Yamaha CSR

The Yamaha Group aims to boost corporate value through implementing our corporate
philosophy and pursuing corporate management that emphasizes
corporate social responsibility (CSR) in order to meet the expectations of stakeholders.

Yamaha’s corporate philosophy

Corporate Objective
Yamaha will continue to create ‘kando’
and enrich culture with technology andpassion born of sound and music,
together with people all over the world.

Commitment toCustomers

Yamaha will fully satisfy the customer,
by offering high-quality products andservices, which use new and traditional
technologies, as well as creativity andartistry, and continue to be a known,trusted and loved brand.

Commitment toThose who Work
with Yamaha

Each person involved with Yamahaenhances the Yamaha brand andcreates Yamaha value. Yamaha willdevelop relationships of mutual trustwith all of those who work with Yamahain accordance with fair rules based onsocial norms, and strive to be anorganization in which individuals candemonstrate their abilities fully, haveconfidence, and have pride.

Commitment toShareholders

Commitment toSociety

Yamaha will increase the satisfaction
and understanding of its shareholders
by striving for healthy profits andreturns, and by achieving productivity,
using high-quality, transparent
management, and practicing disclosure.

Yamaha will give first priority to safety,
and will care for the environment.
Yamaha will be a good corporate
citizen, and observe laws and work
ethically, developing the economy, andcontributing to local and global culture.

Brand Slogan

CREATING ‘KANDO’ TOGETHER‘Kando’ is a Japanese word that signifies an inspired state of mind.

02 Yamaha CSR Report 2007

Editorial Policy

Contents

We started issuing the “Environmental Report” in 2000, and began release of an
expanded version that included coverage of CSR issues in 2006, under the new title“CSR Report.” In this report, we aim for a layout that allows easier comprehensionof the unique activities of the Yamaha Group. We have included two special
features, one on assisting the careers of Yamaha’s women employees in Japan,
and another on the environmentally friendly manufacture of musical instruments,
and as with last year’s report, have devoted a section to each stakeholder, andreported on a variety of initiatives. On the final page we have, for the first time,
included a third-party evaluation of this report. Meanwhile, the content of theEnvironment Performance Data insert included in previous editions has been
published on our website.
In creating this report we referred to the 2003 edition of the “Environmental Report
Guidelines” issued by the Ministry of the Environment, and the second edition of
the Global Reporting Initiative’s “Sustainability Guidelines.”

Message from the President

04

Towards a Corporate Culture that Utilizes
the Abilities of Every Individual
Assisting Women’s Careers at Yamaha Corporation

06

Initiatives for Our Customers

10

Quality Assurance Structure

10

Building Quality

10

Enhancing Customer Support Systems in Japan11

It is Yamaha’s policy that the organizations covered in this report should match
those covered in the consolidated accounts as closely as possible. For this report,
we have drawn information regarding environmental conservation activities fromthe 37 sites that have acquired ISO14001 certification. Sections of this report otherthan those dealing with environmental conservation activities and social action
programs mainly cover Yamaha activities may also contain information regarding
the activities of Group affiliates. More information regarding Yamaha Group
activities will be included in the future.

Initiatives for Our Shareholders

13

Policies for Retained Earnings and Returns to Stockholders

13

Investor and Shareholder Communication

13

Evaluations from Financial Institutions

13

Initiatives for the People We Work With

14

•Percentage of the Yamaha Group Workforce
Employed at ISO-certified Sites

Employment

14

Treatment of Partners

15

Initiatives for Society

16

Environmental Initiatives

20

Development of Environmental Management Systems

20

Goals and Achievements

21

Material Balance

22

Environmental Accounting

23

Environmental Risk Management24

Education and Training

26

TOPICS
Environmentally Friendly Manufacturing of Musical Instruments

27

Environmentally Friendly Products and Services

28

Environmentally Friendly Production

30

Environmentally Friendly Logistics

33

Company Outline

34

Background Information

34

Business Segments

34

Major Business Sites

35

Corporate Governance

36

Third-Party Opinion

38•Organizations Covered in this Report

The 37 facilities with ISO14001 certification have a total of
20,246 employees, which equates to 78% of the YamahaGroup’s consolidated workforce of 25,992 employees.

78%•Environmental Performance Data
Environmental performance data not published in this report is publicly available on
our website: (http://www.global.yamaha.com/about/environmental_activities.html)
Data available on this website
1. Environmental Accounting
2. Environmental Data
3. Data by Site
4. Sites with ISO14001 certification
5. History of Environmental Initiatives in the Yamaha Group•Period Covered By This Report
April 1, 2006 to March 31, 2007
*The above period is referred to as FY2006 in this report.
*Part of this report includes information on initiatives prior to this period, and information from
April 2007 onward.

•Publication of the Next Report
The next report will be published in August 2008

•Cover photograph: Natural scenery at Yamaha’s “Tsumagoi” resort

Estimates, Forecasts, and Plans for the FutureThis report includes not only facts of the past or present concerning Yamaha Corporationand its affiliate companies (the Yamaha Group), but also estimates, forecasts, and plans forthe future. These estimates, forecasts, and plans were formed based on the information
available at the time this report was compiled and thus contain some element of uncertainty.
Consequently, the results of future business activities and future events may differ fromthose included in this report. The Yamaha Group is not liable for damages arising from any
unforeseen circumstances.

Yamaha CSR Report 200703

Message from the President

Emphasis on Corporate Social Responsibility (CSR)
in Management
The phrase “CSR” covers a broad range of issues, from vital
themes such as the preservation of the global environment toissues such as business scandals.
Thus far, the Yamaha Group has established a basic policy thatstresses the importance of Corporate Social Responsibility (CSR)
in management, strengthened the systems we use to ensurecompliance with the law, and worked earnestly to address themes
related to the environment, quality, supply, and the disclosure of
information. However, these times of rapid environmental change
and heightened social pressure place an increasing demand on us
to employ more proactive measures on an ongoing basis toimprove the level of CSR that we provide.
We are working to implement systems throughout the entire Group
that ensure thorough compliance with the law and with our codeof conduct, including the restructuring of our internal control
systems. Furthermore, we will examine the priority given to avariety of CSR-related issues and move to address eachappropriately.
President and Representative Director,
Yamaha Corporation

Mitsuru Umemura

04 Yamaha CSR Report 2007

Yamaha Group Initiatives
We believe that each company in the Yamaha Group should
pursue CSR initiatives that contribute to the growth of music
culture throughout the world through their operations. For
example, our “Yamaha Music School” business is expanding its
music promotion activities in over fifty regions, and has seen morethan five million people graduate from its programs worldwide.
Further more, as a manufacturer of musical instruments, we
inspire many people through the performances of top artists,
whose activities we support across a wide range of genres.
We believe that conducting business activities that center onsound and music improves our level of CSR; that is to say, they
fulfill the expectations of our stakeholders, and raise the value of
the Company and of the Yamaha brand.

Creating ‘Kando’ Together Through Our Core
Businesses
In my previous position I drew on my instrument sales experience,and on fifteen years spent living in Europe and North America, toinstitute “We work to make just one more person declare ‘I play
Yamaha’ ,” as a mission statement for our musical instruments
business, concentrating on expanding Yamaha’s user base.
Now, as Company president, I have decided that we should
restructure our business domains, working aggressively to achieve
growth in “The Sound Company” domain, which focuses onsound, music, and audio. This represents the start of the
YGP2010* three-year medium term business plan. As one of theleaders in this domain, the Yamaha Group provides products andservices to satisfy the diverse needs of music students, players,
producers, artists, and in fact, of all of our music-loving customers,
accelerating initiatives to achieve our corporate objective, “To
Create Kando and Enrich Culture,” on a global scale.

Working with Our Stakeholders
In order for the Yamaha Group to continue its growth, we mustuse our core business activities to contribute to the stakeholders
defined in our corporate philosophy; our customers, ourshareholders, the people who work with us, and society at large. I
believe that strengthening the relationship of trust we have with
our stakeholders is of vital importance.
This means that Group initiatives must also be understood by all.
As such, we have created this CSR report as a communications
tool to aid in this understanding.
We would sincerely appreciate hearing your opinions on theactivities of the Yamaha Group.
September 2007

Emphasis on Corporate Social
Responsibility (CSR) in Management
Timely and Appropriate
Information Disclosure

Customers

Shareholders

Those WhoWork
with YamahaSociety

Implement Medium-TermBusiness Plan “YGP2010*”* YGP2010: abbreviation of “Yamaha Growth Plan 2010,” Yamaha’s current medium-termbusiness plan.

Yamaha CSR Report 200705

Towards a Corporate Culture that Utilizes
the Abilities of Every Individual
Assisting Women’s Careers at Yamaha Corporation
The Yamaha Group holds the diversity of its employees in high regard, and aims to be a place where all employees can make themost of their abilities, regardless of their gender or nationality.
To encourage women to be active within the Yamaha Corporation, we are striving to create a more comfortable working
environment through such initiatives as the Positive Action projects and the Diversity Planning Department.
* Positive Action: An active attempt to utilize the activities of female employees to redress gender disparities.

Initiatives Thus Far
Positive Action Project Activities
The Yamaha Corporation inaugurated its Positive Action Project in2004 by seeking applications for a position on the project fromwithin the company. The project aimed to create a comfortableworking environment for women, and to evaluate our organization
systems from a women’s perspective.
This project was focused on eliminating preconceived gender roles
to create an active company where each employee could work
according to their abilities. It ran over the course of a year,
examining the state of affairs at Yamaha and other companies,
and encouraging the evaluation of personnel systems, staff
training, and environmental improvement. Members also held
lectures and created an intranet site to promote understanding of
the Positive Action project. The activities were used to create an
action plan, which was presented in 2005.

Diversity Planning Department
Yamaha Corporation established the Diversity Planning
Department as a full-time structure within the Human Resources
Division in March 2006. The department serves to accelerate
initiatives aimed at assisting women in their careers at Yamaha
Corporation. The department carried out the following activities tocreate a more comfortable working environment, and provide
more opportunities for women to develop their abilities.

Initiatives for the Promotion of
Women’s Activities
Yamaha Corporation actively recruits and trains female employees
as a means to guarantee a diverse and talented staff for the
future.
We are also endeavoring to better our working environment
through measures such as the systematic increase of thenumbers of female managers on staff, and working to reform ourattitudes towards the balance between work and family needs,
making it possible for women to continue on in long-term
employment.
Throughout the Yamaha Group we are committed to furthering
the assistance we provide to women in their careers. In 2007,
prompted by changes in the Equal Employment Act, we worked
to implement hiring practices that allowed employees to utilize
their skills without discrimination, ensure that employment
management practices complied with the new revisions, andmaintain a through knowledge of the prohibition against sexual
harassment in the workplace.

Our Main Policies•Increasing the number of women hired after graduation fromuniversity, and implement a strategy to actively hire women byrecruiting them mid-career•Increasing the number of women promoted to managerial
positions and expanding opportunities for them to develop theirabilities, facilitating the active promotion of women employees.
•Expanding venues for women to participate by reviewing
supervisor training programs for production workplaces•Creating a comfortable working environment by continually
improving measures to support a good work / family balance.
•Improving the awareness of and attitudes of colleagues andsuperiors

Prohibition against Sexual Harassment
The Yamaha Group Compliance Code prohibits unfair
discrimination and conduct which could be construed as
impropriety or sexual harassment.
In an effort to prevent sexual harassment in the workplace, wehave distributed the Code of Conduct to all employees, and held
workplace meetings and management training to provide a better
understanding of the issues. We have also established the Sexual
Harassment Advice Counter in order to deal promptly with all
problems reported.

At Yamaha Corporation we attempt to utilize our staff in a mannersuited to the capabilities, aptitudes, and ambitions of eachindividual. Societal demands such as those created by the Equal
Employment Act are now commonplace, and we believe that the“Sound and Music” domain that the Yamaha Group focuses on is
one where the abilities of women can be utilized effectively.
Recognizing this, we have designated the provision of assistanceto the careers of Yamaha Corporation's female employees as atheme for our CSR initiatives, and are working to cement policies
defined by this theme. We intend to accelerate these activities in
the future, expanding them throughout the entire Yamaha Group.
The increased number of venues forparticipation by women will create
an organizational culture in which adiverse range of people are able totake part, increasing the satisfaction
and productivity of our employees.
General Manager
Human Resources Division
Yamaha Corporation

Masahito Hosoi

06 Yamaha CSR Report 2007

Assisting Women’s Careers

Principal Indices Related to Female Employees
at Yamaha Corporation

Providing People with the Opportunity to Learn,
Regardless of Gender•Employee Gender Ratio (as of March 2007)
Female 1,152

Male 4,492

Percentage of Female Employees 20.4%•New Graduate Gender Ratio (FY2006)
Female: 35

Male: 84

Percentage of Female Employees 29.4%•Average Age and Number of Years Worked (as of March 2007)
Average Age

Average Number of Years Worked

Female43 years
6 months

22 years
11 monthsMale

46 years

24 years

Overall

45 years
6 months

23 years
10 months

0

10

20

30

40

50

0

5

10

15

20

I became a trainer in the production section approximately ten
years ago. We were encouraged to study to attain qualifications
and improve our skills at work in the past, and in Spring 2007 I
became the first female student to train at the New Yamaha
Advanced Skill School. The cooperation of my family meant that
I was able to continue working after my child was born, butfinding a balance between work and family is still a difficult
challenge. I hope that there will be more opportunities for more
people to study in the future, irrespective of gender, and asystem that allows us to balance the needs of work and family
more easily.
* New Yamaha Advanced Skill School:
A training program for supervisors in production-related positions. This program offers
planned education and training (theoretical and practical) based on the roles and skills
required of supervisors, aimed at training supervisors able to improve and manage theworkplace in an evolving environment.

25•Female Manager Ratio (as of March 2007)…………2.2%•Number of Employees Receiving Childcare Leave (FY2004-FY2006)…………Female: 116

Male: 4•Return Rate for Employees Receiving Childcare Leave (FY2004-FY2006)…………97.5%

Trainer
Production Section
Toyooka Production Division
PA/DMI* Division
Yamaha Corporation

Yukie Hiramatsu* PA/DMI Division: An abbreviation for Pro Audio and Digital Musical Instruments Division

Working in the Same Factory as My Eldest Son

The Need to Balance Work and Family Schedules

I have three children. There was no childcare leave system inplace when my eldest was born, and though a system existed
when I had my second child, it wasn’t something you could use
easily like the one we have now. My third child fell ill at birth,
prompting me to take childcare leave for the first time. Even
now that my children are grown it is not easy to find a balance
between work and family. I myself have been able to work thislong thanks to both a sympathetic work environment and thecooperation of my family. There are many women where I work,
and we understand about family matters, which creates anatmosphere of cooperation. My eldest son (photograph below,
at right) joined Yamaha this year, and works in the same factory
as me. I’m very happy to be able to work together with him, andam now motivated to work even harder.

I have two daughters, aged twelve and nine, and a son aged
five. As well as my job, I have to adjust my schedule to attend
events and school and nursery school, as well as taking mychildren to lessons on weekends. I am responsible for promoting
Yamaha English Language Schools. Since all three of mychildren attend Yamaha lessons, they understand my work as a
“Yamaha Mom,” and have begun to help out around the house alittle. I believe that being able to continue in my job is dependent
on my family, but I would like to continue working for as long as
possible. Now that I have been able to put my son into a
daycare center that will take care of him into the evening, andhave returned to my old job, I am aware that I have been lucky to
be able to continue. I think that keeping a balance between workand family is not just an issue of corporate infrastructure, butalso a matter of improving public services like day care and afterschool care programs.

Upright Piano Assembly Section
Upright Piano Production Department
Piano Division
Yamaha Corporation

Supervisor
Marketing Section
Domestic Sales & Marketing Division
Yamaha Corporation

Tomoko Aono

Rie Fujii

Yamaha CSR Report 2007

07

Supporting Work and Family
For many years, Yamaha Corporation has cooperated with the
Yamaha Labor Union to improve the systems we use to assist ouremployees in balancing the demands of work and family. In 2003
the Law for Measures to Support the Development of the Next
Generation* came into force. In response, Yamaha Corporation
created an action plan for the period from FY2005 to FY2008, andis currently working to achieve its objectives.
In FY2005, we revised these systems to allow more flexibility for
employees caring for young children. In recognition of our wellthought-out structures and comfortable working environment, theMinistry of Health, Labour, and Welfare gave Yamaha the Family
Friendly Company Award in FY2005.
In FY2006, we carried out a major review of our benefits program.
Specifically, we revised and extended our lifestyle-related benefits,providing expanded support to employees struggling with large
economic burdens from factors such as childcare, education,
injury, and nursing expenses. Additionally, we have instituted avariety of membership-based welfare benefits.
We also established the Work-Life Balance Committee to achieveboth corporate growth and a rich life for our employees as
individuals. In detail, these measures address the themes of (1)reduced working hours and (2) implementation and improvementof work / family support systems for the variety of circumstances
encountered by our employees.
Almost all female employees who give birth take childcare leave,
and almost all return to work at the company. In addition, twomale employees took childcare leave in both FY2005 and FY2006,
for a total of four male employees over this two year period.

The Diversity Planning Department was established as a full-time
structure in March 2006, building on the determination of themembers who worked on the Positive Action Project in 2004. 20
years on from the enactment of the Equal Employment Act, women’s
participation still tends to be limited to certain fields, and there is alarge discrepancy in the ratio of men to women in supervisory
positions. To correct this disparity and encourage the participation of
female employees, we are working to expand opportunities fortraining, improve support for balancing work and family needs, andencourage and support the development of their careers.
We now live in an era when it is the accepted norm for women towork for long periods of time. At Yamaha, our aim is to create aworkplace where each of ouremployees can develop theirtalents and abilities, while working
in an environment where needs
such as childcare and nursing are
met and people are able tocontinue working actively.
Manager
Diversity Planning Department
Human Resources Division
Yamaha Corporation

Ikue Fukuhara* Law for Measures to Support the Development of the Next Generation :This law required companies with more than 300 employees to develop an action plan forestablishing an employment environment supportive of employees with children, and submit it to
the government by the end of March 2005.

