Integrated Report 2020
Fiscal year ended December 31, 2019

CreatingExcitement

Ensuring
Confidence

Challenging forInnovation

Creating Kando

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

Building Ties
with Customers
for Life

Captivating
Emotional Feelings

Yamaha Motor Co., Ltd. Integrated Report 2020

1

Contents

Corporate Mission 

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

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

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

Introduction

Corporate Governance

4 A History of Creating Kando through Technology

52 From the Chairman of the Board of Directors

6 Yamaha Motor’s Presence

54 Dialogue between Outside Directors

8 Financial and Non-Financial Highlights

58 Directors and Audit & Supervisory Board Members

Toward Sustainable Growth

61 Corporate Governance
68 Risk Management

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

Business Strategy

20 Important Societal Issues (Materiality Issues)

70 Land Mobility

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

72 Marine Products

26 Long-Term Vision and Medium-Term 			Management Plan

76 Financial Services

28 Specific Initiatives toward Resolving
Societal Issues

74 Robotics
77 Others
Facts and Data

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

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

34 Creative Design

3. Fulfilling social responsibilities globally

36 Research and Development

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

38 Digital Transformation

88 Corporate Information / Stock Information

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

Action Guidelines 

46 Human Resources

Acting with Speed

48 Topics

Meeting change with swift and informed action

48 Initiatives for Improving Employee Engagement

Spirit of Challenge

50 Yamaha Motor’s Sporting Activities

Courage to set higher goals without fear of failure

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

Stakeholders

Corporate Philosophy

Customers
Corporate Mission

Kando*

Communication

Creating Company

Shareholders andInvestors

Employees
ActionGuidelines

Management
Principles

Business Partners

The Community
Basic Policies ofInternal Control

2

Yamaha Motor Co., Ltd. Integrated Report 2020

Business Activity

Basic Policies of
CSR

The Environment

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

Structure for Information Disclosure
Financial Information

Non-Financial Information

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

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

Notice Regarding Forward-Looking Statements
The statements in this report, except for historical facts, are forward-looking statements about the future performance of the Company and its Group companies. These are based on management’s assumptions and beliefs in light of the information currently available, and involve risks and uncertainties. Pleasebe advised that actual results may differ significantly from those discussed in the forward-looking statements.
Potential risks and uncertainties include, but are not limited to, general economic conditions in Yamaha Motor’s major markets, changing consumer
preferences, and currency exchange rate fluctuations.

Yamaha Motor Co., Ltd. Integrated Report 20203

Introduction

A History of Creating Kando through Technology

Yamaha Motor Co., Ltd. (Yamaha Motor) was founded in July 1955 when the motorcycle division of Nippon Gakki Co., Ltd.
(today’s Yamaha Corporation) was spun off to form an independent company. Since then, with the consumer-­oriented
development approach of its Nippon Gakki roots as a starting point, Yamaha Motor has continuously been working tocreate new value through its motorcycles and other products in a variety of fields for over 60 years.

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

Expanding business fields andworking to popularize
recreational culture

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

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

1955

1960

Creating demand andbuilding a businessplatform

Helping resolve societal issues
with products combining
technologies

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

1970

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

1990

Working for both
Kando and theenvironment

Diverse Monozukuri
contributing to a moresustainable society

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

2000

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

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

1955
The first Yamaha motorcycle
YA-1

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

1987
Industrial-use
unmanned helicopter
R50 (L09)

1977“Soft bike” allowing
women to ride with peace of mind
Passol

1967
Joint project with
Toyota Motor Co., Ltd.
Toyota 2000GT

4Yamaha Motor Co., Ltd. Integrated Report 2020

1995
Wheelchair
electric power unit
JW-I

2014
Our first LMW*
Tricity

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

1968
Our first snowmobile
SL350

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

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

2017
Cell picking &imaging system
CELL HANDLER™

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

Yamaha Motor Co., Ltd. Integrated Report 20205

Introduction

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

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

Consolidated Financial ResultsJapan

1,664.8

Net sales¥

1,294.1 billion¥(Fiscal 2010)

115.4

Operating income¥

51.3 billion¥(Fiscal 2010)

10.2%

LMWs

Othersbillion

10.9%

EuropeDistribution of
Net Sales

Asia

Financial services

43.5%

13.0%

billionNorth America

22.4%

Snowmobiles

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

Segment

Main products and services

Land Mobility

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

Personal
watercraft

Automobile
engines

ATVs / ROVs
Industrial-use
unmannedhelicopters

Electric
wheelchairs

(%)
–0.5
6.2

7.0

2.5
4.5

6.7

Boats
Generators

20.7

Marine Products

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

Motorcycles
Pools
Snow blowers

50.6

Robotics

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

Outboard motors(Marine engines)

66.1

Manufacturing

Financial Services

Sales finance and leases related to the Company’s products

36.2

Powertrains

Others
Net sales
Land Mobility
Robotics

6

Golf cars

Operating income (loss)

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

Core technologicalcompetencies

Electronic
Control

Chassis andHulls

Marine Products

Financial Services

OthersYamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 20207

Introduction

Financial and Non-Financial Highlights

Net Sales

Operating Income / Operating Income Margin

R&D Expenses

Capital Expenditures(¥ billion)(¥ billion)

(%)(¥ billion)(¥ billion)

160

24

120

2,000

80

1,495.0

6.9

40

500
169.8

0
2015
Japan

115.4

120

1,500
1,000

2016

2017

2018

0

2019

2015

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

90

75.7
4.5

60
30
0
2016

2017

2018

2017

2018

60

12

60

6

40

6

6

30

3

20

3

0

0

0

0

2019

2015

1,600

6

1,200

4

800

2

400

0

0

2019

1,532.8

5.1

2015

2016

2017

2018

(Million m3)

12

800

9

600

6

4.5

400

6

3.0

6

3

200

3

1.5

3

0

0

0

0

2019

2018

2019

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

2014(No. of companies)

15

9

270

9

45

10

6

180

6

30

5

3

90

3

15

0

0

0

0

2015

2016

2017

2018

2019

46

216.83

2016

2017

2018

2019

2015
Domestic

Yamaha Motor Co., Ltd. Integrated Report 2020

2017

Number of Group Companies Joining Unified Certification Program

11.1

8

2016

12
9

4.07

0
2015

2016

2017

2018

2019

ROA

60

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

527

2015

(¥)

2015

2019

9

12

2019

2018

6.0

360

2018

2017

12

Net Income per Share (Basic)

2017

2016

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

Water Intake

12

2016

0
2015

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

20

2015

2019

(1,000t-CO2)

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

0

2018

CO2 Emissions

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

15,3282017(%)

Total assets

Return on Equity (ROE)

2016

9

Operating income margin(¥ billion)

8

58.1

9

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

(%)

12

90

Total Assets / Return on Assets (ROA)

(%)

120

80

18

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

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

2015

2016

Operating income

Overseas(¥ billion)

12
102.0

1,664.8

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

2016

2017

2018

2019

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

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

Overseas

We have been working toward global environmental ISO 14001 unified
certification at Group companies in Japan and overseas since 2012. A totalof 46 companies have joined the unified certification program, mainly
manufacturing companies in Asia (including. Japan), Europe, the United States,
and South America.

The Yamaha brand, calculated by combining the brand value of both
Yamaha Motor and Yamaha Corporation, was valued at US$1,369
million (compared with US$1,195 million in 2019 and US$998 million
in 2018).

Yamaha Motor Co., Ltd. Integrated Report 20209

Toward Sustainable Growth

From the President

We will overcome the challenging external
environment and aim to create prosperity andhappiness for people while working in harmony
with society and the environment.

Overview of Fiscal 2019

Yoshihiro Hidaka
President, Chief Executive Officer andRepresentative Director

10

Yamaha Motor Co., Ltd. Integrated Report 2020

In fiscal 2019, ended December 31, 2019—the first year of
our current three-year Medium-Term Management Plan set
to conclude in fiscal 2021, net sales increased in the Marine
Products and Financial Services businesses but fell in theLand Mobility and Robotics businesses (excluding the impact
of M&As), resulting in an overall net sales decline. Despite
an improvement in profitability thanks to 1) structuralreforms and heightened operational efficiency at factories
producing developed market motorcycles in Europe and ourheadquarters, and 2) more premium-segment motorcycle
models in Indonesia, operating income also contracted overall due to the aforementioned decrease in net sales in the
Robotics business and other segments, an increase in
expenses for implementing growth strategies, the impactof foreign currency exchange rates, and other factors.
Our Medium-Term Management Plan was rolled out looking to achieve earnings by securing and improving the profitability of existing businesses and then making investments
and embarking on challenges for future growth. However,balancing these differing goals has proved difficult.
Excluding the expenses for strategic growth and the impactof foreign currency exchange rates, we were able to secure
earnings on a par with the previous fiscal year for theformer, but were unable to achieve the results we wanted.
However, we succeeded in sowing various seeds for thelatter. The Medium-Term Management Plan’s policies are tofurther advance the growth strategies we have pursued thus
far and allocate the management resources to acceleratethem. However, we currently have not been able to raise theperformance of our existing businesses to the extent necessary to facilitate this. With our results for fiscal 2019,
expenses for corporate growth and reinforcing our businessplatforms proved to be a burden and the increase in
expenses greatly exceeded the rise in marginal profit.
Looking at individual businesses, we saw an improvementin earnings with developed market motorcycles in the Land
Mobility business from greater unit sales in Europe and theaccompanying increase in marginal profit at our headquarters. However, profits declined in the emerging market
motorcycle business due to falling unit sales in Vietnam,
Taiwan, and India stemming from the market and competitor environment, and the impact of issues with logisticaloperations in the Philippines. In addition, during the current
Medium-Term Management Plan, we will move toward
implementing specific measures for structural reform in thedeveloped market motorcycle business, an issue present
since the Lehman Brothers bankruptcy triggered the 2008
global financial crisis.
In the Marine Products business, the shift toward large
outboard motors continues and while net sales proceeded
broadly in line with our expectations, profits fell due to theheavy impact of foreign currency exchange rates.
In the Robotics business, sales increased due to the establishment of Yamaha Motor Robotics Holdings Co., Ltd.
(YMRH) through the business integration of Yamaha Motor,
SHINKAWA LTD., and APIC YAMADA CORPORATION in
February 2019, but lasting stagnant market conditions from
U.S.–China trade friction led to a significant decrease inprofits. Furthermore, in April 2020 we converted YMRH into
a wholly owned subsidiary. Going forward, Yamaha Motor
will expedite post-merger integration (PMI) and raise YMRH’s
management speed to create a more integrated management channel with the Company from which to improve the
Robotics business’ profitability as a whole.

Yamaha Motor Co., Ltd. Integrated Report 202011

Toward Sustainable Growth

From the President

Promoting Medium- to Long-Term Strategies
In fiscal 2018, Yamaha Motor formulated its Long-Term
Vision for 2030 under the slogan of “ART for Human
Possibilities.” This vision clearly states the objectives andvalues Yamaha Motor would like to offer society amid thedramatic changes in the external environment and fasterdiversification of people’s values. I believe that the range offields in which the Company can make a contribution isbroadening due to societal changes that include the tightening of regulations on exhaust emissions, electrification,
aging populations in developed countries, and the advances
in information technology (IT) and artificial intelligence (AI)technology. By combining the core technological competencies we have developed to date with cutting-edge technologies and pursuing co-creation with our business partners, wewill seek to create a better society and better daily lives byoffering products and services that build on people’s innate
capabilities and possibilities.
The strategy for achieving this goal is “ART for Human
Possibilities.” The “robotics” in the strategy broadly refers

to advanced technologies such as electronic control and AI,
and forms the foundation for the next stage of growth inall our business activities. Another aspect of the strategy is“Uniquely Yamaha Solutions.” This refers to systems likethe automated low-speed mobility (LSM) service we areconducting real-world testing for and the provision of­non-hardware solutions. “Transforming Mobility,” anothercomponent of the strategy, concerns the offering of hardware solutions, headed by our Leaning Multi-Wheel (LMW)*
technology and electric vehicles (EVs).
The current Medium-Term Management Plan is positioned
as the first three years for advancing reforms aimed at realizing our Long-Term Vision, and we are working to reform
our management platforms and promote growth strategies.
Although our aforementioned business results in fiscal 2019were unfavorable, we were still able to move our growthstrategies forward according to plan.
* Yamaha Motor’s designation for vehicles with three or more wheels that lean like a
motorcycle through turns

Reforming Our Management Platforms
We are reforming our management platforms using thelatest digital technologies and data in our R&D, manufacturing, and corporate fields.
In the R&D field, we are advancing model-based systems
engineering (MBSE). Utilizing simulation models in the development process covering initial design to verification, we
can perform strength and fluid analyses, etc., to identify andsolve problems at an early stage and thereby conduct more
efficient development and manufacturing.
In the manufacturing field, we are moving toward the useof smart factories. This entails using a variety of sensors tocollect digital data on the operational status of a factory,

12

Yamaha Motor Co., Ltd. Integrated Report 2020

carrying out big data analysis, and then feeding the resultsback into the operation of the factory. Doing so enables theearly detection and prediction of irregularities, and in turnleads to more efficient management.
In the corporate field, we will promote the overhaul ofenterprise resource planning (ERP). In seeking the bestarrangement for a global corporation, we will standardize
and unify our core systems. We will work to reduce costs
and implement our growth strategies by increasing theefficiency of indirect processes and shifting resources togrowth fields.

Promoting Growth Strategies
Taking on new challenges in our core businesses
We have been taking on—and beginning to see the resultsof—a variety of challenges, such as our quest “To someday
create bikes that lean but do not fall” showcased by our
MOTOROiD and LMW models, efforts to promote the development and commercialization of EVs, and efforts aimed atmore automated watercraft operation in the Marine
Products business.
Today, responding to the trend for “connected, autonomous, shared & services, and electric” (CASE) vehicles has
become an urgent priority in the transportation equipment
industry. In this context, electrification has become a key
word and Yamaha Motor has set a target of reducing CO2
emissions from its products by 50% by 2050 (comparedwith 2010). As part of these efforts, we are promoting the
manufacture and sale of electric products, including theelectrification of motorcycles. Given that engine development is our traditional strength and that it remains animportant element of differentiation for us, electrificationin the transportation equipment industry has the potential
to threaten our survival.
However, while the mobility needs of people may change,
those needs are not likely to disappear. Although I feel thata diverse change will come to the values regarding mobility,
due partly to the global COVID-19 pandemic, I would like toestablish as soon as possible a model for generating steadyearnings even when electric products become the norm,
while ascertaining market and customer needs. To that end,
we have positioned EV-related investments as an issue ofthe highest priority for our core business framework andwill undertake these without constraint.

Promoting the development of new businesses
With an eye on developing prominent new businesses by
2030, I envisioned a three-phase process: the three years of
the current Medium-Term Management Plan as a period for
identifying opportunities; a subsequent three-year period forinvesting management resources in a focused manner in thechosen fields; and another three-year period in which the
newly developed businesses begin to contribute to earnings.
I believed that these periods were realistic based on my own
personal experience. However, the incredibly impactfulchanges to the external environment brought by the global
COVID-19 pandemic has brought to the fore various societal
issues, and amid this we have fast-tracked our new business
opportunity identification plan and narrowed down thefields to pursue to four: mobility services, LSM, agriculture,and medical. Going forward, we will focus on these four
fields and invest our management resources to create new
businesses and grow their scale.

Forecast for Fiscal 2020
At the financial results briefing in February 2020, I conveyed
our intention to focus in fiscal 2020 on restoring the profitability of our existing businesses and moving forward incoordination with each business and corporate function,in light of growing uncertainty about the global economic
outlook, the signs of a recessionary environment, and ourbusiness performance in fiscal 2019.
However, the global COVID-19 pandemic is having an
enormous impact not only on economies and businessbut also human life. Yamaha Motor has also implemented­countermeasures, including production control based on
careful assessment of demand and extensive cuts toexpenses and investment spending.

In addition, we have proactively and quickly provided
donations and carried out support activities in our various
regions of operation. In Japan, we manufactured plastic faceshields and sterilizing detergent and distributed them tomedical institutions as well as donating and offering free
motorcycle rentals to physicians overseas (Thailand, Germany,and Sweden).
In recent years, the Company has overcome several crisesthat have cut off its supply chain, from the large-scale floodsin Thailand to the Great East Japan Earthquake and heavy
rains in Japan. In the process, the level of the Company’svarious initiatives related to our Business Continuity Plan
(BCP), such as the preservation of our supply chain, hasrisen considerably. Accordingly, when an event occurs in a

Yamaha Motor Co., Ltd. Integrated Report 202013

Toward Sustainable Growth

From the President

given region, we have become able to swiftly determine
how it will affect us and how best to deal with it.
Nevertheless, the global spread of COVID-19 marked thefirst time that we have been forced to suspend operations
simultaneously around the world. Based on this experience,
we are implementing three countermeasures. The first is thepromotion of e-commerce. As it becomes increasingly difficult to maintain our physical touchpoints with customers
due to limits or restrictions on people leaving their homes,
we will broaden our businesses’ digital touchpoints withcustomers and establish an optimal combination of digitaland face-to-face customer interaction.
The second is transitioning to new work styles. The extent
to which we can ensure production efficiency at our plants
while taking all possible measures to prevent infection on
the frontlines will be vital. For our office-based employees,
we must also revise our personnel systems so that they canachieve results while working from home. I believe that once
this new work style becomes established, we will see each
employee place greater value on the time they are able tosave on commuting or make the most of their spare time.
The third measure is further strengthening our supply chain.
Yamaha Motor products are sold around the world and many
are manufactured in countries outside of their destination
market. Our production structure is such that when manufacturing—including parts and components—ceases in one
country, many other countries where our products are soldare significantly affected. In light of current circumstances, we
are working to stabilize and strengthen our supply chain by

We will calmly assessmarket conditions andtenaciously work
toward achieving
our goals.

14

Yamaha Motor Co., Ltd. Integrated Report 2020

reviewing our global production structure and logistics functions, the appropriate products and parts by type as well as
inventory volumes for each country, etc.
A comparatively large proportion of our products are used
for leisure and recreation, and as governments throughout
the world begin to lift restrictions on going out, spending
money on hobbies and leisure may remain a low priority,even if governments enact economic stimulus policies. On
the other hand, I am also hopeful that demand for our products as accessible outdoor vehicles and tools will be stimulated in the post-COVID-19 world. Demand for Yamaha
Motor products such off-road motorcycles, sport boats, andpersonal watercraft is already recovering due to a growing
trend for enjoying nearby places and the outdoors following
the easing of lockdown restrictions primarily in Europe andthe United States.
Furthermore, in regions with extensive and well-developed
public transportation, calls to avoid closed spaces, crowded
gatherings, and close contact with others have remindedpeople of the advantages of personal mobility options likemotorcycles and electrically power-assisted bicycles. In thelogistics industry where essential workers support people’s
daily lives, motorcycles are being reappraised for their­mobility and ability to avoid or better navigate traffic congestion. I believe that these developments will lead to new
demand going forward.
As for our Robotics business, although I expect global
capital expenditures to remain sluggish for a time, I am
certain that the bolstering of communications infrastructure
and other developments will prompt a growth in demand
over the medium to long term. We must steer management
while accurately assessing conditions. Naturally, our policy is
to prevent the further spread of COVID-19 by prioritizing
the lives of our employees and stakeholders first and then­minimizing our business losses. Although we have yet toannounce our performance forecasts for fiscal 2020, we
intend to do so as soon as possible and are currently scrutinizing the impacts of COVID-19 on our supply chain, plans,
and business performance.
I know that this will be a particularly challenging year. We will
do our utmost to calmly assess market conditions and tenaciously work toward achieving the Medium-Term Management
Plan while maintaining a constant sense of urgency.

Shareholder Return Policy
Yamaha Motor views increasing shareholder returns as animportant management issue and strives to raise corporate
value. With regard to the dividend payment, we seek tomaintain as well as strengthen our financial foundations andincrease new growth investments and returns to our shareholders. We have set a benchmark of 30% for the dividend
payout ratio of net income attributable to owners of parent.
For fiscal 2019, we paid a full-year dividend of ¥90 per
share, consisting of a ¥45 interim dividend and a ¥45

year-end dividend, surpassing this benchmark. In regard to
fiscal 2020 dividend payments, as we anticipate challenging
conditions in the first half of the fiscal year, we havedecided not to pay an interim dividend with the goal of
securing liquidity on hand. We will promptly make anannouncement regarding a year-end dividend when we areable to make a forecast.

Further Improving Brand Value
The corporate mission of Yamaha Motor is to be a Kando
Creating Company and we aspire to always be a company
offering new value that inspires customers to look to us for
new Kando. With our origins in Yamaha Corporation, aleader in musical instruments and audio products, we haveengaged in Monozukuri that appeals to human sensibilities
through our consumer-oriented development ideal. With the
Yamaha brand, the Kando that we offer entails an emphasis
on appealing to human sensibilities, and we operate a joint
Brand Committee together with Yamaha Corporation toshare the brand’s direction and alternative indicators of value
as well as our respective targets to that end.
We have made raising our brand value an important­management task at Yamaha Motor. With the electrificationof mobility I mentioned earlier and other technologicaladvances, it has become increasingly difficult to differentiate
ourselves with product specifications and hardware performance, so I believe that customers will choose products
based on their trust in and connection with a brand. As such,
I expect the role and importance of the brand to grow going
forward. Historically, nearly 130 years have passed since the
Yamaha brand was born and over 65 years since we turned
our hand to motorcycles. The brand value we have today was
won through the quality that earned customers’ trust in thebrand and their recognition of our commitment to the value
we create. I believe that this is a strength of the Company.

Yamaha Motor clearly defines the fundamental elementsof the “unique style of Yamaha” with the following key
words expressing its shared values: Innovation, Excitement,
Confidence, Emotion, and Ties. I firmly believe that exhaustively refining these five elements and incorporating theunique style of Yamaha into all processes and levels of ourcorporate and business activities is the way to meet customer expectations and the fuel to further improve ourcompetitiveness. One top internal undertaking that aims to
improve brand value is the Brand Strength Score (BSS),*1 aqualitative indicator for measuring understanding and penetration of the brand. Four internal indicators and six socialand customer-related external indicators are used to gauge
brand strength. Through an interview format, we constantly
research our positioning in relation to our competitors andclarify our strengths and weaknesses in each country andby product category. Based on these efforts, we revise ouraction plans annually and engage in the plan–do–check–act(PDCA) cycle while monitoring score trends. Furthermore,
under the goal of augmenting our organizational structure
to strengthen quality assurance and ensure safety and­compliance with laws and regulations, we established the
Quality Assurance Center in 2020 to minimize risks that
directly impact our brand image and to continuously lift
our corporate value.
Moving forward, I want the Company to express its

Yamaha Motor Co., Ltd. Integrated Report 202015

Toward Sustainable Growth

From the President

commitment to appeal to human sensibilities and create
Kando not only through tangible aspects (products) but also
to embody this commitment through the services and experiences it offers to customers. This falls under the Confidence
and Ties elements of the unique style of Yamaha. For­example, we operate the bLU cRU*2 rider support programas part of our marketing activities in developed markets.
bLU cRU’s most distinguishing feature is its all-around­support for further enriching the riding lifestyles of Yamaha
product owners. The program fosters interactions between
Yamaha Motor and its customers—and among customers­themselves—and embodies the goal behind the Company’s“Revs your Heart” brand slogan of delivering exceptional
value and experiences that enrich the lives of our customers.

Looking ahead, amid rising incomes and living standards inSoutheast Asia and emerging markets, I believe that we will
be able to put our branding efforts to work there when therole of motorcycles shifts from a means of daily commuting
to a tool of choice for recreation.
Through these initiatives, Yamaha Motor will strive to be
a company chosen by customers that achieves continuous
growth by constantly maintaining and improving its brandreputation and brand value.
*1 A method of assessing brand strength provided by Interbrand Japan*2 An amateur racing contingency program for riders using Yamaha motorcycles andother products

Aiming to Create Social ValueTo realize continuous growth, the Company identified in2019 four important societal issues (materiality issues) that it
can help resolve by leveraging its strengths: Environmentand resources; Transportation, education, and industry;Innovation; and Human capital management. It is my belief
that all these issues are directly connected not only to theCompany’s brand value but its survival as well. With that inmind, we intend to focus our efforts on a range of initiatives
in line with materiality issues. In particular, as a manufacturer
selling products that emit exhaust gases, measures for theenvironment are a must for us and as mentioned previously,
we are working to reduce CO2 emissions from our products
while proactively developing electric mobility.
Meanwhile, examples of the Company applying the technologies, knowledge, and expertise it has garnered throughits diverse range of businesses in order to help local communities include the clean water business in emerging anddeveloping economies and our longtime work to help modernize the fishing industry in Africa and elsewhere. I believethat these efforts not only contribute to the resolution ofsocietal issues but also help raise our brand value in thecourse of establishing relationships of trust with local communities, and that this will lead to greater corporate value
over the long term.

16

Yamaha Motor Co., Ltd. Integrated Report 2020

Among the materiality issues identified, I view Innovation
as the platform for the Company’s growth that is indispensable for fulfilling its Long-Term Vision. Going forward, we
will work on innovations such as developing new forms ofmobility and providing solutions through robotics to supplement labor shortages. Within Yamaha Motor’s Monozukuri
is its exclusive development ideal of Jin-Ki Kanno. This refers
to technologies that seek to deliver to users the seductive
exhilaration felt when they truly become one with theirmachine. We quantify and fine-tune this kind of exciting
performance, which we call Kanno Seino, and build it into
our products. For example, when creating a motorcycle, testriders systematically ride and evaluate it in the final stages ofdevelopment, making confirmations and repeated improvements. This process is how Yamaha Motor creates a machinewith response tuned to suit human sensibilities, enjoyable
handling, chassis behavior bringing peace of mind, andmore. In solving Innovation issues, we will use the same
approach of exhaustively developing products with characteristics that appeal to all five senses. We will continue toprovide new value to society through our technologies andsensibilities as a Kando Creating Company by infusing ourcore technological competencies and Jin-Ki Kanno into our
products.

Taking on the Challenge of Further Growth
In 1953, when Japan was embarking on its road to recovery,
Genichi Kawakami, the fourth president of Nippon Gakki
Co., Ltd. (today’s Yamaha Corporation), gave the order toenter the motorcycle industry. Despite being a latecomer,
Yamaha Motor was able to survive in an era in which theindustry had already begun weeding out the weaker players
and go on to establish its current brand value. This is thanks
to the Spirit of Challenge passed on to each and every
employee—to always try to create new Kando for society—but I also believe that it is thanks to the free and openminded corporate culture we have that facilitates this spirit.
People are the greatest source of value creation and hence
management should be concerned first with how it can
maximize the performance and motivation of organizations
and individuals. In terms of human resource development,each year we are improving our human resource training
programs aimed at a variety of employees. For example,
we have established training tailored to employee positionlevels, training to hone specialist skills, schemes for gaining
frontline experience outside Japan and overseas trainee
programs for employees aspiring to be active on the global
stage, and coaching to raise organizational performance byenhancing team strength.
As a company operating globally, the promotion of diversity is essential in order to share as knowledge the environments, cultures, and approaches of various countries andregions. In widely sharing such knowledge, the occasional

clash of values leads to the creation of new values.
Specifically, we convene the Global Executive Committee
twice a year for our highest-ranking executives and global
meetings several times a year for specific functions for executives in the rank below. In this way, we are creating opportunities for executives and employees from different
countries and regions to inspire one another.
Business trends are approaching a major paradigm shift
due to the electrification of mobility, the rapid development
of digital technologies, accompanying changes in various
social frameworks, and other factors. In such a context, theadvanced technologies and wide-ranging business platforms
that we have built and developed as well as the capabilitiesof our people to turn ideas and concepts into reality will
surely be a major driving force for the Company as it takeson the challenge of reaching the next stage of growth.
While continuing to work in harmony with society and theenvironment, Yamaha Motor will endeavor to deliver joy,surprise, and delight as well as prosperity and happiness topeople around the world through its products and services.

Yoshihiro Hidaka
President, Chief Executive Officer andRepresentative Director

In a business environment
approaching a major paradigm shift,
we will create new Kando by exhaustively
refining the unique style of Yamaha.

Yamaha Motor Co., Ltd. Integrated Report 202017

Toward Sustainable GrowthSocial Value That
We Create

Yamaha Motor’s Value Creation Process

Environment and resources• Offer environmentally friendly­personal means of transportation

Yamaha Motor’s business model is to provide unique, high-quality products and services that accurately reflect societal andcustomer needs by applying the Spirit of Challenge that has been handed down as the Company’s DNA and the technologies
it has created and refined to date. The very reason for the Company’s existence as a Kando Creating Company is to give­society and customers experiences of Kando unique to Yamaha Motor that intertwine technologies and human sensitivities.
By expanding human possibilities and through our products and services that create Kando, we are aiming to achieve­sustainable growth as well as create a better society and more fulfilling lives.

