the Company’s
employees. Furthermore, as part of raising employee engagement
and promoting diversity and inclusion, we will increase theMitsuru Hashimoto
Executive Officer
Chief General Manager
Human Resources & General
Affairs Center

number of available options of working styles and strive to be acompany where our diverse workforce plays an active role. To
create an environment where people of diverse backgrounds
gather and excel, we will expand our training programs for leaders in each country, revamp the personnel systems at our headquarters, enhance mid-career professional recruitment, and more.
With human resource development, we will establish frameworks
that provide equal opportunities for personal growth to ouremployees and work to implement new workstyles that takebetter work–life balance into account as part of encouraging
employees to increase their Rev Up time, which aims to enhance
work efficiency as well as enrich their time off.

KPIs in the New Medium-Term Management Plan
Diversity & Inclusion

Human Resource Development

Strive to be a company with an agile and diverse
workforce by increasing the available options forworking styles

Establish frameworks that provide equal opportunities for personal growth to all employees

Local hiring forcore positions*1

55% by 2024

Women in management positions*2

Number of participants in
self-development courses

13

Approx. 5x% by 2024• E xpand global and regional leadership programs•R eform HR management system at headquarters• E nhance mid-career professional recruitment*3• E nhance online and on-demand learning platforms• E ncourage employees to increase their Rev Up time*4

Ratio of Local Hires inCore Positions
From the 50.8% achieved in 2021, we
will continue to bolster management of
successors to core positions and pursue
the KPIs in the new Medium-Term
Management Plan.
70

60

50

Improvement of Employee Engagement

t

re
tu
Fu

Ne
x

24

23

20

22

20

20

Increase the agility of the diverse
global workforce that represents the Yamaha Brand

20

21

40

Next: Planned successors for the next
periodFuture: Planned successors for the future

Introduce common global engagement indicators andconduct periodic follow-up on employee engagement(Ref.) Engagement score*5 at headquarters
FY2021 59% FY2024 70%

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Yamaha Motor Co., Ltd. Integrated Report 2022

*1 Ratio of local personnel in core positions at overseas subsidiaries*2 Ratio of women among managers at headquarters and overseas subsidiaries*3 Compared with 2019
*4 Aimed at enhancing work efficiency and enriching time off*5 Ratio of employees who responded favorably to engagement indicators

The Global Execution Transformation for Human Resources (GETHR) AXEL initiative was launched in 2021 and continues to focus onempowering women and addressing the issue of gender equality at
Yamaha Motor through its task force member groups. This activity
seeks to establish a shared culture and, through education andglobal engagement, foster practices which give rise to a workforce
representative of the communities in which we operate.

GET-HR Chairperson:
Mitsuru Hashimoto,Chief General Manager
Human Resources & General Affairs Center
Co-Chairperson:
Melanie Tups,
Director YMENV** Yamaha Motor Europe N.V.: Import and salesof Yamaha Motor products in the Netherlands,
marketing of Yamaha Motor products in
Europe, product development, financing, andother businesses

Whilst the initial focus of the committee relates to gender equality, it is positioned within the broader framework of diversity, equity,and inclusion, and the Global Human Resources Development
Division at the headquarters has been tasked with leading therelevant reforms across the global Yamaha Motor Group, including
Japan. The approach is a collaborative one where we will actively
engage with all Group companies to establish a culture of change
and one of embracing our unique diversity.

Diversity and Inclusion Framework
Organizational
mindsetOrganizational culture(Learned behaviors)

Kando Creating Company

Examples ofdiversity types

Gender

Key themes

Accountability

RacialLGBTQ+

Commonlanguage

CulturalRecruitment

Shares experiences(Yamaha DNA)Disability

Religious

Talentmanagement

Age

PDCA

Renewal of Self-Development Support System For employees to continue taking on challenges with vitality andpassion, it is necessary to provide flexible workstyle choices andcareer options. Prospering in the VUCA (volatility, uncertainty,
complexity, and ambiguity) era requires employees to reflect on
and design their own career paths. In support of this approach,
we are developing training structures that further facilitate
employees enhancing their own skills and developing their careerswith greater independence.