Participating in Childcare as a Father

Yamaha Corporation Action Plan
Goals :•To construct a system supportive of both work and child-rearing
through the establishment of an Action Plan
•To promote improvement in the operational systems and theworkplace environment through the implementation of an Action
Plan

I had always planned to take as large a role as possible in theraising of our children, and to take as much of the burden from mywife as I could. Since this was our first child we were somewhat
anxious, and it was difficult at times, but sharing this experiencehas given me some insight into my wife’s feelings. My superiors
and my colleagues were supportive, and showed a lot of
consideration when it came to my work. I would recommend thatanyone wanting to take childcare leave consult their superiors as
far in advance as possible. In some ways it is more difficult formen to take childcare leave than women, but I think that that willchange in time. If we have a second child I would definitely
consider taking a longer break.

•To contribute to raising the value of Yamaha Business throughthe implementation of an Action Plan
Plan period:
April 1, 2005 - March 31, 2008 (3 years)
Objective 1: Reduce overtime (by one hour per month)
Encourage the use of annual paid vacation time (tendays’ vacation per year)
Objective 2: Encourage the use of childcare leave (taken by at least
1 man and 70% of women after the birth of a child)Objective 3: Institute measures such as shortened hours for
employees raising young children

08 Yamaha CSR Report 2007

Supervisor
Innovative Technology Group
Center for Advanced Sound Technologies
Yamaha Corporation

Hiraku Okumura

Assisting Women’s Careers

Women Working in the Yamaha Group

The Willingness to Try Anything

The Best Company, Aiming For Growth

I have learned a lot from my job since I joined Yamaha, andhave always felt a sense of fulfillment in my position. I think thisis a reflection of the environment in which I work.
Currently I am involved in planning and running the Yamaha
Feeling Club (FC). FC is an organization for registered members
and open to customers who purchase Yamaha instruments or
attend our schools. We publish music information magazinesand provide other services unique to Yamaha to provide ourcustomers with increased satisfaction, and also work toincrease Yamaha’s fan base. I believe that Yamaha’s corporate
culture encourages a get-up-and-go attitude in its employees
and I am committed to maintaining a willingness to try anything,
and to always approach my work with a positive attitude.

I have enjoyed the 16 years I have worked at Yamaha, and am
inspired by Yamaha’s pursuit of process excellence, staff
development, and community involvement.
Yamaha’s commitment to quality products and service excellence
has motivated me to build strong relationships with our Dealers,
Sales teams, and Vendors.
I have worked in partnership with our sales team on innovative
ways to maximize sales, while keeping losses to a minimum.
Managing a successful GE partnership with Yamaha branded
dealer and consumer financing programs has also resulted inincreased dealer “sell through” and re-orders.
Yamaha’s personnel development program has provided me withboth the training and opportunities to overcome businesschallenges, pioneer new ideas, andreap some very rewarding
professional growth.
Yamaha deserves the best, so youreach deep inside and grow - notonly to meet the expectations, but
to exceed them!

Manager
FC Department
Domestic Sales & Marketing Division
Yamaha Corporation

Vice President
General Manager of Customer Financial
Services
Yamaha Corporation of America

Miki Watanabe

Karren Salter

Being Able to Grow with Yamaha

Thinking of the Wider Possibilities

I joined Xiaoshan Yamaha when it was formed in 1997 as one of
the first members of the company. Our combined efforts
resulted in rapid growth, and I myself have had the opportunity
to learn new skills through my work, and grow together with thecompany. I believe that I have been fortunate, having worked in
the belief that choosing a job I liked would enable me to stickwith it even when things became difficult.
Xiaoshan Yamaha’s strength lies in our strict observance of thelaws and regulations of China. Moreover, equality of sexes is anarticle of faith in this company, where five of nine managers are
women. Yamaha’s policies of encouraging women to take anactive role are a huge incentive to its female employees.

I have never felt bored while working at Yamaha. Regardless ofthe size of the job, I am always working on a new project aimed
at improving things. The feeling of achievement I get fromfinishing something is extremely satisfying, and continually setsme up for the next problem. I find it extremely challenging andaffirming to work in a global enterprise like Yamaha.
My work affords me the opportunity to meet colleagues working
in Yamaha businesses all over Europe and the world. We areable to exchange new information about our experiences andworking methods. Times like these give me the opportunity to
re-evaluate my attitudes and thinking. I have learned to think ofthings in terms of the wider possibilities, rather than from theviewpoint of a specific region or group of people.

General Affairs and Personnel Manager
Xiaoshan Yamaha Musical Instruments
Co., Ltd.

Sales Management / Logistics Manager
Yamaha Musica Italia

Yan LiMeloni Ercolina

Yamaha CSR Report 200709

Initiatives for Our Customers
We at the Yamaha Group are committed to ensuring product safety and producing quality enhancement, endeavoring to deliveruseful and easy-to-use products that provide satisfaction and fulfill the needs and expectations of our customers.
We provide information, services, opportunities, and after-sales support both domestically and abroad to ensure our customers
enjoy our products to the fullest.

Quality Assurance Structure
Companywide Quality Management System

Compliance with Worldwide Safety Standards

With customer satisfaction as our top priority, the Yamaha Group isconstructing a Group-wide quality management system in order todeliver products of the highest quality that live up to the highexpectations of our customers. Each division is responsible for thequality of its own products, utilizing a quality management system
of ISO90001 international standard. The Quality & Engineering
Planning Division audits the quality assurance systems and productquality of each division to ensure consistency with the quality level
demanded of the Yamaha Group. The Quality & Engineering
Planning Division also assists business divisions in theirimplementation of quality assurance techniques for use in designand development, and supports the application of quality control
methods in manufacturing processes. The Quality Committee
promotes activities based on a yearly quality policy, maintaining
quality standards, and works to facilitate the sharing of techniques
for improvement between operating divisions. The Yamaha Group
works to improve product quality by accumulating and applying
relevant techniques and know-how in each stage of productplanning, design, and manufacturing processes. Further, we
provide our customers with safe, high-quality products throughcontinual improvements to our infrastructure and awareness ofquality assurance issues.

The Yamaha Group adheres strictly to product quality and safety
laws and regulations.
The Quality & Engineering Planning Division actively gathers
information on worldwide safety standards for electric andelectronic products and performs inspections to ensure that
Yamaha Group products are in compliance with all required
standards.
By compiling a database of the results of these inspections, wehave made it possible to instantly confirm whether a product is incompliance from any Group site in the world.
To further improve the efficiency and accuracy of these
inspections, a quality assessment facility equipped with state-ofthe-art electronic wave measurement equipment and various othertypes of measurement and assessment devices was established at
Yamaha Corporation headquarters in May 2006.

Quality Assurance Structure
Anechoic chamber used forelectromagnetic wave measurement

President
Quality & Engineering Planning Division

Quality Committee

Building Quality
Business Division

Business Division

Business Division

Quality assurance section

Quality assurance section

Quality assurance section•Acquiring ISO9001 Certification
In a move to strengthen and improve product quality and thequality management system, 28 divisions had acquired ISO9001
certification as of the end of FY2006. This equates to thecertification of approximately 60% of our consolidated workforce.

Product Risk Management
The Yamaha Group employs precautions during all stages ofdesign, development, and production to ensure that its products
are free from safety defects. A system has been implemented
which, in the unlikely event of a safety defect being found in a
product already on the market, enables the head of the Quality &Engineering Planning Division to call an Emergency Action
Committee Meeting*1 and respond rapidly by taking suchmeasures as notifying customers and recalling products.

Elevating Design Quality
The motorized faders*2 used on Yamaha's professional-level digitalmixers are a vital user interface, performing a similar role to the
keyboard on an electronic musical instrument. In developing thesefaders, the PA/DMI Division uses quality engineering techniques tooptimize parameters in control mechanics, circuitry, and, andsoftware. Development begins with a numerical definition of theideal movement of the fader from a customer perspective.
Through systematic experiments and analysis, we attempt tocreate faders that have stable, robust control parameters in any ofthe environmental conditions in which our products are used. The
fader systems developed using this system offer quick, silent,
precise automated movement, and guarantee quality that is
adaptable to a range of environments. This allows us to provide auser interface that combines usability, reliability, and durability.
*2 Fader: The slider mechanism used to adjust volume*1 Emergency Action Committee Meeting: A meeting attended by the heads of relevantbusiness divisions and sales divisions, the heads of the Service, Legal, and Public Relations,and Quality & Engineering Planning, as well as the head of any other division whose assistanceis deemed necessary.

LS9-32 Digital Mixing Console

10 Yamaha CSR Report 2007

Initiatives for Our Customers

Enhancing Customer Support Systems
in Japan
Improving Product Quality
Yamaha Group factories overseas that manufacture many AV
products have acquired ISO9001 certification and are making
ongoing efforts to improve quality control. These factories areworking to improve quality through initiatives aimed at reducing thenumbers of hidden defects not found in regular inspection by
improving their production processes. For products such as
speakers, where the smallest mistake in production can have atremendous effect on quality, process leaders at the factories haveused FMEA*3 techniques to find and eliminate hidden elements ineach process that could have a negative effect on quality. The
improvements suggested by such techniques are applied tooperational standards throughout the factory to raise quality levels,
and used as a training tool for new employees. Moreover, theQuality Assurance Division monitors the state of quality at thefactories, to ensure that high standards are maintained.
*3 FMEA Techniques: Failure Mode and Effects Analysis Techniques for systematically
identifying potential failures in a system or a process. These techniques are used to predictthe reasons for any faults that may occur, and implementing preventative measures against
them.

Improvements to the Musical Instruments
Information Center
Yamaha Corporation’s Musical Instruments Information Center
provides prompt response to customer inquiries, advising on suchmatters as the purchase, use, and care of instruments. In FY2006
we improved the systems we use to respond to customers whomake inquiries via telephone or email, allowing us to put them incontact with relevant staff quickly. These improvements involved
the implementation of a system to deal with a new line ofproducts*4, installing IVR functionality*5 in part of our CTI telephonesystem*6, and improving on the navigation required to ask forsupport and make inquiries through the Yamaha website.
*4 D-DECK (Dual manual keyboard) Information Center*5 IVR: A system able to respond automatically to vocal inquiries over the telephone. IVR is anabbreviation of “Interactive Voice Response.”*6 CTI System: A customer response system that combines telephones and computer
systems. CTI is an abbreviation of “Computer Telephony Integration.”

Musical Instruments Information Center Consultations
for FY2006
Distribution outlet related,
repair service, other20%

Yamaha Electronics Manufacturing (M)Sdn Bhd a manufacturer of AV products

Computers, MIDI data
20%

Product user and care
14%
Product functions andspecifications
37%

FY2006
Total: approx.
58,000 calls

Advice on product purchase9%

Sample Case: Preventing Quality Problems
As a preventative measure aimed at reducing problems withquality, we are examining what kind of mistakes can happen ateach stage in the production process, and reviewing theoperational content of each.
When making speakers, even in a simple process small mistakes
can occur, and directly affect a speaker’s sound quality. To givean example, we have installed a scale on the press machine toprevent quality defects due to gaps caused by erroneous height
settings when pressing wood for wooden speaker cabinets. We
are working to build on small improvements like this to prevent
quality problems and maintaina high level of quality.

Improving the Convenience of the Repair
Reception Center
The Repair Reception Center at Yamaha Corporation provides fulltime staff to offer prompt service to customers requesting therepair of electric acoustic products such as electronic musicalinstruments, and AV equipment throughout Japan.
To meet the needs of the current market, from 2007 we will utilize
a pickup and delivery service to handle requests for repair from
customers who purchased their products over the Internet or by
mail order, aiming to provide a more convenient service for those
who live in rural areas.

Operational flow for repair pickup services in Japan
Yamaha Repair Reception Center

RepairrequestCustomers

Pickup request

Acceptanceconfirmation

Regional repair center
Repair

The scale attached tothe press machine.

Receipt of item

Soavo™-1 speaker system

Delivery

Delivery

Delivery company

Pickup of
repaired item

Yamaha CSR Report 2007

11

Initiatives for Our Customers

Yamaha Celebrates 35 Years Training Piano
Technicians in North America
The training program for piano technicians at Yamaha Corporationof America (YCA) has seen more than one thousand people
graduate since its inception 35 years ago in 1971. The program
was named the “Little Red
Schoolhouse” in reference to a
traditional educational environment
in US history, and has since gained
a reputation in the US piano
technical community as a quality
training program.
The training program originatesfrom the piano technology school
Yamaha established in Japan in
1960. The school was then
expanded throughout Japan, theUS, Europe, and Asia by Yamaha
subsidiaries. To date, approximately
Poster commemorating the 35th
8,500 people have received
anniversary of the “Little Red
instruction through the Yamaha
Schoolhouse” piano technician training
programpiano technician training
program.

Applying Usability Testing to Pursue“Ease of Use”
The AV Products Division carries out usability testing* in Japanto evaluate the ease of use of its products and thecomprehensibility of the terminology used in user manuals,
applying the results of this testing to the design of new
products. The division then conducts surveys and asks
customers for their opinions on products that have benefited
from this process, evaluating the answers received to initiate
any further changes.

Digital Sound Projector™ YSP-1100

Usability testing

Yamaha Livingtec Corporation conducts usability testing on its
kitchen and bathroom products, aiming to create designs that
fit the principles of universal design. By analyzing the
movements and physiological data of people when they use a
product, designers are able to evaluate how easy it is to use,
and make improvements where needed. In the case of the“Marble Family Sink,” this testing process has helped transformthe product into a form that the whole family can use.

Training in progress

Strengthening and Maintaining Technical
Capabilities for International After-Sales Service
The Yamaha Group offers more than 150 service locations aroundthe world where customers who use Yamaha electronic
instruments, AV products and other electric acoustic products canreceive support. Yamaha Corporation’s After-Sales Service
Department runs a program of service technology training aimed
at technicians who provide after-sales service in locations outside
Japan. This training is designed to improve the participants’abilities to handle repairs, and acts as a channel for the
dissemination of information on production quality. As well as
conducting these sessions at overseas locations on a regularbasis, the Department also
holds training at Yamaha
headquarters every year.
Efforts like theses improve
the technical service abilitiesof the entire Group, andprovide satisfaction andpeace of mind for customers
who use our products forlong periods of time.
Service technology training at an overseas service
location

12 Yamaha CSR Report 2007

Usability testing

Marble Family Sink

*Usability testing:
A system of evaluation in which subjects from a target consumer group are invited
to test a product’s ease of use by trying it out

Yamaha Commercial Audio Equipment Receivesa Technical Grammy® Award
In 2007, Yamaha Corporation received a technical Grammy®
award from the National Academy of Recording Arts andSciences. This technical Grammy® award belongs to a special
category of awards
given to individuals or
enterprises that havemade a substantial
contribution to the fieldof recording. This award
was given to Yamaha inrecognition of thecontribution its many
products have made in
The awards ceremony
this field over the years.
©Robert C. Mora/WireImage.com

Initiatives for Our Shareholders
The Yamaha Group utilizes transparent and effective management practices to achieve sound results
and provide an appropriate return to its shareholders.
The Group also distributes a wide variety of management information and engages in proactive,
ongoing communication to foster shareholder understanding and satisfaction with regard to its activities.

Policies for Retained Earnings and Returns
to Stockholders
Yamaha Corporation has adopted a basic policy for allocating
profits that is linked to the level of consolidated net income in themedium term and provides for increasing the ratio of consolidated
net income to shareholders’ equity by making additions to retained
earnings that are appropriate for strengthening Yamaha’s
management position through investments in R&D, sales
capabilities, capital equipment and facilities, and other areas, while
also placing emphasis on providing a return to shareholders thatreflects consolidated performance. Specifically, Yamaha will
endeavor to sustain stable dividends and sets a goal of 40% on aconsolidated basis for its dividend payout ratio. We also apply
information gained from shareholders and investors to the
management of our businesses, maintaining a constant awarenessof shareholder value. In addition to the results of our shareholder
survey, personnel responsible for investor relations supply top
management with opinions and suggestions from market
participants and institutional investors.
In May 2007 Yamaha Corporation sold a portion of stock held in
Yamaha Motor Co., Ltd. Of the 39.1 billion yen received from thesale excluding tax, we have decided to return approximately 30
billion yen to our shareholders through increased dividends (aspecial dividend of 20 yen per share per year over a three year
period beginning FY2007), and share buybacks (a total of 18 billion
yen over a three year period beginning FY2007).

Investor and Shareholder Communication

Investor Relations Activities to Promote
Understanding of the Company
Yamaha Corporation adheres to a disclosure policy that ensures alevel playing field with regard to the disclosure of information to
private and institutional investors around the world. We supply
management information in a timely manner through multiple
channels, including materials from financial briefings, annuals
reports, and our website. Furthermore, we supply those whorequest it with financial information and announcements of all kinds
through email as it is released. (As of the end of March 2007, thisinformation was supplied to 746 people in Japan and 433 people
outside Japan.) We hold quarterly results conferences for Japanese
securities analysts and institutional investors, and in addition toproviding explanations of results by top management, we conduct
factory tours and strategy conferences for individual business lines
on occasion.
All information released to investors in Japan is translated into
English for release to institutional investors in other countries. In
addition, the president or an alternate top executive travels
overseas several times a year to talk directly with investors about
Yamaha’s operations.
Yamaha is also increasing efforts aimed at the private investor. As
well as implementing a special benefit plan for private investors, we
utilize our website to provide information in an easy-to-understandformat. We work to communicate with private investors,
conducting surveys of private shareholders and participating
actively in events held for them, utilizing the results to improve
investor relations activities and management performance.

