Business Strategy

Land Mobility

Net sales and operating income

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

SPVs
RVs

Emerging market
motorcycles

Takuya Kinoshita

Opportunities

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

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

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

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

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

The ROV business has been made part of Motorcycle Businessexpanding globally by tying together our brand and products in theOperations to strengthen its product planning, development, and cost-motorcycle market. Given this market environment, there are threecompetitiveness. We aim to introduce new platform models that deliver

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

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

ROV markets in developed markets.

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

contribute to the future of mobility by proposing uniquely Yamaha

out the realignment of our brand and revenue base globally.

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

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

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

starting with business model formulation in the United States, a newThe ASEAN market is entering a period of mature, and we are building

market for us.

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

Yamaha Motor Co., Ltd.

Integrated Report 2018

Net sales

Net sales

1,117.8

1,129.0

Operatingincome48.7

OperatingincomeOperatingincome

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

92.0

Net sales:

53.0¥1,350.0 billion

Operating income:¥92.0 billion

Operating income margin:
2018

Chief General Manager of Motorcycle Business Operations

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

1,354.0

Developed market
motorcycles

Executive Officer

We are propelling the brand by developing new, uniquely Yamaha

Priority measures and targets(Billion ¥)2019

6.8%

2021

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

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

Developed market motorcycles andcommuter vehicles
Emerging market motorcycles andcommuter vehicles

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

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

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

and manufacturing capabilities and with agile decision making.

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

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

motorcycle business was weak in developed markets, the ASEAN

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

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

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

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

development, and manufacturing capabilities and bringing in strengths

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

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

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

in safety

with products such as electric vehicles and electrically power-assisted

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

bicycles, and by developing ways to relieve traffic congestion.

R&D in its fields of technological focus. By integrating the “growingWe are also working to promote safety around the world, especiallyworld of personal mobility,” “our electric products already in thethrough the Yamaha Riding Academy, which we hold to reduce traffic

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

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

been playing a contributory role by selling various electric products that

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

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

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

are also working with other manufacturers to create safety

aggregate production of which has surpassed five million units.

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

Integrated Report 201833

Business Strategy

Net sales and operating income

Marine Products

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

Net sales

338.2

338.0

We are realigning our global production system andMarine products
and others

pursuing a system supplier strategy to provide fulfilling

OperatingincomeOperatingincome76.0

Operatingincome60.8

marine lifestyles.

Reinforce high profitability andestablish base of sustainable growth

374.0

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

Senior Executive Officer
Chief General Manager of Marine Business Operations

Opportunities

2018

2019

2021

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

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

Marine products: Status of primary products and main competitors

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

markets

Outboardmotors

outboard motors

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

Hirofumi Usui

• Expansion of peripheral equipment business due to enhancement ofImproving production capacity and flexibility

54.0

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

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

Personalwatercraft

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

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

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

Aiming to provide smart package boats

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

We are realigning our global production system for outboard

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

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

motors in response to strong sales of large outboard motors.

business to growing the peripheral systems business, including boat

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

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

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

systems and electric propulsion units, and working with cooperating

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

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

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

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

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

to operate and more environmentally friendly.

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

automated boat control systems to evolve the business from one that

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

providing fulfilling marine lifestyles.

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

Product Development Strategies
Technical capabilities“Smart Package” boats

Continuing the provision ofattractive items/services
Large 425
horsepower
outboard motors

and by making our production more flexible through parallel production

Next-generation steeringsystems

Solutions
IoT

Advancing the business by shifting from products to experiencesEXULT43 cruisers“Releasing the secret potential of the sea”

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

Value Proposition

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

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

instill joy in their daily lives.

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

Tyura Sango” (a public-private joint project to restore coral reefs in• A platform that connects people around the world with the value ofOkinawa) to exist in harmony with the natural environment. By providing

the ocean will become essential to society.
Electric propulsion units

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

Reliable and rich marine lifestyles

Specific measures are outlined below.

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

Addressing social issues

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

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

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

we are working to achieve a sustainable society.

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

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201835

Business Strategy

Net sales and operating income

Robotics

Priority measures and targets(Billion ¥)Net sales

Business scale and area expansion andreinforcement of high profitability

101.5

We will contribute to labor savings and autonomization in fields

Net sales

Net sales

81.0

74.9

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

Operatingincome16.7

15.5

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

Opportunities

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

2018

2019

2021

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

SMT
Industrial robots

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

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

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

solutions for the broad customer base in our existing markets.

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

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

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

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

wide range of applications, we are working to strengthen variations,common operations, and enhancing Cost Performance Index (CPI), toincluding using collaborative robots, to provide total solutions similar

expand the scope of our business and strengthen profitability.

to the SMT business.

Our surface mount technology (SMT) business has a broad

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

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

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

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

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

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

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

research, and logistics, with robotics technologies

quickly to both existing and new markets.

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

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

technologies include artificial intelligence (AI) picking, which combines

gained from industrial-use unmanned helicopters. In the medical

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

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

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

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

vehicles and other products.

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

Strengthening development personnel, procurement andCenter (YMAT) that opened in Shin-Yokohama, and by reinforcing ourproduction systems to contribute to a wide range of fields

human resources. In addition, along with strengthening our procurement

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

NewExisting

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

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

Labor saving/Autonomization

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

New field automation• Precision agriculture• Medical fields

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

core values

margin of 19.1% after investments in research and development.

Both sales and operating income showed steady growth over the three

Going forward, we will contribute to raising productivity in sectors

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

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

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

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

New
Market/Customer

Strengthening Business Platforms

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

Addressing social issues
Providing solutions for issues facing society

aim of achieving our Long-Term Vision by freeing up new time forWe are applying robotics to provide solutions to issues in sectors

customers.

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

Yamaha Motor Co., Ltd.

Integrated Report 2018

Yamaha Motor Co., Ltd.

Integrated Report 201837