Kando Creating Company• Consumer-oriented development ideal• Strong teamwork of dealerships, regionalsales bases, and Yamaha Motor

Land Mobility

Long-Term Vision
P.70

Create new value for people’s time,
mobility, and self-expression• Global R&D structure

Foundations for
Creating Competitiveness• Global sales network

Growth Strategy
Directions
Business
Operations

Corporate Mission

ImportantSocietal Issues• Ensure safe water and resources• Original and innovative ability to conceive
new technologies• Creative, advanced technological capabilities and core technological competencies• Marketing methods that connect
with customers over a lifetime

Motorcycles• Proprietary product development methods

Electrically
ATVs / ROVs
power-assisted
bicyclesMarine Products

P.72

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

Sales

Environment andresources

R&D

Innovation

P.44

P.36

Ties

Excitement

P.32

Outboard motors

Robotics

Transportation, education,and industry

Industrial
machinery androbotsConfidence

Procurement /Manufacturing
and Production

Innovation

DesignP.34

P.74

Financial Services

Industrial-use
unmannedhelicopters
P.76

Offer services that strengthen relationships withcustomers and dealerships

P.40/42

Financial services• Design that contributes tomanagement and branding
Human capitalmanagement

Pools

Promote automation and labor-savings
to free up valuable time for people

Emotion• Design capabilities that
express individuality

Human
Resources

P.46• Global production system
and inter-region productdistribution system• Abundant plant
management expertiseand technology• Leading manufacturing
technologies and strong
on-site capabilities• Talented global personnel who
embody the brand• Offer safe, comfortable, and fun
mobility services• Raise traffic safety awareness levels
by bolstering riding safety training• Supportive training for engineers
and the creation of employment
opportunities

There Is Greater Joy Yet to Come*
Three Focus Areas

Boats

Brand

ART for
Human
Possibilities

Transportation, education,and industry

OthersAdvancing

Robotics

Leverage and evolve
intelligent technologies
and robotics asa foundation

Rethinking
Solution

Innovation• Freedom from menial work throughautomation and autonomization• Promote the use of intelligent technologies and control technologies

Propose uniquely Yamaha solutions

Transforming
Mobility

Promote innovations in mobility
P.77

Become a close part of customers’ lives and offer
unique technology to support them

Human capital management• Promote diversity and inclusion
Electric
wheelchairs

Golf cars• Organizational structure that creates
job satisfaction• Diverse specialist skills andmanagement ability• Diversity in terms of specialization,nationality and culture, and gender* The statement made by Yamaha Motor at the 2019 Tokyo Motor
Show to express the world envisioned by its Long-Term Vision.

18

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202019

Toward Sustainable Growth

Important Societal Issues (Materiality Issues)

To achieve sustainable growth together with society, Yamaha Motor intends to help resolve a variety of societal issues
in uniquely Yamaha ways.
In formulating its Long-Term Vision and Medium-Term Management Plan, the Company identified important societal
issues that it can help resolve by leveraging its strengths and has incorporated initiatives to resolve these issues into theMedium-Term Management Plan.
Process for Identifying Important Societal Issues 

1

STEP

Sort

We look at the wide range ofsocietal issues referenced in the
United Nations’ Sustainable
Development Goals (SDGs) and
the Global Risks Report, andselect those that will have thegreatest impact on Yamaha
Motor’s use and procurement ofmanagement resources, and forwhich the resolution will makethe greatest contribution to theenhancement of corporate value.
We also evaluate the importanceof societal issues from theperspective of stakeholders,referencing the valuations of
ESG rating institutions.

STEP

Categorize

2

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

STEP

Designate3

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

4

STEP

Incorporate

Consolidated into Four Materiality Issues
To clarify the respective positioning of the four important societal issues (materiality issues) we identified,
we systematically categorized the materiality issues formulated in 2018.

* We renamed “Work–life balance” to “Human capital management.”

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

Environmentand resources

Transportation, education,and industry

Selected societal issues
High

Important issue areas

Importance to stakeholders• Financial crisis in important economic zones• Unmanageable inflation• Failure of national governance• Failure of regional or global governance• Inter-government conflict over regional problems• Deepened social uncertainty• Abuse of technological progress• Abolition of inequality• Responses to multistakeholders• Promotion of innovation(active use of global partnerships)• Implementation of fair taxation• Promotion of sustainable industrialization

Low

20

Yamaha Motor Co., Ltd. Integrated Report 2020

• Improved energy efficiency(including promotion of use of renewable energy)• Promotion of use of inexpensive, reliable energy• Promotion of safe and secure work environments• Advancement of diversity and inclusion• Effective use of water resources andprevention of pollution• Securing of clean water resources• Elimination of discrimination against women /protection of human rights• Use of women’s skills• Strengthened disaster prevention and response• Eradication of forced labor, human trafficking,and child labor• Increased employment for sociallyvulnerable people• Prevention of pollution and damage from harmful
chemical substances• Strengthened measures to address climate change• Sustainable use of natural resources• Promotion of innovation(promotion of sustainable industrialization)• Promotion of innovation(promotion of sustainable forms of consumption
and production in ­developing countries)• Promotion of protection and recovery ofland ecosystems• Provision of a stable living environment• Halting of deforestation• Protection and recovery of marine ecosystems• Expansion of educational systems(including vocational training)• Enhanced education environment indeveloping countries• Promotion of social infrastructure development• Prevention of traffic accidents• Protection of small-scale agricultural andfishing industries• Advancement of sustainable fishing industry• Improved access to fishing areas and markets
in least developed countries

Low• Strengthened support for emerging anddeveloping economies• Introduction of industrial processes taking into
account clean technologies and efficient useof resources• Heightened awareness of sustainability• Promotion of economic growth based onfair work environments• Reduction of waste materials• Curtailment of corruption and bribery

Importance to Yamaha Motor

Foundational Issues

Innovation

Human capital management

High

Yamaha Motor Co., Ltd. Integrated Report 202021

Toward Sustainable Growth

Important Societal Issues (Materiality Issues)

Targets and Progress
Important societal
issuesRisks and opportunities

Risks• Tightening of regulations and declining
net sales due to the progression of
global warming• Declining profits due to rising costs

Uniquely Yamaha initiatives forresolving issues

Vision for 2030

Medium-term targets (2019 to 2021)

Progress in 201925% reduction in CO2 emissions from products(CO2/unit sales compared with 2010)* 2050 target: 50% reduction

Reduce by 13.75% (compared with 2010)

13.1% reduction (compared with 2010)

25% reduction in CO2 emissions generated during production(CO2/net sales compared with 2010)* 2050 target: 50% reduction

Reduce by 17.36% (compared with 2010)

32.4% reduction (compared with 2010)

Initiatives for achieving a
recycling society

18.7% reduction in waste generated during production(compared with 2010)* 2050 target: 50% reduction

Reduce waste volume by 10.3% (compared with 2010)* Yamaha Motor on a non-consolidated basis

15.7% reduction (compared with 2010)* Yamaha Motor on a non-consolidated basis

Bringing safe water to people
worldwide

Assisting in village development by contributing to theprovision of safe water

Enhance living and sanitary environment byimproving access to potable water
Bring the number of water purification systems(Yamaha Clean Water Supply System) installed to 60

Number of water purification systems installed: 41

Creating a technology
platform for electrification

Monitoring the electric power policies and battery technology
innovations of various countries while promoting EV development
in order to launch products in a timely manner

Launch electric products in the unique style of Yamaha in many productareas, such as motorcycles, marine products, electrically power-assisted
bicycles, electric wheelchairs, and drones, while establishing a development
platform for electric products

Launched the EC-05 electric scooter in Taiwan
Conducted field testing for the TRITOWN standing electric micromobility
model with twin front wheels
Developed the HARMO electric propulsion system
Total number of drive units for electrically power-assisted bicycles topped
five million units
Developed the YMR-08AP agricultural-use multirotor drone

Achieving a more sustainablemaritime society

Addressing the environmental problems faced by oceans

Initiatives to address the issue of ocean plastic waste

Took part in the Japan Agency for Marine-Earth Science and Technology(JAMSTEC)’s Scientific Survey of Marine Pollution as a survey cooperation
partner

Traffic congestion relief andenvironmental countermeasures

Selling electrically power-assisted bicycles in two or
more emerging and developing economies

Launch sales of electrically power-assisted bicycles in the Indian market

Commenced test sales in India in September 2019

Training to reduce traffic accidents

Reduced number of fatalities due to traffic accidents

Safe riding training opportunities (Yamaha Riding Academy):
Hold 2,000 courses with 180,000 participants in 2021
Number of countries with trainers: 20

Riding safety training opportunities:
Held 1,272 courses with approximately 117,000 participants
Number of countries with trainers: 15

Achieving a more sustainablemaritime society

Conserving marine resources

Offer a number of solution proposals in the fishing industry

Commenced consultations with fishing industry-related companies
regarding smartification of the fishing industry, such as fish farming

Popularizing diverse forms ofmobility for the elderly

Established electrically power-assisted bicycles as an alternative form ofmobility for elderly people in Japan who surrender their driving license

Supply several thousand electrically power-assisted bicycles to local­governments through cooperation with the national government

Began considering supporting test-ride opportunities of electrically powerassisted bicycles in light of the conclusion by a METI committee promoting
the proliferation of diverse forms of mobility that such bicycles could be analternative to automobiles for the elderly

Equipping products with digital devices
for sound maintenance

Equipping an aggregate total of four million units by 2024 (target year)

Supply 200,000 motorcycles equipped with digital devices to themarket per year

Developed a new version of the NMAX scooter equipped witha communication control unit (launched in February 2020)

Offering low-speed mobility services

Selling unmanned transportation systems

Establish prospects for commercialization of low-speed mobility services

Accumulated expertise by conducting field testing (aggregate total of
20 tests) with local governments, various business organizations, andother entities

Developing new forms of mobility

Selling new forms of mobility and having in place a model todrive business

Market penetration of LMWs and new value through the improvement of
the model lineup

Developed the Tricity 300
Commenced field testing of the TRITOWN
Exhibited the MW-VISION at the Tokyo Motor Show

Promotion of economic growth

Increased production efficiency

Develop highly efficient, multifunctional platforms and high-speed ­platforms
for the robotics sector

Developed the YRM20 as a first step toward using a high-efficiency
multifunctional platform (launched sales in April 2020)

Collaboration for factory-use Automatic Guided Vehicles (AGVs)

Made preparations for establishing a joint-venture company for automatedtransporter solutions

Launch sales of autonomous drones

Developed the YMR-08AP (launched in March 2020)

Achieved unmanned agricultural processes for several varieties of crops

Establish prospects for autonomous harvesting of more than one varietyof crops

Commenced harvesting tests at a farm

A leading company for female employees to work at

Promote activities for increasing the ratio of local talent inmanagement positions to 60% at overseas subsidiaries
Continue global recruitment (over 10% of new graduates
in regular positions at headquarters)

52%
10%

Highly international personnel at the headquarters

Number of women in management positions (2014: 16)
2020: 32
2025: 48
Implement trial of an after-school care program in the unique style of
Yamaha for schoolchildren
Obtain Eruboshi, Kurumin, and Platinum Kurumin national certification(Japan)Initiatives for realizing a
low-carbon society• Negative impact on corporate image

Environmentand resources• Delays in the economic independence
of developing countries because ofmarine pollution• Impact of marine pollution on thefishing industry and marine leisureOpportunities• Growing trend of EVs replacing existing
forms of mobility• Heightening demand for smaller formsof mobility

Risks• Shift away from motorcycles due tomore traffic accidents• Rise in traffic accidents caused by theelderly in developed nations• Fewer means of transportation inunderpopulated areas
Opportunities• Growing demand for motorcycles due
to rising populations and incomes indeveloping countries

Transportation,
education, and• Greater need for smaller forms ofindustry
automated mobility• Addressing and supplementing theaging workforce and labor shortages in
the agriculture, fishing, and manufacturing industries• Increased automation with the development of AI technologies• New mobility demand with CASE
vehicles and Mobility as a Service (MaaS)

Risks• Declining competitiveness in themarket and business environment

Innovation

Opportunities• New forms of mobility that drive
business• Offering solutions for the agricultural
sector using robotics

Freedom from menial work throughautonomization

Optimizing entire factories• Increased competitiveness due to thespurring of innovation
Offering solutions for the
agricultural sector using robotics
Risks• Labor shortages from falling birth rates
and aging populations in developed
nations

Human capitalmanagement• Unfair labor practices of suppliers andbusiness partners
Opportunities• Acquisition of new capabilities throughthe promotion of diversity and inclusion• Increased drive with the recruitment ofdiverse and talented human capitalfrom various countries

22

Yamaha Motor Co., Ltd. Integrated Report 2020

SDGs goals

Promotion of diversity and inclusion

Number of women in management positions: 34
Implemented trial of an after-school care program forschoolchildren in July 2020
Implementing supplemental measures to address inadequate factors
toward receiving certification

Yamaha Motor Co., Ltd. Integrated Report 202023

Toward Sustainable Growth

Climate Change-Related Information Disclosure

Yamaha Motor’s Climate Change Mitigation Measures 
Promotion of Low-Carbon Products(Based on the TCFD’s Recommendations)

Yamaha Motor has announced its support for the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD), which was established by the Financial Stability Board (FSB).
In December 2018, the Company formulated the Yamaha Motor Group Environmental Plan 2050 (hereinafter,“Environmental Plan 2050”), which sets out its stance, goals, and action plan as a company that strives to realize a sustainable
society. The TCFD’s recommendations are congruent with the Company’s approach of more proactively disclosing informationon the environmental initiatives it pursues through its business activities and on the achievements of these initiatives.

Governance

The Board of Directors formulates policies on dealing with issues concerning sustainability and regularly reviews their implementation status.
With regard to issues concerning sustainability, the Board of Directors
oversees the Sustainability Committee, chaired by the president and chief
executive officer and comprised of executive officers appointed by the
Board of Directors.
With regard to issues concerning sustainability, we positioned theenvironmental field in particular as an important area to be tackled bymanagement, and established the Environment Committee, chairedby an executive officer in charge of environmental activities. The
Environment Committee meets three times a year to discuss policies
concerning the environment and vision for the future, assess
Environmental Plan 2050, and conduct annual reviews of how each
operating division has performed against its targets. The committee
reports its findings to the Board of Directors at least twice a year.

The products we provide, including our core product line of motorcycles,
are characterized by their light weight and compact forms. They havesmall environmental impacts in terms of resource use during the manufacturing phase, while throughout the use phase they serve as a convenient means of transportation with excellent maneuverability for freely
traveling short distances. Motorcycles, a relatively compact and inexpensive type of mobility vehicle, meet the demand for transportation of
goods and services, particularly in emerging markets that are undergoing
rapid economic growth. They also expand the spheres in which people
live their daily lives, giving them more options in terms of work andeducational opportunities.
We have designated Scope 3, Category 11, “Emissions from the useof products,” which account for 85% of our CO2 emissions in the product lifecycle, as one of our most important initiatives. Under our “BLUECORE” motorcycle engine design ideal, which strikes a balance between
fuel economy and environmental performance, we globally launch newmodels with improved fuel economy every year.

Breakdown of CO2 Emissions for the Entire Lifecycle
Fuels used
Scope 1
0.5%

Electricity used
Scope 2
1.3%

Other
1.2%

Scope 3
98.2%
Rawmaterials
12%

Category 11.
Breakdown by
product
Generators /Snow blowers /Multipurpose
engines
6%2019 lifecycle
CO2 emissions

Outboard
motors14%285.81
million t-CO2

Others8%Motorcycles
72%

Category 11.
Use of products
85%

Setting of Targets for Environmental Plan 2050

Strategy

In formulating Environmental Plan 2050, Yamaha Motor understood andincorporated the business risks and opportunities it may face by the projected
global population increase by 2050, global resource shortages, and energy
shortages, in addition to international greenhouse gas emission reduction
scenarios, such as the 1.5°C and 2°C targets. As such, we have reflected
adaptation and mitigation measures for climate change in our business strategy.

Climate-Related Risks and Opportunities

Aiming to realize a low-carbon society, a recycling society, and a society
in harmony with nature, Environmental Plan 2050 sets milestones for
2025, and promotes environmental activities designed to achieve theplan’s long-term targets through the Company’s businesses.

Motorcycles are the fastest means of transportation for urban mobility and boast
good fuel economy, while having one-third the impact in terms of CO2 emissions
per km per passenger compared with automobiles. When setting our 2017targets, we formulated reduction scenarios for motorcycles, our primary business, with reference to the Sectoral Decarbonization Approach (SDA) developedby the Science Based Targets initiative (SBTi), to set a reduction in CO2 emissionsof 50% by 2050 as a shared reduction target for all our businesses.

Environmental Plan 2050
50% reduction in CO2 emissions during product use

1.0

Impact of CO2 Emissions per km per Passenger
in an Urban EnvironmentIn our scenario analysis, which assumes physical risks based on a 1.5°C
and a 2°C scenario, we have classified and identified the major risks andopportunities for our businesses associated with the transition to a
low-carbon society as regulatory, information disclosure, technological,
market, reputational, and customer risks. In addition, we have evaluatedthe importance of climate change-related risks based on whether they
are likely to materialize in the short term (0–3 years), medium term (3–6
years), or long term (6+ years), and the resulting estimated scale of theresulting financial impact.

80% reduction in emissions in the SBTi (SDA)
automobile sector* Figures are based on Yamaha Motor research
Automobiles

189

Motorcycles

g-CO2 /
passengerkilometer

62

g-CO2 /
passengerkilometer

1/3

(0.3)

0.3

–50%

0.2
0.15

Risks and Opportunities Regarding Important Environmental and Societal Issues, Including Climate Change

Important• Strengthened measures to address
Environmental
climate change
and Societal• Improved energy efficiency
IssuesActionThemesLow-carbon society

Short
term

Risks

Costs for addressing regulations may increasesignificantly, with each country and territory moving
to tighten motorcycle emission standards, and the
U.S. introducing more stringent EPA and CARB
emission standards for marine engines.

Rising demand in India, Africa, and other regions
Medium may increase CO2 emissions from the distribution ofterm
goods, and the introduction of carbon taxes may
increase logistics costs.
Long
term

Heightened environmental awareness may lead todecreased sales of products that use fossil fuels.
Introduction of carbon taxes may increase­manufacturing costs.

Sales of models with improved fuel economy may
Short to increase. In emerging economies, motorcycles
medium may be widely adopted as an inexpensive means
termof transportation with minimal social infrastructure
costs.
Opportunities

Long
term

24

• Effective use of water resources
and prevention of pollution• Reduction of waste materials• Introduction of industrial processes
taking into account clean technologies
and efficient use of resources• Sustainable use of natural resources

Electric models may be widely adopted.

Yamaha Motor Co., Ltd. Integrated Report 2020

Recycling loops in society

Short
to
mediumterm

In emerging economies and elsewhere, severe air
pollution from the use of motorcycles may leadto tighter regulations, including a ban on riding
motorcycles in cities.

Long
term

Increased consumption of resources accompanying
the economic growth of emerging markets mayheighten procurement risks, including a shortageof resources and cost increases.

Short
term

Lightweight and compact low-speed mobility
vehicles (land cars) may be widely adopted as ameans of transportation that helps minimize useof social infrastructure resources and related costs.

• Promotion of protection andrecovery of land ecosystems• Halting of deforestation• Protection and recovery ofmarine ecosystems

A society in harmony with nature

Climate change may trigger abnormal weather
events, including forest fires, droughts, extreme
Shorttotemperature changes, storms, and snowfall,long term destroying the ecosystems of the oceans, mountains,and forests where our products are used.

MediumMotorcycle and marine rental businesses may grow.
term
Long
term

In terms of engineering, manufacturing, andmarketing, ultra-compact mobility vehicles that aresmall, lightweight, and resource-saving may beincorporated into social infrastructure.

Sources: JAMA “2010 Passenger car JC 08 average fuel consumption,” JAMA
“Comparison of average speed of vehicles in cities,” EEA “Average number ofpassengers,” and NILIM “Running speed and CO2 emission intensity”

Yamaha Motor Group’s target
2010

2020

2030

2040

2050

Climate Change-Related Risks 
Identification of Risks

Evaluation of Risks

Each operating division and functional divisioncategorize short-term, medium-term, and long-termclimate change-related risks into “risks related totransitioning to a low-carbon economy” and “risks
related to physical changes caused by climatechange.” Then, after considering the financial
impacts of these risks on business, as well as thefinancial impacts on business when viewing climatechange mitigation measures and adaptation measures as opportunities for management reform, they
identify risks and opportunities in medium-term
management plans.

The Environment Committee evaluates specificinitiatives undertaken as part of a business strategy
on risks and opportunities identified by each operating division and functional division. The Sustainability
Committee evaluates specific initiatives on significant
Groupwide risks—particularly companywide business
continuity risks, including climate change-relatedrisks—that need to be addressed and prevented to
the greatest possible degree.

Process of Managing Climate
Change-Related Risks
We incorporate climate change-related risk management into the risk management structure for theentire Group. The Environment Committee manages
the annual progress toward the goals and targets ofspecific initiatives undertaken as part of a businessstrategy on risks and opportunities identified by each
operating division and functional division. The
Environment Committee reports the results to the
Sustainability Committee, which consists of the same
members as the Management Committee, and to
the Board of Directors.

Indicators and Targets 
Increased awareness of the need to conserve theShortnatural environment may trigger growth of thetooutdoor market where people seek and cherish
long terminteractions with nature.

Each operating division and functional division considered short-term,
medium-term, and long-term risks and opportunities, their business,strategic and financial impacts, and the climate change-related risks
based on a 2°C scenario, in accordance with the designated climatechange materialities of a “low-carbon society,” “recycling society,” and“society in harmony with nature.” These divisions then formulated
specific numerical targets for 2025 and 2050 (reduction of use-phase

CO2 emissions by 19% per unit sale by 2025, 50% by 2050, from 2010
levels; and reduction of production-phase CO2 emissions by 19% per net
sale by 2025, 50% by 2050, from 2010 levels). The Environment
Committee manages progress and deliberates matters that have a significant impact on business, and submits reports or resolution matters to theBoard of Directors at least twice a year.

Yamaha Motor Co., Ltd. Integrated Report 202025

Toward Sustainable GrowthLong-Term Vision and Medium-Term Management Plan
Long-Term Vision

ART for Human Possibilities

The Company has positioned the three years covered by the current Medium-Term Management Plan beginning in fiscal
2019 as the first stage of transformation toward realizing its Long-Term Vision of “ART for Human Possibilities.”
Amid dramatic changes in the external environment and the further diversification of people’s values going forward,
the Company will contribute to the resolution of societal issues based on its longstanding values. At the same time, wewill reform our business and management platforms and promote growth strategies centered on the development of
new businesses in order to achieve sustainable growth.

Advancing

Rethinking

Transforming

Robotics

Solution

Mobility

We will Advance the use of Robotics,
Rethink Solutions, and Transform Mobility
Medium-Term Management Plan

to expand human possibilities for a better society
and more fulfilling life.

Basic Policy Quantitative Targets for Fiscal 2021 

Reforming our business and management platforms and promoting thedevelopment of new businesses

Growth Strategy: Four categories based on technologies and markets
Net Sales

2 trillion¥

Balancing growth investments and shareholder returns
within the range of our cash flows while maintaining
the earnings power of existing businesses
See pages 30 and 31 for details on and thestatus of progress of quantitative targets

49.9%

Operating
IncomeROE¥

Approx.

180 billion

Financial Strategy Equity Ratio
Expanding via co-creation with partners(three-year average)

15%• System supplier• Electrification• Sharing

New Technologies

Operating
Income Margin

9.0%

Continuous andsteady growth+
Inorganic growth

Existing Technologies

Note: We may revise the above targets in lieu of
the impacts of the COVID-19 pandemic.

Establishing business platforms readyfor a new era of mobility

Marine Products

Robotics

Strengthening our high-­profitability
model and building platforms forsustainable growthBusiness scale and area expansion andbolstering profitability• Bolstering current capabilities
	Increasing the efficiency of manufacturing andsales functions• Marine Long-Term Vision	Reliable and rich marine life
Toward further increasing the value of the ocean• Swifter management
	Improving the speed of decision-making using
management systems• Global production layout for outboard
motors	Improving production capacity and flexibility• Growth strategies	Optimizing entire factories and strategies
focused on the logistics, agriculture, andmedical sectors• Shifting to new business fields
	Taking part in the emerging and new economic
zones for mobility• Expansion of comprehensive marine­business strategy
Evolving as a system supplier• Product development strategies	Offering attractive products and services

Yamaha Motor Co., Ltd. Integrated Report 2020

• Agriculture• Medical• Autonomous

Expanding with a
combination oftechnologies

New markets

Progress of Medium-Term Management Plan Measures for “ART for Human Possibilities”
Executed projects

Prospects for commercialization• Low-speed autonomous driving field tests(Wajima City, Iwata City, Unnan City)• Aiming for commercialization in 2021

Autonomous Driving• Invested in AI computing company DMP• Invested in autonomous driving technology developer Tier IV• Joint development of the SC-1 with Sony and start ofservices in Okinawa• Considering business venture in an all-new field byacquisition of core technologies• Business development and application in the
tourism / entertainment sector

EVs• Announced participation in electric motorcycle
battery consortium• Launched battery-swapping electric scooter in Taiwan• Development of electric motor units for EVs• Continuing to develop model products while closely
monitoring electrification policies in various
countries and battery technology innovations

Sharing• Strategic business tie-up with Grab andinvestment of US$150 million• Promoting collaboration and establishing abusiness model

Advancing Robotics• Business integration with SHINKAWA and
APIC YAMADA and investment of ¥10 billion• Invested in Tokyo Robotics• Advancing the pace of YMRH’s PMI and
implementing structural reforms

Rethinking Solution• Started trialing agricultural UGVs
• Land Link Concept exhibited at the Tokyo Motor Show• Considering commercialization throughcollaborations with start-ups

Transforming Mobility• Field testing of the TRITOWN standing electiric micromobility model• Tricity 300 announced as fourth LMW model• MW-VISION exhibited at the Tokyo Motor Show• Expanding the LMW lineup• Accelerating R&D and promoting production
model creation / commercialization

CASE MaaS / Autonomous
Driving• Firming of business platforms
	Strengthening in-house manufacturing­technologies and systems

See pages 70 to 75 forprogress by business

ART

26

Inorganic growth

Existing markets

Medium-Term Priority Measures in Core Businesses Land Mobility

Expanding with funds /M&As

Do not allocate resources to
new areas not synergisticwith existing technologies
and markets

Yamaha Motor Co., Ltd. Integrated Report 202027

Toward Sustainable Growth

Specific Initiatives toward Resolving Societal Issues

The Company is proactively advancing a range of initiatives to contribute toward the resolution of designated­important societal issues by providing uniquely Yamaha solutions that leverage the technologies and expertise­garnered by the Company to date, all while collaborating with its partners and coordinating with industry, academia,
and government.

Innovation

Contributing to labor savings andautomation in agriculture through theapplication of robotics
Labor shortages in agriculture have become a concern for developed
countries across the board, and there is an urgent need for automationand labor savings in the sector. Yamaha Motor is providing solutions forthe agriculture industry through its robotics expertise. By combining
articulated robots that are adept at sophisticated and delicate movements
via intricate electronic control with unmanned ground vehicles (UGVs) for
agriculture, we are aiming to realize fully unmanned harvesting offruit—currently done by hand—and in 2019, we conducted field testingfor grape harvesting at a winery in Yamanashi Prefecture, Japan.

Transportation, education, and industry

Tackling local transportation issues withlow-speed mobility

Environment and resources

Providing a stable supply of potablewater and changing people’s lives
According to the World Health Organization (WHO), approximately
525,000 children under the age of five die from diarrhea-related illnesses worldwide each year (as of 2017), and permanent access to safe
water remains a pressing issue. Yamaha Motor is confronting this with
the Yamaha Clean Water Supply System, a water purification facility
using a simple construction and slow sand filtration, a natural water
purification method.
The system was first developed more than 20 years ago and requires
neither significant electric power nor maintenance by a specialist engineer. It can also be operated independently by the local residents and thewater from nearby rivers and lakes can be made safe to drink. In villages
where the system has been installed, cases of diarrhea, fever, abdominal
pain, and skin disease have fallen significantly. Moreover, beyond creating a stable supply of clean drinking water, installing the system changes
people’s lives in a variety of ways. These include freeing people fromhaving to draw water and allowing them to work and learn instead,and spurring village development through new businesses such as
water delivery, water filtration, and ice-making.
In 2019, we installed 10 systems in the Senegal River Basin and officially handed them over to the Senegalese government. At the sametime, we conducted educational activities to help raise awareness ofproper sanitary practices among local residents, including a picture story
show in which some 350 children listened with great enthusiasm about
the importance of drinking clean water. Yamaha Motor is proceedingwith the introduction of these purification systems through collaborationand cooperation with public institutions such as the Ministry of Foreign
Affairs of Japan, the Ministry of Economy, Trade and Industry (METI), theJapan International Cooperation Agency (JICA), and the Japan External
Trade Organization (JETRO), as well as international institutions like theUnited Nations Development Programme (UNDP).

Japan has the world’s most aged society and is facing a variety of societal
issues, including ensuring modes of transportation for the elderly andregional disparities between urban and rural areas. Countries around theworld whose societies are also aging are paying close attention to developments in Japan. By offering small, low-speed forms of mobility likecompact electric carts as first/last-mile mobility solutions, the Company
looks to contribute to community-building with slow mobility and create
uniquely Yamaha value in mobility to not only address important societal
issues such as transportation, health, and industrial promotion but also
bring fun values to mobility. In 2019, we took part in the Green Slow
Mobility field testing project together with the city of Unnan in Shimane
Prefecture, Takenaka Corporation, and the NPO Entrepreneurial Training
for Innovative Communities (ETIC), in which compact, low-speed EVs
based on our long-proven golf cars circulated major city facilities in
downtown Unnan.

28

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202029

Toward Sustainable Growth

From the Director, Chief General Manager ofCorporate Planning & Finance Center

Approach to Portfolio Management

Through management that places greater
emphasis on the balance sheet and capitalefficiency, we will restore the earnings
power of existing businesses and aim torealize our growth strategies.