Towards an Open General Shareholders’ Meeting
Yamaha Corporation avoids scheduling our general shareholders’meeting during peak periods to enable as many people as possible
to attend. The meeting for FY2006 was held in the hall at Yamaha
headquarters on June 26, 2007. After the meeting closed,
participants were able to listen to a piano recital and were alsooffered the chance to tour the grand piano factory.
Since 2003 we have utilized an Internet-based system that allows
shareholders who are unable to attend the general shareholders’meeting to exercise their voting rights online. In 2006 we installed anelectronic voting platform developed by the Tokyo Stock Exchange,
allowing both custodians and substantial shareholders to exercise
their voting rights directly.
As a result, the voting ratio for FY2006 stood at 75.8%.

Evaluations from Financial Institutions
The trend towards considering the social responsibility as well as
the economic features of an investment when evaluating potential
investments, known as “Socially Responsible Investment (SRI),” ison the rise in Japan. Yamaha Corporation is listed in some of theworld’s most prominent SRI indexes, such as the FTSE4Good
Global Index (managed by Britain’s FTSE*1), the Ethibel
Sustainability Index (managed by Belgium’s Ethibel*2) and theMorningstar Inc. SRI (MS-SRI). In Japan,Yamaha is involved in the
Asahi Life SRI fund, the UBS Eco Fund, and numerous other SRI
funds.

*1 FTSE Corporation:
A joint company established
by Financial Times Ltd., andthe London Stock Exchangeplc.
*2 Ethibel:
An independent consultancy
that works with banks,
brokers, and institutional
investors to make socially
responsible investments.

The general shareholders’ meeting held in June 2007

Yamaha CSR Report 2007

13

Initiatives for the People We Work With
Yamaha Group businesses are successful not only because of their full-time employees,
but also thanks to the contributions of temp staff, affiliated factories, retailers, and many others.
Yamaha uses a variety of methods to make the most of their skills, helping us all to grow and prosper.

Employment
Basic Employment Policies

Training and Education

The Yamaha Group complies with the employment laws of thecountries where our businesses operate, employing appropriate
labor management measures in our labor relations and practices.
With regard to employment, we hold a respect for human rights,
reflected in the manner in which we forbid discrimination, guarantee
the rights of assembly, organization, collective bargaining, andprohibit both forced labor and child labor. We do our best to utilize afair selection process that offers employment opportunities to awide range mixture of people.

•Job-Tailored Training and Education
Yamaha utilizes a system that trains and educates employees aswell as assisting in the development of their careers, believing thatcreating a mutually beneficial relationship between the employee
and the company inspires motivation. Each training program is
tailored to a specific objective in one of the following categories:
Strategic Personnel Development, Function-Specific Training,
Stratified Training, and Self-Development Education.
In the Strategic Personnel Development program, for example,
Yamaha’s renowned Yamaha Management School has expanded
its activities to provide lectures to participants in Group
Companies, and targets personnel who will form the nucleus of
the company in the future. In FY2007 we began offering Global
Management Staff Training to business leaders at Group
Companies overseas. The New Yamaha Advanced Skill School
and Yamaha Technical Training Center provide early developmenttraining to employees at the core of the next generation of line
personnel in Japan. Stratified Training aims to strengthen anddevelop those skills needed at various stages of employment, andoffers training for career development and new managers. In
addition to offering job-tailored training, Yamaha provides
opportunities and information to aid employees over 50 inconsidering their current and futures lives. In FY2007 we
inaugurated the “Life Design Seminar” to assist these employees
to make the best possible use of the opportunities on offer.
Yamaha also provides infrastructure in support of voluntary study
by employees, such as the Self Development Assistance
Education Program, Yamaha Business School (correspondence
education), and the “Yamaha Video Seminar” course. We also
have systems that cater to long-term study abroad, provide time
off for career development, and allow time off for the pursuit of
specific themes.

Consolidated Employment Figures (Unit: persons)
23,56323,90323,82825,29825,992

11,676

12,054

12,14913,564

14,348

11,887

11,84911,67911,734

11,644

2002

2003

2004

2005

2006

OverseasJapan•Senior Partner System
In April of 2004, Yamaha Corporation introduced a Senior Partner
System for those employees who desired to continue working after
the mandatory retirement age of 60. In FY2006 we hired 53 of 81
applicants, and as of June 2007 there were 103 employees working
under this system. In addition to supporting the livelihoods of people
past retirement age, the Senior Partner System employs people
with a rich collection of operational knowledge, skills, andexperience, and offers the collateral benefits of providing newer
employees with experienced direction and education.
•Promoting Employment of People with Disabilities
Yamaha Corporation has worked to create a better employment
environment, promoting and expanding workplace opportunities forpeople with disabilities. In 1989 we took the groundbreaking step of
establishing YP Business Service Corporation, a special subsidiary.*1
At the end of FY2006 the employment rate for people withdisabilities at Yamaha stood at 1.89%.
*1 Special subsidiary
A subsidiary as described in the Law for the Promotion of Employment for People with
Disabilities. These subsidiaries must meet certain criteria, including the number and ratio of
employees possessing a disability. People with disabilities employed at such subsidiaries are
considered to be employees of the parent company for the purposes when calculating theemployment ratio for people with disabilities.

•Systematic and Planned Transmission of Skills
Yamaha Corporation is working to ensure that the technical skillsof its workers are passed on technical skills to the next generation,a problem faced by most Japanese manufacturers. In 1996 weestablished the Skill Registration System to keep a record ofessential skills in each division that need to be passed on. The
system has a record of those who possess these skills and thosethat need to acquire them, as well as a projected timeline for theacquisition. To aid in this transmission of skills, we implemented
the From-To Program in October 1998, pairing up veteran workers
with less-experienced personnel and to set goals and create
action plans to achieve them. At the end of FY2006 there wereapproximately 120 such pairs moving forward on their actionplans.

Employees with disabilities /employment rate
139
(7,220)138(7,074)134(6,876)135(6,997)130(6,924)

Numberemployed(Total staff* 2)(unit: persons)
1.93

2002

1.95

2003

1.95

2004

1.93

2005

Employment
rate (unit: %)
1.89

2006

*2: The employee count in brackets represents the number of people in regular employment at Yamaha.
Employees of Yamaha Metanix Corporation have been included in this figure since FY2005.

14 Yamaha CSR Report 2007

From-To ProgramInitiatives for the People We Work With

Treatment of Partners
Employee Safety and Health•Employee Safety and Health Policy and Administration
Health and safety are the foundations of a rich and rewarding life.
Based on this philosophy, we established an Industrial Safety and
Health Committee at each of the Yamaha Group companies
worldwide. The committee is headed by the Director in Charge ofIndustrial Safety and Health, with a membership comprised of the
branch managers, area leaders, and the leaders of special
subcommittees. These committees work to prevent work-related
accidents by addressing industrial safety and health, traffic safety,
health-promoting activities, disaster prevention, and disastereducation and preparedness.
•Preventing Work-Related Injury and Death
Yamaha Corporation is expanding the safety management
systems employed at our headquarters, factories and other Group
Companies, aiming to improve safety management at all Group
companies in Japan. We were unable to meet our safety goals forheadquarters, factories, or sales offices for FY2006, the first yearof this three-year plan. To improve on this situation, supervisors
are working harder to enforce safety measures, and promote Zero
Accident initiatives. Furthermore, we are pursuing a variety ofactivities such as safety patrols and other workplace inspections
to promote the creation of safe, comfortable workplaces.

•Fair Evaluation and Selection in Partner Relationships
The Yamaha Group views suppliers and subcontractors as
partners in our quest to achieve our business goals, and as such
we practice fair dealings based on mutual trust. When dealing with
our partners, we adhere strictly to the law and to company
regulations regarding fair selection and evaluation. Under thebanner of open procurement, we ensure open, fair, and unbiased
dealings, and a basic policy of conserving natural resources andprotecting the environment. We also meet with supplier andsubcontractors to establish agreement on basic policies andspecific plans. Every six months we hold a meeting of the Councilof Yamaha Corporate Affiliates*3, at which we explain Yamaha’s
production policies for the company as a whole and for ourbusiness lines, and also look at current sales trends.
*3 Council of Yamaha Corporate Affiliates:
This is an organization consisting of representatives from manufacturers contracted to
Yamaha. The council promotes good relations between members, information sharing, andindependent and ongoing research activities, with the goal of improving management ability ateach member business.

•Information Sharing Between Dealerships
In July 2006 Yamaha Corporation opened “Yamaha Dealers Net,”a portal website for authorized instrument dealers in Japan that
integrates sales websites previously separated along product andservice lines, to facilitate the timely transmission of information andincrease operational efficiency. Dealers are able to use this website
to provide an abundance of timely, accurate information on
products, delivery dates, and marketing items over the web. In
March 2007, environmental considerations prompted Yamaha tohalt the use of paper-based reports in favor of web-based internalreporting. Currently, we are working to increase the content
available to approximately 700 companies and 3,500 people
registered as users on Yamaha Dealers Net.

Total Safety Patrol

FY2006 Work-Related Accidents
Frequency

Severity

Goal

Results

Results

Headquarters /Headquarters Factory

0.3 or less

0.61

0.0153

Yamaha Corporation
Sales Offices

0.5 or less

1.21

0

Group Companies
in Japan

1.0 or less

1.73

(Frequency = number of work related deaths/injuries ÷ total man hours x 1 million)(Severity = number of days lost ÷ total man hours x 1 thousand)•Promoting Good Health
To motivate employees to participate in healthy pursuits, Yamaha
Corporation promotes activities such as the Walk for Health, the InHome Health Class, and the Family-Care Health Class on both acompany-wide and business-unit basis. We also promote antismoking measures. Yamaha Corporation strictly enforces nonsmoking areas, offers individual counseling, and holds non-smoking
days in an effort to reduce the number of employees who smoke.

Yamaha Dealers Net

Yamaha CSR Report 2007

15

Initiatives for Society
Yamaha offers inspiration to people around the world throughits policy of contributing to cultural enrichment.
As good corporate citizen, we make a variety of social contributions in orderto share inspiration and enrichment with a diverse range of stakeholders.

Yamaha Music Latin America Marks
10-Year Anniversary in Argentina
Yamaha Music Latin America, S.A.

instruments on hand, or spending time with the cheerful Starlight
Captain. The fund currently operates Starlight Express rooms inchildren’s hospitals at six locations around Australia.

Branches of Yamaha Music Latin America S.A., in Argentina
teamed up with Yamaha Motor Argentina S.A. to stage a charity
concert on October 22, 2006, marking the 10th anniversary of
both companies. More than 3,000 people were entertained forover five hours on the warm sunny day by students from the
Yamaha Music School and the artists of Yamaha. The entry fee forthe event was the donation of a disposable diaper in support of
the Garrahan Hospital for children, which is currently undergoing aperiod of financial difficulty. More than three months worth ofdiapers were collected thanks to the cooperation of artists,
affiliates and the personnel from the two companies.

One of the “Starlight Express” rooms

The Seventh Charity Concert
Yamaha Musical Do Brasil Ltda.

Yamaha Musical Do Brasil held its seventh “All-Stars Concert” on
November 11, 2006. 1,500 people attended this event, which wasstaged with the cooperation of Yamaha Motor do Brasil. The year
2006 marked the seventh time this concert had been held. The
organizers of the concert, which showcases performances by alineup of Yamaha-endorsed musicians, requested that each
person in the audience donate two kilograms of food in place ofan entrance fee. After the concert, the two companies took the
2.5 tons of food collected to Nos do Morro, an NGO that supports
low-income groups in Rio de Janeiro.

10-year anniversary concert in Argentina

Roberto Moure,YMLA
Because of the continued sincerity
we show in our work, everybody,
including the artists, volunteered
their support to this effort free ofcharge.
Even if this time the event was justfelt as a small butterfly flapping its
wings in Yamaha Factory, I believethat eventually it will transform into agreat wind for Argentine children.

Starlight Children’s Foundation

Music for Sick Children

Yamaha Music Australia Pty., Ltd.

Yamaha Music Australia donates instruments to support theefforts of Australia’s Starlight Children’s Foundation in the ongoingestablishment of “Starlight Express” rooms for children who havebeen hospitalized. The rooms are intended as an attempt torelieve their pain and stress.
The children can relax in these rooms by playing with the variety of

16 Yamaha CSR Report 2007

Popular Brazilian musicians performed at the All-Stars Concert

Initiatives for Society

Yamaha Music Central Europe helps
Popularize Wind Instruments in Public Schools with
Yamaha BläserKlasse
Yamaha Music Central Europe GmbH

Since 1994, Germany-based Yamaha Music Central EuropeGmbH has encouraged and supported the young members ofsymphonic brass orchestras at public schools through its unique
Yamaha BläserKlasse program. This program has been
implemented as a part of regular music lessons in public schoolsfor pupils aged 10 to 16, and has been instituted at a total of
1,000 schools in Germany, Austria, and the Netherlands. Throughthe motivation and support provided by Yamaha’s BläserKlasse
concept, thus far approximately 28,000 students have had thechance to enjoy playing music together. BläserKlasse has also
been well received by teachers, parents, and music colleges.

Supporting the Seoul Arts Center Music Camp
Yamaha Music Korea Ltd.

The Seoul Arts Center
Music Camp offers
direct performance
instruction to talented
young pianists fromthe world’s top
exponents of the
instrument. The event,Young Korean pianists who attended
held in January andthe Seoul Arts Center Music Camp
February of 2007 in
Kyongju, Korea, was supported by Yamaha Music Korea.
Promising young Korean pianists with experience in winninginternational piano competitions attended the camp, gaining it
acclaim in Korea as an event that helps young artists in theirefforts to make the jump to the international stage.

Yamaha Corporation of America supports
Special Olympics Southern California
Yamaha Corporation of America

BläserKlasse students

Supporting MusicFest since 1972

Yamaha Corporation of America (YCA) once again provided
support for an athletics event for people with intellectual disabilities
staged in Southern California in June 2006.Volunteers from YCA
helped with the running of the event, and also ran a booth thatallowed the more than 1,300 athletes attending to try out a variety
of musical instruments. The athletes were able to try instruments
such as the player piano and electric piano at their own leisure.
Special Olympics Southern California provides training andathletic events for people with intellectual disabilities, from children
to adults, throughout the year.

Yamaha Canada Music Ltd.

Yamaha Canada Music has sponsored MusicFest Canada every
year since it was first held in 1972. MusicFest reaches 3,700
schools in Canada that offer music classes to an estimated400,000 students. In May 2006, 8,000 of those students traveled
to Ottawa for the finals. In addition to providing instruments, andsupporting clinics with world-class professional musicians,
Yamaha Canada also funds scholarships, provides financial
assistance, technical support and sponsors the MusicFest
National Concert Band and the Yamaha All-star Band (both Bandsconsisting of students chosen nation wide).
The instrument booth at the venue

Carol Baker, YCA
The employees who volunteer their help in
the Special Olympics Southern California
have wholeheartedly enjoyed the activities,
with some volunteering to do it every year.
We are proud to take part in this event,and as company, we feel a sense of deep
connection through our support of Special Olympics Southern
California.
MusicFest in 2006

Yamaha CSR Report 200717

Cooperating to Rebuild Elementary Schools
Damaged in the Yogyakarta Earthquake

Explaining the Structure of a Piano
to Elementary School Students

Six Indonesian Subsidiaries

Yamaha Music Tokai Co., Ltd.

The earthquake that struck
Yogyakarta, the ancient capitalof the Indonesian island of Java,inflicted a great deal of damageon the region. Six local
subsidiaries of Yamaha*1 jointly
contributed a donation of 3
million yen via the Japanese
NGO OISCA*2 to provide funds
for the reconstruction of two
schools in Wiro. The new schoolbuildings were completed in
November 2006, and those
involved in the project gatheredon the 27th of that month for aceremony to honor the project’s
completion.

Yamaha Music Tokai Co., Ltd. contributed its time and expertise toa performance held by Nagoya City University’s Graduate School
for Nagoya city elementary schools in November 2006. For thisproject, students listened to classical pieces played on the piano,
clarinet, and cello, and were given explanations on the uniquecharacteristics and construction of each instrument. The children
were also given the opportunity to try the instruments out forthemselves, helping to deepen their understanding of the
instruments. A technician from Yamaha explained the complex
construction of the piano,
showing the students theintricate movement of parts
that occurs when a key ispressed, and demonstrating
the strings and soundboard
resonating to produce asound right before theireyes.

*1 The six Indonesian subsidiaries:
PT. Yamaha Musik Indonesia Distributor, PT.
Yamaha Indonesia, PT. Yamaha Music
Manufacturing Indonesia, PT. Yamaha Music
Manufacturing Asia, PT. Yamaha Musical
Products Indonesia, PT. Yamaha Electronics
Manufacturing Indonesia*2 OISCA is a charitable corporation
established in 1961 and run under thesupervision of the Ministry of Foreign Affairs,
the Ministry of Agriculture, Forestry and
Fisheries, the Ministry of Economy, Tradeand Industry, and the Ministry of Health,Labour and Welfare. OISCA has a trackrecord of environmental conservation, andpromotion and developmental support ofagriculture in Asia and the Pacific region.

The ceremony of completionof the school buildings

Explaining how a grand piano
makes soundChildren at the completion ceremony

Signing the First Afforestation Contract with
Shizuoka Prefecture and Hamamatsu City
Yamaha Corporation

The rebuilt school buildings

Supporting School Fees for Elementary SchoolStudents in Inland Western China
Xiaoshan Yamaha Musical Instruments Co., Ltd.