This is achieved by increasing the education and training methods available and developing on-demand programs that enable
employees to customize their learning experience in line with theirindividual career orientations and aspirations. To that end, we haveintroduced online programs and lectures for learning the English
language, advanced technologies such as DX and IT, and businessskills. We will continue to expand the curriculum according to thedevelopment needs of employees.

Message from Global HR Development
By applying the many perspectives gained by diversity
to strengthen our foundations, we aim to be acompany that always offers Kando without fail
The Global HR Development Division comprises a team of committed
members reflecting diverse backgrounds, cultures, and professions.
We believe that this approach is fundamental in enabling us tobetter support the needs of our employees and those of the diverse
range of Yamaha Motor’s businesses globally by harnessing themany benefits that our unique diversity offers.
We are focused on the development and implementation of a
Global HR Framework that serves to support and nurture talent tofulfill the mission of facilitating the placement of the right person, at
the right place, at the right time, regardless of nationality and/or
background. Working as One Yamaha together with our colleagues
in Japan and at Group companies all over the world, we both experience and embrace the unity in diversity. The Global HR Development
Division is committed to the development of future leaders that will
be representative of the diversity that is such an integral part of ourculture and our DNA.

Roper Ashley​

Revati​ Upasani​

Yury ​Panteleev​

Yamaha Motor Co., Ltd. Integrated Report 2022

43

Medium- to Long-Term Strategies

Sustainability

We believe that contributing to the sustainable development of society through business activities in line with our­corporate mission to be a Kando Creating Company represents the kind of sustainability initiatives expected of Yamaha
Motor. The Company has positioned sustainability as a key pillar of its management and is kickstarting efforts aimed atbuilding a more sustainable world.

Yamaha Motor Group Sustainability Basic Policy Yamaha Motor Group’s corporate mission is to be a Kando
Creating Company. We aim to offer people all over the world joy,amazement, elation, fulfillment, and happiness through our products and services while maintaining harmony with society and theglobal environment. To achieve this, we will leverage the empathy
arising from connections between people as an engine for creating new value. As a company trusted by society, we will, underappropriate corporate governance, contribute to the resolution ofsocietal issues and sustainable development through innovativeand diverse products and services, in ways that embody theunique style of Yamaha. We ask our business partners to uphold
this policy and act on its basis.
•W e will comply with international rules, laws, and ordinances,
and at the same time, we will work to prevent corruption, andexecute our operations with fairness and integrity.
•W e will respect human rights, will not discriminate, and will notuse child labor or carry out forced labor under any form.
•W e will value our relationships with our stakeholders and disclose information in a timely and appropriate manner.

Customers

We will provide high-quality products and services that can beused safely and with peace of mind by anyone, and will beworking to educate people on the proper ways to use our
products, and spreading this knowledge to create good environments for their use.

Employees

We think that the health and safety of our employees is a foundation of the Company’s growth. We will improve working environments, respect and promote diversity and inclusion, and engage
proactively in talent management. We will also respect the
freedom of association and the right to collective bargaining.

Business Partners

We will have our doors wide open to all partners, regardless ofnationality or size, and with a long-term perspective be engaged
in the achievement of mutual prosperity.

The Environment

We will develop technologies in ways that prevent global warming, and work to minimize environmental loads. Furthermore, wewill undertake the conservation of biodiversity and sustainable useof natural resources.

The Community

We will respect the cultures and customs of each country andregion, and work to achieve harmony with communities.

Shareholders andInvestors

We will aim to enhance corporate value through long-term stable
growth based on mutual dialogue.

Sustainability Promotion Structure 
The Sustainability Committee, chaired by the president and chief
executive officer, and comprising members of the Management
Committee, was established as part of the sustainability promotion structure. The Sustainability Committee deliberates on anddetermines the response to issues related to sustainability andrisk compliance.
The Environment Committee, chaired by the executive officer
assigned to the environment, was established as the subordinate
committee to deliberate on and review, from specialist perspectives, policies and visions for the future concerning environmental
initiatives, medium- and long-term environmental plans, investment, and monitoring.
In regard to sustainability issues other than those related to theenvironment, the Sustainability Promotion Meeting has been
established as the subordinate council of the Sustainability
Committee. Issues are addressed by organizing the Risk
Compliance Secondary Meeting, the Sustainability Secondary
Meeting, and the Global Compact Secondary Meeting for eachissue, with members consisting respectively of persons from
related divisions.