Tatsumi Okawa
Director, Senior Executive Officer,
Chief General Manager of Corporate
Planning & Finance Center

Growth and investment businesses
Rate ofincrease in
net sales

Companywide
weighted average
cost of capital(WACC)(Compoundaverage growth
rate)

New
Business

Business
E

New
Business

Business
C

Business
A–10

Business
F

BusinessD0

Simple ROIC

Business
B

Businesses with stable foundations

Businesses to be restructured(After-tax operating profit /Invested capital underoperating division control)–10

Review of Fiscal 2019
The Company has made balancing within the range of its cash
flow investments for new growth and returns to shareholders as
its standard financial policy. However, in order to realize our LongTerm Vision of “ART for Human Possibilities” announced at theend of 2018, we are more conscious than ever before of growthoriented capital allocation.
In fiscal 2019, the first year of the current three-year Medium-Term
Management Plan, the New Venture Business Development departments as well as various existing businesses worked proactively to
explore new fields of business. Up until 2018, we had been unable
to use all the funds allocated for strategic growth investments, so wehave made progress in this regard. On the other hand, we saw signsof stagnation in some existing businesses that are essential for generating the cash necessary for these growth investments.
Free cash flow was a higher ¥19.5 billion, in part due to theeffect of stricter inventory management compared with 2018.
Nevertheless, we were unable to reduce our inventory levels as
initially planned and must therefore carry out more meticulous
management of working capital.
While ROE was 11.1%, down 1.2 percentage points versus our
initial target, this was due to missing our target for net income
ratio, one of the components of ROE. In other words, our earnings power was weak. In particular, the impacts of the Robotics
business and motorcycle business in ASEAN markets—which are
generally highly profitable—were significant. Although the primary cause of stagnation in the Robotics business was a worsening of market conditions, it was a decline in competitiveness andoperational weaknesses in some regions that became an issue forthe motorcycle business in ASEAN markets.

Policy for Fiscal 2020
First and foremost, our priority is responding to the global COVID19 pandemic. To prepare for uncertainties in the business environment, we will ensure that we have sufficient liquidity on hand. To
that end, we decided not to pay an interim dividend in 2020. We
will keep a close eye on the recovery of each market while controlling the implementation of investments and expenses more strictly
than usual. However, we will follow a basic policy of equally engaging in both offensive and defensive tactics by remaining exhaustivein our assessments of new opportunities that are already beginningto emerge as we move toward a post-COVID-19 world.
Based on that policy, we will bolster the earnings power of ourexisting businesses, which has been an issue since 2019. Specifically,in the motorcycle business for ASEAN markets, we will train­particular focus on reinforcing marketing and brand strength and30

Yamaha Motor Co., Ltd. Integrated Report 2020

augmenting our logistics capabilities to overcome the weaknesses wehave. Furthermore, we will expand to all regions of the ASEAN
market and India our premium model segment strategy that is starting to take hold in Indonesia. In the Robotics business, we will leverage the conversion of Yamaha Motor Robotics Holdings Co., Ltd.
(YMRH) into a wholly owned subsidiary in order to accelerate structural reforms for unifying the Group and prepare for market recovery.
In carrying out our growth strategies, we will narrow down candidates for resource allocation by fully utilizing the findings to datefrom our explorations for new business areas, and then make soundinvestments of management resources and strive to reap the rewardsof those investments. At the same time, we will clearly specify fields
for growth for existing businesses in order to develop both fronts.

Direction of Our New Financial Strategy
For our budget for growth strategies in the current Medium-Term
Management Plan, we had apportioned ¥70.0 billion for researchand development expenses and ¥140.0 billion for investments,
including M&As. However, the COVID-19 pandemic has madesecuring these funds difficult. Nevertheless, as our policy andgeneral direction of allocating cash earned through existing businesses toward new business fields will remain unchanged, wemust develop and implement a financial strategy that places
greater emphasis on cash flow and the balance sheet in eachbusiness.
As new metrics for this strategy, we introduced the cash conversion cycle (CCC) and a simplified return on invested capital(ROIC) calculation as important key performance indicators (KPIs).
We commenced full-fledged CCC-based monitoring from 2019,
and approaches focusing on cash flow generation are alreadybecoming widespread among business segment and regional
management. While ROIC is primarily utilized as an indicator forcompanywide portfolio management, we will be applying it toeach business to increase capital efficiency.
Through these initiatives, I would like to change to a management style that puts together a balance sheet under a clear
financial strategy, rather than a style that is the result of the­balance sheet.

Increasing Corporate Value
Yamaha Motor is a multi-industry conglomerate under a single
brand. However, we have never demonstrated an awareness that
we are a conglomerate or adequately put into practice accurate
portfolio management for maximizing the value of that position.
We are currently moving forward with the implementation of
portfolio management centered on growth (compound annual
growth rate (CAGR)) and capital efficiency (ROIC). As a key
agenda item for the Board of Directors, not just those in charge ofbusiness execution, we will clearly define the direction to take foreach business.
For example, under conditions like that of the COVID-19 pandemic, our diversity as a conglomerate should prove invaluable
and there have in fact been many instances of specific businessesor regions rescuing us when we have encountered a variety ofcrises. I am convinced that strengthening our portfolio management will enable us to further exercise our strength of diversity.
Seeing the pandemic as a prime opportunity to review our portfolio, we will promote a dynamic portfolio strategy and continue
creating new value unique to Yamaha Motor and thus achieve
operations as a conglomerate premium.
Turning to shareholder returns, we will do our utmost to
promptly restore business conditions to normal and review thedividend payout ratio, which has traditionally been an indicatorfor shareholder returns, or introduce new guidelines for the total
return ratio and other facets.

Yamaha Motor Co., Ltd. Integrated Report 202031

Foundations for Creating Competitiveness

Creative Branding
We believe that an important objective of management is to further raise the value of the Yamaha brand and make itshine. With that in mind, the Company established the Creative Center in April 2020 to boost the drivers of the brandand is engaging in a range of initiatives aimed at enhancing brand value.

To Create What Only Yamaha Motor
Can Create Akihiro Nagaya
Executive Officer,
Chief General Manager ofCreative Center,
Brand Committee Chairman

Establishment of theCreative Center 
The Creative Center was newly established with the goal of creating synergies by merging the product design and advance designroles of the former Design Center with the Company’s brandmarketing and brand strengthening operations. To that end, wenewly established the Brand Marketing Division, which integrates
certain communication design duties, content creation as well as
website creation and management, and placed it under Creative
Center jurisdiction. Under the banner of “creativity,” we intend topromote these efforts in a comprehensive manner as activities for
proposing value in a new era.

“There Is Greater Joy Yet to Come.” Behind this theme for the2019 Tokyo Motor Show is the belief that we must make more
proposals for bringing people happiness. In order to realize ourLong-Term Vision of “ART for Human Possibilities,” we considered
what specific approaches to take, the kind of value we would
create, and how we could bring joy. Adhering to the unique styleof Yamaha in every facet, from our way of thinking and creating toour development of products and their applications, as well as ourways of communicating, we assembled in the Creative Center toestablish a platform for putting all our efforts into doing not only
more of what we can do but also more of that which only we can.
What can we communicate globally through marketing as
Yamaha from a cross-business perspective instead of that of individual businesses, so that ourbases and business units canengage in all aspects of branding with a sense of ownership?
We look to create real meaning
with these efforts and thenimplement them accordingly.

Kando Cycle• The Kando Cycle describes how we conduct our business from a branding perspective.
• As a Kando Creating Company, we continuously generate new Kando by expanding the linkage of Kando experiences and thereby increase both ourbrand value and our corporate value.

C3

C2

Kando for customers
C1
Build the excitement for
products with the unique styleof Yamaha

B1

Encourage a lastingemotional attachment toYamahaUnderstand andexperience the uniquestyle of Yamaha

Become an
advocate of the unique style of
Yamaha and constantly explain it
to others

B2
Grow potential fans

C4
Y4

Strengthen customer ties
and loyalty to Yamaha
through services

Kando for employees
and partners

Communicate theunique style of Yamaha and its
experiences to customers

B3
Increase new customers /interested employee
candidates

Y1
Foster employees’ pride
Embody the unique styleof Yamaha

Y3

C5

Develop partners’ loyalty to theunique style of Yamaha

Increase profits per unit, sales volume,
profits, and stock priceC6

Y2
Develop technologies,
products, and services with theunique style of Yamaha

Expand investments

Y: Yamaha
C: Customer
B: Business

Promoting the Global Branding PDCA Cycle• In order to relay and reflect the results of brand value analyses in our corporate activities, periodically conduct surveys to assess brand strength using
uniform tools at principal bases around the world.*• Examine issues and formulate an activity plan based on those results.

Autonomous Branding® 
Autonomous Branding®—the autonomization of branding activities—is an approach unique to Yamaha Motor and forms one of its foundations. Autonomous Branding® is an initiative that departs from limiting branding to a single form or optimization on a case-by-case basis forour diverse, expansive product lineup or by each individual region. It instead creates a framework based on the unique style of Yamaha inwhich each involved party takes ownership and implementation of branding with the attitude of “diverse but one at heart.”
The headquarters’ role in Autonomous Branding® is none other than to create and provide a range of tools that are uniquely Yamaha. We
implement branding using the Kando Cycle brand building tool and measure the results as “brand strength” while galvanizing branding
efforts through workshops held in our regions and business areas.
We believe that the unique style of Yamaha is the answer that we pursue as well as our method to conducting branding as a whole.

Evaluation via Common Indicators
Evaluation segment (country, region, product)
ALL
A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

Headquarters
Identify common global issues
and plan and promote
countermeasures

Clarity
Commitment
Global Branding Workshop

Governance
Responsiveness
Authenticity

Headquarters prepares a framework and branding content
Relevance
Differentiation
Consistency

Example 1: BooM display booth design

Presence
Engagement

Base A

Base B

Base C

Each business and base chooses from the framework anduses their choices to carry out branding autonomously

Example 2: Yamaha Day event

Regions
Identify issues and formulate activity plans at
Global Branding Workshops* Uses the Brand Strength factors of Interbrand’s Brand Valuation™ methodology

32

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202033

Foundations for Creating Competitiveness

Creative Design
Yamaha Motor believes that design contributes to both management and branding. With branding, we communicate
the meaning behind creations and endeavors unique to Yamaha, and here we describe the role of design along withsome of our design-related initiatives and achievements.

Mobility in tune with human sensibilities:
MW-VISION

Designing “Meaning” Traditionally, the primary role of design was to communicate topeople the trends and demands of the market and technologicaladvancements through the lens of colors and forms. Today, themeaning of design has broadened and its role is no longer limited
to simply promoting values.
With this being the case, we are advancing initiatives related
to designing “meaning” in particular. Based on uniquely Yamaha
contexts, such as the Company’s history, perspectives, and future
prospects that are ours alone, we engage in design while asking

Concept Models for the 2019 Tokyo Motor Show with a “Designed Meaning”

ourselves what is meaningful value for people’s happiness andwhat are meaningful solutions for society going forward.
Specifically, we carry out our consultations in a workshop
format that we advance alongside the various business departments. Deciphering the meaning required for a new era, we
comprehensively design everything, from business strategies andend products to our touchpoints with customers and society. We
believe that doing so will allow more people to identify with thevalue and solutions we offer.

The MW-VISION is a next-generation form of mobility that proposes a new
relationship between people and their vehicles. In response to environmental and societal issues such as traffic congestion, accidents, and adverse
weather, we designed the plan and concepts of the MW-VISION based on
the “peace of mind” yielded by the LMW platform’s two front wheels, the“comfort” of a roofed, cocoon-like body, and the “fun” of interactive
communication through sound and light.

The Land Link Concept is a landdrone capable of a variety of tasks
via autonomization. Together with
our advanced research departments,
we designed this model according to the Advancing Robotics focus area of
our Long-Term Vision. Focusing on the relationship between the drone andthose working alongside it, we visualized the development concept of an“Inter-Responsive Link” by producing a layout that allows the drone tomove in every direction, coordinated movement with several other drone
units, greater utility by fitting attachments, and more.

Designing interactive
communication via
movement, sound,and light

A Yamaha Mentality—Value-Driven Thinking We have developed our own mentality for deriving uniquely
Yamaha meaning, which begins by stimulating human creativity.
Even if confronted by situations in which an answer seems
unimaginable, this instead spurs our motivation to resolve thesituation rather than shy away in fear.

AI-equipped autonomousvehicular solution:
Land Link Concept

700mm

Narrow
spacesToday, we have begun using this mentality with a variety ofbusiness departments. Eventually, we hope that it will enrich thecreativity of everyone involved with Yamaha and lead to a plethora of new ideas and solutions that will bring happiness to future
generations.

1690mmTransport

Sensing

159

0mm

Design focusing on interactions with workers alongside it

Product Design Visualizing the Intent of the Business and Users

Establishment of Innovation Tokyo 
We established Innovation Tokyo in the Tokyo metropolitan area
to serve as a hub for innovation, a place to create new meaning
through collaboration with outside companies, academic institutions, and creators who share our attitude. Looking ahead,through its functions as a hub for new value creation, we hope
to deliver the next era of Kando to more people and society as
a whole together with the new partners we meet.

Surface mounter with an all-new platform: YRM20

Satisfying adventurous minds: Ténéré 700

Designers took part in the formulation of the concept for the Company’s
surface mount technology (SMT) business—Unique & Proven!—andadopted a new product design echoing this concept. Things began with thedesign of a single surface mounter, but we also created a product design
manual aimed at making the unique style of Yamaha obvious at a glance
when surface mounters are
lined up alongside our industrial machinery for otherprocesses. We wish to develop
trust in our surface mountersin the same way that factory
managers ensure trust andefficiency through tidy, orderly
operations.

We designed the latest entry for our Ténéré brand, which pioneered theadventure motorcycle category, at our design base in Milan, Italy, the closest
location to the target market among our five overseas design centers.
Approaches to motorcycle design often consist of creating a beautiful
design based on a certain motif, but the Ténéré 700’s design envisioned
actual use scenarios and thus sought to include a variety of functions. By
incorporating an approach for the above heavily emphasizing simplicity, the
Ténéré 700 emerged as a tool embodying
the key essences of a rally-bred machine.

Italian design team

Design depiction of the SMT product lineup

34

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202035

Foundations for Creating CompetitivenessResearch and Development
Since launching the PAS as the world’s first electrically power-assisted bicycle in 1993, Yamaha Motor has worked toaddress energy diversification by promoting electrification of its wide-ranging product lineup, from scooters and golfcars to electric wheelchairs and industrial-use unmanned helicopters. By further advancing research and development
centered on our traditional specialty of compact, high-performance forms of mobility with little environmental impact,
the Company aims to contribute to the resolution of numerous societal issues.

Continuing Our Challenge with LMW Technology 
Under the concept “To someday create bikes that lean but do not
fall,” we have developed a variety of production models using our
proprietary LMW technology, which allows vehicles with three ormore wheels to lean like a motorcycle through turns. At the 46th
Tokyo Motor Show in 2019, we exhibited the MW-VISION concept
model utilizing this technology. The cocoon-like vehicle body is easy
to handle and maneuver while the vehicle itself is equipped withattitude control technology, reverse drive, and a self-standing assist
mechanism for peace of mind and easy control when stopped. The
Company is continuing its challenge of creating new demand for
personal mobility through Monozukuri that is close to people andby pursuing mobility that delivers peace of mind, comfort, and fun
to users.

Self-Driving Technology Addressing the Declining Labor Force Growing demand for high-mix, low-volume production combinedwith chronic labor shortages is making it difficult for logistics
operators to maintain an efficient production structure for meeting demand with conventional equipment and operations premised on the deployment of workers. Yamaha Motor and Tier IV,
Inc. have established eve autonomy, Inc. as a joint-venture company for operating an automated transporter solutions business totackle this issue. Both companies are engaged in the joint development of automated transport pilot products at our Hamakita
Factory (Hamamatsu, Shizuoka Prefecture). The units commenced
operations on the logistics line of the plant on March 2020 as we

aim to create smart factories taking advantage of Internet ofThings (IoT) technologies.
Our autonomous vehicle initiatives are not limited to the logistics of factory floors. The Company concluded a Partnership
Agreement for Low-Speed Autonomous Driving Technology
Evaluation Trials within Iwata City (Iwata, Shizuoka Prefecture) andhas been conducting field tests on public roads with low-speed
autonomous vehicles since July 2019. The purpose of the trials is
to evaluate and ascertain any issues with the autonomous driving
system and to study the driving environment toward real-world
rollouts of low-speed autonomous vehicles.

Developing EV Technology for Lower Environmental Impact 
As a pioneer of electric motorcycles, Yamaha Motor has continuously brought electric mobility to the market for approximately 25
years. While we anticipate that it will still be some time before
electric motorcycles become a mainstay of commuting, theCompany is working from all angles to prepare for the arrival ofthat era. At the 46th Tokyo Motor Show in 2019, we exhibited
the E01 and E02 urban commuter concept models, the former
comparable to a 125cc gasoline engine and the latter on par witha 50cc engine. They represented proposals taking the use environment on the horizon into account, such as easily detachable
batteries and fast-charge infrastructure.
Our proposals for electrification are not limited to motorcycles;
we have begun accepting orders for prototype electric motor units
that boast industry-leading output density for use in automobiles
and other mobility. Through the technologies and sensibilities wehave garnered through our engine development work to date, wesought to develop uniquely Yamaha “Emotional EV Motors,” andthanks to our casting and machining technologies—also honed
by developing engines—and the use of high-efficiency segment
conductors, these units generate high output despite their­compact size.

36

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor’s Intellectual Property Activities
Portfolio in Growth Areas

Intellectual Property Activities Strategy

Based on current and future market, technological, and socio-environmental
trends, Yamaha Motor has designated growth areas in its Long-Term
Vision of “ART for Human Possibilities” as well as its medium- to longterm growth strategies to foster sustainable growth, and is promoting
the creation of new value. To that end, we are working to transform theintellectual properties that support these efforts into advanced “assets”
in line with each respective growth area.

Based on the approach outlined in the Portfolio in Growth Areas, theCompany has laid out its Four Policy Pillars of Intellectual Property
Activities with an eye on growth areas and on potential growth areas forthe future, all under the banner of “IP for Business.” Today, the departments of each business segment and the relevant intellectual property
departments communicate closely and coordinate to drive various initiatives based on these four pillars.

Through the above, we will examine new technologies that further the Company’s strengths, the exploration of new markets and business fields, businesscollaborations, M&As, and technical tie-ups from the perspective of intellectual property. In these ways, we will buttress further improvements in the competitiveness of the Yamaha Motor Group and sustainable growth while linking our efforts to new intellectual properties.

Four Policy Pillars of Intellectual Property Activities
1

2

3

4

Move one step ahead of conventional intellectual property activities
that consist primarily of intellectual
property creation linked to productand technology development inexisting businesses.

Pursue intellectual property activities
that preempt technological developments and the expansion of businessareas by looking beyond our existing
technologies and markets.

Indicate advanced fields that target
further preemption and businessarea expansion through analysis of
the intellectual property landscape.

Contribute to management decisions
and strategy formulation from theperspective of intellectual property
analysis in addition to market andtechnological growth analysis.

Yamaha Motor Co., Ltd. Integrated Report 202037

Foundations for Creating Competitiveness

Digital Transformation
To make greater strategic use of state-of-the-art digital technologies and data toward realizing our Long-Term Vision,
the Company has dubbed its digital transformation (DX) as “Yamaha Motor to the Next Stage” and we are driving threelinked initiatives simultaneously to carry out this transformation.

Y-DX2: Strengthen the Present 
We will offer new Kando to customers through initiatives in four core digital domains.

Y-DX1: Reform Management Platforms 
Based on Yamaha Motor’s Ten Principles of Management,* we are revamping our management platforms to achieve thefollowing three objectives:(1) Accelerate decision-making via thorough efforts to make information visible and uniform(2) Enhance the efficiency of back-office operations and shift resources to growth areas(3) Use new information to better visualize our customers and achieve predictive management
At the same time, by standardizing core business processes and systems, we will promote the use of shared services and aim to enhance theproductivity and quality of corporate operations.
* The ten principles defining our system of management established by top management toward next-generation growth

Digital Marketing
Across the customer journey spanning
Awareness to Purchase and Sharing, we will
provide experiences that exceed expectations
with a fully cohesive approach in the digitaland real worlds. We will also respond quickly
to online needs once the COVID-19 pandemic
has subsided. The Company will move forwardwith this initiative based on the key phrase of“Personalizing Kando at Scale.”

Purchase /Re-purchase

Awareness
Experience
Sharing

Smart Operations
We will address market-centric operational issues across the value chain—spanning sales, distribution,
manufacturing, procurement, andmore—by applying the Theory ofConstraints (TOC) methodology, conducting data analysis, and using various
other digital technologies. Teams mainlycomprised of younger employees willtake the lead in tackling various issues.

DAP

Accelerate decisionmaking throughpredictive management

Management dashboard

Interest / Search /Visit

YAMAHA MOTOR

Digital Analytics Platform

Unified Accounting System / Predictive Management

Global layer

Consolidated global database

Management
simulation

Global production,
sales, and inventry(PSI)

Connected
Thorough visibility anduniformity
One Fact, One Place

Consolidated model
profitability

Base / distributor layer

Shared services

Linked Platforms / Global Master

Procurement

Production

Distribution

Sales

ServicesStandardization of business processes and code systems
Accounting and corporate operations

Differentiation
processes

Standardized
processes(ERP)

Shared services through a corporate subsidiary*

Shifting resources
to growth fields

Data Analysis
As a center of excellence for data analysis,
teams of professional data scientists are applying
various data analysis methods as well as AI andmachine learning to resolve various problems,
make improvements, and create predictivemodels. At the same time, we are training ourown data scientists in order to democratize data
analysis internally.

More efficient backoffice operations

Enhanced productivity
and quality in corporate
operations throughshared services* Yamaha Motor Biz Partner (YMBP)The Yamaha Motor Connected Vision
2030 states that “By 2030, we aim toconnect all Yamaha Motor products tolearn more about our customers, form
connections with them, and continue
creating new value.” We have alreadybegun by connecting motorcycles aswell as marine engines, taking a major
step toward offering new value.

Y-DX3: Create the Future 
We will create the future by connecting with our 200 million customers.

Medium- to Long-Term Plans
Action Themes
Y-DX3.

2019–2021

2022–2024

2025–2027

Search and trial

Building and implementation

Expansion

Create the
FutureY-DX2.

Yamaha Motor customers

Four core domains and DAP

Strengthen the
Present

Y-DX1.
Reform Management
Platforms

Global consolidated database andJapanese accounting ERPApplication in four core domains andglobal rollout

Advance and update

Principal base / distributor ERP

ERP at all bases / distributors

Customers who know
Yamaha Motor

Customers
who do not know
Yamaha Motor

We will form ties with new customers
through channels beyond conventionalorganic growth and via collaborations.
By gaining new perceptions and synergies,
we will create new value and a new future.
Furthermore, we will create a continuous
cycle of innovation internally and take up
challenges with uniquely Yamaha ideas.
Collaborations with different fields
Co-creation programs
Construction of a continuous
cycle of innovation

Y-DX2. Strengthen the Present
Y-DX3. Create the Future38

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202039

Foundations for Creating CompetitivenessProcurement
To deliver our unique, high-performance, high-quality products throughout the world, procuring a diverse variety ofquality parts and materials with a global perspective becomes crucial. By proactively communicating with our suppliers
and business partners, we develop trusting relationships and the strong teamwork we build in this way leads to the
Yamaha Monozukuri that creates Kando.

“Theoretical-Value-Based Procurement” and the Supply Chain 
Monozukuri Procurement That Incorporates
Our Partners“Theoretical-value-based procurement” is an initiative unique tothe Company underway in collaboration with its business partners.
This approach—implemented with our partners—extends toprocurement the theoretical-value-based production approach
applied to our manufacturing and production processes, i.e., firstdrawing up an ideal vision and then conducting improvement
activities striving to achieve high-quality output. With theoreticalvalue-based procurement, we share issues we are facing with the
top management of our partners and emphasize putting dialogue
and goal consensus at the forefront in order to uncover the key
points for contributing to improved procurement management.
To promote these activities, we train “theoretical-value instructors” and dispatch them to suppliers. In addition to improving
production processes, the target area for theoretical-value-based
procurement extends to reducing energy use, trimming inventory,

Global Implementation of Theoretical-Value-Based Production(No. of companies)

416

Overseas
Japan

338

251
185
146

13

30

44

54

67

86

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019enhancing quality, and more. Going beyond simply procuring theparts and components required per product blueprints, we workwith our partners to create the best possible products in terms ofmaterials and manufacturing as well.
As of 2019, 416 suppliers have adopted our theoretical-valuebased production approach, and we are creating a robust procurement network.

Cultivating Teamwork through Horizontal Deployment
The Company holds an annual Global Suppliers Conference gathering together our major business partners and suppliers fromaround the world, and some 600 people attended the seventh
event in 2019, with attendees hailing from 135 companies
in Japan, 92 companies in 13 other countries in addition toCompany executives, employees, and subsidiaries. In addition
to sharing our vision and introducing initiatives at this event, we
present awards to outstanding partners in each business, shareexamples of successful deployments of theoretical-value-based
procurement, and display new products. The conference not only
helps participants get to know Yamaha but also helps grow thenumber of Yamaha fans and enhance the brand.

Promoting Sustainability Across the Entire Supply Chain 
We ask our partners to support the Yamaha Motor Group’s Basic
Policies of CSR and expect them to act on the basis of these policies. Our current Medium-Term Management Plan (2019–2021)
calls for the rollout of these policies to cover approximately 90%
of our total worldwide procurement value, translating into morethan 1,000 companies across the supply chain. So far, we havereceived declarations of conformity from around 600 companies.
As part of our environmental response initiatives, we issued ourGreen Procurement Guidelines and are accordingly working with
suppliers to manage and curtail use of environmentally hazardous
substances and to use resources and energy more efficiently,
among other undertakings. And in 2018, we incorporated into
the guidelines information from the Yamaha Motor TechnicalStandards on chemical substances uniformly defined throughout

the automotive industry, and have made a thorough effort toensure supplier awareness of and conformity with these changes.
To ensure legal compliance, the standard purchasing contracts
we sign with individual suppliers call for compliance with relatedlaws, ordinances, official notices, and guidelines.

CSR Guidelines
for Suppliers• Safety and quality• Human rights and working environment• Concern for the environment• Implementation of risk management(crisis management and response)• Thorough compliance• Appropriate information disclosure

Conducting Assessments of Working Environments in Indonesia 
On a monetary basis, Southeast Asia accounts for 47% of theparts we procure for our major products, but it is also a region inwhich human rights risks are generally considered to be high.
In 2019, we commissioned a third party to conduct trial assessments of working environments, including aspects of humanrights violations. Specifically, we selected three suppliers inIndonesia—our largest motorcycle production base—in categories

where work environment risks tend to be high. The assessments
included judging the degree to which policies were being maintained and followed; interviewing members of management;
evaluating labor practices, actual working conditions, and remedial measures; and conducting site inspections. We provided those
suppliers with feedback and proposals, and are working on
making improvements.

Building Information Networks to Support the Company
Building strong teamwork with our business partners facilitates amore attuned response to risks. To be able to quickly collect information on damage affecting our supply chain stemming fromnatural disasters like earthquakes, floods, and typhoons, we haveestablished a framework with our partners for checking the supply
chain not only with our primary suppliers in Japan, but also one
that extends to secondary and tertiary business partners as well as
those further upstream. Even amid the chaos seen with global
supply chains due to COVID-19, the ability to quickly gauge thestatus of operations of our suppliers together with individual
reports greatly aided in making swift management decisions.

Message from Management
Contributing to strengthening procurement strategy and g­ overnanceover the next 10 years through a unique perspective
I have been working for the Yamaha Motor Group for 26 years, and especially mythree years of management experience at the Procurement Center in Japan wasvery insightful, and helped me to better recognize the importance of the global
procurement governance.
The COVID-19 pandemic has put ongoing pressure on both supply and demand
and affected our operations as a whole. We have a responsibility as management
to reflect on this and consider how our procurement strategy, activity management,
governance, and human resources should evolve over the next 10 years within a
rapidly changing business environment. This subject must be discussed on a global
level and common decisions must be implemented.
As joint leader of the Global Execution Transformation (GET) strategy for the
procurement field, I will lead our team to take our global procurement capabilities
to the next level.

Olivier Prevost
Director,
PTW Manufacturing & Engineering,
Yamaha Motor Europe N.V. (YMENV)We asked Indian automotive parts manufacturer Fiem Industries Ltd. (FIEM) to produce our ultra-compact LED headlight created with an emphasis on cost and quality, and basedon our theoretical-value-based production approach. Adopted on the 2019 MT-03 model, it greatly raised its product appeal, and for their work FIEM received the Excellence inTechnology and Development award at the 2019 Global Suppliers Conference.

40

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202041

Foundations for Creating Competitiveness

Manufacturing and Production (Monozukuri )We create high-quality products interweaving our technologies and sensibilities through a combination of our­craftsmanship that brings added value to our products and our production processes that eliminate waste. Moreover, we
will further strengthen our production schemes through the application of production and manufacturing technologies.