Xiaoshan Yamaha Musical Instruments Co., Ltd. donated a year’s
worth of school fees from 2006 to 2007 through the Gesanghua
organization for thirty students attending Jiangzha Center
Elementary School (a school for minority
students) in Sichuan Province, China.
Additionally, Xiaoshan Yamaha cooperated
with moral education initiatives for youth
sponsored by local Hangzhou educational
institutions, donating 500 sets of texts on
moral issues.

A leaflet from the Gesanghua organization (left)
and letters received from the students

18 Yamaha CSR Report 2007

Yamaha Corporation has begun sponsoring forest conservation
activities in Shizuoka Prefecture, where its headquarters andprincipal factories are located. As a contribution to the local region,
we began support for the regeneration of Hamamatsu’s
Enshunada coastal forest in FY2007, participating in a system
implemented by Shizuoka Prefecture to create forests as part of acorporate responsibility program framework for businesses. Under
this system, Yamaha Corporation will conduct a five-year programof soil preparation and broadleaf tree planting. We will also support
the regeneration of the coastal forest, reinforcing its capacity for
health and recreational activities and disaster prevention.
A system for reforestation implemented by Shizuoka Prefecture as for companies that wish tocontribute to society and the environment. This system has the unique aspect of offering
authorized labels (“Smile” labels) depending on the nature of a business’ initiatives, and of issuingcertificates for estimated CO2 absorption for the amount contributed.

This agreement was entered into by Hamamatsu City /Shizuoka Prefecture in March 2007.

Initiatives for Society“Yamaha Forest”—Report on the Second Year of
Reforestation Initiative in Indonesia

Supporting Environmental Conservation Events “Clean & Green Week”

Yamaha Corporation and Six Subsidiaries in Indonesia

Yamaha Music (Asia) Pte., Ltd.

Yamaha Corporation and Yamaha Motor Co., Ltd. are working
together on the “Yamaha Forest” project, a tree-planting initiative inIndonesia. On December 17, 2006 a tree-planting event was staged
to mark the end of the second year of the project. Both companies
have manufacturing and sales networks in Indonesia, and see theinitiative, which was started in 2005, as a method of contributing tosociety by providing environmental education and protection
through the planting of trees. The OISCA-supported project plans toplant between 150 and 200 thousand trees in 120 hectares over a
five-year period.
On the day, approximately 1,600 local residents and administrators
gathered, along with around 50 people from Yamaha Corporationand its six local affiliates to plant 13,500 mahogany, Albizia
Falcataria, eucalyptus,
and other trees withlocal children. The staff
from the YamahaGroup took part inexchanges where theygave the students
presents of schoolsupplies.

The 17th “Clean & Green” Week organized by Singapore’s
Ministry of the Environment was launched on November 5, 2006,
and featured a range of events aimed at promoting environmental
conservation. One such event was a song and dance competition
themed on environmental protection held by Nan Hua HighSchool. Yamaha Music (Asia) provided instruments and prizes,
and our music director was one of the judges for the competition.

Giving a prize at the competition

Joining Regional Clean-up Campaigns
Tree-planting in action

Children gathering in front of the monument created for Yamaha Forest, ready to plant trees

Rini Kusniati

PT. Yamaha Musik Indonesia Distributor

In Indonesia, global warming and rapid
development have come to mean thatsome areas flood with every heavy rain.
My own home was flooded to chestheight in the rains of February 2007.
Through participating in the planting of
Yamaha Forest, I gained an awarenessof the importance of protecting theenvironment. I hope that by continuing this initiative, we can returnthe forests to the mountains and help clean the air, for ourselves,and for future generations.

Yamaha Corporation and Yamaha Livingtec Corporation

The Yamaha Group participates actively in beautification
campaigns as a corporate citizen, contributing to environmental
conservation in every region in which we have a presence. In
FY2006 we volunteered our time to two clean-up campaigns in
the Hamamatsu area. We took part in the “Lake Hamana Cleanup Campaign,” an event sponsored by Hamamatsu city, home to
Yamaha Corporation Headquarters, and in the “Lake Sanaru
Clean-up Campaign,” an event taking place near Yamaha
Livingtec Corporation Headquarters. Other Yamaha factories
participated in suchinitiatives as co-sponsoringclean-up campaigns withlocal community groups,
and collecting garbage
and cleaning in the areas
around our factories. 900
people from Yamaha,
including members of
employees’ families, took
part in the garbage
collection and cleaning,collecting a total of 3.5
tons of garbage.

Clean-up campaigns at
Lakes Sanaru (left,above)and Hamana (left).

Yamaha CSR Report 2007

19

Environmental Initiatives
Yamaha places a high priority on the environment. In order to recycle resources andreduce the environmental impact on society as a whole, Yamaha promotes a variety of eco-friendly initiatives instages from raw material procurement, development and production, and utilization right through to disposal,
in compliance with both the law and the Yamaha Policy on the Environment.

Development of Environmental
Management Systems

Yamaha’s Policy on the Environment
PremiseEnvironmental Management Structure
In 1994, the Yamaha Corporation laid out its basic stance on
environmental issues in the Yamaha Policy on the Environment and,in accordance with environmental management regulations,introduced a companywide, cross-sectional environmental
management committee called the Environmental Committee. Since
then, the Group has worked to advance the implementation ofenvironmental management systems throughout the entire YamahaGroup and to promote environmental conservation initiatives.
Decisions concerning environmental activities are made when theEnvironmental Committee convenes biannually. Its principle
functions include the setting up of working groups whose members
are drawn from Group companies and the implementation of
measures that conform to this theme of environmental conservation,such as the design of plans and organizational structures. In 2006,
the Yamaha Corporation set up the Logistics Energy Conservation
Working Group in accordance with revised energy conservation
laws, and the VOC Emission Reduction Working Group inaccordance with revised air pollution control laws in Japan.

Completion of ISO14001 Certification ofMain Sales Offices
The Yamaha Group began construction activities for the ISO14001
international standard for environmental management systems in
1997. Our main sales offices began constructing systems in 2004,
with the Tokyo office acquiring certification in 2005, and the Osakaand Nagoya offices obtaining certification in 2006. All three offices
are active in their environmental conservation endeavors.
Energy conservation activities were particularly successful in
FY2006. Reevaluating office temperature and lighting andimplementing strict controls led to a drop in gas consumption at
the Osaka office of 32% when compared to the previous year, withelectricity consumption down 14%. The Nagoya office was able toachieve a 20% reduction in electricity consumption.

Earth exists not only for those of us who currently live on it, butalso for our descendants. We must live in a way that will ensure afuture for our children and grandchildren. It is, therefore, our duty
to protect our valuable environment so that all living creatures cancontinue to live on this planet forever.

PolicyYamaha’s corporate objective is to continue to create Kando andenrich culture with technology and passion born of sound andmusic, together with people all over the world. We have to be awarethat corporate activities are deeply related to the environment, andwe at Yamaha acknowledge our responsibility to nature. We arededicated to enriching people’s lives and helping to preserve theenvironment as we live together harmoniously in society.

The Six Principles of Yamaha’s Corporate
Environmental Activity
1. Make efforts to develop technology and provide products thatwill be as sensitive as possible to the earth’s animals, plants,
and the environment.
2. Promote energy-saving activities and make effective use ofresources in the areas of research and development,
production, distribution, sales and service.
3. Minimize and recycle waste products, and simplify waste
disposal procedures at each stage of production anddistribution, as well as during and after use.
4. Strictly follow environmental rules and regulations, encourage
environmental protection activities, and ensure the well-being of
employees and citizens by practicing sound environmental
management.
5. In developing operations overseas, make environmental
protection a priority through investigation and understanding of
the environmental standards of the host country.
6. Actively distribute information, contribute to the community, andcarry out educational activities concerning environmental
preservation.

ISO14001 Certification Status
Yamaha Corporation Factories in Japan 6 Locations
Group Companies in Japan (Manufacturing) 7 Locations
Resort Facilities 6 Locations
Overseas Group Companies (Manufacturing) 15 Locations
Yamaha Corporation Main Sales Offices 3 Locations
Tokyo OfficeOsaka Office
Nagoya Office

2001/03 Complete
2002/09 Complete
2004/03 Complete
2004/03 Complete
2005/10 Certified
2006/10 Certified
2006/10 Certified

Environmental Management Structure
President
Environmental Management
Committee
Committee Chairman:Director and Executive Officer
Secretariat: Environmental & Facilities Management Division

Yamaha Environment-Related Information System (Yecos)

Environmental Committee
Chairman: Senior manager
Typical subcommittees at factories and offices*

The Osaka office (left) and Nagoya office (right) 2006, both of which were certified in FY2006*In the “Environmental Initiatives” section of this report (pages 20-33), “Yamaha Group” refers to
Yamaha Corporation and other manufacturing companies belonging to the Yamaha
Corporation in Japan. For detailed environmental performance data, see this web page :http://www.global.yamaha.com/about/environmental_activities.html
Icons indicate the appropriate fields

20 Yamaha CSR Report 2007

Working Groups•Environmentally-friendly
procurement of timber•Promotion of Zero Emissions•Logistics Energy Conservation•VOC emission reduction, etc.

Group Company
Environmental Committee
Chairman: President of the company
Typical subcommittees at Group Companies*

Product Assessment Group

Product Assessment Group

Chemical Substance Group

Chemical Substance Group

Energy Conservation Group

Energy Conservation GroupResource/Waste GroupResource/Waste Group

ISO14001 activities organizations* Actual subcommittees may vary depending on the place of business or the Group company.
* The RoHS directive compliance working group now acts as the green procurement working
group for the Quality Committee.

Environmental Initiatives

Goals and Achievements
Goal
Environmental
Management
systemCompleted•Extend ISO14001 certification across the Yamaha
Group•Expansion of the Yamaha Environment-Related Information
System (Yecos) within the Yamaha Group•Implementation of Yecos in main sales offices

Completed•Extend the input items of main sales offices•Implementation of Yecos at resort facilities

Ongoing•Continue with implementation of Yecos at resort
facilities•Upgrading of Yecos

Completed•Establishment of the Logistics Energy Conservation
Working Group

Completed•Set and implement goals for logistics energy
conservation activities•Establishment of the VOC Emission Reduction
Working Group

Completed•Set and implement goals for the reduction of VOCemissions•Provision of internal environmental auditor training
31 employees of the Yamaha Corporation and 16
employees of Group companies in Japan qualified(giving a current total of 789 qualified auditors)

Completed•Environmental seminars (258 participants)“Conservation of the world‘s forests: corporate
citizenship initiatives”

Completed•Completion of the transition to unleaded solder in the
production of all wind instruments

Completed•Implementation of LCA for pianos, Electone™ electronicorgans, AV products, string instruments, and percussion
instruments•Implementation of employee training on environmentallyfriendly designs
Completed •Implement LCA for unevaluated product groups andnew products•Evaluation of the recycling of used electronic music products

Ongoing•Conduct a trial of used electronic music productrecycling•Compliance with China’s Administrative Measure on theControl of Pollution Caused by Electronic Information
Products

Completed•Continue with attainment of compliance with RoHS-likestandards in places such as the United States of America, thePeoples’ Republic of China, and the Republic of Korea.

•Expand RoHS compliance measures to those products
not subject to the RoHS directive, and to products notshipped to the European Union

Completed•Continue with expansion of RoHS compliance measures
to those products not subject to the RoHS directive andto products not shipped to the European Union•Establishment of procedures based on international guidelines forascertaining the chemical substances contained in parts

Ongoing•Investigate procedures for management of chemical
substances contained in products which meettightened international regulations•Enactment of guidelines for timber procurement and use

Completed•Investigate procedures for a feasibility study into woodsustainability•6% reduction in CO2 emissions on FY1990 levels by FY2010(Yamaha Corporation Headquarters, factories, and YamahaGroup manufacturing companies in Japan)•2.3% reduction on FY1990 levels of CO2 emissions(106,000 tons CO2/year: identical levels to the previous year)

Completed•6% reduction in CO2 emissions on FY1990 levels by FY2010(Yamaha Corporation Headquarters and Yamaha Group
manufacturing companies in Japan)•1% reduction in CO2 emissions per unit of sales on FY2005•2.4% reduction on the previous year of CO2 emissions
per unit of sales (246,000 tons CO2/100 million yen)Completed•1% reduction in CO2 emissions per unit of sales on
FY2006•Achieved zero emissions in 4 Yamaha Group
production-related companies in Japan

Completed•Achieve zero emissions in all Yamaha Group
companies in Japan by the end of FY2007•Promotion of environmentally friendly product development•Attainment of compliance with RoHS-like standards

Prevention of
global warming

Future initiatives•Acquisition of ISO14001 certification by Osaka and Nagoya
offices (The Tokyo office acquired certification in FY2005)•Promotion of environmental training and education activities

Green
procurement

Status•Acquisition of ISO14001 certification in main sales offices(Tokyo, Osaka, and Nagoya) by the end of FY2006•Enhancement of the Environmental Management structure

Product
development

Achievements in FY2006•Promotion of green procurement

Waste reduction •Achievement of zero emissions by the end of FY2007(Yamaha Group companies in Japan)•Continue with internal environmental auditor training
seminars•Continue with environmental seminars•Maintain elimination of HCFCs

Protection of
the ozone layer•Elimination of HCFCs from manufacturing processes by
FY2010 (Yamaha Corporation Headquarters, factories, andYamaha Group manufacturing companies in Japan)•Achieved complete elimination of HCFCs frommanufacturing processes in April 2005

CompletedManagementof chemical
substances•20% reduction in emissions of PRTR-designated substances on
FY2002 levels by FY2006 (Yamaha Corporation Headquarters,
factories, and Yamaha Group manufacturing companies in Japan)•18% reduction on FY2002 levels of PRTR-designatedsubstance emissions (135 tons)

Ongoing•Continue with reduction in emissions of PRTR-designatedsubstances in VOC emission reduction activities•Implementation of initiatives for the reduction of VOCemissions (Yamaha Corporation Headquarters and YamahaGroup manufacturing companies in Japan)•Researched and collected data on VOC emissions
Completed•Set goals and implement activities for the reduction of
VOC emissions (FY2010)

Groundwater
purification•Ongoing purification of groundwater (3 sites)•Purification at two sites has improved water quality to thepoint where it exceeds that required by environmental law

Completed•Continue using pumped water aeration and activatedcarbon absorption methods for groundwater purification

Socialcontribution•Conservation of forests outside of Japan
Plant 150,000 to 200,000 trees on land (120 ha) in “Yamaha
Forest” in Indonesia by 2009

•Planted 13,500 trees on land (18ha) in “Yamaha Forest”
in Indonesia

Completed•Plant 150,000 to 200,000 trees on land (120 ha) in“Yamaha Forest” in Indonesia by 2009

•Conservation of forests in Japan
Provide support for regeneration by 2011 of the Enshunada
coastal forest•Concluded an agreement with Shizuoka Prefecture toprovide support for the regeneration of the Enshunada
coastal forest

Completed•Volunteer planting of trees by Yamaha employees(support for the regeneration of the Enshunada coastal
forest)•Conducting of and participation in local cleanup campaigns•900 people participated in local cleanup campaigns

Completed•Continue participation in local clean-up campaigns•Implementation of educational programs for the prevention of
global warming through publication of the Household EcoAccount Book

•The 2,569 employee households have contributed tothe prevention of global warming because of the “Smart
Life Guide”

Completed•Continue educational programs for the prevention of
global warming using the “Smart Life Guide”•Disclosure of environmental information by publication of a
CSR report•In accordance with a greater emphasis being placed on thereporting of information related to corporate social
responsibility (CSR), the name of this report was changed
from the Environmental and Social Report to the CSR ReportCompleted

Environmental
communication•Improve information gathering from overseas Group
companies

Yamaha CSR Report 200721

Material Balanceenvironment and in promoting the environmental conservation
activities needed for the development of a sustainable society.
Yamaha is actively pursuing energy and resource conservation,
waste reduction, hazardous substance reduction or replacement,
and other such activities in all phases of the lifecycle of a productor service.

The Yamaha Group produces a wide variety of products andservices, including musical instruments, AV/IT equipment,
lifestyle-related products, semiconductors, specialty metals, andautomobile interior components. Understanding the flow ofmaterials in these varied business activities is essential in further
clarifying the relationship between a company and the* Yamaha Group: Yamaha Corporation and other manufacturing
companies belonging to the Yamaha Corporation in Japan.

INPUT

OUTPUT

Yamaha Group*

Comparisons with FY2005
figures are bracketed

Energy * Used in power generation
Purchased electricity
Natural gas

Gas emissions

188 million kwh(+2%)

CO2 emissions

7,400 kℓ(-11%)

Other greenhouse gas emissions(measured in tons of CO2)

Heavy oil

Comparisons with FY2005
figures are bracketed

2,770,000 m3 (+128%)

LPG, etc.