Board of Directors

President, Chief Executive Officer and Representative Director
Seeking of advice /Making of recommendations
Sustainability Committee
Chair: President and chief executive officer
Members: Executive officers with specific posts
Instructions /Submittal for deliberation
Instructions /Submittal for
deliberation

Environment Committee
Chair: Executive officer assigned to the promotion ofenvironmental activities
Members: Business and division activity promoters

Sustainability Promotion Meeting
Chair: General manager, Sustainability Division
Risk Compliance Secondary Meeting
Members: Division managers of divisions in charge of risk management
Sustainability Secondary Meeting
Members: Division managers of sustainability-related divisions
Global Compact Secondary Meeting
Members: Division managers of human rights, labor, and anti-corruption related divisions

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Yamaha Motor Co., Ltd. Integrated Report 2022

Human Rights Initiatives 
Signing the United Nations Global Compact
In 2017, the Yamaha Motor Group signed the UN Global
Compact, a series of principles proposed by the United Nations.
The UN Global Compact contains principles regarding humanrights and labor, and the signing enables the Company to not only
express the Group’s approach to human rights both internally andexternally but also carry out various activities in order to increase
the effectiveness of compliance with these principles. One ofthese activities was to establish the Global Compact Secondary
Meeting under the jurisdiction of the Sustainability Promotion

Meeting. Those responsible for human resources, procurement,
and other areas related to human rights and labor gather in one
place across divisional boundaries to eliminate issues, consider
new activities, and confirm progress made. Furthermore, Yamaha
Motor actively participates in subcommittees organized by the
Global Compact Network Japan—the Japanese branch of the
UN Global Compact—and are working to improve our in-house
activities through study sessions related to human rights, such as
inviting a human rights special interest group for lectures.

Employee and Group Company Initiatives
Under the Sustainability Basic Policy formulated by the Yamaha
Motor Group in June 2021, we have positioned human rights
as a top priority issue common to all stakeholders. To promote
Groupwide awareness and understanding of this basic policy,
we have prepared versions in 17 different languages andhave received written confirmation of agreement from the
management of each Group company. Additionally, we havecreated explanations for each item to increase transparency forGroup employees.
The Code of Ethics, a set of guidelines for the ethics of Group
employees, specifies that they must not carry out acts that abuseor deny a person’s character according to factors such as race,
nationality, ideals, principles in life, physical characteristics, personality, or relatives, and must not carry out any form of harassment,

including sexual harassment. We are also striving to enhance
employee awareness of human rights through e-learningand training.
Our risk management system, which covers all business units
and subsidiaries under the Group umbrella, has a human rightsrelated component addressing associated risk in our own operations and across the supply chain. We monitor, assess, andformulate measures to mitigate such risk. We also conduct aGroupwide compliance awareness survey each year to gauge howaware employees are about their human rights. We also have areporting line established to enable employees to report a problem right away in the event a situation arises, and we maintainand operate a whistleblowing system.

Supplier Initiatives
We ask our business partners to support the Yamaha Motor
Group Sustainability Basic Policy and request that they act on thebasis of this policy. Additionally, under the Sustainability Guideline
for Suppliers, we created a section on human rights and theworking environment, which specifies respect for human rights,
the prohibition of child labor, the prohibition of forced and compulsory labor, the provision of decent wages, dialogue and consultation with employees, and other issues. To enhance the efficiencyof these requests, we have received written confirmation of agreement from each of our business partners and have distributed andcollected self-assessment questionnaires.
Furthermore, in Yamaha Motor’s biggest market of Indonesia,
we commissioned a third party to conduct trial assessments ofworking environments, including aspects of human rights violations in 2019. In 2021, the assessment was focused on foreigntechnical intern trainees at Yamaha Motor headquarters in Japan,
since the abuse of such workers has gained attention domesticallyin recent years. We conducted a two-stage survey of domestic
suppliers and interviewed three companies regarding their foreigntechnical intern trainees in collaboration with a third-party institution. We were able to confirm that these companies had

established favorable employment and personal relationships withno major issues; however, we also provided feedback and proposals based on the report provided by the third-party institution as areference for making further improvements.

Yamaha Motor Co., Ltd. Integrated Report 2022

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