Striking a Balance between Theoretical-Value-Based Production andYamaha Motor Craftsmanship: The Yamaha Touch 
The Company implements its unique theoretical-value-based
production approach at its Group companies and business partners. Conducting improvement activities after first drawing up an
ideal vision leads to ideas different from a conventional, incremental approach and this has generated higher production output. In
addition, we seek to contribute to management goals by linking
these activities with the Company’s profit and loss statement andbalance sheet.
Theoretical-value-based production is a Yamaha improvement
method through which fully productive time—a common metricfor productivity—is further categorized into work with value,quasi-value, and no value, and any elements of no value arethoroughly analyzed and minimized. Moreover, it focuses on not
only the productivity of people and facilities but also the leadtimes for items. By moving forward with synchronized production
processes based on a comprehensive optimization approach, weseek to realize shorter lead times and thus improve our adaptability to the market. This work first began in Japan in 2004 and was
subsequently rolled out to Group companies and business partners across the world, continuously achieving noteworthy results.
However, the key to maintaining the Company’s competitiveedge is the delicate balance we strike between our efforts to create
value and what seems to be the stark opposite of that—the illogical
yet invaluable extra steps we take in the process. This is what wecall the Yamaha Touch of Yamaha Motor Craftsmanship, and wewill bolster our production branding efforts going forward.
Examples of the extra steps we make to enhance the appeal anddraw of our products are aiming for bullseye precision rather thansimply within acceptable parameters, or the careful eye and handsthat buff a rough surface to its final finish since the machine
cannot. The Yamaha Touch has evolved and been passed on as partof our workplace culture. Yamaha motorcycles receive particularlyhigh acclaim from customers for their handling, design, color
schemes, and other features, but it is only through the Yamaha
Touch that they can be brought to life as products. In addition to
producing exactly what the blueprints sent by the designers andengineers contain, it is in the DNA of the factory frontlines to produce work that surpasses specifications, and cross-departmental
exchanges of opinions and feedback are part of our ever-present
efforts to improve. The Yamaha Touch has been cultivated andrefined through Yamaha’s keen sense for quality and detail, ourfactory and workplace traditions, and the professionalism of eachindividual, and it creates immense added value in the varied andvital processes of creating lighter chassis, more efficient engines,
and more beautiful designs for Yamaha motorcycles.

Quasi-value work

The fuel tank of the
YZF-R1M flagship model
is buffed to its final
finish by a mastercraftsman.

Schedule loss

No value work

Factory theoretical value
Ideal cycle time

Speed loss

with the establishment of smart factories as this system provides
greater clarity to issues while efficiently reforming management
methods, thereby contributing to enhanced corporate activities asa whole. This initiative is planned for ASEAN markets as well, andby becoming better able to gauge the manufacturing situationsof our domestic as well as international bases, we are working
to globally augment management efficiency.

Case Study

Big data analysis improves casting process
Cast parts are created using molds, so the individual points andshapes being formed cannot be seen from the outside. Accordingly,
it is a process that relies heavily on simulations and the experienceof longtime engineers in order to improve quality. As a smart factory initiative, we acquired casting process-related data spanningover 200 items and conducted big data analysis of their correlation
with quality. Through this, we successfully cut defect-induced lossesof ¥100 million over the course of 2019. In addition to qualityrelated loss reductions through data analysis, we have begun developing automation technologies such as AI imaging inspection, andwill implement them at factory sites as we move forward. By leveraging these technologies, we will realize high-quality, cost-­

Employees are able to check a variety of manufacturing site data on location in atimely manner, leading to prompt improvements.

Message from Management
Bolstering our competitiveness by instilling the Monozukuri Way globally

Planned production time

Value work

The incorporation of technology trends and practices such as
Industry 4.0, IoT, and AI at production sites is drawing greaterattention. The Company defines a “smart factory” as a systemthat links and unifies data on people, equipment, products, andinformation in manufacturing, markets, and engineering; andvisualizes disparities and fluctuations between theoretical value
and effective value in real time. The Company is moving forward

competitive Monozukuri on a global scale.
Our long-selling SR400model is assembled
through “cell manufacturing” in which the entire
motorcycle is put together
by a two-person team.

Theoretical-Value-Based Production Chart

Fully productive time

Yamaha Motor Smart Factory Initiatives 

Identify the essential functions, eliminate items and objects (losses) otherthan these essential functions, and continue to aim for new heights

The Global Execution Transformation (GET) initiative was established in January 2020
as a global activity organization pertaining to management and business functions.
My role in the GET initiative involves jointly overseeing our global efforts in the manufacturing industry as well as promoting global activities therein.
Specifically, we will instill Yamaha Motor’s vision for Monozukuri (Monozukuri Way)globally by promoting Monozukuri global management through the annual
Monozukuri Conference. At the conference, I would like to not only share our
Monozukuri Way but also focus on transforming the manufacturing industry andimproving our brand value. Furthermore, I would like to create a global manufacturing
team as part of efforts to more actively promote the Monozukuri Way at our overseas
bases, in addition to domestic bases. By mutually sharing information and successful
examples and developing best practices, we will raise the expectations of employees
from overseas bases participating in the team and promote our Monozukuri Way while
being able to pinpoint areas of improvement going forward. Moreover, a global manufacturing team would also greatly enhance our ability to identify talented global manufacturing personnel and develop such personnel over a short period.
My goal is to lead our manufacturing bases around the world to improve ourbusiness performance while increasing the value we provide to customers, thereby
raising the value of the Yamaha brand.

Michael Chrzanowski
Deputy Executive Officer,
President,
Yamaha Motor Manufacturing Corporation ofAmerica (YMMC)

Essential functions
Technological theoretical value

42

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202043

Foundations for Creating Competitiveness

Sales (Marketing)Marketing positions customer needs as the starting point of all corporate endeavors and our endless pursuit of greater
customer satisfaction is how we seek to achieve sustainable growth.

Marketing That Showcases and Augments Yamaha Motor’s Strengths 
The Company established “The Global Yamaha Way in Marketingin Sales” to clarify our shared values for conducting marketing in
the realm of sales. The overarching vision of this manifesto is“Continuing to Create Lifetime Yamaha Customers,” and theprogram itself brings Yamaha sales bases around the world
together to globally share, teach, and learn from one another theknowledge they have cultivated individually while spurring eachother to greater heights.
Yamaha Motor divides the customer journey into its own sevensteps and conducts customer-centric activities for each. This provides a common framework for deliberation among our basesaround the world in order to define the objectives, identify thetarget customer, and thoroughly determine aims and actionsaligned with said customer. In sharing successful marketing cases,
we employ a “teach and learn” approach that examines why thecase was successful, what difficulties were faced, and what isneeded for continued success. This leads to in-depth study anddiscerning of the key factors of the case, and the knowledge bornfrom the discussions is then formulated, accumulated, and sharedglobally, leading to new successes. Having members from aroundthe world that share the same values gather in the same location
for meaningful, customer-centric discussion not only enhances
teamwork but also enables the application of knowledge
from other countries and will propel us to the front of
global competition.

Experience

Psychological
Share

Digital Marketing Initiative in Brazil Sharedat Our Global Marketing Meeting 
Since 2015, we have held the Global Marketing in Sales Meeting(GMSM) as a forum for sharing the marketing knowledge we haveaccumulated at a global level. In addition to existing marketing
methods, the meeting serves as a venue for reporting case studies of
initiatives that take advantage of new technologies and viewpoints.
One success story was the Digital Marketing and Leads
Management case from our sales base in Brazil. They establisheda single, unified system for managing the entire flow of acquiring
information about customers that had shown an interest to­purchase online (leads), encouraging those customers to visit theirlocal dealership, and ensuring a successful sales meeting. The sales
base visually tracked customer actions and quantified dealer
response time and close ratio. As the result of thorough improvements based on customer data, this approach netted the subsidiarya steady rise in its market share despite the challenging businessenvironment. Several sales bases took the lessons of this case home
and are implementing them in their own marketing activities.

Awareness

Experience

Interest

Message from Management

Customer
SearchPurchase

Decision

Engaging in 5S Value Package activities in Mexico as One TeamVisit
ActionSeven Steps of the Customer Journey as defined by Yamaha Motor

Initiatives in Indonesia to Instill the Yamaha Way Among Dealership Staff To further promote the Marketing in Sales (MiS) activities thatleverage the Company’s strengths, each country is working to
introduce the MiS approach into their operations. In Indonesia, weare conducting MiS activities for our internal sales and marketing
personnel as well as the staff at our Yamaha dealership partners.
We engage in sales work aligned with The Global Yamaha Way
in Marketing in Sales together with dealerships to spark interest in
our products, encourage customers to visit, make a purchase, andthen continue to make purchases. With after-sales service inparticular, the Company introduced its Time Commitment Service(TCS) in which a dealership makes a commitment to the customer
for performing regular maintenance or an oil change within a
specified amount of time. For the customer, this removes the44

Yamaha Motor Co., Ltd. Integrated Report 2020

stress of not knowing when the work will be complete and theirmachine ready for pick up. Raising customer satisfaction at eachtouchpoint leads to creating lifelong Yamaha customers.

In addition to our traditional Marketing in Sales activities premised on Sales,
Services, and Spare parts (3S), we have included financial services and safety as two
new forms of value (5S), in order to acquire new fans as well as existing customers,
as we seek to realize our company mission of creating loyal customers. Based onthese five types of value, we are formulating events and activities for customers
integrally with our sales channels.
Among these events and activities, we are implementing the safety educationand training of the Yamaha Riding Academy (YRA) with the goal of keeping customers riding their motorcycles safely and with peace of mind. We are proactively
operating riding courses tailored to our customers, such as implementing safety
training in conjunction with test-riding sessions for acquiring new customers.
Today, there are many traffic accidents in Mexico and nowhere to properly learn
traffic rules. At YMMEX, we will continue to endeavor to improve customer safety
by providing YRA training to a greater number of customers while focusing ourefforts on training the instructors in our sales channels.

Yuki Doi
President,
Yamaha Motor de Mexico, S.A. de C.V.
(YMMEX)

Yamaha Motor Co., Ltd. Integrated Report 202045

Foundations for Creating Competitiveness

Human Resources
Taking on a global perspective, we aim to create an organizational structure based on the Company and its employees
having mutually high goals and ambitions; learning, growing, and working together; and sharing in the joys of ourwork. To that end, we are creating workplaces that respect and encourage diversity.

management development programs around the world, and haveintroduced global human resource systems to train and promotetalented staff as we work to build an organization that utilizes
global experience and knowledge.

As an aspect of its diversity efforts, from 2016 the Company
began appointing individuals employed at overseas subsidiaries
to general manager or higher posts at the headquarters as well.
Currently, we are working to promote the placement of the rightpeople in the right jobs at the right time by going beyond the“headquarters and overseas base” relationship and have begun
expanding the scope of international transfers among Group
companies to include non-executive employees. We have also set
targets of doubling the number of women hired for managerial
positions in 2014 by 2020 and tripling it by 2025. In 2019, we
achieved our target for 2020 ahead of time.

Development of Global Talent

Supporting Work-Life Balance

Our Fundamental Perspective 
Based on our fundamental belief that all corporate activities­originate from people, we believe it is crucial that our workforce
incorporates diverse viewpoints and values, reflecting differingexperiences, skills, and characteristics to create new Kando.
To achieve this, we have developed and run standardized

Human Resource Development While conducting its business on a global scale, the Company has
designated Independence and Improvement, Teamwork, and Global
as the prime vectors of its human resource development and isconducting human resource training programs targeted toward each.
These include not only training tailored to each employee levelbut also training to hone specialist skills and systems for employees seeking to work globally, such as having employees experience
working overseas in their fourth year or overseas postings as
trainees. We also conduct coaching to create more cohesive teamwork and thus boost performance as an organization overall. In
2019, each Yamaha Motor employee spent on average 11.3*
hours toward developing their own skills.

Promoting Diversity We run a Global Executive Program (GEP) for particularly talented
employees to provide them with greater experience on the global
stage and knowledge for the future. The Yamaha Business School
Global (YBS-G) is also in place as a training program for future
executives that we conduct in a highly diverse environment. These
programs are to encourage the promotion of outstanding humanresources to management positions regardless of nationality orplace of birth, and to increase the percentage of local talent inmanagement positions at our overseas subsidiaries to 60%.

* Excludes time spent on training for laws and regulations such as compliance, healthand safety, as well as training for new hires

care leave, and family illness leave, as well as systems for flexible
or shortened working hours, and the rehiring of employees who
resigned to accompany their spouse on overseas postings.

Employee Health
In February 2020, the Company was recognized for the third
consecutive year under the Certified Health & Productivity
Management Outstanding Organizations Recognition Program
conducted jointly by METI and Nippon Kenko Kaigi. We consider
employee health to be a key management issue for theCompany’s development, and are working with all employees
to maintain and promote their health.

The Company supports the creation of workplaces that promote a
healthy work-life balance for its employees. We are enhancing oursystems so that employees can work in ways that suit their individual circumstances, such as providing childcare leave, nursing

New Work Styles Arising from the COVID-19 Pandemic 
In the first half of fiscal 2020, we actively implemented new work
styles due to the COVID-19 pandemic, namely remote working for
office-based employees. Although remote working has benefits
that include the changing of commuting time and spare time into
time of greater value, improved productivity, and the promotion ofgood work-life balance, we have learned that it also creates adilution of communication and other issues. Going forward, weplan to establish new work styles premised on co-existing with
COVID-19 as permanent systems that will lead to improved corporate value while taking into account the safety, health, and worklife balance of our employees to the fullest extent.

Yamaha Motor’s Human Resource Development Program

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Business
School Global(YBS-G)

Yamaha Business School

Overseas experience forfourth-year employees

Study abroad

Overseas trainees

Training prior to overseas assignment

Technology

Manufacturing
Domestic OJTSkill enhancementfor office workers

Selection

Coaching

For newly promoted
foremenTeam leadershipfor supervisors

GlobalGlobal Executive
Program (GEP)For newly promoted
managers

Team management andstudy abroad forsenior supervisors

Teamwork

Specific specialist skills

For newly promoted
general managers

For new employees

46

Independence and Improvement

Administration

Self-Value Challenge (SVC open call in-house)

Self-Value Design (SVD) training

Finance, accounting, and computer training

Language classes (voluntary)

Career survey

Yamaha Flex School (correspondence education)

For newly assigned
executives at
subsidiaries

Management
GeneralTraining by Level

MarketingSelf-Value Design (SVD)

Message from Management
By stepping up hiring of non-Japanese personnel, we areprompting internal changes and promoting further growth
for the Company.
We consider the hiring of non-Japanese personnel to be one aspect of our diversity
and inclusion efforts, which include the promotion of active participation by
women and the employment of people with disabilities. The Company is highly
global, deriving 90% of its net sales outside Japan. Taking this characteristic into
account, we recognize that embracing a broad and diverse range of values is essential to our sustainable growth.
Without a doubt, non-Japanese personnel stimulate their Japanese colleagues.
The Company is adopting a more global feel, allowing us to gradually promote“inner globalization,“ and this is beginning to influence the Company’s systems. For
example, being “global” is being taken into account for promotions. I will continue
doing my utmost to help build a truly global company by working alongside our
non-Japanese employees, which represent excellent talent from around the world.

Tamami Kawai
General Manager of
Human Resources Division,
Human Resources & General Affairs Center

Yamaha Motor Co., Ltd. Integrated Report 202047

Foundations for Creating CompetitivenessInitiatives for Improving Employee Engagement
Yamaha Motor views spurring internal communication and improving engagement, not only among employees­themselves but also between management and employees and between employees and the organization, as a crucial
element for achieving continuous growth in our corporate value. To that end, we are enhancing our internal­communication tools centered on the publication of the company newsletter.

Yamaha Motor’s Internal Communication Tools
Our internal communication tools are comprised of the monthly
company newsletter, which we have been publishing since 1964,
an online version of the newsletter, videos produced for employee
audiences, and digital signage. We are energizing internal communication by tailoring content to suit each medium and its

characteristics. All the tools share a common editorial policy andthe two main goals of 1) sharing and facilitating understanding ofupper management visions and policies, and 2) improving internalbrand awareness.

A Company Newsletter
Commended by Employees
We distribute 20,000 printed copies of our company newsletter inJapan every month. In addition to management-related informationsuch as messages from management figures, the newsletter features
running columns like A Life with Yamaha and Yamaha from theOutside. These are intended to encourage employees to adopt
customer and stakeholder perspectives, and both have garnered afavorable reception from employees. Amid a growing lack of interestin reading among young people, over 90% of employees read thecompany newsletter and have indicated their satisfaction, with thismetric standing at over 70% for employees in their 20s. By introducing series featuring younger employees—such as Yamaha from theInside and Power of the Factory Floor—and adopting a more creative
design and modern layout, we grew the previously low readership of
employees in their 20s and those in manufacturing divisions.
The Power of the Factory Floor series focuses on employees on
the factory floor who endeavor to maintain and improve quality,and presents a faithful picture of the wisdom and ingenuity handed
down from generation to generation, the growth process as theyacquire know-how and technical skills in production technology,
their attitudes toward their work, and more. Communicating what
it is like on the Monozukuri frontlines helps to maintain as well as
raise the motivation of factory employees while also serving toremind those not involved in manufacturing of the Company’s
identity. These articles have been selected by factory employees as
their favorite newsletter content and are also highly regarded byadministrative departments and among employees of all ages.

Company Newsletter
Employee
Questionnaire

91.1

%

of employees responded that theyeither read the entire newsletter orread only the articles of interest

Enhancing Our Internal Communication Tools
As employees in manufacturing typically do not use the internet
as part of their main duties, they do not usually see information
posted on the company intranet. Furthermore, space is limitedwith the printed company newsletter and the amount of information we can communicate must be narrowed down.
To address this, we installed digital signage in the factories andemployee dining areas to transmit information on Group companies around the world and new products, videos related to management policies, and other content. This created an environmentthat allows manufacturing floor employees to naturally comeacross company information in the course of their daily work. Thismeasure received a strong reception from over 90% of factory
floor employees, and in response to requests from other workplaces, we are currently moving forward with digital signage
installations Companywide.
We are also working to bolster internal communication for
employees overseas. Headed by topics contributed by correspondents
at our major bases abroad, we regularly update the president’s blog
and upload a variety of videos to an intranet site in English. In 2019,we held a global meeting gathering together these correspondents
and exchanged information on the state of internal communicationin their respective countries and shared model examples.

Revs+TV video portal

Online version of Revs, Revs+

External Evaluation​Revs company
newsletter

Power of the Factory Floor series
bringing real imagery and content
from manufacturing workplaces

Received the Gold Award in theSpecial Category of the2019 Company Newsletter Awards
A special edition of our company newsletter compiling every Power of
the Factory Floor article to date received the Gold Award in the Special
Category of the 2019 Company Newsletter Awards, a national competition for company newsletters held by wis works, Inc. The award was
granted in recognition of the approach to the project, its themes as wellas the high quality of the writing and page design.
We also use this edition in recruitment, and it has received praise from
job-hunting students, commenting that it sparked their interest in the
Company, that they instinctively picked it up and read it, and that it gavethem a picture of working at Yamaha Motor.

Message from Management
For this project, we wanted to raise the motivation of employees working on the frontlines of manufacturing. So
we decided to focus on the feelings and pride these employees hold toward their respective jobs as well as depicting them in their daily endeavors, thereby expressing what makes us unique as a company. This approach was not
only well received by the employees themselves but also resonated with their families, people seeking employment,
and others. The high marks this special edition received in an objective review is very encouraging, and I would liketo continue to play a role in connecting employees, departments, and others with little cross-division interaction
due to their work through communication.

Yuko Kurabe

Internal Communication Group Manager,
Corporate Communication Division,
Corporate Planning & Finance Center48

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 2020

49

Foundations for Creating CompetitivenessYamaha Motor’s Sporting Activities
Our wide-ranging participation in and promotion of sports, from the racing and sailing efforts that have continued
uninterrupted since our earliest days to the work of the Yamaha Motor Foundation for Sports, are prime examples of
the corporate activities that we are engaged in over the long term as we seek to share Kando with people around theworld. Among these activities, rugby is the sport we participate in with a company team as it strongly expresses thepassion for sports in our corporate culture. Our rugby effort not only contributes to local communities but also helps
foster internal unity and greatly adds to our corporate value.

Embodying the Spirit ofChallenge—Yamaha Motor Jubilo
Our corporate culture includes a passion for sports and we view
rugby as bringing benefits to corporate management and raising
the motivation of our employees.
Formed in 1982 as the Yamaha Motor Rugby Club, Yamaha
Motor Jubilo won the Kansai A League in 2002 while overcoming
many adversities before moving to competition in the Japan
Rugby Top League in 2003. The team finished as the leaguer­ unner-up in the 2014–2015 season and won the 52nd All-Japan
Rugby Football Championship. Since then, the team has continued
to feature in the standings as a title contender.

Unlocking the Full Potential ofPlayers through the Yamaha Style
The Yamaha Style employed by Yamaha Motor Jubilo aims toembody Yamaha through rugby and designates as its mission thecreation of new Kando through innovation and passion. We areworking to unlock the individual capabilities of players to thefullest by instructing them using the Japanese shuhari (learn,reflect, and transcend) method as our coaching philosophy.
This is because we are convinced that every team member
continuously giving their maximum of their own volition—regardless of the circumstances—will ultimately lead to the maximizationof our team’s strength overall, as indicated in this season’s teamslogan of Maximize.
The evolution of our Yamaha Style is about creating a lasting
cycle of the shuhari philosophy, and we will endeavor to carry on
Yamaha’s legacy and aim for further growth.

Yamaha Motor Jubilo’s Team Vision• A strong team that is No.1 in Japan and can take on the world’s best

Despite a smaller corporate size compared to other teams in
the Top League, Yamaha Motor Jubilo takes strength from rugby
tactics that combine players of outstanding ability and leverage
their respective strengths by identifying their latent capabilities;
and from its strong connection with Group employees, people
from the local community, and its fans; as well as from their loudcheers of support. This strong connection was built through close
community-oriented activities using the advantages of Yamaha
Motor Jubilo’s more regional location, and the team will continue
to take on challenges going forward.

• A team that is loved and supported by employees and the community• A team that can share exhilarating moments

Rugby Classes at Local Schools
Yamaha Motor Jubilo operates a program for schools in Yamaha
headquarters’ hometown of Iwata and neighboring communities
with the aim of communicating to children and students the funof sports and the importance of having dreams and goals throughrugby and tag rugby. In cooperation with Shizuoka Prefecture’s
Rugby World Cup legacy initiative, Yamaha Motor Jubilo players
visited 72 elementary schools around the prefecture in 2019 tofoster interest in rugby. The interactions with the children alsoenergize the players and lead to their own growth as well.
Operating a Rugby School
Yamaha Motor Jubilo is the only Japan Rugby Top League team todirectly manage and operate school activities, and the outreachprogram marked its 19th year in 2020. With current and former
rugby club members as well as members of local club teams serving as instructors, approximately 300 participants—from children
to adults—play rugby on the same pitch used by top teams.

Yamaha Motor Co., Ltd. Integrated Report 2020

General Manager and CoachYamaha Style
The integration of science, non-science, and art
Never be trapped by rigid preconceptions about what is normal
Be innovative and passionate
Envision something new and bring it to life
The courage to not fear failure
The ingenuity and determination to turn failure into successThink and cooperate as a team, as you cannot succeed alone
Take on challenges only Yamaha can

Workplace Colleagues
Supporting the Players
Yamaha Motor Jubilo rugby players carry out their strenuous daily
training as well as their duties as Yamaha Motor employees. “Theyobtain the knowledge and certifications needed for their work justlike everyone else.” “They are popular at work and supported bymany fellow employees. They also look out for and are looked
up to by younger employees.” These are some of the comments
received, showing how the players are held in high regard andsupported by many of their workplace colleagues.
The Company currently has 80 employees who are former
members of its rugby club, and 37 of them—over 40%—havepreviously been stationed overseas. There are currently 19 such
employees active in markets and production sites overseas, while
36 former members are demonstrating leadership in management
positions and seven serve as general managers.

Popularizing Rugby andContributing to the Community

50

Takanobu Horikawa

The Challenge of a Second Career
After retiring from professional play in 2016, I was given the opportunity for
onsite training overseas and I am currently handling sales for the southern areasof India at YMIS, our subsidiary in the world’s largest motorcycle market of India.
I feel that my rugby experiences are proving useful in terms of adapting to­changing environments, communication skills, stamina, teamwork, and otherareas. Under our goal of creating more Yamaha fans, I’m conducting a variety ofmarketing activities as a team with YMIS employees, and I’m glad the first challenge of my second career is here in India.

Yoshinori Sogabe
Yamaha Motor
India Sales Pvt. Ltd. (YMIS)Yamaha Motor Co., Ltd. Integrated Report 202051

Corporate Governance

From the Chairman of the Board of Directors

Strengthening Corporate Governance
Under our corporate mission to be a Kando Creating Company, Yamaha Motor must continue to take on thechallenge of creating Kando that surpasses customer expectations, and as it forms the basis for achieving thatmission, we have promoted the strengthening of our corporate governance.
With the goal of incorporating objective opinions from outside the Company as well as knowledge andexpertise we may sometimes lack internally, Yamaha Motor raised the proportion of outside directors on the
Board of Directors. In 2019 and 2020, respectively, we welcomed as outside directors, Yuko Tashiro, a corporate manager with a wealth of experience in global business and who possesses considerable knowledge offinance, marketing, and more, and Tetsuji Ohashi, a corporate manager with extensive knowledge of mattersthat include technology and manufacturing as well as digital transformation. Today, the Board consists of four
independent outside directors and seven internal directors, putting the proportion of independent outside
directors on the Board at over one-third. We have thereby struck a fine balance in terms of the experience andspecialties of said directors, as clearly indicated by our skill map.
Our free and open-minded corporate culture is also reflected in meetings of the Board of Directors. In fiscal
2019, we conducted lively discussions regarding 129 proposals, of which roughly 61% were made by directors and Audit & Supervisory Board members, approximately 26% by executive officers, and some 13% byother managers. During these discussions, opinions were exchanged on 551 issues, with the majority of thesecoming from outside directors and outside Audit & Supervisory Board members. In addition to pointing out
issues to the Board of Directors from a third-party standpoint, we receive the proactive opinions of our outside
officers from the perspective of their individual specialties. Thus, I believe that they are fully performing boththeir offensive and defensive roles.
Furthermore, the Executive Personnel Committee, which is comprised of four outside directors and three
representative directors, is fulfilling its advisory role in relation to nominations and remuneration, and implemented a new executive remuneration system in fiscal 2019. Moreover, the committee is focusing on initiatives to ensure that profits are shared with the Company’s shareholders over the medium to long term,
including taking part in the selection and training of future management-level human resources.

Yamaha Motor aims to further
enhance its corporate governancein order to respond to major societal
changes and continue to be a­company that creates new value.

Corporate Governance to Go Even Higher
Creating Opportunities and Human Resources to Energize Our Value-Creation Process
I want to further energize Yamaha Motor’s value-creation process in order for the Company to achieve sustainable growth.
I believe that opportunities and human resources are the Company’s platform for creating value, and theBoard of Directors is also placing importance on nurturing global talents that embody the Yamaha brand. With
that in mind, we are making further additions to the management training program we implement for globally
selected candidates as well as providing to those chosen for future company management the opportunities togain work experience in multiple fields, while stationed overseas, and as presidents of our subsidiaries in order tofoster the sense and sensibility for management, business execution capabilities, and leadership skills. Furthermore,
we are advancing the promotion of non-Japanese management-level human resources, with the number of
non-Japanese executive officers increased from two to five in 2020.
In addition, we established the Global Execution Transformation (GET) in 2020 seeking to create aframework to enable cross-functional business execution on a global scale from anywhere in the world. The
executive officers in charge of each corporate function and globally capable human resources with high specialist expertise will be jointly responsible for promoting global activities related to management and business
functions, such as standardizing and enhancing management methods, advancing issues, and cultivating
human resources.

Further Developing Our Corporate GovernanceIn our daily analysis of market data in order to address the global COVID-19 pandemic, we are beginning to see
new and unprecedented market developments. The values of customers and of society as a whole are starting tochange rapidly, and this diversification is expected to further pick up speed going forward.
In particular, we are seeing greater calls for the digitalization of work styles, operations, and marketing, as wellas the personalization and “smartification” of mobility. Yamaha Motor will strive to develop new forms of mobility while stepping up its digital transformation initiatives more than ever before. We also expect interest in andawareness of sustainability—headed by terms like ESG and the SDGs—to rise.
To respond to such major societal changes and grow as a company that continues to create new value, it isimperative that we establish management systems that spur innovation and improve sustainability. To that end,
Yamaha Motor will aim to further enhance our corporate governance while continuing to prize our corporate
culture of taking on challenges to create Kando by fusing cutting-edge technologies with human sensitivities.

Chairman and
Representative Director

Hiroyuki Yanagi

52

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202053

Corporate GovernanceDialogue between Outside Directors

Board meeting instead of voting on proposals right away. ­As a result, I believe Yamaha Motor’s corporate governanceis steadily moving forward in a positive direction.
Tashiro Just recently, all the outside directors were given theopportunity to gather together and personally make recommendations directly to President Hidaka on the appropriate role of
the Board of Directors. You had some rather harsh words to say.

Kamigama I may have been overly harsh. However, when I
served as president and representative director of TDK
Corporation, I also received forthright opinions from outside
directors and found it very valuable to hear recommendations
from an outside perspective because they were things that
we would not have realized on our own. For that reason, I
will continue to speak up without hesitation and I ask thatyou also offer the Board of Directors your candid feedback.