2,000 tons(-37%)

Coke

1,500 tons(+13%)

106,000 tons-CO2(0%)

16,000 tons-CO2(-4%)

SOX emissions

24.1 tons(0%)

NOX emissions

87.6 tons(-15%)

Wastewater
Water
Tap water

89,000 m3(-2%)

27,000 m3(+9%)

Ground water

2,300,000 m3(-4%)

Total water used

2,420,000 m3(-4%)

Industrial-use water

Water reused in
production processes

207,000 m3

Discharged into
public drainage

Procurement

Amount of HCFCs used(+8%)

0.0 tons(0%)

135 tons(-6%)

11 tons(+2%)

Amount of HCFCs released

0.0 tons(0%)

4,800 tons(+21%)

Valuable waste

IN

Development

OUT

Amount of valuable waste
generated

Waste

Raw materials

Amount of waste generated

Wood
Lumber (wood boards)

20,800 m

3(-1%)

Plywood

7,300 m3(+22%)

Fibreboard

27,800 m3(+70%)

3(+29%)

Iron

6,240 tons(+10%)

Copper

1,980 tons(-22%)

Nickel

840 tons(+10%)

Other

560 tons(-7%)

Iron (scrap)

3,600 tons(+36%)

Copper (scrap)

3,370 tons(-3%)

Nickel (scrap)

100 tons(-81%)

Other scrap

20 tons(-17%)

Total

55,900 m

Amount of final disposal tolandfill

CO2

Cardboard

(-5%)

Paper

190 tons(+29%)

Plastic

330 tons(-2%)

380 tons(-1%)

3,550 tons(-3%)

Other (wood, etc.)
Total used

22 Yamaha CSR Report 2007(+7%)

50 tons(-87%)

7,231 tons-CO2(-8%)

Output substances
CO2:

Production

CO2produced as a result of the fuelconsumption and electricity and gas use

SOx: Sulfur oxides produced as a result offuel consumption
NOx: Nitrogen oxides produced as a result of gas
and fuel consumption
Wastewater:
Domestic wastewater and wastewaterfrom manufacturing processes* Only materials subject to
Yamaha’s Containers andPackaging Recycling Law

2,650 tons

17,700 tons

CO2 emissions in logistics

CO2 emissions

Metal * Metal ore purchases only

Packaging materials(+18%)

Chemical substances(-7%)

1,194 tons(-15%)

5.6 tons

Amount of PRTR-designatedsubstances released
Amount of PRTR-designatedsubstances transferred

Chemical substances
Amount of PRTR-designatedsubstances used

1,830,000 m3

BOD (public drainage)

BOD: Biochemical oxygen demand, or the amount of oxygen
required for biochemical oxidation of sludge
Valuable waste:
Emissions that can be sold for a price

Logistics

Waste:Waste specified by the Waste Management
and Public Cleansing Law, including sludge,
waste oil, waste acid, waste alkali, waste plastic,
metals, glass, ceramics, and ash, etc.

Environmental Initiatives

Environmental accounting data for overseas Group companies(Manufacturing) and resort facilities is available on our website.

Environmental Accounting

2004 they have also been implemented at some overseas Group
companies (production sites). The Yamaha Group will continue togradually expand these practices to other overseas Group
companies in the future.

Yamaha introduced environmental accounting in 1999 as ameans of quantitatively evaluating the effectiveness of its
environmental conservation activities. These environmental
accounting practices were then implemented at Yamaha Group
manufacturing companies and resort facilities in Japan, and since

Environmental Costs (unit: million yen)

Data for: Yamaha Group
Details

Pollution prevention
Energy Conservation, etc.
Waste, etc.
Upstream/downstream costs
Management costs
Research and development costs
Social activity costs
Environmental damage costs
Business area costs

Prevention of air, water and soil pollution, etc.
Prevention of global warming, protection of
the ozone layer, etc.
Waste recycling, resource saving,conservation of water, etc.
Recycling of products, improvements inlogistics, etc.
Environmental education, ISO14001,
greening of premises, etc.
Development of environmentally friendly
products, models, etc.

Social contributions, etc.
Groundwater purification, etc.
Total

Expenses*2
Consolidated
623.4
97.4
861.0
166.9
605.6
356.0
30.3
19.1
2759.7*1 Equipment investment refers to investment in factories and equipment made for environmental
conservation objectives. The figure is calculated by multiplying the purchase price of individual
pieces of equipment by a figure determined by the proportion of the environmental
conservation purpose to the whole purpose of the purchase of such equipment (e.g., 0.1, 0.5,
1.0).
*2 Expenses refer to personnel and other costs expended for environmental conservation
activities. Personnel expenses are calculated by multiplying the time spent on environmental
conservation activities determined by the manager of each department by a common unit costof personnel expenses set in each company. Costs are determined by multiplying the amounts
paid externally by a certain figure calculated using a proportional distribution method as in
the case of investment amounts (e.g., 0.1, 0.5, 1.0). Depreciation costs are not included.

Environmental Investment (unit: million yen)

1,007
863

Equipment Investment*1
Consolidated
630
117.9
23.2
0
35.1
0
0
806.2

806

491
379

Environmental Costs
2002

2003

2004

2005

Environmental capital investment by the Group as a whole rose
430 million yen in FY2006, reaching 810 million yen. This
investment was mainly directed towards the upgrading of thewaste water treatment facilities of the Saitama factory and theinstallation of a cogeneration system at the Tenryu factory.
Environmental costs for the Yamaha Group fell 10 million yen.

FY2006

Environmental Expenses (unit: million yen)
2,984

2,723

2,777

2,770

2,760

Environmental Effects
1. Environmental Conservation Effects
2002

2003

2004

2005

FY2006

Environmental Conservation Effects
Details
CO2 emissions
Greenhouse gas
emissions

Water consumption
Waste treated or
disposed ofChemical substances
released*3
CFC substitutes
emissionsUnit
10,000 tons CO2
10,000 tons CO2
10,000 m3
1,000 tons
tons
tons

FY2005
10.6
1.7
252
0.35
143
0.0

FY2006
10.6
1.6
242
0.05
135
0.0

Change
0.0
0.1
10
0.30
8
0.0

Minus (-) indicates an increase.
*3 “Chemical substances” refers to those substances subject to the PRTR Law that the YamahaGroup in Japan uses

Economic Effects (unit: million yen)
Details
Total savings
Electricity and heating
costs

Water costs
Sewerage costs
Waste disposal costs
Income from sale ofvaluable wastes

Economic effect

FY2005
3,079
28
33
454
94

FY2006
3,242
29
40
466
212

Saving
-183
-163
-1
-7
-12
212
29

CO2 emissions for the Yamaha Group were approximately equal
to those of FY2005. Measures such as recycling circulating
cooling water enabled a reduction in water consumption of about
102,000 m3.
As a result of the Group’s recycling efforts to achieve zero
emissions, final disposal to landfill was reduced by 300 tons.
By using different raw materials, the Group was also able to cut
emissions of chemical substances by 8 tons.

2. Economic Effects
Heating and lighting costs rose168.6 million yen to 3,241.3 million
yen as a result of a steep rise in the price of fuel. Water costs fell
900,000 yen to 29.1 million yen and sewerage costs fell 7.3
million to 40.1 million yen. Waste disposal costs rose to 465
million yen, an increase of 11.3 million yen. Additionally sales ofvaluable wastes increased by 118.5 million yen to 212.1 million
yen, for a total economic effect of 29.4 million yen. All figures
presented are actual figures from the accounting register, and do
not include any estimates whatsoever.

Minus (-) indicates an increase.

Yamaha CSR Report 200723

Environmental Risk Management
Complying with Environmental Law

Environmental Accidents and Litigation

To reduce the environmental impact of its production activities,
products, and services, the Yamaha Group complies withenvironmental law, and has adopted voluntary standards that go
beyond legal requirements. The Group utilizes an environmental
management system in carrying out inspections, measurements,
and compliance evaluations at all its locations. The YamahaGroup is taking measures to prevent pollution and to comply withthe law.

The Yamaha Group incurred no penalties, minor fines, litigation,or serious complaints for environment-related issues in FY2006.

Principle environmental legislation to which
the Yamaha Group is subject
Pollution-, energy-,
and land use-related laws

Recycle- andwaste-related laws

Others•Basic•Fundamental Law for•PRTR* Law

Environment Law

Establishing a Sound
Material-Cycle Society•Industrial Safety and Health Law•Law for the Promotion of•Fire Service Law•Air Pollution

Control Law

Effective Utilitiesof Resources•Water Pollution

Control Law•Waste Management and Public

Cleansing Law•Private Sewerage

System Law•Sewerage Law•Offensive Odor

Control Law•Noise Regulation Law•Vibration

Regulation Law•Water for Industrial

Use Law•Plant Location Law

By internal standards, however, two emergencies were
determined to have occurred: a heavy-oil leak and a waste-liquid
spill. In both instances, administration was notified immediately
and emergency measures implemented to prevent the spread ofpollution. As a result, the accidents did not violate legal standards
and had no substantial impact on the outside environment. To
prevent a recurrence of such incidents, permanent measures
such as functional improvements to the monitoring system,
enhancement of hardware, and revisions to operation manuals
have been adopted.

Accidents in FY2006
Description of
the accident•High Pressure Gas Safety Law•Poisonous and Deleterious

Factory

Phosphoric acid waste fluid wasdischarged in the wrong placewhen switching to newequipment, resulting in a rise in
the concentration of phosphoricacid in the discharge water.
(Not a violation of legal
standards)

As soon as the incident occurred, the waste
fluid was treated to prevent contaminatedwaste from being discharged into the outsideenvironment.
Following this, the waste water treatment
plant equipment was re-examined, fail-safe
functions enhanced, and employee training
conducted.

Resortfacility

Damage to a pipe connecting
the heavy-oil storage tank to theboiler. This resulted in a heavyoil leak, as well as a film of oiland smell of oil around therainwater discharge outlet.
(Not a violation of legal
standards)

A clean-up was immediately performed using,among other things, mats to adsorb oil film,
and an oil/water separator was installed.
Following this, the extent of soil pollution wasinvestigated and countermeasures such as
the replacement of contaminated soil were
implemented.

Substances Control Law•Law for Promotion of Sorted

Collection and Recycling ofContainers and Packaging•Law Concerning Special•Electric Household Appliance

Recycling Law•Law Concerning the Recovery and
Destruction of Fluorocarbons•Food Recycling Law•Soil Contamination

Measures against Dioxins

Countermeasures Law•Construction Materials

Recycling Law•Law Concerning Special

Measures against PCB Waste•Law for Recycling End-of-Life

Vehicles•Law Concerning the Promotion•Law on Promotingof Measures to Cope with
Global Warming

Green Purchasing•Law concerning the

Rational Use of Energy•Law Concerning the Protection

Impact on surroundings andemergency responseof the Ozone Layer throughthe Control of Specified
Substances and Other Measures* PRTR: An abbreviation for Pollutant Release and Transfer Register. The PRTR Law is anabbreviation of the Law Concerning Reporting, etc. of Releases to the Environment of SpecificChemical Substances and Promoting Improvements in their Management.

Automatic Shutdown Device Installed on the
Factory Wastewater Outlet(Toyooka Factory)

Emergency Responses and Drills
Under the ISO14001 system, the Yamaha Group tries toanticipate emergencies by considering past accidents andincidents that could potentially have a marked impact on theenvironment, such as leaks of oil, grease, or hazardous
substances. Each location takes measures to ensure that theequipment and facilities required to respond to such
emergencies are provided and that emergency drills are
conducted for the specified emergencies.
Manuals conforming to the operational practices of each division
have been made, andemergency drills are
regularly conducted tomake sure that theprocedures are being
properly followed, ensuring
a prompt and appropriate
response to any possible
situation.
Emergency drill at the Yamaha Corporation’s Kakegawa
Factory to train for an accidental leak occurring while transporting materials

24 Yamaha CSR Report 2007

To improve environmental risk management at the Yamaha Corporation’s
Toyooka Factory, an automatic shutdown device was installed on the endof the discharge outlet for the factory wastewater in September 2006. If
the device detects a pH value in the factory discharge water in excess of
the user-defined standard value, an automatic shutdown is performed. In
addition, if certain pollutants leak into the gutters, a remote shutdown canbe performed to prevent it from polluting the outside environment.

Automatic Shutdown Device on the Factory Wastewater Outlet

Environmental Initiatives

Environmental Audits, Inspections, and Patrols
The Yamaha Group periodically conducts internal and external
environmental audits in accordance with ISO14001. In addition tothis, environmental specialists conducted environmental patrols
during Environment Month, held in June of 2006, to check that
operational management and compliance conform to therequirements of environmental law. Corrective action is promptly
taken if any areas are identified as requiring improvement, andcontinuous improvements to the environmental management
system and environmental risk management are made to avoid
emergencies and major instances of non-compliance.

Environmental Audit System
External Auditing Agencies (ISO14001)
External audit

External audit

Environmental
study

Factory A

Headquarters

Environmental
study

Environmental patrol(mutual check)

Internal audit

Purification and Management of Soil and
Groundwater
Since the discovery in 1997 that soil and groundwater at three of
its factories had been polluted with a chlorinated organic solvent,the Yamaha Group has worked to ensure the safety and securityof local residents by conducting surveys, taking corrective
measures, and introducing preventative measures. As soon as
the discovery was made, purifying equipment was installed, andthe recovery and purification of the solvents in the soil andgroundwater was begun. As a result of these efforts, levels ofgroundwater contamination at the Yamaha Metanix Corporationand the Yamaha Corporation’s Toyooka Factory had met or
bettered environmental standards by the end of FY2005.
Purification and monitoring are still underway. The groundwater at
the factory in the Yamaha Corporation’s headquarters complex isnow close to meeting environmental standards, having employed
the pumped water aeration and activated carbon adsorption
methods of purification. Efforts to promote purification measures
will continue.
Soil purification was completed at all three factories by 2000.

Factory B
Internal audit

Waste Materials Management Audit
In 2004, the Yamaha Group established a risk management
system for waste materials to ensure that waste is managed in an
appropriate manner. In FY2006, the biennial production site
inspections of all Yamaha Corporation business unit operations
were conducted by waste specialists from Headquarters.
A specialist inspection of industrial waste contracts, industrial
waste manifests, account books, storage facilities, and otherdetailed aspects of operational management revealed 38 areas
requiring improvement. Corrective action was promptly taken
and, in order to improve waste material management throughout
the entire Group, information pertaining to these areas was
disseminated through e-mail and published on an environmental
information site on the corporate intranet.

Groundwater purification equipment at the factory in the Yamaha Corporation’s headquarters complex

Appropriate Management and Processing Planningfor PCB Wastes
The Yamaha Group stores and manages devices containing
PCBs at 16 business locations around Japan (5 transformers,
175 capacitors, and approximately 5,500 stabilizers) inaccordance with the PCB Special Measures Law. In 2006,
Yamaha conducted a survey regarding low concentration PCBtransformers, and will continue to provide thorough storage andmanagement of the necessary equipment. As 20 or more PCB
devices are stored at its two facilities in Shizuoka Prefecture,
Yamaha has, in accordance with Shizuoka Prefecture guidelines*1,
submitted a PCB waste disposal plan for organizations that store
large quantities of PCBs.
The Yamaha Group has also registered disposal plans for 176
devices with the Japan Environmental Safety Corporation, whichis responsible for the disposal of PCB waste, and has taken
measures towards ensuring reliable disposal.
*1 Shizuoka Prefecture guidelines: policy guidelines for a PCB waste disposal plan fororganizations that store large quantities of PCBs.

Environmental patrol at the Yamaha Corporation’s Iwata Factory

Yamaha CSR Report 200725

Education and Training
Environmental Education

The “Smart Life Guide” Household Eco-Account Book

Yamaha provides its employees with training on environmental
issues to raise their environmental awareness and so improve thelevel of environmental conservation activities. Environmental
training is divided into General Training, Specialist Training, andISO14001 Training. General Training provides training on basic
environmental concepts, with participants ranging from new
employees to employees enrolled at Yamaha’s Advanced Skill
School and members of the board of directors. Specialist training,
meanwhile, provides a training curriculum tailored to specificspecialties, targeting mainly employees engaged in environmentrelated areas of business. ISO14001 training is conducted at eachplace of business and for each division in accordance with apredetermined plan.
The Group also encourages its employees to acquire environmentrelated public certification and to participate in external classes, forwhich it has established a fee-reimbursement system.

About one-fifth of Japan’s emissions are generated byhouseholds, making them a significant contributor to global
warming. Realizing that addressing this is essential if Japan is toachieve its 6% reduction target under the Kyoto Protocol, theYamaha Group began distributing its “Smart Life Guide”
Household Eco-Account Book to all employees in FY2003 toraise awareness of global warming prevention.
The number of participating households in FY2006 reached arecord high of 2,569 (about 9,300 people in total). An average
reduction in CO2 emissions of 3% per household compared to theprevious year was achieved.

Number of Participants in
the Smart Life Guide Initiative(unit: no. of households)
2,569

Environmental Training Programs FY2006
Generaltraining

Specialist
training

1,982

1,933

2004

2005

Type of training
New employee training
Product manufacturing seminar

Participants
New employees
All applicants

Environmental management courseat Yamaha’s Advanced Skill School

Employees enrolled at Yamaha’s
Advanced Skill School

596

Environmental management course at
Yamaha’s Technical Training Center

Employees enrolled at Yamaha’s
Technology Research Laboratory

2003

Environmental seminar
Wastewater treatment facility
operations manager training

Directors and all employees

CO2 emissions per household

Wastewater treatment operations
managers from Japan and overseas(unit: kg CO2)

Waste manifest workshops
Skills improvement training for inspectionof waste disposal contractor sites

Employees in charge of environmental
issues and divisions engaged inenvironment-related business

819

795

804

778

2003

2004

2005

FY2006

General training (environmental
ISO14001 policies, purposes, objectives, etc.)
training
Special training (operations that havea considerable impact on the environment)/training for publicly certified personnel

Smart Life Guide

All employees
Employees in charge of environmental
issues and divisions engaged inenvironment-related business

Internal audit training

Employees designated for training
as internal environmental auditors

Emergency response training

Employees in charge of environmental
issues, divisions engaged in environmentrelated business, and other employees

FY2006 Environmental Seminar:“Conservation of the world’s forests:
corporate citizenship initiatives”
by Cho Hiroyuki of OISCA

Participating in Team Minus 6
Since FY2005, the Yamaha Corporation has participated in Team
Minus 6, a national campaign for the prevention of global warming
whose launch coincided with the implementation of the Kyoto
Protocol. In addition to the energy conservation activities it is alreadypursuing, Yamaha has also instituted a “No Necktie” policy as partof its efforts to conform with the Japanese government’s Cool Biz
campaign and is participating in “Black Illumination 2007,” acampaign sponsored by the Ministry of the Environment toencourage companies to switch off the signs at their facilities.

26 Yamaha CSR Report 2007

FY2006

Discussion Forums for Environmental Issues(Kakegawa Factory)
To increase local residents’ understanding of its environmental initiatives,
the Yamaha Group has held informal gatherings and discussion forums ineach location. The Kakegawa Factory, Yamaha’s manufacturing site for
pianos, held a forum to discuss environmental issues with local residents
on March 22, 2007. As part of the risk communication activities being
pursued by Shizuoka Prefecture with all businesses in the area, Yamaha
is holding seminars and factory tours to ensure that local residents havea correct understanding ofchemical substances andto facilitate an exchange of
information on corporate
environment initiatives.
Yamaha will continue tomake every effort to build
closer ties with the local
community to further
mutual understanding anddevelopment.

TOPICS

Environmentally Friendly Manufacturing of Musical Instruments

Making the Transition to Lead-Free Solder in Wind
Instrument Production
Even today, Yamaha trumpets, flutes, horns, and other wind instruments pass through a surprising number ofhands during manufacturing. Yamaha uses only lead-free solder in the many soldering operations required to join
the intricate metallic parts of a wind instrument. A number of manufacturing companies made the transition tolead-free production prior to and following the enactment of the RoHS directive in July 2006, but Yamaha is thefirst company in the world to have eliminated the use of leaded solder from the production of wind instruments,
despite the fact they are not subject to the RoHS directive. The move to lead-free solder in all wind instruments
shipped from Yamaha factories in Japan and overseas was begun in 2000 and completed at the end of 2006.
The following provides firsthand accounts of the transition to leadfree solder from two of its proponents in Yamaha Corporation'sWind, String & Percussion Instruments Division: Keiji Sone,
Manager of the Product Development Department, and ShunichiNiwata, Manager of the Wind Instrument Design Section.

after increasing the precision of the parts, adjusting the soldering
temperature, and refining the production process.
Sone : “After all, as we are musical instrument manufacturers, it’s
not like we could just say, ‘we want to use a moreenvironmentally-friendly solder, so you’ll just have to make do withan inferior sound quality.’”

The First Challenge: Selecting the Solder
The Yamaha Corporation took its first steps towards acquiring
ISO14001 certification for its main factories in 1997. Then, in
2001, Yamaha established the Lead-Free Project for its wind
instrument business to further reduce the risk to the environment.
Niwata: “Actually, the Wind Instrument Design Group began
experimenting with lead-free solder in 2000. Because melting
solder using a gas burner was not part of the processing method
generally employed in the production of wind instruments, anumber of briefings had to be held with solder manufacturers whileat the same time continuing to conduct tests of dozens of different
types of lead-free solder. When, at the end of these briefings, I
asked what type of solder would be suitable for use in theassembly of wind instruments, the usual response was that they
had never imagined solder was used for this [laughs]. The answer
to our requests was that this would be difficult.”
After the project was launched, about two years was spent
conducting tests within the Group in cooperation with theProduction Engineering Division until a suitable solder was finallydecided on.

Production of these lead-free instruments began in Japan in March
2003, with an instrument going into production only when it had
been approved. Overseas*, a changeover to lead-free instruments
was introduced gradually from January 2005. By the end of 2006,
the transition to lead-free solder in all wind instruments shippedfrom Yamaha factories both in Japan and overseas was complete.
Sone : “ Lead-free solder is even used at wind instrument repair
centers at Yamaha headquarters and its local subsidiaries now.
Regulations for raw materials are probably only going to getstricter. And we’ll have to meet this challenge withoutcompromising our commitment to sound quality.”* Yamaha Musical Products Indonesia and Xiaoshan Yamaha Musical Iustruments* Yamaha Musical Products began using unleaded solder in July 2004

On-site Efforts to Achieve High Precision
Next, on-site tests were conducted by our welding engineers.
During the welding process, it is essential that the heated solder
melts, spreads, and becomes wettable at its melting point.
Sone : “The soldering engineer applies heat to the metal with aburner and melts the solder the instant the coating of flux
becomes transparent. For engineers accustomed to working withsolder that has a melting point of 180°C, the transition to a solder
with one of 221°C proved difficult, and caused a big confusion
with either too much or too little heat being applied.”By switching to a solder with weaker wettability, a greater degreeof precision in the intricate parts of the wind instruments and othersuch improvements were achieved.
Sone : “Essentially, we succeeded in raising both the level ofprecision and skill.”

The Final Hurdle: Sound Quality
In the development of a wind instrument, artists that play thatparticular instrument are asked for their opinion, making it verymuch a collaborative process. On-site tests were performed andartist evaluations of the wind instruments were performed in parallel.
Niwata: “Changing the solder changed the sound the instrument
produced. We received a favorable response to the change insound of our trumpets; in fact, the tests actually resulted in thedevelopment of a top-of-the-range new model. The saxophone,though, didn’t fare as well. When we asked a famous saxophonist
to evaluate the saxophone, his initial response was that the soundwas all wrong. In the end, though, we were able to get his approval

Keiji Sone (right) and Shunichi Niwata display some wind instruments in the crafts workshop of
Yamaha Corporation’s Toyooka Factory.
Sone : “When we first began using lead-free solder, our production efficiency fell more than 20%.
But within about a year, we had regained our previous level of efficiency.”
Niwata, holding artist model YTR-9445CHS (custom-made gold plated): “This particular trumpet
was developed to reflect input from a group of top artists brought together by a member of our
American R&D team. Lead-free solder was one of many specifications included from the outset.”

The Soldering Process•In each process, the most suitable flux is chosen from the three types presently available.
•The moment optimal temperature is reached, the solder is applied around the joint of the wind
instrument.

Yamaha CSR Report 200727

Environmentally Friendly Products andServices
Product LCA Assessment
The Yamaha Group manufactures product groups with several
distinct characteristics. To identify what aspect of a productgroup life cycle has the largest environmental impact and tackle
environmentally friendly design from multiple angles, the YamahaGroup conducts product life cycle assessments (LCA) that cover
the total product life cycle, including material procurement,
production, transport, use, and disposal.

Environmental Considerations in the Lifecyle

In a product lifecycle, environmental impact largely occurs in threestages: 1) the material production stage; 2) the use stage; and 3)
the disposal stage. At Yamaha, we focus on these three stages toachieve environmentally friendly product design appropriate toeach product group attributes.

Material production
stage

Use stage

Disposal stage

Conserving
Energy andResources

Miniaturization indesignIntegration indesignLong-life design
Reduced energy
consumption
Reduced standby
power consumption

Promotion ofreuse
Promotion ofrecycling

Preventing
resource
depletion

Lumber procurementand design
Guideline formulation
Reducing use ofrare lumber

Long-life design

Promotion ofreuse
Promotion ofrecycling

Reducing
substances withsignificant
environmental loads

Management ofchemical substancesin products
Promotion ofgreen procurement

Reduced VOCs
emissions fromproducts

Promotion ofreuse
Promotion ofrecycling

Primary Product Group Characteristics according to the LCA Assessment, and Corresponding Initiatives(Note: The size of circle indicates the relative environmental load associated with that stage in the product life cycle.)

Acoustic Instruments

Electronic Musical Instruments,
PA and CA Equipment

Characteristics: • There is no energy consumption
during use, and the life cycle may
extend for decades.
• The environmental load of the materials
production stage is low since lumber is the primarymaterial, and little CO2 is emitted at the time of material
Material
production.
However, as far as resource conservation is
production
concerned, the need to consider deforestation and to protect
scarce natural materials has become apparent, which meansthat in comparison to other stages, the environmental load of
producing raw materials is high.
Use• During product use, VOCs are emitted from the woodmaterials and this may have an environmental impact.

Characteristics: • As these have no standby power
consumption, during the use phase,they have a comparatively small
environmental load.
Material• Large products require a lot of materials in the
production
material production phase, creating a large environmental
load. Difficulties also occur at the time of disposal,
necessitating consideration of how better to promote
recycling.
• The many different substances used in these products makenecessary strict oversight of material production and efforts toUsepromote recycling at time of disposal.

Measures: • In order to ensure procurement of appropriate lumber,“Lumber Procurement and Usage Guidelines” are to be
Disposalestablished and efforts strengthened.
• Efforts to reduce VOC emissions from wood materials during
use and take steps to establish a mechanism for reuse.

AV Equipment, IT Equipment
Characteristics: • Use and standby phases consume a great deal of energy,
making the environmental load of the use phasecomparatively large.
• The many materials included in these products makenecessary strict oversight of material production and efforts topromote recycling at time of disposal.
• Energy consumption during material production is small andthe resulting environmental load is comparatively smaller thanduring use phase.
Use• Because there are few large products, disposal difficulties arecomparatively few.
• Stricter efforts to control chemical substances in products via
green procurement

Material
production

Disposal

28 Yamaha CSR Report 2007

Measures: • Miniaturization, integration and other resource-saving designs,
switching power supplies and other new technologies; the useof energy saving designs to reduce standby power
consumption.

Measures: • Resource-saving design that allows longer use of electronic
instruments with upgrade kits, and energy-saving using newtechnology such as digital amplifiers and switching power
suppliers.
Disposal• Stricter efforts to control chemical substances in products via
green procurement• A partial recycling system is being established

Lifestyle-related Products, etc.

Material
production

Use

Disposal

Characteristics:• While the types of chemical
substances used in these arecomparatively few, there aremany large products, and so the environmental load they
impart at the time of material production and disposal is great.
• As these use water, electricity, and gas, they consume a large
amount of energy during the use phase and have a large
environmental load.
Measures: • Efforts to implement resource-saving design by building
lighter products using structural analysis, using energy-saving
design to reduce water use through bathtub shape design,and obviating need to reheat bathwater by improving heatretention qualities.
• Initiatives to design products with an extended life, such as
kitchen counters that can be renovated and reused.
• Efforts to design products so that they are easy to separate
at time of disposal to facilitate recycling.

Environmental Initiatives

Promoting Green Procurement• Establishment of Timber Procurement andUsage Guidelines
Among the traditional instruments that Yamaha makes, including
pianos, string instruments, and woodwind instruments, manyneed to be made primarily of wood for acoustic reasons. A large
amount of wood is also used when making electronic musicalinstruments, speakers, soundproof rooms, and lifestyleaccessories due to the merits of wood in terms of acoustic
performance, function, design, and pleasant texture.
Wood is a material that absorbs carbon dioxide from the air as it
grows and can essentially be used in a manner that sustains theglobal environment. Yamaha boasts a 120-year history of making
musical instruments, and to ensure that this legacy continues into
the future we believe that sustainable use of wood resources andsensitivity to issues of biodiversity and the depletion of natural
resources is essential. Toward this end, we established the“Yamaha Timber Procurement and Usage Guidelines.”

Yamaha Timber Procurement and Usage Guidelines[Fundamental philosophy]
Yamaha is working on measures aimed at preserving the global
environment, and plans to enact the following guidelines for the
procurement and use of timber in products that allow us to contributeto a more harmonious relationship between society and nature.

[Procurement and usage guidelines]• Procuring appropriate timber
Promote procurement of timber that is environmentally friendly
from harvest to product delivery, and that can be confirmed ashaving been appropriately managed.
• Prioritize procurement of afforested timber from planted forests
Put priority on procuring timber harvested from planted forests.
• Active use of manufactured wood materials
Promote use of plywood and wood fiberboard as these contain ahigh percentage of afforested timber and recycled timber.
• Increase the efficiency with which we use timber, raising our yieldratio. Actively promote the use of timber remnants and improveyield ratios through improved processing methods andtechnological development.

• Reducing use of rare timber
Some wood used in the making of traditional musical instruments
comes from trees and timber that give instruments superior
acoustics but which are becoming depleted and for which it isdifficult to find other tree species and materials to serve as
suitable substitutes. The Yamaha Group is working to remain true
to the traditional materials by striving to develop new materials
that offer the same or improved performance and that improve
the yield gained from timber, thus reducing the amount of rare
wood used. In this way, we aspire to reconcile the concepts ofpreserving rare wood with the continued supply of high quality
traditional instruments.

of such substances contained in products. One example of thistrend is the RoHS Directive*1 (Restriction of Hazardous Substancesin Electrical and Electronic Equipment) that came into effect inEurope in July 2006 after being enacted in February 2003, and thatbans the use of six substances*2, including lead and hexavalentchromium. Similarly, China’s Administrative Measure on the Control
of Pollution Caused by Electronic Information Products went into
effect in March 2007 and calls for the labeling of products toindicate when they contain these six substances. In response tothese moves, the Yamaha Group established its own Standards for
Chemical Content in Products in 2003.
These standards have subsequently been used to manage
chemical substances in products during design and development
and have helped facilitate legal compliance as well as minimize theenvironmental impact of products. In 2004, the second edition of
the standards was published. The third edition, which outlines aneven stricter approach toward chemical substances, is currently indevelopment.
In order to manage the chemical content in products it isimperative to know and be able to control what chemical
substances are contained in parts and materials assembled in thefinished product. It was this that led the Yamaha Group to
request the cooperation of its suppliers in FY2002 in conducting
yearly surveys on parts and materials, the results of which areused in our green procurement promotion efforts.
With efforts to comply with the EU’s RoHS and the China’s
Administrative Measure on the Control of Pollution Caused byElectronic Information Products complete, the Yamaha Group has
initiated a review of the EU REACH regulations enacted in June2007 and is looking at new methods of green procurement.
*1 RoHS is an abbreviation for Restriction of Hazardous Substances in Electrical and Electronic
Equipment.
*2 RoHS Directive covers six substances: lead, mercury, cadmium, hexavalent chromium,polybrominated biphenyl (PBB) and polybrominated diphenyl ether (PBDE) (the final two
chemicals being brominated fire retardants).

Review of comprehensive evaluation of LCA*1
The results of a life cycle assessment of the light-weight electric guitar RGXA2, which ismade from afforested falcataria timber, showed that in terms of CO2 emissions there wasnegligible difference with the product’s predecessors. However, when assessed using
the integrated impact assessment method LIME (Life-cycle Impact assessment Method
based on Endpoint modeling) *2, it was evident that the RGXA2 has a significantly lower
ecological impact due to the difference in forest resources it requires—an overall
reduction in wood resource use of over 40%.
In the future we want to review the idea of introducing an integrated LCA that takes into
account the myriad ways in which a product can have an environmental impact.
*1: A methodology that reduces the various environmental impacts, from global warming,
destruction of the ozone layer, and resource consumption, to one metric that indicates
the total environmental burden.
*2: LIME: Life-cycle Impact assessment Method based on Endpoint modelingElectric guitar test case using LIME
100%
Urban air pollution
24%

24%

Reducing Use of Substances withEnvironmental Impact• Management of Chemical
Substances Contained in Our Products
Chemical substances contained in some products require proper
processing at the time of disposal to avoid a negative impact on theenvironment (environmental load). In recent years, many countries
around the world have taken steps to control and regulate the use

Non-biologicalresource consumption1%

1%

Forestry resource
consumption
19%

65%

Waste less that 1%
Acidification 2%
2%
8%
Conventional Products

Global warming 8%
RGXA2

RGXA2

Yamaha CSR Report 200729

Environmentally Friendly Production
Preventing Global WarmingWith enactment of the Kyoto Protocol in February 2005, theYamaha Group took it upon itself as part of its corporate
responsibility to implement measures to prevent global warming
such as working to reduce energy use and greenhouse gas
emissions through attentive daily management combined withfacility improvements. The Yamaha Corporation and Yamaha Group
manufacturing companies in Japan have set a goal of reducing CO2
emissions by 6% of fiscal 1990 levels by fiscal 2010. Energy use
among the Yamaha Group is dominated by electricity and heavy oil,which together compose approximately 80% of group energy
consumption. At group manufacturing facilities, energy-conserving
measures have been taken by introducing energy-efficient inverters,
positioning compressors more efficiently, adopting energy-saving
lighting, and other measures including shifting boiler fuel from heavy
oil to natural gas.
In addition, in fiscal 2006 the Yamaha Corporation’s Tenryu Factory
introduced a cogeneration system using natural gas, which emitscomparatively less CO2, NOx and SOx.

CO2 Emissions
Per Sales Unit
(tons-CO2/100 million yen)

CO2 Emissions (energetic in origin)
25.2
24.0

24.6

23.5
22.2

Yamaha Group
manufacturing
companies in Japan(Unit:10,000 tons-CO 2)
10.8

10.5

10.6

10.6

10.2

10.6

1.8

9.0
1990

5.8

5.7

5.9

6.0

4.7

4.5

4.7

4.6

2002

2003

2004

2005

YamahaCorporation(Unit:10,000
tons-CO 2)
4.6

6.0

FY2006

Non-CO2 greenhouse gas emissions (Unit: 10,000 tons-CO )
2

1.87

1.78
1.67

1.60

1.45

On the natural energy front, the factory at Yamaha Headquarters
introduced a photovoltaic power generating system in FY2005, andin 2006 Yamaha Livingtec Corporation installed solar-powered
outdoor lighting.
In fiscal 2006, CO2 emissions for the Yamaha Group were 106,000
tons, unchanged from the year before, but in terms of emissions perunit of sales, the group logged 24.6 tons/100 million yen, a 2.4%
decrease year-on-year.
Also, Yamaha Kagoshima Semiconductor Inc. is making efforts to
reduce two greenhouse gases apart from CO2, namely
perfluorocarbon (PFCs) and sulfur hexafluoride (SF6). Beginning infiscal 2004, the company started to set up exhaust/effluent filtering
devices. The fourth such device was installed this year. As a result,greenhouse gas emissions for fiscal 2006 dropped 700 tons fromthe year before to 16,000 tons.