The Overall Goal and Direction of Corporate Governance
I would like to discuss some areas I want theCompany to focus on going forward. Yamaha Motor offers
an extremely wide range of products, not just motorcycles
and marine products. Moreover, with bases in over 100
countries globally, its areas of operation are also wide-­
ranging, and this makes it a challenge to run the Company
from a corporate governance standpoint. The recent global
COVID-19 pandemic is a case in point. As different countries
and regions face different circumstances, the measures thatneed to be taken in response to this single event differ
accordingly by country and region. Therefore, I think it’s vitalto create an environment that allows management toquickly get information, gauge the situation, and promptly
make decisions on urgent matters at Board meetings. As
things proceed, I would like the Company to gear more of
its efforts toward establishing such a structure.
TashiroTakehiro Kamigama

Yuko Tashiro

Outside Director

Outside Director

We will further develop corporate governance so that
we can continue to be a “Kando Creating Company.”
Outside directors Takehiro Kamigama and Yuko Tashiro discussed their respective assessments of Yamaha Motor’s­corporate governance, its overall goals and direction, and their expectations of the Company.

An Assessment of Yamaha Motor’s Corporate GovernanceKamigama About a year and a half has passed since you

became an outside director. What was your initial impressionof Yamaha Motor’s corporate governance at the time?
Tashiro When I joined a Yamaha Motor Board meeting forthe first time, I was quite surprised at how outside directors,
including you, proactively and frankly voiced their opinions
on each proposal. I have served as an outside director atother companies, but it’s rare for discussions to get as
heated as they do at Yamaha Motor, so I had the impressionthat its Board of Directors functions very effectively.

Kamigama I became an outside director a year before you did,around the time Chairman Yanagi’s role became devoted tosupervision. I believe that the move toward livelier discussions under his strong leadership may be what created thecurrent atmosphere at Board meetings. It’s conducive tooutside directors candidly speaking their mind and the54

Yamaha Motor Co., Ltd. Integrated Report 2020e­ xecutive side responds to that with sincerity. I feel that
Yamaha Motor’s Board meetings are occasions for reallyopen discussions.
Tashiro I agree. When we outside directors advise caution or
point out a possible flaw in a proposal, the executive officers
respond in a highly flexible manner, offering to reexamine
the proposal or even withdraw it in some cases. I feel thisstyle or culture of discussion is still uncommon for a Japanesecompany. In a society where Board meetings are often held
simply to vote on what has already been decided, it’s admirable that there is a process at Yamaha to repeatedly holdthese kinds of discussions.

Kamigama The Board of Directors operates in a manner thatconveys its intent to actively incorporate our input and­opinions as much as possible, such as notifying outside
directors in advance of proposals to be voted on at the next

Kamigama I feel the same way. I think the most importantfactor in effective corporate governance is establishing a
structure for providing to management all manner of information influencing the operation of the Company.
Furthermore, if an event is urgent, it should be put before
the Board of Directors at once. And even if a case does not
require urgency, if there is the slightest possibility that an
event may drastically affect the Company in the future—such as a compliance-related matter—we outside directors
should also be notified beforehand and the matter in question discussed at a Board meeting. Doing so will help prevent impacts from becoming significant.

Tashiro Information is indispensable for not only improving
the quality of discussions at Board meeting but also formaking appropriate decisions. The more drastically the external environment changes, the more crucial communication
channels and a structure for gathering information fromaround the world become.

Kamigama We are both members of the Executive Personnel

Committee, so I would like to hear your thoughts on its role
as a committee member. I think that the remuneration
system for executives as well as the program for training
successors are being developed with good reasoning andtransparency, and both are at a level worthy of praise.
Indeed. The remuneration system incorporates a
results-oriented approach while the successor training program has been systematically designed with aspects thatfacilitate the input of external viewpoints, such as outside
directors also getting the opportunity to interview executive
officer candidates. However, there are no female or nonJapanese members among the current internal directors andonly a few among the incumbent executive officers. WhileI feel that this remains an issue, there is both female andnon-Japanese representation among the executive officer
candidates, so I believe that the Company is moving in agood direction. With an overseas sales ratio of approximately 90%, the promotion of non-Japanese people issurely a necessity given that overseas operations account formost of the Company’s business. The Company is also
making concerted efforts toward systems and structures forfostering the advancement of women, including the establishment of shorter working hours and childcare facilities.
However, it’s important to be aware that the creation offrameworks alone is not a corporate goal. I have always feltthat if we are not conscious of the likely advantages to begained through the active role of women, such as anincrease in sales, a reduction in costs, and the bringing forthof new ideas, we will not resolve this issue.
TashiroKamigama With Japanese manufacturers in general, not just at

Yamaha Motor, there has been little progress in the ­promotionof women to executive and management ­positions. Yet if welook overseas, we can see women are actively promoted to

Yamaha Motor Co., Ltd. Integrated Report 202055

Corporate GovernanceDialogue between Outside Directors

positions where they leverage their talents. In Singapore, forexample, almost all of those in charge of procurement are
women. Incorporating this kind of perspective is key because
if simply increasing the number of executive and management positions held by women becomes the goal, it does
not necessarily lead to positive outcomes in many cases.
Tashiro The same can be said for the promotion of nonJapanese employees. In a context where most of Yamaha
Motor’s customers are not Japanese, there are various
effects that we can expect through the promotion of nonJapanese people. We should discuss such topics more often,
including at meetings of the Executive Personnel Committee.

Our Expectations of Yamaha Motor
Kamigama Lastly, I would like to discuss our expectations of

The fact that Yamaha Motor isa global company makes it
even more important to establish aworldwide communication networkthat responds quickly and in a
multifaceted manner to dramaticchanges in the business environment.

Yamaha Motor without being confined to the corporate
governance sphere. In terms of the duties required of outside directors, the supervisory role comes first and foremost,but I do want the Company to grow, and for that to happen
I sincerely want to see new, uniquely Yamaha products
developed. My background is in engineering and I have, infact, been making recommendations regarding Yamaha
Motor’s technological initiatives and been given the opportunity to exchange opinions directly with the general managers of several technical divisions. I would like to see anincrease in opportunities to communicate not only withupper management but also with others in management
positions and frontline employees, and I would be delighted
if the Company could leverage my experience in the development of a new product.
Tashiro The global COVID-19 pandemic is likely to fundamentally change society going forward and that may bring
forth dire business conditions for many companies.
Nevertheless, such conditions also provide the chance tocreate something new. The demand for unmanned technologies and automation is expected to grow even more,and I believe that new forms of leisure, recreation, andtransportation unlike any before are certain to emerge. If
Yamaha Motor can quickly gather information on what
people really want and what kind of products they are looking for, I know that it is capable of turning that information
into something tangible and innovative. For that reason, as
I stated earlier, the creation of a global communication network will become even more important.

56

Yamaha Motor Co., Ltd. Integrated Report 2020

Kamigama Once the COVID-19 pandemic reaches some kind of
conclusion, the post-COVID-19 world so to speak, one can
expect Yamaha Motor’s customer base to change significantly and I’m looking at the possibilities for developing a
new customer base from here onward. For example, consumers who had yet to show even the slightest interest in
marine leisure may begin turning their attention to marine
products. The Company must conduct marketing researchon potential developments that include this kind of scenario
and tailor a suitable strategy. If it does so, the Company will
surely discover a new and different approach. In terms of
unmanned technologies and automation, robotics is likely to
become increasingly vital so there will be a wealth of business opportunities for Yamaha Motor. Also, we obviously
must anticipate the societal changes that the technologicaladvances in AI, IoT, and the like will bring about. In thiscontext, I hope that the Company will take charge and pushforward in order to create products unique to Yamaha andones that astound the world. I would like the Company tomake products that receive acclaim from people across theglobe, reaffirming their high regard for the Yamaha brand.

I agree. Yamaha Motor has some amazing technologies and plenty of potential to grow significantly in this eraof dramatic change. Nevertheless, the Company will likely
Tashiroencounter difficulties when it attempts to move into a newmarket instead of an existing one if it’s done solely with its
own personnel. To make a breakthrough, I think it would be
worth Yamaha Motor taking on the challenge of approaching matters from the perspective of those with completely
different ideas. For example, having non-Japanese people
take part in important investment decisions or seeking theopinions of individuals from markets that Yamaha Motor has
not previously targeted. The Company has carried out ample
research on existing markets and I am well aware of the factthat it has initiated various measures. However, the breakthrough I speak of must incorporate outside perspectives.
Outside directors are one way to provide these perspectives,
so I personally intend to offer the views of an outsider andactively voice my insights.
Kamigama It was clear during the formulation process for

the Long-Term Vision and the current Medium-Term
Management Plan that the Company is really striving to
break out of its shell. I think that we outside directors are agroup for supporting and facilitating those efforts, so let’s
continue to work hard so that Yamaha Motor can makefurther progress as a “Kando Creating Company.”

I would like the Company to­continue providing people
around the world with products
only Yamaha Motor can create.

Yamaha Motor Co., Ltd. Integrated Report 202057

Corporate GovernanceDirectors and Audit & Supervisory Board Members (As of April 1, 2020)

Directors

Chairman and Representative
Director

April 1978:		
Joined the Company
March 2009:	Senior Executive Officer, Chief General Manager of
Manufacturing Center
November 2009:	Senior Executive Officer, Senior General Manager
of MC Business Section, MC Business Operations
March 2010:	President, Chief Executive Officer andRepresentative Director
June 2011:		Outside Director of Yamaha Corporation
January 2012:	President, Chief Executive Officer andRepresentative Director, Chief General Manager of
MC Business Operations
January 2015:	President, Chief Executive Officer andRepresentative Director
January 2018:	Chairman and Representative Director (to present)
March 2019:
Outside Director of AGC Inc. (to present)
March 2019:	Outside Director of Kirin Holdings Company,
Limited (to present)

Hiroyuki Yanagi

April 1987:		Joined the Company
July 2010:		Vice President of Yamaha Motor Corporation,
U.S.A.
March 2017:	Senior Executive Officer and Director, Executive
General Manager of Corporate Planning &Finance Center
January 2018:	President, Chief Executive Officer andRepresentative Director (to present)
June 2018:		Outside Director of Yamaha Corporation(to present)

President, Chief Executive
Officer andRepresentative Director

Yoshihiro Hidaka

April 1982:		Joined the Company
April 2003:		Director of Yamaha Motor da Amazonia Ltda.
March 2015:	Senior Executive Officer, Chief General Manager of
Manufacturing Center
March 2017:	Senior Executive Officer and Director, Chief
General Manager of Manufacturing Center(to present)
January 2018:	Senior Executive Officer and Director
March 2019:	Managing Executive Officer and Director(to present)

Director
Managing Executive Officer

Director
Senior Executive Officer

Katsuhito Yamaji

Makoto Shimamoto

April 1981:		Joined Nippon Gakki Co., Ltd.
(currently Yamaha Corporation)
October 2005:	General Manager of PA/DMI Division of
Yamaha Corporation
June 2006:		Executive Officer of Yamaha Corporation
June 2009:		Director & Executive Officer of Yamaha
Corporation
April 2010:		President of Yamaha Corporation of America
June 2010:		Senior Executive Officer of Yamaha Corporation
June 2013:		President and Representative Director of Yamaha
Corporation
March 2014:	Outside Director (to present)
June 2017:		Director, President and Representative Executive
Officer of Yamaha Corporation (to present)

Director
Managing Executive Officer

Katsuaki Watanabe

Toshizumi Kato

April 1986:		Joined the Company
January 2015:	Director and President of Yamaha Motor
Corporation, U.S.A.
March 2018:	Senior Executive Officer and Director, Chief
General Manager of Corporate Planning & FinanceCenter (to present)

Director
Senior Executive Officer

Tatsumi Okawa

April 1981:		Joined Tokyo Denki Kagaku Kogyo K.K.
(currently TDK Corporation)
June 2002:		Corporate Officer of TDK Corporation
June 2003:		Senior Vice President of TDK Corporation
June 2004:		Director & Executive Vice President of TDK
Corporation
June 2006:		President & Representative Director of
TDK Corporation
June 2016:		Chairman & Representative Director of
TDK Corporation
June 2017:		Outside Director of OMRON Corporation(to present)
March 2018:	Outside Director (to present)
June 2018:		
Outside Director of SoftBank Corp. (to present)
June 2018:		Mission Executive of TDK Corporation (to present)

Outside Director

Outside Director

Takuya Nakata

Takehiro Kamigama

Yuko Tashiro

June 1986:		Joined KPMG LLPJuly 1995:		Partner of KPMG LLP
November 2000:	Sourcing Leader of GE Corporate Japan ofGeneral Electric International Inc.
July 2003:		Chief Financial Officer of
PHOENIX RESORT CO., LTD.
April 2005:		Director, Chief Operating Officer and Chief
Financial Officer of Aon Holdings Japan, Ltd.
April 2010:		Representative Director of TS Associates, Ltd.
June 2012:		Outside Director of Accordia Golf co., Ltd.
March 2016:	Auditor (External) of McDonald’s Holdings
Company (Japan), Ltd. (to present)
June 2016:		Representative Director, President and Chief
Executive Officer of Accordia Golf co., Ltd.
January 2018:	Director and Chairman of the Board of
Accordia Golf co., Ltd.
April 2018:		Representative Director, Chairman of the Board
and President, CEO of Accordia Golf co., Ltd.
(to present)
March 2019:	Outside Director of the Company (to present)
Chairperson, CEO and Representative Director ofNEXT GOLF MANAGEMENT CORPORATION(to present)

April 1977:		
January 2004:		
April 2007:		
April 2008:		
June 2009:		
		
April 2012:		
		
April 2013:		
		
April 2019:						March 2020:

Joined Komatsu Ltd.
President and Chief Operating Officer (COO) of 		
Komatsu America Corp.
Excecutive Officer of Komatsu Ltd.
Senior Executive Officer of Komatsu Ltd.
Director and Senior Executive Officer ofKomatsu Ltd.
Director and Senior Executive Officer ofKomatsu Ltd.
President and Representative Director,
and CEO of Komatsu Ltd.
Chairperson of the Board andRepresentative Director of Komatsu Ltd.
(to present)
Outside Director of the Company (to present)

Outside Director

Tetsuji Ohashi

April 1982:		Joined the Company
February 2010:	General Manager of Human Resources
Development Division, Human Resources &General Affairs Section
September 2014:	Chief General Manager in charge of planning,
Audit & Supervisory Board Members’ Office
March 2015:	Audit & Supervisory Board Member (to present)

November 1985:	Joined the Company
February 2008:	General Manager ofLegal & Intellectual Property Division
April 2011:		Representative Director and President of
Yamaha Motor Espana S.A.
May 2012:		Vice President of Yamaha Motor Europe N.V.
March 2017:	Senior Executive Officer
March 2019:	Audit & Supervisory Board Member (to present)

Audit & Supervisory Board
Member (Full-time)

Audit & Supervisory Board
Member (Full-time)

Audit & Supervisory Board
Member (Outside)

Kenji Hironaga

Junzo Saito

Masahiko Ikaga

Yamaha Motor Co., Ltd. Integrated Report 2020

June 1986:		Joined the Company
January 2011:	Director and President of Yamaha Motor
Corporation, U.S.A.
March 2012:	Senior Executive Officer
March 2014:	Senior Executive Officer and Director
January 2016:	Senior Executive Officer and Director, Chief
General Manager of Vehicle & Solution Business
Operations
March 2016:	Managing Executive Officer and Director,
Chief General Manager of Vehicle & Solution
Business Operations
January 2018:	Managing Executive Officer and Director(to present)
July 2019:		Chairman & Representative Director of Yamaha
Motor Robotics Holdings Co., Ltd. (to present)

Executive Vice President andRepresentative Director

Outside Director

Audit & Supervisory Board Members

58

April 1983:		Joined the Company
March 2015:	Senior Executive Officer, Chief General Manager of
PF Model Unit and Senior General Manager of PF
Model Development Section, PF Model Unit
January 2017:	Senior Executive Officer, Chief General Manager ofTechnology Center and Chief General Manager of
PF Model Unit
March 2017:	Senior Executive Officer and Director, Chief
General Manager of Technology Center and Chief
General Manager of PF Model Unit
January 2018:	Senior Executive Officer and Director, Chief General
Manager of Mobility Technology Center(to present)
January 2020:	Chief General Manager of Mobility Technology
Center and Chief General Manager of Advanced
Technology Center of the Company (to present)

April 1982:		Joined the Company
March 2011:	Senior Executive Officer and Chief General
Manager of Manufacturing Center
April 2013:		Senior Executive Officer, Executive General
Manager of 1st Business Unit, MC Business
Operations and Chief General Manager of
Manufacturing Center
January 2015:	Senior Executive Officer and Director, Chief
General Manager of MC Business Operations andExecutive General Manager of 1st Business Unit,
MC Business Operations
March 2016:	Managing Executive Officer and Director, Chief
General Manager of MC Business Operations
January 2018:	Executive Vice President and Representative
Director (to present)

October 1979:	Joined Tohmatsu Awoki & Co.
(currently Deloitte Touche Tohmatsu LLC)
March 1988:	Registered as a certified public accountant
May 1988:		Director of Tohmatsu Touche Ross Consulting Co.,
Ltd. (currently ABeam Consulting Ltd.)May 1990:		Partner of Tohmatsu Awoki & Co.
April 1993:		Director of Tohmatsu Consulting Co., Ltd.
(currently Deloitte Tohmatsu Consulting LLC)
March 2000:	Representative Director and President of Tohmatsu
Consulting Co., Ltd.
October 2010:	Chairman and Director of
Tohmatsu Consulting Co., Ltd.
November 2013:	CSO of Deloitte Touche Tohmatsu LLC
April 2016:		Established Masahiko Ikaga Certified Public
Accounting Office
May 2016:		Representative Director of PrajnaLink Co., Ltd.
(to present)
June 2016:		External Audit & Supervisory Board Member ofMorinaga Milk Industry Co., Ltd. (to present)
March 2017:	Outside Audit & Supervisory Board Member(to present)
June 2017:		Outside Director of RYOBI LIMITED (to present)

Audit & Supervisory Board
Member (Outside)

Masatake Yone

April 1981:		Registered as an Attorney
March 1987:	Registered as a New York State Attorney
July 1987:		Joined Mori Sogo
(currently Mori Hamada & Matsumoto)January 1989:	Partner Attorney of Mori Hamada &Matsumoto (to present)
April 2000:		Lecturer at Graduate School of International
Corporate Strategy, Hitotsubashi University
March 2008:	Outside Director of GCA Savvian Group
Corporation (currently GCA Corporation)
April 2011:		Vice President of Daini Tokyo Bar Association
June 2011:		Outside Corporate Auditor of BANDAI NAMCO
Games Inc. (currently BANDAI NAMCOEntertainment Inc.) (to present)
June 2013:		Audit & Supervisory Board Member (External) of
Terumo Corporation
June 2015:		Independent Director (Audit & Supervisory
Committee Member) of Terumo Corporation(to present)
March 2016:	Outside Director (Audit & Supervisory Committee
Member) of GCA Corporation (to present)
March 2019:	Outside Audit & Supervisory Board Member(to present)
December 2019:	Outside Director of Skymark Airlines Inc. (to present)

Yamaha Motor Co., Ltd. Integrated Report 202059

Corporate GovernanceDirectors and Audit & Supervisory Board Members (As of April 1, 2020)

Executive Officers

Corporate Governance

As a “Kando Creating Company,” our corporate mission is to offer new excitement and a more fulfilling life for people allover the world. To achieve this mission, Yamaha Motor aims to enhance corporate value through sustained growth
attained via its medium- and long-term strategies and measures. To this end, the Company has put into place systems andframeworks that enable rapid decision-making and the proper supervision and monitoring of business execution.

President and Chief Executive Officer

Executive Vice PresidentManaging Executive Officers

Yoshihiro Hidaka

Katsuaki Watanabe

Toshizumi Kato

Katsuhito Yamaji

Basic Views on Corporate Governance 
Senior Executive Officers

Makoto Shimamoto

Tatsumi Okawa

Kazuhiro Kuwata

Hirofumi Usui

Chief General Manager of Mobility
Technology Center and Chief General
Manager of Advanced Technology Center

Chief General Manager ofCorporate Planning &Finance Center

President of Yamaha Motor
Corporation, U.S.A.

Chief General Manager ofMarine Business Operations

Heiji Maruyama

Satohiko Matsuyama

Minoru Morimoto

Eric de Seynes

Chief General Manager of Powertrain Unit, Senior General Manager
of Powertrain Planning Section, Powertrain Unit, andChief General Manager in charge of Automotive Development andMobility Planning Promotion, Mobility Technology Center

Chief General Manager of
Manufacturing Center

President of PT. Yamaha Indonesia
Motor Manufacturing

President of Yamaha Motor
Europe N.V.

To ensure the implementation of the Company’s growth strategies forthe future, Yamaha Motor’s Board of Directors establishes an environment that supports management’s appropriate risk-taking and decisivedecision-making activities, and multilaterally understands and appropriately oversees issues and risks associated with the implementation of theCompany’s management strategies from the viewpoint of fulfilling
responsibilities to various stakeholders including shareholders
and investors.

This structure is designed to implement speedy and decisive decisionmaking, and appropriate, transparent, and fair supervision and monitoring as the Company’s corporate governance. Accordingly, we formulate
corporate governance guidelines and put them into practice in an appropriate manner.

For more details, please see the Corporate Governance Guidelines.
https://global.yamaha-motor.com/ir/governance/pdf/corporate_governance_guidelines-e.pdf

History of Strengthening the Corporate Governance System
2000

2001

2007

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Introduction of Executive Personnel Committee (Nomination / Remuneration Committee)
Operation of Board of Directors + Management Discussion meeting

Executive Officers

Akihiro Nagaya

Yasuo Tanaka

Motofumi Shitara

Dyonisius Beti

Toshihiro Nozue

Chief General Manager ofCreative Center andGeneral Manager ofBrand Marketing Division,
Creative Center

Chief General Manager of
CS Center, Deputy Chief General
Manager of Quality AssuranceCenter, and Senior General
Manager of Spare Parts Section,
CS Center

Managing Director of
Yamaha Motor India Pvt. Ltd.,Managing Director of India
Yamaha Motor Pvt. Ltd., andManaging Director of
Yamaha Motor India Sales Pvt. Ltd.

COO of PT. Yamaha
Indonesia Motor
Manufacturing

Senior General Manager ofMarine Engine Section,
Marine Business Operations

Satoshi Hirose

Hiroyuki Ota

Itaru Otani

Takeo Noda

Toshiaki Ibata

Chief General Manager of
Quality Assurance Centerand Deputy Chief General
Manager of CS Center

Chief General Manager of
Solution Business Operations

Chief General Manager of
Human Resources & General
Affairs Center

Deputy Chief General
Manager of Corporate
Planning & Finance Center

Senior General Manager ofBoat Section, Marine
Business Operations

Toyoshi Nishida

Takuya Kinoshita

Norio Yamada

Tatsuya Masuda

Kenichi Muraki

Chief General Manager of
PF Model Unit andSenior General Manager ofMotor Sports Section, PF Model Unit

Chief General Manager ofMotorcycle Business Operations

Chief General Manager of
IT Center

Chief General Manager ofProcurement Center

Chief General Manager of
Manufacturing Technology
CenterImprovementof operating
structure

Establishment of Corporate Governance Guidelines
Implementation of the Board evaluation
Abolition of takeover defense measures
Introduction of Executive Officer system
Appointment of Outside Directors
Delegation agreement with Executive Officers

Kotaro Ueda

Eishin Chihana

Deputy Chief General Manager of
Manufacturing and Production
Engineering Center and Senior
General Manager of
Manufacturing Section,
Manufacturing and Production
Engineering Center

Senior General Manager of 3S Advanced Countries Section,
Motorcycle Business Operations, Senior General Manager of
3S Southeast & East Asia Section, Motorcycle Business Operations,and Managing Director of Yamaha Motor Asia Pte. Ltd.

Appointment of female Directors and Audit & Supervisory Board Members

Executive
structure

Appointment of non-Japanese Executive Officers
Separation of
Chairman of the Boardof Directors and Chief
Executive Officer (CEO)

Number of
Directors

11

11

10

10

12

11

11

13

11

11

Number ofInternal Directors

7

8

7

7

9

8

8

10

7

7

Number of
OutsideDirectors

4

3

3

3

3

3

3

4

4

4

Independent
OutsideDirectors

3

2

2

2

2

2

2

3

4

4

Of which,female Directors

1

1

1

0

0

0

0

0

0

1

Integration of stock options into stock compensation plan

Executive
remuneration
systemOverall revision of the system(compensation further linked
to performance and forlong-term incentives)

Deputy Executive Officers

Ben Speciale

Jeffrey Young

Michael Chrzanowski

Senior Vice President of
Yamaha Motor Corporation, U.S.A.,
and President of
U.S. Marine Business Unit

President of
Yamaha Motor FinanceCorporation, U.S.A.

President of Yamaha Motor
Manufacturing Corporationof America

Taking on the renewed challenge ofachieving net sales of ¥2 trillion
AM: Automotive
CS: Customer Service
ME: Marine Engine
PF: Platform
MC: Motorcycle
IT: Information Technology

60

Yamaha Motor Co., Ltd. Integrated Report 2020

Medium-Term
Management
Plan

Stabilization of a profitablestructure (V-shaped recovery
in results)

Toward sustainable growth(expansion of business scale andenhancement of profitability)

A unique company that continues
to achieve dynamic milestones(management emphasizing ROE
and cash flow)

Yamaha Motor Co., Ltd. Integrated Report 202061

Corporate GovernanceCorporate Governance Structure 
Corporate Governance System Overview

Yamaha Motor supplies various kinds of products and services to markets
around the world, including personal mobility solutions, marine products,
industrial robots, vehicle engines, and unmanned helicopters. Overseas
sales account for approximately 90% of the Company’s consolidated net
sales. Starting with the principal concept of developing and producing
locally where the products are consumed, we engage in development,
procurement, production, sales, and other activities on the global stage.
To sustainably advance our business activities, we believe it is effective
to structure a corporate governance system consisting of the Boardof Directors, made up of Internal Directors who are familiar with theCompany’s customer characteristics, products, business operations, andfunctions, and Outside Directors who have a wealth of knowledge inglobal corporate management, as well as the Audit & Supervisory Board
whose members include Outside Audit & Supervisory Board Memberswith professional knowledge in areas including accounting, legal affairs,
and management administration. Under this corporate governancesystem, Executive Officers are appointed to execute operational duties ina timely manner, and the Board of Directors delegates matters related tothe execution of business operations to the Executive Officers.

Professional Qualifications and Experience of Directors and Auditors

Company with Audit & Supervisory
Board

Organizational design
Number of Directors(number of Outside Directors)

11 (4)

Number of Audit & Supervisory
Board Members(number of Outside Audit &Supervisory Board Members)

4 (2)Directors’ terms of office

One year

Employment of
Executive Officer system

Yes

Optional committees ofBoard of Directors

Executive Personnel Committee

AuditorName

Directors

General Meeting of Shareholders
Appointment /Dismissal

Appointment /Dismissal

Seeking advice /Making recommendations

Board of Directors
11 Directors(including
4 Outside Directors)

Executive Personnel
Committee

Appointment /Dismissal
Supervision

Audit

Audit & Supervisory Board Members
Audit & Supervisory Board
4 Audit & Supervisory Board Members(including 2 Outside Audit & Supervisory
Board Members)

Audit

Reporting businessexecution situations

Coordination

62

Yamaha Motor Co., Ltd. Integrated Report 2020

Attendance at meetings ofBoard of Directors andAudit & Supervisory Board
during FY2019—

Board of Directors:
13 / 13

Yoshihiro Hidaka

Human Resources &General Affairs /Creative / Marine

Board of Directors:
13 / 13

Katsuaki Watanabe

Quality Assurance /Customer Service /Motorcycles / Market
Development /Automotive

Board of Directors:
13 / 13

Toshizumi Kato

Solution / Power
Products / Alliance
Strategy

Board of Directors:
13 / 13

Katsuhito Yamaji

Manufacturing /Manufacturing
Technology /Procurement /Powertrain

Board of Directors:
13 / 13

Vehicle Development

Board of Directors:
13 / 13

Makoto Shimamoto

External Auditor

OutsideIndependent
Takuya Nakata—

Board of Directors:
12 / 13

OutsideIndependent
Takehiro Kamigama—

Board of Directors:
12 / 13

OutsideIndependent
Yuko Tashiro—

Outside (New)
Independent
Tetsuji Ohashi—

Appointed
in April 2020

Kenji Hironaga—

Board of Directors:
13 / 13
Audit & Supervisory
Board:
12 / 12Junzo Saito—

Board of Directors:
10 / 10
Audit & Supervisory
Board:
9/9—

Board of Directors:
12 / 13
Audit & Supervisory
Board:
12 / 12—

Board of Directors:
10 / 10
Audit & Supervisory
Board:
9/9

Coordination

Accounting audit

Coordination

Integrated Auditing DivisionInternal audit

Audit & Supervisory Board Members

Business sectors, Functional sectors, Corporate sectors, and Subsidiaries

GlobalExperience

Board of Directors:
13 / 13

Instruction / Report

Instruction / Report

Human
Resources /Legal / Risk
Labor /
Management
Personnel
Development

IT / Digital

Seeking advice /Making recommendations

Sustainability Committee

Accounting /IT / Digital
Finance / M&A Technology

Tatsumi Okawa

President, Chief Executive Officer and Representative Director

Management Committee

Sales /
MarketingAppointment /Dismissal

Business Execution

Seeking advice /Making recommendations

Corporate Manufacturing /Management / Technology /Expertise
R&D

Hiroyuki Yanagi

Ernst & Young ShinNihon LLC

Corporate Governance System (As of March 26, 2020)

Area ofresponsibility

OutsideIndependent
Masahiko Ikaga

OutsideIndependent
Masatake Yone

Board of Directors:
8 / 10(After appointment on
March 27, 2019)

Yamaha Motor Co., Ltd. Integrated Report 202063Corporate GovernanceDirectors and the Board of Directors 
The Board of Directors consists of 11 Directors (including four Outside
Directors). In principle, the Board of Directors meets monthly, and additionally from time to time as necessary. The Chairman of the Board of
Directors is not in charge of any specific field and not involved in business execution.
On the basis of fiduciary responsibilities to shareholders, Directors
collect adequate information, understand relevant laws and regulations
and other necessary rules, actively express opinions, discuss and makedecisions at Board of Directors’ meetings, Management Discussion

Executive Personnel Committee 
meetings, and other important meetings in order to obtain sufficientknowledge on viewpoints and standpoints of various stakeholders including shareholders, and to achieve sustainable growth and medium- tolong-term enhancement of corporate value. In fiscal 2019, Management
Discussion meetings were held seven times, and the Executive Discussion
meeting was held once.