Yamaha Group
manufacturing
companies
in Japan

2002

2003

(Tenryu Factory)
Yamaha Corporation installed a cogeneration system at its Tenryu Factorywith the system beginning operation on January 8, 2007. Two natural-gas
fueled 65-liter displacement engines (roughly the equivalent of 100 small
motor vehicles) and two generators, each capable of producing 815 kW ofelectricity, are in operation, and the resulting heat is used to produce steam
and hot water that is used in the factory’s air conditioning system andmanufacturing processes. The introduction of this system has reduced
primary energy consumption by the equivalent of approximately 250
kiloliters of crude oil annually, resulting
in a reduction of nearly 1,600 tons of
CO2 emissions per year. This equates
to 1.6% of Yamaha Group emissions
in fiscal 2005 and is making a major
contribution to the overall group goalof reducing CO2 emissions by 6% of
fiscal 1990 levels by fiscal 2010.

30 Yamaha CSR Report 20072005

FY2006

Breakdown of FY2006 Energy Consumption
Others 47 (TJ)
LPG natural gas
225 (TJ)
Total energy use
1,240 (TJ*)
Heavy oil 288 (TJ)

Introduction of Cogeneration System

2004

Electricity 679 (TJ)

*TJ (Terajoule): 1012 Joules

Cooperating to Install
the Cogeneration System
Yamaha Fine Technologies Co., Ltd.,
Administrative Division, Deputy Division Chief

Jun Shimizu
I came to a managing position at Tenryu Factory in 2005
from a position in purchasing and logistics. I have always
been fond of tinkering with cars and machines. So after I took my new post here, my interest
was piqued when I heard an explanation of the natural gas cogeneration system that I
thought seemed similar to a boat engine. Subsequently, I have dedicated myself to explaining
the system as clearly as possible to our employees.
Before and after we introduced the system at the factory, I gave repeated explanations at thecompany and to the union. I also had to devise ways of ensuring that the construction for thelaying of the gas pipes did not overlap with commute hours and that we did notinconvenience nearby residents. Unlike when the factory was built around 70 years ago, thesurrounding area is now completely residential. I had to actively seek opportunities to speakwith local residents and to earn their understanding and support for our facility.

Environmental Initiatives

Waste Reduction and Recycling
Four Yamaha Group Manufacturing Companies
Achieve Zero Emissions
The Yamaha Group promotes Zero Emissions* to minimize thevolume of manufacturing waste that is disposed of in landfills.

Amount of waste generated
Yamaha Group manufacturing
companies in Japan
Landfill ratio (Unit: %)

16.2
14.7
9.9

As of fiscal 2005, every factory belonging to the Yamaha
Corporation and four Group companies achieved the zero emission
target. In fiscal 2006, Yamaha Livingtec Corporation (including
Yamaha Living Products Corporation), Yamaha Metanix Corporation
and YP Winds Corporation achieved the goal of zero emissions,with Yamanashi Kogei Co., Ltd reaching the milestone in June of2007. Other Group companies are working to achieve zero
emissions by the end of fiscal 2007.

6.9

Yamaha Corporation
Landfill ratio (Unit: %)
0.16

6.1
1.8
0.2

2.5

0.22

Yamaha Group manufacturing
22.3 companies in Japan

Amount of waste generated
13.4(Unit:1,000 tons)

20.2
18.7
16.8

16.4

* Zero Emissions is defined by the Yamaha Group as “limiting the weight of final waste sent tolandfill to less than 1% of waste generated.”

12.5

9.4

9.9

11.0

7.0

6.9

7.7

2002

2003

2004

Yamaha Corporation
Amount of waste generated
8.8(Unit:1,000 tons)

7.7
2005

FY2006* The weight of waste generated here includes industrial waste, nonindustrial wastes(excluding outsourcing from the government) and valuable wastes.

Achievement of Zero Emissions
Woodchip briquettes created during the manufacture of pianos is used to make this cat litter product.

•Yamaha Corporation

Reducing use of Water Resources
and Recycling of Water

Toyooka Factory
Kakegawa Factory

end of June 2004

The Yamaha Group has been using wastewater from production
processes since the first half of the 1970s, recycling it as coolingwater and using a reverse osmosis membrane device (ROmembrane), as well as actively pursuing a policy to prevent leakage
by relocating underground tanks and pipes above ground.

Tenryu Factory

end of March 2005

Saitama Factory

end of April 2005

Headquarters Area (Headquarters, factory)

end of April 2005

Iwata Factory

end of May 2005

Location

Date achieved
end of March 2004

•Yamaha Group companies in Japan (Manufacturing)

In fiscal 2006, Yamaha Group water consumption totaled 2.42
million cubic meters, a nearly 4% reduction year-on-year. This
reduction was due to the water-conservation efforts of each factoryas well as a renewal at the Saitama Factory of its wastewater
processing facilities that featured improvements incorporating
recycling cooling water effluent.

Location

Date achieved

Yamaha Kagoshima Semiconductor Inc.

end of May 2003

D.S. Corporation

end of October 2005

Yamaha Fine Technologies Co., Ltd.

end of February 2006

Sakuraba Mokuzai Co., Ltd.

end of March 2006

Yamaha Metanix Corporation

end of June 2006

Yamaha Livingtec Corporation(Including Yamaha Living Products Corporation)

Renewal of wastewater processing facilities (Saitama Factory)
Yamaha Corporation’s Saitama Factory
In May 2006, as part of an effort tostrengthen environmental risk
management in the water-processing
component of the Yamaha Corporation’s
Saitama Factory, where the metal platingof wind instruments takes place, a fullscale renewal of the plant’s wastewater
processing facilities was undertaken. The introduction of the newprocessing system raised wastewater processing efficiency, yielding adecrease of 50% in the use of chemical additives and a 20% reduction inwater usage. In addition, the new system also features a dual-tankstructure that is designed to prevent soil contamination through leakage,
while the establishment of a scrubber facility prevents the foul odor thatused to emanate from the wastewater processing and chemical tank,lessening the effect of the factory on the surrounding area.

end of July 2006

YP Winds Corporation

end of March 2007

Yamanashi Kogei Co., Ltd.

end of June 2007

Yamaha Music Craft Corporation is working to achieve zero emissions by the end of FY2007

Water Consumption
645
618

597

569

283

Yamaha Group manufacturing
companies in Japan
151(Unit:10,000 m3)

284
257

252

242

159

164

155

157

124

120

102

95

2002

Sales Per Unit
563(m3/100 million yen)

2003

2004

2005

Yamaha Corporation
91(Unit:10,000 m3)
FY2006

Yamaha CSR Report 200731

Management of Chemical Substances• Complying with the PRTR Law

Amount of PRTR–designated substances released

In accordance with the PRTR Law, the Yamaha Group tabulates
the total release and transfer of 354 substances suspected ofbeing harmful to human health and the environment. The resultsof each factory are reported to prefectural governments, theregional regulatory authority, and the national government, where
they are calculated and made public.
In FY2006, the Yamaha Group handled a total of 1,194 tons of
substances subject to the PRTR Law, a 93 ton increase year-onyear, while emissions of such substances into the environment
totaled 135 tons, a decrease of 8 tons from FY2005. The YamahaGroup set a target of reducing FY2006 emissions of PRTRdesignated substances by 20% of FY2002 levels by shifting to
raw materials free of such substances, improving manufacturing
processes, and introducing substance recovery equipment.
However, we fell short of the target with an 18% reduction. As
90% of substances released are styrene, toluene, and xylene, wewill continue efforts to reduce VOC emissions in the future.

3.77

3.76
3.50

3.15
173

165

158

The Yamaha Group is working to reduce the emissions of volatileorganic compounds (VOC) which are released in the painting ofproducts and when adhesives are used to bond products. There
are a variety of VOC substances, including toluene, xylene andethyl acetate, and these chemicals have been implicated as air
pollutants that cause photochemical smog and suspended
particulate matter (SPM).
From fiscal 2002 to fiscal 2004, Yamaha Corporation's Tenryu
Factory set up two regenerative exhaust-gas treatment devices
capable of removing 98% of the styrene, toluene, and other VOC
substances released during the painting process, thus greatly
reducing VOC emissions. In addition, in fiscal 2006 the YamahaGroup launched the VOC Emission Reduction Working Group,
which is tasked with setting reduction targets for fiscal 2010 andreviewing concrete reduction methods.

• Efforts to Protect the Ozone Layer
The Yamaha Group is working to protect the ozone layer bybecoming CFC-free. To this end, it totally eradicated the use of
specified CFCs in 1993, and began using HCFCs as cleansing
agents in the metal cleaning process. This use was phased out
by 2005, thus eliminating the use of specified CFCs and HCFCs
from the manufacturing processes of all companies in the
Yamaha Group. Yamaha’s efforts to become CFC-free continue.
Although HCFCs have a lower ozone depletion potential thanspecified CFCs and thus contribute less to ozone layer depletion,
they do have a major impact on global warming. Their totalelimination is, therefore, a significant contribution by the YamahaGroup to the prevention of global warming.

53

60

135

44

Yamaha Group
manufacturing
companies
in Japan (tons)
44
104

2002

120

98

2003

99

2004

YamahaCorporation(tons)
91

2005

FY2006

PRTR results (Unit: tons /year)
OrdiOrder nanceNo.

Amount released into the environment

Amount transferred

Others

Total
BuriedConsumIntoTo
amountption,
Waste
onhandled Into air public Into soil facility sewerage transferred products,
watersystemetc.
premises

Substance name

1 177 styrene

828.3

47.5

0.0

0.0

0.0

0.0

4.1 776.6

2 320 methyl methacrylate

149.7

0.1

0.0

0.0

0.0

0.0

0.5 149.1

3 231 nickel

72.2

0.0

0.0

0.0

0.0

0.0

0.0

72.2

4 227 toluene

44.2

43.7

0.0

0.0

0.0

0.0

0.3

0.1

5

33.5

28.9

0.0

0.0

0.0

0.0

0.5

4.1

6 283 hydrogen fluoride and its water-soluble salts

22.3

3.0

1.2

0.0

0.0

0.0

0.1

18.0

7

14.1

9.9

0.0

0.0

0.0

0.0

0.5

3.7

11.0

0.0

0.0

0.0

0.0

0.0

2.3

8.8

64 soluble compounds

3.1

0.0

0.0

0.0

0.0

0.0

0.0

3.1

10 232 nickel compounds

2.8

0.0

0.0

0.0

0.0

0.0

0.5

2.4

2.3

0.0

0.0

0.0

0.0

0.0

0.0

2.3

12 108 (except complex salts and cyanates)
13 310 formaldehyde

1.9

0.0

0.0

0.0

0.0

0.0

0.0

1.9

1.6

0.2

0.0

0.0

0.0

0.0

0.0

1.3

14 272 bis(2-ethylhexyl) phthalate

1.2

0.0

0.0

0.0

0.0

0.0

0.1

1.1

15 270 di-n-butyl phthalate

1.2

0.0

0.0

0.0

0.0

0.0

0.7

0.4

16

4.5

0.6

0.1

0.0

0.0

0.1

1.4

2.4

1,194.0 134.0

1.3

0.0

0.0

0.1

11.0 1,047.7

63 xylene
40 ethylbenzene

8 172 N,N-dimethylformamide
911

silver and its water-bisphenol A type

30 epoxy resin (liquid)
inorganic cyanide compounds

OthersTotal

Note: For substances with less then 1 ton handled, the details are posted online. In some cases
the total values may appear not to match due to rounding of numbers.

Amount of HCFCs used
1.9

1.8

0.7

0.7

0.8

1.1
2002

32 Yamaha CSR Report 2007

Emissions perunit of sales(tons/million yen)

143
61

Class I Designated Chemical Substances• Promoting Reduction of VOC Emissions

3.40

YamahaCorporation(tons)
1.2
2003

Yamaha Group
manufacturing
companies
in Japan (tons) Yamaha Group
manufacturing
0.8
0 companies in Japan0 (t )

YamahaCorporation

0 (t )

0
2004

0
2005

FY2006

Environmental Initiatives

Environmentally Friendly Logistics
Conservation in Logistics
In April 2006, the Yamaha Group Environmental Management
Committee formed the Logistics Energy Conservation Working
Group to examine the current group-wide logistical situation,
optimization options and formulation of energy conservationplans. The results of the fiscal 2006 total logistical net transport
survey found that no group company reached the 30 million ton
kilometers mark that would render it a specified enterprise in thetransport sector as designated under the revised Rationalization
in Energy Use Law*. In the future we will continue to employ
mixed shipping routes and innovations in packaging to improve
our loading rate and raise transport efficiency.

Logistics transportation amount (Unit: 10,000 ton-kilometers)
9,992
8,383

6,685

5,255
5,375
4,706 Yamaha Group

3,307

In fiscal 2006, the Yamaha Group logged net transport distanceof 47.06 million ton-kilometers (ton x kilometer), down 12% fromthe year before. Yamaha Corporation’s logistical transaction
volume was reduced by 23% from the year before resulting from
calculations using the total logistical transport calculation
methodology based on the revised Rationalization in Energy Use
Law. In addition, using the improved ton-kilometer calculation
method for CO2 emissions in the revised law on past data
indicates that CO2 emissions in fiscal 2006 totaled 7,231 tonsCO2, a decrease of 8.4% from the year before.

8,082

2002

3,128
2003

5,027

2,429

3,055

2,946

2004

manufacturing
companies
in Japan
2,442
YamahaCorporation
2,265

2005

FY2006

Logistics-related CO2 emissions (Unit: tons-CO )2

14,664155
177

12,82812,370

177

12

187
147
13

153
11

Air
159
7,895

7,231

166

In the future, the Yamaha Group will continue to do its utmost toraise transport efficiency while keeping CO2 emissions in check.

Ferry
39

128
26

Rail
52

* Rationalization in Energy Use Law: A law amending part of the “Energy Conservation Law.”
This law was enacted on April1, 2006.
14,321

12,48812,022

Packaging Measures

2002

2003

2004

The Yamaha Group is undertaking a number of initiatives in theareas of packaging and logistics from the perspective ofminimizing the environmental load. Yamaha Corporation has fornearly the past 50 years employed futons as packaging to protect
grand piano’s shipped domestically. Futons are a packing
resource that can be reused and that ensure that no waste is left
with the customer. In recent years, Yamaha has implemented
returnable packaging for Electone™ STAGEA™ upgrade kits aswell as for parts used in soundproof rooms.

Truck

Rail

Ferry

In FY2000 Yamaha Livingtec Corporation introduced so-calledgreen containers for the transport of prefabricated bathroom sets.
By shifting to one-piece packaging instead of individual
packaging, we are trying to reduce the amount of cardboard
used. In addition, Yamaha Livingtec has been dedicated to further
reduce packaging and raising efficiency since fiscal 2004 using
returnable packaging materials and a “returnable” system—which
was jointly developed with Asahi Kasei Homes Corporation—for
kitchens, bathroom sinks and other products made in-house.
Fiscal 2006 saw Yamaha Livingtec work hard to expand thesystem to include all products, ultimately achieving 90% productcoverage. In the future we are committed to expanding thisapplication to cover more and more products.

Truck
6,981

7,576
2005

FY2006Air

Domestic logistics transport calculation
Yamaha Corporation
Logistics Management in Japan
Yamaha Corporation other factories
Yamaha Group companies(Manufacturing)
Domestic business partners
Domestic dealer
warehouses
Ports(keyboard instruments)

Yamaha Corporation
warehouses

YamahaCorporation
Group
Companies
overseas

Domestic sales outlets
Domestic dealers

Airports

Domestic sales outlets
Domestic dealers

Overseas
sales outlets
Overseas
dealers
Customer

Customer

Yamaha CSR Report 200733

Company Outline

Background Information
Company name: Yamaha Corporation
Headquarters: 10-1 Nakazawa-cho, Naka-ku, Hamamatsu,
Shizuoka 430-8650, Japan
Date of establishment: 1887
Date of incorporation: October 12, 1897
Representative: President and Representative Director
Mitsuru Umemura

Stated capital: 28,534 million yen
Number of employees: Consolidate:25,992(of which 6,081 on average are part-time employees)

Unconsolidated: 5,644
Yamaha Group:
Number of consolidated subsidiaries: 93(included companies located outside Japan)

Number of companies accounted for by the equity method: 3

Business Segments
Musical Instruments

Lifestyle-Related Products

Yamaha produces and sells musicalinstruments, and professional audio
equipment, and is expanding its
business lines to include the operationof music schools, music media creation,and content distribution for personal
computers and mobile phones. Yamaha supplies a complete lineup of
acoustic instruments that includes pianos, winds, strings, percussion,and electronic and digital instruments such as synthesizers andElectone™ electronic organs, and hybrid instruments such as player
pianos which combine elements of both.

Yamaha supplies system kitchens andsystem bathrooms for the home, positioning
its brand as the “The World Leader in Marble
Craft.” Yamaha endeavors to apply its
unique technology and know-how to create
unrivalled value for customers with
uncompromising taste through its synthetic
marble products.

Recreation
Yamaha offers recreational facilities
such as “Tsumagoi™,” which
provides sports and music facilities
set in a beautiful natural landscape,and “Katsuragi™,” which offers a golfcourse and accommodation in
traditional-style buildings. All facilities
are fully integrated with the natural
beauty of their surroundings.

AV/IT Products
Yamaha produces and sells commercial online karaokesystems, routers, IP conferencing systems, and a range of AV(Audio and Visual) equipment that includes AV amplifiers,
receivers, speaker systems, and Digital Sound Projector™
surround sound systems.
Yamaha has used its networking technology to achieve market
leadership in the fields of sound and music, developing andselling products that mirror the desires of its customers.