Board Evaluation 
Pursuant to Yamaha Motor’s Corporate Governance Guidelines, theBoard of Directors analyzes and evaluates the effectiveness of roles andresponsibilities of the Board as a whole on a yearly basis.

The analysis and evaluation are carried out from the following perspectives and a summary of the results is appropriately disclosed.

Evaluation perspectives
1. Roles and responsibilities of Directors and the Board of Directors
2. Relationships between the Board of Directors and senior management(Executive Officers)
3. Organizational design and composition of the Board of Directors, etc.
4. Qualifications held and knowledge of Directors and the Board of
Directors
5. Deliberation at the meetings of the Board of Directors
6. Relationships and dialogue with shareholders
7. Dealing with stakeholders other than shareholders

Evaluation results
It was confirmed that the Board of Directors continued to proactively
hold effective discussions and implement creative initiatives to realize themedium- to long-term enhancement of corporate value and sustainablegrowth, and the effectiveness was sufficiently assured toward theachievement of the Long-Term Vision, with an eye on 2030 and theMedium-Term Management Plan from 2019.
In particular, it was highly evaluated that the comments made by
Outside Directors and Audit & Supervisory Board Members were fully
respected, a climate was fostered in which constructive discussion andexchange of opinions were carried out, and the roles of Directors and theBoard of Directors were clarified and shared. It was also confirmed that
key issues regarding Yamaha Motor’s management strategy have been
appropriately discussed.
It was confirmed that there was no significant difference in theeffectiveness of the Board of Directors between the prior Self-Evaluationand the Third-Party Evaluation.
We will continue to push ahead with improvement measures toaddress the issues highlighted based on the evaluation and implement
creative initiatives to further improve effectiveness by regularly involving
a third party in the evaluation process.

Evaluation process
The effectiveness of the Board of Directors was evaluated using thefollowing process with the Corporate Planning Division acting as thesecretariat.
• Self-Evaluation Survey by updated questionnaire, based on sevenevaluation perspectives regarding the aims of the Board of Directors
and past evaluation results.
• Conduct Board investigations, analysis of the Self-Evaluation Survey
responses, and interviews implemented by a third party.
• Analyze the Self-Evaluation and Third-Party Evaluation results, andconfirm the status of improvement, compared with the previous fiscal
year’s evaluation.
• Share the results of the evaluation of effectiveness and deliberate theissues to be addressed at the Board of Directors’ meetings based on the
results of the analysis.

Yamaha Motor has established an Executive Personnel Committee, whichis involved in nominations and remuneration, as a voluntary advisory
body of the Board of Directors, to improve transparency and validity inappointments and dismissals of executives and determining their remuneration, among other objectives. Matters deliberated upon at the
Executive Personnel Committee are reported to the Board of Directors.
In the role related to “nominations,” the committee deliberates upon
the appointments and dismissals of the Chief Executive Officer, Directors,
Audit & Supervisory Board Members and Executive Officers, as well as theselection of candidates for such senior management positions and theirdevelopment plans, while confirming future management strategies andpersonnel requirements for putting them into practice, among other things.
In the role related to “remuneration,” the committee deliberates uponand determines the evaluation standards and remuneration system for

the Chief Executive Officer, Directors and Executive Officers. The
Executive Personnel Committee also evaluates the performance of theCompany and individuals based on contributions to medium- to longterm corporate growth and business performance for the said fiscal year,
in order to deliberate upon the compensation linked to performance forsuch senior management within the limits of total remuneration resolved
at the General Meeting of Shareholders.
To ensure the transparency and effectiveness of the deliberation process, which is the purpose for establishing the committee, as well as toensure the validity of matters reported to the Board of Directors’ meetings, the majority of the members of the Executive Personnel Committee
consists of Outside Directors, and the meeting of the Executive Personnel
Committee is held more than six times a year, in principle.

Audit & Supervisory Board Members and the Audit & Supervisory Board 
The Audit & Supervisory Board Members are made up of two Standing
Audit & Supervisory Board Members and two Independent Outside Audit& Supervisory Board Members. In principle, the Audit & Supervisory Board
meets monthly, and additionally from time to time as necessary. On thebasis of fiduciary responsibilities to shareholders, Audit & Supervisory
Board Members and the Audit & Supervisory Board, as a body independent from the Board of Directors, request the Company and its subsidiaries to submit reports on their business activities in accordance with laws
and regulations, survey the status of business operations and property,
exercise rights in respect of appointing or dismissing an External Auditor
and audit compensation, attend meetings of the Board of Directors andother important meetings, and provide opinions as needed. Throughthese tasks, Audit & Supervisory Board Members and the Audit &Supervisory Board audit the legality and appropriateness of Directors’
execution of duties, internal control systems, and the performance andfinancial position of the Company and its subsidiaries. An Audit &Supervisory Board Members’ Office, with a dedicated staff of two people,
has been established to assist the Audit & Supervisory Board Memberswith their audit and supervisory operations.
Collaboration between Audit & Supervisory Board Members,
Outside Auditors, and Internal Audit Section
Audit & Supervisory Board Members (including Outside Audit & Supervisory
Board Members) work with the External Auditor to facilitate audits basedon appropriateness, and receive accounting audit reports in accordancewith laws and regulations. Through collaboration that includes the mutual
exchange of information as needed and related opinions with the internal
audit section, Audit & Supervisory Board Members receive reports about
internal audit plans and their outcomes, with the ultimate aim of improving
the effectiveness and efficiency of audits.

Independent Outside Directors and Outside Audit & Supervisory Board Members 
Yamaha Motor appoints Independent Outside Directors in accordancewith its “Standards for Selecting Independent Outside Officers,” which
are disclosed to the public.
Independent Outside Directors are expected to independently andobjectively oversee conflicts of interest between the Company’s management and shareholders from social perspectives and from the standpointsof various stakeholders including shareholders and investors. They arealso expected to actively provide the Company with advice on management policies and improvements.

Independent Outside Directors and Outside Audit & Supervisory Board
Members endeavor to understand a complete view of Yamaha Motor’sbusiness operations by inspecting the minutes and reference materials ofManagement Committee meetings and other important meetings, andby visiting its worldwide development, procurement, production andsales locations, and markets. They attend the Management Discussion
meeting held after the Board of Directors’ meetings on a regular basis,and the Executive Discussion meeting held more than once a year to
openly exchange opinions on the Company’s medium- to long-term
management strategies and important management matters.

Summary of “Standards for Selecting Independent Outside Officers”
I. Independent Outside Officers may not be:
1. Employees or former employees of the Company
2. Major shareholders
3. Individuals in a “major customer” relationship with our corporate group
4. Individuals from companies that have accepted a director from the Yamaha
Motor Group
5. Individuals with some other type of vested interest in the Group
6. Individuals who might have a conflict of interest with our generalshareholders
7. In office more than 8 years
Moreover, individuals who are second-degree relatives, or cohabiting
relatives, of any of those mentioned above in 1 through 5 may not
be officers.

64

Yamaha Motor Co., Ltd. Integrated Report 2020

II. Individuals, despite being applicable to any of 2 through 5 above, may beelected as independent outside officers of the Company if they, in view of theirpersonality and insight, are believed suitable as independent outside officers of
the Company on the condition that the individuals meet the requirements ofan outside director as required under the Companies Act, and that a public
disclosure is made to explain the reasons for electing them as independent
outside officers of the Company.

For the full text of the “Standards for Selecting Independent
Outside Officers,” please visit our website.
https://global.yamaha-motor.com/ir/governance/pdf/independent_en.pdf

Yamaha Motor Co., Ltd. Integrated Report 202065

Corporate Governance

Executive Officers and Management Committee, etc. 
The Company has 32 Executive Officers, of whom six serve concurrently
as Directors. A Management Committee, comprising nine Executive
Officers with specific posts, has been established to deliberate on mattersof business execution, speeding up the Company’s decision-making
process. In principle, the Management Committee meets at least
monthly, and additionally from time to time as necessary. In fiscal 2019,22 meetings of the Management Committee were held.
In addition, a Global Executive Committee has been established to

Sustainability Committee Yamaha Motor has established the Sustainability Committee, comprisingnine Executive Officers with specific posts, as an entity to deliberatemeasures related to risk management and compliance, as well as toaddress issues concerning sustainability. In principle, the Sustainability
Committee meets twice a year, and also holds additional meetings ifnecessary.

Remuneration System for Executives deliberate on important management policies and issues related to theGroup’s management. The Global Executive Committee includes theCompany’s Representative Director, all Executive Officers with specificposts, and senior local managers of major Group companies, and has 46
members, of whom 30 are Japanese and 16 are non-Japanese. In principle, the committee meets at least once annually, and additionally fromtime to time as necessary. In fiscal 2019, two meetings of the Global
Executive Committee were held.

Internal Auditing 
The Integrated Auditing Division, with 25 members and reporting directly
to the President and Chief Executive Officer, has been established as aninternal auditing sector to audit the appropriateness of operational
activities at the Company and its subsidiaries. In addition, internal audit
functions have been installed at major subsidiaries, working together
with the Company’s internal auditing sector to audit divisions andsubsidiaries.

Remuneration is to be comprised of basic compensation (fixed remuneration), compensation linked to performance, and share remuneration. The
proportions of basic compensation : compensation linked to p
­ erformance: share remuneration for the President and Representative Director is tobe set at roughly 50% : 30% : 20% of the reference amount. For other
Directors and Executive Officers, the amounts are to be determinedbearing in mind their duties and remuneration level, etc., with reference
to the President and Representative Director. As the role of Outside
Directors and Audit & Supervisory Board Members is to provide supervision and advice regarding management from an objective and independent perspective, they are only paid fixed basic compensation.
The Representative Director is to only be paid the whole-company
performance-based bonus component of the compensation linked toperformance. The compensation linked to performance of other Directors
and Executive Officers are to be comprised of a whole-company­performance-based bonus and an individual performance-based bonus.
Breakdown of Compensation Linked to Consolidated Performance

Compensation Linked to
Individual Performance

Compensation Linked toConsolidated Performance

Cross-Shareholdings 
Yamaha Motor’s development, procurement, production, and sales have
expanded globally. We believe that strengthening business relationships
with business partners and maintaining stable relationships with financial
institutions and other parties are necessary for achieving continuous
growth. In considering our business strategies, business relationships
with our business partners, and enhancement of our financial base,
we intend to hold shares under cross-shareholdings when it is deemednecessary and appropriate in order to enhance corporate value froma medium- to long-term perspective.
The Board of Directors annually examines each cross-shareholding todetermine whether the purpose of shareholdings is appropriate and if
benefits and risks associated with the shareholdings are commensuratewith capital costs, among others. The Board of Directors appropriately
discloses a summary of the results. In addition, Yamaha Motor upholds a
policy to reduce cross-shareholdings if, as an outcome of the examination, the shareholdings cannot be justified.
Based on this policy, in fiscal 2019 the Company decided to sell somecross-shareholdings based on an examination by the Board of Directorsof each cross-shareholding.

The total amount of the whole-company performance-based bonus of
Directors is to be payable up to 0.5% of the net income attributable toowners of parents of the previous fiscal year.
The individual performance-based bonus will be determined within
the scope of 0–2 times the reference amount specified for each position,
bearing in mind the extent of target achievement or the degree ofprogress, etc., for each evaluation indicators set in advance.
Share remuneration will be provided through issuing shares withrestriction on transfer once each year based on the reference amountspecified for each position.
In order to ensure the appropriateness as well as the transparency andfeasibility of the discussion process regarding items relating to executive
remuneration, determination will be made by the Board of Directors after
discussion and reporting by the Executive Personnel Committee, which
the Company has established voluntarily.

Shareholdings of Yamaha Corporation
Yamaha Motor was established by spinning off the motorcycle divisionfrom Nippon Gakki Co., Ltd. (currently Yamaha Corporation). Today, thetwo companies’ management is conducted separately, with both using
the same Yamaha brand. We are undertaking various measures in collaboration with Yamaha Corporation through the Joint Brand Committee
and under the Yamaha Brand Charter and Joint Brand Regulations. Bothcompanies appropriately monitor measures for mutual sustainablegrowth through shareholdings and dispatching Directors. We believe thatmaintaining and improving the shared value of the Yamaha brand bybuilding a monitoring and collaborating relationship with Yamaha
Corporation will contribute to the medium- to long-term enhancementof Yamaha Motor’s corporate value.

0–2x of base amount relative to achievement of and progress
toward predetermined indicators

Pool of funds (up to 0.5% of net income attributable to ownersof parent)
Net income attributable to owners of parent
x Preset percentage
x Evaluation coefficient based on ROA

Financial Evaluation

Non-Financial Evaluation

Takes into account year-on-yearcomparisons and degree of target
achievement for net sales, operating
income, and ROA in the division forwhich they are responsible

Takes into account degree of progress
on initiatives in the Medium-Term
Management Plan, grooming of
successors for executive officer andcandidates for senior management
positions and contributions to corporate value and brand value

0–2x (including adjustments based on other businessperformance metrics)

Ratio of financial and non-financial evaluation• Directors: 1 to 1 (Executive Officers: 1 to 1)
Ratio of compensation linked to consolidated performance and compensation linked to individual performance• Representative director: 1 to 0 • Directors: 2 to 1 (Executive Officers: 1 to 3)

Remuneration for Directors and Audit & Supervisory Board Members
Remuneration for Directors and Audit & Supervisory Board Members for fiscal 2019 is as follows:Compensation linked toperformance
Officer classification

Basic
compensation(¥ million)

Stock compensation

Directors’
bonuses

Individual
performancelinked

Stock compensation plan

Remuneration ofshares withrestriction ontransfer

Total

Directors (12)

341

215

20

12

101

691

 Of which, Outside Directors (5)

(52)

—

—

—

—

(52)

Audit & Supervisory Board
Members (6)

95

—

—

—

—

95

 Of which, Outside Audit &Supervisory Board Members (3)

(26)

—

—

—

—

(26)

Total

436

215

20

12

101

786

Notes: 1. The Company introduced a Director compensation system with the approval of the 84th Ordinary General Meeting of Shareholders, held on March 27, 2019.
Accordingly, in the fiscal year under review, basic compensation was based on the old system for January through March 2019, and then based on the new system
for April through December 2019. Regarding performance-linked compensation, the Company plans to pay bonuses linked to consolidated performance based on
the new system as compensation linked to consolidated performance in the fiscal year under review. As for compensation linked to individual performance, theCompany plans to pay compensation linked to individual performance based on the old system for the fiscal year under review. Share remuneration shall be paid
based on the old system for the portion from January to March 2019, and then the new system for the portion from April to December 2019.
2. The above figures include 1 Director and 2 Auditors who retired at the conclusion of the 84th Ordinary General Meeting of Shareholders, held on March 27, 2019.
3. In addition to the remuneration listed above, ¥52 million was paid as salaries to Directors who serve concurrently as employees.

66

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202067Corporate GovernanceRisk Management

The Yamaha Motor Group is working on risk management, crisis management, and business continuity as follows.
Risk Management Structure

Risk Management Structure 
Based on the Rules of Risk Management, the risk management structure
works toward the thorough reduction of risks on a Groupwide basis andis overseen by the Sustainability Committee and its subordinate council,
the Sustainability Promotion Meeting, which comprises the risk management supervisory section and divisions in charge of risk management.
The committee, chaired by the president and chief executive officer,
monitors risk on a Groupwide basis while also designating significant
risks at the Group level to be tackled as priorities and monitoring activities to address such risks.
Furthermore, the divisions in charge of risk management formulate
response policies and rules for the risks under their charge, promote
activities to address risks based on these response policies, etc., andmonitor activities at headquarters’ divisions and Group companies.

President and Chief Executive Officer
Seeking of advice

Making of recommendation

Sustainability Committee

Sustainability Promotion Meeting(a subordinate council of the Sustainability Committee)• Thorough implementation of policies• Management based on rules• Monitoring of activities• Reporting of important matters• Reporting of urgent matters• Consultation on individual issues

Headquarters’ divisions and Group companies

Risk Management Activity Cycle • Analysis of information frominside and outside the Company• Designation of significant
risks at the Group level• Assessment of risk
management ledger• Formulation of activity
policies and plans

Risk management activities are promoted through the repetition of thefollowing plan–do–check–act (PDCA) cycle. The Yamaha Motor Grouphas prepared a risk management ledger of all risks that need to be covered and works to reduce risk by appropriately managing and operating
the risk management ledger.

• Review of risk management ledger• Incorporation of changes into
activity plan for the next fiscal year
• Review of activity results

Plan

Do

Act

Check

• Implementation ofactivities toaddress risks• Monitoring of activities

Crisis Management Structure and Activities 
The Yamaha Motor Group works to minimize the damage from andquickly resolve crisis situations as per the Rules for Initial Response to
an Emergency.
In the event of a disaster, accident, or compliance-related incident
at the Group, the division involved will report to the risk management
supervisory section or the divisions in charge of risk management as perstandards for determining the level of reporting, which are set in advance.
If the reported event is of a scale significant enough to warrant the

involvement of Group management or multiple divisions and/or
companies, the risk management supervisory section will refer the matterto a response team designated in advance, and an Emergency
Countermeasure Headquarters, chaired by the president, will beestablished. The headquarters will work to understand the situation andformulate a provisional response and, if necessary, will promptly report on
the matter to customers and related parties.

Business Continuity Plan (BCP) Formulation 
To prepare against envisioned risks that could impact the continuityof our business, Yamaha Motor has formulated the Rules of BusinessContinuity and responds as per those rules.
Yamaha Motor’s primary operations are concentrated in Shizuoka
Prefecture and could be affected if a major earthquake were to occur in
the Nankai Trough. To prepare for this, we have formulated a BCP tomaintain the continuity of business operations, based on the damage
projected by government bodies, and are placing foremost priority on the
lives and safety of our employees.
Specifically, buildings and equipment have been made earthquake andtsunami resistant; emergency stockpiles of food, water, and other essentials are maintained; emergency methods for telecommunications are inplace; and Companywide evacuation drills (including at Group companies

located nearby and night drills) and safety confirmation drills are carriedout regularly. Also, regular initial response drills are carried out at theheadquarters and individual business units, procedures to restore operations have been clarified, and a system for gathering supply chain information is in place. These and other measures addressing both tangible
and intangible effects are carried out comprehensively and continuously.
Another concern is the outbreak of a potentially global pandemic. To
prepare for this possibility, Group companies identify issues that could
affect the continuity of their operations and formulate response plans.
Drills simulating actions to be taken at various stages prior to the fullscale outbreak of a pandemic are carried out regularly, and a structure isin place to guarantee that businesses are able to continue operating.

Significant Risks at the Group Level Each year, risks that need to be prevented and addressed as special
priorities are determined to be significant risks at the Group level. In
addition to the results of risk assessment at the Group level, significant
risks at the Group level are comprehensively determined and designatedbased on factors like the Group’s business strategy, legal and regulatorychanges inside or outside the Group, changes in the operating
environment, and information concerning the likelihood of a risk
event occurring.

2020 Significant Risks at the Group Level
Background
Damage caused bynatural disasters

Cybersecurity

The degree of reliance on and the importance of information systems for theGroup’s business activities are increasing. Measures are needed to prevent
leaks of personal or confidential information, information system failures, etc.,
caused by cyberattacks and computer virus infections. Cybersecurity failurehas, therefore, been designated a significant risk.

The Group has established a Cybersecurity Policy and is taking measures coveringboth tangible and intangible aspects of cybersecurity to increase protection
against external cyberattacks, to detect such attacks at an early stage, and tominimize damage in the event of a cyberattack.

Major accidents
involving
Yamaha products

Major accidents involving Yamaha products are one of the causes of market
penalties such as large-scale recalls. The Group must make continual efforts
to reach zero incidence of such accidents. Major accidents involving Yamaha
products have, therefore, been designated a significant risk.

The Group is promoting information-gathering activities linked to productaccidents and making efforts to raise quality awareness among all employees.

Violation oflaws andregulations
concerning
product quality

Compliance with regard to product quality is a fundamental and important
issue for manufacturers. Further strengthening the structures put in placeby the Group to prevent the violation of laws and regulations is necessary.
Violations of laws and regulations concerning product quality have, therefore,
been designated a significant risk.

The Group strives to gain information regarding the establishment of andchanges to laws and regulations concerning product quality. In addition, theGroup works to create systems that reflect this information appropriately ininternal regulations and standards, while pursuing improvement activities andother efforts.

Improper import /export customs
declaration
procedures

In light of the growing number of bilateral and multilateral free trade agreements and the increasing need for appropriate import / export procedures for
global logistics among Group companies, the Group must further enhance
its systems for preventing any violations of laws, regulations, and ordinances.
Improper import / export customs declaration procedures have, therefore,
been designated a significant risk.

The Group strives to gain information regarding the establishment of andchanges to free trade agreements. In addition, the Group works to create systems
that reflect this information appropriately in internal regulations and training,
while monitoring for their appropriate implementation by Group companies.

Countries around the world have been steadily tightening regulations onenvironmentally hazardous substances, and the Group must strengthen
control structures to prevent violations of laws and regulations by the products
it manufactures. Products containing environmentally hazardous substances
have, therefore, been designated a significant risk.

The Group strives to ensure information is obtained about laws and regulations in
the countries where its products are sold, and accurate information is communicated to relevant divisions inside and outside the Company. The Group also
provides relevant training where necessary and takes steps to prevent violationsof laws, regulations, and ordinances by establishing proper control structures andmethods to address laws and regulations that grow increasingly complicated.

Products
containing
environmentally­hazardous
substances

68

Measures

Many manufacturing plants in Japan are concentrated near the epicenter of
The Group is promoting measures to prevent damage from a Nankai Troughthe predicted Nankai Trough Megaquake, and measures must be taken to
Megaquake or flooding due to heavy rains, and to raise awareness about the
prepare for typhoons, localized torrential rains, and other natural disasters that need for disaster preparedness.
far exceed previous assumptions. Damage caused by natural disasters has,
therefore, been designated a significant risk.

Yamaha Motor Co., Ltd. Integrated Report 2020

Cybersecurity 
Cyberattacks have become increasingly advanced and sophisticated inrecent years, and businesses are faced with a heightened risk of infection
by computer viruses, leakage of personal and confidential information,and information system failures. The Yamaha Motor Group has thus
established a Cybersecurity Policy with the aim of protecting the products
and services used by our customers, as well as our information assets.
In addition to the basic defensive measures already in place, such asmonthly vulnerability analysis that includes anti-malware measures, theGroup has a Security Operation Center (SOC) that monitors for irregularities to enable early detection and response, and a Computer Security
Incident Response Team (CSIRT) that responds to incidents to prepare forcontingencies. The Group also provides training to increase employees’cybersecurity literacy, conducts assessments to ascertain the situation ateach Group company and develop improvement plans, and makes otherongoing efforts to reduce cybersecurity risks.

Information Management Initiatives 
The Yamaha Motor Group formulated the Yamaha Motor Group —Personal Information Protection Policy in 2003 and complies with thelocal laws and regulations related to the protection of personal information in each of the countries in which it operates.
In Japan, in line with the 2017 revisions to the Act on the Protectionof Personal Information, we made corresponding changes to the GroupOperational Guidelines for Protecting Personal Information that was
already in effect at the headquarters and the Group’s subsidiaries. As
with measures like the General Data Protection Regulation (GDPR)
enacted by the European Union in 2018, stricter regulations for theprotection of personal information are being enacted in various countries

and the Company is working together with its regional subsidiaries
toward global compliance.
Departments handling personal information are monitored annuallyfor performance and/or subject to internal audits, and employees handling personal information undergo training and education via complianceseminars held by the risk management supervisory section and/ore-­training. The divisions in charge of risk management also provide direct
advice and guidance and other measures to ensure that customer information is handled appropriately. In fiscal 2019, no complaints were filed
by any authority concerning violations of our customers’ privacy.

Yamaha Motor Co., Ltd. Integrated Report 2020

69

Business Strategy

Medium-Term Priority Measures by Market and ProductLand Mobility

We will answer the diverse needs of the
new era of mobility by harnessing ourcreative capabilities.

Takuya Kinoshita
Executive Officer,
Chief General Manager ofMotorcycle Business Operations• Expansion of middle-income markets in
ASEAN and emerging economies

Opportunities• Evolution of marketing through digital technologies• Global rollout of models compliant with emissions
regulations• Lack of interest in mobility among young people in Japan

Risks• Shift in industrial structure due to innovative­technologies and new competitors• Tighter emissions regulations in each country• Established global brand position for motorcycles

Strengths• Diverse product lineup combining both high performanceand quality through our cultivated core technologies

Comprising the motorcycle, recreational vehicle (RV), and the Smart
Power Vehicle (SPV) businesses, Land Mobility is one of the Company’s
core operations. Leveraging the engine technologies, development andmanufacturing technologies, and expertise cultivated through the motorcycle business the Company has developed since its founding, the Land
Mobility business offers a wide range of products in line with the characteristics of its markets, from practical, everyday means of transportation
and recreational products to ones for commercial use and motorsport.
In recent years, the image and concepts surrounding mobility have beenchanging significantly due to technological advancements, changes inemissions regulations, and diversifying values with regard to life andlifestyles. Going forward, while many people will seek the conveniences
yielded by autonomous driving and other technologies, I believe they will
also seek the self-fulfilling value in driving themselves and enjoying experiences more than ever. We are a brand that has always excelled in the
innate leisure and recreational focus of the latter, so while ascertaining theneeds of the former, we intend to offer products and services that not only
provide convenience but also allow the new time generated by autonomous driving and labor-saving technologies to be used for self-fulfillment.
Also, as a company specializing in personal mobility, this entails a
responsibility to our customers’ safety and peace of mind. As such,
we are continuing the development of Leaning Multi-Wheel (LMW)models—which offer greater rider confidence—under the slogan“To someday create bikes that lean but do not fall,” proceeding with thecreation of vehicle safety communication systems in coordination withother manufacturers, and engaging in safety promotions and training
programs around the world. The Yamaha Riding Academy (YRA), forexample, aims to reduce traffic accidents and currently has certified
instructors in 15 countries holding riding safety courses. The YRA holds
courses 1,300 times annually with approximately 120,000 people participating. The goal is to expand the program to 20 countries and holdcourses 2,000 times with 180,000 participants in 2021.
We will continue delivering Kando to customers through products
and services that answer diverse needs, and aim to create a moresustainable society.

• Relationship of trust with customers through products
and services

Overview of Primary Products and Main Competitors
Markets and conditions at Yamaha Motor
Motorcycles with a high sport / recreational focus are popular but
Motorcycles and commuter
overall demand has remained largely flat since the 2008 global
vehicles for developed markets financial crisis. We are making timely rollouts of models compliant
with new emissions regulations.

70

Main competitors
Honda, Suzuki, Kawasaki, Harley-Davidson, BMW, Ducati,
Triumph, KTM, Aprilia, Piaggio, Kymco

Motorcycles and commutervehicles for emerging markets

We are introducing models compliant with new regulations in India,
the world’s largest motorcycle market. Despite the presence of many
competitors in emerging markets, our brand strength has helped
drive sales growth of premium-segment models in Indonesia.

Honda, Suzuki, Kawasaki, Hero, Bajaj

ROVs / ATVs

The North American market accounts for the majority of demandand its scale is increasing year by year as uses for recreational
off-highway vehicles (ROVs) broaden.

Polaris, BRP, Honda, Kawasaki

Electrically power-assisted
bicycles and OEM drive units

Yamaha Motor is the pioneer of e-bikes and OEM shipments havebeen rising in step with the growth of the European market inrecent years.

Panasonic, Bosch, Shimano

Yamaha Motor Co., Ltd. Integrated Report 2020

Motorcycles

Motorcycles

Motorcycles

ROVs

Developed
markets

ASEAN
markets

IndianmarketNorth American
market

SPV Business

Create new added value throughthe development of newtechnologies to drive
brand strength

Create new businesses whilebuilding a strong base for earnings
in growing fields where
we have expertise

Rebuild the brand andearnings base and develop
new fields of operationin the Indian market

Increase market share byintroducing a
new platform model

Expand the business by developing
new products with new technologies and forming strategic
partnerships

Overview of Fiscal 2019 
We saw an improvement in overall earnings in the motorcycle businessin developed markets thanks to an increase in unit sales centered onmodels compliant with new European emissions regulations and theaccompanying increase in marginal profit at our headquarters. However,the business in emerging markets saw sales volume decrease in thehighly profitable countries of Vietnam, India, and Taiwan. As a result,net sales decreased 1.6% year on year, to ¥1,100.4 billion, and operating
income decreased 14.1% year on year, to ¥41.8 billion. These decreases
include losses of ¥29.3 billion on net sales and ¥12.0 billion on operating
income due to adverse foreign exchange effects.

Progress of Priority Initiatives• In anticipation of greater demand, resolved to enhance production
capacity at the motorcycle factory in the Philippines• Commenced field testing of the TRITOWN electric micromobility LMW
model to verify usability in real-world environments and feasibility forthe tourism industry• In cooperation with Gogoro Inc., developed and launched theEC-05 as a new electric scooter in line with the Company’s electric
product strategy• Established a consortium comprised of Yamaha Motor, Honda MotorCo., Ltd., Kawasaki Heavy Industries, Ltd., and Suzuki Motor
Corporation with the goal of popularizing electric motorcycles in Japan

Measures Going Forward For developed markets, we will continue promptly introducing models
compliant with new regulations while moving forward with our plan toincrease efficiency of the Iwata Main Factory with the aim of improving
profitability through restructuring.
For emerging markets, we will focus on sales of high-value-added
products as we aim to increase unit sales and improve profitability in our
various markets with measures that include bolstering our brand strengthin Vietnam, introducing models compliant with new emissions regulations in India, and expanding sales of electric motorcycles in Taiwan.
For RVs, we will improve earnings through new platforms andstrengthened marketing efforts.
With electrically power-assisted bicycles, we are seeing diversifying
demand due in part to social factors, such as an increase in health andenvironmental awareness, changes in traffic environments, and fluctuations in the price of gasoline. In anticipation of continued market scale
expansion, the Company will continue working to grow the electricallypower-assisted bicycle business in step with the continuously expanding
market by introducing newly developed models with power-assist control
features and allocating more tasks to regional bases to strengthen sales
capabilities.
Although demand decreased in markets throughout the world due tothe effect of lockdown measures and staying home following the outbreak of the COVID-19 pandemic in the first half of 2020, we are beginning to see signs of demand recovery as we enter the second half of theyear. Trends toward an expansion in demand are particularly pronounced
in developed markets as the value of our products as a means of personal transportation for avoiding closed spaces, crowded gatherings, andclose contact with other people and as handy outdoor tools are being
reaffirmed. We will implement measures tailored to each market while
carefully monitoring demand fluctuations going forward.

Message from Management
As a growing new middle class emerges in Indonesia, we are increasing sales by filling out the lineup of mid-range
commuter models targeting that sector. In particular, we are running sales promotions for the XMAX, NMAX, Aerox,and LEXi models under the MAXI brand, and this is helping establish a strong brand image of MAXI offerings as bikes
admired and desired by many. These models were also all chosen as "Best Bike of the Year" between 2015 and 2020.
In addition, YIMM has gained recognition for its high production quality in producing and exporting the NMAX,YZF-R25, and other global models to developed markets like Europe and Japan and several other countries worldwide.
As chief operating officer, I will devote myself to improving the valueof the Yamaha brand in the ASEAN market, including Indonesia, andDyonisius Betienhancing the product value of global models as well as business value.
Executive Officer,
Chief Operating Officer,
PT. Yamaha Indonesia Motor Manufacturing (YIMM)

Yamaha Motor Co., Ltd. Integrated Report 202071

Business Strategy

Integrated Marine Business Strategy

Marine Products
Toward reliable and rich marine lifestyles

We aim to offer enriching marine lifestyles
by building a base for sustainable growth.

Hirofumi Usui
Senior Executive Officer,
Chief General Manager ofMarine Business Operations• Growing demand for large outboard motors centered on
developed markets

Opportunities• Expansion of peripheral equipment business due toadvances with integrated control technologies• Changes in values regarding marine leisure triggered by
the impact of the COVID-19 pandemic

Risks• Making flexibility adjustments to manufacturing and sales
structures in response to recent demand fluctuations
due to the COVID-19 pandemic, etc.
• Creating a business structure resilient against changes inexchange rates and regulations

The Marine Products business portfolio includes marine engines, boats,
personal watercraft, and pools, and is the Company’s second largest
operation after the Land Mobility business. The business has built its
presence as a global leader in the marine products market with its
strengths of cutting-edge and highly reliable engine and hull technologies,
and its worldwide service network.
In fiscal 2019, the first year of the current Medium-Term Management
Plan, we were able to steadily move forward with priority objectives.
Demand for large outboard motors of over 200 horsepower in North
America and Europe—our main markets for outboard motors—showedsolid growth and the shift away from propulsion units such as inboard
motors and stern drives is proceeding.
In light of this market environment, we set bolstering the global production structure for outboard motors as a priority measure in the current
Medium-Term Management Plan. In fiscal 2019, we began increasing our
production capacity for large outboard motors and enhancing production
flexibility between Yamaha Motor’s Iwata Main Factory, Yamaha
Kumamoto Products Co., Ltd., and Thai Yamaha Motor Co., Ltd. asplanned, and are making progress.
In addition, with the aim of furthering our system supplier strategy, we
are focusing on promoting the development of sophisticated boat control support features using integrated control technologies—a Company
strength—and we launched in fiscal 2019 a new steering device to themarket in a sport boat. Over the long term, we intend to advance technology and product development with an eye on introducing highly
reliable and high-value-added automated boat control systems and more.
In 2020, we anticipate a dramatic change in the business environment
due to the worsening economic conditions accompanying the global
COVID-19 pandemic. Nevertheless, from a medium- to long-term perspective, we believe that the culture of marine leisure fostered to date willremain unchanged, and we may even see positive changes. To help offer
reliable and rich marine lifestyles as laid out in the Marine Long-Term
Vision, we will seek to fortify our high-profit business structure and tobuild a base for sustainable growth, despite the severity of the current
business environment.

•O verall business strength of the Marine Products ­business(wide-ranging fields of operation and product lineup)

Strengths• System supplier strategy:
To provide more reliable boats, we will shift from an outboard
motor-focused business to growing the peripheral systems business,
including boat control systems.
• Over the long term, we will introduce products such as highly­reliable and high-value-added automated boat control systems to
evolve the business from one that provides products to one thatprovides experiences.

Technology required

Product Development Strategies
Continuing the provision of
attractive products / services
Large 425-horsepower
outboard motors

Next-generation boat
control systems“Smart Package” boats
Solutions
IoT

EXULT43 cruiser

Electric
propulsion
units

Value offered

Overview of Fiscal 2019 
In North America and Europe, our main markets for outboard motors,
the transition toward large outboard motors continues and net sales
increased due to an improvement in the product mix stemming from thisrising demand. However, foreign exchange effects incurred losses of ¥6.4
billion on net sales and ¥4.1 billion on operating income, resulting in an
overall net sales increase of 2.0% year on year, to ¥345.1 billion, while
seeing operating income fall 3.9%, to ¥58.4 billion.

Progress of Priority Initiatives• Increased production capacity for large outboard motors• Developed DRiVE, an innovative next-generation boat control system
which offers easy, comfortable, and enjoyable boat operation• Developed and commenced sales of the 275SD sport boat, a large craftthat provides sharp, sporty handling thanks to a newly designed hulland boasts elegant styling and spacious onboard comfort

Measures Going Forward In fiscal 2020, we had planned to capture more of the ongoing steadydemand for large outboard motors, personal watercraft, and large boats
in North America, Europe, and other markets. However, we anticipate
a significant impact on our plans from the global COVID-19 pandemic.
While swiftly and flexibly implementing adjustments to production andsales in response to demand fluctuations, we will continue our productdevelopment and R&D efforts unfazed in anticipation of a recovery overthe medium to long term.

Message from Management• Unquestioned product reliability centered around integrated
control technologies• Sales and service capabilities spanning the global market

Overview of Primary Products and Main Competitors

72

Progress: In addition to continuing
our activities to date,in fiscal 2019, we
took part in survey
work aimed at
resolving the issue ofocean plastic waste.

Markets and conditions at Yamaha Motor

Main competitors

Outboard motors

As demand for outboard motors is increasing with the rise indemand for pleasure-use boats, primarily in North America andEurope, we will build a global production structure with theflexibility to keep pace with demand.

Mercury Marine, Suzuki, Honda, Tohatsu, Evinrude

Boats

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

Yanmar, Toyota, Suzuki, Tohatsu

Personal watercraft

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

BRP, Kawasaki

Yamaha Motor Co., Ltd. Integrated Report 2020

COVID-19 showed Americans that social distancing at home provided more time to spend in the great outdoors.
When more people spend time with their family boating and fishing, it can create growth opportunities for Yamaha
Marine while the economy slowly recovers.
We see new buyers are purchasing more premium products with greater feature content. The 200+ horsepower
market has seen the most positive recovery due to more advances, reliable power, and integrated boat control­systems. We plan to continue to focus on our new XTO425 platform as well as the new Helm Master EX, the next
generation of integrated boat control systems with fully electric steering.
Like most companies, boat manufacturing plants paused production in March and April; now nearly all our corecustomers are back to pre-COVID-19 capacity. With the lack of package-boat supply during the shutdowns and retailremaining above previous fiscal years’ volume, our dealers are low on inventory. This means we need to listen andrespond more quickly to match supply to demand for the remainder of 2020. Going forward, I will lead our team tomake quick decisions to respond while listening carefully to market demand in order to sufficiently supply products toour customers.

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

Yamaha Motor Co., Ltd. Integrated Report 202073

Business Strategy

Medium- to Long-Term Growth Strategies

Robotics

Hiroyuki Ota
Executive Officer,
Chief General Manager of
Solution Business Operations• Growing need for automation due to labor shortages
in Japan and rising labor costs in emerging markets

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

Risks• Intensifying competition resulting from new players
entering the market• Ability to mass-produce with high quality and at low cost

Strengths

Our Robotics business began with the commencing of development
aimed at streamlining the production of our motorcycles. Today, thebusiness’ offerings include industrial robots used for automating processes at various client factories, surface mount technology (SMT) devices
and equipment used for manufacturing the electronic circuit boards built
into all kinds of products, and industrial-use unmanned helicopters anddrones leveraging Yamaha’s core competency in electronic control.
With the increase in demand for automation in recent years, we set“business scale and area expansion and reinforcement of high profitability” as a medium-term priority measure, and we will move to expand our
lineup of products and services for accelerating factory automation while
also examining new fields where we can contribute to labor savings,
including outside the factory sphere.
In July 2019, the Company acquired SHINKAWA LTD., renaming it
Yamaha Motor Robotics Holdings Co., Ltd. (YMRH) in the process, and is
working to set up a structure to offer complete solutions, from semiconductor post-processing through to surface mounting processes, by
combining the technologies and products of both companies. In addition, we intend to move toward a platform model for surface mounting
processes to increase the value delivered to clients.
Furthermore, in the Robotics business we are focusing our effortson the agricultural sector in particular in order to realize the Long-Term
Vision. Developed markets are starting to see increasingly higher labor
shortages in fruit and vegetable farming, so to further increase laborsavings and productivity in agriculture going forward, we will apply theexpertise we have accrued both domestically and internationally in theunmanned helicopter space and more aggressively bring drones andunmanned ground vehicles (UGVs) to market. In this way, we will contribute toward a more stable provision of foodstuffs.
Utilizing robotics, we will free up new time for clients by offeringsolutions to problems
present in a variety of
sectors, including manufacturing, agriculture,and medical research.

New

Optimization of the entire factory• Strengthening variations (collaborative robots)• M2M cooperation, remote support• Autonomous control

New business area challenges• Integration with core technology• Logistics (drones, unmanned helicopters, UGVs)

Labor Savings /Autonomization
Existing

We will free up new time for clients byoffering solutions to problems present invarious fields.

Products / Services

Aim for growth in each field with labor savings and autonomization as core values

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

New field automation• Precision agriculture• Medical fields

Existing

New

Market / Customer
Strengthening Business Platforms• In-house manufacturing technology

Overview of Fiscal 2019 
Although revenue increased thanks to the creation of YMRH as a subsidiary, unit sales of surface mounters and industrial-use robots declined due
to stagnant market conditions triggered by trade friction between the
United States and China. As a result, net sales in fiscal 2019 increased
1.1% year on year, to ¥75.6 billion, while operating income fell 53.9%
year on year, to ¥7.7 billion.

• Systems

Progress of Priority Initiatives• Following the establishment of YMRH, proceeded with restructuring
efforts that included the reorganization of bases and integration of
procurement schemes. Initiatives such as joint product development
and cross sales underway as planned.
• Released a precision agricultural platform• Invested in a Taiwanese industrial equipment manufacturer tostrengthen market competitiveness. Expecting stable supply of highquality parts at low prices.

Measures Going Forward 
In terms of market conditions from 2020 onward, we are seeing investments in 5G-related base stations and mobile devices and signs of recovery with built-in CASE systems for vehicles. Keeping a close watch on
demand trends and anticipating changes in lifestyles from the COVID-19
pandemic, we will accelerate the offering of bundled product proposals
and mutual sales channel utilization by leveraging the synergy born fromnew model introductions and business integration.
Furthermore, to augment business synergy, Yamaha Motor madeYMRH a wholly owned subsidiary in April 2020 with a takeover bid andwe look to raise the Robotics business’ rate of growth with more unified

management. In addition, as we aim to expand the industrial robot
business by entering the collaborative robot field, we will proceed withinvestments in and technical cooperation with Tokyo Robotics Inc.
To achieve sustainable growth for the future, we will move forwardwith robotics R&D and strengthen our production structure and thereby
contribute to labor savings and autonomization in the manufacturing
field.

• A mixture of technologies via business integration with
YMRH and provision of complete solutions for clients

Message from Management
Overview of Primary Products and Main Competitors

74

In the Robotics business, we are carrying out a platform strategy focused on increasing shared elements and efficiencies in manufacturing. By introducing shared hardware and software, we will not only reduce development lead timeand achieve greater parts standardization but also provide more value to clients, such as reducing upkeep costs,
standardizing operations, and shortening equipment delivery times. As a first step, we have developed the new
YRM20 premium, high-efficiency modular surface mounter. By sharing the platform for manufacturing high-speed,
high-added-value models as well as highly cost-efficient economical models, we will offer unique and highly effective
products that embody the “Unique & Proven!” concept of the SMT business.
As leader of the Robotics business, I will strive to achieve ongoing growth.

Markets and conditions at Yamaha Motor

Main competitors

SMT

We are pursuing both tangible and intangible commonalities under
our platform strategy to expand our business scale and reinforce
our profitability.

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

Industrial robots

We are strengthening model variations while pursuing bothtangible and intangible commonalities to expand our business scaleand reinforce our profitability.

Epson, Mitsubishi, Denso, IAI

Unmanned helicoptersand drones

We are launching multirotor drones in addition to our provenunmanned helicopters and will also establish a track record for
precision agriculture.

DJI

Ayako Egashira

Semiconductor
post-­processing equipment

We are working to further build our customer base by building aseamless collaborative system that offers one-stop proposals thatcover the entire semiconductor manufacturing process.

ASM, Besi, Fuji, Towa

Executive Chief General Manager
of Robotics Business Unit,
Solution Business Operations

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Co., Ltd. Integrated Report 202075

Business Strategy

Financial Services

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

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

Overview of Fiscal 2019 During fiscal 2019, the Company established Yamaha Motor FinanceFrance S.A.S (YMFF) in France, where Yamaha motorcycles command asignificant share of the market, and commenced operations. As a resultof this and other measures, our outstanding receivables balance for theregion steadily grew.
However, due to temporary profits recorded in Brazil in 2018 andother effects, the business saw a rise in sales but a fall in profits, with net
sales climbing 4.8% year on year, to ¥40.9 billion, while operating
income fell 34.2% year on year, to ¥8.0 billion.

76

Power ProductsFirst created by adapting the Company’s small-engine technology,
Yamaha generators are utilized not only for camping and other recreational activities but also as a backup power source in times of emergency such as during power outages or in disaster-afflicted areas. We
also manufacture and sell products like snow blowers—a welcome tool
in regions with heavy snowfall—and multipurpose engines.
Yamaha golf cars, which originated from the development of land cars
for resort facilities, are produced in Japan, the United States, and Thailand,
where aggregate production exceeds one million units. North America inparticular accounts for over 75% of global demand, making it the leading
market for golf cars and the focus of the Company’s sales. In recent years,
our golf cars have attracted a great deal of attention beyond golf courses
and resort facilities as a means of automated low-speed first/last-milemobility for underpopulated areas and villages with narrow roads.

Measures Going Forward In fiscal 2020, we will promote more autonomy in our financial operationsin North America while moving ahead with business development inEurope. In January 2020, Yamaha Motor Finance Corporation, U.S.A.
(YMFUS) replaced its financing program for “Prime” customers, which it
had hitherto operated in a tie-up with American financial institutions, withan in-house service. As a result, YMFUS is now able to provide its own
financial services for individual customers and sales channels across the
spectrum in the United States.
By continuing to put forward attractive financing programs, theCompany will establish an environment that facilitates the purchaseof Yamaha Motor products by customers and thus help grow sales.

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

Message from Management

Message from Management

To enable financial services to be a driver of Yamaha Motor’s growth going forward, we have launched the Global
Execution Transformation (GET) initiative in the business, with the aim of ensuring it has a global and sustainablebusiness model into the future. The GET initiative’s vision for financial services entails sharing the best practices ofvarious countries and improving overall management of business operations and risks, in addition to contributing tobusiness performance by driving unit sales and establishing an appropriate corporate governance system.
As joint leader of the GET strategy, I will establish a global business strategy and business structure with the goalof ensuring that the financial services we provide are the best in the industry for our dealers and all our customers
and clients.

In 2020, we will celebrate the 25th anniversary of our electric wheelchairs and the role they play in contributing to
the health and welfare field as well as in addressing the issues of an aging society. While awareness has grown inrecent years of various forms of electric mobility serving as means of transportation, we believe there is tremendous
potential in electric wheelchairs as an electric single-passenger form of mobility.
Moving forward, we will aim to establish a business model that enables us to contribute to society by offering
people the freedom of mobility through our products.

Yamaha Motor Co., Ltd. Integrated Report 2020

Jeffrey Young

Michiyo Yamazaki

Deputy Executive Officer, President,
Yamaha Motor Finance Corporation, U.S.A. (YMFUS)

General Manager of JW Wheelchairs Division,
Smart Power Vehicle Business Unit,
Solution Business Operations

Yamaha Motor Co., Ltd. Integrated Report 202077Facts and Data

11-Year Summary
Yamaha Motor Co., Ltd. and Consolidated Subsidiaries (Years ended December 31)

Millions of yen

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

¥1,153,642¥1,294,131¥1,276,159¥1,207,675¥1,410,472¥1,521,207¥1,631,158¥1,502,834¥1,670,090¥1,673,137

For the year:
Net sales% change

2018

2019

2019/2018¥1,673,137¥1,664,764

(0.5)
(1.6)

For the year:

Sales by product:

Net sales
Sales by segment:

Motorcycles

817,058914,211887,556

798,676928,203

977,580

1,032,560

930,112

1,045,211

1,022,174

Land Mobility

1,117,755

1,100,430

Marine Products

150,113167,141

178,929

196,320

243,362

276,367

309,337

297,216

323,838

344,658

Marine Products

338,194

345,058

2.0

Power Products

100,577

102,968

100,257

103,588

126,722

142,204

169,495

152,310

151,622

153,778

Robotics

74,85875,644

1.1

Industrial Machinery and Robots
Other Products—

34,75834,32630,81332,261

38,942

46,501

46,871

67,571

69,891

Financial Services

39,03840,9284.8

85,89375,05175,08978,27679,922

86,11373,262

76,322

81,84582,634

Others103,289

102,703(0.6)

Gross profit

202,292

295,565

276,046

235,068

318,765

372,849

436,525

402,660

458,629455,173

Gross profit

455,173442,331(2.8)

Operating income (loss)(62,580)

51,30853,405

18,59855,137

87,249130,329

108,594

149,782

140,787

Operating income

140,787

115,364(18.1)

Ordinary income (loss)(68,340)

66,142

63,49527,26760,092

97,279125,231102,073

154,826

137,969

Ordinary income

137,969

119,479(13.4)

93,36675,736(18.9)
68.4

Net income (loss) attributable toowners of parent(216,148)

18,30026,9607,489

44,05768,45260,02363,153

101,60393,366

Net income attributable toowners of parent

Net cash provided by (used in)operating activities

74,096

104,531

33,328(2,385)66,976

93,61828,475

143,163

126,342

58,858Net cash provided byoperating activities

58,85899,127

Net cash used in investing activities(45,285)(37,632)(46,517)(51,081)(62,679)(72,470)(68,475)(46,541)(53,194)(48,274)

Net cash used in investing activities(48,274)(79,662)65.0

Free cash flow

28,81066,899(13,189)(53,466)

4,296

21,148(40,000)

96,622

73,147

10,584

Free cash flow

10,584

19,46583.9

Net cash provided by (used in)financing activities(32,022)

5,296(51,927)

15,761

3,620(8,908)

6,845(67,627)(52,830)(26,423)

Net cash used infinancing activities(26,423)(36,760)

39.1

Capital expenditures

46,03533,93945,04948,78856,80065,87164,064

61,33056,53255,068

Capital expenditures

55,06858,053

5.4

Depreciation expenses

53,701

36,59433,57834,27836,407

37,66744,32442,43445,457

46,405

Depreciation expenses

46,40549,689

7.1

Total assets¥987,077¥978,343¥900,420¥962,329¥1,146,591¥1,310,040¥1,305,236¥1,318,776¥1,415,845¥1,420.854

Total assets¥1,420,854¥1,532,810

7.9

Net assets

249,266

310,809309,914

341,561

422,792

503,224

531,700

575,404

665,232

695,743

Net assets

695,743

751,828

8.1

Interest-bearing debt

399,942

322,443274,721326,976

382,929

403,652

410,148364,381353,490356,688

Interest-bearing debt

356,688364,951

2.3

At year-end:

At year-end:

Ratios:Ratios:Operating income margin (%)

(5.4)

4.0

4.2

1.5

3.9

5.7

8.0

7.2

9.0

8.4

Operating income margin (%)

8.4

6.9

Return on equity (ROE) (%)(71.2)

7.5

9.7

2.5

12.7

16.2

12.6

12.3

17.6

14.6

Return on equity (ROE) (%)

14.6

11.1

Equity ratio (%)

21.5

28.0

31.2

32.0

33.5

35.1

37.6

40.5

44.0

46.3

Equity ratio (%)

46.3

46.0

—

23.8

12.6

44.2

12.5

12.5

16.0

14.2

12.7

8.1

Price/earnings ratio (times)

8.1

10.2

188.3

117.6

97.8

106.2

99.7

87.8

83.6

68.2

56.8

54.3

Debt/equity ratio (%)

54.3

51.8

Price/earnings ratio (times)
Debt/equity ratio (%)

Yen

Per share amounts:
Net income (loss)—basic
Net income—diluted
Net assets
Cash dividends

Per share amounts:¥(755.92)¥ 55.50¥ 77.23¥ 21.45¥ 126.20¥ 196.06¥ 171.89¥ 180.84¥ 290.93¥  267.35

—

55.50

77.23

—

126.20

196.04171.88180.83——743.04785.61804.26881.881,099.84

1,316.58

1,405.35

1,529.53

1,783.35

1,882.64

0.00

0.00

15.50

10.00

26.00

40.00

44.00

60.00

88.00

90.00

Net income—basic
Net income—diluted
Net assets
Cash dividends¥  267.35¥  216.83———

1,882.64

2,018.84

7.2

90.00

0.0

90.00

(18.9)

Millions of yen,
except per share data

Share performance (at year-end):

Share performance (at year-end):

Price per share (yen)¥  1,166¥  1,323¥    974¥    949¥  1,577¥  2,442¥  2,744¥  2,574¥    3,695¥  2,159

Price per share (yen)¥  2,159¥  2,203

2.0

Market capitalization

333,300

461,855

340,018

331,288

550,585

852,683

958,264

898,931

1,290,413

753,989

Market capitalization

753,989

771,079

2.3

Number of shareholders

30,01331,61532,25932,87329,47430,41634,21442,031

34,566

51,113

Number of shareholders

51,11367,741

32.5

Number of employees

49,99452,18454,677

53,95853,382

52,66253,30653,15053,57953,977

Number of employees

53,97755,255

2.4

Other data (at year-end):

Other data (at year-end):• References to fiscal years are to 12-month periods commencing on January 1 and ending on December 31.
• With regard to amounts stated in million yen units, amounts less than ¥1 million are truncated. For amounts stated in 0.1 billion or billion yen units, amounts less than ¥0.1 billion or ¥1billion, respectively, are rounded off.
• From the fiscal year ended December 31, 2016, the presentation of sales finance-related income and expenses has changed from recording under “Selling, general and administrative
expenses,” “Non-operating income,” and “Non-operating expenses” to recording under “Net sales,” “Cost of sales,” and “Selling, general and administrative expenses.” To reflect thischange in presentation method, the consolidated financial statements for the fiscal year ended December 31, 2016 and the fiscal year ended December 31, 2015 have been reclassified.

78

Yamaha Motor Co., Ltd. Integrated Report 2020

• Figures for the fiscal year ended December 31, 2009 are as per the previous segment classifications.
• Starting from the fiscal year ended December 31, 2019, reporting segments have changed from “motorcycles,” “marine products,” “power products,” and “industrial machinery androbots” to “land mobility,” “marine products,” “robotics,” and “financial services.” These changes are reflected in results for the fiscal year ended December 31, 2018.
• The presentation method has changed from the fiscal year ended December 31, 2019, and the figures for the fiscal year ended December 31, 2018 have been adjusted retrospectively.

Yamaha Motor Co., Ltd. Integrated Report 202079Facts and Data

Environmental and Social-Related DataManagement Discussion and Analysis of Operations

Climate Change Mitigation Measures

Overview 

Item

Unit

Number of fuel-injected motorcycles sold
Sales of lowcarbon products

Number of motorcycles featuring a BLUE CORE engine soldThousandsof vehicles

Number of electrically power-assisted bicycles sold(including number of drive units)

2015

2016

2017

2018

2019

3,288

3,203

3,524

3,564

4,246

1,556

1,994

2,538

2,800

2,901

356

448

489

569

648

SASB Requirements
SASB Index*

Item

Unit

2019

TR-AU-000.A

Number of vehicles manufactured

Thousandsof vehicles

4,960

TR-AU-000.B

Number of vehicles soldThousandsof vehicles

5,056

TR-AU-250a.2

Number of safety-related defect complaints,
percentage investigated%100* Investigated all complaints that the Ministry of Land, Infrastructure, Transport
and Tourism of Japan has requested to investigate

TR-AU-250a.3

Number of motorcycles recalled (in Japan)

Number17,696(in Japan)

TR-AU-310a.1

Percentage of active workforce covered undercollective bargaining agreements%

58

Number of work stoppages due to strikes andlockouts

Number0

Activity Metric

Product Safety

Labor Practices

TR-AU-410a.1
Fuel Economy &Use-Phase
Emissions

TR-AU-410a.2

Materials
Sourcing

Man-days

0

Asia

km/L

49

EuropegCO2/km

89

North America

mpg

56

Japan

km/L

42

Oceania

km/L

26

Central and SouthAmerica

km/L

48

Other

km/L

48

NumberNot applicable

Sales-weighted average
passenger fleet fueleconomy, by region

Number of (1) zero emission vehicles (ZEVs) sold,(2) hybrid vehicles (HEVs) sold, and(3) plug-in hybrid vehicles (PHEVs) soldTR-AU-410a.3

Strategy for managing model-year fuel economy
and emissions risks and opportunities

Short-term, Medium-term, and Long-term Risks and Opportunities >Short-term Risks (0–3 Years)

TR-AU-440a.1

Management of risks associated with the use ofcritical materials

Major Risks Associated with Transitioning to a Low Carbon Society >Technological Risks

Weight of end-of-life products recoveredt

64,748Percentage of above waste recycled

%

70.1

Weight of end-of-life products recoveredt—

Percentage of materials recycled from end-of-life
products%

97.4 (on a weight basis)* FY2018 domestic recycling results

Percentage(%) bysalesweighted
metric tons(t)Target value: Set at 90%

TR-AU-440b.1

Materials
Efficiency &Recycling

TR-AU-440b.2

TR-AU-440b.3

Recyclability of products* A disclosure index for the automotive industry required by the Sustainability Accounting Standards Board (SASB)
TR: Transportation; AU: Automobiles

80

Yamaha Motor Co., Ltd. Integrated Report 2020or 18.9%, to ¥75.7 billion. The average foreign exchange rateduring the year was ¥109/US$1 (¥1 higher than in the previous
fiscal year) and ¥122/1 euro (¥8 higher).
Net sales increased in the Marine Products and Financial
Services segments, but decreased in the Land Mobility segment
and the Robotics segment, excluding the impact from the business integration of YMRH and its subsidiaries, for an overall
decline in net sales. Operating income was lower overall, owing toweaker sales in the Robotics segment, higher expenditures related
to growth strategies, and fluctuations in foreign exchange rates,
despite improvements in profitability resulting from higher operating rates and structural reforms in motorcycle production in
Europe and head offices in developed markets, as well as anincrease in sales of high-priced motorcycle models in Indonesia.