OthersThe Golf Products businessproduces and sells golf clubsthat meet a broad range ofgolfing needs. Yamaha’s
automobile interior woodcomponents businessproduces and sells wood components for luxury cars, making themost of the natural beauty of wood. The metallic molds andcomponent business produces and sells magnesium and plastic
components for telecommunications, the precision equipment market,
and home appliances. Our FA equipment business produces and sells
precision machinery and industrial robots.

Electronic Equipment and Metal Products
Yamaha produces and sells special alloys used as raw
materials for semiconductors and electronic metals. The
majority of Yamaha semiconductors are sound generation
LSIs for use in a range of sound and network-related
products including mobile phones, home theater AV amplifiers,
communications equipment, and amusement devices. In its electronic
metals business, Yamaha supplies high function manufacturing parts aswell as copper and nickel alloys for use in a diverse product base that
includes personal computers, mobile phone connectors, and electricalcomponents for the automotive industry.

Transitions of Major Financial Indices
Net Sales

Consolidated
Unconsolidated(Unit: millions of yen)

Income Before Income Taxes
and Minority Interests(Unit: millions of yen)

Consolidated
Unconsolidated

Net Income

Consolidated
Unconsolidated(Unit: millions of yen)

47,456

524,763539,506

534,079

550,361

534,084

43,541
33,516345,354

334,078

341,546

321,252

35,842

33,101

28,123

323,043
22,612

27,86625,57924,443

17,947
13,024

13,892

8,857

12,523

19,697
10,242

7,706

11,310

264
2002

2003

34 Yamaha CSR Report 2007

2004

2005

FY2006

2002

2003

2004

2005

FY2006

2002

2003

2004

2005

FY2006

Company Outline

Major Business Sites

Consolidated Net Salesby Geographical Segment
Asia, Oceania, Others
12.4%

Japan
52.9%

Europe17.7%

FY2006550,361 billion yen

North America
17.0%■ Production Facilities (all with ISO14001 certification) ▲ Resort Facilities (All with ISO14001 Certification)○ Sales, Service, and Other Facilities (The Tokyo, Osaka, and Nagoya offices have ISO14001 Certification)

The Relationship Between Yamaha Corporation and Yamaha Motor Company
The Yamaha Motor Company produces and sells motorcycles, marine products, snowmobiles, and other related products. The company separated
from the Yamaha Corporation in 1955, becoming an independent business, and as a result is not included in the scope of this report.
The Yamaha Motor Company was previously associated with Yamaha Corporation by equity method. This association was dissolved in May 2007 aftera reassessment of the capital relationships between the two companies. Going forward, with the “Yamaha” brand in common, both companies will
work to substantially increase their corporate value in their respective businesses and fulfill their missions and responsibilities to society on a global basis.
*Please see the following for details: Announcement of Reassessment of Capital Relationship Between Yamaha Corporation and Yamaha Motor.
http://www.global.yamaha.com/ir/report/pdf-data/2007/20070521a.pdf

Net Sales by
Business Segment

Musical instruments
AV / IT
Electronic equipment and metal products
Lifestyle-related products
Recreation
Others(Unit: millions of yen)
26,061
20,10044,76576,892

20,956
20,90346,03160,554
83,670292,647

23,557
18,29042,844
69,04878,257

77,720293,430

302,617

24,67118,01345,21456,16732,36517,80046,57354,80975,93972,823314,078

325,989

Net Salesby Geographical Segment

2003

2004

2005

FY2006

North America
Asia, Oceania, Others

45,721

48,552

49,971

56,681

68,157

77,18583,47384,48387,49497,29989,72886,671

86,717

94,694

93,676

312,129
2002

Japan
Europe(Unit: millions of yen)

2002

320,8092003

312,906
2004

295,2142005

291,228
FY2006

Yamaha CSR Report 200735

Corporate GovernanceIn keeping with its corporate philosophy, Yamaha is working to develop
a management organizational structure that will form
the basis for transparent, high quality, and effective corporate governance.
Creating a management structure through the Boardof Directors and Executive Officers

Companies from the perspective of legal compliance and rationality.
The evaluation results are then used to provide information for theformulation of suggestions and proposals for rationalization andimprovement.

The Board of Directors at Yamaha consists of eight directors,
including one Representative Director and one outside director. The
Board of Directors oversees the management function of the
Yamaha Group, with directors appointed for a fixed period of one
year to clarify management responsibilities.
Yamaha also employs an executive officer system, comprised of 16
executive officers, including one senior director and two managing
directors, to support the Company president, the chief officer incharge of business execution.
The executive officers, who double as Company directors,
principally oversee the operational and administrative divisions,which have been broadly divided into six groups. As part of thissupervision, they manage and direct the divisions within the groups
and are responsible for the performance of the groups. There is one
executive officer, distinct from the aforementioned, assigned to eachdivision within a group, each with responsibility for a key
management theme.

Refining the Yamaha Group’s
internal control system
Yamaha refines its internal control system to maximize efficiency inall its business activities, improve the reliability of its accounting andfinancial information, ensure full legal compliance, improve asset
safeguarding, and enhance its risk management. Yamaha and its
Group Companies created a “Group Management Charter” in June
2006, clarifying group management policies in order to ensure
responsible business conduct.

Companywide Governance Committee tostrengthen corporate governanceTo strengthen corporate governance, Yamaha established theCompanywide Governance Committee, consisting of theCompliance Committee, the CSR Committee, and the Corporate
Officer Personnel Committee.
The Compliance Committee promotes activities across the YamahaGroup aimed at enhancing corporate management compliance withthe law. The Corporate Social Responsibility Committee (CSR
Committee) decides themes for the Yamaha Group to promote inorder to achieve greater corporate social responsibility. To ensure aclearer, more impartial system of election, the Corporate Officer
Personnel Committee meets to consult on appointments.
Various other companywide committees have been established toprovide across-the-board response to critical risk factors that may
arise during the course of business execution.

An audit system to ensure fair and transparent
business practices
Yamaha employs an auditing system headed by its Board ofAuditors. The Board comprises two internal and two external
auditors who periodically perform comprehensive audits of alldivisions and Group Companies, and participate in Board of
Directors meetings and management meetings, with Board ofAuditor meetings generally convened once a month.
The Internal Auditing Division is under the control of the President
and Representative Director. Its role is to closely examine andevaluate all activities undertaken at Yamaha and its Group

Corporate Governance Organization Structure
General Shareholders’ Meeting
Appointment/dismissal
AdviseCompanywide
Governance Committee

Board of Directors
Reports

Appointment/dismissal
Auditing(Consisting of eight directors,
including one outside director)

Appointment/dismissal

Board of Auditors

Reports(Four auditors: two full-time
internal auditors andtwo outside auditors)

Dismissal

Accounting
Auditors

Appointment
Judgements regarding appropriateness of auditing

Appointment/dismissal/ supervision

Reports

Management
Meeting

AdviseCorporate Auditors Office
Representative
Director(one)

Reports

Companywide Special
Promotion Committees,
Promotional Headquarters,
Screening Committee

Instruction
Reports

Internal Auditing Division
Executive Officers(sixteen)

Auditing

Individual Business Division, Administrative Division, Group Companies

36 Yamaha CSR Report 2007

Company Outline

Results of the 3rd Compliance Survey (excerpt)
Total respondents: 13,118

Promoting compliance in management

Response rate: 92.8% (84.4% for the 2nd survey)

Q. Are you aware of the Compliance Help Line?

Yamaha Corporation is aiming to achieve a high level ofcompliance management by complying not only with the law but
also with social norms and corporate ethics.
To do so, in April 2003, we established a Compliance Committee
and created the Compliance Code of Conduct, which outlines
important rules of conduct. Explanatory meetings were held ineach workplace to familiarize all group directors and employees(including temporary staff and contract employees) with its
contents. In addition, the Compliance Help Line was established,through which the Compliance Committee and outside legal
advisors provide a consultation and information system for mattersrelated to compliance. In 2006 the help line dealt withapproximately 70 reports and requests for advice.
A compliance survey is also periodically conducted to identify
potential risks or problems in the compliance requirements, and toassess group employee awareness of these requirements. The
results of the three surveys conducted thus far are reflected inpresent Company compliance measures.
Revisions were made to the Compliance Code of Conduct in April
2006. Meetings were subsequently held in all workplaces tofamiliarize employees with the new code. These revisions included
additions regarding the prohibition of forced and child labor, theprohibition of discrimination and respect for human rights, andother information essential for Group Companies with overseas
business interests. Information regarding new laws, such as
personal information protection laws, and revisions to existing laws
was also included.
To help the Yamaha Group conform to the laws and social normsof countries in which it has offices, the revised version is now
being used as the basis for the creation of regional andinternational editions of the Compliance Code of Conduct. By
June 2007, versions for no less than 12 countries had been
completed.

60.0%

37.2%

2.8%

74.1%

23.9%

2.0%

2nd
survey3rd
surveyYes

No

No answer

Q. Does your supervisor stress the importance of compliance?
47.6%

5.2%

45.6%

1.6%

2nd
survey3rd
survey

55.4%
Yes

No

5.2%
I don’t know

38.0%

1.4%

No answer

Q. Have compliance measures changed your work habits?
(for managers)
56.0%

33.4%

0.1%
10.5%

64.9%

25.5%

4.9%
4.7%

2nd
survey3rd
surveyCompliance Management Structure
Yes
Member of
the Boardof Directors

Committee
Chairperson
PolicydecisionGroup
Companies
Policydirectives

Compliance
Committee

No answer

Shareholders

Participationin complianceprograms

Partners

Organizational
LeaderPurchasers

Employees

Retail Outlets

Reports

Auditing

I don’t know

Customers

President
Reportsubmission

No

Management
Meeting

Board ofAuditors

Subcontractors
Reports

Secretariat
SocietyLegaladvisors

Help Line (consultation/report)

Compliance Code of Conduct in varying languages

Yamaha CSR Report 200737

Third-Party Opinion
We in the Yamaha Group believe that improved communications with
our stakeholders is vital to the handling of a variety of CSR issues.
To aid in further improvement, we have consulted Ms. One Akiyama,a specialist in this field, and solicited her opinion.

On the Yamaha CSR Report 2007

Integrex Inc.
President

One Akiyama
A CSR report does not simply focus on a company’s businessactivities as they relate to society. It can also be seen as astatement of the company’s commitment to the P→D→C→A
sequence of establishing the concrete goals and initiatives
necessary to achieve the corporate philosophy (Plan), sharing thesegoals within the company and taking the responsibility to act onthem (Do), checking them from the standpoint of stakeholders(society) (Check), and reevaluating, improving, and reaffirming thephilosophy itself (Act). I would like to state my opinion based onthese inferences.

1. Points for evaluation
This report presents a corporate philosophy based on Yamaha’s
Corporate objective, its commitment to Stakeholders (Customers,
Shareholders, Those Who Work With Yamaha, and Society), and its
Brand Slogan. The report illustrates a commitment to participationin each of these areas, with even the message from top
management demonstrating how Yamaha puts its corporate
philosophy into practice through its business activities, and reflects
Yamaha’s determination to give back to its stakeholders. I believe
this report provides a clear picture of a business that aims tocontribute to society through the realization of its corporate
philosophy.
With regard to actual activities, this report follows an easilyunderstood format that presents each of Yamaha’s initiatives
necessary for the implementation of its corporate philosophy Commitment to Our Customers, Commitment to Our Shareholders,Commitment to Those Who Work with Yamaha, and Commitment
to Society - and details on the activities that Yamaha undertakes tofulfill these commitments in a separate section for each stakeholder.
In particular, the “Initiatives for the People We Work With” section
gives special attention to the promotion of women’s activities. In
addition to the content of the initiatives themselves, this section
includes indices related to women’s issues, as well as accounts
and pictures from employees in Japan and overseas,demonstrating the success of such initiatives and how they havepermeated into the workplace. The articles on environmentallyfriendly musical instrument manufacturing in the “Environmental
Conservation Activities” section also offer a feeling for the actual
initiatives being carried on in the factory, while making for very
interesting reading. Furthermore, this report also provides
information of a negative nature that companies may not actively
wish to disclose, reporting honestly on two environmentally-related
accidents, their effects on the local area, and the steps taken to

38 Yamaha CSR Report 2007

deal with them. As such it is worthy of praise.
The “Environmental Conservation Activities” section builds on theinitial Environmental Report that Yamaha published in FY2000,
depicting goals, results, evaluations, and future initiatives for eachfield in a detailed and easily understood format. The fact that theinitiatives included reflect the P→D→C→A cycle is laudable from thestandpoint I explained above.

2. Areas for Improvement
While it is apparent that initiatives described in the Environmental
Conservation Activities section follow the P→D→C→A cycle, inother sections of the report only the P→D stages are covered.
Connecting these to the C→A stages may be a consideration for
future reports.
Providing customer feedback and communication on the “Quality
Assurance from the Customer’s Point of View” and “Improving theConvenience of the Repair Reception Center” initiatives, andproviding written evaluation would make the successes of theinitiatives described in the “Initiatives for Our Customers” section
easier to understand. Moreover, explaining the objectives of future
initiatives that have been formulated based on such evaluations
would complete the P→D→C→A cycle and lend more credibility to
the initiatives themselves.
In the “Initiatives for the People We Work With” section, Yamaha
would do well to describe not only the efforts they are making tofulfill their promise to create a supportive work environment, butalso the efforts being made to share the corporate philosophy
behind the ideal of creating value and bringing credit to the Yamaha
brand. I believe that this would give the reader a better feel for
Yamaha’s commitment to “Yamaha CSR.”
Although the compliance survey results and the statistics for Help
Line usage in the sections on corporate governance and promotionof compliance management give an understanding of actual
initiatives and improvements in awareness, this report should also
provide information on how Yamaha responds to consultations andreports made to the Help Line, and on whether it aided in reachinga solution.
The explanation of the relationship between Yamaha Corporation
and Yamaha Motor Corporation in the “Corporation Information”
section is useful, but would have benefited from more detail, since
this relationship is difficult to understand from an outside point ofview. I would like to see cooperation between these twobusinesses, both of which use the Yamaha brand, in future
initiatives for society.

Third-Party Opinion

3. Expectations for the future
The commitments Yamaha makes to its shareholders in order to put
its corporate philosophy into practice and the actions it takes to fulfill
them are highly commendable. However, in future reports I would
like to see more detail on the ways in which individual activities arelinked to commitments, and how they are brought to realization.
Reporting on P→D→C→A activities over the year while using suchmethods as laying out a defined roadmap for the implementation of
the corporate philosophy, and compiling a chart of Objective→
Activity→Result→Evaluation→Initiatives for the next financial year
will clarify the positioning of each activity and provides anunderstanding of initiatives over the year. I believe this will result incontinued, companywide initiatives for the implementation of thecorporate philosophy.
In the future, division activities that contribute to such
implementation and to sustainability in society will be vital to thesustainability of a business. I believe that this sustainability will in turncontribute to the competitive strength of the company. I hope that
Yamaha will work to find ways in which they can contribute to amore sustainable society, better organize the efforts they are able tomake, and continue initiatives with a long-term outlook as it follows
its corporate strategy of “continuing to create ‘Kando’ and enrichculture with technology and passion born of sound and music,
together with people all over the world,”

Biography
1983 Graduated from the Economics Department of Keio University.
1998 Completed a Master’s degree in Finance from the Graduate
School of Business at Aoyama Gakuin University.
Worked as a foreign bonds trader in a US securities company after
graduation. From 1999 onwards, worked in a US subsidiary of an
independent securities company.
In June 2001, established Integrex Inc., a company that promotes
Socially Responsible Investment and Corporate Social Responsibility,
assuming the role of President and Representative.
One Akiyama is currently active as a member of a Cabinet OfficeSocial Policy Council ad-hoc committee, a member of the board of
the Pension Fund Association, a judge for Toyo Keizai Inc.’ssustainability report awards, and a member of the board of Social
Investment Forum Japan.

Regarding this Evaluation

Director andManaging Executive Officer
Finance and Administration Group

Tsuneo Kuroe
We in the Yamaha Group established the CSR Committee in
2004, and have devoted our efforts to initiatives that enable us
to respond to social demands and the expectations of our
stakeholders. We have continued to build on our“Environmental Report,” which was first published in 2000,
expanding the scope of its content. This document is now in
its eighth year of publication, and underwent a change ofname to “CSR Report” in 2006.
CSR initiatives have gradually permeated through the Groupto the point where they have now become firmly established.
However, some activities have not yet been inspected indetail, and there are areas which have yet to see sufficient
expansion throughout our group enterprises. We are wellaware that problems remain in these and other areas.
As part of our handling of these CSR issues, we haveobtained the input of an independent specialist for the firsttime. Our hope is that a specialist opinion will help us
ascertain how and what we should be presenting to ourreaders in future reports.
We would like to express our profound gratitude to Ms.One
Akiyama, whose evaluation has proven extremely valuable.
We accept her criticism with sincerity, and will use her input to
set goals for our activities, and as themes on which we willbase our future initiatives for ongoing improvement. Theselessons will also be applied in the authoring of our reports
from the next financial year.
We will continue to devote ourselves to an ongoing
contribution to a sustainability society through our businessactivities.

Yamaha CSR Report 200739

For inquiries regarding this report:
CSR Project, Corporate Planning Division, Yamaha Corporation
10-1, Nakazawa-cho, Naka-ku, Hamamatsu, Shizuoka 430-8650, Japan
Phone: +81-53-460-2852
Fax: +81-53-465-2798

U RL: http://www.glo ba l.yam aha. c om

Cert no. SA-COC-1196

Printed in Japan using soy-based inks on FSC-certified paper.
This document uses a waterless printing method that generates no harmful waste liquid.
November 2007