Factors Impacting Operating Income

TR-AU-310a.2
Number of workers involved in work stoppages,
multiplied by number of days idle

During the fiscal 2019, the global economy saw its rate of growth
weaken amid uncertainties that stemmed from investment being
curtailed amid U.S.–China trade friction and Britain’s exit from theEuropean Union. In developed markets, economic growth tapered
off in the United States and Europe, while Japan’s economy
staged a modest rebound. In emerging markets, economic growthstrengthened in Vietnam and the Philippines, but lost momentum
in Indonesia, Thailand, and India.
In this business environment, the Company’s consolidated net
sales for the fiscal year under review declined ¥8.4 billion, or
0.5%, year on year, to ¥1,664.8 billion; operating income fell
¥25.4 billion, or 18.1%, to ¥115.4 billion; ordinary income
decreased ¥18.5 billion, or 13.4%, to ¥119.5 billion; and net
income attributable to owners of parent declined ¥17.6 billion,(¥ billion)

Land Mobility
Business

140.8

+10.8

Marine Products
Business+3.3

Robotics
Business

Financial Services
Business

Others

–3.8

–1.8

–8.3
Developed Emerging
Markets
Markets
Motorcycle Motorcycle
Business
Business

RV

+4.0

SPV

+0.8

Growth Strategy
Expense Increases

Exchange
Effects

115.4

–8.7
–16.9

9.3
–3.3

2018

2019

Change in Reporting Segments 
Beginning with the fiscal year under review, the reporting segments have changed from “Motorcycles,” “Marine Products,”“Power Products,” and “Industrial Machinery and Robots” to“Land Mobility,” “Marine Products,” “Robotics,” and “Financial
Services.” The reporting segments were changed in tandem witha reorganization of business management divisions in order tobetter implement measures to achieve our targets in the threeyear Medium-Term Management Plan from 2019 through 2021.
In the Land Mobility segment, the Company aims to build a business foundation that is able to respond to a new era of mobility.
In the Marine Products segment, we will establish a foundation forsustainable growth while reinforcing our high-earnings structure.
In the Robotics segment, Yamaha Motor intends to expand its
business scale and scope while strengthening profitability. In the
Financial Services segment, we will target growth through theestablishment of a financial subsidiary in France to complement

bases in the United States, Australia, and Brazil.
Specific Changes:(1) All-terrain vehicles (ATVs), recreational off-highway vehicles(ROVs), and snowmobiles, which were previously in theMotorcycle and Power Products segments, as well as electrically power-assisted bicycles that were included in the Other
Products segment, now belong to the Land Mobility segment.
(2) Industrial-use unmanned helicopters, which were previously
included in the Industrial Machinery and Robots segment andthe Other Products segment, now belong to the Robotics
segment.
(3) Earnings from financial services were previously included ineach reporting segment, but have been carved out into its
own Financial Services segment in accordance with changes
in business management divisions.

Yamaha Motor Co., Ltd. Integrated Report 202081Facts and DataManagement Discussion and Analysis of Operations

Products and Services in Each Segment
Segment

Main products and services

Land Mobility

Motorcycles, intermediate parts for products, knockdown parts for overseas production, all-terrain vehicles, recreational
off-highway vehicles (ROVs), snowmobiles, and electrically power assisted bicycles

Marine Products

Outboard motors, personal watercraft, boats, FRP pools, fishing boats, and utility boats

Robotics

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

Financial Services

Sales finance and lease related to the Company’s products

OthersGolf cars, generators, multi-purpose engines, small-sized snow blowers, automobile engines, automobile components, andelectrically powered wheelchairs

Robotics Segment
Net sales rose ¥0.8 billion, or 1.1%, to ¥75.6 billion, but operating income dropped ¥9.0 billion, or 53.9%, to ¥7.7 billion. Of
note, segment earnings for the fiscal year under review newlyreflect net sales of ¥12.0 billion and operating losses of ¥2.8
billion for YMRH and its subsidiaries’ second and third quarters(from July to December 2019).
Excluding the impact from YMRH and its subsidiaries, sales andprofits would have decreased, owing to lower sales volume of
surface mounters and industrial robots amid trade friction
between the United States and China. Restructuring proceeded asplanned after YMRH and its subsidiaries were added to the scopeof consolidation.
While eyeing trends in demand, Yamaha Motor plans to accelerate the mutual use of sales channels and offer integrated proposals of products that leverage synergies through theintroduction of new models and business consolidation.

Financial Services Segment
In this segment, net sales expanded ¥1.9 billion, or 4.8%, to ¥40.9
billion, but operating income decreased ¥4.2 billion, or 34.2%, to¥8.0 billion.
In all regions, the outstanding receivables balance steadily expanded,thanks in part to the commencement of business development in France.
Sales increased while profits decreased, reflecting the absence of one-off
gains in Brazil recorded in the previous fiscal year.
The Company will continue to provide unique and convenient services
while expanding its customer base and presence to new regions.
Others Segment
In this segment, net sales were down ¥0.6 billion, or 0.6%, to ¥102.7
billion, and operating losses amounted to ¥0.6 billion, compared with
operating income of ¥2.4 billion in the previous fiscal year.
Overall, both sales and profits deteriorated, owing to the impact fromadditional tariffs in the United States and market-related expenses in golfcars and power generators, even though sales were up for high-priced
golf cars.

Performance by Business Segment Land Mobility Segment
In this segment, net sales declined ¥17.3 billion, or 1.6%, to¥1,100.4 billion, while operating income fell ¥6.9 billion, or 14.1%,
to ¥41.8 billion.
In developed markets, sales of motorcycles decreased ¥5.2
billion, or 2.3%, to ¥223.1 billion, and the operating income
margin was -6.4%, a 1.6 percentage point improvement from theprevious fiscal year. Overall demand increased in Europe, wasunchanged year on year in North America, and declined slightly inJapan. Yamaha Motor was able to reduce losses through restructuring, while sales volume grew, mainly for models compliant withnew emissions standards in Europe. In emerging markets, sales ofmotorcycles decreased ¥19.4 billion, or 2.5%, to ¥755.7 billion,
and the operating income margin worsened 1.7 percentage
points, to 6.9%. Demand strengthened in Brazil, the Philippines,
and Taiwan. Demand for electric scooters rose strongly in Taiwan
as a result of government subsidies, but demand for gasoline
models declined. In other regions, overall demand fell in India,
Indonesia, Vietnam, and Thailand. At Yamaha Motor, sales volume
increased for high-priced models in Indonesia, and sales volume
also expanded in the Philippines and Brazil, but decreased in
Vietnam, India, and Taiwan, resulting in weaker sales and profits
overall. Total sales of motorcycles was 5.9% lower than the previous fiscal year, at 5.06 million units. In developed markets, theCompany restructured operations and proactively introduced
models compliant with new standards. In emerging markets,
while focusing efforts on the sale of high-value-added products,
Yamaha Motor aims to improve profitability and expand sales
volume in each market by strengthening its brand power in
Vietnam, launching models compatible with new standards in
India, and increasing sales of electric motorcycles in Taiwan.
In recreational vehicles (ATVs, ROVs, and snowmobiles), net
sales increased ¥1.3 billion, or 1.7%, to ¥77.5 billion, and the82

Yamaha Motor Co., Ltd. Integrated Report 2020

operating income margin improved 4.0 percentage points, to-3.3%. In North America, losses narrowed on higher sales of ATVs
and snowmobiles.
In electrically power-assisted bicycles, net sales grew
¥6.1 billion, or 15.9%, to ¥44.1 billion, while the operating
income margin worsened by 0.7 percentage point, to 14.6%.
Growth in sales and profits was driven by stronger sales of E-kit(drive unit for electrically power-assisted bicycles) in Europe andhigher sales volume in Japan. Yamaha Motor aims to expand
business in growing markets by enhancing its sales capabilities
and launching newly developed models with assistance controls.
Marine Products Segment
In the Marine Products segment, net sales increased ¥6.9 billion,
or 2.0%, to ¥345.1 billion, while operating income decreased¥2.4 billion, or 3.9%, to ¥58.4 billion. Worldwide, demanddecreased for outboard motors, which make up the bulk of sales
in the segment, but demand continued to shift toward more
powerful outboard motors in North America and Europe, which
are key markets for the Company’s outboard motors.
At Yamaha Motor, sales volume increased in North America
and Europe for high-end outboard motor models with 200+
horsepower. Due to unfavorable weather in freshwater environments during the first half of the fiscal year under review, however, sales declined for mid-range and smaller horsepowermodels. Overall sales volume was down as a result. Meanwhile,
sales volume grew in water vehicles and sport boats. Foreignexchange rates also had a major impact, leading to higher sales
but lower profits in the segment.
While rapidly and flexibly responding to market trends, theCompany is advancing a system supplier strategy and strengthening relationships with boat builders.

R&D Expenses 
In total for the Yamaha Motor Group, R&D expenses amounted¥102.0 billion in the fiscal year ended December 31, 2019.
The Yamaha Motor Group’s corporate mission is to be a“Kando Creating Company.” We aspire to offer new excitement
and a more fulfilling life for people all over the world. To this end,
we provide unique and high-quality products and services madeavailable through our technology to interweave human logic withsensibility by continuously striving to achieve “the unique style of
Yamaha Motor’s engineering, manufacturing, and marketing,”
aiming at creating “new, original, and innovative ideas and messages,” “technology that creates joy and trust among customers,”“attractive designs to express Refined Dynamism,” and “power tobuild up a lifetime relationship with customers.”
We make ongoing efforts to gain recognition from our various
stakeholders that the “unique style of Yamaha Motor” constitutes
the Yamaha brand, and to make our products and services thelifelong preferred choice for stakeholders. We believe that these
efforts will enable us to achieve sustainable growth and enhance
our medium- to long-term corporate value.
We carry out measures to achieve sustainable growth andenhance corporate value under our Long-Term Vision, with an eye

on 2030 and the Medium-Term Management Plan that runs forthree years from 2019.
Specifically, we carry out strategic investments for growth insuch efforts as “Rethinking Solution” unique to Yamaha and“Transforming Mobility,” as we implement “Advancing Robotics”
as our core technologies. We also expand human possibilities andcontribute to the realization of a better society and more fulfilling
life (through our concept of “ART for Human Possibilities”).

R&D Expenses Ratio of R&D Expenses to Net Sales(¥ billion)

(%)

10.0

105
102
100

9.0

95

8.0

90

7.0
6.1

85

6.0

0

0
2015

2016

R&D expenses to net sales

2017

2018

2019

R&D expenses ratio

Yamaha Motor Co., Ltd. Integrated Report 202083Facts and DataManagement Discussion and Analysis of Operations

Capital Resources and Liquidity 
The Group’s fund requirements are primarily to cover the cost of
procuring materials and parts used in product manufacturing andcosts incurred in the manufacturing process, as well as purchasing
costs for products and merchandise, selling, general and administrative expenses, working capital, and capital expenditures.
Group companies acquire short-term loans payable denominated in local currencies to use as working capital. Meanwhile,funds for plant and equipment investment come primarily frominternal reserves, including paid-in capital and retained earnings.
On managing capital liquidity, Yamaha Motor secures necessary
liquidity by creating and updating cash flow schedules on a timely
basis, and properly maintains cash and equivalents.

fiscal year), and cash and cash equivalents totaled ¥122.7 billion(a decrease of ¥15.4 billion from the end of the previous fiscal
year). Interest-bearing debt includes ¥290.2 billion in bonds andborrowings for sales finance (an increase of ¥27.3 billion).

Cash Dividends 

Capital Expenditures 
Capital expenditures totaled ¥58.1 billion during the fiscal year
under review.
In the Land Mobility segment, ¥36.3 billion was spent on new
motorcycle products overseas, expansion of production capacity in
the Philippines, and R&D in Japan. In the Marine Products segment, ¥11.7 billion was used to expand production capacity andAs a result of the activities discussed above, free cash flow for
the fiscal year ended December 31, 2019, was a positive ¥19.5
billion (a positive ¥10.6 billion for the previous fiscal year), andinterest-bearing debt at the end of the fiscal year was ¥365.0
billion (an increase of ¥8.3 billion from the end of the previous

upgrade aging manufacturing facilities in Japan, mainly for outboard motors. In the Robotics segment, ¥2.3 billion was spent on
new product R&D for surface mounters and industrial robots. In
the Others segment, ¥7.8 billion was invested in new golf carts
and R&D into automotive engines.

The Company considers enhancing the interests of shareholders animportant management issue, and endeavors to enhance corporate value.
In regard to dividends, the Company seeks to “strike a balance
between investments for new growth and returns to shareholders
within the range of its cash flow, while maintaining and reinforcing the earning power of its existing businesses,” and sets abenchmark for its dividend payout ratio as 30% of net income
attributable to owners of parent.
The Company has a basic policy of paying an interim dividend
and a year-end dividend. The decision-making bodies for

dividends are the Board of Directors for interim dividends and theGeneral Meeting of Shareholders for year-end dividends. In addition, the Company’s Articles of Incorporation provides that therecord date for the interim dividend shall be June 30, andDecember 31 for the year-end dividend.
The Company decided to pay a year-end dividend of ¥45 pershare for fiscal 2019. Added to the interim dividend (¥45 pershare), this added up to a total dividend for the year of ¥90
per share.

Cash Dividends per Share and Payout Ratio

Cash Flows 
Operating Cash Flow
Net cash provided by operating activities was ¥99.1 billion (¥58.9
billion in net cash provided in the previous fiscal year). This mainlyreflected cash provided from ¥120.6 billion in income before
income taxes (¥136.9 billion) and ¥49.7 billion in depreciation
expenses (¥46.4 billion), and other factors, against cash used for
an increase in notes and accounts receivable–trade and sales
finance receivables of ¥29.5 billion (an increase of ¥35.0 billion),
an increase in inventories of ¥17.4 billion (an increase of ¥36.6
billion), and a decrease of ¥7.1 billion in notes and accounts
payable–trade (a decrease of ¥8.3 billion), and other factors.

Investing Cash Flow
Net cash used in investing activities was ¥79.7 billion (¥48.3
billion in net cash used in the previous fiscal year), primarilyreflecting ¥58.7 billion used for purchase of property, plant andequipment and intangible assets (¥54.0 billion) and ¥23.4 billion
used for purchase of investment securities (¥2.9 billion).

Net Assets per Share and Equity Ratio

Total Asset Turnover

Interest-Bearing Debt and Debt/Equity Ratio(¥)(%)(Times)(¥ billion)

(%)

(¥)

50

1.3

420

100

100

2,500

46.0
2,019.0

2,000

1,500

Financing Cash Flow
Net cash used in financing activities was ¥36.8 billion (¥26.4
billion in net cash used in the previous fiscal year), primarilyreflecting cash dividends paid.

50
90

40

30

75

390
1.2

365.0
1.13

360

51.8

41.5

80

40

60

30

40

20

20

10

50

20

1,000

(%)

1.1
500

0

0
2015

Net assets per share

84

2016

2017

Equity ratio

Yamaha Motor Co., Ltd. Integrated Report 2020

2018

2019

25

330

10

0

0

0
2015

2016

2017

2018

2019

2015
Interest-bearing debt

2016

2017

Debt/equity ratio

2018

2019

0

0
2015

Cash dividends per share

2016

2017

2018

2019

Payout ratio

Yamaha Motor Co., Ltd. Integrated Report 202085

Facts and Data

Japan Global Group Network (As of December 31, 2019)

Yamaha Motor’s diverse range of products, offered by its consolidated subsidiaries and equity-method affiliates in 30
countries and regions, are sold in over 180 countries and regions around the world. The Company’s main subsidiaries
and affiliates engaged in global operations are listed below.

Europe (Abbreviations) 
The Netherlands
Yamaha Motor Europe N.V. (YMENV)
Germany
Yamaha Motor Deutschland GmbH (YMG)
Italy
Motori Minarelli S.p.A.
Yamaha Motor Research &Development Europe S.r.l. (YMRE)Yamaha Motor Racing S.r.l. (YMR)
Selva S.p.A.

FranceMBK Industrie
YAMAHA MOTOR FINANCE FRANCE SAS (YMFF)
Spain
Motor Center BCN S.A.

Russia
LLC Yamaha Motor CIS (YMCIS)
GreeceMotodynamics S.A.

TurkeyYamaha Motor Sanayi ve Ticaret Limited Sirketi

North America (Abbreviations) 
United States
Yamaha Motor Corporation, U.S.A. (YMUS)
Yamaha Motor Manufacturing Corporation ofAmerica (YMMC)
Yamaha Marine Precision Propellers Inc. (YPPI)
Yamaha Marine Systems Company Inc.
Skeeter Products, Inc.
Yamaha Jet Boat Manufacturing U.S.A., Inc.
(YJBM)
Yamaha Golf-Car Company (YGC)
INDUSTRIAL POWER PRODUCTS OF
AMERICA, INC.
Yamaha Motor Finance Corporation, U.S.A. (YMFUS)

FinlandInhan Tehtaat Oy Ab

Africa (Abbreviation) Nigeria
CFAO Yamaha Motor Nigeria Ltd. (CYMNG)

Asia (Abbreviations) Indonesia
PT. Yamaha Indonesia Motor Manufacturing (YIMM)
PT. Yamaha Motor Parts Manufacturing Indonesia(YPMI)
PT. Yamaha Motor Nuansa Indonesia (YMNI)PT. Toyo Besq Precision Parts Indonesia (TBI)
PT. Yamaha Motor Electronics Indonesia (YEID)
PT. Yamaha Motor Mold Indonesia (YMMID)
PT. Yamaha Motor R&D Indonesia (YMRID)
PT. Sakura Java Indonesia
PT. Kyowa Indonesia
PT. Bussan Auto Finance (BAF Indonesia)
The Philippines
Yamaha Motor Philippines, Inc. (YMPH)
LIYAM Property, Inc.
ThailandThai Yamaha Motor Co., Ltd. (TYM)
Yamaha Motor Parts Manufacturing(Thailand) Co., Ltd. (YMPT)TYMA Co., Ltd.
Yamaha Motor Electronics Thailand Co., Ltd. (YETH)
Yamaha Motor Asian Center Co., Ltd. (YMAC)
Siam Yamaha Motor Robotics Co., Ltd.
Malaysia
HL Yamaha Motor Research Centre Sdn. Bhd. (HLYR)
Hong Leong Yamaha Motor Sdn. Bhd. (HLYM)
Hicom Yamaha Manufacturing Malaysia Sdn. Bhd.
Vietnam
Yamaha Motor Vietnam Co., Ltd. (YMVN)
Yamaha Motor Parts Manufacturing Vietnam Co., Ltd.
(YPMV)
Yamaha Motor Electronics Vietnam Co., Ltd. (YEVN)
India
Yamaha Motor India Pvt. Ltd. (YMI)
India Yamaha Motor Pvt. Ltd. (IYM)

86

Yamaha Motor Co., Ltd. Integrated Report 2020

Yamaha Motor Ventures & Laboratory Silicon Valley, Inc.
(YMVSV)
Yamaha Motor Exploratory Fund GP, L.L.C. (YFGP)
Yamaha Motor Distribution Latin America, Inc.
(YDLA)
CanadaYamaha Motor Canada Ltd. (YMCA)
Yamaha Motor Finance Canada Ltd.

Yamaha Motorcycle Sales Japan Co., Ltd.
YAMAHA MOTOR ENGINEERING CO., LTD.
SUGO CO., LTD.
YAMAHA KUMAMOTO PRODUCTS CO., LTD.
Yamaha Marine Hokkaido Manufacturing Co., Ltd.
Yamaha Amakusa Manufacturing Co., Ltd.
Yamaha Marina CO., LTD.
Y’S GEAR Co., Ltd.
YAMAHA MOTOR POWERED PRODUCTS Co., Ltd.
Nishi Nippon Skytech Co., Ltd.
YAMAHA MOTOR ELECTRONICS CO., LTD.
SUNWARD INTERNATIONAL, INC.
YAMAHA MOTOR PRECISION PARTS
MANUFACTURING CO., LTD.
HAMAKITA INDUSTRY CO., LTD.
YAMAHA MOTOR HYDRAULIC SYSTEM Co., Ltd.
Yamaha Motor Biz Partner Co., Ltd.
YAMAHA MOTOR MIRAI CO., LTD.
YAMAHA MOTOR SOLUTIONS Co., Ltd.
Ecole Toyohashi
Amagasaki kenkonomori
Kita Nihon Skytech Corp.
Tokai Skytech Corp.
Sakura Kogyo Co., Ltd.
A.I.S. Corporation
ENSHU Limited
KOYAMA Precision Works Inc.
Yamaha Travel Service Co., Ltd.
JUBILO Co., LTD.
Mikasa Unyu Co., Ltd.
KYB Motorcycle Suspension Co., Ltd.
EVEC, Inc
North Sails Japan
Izumisano Waterfront Co., Ltd.
Marine Wave Otaru, Co., Ltd.
Choshi Marina, Inc.
Marina Akita, Co., Ltd.
Hayama Marina, Co., Ltd.
Yokohama Bayside Marina Co., Ltd.
FISHARENA AMAKUSA CORPORATIONSHIN NISHINOMIYA YACHT HARBOR CORPORATION
Hiroshima Harbor Management
YAMAHA MOTOR ROBOTICS HOLDINGS CO., LTD.
SHINKAWA LTD.
APIC YAMADA CORPORATION

Yamaha Motor India Sales Pvt. Ltd. (YMIS)Yamaha Motor Electronics India PVT. Ltd. (YEIN)
Yamaha Motor Research andDevelopment India Pvt. Ltd. (YMRI)
Yamaha Motor Solutions India Pvt. Ltd. (YMSLI)KYB Motorcycle Suspension India Pvt. Ltd. (KMSI)
Bussan Auto Finance India Pvt. Ltd. (BAF India)
Pakistan
Yamaha Motor Pakistan (Private) Limited (YMPK)Central and South America(Abbreviations) 

Singapore
Yamaha Motor Asia Pte. Ltd. (YMAP)
Yamaha Motor Distribution Singapore Pte. Ltd. (YDS)
TaiwanYamaha Motor Taiwan Co., Ltd. (YMT)
Topmost Consulting Co., Ltd. (TCC)
Yamaha Motor R&D Taiwan Co., Ltd. (YMRT)Yamaha Motor Taiwan Trading Co., Ltd. (YMTT)Yamaha Motor Electronics Taiwan Co., Ltd. (YETW)
China
Yamaha Motor (China) Co., Ltd. (YMCN)
Shanghai Yamaha Jianshe Motor Marketing Co., Ltd.
(YMSM)
Zhuzhou Yamaha Motor Shock-absorber Co., Ltd.
(ZYS)
Yamaha Motor R&D Shanghai Co., Ltd. (YMRS)Yamaha Motor Powered Products Jiangsu Co., Ltd.
(YMPJ)
Yamaha Motor Electronics Suzhou Co., Ltd. (YESZ)
Yamaha Motor Solutions Co., Ltd. Xiamen (YMSLX)
Yamaha Motor IM (Suzhou) Co., Ltd. (YIMS)
Chongqing Jianshe Yamaha Motor Co., Ltd. (CJYM)
Zhuzhou Jianshe Yamaha Motor Co., Ltd. (ZJYM)
Jiangsu Linhai Yamaha Motor Co., Ltd. (LYM)
Sichuan Huachuan Yamaha Motor Parts
Manufacturing Co., Ltd. (SHY)
Chongqing Pingshan TK Carburetor Co., Ltd. (PTK)

Oceania (Abbreviations) Australia
Yamaha Motor Australia Pty Limited (YMA)
Ficeda Pty Limited
Yamaha Motor Finance Australia Pty Limited (YMFA)
Australian Motorcycle and Marine Finance Pty Ltd.
Yamaha Motor Insurance Australia Pty. Ltd.
New Zealand
Yamaha Motor New Zealand Limited (YMNZ)
Yamaha Motor Finance New Zealand Limited (YMFNZ)
Yamaha Motor Insurance New Zealand Limited
Micronesia
TriFork Reinsurance Corporation

BrazilYamaha Motor do Brasil Ltda. (YMDB)Yamaha Motor da Amazonia Ltda. (YMDA)
Yamaha Motor Componentes da Amazonia Ltda.
(YMCDA)
Yamaha Motor Electronics do Brasil Ltda. (YEBR)
Yamaha Administradora de Consorcio Ltda. (YAC)
Yamaha Motor do Brasil Servicos Financeiros
Participacoes Ltda.
Banco Yamaha Motor do Brasil S.A. (BYMD)
Yamaha Motor do Brasil Corretora de Seguros Ltda.
(YMDCS)
Yamaha Motor do Brasil Logistica Ltda. (YMBL)
Argentina
Yamaha Motor Argentina S.A. (YMARG)
Uruguay
Yamaha Motor Uruguay S.A. (YMUY)
PeruYamaha Motor del Peru S.A. (YMDP)
Yamaha Motor Selva del Peru S.A. (YMSP)Colombia
Industria Colombiana de Motocicletas Yamaha S.A.
(Incolmotos Yamaha)
MexicoYamaha Motor de Mexico, S.A. de C.V. (YMMEX)
Yamaha Motor Consorcio Mexico, S.A. de C.V.
Yamaha Motor Personnel Service Mexico, S.A. de C.V.
(YMPSMX)

Yamaha Motor Co., Ltd. Integrated Report 202087Facts and Data

Corporate Information / Stock Information (As of December 31, 2019)

Company nameYamaha Motor Co., Ltd.

Headquarters

2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-37-0134
Fax: +81-538-37-4250

FTSE4Good Index Series

Date of establishment

July 1, 1955

FTSE Blossom Japan Index

Capital¥85,905 million

Number of employees

Consolidated: 55,255
Non-consolidated: 10,567

Stock listing

Tokyo Stock Exchange

Stock code

7272

Transfer agent for ­capital
stock

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8233, Japan

AuditorErnst & Young ShinNihon LLC

Inclusion in major indices

Nikkei 225, JPX-Nikkei 400

Major consolidated
subsidiaries

Yamaha Motorcycle Sales Japan Co., Ltd.

ESG Evaluations from
External Institutions 

Capital Stock

Principle Shareholders

Authorized

900,000,000 shares (common stock)

Shareholder

Issued350,013,146 shares

Yamaha Corporation

9.92

Number of Shareholders

67,741The Master Trust Bank of Japan, Ltd.
(trust account)

9.60

S&P Japan 500 ESG

Japan Trustee Services Bank, Ltd. (trust account)

6.16

SNAM Sustainability Index

SSBTC CLIENT OMNIBUS ACCOUNT

4.78

Toyota Motor Corporation

3.58

Mizuho Bank, Ltd.

2.37

SMBC Nikko Securities Inc.

2.12

Mitsui & Co., Ltd.

1.90

The Shizuoka Bank, Ltd.

1.62

Japan Trustee Services Bank, Ltd. (trust account 5)

1.51

Securities companies

5.7%

Japanese individuals and others

10.3%

Foreigninvestors

28.1%

Shareholder
Composition

Ownership (%)

Note: Percentage of ownership is calculated excluding treasury shares.

Japanese financial
institutions

37.9%

Shareholder Notes

Yamaha Motor Powered Products Co., Ltd.

Fiscal year

January 1 to December 31

Yamaha Motor Corporation, U.S.A.

Reference date for allocationof surplus for dividends

Year-end dividends: December 31
Interim dividends: June 30

General Meeting of
Shareholders

March

Share unit number

100 shares

Method of public notice

Public notices are given by electronic notice. In
unforeseen circumstances where electronic
notices are impossible, public notice is made in
the Nihon Keizai Shimbun.

Yamaha Motor Manufacturing Corporation of America

Other Japanese
corporations

Yamaha Motor Europe N.V.

18.0%

PT. Yamaha Indonesia Motor Manufacturing
India Yamaha Motor Pvt. Ltd.
Yamaha Motor Vietnam Co., Ltd.
Thai Yamaha Motor Co., Ltd.
Yamaha Motor Philippines, Inc.
Yamaha Motor do Brasil Ltda.

Yamaha Motor’s Share Price and Trading Volume on the Tokyo Stock Exchange(¥)Design Awards Won by Yamaha Motor in 2019 

縦組み

NIKEN

YNF-01YZF-R15SR400 40th Anniversary Edition

Flagship Sports LMW vehicle

Low-speed mobility vehicle (Concept model)

Motorcycle

Motorcycle• Red Dot Award 2019 | Best of the Best• Chosen for the JIDA Design Museum
Selection Vol. 21• Red Dot Award 2019 | Winner• India Design Mark 2019• Good Design Award 2019

(Million shares)

4,000

400

3,000

300

2,000

200

1,000

100

横組み

0

0

2015
MOTOROiD

F425A

EC-05

Motorcycle (Concept model)

Outboard motors

Electric scooter• iF Design Award 2019

• iF Design Award 2019• German Design Award | Winner• Taiwan Golden Pin Design Award| Best Design

Parent–Child Engine
Disassembly and Assembly Class

Share price

2016

2017

2018

2019

Trading volume

Educational program• KIDS DESIGN AWARD 2019
| Chief Juror’s Special Award

For further information, please contact:
Yamaha Motor Co., Ltd.
IR/SR Group, Corporate Communication Division
2500 Shingai, Iwata, Shizuoka 438-8501, Japan
Telephone: +81-538-37-0134
Fax: +81-538-37-4250
https://global.yamaha-motor.com/ir/

88

Yamaha Motor Co., Ltd. Integrated Report 2020

You are also invited to review the Fact Book and Financial Data on
Yamaha Motor’s website.
https://global.yamaha-motor.com/

Yamaha Motor Co., Ltd. Integrated Report 202089

YAMAHA MOTOR CO., LTD.
2500 SHINGAI, IWATA, SHIZUOKA, JAPANhttps://global.yamaha-motor.com/